8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 26, 2004

THE CHUBB CORPORATION

(Exact name of registrant as specified in its charter)

New Jersey	1-8661	13-2595722
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

15 Mountain View Road, P.O. Box 1615, Warren, New Jersey	07061-1615
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (908) 903-2000

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition.
	Item 9.01 Financial Statements and Exhibits.
SIGNATURES
EX-99.1: PRESS RELEASE
EX-99.2: SUPPLEMENTARY INVESTOR INFORMATION REPORT

Item 2.02 Results of Operations and Financial Condition.

The following information, including the text of the exhibits attached hereto, is furnished pursuant to this Item 2.02 of Form 8-K. On October 26, 2004, The Chubb Corporation (Chubb) issued a press release announcing its results for the quarter ended September 30, 2004. On October 26, 2004, Chubb also posted the Supplementary Investor Information Report (SIIR) relating to its third quarter results on its web site at www.chubb.com. Copies of the press release and the SIIR are attached to this Form 8-K as Exhibits 99.1 and 99.2, respectively. In its earnings release, the SIIR and in the conference call to discuss its 2004 third quarter results, scheduled to be webcast at 5:00 P.M. on October 26, 2004, Chubb presents, and will present, its results of operations in the manner that it believes is most meaningful to investors, which includes certain measures that are not based on accounting principles generally accepted in the United States, as more fully described in the press release and SIIR furnished as Exhibits 99.1 and 99.2, respectively, to this Form 8-K and incorporated by reference into this Item 2.02 as if fully set forth herein.

Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits.

99.1	Press release dated October 26, 2004 (furnished pursuant to Item 2.02 of Form 8-K)
99.2	Supplementary Investor Information Report (furnished pursuant to Item 2.02 of Form 8-K)

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	THE CHUBB CORPORATION
Date: October 26, 2004	By:	/s/ Henry B. Schram
		Name:	Henry B. Schram
		Title:	Senior Vice President and Chief Accounting Officer

EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K
DATED OCTOBER 26, 2004

Exhibit No.	Description
99.1	Press release dated October 26, 2004 (furnished pursuant to Item 2.02 of Form 8-K)
99.2	Supplementary Investor Information Report (furnished pursuant to Item 2.02 of Form 8-K)

EX-99.1

News from The Chubb Corporation

The Chubb Corporation
15 Mountain View Road • P.O. Box 1615
Warren, New Jersey 07061-1615
Telephone: 908-903-2000

FOR IMMEDIATE RELEASE

Chubb Reports 3rd Quarter Net Income of $1.88 per Share;
Operating Income per Share Is up 48% to $1.72;
Premiums Grow 6%; Combined Ratio is 93.3%

     WARREN, New Jersey, October 26, 2004 — The Chubb Corporation [NYSE: CB] today reported that net income in the third quarter of 2004 was $364.0 million or $1.88 per share, compared to $259.8 million ($1.37 per share) in the third quarter of 2003.

     Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, increased to $332.3 million from $220.5 million in the third quarter of 2003. Operating income per share increased 48% to $1.72 from $1.16.

     Property and casualty net premiums written in the third quarter of 2004 grew 6% to $3.0 billion. Excluding Chubb Re, premium growth was 8%. U.S. premiums grew 6%. Non-U.S. premiums grew 11%, or 4% in local currencies.

     The combined loss and expense ratio for the third quarter was 93.3% in 2004 and 96.6% in 2003. Including $180 million in hurricane losses, catastrophe losses in the 2004 third quarter were $196.1 million, accounting for 6.7 percentage points of the combined ratio, compared to $96.0 million (3.7 points) in the third quarter of 2003. The expense ratio for the third quarter was 29.4% in 2004 and 30.9% in 2003.

Nine Month Results

     For the first nine months of 2004, net income was $1.08 billion or $5.61 per share, compared with $736.5 million or $4.13 per share for the first nine months of 2003. Operating income totaled a record $981.4 million or $5.10 per share for the first nine months of 2004, compared with $680.8 million or $3.82 per share in the first nine months of 2003. Results for the first nine months include an after-tax loss of $11 million or $0.06 per share from Chubb Financial Solutions, compared with a loss of $20 million or $0.11 per share in the first nine months of 2003.

     Property and casualty net premiums written in the first nine months of 2004 increased 10% to $9.0 billion. Chubb Re accounted for 1 percentage point of this growth. The combined ratio for the first nine months was 92.9% in 2004 and 95.8% in 2003. Catastrophe losses for the first nine months (excluding the $80 million September 11th reserve release in the second quarter of 2004) were $338.5 million (3.9 percentage points of the combined ratio) in 2004, compared to $261.5 million (3.5 points) in 2003. The expense ratio for the first nine months was 29.7% in 2004 and 30.7% in 2003.

Outlook for 2004

     “Chubb had a terrific third quarter despite the severe hurricane season,” said John D. Finnegan, Chairman, President and Chief Executive Officer, “with solid premium growth, excellent underwriting profitability and higher investment income. Going forward, we are continuing to execute our underwriting strategy, control expenses and focus on selectively growing the business in areas that offer the best profit opportunities.

     “Each quarter this year has been outstanding, resulting in record earnings for the first nine months,” said Mr. Finnegan. “Based on these results and our expectations for the fourth quarter, we are confident that we will achieve our full-year earnings guidance of $6.80 to $7.20 per share. Consistent with our previous guidance, this estimate excludes realized investment gains and losses, excludes Chubb Financial Solutions results and assumes 3 percentage points of catastrophe losses for the year.”

Third Quarter Operations Review

     Chubb Personal Insurance (CPI) premiums grew 9% to $754 million. CPI’s combined ratio was 101.2%, compared to 99.9% in the third quarter of 2003. Catastrophe losses in the third quarter accounted for 19.0 percentage points of the combined ratio in 2004 compared to 10.7 percentage points in 2003. Excluding catastrophe losses, CPI’s combined ratio improved 7.0 points to 82.2% from 89.2%.

