-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RVKcoLg4OZHsOchT5CyV0zlZV2sm5ENdWz11sc1Waz8LywILW8EMXCUVkilD+hhP iCOrGJD7iQheTcZ+4l/Piw== 0000950123-05-005106.txt : 20050428 0000950123-05-005106.hdr.sgml : 20050428 20050427180710 ACCESSION NUMBER: 0000950123-05-005106 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20050426 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050428 DATE AS OF CHANGE: 20050427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHUBB CORP CENTRAL INDEX KEY: 0000020171 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 132595722 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08661 FILM NUMBER: 05777664 BUSINESS ADDRESS: STREET 1: 15 MOUNTAIN VIEW RD P O BOX 1615 CITY: WARREN STATE: NJ ZIP: 07061 BUSINESS PHONE: 9089032000 8-K 1 y08286e8vk.htm FORM 8-K FORM 8-K
 

 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

 

     
Date of Report (Date of earliest event reported)   April 26, 2005
     
 
    

THE CHUBB CORPORATION

(Exact name of registrant as specified in its charter)
         
New Jersey   1-8661   13-2595722
 
(State or other jurisdiction
of incorporation) 		  (Commission
File Number) 		  (IRS Employer
Identification No.)
     
15 Mountain View Road, P.O. Box 1615, Warren, New Jersey   07061-1615
 
(Address of principal executive offices)   (Zip Code)
     
     
Registrant’s telephone number, including area code   (908) 903-2000
     
 
    

Not Applicable

(Former name or former address, if changed since last report.)
 
 

 

 

TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition.
Item 8.01. Other Events.
Item 9.01 Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K
DATED APRIL 26, 2005

Item 2.02. Results of Operations and Financial Condition.

On April 27, 2005, Chubb posted on its web site at www.chubb.com reclassifications of its property and casualty underwriting results for the second, third and fourth quarters of 2004. The reclassifications, attached to this 8-K as Exhibits 99.1, 99.2 and 99.3, respectively, conform the presentation of these previously announced results to the new reporting format adopted by Chubb in presenting its 2005 first quarter results. In these reclassifications, Chubb presents its results of operations in the manner that it believes is most meaningful to investors, which, as described in these documents, includes certain measures that are not based on accounting principles generally accepted in the United States. Exhibits 99.1, 99.2 and 99.3 are incorporated by reference into this Item 2.02 as if fully set forth herein.

Item 8.01. Other Events.

The Annual Meeting of Shareholders of The Chubb Corporation (Corporation) was held on April 26, 2005. Matters submitted to shareholders at the meeting and the voting results thereof were as follows:

Election of Directors. Each of the director nominees proposed by the Corporation’s board of directors, having received a plurality of the votes cast at the meeting, was elected to serve until his or her successor is duly elected and qualified. The following is a breakdown of the voting results:

                 
            VOTES AGAINST OR  
DIRECTOR   VOTES FOR     WITHHELD  
Zoë Baird
     168,973,332       3,401,304  
Sheila P. Burke
     160,183,166       12,191,470  
James I. Cash, Jr.
     169,416,517       2,958,119  
Joel J. Cohen
     167,978,832       4,395,804  
James M. Cornelius
     168,716,577       3,658,059  
John D. Finnegan
     168,546,904       3,827,732  
Klaus J. Mangold
     169,410,905       2,963,731  
Sir David G. Scholey, CBE
     165,144,285       7,230,351  
Raymond G.H. Seitz
     168,609,442       3,765,194  
Lawrence M. Small
     158,254,079       14,120,557  
Daniel E. Somers
     169,180,536       3,194,100  
Karen Hastie Williams
     163,362,373       9,012,263  
Alfred W. Zollar
     169,246,422       3,128,214  

Appointment of Ernst & Young LLP as Independent Auditor. The appointment of Ernst & Young LLP as independent auditor was ratified, having received the affirmative vote of more than a majority of the votes cast. The following is a breakdown of the voting results:

             
VOTES FOR   VOTES AGAINST   ABSTAIN   NO VOTE
168,445,989
  2,944,287   984,360   —

Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits.

