-----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, Q2w3SSwHD+zJKO6XIxu8B6hYCdP5JqIlQUsbEvvWfSU1bqUhUxUo3wPoDEqEtypj 6E3oMZG7L1RdNDc5GoxdXQ== 0000950123-97-005417.txt : 19970630 0000950123-97-005417.hdr.sgml : 19970630 ACCESSION NUMBER: 0000950123-97-005417 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970627 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: 97631414 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 ================================================================================ 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, 1996 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, 1996
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 The Chubb Corporation.............. -- -- $96,024,482 -- -- Mutual Funds............... $84,580,098 -- -- -- $15,834,784 Investment in Equities..... -- -- -- -- -- Fixed Income Securities.... -- -- -- $161,099,199 -- Pooled Investments: US Government Money Market Fund............ -- $6,562,036 2,215,750 3,223,769 -- EGSF Venture Capital Fund................... 10,433 -- -- -- -- Participant Loans.......... -- -- -- -- Accrued Income............... -- 26,950 492,429 12,873 -- Participants' transfers receivable (payable) between Funds.............. (405,572) (566) (663,375) 493,357 297,301 ----------- ---------- ------------ ------------ ----------- Net Assets Available for Plan Benefits at December 31, 1996 (Note 4)..................... $84,184,959 $6,588,420 $98,069,286 $164,829,198 $16,132,085 =========== ========== ============ ============ ===========
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS YEAR ENDED DECEMBER 31, 1996 Contributions Employers: Pay conversion........... $ 3,858,807 $ 371,706 $4,205,319 $ 6,064,759 $ 1,278,033 Matching................. 2,405,507 265,974 2,782,983 4,059,880 767,562 ----------- ---------- ----------- ------------ ----------- Total employers...... 6,264,314 637,680 6,988,302 10,124,639 2,045,595 Participants............... 128,902 10,562 126,958 270,918 47,812 Rollovers.................. 1,348,362 47,459 711,880 1,223,542 435,881 Loan repayments.............. 1,873,518 241,562 2,718,221 3,608,065 502,533 Interest..................... 165 336,695 66,579 10,385,355 -- Dividends.................... 1,788,852 -- 2,009,763 -- 877,035 Net appreciation/(depreciation) in fair value of assets.... 13,331,382 -- 9,978,691 -- 617,358 Participants' transfer between Funds.............. 1,481,952 (836,239) (9,597,663) (11,753,647) 2,201,398 Distributions to participants............... (5,560,335) (1,235,073) (6,648,379) (13,284,273) (733,404) Forfeitures.................. (46,768) 5,504 42,096 (28,190) (26,874) ----------- ---------- ----------- ------------ ----------- Increase/(Decrease) in Net Assets Available for Plan Benefits during the year....................... 20,610,344 (791,850) 6,396,448 546,409 5,967,334 Net Assets Available for Plan Benefits at December 31, 1995.......... $63,574,615 $7,380,270 $91,672,838 $164,282,789 $10,164,751 ----------- ---------- ----------- ------------ ----------- Net Assets Available for Plan Benefits at December 31, 1996 (Note 4)...... $84,184,959 $6,588,420 $98,069,286 $164,829,198 $16,132,085 =========== ========== =========== ============ ===========
See accompanying notes. 2 3
GROWTH EQUITIES INTERNATIONAL EMERGING MARKETS LONG-TERM VALUE PARTICIPANT TOTAL FUND EQUITY FUND EQUITY FUND BOND FUND EQUITY FUND LOANS ALL FUNDS ------------- ------------- ---------------- ---------- ----------- ------------ ------------ -- -- -- -- -- -- $ 96,024,482 $36,984,067 $11,441,815 $ 14,405,711 -- -- -- 163,246,475 -- -- -- -- $21,621,712 -- 21,621,712 -- -- -- $6,221,912 -- -- 167,321,111 -- -- -- 61,418 -- -- 12,062,973 -- -- -- -- -- -- 10,433 -- -- -- -- -- $ 23,571,806 23,571,806 -- -- -- 245 -- -- 532,497 (23,890) 175,376 (53,448) 42,178 138,639 -- -- ----------- ----------- ----------- ---------- ----------- ------------ ------------ 36,960,177 $ $11,617,191 $ 14,352,263 $6,325,753 $21,760,351 $ 23,571,806 $484,391,489 =========== =========== =========== ========== =========== ============ ============ $ 3,304,920 $ 1,102,522 $ 1,485,960 $ 654,723 $1,783,981 -- $ 24,110,730 1,930,980 647,923 876,039 405,198 1,055,075 -- 15,197,121 ------------- ------------- ---------------- ---------- ----------- ------------ ------------ 5,235,900 1,750,445 2,361,999 1,059,921 2,839,056 -- 39,307,851 137,644 46,960 