     The homeowners line grew 10%, and the combined ratio was 109.1%, which included 32.1 percentage points of catastrophe losses. Excluding catastrophe losses, the combined ratio was 77.0%. Personal automobile insurance grew 6% and had a combined ratio of 92.5%, while other personal lines, which include valuable articles, excess liability and yacht insurance, grew 12% and had a combined ratio of 88.0%.

     Chubb Commercial Insurance (CCI) premiums grew 10% to $1.12 billion. The combined ratio improved to 82.3% from 90.6%. Third quarter catastrophe losses accounted for 3.5 percentage points of the combined ratio in 2004, compared to 2.9 points in 2003.

     Average renewal rates in the U.S. increased 2% for CCI, which retained 85% of the U.S. accounts that came up for renewal. In the U.S., premiums from new accounts exceeded lost business by a 1.4-to-1 margin.

     Chubb Specialty Insurance (CSI) premiums grew 2% to $1.15 billion. The combined ratio was 99.2%, compared to 100.6% in the third quarter of 2003.

     Executive Protection (EP) net written premiums grew 6%, and the business had a combined ratio of 100.3%. Average renewal rates in the U.S. for EP were down 2%, and the renewal retention rate was 89%. In the U.S., premiums from new EP accounts exceeded lost business by a 2-to-1 margin. Financial Institutions (FI) net premiums declined 1% in the third quarter, and the combined ratio was 103.9%. Average renewal rates in the U.S. for FI were up 1%, and the renewal retention rate was 90%. In the U.S., premiums from new FI accounts exceeded lost business by a 2.4-to-1 margin. For the other specialty lines, premiums were down 3% primarily because of a decline in Chubb Re premiums. The combined ratio for the other specialty lines was 95.9%.

     Property and casualty investment income after taxes for the third quarter increased 13% to $241.6 million from $213.9 million in 2003. For the first nine months of 2004, property and casualty investment income after taxes increased 12% to $695.8 million from $619.1 million.

Webcast Conference Call to be Held Today at 5 P.M.

     Chubb’s senior management will discuss the company’s third quarter performance with investors and analysts today, October 26, at 5:00 P.M. Eastern Daylight Time. The conference call will be webcast live on the Internet at http://www.chubb.com and archived later in the evening for replay.

About Chubb

     Founded in 1882, the Chubb Group of Insurance Companies provide property and casualty insurance for personal and commercial customers worldwide through 8,000 independent agents and brokers. Chubb’s global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.

     The company’s Supplementary Investor Information Report has been posted on its Internet site at http://www.chubb.com.

     All financial results in this release and attachments are unaudited.

For further information contact:	Investors:	Glenn A. Montgomery (908) 903-2365
	Media:	Mark E. Greenberg (908) 903-2682

Definitions of Key Terms

Operating Income

Operating income, a non-GAAP financial measure, is net income excluding after-tax realized investment gains and losses. Management uses operating income, among other measures, to evaluate its performance because the realization of investment gains and losses in any given period is largely discretionary as to timing and can fluctuate significantly, which could distort the analysis of trends.

Underwriting Income (Loss)

Management evaluates underwriting results separately from investment results. The underwriting operations consist of three separate business units: personal insurance, commercial insurance and specialty insurance. Performance of the business units is based on statutory underwriting results. Statutory accounting principles differ in certain respects from generally accepted accounting principles (GAAP). Under statutory accounting principles, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned. Statutory underwriting income (loss) is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred.

Management uses underwriting results determined in accordance with GAAP, among other measures, to assess the overall performance of the underwriting operations. To convert statutory underwriting results to a GAAP basis, policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned. Underwriting income (loss) determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred.

Property and Casualty Investment Income After Income Tax

Management uses property and casualty investment income after income tax, a non-GAAP financial measure, to evaluate its investment performance because it reflects the impact of any change in the proportion of the investment portfolio invested in tax-exempt securities and is therefore more meaningful for analysis purposes than investment income before income tax.

Book Value per Common Share with Available-for-Sale Fixed Maturities at Amortized Cost

Book value per share represents the portion of consolidated shareholders’ equity attributable to one share of common stock outstanding as of the balance sheet date. Consolidated shareholders’ equity includes, as part of accumulated other comprehensive income, the after-tax appreciation or depreciation on the Corporation’s available-for-sale fixed maturities, which are carried at market value. The appreciation or depreciation on available-for-sale fixed maturities is subject to fluctuation due to changes in interest rates and therefore could distort the analysis of trends. Management believes that book value per common share with available-for-sale fixed maturities at amortized cost, a non-GAAP financial measure, is an important measure of the underlying equity attributable to one share of common stock.

Combined Ratio or Combined Loss and Expense Ratio

The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability. Management uses the combined loss and expense ratio calculated in accordance with statutory accounting principles applicable to property and casualty insurance companies to evaluate the performance of the underwriting operations. It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the ratio of statutory underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by dividends to policyholders.