         
  99.1    
Reclassification of Property and Casualty Underwriting Results for the Second Quarter of 2004 (furnished pursuant to Item 2.02 of Form 8-K)
  99.2    
Reclassification of Property and Casualty Underwriting Results for the Third Quarter of 2004 (furnished pursuant to Item 2.02 of Form 8-K)
  99.3    
Reclassification of Property and Casualty Underwriting Results for the Fourth Quarter of 2004 (furnished pursuant to Item 2.02 of Form 8-K)

 

 

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  THE CHUBB CORPORATION
 		  
Date: April 27, 2005  By:   /s/ W. Andrew Macan    
    Name:   W. Andrew Macan   
    Title:   Vice President and Secretary   

 

 

         

EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K
DATED APRIL 26, 2005

         
Exhibit No.   Description
       
 
  99.1    
Reclassification of Property and Casualty Underwriting Results for the Second Quarter of 2004 (furnished pursuant to Item 2.02 of Form 8-K)
  99.2    
Reclassification of Property and Casualty Underwriting Results for the Third Quarter of 2004 (furnished pursuant to Item 2.02 of Form 8-K)
  99.3    
Reclassification of Property and Casualty Underwriting Results for the Fourth Quarter of 2004 (furnished pursuant to Item 2.02 of Form 8-K)

 

EX-99.1 2 y08286exv99w1.htm EX-99.1: RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS EXHIBIT 99.1
 

Exhibit 99.1

         
The
Chubb Corporation
  Reclassification of
Property and Casualty
Underwriting Results 		  For the Three Months Ended
June 30, 2004





     
This report is for informational purposes only. It should be read in conjunction with documents filed by The Chubb Corporation with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
  (CHUBB CORPORATION LOGO)

 

 

THE CHUBB CORPORATION

Beginning with the first quarter of 2005, the reporting format for property and casualty underwriting results by line of business has been changed to more closely reflect the way the business is now managed. The new reporting format provides additional clarity in that all Professional Liability business is now reported in one line within Chubb Specialty Insurance, all commercial business is now reported in Chubb Commercial Insurance and Reinsurance Assumed (Chubb Re) is now reported as a separate business unit. For additional information, see the first quarter 2005 earnings release.

Property and casualty underwriting results for the second quarter of 2004 presented herein have been reclassified to conform to the new reporting format.

Definitions of Key Terms

Underwriting Income (Loss)

Management evaluates underwriting results separately from investment results. The underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. Performance of the business units is based on statutory underwriting results. Statutory accounting principles differ in certain respects from generally accepted accounting principles (GAAP). Under statutory accounting principles, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned. Statutory underwriting income (loss) is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred.

Management uses underwriting results determined in accordance with GAAP, among other measures, to assess the overall performance of the underwriting operations. To convert statutory underwriting results to a GAAP basis, policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned. Underwriting income (loss) determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred.

Combined Loss and Expense Ratio or Combined Ratio

The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability. Management uses the combined loss and expense ratio calculated in accordance with statutory accounting principles applicable to property and casualty insurance companies to evaluate the performance of the underwriting operations. It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the ratio of statutory underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by dividends to policyholders.

 

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                                 
    Personal                     Other     Total  
    Automobile     Homeowners     Personal     Personal  
    2005     2004     2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 165.8             $ 516.1             $ 124.0             $ 805.9  
Increase (Decrease) in Unearned Premiums
             16.3               53.8               (5.9 )             64.2  
 
                                                
Net Premiums Earned
             149.5               462.3               129.9               741.7  
 
                                                
Net Losses Paid
             85.0               254.2               67.3               406.5  
Increase (Decrease) in Outstanding Losses
             16.3               4.3               10.4               31.0  
 
                                                
Net Losses Incurred
             101.3               258.5               77.7               437.5  
 
                                                
Expenses Incurred
             43.6               162.1               40.7               246.4  
Dividends Incurred
             0.0               0.0               0.0               0.0  
 
