Exhibit 99.2

The Chubb Corporation Supplementary Investor Information December 31, 2007

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
DECEMBER 31, 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
AS OF DECEMBER 31

	2007			2006
	(in millions)
Invested Assets (at carrying value)
Short Term Investments	$	1,839		$	2,254
Fixed Maturities
Tax Exempt		18,559			17,748
Taxable		15,312			14,218
Equity Securities		2,320			1,957
Other Invested Assets		2,051			1,516
Total Invested Assets	$	40,081		$	37,693
Unrealized Appreciation of Fixed Maturities Carried at Amortized Cost	$	—		$	7
Capitalization
Long Term Debt	$	3,460		$	2,466
Shareholders’ Equity		14,445			13,863
Total Capitalization	$	17,905		$	16,329
DEBT AS A PERCENTAGE OF TOTAL CAPITALIZATION		19.3	%		15.1	%
Actual Common Shares Outstanding		374.6			411.3
Book Value Per Common Share	$	38.56		$	33.71
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	37.87		$	33.38

Page 1 of 16

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY
(dollars in millions, except per share amounts)

	Periods Ended December 31
	Fourth		Twelve		From
	Quarter		Months		December 2005
	2007		2007		to December 31, 2007
Cost of Shares Repurchased		$525		$2,184		$3,576
Average Cost Per Share		$53.52		$52.34		$51.17
Shares Repurchased		9,813,452		41,733,268		69,887,330

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. No shares remain under the 2006 share repurchase authorization.

In December 2007, 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 December 31, 2007, 26,112,670 shares remained under the share repurchase authorization.

Page 2 of 16

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

AS OF DECEMBER 31

CORPORATE

	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	2007		2006		2007		2006		2007		2006
	(in millions)
Short Term Investments	$	934	$	793	$	934	$	793	$	934	$	793
Taxable Fixed Maturities		1,050		1,160		1,045		1,138		1,045		1,138
Equity Securities		289		289		478		416		478		416
TOTAL	$	2,273	$	2,242	$	2,457	$	2,347	$	2,457	$	2,347

PROPERTY AND CASUALTY

	Cost or				Market				Carrying
	Amortized Cost				Value				Value
	2007		2006		2007		2006		2007		2006
	(in millions)
Short Term Investments	$	905	$	1,461	$	905	$	1,461	$	905	$	1,461
Fixed Maturities
Tax Exempt		18,208		17,449		18,559		17,755		18,559		17,748
Taxable		14,216		13,150		14,267		13,080		14,267		13,080
Equity Securities		1,618		1,272		1,842		1,541		1,842		1,541
Other Invested Assets		2,051		1,516		2,051		1,516		2,051		1,516
TOTAL	$	36,998	$	34,848	$	37,624	$	35,353	$	37,624	$	35,346

Page 3 of 16

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES

	PERIODS ENDED DECEMBER 31
	FOURTH QUARTER						TWELVE MONTHS
	2007			2006			2007			2006
	(in millions)
CORPORATE INVESTMENT INCOME	$	17		$	14		$	74		$	60
PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	189		$	176		$	734		$	680
Taxable Interest		125			114			482			446
Other		22			18			78			60
Investment Expenses		(5	)		(4	)		(21	)		(20	)
TOTAL	$	331		$	304		$	1,273		$	1,166
Effective Tax Rate		20.1	%		19.6	%		19.9	%		19.8	%
After-Tax Annualized Yield		3.54	%		3.50	%		3.50	%		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
AS OF DECEMBER 31

	2007		2006		2005
			(in millions)
Estimated Statutory Policyholders’ Surplus	$	12,950	$	11,357	$	8,910
Rolling Year Statutory Net Premiums Written	$	11,829	$	11,967	$	12,244
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		0.91:1		1.05:1		1.37:1

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
TWELVE MONTHS ENDED DECEMBER 31, 2007

											All Other
	Net Unpaid Losses							IBNR			Unpaid Losses
					Increase			Increase			Increase
	12/31/07		12/31/06		(Decrease)			(Decrease)			(Decrease)
	(in millions)
Personal Insurance
Automobile	$	411	$	425	$	(14	)	$	22		$	(36	)
Homeowners		705		665		40			11			29
Other		748		657		91			82			9
Total Personal		1,864		1,747		117			115			2
Commercial Insurance
Multiple Peril		1,619		1,593		26			50			(24	)
Casualty		5,540		5,213		327			358			(31	)
Workers’ Compensation		1,910		1,740		170			104			66
Property and Marine		677		678		(1	)		3			(4	)
Total Commercial		9,746		9,224		522			515			7
Specialty Insurance
Professional Liability		7,526		7,288		238			536			(298	)
Surety		71		59		12			(1	)		13
Total Specialty		7,597		7,347		250			535			(285	)
Total Insurance		19,207		18,318		889			1,165			(276	)
Reinsurance Assumed		1,109		1,381		(272	)		(214	)		(58	)
Total	$	20,316	$	19,699	$	617		$	951		$	(334	)

