8-K

-----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, MQtM7mh4/kzV0zb7WnedJg7zoVfFww8iVTm3zZrDsuLEbURxgA7A38eewfQ9Ow5T 1DF91nKJXhJoLSimU4iiBQ== 0000950123-06-013032.txt : 20061026 0000950123-06-013032.hdr.sgml : 20061026 20061026161258 ACCESSION NUMBER: 0000950123-06-013032 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20061026 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061026 DATE AS OF CHANGE: 20061026 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08661 FILM NUMBER: 061166061 BUSINESS ADDRESS: STREET 1: 15 MOUNTAIN VIEW RD P O BOX 1615 CITY: WARREN STATE: NJ ZIP: 07061 BUSINESS PHONE: 9089032000 8-K 1 y26216e8vk.htm FORM 8-K 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, 2006

THE CHUBB CORPORATION

(Exact name of registrant as specified in its charter)


New Jersey	1-8661	13-2595722

(State or other jurisdiction of	(Commission	(IRS Employer
incorporation)	File Number)	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
EXHIBIT INDEX
EX-99.1: PRESS RELEASE
EX-99.2: SUPPLEMENTARY INVESTOR INFORMATION

TABLE OF CONTENTS

Item 2.02 Results of Operations and Financial Condition
Item 9.01 Financial Statements and Exhibits
Signatures
Exhibit Index to Current Report on Form 8-K dated October 26, 2006
Press release dated October 26, 2006 (furnished pursuant to Item 2.02 of Form 8-K)
Supplementary Investor Information Report (furnished pursuant to Item 2.02 of Form 8-K)

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, 2006, The Chubb Corporation (Chubb) issued a press release announcing its financial results for the quarter ended September 30, 2006. On October 26, 2006, Chubb also posted on its web site at www.chubb.com the Supplementary Investor Information Report (SIIR) relating to its 2006 third quarter results. 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 press release, the SIIR and the conference call to discuss its 2006 third quarter results, scheduled to be webcast at 5:00 P.M. on October 26, 2006, 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 the 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.

	99.1		Press release dated October 26, 2006 (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, 2006	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, 2006


Exhibit No.		Description

99.1		Press release dated October 26, 2006 (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 2 y26216exv99w1.htm EX-99.1: PRESS RELEASE EX-99.1

Exhibit 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 Third Quarter Net Income per Share of $1.43;
Operating Income per Share Increases to $1.37;
Combined Ratio Improves to 85.5%;
2006 Operating Income per Share Guidance Is Raised to Range of $5.40 to $5.50

WARREN, New Jersey, October 26, 2006 — The Chubb Corporation [NYSE: CB] today reported that net income in the third quarter of 2006 was $604 million, or $1.43 per share, compared to $246 million, or $0.60 per share, in the third quarter of 2005.

Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, increased to $579 million, or $1.37 per share, from $183 million, or $0.45 per share, in the third quarter of 2005.

Last year, Chubb’s results for the third quarter were adversely affected by pre-tax costs of $511 million, or $0.81 per share after-tax, related to Hurricane Katrina. This amount included estimated net losses of $415 million, net reinsurance reinstatement premium costs of $51 million and a $45 million charge representing Chubb’s share of the Katrina losses estimated by Allied World Assurance Company, Ltd.

The third quarter combined loss and expense ratio improved to 85.5% in 2006 from 102.2% in 2005. The impact of catastrophes in the third quarter accounted for 1.5 percentage points of the combined ratio in 2006 and 17.0 points in 2005. Excluding the impact of catastrophes, the third quarter combined ratio improved to 84.0% in 2006 from 85.2% in 2005. The expense ratio for the third quarter was 28.6% in 2006 and 27.8% in 2005.

In the third quarter of 2006, net written premiums for the insurance business increased 5% to $2.9 billion. Excluding the impact of net reinsurance reinstatement premium costs related to Katrina, net written premiums for the insurance business increased 2%.

Net written premiums for the reinsurance assumed business declined 66% in the third quarter. Excluding reinstatement premium revenues related to Katrina, net written premiums for the reinsurance business declined 57%, reflecting the impact of the Chubb Re-Harbor Point transaction completed in December 2005.

Total net written premiums for the insurance and reinsurance businesses declined 1% to $3.0 billion in the third quarter. Excluding the impact of Katrina-related reinstatement premiums, total net written premiums declined 2%.

Property and casualty investment income after taxes for the third quarter increased 10% to $295 million in 2006 from $267 million in 2005.

During the third quarter of 2006, Chubb repurchased 12.8 million shares of its common stock at a total cost of $636 million.

“Chubb’s third quarter results were driven by outstanding profit contributions from all three of our insurance business units, including continued improvement in the Professional Liability segment of Chubb Specialty Insurance,” said John D. Finnegan, Chairman, President and Chief Executive Officer.

“Based on our favorable outlook for the fourth quarter and the benign hurricane season so far, we are updating our 2006 calendar year operating income per share guidance from the $4.90 to $5.10 range we provided in July to a new range of $5.40 to $5.50,” said Mr. Finnegan. “This revised guidance assumes two percentage points of catastrophe losses in the fourth quarter, which would result in 1.6 percentage points of catastrophe losses for the full year, compared to the catastrophe assumption of 4 percentage points for 2006 included in our July guidance.”

Nine Month Results

For the first nine months of 2006, net income was $1.9 billion, or $4.43 per share, compared with $1.2 billion, or $3.00 per share, for the first nine months of 2005. Operating income for the first nine months of 2006 totaled $1.8 billion, or a record $4.14 per share, compared with $1.1 billion, or $2.69 per share, for the first nine months of 2005.