53,447 26,293 74,560 -- 924,056 1,109,808 317,918 229,509 285,146 396,388 -- 6,105,893 1,241,891 424,871 604,262 259,386 738,204 $(12,212,513) -- 150 -- 7 2,389 490,388 1,746,288 13,028,016 1,288,169 843,510 100,249 355,821 642,263 -- 7,905,662 4,708,327 3,669 1,093,403 43,577 2,571,794 -- 32,348,201 2,568,414 1,421,181 423,086 (588,648) 1,271,410 13,408,756 -- (1,872,833) (645,576) (786,062) (278,961) (1,208,366) (1,760,752) (34,014,014) (25,034) (22,246) (35,550) (18,846) (32,735) -- (188,643) ------------- ------------- ---------------- ---------- ----------- ------------ ------------ 14,392,436 4,140,732 4,044,350 1,146,078 7,782,962 1,181,779 65,417,022 22,567,741 $ $ 7,476,459 $ 10,307,913 $5,179,675 $13,977,389 $ 22,390,027 $418,974,467 ------------- ------------- ---------------- ---------- ----------- ------------ ------------ 36,960,177 $ $11,617,191 $ 14,352,263 $6,325,753 $21,760,351 $ 23,571,806 $484,391,489 ============= =========== ================ ========== =========== =========== ===========
. 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, 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 The 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 =========== ========== ============ ============ ===========
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 ------------- ------------- ---------------- ---------- ----------- ------------ ------------ -- -- -- -- -- -- $ 89,391,679 $22,389,725 $ 7,393,606 $ 10,166,707 -- -- -- 113,879,794 -- -- -- -- $11,066,364 -- 11,066,364 -- -- -- $5,160,791 -- -- 167,350,521 -- -- -- 52,144 2,720,971 -- 14,422,107 -- -- -- -- -- -- 10,514 -- -- -- -- -- $ 22,375,827 22,375,827 -- -- -- 194 33,482 -- 477,661 178,016 82,853 141,206 (33,454) 156,572 14,200 -- ----------- ---------- ----------- ---------- ----------- ----------- ------------ 22,567,741 $ $ 7,476,459 $ 10,307,913 $5,179,675 $13,977,389 $ 22,390,027 $418,974,467 =========== ========== =========== ========== =========== =========== ============
5 6 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 AND 1995 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment valuation The Plan's assets at December 31, 1996 and 1995 are held by The Chase Manhattan Bank, N.A., as successor trustee to 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 investment contracts are fully benefit responsive and are valued at contract value, which approximates fair value. Contract value represents contributions to the fund plus interest accrued less redemptions. The interest rates for the calendar years 1996 and 1995 were 6.6% and 6.8%, 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, 1996 AND 1995 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 $9,500 in 1996 and $9,240 in 1995, 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. Through October 30, 1996, Chubb Equity Managers, Inc., a subsidiary of The Chubb Corporation, was 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 7 8 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1996 AND 1995 2. PLAN DESCRIPTION -- (CONTINUED) 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. 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, 1996 AND 1995 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, 1996 DECEMBER 31, 1995 ------------------------------ ------------------------------ COST FAIR VALUE COST FAIR VALUE ------------- ------------- ------------- ------------- Fixed Income Securities Investments in Insurance and Bank Contracts............... $ 161,099,199 $ 161,099,199 $ 162,189,730 $ 162,189,730 Bond Mutual Fund................ 6,069,848 6,221,912 4,971,306 5,160,791 ------------ ------------ ------------ ------------ Subtotal................ $ 167,169,047 $ 167,321,111 $ 167,161,036 $ 167,350,521 ------------ ------------ ------------ ------------ The Chubb Corporation Common Stock........................... $ 44,962,569 $ 96,024,482 $ 45,457,913 $ 89,391,679 ------------ ------------ ------------ ------------ Investments in Equities........... $ 20,681,783 $ 21,621,712 $ 9,133,873 $ 11,066,364 ------------ ------------ ------------ ------------ Mutual Funds BT Institutional Equity 500 Index Fund................... $ 58,752,264 $ 84,580,098 $ 50,088,492 $ 63,796,051 Fidelity Contrafund Fund........ 31,050,295 36,984,067 19,497,910 22,389,725 Other........................... 38,951,262 41,682,310 25,532,276 27,694,018 ------------ ------------ ------------ ------------ Subtotal................ $ 128,753,821 $ 163,246,475 $ 95,118,678 $ 113,879,794 ------------ ------------ ------------ ------------ Pooled Investments................ $ 12,068,725 $ 12,073,406 $ 14,427,859 $ 14,432,621 ------------ ------------ ------------ ------------ Participant Loans (maturing from January 1997 to December 2006 with interest rates from 4.25% to 11%)......................... $ 23,571,806 $ 23,571,806 $ 22,375,827 $ 22,375,827 ------------ ------------ ------------ ------------ TOTAL................... $ 397,207,751 $ 483,858,992 $ 353,675,186 $ 418,496,806 ============ ============ ============ ============
