FORM 8-K

-----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, CnRUAC+nQ/8C7M4m9GPH4n8T0CxxSuXc546+j6Mwj/4neMaESJT3wy9OtL/L13ex Z9aepCBMGHW1zKIABi765Q== 0000950123-05-012531.txt : 20051025 0000950123-05-012531.hdr.sgml : 20051025 20051025162320 ACCESSION NUMBER: 0000950123-05-012531 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20051025 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051025 DATE AS OF CHANGE: 20051025 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: 051154666 BUSINESS ADDRESS: STREET 1: 15 MOUNTAIN VIEW RD P O BOX 1615 CITY: WARREN STATE: NJ ZIP: 07061 BUSINESS PHONE: 9089032000 8-K 1 y13880e8vk.htm THE CHUBB CORPORATION 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)		October 25, 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.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS


	Item 2.02 Results of Operations and Financial Condition.
	Item 9.01 Financial Statements and Exhibits.
SIGNATURES
EX-99.1: PRESS RELEASE
EX-99.2: SUPPLEMENTARY INVESTOR INFORMATION REPORT

Item 2.02 Results of Operations and Financial Condition.

The following information, including the text of the exhibits attached hereto, is furnished pursuant to this Item 2.02 of Form 8-K. On October 25, 2005, The Chubb Corporation (Chubb) issued a press release announcing its results for the quarter ended September 30, 2005. On October 25, 2005, Chubb also posted on its web site at www.chubb.com the Supplementary Investor Information Report (SIIR) relating to its 2005 third quarter results. Copies of the press release and the SIIR are attached to this Form 8-K as Exhibits 99.1 and 99.2, respectively. In its earnings release and the SIIR and in the conference call to discuss its 2005 third quarter results, scheduled to be webcast at 5:00 P.M. on October 25, 2005, Chubb presents, and will present, its results of operations in the manner that it believes is most meaningful to investors, which includes certain measures that are not based on accounting principles generally accepted in the United States, as more fully described in the press release and the SIIR furnished as Exhibits 99.1 and 99.2, respectively, to this Form 8-K and incorporated by reference into this Item 2.02 as if fully set forth herein.

Item 9.01 Financial Statements and Exhibits.

(c)

Exhibits.

	99.1		Press release dated October 25, 2005 (furnished pursuant to Item 2.02 of Form 8-K)

	99.2		Supplementary Investor Information Report (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: October 25, 2005	By:	/s/ Henry B. Schram

		Name: Henry B. Schram Title: Senior Vice President and Chief Accounting Officer

EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K
DATED OCTOBER 25, 2005


Exhibit No.		Description
99.1		Press release dated October 25, 2005 (furnished pursuant to Item 2.02 of Form 8-K)
99.2		Supplementary Investor Information Report (furnished pursuant to Item 2.02 of Form 8-K)

EX-99.1 2 y13880exv99w1.htm EX-99.1: PRESS RELEASE EXHIBIT 99.1

Exhibit 99.1

Chubb Reports Third Quarter Net Income of $246 Million, or $1.20 per Share

Third Quarter Operating Income Is $183 Million, or $0.89 per Share

Results Reflect Costs of $1.62 per Share from Hurricane Katrina

2005 Operating Income per Share Guidance Is Revised to Range of $7.30 to $7.80

WARREN, New Jersey, October 25, 2005 — The Chubb Corporation [NYSE: CB], a leading global property and casualty insurer, today reported that net income in the third quarter of 2005 was $246 million, or $1.20 per share, compared to $364 million, or $1.88 per share, in the third quarter of 2004.

Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, was $183 million, or $0.89 per share, in the third quarter of 2005 and $332 million, or $1.72 per share, in the third quarter of 2004.

Chubb’s results for the third quarter of 2005 were adversely affected by pre-tax costs of $511 million, or $1.62 per share after-tax, related to Hurricane Katrina. This amount includes estimated net losses of $415 million, net reinsurance reinstatement premium costs of $51 million and a $45 million charge representing Chubb’s share of the losses estimated by Allied World Assurance Company, Ltd. related to the hurricane. Other catastrophe losses during the third quarter amounted to $57 million — including an estimated $25 million for Hurricane Rita — bringing the total pre-tax impact of catastrophes in the third quarter to $568 million. Chubb noted that its completion of inspections of additional properties affected by Katrina resulted in a downward revision of the company’s estimate of third quarter catastrophe costs from the $600 million pre-tax amount which was announced on October 6.

“Despite the $1.62 per share impact of Katrina,” said John D. Finnegan, Chairman, President and Chief Executive Officer, “Chubb was able to produce $0.89 per share of operating income in the third quarter, demonstrating the underlying strength of our businesses.”

Net written premiums for the third quarter were $3.0 billion, similar to the third quarter of 2004. Excluding the impact of net reinstatement premium costs related to Katrina, net written premiums increased 1%. Premiums for the insurance business increased 1%. Excluding $102 million of Katrina-related reinstatement premium costs, insurance premiums grew 5% — up 5% in the U.S. and 5% outside the U.S. (1% in local currencies). Premiums for the reinsurance assumed business (Chubb Re) declined 14%; excluding $51 million of reinstatement premium revenues, premiums declined 31%.

The combined loss and expense ratio for the third quarter was 102.2% in 2005 and 93.3% in 2004. The impact of catastrophes on the 2005 third quarter underwriting results was $523 million, including the $51 million of net reinstatement premium costs and $415 million of net losses from Katrina, as well as $57 million of other catastrophe losses. The aggregate impact of all catastrophes represented 17.0 percentage points of the third quarter’s combined ratio. In the third quarter of 2004, catastrophe losses were $196 million, representing 6.7 points of the combined ratio.

The third quarter expense ratio improved to 27.8% in 2005 from 29.4% a year earlier.

Property and casualty investment income after taxes for the third quarter increased 10% to $267 million in 2005 from $242 million in 2004.

Nine Month Results

For the first nine months of 2005, net income was $1.2 billion, or $6.00 per share, compared with $1.1 billion, or $5.61 per share, for the first nine months of 2004. Operating income totaled $1.1 billion, or $5.37 per share, for the first nine months of 2005, compared with $981 million, or $5.10 per share, for the first nine months of 2004.

Net written premiums for the first nine months increased 2% to $9.2 billion. Premiums for the insurance business grew 4%. Premiums for the reinsurance assumed business declined 13%. Excluding the impact of net reinsurance reinstatement premiums related to Katrina: Chubb’s total premiums grew 3%; premiums for the insurance business grew 5% — up 4% in the U.S. and up 8% outside the U.S. (4% in local currencies); and premiums for the reinsurance assumed business declined 19%.