FORWARD-LOOKING INFORMATION

     Certain statements in this document, and certain oral statements made by management from time to time, are “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements are made pursuant to the safe harbor provisions of the PSLRA and include estimates and assumptions related to economic, competitive, regulatory, judicial, legislative and other developments. These include statements relating to trends in, or representing management’s beliefs about, our future strategies, operations and financial results, as well as other statements that include words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “should,” “will,” or other similar expressions. Forward-looking statements are made based upon management’s current expectations and beliefs concerning trends and future developments and their potential effects on us. These statements are not guarantees of future performance. Actual results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, which include, among others, those discussed or identified from time to time in our public filings with the Securities and Exchange Commission and those associated with:

• the availability of primary and reinsurance coverage, including the implications relating to terrorism legislation and regulation;

• global political conditions and the occurrence of terrorist attacks, including any nuclear, biological, chemical or radiological events;

• the effects of the outbreak or escalation of war or hostilities;

• premium price increases and profitability or growth estimates overall or by lines of business or geographic area, and related expectations with respect to the timing and terms of any required regulatory approvals;

• adverse changes in loss cost trends;

• our ability to retain existing business;

• material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements;

• our expectations with respect to cash flow projections and investment income and with respect to other income;

• the adequacy of loss reserves, including:

• our expectations relating to reinsurance recoverables;

• the effects of proposed asbestos liability legislation, including the impact of claims patterns arising from the possibility of legislation and those that may arise if legislation is not passed;

• our estimates relating to ultimate asbestos liabilities;

• the impact from the bankruptcy protection sought by various asbestos producers and other related businesses;

• the willingness of parties, including us, to settle disputes;

• developments in judicial decisions or regulatory or legislative actions relating to coverage and liability for asbestos, toxic waste and mold claims;

• development of new theories of liability;

• the impact of economic factors on companies on whose behalf we have issued surety bonds, and in particular, on those companies that have filed for bankruptcy or otherwise experienced deterioration in creditworthiness;

• the effects of disclosures by, and investigations of, public companies relating to possible accounting irregularities, practices in the financial services industry and other corporate governance issues, including:

• the effects on the capital markets and the markets for directors and officers and errors and omissions insurance;

• claims and litigation arising out of actual or alleged accounting or other corporate malfeasance by other companies;

• claims and litigation arising out of practices in the financial services industry;

• legislative or regulatory proposals or changes, including the changes in law and regulation implemented under the Sarbanes-Oxley Act of 2002;

• the effects of investigations into market practices in the U.S. property and casualty insurance industry;

• the occurrence of significant weather-related or other natural or human-made disasters, particularly in locations where we have concentrations of risk;

• any downgrade in our claims-paying, financial strength or other credit ratings;

• the ability of our subsidiaries to pay us dividends;

• general economic conditions including:

• changes in interest rates, market credit spreads and the performance of the financial markets, generally and as they relate to credit risks assumed by our Chubb Financial Solutions unit in particular;

• the effects of inflation;

• changes in domestic and foreign laws, regulations and taxes;

• changes in competition and pricing environments;

• regional or general changes in asset valuations;

• the inability to reinsure certain risks economically;

• changes in the litigation environment;

• general market conditions; and

• our ability to implement management’s strategic plans and initiatives.

     The Corporation assumes no obligation to update any forward-looking information set forth in this document, which speak as of the date hereof.

THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA

(Unaudited)

	Periods Ended September 30
	Third Quarter						Nine Months
	2004			2003			2004			2003
	(in millions)
PROPERTY AND CASUALTY INSURANCE
Underwriting
Net Premiums Written	$	3,025.7		$	2,845.5		$	8,972.7		$	8,137.5
Increase in Unearned Premiums		(70.7	)		(237.3	)		(362.1	)		(670.9	)
Premiums Earned		2,955.0			2,608.2			8,610.6			7,466.6
Losses and Loss Expenses		1,881.8			1,711.3			5,428.3			4,850.0
Operating Costs and Expenses		888.1			876.7			2,658.7			2,490.3
Increase in Deferred Policy Acquisition Costs		(15.6	)		(56.4	)		(65.0	)		(133.7	)
Dividends to Policyholders		7.3			6.0			21.8			18.0
Underwriting Income		193.4			70.6			566.8			242.0
Investments
Investment Income Before Expenses		304.2			274.1			885.0			794.2
Investment Expenses		5.1			4.5			17.2			17.5
Investment Income		299.1			269.6			867.8			776.7
Other Charges		(1.2	)		(.9	)		(3.7	)		(22.6	)
Property and Casualty Income		491.3			339.3			1,430.9			996.1
CHUBB FINANCIAL SOLUTIONS NON-INSURANCE BUSINESS		.2			(38.8	)		(17.0	)		(30.6	)
CORPORATE AND OTHER		(60.3	)		(23.3	)		(125.0	)		(102.4	)
CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX		431.2			277.2			1,288.9			863.1
Federal and Foreign Income Tax		98.9			56.7			307.5			182.3
CONSOLIDATED OPERATING INCOME		332.3			220.5			981.4			680.8
REALIZED INVESTMENT GAINS AFTER INCOME TAX		31.7			39.3			99.4			55.7
CONSOLIDATED NET INCOME	$	364.0		$	259.8		$	1,080.8		$	736.5
PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX	$	241.6		$	213.9		$	695.8		$	619.1

	Periods Ended September 30
	Third Quarter						Nine Months
	2004			2003			2004			2003
OUTSTANDING SHARE DATA
(in millions)
Average Common and Potentially Dilutive Shares		193.3			189.4			192.5			178.4
Actual Common Shares at End of Period		191.6			187.7			191.6			187.7
DILUTED EARNINGS PER SHARE DATA
Operating Income	$	1.72		$	1.16		$	5.10		$	3.82
Realized Investment Gains		.16			.21			.51			.31
Net Income	$	1.88		$	1.37		$	5.61		$	4.13
Effect of Catastrophe Losses
September 11 Attack	$	—		$	—		$	.27		$	—
All Other		(.66	)		(.33	)		(1.14	)		(.95	)
Total	$	(.66	)	$	(.33	)	$	(.87	)	$	(.95	)
Effect of Chubb Financial Solutions Non-Insurance Business	$	—		$	(.14	)	$	(.06	)	$	(.11	)

