Exhibit 99.2

The	Supplementary	September 30, 2007
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, 2007

	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
CONSOLIDATED BALANCE SHEET HIGHLIGHTS

	Sept. 30			Dec. 31
	2007			2006
	(in millions)
Invested Assets (at carrying value)
Short Term Investments	$	2,530		$	2,254
Fixed Maturities
Tax Exempt		18,571			17,748
Taxable		15,343			14,218
Equity Securities		2,208			1,957
Other Invested Assets		1,887			1,516
Total Invested Assets	$	40,539		$	37,693
Unrealized Appreciation of Fixed
Maturities Carried at Amortized Cost	$	6		$	7
Capitalization
Long Term Debt	$	4,135		$	2,466
Shareholders’ Equity		14,248			13,863
Total Capitalization	$	18,383		$	16,329
DEBT AS A PERCENTAGE OF TOTAL CAPITALIZATION		22.5	%		15.1	%
Actual Common Shares Outstanding		383.8			411.3
Book Value Per Common Share	$	37.12		$	33.71
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	36.93		$	33.38

Page 1 of 16

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

(dollars in millions, except per share amounts)

	Periods Ended September 30				From
	Third		Nine		December 2005
	Quarter		Months		to September 30,
	2007		2007		2007
Cost of Shares Repurchased		$519		$1,659		$3,051
Average Cost Per Share		$50.93		$51.97		$50.79
Shares Repurchased		10,193,239		31,919,816		60,073,878

In December 2005, the Board of Directors authorized the repurchase of up to 28,000,000 shares of the Corporation’s common stock. No shares remain under the 2005 share repurchase authorization.

In December 2006, the Board of Directors authorized the repurchase of up to 20,000,000 shares of the Corporation’s common stock. In March 2007, the Board of Directors authorized an increase of 20,000,000 shares to the authorization approved in December 2006. The authorization has no expiration date. As of September 30, 2007, 7,926,122 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
	2007		2006		2007		2006		2007		2006
	(in millions)
Short Term Investments	$	1,343	$	793	$	1,343	$	793	$	1,343	$	793
Taxable Fixed Maturities		1,085		1,160		1,065		1,138		1,065		1,138
Equity Securities		289		289		494		416		494		416
TOTAL	$	2,717	$	2,242	$	2,902	$	2,347	$	2,902	$	2,347

PROPERTY AND CASUALTY

	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	Sept. 30		Dec. 31		Sept. 30		Dec. 31		Sept. 30		Dec. 31
	2007		2006		2007		2006		2007		2006
	(in millions)
Short Term Investments	$	1,187	$	1,461	$	1,187	$	1,461	$	1,187	$	1,461
Fixed Maturities
Tax Exempt		18,354		17,449		18,577		17,755		18,571		17,748
Taxable		14,358		13,150		14,278		13,080		14,278		13,080
Common Stocks		1,412		1,235		1,687		1,502		1,687		1,502
Preferred Stocks		25		37		27		39		27		39
Other Invested Assets		1,887		1,516		1,887		1,516		1,887		1,516
TOTAL	$	37,223	$	34,848	$	37,643	$	35,353	$	37,637	$	35,346

Page 3 of 16

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES

	PERIODS ENDED SEPTEMBER 30
	THIRD QUARTER						NINE MONTHS
	2007			2006			2007			2006
	(in millions)
CORPORATE INVESTMENT INCOME	$	21		$	15		$	57		$	46
PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	185		$	171		$	545		$	504
Taxable Interest		124			111			357			332
Other		20			16			56			42
Investment Expenses		(5	)		(3	)		(16	)		(16	)
TOTAL	$	324		$	295		$	942		$	862
Effective Tax Rate		20.0	%		20.3	%		19.9	%		19.9	%
After-Tax Annualized Yield		3.51	%		3.49	%		3.47	%		3.48	%

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
	2007		2006		2006
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	12,750	$	11,357	$	10,450
Rolling Year Statutory Net
Premiums Written	$	11,809	$	11,967	$	12,078
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		0.93:1		1.05:1		1.16:1

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, 2007

	Net Unpaid Losses										All Other
								IBNR			Unpaid Losses
					Increase			Increase			Increase
	9/30/07		12/31/06		(Decrease)			(Decrease)			(Decrease)
	(in millions)
Personal Insurance
Automobile	$	422	$	425	$	(3	)	$	13		$	(16	)
Homeowners		676		665		11			—			11
Other		718		657		61			79			(18	)
Total Personal		1,816		1,747		69			92			(23	)
Commercial Insurance
Multiple Peril		1,603		1,593		10			37			(27	)
Casualty		5,513		5,213		300			250			50
Workers’ Compensation		1,841		1,740		101			88			13
Property and Marine		706		678		28			13			15
Total Commercial		9,663		9,224		439			388			51
Specialty Insurance
Professional Liability		7,507		7,288		219			547			(328	)
Surety		57		59		(2	)		1			(3	)
Total Specialty		7,564		7,347		217			548			(331	)
Total Insurance		19,043		18,318		725			1,028			(303	)
Reinsurance Assumed		1,201		1,381		(180	)		(123	)		(57	)
Total	$	20,244	$	19,699	$	545		$	905		$	(360	)

