8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported) April 23, 2009

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, Warren, New Jersey	07059
(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

Press release dated April 23, 2009 (furnished pursuant to Item 2.02 of Form 8-K)
Supplementary Investor Information Report (furnished pursuant to Item 2.02 of Form 8-K)

Item 2.02 Results of Operations and Financial Condition.

The following information, including the text of the exhibits attached hereto, is furnished pursuant to Item 2.02 of Form 8-K. On April 23, 2009, The Chubb Corporation (Chubb) issued a press release announcing its financial results for the quarter ended March 31, 2009. On April 23, 2009, Chubb also posted on its web site at www.chubb.com the Supplementary Investor Information Report (SIIR) relating to its 2009 first quarter 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 attached to this Form 8-K as Exhibits 99.1 and 99.2, respectively. In its press release, the SIIR and the conference call to discuss its 2009 first quarter results, scheduled to be webcast at 5:00 P.M. on April 23, 2009, 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.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press release dated April 23, 2009 (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: April 23, 2009	By:	/s/ John J. Kennedy
		Name:	John J. Kennedy
		Title:	Senior Vice President and Chief Accounting Officer

EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K
DATED APRIL 23, 2009

Exhibit No.	Description
99.1	Press release dated April 23, 2009 (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

Exhibit 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

FOR IMMEDIATE RELEASE

Chubb Reports First Quarter Net Income per Share of $0.95 and
Operating Income per Share of $1.43;
Combined Ratio Is 88.1%

     WARREN, New Jersey, April 23, 2009 — The Chubb Corporation [NYSE: CB] today reported that net income in the first quarter of 2009 was $341 million or $0.95 per share, compared to $664 million or $1.77 per share in the first quarter of 2008.

     Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, declined to $514 million from $620 million in the first quarter of 2008. Operating income per share decreased 13% to $1.43 in the first quarter of 2009 from $1.65 in the first quarter of 2008.

     Net written premiums for the first quarter decreased 7% to $2.7 billion. Excluding the effect of currency fluctuation, premiums were down 2%. Premiums declined 5% in the U.S. and 12% outside the U.S. (increased 5% in local currencies).

     The first quarter combined loss and expense ratio was 88.1% in 2009, compared to 83.9% in 2008. The impact of catastrophes accounted for 0.9 percentage points of the combined ratio in the first quarter of 2009, compared to 1.8 percentage points in the first quarter of 2008. Excluding the impact of catastrophes, the first quarter combined ratio was 87.2% in 2009 and 82.1% in 2008. The expense ratio for the first quarter was 30.8% in 2009 and 30.5% in 2008.

     Property and casualty investment income after taxes for the first quarter declined 6% to $306 million in 2009 from $327 million in 2008, largely due to currency fluctuation.

     Net income for the first quarter of 2009 reflects net realized investment losses, including impairments, of $266 million before tax ($0.48 per share after-tax), stemming primarily from the company’s alternative investments. Realized gains and losses for alternative investments are generally reported on a one-quarter lag; the losses in the first quarter of 2009 reflect the significant global decline in asset values in the fourth quarter of 2008. Net income for the first quarter of 2008 included net realized investment gains of $68 million before tax ($0.12 per share after-tax).

2 

     “In the first quarter, Chubb continued to perform well in a difficult economic and investment environment,” said John D. Finnegan, Chairman, President and Chief Executive Officer. “We generated substantial underwriting profits, reflecting contributions from all of our business units, and our investment portfolio performed extremely well in what continued to be very volatile global capital markets.

     “In looking at developments in the quarter,” said Mr. Finnegan, “we were especially pleased by the continued improvement in premium rates, as evidenced by the fact that our Commercial and Professional Liability U.S. renewal rate changes were both positive for the first time in five years.”

     During the first quarter of 2009, Chubb repurchased 1,804,500 shares of its common stock at a total cost of $74 million (an average of $40.87 per share). As of March 31, 2009, there were 17,979,400 shares of common stock remaining for repurchase under the current authorization.