	Sept. 30		Dec. 31
	2004		2003
BOOK VALUE PER COMMON SHARE	$	50.01	$	45.33
BOOK VALUE PER COMMON SHARE,
with Available-for-Sale Fixed Maturities at Amortized Cost		47.24		42.21

PROPERTY AND CASUALTY UNDERWRITING RATIOS
PERIODS ENDED SEPTEMBER 30

	Third Quarter						Nine Months
	2004			2003			2004			2003
Losses and Loss Expenses to Premiums Earned		63.9	%		65.7	%		63.2	%		65.1	%
Expenses to Premiums Written		29.4			30.9			29.7			30.7
Combined Loss and Expense Ratio		93.3	%		96.6	%		92.9	%		95.8	%
Effect of Catastrophe Losses (Other Than Those From the September 11 Attack) on Combined Loss and Expense Ratio		6.7	%		3.7	%		3.9	%		3.5	%

PROPERTY AND CASUALTY LOSSES AND LOSS EXPENSES COMPONENTS
PERIODS ENDED SEPTEMBER 30

	Third Quarter				Nine Months
	2004		2003		2004		2003
			(in millions)
Paid Losses and Loss Expenses	$	1,175.6	$	1,337.4	$	3,783.5	$	3,708.9
Increase in Unpaid Losses and Loss Expenses		706.2		373.9		1,644.8		1,141.1
Total Losses and Loss Expenses	$	1,881.8	$	1,711.3	$	5,428.3	$	4,850.0

PROPERTY AND CASUALTY PRODUCT MIX

		Net Premiums				Combined Loss and
		Written				Expense Ratios
		2004		2003		2004			2003
	(in millions)
NINE MONTHS ENDED SEPTEMBER 30
Personal Insurance
Automobile		$	474.1	$	443.6		94.2	%		98.9	%
Homeowners			1,217.6		1,114.2		103.4			106.6
Other			425.7		391.4		82.4			77.8
Total Personal			2,117.4		1,949.2		97.1			98.9
Commercial Insurance
Multiple Peril			879.4		809.4		76.7			90.3
Casualty			1,170.0		1,010.0		87.2			88.7
Workers’ Compensation			573.2		475.9		91.8			92.2
Property and Marine			816.8		766.1		72.5			89.3
Total Commercial			3,439.4		3,061.4		81.4			89.6
Specialty Insurance
Executive Protection			1,610.3		1,526.0		101.2			104.0
Financial Institutions			639.7		603.4		125.0			111.5
Other			1,165.9		997.5		89.3			84.4
Total Specialty			3,415.9		3,126.9		101.5			99.8
Total		$	8,972.7	$	8,137.5		92.9	%		95.8	%
QUARTER ENDED SEPTEMBER 30
Personal Insurance
Automobile		$	163.7	$	154.3		92.5	%		96.4	%
Homeowners			443.2		402.9		109.1			108.7
Other			147.3		132.1		88.0			78.7
Total Personal			754.2		689.3		101.2			99.9
Commercial Insurance
Multiple Peril			287.8		276.6		77.1			92.7
Casualty			386.6		331.4		89.1			90.8
Workers’ Compensation			184.3		158.4		90.1			94.1
Property and Marine			258.5		253.6		73.3			86.4
Total Commercial			1,117.2		1,020.0		82.3			90.6
Specialty Insurance
Executive Protection			558.6		525.0		100.3			104.2
Financial Institutions			181.6		182.8		103.9			111.4
Other			414.1		428.4		95.9			87.8
Total Specialty			1,154.3		1,136.2		99.2			100.6
Total		$	3,025.7	$	2,845.5		93.3	%		96.6	%

EX-99.2

Exhibit 99.2

The
Chubb
Corporation Supplementary
Investor
Information September 30, 2004

This report is for informational purposes only. It should be read in conjunction with documents filed by The Chubb Corporation with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

THE CHUBB CORPORATION
SUPPLEMENTARY INVESTOR INFORMATION
TABLE OF CONTENTS
SEPTEMBER 30, 2004

	Page
The Chubb Corporation:
Consolidated Balance Sheet Highlights	1
Summary of Invested Assets:
Corporate	2
Property and Casualty	2
Investment Income After Taxes:
Corporate	3
Property and Casualty	3
Property and Casualty Insurance Group:
Statutory Policyholders’ Surplus	3
Change in Net Unpaid Losses	4
Underwriting Results — Year-to-Date	5-8
Underwriting Results — Quarterly	9-12
Definitions of Key Terms	13

THE CHUBB CORPORATION
 
CONSOLIDATED BALANCE SHEET HIGHLIGHTS

	Sept. 30			Dec. 31
	2004			2003
	(in millions)
Invested Assets (at carrying value)
Short Term Investments	$	1,697.0		$	2,695.9
Fixed Maturities
Tax Exempt		13,771.9			11,621.0
Taxable		12,805.5			10,790.7
Equity Securities		1,784.7			1,514.4
Total Invested Assets	$	30,059.1		$	26,622.0
Unrealized Appreciation of Fixed Maturities Carried at Amortized Cost	$	24.0		$	35.2
Capitalization
Long Term Debt	$	2,811.8		$	2,813.9
Shareholders’ Equity		9,581.5			8,522.0
Total Capitalization	$	12,393.3		$	11,335.9
DEBT AS A PERCENTAGE OF TOTAL CAPITALIZATION		22.7	%		24.8	%
Actual Common Shares Outstanding		191.6			188.0
Book Value Per Common Share	$	50.01		$	45.33
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	47.24		$	42.21

