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) January 30, 2007

THE CHUBB CORPORATION

(Exact name of registrant as specified in its charter)

New Jersey	1-8661	13-2595722
(State or other jurisdiction of	(Commission	(IRS Employer
incorporation)	File Number)	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

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 January 30, 2007, The Chubb Corporation (Chubb) issued a press release announcing its results for the quarter and year ended December 31, 2006. On January 30, 2007, Chubb also posted on its web site at www.chubb.com the Supplementary Investor Information Report (SIIR) relating to its 2006 fourth quarter and year-end results. Copies of the press release and the SIIR, both of which are incorporated by reference into this Item 2.02 as if fully set forth herein, are furnished as Exhibits 99.1 and 99.2, respectively, to this Form 8-K. In its press release, in the SIIR and in the conference call to discuss its 2006 fourth quarter and year-end results, scheduled to be webcast at 5:00 P.M. on January 30, 2007, 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 prepared in accordance with accounting principles generally accepted in the United States.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

99.1	Press release dated January 30, 2007 (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: January 30, 2007	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 JANUARY 30, 2007

Exhibit No.	Description
99.1	Press release dated January 30, 2007 (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

News from The Chubb Corporation

The Chubb Corporation
15 Mountain View Road • P.O. Box 1615
Warren, New Jersey 07061-1615
Telephone: 908-903-2000

DO NOT RELEASE

Chubb Reports 4th Quarter Net Income per Share of $1.56;
Operating Income per Share Is up 25% to a Record $1.46;
Combined Ratio Is 83.1%

Net Income per Share for 2006 Is $5.98;
Operating Income per Share Is up 45% to a Record $5.60;
Combined Ratio Is 84.2%

     WARREN, New Jersey, January 30, 2007 — The Chubb Corporation [NYSE: CB] today reported that net income in the fourth quarter of 2006 was $654 million or $1.56 per share, compared to $615 million or $1.46 per share in the fourth quarter
of 2005.

     Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, increased to $614 million from $493 million in the fourth quarter of 2005. Operating income per share increased 25% to a record $1.46 from $1.17.

     Net written premiums for the fourth quarter declined 4% to $3.0 billion. Premiums for the insurance business were flat; they declined 2% in the U.S. and grew 6% outside the U.S. (1% in local currencies). Premiums for the reinsurance assumed business declined 67%, reflecting the impact of the Chubb Re-Harbor Point transaction completed in December 2005.

     The fourth quarter combined loss and expense ratio improved to 83.1% in 2006 from 89.3% in 2005. The impact of catastrophes in the fourth quarter of 2006 accounted for 0.9 percentage points of the combined ratio, compared to 4.0 points in the fourth quarter of 2005. Excluding the impact of catastrophes, the combined ratio improved 3.1 percentage points to 82.2% from 85.3%. The expense ratio for the fourth quarter was 29.9% in 2006 and 27.5% in 2005.

     Property and casualty investment income after taxes for the fourth quarter increased 10% to $304 million in 2006 from $276 million in 2005.

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     During the fourth quarter of 2006, Chubb repurchased 1.6 million shares of its common stock at a total cost of $82 million.

     “Our continuing focus on underwriting discipline enabled Chubb to achieve the best quarter in our history,” said John D. Finnegan, Chairman, President and Chief Executive Officer. “The fourth quarter capped an outstanding year, and thanks to significant contributions from all three business units throughout 2006, Chubb attained its fourth consecutive year of record income.”

Full Year Results

     For the year ended December 31, 2006, net income was $2.5 billion or $5.98 per share, compared to $1.8 billion or $4.47 per share for the year ended December 31, 2005. Operating income for 2006 totaled $2.4 billion, compared to $1.6 billion in 2005. Operating income per share increased 45% to a record $5.60 in 2006 from $3.87 in 2005.

     Net written premiums in 2006 declined 3% to $12.0 billion. Premiums for the insurance business grew 2%: 1% in the U.S. and 4% outside the U.S. (3% in local currencies). Premiums for the reinsurance assumed business declined 57%.

     The combined ratio in 2006 was 84.2%, compared to 92.3% in 2005. The impact of catastrophes accounted for 1.4 percentage points of the combined ratio in 2006 and 5.6 points in 2005. Excluding the impact of catastrophes, the combined ratio improved 3.9 percentage points to 82.8% from 86.7%. The expense ratio for the year was 29.0% in 2006 and 28.0% in 2005.

     Property and casualty investment income after taxes increased 10% to $1.2 billion in 2006 from $1.1 billion in 2005.

     During 2006, Chubb repurchased 25.4 million shares of its common stock at a total cost of $1.3 billion.