First Quarter Operations Review

     Chubb Personal Insurance (CPI) net written premiums declined 4% in the first quarter to $843 million. CPI’s combined ratio for the quarter was 90.0%, compared to 84.8% in the first quarter of 2008. The impact of catastrophes accounted for 1.5 percentage points in the first quarter of 2009 and 1.7 points in 2008. Excluding the impact of catastrophes, CPI’s first quarter combined ratio was 88.5% in 2009 and 83.1% in 2008.

     Net written premiums for Homeowners declined 5%, and the combined ratio was 88.2%. Personal Automobile net written premiums declined 8%, and the combined ratio was 89.8%. Other Personal lines grew 1% and had a combined ratio of 97.4%.

     Chubb Commercial Insurance (CCI) net written premiums declined 6% in the first quarter to $1.3 billion. The combined ratio for the quarter was 90.2% in 2009 and 87.2% in 2008. The impact of catastrophes accounted for 1.0 percentage point in the first quarter of 2009 compared to 3.0 points in the first quarter of 2008. Excluding the impact of catastrophes, CCI’s first quarter combined ratio was 89.2% in 2009 and 84.2% in 2008.

     Average first quarter renewal rates in the U.S. were up 1% for CCI, which retained 85% of the U.S. premiums that came up for renewal. In the U.S., the ratio of new to lost business was 1.0 to 1.

     Chubb Specialty Insurance (CSI) net written premiums were down 10% in the first quarter to $630 million. The combined ratio was 85.1%, compared to 78.1% in the first quarter of 2008.

3 

     Professional Liability (PL) net written premiums declined 8%, and the business had a combined ratio of 91.3%. Average first quarter renewal rates in the U.S. were up 1% for PL, which retained 85% of the U.S. premiums that came up for renewal. In the U.S., the ratio of new to lost business was 1.2 to 1.

     Surety net written premiums were down 22%, and the combined ratio was 38.3%.

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

     Chubb’s senior management will discuss the company’s first quarter performance with investors and analysts today, April 23rd, at 5 P.M. Eastern Daylight 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 8,500 independent agents and brokers. Chubb’s global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.

     Chubb’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

4 

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 (loss), the after-tax appreciation or depreciation of the Corporation’s available-for-sale fixed maturities, which are carried at fair value. The appreciation or depreciation of available-for-sale fixed maturities is subject to fluctuation due to changes in interest rates and therefore could distort the analysis of trends. Management believes that book value per common share with available-for-sale fixed maturities at amortized cost, a non-GAAP financial measure, is an important measure of the underlying equity attributable to one share of common stock.

Combined Loss and Expense Ratio or Combined Ratio:

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

Net Written Premiums Growth (Decrease) Excluding the Impact of Currency Fluctuation:

Management uses net written premiums growth (decrease) excluding the impact of currency fluctuation, a non-GAAP financial measure, to evaluate the trends in net written premiums, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted.

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FORWARD-LOOKING INFORMATION

     In the conference call identified above and otherwise, we may make statements regarding our results of operations, financial condition and other matters that 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. Forward-looking statements are made based upon management’s current expectations and beliefs concerning trends and future developments and their potential effects on Chubb. 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 Chubb’s 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;

• our ability to retain existing business and attract new business;

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

• the adequacy of our 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; and

– 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;

6 

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

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

– claims and litigation arising out of stock option “backdating,” “spring loading” and other equity 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;

– claims and litigation relating to uncertainty in the credit and broader financial markets; and

– legislative or regulatory proposals or changes;

• the effects of changes in market practices in the U.S. property and casualty insurance industry, in particular contingent commissions and loss mitigation and finite reinsurance arrangements, arising from any legal or regulatory proceedings, related settlements and industry reform, including changes that have been announced and changes that may occur in the future;

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

• 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;

– currency fluctuations;

– 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; and

– changes in the litigation environment; and

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

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

7

THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA
(Unaudited)