The combined ratio for the first nine months improved to 84.5% in 2006 from 93.3% in 2005. The impact of catastrophes in the first nine months accounted for 1.4 percentage points of the combined ratio in 2006 and 6.1 points in 2005. Excluding the impact of catastrophes, the nine-month combined ratio improved to 83.1% in 2006 from 87.2% in 2005. The expense ratio for the first nine months was 28.7% in 2006 and 28.2% in 2005.

For the first nine months of 2006, net written premiums for the insurance business grew 2% to $8.7 billion. Net written premiums for the reinsurance assumed business declined 54%. Total net written premiums declined 2% to $9.0 billion. Excluding the impact of net reinsurance reinstatement premiums related to Katrina, net written premiums increased 1% for the insurance business, declined 51% for the reinsurance assumed business and declined 3% in total.

Property and casualty investment income after taxes increased 11% to $862 million in the first nine months of 2006 from $780 million in the corresponding period a year earlier.

During the first nine months of 2006, Chubb repurchased 23.8 million shares of its common stock at a total cost of $1.2 billion.

Third Quarter Operations Review

Chubb Personal Insurance (CPI) net written premiums grew 6% in the third quarter of 2006 to $913 million. Excluding the impact of reinsurance reinstatement premium costs related to Katrina, premiums grew 4%. CPI’s combined ratio was 84.1%, compared to 94.3% in the third quarter of 2005. The impact of catastrophes in the third quarter accounted for 4.1 percentage points of the combined ratio in 2006, compared with 15.4 points in 2005. Excluding the impact of catastrophes in both years, the third quarter combined ratio was 80.0% in 2006 and 78.9% in 2005.

The Homeowners line grew 8% (5% excluding the impact of Katrina-related reinsurance reinstatement premiums), and the combined ratio was 76.6%. The Personal Automobile line grew 3% and had a combined ratio of 93.1%, while Other Personal Lines grew 2% and had a combined ratio of 102.8%.

Chubb Commercial Insurance (CCI) net written premiums for the third quarter of 2006 increased 10% to $1.2 billion. Excluding the impact of reinsurance reinstatement premium costs related to Katrina, premiums grew 3%. CCI’s combined ratio was 85.4%, including 0.7 percentage points of catastrophe losses. In the third quarter of 2005, CCI’s combined ratio was 112.8%, including 29.7 percentage points from the impact of catastrophes. Excluding the impact of catastrophes, CCI’s third quarter combined ratio was 84.7% in 2006 and 83.1% in 2005.

Average renewal rates in the U.S. were down 1% for CCI, which retained 84% of the U.S. premiums that came up for renewal. The ratio of new to lost business was 1 to 1 in the U.S.

Chubb Specialty Insurance (CSI) net written premiums for the third quarter of 2006 declined 3% to $748 million. The combined ratio was 86.4%, compared to 93.8% in the third quarter of 2005.

Professional Liability (PL) net written premiums were down 4%, mostly as a result of the company’s exit from the hospital medical malpractice and managed care errors & omissions businesses. PL had a combined ratio of 91.0%. In the U.S., average renewal rates for PL were down 1%, renewal retention was 88% and the ratio of new to lost business was 1.5 to 1.

Surety net written premiums in the third quarter were up 5%. Surety’s combined ratio was 39.5%.

Webcast Conference Call to be Held Today at 5:00 P.M.

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

All financial results in this release and attachments are unaudited.

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 in North America, Europe, Latin America, Asia and Australia.


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 four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. Performance of the business units is measured based on statutory underwriting results. Statutory accounting principles applicable to property and casualty insurance companies 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 common 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 Loss and Expense Ratio or Combined 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 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 statements regarding estimates of losses related to Hurricane Katrina and management’s 2006 operating income per share guidance and related assumptions. 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:

•		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 pricing 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;

•		the ability to retain existing business;

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

	-		developments in judicial decisions or regulatory or legislative actions relating to coverage and liability, in particular, for asbestos, toxic waste and other mass tort claims;

	-		development of new theories of liability;

	-		our estimates relating to ultimate asbestos liabilities;

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

	-		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;

•		the availability and cost of reinsurance coverage;

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

•		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:

	-		claims and litigation arising out of stock option “backdating,” “spring loading” and other option grant practices by public companies;

	-		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;

•		the effects of investigations into market practices, in particular contingent commissions and loss mitigation and finite reinsurance arrangements, in the property and casualty insurance industry together with any legal or regulatory proceedings, related settlements and industry reform or other changes with respect to contingent commissions or otherwise arising therefrom;

•		the impact of legislative and regulatory developments on our business, including those relating to terrorism and large-scale catastrophes;

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

•		the ability of our subsidiaries to pay us dividends;

•		general economic and market conditions including:

	-		changes in interest rates, market credit spreads and the performance of the financial markets;

	-		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; 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
	2006			2005			2006			2005
	(in millions)
PROPERTY AND CASUALTY INSURANCE
Underwriting
Net Premiums Written	$	2,994		$	3,017		$	9,000		$	9,186
Decrease (Increase) in Unearned Premiums		(20	)		26			(37	)		(89	)

Premiums Earned		2,974			3,043			8,963			9,097

Losses and Loss Expenses		1,687			2,260			4,984			5,914
Operating Costs and Expenses		854			836			2,580			2,584
Increase in Deferred Policy Acquisition Costs		(11	)		(1	)		(40	)		(10	)
Dividends to Policyholders		8			7			23			19


