exv99w2

Exhibit 99.2


The Chubb Corporation		Supplementary Investor Information		December 31, 2009


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.

THE CHUBB CORPORATION
SUPPLEMENTARY INVESTOR INFORMATION
TABLE OF CONTENTS
DECEMBER 31, 2009


		Page
The Chubb Corporation:
Consolidated Balance Sheet Highlights		1
Share Repurchase Activity		2

Summary of Invested Assets:
Corporate		3
Property and Casualty		3

Investment Income After Taxes:
Corporate		4
Property and Casualty		4

Property and Casualty Insurance Group:
Statutory Policyholders’ Surplus		4
Change in Net Unpaid Losses		5
Underwriting Results — Year-To-Date		6-10
Underwriting Results — Quarterly		11-15

Definitions of Key Terms		16-17

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS
AS OF DECEMBER 31

(in millions, except per share amounts)


	2009						2008
				% of Total						% of Total
Invested Assets (at carrying value)
Short Term Investments	$	1,918			5	%	$	2,478			7	%
Fixed Maturities
Tax Exempt		19,587			47			18,345			47
Taxable		16,991			40			14,410			37
Equity Securities		1,433			3			1,479			4
Other Invested Assets		2,075			5			2,026			5

Total Invested Assets	$	42,004			100	%	$	38,738			100	%


Unrealized Appreciation (Depreciation) of Investments
Fixed Maturities	$	1,388					$	(136	)
Equity Securities		218						(84	)

		1,606						(220	)
Deferred Income Tax Liability (Asset)		562						(77	)

	$	1,044					$	(143	)


Capitalization
Long Term Debt	$	3,975					$	3,975
Shareholders’ Equity		15,634						13,432

Total Capitalization	$	19,609					$	17,407


Debt as a Percentage of Total Capitalization		20.3	%					22.8	%

Actual Common Shares Outstanding		332.0						352.3

Book Value Per Common Share	$	47.09					$	38.13

Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	44.37					$	38.38

Page 1 of 17

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

(dollars in millions, except per share amounts)


	Periods Ended December 31
	Fourth		Twelve		From
	Quarter		Months		December 2005
	2009		2009		to December 31, 2009
Cost of Shares Repurchased		$489		$1,065		$5,952
Average Cost Per Share		$49.65		$47.09		$50.08
Shares Repurchased		9,842,744		22,623,775		118,839,875

In December 2005 and December 2006, the Board of Directors authorized the repurchase of up to 28,000,000 shares and 20,000,000 shares, respectively, of the Corporation’s common stock. In March 2007, the Board of Directors authorized an increase of 20,000,000 shares to the authorization approved in 2006. In December 2007 and 2008, the Board of Directors authorized the repurchase of up to 28,000,000 shares and 20,000,000 shares, respectively, of the Corporation’s common stock. No shares remain under these share repurchase authorizations.

In December 2009, the Board of Directors authorized the repurchase of up to 25,000,000 shares of the Corporation’s common stock. The authorization has no expiration date. As of December 31, 2009, 22,160,125 shares remained under the share repurchase authorization.

Page 2 of 17

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS
AS OF DECEMBER 31

CORPORATE


	Cost or				Carrying
	Amortized Cost				Value (a)
	2009		2008		2009		2008
			(in millions)
Short Term Investments	$	1,017	$	1,602	$	1,017	$	1,602
Taxable Fixed Maturities		1,286		774		1,327		780
Equity Securities		205		451		202		504
Other Invested Assets		25		—		25		—

TOTAL	$	2,533	$	2,827	$	2,571	$	2,886

PROPERTY AND CASUALTY


	Cost or				Carrying
	Amortized Cost				Value (a)
	2009		2008		2009		2008
			(in millions)
Short Term Investments	$	901	$	876	$	901	$	876
Fixed Maturities
Tax Exempt		18,720		18,299		19,587		18,345
Taxable		15,184		13,818		15,664		13,630
Equity Securities		1,010		1,112		1,231		975
Other Invested Assets		2,050		2,026		2,050		2,026

TOTAL	$	37,865	$	36,131	$	39,433	$	35,852


(a)		Short term investments are carried at amortized cost, which approximates fair value. Fixed maturities and equity securities are carried at fair value. Other invested assets include private equity limited partnerships carried at Chubb’s equity in the net assets of the partnerships.