	Three Months Ended
	March 31
	2009			2008
	(in millions)
PROPERTY AND CASUALTY INSURANCE
Underwriting
Net Premiums Written	$	2,743		$	2,936
Decrease in Unearned Premiums		83			40
Premiums Earned		2,826			2,976
Losses and Loss Expenses		1,615			1,584
Operating Costs and Expenses		843			894
Increase in Deferred Policy Acquisition Costs		(16	)		(13	)
Dividends to Policyholders		8			9
Underwriting Income		376			502
Investments
Investment Income Before Expenses		386			418
Investment Expenses		7			8
Investment Income		379			410
Other Income		4			3
Property and Casualty Income		759			915
CORPORATE AND OTHER		(63	)		(54	)
CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX		696			861
Federal and Foreign Income Tax		182			241
CONSOLIDATED OPERATING INCOME		514			620
REALIZED INVESTMENT GAINS (LOSSES) AFTER INCOME TAX		(173	)		44
CONSOLIDATED NET INCOME	$	341		$	664
PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX	$	306		$	327

8

	Three Months Ended
OUTSTANDING SHARE DATA	March 31
(in millions)	2009			2008
Average Common and Potentially Dilutive Shares		358.3			375.8
Actual Common Shares at End of Period		352.1			365.5
DILUTED EARNINGS PER SHARE DATA
Operating Income	$	1.43		$	1.65
Realized Investment Gains (Losses)		(.48	)		.12
Net Income	$	.95		$	1.77
Effect of Catastrophes	$	(.05	)	$	(.09	)

	Mar. 31		Dec. 31		Mar. 31
	2009		2008		2008
BOOK VALUE PER COMMON SHARE	$	39.20	$	38.13	$	39.25
BOOK VALUE PER COMMON SHARE, with Available-for-Sale Fixed Maturities at Amortized Cost		38.43		38.38		38.47

PROPERTY AND CASUALTY UNDERWRITING RATIOS
THREE MONTHS ENDED MARCH 31

	2009			2008
Losses and Loss Expenses to Premiums Earned		57.3	%		53.4	%
Underwriting Expenses to Premiums Written		30.8			30.5
Combined Loss and Expense Ratio		88.1	%		83.9	%
Effect of Catastrophes on Combined Loss and Expense Ratio		.9	%		1.8	%

PROPERTY AND CASUALTY LOSSES AND LOSS EXPENSES COMPONENTS
THREE MONTHS ENDED MARCH 31

	2009		2008
	(in millions)
Paid Losses and Loss Expenses	$	1,509	$	1,416
Increase in Unpaid Losses and Loss Expenses		106		168
Total Losses and Loss Expenses	$	1,615	$	1,584

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PROPERTY AND CASUALTY PRODUCT MIX
THREE MONTHS ENDED MARCH 31

	Net Premiums Written							Combined Loss and
					% Increase			Expense Ratios
	2009		2008		(Decrease)			2009			2008
	(in millions)
Personal Insurance
Automobile	$	131	$	142		(8	)%		89.8	%		93.1	%
Homeowners		514		539		(5	)		88.2			80.1
Other		198		196		1			97.4			93.9
Total Personal		843		877		(4	)		90.0			84.8
Commercial Insurance
Multiple Peril		269		295		(9	)		85.7			78.4
Casualty		409		460		(11	)		102.7			92.4
Workers’ Compensation		236		248		(5	)		87.7			82.9
Property and Marine		346		337		3			80.9			93.1
Total Commercial		1,260		1,340		(6	)		90.2			87.2
Specialty Insurance
Professional Liability		553		604		(8	)		91.3			83.7
Surety		77		99		(22	)		38.3			30.8
Total Specialty		630		703		(10	)		85.1			78.1
Total Insurance		2,733		2,920		(6	)		88.8			84.1
Reinsurance Assumed		10		16		(38	)		*			*
Total	$	2,743	$	2,936		(7	)		88.1			83.9

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

EX-99.2

Exhibit 99.2

The	Supplementary	March 31, 2009
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

Beginning in the third quarter of 2008, the “net losses paid” and “increase (decrease) in outstanding losses” amounts in the property and casualty underwriting results reflect the impact of foreign currency fluctuations differently than in the past.

The property and casualty underwriting results for 2008 that follow this page reflect modification to previously reported net losses paid and increase (decrease) in outstanding losses. Since net losses paid and increase (decrease) in outstanding losses for each line of business and in total have been modified by offsetting amounts, incurred losses for each line of business and in total are unchanged.