                                                
Statutory Underwriting Income (Loss)
           $ 4.6             $ 41.7             $ 11.5             $ 57.8  
 
                                                
Ratios After Dividends to Policyholders:
                                                                
Loss
             67.8 %             55.9 %             59.8 %             59.0 %
Expense
             26.3               31.4               32.8               30.6  
 
                                                
Combined
             94.1 %             87.3 %             92.6 %             89.6 %
 
                                                
Premiums Written as a % of Total
             5.6 %             17.6 %             4.3 %             27.5 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 1 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                                                 
                                    Commercial     Commercial        
    Commercial     Commercial     Workers’     Property     Total  
    Multiple Peril     Casualty     Compensation     and Marine     Commercial  
    2005     2004     2005     2004     2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 313.6             $ 412.0             $ 195.7             $ 270.9             $ 1,192.2  
Increase (Decrease) in Unearned Premiums
             1.8               20.2               (7.4 )             (0.4 )             14.2  
 
                                                            
Net Premiums Earned
             311.8               391.8               203.1               271.3               1,178.0  
 
                                                            
Net Losses Paid
             142.0               266.5               86.3               125.2               620.0  
Increase (Decrease) in Outstanding Losses
             (62.1 )             (46.6 )             46.4               (46.7 )             (109.0 )
 
                                                            
Net Losses Incurred
             79.9               219.9               132.7               78.5               511.0  
 
                                                            
Expenses Incurred
             106.4               107.4               48.4               93.3               355.5  
Dividends Incurred
             0.0               0.0               6.8               0.0               6.8  
 
                                                            
Statutory Underwriting Income (Loss)
           $ 125.5             $ 64.5             $ 15.2             $ 99.5             $ 304.7  
 
                                                            
Ratios After Dividends to Policyholders:
                                                                                
Loss
             25.6 %             56.1 %             67.6 %             28.9 %             43.6 %
Expense
             34.0               26.1               25.6               34.5               30.0  
 
                                                            
Combined
             59.6 %             82.2 %             93.2 %             63.4 %             73.6 %
 
                                                            
Premiums Written as a % of Total
             10.7 %             14.1 %             6.7 %             9.2 %             40.7 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 2 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
    Professional                     Total  
    Liability     Surety     Specialty  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 619.6             $ 45.5             $ 665.1  
Increase (Decrease) in Unearned Premiums
             (11.0 )             0.9               (10.1 )
 
                                    
Net Premiums Earned
             630.6               44.6               675.2  
 
                                    
Net Losses Paid
             303.7               2.2               305.9  
Increase (Decrease) in Outstanding Losses
             383.4               3.1               386.5  
 
                                    
Net Losses Incurred
             687.1               5.3               692.4  
 
                                    
Expenses Incurred
             155.7               17.2               172.9  
Dividends Incurred
             0.0               0.4               0.4  
 
                                    
Statutory Underwriting Income (Loss)
           $ (212.2 )           $ 21.7             $ (190.5 )
 
                                    
Ratios After Dividends to Policyholders:
                                                
Loss
             109.0 %             12.0 %             102.6 %
Expense
             25.1               38.1               26.0  
 
                                    
Combined
             134.1 %             50.1 %             128.6 %
 
                                    
Premiums Written as a % of Total
             21.1 %             1.6 %             22.7 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 3 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
    Total     Reinsurance     Worldwide  
    Insurance     Assumed     Total  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 2,663.2             $ 266.4             $ 2,929.6  
Increase (Decrease) in Unearned Premiums
             68.3               (0.3 )             68.0  
 
                                    
Net Premiums Earned
             2,594.9               266.7               2,861.6  
 
                                    
Net Losses Paid
             1,332.4               48.2               1,380.6  
Increase (Decrease) in Outstanding Losses
             308.5               116.8               425.3  
 
                                    
Net Losses Incurred
             1,640.9               165.0               1,805.9  
 
                                    
Expenses Incurred
             774.8               88.5               863.3  
Dividends Incurred
             7.2               0.0               7.2  
 