Page 5 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2007			2006			2007			2006			2007			2006			2007			2006
Net Premiums Written	$	621		$	670		$	2,423		$	2,268		$	665		$	580		$	3,709		$	3,518
Increase (Decrease) in Unearned Premiums		(30	)		4			77			92			20			13			67			109
Net Premiums Earned		651			666			2,346			2,176			645			567			3,642			3,409
Net Losses Paid		412			407			1,094			969			319			307			1,825			1,683
Increase (Decrease) in Outstanding Losses		(14	)		7			40			(32	)		91			77			117			52
Net Losses Incurred		398			414			1,134			937			410			384			1,942			1,735
Expenses Incurred		178			189			772			716			218			179			1,168			1,084
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income	$	75		$	63		$	440		$	523		$	17		$	4		$	532		$	590
Ratios After Dividends to Policyholders:
Loss		61.1	%		62.2	%		48.3	%		43.0	%		63.6	%		67.7	%		53.3	%		50.9	%
Expense		28.7			28.2			31.9			31.6			32.8			30.9			31.5			30.8
Combined		89.8	%		90.4	%		80.2	%		74.6	%		96.4	%		98.6	%		84.8	%		81.7	%
Premiums Written as a % of Total		5.3	%		5.6	%		20.4	%		18.9	%		5.6	%		4.8	%		31.3	%		29.3	%

Page 6 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 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	$	1,252		$	1,290		$	1,726		$	1,731		$	890		$	901		$	1,215		$	1,203		$	5,083		$	5,125
Increase (Decrease) in Unearned Premiums		(16	)		(2	)		(9	)		—			(18	)		(7	)		6			55			(37	)		46
Net Premiums Earned		1,268			1,292			1,735			1,731			908			908			1,209			1,148			5,120			5,079
Net Losses Paid		563			556			824			820			318			321			595			544			2,300			2,241
Increase (Decrease) in Outstanding Losses		26			(3	)		327			376			170			189			(1	)		(77	)		522			485
Net Losses Incurred		589			553			1,151			1,196			488			510			594			467			2,822			2,726
Expenses Incurred		429			426			487			480			201			197			427			383			1,544			1,486
Dividends Incurred		1			—			—			—			15			27			—			—			16			27
Statutory Underwriting Income	$	249		$	313		$	97		$	55		$	204		$	174		$	188		$	298		$	738		$	840
Ratios After Dividends to Policyholders:
Loss		46.5	%		42.8	%		66.4	%		69.1	%		54.6	%		57.9	%		49.1	%		40.7	%		55.3	%		53.9	%
Expense		34.3			33.0			28.2			27.7			23.0			22.5			35.2			31.8			30.5			29.2
Combined		80.8	%		75.8	%		94.6	%		96.8	%		77.6	%		80.4	%		84.3	%		72.5	%		85.8	%		83.1	%
Premiums Written as a % of Total		10.6	%		10.8	%		14.5	%		14.5	%		7.5	%		7.5	%		10.2	%		10.0	%		42.8	%		42.8	%

Page 7 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Professional												Total
	Liability						Surety						Specialty
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	2,605		$	2,641		$	339		$	300		$	2,944		$	2,941
Increase (Decrease) in Unearned Premiums		(46	)		(41	)		19			29			(27	)		(12	)
Net Premiums Earned		2,651			2,682			320			271			2,971			2,953
Net Losses Paid		1,296			1,320			5			21			1,301			1,341
Increase (Decrease) in Outstanding Losses		238			511			12			13			250			524
Net Losses Incurred		1,534			1,831			17			34			1,551			1,865
Expenses Incurred		638			620			101			93			739			713
Dividends Incurred		—			—			3			4			3			4
Statutory Underwriting Income	$	479		$	231		$	199		$	140		$	678		$	371
Ratios After Dividends to Policyholders:
Loss		57.9	%		68.3	%		5.3	%		12.8	%		52.3	%		63.2	%
Expense		24.5			23.5			30.1			31.4			25.1			24.3
Combined		82.4	%		91.8	%		35.4	%		44.2	%		77.4	%		87.5	%
Premiums Written as a % of Total		21.9	%		22.1	%		2.9	%		2.5	%		24.8	%		24.6	%