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, 1996 and 1995 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, 1996 DECEMBER 31, 1995 -------------------------- -------------------------- S&P 500 Index Fund............................................... 283,437.539 $ 296.51 262,671.312 $241.55963 Short-Term Income Fund........................................... 63,823.792 102.78 75,365.722 97.87620 Chubb Corporation Stock Fund..................................... 169,965.367 576.45 180,128.394 508.38552 Fixed Income Fund................................................ 2,943,744.330 55.89 3,128,068.438 52.40959 Balanced Fund.................................................... 1,123,532.807 14.36 791,330.504 12.84390 Growth Equities Fund............................................. 221,570.939 16.71 1,646,639.488 13.70492 International Equity Fund........................................ 943,926.060 12.30 666,918.376 11.21024 Emerging Markets Equity Fund..................................... 1,024,989.426 14.00 819,519.843 12.57704 Long-Term Bond Fund.............................................. 502,219.969 12.59 441,339.041 11.73548 Value Equity Fund................................................ 1,372,171.144 15.85 1,061,166.088 13.17136
9 10 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1996 AND 1995 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 1996 SEPTEMBER 30, 1995 -------------------------- -------------------------- S&P 500 Index Fund............................................... 278,885.769 $ 273.77 259,095.065 $227.73097 Short-Term Income Fund........................................... 66,741.220 101.54 71,208.543 96.60042 Chubb Corporation Stock Fund..................................... 177,931.350 491.65 181,793.302 501.70262 Fixed Income Fund................................................ 2,950,902.900 55.00 3,156,387.532 51.58134 Balanced Fund.................................................... 1,018,605.896 13.74 731,150.835 12.20843 Growth Equities Fund............................................. 2,112,318.948 15.40 1,516,123.820 13.48718 International Equity Fund........................................ 870,694.060 12.00 644,325.990 10.61954 Emerging Markets Equity Fund..................................... 986,305.034 13.38 841,272.991 12.12095 Long-Term Bond Fund.............................................. 467,640.466 12.12 394,487.567 11.27079 Value Equity Fund................................................ 1,299,803.102 14.25 997,236.811 12.89292
JUNE 30, 1996 JUNE 30, 1995 -------------------------- -------------------------- S&P 500 Index Fund............................................... 276,596.175 $ 265.70 253,684.788 $211.05588 Short-Term Income Fund........................................... 67,876.302 100.28 72,283.096 95.33006 Chubb Corporation Stock Fund..................................... 180,690.957 529.50 192,300.166 417.37230 Fixed Income Fund................................................ 2,971,994.281 54.10 3,174,938.446 50.74241 Balanced Fund.................................................... 967,910.730 13.40 657,068.914 11.58362 Growth Equities Fund............................................. 2,070,339.946 14.94 1,309,267.951 12.14212 International Equity Fund........................................ 845,800.479 12.12 639,173.611 9.95816 Emerging Markets Equity Fund..................................... 1,012,634.265 13.29 779,455.628 12.02067 Long-Term Bond Fund.............................................. 438,547.483 11.85 334,541.637 10.93855 Value Equity Fund................................................ 1,257,728.556 14.14 855,518.677 11.89196