                                    
Statutory Underwriting Income (Loss)
           $ 172.0             $ 13.2               185.2  
 
                                        
Increase in Deferred Acquisition Costs
                                             9.8  
 
                                            
GAAP Underwriting Income
                                           $ 195.0  
 
                                            
Ratios After Dividends to Policyholders:
                                                
Loss
             63.4 %             61.9 %             63.3 %
Expense
             29.2               33.2               29.5  
 
                                    
Combined
             92.6 %             95.1 %             92.8 %
 
                                    
Premiums Written as a % of Total
             90.9 %             9.1 %             100.0 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 4 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
                                    Worldwide  
    United States     Foreign     Total  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 2,430.2             $ 499.4             $ 2,929.6  
Increase (Decrease) in Unearned Premiums
             69.3               (1.3 )             68.0  
 
                                    
Net Premiums Earned
             2,360.9               500.7               2,861.6  
 
                                    
Net Losses Paid
             1,179.4               201.2               1,380.6  
Increase (Decrease) in Outstanding Losses
             323.6               101.7               425.3  
 
                                    
Net Losses Incurred
             1,503.0               302.9               1,805.9  
 
                                    
Expenses Incurred
             699.0               164.3               863.3  
Dividends Incurred
             7.2               0.0               7.2  
 
                                    
Statutory Underwriting Income (Loss)
           $ 151.7             $ 33.5               185.2  
 
                                        
Increase in Deferred Acquisition Costs
                                             9.8  
 
                                            
GAAP Underwriting Income
                                           $ 195.0  
 
                                            
Ratios After Dividends to Policyholders:
                                                
Loss
             63.9 %             60.5 %             63.3 %
Expense
             28.8               32.9               29.5  
 
                                    
Combined
             92.7 %             93.4 %             92.8 %
 
                                    
Premiums Written as a % of Total
             83.0 %             17.0 %             100.0 %

Page 5 of 5

EX-99.2 3 y08286exv99w2.htm EX-99.2: RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS EXHIBIT 99.2
 

Exhibit 99.2

         
The
Chubb
Corporation
  Reclassification of
Property and Casualty
Underwriting Results 		  For the Three Months Ended
September 30, 2004

      

      

      

      

      

     
This report is for informational purposes only. It should be read in conjunction with documents filed by The Chubb Corporation with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
  (CHUBB CORPORATION LOGO)

 

 

THE CHUBB CORPORATION

Beginning with the first quarter of 2005, the reporting format for property and casualty underwriting results by line of business has been changed to more closely reflect the way the business is now managed. The new reporting format provides additional clarity in that all Professional Liability business is now reported in one line within Chubb Specialty Insurance, all commercial business is now reported in Chubb Commercial Insurance and Reinsurance Assumed (Chubb Re) is now reported as a separate business unit. For additional information, see the first quarter 2005 earnings release.

Property and casualty underwriting results for the third quarter of 2004 presented herein have been reclassified to conform to the new reporting format.

Definitions of Key Terms

Underwriting Income (Loss)

Management evaluates underwriting results separately from investment results. The underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. Performance of the business units is based on statutory underwriting results. Statutory accounting principles differ in certain respects from generally accepted accounting principles (GAAP). Under statutory accounting principles, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned. Statutory underwriting income (loss) is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred.

Management uses underwriting results determined in accordance with GAAP, among other measures, to assess the overall performance of the underwriting operations. To convert statutory underwriting results to a GAAP basis, policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned. Underwriting income (loss) determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred.

Combined Loss and Expense Ratio or Combined Ratio

The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability. Management uses the combined loss and expense ratio calculated in accordance with statutory accounting principles applicable to property and casualty insurance companies to evaluate the performance of the underwriting operations. It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the ratio of statutory underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by dividends to policyholders.

