-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SMYWFh38JVT94TigIONZolIQv5CO0q0SvAExlHG8wGaVb/+OZlod0dknQCsLBN0z 0ftUwy2gQ2ZyYcOV8M0hbg== 0000950123-96-002924.txt : 19960612 0000950123-96-002924.hdr.sgml : 19960612 ACCESSION NUMBER: 0000950123-96-002924 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960607 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHUBB CORP CENTRAL INDEX KEY: 0000020171 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 132595722 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08661 FILM NUMBER: 96578272 BUSINESS ADDRESS: STREET 1: 15 MOUNTAIN VIEW RD P O BOX 1615 CITY: WARREN STATE: NJ ZIP: 07061 BUSINESS PHONE: 9805802000 11-K 1 FORM 11-K FOR THE CHUBB CORPORATION 1 AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 7, 1996 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 ------------------ FORM 11-K ANNUAL REPORT ------------------ ['X'] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ____________ COMMISSION FILE NUMBER 1-8661 A. FULL TITLE OF THE PLAN: CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES. B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE: The Chubb Corporation (the "Corporation") 15 Mountain View Road P.O. Box 1615 Warren, New Jersey 07061 - 1615 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1995
S&P 500 SHORT TERM CHUBB FIXED INDEX INCOME CORPORATION INCOME BALANCED FUND FUND STOCK FUND FUND FUND ----------- ----------- ----------- ------------ ----------- Investments at fair value (Note 1 and 3) Common Stock of Chubb Corporation................... -- -- $89,391,679 -- -- Mutual Funds.................... $63,796,051 -- -- $10,133,705 Investment in Equities.......... -- -- -- -- -- Fixed Income Securities......... -- -- -- $162,189,730 -- Pooled Investments: US Government Money Market Fund................. -- $7,456,738 2,046,323 2,145,931 -- EGSF Venture Capital Fund..... 10,514 -- -- -- -- Participant Loans............... -- -- -- -- -- Accrued Income.................... -- 30,749 459,186 (45,950) -- Participants' transfers receivable (payable) between Funds........ (231,950) (107,217 ) (224,350 ) (6,922) 31,046 ----------- ---------- ------------ ------------ ----------- Net Assets Available for Plan Benefits at December 31, 1995 (Note 4)............... $63,574,615 $7,380,270 $91,672,838 $164,282,789 $10,164,751 =========== ========== ============ ============ ===========
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS YEAR ENDED DECEMBER 31, 1995 Contributions Employers: Pay conversion................ $ 3,137,990 $ 454,724 $ 4,187,695 $ 7,438,923 $ 920,454 Matching...................... 2,019,310 326,360 2,783,008 4,929,824 559,180 ----------- ---------- ------------ ------------ ----------- Total employers........... 5,157,300 781,084 6,970,703 12,368,747 1,479,634 Participants.................... 80,606 7,151 108,851 320,587 32,935 Rollovers....................... 493,512 278,556 764,303 1,536,937 234,484 Loan repayments................... 1,506,088 265,290 2,528,116 4,305,973 399,951 Interest.......................... 116 368,120 70,419 10,549,464 -- Dividends......................... 1,422,998 -- 1,888,103 -- 462,030 Net appreciation/(depreciation) in fair value of assets............ 15,243,386 -- 18,829,485 -- 1,211,256 Participants' transfer between Funds................... 913,226 (117,507) (10,104,805) (7,717,299) 1,518,480 Distributions to participants..... (4,297,317) (846,061) (6,828,565) (13,129,550) (406,585) Forfeitures....................... (15,897) (748) (10,892) (26,920) (11,967) ----------- ---------- ------------ ------------ ----------- Increase in Net Assets Available for Plan Benefits during the year................. 20,504,018 735,885 14,215,718 8,207,939 4,920,218 Net Assets Available for Plan Benefits at December 31, 1994... 43,070,597 6,644,385 77,457,120 156,074,850 5,244,533 ----------- ---------- ------------ ------------ ----------- Net Assets Available for Plan Benefits at December 31, 1995 (Note 4)................ $63,574,615 $7,380,270 $ 91,672,838 $164,282,789 $10,164,751 =========== ========== ============ ============ ===========
See accompanying notes. 2 3
GROWTH EMERGING EQUITIES INTERNATIONAL MARKETS LONG-TERM VALUE PARTICIPANT TOTAL FUND EQUITY FUND EQUITY FUND BOND FUND EQUITY FUND LOANS ALL FUNDS ---------- ------------- ----------- ---------- ----------- ----------- ------------ Investments at fair value (Note 1 and 3) Common Stock of Chubb Corporation................... -- -- -- -- -- -- $ 89,391,679 Mutual Funds.................... $22,389,725 $7,393,606 $10,166,707 -- -- 113,879,794 Investment in Equities.......... -- -- -- -- $11,066,364 -- 11,066,364 Fixed Income Securities......... -- -- -- $5,160,791 -- -- 167,350,521 Pooled Investments: US Government Money Market Fund................. -- -- -- 52,144 2,720,971 -- 14,422,107 EGSF Venture Capital Fund..... -- -- -- -- -- -- 10,514 Participant Loans............... -- -- -- -- -- $22,375,827 22,375,827 Accrued Income.................... -- -- -- 194 33,482 -- 477,661 Participants' transfers receivable (payable) between Funds........ 