THE CHUBB CORPORATION

Schedule II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS — PARENT COMPANY ONLY

(in millions)

December 31


	2014			2013
Assets
Invested Assets
Short Term Investments	$	574		$	856
Taxable Fixed Maturities (cost $1,213 and $1,095)		1,226			1,110
Equity Securities (cost $— and $—)		—			2

TOTAL INVESTED ASSETS		1,800			1,968
Investment in Consolidated Subsidiaries		17,838			17,455
Other Assets		168			165

TOTAL ASSETS	$	19,806		$	19,588

Liabilities
Long Term Debt	$	3,300		$	3,300
Dividend Payable to Shareholders		117			110
Accrued Expenses and Other Liabilities		93			81

TOTAL LIABILITIES		3,510			3,491

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		171			171
Retained Earnings		23,520			21,902
Accumulated Other Comprehensive Income		1,110			1,035
Treasury Stock, at Cost — 139,551,071 and 123,673,969 Shares		(8,877	)		(7,383	)

TOTAL SHAREHOLDERS’ EQUITY		16,296			16,097

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	19,806		$	19,588

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


	2014			2013			2012
Revenues
Investment Income	$	26		$	29		$	38
Other Revenues		—			6			—
Realized Investment Gains (Losses), Net		4			99			(6	)

TOTAL REVENUES		30			134			32

Expenses
Corporate Expenses		249			262			268
Investment Expenses		3			4			2
Other Expenses		3			8			—

TOTAL EXPENSES		255			274			270

Loss before Federal and Foreign Income Tax and Equity in Net Income of Consolidated Subsidiaries		(225	)		(140	)		(238	)

Federal and Foreign Income Tax		1			—			4


Loss before Equity in Net Income of Consolidated Subsidiaries		(226	)		(140	)		(242	)

Equity in Net Income of Consolidated Subsidiaries		2,326			2,485			1,787

NET INCOME		2,100			2,345			1,545
Other Comprehensive Income (Loss), Net of Tax		75			(396	)		236

COMPREHENSIVE INCOME	$	2,175		$	1,949		$	1,781

Chubb and its U.S. 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


	2014			2013			2012
Cash Flows from Operating Activities
Net Income	$	2,100		$	2,345		$	1,545
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities
Equity in Net Income of Consolidated Subsidiaries		(2,326	)		(2,485	)		(1,787	)
Realized Investment Losses (Gains), Net		(4	)		(99	)		6
Other, Net		9			21			57

NET CASH USED IN OPERATING ACTIVITIES		(221	)		(218	)		(179	)

Cash Flows from Investing Activities
Proceeds from Fixed Maturities
Sales		382			227			24
Maturities, Calls and Redemptions		46			150			673
Proceeds from Sales of Equity Securities		2			296			—
Purchases of Fixed Maturities		(551	)		(198	)		(1,046	)
Investments in Other Invested Assets, Net		—			22			—
Decrease in Short Term Investments, Net		282			85			89
Dividends Received from Consolidated Insurance Subsidiaries		2,021			1,564			1,760
Distributions Received from Consolidated Non-Insurance Subsidiaries		1			1			1
Other, Net		38			46			1

NET CASH PROVIDED BY INVESTING ACTIVITIES		2,221			2,193			1,502

Cash Flows from Financing Activities
Repayment of Long Term Debt		—			(275	)		—
Proceeds from Issuance of Common Stock Under Stock-Based Employee Compensation Plans		22			38			74
Repurchase of Shares		(1,547	)		(1,288	)		(959	)
Dividends Paid to Shareholders		(475	)		(450	)		(438	)

NET CASH USED IN FINANCING ACTIVITIES		(2,000	)		(1,975	)		(1,323	)

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.

In 2013, Chubb exchanged its holdings of common stock and warrants of Alterra Capital Holdings Limited, with a cost basis of $177 million and a carrying value of $63 million, respectively, for common stock of Markel Corporation, valued at $226 million, and cash of $98 million, as a result of a business combination. The noncash portions of the transaction have been excluded from the statement of cash flows.