Page 8 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	11,736		$	11,584		$	136		$	390		$	11,872		$	11,974
Increase (Decrease) in Unearned Premiums		3			143			(77	)		(127	)		(74	)		16
Net Premiums Earned		11,733			11,441			213			517			11,946			11,958
Net Losses Paid		5,426			5,265			256			323			5,682			5,588
Increase (Decrease) in Outstanding Losses		889			1,061			(272	)		(75	)		617			986
Net Losses Incurred		6,315			6,326			(16	)		248			6,299			6,574
Expenses Incurred		3,451			3,283			113			184			3,564			3,467
Dividends Incurred		19			31			—			—			19			31
Statutory Underwriting Income	$	1,948		$	1,801		$	116		$	85			2,064			1,886
Increase in Deferred Acquisition Costs														52			19
GAAP Underwriting Income													$	2,116		$	1,905
Ratios After Dividends to Policyholders:
Loss		53.9	%		55.5	%		*	%		*	%		52.8	%		55.2	%
Expense		29.5			28.4			*			*			30.1			29.0
Combined		83.4	%		83.9	%		*	%		*	%		82.9	%		84.2	%
Premiums Written as a % of Total		98.9	%		96.7	%		1.1	%		3.3	%		100.0	%		100.0	%

*     Combined, loss, and expense ratios 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 TWELVE MONTHS ENDED DECEMBER 31, 2007 AND 2006
(MILLIONS OF DOLLARS)

							Outside
							the						Worldwide
	United States						United States						Total
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	9,168		$	9,520		$	2,704		$	2,454		$	11,872		$	11,974
Increase (Decrease) in Unearned Premiums		(117	)		(44	)		43			60			(74	)		16
Net Premiums Earned		9,285			9,564			2,661			2,394			11,946			11,958
Net Losses Paid		4,893			4,828			789			760			5,682			5,588
Increase (Decrease) in Outstanding Losses		75			494			542			492			617			986
Net Losses Incurred		4,968			5,322			1,331			1,252			6,299			6,574
Expenses Incurred		2,617			2,652			947			815			3,564			3,467
Dividends Incurred		19			31			—			—			19			31
Statutory Underwriting Income	$	1,681		$	1,559		$	383		$	327			2,064			1,886
Increase in Deferred Acquisition Costs														52			19
GAAP Underwriting Income													$	2,116		$	1,905
Ratios After Dividends to Policyholders:
Loss		53.6	%		55.8	%		50.0	%		52.3	%		52.8	%		55.2	%
Expense		28.6			27.9			35.0			33.2			30.1			29.0
Combined		82.2	%		83.7	%		85.0	%		85.5	%		82.9	%		84.2	%
Premiums Written as a % of Total		77.2	%		79.5	%		22.8	%		20.5	%		100.0	%		100.0	%

Page 10 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2007			2006			2007			2006			2007			2006			2007			2006
Net Premiums Written	$	149		$	159		$	592		$	562		$	176		$	158		$	917		$	879
Increase (Decrease) in Unearned Premiums		(10	)		(9	)		(5	)		3			6			8			(9	)		2
Net Premiums Earned		159			168			597			559			170			150			926			877
Net Losses Paid		108			113			308			224			82			80			498			417
Increase (Decrease) in Outstanding Losses		(11	)		(6	)		29			17			30			35			48			46
Net Losses Incurred		97			107			337			241			112			115			546			463
Expenses Incurred		44			46			193			183			59			49			296			278
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	18		$	15		$	67		$	135		$	(1	)	$	(14	)	$	84		$	136
Ratios After Dividends to Policyholders:
Loss		61.0	%		63.7	%		56.5	%		43.1	%		65.9	%		76.7	%		58.9	%		52.8	%
Expense		29.5			28.9			32.6			32.6			33.5			31.0			32.3			31.6
Combined		90.5	%		92.6	%		89.1	%		75.7	%		99.4	%		107.7	%		91.2	%		84.4	%
Premiums Written as a % of Total		5.0	%		5.3	%		19.7	%		18.9	%		5.8	%		5.3	%		30.5	%		29.5	%

Page 11 of 16

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 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	$	326		$	322		$	426		$	428		$	204		$	207		$	306		$	305		$	1,262		$	1,262
Increase (Decrease) in Unearned Premiums		10			(1	)		(13	)		(1	)		(20	)		(22	)		1			12			(22	)		(12	)
Net Premiums Earned		316			323			439			429			224			229			305			293			1,284			1,274
Net Losses Paid		132			180			256			270			62			74			170			124			620			648
Increase (Decrease) in Outstanding Losses		16			(56	)		27			40			69			44			(29	)		(14	)		83			14
Net Losses Incurred		148			124			283			310			131			118			141			110			703			662
Expenses Incurred		107			104			122			133			46			50			106			97			381			384
Dividends Incurred		1			—			—			—			4			7			—			—			5			7
Statutory Underwriting Income (Loss)	$	60		$	95		$	34		$	(14	)	$	43		$	54		$	58		$	86		$	195		$	221
Ratios After Dividends to Policyholders:
Loss		47.0	%		38.4	%		64.5	%		72.2	%		59.6	%		53.2	%		46.2	%		37.5	%		55.0	%		52.3	%
Expense		32.9			32.3			28.6			31.1			23.0			25.0			34.7			31.8			30.3			30.6
Combined		79.9	%		70.7	%		93.1	%		103.3	%		82.6	%		78.2	%		80.9	%		69.3	%		85.3	%		82.9	%
Premiums Written as a % of Total		10.8	%		10.8	%		14.1	%		14.4	%		6.8	%		7.0	%		10.2	%		10.3	%		41.9	%		42.5	%