The combined ratio for the first nine months was 93.3% in 2005 and 92.9% in 2004. The impact of catastrophes on underwriting results for the first nine months of 2005 was to reduce premiums by $51 million and increase losses by $513 million. The aggregate impact accounted for 6.1 percentage points of the combined ratio. In the first nine months of 2004, catastrophe losses were $259 million, representing 3.0 percentage points of the combined ratio. This included the release in the second quarter of 2004 of $80 million of net reserves for losses related to the September 11, 2001 attack on the World Trade Center.

The expense ratio for the first nine months improved to 28.2% in 2005 from 29.7% in 2004.

Property and casualty investment income after taxes increased 12% to $780 million in the first nine months of 2005 from $696 million in the corresponding period a year earlier.

Outlook for 2005

“Chubb’s year-to-date operating income of $5.37 per share was the highest in the company’s history for the first nine months,” said Mr. Finnegan. “Based on our expectations for a strong fourth quarter, we now estimate that our full-year 2005 operating income per share will be in the range of $7.30 to $7.80. Due to the uncertainty at this time of the impact of Hurricane Wilma and October rainstorms in the Northeastern United States, this estimate assumes a range of 3 to 6 percentage points of fourth quarter catastrophe losses.”

In July, before Katrina, Chubb had estimated its 2005 operating income per share at $8.30 to $8.70. In 2004, operating income per share was $7.26.

Third Quarter Operations Review

Chubb Personal Insurance (CPI) net written premiums grew 6% to $860 million. Excluding the impact of reinstatement premium costs related to Katrina, premiums grew 8%. CPI’s combined ratio was 94.3%, compared to 100.6% in the third quarter of 2004. The impact of third quarter catastrophes accounted for 15.4 percentage points of the combined ratio in 2005, compared with 17.1 points in 2004. Excluding the impact of catastrophes in both years, the third quarter combined ratio was 78.9% in 2005 and 83.5% in 2004.

The Homeowners line grew 7% (11% excluding the impact of Katrina-related reinstatement premiums). The combined ratio was 90.6%, which included a 22.8 point impact of catastrophes. Personal Automobile grew 3% and had a combined ratio of 102.4%, while Other Personal grew 3% and had a combined ratio of 97.9%.

Chubb Commercial Insurance (CCI) net written premiums declined 6% to $1.1 billion. Excluding the impact of reinstatement premium costs, premiums grew 1%. The combined ratio was 112.8%, compared to 82.9% in the corresponding quarter of 2004. The impact of third quarter catastrophes accounted for 29.7 percentage points of the combined ratio in 2005 and 3.5 points in 2004. Excluding the impact of catastrophes in both years, the third quarter combined ratio was 83.1% in 2005 and 79.4% in 2004.

In the U.S., average renewal rates were down 2% for CCI, which retained 83% of the U.S. premiums that came up for renewal. In the U.S., the ratio of new to lost business was 0.9 to 1.

Chubb Specialty Insurance (CSI) net written premiums grew 7% to $771 million. The combined ratio was 93.8%, compared with 102.4% in the third quarter of 2004.

Professional Liability (PL) net written premiums grew 6%, attributable to the company’s decision not to renew a reinsurance treaty. PL had a combined ratio of 99.1%. In the U.S., average renewal rates for PL were down 2%, the renewal retention rate was 83% and the ratio of new to lost business was 1.2 to 1.

Surety premiums were up 21%, largely attributable to the company’s decision not to renew a reinsurance treaty. The combined ratio was 30.1%.

Reinsurance Assumed net written premiums declined 14% to $259 million; the decline was 31% excluding the impact of net reinstatement premium revenues related to Katrina. The combined ratio was 103.3%, compared to 95.6% in the third quarter of 2004. Excluding the impact of catastrophes in both years, the third quarter combined ratio was 92.6% in 2005 and 87.2% in 2004.

Webcast Conference Call to be Held Today at 5 P.M.

Chubb’s senior management will discuss the company’s third quarter performance today, October 25, at 5:00 P.M. Eastern Daylight Time. The conference call will be webcast live on the Internet at www.chubb.com and archived later in the evening for replay.

About Chubb

Founded in 1882, the Chubb Group of Insurance Companies provide property and casualty insurance for personal and commercial customers worldwide through 8,000 independent agents and brokers. Chubb’s global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.

The company’s Supplementary Investor Information Report has been posted on its Internet site at www.chubb.com.

All financial results in this release and attachments are unaudited. Segment information for 2004 reflects the business unit realignment announced in February 2005.


For further information contact:	Investors:	Glenn A. Montgomery
		(908) 903-2365

	Media:	Todd Fogarty
		(908) 903-3807
		Mark E. Greenberg
		(908) 903-2682

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.

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 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 tax.

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, the after-tax appreciation or depreciation on the Corporation’s available-for-sale fixed maturities, which are carried at market value. The appreciation or depreciation on 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.

FORWARD-LOOKING INFORMATION

Certain statements in this document are “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements are made pursuant to the safe harbor provisions of the PSLRA and include statements regarding management’s guidance for 2005 operating income per share. Forward-looking statements are made based upon management’s current expectations and beliefs concerning trends and future developments and their potential effects on us. These statements are not guarantees of future performance. Actual results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, which include, among others, those discussed or identified from time to time in our public filings with the Securities and Exchange Commission and those associated with:

•		the availability of primary and reinsurance coverage, including the implications relating to terrorism legislation and regulation;

•		global political conditions and the occurrence of terrorist attacks, including any nuclear, biological, chemical or radiological events;

•		the effects of the outbreak or escalation of war or hostilities;

•		premium pricing and profitability or growth estimates overall or by lines of business or geographic area, and related expectations with respect to the timing and terms of any required regulatory approvals;

•		adverse changes in loss cost trends;

•		our ability to retain existing business;

•		our expectations with respect to cash flow projections and investment income and with respect to other income;

•		the adequacy of loss reserves, including:

	-		our expectations relating to reinsurance recoverables;

	-		the effects of proposed asbestos liability legislation, including the impact of claims patterns arising from the possibility of legislation and those that may arise if legislation is not passed;

	-		our estimates relating to ultimate asbestos liabilities;

	-		the impact from the bankruptcy protection sought by various asbestos producers and other related businesses;

	-		the willingness of parties, including us, to settle disputes;

	-		developments in judicial decisions or regulatory or legislative actions relating to coverage and liability for asbestos, toxic waste and mold claims;

	-		development of new theories of liability;

•		the impact of economic factors on companies on whose behalf we have issued surety bonds, and in particular, on those companies that have filed for bankruptcy or otherwise experienced deterioration in creditworthiness;