178,016 82,853 141,206 (33,454 156,572 14,200 -- ----------- ---------- ----------- ---------- ----------- ----------- ------------ Net Assets Available for Plan Benefits at December 31, 1995 (Note 4)............... $22,567,741 $7,476,459 $10,307,913 $5,179,675 $13,977,389 $22,390,027 $418,974,467 =========== ========== =========== ========== =========== =========== ============ Contributions Employers: Pay conversion................ $ 2,328,669 $1,064,653 $ 1,429,511 $ 616,428 $ 1,339,008 -- $ 22,918,055 Matching...................... 1,373,532 632,162 852,226 391,935 809,929 -- 14,677,466 ----------- ---------- ----------- ---------- ----------- ------------ ------------ Total employers........... 3,702,201 1,696,815 2,281,737 1,008,363 2,148,937 -- 37,595,521 Participants.................... 70,015 38,693 53,946 32,692 39,711 -- 785,187 Rollovers....................... 477,628 159,609 169,691 216,884 240,741 -- 4,572,345 Loan repayments................... 870,593 450,039 638,255 244,934 559,179 $(11,768,418) -- Interest.......................... -- -- 754 2,232 67,195 1,662,379 12,720,679 Dividends......................... 1,381,477 214,597 83,878 286,161 196,263 -- 5,935,507 Net appreciation/(depreciation) in fair value of assets............ 3,357,721 488,050 1,183,506 336,701 2,575,462 -- 43,225,567 Participants' transfer between Funds................... 2,686,527 (1,526,384) (1,493,821) 695,539 1,671,227 13,474,816 -- Distributions to participants..... (1,286,283) (560,897) (877,572) (242,240) (831,323) (1,757,819) (31,064,212) Forfeitures....................... (25,034) (8,312) (10,923) (7,182) (11,655) -- (129,529) ----------- ---------- ----------- ---------- ----------- ------------ ------------ Increase in Net Assets Available for Plan Benefits during the year................. 11,234,845 952,210 2,029,451 2,574,084 6,655,737 1,610,958 73,641,063 Net Assets Available for Plan Benefits at December 31, 1994... 11,332,896 6,524,249 8,278,462 2,605,591 7,321,652 20,779,069 345,333,404 ----------- ---------- ----------- ---------- ----------- ------------ ------------ Net Assets Available for Plan Benefits at December 31, 1995 (Note 4)................ $22,567,741 $7,476,459 $10,307,913 $5,179,675 $13,977,389 $ 22,390,027 $418,974,467 =========== ========== =========== ========== =========== ============ ============
3 4 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1994
S&P 500 SHORT TERM CHUBB FIXED INDEX INCOME CORPORATION INCOME BALANCED FUND FUND STOCK FUND FUND FUND ----------- ---------- ----------- ------------ ---------- Investments (Notes 1 and 3) Common Stock of Chubb Corporation........... -- -- $75,639,401 -- -- Mutual Funds............ $43,266,526 -- -- -- $5,270,293 Investment in Equities.. -- -- -- -- -- Fixed Income Securi- ties.................. -- -- -- $151,493,529 -- Pooled Investments: US Government Money Market Fund......... -- $6,629,436 1,421,649 4,346,464 -- EGSF Venture Capital Fund................ 14,790 -- -- -- -- Participant Loans....... -- -- -- -- -- Accrued Income............ 1,890 28,372 453,906 (11,879) -- Participants' transfers receivable (payable) between Funds........... (212,609) (13,423) (57,836) 246,736 (25,760) ----------- ---------- ----------- ------------ ---------- Net Assets Available for Plan Benefits at December 31, 1994 (Note 4)....... $43,070,597 $6,644,385 $77,457,120 $156,074,850 $5,244,533 =========== ========== =========== ============ ==========
See accompanying notes. 4 5
GROWTH EQUITIES INTERNATIONAL EMERGING MARKETS LONG-TERM VALUE PARTICIPANT TOTAL FUND EQUITY FUND EQUITY FUND BOND FUND EQUITY FUND LOANS ALL FUNDS ------------- ------------- ---------------- ---------- ----------- ------------ ------------ Investments (Notes 1 and 3) Common Stock of Chubb Corporation......... -- -- -- -- -- -- $ 75,639,401 Mutual Funds............ $11,346,461 $ 6,564,921 $8,281,240 -- -- -- 74,729,441 Investment in Equities.. -- -- -- -- $7,269,675 -- 7,269,675 Fixed Income Securi- ties.................. -- -- -- $2,510,083 -- -- 154,003,612 Pooled Investments: US Government Money Market Fund......... -- -- -- 25,772 3,802 -- 12,427,123 EGSF Venture Capital Fund................ -- -- -- -- -- -- 14,790 Participant Loans....... -- -- -- -- -- $ 20,757,771 20,757,771 Accrued Income............ -- -- -- 232 19,070 -- 491,591 Participants' transfers receivable (payable) between Funds........... (13,565) (40,672) (2,778) 69,504 29,105 21,298 -- -------- -------- -------- -------- -------- --------- ---------- Net Assets Available for Plan Benefits at December 31, 1994 (Note 4)....... $11,332,896 $ 6,524,249 $8,278,462 $2,605,591 $7,321,652 $ 20,779,069 $345,333,404 ========== ========= ========= ========= ========= ========== ===========