Underwriting Income (Loss)		436			(59	)		1,416			590


Investments
Investment Income Before Expenses		375			340			1,100			993
Investment Expenses		5			6			24			21


Investment Income		370			334			1,076			972


Other Income (Charges)		—			(1	)		6			(3	)


Property and Casualty Income		806			274			2,498			1,559

CORPORATE AND OTHER		(13	)		(69	)		(67	)		(156	)


CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX		793			205			2,431			1,403

Federal and Foreign Income Tax		214			22			678			318


CONSOLIDATED OPERATING INCOME		579			183			1,753			1,085

REALIZED INVESTMENT GAINS AFTER INCOME TAX		25			63			121			126


CONSOLIDATED NET INCOME	$	604		$	246		$	1,874		$	1,211


PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX	$	295		$	267		$	862		$	780


	Periods Ended September 30
	Third Quarter						Nine Months
	2006			2005			2006			2005
OUTSTANDING SHARE DATA
(in millions)
Average Common and Potentially Dilutive Shares		421.4			410.7			423.2			404.0
Actual Common Shares at End of Period		411.6			399.8			411.6			399.8

DILUTED EARNINGS PER SHARE DATA
Operating Income	$	1.37		$	.45		$	4.14		$	2.69
Realized Investment Gains		.06			.15			.29			.31

Net Income	$	1.43		$	.60		$	4.43		$	3.00


Effect of Catastrophes (excluding investment in Allied World Assurance Company, Ltd.)
Hurricane Katrina	$	.01		$	(.74	)	$	.05		$	(.75	)
All Other		(.08	)		(.09	)		(.24	)		(.16	)

Total	$	(.07	)	$	(.83	)	$	(.19	)	$	(.91	)


	Sept. 30		Dec. 31		Sept. 30
	2006		2005		2005
BOOK VALUE PER COMMON SHARE	$	32.95	$	29.67	$	28.29

BOOK VALUE PER COMMON SHARE, with Available-for-Sale Fixed Maturities at Amortized Cost		32.53		29.12		27.52

Share and per share amounts have been retroactively adjusted to reflect the two- for-one stock split effective March 31, 2006.

PROPERTY AND CASUALTY UNDERWRITING RATIOS
PERIODS ENDED SEPTEMBER 30


	Third Quarter						Nine Months
	2006			2005			2006			2005
Losses and Loss Expenses to Premiums Earned		56.9	%		74.4	%		55.8	%		65.1	%
Underwriting Expenses to Premiums Written		28.6			27.8			28.7			28.2


Combined Loss and Expense Ratio		85.5	%		102.2	%		84.5	%		93.3	%


Effect of Catastrophes on Combined Loss and Expense Ratio
Hurricane Katrina		(.2	)%		15.1	%		(.3	)%		5.0	%
All Other		1.7			1.9			1.7			1.1


Total		1.5	%		17.0	%		1.4	%		6.1	%

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


	Third Quarter				Nine Months
	2006		2005		2006		2005
	(in millions)
Paid Losses and Loss Expenses	$	1,363	$	1,286	$	3,939	$	4,154
Increase in Unpaid Losses and Loss Expenses		324		974		1,045		1,760


Total Losses and Loss Expenses	$	1,687	$	2,260	$	4,984	$	5,914

The increase in unpaid losses and loss expenses for both the third quarter and the first nine months of 2005 includes $413 million related to Hurricane Katrina.

PROPERTY AND CASUALTY PRODUCT MIX

NINE MONTHS ENDED SEPTEMBER 30


	Net Premiums Written
					% Increase (Decrease)
								Excluding
								Hurricane
								Katrina			Combined Loss and
								Reinstatement			Expense Ratios
	2006		2005		Total			Premiums			2006			2005
	(in millions)
Personal Insurance
Automobile	$	511	$	486		5	%		5	%		89.6	%		97.7	%
Homeowners		1,706		1,584		8			6			74.3			81.5
Other		422		417		1			1			95.3			91.9

Total Personal		2,639		2,487		6			5			80.8			86.5


Commercial Insurance
Multiple Peril		968		935		4			2			77.5			89.4
Casualty		1,303		1,321		(1	)		(1	)		94.7			97.1
Workers’ Compensation		694		726		(4	)		(4	)		81.3			84.6
Property and Marine		898		778		15			4			73.6			104.2

Total Commercial		3,863		3,760		3			—			83.2			94.2


Specialty Insurance
Professional Liability		1,942		2,035		(5	)		(5	)		92.8			100.7
Surety		225		178		26			26			45.1			_73.0

Total Specialty		2,167		2,213		(2	)		(2	)		88.7			_98.9


Total Insurance		8,669		8,460		2			1			84.0			93.2

Reinsurance Assumed		331		726		(54	)		(51	)		98.5			94.8


Total	$	9,000	$	9,186		(2	)		(3	)		84.5	%		93.3	%

For the nine months ended September 30, 2006, property and marine net premiums written benefited from a $20 million reduction in reinsurance reinstatement premium costs related to Hurricane Katrina.

For the nine months ended September 30, 2005, net premiums written for the insurance business reflected reinsurance reinstatement premium costs of $102 million ($18 million homeowners, $14 million commercial multiple peril and $70 million property and marine) related to Hurricane Katrina. For the same period, reinsurance assumed net premiums written included net reinstatement premium revenue of $51 million related to Hurricane Katrina.