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

	Page
The Chubb Corporation:
Consolidated Balance Sheet Highlights	1
Share Repurchase Activity	2
Summary of Invested Assets:
Corporate	3
Property and Casualty	3
Investment Income After Taxes:
Corporate	4
Property and Casualty	4
Property and Casualty Insurance Group:
Statutory Policyholders’ Surplus	4
Change in Net Unpaid Losses	5
Underwriting Results	6-10
Definitions of Key Terms	11-12

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(dollars in millions, except per share amounts)

	Mar. 31						Dec. 31
	2009						2008
				% of Total						% of Total
Invested Assets (at carrying value)
Short Term Investments	$	2,558			7	%	$	2,478			7	%
Fixed Maturities
Tax Exempt		18,804			48			18,345			47
Taxable		14,634			37			14,410			37
Equity Securities		1,340			3			1,479			4
Other Invested Assets		1,795			5			2,026			5
Total Invested Assets	$	39,131			100	%	$	38,738			100	%
Unrealized Appreciation (Depreciation) of Investments
Fixed Maturities	$	420					$	(136	)
Equity Securities		(137	)					(84	)
		283						(220	)
Deferred Income Tax Liability (Asset)		99						(77	)
	$	184					$	(143	)
Capitalization
Long Term Debt	$	3,975					$	3,975
Shareholders’ Equity		13,804						13,432
Total Capitalization	$	17,779					$	17,407
Debt as a Percentage of Total Capitalization		22.4	%					22.8	%
Actual Common Shares Outstanding		352.1						352.3
Book Value Per Common Share	$	39.20					$	38.13
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	38.43					$	38.38

Page 1 of 12

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY
(dollars in millions, except per share amounts)

	Three Months		From
	Ended		December 2005
	March 31, 2009		to March 31, 2009
Cost of Shares Repurchased		$74		$4,961
Average Cost Per Share		$40.87		$50.61
Shares Repurchased		1,804,500		98,020,600

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

In December 2008, the Board of Directors authorized the repurchase of up to 20,000,000 shares of the Corporation’s common stock. The authorization has no expiration date. As of March 31, 2009, 17,979,400 shares remained under the share repurchase authorization.

Page 2 of 12

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

CORPORATE

	Cost or				Carrying
	Amortized Cost				Value (a)
	Mar. 31		Dec. 31		Mar. 31		Dec. 31
	2009		2008		2009		2008
	(in millions)
Short Term Investments	$	1,299	$	1,602	$	1,299	$	1,602
Taxable Fixed Maturities		1,038		774		1,056		780
Equity Securities		436		451		478		504
TOTAL	$	2,773	$	2,827	$	2,833	$	2,886

PROPERTY AND CASUALTY

	Cost or				Carrying
	Amortized Cost				Value (a)
	Mar. 31		Dec. 31		Mar. 31		Dec. 31
	2009		2008		2009		2008
	(in millions)
Short Term Investments	$	1,259	$	876	$	1,259	$	876
Fixed Maturities
Tax Exempt		18,378		18,299		18,804		18,345
Taxable		13,602		13,818		13,578		13,630
Equity Securities		1,041		1,112		862		975
Other Invested Assets		1,795		2,026		1,795		2,026
TOTAL	$	36,075	$	36,131	$	36,298	$	35,852

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

Page 3 of 12

THE CHUBB CORPORATION
INVESTMENT INCOME AFTER TAXES

	Three Months Ended
	March 31
	2009			2008
	(in millions)
CORPORATE INVESTMENT INCOME	$	9		$	13
PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	186		$	185
Taxable Interest		114			127
Other		11			20
Investment Expenses		(5	)		(5	)
TOTAL	$	306		$	327
Effective Tax Rate		19.3	%		20.2	%
After-Tax Annualized Yield		3.41	%		3.50	%

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

STATUTORY POLICYHOLDERS’ SURPLUS

	Mar. 31			Dec. 31		Mar. 31
	2009			2008		2008
	(in millions)
Estimated Statutory Policyholders’ Surplus		$	12,500	$	12,311	$	13,330
Rolling Year Statutory Net Premiums Written		$	11,565	$	11,759	$	11,910
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus			0.93:1		0.96:1		0.89:1

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

Page 4 of 12

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES
THREE MONTHS ENDED MARCH 31, 2009