Page 3 of 17

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES


	Periods Ended December 31
	Fourth Quarter						Twelve Months
	2009			2008			2009			2008
				(in millions)
CORPORATE INVESTMENT INCOME	$	13		$	12		$	40		$	51


PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	192		$	188		$	755		$	742
Taxable Interest		119			118			465			497
Other		13			15			55			77
Investment Expenses		(7	)		(5	)		(23	)		(19	)

TOTAL	$	317		$	316		$	1,252		$	1,297


Effective Tax Rate		19.3	%		19.2	%		19.2	%		20.0	%
After-Tax Annualized Yield		3.34	%		3.45	%		3.39	%		3.49	%

After-tax annualized yield is based on the average invested assets for the periods presented, with fixed maturities at amortized cost and equity securities at fair value.

STATUTORY POLICYHOLDERS’ SURPLUS
AS OF DECEMBER 31


	2009		2008		2007
			(in millions)
Estimated Statutory Policyholders’ Surplus	$	14,500	$	12,281	$	12,998
Rolling Year Statutory Net Premiums Written	$	11,074	$	11,759	$	11,829
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		0.76:1		0.96:1		0.91:1

Statutory Policyholders’ Surplus and Net Premiums Written include all domestic and foreign property and casualty subsidiaries.

Page 4 of 17

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES
TWELVE MONTHS ENDED DECEMBER 31, 2009


	Net Unpaid Losses										All Other
								IBNR			Unpaid Losses
					Increase			Increase			Increase
	12/31/09		12/31/08		(Decrease)			(Decrease)			(Decrease)
					(in millions)
Personal Insurance
Automobile	$	400	$	391	$	9		$	(8	)	$	17
Homeowners		665		715		(50	)		(14	)		(36	)
Other		872		815		57			44			13

Total Personal		1,937		1,921		16			22			(6	)

Commercial Insurance
Multiple Peril		1,615		1,586		29			58			(29	)
Casualty		5,988		5,660		328			224			104
Workers’ Compensation		2,138		1,982		156			83			73
Property and Marine		758		839		(81	)		(32	)		(49	)

Total Commercial		10,499		10,067		432			333			99

Specialty Insurance
Professional Liability		7,552		7,175		377			380			(3	)
Surety		58		68		(10	)		(1	)		(9	)

Total Specialty		7,610		7,243		367			379			(12	)

Total Insurance		20,046		19,231		815			734			81
Reinsurance Assumed		740		924		(184	)		(118	)		(66	)

Total	$	20,786	$	20,155	$	631		$	616		$	15

Page 5 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

Personal

Other

Total

Automobile

Homeowners

Personal

2009

2008

2009

2008

2009

2008

2009

2008

Net Premiums Written

577

602

2,339

2,449

741

775

3,657

3,826

Decrease (Increase) in Unearned Premiums

(22

)

(27

)

(39

)

Net Premiums Earned

579

612

2,374

2,427

739

748

3,692

3,787

Net Losses Paid

352

370

1,195

1,208

393

406

1,940

1,984

Increase (Decrease) in Outstanding Losses

(13

)

(64

)

(17

)

103

Net Losses Incurred

355

357

1,131

1,242

437

488

1,923

2,087

Expenses Incurred

168

176

766

796

235

250

1,169

1,222

Dividends Incurred

—

Statutory Underwriting Income (Loss)

477

389

600

478

Ratios After Dividends to Policyholders:

Loss

61.3

58.3

47.6

51.2

59.1

65.2

52.1

55.1

Expense

29.1

29.3

32.8

32.5

31.7

32.3

32.0

Combined

90.4

87.6

80.4

83.7

90.8

97.5

84.1

87.1

Premiums Written as a % of Total

5.2

5.1

21.1

20.8

6.7

6.6

33.0

32.5

Page 6 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

Commercial

Workers’

Property

Total

Multiple Peril

Casualty

Compensation

and Marine

Commercial

2009

2008

2009

2008

2009

2008

2009

2008

2009

2008

Net Premiums Written

1,121

1,210

1,514

1,654

761

851

1,264

1,278

4,660

4,993

Decrease (Increase) in Unearned Premiums

(10

)

(40

)

102

Net Premiums Earned

1,153

1,229

1,569

1,686

786

862

1,254

1,238

4,762

5,015

Net Losses Paid

566

611

834

885

375

710

735

2,485

2,606

Increase (Decrease) in Outstanding Losses

—

231

237

145

101

(96

)

187

288

525

Net Losses Incurred

574

611

1,065

1,122

520

476

614

922

2,773

3,131

Expenses Incurred

404

430

437

471

182

201

434

439

1,457

1,541

Dividends Incurred

—

Statutory Underwriting Income (Loss)

175

188

151

206

(123

)

510

309

Ratios After Dividends to Policyholders:

Loss

49.8

49.7

67.9

66.6

68.1

57.5

49.0

74.5

58.5

62.8

Expense

36.0

35.6

28.8

28.4

24.6

34.3

31.4

31.1

Combined

85.8

85.3

96.7

95.0

92.7

82.1

83.3

108.8

89.9

93.9

Premiums Written as a % of Total

10.1

10.3

13.7

14.0

6.9

7.2

11.4

10.9

42.1

42.4

Page 7 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

Professional

Total

Liability

Surety

Specialty

2009

2008

2009

2008

2009

2008

Net Premiums Written

2,413

2,546

326

353

2,739

2,899

Decrease (Increase) in Unearned Premiums

(12

)

Net Premiums Earned

2,498

2,594

331

341

2,829

2,935

Net Losses Paid

1,410

1,608

132

1,431

1,740

Increase (Decrease) in Outstanding Losses

184

(52

)

175

(54

)

Net Losses Incurred

1,594

1,556

130

1,606

1,686

Expenses Incurred

635

636

108

743

744

Dividends Incurred

—

Statutory Underwriting Income (Loss)

269

402

205

474

499

Ratios After Dividends to Policyholders:

Loss

63.8

60.0

3.7

38.8

56.9

57.6

Expense

26.3

25.0

33.7

31.1

27.2

25.7

Combined

90.1

85.0

37.4

69.9

84.1

83.3

Premiums Written as a % of Total

21.8

21.6

2.9

3.0

24.7

24.6

Page 8 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008

(DOLLARS IN MILLIONS)

Total

Reinsurance

Worldwide

Insurance

Assumed

Total

2009

2008

2009

2008

2009

2008

Net Premiums Written

11,056

11,718

11,077

11,782

Decrease (Increase) in Unearned Premiums

227

254

Net Premiums Earned

11,283

11,737

11,331

11,828

Net Losses Paid

5,856

6,330

150

179

6,006

6,509

Increase (Decrease) in Outstanding Losses

446

574

(184

)

(185

)

262

389

Net Losses Incurred

6,302

6,904

(34

)

6,268

6,898

Expenses Incurred

3,369

3,507

3,377

3,546

Dividends Incurred

—

Statutory Underwriting Income (Loss)

1,584

1,286

1,658

1,344

Increase (Decrease) in Deferred Acquisition Costs

(27

)

GAAP Underwriting Income

1,631

1,361

Ratios After Dividends to Policyholders:

Loss

56.0

59.0

55.4

58.5

Expense

30.5

30.1

30.6

30.2

Combined

86.5

89.1

86.0

88.7

Premiums Written as a % of Total

99.8

99.5

0.2

0.5

100.0


*		Combined, loss and expense ratios are no longer presented for Reinsurance Assumed since this business is in run-off.