 

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                                 
    Personal                     Other     Total  
    Automobile     Homeowners     Personal     Personal  
    2005     2004     2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 163.7             $ 525.5             $ 122.9             $ 812.1  
Increase (Decrease) in Unearned Premiums
             10.1               59.2               (9.0 )             60.3  
 
                                                
Net Premiums Earned
             153.6               466.3               131.9               751.8  
 
                                                
Net Losses Paid
             89.8               249.1               73.7               412.6  
Increase in Outstanding Losses
             11.5               78.1               22.1               111.7  
 
                                                
Net Losses Incurred
             101.3               327.2               95.8               524.3  
 
                                                
Expenses Incurred
             43.4               167.5               39.4               250.3  
Dividends Incurred
             0.0               0.0               0.0               0.0  
 
                                                
Statutory Underwriting Income (Loss)
           $ 8.9             $ (28.4 )           $ (3.3 )           $ (22.8 )
 
                                                
Ratios After Dividends to Policyholders:
                                                                
Loss
             66.0 %             70.1 %             72.6 %             69.8 %
Expense
             26.5               31.9               32.1               30.8  
 
                                                
Combined
             92.5 %             102.0 %             104.7 %             100.6 %
 
                                                
Premiums Written as a % of Total
             5.4 %             17.4 %             4.0 %             26.8 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 1 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                                                 
                                    Commercial     Commercial        
    Commercial     Commercial     Workers’     Property     Total  
    Multiple Peril     Casualty     Compensation     and Marine     Commercial  
    2005     2004     2005     2004     2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 317.5             $ 407.1             $ 213.2             $ 256.3             $ 1,194.1  
Increase (Decrease) in Unearned Premiums
             4.0               (5.3 )             (3.6 )             (12.9 )             (17.8 )
 
                                                            
Net Premiums Earned
             313.5               412.4               216.8               269.2               1,211.9  
 
                                                            
Net Losses Paid
             113.2               141.2               73.6               99.5               427.5  
Increase in Outstanding Losses
             25.9               116.0               61.1               8.3               211.3  
 
                                                            
Net Losses Incurred
             139.1               257.2               134.7               107.8               638.8  
 
                                                            
Expenses Incurred
             109.9               106.3               49.3               89.8               355.3  
Dividends Incurred
             0.0               0.0               5.9               0.0               5.9  
 
                                                            
Statutory Underwriting Income (Loss)
           $ 64.5             $ 48.9             $ 26.9             $ 71.6             $ 211.9  
 
                                                            
Ratios After Dividends to Policyholders:
                                                                                
Loss
             44.4 %             62.4 %             63.9 %             40.1 %             53.0 %
Expense
             34.6               26.1               23.8               35.0               29.9  
 
                                                            
Combined
             79.0 %             88.5 %             87.7 %             75.1 %             82.9 %
 
                                                            
Premiums Written
as a % of Total
             10.5 %             13.5 %             7.0 %             8.5 %             39.5 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 2 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
    Professional                     Total  
    Liability     Surety     Specialty  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 659.3             $ 60.4             $ 719.7  
Increase (Decrease) in Unearned Premiums
             21.9               (0.6 )             21.3  
 
                                    
Net Premiums Earned
             637.4               61.0               698.4  
 
                                    
Net Losses Paid
             256.5               (6.7 )             249.8  
Increase in Outstanding Losses
             245.3               39.7               285.0  
 
                                    
Net Losses Incurred
             501.8               33.0               534.8  
 
                                    
Expenses Incurred
             157.8               26.5               184.3  
Dividends Incurred
             0.0               1.4               1.4  
 
                                    
Statutory Underwriting Income (Loss)
           $ (22.2 )           $ 0.1             $ (22.1 )
 
                                    
Ratios After Dividends to Policyholders:
                                                
Loss
             78.8 %             55.4 %             76.7 %
Expense
             23.9               44.9               25.7  
 
                                    
Combined
             102.7 %             100.3 %             102.4 %
 
                                    
Premiums Written as a % of Total
             21.8 %             2.0 %             23.8 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 3 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
    Total     Reinsurance     Worldwide  
    Insurance     Assumed     Total  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 2,725.9             $ 299.8             $ 3,025.7  
Increase (Decrease) in Unearned Premiums
             63.8               6.9               70.7  
 