Fourth Quarter Operations Review

     Chubb Personal Insurance (CPI) net written premiums grew 7% in the fourth quarter to $879 million. CPI’s combined ratio for the quarter was 84.4%, compared to 86.8% in the fourth quarter of 2005. The impact of catastrophes accounted for 2.4 percentage points in 2006 and 7.5 points in 2005.

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     The Homeowners line grew 8%, and the combined ratio was 75.7%. The Personal Automobile line had flat net written premiums and a combined ratio of 92.6%. Other Personal lines grew 12% and had a combined ratio of 107.7%.

     Chubb Commercial Insurance (CCI) net written premiums declined 1% in the fourth quarter to $1.3 billion. The combined ratio for the quarter improved to 82.9% in 2006 from 87.4% in 2005. The impact of catastrophes accounted for 0.7 percentage points in 2006 and 3.6 points in 2005.

     Average fourth quarter renewal rates in the U.S. were down 1% 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 1 to 1.

     Chubb Specialty Insurance (CSI) net written premiums declined 7% in the fourth quarter to $774 million. The combined ratio was 84.1%, compared to 92.7% in the fourth quarter of 2005.

     Professional Liability (PL) net written premiums declined 8% due largely to reinsurance adjustments which increased net written premiums in the year-ago fourth quarter. In the fourth quarter of 2006, PL had a combined ratio of 88.5%. Average renewal rates in the U.S. for PL were down 3%, and renewal retention was 88%. The ratio of new to lost business in the U.S. was 1.4 to 1.

     Surety premiums were up 14%, and the combined ratio was 41.4%.

2006 Operations Review

     For the year ended December 31, 2006, Chubb Personal Insurance net written premiums grew 6% to $3.5 billion. CPI’s combined ratio improved to 81.7% in 2006 from 86.6% in 2005. The impact of catastrophes accounted for 3.7 percentage points of the combined ratio in 2006 and 6.5 points in 2005.

     The Homeowners line grew 8% and had a combined ratio of 74.6%. The Personal Automobile line grew 4% and had a combined ratio of 90.4%. Other personal lines grew 4% and had a combined ratio of 98.6%.

     Chubb Commercial Insurance net written premiums grew 2% in 2006 to $5.1 billion. The combined ratio was 83.1% in 2006 and 92.4% in 2005. The impact of catastrophes accounted for 0.6 percentage points of the combined ratio in 2006 and 8.3 points in 2005.

4

     Average 2006 renewal rates in the U.S. were down 1% 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 net written premiums declined 3% in 2006 to $2.9 billion. The combined ratio improved to 87.5% in 2006 from 97.3% in 2005.

     Professional Liability had a 6% decline in premium growth and a combined ratio of 91.8%. In the U.S., average 2006 renewal rates for PL were down 2%, renewal retention was 84% and the ratio of new to lost business was 1.1 to 1. Excluding the hospital medical malpractice and managed care errors & omissions businesses which CSI exited in July 2005, PL premiums declined 2%, and in the U.S. renewal retention was 88% and the ratio of new to lost business was 1.6 to 1.

     Surety had premium growth of 23% and a combined ratio of 44.2%.

2007 Operating Income Guidance

     “Based on our current outlook,” said Mr. Finnegan, “we believe we can achieve 2007 operating income per share in the range of $5.00 to $5.40.” This guidance assumes a 4 percentage point impact of catastrophe losses on the 2007 combined ratio. For comparison purposes, the impact of catastrophe losses on the 2006 combined ratio was 1.4 points. The impact of each percentage point of catastrophe losses on annual operating income per share is approximately $0.19.

     “The $0.40 reduction in operating income per share that is implied in the midpoint of our guidance for 2007 ($5.20 guidance midpoint for 2007 vs. $5.60 actual in 2006) is more than accounted for by our assumption of higher catastrophe losses in 2007,” said Mr. Finnegan. “Specifically, the $0.76 per share impact of our 4 point catastrophe assumption for 2007 is $0.52 more than the actual $0.24 per share impact of catastrophe losses in 2006.”

     Mr. Finnegan said the operating income guidance for 2007 also assumes:

• Flat net written premiums for the insurance business, based on a low-to-mid-single-digit increase for CPI, flat premiums for CCI and a modest decline for CSI.

• A combined ratio between 87% and 89% for the year, based on a combined ratio of 86% to 89% for CPI, 88% to 91% for CCI and 85% to 88% for CSI.

• Growth of property and casualty investment income after taxes of 7% to 9%.

5

     The guidance and related assumptions are subject to the risks outlined in the company’s forward-looking information safe-harbor statements (see below).