Page 9 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008

(DOLLARS IN MILLIONS)

Outside

the

Worldwide

United States

Total

2009

2008

2009

2008

2009

2008

Net Premiums Written

8,383

8,920

2,694

2,862

11,077

11,782

Decrease (Increase) in Unearned Premiums

300

(46

)

(33

)

254

Net Premiums Earned

8,683

8,999

2,648

2,829

11,331

11,828

Net Losses Paid

4,834

5,212

1,172

1,297

6,006

6,509

Increase (Decrease) in Outstanding Losses

308

238

262

389

Net Losses Incurred

4,858

5,520

1,410

1,378

6,268

6,898

Expenses Incurred

2,437

2,538

940

1,008

3,377

3,546

Dividends Incurred

—

Statutory Underwriting Income (Loss)

1,360

901

298

443

1,658

1,344

Increase (Decrease) in Deferred Acquisition Costs

(27

)

GAAP Underwriting Income

1,631

1,361

Ratios After Dividends to Policyholders:

Loss

56.1

61.6

53.2

48.7

55.4

58.5

Expense

29.2

28.6

34.9

35.2

30.6

30.2

Combined

85.3

90.2

88.1

83.9

86.0

88.7

Premiums Written as a % of Total

75.7

24.3

100.0

Page 10 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN MILLIONS)


	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2009			2008			2009			2008			2009			2008			2009			2008
Net Premiums Written	$	149		$	145		$	568		$	590		$	190		$	204		$	907		$	939
Decrease (Increase) in Unearned Premiums		1			2			27			11			3			(2	)		31			11


Net Premiums Earned		150			147			595			601			193			202			938			950


Net Losses Paid		96			91			266			363			110			119			472			573
Increase (Decrease) in Outstanding Losses		1			(10	)		(11	)		(98	)		(6	)		(2	)		(16	)		(110	)


Net Losses Incurred		97			81			255			265			104			117			456			463


Expenses Incurred		44			43			187			195			60			64			291			302

Dividends Incurred		—			—			—			—			—			—			—			—


Statutory Underwriting Income	$	9		$	23		$	153		$	141		$	29		$	21		$	191		$	185


Ratios After Dividends to Policyholders:

Loss		64.7	%		55.1	%		42.9	%		44.1	%		53.9	%		57.9	%		48.6	%		48.7	%
Expense		29.5			29.7			32.9			33.0			31.6			31.4			32.1			32.2


Combined		94.2	%		84.8	%		75.8	%		77.1	%		85.5	%		89.3	%		80.7	%		80.9	%


Premiums Written as a % of Total		5.4	%		5.0	%		20.4	%		20.4	%		6.8	%		7.0	%		32.6	%		32.4	%

Page 11 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN MILLIONS)


													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2009			2008			2009			2008			2009			2008			2009			2008			2009			2008
Net Premiums Written	$	286		$	295		$	353		$	373		$	151		$	185		$	311		$	321		$	1,101		$	1,174
Decrease (Increase) in Unearned Premiums		(1	)		(2	)		34			29			32			20			11			(7	)		76			40


Net Premiums Earned		285			293			387			402			183			205			322			314			1,177			1,214


Net Losses Paid		157			189			229			289			95			98			183			234			664			810
Increase (Decrease) in Outstanding Losses		(7	)		(61	)		36			(19	)		29			20			(38	)		(66	)		20			(126	)


Net Losses Incurred		150			128			265			270			124			118			145			168			684			684


Expenses Incurred		98			106			104			109			40			49			104			110			346			374

Dividends Incurred		—			—			—			—			5			8			—			—			5			8


Statutory Underwriting Income	$	37		$	59		$	18		$	23		$	14		$	30		$	73		$	36		$	142		$	148