                                    
Net Premiums Earned
             2,662.1               292.9               2,955.0  
 
                                    
Net Losses Paid
             1,089.9               85.7               1,175.6  
Increase in Outstanding Losses
             608.0               98.2               706.2  
 
                                    
Net Losses Incurred
             1,697.9               183.9               1,881.8  
 
                                    
Expenses Incurred
             789.9               98.2               888.1  
Dividends Incurred
             7.3               0.0               7.3  
 
                                    
Statutory Underwriting Income (Loss)
           $ 167.0             $ 10.8               177.8  
 
                                    
Increase in Deferred Acquisition Costs
                                             15.6  
 
                                    
GAAP Underwriting Income
                                           $ 193.4  
 
                                    
Ratios After Dividends to Policyholders:
                                                
Loss
             64.0 %             62.8 %             63.9 %
Expense
             29.0               32.8               29.4  
 
                                    
Combined
             93.0 %             95.6 %             93.3 %
 
                                    
Premiums Written as a % of Total
             90.1 %             9.9 %             100.0 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 4 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
                                    Worldwide  
    United States     Foreign     Total  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 2,550.0             $ 475.7             $ 3,025.7  
Increase (Decrease) in Unearned Premiums
             132.9               (62.2 )             70.7  
 
                                    
Net Premiums Earned
             2,417.1               537.9               2,955.0  
 
                                    
Net Losses Paid
             1,006.8               168.8               1,175.6  
Increase in Outstanding Losses
             552.2               154.0               706.2  
 
                                    
Net Losses Incurred
             1,559.0               322.8               1,881.8  
 
                                    
Expenses Incurred
             726.8               161.3               888.1  
Dividends Incurred
             7.3               0.0               7.3  
 
                                    
Statutory Underwriting Income (Loss)
           $ 124.0             $ 53.8               177.8  
 
                                    
Increase in Deferred Acquisition Costs
                                             15.6  
 
                                    
GAAP Underwriting Income
                                           $ 193.4  
 
                                    
Ratios After Dividends to Policyholders:
                                                
Loss
             64.7 %             60.0 %             63.9 %
Expense
             28.6               33.9               29.4  
 
                                    
Combined
             93.3 %             93.9 %             93.3 %
 
                                    
Premiums Written as a % of Total
             84.3 %             15.7 %             100.0 %

Page 5 of 5

EX-99.3 4 y08286exv99w3.htm EX-99.3: RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS EXHIBIT 99.3
 

Exhibit 99.3

         
The
Chubb
Corporation
  Reclassification of
Property and Casualty
Underwriting Results 		  For the Three Months Ended
December 31, 2004





     
This report is for informational purposes only. It should be read in conjunction with documents filed by The Chubb Corporation with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
  (CHUBB CORPORATION LOGO)

 

 

THE CHUBB CORPORATION

Beginning with the first quarter of 2005, the reporting format for property and casualty underwriting results by line of business has been changed to more closely reflect the way the business is now managed. The new reporting format provides additional clarity in that all Professional Liability business is now reported in one line within Chubb Specialty Insurance, all commercial business is now reported in Chubb Commercial Insurance and Reinsurance Assumed (Chubb Re) is now reported as a separate business unit. For additional information, see the first quarter 2005 earnings release.

Property and casualty underwriting results for the fourth quarter of 2004 presented herein have been reclassified to conform to the new reporting format.

Definitions of Key Terms

Underwriting Income (Loss)

Management evaluates underwriting results separately from investment results. The underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. Performance of the business units is based on statutory underwriting results. Statutory accounting principles differ in certain respects from generally accepted accounting principles (GAAP). Under statutory accounting principles, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned. Statutory underwriting income (loss) is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred.

Management uses underwriting results determined in accordance with GAAP, among other measures, to assess the overall performance of the underwriting operations. To convert statutory underwriting results to a GAAP basis, policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned. Underwriting income (loss) determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred.