•		the effects of disclosures by, and investigations of, public companies relating to possible accounting irregularities, practices in the financial services industry and other corporate governance issues, including:

	-		the effects on the capital markets and the markets for directors and officers and errors and omissions insurance;

	-		claims and litigation arising out of actual or alleged accounting or other corporate malfeasance by other companies;

	-		claims and litigation arising out of practices in the financial services industry;

	-		legislative or regulatory proposals or changes;

•		the effects of investigations into market practices in the U.S. property and casualty insurance industry and any legal or regulatory proceedings arising therefrom;

•		the occurrence of significant weather-related or other natural or human-made disasters, particularly in locations where we have concentrations of risk;

•		any downgrade in our claims-paying, financial strength or other credit ratings;

•		the ability of our subsidiaries to pay us dividends;

•		general economic conditions including:

	-		changes in interest rates, market credit spreads and the performance of the financial markets;

	-		the effects of inflation;

	-		changes in domestic and foreign laws, regulations and taxes;

	-		changes in competition and pricing environments;

	-		regional or general changes in asset valuations;

	-		the inability to reinsure certain risks economically;

	-		changes in the litigation environment;

	-		general market conditions; and

•

our ability to implement management’s strategic plans and initiatives.

The Corporation assumes no obligation to update any forward-looking information set forth in this document, which speak as of the date hereof.

THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA
(Unaudited)


	Periods Ended September 30
	Third Quarter						Nine Months
	2005			2004			2005			2004
	(in millions)
PROPERTY AND CASUALTY INSURANCE
Underwriting
Net Premiums Written	$	3,016.6		$	3,025.7		$	9,185.3		$	8,972.7
Decrease (Increase) in Unearned Premiums		26.2			(70.7	)		(88.9	)		(362.1	)

Premiums Earned		3,042.8			2,955.0			9,096.4			8,610.6

Losses and Loss Expenses		2,260.4			1,881.8			5,914.3			5,428.3
Operating Costs and Expenses		835.5			888.1			2,583.7			2,658.7
Increase in Deferred Policy Acquisition Costs		(1.3	)		(15.6	)		(10.3	)		(65.0	)
Dividends to Policyholders		7.2			7.3			19.0			21.8


Underwriting Income (Loss)		(59.0	)		193.4			589.7			566.8


Investments
Investment Income Before Expenses		339.6			304.2			992.5			885.0
Investment Expenses		6.2			5.1			20.6			17.2


Investment Income		333.4			299.1			971.9			867.8


Other Charges		(.7	)		(1.2	)		(2.9	)		(3.7	)


Property and Casualty Income		273.7			491.3			1,558.7			1,430.9

CHUBB FINANCIAL SOLUTIONS NON-INSURANCE BUSINESS		(6.5	)		.2			(7.2	)		(17.0	)

CORPORATE AND OTHER		(62.0	)		(60.3	)		(147.9	)		(125.0	)


CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX		205.2			431.2			1,403.6			1,288.9

Federal and Foreign Income Tax		21.8			98.9			318.4			307.5


CONSOLIDATED OPERATING INCOME		183.4			332.3			1,085.2			981.4

REALIZED INVESTMENT GAINS AFTER INCOME TAX		63.0			31.7			126.3			99.4


CONSOLIDATED NET INCOME	$	246.4		$	364.0		$	1,211.5		$	1,080.8


PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX	$	266.9		$	241.6		$	780.4		$	695.8


	Periods Ended September 30
	Third Quarter						Nine Months
	2005			2004			2005			2004
OUTSTANDING SHARE DATA
(in millions)
Average Common and Potentially Dilutive Shares		205.3			193.3			202.0			192.5
Actual Common Shares at End of Period		199.9			191.6			199.9			191.6

DILUTED EARNINGS PER SHARE DATA
Operating Income	$	.89		$	1.72		$	5.37		$	5.10
Realized Investment Gains		.31			.16			.63			.51

Net Income	$	1.20		$	1.88		$	6.00		$	5.61


Effect of Catastrophes (excluding investment in Allied World Assurance Company, Ltd.)
Hurricane Katrina	$	(1.48	)	$	—		$	(1.50	)	$	—
September 11 Attack		—			—			—			.27
All Other		(.18	)		(.66	)		(.31	)		(1.14	)

Total	$	(1.66	)	$	(.66	)	$	(1.81	)	$	(.87	)


Effect of Chubb Financial Solutions Non-Insurance Business	$	(.02	)	$	—		$	(.02	)	$	(.06	)


	Sept. 30		Dec. 31		Sept. 30
	2005		2004		2004
BOOK VALUE PER COMMON SHARE	$	56.57	$	52.55	$	50.01

BOOK VALUE PER COMMON SHARE,
with Available-for-Sale Fixed Maturities at Amortized Cost		55.04		49.83		47.24

PROPERTY AND CASUALTY UNDERWRITING RATIOS
PERIODS ENDED SEPTEMBER 30


	Third Quarter						Nine Months
	2005			2004			2005			2004
Losses and Loss Expenses to Premiums Earned		74.4	%		63.9	%		65.1	%		63.2	%
Underwriting Expenses to Premiums Written		27.8			29.4			28.2			29.7


Combined Loss and Expense Ratio		102.2	%		93.3	%		93.3	%		92.9	%


Effect of Catastrophes on Combined Loss and Expense Ratio
Hurricane Katrina		15.1	%		—	%		5.0	%		—	%
September 11 Attack		—			—			—			(.9	)
All Other		1.9			6.7			1.1			3.9


Total		17.0	%		6.7	%		6.1	%		3.0	%

PROPERTY AND CASUALTY LOSSES AND LOSS EXPENSES COMPONENTS
PERIODS ENDED SEPTEMBER 30


	Third Quarter				Nine Months
	2005		2004		2005		2004
	(in millions)
Paid Losses and Loss Expenses	$	1,285.7	$	1,175.6	$	4,153.6	$	3,783.5
Increase in Unpaid Losses and Loss Expenses		974.7		706.2		1,760.7		1,644.8


Total Losses and Loss Expenses	$	2,260.4	$	1,881.8	$	5,914.3	$	5,428.3

The increase in unpaid losses and loss expenses for both the third quarter and the first nine months of 2005 includes $412.5 million related to Hurricane Katrina.