5 6 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 AND 1994 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment valuation The Plan's assets at December 31, 1995 are held by The Chase Manhattan Bank, N.A., as successor trustee to United States Trust Company of New York, and at December 31, 1994 by the United States Trust Company of New York in a trust established effective January 1, 1994 for the benefit of the participants of the Plan (the "Trust Fund"). The Trust Fund's assets are valued as follows: - Marketable equity and debt securities traded on a national securities exchange are valued at the last reported sale price on the last business day of the year. Such securities traded in the over-the- counter market are valued at the closing bid price on the last business day of the calendar year. - Interests in commingled trust funds, mutual funds and pooled investment funds are valued at the redemption price established by the trustee or the investment manager of the respective fund. - Participants' notes are valued at the unpaid principal balances, with maturities ranging from one to ten years. Notes executed during the period January 1, 1984 through September 30, 1989, bear interest at a rate which is one percent less than the 90-day Treasury Bill rate as established by the Federal Reserve Bank at its offering immediately preceding the valuation date next preceding the valuation date on which the loan is made, except that the rate shall not exceed the guaranteed annual rate of return of the Fixed Income Fund for the quarter ending on the applicable valuation date next preceding the valuation date on which the loan is made, nor the maximum rate permitted by applicable law. Notes executed during the period September 30, 1989 through March 20, 1994 bear interest at a rate which is equal to the prime rate charged by Citibank, N.A. as of the applicable valuation date next preceding the valuation date on which the loan is made, rounded up to the next whole integer, except that the rate shall not exceed the maximum rate permitted by applicable law. Notes executed after March 20, 1994 bear interest at a rate which is equal to the prime rate as reported in the Wall Street Journal on the last business day of the month next preceding the valuation date on which the loan is made, rounded up to the next whole integer, except that the rate shall not exceed the maximum rate permitted by applicable law. - The underlying investments of the Fixed Income Fund are contracts with insurance companies and banks under which each insurance company or bank agrees to pay a rate of interest equal to or in excess of the rate initially guaranteed for a specified period of time. These insurance contracts are fully benefit responsive and are valued at contract value. Contract value represents contributions to the fund plus interest accrued less redemptions. The interest rates for the calendar years 1995 and 1994 were 6.8% and 7.1%, respectively. These contracts are subject to certain restrictions or penalties in the event of early withdrawal or liquidation. Security transactions Purchases and sales of securities are recorded on trade dates. Gains or losses on the sale of securities are based on average cost. Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis. 6 7 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1995 AND 1994 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED) Administrative and investment management expenses Prior to March 1995, all expenses related to the administration of the Plan and all fees paid to the trustee and other investment managers for the management of the Plan's investments, except for investment management expenses attributable to a certain Fixed Income Fund investment contract, were paid by The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates (the "Employers"). The Profit Sharing Committee of The Chubb Corporation is authorized to charge Participants account maintenance fees. Beginning in March 1995, certain trustee fees are being paid by the Plan. Income tax status The Internal Revenue Service ("IRS") has determined and informed the Company by letter dated December 22, 1995 that the Plan qualifies under Section 401(a) of the Internal Revenue Code ("IRC"), and therefore the trust established under the Plan is tax-exempt. The Plan administrator and its counsel believe that the Plan is currently designed and being operated in compliance with applicable requirements of the IRC. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 2. PLAN DESCRIPTION The Plan is a defined contribution plan. Generally, each employee is eligible to participate in the Plan either upon the completion of one year of service and the attainment of age 21 or the completion of two years of service. Under the Plan, a participant may elect to have part of his or her salary otherwise due from the Employer contributed to the Plan by such Employer on a pre-tax basis (the employer pay conversion contribution) or after tax basis (participant contribution). The Plan is funded on a bi-weekly basis. Pre-tax contributions are subject to an annual limitation of $9,240 in 1995 and 1994, which may be increased annually based on the Consumer Price Index. A participant's pre-tax pay conversion contributions are matched dollar for dollar up to the first 