Page 5 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2007			2006			2007			2006			2007			2006			2007			2006
Net Premiums Written	$	472		$	511		$	1,831		$	1,706		$	489		$	422		$	2,792		$	2,639
Increase (Decrease) in Unearned Premiums		(20	)		13			82			89			14			5			76			107
Net Premiums Earned		492			498			1,749			1,617			475			417			2,716			2,532
Net Losses Paid		304			294			786			745			237			227			1,327			1,266
Increase (Decrease) in Outstanding Losses		(3	)		13			11			(49	)		61			42			69			6
Net Losses Incurred		301			307			797			696			298			269			1,396			1,272
Expenses Incurred		134			143			579			533			159			130			872			806
Dividends Incurred		—			—			—			—			—			—			—			-
Statutory Underwriting Income	$	57		$	48		$	373		$	388		$	18		$	18		$	448		$	454
Ratios After Dividends to Policyholders:
Loss		61.2	%		61.6	%		45.6	%		43.1	%		62.8	%		64.5	%		51.4	%		50.2	%
Expense		28.4			28.0			31.6			31.2			32.5			30.8			31.2			30.6
Combined		89.6	%		89.6	%		77.2	%		74.3	%		95.3	%		95.3	%		82.6	%		80.8	%
Premiums Written as a % of Total		5.3	%		5.7	%		20.7	%		19.0	%		5.5	%		4.7	%		31.5	%		29.4	%

Page 6 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

													Commercial						Commercial
	Commercial						Commercial						Workers'						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2007			2006			2007			2006			2007			2006			2007			2006			2007			2006
Net Premiums Written	$	926		$	968		$	1,300		$	1,303		$	686		$	694		$	909		$	898		$	3,821		$	3,863
Increase (Decrease) in Unearned Premiums		(26	)		(1	)		4			1			2			15			5			43			(15	)		58
Net Premiums Earned		952			969			1,296			1,302			684			679			904			855			3,836			3,805
Net Losses Paid		431			376			568			550			256			247			425			420			1,680			1,593
Increase (Decrease) in Outstanding Losses		10			53			300			336			101			145			28			(63	)		439			471
Net Losses Incurred		441			429			868			886			357			392			453			357			2,119			2,064
Expenses Incurred		322			322			365			347			155			147			321			286			1,163			1,102
Dividends Incurred		—			—			—			—			11			20			—			—			11			20
Statutory Underwriting Income	$	189		$	218		$	63		$	69		$	161		$	120		$	130		$	212		$	543		$	619
Ratios After Dividends to Policyholders:
Loss		46.3	%		44.3	%		67.0	%		68.1	%		53.0	%		59.5	%		50.1	%		41.8	%		55.4	%		54.5	%
Expense		34.8			33.2			28.1			26.6			23.0			21.8			35.3			31.8			30.5			28.7
Combined		81.1	%		77.5	%		95.1	%		94.7	%		76.0	%		81.3	%		85.4	%		73.6	%		85.9	%		83.2	%
Premiums Written as a % of Total		10.4	%		10.7	%		14.7	%		14.5	%		7.7	%		7.7	%		10.3	%		10.0	%		43.1	%		42.9	%

Page 7 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Professional												Total
	Liability						Surety						Specialty
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	1,893		$	1,942		$	257		$	225		$	2,150		$	2,167
Increase (Decrease) in Unearned Premiums		(86	)		(83	)		23			23			(63	)		(60	)
Net Premiums Earned		1,979			2,025			234			202			2,213			2,227
Net Losses Paid		952			837			5			7			957			844
Increase (Decrease) in Outstanding Losses		219			566			(2	)		20			217			586
Net Losses Incurred		1,171			1,403			3			27			1,174			1,430
Expenses Incurred		465			457			77			70			542			527
Dividends Incurred		—			—			2			3			2			3
Statutory Underwriting Income	$	343		$	165		$	152		$	102		$	495		$	267
Ratios After Dividends to Policyholders:
Loss		59.2	%		69.3	%		1.3	%		13.6	%		53.1	%		64.3	%
Expense		24.5			23.5			30.2			31.5			25.2			24.4
Combined		83.7	%		92.8	%		31.5	%		45.1	%		78.3	%		88.7	%
Premiums Written as a % of Total		21.4	%		21.5	%		2.9	%		2.5	%		24.3	%		24.0	%