PROPERTY AND CASUALTY PRODUCT MIX

QUARTERS ENDED SEPTEMBER 30


	Net Premiums Written
					% Increase (Decrease)
								Excluding
								Hurricane
								Katrina			Combined Loss and
								Reinstatement			Expense Ratios
	2006		2005		Total			Premiums			2006			2005
	(in millions)
Personal Insurance
Automobile	$	174	$	169		3	%		3	%		93.1	%		102.4	%
Homeowners		609		564		8			5			76.6			90.6
Other		130		127		2			2			102.8			97.9

Total Personal		913		860		6			4			84.1			94.3


Commercial Insurance
Multiple Peril		323		294		10			5			81.9			103.3
Casualty		408		411		(1	)		(1	)		97.3			96.7
Workers’ Compensation		222		230		(3	)		(3	)		81.2			84.1
Property and Marine		291		192		52			11			74.3			192.0

Total Commercial		1,244		1,127		10			3			85.4			112.8


Specialty Insurance
Professional Liability		671		698		(4	)		(4	)		91.0			99.1
Surety		77		73		5			5			39.5			30.1

Total Specialty		748		771		(3	)		(3	)		86.4			93.8


Total Insurance		2,905		2,758		5			2			85.3			102.1

Reinsurance Assumed		89		259		(66	)		(57	)		94.3			103.3


Total	$	2,994	$	3,017		(1	)		(2	)		85.5	%		102.2	%

For the quarter ended September 30, 2005, net premiums written for the insurance business reflected reinsurance reinstatement premium costs of $102 million ($18 million homeowners, $14 million commercial multiple peril and $70 million property and marine) related to Hurricane Katrina. For the same period, reinsurance assumed net premiums written included net reinstatement premium revenue of $51 million related to Hurricane Katrina.

EX-99.2 3 y26216exv99w2.htm EX-99.2: SUPPLEMENTARY INVESTOR INFORMATION EX-99.2

Exhibit 99.2


The	Supplementary	September 30, 2006
Chubb	Investor
Corporation	Information

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, 2006


		Page
The Chubb Corporation:
Consolidated Balance Sheet Highlights		1
Share Repurchase Activity		2

Summary of Invested Assets:
Corporate		3
Property and Casualty		3

Investment Income After Taxes:
Corporate		4
Property and Casualty		4

Property and Casualty Insurance Group:
Statutory Policyholders’ Surplus		4
Change in Net Unpaid Losses		5
Underwriting Results - Year-To-Date		6-10
Underwriting Results - Quarterly		11-15

Definitions of Key Terms		16

THE CHUBB CORPORATION
September 30, 2006

Share and per share amounts have been retroactively adjusted to reflect the two-for-one stock split effective March 31, 2006.

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS


	Sept. 30			Dec. 31
	2006			2005
	(in millions)
Invested Assets (at carrying value)
Short Term Investments	$	1,337		$	1,899
Fixed Maturities
Tax Exempt		17,219			15,955
Taxable		15,000			14,568
Equity Securities		3,194			2,212

Total Invested Assets	$	36,750		$	34,634


Unrealized Appreciation of Fixed Maturities Carried at Amortized Cost	$	8		$	11


Capitalization
Long Term Debt	$	2,463		$	2,467
Shareholders’ Equity		13,562			12,407

Total Capitalization	$	16,025		$	14,874


DEBT AS A PERCENTAGE OF TOTAL CAPITALIZATION		15.4	%		16.6	%

Actual Common Shares Outstanding		411.6			418.1

Book Value Per Common Share	$	32.95		$	29.67

Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	32.53		$	29.12

Page 1 of 16

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

Periods Ended September 30

Third

Nine

From

Quarter

Months

December 2005

2006

to September 30, 2006

(dollars in millions, except per share amounts)

Cost of Shares Repurchased

$ 636

$1,175

$1,310

Average Cost Per Share

$49.56

$49.32

$49.22

Shares Repurchased

12,822,370

23,820,732

26,608,532

In December 2005, the Board of Directors authorized the repurchase of up to 28,000,000 shares of the Corporation’s common stock. The authorization has no expiration date. As of September 30, 2006, 1,391,468 shares remained under the share repurchase authorization.

Page 2 of 16

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

CORPORATE


	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	Sept. 30		Dec. 31		Sept. 30		Dec. 31		Sept. 30		Dec. 31
	2006		2005		2006		2005		2006		2005
	(in millions)
Short Term Investments	$	615	$	929	$	615	$	929	$	615	$	929
Taxable Fixed Maturities		1,323		1,355		1,301		1,338		1,301		1,338
Equity Securities		289		5		386		8		386		8

TOTAL	$	2,227	$	2,289	$	2,302	$	2,275	$	2,302	$	2,275

PROPERTY AND CASUALTY


	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	Sept. 30		Dec. 31		Sept. 30		Dec. 31		Sept. 30		Dec. 31
	2006		2005		2006		2005		2006		2005
	(in millions)
Short Term Investments	$	722	$	970	$	722	$	970	$	722	$	970
Fixed Maturities
Tax Exempt		16,891		15,654		17,227		15,966		17,219		15,955
Taxable		13,737		13,160		13,699		13,230		13,699		13,230
Common Stocks		2,560		2,031		2,769		2,149		2,769		2,149
Preferred Stocks		37		52		39		55		39		55

TOTAL	$	33,947	$	31,867	$	34,456	$	32,370	$	34,448	$	32,359

Page 3 of 16

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES


	PERIODS ENDED SEPTEMBER 30
	THIRD QUARTER						NINE MONTHS
	2006			2005			2006			2005
	(in millions)
CORPORATE INVESTMENT INCOME	$	15		$	10		$	46		$	29


PROPERTY AND CASUALTY INVESTMENT INCOME
Dividends	$	12		$	9		$	34		$	30
Taxable Interest		115			108			340			306
Tax Exempt Interest		171			154			504			457
Investment Expenses		(3	)		(4	)		(16	)		(13	)

TOTAL	$	295		$	267		$	862		$	780


Effective Tax Rate		20.3	%		19.9	%		19.9	%		19.7	%

After Tax Annualized Yield		3.49	%		3.45	%		3.48	%		3.44	%

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.