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

     Chubb’s senior management will discuss the company’s fourth quarter performance with investors and analysts today, January 30th, at 5 P.M. Eastern Standard Time. The conference call will be webcast live on the Internet at http://www.chubb.com and archived later in the day 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 http://www.chubb.com.

     All financial results in this release and attachments are unaudited.

For further information contact:	Investors:	Glenn A. Montgomery
		(908) 903-2365
	Media:	Mark E. Greenberg
		(908) 903-2682

6

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 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 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.

7

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 2007 operating income per share guidance and related assumptions. 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:

• 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;

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

– developments in judicial decisions or regulatory or legislative actions relating to coverage and liability, in particular, for asbestos, toxic waste and other mass tort claims;

– development of new theories of liability;

– our estimates relating to ultimate asbestos liabilities;

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

– 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;

• the availability and cost of reinsurance coverage;

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

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• 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:

– claims and litigation arising out of stock option “backdating,” “spring loading” and other option grant practices by public companies;

– 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 particular contingent commissions and loss mitigation and finite reinsurance arrangements, in the property and casualty insurance industry together with any legal or regulatory proceedings, related settlements and industry reform or other changes with respect to contingent commissions or otherwise arising therefrom;

• the impact of legislative and regulatory developments on our business, including those relating to terrorism and catastrophes;

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

• the ability of our subsidiaries to pay us dividends;

• general economic and market 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; 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.

9

THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA
(Unaudited)

	Periods Ended December 31
	Fourth Quarter						Twelve Months
	2006			2005			2006			2005
				(in millions)
PROPERTY AND CASUALTY INSURANCE
Underwriting
Net Premiums Written	$	2,974		$	3,097		$	11,974		$	12,283
Decrease (Increase) in Unearned Premiums		21			(18	)		(16	)		(107	)
Premiums Earned		2,995			3,079			11,958			12,176
Losses and Loss Expenses		1,590			1,899			6,574			7,813
Operating Costs and Expenses		887			852			3,467			3,436
Decrease (Increase) in Deferred Policy Acquisition Costs		21			(7	)		(19	)		(17	)
Dividends to Policyholders		8			4			31			23
Underwriting Income		489			331			1,905			921
Investments
Investment Income Before Expenses		385			349			1,485			1,342
Investment Expenses		7			6			31			27
Investment Income		378			343			1,454			1,315
Other Income (Charges)		4			2			10			(1	)
Property and Casualty Income		871			676			3,369			2,235
CORPORATE AND OTHER		(22	)		(16	)		(89	)		(172	)
CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX		849			660			3,280			2,063
Federal and Foreign Income Tax		235			167			913			485
CONSOLIDATED OPERATING INCOME		614			493			2,367			1,578
REALIZED INVESTMENT GAINS AFTER INCOME TAX		40			122			161			248
CONSOLIDATED NET INCOME	$	654		$	615		$	2,528		$	1,826
PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX	$	304		$	276		$	1,166		$	1,056

10

	Periods Ended December 31
	Fourth Quarter						Twelve Months
	2006			2005			2006			2005
OUTSTANDING SHARE DATA
(in millions)
Average Common and Potentially Dilutive Shares		419.8			421.3			422.4			408.4
Actual Common Shares at End of Period		411.3			418.1			411.3			418.1
DILUTED EARNINGS PER SHARE DATA
Operating Income	$	1.46		$	1.17		$	5.60		$	3.87
Realized Investment Gains		.10			.29			.38			.60
Net Income	$	1.56		$	1.46		$	5.98		$	4.47
Effect of Catastrophes (excluding investment in Allied World Assurance Company, Ltd.)
Hurricane Katrina	$	—		$	.01		$	.05		$	(.74	)
All Other		(.05	)		(.20	)		(.29	)		(.36	)
Total	$	(.05	)	$	(.19	)	$	(.24	)	$	(1.10	)

	Dec. 31		Dec. 31
	2006		2005
BOOK VALUE PER COMMON SHARE	$	33.71	$	29.68
BOOK VALUE PER COMMON SHARE,
with Available-for-Sale Fixed Maturities at Amortized Cost		33.38		29.13

Share and per share amounts have been retroactively adjusted to reflect the two-for-one stock split effective March 31, 2006.

Effective December 31, 2006, the Corporation adopted Statement of Financial Accounting Standards (SFAS) No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R). The adoption of SFAS No. 158 decreased accumulated other comprehensive income, a component of shareholders’ equity, by $281 million or $0.68 per common share. Restatement of prior periods is not permitted.