Page 1 of 13

THE CHUBB CORPORATION
 
SUMMARY OF INVESTED ASSETS
 
CORPORATE

	Cost or Amortized Cost				Market Value				Carrying Value
	Sept. 30		Dec. 31		Sept. 30		Dec. 31		Sept. 30		Dec. 31
	2004		2003		2004		2003		2004		2003
					(in millions)
Short Term Investments	$	292.3	$	714.3	$	292.3	$	714.3	$	292.3	$	714.3
Taxable Fixed Maturities		1,035.8		433.1		1,047.6		436.4		1,047.6		436.4
Equity Securities		4.7		8.4		7.1		9.5		7.1		9.5
TOTAL	$	1,332.8	$	1,155.8	$	1,347.0	$	1,160.2	$	1,347.0	$	1,160.2

PROPERTY AND CASUALTY

	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	Sept. 30		Dec. 31		Sept. 30		Dec. 31		Sept. 30		Dec. 31
	2004		2003		2004		2003		2004		2003
					(in millions)
Short Term Investments	$	1,404.7	$	1,981.6	$	1,404.7	$	1,981.6	$	1,404.7	$	1,981.6
Fixed Maturities
Tax Exempt		13,189.7		10,976.7		13,795.9		11,656.2		13,771.9		11,621.0
Taxable		11,535.8		10,098.7		11,757.9		10,354.3		11,757.9		10,354.3
Common Stocks		1,633.8		1,333.3		1,734.6		1,458.2		1,734.6		1,458.2
Preferred Stocks		36.9		39.7		43.0		46.7		43.0		46.7
TOTAL	$	27,800.9	$	24,430.0	$	28,736.1	$	25,497.0	$	28,712.1	$	25,461.8

Page 2 of 13

THE CHUBB CORPORATION
 
INVESTMENT INCOME AFTER TAXES

	PERIODS ENDED SEPTEMBER 30
	THIRD QUARTER						NINE MONTHS
	2004			2003			2004			2003
				(in millions)
CORPORATE INVESTMENT INCOME	$	8.1		$	8.7		$	22.8		$	12.2
PROPERTY AND CASUALTY INVESTMENT INCOME
(Amounts are shown net of applicable income taxes)
Dividends	$	10.7		$	9.0		$	26.2		$	19.9
Taxable Interest		92.1			86.2			272.7			253.1
Tax Exempt Interest		142.2			121.5			408.1			357.4
Investment Expenses		(3.4	)		(2.8	)		(11.2	)		(11.3	)
TOTAL	$	241.6		$	213.9		$	695.8		$	619.1
Effective Tax Rate		19.2	%		20.7	%		19.8	%		20.3	%
After Tax Annualized Yield		3.56	%		3.71	%		3.54	%		3.83	%

After tax annualized yield is based on the average invested assets for the periods presented with fixed maturities at amortized cost and equity securities at market value.

PROPERTY AND CASUALTY STATUTORY POLICYHOLDERS’ SURPLUS

	Sept. 30		Sept. 30		Dec. 31
	2004		2003		2003
			(in millions)
Estimated Statutory Policyholders’ Surplus	$	7,350	$	6,200	$	6,368
Rolling Year Statutory Net Premiums Written		11,905		10,538		11,071
Ratio of Statutory Net Premiums Written to Estimated Policyholders’ Surplus		1.62:1		1.70:1		1.74:1

Statutory Policyholders’ Surplus and Net Premiums Written include all domestic and foreign property and casualty subsidiaries.

Page 3 of 13

THE CHUBB CORPORATION
 
PROPERTY AND CASUALTY
 
CHANGE IN NET UNPAID LOSSES
NINE MONTHS ENDED SEPTEMBER 30, 2004

	Net Unpaid Losses								All Other Unpaid Losses
							IBNR		Increase
	9/30/04		12/31/03		Increase		Increase		(Decrease)
					(in millions)
PERSONAL INSURANCE
Automobile	$	376.4	$	342.6	$	33.8	$	8.6	$	25.2
Homeowners		707.1		564.2		142.9		101.6		41.3
Other		365.2		312.0		53.2		30.5		22.7
Total Personal		1,448.7		1,218.8		229.9		140.7		89.2
COMMERCIAL INSURANCE
Multiple Peril		1,269.1		1,248.2		20.9		114.3		(93.4	)
Casualty		4,006.8		3,922.6		84.2		72.0		12.2
Workers’ Compensation		1,044.9		890.9		154.0		107.8		46.2
Property and Marine		484.2		483.1		1.1		19.7		(18.6	)
Total Commercial		6,805.0		6,544.8		260.2		313.8		(53.6	)
SPECIALTY INSURANCE
Executive Protection		4,463.2		3,995.0		468.2		385.9		82.3
Financial Institutions		2,079.6		1,720.4		359.2		162.6		196.6
Other		1,369.5		1,042.2		327.3		173.0		154.3
Total Specialty		7,912.3		6,757.6		1,154.7		721.5		433.2
TOTAL	$	16,166.0	$	14,521.2	$	1,644.8	$	1,176.0	$	468.8