STATUTORY POLICYHOLDERS’ SURPLUS


	Sept. 30		Dec. 31		Sept. 30
	2006		2005		2005
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	10,450	$	8,910	$	8,650
Rolling Year Statutory Net Premiums Written		12,078		12,244		12,202
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		1.16:1		1.37:1		1.41:1

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

Page 4 of 16

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES
NINE MONTHS ENDED SEPTEMBER 30, 2006


	Net Unpaid Losses										All Other
								IBNR			Unpaid Losses
					Increase			Increase			Increase
	9/30/06		12/31/05		(Decrease)			(Decrease)			(Decrease)
	(in millions)
Personal Insurance
Automobile	$	431	$	418	$	13		$	5		$	8
Homeowners		648		697		(49	)		(19	)		(30	)
Other		622		580		42			43			(1	)

Total Personal		1,701		1,695		6			29			(23	)


Commercial Insurance
Multiple Peril		1,649		1,596		53			23			30
Casualty		5,173		4,837		336			280			56
Workers’ Compensation		1,696		1,551		145			112			33
Property and Marine		692		755		(63	)		(15	)		(48	)

Total Commercial		9,210		8,739		471			400			71


Specialty Insurance
Professional Liability		7,343		6,777		566			447			119
Surety		66		46		20			3			17

Total Specialty		7,409		6,823		586			450			136


Total Insurance		18,320		17,257		1,063			879			184

Reinsurance Assumed		1,438		1,456		(18	)		(82	)		64


Total	$	19,758	$	18,713	$	1,045		$	797		$	248

Page 5 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2006			2005			2006			2005			2006			2005			2006			2005
Net Premiums Written	$	511		$	486		$	1,706		$	1,584		$	422		$	417		$	2,639		$	2,487
Increase (Decrease) in Unearned Premiums		13			13			89			80			5			3			107			96

Net Premiums Earned		498			473			1,617			1,504			417			414			2,532			2,391

Net Losses Paid		294			290			745			693			227			211			1,266			1,194
Increase (Decrease) in Outstanding Losses		13			48			(49	)		67			42			46			6			161

Net Losses Incurred		307			338			696			760			269			257			1,272			1,355

Expenses Incurred		143			127			533			490			130			125			806			742
Dividends Incurred		—			—			—			—			—			—			—			—

Statutory Underwriting Income (Loss)	$	48		$	8		$	388		$	254		$	18		$	32		$	454		$	294

Ratios After Dividends to Policyholders:
Loss		61.6	%		71.4	%		43.1	%		50.5	%		64.5	%		62.0	%		50.2	%		56.6	%
Expense		28.0			26.3			31.2			31.0			30.8			29.9			30.6			29.9

Combined		89.6	%		97.7	%		74.3	%		81.5	%		95.3	%		91.9	%		80.8	%		86.5	%

Premiums Written as a % of Total		5.7	%		5.3	%		19.0	%		17.2	%		4.7	%		4.5	%		29.4	%		27.0	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	511		$	486		$	1,706		$	1,602		$	422		$	417		$	2,639		$	2,505

Net Premiums Earned	$	498		$	473		$	1,617		$	1,522		$	417		$	414		$	2,532		$	2,409

Net Losses Incurred	$	305		$	333		$	590		$	632		$	271		$	258		$	1,166		$	1,223

Statutory Underwriting Income (Loss)	$	50		$	13		$	494		$	400		$	16		$	31		$	560		$	444

Combined Ratio		89.2	%		96.6	%		67.7	%		72.1	%		95.8	%		92.3	%		76.6	%		80.4	%

Page 6 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


													Commercial						Commercial
	Commercial						Commercial						Workers'						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2006			2005			2006			2005			2006			2005			2006			2005			2006			2005
Net Premiums Written	$	968		$	935		$	1,303		$	1,321		$	694		$	726		$	898		$	778		$	3,863		$	3,760
Increase (Decrease) in Unearned Premiums		(1	)		(39	)		1			24			15			35			43			13			58			33

Net Premiums Earned		969			974			1,302			1,297			679			691			855			765			3,805			3,727

Net Losses Paid		376			415			550			551			247			248			420			356			1,593			1,570
Increase (Decrease) in Outstanding Losses		53			130			336			374			145			178			(63	)		171			471			853

Net Losses Incurred		429			545			886			925			392			426			357			527			2,064			2,423

Expenses Incurred		322			313			347			340			147			152			286			275			1,102			1,080
Dividends Incurred		—			—			—			—			20			17			—			—			20			17

Statutory Underwriting Income (Loss)	$	218		$	116		$	69		$	32		$	120		$	96		$	212		$	(37	)	$	619		$	207

