CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

12 Months Ended

Dec. 31, 2012

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

	2012			2011
				(As Adjusted)
Assets
Invested Assets
Short Term Investments	$	941		$	1,030
Taxable Fixed Maturities (cost $1,273 and $935)		1,309			962
Equity Securities (cost $176 and $200)		215			179
Other Invested Assets		46			27
TOTAL INVESTED ASSETS		2,511			2,198
Investment in Consolidated Subsidiaries		16,900			16,678
Other Assets		190			188
TOTAL ASSETS	$	19,601		$	19,064
Liabilities
Long Term Debt	$	3,575		$	3,575
Dividend Payable to Shareholders		108			107
Accrued Expenses and Other Liabilities		91			81
TOTAL LIABILITIES		3,774			3,763
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		178			190
Retained Earnings		20,009			18,903
Accumulated Other Comprehensive Income		1,431			1,195
Treasury Stock, at Cost — 110,217,445 and 99,519,509 Shares		(6,163	)		(5,359	)
TOTAL SHAREHOLDERS’ EQUITY		15,827			15,301
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	19,601		$	19,064

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

THE CHUBB CORPORATION

Schedule II

(continued)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF INCOME — PARENT COMPANY ONLY

(in millions)

Years Ended December 31

	2012			2011			2010
Revenues
Investment Income	$	38		$	46		$	76
Other Revenues		—			—			2
Realized Investment Gains (Losses), Net		(6	)		9			16
TOTAL REVENUES		32			55			94
Expenses
Corporate Expenses		268			285			288
Investment Expenses		2			3			3
Other Expenses		—			—			3
TOTAL EXPENSES		270			288			294
Loss before Federal and Foreign Income Tax and Equity in Net Income of Consolidated Subsidiaries		(238	)		(233	)		(200	)
Federal and Foreign Income Tax (Credit)		4			1			(3	)
Loss before Equity in Net Income of Consolidated Subsidiaries		(242	)		(234	)		(197	)
Equity in Net Income of Consolidated Subsidiaries		1,787			1,912			2,371
NET INCOME		1,545			1,678			2,174
Other Comprehensive Income, Net of Tax		236			405			70
COMPREHENSIVE INCOME	$	1,781		$	2,083		$	2,244

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.

THE CHUBB CORPORATION

Schedule II

(continued)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF CASH FLOWS — PARENT COMPANY ONLY

(in millions)

Years Ended December 31

 

	2012			2011			2010
Cash Flows from Operating Activities
Net Income	$	1,545		$	1,678		$	2,174
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Equity in Net Income of Consolidated Subsidiaries		(1,787	)		(1,912	)		(2,371	)
Realized Investment Losses (Gains), Net		6			(9	)		(16	)
Other, Net		57			(28	)		(14	)
NET CASH USED IN OPERATING ACTIVITIES		(179	)		(271	)		(227	)
Cash Flows from Investing Activities
Proceeds from Fixed Maturities
Sales		24			2			3
Maturities, Calls and Redemptions		673			456			202
Proceeds from Sales of Equity Securities		—			9			—
Purchases of Fixed Maturities		(1,046	)		(257	)		(73	)
Investments in Other Invested Assets, Net		—			—			33
Decrease (Increase) in Short Term Investments, Net		89			(219	)		199
Dividends Received from Consolidated Insurance Subsidiaries		1,760			2,700			2,200
Distributions Received from Consolidated Non-Insurance Subsidiaries		1			1			4
Other, Net		1			56			60
NET CASH PROVIDED BY INVESTING ACTIVITIES		1,502			2,748			2,628
Cash Flows from Financing Activities
Repayment of Long Term Debt		—			(400	)		—
Proceeds from Issuance of Common Stock Under Stock-Based Employee Compensation Plans		74			80			74
Repurchase of Shares		(959	)		(1,707	)		(2,003	)
Dividends Paid to Shareholders		(438	)		(450	)		(472	)
NET CASH USED IN FINANCING ACTIVITIES		(1,323	)		(2,477	)		(2,401	)
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.