Page 4 of 13

THE CHUBB CORPORATION — WORLDWIDE
 
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(MILLIONS OF DOLLARS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2004			2003			2004			2003			2004			2003			2004			2003
Net Premiums Written	$	474.1		$	443.6		$	1,217.6		$	1,114.2		$	425.7		$	391.4		$	2,117.4		$	1,949.2
Increase (Decrease) in Unearned Premiums		20.9			28.4			62.9			93.6			25.6			23.2			109.4			145.2
Net Premiums Earned		453.2			415.2			1,154.7			1,020.6			400.1			368.2			2,008.0			1,804.0
Net Losses Paid		270.0			261.7			671.3			653.5			154.6			145.5			1,095.9			1,060.7
Increase (Decrease) in Outstanding Losses		33.8			26.6			142.9			81.4			53.2			23.2			229.9			131.2
Net Losses Incurred		303.8			288.3			814.2			734.9			207.8			168.7			1,325.8			1,191.9
Expenses Incurred		128.6			130.5			400.7			385.2			129.5			125.0			658.8			640.7
Dividends Incurred		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Statutory Underwriting Income (Loss)	$	20.8		$	(3.6	)	$	(60.2	)	$	(99.5	)	$	62.8		$	74.5		$	23.4		$	(28.6	)
Ratios After Dividends to Policyholders:
Loss		67.1	%		69.5	%		70.5	%		72.0	%		52.0	%		45.8	%		66.0	%		66.1	%
Expense		27.1			29.4			32.9			34.6			30.4			32.0			31.1			32.8
Combined		94.2	%		98.9	%		103.4	%		106.6	%		82.4	%		77.8	%		97.1	%		98.9	%
Premiums Written as a % of Total		5.3	%		5.5	%		13.6	%		13.7	%		4.7	%		4.8	%		23.6	%		24.0	%

Page 5 of 13

THE CHUBB CORPORATION — WORLDWIDE
 
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(MILLIONS OF DOLLARS)

	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2004			2003			2004			2003			2004			2003			2004			2003			2004			2003
Net Premiums Written	$	879.4		$	809.4		$	1,170.0		$	1,010.0		$	573.2		$	475.9		$	816.8		$	766.1		$	3,439.4		$	3,061.4
Increase (Decrease) in Unearned Premiums		31.9			53.3			81.3			109.1			54.2			74.1			11.2			38.7			178.6			275.2
Net Premiums Earned		847.5			756.1			1,088.7			900.9			519.0			401.8			805.6			727.4			3,260.8			2,786.2
Net Losses Paid		338.4			401.6			568.7			414.8			193.6			178.1			300.5			331.6			1,401.2			1,326.1
Increase (Decrease) in Outstanding Losses		20.9			5.4			84.2			123.4			154.0			88.8			1.1			68.9			260.2			286.5
Net Losses Incurred		359.3			407.0			652.9			538.2			347.6			266.9			301.6			400.5			1,661.4			1,612.6
Expenses Incurred		301.8			295.5			318.5			292.3			128.9			112.4			286.0			262.2			1,035.2			962.4
Dividends Incurred		0.0			0.0			0.0			0.0			13.4			9.7			0.0			0.0			13.4			9.7
Statutory Underwriting Income (Loss)	$	186.4		$	53.6		$	117.3		$	70.4		$	29.1		$	12.8		$	218.0		$	64.7		$	550.8		$	201.5
Ratios After Dividends to Policyholders:
Loss		42.4	%		53.8	%		60.0	%		59.8	%		68.8	%		68.1	%		37.5	%		55.1	%		51.2	%		58.1	%
Expense		34.3			36.5			27.2			28.9			23.0			24.1			35.0			34.2			30.2			31.5
Combined		76.7	%		90.3	%		87.2	%		88.7	%		91.8	%		92.2	%		72.5	%		89.3	%		81.4	%		89.6	%
Premiums Written as a % of Total		9.8	%		9.9	%		13.0	%		12.4	%		6.4	%		5.9	%		9.1	%		9.4	%		38.3	%		37.6	%

Page 6 of 13

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(MILLIONS OF DOLLARS)

	Executive						Financial						Other						Total						Worldwide
	Protection						Institutions						Specialty						Specialty						Total
	2004			2003			2004			2003			2004			2003			2004			2003			2004			2003
Net Premiums Written	$	1,610.3		$	1,526.0		$	639.7		$	603.4		$	1,165.9		$	997.5		$	3,415.9		$	3,126.9		$	8,972.7		$	8,137.5
Increase (Decrease) in Unearned Premiums		16.8			89.4			23.0			25.5			34.3			135.6			74.1			250.5			362.1			670.9
Net Premiums Earned		1,593.5			1,436.6			616.7			577.9			1,131.6			861.9			3,341.8			2,876.4			8,610.6			7,466.6
Net Losses Paid		748.5			658.8			244.6			397.6			293.3			265.7			1,286.4			1,322.1			3,783.5			3,708.9
Increase (Decrease) in Outstanding Losses		468.2			475.7			359.2			83.8			327.3			163.9			1,154.7			723.4			1,644.8			1,141.1
Net Losses Incurred		1,216.7			1,134.5			603.8			481.4			620.6			429.6			2,441.1			2,045.5			5,428.3			4,850.0
Expenses Incurred		399.3			381.3			166.0			163.7			399.4			342.2			964.7			887.2			2,658.7			2,490.3
Dividends Incurred		0.0			0.0			5.9			5.6			2.5			2.7			8.4			8.3			21.8			18.0
Statutory Underwriting Income (Loss)	$	(22.5	)	$	(79.2	)	$	(159.0	)	$	(72.8	)	$	109.1		$	87.4		$	(72.4	)	$	(64.6	)		501.8			108.3
Increase in Deferred
Acquisition Costs																										65.0			133.7
GAAP Underwriting Income																									$	566.8		$	242.0
Ratios After Dividends
to Policyholders:
Loss		76.4	%		79.0	%		98.8	%		84.1	%		55.0	%		50.0	%		73.2	%		71.3	%		63.2	%		65.1	%
Expense		24.8			25.0			26.2			27.4			34.3			34.4			28.3			28.5			29.7			30.7
Combined		101.2	%		104.0	%		125.0	%		111.5	%		89.3	%		84.4	%		101.5	%		99.8	%		92.9	%		95.8	%
Premiums Written
as a % of Total		17.9	%		18.7	%		7.1	%		7.4	%		13.1	%		12.3	%		38.1	%		38.4	%		100.0	%		100.0	%

Page 7 of 13

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(MILLIONS OF DOLLARS)