4% of compensation (the employer matching contribution). In addition, employees may make rollover contributions from other qualified plans. The Plan allows each participant the option of investing his or her own contribution and his or her share of the employer's matching contribution in several investment funds. Participants may, subject to limitations, transfer their investments between funds at their own request. Generally, the investments of the individual funds are managed by several outside investment managers, subject to the Plan's guidelines. Chubb Equity Managers, Inc., a subsidiary of The Chubb Corporation, is the investment manager of the Value Equity Fund. A separate account is maintained for each participant. Each participant employed prior to December 31, 1992 has a 100% vested nonforfeitable interest in all units credited to his or her account. A participant hired after December 31, 1992 is required to complete five years of service in order to have a 100% vested nonforfeitable interest in units credited to his or her account attributable to the employer matching contribution and earnings on the employer matching contribution. Service with affiliated non-participating companies is considered in calculating vesting and participation service. Forfeited balances of terminated participants nonvested accounts are used to reduce future company contributions or pay plan expenses. 7 8 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1995 AND 1994 2. PLAN DESCRIPTION -- (CONTINUED) A participant may withdraw any amount which does not exceed the aggregate current value of his or her own contributions, subject to certain limitations. In the event of financial hardship, there are provisions, subject to limitations and penalties, which will permit an active participant to withdraw certain other amounts from his or her account. All withdrawals must be in cash. Participants may obtain loans from the Plan pursuant to the provisions specified in the Plan. Loans are payable in equal installments representing a combination of interest and principal by withholding from the participant's biweekly paychecks, and the outstanding principal amounts of any loans can be prepaid on any applicable valuation date. In the event a participant has a loan outstanding under the Plan, various limitations exist on such participant's rights to receive further loans under the Plan. Upon retirement, the balance in a participant's account is payable to him or her in a lump sum or in annual installments over 5, 10 or 15 years or over a period equal to his or her life expectancy or to the joint life expectancies of the participant and his or her spousal beneficiary. In addition to these options, a participant may elect to defer the lump sum payment or the commencement of annual installments until the day following any applicable valuation date, then elected by him or her, which is not later than the April 1 of the calendar year following the calendar year in which the participant attains age 70 1/2. In the event of termination of employment other than by reason of retirement or death, a participant will receive the balance in his or her separate account in a lump sum payment. However, if the value in the participant's account is greater than a certain limit, the participant may choose either to receive the lump sum distribution or to leave the units invested in the Plan until age 65, disability or death. If a participant dies, before or after retirement or after termination, any remaining balance in his or her account is paid to his or her estate or beneficiary under any of the following payment options: (a) lump sum, (b) installments as received by the participant prior to death, or (c) installment payments in accordance with the Plan, regardless of method received by participant prior to death. Upon request, any lump sum distribution to a participant or his or her beneficiary from The Chubb Corporation Stock Fund may be made in common stock of The Chubb Corporation in lieu of cash payments. While the Employers have not expressed any intent to terminate the Plan, they are free to do so at any time subject to the provisions of ERISA. In the event of such a termination, each affected participant is entitled to receive the value of his or her account. 3. INVESTMENTS The Trust Fund is managed by The Chase Manhattan Bank, N.A. (the "Trustee") successor to the United States Trust Company of New York, a fiduciary with respect to the Plan under an agreement with the Employers. The Trust Fund's assets are held or accounted for by the Trustee under a trust agreement. The Trustee and certain investment managers have full discretionary authority for the purchase and sale of investments subject to certain limitations on the composition of the portfolio as specified in the trust agreement. 8 9 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1995 AND 1994 3. INVESTMENTS -- (CONTINUED) The following table presents investments. Investments that represent 5 percent or more of the Plan's net assets are separately identified.