												All Other
		Net Unpaid Losses							IBNR			Unpaid Losses
						Increase			Increase			Increase
		3/31/09		12/31/08		(Decrease)			(Decrease)			(Decrease)
	(in millions)
Personal Insurance
Automobile		$	383	$	391	$	(8	)	$	(8	)	$	—
Homeowners			677		715		(38	)		(9	)		(29	)
Other			821		815		6			21			(15	)
Total Personal			1,881		1,921		(40	)		4			(44	)
Commercial Insurance
Multiple Peril			1,569		1,586		(17	)		9			(26	)
Casualty			5,713		5,660		53			15			38
Workers’ Compensation			2,018		1,982		36			33			3
Property and Marine			789		839		(50	)		(8	)		(42	)
Total Commercial			10,089		10,067		22			49			(27	)
Specialty Insurance
Professional Liability			7,166		7,175		(9	)		35			(44	)
Surety			62		68		(6	)		—			(6	)
Total Specialty			7,228		7,243		(15	)		35			(50	)
Total Insurance			19,198		19,231		(33	)		88			(121	)
Reinsurance Assumed			874		924		(50	)		(33	)		(17	)
Total		$	20,072	$	20,155	$	(83	)	$	55		$	(138	)

Page 5 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2009			2008			2009			2008			2009			2008			2009			2008
Net Premiums Written	$	131		$	142		$	514		$	539		$	198		$	196		$	843		$	877
Decrease (Increase) in Unearned Premiums		9			14			80			70			(25	)		(21	)		64			63
Net Premiums Earned		140			156			594			609			173			175			907			940
Net Losses Paid		85			104			348			268			101			83			534			455
Increase (Decrease) in Outstanding Losses		(1	)		(6	)		(30	)		12			16			26			(15	)		32
Net Losses Incurred		84			98			318			280			117			109			519			487
Expenses Incurred		39			43			178			184			59			62			276			289
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	17		$	15		$	98		$	145		$	(3	)	$	4		$	112		$	164
Ratios After Dividends to Policyholders:
Loss		60.0	%		62.8	%		53.6	%		46.0	%		67.6	%		62.3	%		57.2	%		51.8	%
Expense		29.8			30.3			34.6			34.1			29.8			31.6			32.8			33.0
Combined		89.8	%		93.1	%		88.2	%		80.1	%		97.4	%		93.9	%		90.0	%		84.8	%
Premiums Written as a % of Total		4.8	%		4.8	%		18.7	%		18.4	%		7.2	%		6.7	%		30.7	%		29.9	%

Page 6 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2009			2008			2009			2008			2009			2008			2009			2008			2009			2008
Net Premiums Written	$	269		$	295		$	409		$	460		$	236		$	248		$	346		$	337		$	1,260		$	1,340
Decrease (Increase) in Unearned Premiums		24			23			(12	)		(25	)		(30	)		(31	)		(44	)		(41	)		(62	)		(74	)
Net Premiums Earned		293			318			397			435			206			217			302			296			1,198			1,266
Net Losses Paid		151			140			196			162			89			99			182			154			618			555
Increase (Decrease) in Outstanding Losses		(10	)		(5	)		101			118			42			28			(39	)		18			94			159
Net Losses Incurred		141			135			297			280			131			127			143			172			712			714
Expenses Incurred		101			106			114			129			51			53			116			118			382			406
Dividends Incurred		—			—			—			—			6			8			—			—			6			8
Statutory Underwriting Income (Loss)	$	51		$	77		$	(14	)	$	26		$	18		$	29		$	43		$	6		$	98		$	138
Ratios After Dividends to Policyholders:
Loss		48.1	%		42.5	%		74.8	%		64.4	%		65.5	%		60.8	%		47.4	%		58.1	%		59.7	%		56.7	%
Expense		37.6			35.9			27.9			28.0			22.2			22.1			33.5			35.0			30.5			30.5
Combined		85.7	%		78.4	%		102.7	%		92.4	%		87.7	%		82.9	%		80.9	%		93.1	%		90.2	%		87.2	%
Premiums Written as a % of Total		9.8	%		10.0	%		14.9	%		15.7	%		8.6	%		8.4	%		12.6	%		11.5	%		45.9	%		45.6	%