PROPERTY AND CASUALTY PRODUCT MIX

NINE MONTHS ENDED SEPTEMBER 30


	Net Premiums Written
	2005						2004		% Increase (Decrease)
				Excluding								Excluding
				Hurricane								Hurricane
				Katrina								Katrina
				Reinstatement								Reinstatement
	Total			Premiums			Total		Total			Premiums
				(in millions)
Personal Insurance
Automobile	$	486.0		$	486.0		$	474.1		3	%		3	%
Homeowners		1,583.6			1,601.3			1,454.4		9			10
Other		417.1			417.1			409.0		2			2

Total Personal		2,486.7			2,504.4			2,337.5		6			7


Commercial Insurance
Multiple Peril		935.2			949.2			966.5		(3	)		(2	)
Casualty		1,320.4			1,320.4			1,264.1		4			4
Workers’ Compensation		726.2			726.2			682.3		6			6
Property and Marine		778.3			848.6			813.6		(4	)		4

Total Commercial		3,760.1			3,844.4			3,726.5		1			3


Specialty Insurance
Professional Liability		2,034.8			2,034.8			1,919.6		6			6
Surety		178.0			178.0			154.8		15			15

Total Specialty		2,212.8			2,212.8			2,074.4		7			7


Total Insurance		8,459.6			8,561.6			8,138.4		4			5

Reinsurance Assumed		725.7			674.7			834.3		(13	)		(19	)

Total	$	9,185.3		$	9,236.3		$	8,972.7		2			3

	Combined Loss and
	Expense Ratios
	2005			2004
Personal Insurance
Automobile		97.7	%		94.2	%
Homeowners		81.5			97.1
Other		91.9			93.2

Total Personal		86.5			95.8


Commercial Insurance
Multiple Peril		89.4			74.5
Casualty		97.1			85.3
Workers’ Compensation		84.6			89.4
Property and Marine		104.2			71.3

Total Commercial		94.2			79.8


Specialty Insurance
Professional Liability		100.7			114.6
Surety		73.0			69.5

Total Specialty		98.9			111.5


Total Insurance		93.2			92.7

Reinsurance Assumed		94.8			94.6


Total		93.3	%		92.9	%

The property and casualty product mix for 2004 includes certain reclassifications to conform with the 2005 presentation, which more closely reflects the way the property and casualty business is now managed. The total net premiums written and combined loss and expense ratio are not affected.

PROPERTY AND CASUALTY PRODUCT MIX

QUARTER ENDED SEPTEMBER 30


	Net Premiums Written
	2005						2004		% Increase (Decrease)
				Excluding								Excluding
				Hurricane								Hurricane
				Katrina								Katrina
				Reinstatement								Reinstatement
	Total			Premiums			Total		Total			Premiums
				(in millions)
Personal Insurance
Automobile	$	169.2		$	169.2		$	163.7		3	%		3	%
Homeowners		563.8			581.5			525.5		7			11
Other		127.0			127.0			122.9		3			3

Total Personal		860.0			877.7			812.1		6			8


Commercial Insurance
Multiple Peril		294.3			308.3			317.5		(7	)		(3	)
Casualty		410.5			410.5			407.1		1			1
Workers’ Compensation		230.0			230.0			213.2		8			8
Property and Marine		191.9			262.2			256.3		(25	)		2

Total Commercial		1,126.7			1,211.0			1,194.1		(6	)		1


Specialty Insurance
Professional Liability		697.3			697.3			659.3		6			6
Surety		73.3			73.3			60.4		21			21

Total Specialty		770.6			770.6			719.7		7			7


Total Insurance		2,757.3			2,859.3			2,725.9		1			5

Reinsurance Assumed		259.3			208.3			299.8		(14	)		(31	)


Total	$	3,016.6		$	3,067.6		$	3,025.7		—			1

	Combined Loss and
	Expense Ratios
	2005			2004
Personal Insurance
Automobile		102.4	%		92.5	%
Homeowners		90.6			102.0
Other		97.9			104.7

Total Personal		94.3			100.6


Commercial Insurance
Multiple Peril		103.3			79.0
Casualty		96.7			88.5
Workers’ Compensation		84.1			87.7
Property and Marine		192.0			75.1

Total Commercial		112.8			82.9


Specialty Insurance
Professional Liability		99.1			102.7
Surety		30.1			100.3

Total Specialty		93.8			102.4


Total Insurance		102.1			93.0

Reinsurance Assumed		103.3			95.6


Total		102.2	%		93.3	%

EX-99.2 3 y13880exv99w2.htm EX-99.2: SUPPLEMENTARY INVESTOR INFORMATION REPORT EXHIBIT 99.2


The Chubb Corporation	Supplementary Investor Information	September 30, 2005


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

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 and the nine months ended September 30, 2004 presented herein have been reclassified to conform to the new reporting format.

THE CHUBB CORPORATION
SUPPLEMENTARY INVESTOR INFORMATION
TABLE OF CONTENTS
SEPTEMBER 30, 2005


	Page
The Chubb Corporation:
Consolidated Balance Sheet Highlights		1

Summary of Invested Assets:
Corporate		2
Property and Casualty		2

Investment Income After Taxes:
Corporate		3
Property and Casualty		3

Property and Casualty Insurance Group:
Statutory Policyholders’ Surplus		3
Change in Net Unpaid Losses		4
Impact of Catastrophes on Results		5
Underwriting Results — Year-To-Date		6-10
Underwriting Results — Quarterly		11-15

Definitions of Key Terms		16

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS


	Sept. 30			Dec. 31
	2005			2004
	(in millions)
Invested Assets (at carrying value)
Short Term Investments	$	1,378.6		$	1,307.5
Fixed Maturities
Tax Exempt		15,566.1			14,388.5
Taxable		14,482.0			13,620.8
Equity Securities		2,058.4			1,841.3

Total Invested Assets	$	33,485.1		$	31,158.1


Unrealized Appreciation of Fixed Maturities Carried at Amortized Cost	$	13.2		$	21.1


Capitalization
Long Term Debt	$	2,507.8		$	2,813.7
Shareholders’ Equity		11,309.1			10,126.4

Total Capitalization	$	13,816.9		$	12,940.1


DEBT AS A PERCENTAGE OF TOTAL CAPITALIZATION		18.2	%		21.7	%

Actual Common Shares Outstanding		199.9			192.7

Book Value Per Common Share	$	56.57		$	52.55

Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	55.04		$	49.83

Page 1 of 16

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

CORPORATE


	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	Sept. 30		Dec. 31		Sept. 30		Dec. 31		Sept. 30		Dec. 31
	2005		2004		2005		2004		2005		2004
	(in millions)
Short Term Investments	$	277.1	$	219.8	$	277.1	$	219.8	$	277.1	$	219.8