Ratios After Dividends to Policyholders:

Loss		52.6	%		43.7	%		68.5	%		67.2	%		69.7	%		59.9	%		45.0	%		53.5	%		58.3	%		56.7	%
Expense		34.3			35.9			29.4			29.2			27.4			27.7			33.5			34.3			31.6			32.1


Combined		86.9	%		79.6	%		97.9	%		96.4	%		97.1	%		87.6	%		78.5	%		87.8	%		89.9	%		88.8	%


Premiums Written as a % of Total		10.3	%		10.2	%		12.7	%		12.9	%		5.4	%		6.4	%		11.2	%		11.0	%		39.6	%		40.5	%

Page 12 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN MILLIONS)


	Professional												Total
	Liability						Surety						Specialty
	2009			2008			2009			2008			2009			2008
Net Premiums Written	$	688		$	699		$	83		$	77		$	771		$	776
Decrease (Increase) in Unearned Premiums		(49	)		(72	)		(3	)		12			(52	)		(60	)


Net Premiums Earned		639			627			80			89			719			716


Net Losses Paid		412			441			7			92			419			533
Increase (Decrease) in Outstanding Losses		2			(34	)		(2	)		(74	)		—			(108	)


Net Losses Incurred		414			407			5			18			419			425


Expenses Incurred		170			164			28			23			198			187

Dividends Incurred		—			—			1			3			1			3


Statutory Underwriting Income	$	55		$	56		$	46		$	45		$	101		$	101


Ratios After Dividends to Policyholders:

Loss		64.8	%		64.9	%		6.3	%		20.9	%		58.4	%		59.6	%
Expense		24.7			23.5			34.2			31.1			25.7			24.2


Combined		89.5	%		88.4	%		40.5	%		52.0	%		84.1	%		83.8	%


Premiums Written as a % of Total		24.7	%		24.1	%		3.0	%		2.7	%		27.7	%		26.8	%

Page 13 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN MILLIONS)


	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2009			2008			2009			2008				2009			2008
Net Premiums Written	$	2,779		$	2,889		$	4		$	10			$	2,783		$	2,899
Decrease (Increase) in Unearned Premiums		55			(9	)		3			12				58			3


Net Premiums Earned		2,834			2,880			7			22				2,841			2,902


Net Losses Paid		1,555			1,916			36			47				1,591			1,963
Increase (Decrease) in Outstanding Losses		4			(344	)		(48	)		(60	)			(44	)		(404	)


Net Losses Incurred		1,559			1,572			(12	)		(13	)			1,547			1,559


Expenses Incurred		835			863			1			14				836			877

Dividends Incurred		6			11			—			—				6			11


Statutory Underwriting Income	$	434		$	434		$	18		$	21				452			455


Decrease in Deferred Acquisition Costs															(16	)		(12	)


GAAP Underwriting Income														$	436		$	443


Ratios After Dividends to Policyholders:

Loss		55.1	%		54.8	%		*	%		*	%			54.6	%		53.9	%
Expense		30.1			30.0			*			*				30.1			30.4


Combined		85.2	%		84.8	%		*	%		*	%			84.7	%		84.3	%


Premiums Written as a % of Total		99.9	%		99.7	%		0.1	%		0.3	%			100.0	%		100.0	%


*		Combined, loss and expense ratios are no longer presented for Reinsurance Assumed since this business is in run-off.