Page 8 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	8,763		$	8,669		$	100		$	331		$	8,863		$	9,000
Increase (Decrease) in Unearned Premiums		(2	)		105			(62	)		(68	)		(64	)		37
Net Premiums Earned		8,765			8,564			162			399			8,927			8,963
Net Losses Paid		3,964			3,703			184			236			4,148			3,939
Increase (Decrease) in Outstanding Losses		725			1,063			(180	)		(18	)		545			1,045
Net Losses Incurred		4,689			4,766			4			218			4,693			4,984
Expenses Incurred		2,577			2,435			72			145			2,649			2,580
Dividends Incurred		13			23			—			—			13			23
Statutory Underwriting Income	$	1,486		$	1,340		$	86		$	36			1,572			1,376
Increase in Deferred Acquisition Costs														64			40
GAAP Underwriting Income													$	1,636		$	1,416
Ratios After Dividends to Policyholders:
Loss		53.6	%		55.8	%		*	%		*	%		52.7	%		55.8	%
Expense		29.4			28.2			*			*			29.9			28.7
Combined		83.0	%		84.0	%		*	%		*	%		82.6	%		84.5	%
Premiums Written as a % of Total		98.9	%		96.3	%		1.1	%		3.7	%		100.0	%		100.0	%

* Combined, loss, and expense ratio are no longer presented for Reinsurance Assumed since this business is in run-off.

Page 9 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

							Outside
							the						Worldwide
	United States						United States						Total
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	6,917		$	7,203		$	1,946		$	1,797		$	8,863		$	9,000
Increase (Decrease) in Unearned Premiums		(61	)		16			(3	)		21			(64	)		37
Net Premiums Earned		6,978			7,187			1,949			1,776			8,927			8,963
Net Losses Paid		3,559			3,397			589			542			4,148			3,939
Increase (Decrease) in Outstanding Losses		144			651			401			394			545			1,045
Net Losses Incurred		3,703			4,048			990			936			4,693			4,984
Expenses Incurred		1,964			1,983			685			597			2,649			2,580
Dividends Incurred		13			23			—			—			13			23
Statutory Underwriting Income	$	1,298		$	1,133		$	274		$	243			1,572			1,376
Increase in Deferred Acquisition Costs														64			40
GAAP Underwriting Income													$	1,636		$	1,416
Ratios After Dividends to Policyholders:
Loss		53.2	%		56.5	%		50.8	%		52.7	%		52.7	%		55.8	%
Expense		28.4			27.6			35.2			33.2			29.9			28.7
Combined		81.6	%		84.1	%		86.0	%		85.9	%		82.6	%		84.5	%
Premiums Written as a % of Total		78.0	%		80.0	%		22.0	%		20.0	%		100.0	%		100.0	%

Page 10 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2007			2006			2007			2006			2007			2006			2007			2006
Net Premiums Written	$	161		$	174		$	657		$	609		$	159		$	130		$	977		$	913
Increase (Decrease) in Unearned Premiums		(2	)		6			67			65			(7	)		(9	)		58			62
Net Premiums Earned		163			168			590			544			166			139			919			851
Net Losses Paid		98			102			257			243			99			73			454			418
Increase (Decrease) in Outstanding Losses		5			8			11			4			9			26			25			38
Net Losses Incurred		103			110			268			247			108			99			479			456
Expenses Incurred		45			48			206			190			54			41			305			279
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	15		$	10		$	116		$	107		$	4		$	(1	)	$	135		$	116
Ratios After Dividends to Policyholders:
Loss		63.2	%		65.5	%		45.4	%		45.4	%		65.1	%		71.2	%		52.1	%		53.6	%
Expense		27.9			27.6			31.4			31.2			33.9			31.6			31.2			30.5
Combined		91.1	%		93.1	%		76.8	%		76.6	%		99.0	%		102.8	%		83.3	%		84.1	%
Premiums Written as a % of Total		5.5	%		5.8	%		22.3	%		20.3	%		5.4	%		4.4	%		33.2	%		30.5	%