Taxable Fixed Maturities		1,190.8		1,098.5		1,178.6		1,108.7		1,178.6		1,108.7

Equity Securities		4.6		4.7		7.6		7.3		7.6		7.3


TOTAL	$	1,472.5	$	1,323.0	$	1,463.3	$	1,335.8	$	1,463.3	$	1,335.8

PROPERTY AND CASUALTY


	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	Sept. 30		Dec. 31		Sept. 30		Dec. 31		Sept. 30		Dec. 31
	2005		2004		2005		2004		2005		2004
	(in millions)
Short Term Investments	$	1,101.5	$	1,087.7	$	1,101.5	$	1,087.7	$	1,101.5	$	1,087.7

Fixed Maturities

Tax Exempt		15,215.3		13,839.8		15,579.3		14,409.6		15,566.1		14,388.5

Taxable		13,170.7		12,264.2		13,303.4		12,512.1		13,303.4		12,512.1

Common Stocks		1,859.7		1,645.7		1,994.3		1,791.3		1,994.3		1,791.3

Preferred Stocks		52.3		36.9		56.5		42.7		56.5		42.7


TOTAL	$	31,399.5	$	28,874.3	$	32,035.0	$	29,843.4	$	32,021.8	$	29,822.3

Page 2 of 16

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES


	PERIODS ENDED SEPTEMBER 30
	THIRD QUARTER						NINE MONTHS
	2005			2004			2005			2004
				(in millions)
CORPORATE INVESTMENT INCOME	$	10.4		$	8.1		$	29.3		$	22.8

PROPERTY AND CASUALTY INVESTMENT INCOME
(Amounts are shown net of applicable income taxes)
Dividends	$	9.6		$	10.7		$	30.6		$	26.2
Taxable Interest		107.4			92.1			306.2			272.7
Tax Exempt Interest		154.0			142.2			457.0			408.1
Investment Expenses		(4.1	)		(3.4	)		(13.4	)		(11.2	)


TOTAL	$	266.9		$	241.6		$	780.4		$	695.8


Effective Tax Rate		19.9	%		19.2	%		19.7	%		19.8	%

After Tax Annualized Yield		3.45	%		3.56	%		3.44	%		3.54	%

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 market value.

PROPERTY AND CASUALTY STATUTORY POLICYHOLDERS’ SURPLUS


	Sept. 30		Dec. 31		Sept. 30
	2005		2004		2004
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	8,650	$	7,848	$	7,350

Rolling Year Statutory Net Premiums Written		12,202		12,005		11,905

Ratio of Statutory Net Premiums Written to Estimated Policyholders’ Surplus		1.41:1		1.53:1		1.62:1

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

Page 3 of 16

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES
NINE MONTHS ENDED SEPTEMBER 30, 2005


											All other
	Net Unpaid Losses							IBNR			Unpaid Losses
					Increase			Increase			Increase
	9/30/05		12/31/04		(Decrease)			(Decrease)			(Decrease)
	(in millions)
Personal Insurance
Automobile	$	426.9	$	378.4	$	48.5		$	15.0		$	33.5
Homeowners		746.3		679.6		66.7			84.0			(17.3	)
Other		566.3		521.3		45.0			29.0			16.0

Total Personal		1,739.5		1,579.3		160.2			128.0			32.2


Commercial Insurance
Multiple Peril		1,600.0		1,469.8		130.2			131.2			(1.0	)
Casualty		4,780.6		4,405.9		374.7			314.2			60.5
Workers’ Compensation		1,489.4		1,311.2		178.2			153.5			24.7
Property and Marine		788.1		617.3		170.8			168.1			2.7

Total Commercial		8,658.1		7,804.2		853.9			767.0			86.9


Specialty Insurance
Professional Liability		6,689.5		6,188.2		501.3			478.4			22.9
Surety		84.6		88.2		(3.6	)		(.6	)		(3.0	)

Total Specialty		6,774.1		6,276.4		497.7			477.8			19.9

Total Insurance		17,171.7		15,659.9		1,511.8			1,372.8			139.0
Reinsurance Assumed		1,397.7		1,148.8		248.9			210.4			38.5


Total	$	18,569.4	$	16,808.7	$	1,760.7		$	1,583.2		$	177.5

The net unpaid losses as of December 31, 2004 include certain reclassifications to conform with the 2005 presentation. The total net unpaid losses is not affected.

Page 4 of 16

THE CHUBB CORPORATION

IMPACT OF CATASTROPHES ON RESULTS
IN THE THIRD QUARTER OF 2005


	Reinsurance
	Reinstatement
	Premium
	Cost			Insurance		Corporate		Pre-tax
	(Revenue)			Losses		Loss		Cost
Hurricane Katrina
Personal Insurance
gross	$	—		$	193.7			$	193.7
ceded		17.7			114.2				96.5

net		17.7			79.5				97.2

Commercial Insurance
gross		—			871.5				871.5
ceded		84.3			616.0				531.7

net		84.3			255.5				339.8

Total Insurance
gross		—			1,065.2				1,065.2
ceded		102.0			730.2				628.2

net		102.0			335.0				437.0

Reinsurance Assumed
gross		(59.0	)		124.0				65.0
ceded		8.0			44.0				36.0

net		(51.0	)		80.0				29.0

Total Underwriting
gross		(59.0	)		1,189.2				1,130.2
ceded		110.0			774.2				664.2

net		51.0			415.0				466.0

Investment in Allied World Assurance Company, Ltd.						$	45.0		45.0


Total Hurricane Katrina		51.0			415.0		45.0		511.0

Hurricane Rita					25.0				25.0

All other catastrophes					32.0				32.0

	$	51.0		$	472.0	$	45.0	$	568.0

Page 5 of 16

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

Personal

Other

Total

Automobile

Homeowners

Personal

2005

2004

2005

2004

2005

2004

2005

2004

Net Premiums Written

486.0

474.1

1,583.6

1,454.4

417.1

409.0

2,486.7

2,337.5

Increase (Decrease) in Unearned Premiums

12.7

20.9

79.9

73.7

3.5

13.9

96.1

108.5

Net Premiums Earned

473.3

453.2

1,503.7

1,380.7

413.6

395.1

2,390.6

2,229.0

Net Losses Paid

289.7

270.0

693.1

742.2

211.3

201.5

1,194.1

1,213.7

Increase (Decrease) in Outstanding Losses

48.5

33.8

66.7

145.7

45.0

44.1

160.2

223.6

Net Losses Incurred

338.2

303.8

759.8

887.9

256.3

245.6

1,354.3

1,437.3

Expenses Incurred

127.6

128.6

490.2

477.0

124.9

127.1

742.7

732.7

Dividends Incurred

—

Statutory Underwriting Income (Loss)

7.5

20.8

253.7

15.8

32.4

22.4

293.6

59.0

Ratios After Dividends to Policyholders:

Loss

71.4

67.1

50.5

64.3

62.0

62.1

56.6

64.5

Expense

26.3

27.1

31.0

32.8

29.9

31.1

29.9

31.3

Combined

97.7

94.2

81.5

97.1

91.9

93.2

86.5

95.8

Premiums Written as a % of Total

5.3

17.2

16.2

4.5

27.0

26.0

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

486.0

474.1

1,601.3

1,454.4

417.1

409.0

2,504.4

2,337.5

Net Premiums Earned

473.3

453.2

1,521.4

1,380.7

413.6

395.1

2,408.3

2,229.0

Net Losses Incurred

332.8

300.9

631.4

652.3

257.8

243.6

1,222.0

1,196.8

Statutory Underwriting Income (Loss)

12.9

23.7

399.8

251.4

30.9

24.4

443.6

299.5

Combined Ratio

96.6

93.6

72.1

80.0

92.3

92.7

80.4

85.0

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

Page 6 of 16

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

Commercial

Workers’

Property

Total

Multiple Peril

Casualty

Compensation

and Marine

Commercial

2005

2004

2005

2004

2005

2004

2005

2004

2005

2004

Net Premiums Written

935.2

966.5

1,320.4

1,264.1

726.2

682.3

778.3

813.6

3,760.1

3,726.5

Increase (Decrease) in Unearned Premiums

(38.3

)

34.5

23.4

84.2

34.6

63.5

13.4

9.4

33.1

191.6

Net Premiums Earned

973.5

932.0

1,297.0

1,179.9

691.6

618.8

764.9

804.2

3,727.0

3,534.9

Net Losses Paid

415.1

382.1

550.9

585.8

247.9

232.5

355.7

332.2

1,569.6

1,532.6

Increase (Decrease) in Outstanding Losses

130.2

(7.2

)

374.7

105.1

178.2

166.6

170.8

(44.0

)

853.9

220.5

Net Losses Incurred

545.3

374.9

925.6

690.9

426.1

399.1

526.5

288.2

2,423.5

1,753.1

Expenses Incurred

312.2

331.4

339.9

338.4

152.2

151.1

275.1

288.6

1,079.4

1,109.5

Dividends Incurred

—

17.0

19.3

—

17.0

19.3

Statutory Underwriting Income (Loss)

116.0

225.7

31.5

150.6

96.3

49.3

(36.7

)

227.4

207.1

653.0

Ratios After Dividends to Policyholders:

Loss

56.0

40.2

71.4

58.5

63.1

66.6

68.8

35.8

65.3

49.9

Expense

33.4

34.3

25.7

26.8

21.5

22.8

35.4

35.5

28.9

29.9

Combined

89.4

74.5

97.1

85.3

84.6

89.4

104.2

71.3

94.2

79.8

Premiums Written as a % of Total

10.2

10.8

14.4

14.1

7.9

7.6

8.5

9.1

41.0

41.6

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

949.2

966.5

1,320.4

1,264.1

726.2

682.3

848.6

813.6

3,844.4

3,726.5

Net Premiums Earned

987.5

932.0

1,297.0

1,179.9

691.6

618.8

835.2

804.2

3,811.3

3,534.9

Net Losses Incurred

469.2

368.2

923.3

720.2

426.7

400.2

305.6

271.0

2,124.8

1,759.6

Statutory Underwriting Income (Loss)

206.1

232.4

33.8

121.3

95.7

48.2

254.5

244.6

590.1

646.5

Combined Ratio

80.4

73.8

96.9

87.8

84.7

89.6

69.0

69.2

84.2

80.0

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

Page 7 of 16

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

Professional

Total

Liability

Surety

Specialty

2005

2004

2005

2004

2005

2004

Net Premiums Written

2,034.8

1,919.6

178.0

154.8

2,212.8

2,074.4

Increase (Decrease) in Unearned Premiums

(19.0

)

16.1

25.7

7.4

6.7

23.5

Net Premiums Earned

2,053.8

1,903.5

152.3

147.4

2,206.1

2,050.9

Net Losses Paid

1,102.5

851.9

61.9

(4.2

)

1,164.4

847.7

Increase (Decrease) in Outstanding Losses

501.3

848.3

(3.6

)

45.1

497.7

893.4

Net Losses Incurred

1,603.8

1,700.2

58.3

40.9

1,662.1

1,741.1

Expenses Incurred

459.3

485.3

60.2

62.8

519.5

548.1

Dividends Incurred

—

2.0

2.5

2.0

2.5

Statutory Underwriting Income (Loss)

(9.3

)

(282.0

)

31.8

41.2

22.5

(240.8

)

Ratios After Dividends to Policyholders:

Loss

78.1

89.3

38.8

28.2

75.4

85.0

Expense

22.6

25.3

34.2

41.3

23.5

26.5

Combined

100.7

114.6

73.0

69.5

98.9

111.5

Premiums Written as a % of Total

22.2

21.4

1.9

1.7

24.1

23.1

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

2,034.8

1,919.6

178.0

154.8

2,212.8

2,074.4

Net Premiums Earned

2,053.8

1,903.5

152.3

147.4

2,206.1

2,050.9

Net Losses Incurred

1,603.3

1,700.2

58.3

40.9

1,661.6

1,741.1

Statutory Underwriting Income (Loss)

(8.8

)

(282.0

)

31.8

41.2

23.0

(240.8

)

Combined Ratio

100.6

114.6

73.0

69.5

98.9

111.5

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

Page 8 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE 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

8,459.6

8,138.4

725.7

834.3

9,185.3

8,972.7

Increase (Decrease) in Unearned Premiums

135.9

323.6

(47.0

)

38.5

88.9

362.1

Net Premiums Earned

8,323.7

7,814.8

772.7

795.8

9,096.4

8,610.6

Net Losses Paid

3,928.1

3,594.0

225.5

189.5

4,153.6

3,783.5

Increase (Decrease) in Outstanding Losses

1,511.8

1,337.5

248.9

307.3

1,760.7

1,644.8

Net Losses Incurred

5,439.9

4,931.5

474.4

496.8

5,914.3

5,428.3

Expenses Incurred

2,341.6

2,390.3

242.1

268.4

2,583.7

2,658.7

Dividends Incurred

19.0

21.8

—

19.0

21.8

Statutory Underwriting Income (Loss)

523.2

471.2

56.2

30.6

579.4

501.8

Increase in Deferred Acquisition Costs

10.3

65.0

GAAP Underwriting Income

589.7

566.8

Ratios After Dividends to Policyholders:

Loss

65.5

63.3

61.4

62.4

65.1

63.2

Expense

27.7

29.4

33.4

32.2

28.2

29.7

Combined

93.2

92.7

94.8

94.6

93.3

92.9

Premiums Written as a % of Total

92.1

90.7

7.9

9.3

100.0

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

8,561.6

8,138.4

674.7

834.3

9,236.3

8,972.7

Net Premiums Earned

8,425.7

7,814.8

721.7

795.8

9,147.4

8,610.6

Net Losses Incurred

5,008.4

4,697.5

393.3

472.3

5,401.7

5,169.8

Statutory Underwriting Income (Loss)

1,056.7

705.2

86.3

55.1

1,143.0

760.3

Combined Ratio

87.0

89.7

90.4

91.5

87.2

89.9

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

Page 9 of 16

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

Worldwide

United States

Foreign

Total

2005

2004

2005

2004

2005

2004

Net Premiums Written

7,456.2

7,376.2

1,729.1

1,596.5

9,185.3

8,972.7

Increase (Decrease) in Unearned Premiums

66.3

320.9

22.6

41.2

88.9

362.1

Net Premiums Earned

7,389.9

7,055.3

1,706.5

1,555.3

9,096.4

8,610.6

Net Losses Paid

3,449.1

3,254.6

704.5

528.9

4,153.6

3,783.5

Increase (Decrease) in Outstanding Losses

1,486.8

1,262.5

273.9

382.3

1,760.7

1,644.8

Net Losses Incurred

4,935.9

4,517.1

978.4

911.2

5,914.3

5,428.3

Expenses Incurred

2,016.2

2,116.0

567.5

542.7

2,583.7

2,658.7

Dividends Incurred

19.0

21.8

—

19.0

21.8

Statutory Underwriting Income (Loss)

418.8

400.4

160.6

101.4

579.4

501.8

Increase in Deferred Acquisition Costs

10.3

65.0

GAAP Underwriting Income

589.7

566.8

Ratios After Dividends to Policyholders:

Loss

67.0

64.2

57.3

58.6

65.1

63.2

Expense

27.1

28.8

32.8

34.0

28.2

29.7

Combined

94.1

93.0

90.1

92.6

93.3

92.9

Premiums Written as a % of Total

81.2

82.2

18.8

17.8

100.0

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

7,507.2

7,376.2

1,729.1

1,596.5

9,236.3

8,972.7

Net Premiums Earned

7,440.9

7,055.3

1,706.5

1,555.3

9,147.4

8,610.6

Net Losses Incurred

4,447.7

4,258.6

954.0

911.2

5,401.7

5,169.8

Statutory Underwriting Income (Loss)

958.0

658.9

185.0

101.4

1,143.0

760.3

Combined Ratio

86.9

89.3

88.7

92.6

87.2

89.9

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

Page 10 of 16

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

Personal

Other

Total

Automobile

Homeowners

Personal

2005

2004

2005

2004

2005

2004

2005

2004

Net Premiums Written

169.2

163.7

563.8

525.5

127.0

122.9

860.0

812.1

Increase (Decrease) in Unearned Premiums

8.5

10.1

63.3

59.2

(8.2

)

(9.0

)

63.6

60.3

Net Premiums Earned

160.7

153.6

500.5

466.3

135.2

131.9

796.4

751.8

Net Losses Paid

103.3

89.8

215.8

249.1

69.1

73.7

388.2

412.6

Increase (Decrease) in Outstanding Losses

19.9

11.5

83.4

78.1

20.2

22.1

123.5

111.7

Net Losses Incurred

123.2

101.3

299.2

327.2

89.3

95.8

511.7

524.3

Expenses Incurred

43.6

43.4

173.9

167.5

40.5

39.4

258.0

250.3

Dividends Incurred

—

Statutory Underwriting Income (Loss)

(6.1

)

8.9

27.4

(28.4

)

5.4

(3.3

)

26.7

(22.8

)

Ratios After Dividends to Policyholders:

Loss

76.6

66.0

59.8

70.1

66.0

72.6

64.3

69.8

Expense

25.8

26.5

30.8

31.9

32.1

30.0

30.8

Combined

102.4

92.5

90.6

102.0

97.9

104.7

94.3

100.6

Premiums Written as a % of Total

5.6

5.4

18.7

17.4

4.2

4.0

28.5

26.8

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

169.2

163.7

581.5

525.5

127.0

122.9

877.7

812.1

Net Premiums Earned

160.7

153.6

518.2

466.3

135.2

131.9

814.1

751.8

Net Losses Incurred

118.3

99.5

196.3

202.1

88.6

93.8

403.2

395.4

Statutory Underwriting Income (Loss)

(1.2

)

10.7

148.0

96.7

6.1

(1.3

)

152.9

106.1

Combined Ratio

99.4

91.3

67.8

75.2

97.4

103.2

78.9

83.5

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

Page 11 of 16

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

Commercial

Workers’

Property

Total

Multiple Peril

Casualty

Compensation

and Marine

Commercial

2005

2004

2005

2004

2005

2004

2005

2004

2005

2004

Net Premiums Written

294.3

317.5

410.5

407.1

230.0

213.2

191.9

256.3

1,126.7

1,194.1

Increase (Decrease) in Unearned Premiums

(20.5

)

4.0

(27.4

)

(5.3

)

(7.8

)

(3.6

)

(20.0

)

(12.9

)

(75.7

)

(17.8

)

Net Premiums Earned

314.8

313.5

437.9

412.4

237.8

216.8

211.9

269.2

1,202.4

1,211.9

Net Losses Paid

127.0

113.2

160.5

141.2

75.9

73.6

115.5

99.5

478.9

427.5

Increase (Decrease) in Outstanding Losses

89.1

25.9

151.3

116.0

70.0

61.1

207.4

8.3

517.8

211.3

Net Losses Incurred

216.1

139.1

311.8

257.2

145.9

134.7

322.9

107.8

996.7

638.8

Expenses Incurred

102.1

109.9

104.5

106.3

47.4

49.3

76.1

89.8

330.1

355.3

Dividends Incurred

—

5.9

—

5.9

Statutory Underwriting Income (Loss)

(3.4

)

64.5

21.6

48.9

38.6

26.9

(187.1

)

71.6

(130.3

)

211.9

Ratios After Dividends to Policyholders:

Loss

68.6

44.4

71.2

62.4

62.9

63.9

152.3

40.1

83.3

53.0

Expense

34.7

34.6

25.5

26.1

21.2

23.8

39.7

35.0

29.5

29.9

Combined

103.3

79.0

96.7

88.5

84.1

87.7

192.0

75.1

112.8

82.9

Premiums Written as a % of Total

9.8

10.5

13.6

13.5

7.6

7.0

6.4

8.5

37.4

39.5

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

308.3

317.5

410.5

407.1

230.0

213.2

262.2

256.3

1,211.0

1,194.1

Net Premiums Earned

328.8

313.5

437.9

412.4

237.8

216.8

282.2

269.2

1,286.7

1,211.9

Net Losses Incurred

139.0

116.5

309.7

257.0

146.4

134.7

118.8

87.9

713.9

596.1

Statutory Underwriting Income (Loss)