Ratios After Dividends to Policyholders:
Loss		44.3	%		56.0	%		68.1	%		71.4	%		59.5	%		63.1	%		41.8	%		68.8	%		54.5	%		65.3	%
Expense		33.2			33.4			26.6			25.7			21.8			21.5			31.8			35.4			28.7			28.9

Combined		77.5	%		89.4	%		94.7	%		97.1	%		81.3	%		84.6	%		73.6	%		104.2	%		83.2	%		94.2	%

Premiums Written as a % of Total		10.7	%		10.2	%		14.5	%		14.4	%		7.7	%		7.9	%		10.0	%		8.5	%		42.9	%		41.0	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	968		$	949		$	1,303		$	1,321		$	694		$	726		$	878		$	848		$	3,843		$	3,844

Net Premiums Earned	$	969		$	988		$	1,302		$	1,297		$	679		$	691		$	835		$	835		$	3,785		$	3,811

Net Losses Incurred	$	392		$	469		$	885		$	923		$	389		$	426		$	359		$	306		$	2,025		$	2,124

Statutory Underwriting Income (Loss)	$	255		$	206		$	70		$	34		$	123		$	96		$	190		$	254		$	638		$	590

Combined Ratio		73.7	%		80.4	%		94.6	%		96.9	%		80.8	%		84.7	%		75.6	%		69.0	%		82.6	%		84.2	%

Page 7 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


	Professional												Total
	Liability						Surety						Specialty
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	1,942		$	2,035		$	225		$	178		$	2,167		$	2,213
Increase (Decrease) in Unearned Premiums		(83	)		(19	)		23			26			(60	)		7

Net Premiums Earned		2,025			2,054			202			152			2,227			2,206

Net Losses Paid		837			1,103			7			62			844			1,165
Increase (Decrease) in Outstanding Losses		566			501			20			(4	)		586			497

Net Losses Incurred		1,403			1,604			27			58			1,430			1,662

Expenses Incurred		457			460			70			60			527			520
Dividends Incurred		—			—			3			2			3			2

Statutory Underwriting Income (Loss)	$	165		$	(10	)	$	102		$	32		$	267		$	22

Ratios After Dividends to Policyholders:
Loss		69.3	%		78.1	%		13.6	%		38.8	%		64.3	%		75.4	%
Expense		23.5			22.6			31.5			34.2			24.4			23.5

Combined		92.8	%		100.7	%		45.1	%		73.0	%		88.7	%		98.9	%

Premiums Written as a % of Total		21.5	%		22.2	%		2.5	%		1.9	%		24.0	%		24.1	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	1,942		$	2,035		$	225		$	178		$	2,167		$	2,213

Net Premiums Earned	$	2,025		$	2,054		$	202		$	152		$	2,227		$	2,206

Net Losses Incurred	$	1,403		$	1,603		$	27		$	58		$	1,430		$	1,661

Statutory Underwriting Income (Loss)	$	165		$	(9	)	$	102		$	32		$	267		$	23

Combined Ratio		92.8	%		100.6	%		45.1	%		73.0	%		88.7	%		98.9	%

Page 8 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	8,669		$	8,460		$	331		$	726		$	9,000		$	9,186
Increase (Decrease) in Unearned Premiums		105			136			(68	)		(47	)		37			89

Net Premiums Earned		8,564			8,324			399			773			8,963			9,097

Net Losses Paid		3,703			3,929			236			225			3,939			4,154
Increase (Decrease) in Outstanding Losses		1,063			1,511			(18	)		249			1,045			1,760

Net Losses Incurred		4,766			5,440			218			474			4,984			5,914

Expenses Incurred		2,435			2,342			145			242			2,580			2,584
Dividends Incurred		23			19			—			—			23			19

Statutory Underwriting Income (Loss)	$	1,340		$	523		$	36		$	57			1,376			580

Increase in Deferred Acquisition Costs														40			10

GAAP Underwriting Income													$	1,416		$	590

Ratios After Dividends to Policyholders:
Loss		55.8	%		65.5	%		54.7	%		61.4	%		55.8	%		65.1	%
Expense		28.2			27.7			43.8			33.4			28.7			28.2

Combined		84.0	%		93.2	%		98.5	%		94.8	%		84.5	%		93.3	%

Premiums Written as a % of Total		96.3	%		92.1	%		3.7	%		7.9	%		100.0	%		100.0	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	8,649		$	8,562		$	331		$	675		$	8,980		$	9,237

Net Premiums Earned	$	8,544		$	8,426		$	399		$	722		$	8,943		$	9,148

Net Losses Incurred	$	4,621		$	5,008		$	218		$	393		$	4,839		$	5,401

Statutory Underwriting Income (Loss)	$	1,465		$	1,057		$	36		$	87		$	1,501		$	1,144

Combined Ratio		82.5	%		87.0	%		98.5	%		90.4	%		83.1	%		87.2	%

Page 9 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


													Worldwide
	United States						Foreign						Total
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	7,203		$	7,457		$	1,797		$	1,729		$	9,000		$	9,186
Increase (Decrease) in Unearned Premiums		16			67			21			22			37			89

Net Premiums Earned		7,187			7,390			1,776			1,707			8,963			9,097

Net Losses Paid		3,397			3,449			542			705			3,939			4,154
Increase (Decrease) in Outstanding Losses		651			1,487			394			273			1,045			1,760

Net Losses Incurred		4,048			4,936			936			978			4,984			5,914

Expenses Incurred		1,983			2,016			597			568			2,580			2,584
Dividends Incurred		23			19			—			—			23			19