Page 7 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

	Professional												Total
	Liability						Surety						Specialty
	2009			2008			2009			2008			2009			2008
Net Premiums Written	$	553		$	604		$	77		$	99		$	630		$	703
Decrease (Increase) in Unearned Premiums		64			64			7			(17	)		71			47
Net Premiums Earned		617			668			84			82			701			750
Net Losses Paid		307			362			8			12			315			374
Increase (Decrease) in Outstanding Losses		82			19			(5	)		(11	)		77			8
Net Losses Incurred		389			381			3			1			392			382
Expenses Incurred		156			161			26			29			182			190
Dividends Incurred		—			—			2			1			2			1
Statutory Underwriting Income (Loss)	$	72		$	126		$	53		$	51		$	125		$	177
Ratios After Dividends to Policyholders:
Loss		63.1	%		57.0	%		3.6	%		1.2	%		56.1	%		51.0	%
Expense		28.2			26.7			34.7			29.6			29.0			27.1
Combined		91.3	%		83.7	%		38.3	%		30.8	%		85.1	%		78.1	%
Premiums Written as a % of Total		20.2	%		20.6	%		2.8	%		3.4	%		23.0	%		24.0	%

Page 8 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2009			2008			2009			2008			2009			2008
Net Premiums Written	$	2,733		$	2,920		$	10		$	16		$	2,743		$	2,936
Decrease (Increase) in Unearned Premiums		73			36			10			4			83			40
Net Premiums Earned		2,806			2,956			20			20			2,826			2,976
Net Losses Paid		1,467			1,384			42			32			1,509			1,416
Increase (Decrease) in Outstanding Losses		156			199			(50	)		(31	)		106			168
Net Losses Incurred		1,623			1,583			(8	)		1			1,615			1,584
Expenses Incurred		840			885			3			9			843			894
Dividends Incurred		8			9			—			—			8			9
Statutory Underwriting Income (Loss)	$	335		$	479		$	25		$	10			360			489
Increase in Deferred Acquisition Costs														16			13
GAAP Underwriting Income													$	376		$	502
Ratios After Dividends to Policyholders:
Loss		58.0	%		53.7	%		*	%		*	%		57.3	%		53.4	%
Expense		30.8			30.4			*			*			30.8			30.5
Combined		88.8	%		84.1	%		*	%		*	%		88.1	%		83.9	%
Premiums Written as a % of Total		99.6	%		99.5	%		0.4	%		0.5	%		100.0	%		100.0	%

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

Page 9 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(DOLLARS IN MILLIONS)

							Outside
							the						Worldwide
	United States						United States						Total
	2009			2008			2009			2008			2009			2008
Net Premiums Written	$	2,037		$	2,135		$	706		$	801		$	2,743		$	2,936
Decrease (Increase) in Unearned Premiums		190			132			(107	)		(92	)		83			40
Net Premiums Earned		2,227			2,267			599			709			2,826			2,976
Net Losses Paid		1,248			1,140			261			276			1,509			1,416
Increase (Decrease) in Outstanding Losses		29			110			77			58			106			168
Net Losses Incurred		1,277			1,250			338			334			1,615			1,584
Expenses Incurred		600			614			243			280			843			894
Dividends Incurred		8			9			—			—			8			9
Statutory Underwriting Income (Loss)	$	342		$	394		$	18		$	95			360			489
Increase in Deferred Acquisition Costs														16			13
GAAP Underwriting Income													$	376		$	502
Ratios After Dividends to Policyholders:
Loss		57.5	%		55.4	%		56.4	%		47.1	%		57.3	%		53.4	%
Expense		29.6			28.9			34.4			35.0			30.8			30.5
Combined		87.1	%		84.3	%		90.8	%		82.1	%		88.1	%		83.9	%
Premiums Written as a % of Total		74.3	%		72.7	%		25.7	%		27.3	%		100.0	%		100.0	%

Page 10 of 12

THE CHUBB CORPORATION

Definitions of Key Terms

Underwriting Income (Loss)

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

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

Property and Casualty Investment Income After Income Tax

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

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

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

Combined Loss and Expense Ratio or Combined Ratio

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

Page 11 of 12

THE CHUBB CORPORATION

Definitions of Key Terms

Operating Return on Equity

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

Page 12 of 12