11

PROPERTY AND CASUALTY UNDERWRITING RATIOS
PERIODS ENDED DECEMBER 31

	Fourth Quarter						Twelve Months
	2006			2005			2006			2005
Losses and Loss Expenses to Premiums Earned		53.2	%		61.8	%		55.2	%		64.3	%
Underwriting Expenses to Premiums Written		29.9			27.5			29.0			28.0
Combined Loss and Expense Ratio		83.1	%		89.3	%		84.2	%		92.3	%
Effect of Catastrophes on Combined Loss and Expense Ratio
Hurricane Katrina		(.2	)%		(.2	)%		(.2	)%		3.7	%
All Other		1.1			4.2			1.6			1.9
Total		.9	%		4.0	%		1.4	%		5.6	%

PROPERTY AND CASUALTY LOSSES AND LOSS EXPENSES COMPONENTS
PERIODS ENDED DECEMBER 31

	Fourth Quarter					Twelve Months
	2006			2005		2006		2005
	(in millions)
Paid Losses and Loss Expenses	$	1,649		$	1,755	$	5,588	$	5,909
Increase (Decrease) in Unpaid Losses and Loss Expenses		(59	)		144		986		1,904
Total Losses and Loss Expenses	$	1,590		$	1,899	$	6,574	$	7,813

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PROPERTY AND CASUALTY PRODUCT MIX

	Net Premiums Written							Combined Loss and
					% Increase			Expense Ratios
	2006		2005		(Decrease)			2006			2005
	(in millions)
TWELVE MONTHS ENDED DECEMBER 31
Personal Insurance
Automobile	$	670	$	645		4	%		90.4	%		95.3	%
Homeowners		2,268		2,104		8			74.6			81.2
Other		580		558		4			98.6			96.2
Total Personal		3,518		3,307		6			81.7			86.6
Commercial Insurance
Multiple Peril		1,290		1,286		—			75.8			87.8
Casualty		1,731		1,755		(1	)		96.8			96.1
Workers’ Compensation		901		930		(3	)		80.4			84.8
Property and Marine		1,203		1,059		14			72.5			98.8
Total Commercial		5,125		5,030		2			83.1			92.4
Specialty Insurance
Professional Liability		2,641		2,798		(6	)		91.8			99.8
Surety		300		244		23			44.2			62.9
Total Specialty		2,941		3,042		(3	)		87.5			97.3
Total Insurance		11,584		11,379		2			83.9			92.0
Reinsurance Assumed		390		904		(57	)		95.2			96.1
Total	$	11,974	$	12,283		(3	)		84.2	%		92.3	%
QUARTERS ENDED DECEMBER 31
Personal Insurance
Automobile	$	159	$	159		—	%		92.6	%		88.3	%
Homeowners		562		520		8			75.7			80.5
Other		158		141		12			107.7			109.1
Total Personal		879		820		7			84.4			86.8
Commercial Insurance
Multiple Peril		322		351		(8	)		70.7			83.5
Casualty		428		434		(1	)		103.3			93.2
Workers’ Compensation		207		204		1			78.2			85.4
Property and Marine		305		281		9			69.3			84.3
Total Commercial		1,262		1,270		(1	)		82.9			87.4
Specialty Insurance
Professional Liability		699		763		(8	)		88.5			97.6
Surety		75		66		14			41.4			39.5
Total Specialty		774		829		(7	)		84.1			92.7
Total Insurance		2,915		2,919		—			83.5			88.5
Reinsurance Assumed		59		178		(67	)		91.5			101.8
Total	$	2,974	$	3,097		(4	)		83.1	%		89.3	%

EX-99.2

Exhibit 99.2

The	Supplementary	December 31, 2006
Chubb	Investor
Corporation	Information

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
December 31, 2006

Share and per share amounts have been retroactively adjusted to reflect the two-for-one stock split effective March 31, 2006.

THE CHUBB CORPORATION
SUPPLEMENTARY INVESTOR INFORMATION
TABLE OF CONTENTS
DECEMBER 31, 2006

	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

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

AS OF DECEMBER 31

	2006			2005
	(in millions)
Invested Assets (at carrying value)
Short Term Investments	$	2,254		$	1,899
Fixed Maturities
Tax Exempt		17,748			15,955
Taxable		14,218			14,568
Equity Securities		1,957			1,169
Other Invested Assets		1,516			1,043
Total Invested Assets	$	37,693		$	34,634
Unrealized Appreciation of Fixed Maturities Carried at Amortized Cost	$	7		$	11
Capitalization
Long Term Debt	$	2,466		$	2,467
Shareholders’ Equity		13,863	(a)		12,407
Total Capitalization	$	16,329		$	14,874
DEBT AS A PERCENTAGE OF TOTAL CAPITALIZATION		15.1	%		16.6	%
Actual Common Shares Outstanding		411.3			418.1
Book Value Per Common Share	$	33.71	(a)	$	29.68
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	33.38	(a)	$	29.13

(a) Effective December 31, 2006, the Corporation adopted Statement of Financial Accounting Standards (SFAS) No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R). The adoption of SFAS No. 158 decreased accumulated other comprehensive income, a component of shareholders’ equity, by $281 million or $0.68 per common share. Restatement of prior periods is not permitted.