DECEMBER 31, 1995 DECEMBER 31, 1994 ------------------------------ ------------------------------ COST FAIR VALUE COST FAIR VALUE ------------- ------------- ------------- ------------- Fixed Income Securities Investments in Insurance and Bank Contracts............... $162,189,730 $162,189,730 $151,493,529 $151,493,529 Bond Mutual Fund................ 4,971,306 5,160,791 2,655,980 2,510,083 ------------ ------------ ------------ ------------ Subtotal................ $167,161,036 $167,350,521 $154,149,509 $154,003,612 ------------ ------------ ------------ ------------ The Chubb Corporation Common Stock........................... $ 45,457,913 $ 89,391,679 $ 46,782,880 $ 75,639,401 ------------ ------------ ------------ ------------ Investments in Equities........... $ 9,133,873 $ 11,066,364 $ 7,675,519 $ 7,269,675 ------------ ------------ ------------ ------------ Mutual Funds BT Institutional Equity 500 Index Fund................... $ 50,088,492 $ 63,796,051 $ 44,394,208 $ 43,266,526 Fidelity Contrafund Fund........ 19,497,910 22,389,725 11,350,600 11,346,461 Other........................... 25,532,276 27,694,018 20,222,064 20,116,454 ------------ ------------ ------------ ------------ Subtotal................ $ 95,118,678 $113,879,794 $ 75,966,872 $ 74,729,441 ------------ ------------ ------------ ------------ Pooled Investments................ $ 14,427,859 $ 14,432,621 $ 12,436,318 $ 12,441,913 ------------ ------------ ------------ ------------ Participant Loans (maturing from January 1996 to December 2005 with interest rates from 4.25% to 16.0%)....................... $ 22,375,827 $ 22,375,827 $ 20,757,771 $ 20,757,771 ------------ ------------ ------------ ------------ TOTAL................... $353,675,186 $418,496,806 $317,768,869 $344,841,814 ============ ============ ============ ============
4. UNITS OF PARTICIPATION AND VALUES The interest of an employee in the investment chosen is represented by units of participation. The number and value of units at the quarterly valuation dates for the years ended December 31, 1995 and 1994 were as follows:
NUMBER OF NUMBER OF UNITS NET ASSET UNITS NET ASSET HELD BY VALUE HELD BY VALUE PARTICIPANTS PER UNIT PARTICIPANTS PER UNIT ------------- ---------- ------------- ---------- DECEMBER 31, 1995 DECEMBER 31, 1994 -------------------------- -------------------------- S&P 500 Index Fund.............................................. 262,671.312 $241.55963 244,249.916 $175.59467 Short Term Income Fund.......................................... 75,365.722 97.87620 71,289.730 92.75478 Chubb Corporation Stock Fund.................................... 180,128.394 508.38552 193,872.418 398.23526 Fixed Income Fund............................................... 3,128,068.438 52.40959 3,164,973.450 49.08706 Balanced Fund................................................... 791,330.504 12.84390 501,615.853 10.27100 Growth Equities Fund............................................ 1,646,639.488 13.70492 1,126,924.695 10.05648 International Equity Fund....................................... 666,918.376 11.21024 643,836.525 10.13339 Emerging Markets Equity Fund.................................... 819,519.843 12.57704 764,713.240 10.82558 Long-term Bond Fund............................................. 441,339.041 11.73548 263,555.695 9.88630 Value Equity Fund............................................... 1,061,166.088 13.17136 744,477.879 9.83462
9 10 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1995 AND 1994 4. UNITS OF PARTICIPATION AND VALUES -- (CONTINUED)
NUMBER OF NUMBER OF UNITS NET ASSET UNITS NET ASSET HELD BY VALUE HELD BY VALUE PARTICIPANTS PER UNIT PARTICIPANTS PER UNIT ------------- ---------- ------------- ---------- SEPTEMBER 30, 1995 SEPTEMBER 30, 1994 -------------------------- -------------------------- S&P 500 Index Fund.............................................. 259,095.065 $227.73097 243,073.037 $175.41813 Short Term Income Fund.......................................... 71,208.543 96.60042 71,763.765 91.65169 Chubb Corporation Stock Fund.................................... 181,793.302 501.70262 195,298.651 364.28714 Fixed Income Fund............................................... 3,156,387.532 51.58134 3,142,450.511 48.27128 Balanced Fund................................................... 731,150.835 12.20843 503,397.117 10.25321 Growth Equities Fund............................................ 1,516,123.820 13.48718 1,022,088.561 10.15275 International Equity Fund....................................... 644,325.990 10.61954 577,883.927 10.34244 Emerging Markets Equity Fund.................................... 841,272.991 12.12095 602,938.228 11.74300 Long-term Bond Fund............................................. 394,487.567 11.27079 241,972.018 9.90219 Value Equity Fund............................................... 997,236.811 12.89292 712,829.163 10.18937