MARCH 31, 1996 MARCH 31, 1995 -------------------------- -------------------------- S&P 500 Index Fund............................................... 269,431.175 $ 254.37 245,998.164 $192.56714 Short-Term Income Fund........................................... 69,818.270 99.08 71,061.141 94.01062 Chubb Corporation Stock Fund..................................... 182,067.039 496.38 196,109.638 409.04952 Fixed Income Fund................................................ 3,020,451.124 53.24 3,204,100.071 49.91664 Balanced Fund.................................................... 923,300.124 13.00 568,155.140 10.91883 Growth Equities Fund............................................. 1,835,551.111 14.49 1,201,869.192 10.66753 International Equity Fund........................................ 750,107.566 11.73 640,808.823 9.73194 Emerging Markets Equity Fund..................................... 954,681.949 13.69 723,124.532 10.89647 Long-Term Bond Fund.............................................. 425,322.911 11.71 308,348.089 10.36247 Value Equity Fund................................................ 1,142,002.994 13.55 799,761.575 10.66614
5. FUND BALANCES DUE PARTICIPANTS Amounts allocated to accounts of Participants who have withdrawn from participation in the Plan at December 31, 1996 were as follows: S&P 500 Index Fund............................................................... $138,722 Short-Term Income Fund........................................................... 25,034 Chubb Corporation Stock Fund..................................................... 93,057 Fixed Income Fund................................................................ 260,364 Balanced Fund.................................................................... 133 Growth Equities Fund............................................................. 192 International Equity Fund........................................................ -- Emerging Markets Equity Fund..................................................... -- Long-Term Bond Fund.............................................................. -- Value Equity Fund................................................................ 8 -------- Total.................................................................... $517,510 ========
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 NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1996 AND 1995 6. SUBSEQUENT EVENT The Chubb Corporation entered into a definitive agreement dated February 23, 1997 to sell Chubb Life Insurance Company of America and its subsidiaries to Jefferson-Pilot Corporation. As of the closing date of the sale, May 13, 1997, each participant who is a transferred employee as such term is defined in the Stock Purchase Agreement between Jefferson-Pilot Corporation and The Chubb Corporation has become fully vested, and account balances to date are nonforfeitable. In addition, transferred employees are considered to have terminated employment for purposes of the Plan. 11 12 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES ITEM 27A -- ASSETS HELD FOR INVESTMENT DECEMBER 31, 1996
# OF UNITS CONTRACT OR SECURITY DESCRIPTION OR SHARES COST FAIR VALUE - ------------------------------------------------ ------------- ------------ ------------ Fixed Income Securities CNA Insurance Company......................... 1 $ 6,095,493 $ 6,095,493 Contract #GP13027-016, due on 3/31/99, at 6.69% CNA Insurance Company......................... 1 13,038,084 13,038,084 Contract #GP13027, Division 006, due in equal maturities on 9/30/99 and 12/31/99, at 7.83% Commonwealth Life Insurance Company........... 1 13,054,893 13,054,893 Contract #ADA00674FR, due in equal maturities on 9/30/99 and 12/31/99, at 7.89% Commonwealth Life Insurance Company........... 1 6,477,274 6,477,274 Contract #ADA00766FR, due on 6/30/2000, at 6.33% Hartford Life Insurance Company............... 1 9,553,780 9,553,780 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 13,098,270 13,098,270 Contract #GA9534, due 9/30/97, at 5.77% John Hancock Life Insurance Company........... 1 14,153,419 14,153,419 Contract #7836, due in equal maturities on 3/31/2000 and 9/30/2000, at 7.33% John Hancock Life Insurance Company........... 1 6,097,859 6,097,859 Contract #8642, due on 3/31/2001, at 6.86% J P Morgan Asset Management................... 1 5,588,943 5,588,943 Contract #2033, due on 3/31/97, at 6.59% Provident National Assurance Company.......... 