Statutory Underwriting Income (Loss)	$	1,133		$	419		$	243		$	161			1,376			580

Increase in Deferred Acquisition Costs														40			10

GAAP Underwriting Income													$	1,416		$	590

Ratios After Dividends to Policyholders:
Loss		56.5	%		67.0	%		52.7	%		57.3	%		55.8	%		65.1	%
Expense		27.6			27.1			33.2			32.8			28.7			28.2

Combined		84.1	%		94.1	%		85.9	%		90.1	%		84.5	%		93.3	%

Premiums Written as a % of Total		80.0	%		81.2	%		20.0	%		18.8	%		100.0	%		100.0	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	7,183		$	7,508		$	1,797		$	1,729		$	8,980		$	9,237

Net Premiums Earned	$	7,167		$	7,441		$	1,776		$	1,707		$	8,943		$	9,148

Net Losses Incurred	$	3,903		$	4,447		$	936		$	954		$	4,839		$	5,401

Statutory Underwriting Income (Loss)	$	1,258		$	959		$	243		$	185		$	1,501		$	1,144

Combined Ratio		82.3	%		86.9	%		85.9	%		88.7	%		83.1	%		87.2	%

Page 10 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2006			2005			2006			2005			2006			2005			2006			2005
Net Premiums Written	$	174		$	169		$	609		$	564		$	130		$	127		$	913		$	860
Increase (Decrease) in Unearned Premiums		6			9			65			63			(9	)		(9	)		62			63

Net Premiums Earned		168			160			544			501			139			136			851			797

Net Losses Paid		102			104			243			215			73			69			418			388
Increase (Decrease) in Outstanding Losses		8			19			4			84			26			21			38			124

Net Losses Incurred		110			123			247			299			99			90			456			512

Expenses Incurred		48			43			190			174			41			41			279			258
Dividends Incurred		—			—			—			—			—			—			—			—

Statutory Underwriting Income (Loss)	$	10		$	(6	)	$	107		$	28		$	(1	)	$	5		$	116		$	27

Ratios After Dividends to Policyholders:
Loss		65.5	%		76.6	%		45.4	%		59.8	%		71.2	%		66.0	%		53.6	%		64.3	%
Expense		27.6			25.8			31.2			30.8			31.6			31.9			30.5			30.0

Combined		93.1	%		102.4	%		76.6	%		90.6	%		102.8	%		97.9	%		84.1	%		94.3	%

Premiums Written as a % of Total		5.8	%		5.6	%		20.3	%		18.7	%		4.4	%		4.2	%		30.5	%		28.5	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	174		$	169		$	609		$	582		$	130		$	127		$	913		$	878

Net Premiums Earned	$	168		$	160		$	544		$	519		$	139		$	136		$	851		$	815

Net Losses Incurred	$	109		$	118		$	213		$	197		$	99		$	89		$	421		$	404

Statutory Underwriting Income (Loss)	$	11		$	(1	)	$	141		$	148		$	(1	)	$	6		$	151		$	153

Combined Ratio		92.5	%		99.4	%		70.4	%		67.8	%		102.8	%		97.4	%		80.0	%		78.9	%

Page 11 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2006			2005			2006			2005			2006			2005			2006			2005			2006			2005
Net Premiums Written	$	323		$	294		$	408		$	411		$	222		$	230		$	291		$	192		$	1,244		$	1,127
Increase (Decrease) in Unearned Premiums		3			(21	)		(27	)		(27	)		(6	)		(7	)		3			(20	)		(27	)		(75	)

Net Premiums Earned		320			315			435			438			228			237			288			212			1,271			1,202

Net Losses Paid		139			127			189			160			73			76			145			116			546			479
Increase (Decrease) in Outstanding Losses		14			89			117			151			59			70			(19	)		207			171			517

Net Losses Incurred		153			216			306			311			132			146			126			323			717			996

Expenses Incurred		110			102			110			105			47			47			89			76			356			330
Dividends Incurred		—			—			—			—			6			6			—			—			6			6

Statutory Underwriting Income (Loss)	$	57		$	(3	)	$	19		$	22		$	43		$	38		$	73		$	(187	)	$	192		$	(130	)

Ratios After Dividends to Policyholders:
Loss		47.8	%		68.6	%		70.3	%		71.2	%		59.4	%		62.9	%		43.7	%		152.3	%		56.7	%		83.3	%
Expense		34.1			34.7			27.0			25.5			21.8			21.2			30.6			39.7			28.7			29.5

Combined		81.9	%		103.3	%		97.3	%		96.7	%		81.2	%		84.1	%		74.3	%		192.0	%		85.4	%		112.8	%

Premiums Written as a % of Total		10.8	%		9.8	%		13.6	%		13.6	%		7.4	%		7.6	%		9.7	%		6.4	%		41.5	%		37.4	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	323		$	308		$	408		$	411		$	222		$	230		$	291		$	262		$	1,244		$	1,211

Net Premiums Earned	$	320		$	329		$	435		$	438		$	228		$	237		$	288		$	282		$	1,271		$	1,286

Net Losses Incurred	$	144		$	139		$	306		$	309		$	129		$	146		$	129		$	119		$	708		$	713

Statutory Underwriting Income (Loss)	$	66		$	88		$	19		$	24		$	46		$	38		$	70		$	87		$	201		$	237

Combined Ratio		79.1	%		75.4	%		97.3	%		96.2	%		79.9	%		84.3	%		75.4	%		71.1	%		84.7	%		83.1	%

Page 12 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


	Professional												Total
	Liability						Surety						Specialty
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	671		$	698		$	77		$	73		$	748		$	771
Increase (Decrease) in Unearned Premiums		4			1			8			13			12			14