Page 1 of 16

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

	Periods Ended December 31
	Fourth		Twelve		From
	Quarter		Months		December 2005
	2006		2006		to December 31, 2006
	(dollars in millions, except per share amounts)
Cost of Shares Repurchased		$82		$1,257		$1,392
Average Cost Per Share		$53.15		$49.55		$49.44
Shares Repurchased		1,545,530		25,366,262		28,154,062

In December 2005, the Board of Directors authorized the repurchase of up to 28,000,000 shares of the Corporation’s common stock. As of December 31, 2006, no shares remained under the 2005 share repurchase authorization.

In December 2006, the Board of Directors authorized the repurchase of up to 20,000,000 additional shares of the Corporation’s common stock. The authorization has no expiration date. As of December 31, 2006, 19,845,938 shares remained under the 2006 share repurchase authorization.

Page 2 of 16

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

AS OF DECEMBER 31

CORPORATE

	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	2006		2005		2006		2005		2006		2005
					(in millions)
Short Term Investments	$	793	$	929	$	793	$	929	$	793	$	929
Taxable Fixed Maturities		1,160		1,355		1,138		1,338		1,138		1,338
Equity Securities		289		5		416		8		416		8
TOTAL	$	2,242	$	2,289	$	2,347	$	2,275	$	2,347	$	2,275

PROPERTY AND CASUALTY

	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	2006		2005		2006		2005		2006		2005
					(in millions)
Short Term Investments	$	1,461	$	970	$	1,461	$	970	$	1,461	$	970
Fixed Maturities
Tax Exempt		17,449		15,654		17,755		15,966		17,748		15,955
Taxable		13,150		13,160		13,080		13,230		13,080		13,230
Common Stocks		1,235		988		1,502		1,106		1,502		1,106
Preferred Stocks		37		52		39		55		39		55
Other Invested Assets		1,516		1,043		1,516		1,043		1,516		1,043
TOTAL	$	34,848	$	31,867	$	35,353	$	32,370	$	35,346	$	32,359

Page 3 of 16

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES

	PERIODS ENDED DECEMBER 31
	FOURTH QUARTER						TWELVE MONTHS
	2006			2005			2006			2005
	(in millions)
CORPORATE INVESTMENT INCOME	$	14		$	12		$	60		$	41
PROPERTY AND CASUALTY INVESTMENT INCOME
Dividends	$	18		$	10		$	52		$	40
Taxable Interest		114			109			454			415
Tax Exempt Interest		176			161			680			618
Investment Expenses		(4	)		(4	)		(20	)		(17	)
TOTAL	$	304		$	276		$	1,166		$	1,056
Effective Tax Rate		19.6	%		19.8	%		19.8	%		19.7	%
After Tax Annualized Yield		3.50	%		3.47	%		3.48	%		3.45	%

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.

STATUTORY POLICYHOLDERS’ SURPLUS
AS OF DECEMBER 31

	2006		2005		2004
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	11,250	$	8,910	$	7,848
Rolling Year Statutory Net Premiums Written		11,967		12,244		12,005
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		1.06:1		1.37:1		1.53:1

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

Page 4 of 16

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES
TWELVE MONTHS ENDED DECEMBER 31, 2006

											All Other
	Net Unpaid Losses							IBNR			Unpaid Losses
					Increase			Increase			Increase
	12/31/06		12/31/05		(Decrease)			(Decrease)			(Decrease)
	(in millions)
Personal Insurance
Automobile	$	425	$	418	$	7		$	11		$	(4	)
Homeowners		665		697		(32	)		(18	)		(14	)
Other		657		580		77			62			15
Total Personal		1,747		1,695		52			55			(3	)
Commercial Insurance
Multiple Peril		1,593		1,596		(3	)		29			(32	)
Casualty		5,213		4,837		376			373			3
Workers’ Compensation		1,740		1,551		189			147			42
Property and Marine		678		755		(77	)		(27	)		(50	)
Total Commercial		9,224		8,739		485			522			(37	)
Specialty Insurance
Professional Liability		7,288		6,777		511			548			(37	)
Surety		59		46		13			3			10
Total Specialty		7,347		6,823		524			551			(27	)
Total Insurance		18,318		17,257		1,061			1,128			(67	)
Reinsurance Assumed		1,381		1,456		(75	)		(123	)		48
Total	$	19,699	$	18,713	$	986		$	1,005		$	(19	)