Combined Loss and Expense Ratio or Combined Ratio

The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability. Management uses the combined loss and expense ratio calculated in accordance with statutory accounting principles applicable to property and casualty insurance companies to evaluate the performance of the underwriting operations. It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the ratio of statutory underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by dividends to policyholders.

 

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                                 
    Personal                     Other     Total  
    Automobile     Homeowners     Personal     Personal  
    2005     2004     2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 155.0             $ 496.5             $ 126.5             $ 778.0  
Increase (Decrease) in Unearned Premiums
             0.6               11.6               (2.2 )             10.0  
 
                                                
Net Premiums Earned
             154.4               484.9               128.7               768.0  
 
                                                
Net Losses Paid
             98.2               262.2               78.5               438.9  
Increase (Decrease) in Outstanding Losses
             2.0               (59.4 )             11.6               (45.8 )
 
                                                
Net Losses Incurred
             100.2               202.8               90.1               393.1  
 
                                                
Expenses Incurred
             40.3               163.0               43.5               246.8  
Dividends Incurred
             0.0               0.0               0.0               0.0  
 
                                                
Statutory Underwriting Income (Loss)
           $ 13.9             $ 119.1             $ (4.9 )           $ 128.1  
 
                                                
Ratios After Dividends to Policyholders:
                                                                
Loss
             64.9 %             41.8 %             70.0 %             51.2 %
Expense
             26.0               32.9               34.4               31.7  
 
                                                
Combined
             90.9 %             74.7 %             104.4 %             82.9 %
 
                                                
Premiums Written as a % of Total
             4.9 %             16.2 %             4.1 %             25.2 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 1 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                                                 
                                    Commercial     Commercial        
    Commercial     Commercial     Workers’     Property     Total  
    Multiple Peril     Casualty     Compensation     and Marine     Commercial  
    2005     2004     2005     2004     2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 335.2             $ 418.4             $ 199.2             $ 259.3             $ 1,212.1  
Increase (Decrease) in Unearned Premiums
             9.1               4.9               (17.1 )             (16.1 )             (19.2 )
 
                                                            
Net Premiums Earned
             326.1               413.5               216.3               275.4               1,231.3  
 
                                                            
Net Losses Paid
             136.4               152.1               71.7               97.3               457.5  
Increase (Decrease) in Outstanding Losses
             31.1               164.5               78.2               24.1               297.9  
 
                                                            
Net Losses Incurred
             167.5               316.6               149.9               121.4               755.4  
 
                                                            
Expenses Incurred
             107.2               107.8               46.0               84.0               345.0  
Dividends Incurred
             0.0               0.0               6.6               0.0               6.6  
 
                                                            
Statutory Underwriting Income (Loss)
           $ 51.4             $ (10.9 )           $ 13.8             $ 70.0             $ 124.3  
 
                                                            
Ratios After Dividends to Policyholders:
                                                                                
Loss
             51.3 %             76.5 %             71.5 %             44.1 %             61.7 %
Expense
             32.0               25.8               23.9               32.4               28.6  
 
                                                            
Combined
             83.3 %             102.3 %             95.4 %             76.5 %             90.3 %
 
                                                            
Premiums Written as a % of Total
             10.9 %             13.6 %             6.5 %             8.4 %             39.4 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

The Property and Casualty underwriting results for the fourth quarter of 2004 include the effect of net losses of $75.0 million related to asbestos claims. Excluding the effect of the asbestos losses, the combined loss and expense ratio was 74.1% for Multiple Peril, 91.4% for Casualty and 84.2% for Total Commercial.

