Chubb reported net premiums written fell 7 percent, or $193 million to $2.74 billion. Investment income fell 8 percent, or $31 million, to $379 million.

The company reported its combined ratio deteriorated 4.2 points, rising to 88.1, with the effects of catastrophes impacting the rate by 0.9 points.

Personal lines combined ratio rose 5.2 points to 90; commercial lines combined ratio rose 3 points to 90.2; and specialty lines rose 7 points to 85.1.

During an analyst's conference call John D. Finnegan, chairman, president and chief executive officer of Chubb, said the insurer continued to "operate in a difficult market environment" but was able to produce positive results "despite the difficulty."

Mr. Finnegan said the drop in premium written was attributable to the strength of the dollar on overseas underwriting and the impact on insurance buying of the economic downturn.

John J. Degnan, vice chairman and chief operation officer, said rates across all lines of business are experiencing increases and the company is experiencing a steady stream of clients who are leaving insurers whose financial position is in question.

But he said migration does not involve a flood of clients because competition remains tough as some carriers cut prices 30-to-40 percent in order to retain business.

He said Chubb is refusing to write business that does not meet its underwriting criteria and refuses to underprice risk.

Mr. Degnan said Chubb believes the "firming market is underway." He said it "is more incremental than we had hoped, but it is underway."

In response to a question about reports that The Hartford is soliciting bids to sell its property-casualty division, Mr. Finnegan indicated Chubb would prefer to pursue organic growth over an acquisition, but declined to comment further.

According to press reports yesterday, The Hartford is soliciting bids from several insurers to purchase its p-c business after suffering significant losses in its life business.