	United States						Foreign						Worldwide Total
	2004			2003			2004			2003			2004			2003
Net Premiums Written	$	7,376.2		$	6,735.2		$	1,596.5		$	1,402.3		$	8,972.7		$	8,137.5
Increase (Decrease) in Unearned Premiums		320.9			603.6			41.2			67.3			362.1			670.9
Net Premiums Earned		7,055.3			6,131.6			1,555.3			1,335.0			8,610.6			7,466.6
Net Losses Paid		3,254.6			3,350.1			528.9			358.8			3,783.5			3,708.9
Increase (Decrease) in Outstanding Losses		1,262.5			748.6			382.3			392.5			1,644.8			1,141.1
Net Losses Incurred		4,517.1			4,098.7			911.2			751.3			5,428.3			4,850.0
Expenses Incurred		2,116.0			1,995.0			542.7			495.3			2,658.7			2,490.3
Dividends Incurred		21.8			18.0			0.0			0.0			21.8			18.0
Statutory Underwriting Income (Loss)	$	400.4		$	19.9		$	101.4		$	88.4			501.8			108.3
Increase in Deferred Acquisition Costs														65.0			133.7
GAAP Underwriting Income													$	566.8		$	242.0
Ratios After Dividends to Policyholders:
Loss		64.2	%		67.0	%		58.6	%		56.3	%		63.2	%		65.1	%
Expense		28.8			29.7			34.0			35.3			29.7			30.7
Combined		93.0	%		96.7	%		92.6	%		91.6	%		92.9	%		95.8	%
Premiums Written as a % of Total		82.2	%		82.8	%		17.8	%		17.2	%		100.0	%		100.0	%

Page 8 of 13

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(MILLIONS OF DOLLARS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2004			2003			2004			2003			2004			2003			2004			2003
Net Premiums Written	$	163.7		$	154.3		$	443.2		$	402.9		$	147.3		$	132.1		$	754.2		$	689.3
Increase (Decrease) in Unearned Premiums		10.1			10.7			53.8			50.8			10.3			7.7			74.2			69.2
Net Premiums Earned		153.6			143.6			389.4			352.1			137.0			124.4			680.0			620.1
Net Losses Paid		89.8			88.7			223.3			219.1			59.8			56.3			372.9			364.1
Increase (Decrease) in Outstanding Losses		11.5			8.9			76.7			49.2			19.9			0.4			108.1			58.5
Net Losses Incurred		101.3			97.6			300.0			268.3			79.7			56.7			481.0			422.6
Expenses Incurred		43.4			43.8			142.1			131.1			43.9			43.8			229.4			218.7
Dividends Incurred		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Statutory Underwriting Income (Loss)	$	8.9		$	2.2		$	(52.7	)	$	(47.3	)	$	13.4		$	23.9		$	(30.4	)	$	(21.2	)
Ratios After Dividends
to Policyholders:
Loss		66.0	%		68.0	%		77.0	%		76.2	%		58.2	%		45.6	%		70.8	%		68.2	%
Expense		26.5			28.4			32.1			32.5			29.8			33.1			30.4			31.7
Combined		92.5	%		96.4	%		109.1	%		108.7	%		88.0	%		78.7	%		101.2	%		99.9	%
Premiums Written
as a % of Total		5.4	%		5.4	%		14.6	%		14.2	%		4.9	%		4.6	%		24.9	%		24.2	%

Page 9 of 13

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(MILLIONS OF DOLLARS)

	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2004			2003			2004			2003			2004			2003			2004			2003			2004			2003
Net Premiums Written	$	287.8		$	276.6		$	386.6		$	331.4		$	184.3		$	158.4		$	258.5		$	253.6		$	1,117.2		$	1,020.0
Increase (Decrease) in Unearned Premiums		2.0			4.4			5.2			10.1			0.9			13.0			(12.8	)		7.1			(4.7	)		34.6
Net Premiums Earned		285.8			272.2			381.4			321.3			183.4			145.4			271.3			246.5			1,121.9			985.4
Net Losses Paid		96.7			152.8			136.1			142.7			62.1			58.5			91.3			117.0			386.2			471.0
Increase (Decrease) in Outstanding Losses		24.0			2.2			105.3			54.6			57.1			42.8			13.9			11.1			200.3			110.7
Net Losses Incurred		120.7			155.0			241.4			197.3			119.2			101.3			105.2			128.1			586.5			581.7
Expenses Incurred		100.2			99.0			99.8			97.4			42.2			35.6			89.1			87.2			331.3			319.2
Dividends Incurred		0.0			(0.1	)		0.0			0.0			4.5			3.0			0.0			0.0			4.5			2.9
Statutory Underwriting Income (Loss)	$	64.9		$	18.3		$	40.2		$	26.6		$	17.5		$	5.5		$	77.0		$	31.2		$	199.6		$	81.6
Ratios After Dividends
to Policyholders:
Loss		42.3	%		56.9	%		63.3	%		61.4	%		66.6	%		71.2	%		38.8	%		52.0	%		52.5	%		59.2	%
Expense		34.8			35.8			25.8			29.4			23.5			22.9			34.5			34.4			29.8			31.4
Combined		77.1	%		92.7	%		89.1	%		90.8	%		90.1	%		94.1	%		73.3	%		86.4	%		82.3	%		90.6	%
Premiums Written
as a % of Total		9.5	%		9.7	%		12.8	%		11.6	%		6.1	%		5.6	%		8.5	%		8.9	%		36.9	%		35.8	%

Page 10 of 13

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(MILLIONS OF DOLLARS)