JUNE 30, 1995 JUNE 30, 1994 -------------------------- -------------------------- S&P 500 Index Fund.............................................. 253,684.788 $211.05588 244,881.919 $167.36232 Short Term Income Fund.......................................... 72,283.096 95.33006 73,221.613 90.73606 Chubb Corporation Stock Fund.................................... 192,300.166 417.37230 195,042.393 389.46505 Fixed Income Fund............................................... 3,174,938.446 50.74241 3,164,165.966 47.44257 Balanced Fund................................................... 657,068.914 11.58362 474,891.580 9.96839 Growth Equities Fund............................................ 1,309,267.951 12.14212 969,625.731 9.67457 International Equity Fund....................................... 639,173.611 9.95816 486,037.774 10.21187 Emerging Markets Equity Fund.................................... 779,455.628 12.02067 483,622.384 10.60594 Long-term Bond Fund............................................. 334,541.637 10.93855 242,277.839 9.89120 Value Equity Fund............................................... 855,518.677 11.89196 644,636.766 9.88052
MARCH 31, 1995 MARCH 31, 1994 -------------------------- -------------------------- S&P 500 Index Fund.............................................. 245,998.164 $192.56714 251,570.210 $166.69110 Short Term Income Fund.......................................... 71,061.141 94.01062 72,875.001 89.97513 Chubb Corporation Stock Fund.................................... 196,109.638 409.04952 197,705.294 369.60422 Fixed Income Fund............................................... 3,204,100.071 49.91664 3,266,497.892 46.64270 Balanced Fund................................................... 568,155.140 10.91883 401,651.822 10.00000 Growth Equities Fund............................................ 1,201,869.192 10.66753 717,534.049 10.00000 International Equity Fund....................................... 640,808.823 9.73194 353,664.738 10.00000 Emerging Markets Equity Fund.................................... 723,124.532 10.89647 335,486.164 10.00000 Long-term Bond Fund............................................. 308,348.089 10.36247 187,190.755 10.00000 Value Equity Fund............................................... 799,761.575 10.66614 506,147.059 10.00000
5. FUND BALANCES DUE PARTICIPANTS Amounts allocated to accounts of Participants who have withdrawn from participation in the Plan at December 31, 1995 were as follows: S&P 500 Index Fund............................................................... $123,945 Short Term Income Fund........................................................... 3,759 Chubb Corporation Stock Fund..................................................... 99,737 Fixed Income Fund................................................................ 342,116 Balanced Fund.................................................................... -- Growth Equities Fund............................................................. 680 International Equity Fund........................................................ 142 Emerging Markets Equity Fund..................................................... 781 Long-term Bond Fund.............................................................. 398 Value Equity Fund................................................................ 382 -------- Total.................................................................... $571,940 ========
For the purpose of preparing the Plan's Form 5500, the Department of Labor Rules and Regulations require that these amounts be reported as liabilities. Distributions to Participants on Form 5500 also differ for this reason. 10 11 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES ITEM 27A -- ASSETS HELD FOR INVESTMENT DECEMBER 31, 1995
