Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2011

Condensed Financial Information of Parent Company [Abstract]

Condensed Financial Information of Parent Company

THE CHUBB CORPORATION

Schedule II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS — PARENT COMPANY ONLY

(in millions)

December 31

	2011			2010
Assets
Invested Assets
Short Term Investments	$	1,030		$	811
Taxable Fixed Maturities (cost $935 and $1,138)		962			1,181
Equity Securities (cost $200 and $205)		179			171
Other Invested Assets		27			23
TOTAL INVESTED ASSETS		2,198			2,186
Investment in Consolidated Subsidiaries		16,951			17,337
Other Assets		188			162
TOTAL ASSETS	$	19,337		$	19,685
Liabilities
Long Term Debt	$	3,575		$	3,975
Dividend Payable to Shareholders		107			112
Accrued Expenses and Other Liabilities		81			68
TOTAL LIABILITIES		3,763			4,155
Shareholders’ Equity
Preferred Stock — Authorized 8,000,000 Shares; $1 Par Value; Issued — None		—			—
Common Stock — Authorized 1,200,000,000 Shares; $1 Par Value; Issued 371,980,460 Shares		372			372
Paid-In Surplus		190			208
Retained Earnings		19,176			17,943
Accumulated Other Comprehensive Income		1,195			790
Treasury Stock, at Cost — 99,519,509 and 74,707,547 Shares		(5,359	)		(3,783	)
TOTAL SHAREHOLDERS’ EQUITY		15,574			15,530
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	19,337		$	19,685

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.

STATEMENTS OF INCOME — PARENT COMPANY ONLY

(in millions)

Years Ended December 31

	2011			2010			2009
Revenues
Investment Income	$	46		$	76		$	64
Other Revenues		—			2			—
Realized Investment Gains, Net		9			16			88
TOTAL REVENUES		55			94			152
Expenses
Corporate Expenses		285			288			292
Investment Expenses		3			3			3
Other Expenses		—			3			—
TOTAL EXPENSES		288			294			295
Loss before Federal and Foreign Income Tax and Equity in Net Income of Consolidated Subsidiaries		(233	)		(200	)		(143	)
Federal and Foreign Income Tax (Credit)		1			(3	)		(7	)
Loss before Equity in Net Income of Consolidated Subsidiaries		(234	)		(197	)		(136	)
Equity in Net Income of Consolidated Subsidiaries		1,912			2,371			2,319
NET INCOME	$	1,678		$	2,174		$	2,183

Chubb and its domestic subsidiaries file a consolidated federal income tax return. The federal income tax provision represents an allocation under the Corporation’s tax allocation agreements.

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.

STATEMENTS OF CASH FLOWS — PARENT COMPANY ONLY

(in millions)

Years Ended December 31

	2011			2010			2009
Cash Flows from Operating Activities
Net Income	$	1,678		$	2,174		$	2,183
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Equity in Net Income of Consolidated Subsidiaries		(1,912	)		(2,371	)		(2,319	)
Realized Investment Gains, Net		(9	)		(16	)		(88	)
Other, Net		(28	)		(14	)		111
NET CASH USED IN OPERATING ACTIVITIES		(271	)		(227	)		(113	)
Cash Flows from Investing Activities
Proceeds from Fixed Maturities
Sales		2			3			5
Maturities, Calls and Redemptions		456			202			126
Proceeds from Sales of Equity Securities		9			—			308
Purchases of Fixed Maturities		(257	)		(73	)		(651	)
Investments in Other Invested Assets, Net		—			33			—
Decrease (Increase) in Short Term Investments, Net		(219	)		199			543
Dividends Received from Consolidated Insurance Subsidiaries		2,700			2,200			1,200
Distributions Received from Consolidated Non-Insurance Subsidiaries		1			4			35
Other, Net		56			60			60
NET CASH PROVIDED BY INVESTING ACTIVITIES		2,748			2,628			1,626
Cash Flows from Financing Activities
Repayment of Long Term Debt		(400	)		—			—
Proceeds from Issuance of Common Stock Under Stock-Based Employee Compensation Plans		80			74			34
Repurchase of Shares		(1,707	)		(2,003	)		(1,060	)
Dividends Paid to Shareholders		(450	)		(472	)		(487	)
NET CASH USED IN FINANCING ACTIVITIES		(2,477	)		(2,401	)		(1,513	)
Net Increase in Cash		—			—			—
Cash at Beginning of Year		—			—			—
CASH AT END OF YEAR	$	—		$	—		$	—

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.