	Executive						Financial						Other						Total						Worldwide
	Protection						Institutions						Specialty						Specialty						Total
	2004			2003			2004			2003			2004			2003			2004			2003			2004			2003
Net Premiums Written	$	558.6		$	525.0		$	181.6		$	182.8		$	414.1		$	428.4		$	1,154.3		$	1,136.2		$	3,025.7		$	2,845.5
Increase (Decrease) in Unearned Premiums		15.8			35.8			(13.7	)		(6.1	)		(0.9	)		103.8			1.2			133.5			70.7			237.3
Net Premiums Earned		542.8			489.2			195.3			188.9			415.0			324.6			1,153.1			1,002.7			2,955.0			2,608.2
Net Losses Paid		217.8			309.0			86.0			141.7			112.7			51.6			416.5			502.3			1,175.6			1,337.4
Increase (Decrease) in Outstanding Losses		201.8			75.7			56.9			10.6			139.1			118.4			397.8			204.7			706.2			373.9
Net Losses Incurred		419.6			384.7			142.9			152.3			251.8			170.0			814.3			707.0			1,881.8			1,711.3
Expenses Incurred		128.3			134.2			54.4			54.4			144.7			150.2			327.4			338.8			888.1			876.7
Dividends Incurred		0.0			0.0			1.4			1.7			1.4			1.4			2.8			3.1			7.3			6.0
Statutory Underwriting Income (Loss)	$	(5.1	)	$	(29.7	)	$	(3.4	)	$	(19.5	)	$	17.1		$	3.0		$	8.6		$	(46.2	)		177.8			14.2
Increase in Deferred Acquisition Costs																										15.6			56.4
GAAP Underwriting Income																									$	193.4		$	70.6
Ratios After Dividends
to Policyholders:
Loss		77.3	%		78.6	%		73.7	%		81.4	%		60.9	%		52.6	%		70.8	%		70.7	%		63.9	%		65.7	%
Expense		23.0			25.6			30.2			30.0			35.0			35.2			28.4			29.9			29.4			30.9
Combined		100.3	%		104.2	%		103.9	%		111.4	%		95.9	%		87.8	%		99.2	%		100.6	%		93.3	%		96.6	%
Premiums Written
as a % of Total		18.5	%		18.5	%		6.0	%		6.4	%		13.7	%		15.1	%		38.2	%		40.0	%		100.0	%		100.0	%

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THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(MILLIONS OF DOLLARS)

	United States						Foreign						Worldwide Total
	2004			2003			2004			2003			2004			2003
Net Premiums Written	$	2,550.0		$	2,415.4		$	475.7		$	430.1		$	3,025.7		$	2,845.5
Increase (Decrease) in Unearned Premiums		132.9			279.7			(62.2	)		(42.4	)		70.7			237.3
Net Premiums Earned		2,417.1			2,135.7			537.9			472.5			2,955.0			2,608.2
Net Losses Paid		1,006.8			1,141.7			168.8			195.7			1,175.6			1,337.4
Increase (Decrease) in Outstanding Losses		552.2			322.7			154.0			51.2			706.2			373.9
Net Losses Incurred		1,559.0			1,464.4			322.8			246.9			1,881.8			1,711.3
Expenses Incurred		726.8			719.2			161.3			157.5			888.1			876.7
Dividends Incurred		7.3			6.0			0.0			0.0			7.3			6.0
Statutory Underwriting Income (Loss)	$	124.0		$	(53.9	)	$	53.8		$	68.1			177.8			14.2
Increase in Deferred Acquisition Costs														15.6			56.4
GAAP Underwriting Income													$	193.4		$	70.6
Ratios After Dividends
to Policyholders:
Loss		64.7	%		68.8	%		60.0	%		52.3	%		63.9	%		65.7	%
Expense		28.6			29.8			33.9			36.6			29.4			30.9
Combined		93.3	%		98.6	%		93.9	%		88.9	%		93.3	%		96.6	%
Premiums Written
as a % of Total		84.3	%		84.9	%		15.7	%		15.1	%		100.0	%		100.0	%

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THE CHUBB CORPORATION

Definitions of Key Terms

Underwriting Income (Loss)

Management evaluates underwriting results separately from investment results. The underwriting operations consist of three separate business units: personal insurance, commercial insurance and specialty insurance. Performance of the business units is based on statutory underwriting results. Statutory accounting principles differ in certain respects from generally accepted accounting principles (GAAP). Under statutory accounting principles, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned. Statutory underwriting income (loss) is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred.

Management uses underwriting results determined in accordance with GAAP, among other measures, to assess the overall performance of the underwriting operations. To convert statutory underwriting results to a GAAP basis, policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned. Underwriting income (loss) determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred.

Property and Casualty Investment Income After Income Tax

Management uses property and casualty investment income after income tax, a non-GAAP financial measure, to evaluate its investment performance because it reflects the impact of any change in the proportion of the investment portfolio invested in tax-exempt securities and is therefore more meaningful for analysis purposes than investment income before income taxes.

Book Value per Common Share with Available-for-Sale Fixed Maturities at Amortized Cost

Book value per share represents the portion of consolidated shareholders’ equity attributable to one share of common stock outstanding as of the balance sheet date. Consolidated shareholders’ equity includes, as part of accumulated other comprehensive income, the after-tax appreciation or depreciation on the Corporation’s available-for-sale fixed maturities, which are carried at market value. The appreciation or depreciation on available-for-sale fixed maturities is subject to fluctuation due to changes in interest rates and therefore could distort the analysis of trends. Management believes that book value per common share with available-for-sale fixed maturities at amortized cost, a non-GAAP financial measure, is an important measure of the underlying equity attributable to one share of common stock.

Combined Ratio or Combined Loss and Expense Ratio

The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability. Management uses the combined loss and expense ratio calculated in accordance with statutory accounting principles applicable to property and casualty insurance companies to evaluate the performance of the underwriting operations. It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the ratio of statutory underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by dividends to policyholders.

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