NUMBER OF UNITS CONTRACT OR SECURITY DESCRIPTION OR SHARES COST FAIR VALUE - -------------------------------------------------- ------------- ------------ ------------ Fixed Income Securities CNA Insurance Company........................... 1 $ 12,090,698 $ 12,090,698 Contract #13027, due in equal maturities on 3/31/95 and 9/30/95, at 7.83% Commonwealth Life Insurance Company............. 1 12,099,136 12,099,136 Contract #ADA00674FR, due in equal maturities on 9/30/99 and 12/31/99, at 7.89% Commonwealth Life Insurance Company............. 1 6,091,243 6,091,243 Contract #ADA00766FR, due on 6/30/2000, at 6.33% Hartford Life Insurance Company................. 1 9,019,807 9,019,807 Contract #GA9655, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.92% Hartford Life Insurance Company................. 1 12,383,729 12,383,729 Contract #GA9534, due 9/30/97, at 5.77% John Hancock Life Insurance Company............. 1 13,186,825 13,186,825 Contract #7836, due in equal maturities on 3/31/2000 and 9/30/2000, at 7.33% JP Morgan Asset Management...................... 1 15,251,615 15,251,615 Contract #2015, due 9/30/96, at 6.90% JP Morgan Asset Management...................... 1 15,240,576 15,240,576 Contract #2033, due in equal maturities on 3/31/96 and 3/31/97, at 6.59% Provident National Assurance Company............ 1 218,206 218,206 Contract #027-04079, due 10/1/96, at 8.75% Provident National Assurance Company............ 1 9,030,089 9,030,089 Contract #627-05490, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.97% Prudential Asset Management..................... 1 8,092,035 8,092,035 Contract #6529-212, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 6.04% Principal Mutual Life Insurance Company......... 1 13,186,750 13,186,750 Contract #15670, due in equal maturities on 3/31/2000 and 9/30/2000, at 7.35% Principal Mutual Life Insurance Company......... 1 6,092,370 6,092,370 Contract #3-16924, due on 12/31/2000, at 6.41% Prudential Asset Management..................... 1 14,572,597 14,572,597 Contract #6529-213, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.37%
11 12 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES -- (CONTINUED) ITEM 27A -- ASSETS HELD FOR INVESTMENT DECEMBER 31, 1995
NUMBER OF UNITS CONTRACT OR SECURITY DESCRIPTION OR SHARES COST FAIR VALUE - -------------------------------------------------- ------------- ------------ ------------ Pacific Mutual Life Insurance Company........... 1 $ 9,013,338 $ 9,013,338 Contract #G25863.02, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.90% Pacific Mutual Life Insurance Company........... 1 6,620,716 6,620,716 Contract #G25863.03, due 6/30/99, at 7.34% MAS Funds Fixed Income Portfolio................ 437,726.10 4,971,306 5,160,791 ------------ ------------ Subtotal..................................... $167,161,036 $167,350,521 ------------ ------------ The Chubb Corporation Common Stock................ 923,945 $ 45,457,913 $ 89,391,679 ------------ ------------ Investments in Equities (Common stock unless otherwise noted) American Home Products Corp..................... 3,700 $ 214,357 $ 358,900 Archer Daniels Midland Co....................... 20,160 312,852 362,880 Asia Pulp & Paper LTD Sponsored Adr............. 26,300 324,579 213,688 Atlantic Richfield Co........................... 2,000 216,140 221,500 Avnet Inc....................................... 5,900 221,672 264,025 Berkley W R Corp................................ 8,100 291,436 435,375 Borg Warner Automotive Inc...................... 10,000 243,711 320,000 Burlington Inds Inc New......................... 24,000 312,744 315,000 Burlington Northern Inc......................... 3,000 150,414 234,000 Canadian Pacific LTD NPV........................ 20,300 328,759 367,938 Chrysler Corp................................... 5,900 279,263 326,713 Circuit City Stores Inc......................... 11,000 289,520 303,875 Compaq Computer Corp............................ 7,400 248,123 355,200 Cummins Engine Co Inc........................... 7,900 362,749 292,300 Cyprus Amax Minerals Co......................... 10,500 294,262 274,313 Exxon Corp...................................... 4,300 261,348 346,150 Federal Express Corp............................ 5,000 310,255 369,375 First Chicago NBD Corp.......................... 7,059 189,672 278,831 General Motors Corp Class H..................... 5,800 200,694 284,925 Hanson Tr PLC Sponsored Adr..................... 19,300 326,363 294,325 Inco Ltd........................................ 9,200 250,555 305,900 Keycorp......................................... 8,600 250,709 311,750 May Dept Stores Co.............................. 6,600 226,264 278,850 Mellon Bank Corp................................ 7,700 284,146 413,875 Merrill Lynch & Co Inc.......................... 4,300 153,214 219,300 Offshore Logistics Inc.......................... 16,900 232,708 213,363 Old Republic Intl Corp.......................... 9,300 210,471 330,150 Owens Corning Fiberglass Corp................... 8,100 284,796 363,488 Paine Webber Group Inc.......................... 12,300 204,945 246,000 Philip Morris Cos Inc........................... 4,100 217,418 370,025
12 13 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES -- (CONTINUED) ITEM 27A -- ASSETS HELD FOR INVESTMENT DECEMBER 31, 1995