Page 14 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

Outside

the

Worldwide

United States

Total

2009

2008

2009

2008

2009

2008

Net Premiums Written

2,026

2,202

757

697

2,783

2,899

Decrease (Increase) in Unearned Premiums

(35

)

(33

)

Net Premiums Earned

2,119

2,238

722

664

2,841

2,902

Net Losses Paid

1,231

1,555

360

408

1,591

1,963

Increase (Decrease) in Outstanding Losses

(36

)

(352

)

(52

)

(44

)

(404

)

Net Losses Incurred

1,195

1,203

352

356

1,547

1,559

Expenses Incurred

588

638

248

239

836

877

Dividends Incurred

—

Statutory Underwriting Income

330

386

122

452

455

Decrease in Deferred Acquisition Costs

(16

)

(12

)

GAAP Underwriting Income

436

443

Ratios After Dividends to Policyholders:

Loss

56.6

54.0

48.8

53.6

54.6

53.9

Expense

29.1

32.8

34.3

30.1

30.4

Combined

85.7

83.1

81.6

87.9

84.7

84.3

Premiums Written as a % of Total

72.8

76.0

27.2

24.0

100.0

Page 15 of 17

THE CHUBB CORPORATION

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 measured based on statutory underwriting results. Statutory accounting principles applicable to property and casualty insurance companies 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.

Property and Casualty Investment Income After Income Tax

Management uses property and casualty investment income after income tax, a non-GAAP financial measure, to evaluate its investment performance because it reflects the impact of any change in the proportion of the investment portfolio invested in tax exempt securities and is therefore more meaningful for analysis purposes than investment income before income taxes.

Book Value per Common Share with Available-for-Sale Fixed Maturities at Amortized Cost

Book value per common share represents the portion of consolidated shareholders’ equity attributable to one share of common stock outstanding as of the balance sheet date. Consolidated shareholders’ equity includes, as part of accumulated other comprehensive income (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporation’s available-for-sale fixed maturities, which are carried at fair value. The appreciation or depreciation of available-for-sale fixed maturities is subject to fluctuation due to changes in interest rates and therefore could distort the analysis of trends. Management believes that book value per common share with available-for-sale fixed maturities at amortized cost, a non-GAAP financial measure, is an important measure of the underlying equity attributable to one share of common stock.

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.

Page 16 of 17

THE CHUBB CORPORATION

Definitions of Key Terms

Operating Income

Operating income, a non-GAAP financial measure, is net income excluding after-tax realized investment gains and losses. Management uses operating income, among other measures, to evaluate its performance because the realization of investment gains and losses in any given period is largely discretionary as to timing and can fluctuate significantly, which could distort the analysis of trends.

Return on Equity and Operating Return on Equity

Return on equity is the ratio of annualized net income divided by average shareholders’ equity. Average shareholders’ equity is the average of the beginning and all quarter-end balances within the period.

Operating return on equity, a non-GAAP measure, is the ratio of annualized operating income divided by average shareholders’ equity excluding the after-tax unrealized appreciation or depreciation of investments. Consolidated shareholders’ equity includes, as part of accumulated other comprehensive income (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporation’s available-for-sale fixed maturities and equity securities, which are carried at fair value. The appreciation or depreciation of available-for-sale fixed maturities and equity securities is subject to fluctuation and could distort the analysis of trends. Average shareholders’ equity excluding the after-tax unrealized appreciation or depreciation of investments is the average of the beginning and all quarter-end balances within the period. Management uses operating return on equity, among other measures, to assess the overall performance of the Corporation.


	Periods Ended December 31
	Fourth Quarter						Twelve Months
	2009			2008			2009			2008
				(dollars in millions)
Annualized Net Income	$	2,780		$	1,628		$	2,183		$	1,804
Average Shareholders’ Equity	$	15,576		$	13,518		$	14,578		$	13,992

Return on Equity		17.8	%		12.0	%		15.0	%		12.9	%

Annualized Operating Income	$	2,276		$	2,276		$	2,168		$	2,045
Average Shareholders’ Equity Excluding
Unrealized Appreciation or Depreciation	$	14,480		$	13,734		$	14,065		$	13,885

Operating Return on Equity		15.7	%		16.6	%		15.4	%		14.7	%

Page 17 of 17