Page 2 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
    Professional                     Total  
    Liability     Surety     Specialty  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 734.7             $ 51.0             $ 785.7  
Increase (Decrease) in Unearned Premiums
             72.8               1.8               74.6  
 
                                    
Net Premiums Earned
             661.9               49.2               711.1  
 
                                    
Net Losses Paid
             265.8               8.8               274.6  
Increase (Decrease) in Outstanding Losses
             290.8               (16.6 )             274.2  
 
                                    
Net Losses Incurred
             556.6               (7.8 )             548.8  
 
                                    
Expenses Incurred
             151.9               18.3               170.2  
Dividends Incurred
             0.0               1.0               1.0  
 
                                    
Statutory Underwriting Income (Loss)
           $ (46.6 )           $ 37.7             $ (8.9 )
 
                                    
Ratios After Dividends to Policyholders:
                                                
Loss
             84.1 %             (16.2 )%             77.3 %
Expense
             20.7               36.6               21.7  
 
                                    
Combined
             104.8 %             20.4 %             99.0 %
 
                                    
Premiums Written as a % of Total
             23.9 %             1.7 %             25.6 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

Page 3 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
    Total     Reinsurance     Worldwide  
    Insurance     Assumed     Total  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 2,775.8             $ 304.4             $ 3,080.2  
Increase (Decrease) in Unearned Premiums
             65.4               (10.3 )             55.1  
 
                                    
Net Premiums Earned
             2,710.4               314.7               3,025.1  
 
                                    
Net Losses Paid
             1,171.0               78.9               1,249.9  
Increase (Decrease) in Outstanding Losses
             526.3               116.4               642.7  
 
                                    
Net Losses Incurred
             1,697.3               195.3               1,892.6  
 
                                    
Expenses Incurred
             762.0               95.2               857.2  
Dividends Incurred
             7.6               0.0               7.6  
 
                                    
Statutory Underwriting Income (Loss)
           $ 243.5             $ 24.2               267.7  
 
                                    
Increase in Deferred Acquisition Costs
                                             11.6  
 
                                            
GAAP Underwriting Income
                                           $ 279.3  
 
                                            
Ratios After Dividends to Policyholders:
                                                
Loss
             62.8 %             62.1 %             62.7 %
Expense
             27.5               31.2               27.9  
 
                                    
Combined
             90.3 %             93.3 %             90.6 %
 
                                    
Premiums Written as a % of Total
             90.2 %             9.8 %             100.0 %

The Property and Casualty underwriting results for 2004 reflect certain reclassifications to conform with the 2005 presentation. The worldwide totals are not affected.

The Property and Casualty underwriting results for the fourth quarter of 2004 include the effect of net losses of $75.0 million related to asbestos claims. Excluding the effect of the asbestos losses, the combined loss and expense ratio was 87.6% for Total Insurance and 88.1% for Worldwide Total.

Page 4 of 5

 

THE CHUBB CORPORATION — WORLDWIDE
RECLASSIFICATION OF PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(MILLIONS OF DOLLARS)

                                                 
                                    Worldwide  
    United States     Foreign     Total  
    2005     2004     2005     2004     2005     2004  
Net Premiums Written
           $ 2,509.2             $ 571.0             $ 3,080.2  
Increase (Decrease) in Unearned Premiums
             32.8               22.3               55.1  
 
                                    
Net Premiums Earned
             2,476.4               548.7               3,025.1  
 
                                    
Net Losses Paid
             1,226.7               23.2               1,249.9  
Increase (Decrease) in Outstanding Losses
             302.7               340.0               642.7  
 
                                    
Net Losses Incurred
             1,529.4               363.2               1,892.6  
 
                                    
Expenses Incurred
             679.7               177.5               857.2  
Dividends Incurred
             7.6               0.0               7.6  
 
                                    
Statutory Underwriting Income (Loss)
           $ 259.7             $ 8.0               267.7  
 
                                    
Increase in Deferred Acquisition Costs
                                             11.6  
 
                                            
GAAP Underwriting Income
                                           $ 279.3  
 
                                            
Ratios After Dividends to Policyholders:
                                                
Loss
             61.9 %             66.2 %             62.7 %
Expense
             27.2               31.1               27.9  
 
                                    
Combined
             89.1 %             97.3 %             90.6 %
 
                                    
Premiums Written as a % of Total
             81.5 %             18.5 %             100.0 %

Page 5 of 5

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