1 9,569,186 9,569,186 Contract #627-05490, due on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.97% Prudential Asset Management................... 1 8,580,794 8,580,794 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 14,158,051 14,158,051 Contract #3-15670, due in equal maturities on 3/31/2000 and 9/30/2000, at 7.35% Principal Mutual Life Insurance Company....... 1 6,483,162 6,483,162 Contract #3-16924, due on 12/31/2000, at 6.41% Prudential Asset Management................... 1 15,355,146 15,355,146 Contract #6529-213, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.37% Pacific Mutual Life Insurance Company......... 1 9,545,125 9,545,125 Contract #G-25863-02, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.90%
12 13 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES -- (CONTINUED) ITEM 27A -- ASSETS HELD FOR INVESTMENT DECEMBER 31, 1996
# OF UNITS CONTRACT OR SECURITY DESCRIPTION OR SHARES COST FAIR VALUE - ------------------------------------------------ ------------- ------------ ------------ Pacific Mutual Life Insurance Company......... 1 7,106,676 7,106,676 Contract #G25863-03, due 6/30/99, at 7.34% Peoples Life Insurance Company................ 1 3,143,043 3,143,043 Contract ADA 00602FR, due on 6/30/2000, at 6.45% MAS Funds Fixed Income Portfolio.............. 529,524.39 6,069,849 6,221,912 ------------ ------------ Subtotal................................... $167,169,047 $167,321,111 ------------ ------------ The Chubb Corporation Common Stock.............. 1,786,502 $ 44,962,569 $ 96,024,482 ------------ ------------ Investments in Equities Strong Schafer Value Fund..................... 423,788.96 $ 20,681,783 $ 21,621,712 ------------ ------------ Subtotal................................... $ 20,681,783 $ 21,621,712 ------------ ------------ Mutual Funds Colonial Tr VII Newport Tiger Fund Class Z.... 1,046,926.73 $ 12,295,931 $ 14,405,711 BT Institutional Equity 500 Index Fund........ 5,070,749.30 58,752,264 84,580,098 Columbia Balance Fund......................... 779,270.90 14,920,558 15,834,784 Fidelity Contrafund Fund...................... 877,439.31 31,050,295 36,984,067 Morgan Stanley Institutional Fund, Inc.-Active Country Allocation Fund.................... 999,285.21 11,734,773 11,441,815 ------------ ------------ Subtotal................................... $128,753,821 $163,246,475 ------------ ------------ Pooled Investments EGSF Venture Capital-Citibank Fund............ 17.56 $ 5,752 $ 10,433 Excelsior Government Money Market Fund........ 6,562,036.00 6,562,036 6,562,036 Vista Premier US Government Money Market Fund....................................... 5,500,937.00 5,500,937 5,500,937 ------------ ------------ Subtotal................................... $ 12,068,725 $ 12,073,406 ------------ ------------ Participant Loans (Maturities January 1997 to December 2006, Rates 4.25% to 11%)............ 23,571,806.00 $ 23,571,806 $ 23,571,806 ------------ ------------ TOTAL.................................... $397,207,751 $483,858,992 =========== ===========
13 14 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES EXHIBIT 27D -- SCHEDULE OF REPORTABLE TRANSACTIONS DECEMBER 31, 1996
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: Strong Schafer Value Fund..... 47 $ 20,855,892 $ 523,625 $ 174,109 $349,516 Vista Premier US Government Money Market Fund.......... 1,076 110,167,564 111,545,021 111,545,021 -- Participant Loans............. 2,575 $ 13,403,499 $ 12,235,397 $ 12,235,397 --
There were no category (i) or (ii) or (iv) reportable transactions during 1996. 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, 1996 and 1995, and the related Statement of Changes in Net Assets Available for Plan Benefits for the year ended December 31, 1996. 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, 1996 and 1995 and the Changes in its Net Assets Available for Plan Benefits for the year ended December 31, 1996, 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, 1996, 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 Statements 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 23, 1997 ------------------------ 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 23, 1997 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, 1996. ERNST & YOUNG LLP New York, New York June 23, 1997 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: DONALD B. LAWSON DONALD B. LAWSON, A MEMBER OF THE PROFIT SHARING COMMITTEE Dated: June 23, 1997 -----END PRIVACY-ENHANCED MESSAGE-----