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Message from John Q. Doyle - 3rd Quarter 2010 Results
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November 5, 2010

Dear Business Colleagues:

This morning, Chartis’ third quarter 2010 results were announced. Chartis' worldwide operating income before net realized capital gains/losses was $1.1 billion, compared to $719 million in the third quarter of 2009, a 49 percent increase. The third quarter combined ratio was 99.3, compared to a 105.2 in the prior year period. Net premiums increased 7 percent to $8.6 billion. Chartis’ global results reflect the consolidation of Fuji Fire & Marine Insurance Company in Japan, a company in which we acquired a controlling stake earlier this year.

Our U.S. and Canadian businesses contributed significantly to Chartis’ overall third quarter performance with $4.7 billion in net premiums and $702 million in operating income before realized capital gains/losses. Chartis U.S.’s combined ratio improved by approximately 5 points over the prior year period to 101.7. Net premiums declined approximately 5 percent from the prior year primarily as a result of declining ratable exposures, risk and capital management strategies and pricing discipline in a competitive market.

Based on feedback from many of you, I’ve challenged our team to continue to improve customer service, drive innovation and demonstrate transparency in our operations. This is paying off. We’re thankful to the readers of Business Insurance, who announced their 2010 Reader’s Choice Awards earlier this week. Chartis was named "Best Liability Insurer" and Chartis’ Lexington Insurance Company was named "Best Surplus Lines Insurer." In the third quarter alone, we launched 14 new and enhanced products. Many more innovations are in our pipeline and I look forward to sharing those developments with you in the coming months. Please visit the Chartis website frequently for updates on these activities.

Thank you for your business and your ongoing support.



John Q. Doyle
Executive Vice President, Chartis
President and Chief Executive Officer, Chartis U.S.