Page 12 of 16

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Professional												Total
	Liability						Surety						Specialty
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	712		$	699		$	82		$	75		$	794		$	774
Increase (Decrease) in Unearned Premiums		40			42			(4	)		6			36			48
Net Premiums Earned		672			657			86			69			758			726
Net Losses Paid		344			483			—			14			344			497
Increase (Decrease) in Outstanding Losses		19			(55	)		14			(7	)		33			(62	)
Net Losses Incurred		363			428			14			7			377			435
Expenses Incurred		173			163			24			23			197			186
Dividends Incurred		—			—			1			1			1			1
Statutory Underwriting Income (Loss)	$	136		$	66		$	47		$	38		$	183		$	104
Ratios After Dividends to Policyholders:
Loss		54.0	%		65.2	%		16.5	%		10.3	%		49.8	%		60.0	%
Expense		24.3			23.3			29.6			31.1			24.8			24.1
Combined		78.3	%		88.5	%		46.1	%		41.4	%		74.6	%		84.1	%
Premiums Written as a % of Total		23.7	%		23.5	%		2.7	%		2.5	%		26.4	%		26.0	%

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THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED DECEMBER 31, 2007 AND 2006
(MILLIONS OF DOLLARS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	2,973		$	2,915		$	36		$	59		$	3,009		$	2,974
Increase (Decrease) in Unearned Premiums		5			38			(15	)		(59	)		(10	)		(21	)
Net Premiums Earned		2,968			2,877			51			118			3,019			2,995
Net Losses Paid		1,462			1,562			72			87			1,534			1,649
Increase (Decrease) in Outstanding Losses		164			(2	)		(92	)		(57	)		72			(59	)
Net Losses Incurred		1,626			1,560			(20	)		30			1,606			1,590
Expenses Incurred		874			848			41			39			915			887
Dividends Incurred		6			8			—			—			6			8
Statutory Underwriting Income (Loss)	$	462		$	461		$	30		$	49			492			510
Decrease in Deferred Acquisition Costs														(12	)		(21	)
GAAP Underwriting Income													$	480		$	489
Ratios After Dividends to Policyholders:
Loss		54.9	%		54.4	%		*	%		*	%		53.3	%		53.2	%
Expense		29.5			29.1			*			*			30.5			29.9
Combined		84.4	%		83.5	%		*	%		*	%		83.8	%		83.1	%
Premiums Written as a % of Total		98.8	%		98.0	%		1.2	%		2.0	%		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 DECEMBER 31, 2007 AND 2006
(MILLIONS OF DOLLARS)

							Outside
							the						Worldwide
	United States						United States						Total
	2007			2006			2007			2006			2007			2006
Net Premiums Written	$	2,251		$	2,317		$	758		$	657		$	3,009		$	2,974
Increase (Decrease) in Unearned Premiums		(56	)		(60	)		46			39			(10	)		(21	)
Net Premiums Earned		2,307			2,377			712			618			3,019			2,995
Net Losses Paid		1,334			1,431			200			218			1,534			1,649
Increase (Decrease) in Outstanding Losses		(69	)		(157	)		141			98			72			(59	)
Net Losses Incurred		1,265			1,274			341			316			1,606			1,590
Expenses Incurred		653			669			262			218			915			887
Dividends Incurred		6			8			—			—			6			8
Statutory Underwriting Income (Loss)	$	383		$	426		$	109		$	84			492			510
Decrease in Deferred Acquisition Costs														(12	)		(21	)
GAAP Underwriting Income													$	480		$	489
Ratios After Dividends to Policyholders:
Loss		55.0	%		53.8	%		47.9	%		51.1	%		53.3	%		53.2	%
Expense		29.1			29.0			34.6			33.2			30.5			29.9
Combined		84.1	%		82.8	%		82.5	%		84.3	%		83.8	%		83.1	%
Premiums Written as a % of Total		74.8	%		77.9	%		25.2	%		22.1	%		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 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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