Net Premiums Earned		667			697			69			60			736			757

Net Losses Paid		324			343			—			14			324			357
Increase (Decrease) in Outstanding Losses		133			201			5			(13	)		138			188

Net Losses Incurred		457			544			5			1			462			545

Expenses Incurred		151			147			24			20			175			167
Dividends Incurred		—			—			2			1			2			1

Statutory Underwriting Income (Loss)	$	59		$	6		$	38		$	38		$	97		$	44

Ratios After Dividends to Policyholders:
Loss		68.5	%		78.0	%		7.5	%		2.3	%		62.9	%		72.1	%
Expense		22.5			21.1			32.0			27.8			23.5			21.7

Combined		91.0	%		99.1	%		39.5	%		30.1	%		86.4	%		93.8	%

Premiums Written as a % of Total		22.4	%		23.1	%		2.6	%		2.4	%		25.0	%		25.5	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	671		$	698		$	77		$	73		$	748		$	771

Net Premiums Earned	$	667		$	697		$	69		$	60		$	736		$	757

Net Losses Incurred	$	457		$	543		$	5		$	1		$	462		$	544

Statutory Underwriting Income (Loss)	$	59		$	7		$	38		$	38		$	97		$	45

Combined Ratio		91.0	%		99.0	%		39.5	%		30.1	%		86.4	%		93.7	%

Page 13 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	2,905		$	2,758		$	89		$	259		$	2,994		$	3,017
Increase (Decrease) in Unearned Premiums		47			2			(27	)		(28	)		20			(26	)

Net Premiums Earned		2,858			2,756			116			287			2,974			3,043

Net Losses Paid		1,288			1,224			75			62			1,363			1,286
Increase (Decrease) in Outstanding Losses		347			829			(23	)		145			324			974

Net Losses Incurred		1,635			2,053			52			207			1,687			2,260

Expenses Incurred		810			755			44			81			854			836
Dividends Incurred		8			7			—			—			8			7

Statutory Underwriting Income (Loss)	$	405		$	(59	)	$	20		$	(1	)		425			(60	)

Increase in Deferred Acquisition Costs														11			1

GAAP Underwriting Income													$	436		$	(59	)

Ratios After Dividends to Policyholders:
Loss		57.4	%		74.7	%		44.8	%		72.2	%		56.9	%		74.4	%
Expense		27.9			27.4			49.5			31.1			28.6			27.8

Combined		85.3	%		102.1	%		94.3	%		103.3	%		85.5	%		102.2	%

Premiums Written as a % of Total		97.0	%		91.4	%		3.0	%		8.6	%		100.0	%		100.0	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	2,905		$	2,860		$	89		$	208		$	2,994		$	3,068

Net Premiums Earned	$	2,858		$	2,858		$	116		$	236		$	2,974		$	3,094

Net Losses Incurred	$	1,591		$	1,661		$	52		$	127		$	1,643		$	1,788

Statutory Underwriting Income (Loss)	$	449		$	435		$	20		$	28		$	469		$	463

Combined Ratio		83.8	%		84.8	%		94.3	%		92.6	%		84.0	%		85.2	%

Page 14 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2006 AND 2005
(MILLIONS OF DOLLARS)


													Worldwide
	United States						Foreign						Total
	2006			2005			2006			2005			2006			2005
Net Premiums Written	$	2,445		$	2,518		$	549		$	499		$	2,994		$	3,017
Increase (Decrease) in Unearned Premiums		75			42			(55	)		(68	)		20			(26	)

Net Premiums Earned		2,370			2,476			604			567			2,974			3,043

Net Losses Paid		1,179			1,080			184			206			1,363			1,286
Increase (Decrease) in Outstanding Losses		204			831			120			143			324			974

Net Losses Incurred		1,383			1,911			304			349			1,687			2,260

Expenses Incurred		679			669			175			167			854			836
Dividends Incurred		8			7			—			—			8			7

Statutory Underwriting Income (Loss)	$	300		$	(111	)	$	125		$	51			425			(60	)

Increase in Deferred Acquisition Costs														11			1

GAAP Underwriting Income													$	436		$	(59	)

Ratios After Dividends to Policyholders:
Loss		58.6	%		77.4	%		50.2	%		61.7	%		56.9	%		74.4	%
Expense		27.9			26.6			31.8			33.4			28.6			27.8

Combined		86.5	%		104.0	%		82.0	%		95.1	%		85.5	%		102.2	%

Premiums Written as a % of Total		81.7	%		83.4	%		18.3	%		16.6	%		100.0	%		100.0	%

	RESULTS EXCLUDING THE IMPACT OF CATASTROPHES:

Net Premiums Written	$	2,445		$	2,569		$	549		$	499		$	2,994		$	3,068

Net Premiums Earned	$	2,370		$	2,527		$	604		$	567		$	2,974		$	3,094

Net Losses Incurred	$	1,339		$	1,462		$	304		$	326		$	1,643		$	1,788

Statutory Underwriting Income (Loss)	$	344		$	389		$	125		$	74		$	469		$	463

Combined Ratio		84.6	%		84.1	%		82.0	%		91.0	%		84.0	%		85.2	%

Page 15 of 16

THE CHUBB CORPORATION

Definitions of Key Terms

Underwriting Income (Loss)

Property and Casualty Investment Income After Income Tax

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

Combined Ratio or Combined Loss and Expense Ratio

Page 16 of 16

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