Page 5 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2006			2005			2006			2005			2006			2005			2006			2005
Net Premiums Written	$	670		$	645		$	2,268		$	2,104		$	580		$	558		$	3,518		$	3,307
Increase (Decrease) in Unearned Premiums		4			10			92			74			13			6			109			90
Net Premiums Earned		666			635			2,176			2,030			567			552			3,409			3,217
Net Losses Paid		407			398			969			1,002			307			307			1,683			1,707
Increase (Decrease) in Outstanding Losses		7			39			(32	)		17			77			59			52			115
Net Losses Incurred		414			437			937			1,019			384			366			1,735			1,822
Expenses Incurred		189			170			716			653			179			167			1,084			990
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	63		$	28		$	523		$	358		$	4		$	19		$	590		$	405
Ratios After Dividends to Policyholders:
Loss		62.2	%		68.8	%		43.0	%		50.2	%		67.7	%		66.3	%		50.9	%		56.6	%
Expense		28.2			26.5			31.6			31.0			30.9			29.9			30.8			30.0
Combined		90.4	%		95.3	%		74.6	%		81.2	%		98.6	%		96.2	%		81.7	%		86.6	%
Premiums Written as a % of Total		5.6	%		5.2	%		18.9	%		17.1	%		4.8	%		4.5	%		29.3	%		26.8	%

Page 6 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2006			2005			2006			2005			2006			2005			2006			2005			2006			2005
Net Premiums Written	$	1,290		$	1,286		$	1,731		$	1,755		$	901		$	930		$	1,203		$	1,059		$	5,125		$	5,030
Increase (Decrease) in Unearned Premiums		(2	)		(23	)		—			20			(7	)		6			55			7			46			10
Net Premiums Earned		1,292			1,309			1,731			1,735			908			924			1,148			1,052			5,079			5,020
Net Losses Paid		556			595			820			789			321			328			544			540			2,241			2,252
Increase (Decrease) in Outstanding Losses		(3	)		126			376			431			189			240			(77	)		138			485			935
Net Losses Incurred		553			721			1,196			1,220			510			568			467			678			2,726			3,187
Expenses Incurred		426			421			480			453			197			199			383			364			1,486			1,437
Dividends Incurred		—			—			—			—			27			20			—			—			27			20
Statutory Underwriting Income (Loss)	$	313		$	167		$	55		$	62		$	174		$	137		$	298		$	10		$	840		$	376
Ratios After Dividends to Policyholders:
Loss		42.8	%		55.1	%		69.1	%		70.3	%		57.9	%		62.9	%		40.7	%		64.5	%		53.9	%		63.8	%
Expense		33.0			32.7			27.7			25.8			22.5			21.9			31.8			34.3			29.2			28.6
Combined		75.8	%		87.8	%		96.8	%		96.1	%		80.4	%		84.8	%		72.5	%		98.8	%		83.1	%		92.4	%
Premiums Written as a % of Total		10.8	%		10.5	%		14.5	%		14.3	%		7.5	%		7.6	%		10.0	%		8.6	%		42.8	%		41.0	%

Page 7 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

	Professional												Total
	Liability						Surety						Specialty
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	2,641		$	2,798		$	300		$	244		$	2,941		$	3,042
Increase (Decrease) in Unearned Premiums		(41	)		34			29			27			(12	)		61
Net Premiums Earned		2,682			2,764			271			217			2,953			2,981
Net Losses Paid		1,320			1,566			21			104			1,341			1,670
Increase (Decrease) in Outstanding Losses		511			589			13			(42	)		524			547
Net Losses Incurred		1,831			2,155			34			62			1,865			2,217
Expenses Incurred		620			612			93			82			713			694
Dividends Incurred		—			—			4			3			4			3
Statutory Underwriting Income (Loss)	$	231		$	(3	)	$	140		$	70		$	371		$	67
Ratios After Dividends to Policyholders:
Loss		68.3	%		78.0	%		12.8	%		28.7	%		63.2	%		74.4	%
Expense		23.5			21.8			31.4			34.2			24.3			22.9
Combined		91.8	%		99.8	%		44.2	%		62.9	%		87.5	%		97.3	%
Premiums Written as a % of Total		22.1	%		22.8	%		2.5	%		2.0	%		24.6	%		24.8	%