87.7

87.1

23.7

49.1

38.1

26.9

87.3

91.5

236.8

254.6

Combined Ratio

75.4

71.8

96.2

88.5

84.3

87.7

71.1

67.7

83.1

79.4

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

Page 12 of 16

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

Professional

Total

Liability

Surety

Specialty

2005

2004

2005

2004

2005

2004

Net Premiums Written

697.3

659.3

73.3

60.4

770.6

719.7

Increase (Decrease) in Unearned Premiums

0.8

21.9

12.6

(0.6

)

13.4

21.3

Net Premiums Earned

696.5

637.4

60.7

61.0

757.2

698.4

Net Losses Paid

342.0

256.5

14.1

(6.7

)

356.1

249.8

Increase (Decrease) in Outstanding Losses

201.4

245.3

(12.7

)

39.7

188.7

285.0

Net Losses Incurred

543.4

501.8

1.4

33.0

544.8

534.8

Expenses Incurred

146.8

157.8

20.0

26.5

166.8

184.3

Dividends Incurred

—

1.3

1.4

1.3

1.4

Statutory Underwriting Income (Loss)

6.3

(22.2

)

38.0

0.1

44.3

(22.1

)

Ratios After Dividends to Policyholders:

Loss

78.0

78.8

2.3

55.4

72.1

76.7

Expense

21.1

23.9

27.8

44.9

21.7

25.7

Combined

99.1

102.7

30.1

100.3

93.8

102.4

Premiums Written as a % of Total

23.1

21.8

2.4

2.0

25.5

23.8

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

697.3

659.3

73.3

60.4

770.6

719.7

Net Premiums Earned

696.5

637.4

60.7

61.0

757.2

698.4

Net Losses Incurred

542.9

501.8

1.4

33.0

544.3

534.8

Statutory Underwriting Income (Loss)

6.8

(22.2

)

38.0

0.1

44.8

(22.1

)

Combined Ratio

99.0

102.7

30.1

100.3

93.7

102.4

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

Page 13 of 16

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

Total

Reinsurance

Worldwide

Insurance

Assumed

Total

2005

2004

2005

2004

2005

2004

Net Premiums Written

2,757.3

2,725.9

259.3

299.8

3,016.6

3,025.7

Increase (Decrease) in Unearned Premiums

1.3

63.8

(27.5

)

6.9

(26.2

)

70.7

Net Premiums Earned

2,756.0

2,662.1

286.8

292.9

3,042.8

2,955.0

Net Losses Paid

1,223.2

1,089.9

62.5

85.7

1,285.7

1,175.6

Increase (Decrease) in Outstanding Losses

830.0

608.0

144.7

98.2

974.7

706.2

Net Losses Incurred

2,053.2

1,697.9

207.2

183.9

2,260.4

1,881.8

Expenses Incurred

754.9

789.9

80.6

98.2

835.5

888.1

Dividends Incurred

7.2

7.3

—

7.2

7.3

Statutory Underwriting Income (Loss)

(59.3

)

167.0

(1.0

)

10.8

(60.3

)

177.8

Increase in Deferred Acquisition Costs

1.3

15.6

GAAP Underwriting Income (Loss)

(59.0

)

193.4

Ratios After Dividends to Policyholders:

Loss

74.7

64.0

72.2

62.8

74.4

63.9

Expense

27.4

29.0

31.1

32.8

27.8

29.4

Combined

102.1

93.0

103.3

95.6

102.2

93.3

Premiums Written as a % of Total

91.4

90.1

8.6

9.9

100.0

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

2,859.3

2,725.9

208.3

299.8

3,067.6

3,025.7

Net Premiums Earned

2,858.0

2,662.1

235.8

292.9

3,093.8

2,955.0

Net Losses Incurred

1,661.4

1,526.3

127.0

159.4

1,788.4

1,685.7

Statutory Underwriting Income (Loss)

434.5

338.6

28.2

35.3

462.7

373.9

Combined Ratio

84.8

86.5

92.6

87.2

85.2

86.6

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

Page 14 of 16

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

Worldwide

United States

Foreign

Total

2005

2004

2005

2004

2005

2004

Net Premiums Written

2,517.2

2,550.0

499.4

475.7

3,016.6

3,025.7

Increase (Decrease) in Unearned Premiums

41.4

132.9

(67.6

)

(62.2

)

(26.2

)

70.7

Net Premiums Earned

2,475.8

2,417.1

567.0

537.9

3,042.8

2,955.0

Net Losses Paid

1,080.3

1,006.8

205.4

168.8

1,285.7

1,175.6

Increase (Decrease) in Outstanding Losses

830.4

552.2

144.3

154.0

974.7

706.2

Net Losses Incurred

1,910.7

1,559.0

349.7

322.8

2,260.4

1,881.8

Expenses Incurred

668.5

726.8

167.0

161.3

835.5

888.1

Dividends Incurred

7.2

7.3

—

7.2

7.3

Statutory Underwriting Income (Loss)

(110.6

)

124.0

50.3

53.8

(60.3

)

177.8

Increase in Deferred Acquisition Costs

1.3

15.6

GAAP Underwriting Income (Loss)

(59.0

)

193.4

Ratios After Dividends to Policyholders:

Loss

77.4

64.7

61.7

60.0

74.4

63.9

Expense

26.6

28.6

33.4

33.9

27.8

29.4

Combined

104.0

93.3

95.1

93.9

102.2

93.3

Premiums Written as a % of Total

83.4

84.3

16.6

15.7

100.0

RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written

2,568.2

2,550.0

499.4

475.7

3,067.6

3,025.7

Net Premiums Earned

2,526.8

2,417.1

567.0

537.9

3,093.8

2,955.0

Net Losses Incurred

1,462.1

1,362.9

326.3

322.8

1,788.4

1,685.7

Statutory Underwriting Income (Loss)

389.0

320.1

73.7

53.8

462.7

373.9

Combined Ratio

84.1

85.1

91.0

93.9

85.2

86.6

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

Page 15 of 16

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 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.

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, the after-tax appreciation or depreciation on the Corporation’s available-for-sale fixed maturities, which are carried at market value. The appreciation or depreciation on 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 Ratio or Combined Loss and Expense 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 16

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Table of Contents

Table of Contents

Table of Contents

Table of Contents