NUMBER OF UNITS CONTRACT OR SECURITY DESCRIPTION OR SHARES COST FAIR VALUE - -------------------------------------------------- ------------- ------------ ------------ Progressive Corp Ohio........................... 5,600 $ 165,334 $ 273,700 Redman Inds Inc New............................. 12,000 226,500 405,000 Sothebys Hldgs Inc Class A...................... 17,000 253,307 242,250 Ultramar Corp................................... 10,000 238,050 257,500 Whirlpool Corp.................................. 4,500 228,015 239,625 YPF S.A. Sponsored ADR Reg Class D Shs.......... 17,400 328,529 376,275 ------------ ------------ Subtotal..................................... $ 9,133,873 $ 11,066,364 ------------ ------------ Mutual Funds Colonial Tr VII Newport Tiger Fund Class Z...... 816,688.12 $ 9,004,298 $ 10,166,707 BT Institutional Equity 500 Index Fund.......... 4,566,805.95 50,088,492 63,796,051 Columbia Balance Fund........................... 504,719.72 9,175,218 10,133,705 Fidelity Contrafund Fund........................ 588,893.33 19,497,910 22,389,725 Morgan Stanley Institutional Fund, Inc.-Active Country Allocation Fund...................... 635,943.53 7,352,760 7,393,606 ------------ ------------ Subtotal..................................... $ 95,118,678 $113,879,794 ------------ ------------ Pooled Investments EGSF Venture Capital-Citibank Fund.............. 17.56 $ 5,752 $ 10,514 Excelsior Government Money Market Fund.......... 7,456,738.00 7,456,738 7,456,738 Vista Premier US Government Money Market Fund... 6,965,369.00 6,965,369 6,965,369 ------------ ------------ Subtotal..................................... $ 14,427,859 $ 14,432,621 ------------ ------------ Participant Loans (Maturities January 1996 to December 2005, Rates 4.25% to 16%).............. 22,375,827.00 $ 22,375,827 $ 22,375,827 ------------ ------------ TOTAL...................................... $353,675,186 $418,496,806 ============ ============
13 14 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES EXHIBIT 27D -- SCHEDULE OF REPORTABLE TRANSACTIONS DECEMBER 31, 1995
SALE OR COST OF NET NUMBER OF PURCHASE REDEMPTION ASSETS GAIN TRANSACTIONS PRICE PRICE SOLD (LOSS) ------------ ----------- ----------- ----------- ----------- Category (iii) -- Series of transactions in excess of 5% of plan assets: Excelsior Govt Money Fund...... 1,003 $62,466,112 $67,436,497 $67,436,497 -- Vista Premier US Government Money Market Fund........... 341 47,223,888 40,258,519 40,258,519 -- Participant Loans.............. 590 $13,437,759 $11,819,703 $11,819,703 --
There were no category (i) or (ii) or (iv) reportable transactions during 1995. 14 15 REPORT OF INDEPENDENT AUDITORS The Profit Sharing Committee Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates We have audited the accompanying statements of Net Assets Available for Plan Benefits of the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates as of December 31, 1995 and 1994, and the related Statement of Changes in Net Assets Available for Plan Benefits for the year ended December 31, 1995. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the Net Assets Available for Plan Benefits of the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates at December 31, 1995 and 1994 and the Changes in its Net Assets Available for Plan Benefits for the year ended December 31, 1995, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of December 31, 1995, and reportable transactions for the year then ended, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the basic financial statements. The Fund Information in the Statement of Net Assets Available for Plan Benefits and the Statement of Changes in Net Assets Available for Plan Benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. ERNST & YOUNG LLP New York, New York June 7, 1996 ------------------------ CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statements (Form S-8: No. 33-12208, No. 33-29185, No. 33-30020, No. 33-49230 and No. 33-49232) pertaining to the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates and in the related Prospectuses of our report dated June 7, 1996 with respect to the financial statements and schedules of the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates included in this Annual Report (Form 11-K) for the year ended December 31, 1995. ERNST & YOUNG LLP New York, New York June 7, 1996 15 16 SIGNATURES PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE PROFIT SHARING COMMITTEE OF THE CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. and PARTICIPATING AFFILIATES By: /s/ Donald B. Lawson ------------------------ DONALD B. LAWSON, A MEMBER OF THE PROFIT SHARING COMMITTEE Dated: June 7, 1996 -----END PRIVACY-ENHANCED MESSAGE-----