Page 8 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	11,584		$	11,379		$	390		$	904		$	11,974		$	12,283
Increase (Decrease) in Unearned Premiums		143			161			(127	)		(54	)		16			107
Net Premiums Earned		11,441			11,218			517			958			11,958			12,176
Net Losses Paid		5,265			5,629			323			280			5,588			5,909
Increase (Decrease) in Outstanding Losses		1,061			1,597			(75	)		307			986			1,904
Net Losses Incurred		6,326			7,226			248			587			6,574			7,813
Expenses Incurred		3,283			3,121			184			315			3,467			3,436
Dividends Incurred		31			23			—			—			31			23
Statutory Underwriting Income (Loss)	$	1,801		$	848		$	85		$	56		$	1,886		$	904
Increase in Deferred Acquisition Costs														19			17
GAAP Underwriting Income													$	1,905		$	921
Ratios After Dividends to Policyholders:
Loss		55.5	%		64.6	%		48.0	%		61.3	%		55.2	%		64.3	%
Expense		28.4			27.4			47.2			34.8			29.0			28.0
Combined		83.9	%		92.0	%		95.2	%		96.1	%		84.2	%		92.3	%
Premiums Written as a % of Total		96.7	%		92.6	%		3.3	%		7.4	%		100.0	%		100.0	%

Page 9 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

													Worldwide
	United States						Foreign						Total
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	9,520		$	9,932		$	2,454		$	2,351		$	11,974		$	12,283
Increase (Decrease) in Unearned Premiums		(44	)		44			60			63			16			107
Net Premiums Earned		9,564			9,888			2,394			2,288			11,958			12,176
Net Losses Paid		4,828			4,885			760			1,024			5,588			5,909
Increase (Decrease) in Outstanding Losses		494			1,613			492			291			986			1,904
Net Losses Incurred		5,322			6,498			1,252			1,315			6,574			7,813
Expenses Incurred		2,652			2,676			815			760			3,467			3,436
Dividends Incurred		31			23			—			—			31			23
Statutory Underwriting Income (Loss)	$	1,559		$	691		$	327		$	213			1,886			904
Increase in Deferred Acquisition Costs														19			17
GAAP Underwriting Income													$	1,905		$	921
Ratios After Dividends to Policyholders:
Loss		55.8	%		65.9	%		52.3	%		57.5	%		55.2	%		64.3	%
Expense		27.9			27.0			33.2			32.3			29.0			28.0
Combined		83.7	%		92.9	%		85.5	%		89.8	%		84.2	%		92.3	%
Premiums Written as a % of Total		79.5	%		80.9	%		20.5	%		19.1	%		100.0	%		100.0	%

Page 10 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2006			2005			2006			2005			2006			2005			2006			2005
Net Premiums Written	$	159		$	159		$	562		$	520		$	158		$	141		$	879		$	820
Increase (Decrease) in Unearned Premiums		(9	)		(3	)		3			(6	)		8			3			2			(6	)
Net Premiums Earned		168			162			559			526			150			138			877			826
Net Losses Paid		113			108			224			309			80			96			417			513
Increase (Decrease) in Outstanding Losses		(6	)		(9	)		17			(50	)		35			13			46			(46	)
Net Losses Incurred		107			99			241			259			115			109			463			467
Expenses Incurred		46			43			183			163			49			42			278			248
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	15		$	20		$	135		$	104		$	(14	)	$	(13	)	$	136		$	111
Ratios After Dividends to Policyholders:
Loss		63.7	%		61.1	%		43.1	%		49.3	%		76.7	%		79.2	%		52.8	%		56.6	%
Expense		28.9			27.2			32.6			31.2			31.0			29.9			31.6			30.2
Combined		92.6	%		88.3	%		75.7	%		80.5	%		107.7	%		109.1	%		84.4	%		86.8	%
Premiums Written as a % of Total		5.3	%		5.1	%		18.9	%		16.8	%		5.3	%		4.5	%		29.5	%		26.4	%

Page 11 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2006			2005			2006			2005			2006			2005			2006			2005			2006			2005
Net Premiums Written	$	322		$	351		$	428		$	434		$	207		$	204		$	305		$	281		$	1,262		$	1,270
Increase (Decrease) in Unearned Premiums		(1	)		16			(1	)		(4	)		(22	)		(29	)		12			(6	)		(12	)		(23	)
Net Premiums Earned		323			335			429			438			229			233			293			287			1,274			1,293
Net Losses Paid		180			180			270			238			74			80			124			184			648			682
Increase (Decrease) in Outstanding Losses		(56	)		(4	)		40			57			44			62			(14	)		(33	)		14			82
Net Losses Incurred		124			176			310			295			118			142			110			151			662			764
Expenses Incurred		104			108			133			113			50			47			97			89			384			357
Dividends Incurred		—			—			—			—			7			3			—			—			7			3
Statutory Underwriting Income (Loss)	$	95		$	51		$	(14	)	$	30		$	54		$	41		$	86		$	47		$	221		$	169
Ratios After Dividends to Policyholders:
Loss		38.4	%		52.6	%		72.2	%		67.2	%		53.2	%		62.1	%		37.5	%		52.9	%		52.3	%		59.3	%
Expense		32.3			30.9			31.1			26.0			25.0			23.3			31.8			31.4			30.6			28.1
Combined		70.7	%		83.5	%		103.3	%		93.2	%		78.2	%		85.4	%		69.3	%		84.3	%		82.9	%		87.4	%
Premiums Written as a % of Total		10.8	%		11.3	%		14.4	%		14.0	%		7.0	%		6.6	%		10.3	%		9.1	%		42.5	%		41.0	%