Page 11 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2007			2006			2007			2006			2007			2006			2007			2006			2007			2006
Net Premiums Written	$	313		$	323		$	403		$	408		$	205		$	222		$	283		$	291		$	1,204		$	1,244
Increase (Decrease) in Unearned Premiums		(6	)		3			(29	)		(27	)		(21	)		(6	)		(18	)		3			(74	)		(27	)
Net Premiums Earned		319			320			432			435			226			228			301			288			1,278			1,271
Net Losses Paid		131			139			182			189			83			73			145			145			541			546
Increase (Decrease) in Outstanding Losses		(5	)		14			121			117			38			59			(11	)		(19	)		143			171
Net Losses Incurred		126			153			303			306			121			132			134			126			684			717
Expenses Incurred		106			110			114			110			50			47			99			89			369			356
Dividends Incurred		—			—			—			—			4			6			—			—			4			6
Statutory Underwriting Income (Loss)	$	87		$	57		$	15		$	19		$	51		$	43		$	68		$	73		$	221		$	192
Ratios After Dividends to Policyholders:
Loss		39.5	%		47.8	%		70.1	%		70.3	%		54.5	%		59.4	%		44.5	%		43.7	%		53.7	%		56.7	%
Expense		33.9			34.1			28.3			27.0			24.9			21.8			35.0			30.6			30.7			28.7
Combined		73.4	%		81.9	%		98.4	%		97.3	%		79.4	%		81.2	%		79.5	%		74.3	%		84.4	%		85.4	%
Premiums Written as a % of Total		10.7	%		10.8	%		13.7	%		13.6	%		7.0	%		7.4	%		9.6	%		9.7	%		41.0	%		41.5	%

Page 12 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Professional												Total
	Liability						Surety						Specialty
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	647		$	671		$	79		$	77		$	726		$	748
Increase (Decrease) in Unearned Premiums		(12	)		4			(1	)		8			(13	)		12
Net Premiums Earned		659			667			80			69			739			736
Net Losses Paid		316			324			—			—			316			324
Increase (Decrease) in Outstanding Losses		70			133			(1	)		5			69			138
Net Losses Incurred		386			457			(1	)		5			385			462
Expenses Incurred		150			151			25			24			175			175
Dividends Incurred		—			—			1			2			1			2
Statutory Underwriting Income (Loss)	$	123		$	59		$	55		$	38		$	178		$	97
Ratios After Dividends to Policyholders:
Loss		58.6	%		68.5	%		(1.3	)%		7.5	%		52.2	%		62.9	%
Expense		23.2			22.5			32.1			32.0			24.1			23.5
Combined		81.8	%		91.0	%		30.8	%		39.5	%		76.3	%		86.4	%
Premiums Written as a % of Total		22.0	%		22.4	%		2.7	%		2.6	%		24.7	%		25.0	%

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THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	2,907		$	2,905		$	31		$	89		$	2,938		$	2,994
Increase (Decrease) in Unearned Premiums		(29	)		47			(11	)		(27	)		(40	)		20
Net Premiums Earned		2,936			2,858			42			116			2,978			2,974
Net Losses Paid		1,311			1,288			58			75			1,369			1,363
Increase (Decrease) in Outstanding Losses		237			347			(65	)		(23	)		172			324
Net Losses Incurred		1,548			1,635			(7	)		52			1,541			1,687
Expenses Incurred		849			810			25			44			874			854
Dividends Incurred		5			8			—			—			5			8
Statutory Underwriting Income (Loss)	$	534		$	405		$	24		$	20			558			425
Increase in Deferred Acquisition Costs														11			11
GAAP Underwriting Income													$	569		$	436
Ratios After Dividends to Policyholders:
Loss		52.8	%		57.4	%		*	%		*	%		51.8	%		56.9	%
Expense		29.3			27.9			*			*			29.8			28.6
Combined		82.1	%		85.3	%		*	%		*	%		81.6	%		85.5	%
Premiums Written as a % of Total		98.9	%		97.0	%		1.1	%		3.0	%		100.0	%		100.0	%

* Combined, loss, and expense ratios are no longer presented for Reinsurance Assumed since this business is in run-off.

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THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2007 AND 2006
(MILLIONS OF DOLLARS)

							Outside
							the						Worldwide
	United States						United States						Total
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	2,325		$	2,445		$	613		$	549		$	2,938		$	2,994
Increase (Decrease) in Unearned Premiums		15			75			(55	)		(55	)		(40	)		20
Net Premiums Earned		2,310			2,370			668			604			2,978			2,974
Net Losses Paid		1,220			1,179			149			184			1,369			1,363
Increase (Decrease) in Outstanding Losses		(9	)		204			181			120			172			324
Net Losses Incurred		1,211			1,383			330			304			1,541			1,687
Expenses Incurred		657			679			217			175			874			854
Dividends Incurred		5			8			—			—			5			8
Statutory Underwriting Income (Loss)	$	437		$	300		$	121		$	125			558			425
Increase in Deferred Acquisition Costs														11			11
GAAP Underwriting Income													$	569		$	436
Ratios After Dividends to Policyholders:
Loss		52.5	%		58.6	%		49.4	%		50.2	%		51.8	%		56.9	%
Expense		28.3			27.9			35.4			31.8			29.8			28.6
Combined		80.8	%		86.5	%		84.8	%		82.0	%		81.6	%		85.5	%
Premiums Written as a % of Total		79.1	%		81.7	%		20.9	%		18.3	%		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 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 taxes.

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 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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