Page 12 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

	Professional												Total
	Liability						Surety						Specialty
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	699		$	763		$	75		$	66		$	774		$	829
Increase (Decrease) in Unearned Premiums		42			53			6			1			48			54
Net Premiums Earned		657			710			69			65			726			775
Net Losses Paid		483			463			14			42			497			505
Increase (Decrease) in Outstanding Losses		(55	)		88			(7	)		(38	)		(62	)		50
Net Losses Incurred		428			551			7			4			435			555
Expenses Incurred		163			152			23			22			186			174
Dividends Incurred		—			—			1			1			1			1
Statutory Underwriting Income (Loss)	$	66		$	7		$	38		$	38		$	104		$	45
Ratios After Dividends to Policyholders:
Loss		65.2	%		77.6	%		10.3	%		5.3	%		60.0	%		71.6	%
Expense		23.3			20.0			31.1			34.2			24.1			21.1
Combined		88.5	%		97.6	%		41.4	%		39.5	%		84.1	%		92.7	%
Premiums Written as a % of Total		23.5	%		24.7	%		2.5	%		2.1	%		26.0	%		26.8	%

Page 13 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	2,915		$	2,919		$	59		$	178		$	2,974		$	3,097
Increase (Decrease) in Unearned Premiums		38			25			(59	)		(7	)		(21	)		18
Net Premiums Earned		2,877			2,894			118			185			2,995			3,079
Net Losses Paid		1,562			1,700			87			55			1,649			1,755
Increase (Decrease) in Outstanding Losses		(2	)		86			(57	)		58			(59	)		144
Net Losses Incurred		1,560			1,786			30			113			1,590			1,899
Expenses Incurred		848			779			39			73			887			852
Dividends Incurred		8			4			—			—			8			4
Statutory Underwriting Income (Loss)	$	461		$	325		$	49		$	(1	)	$	510		$	324
Increase (Decrease) in Deferred Acquisition Costs														(21	)		7
GAAP Underwriting Income													$	489		$	331
Ratios After Dividends to Policyholders:
Loss		54.4	%		61.8	%		25.4	%		60.9	%		53.2	%		61.8	%
Expense		29.1			26.7			66.1			40.9			29.9			27.5
Combined		83.5	%		88.5	%		91.5	%		101.8	%		83.1	%		89.3	%
Premiums Written as a % of Total		98.0	%		94.2	%		2.0	%		5.8	%		100.0	%		100.0	%

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THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2006 AND 2005
(MILLIONS OF DOLLARS)

													Worldwide
	United States						Foreign						Total
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	2,317		$	2,475		$	657		$	622		$	2,974		$	3,097
Increase (Decrease) in Unearned Premiums		(60	)		(23	)		39			41			(21	)		18
Net Premiums Earned		2,377			2,498			618			581			2,995			3,079
Net Losses Paid		1,431			1,436			218			319			1,649			1,755
Increase (Decrease) in Outstanding Losses		(157	)		126			98			18			(59	)		144
Net Losses Incurred		1,274			1,562			316			337			1,590			1,899
Expenses Incurred		669			660			218			192			887			852
Dividends Incurred		8			4			—			—			8			4
Statutory Underwriting Income (Loss)	$	426		$	272		$	84		$	52			510			324
Increase (Decrease) in Deferred Acquisition Costs														(21	)		7
GAAP Underwriting Income													$	489		$	331
Ratios After Dividends to Policyholders:
Loss		53.8	%		62.7	%		51.1	%		57.8	%		53.2	%		61.8	%
Expense		29.0			26.7			33.2			31.0			29.9			27.5
Combined		82.8	%		89.4	%		84.3	%		88.8	%		83.1	%		89.3	%
Premiums Written as a % of Total		77.9	%		79.9	%		22.1	%		20.1	%		100.0	%		100.0	%

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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, 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.

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