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) July 22, 2010  

THE CHUBB CORPORATION

(Exact name of registrant as specified in its charter)

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

15 Mountain View Road, Warren, New Jersey	07059
(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 to Current Report on Form 8-K filed on July 22, 2010

Press Release dated July 22, 2010 (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.

(a) The following information, including the text of the exhibits attached hereto, is furnished pursuant to Item 2.02 of Form 8-K. On July 22, 2010, The Chubb Corporation (Chubb) issued a press release announcing its financial results for the quarter ended June 30, 2010. On July 22, 2010, Chubb also posted on its web site at www.chubb.com the Supplementary Investor Information Report (SIIR) relating to its 2010 second quarter results. Copies of the press release and the SIIR, both of which are incorporated by reference into this Item 2.02 as if fully set forth herein, 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 2010 second quarter results, scheduled to be webcast at 5:00 P.M. on July 22, 2010, 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.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press release dated July 22, 2010 (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: July 22, 2010	By:	/s/ John J. Kennedy
		Name:	John J. Kennedy
		Title:	Senior Vice President and Chief Accounting Officer

EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K
FILED ON JULY 22, 2010

Exhibit No.		Description
	99.1	Press release dated July 22, 2010 (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

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 Second Quarter Net Income per Share of $1.59;
Operating Income per Share Is $1.41;
Combined Ratio Is 90.4%

2010 Operating Income per Share Guidance

Of $5.15 to $5.55 Is Affirmed

     WARREN, New Jersey, July 22, 2010 — The Chubb Corporation [NYSE: CB] today reported that net income in the second quarter of 2010 was $518 million compared to $551 million in the second quarter of 2009. Net income per share increased 3% to $1.59 from $1.54.

     Average diluted shares outstanding for the second quarter were 326.7 million in 2010 and 357.4 million in 2009.

     Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, was $460 million in the second quarter of 2010 compared to $533 million in the second quarter of 2009. Operating income per share declined 5% to $1.41 from $1.49.

     The impact of catastrophes in the second quarter of 2010 was $193 million pre-tax, compared with $43 million pre-tax in the second quarter of 2009. The $193 million reflects the impact of numerous storms throughout the United States, the most significant of which was the May hailstorm in Oklahoma.

     The impact of catastrophes on second quarter net income and operating income per share was $0.38 in 2010 and $0.08 in 2009.

     Net written premiums for the second quarter of 2010 were $2.9 billion, an increase of 1% from $2.8 billion in the second quarter of 2009. Excluding the effect of foreign currency translation, premiums were flat. Premiums declined 1% in the U.S. and increased 11% outside the U.S. (increased 3% in local currencies).

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     The second quarter combined loss and expense ratio was 90.4% in 2010, compared to 85.9% in 2009. The impact of catastrophes in the second quarter of 2010 accounted for 6.9 percentage points of the combined ratio, compared to 1.5 points in the second quarter of 2009. Excluding catastrophes, the combined ratio for the second quarter was 83.5% in 2010 and 84.4% in 2009.

     The expense ratio for the second quarter was 30.9% in 2010 and 30.2% in 2009.

     Property and casualty investment income after taxes for the second quarter was $311 million in 2010 and $312 million in 2009.

     Net income for the second quarter of 2010 reflected net realized investment gains of $90 million pre-tax ($0.18 per share after-tax), compared to $27 million pre-tax ($0.05 per share after-tax) in the second quarter of 2009.

     During the second quarter, Chubb repurchased 12.4 million shares of its common stock at a total cost of $636 million (an average of $51.14 per share). As of June 30, 2010, there were 16.8 million shares of common stock remaining under the current repurchase authorization, including the 14 million share increase in the authorization announced in June.

     “Chubb’s second quarter operating income per share of $1.41 is an outstanding result given the competitive pressures in the insurance marketplace and the $0.38 per share negative impact of catastrophe losses,” said John D. Finnegan, Chairman, President and Chief Executive Officer. “Results were again driven by solid underwriting performance in each of our business units, producing an overall combined ratio excluding catastrophes of 83.5%. This is consistent with our first quarter performance, resulting in a combined ratio excluding catastrophes of 82.4% for the first six months of 2010, a 3.4 point improvement over the first half of 2009.

     “Because of the unusually high level of catastrophe losses in the first six months of 2010,” said Mr. Finnegan, “we have increased our catastrophe assumption for our full-year guidance from 3 points to 7 points. Nevertheless, in light of the better than expected underlying performance of our businesses in the first half of the year and our outlook for the second half, we are affirming the guidance we provided last January for full-year 2010 operating income per share of $5.15 to $5.55.”

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Six-Month Results

     For the first six months of 2010, net income was $982 million or $2.97 per share, compared with $892 million or $2.49 per share for the first half of 2009. Operating income for the first half of 2010 totaled $841 million or $2.54 per share, compared with $1.0 billion or $2.92 per share for the first half of 2009.

     The impact of catastrophes in the first six months of 2010 was $537 million pre-tax, compared with $69 million pre-tax in the first half of 2009. The impact of catastrophes on net income and operating income per share for the first six months was $1.06 in 2010 and $0.13 in 2009. The impact of catastrophes includes losses and loss expenses net of reinsurance recoverable and also includes reinsurance reinstatement premiums.

     During the first half of 2010, Chubb incurred a one-time tax charge of $22 million ($0.07 per share) related to the recently enacted federal health care legislation, which eliminated the tax benefit associated with Medicare Part D subsidies to be received by companies that provide qualifying prescription drug coverage to retirees.

     Net written premiums for the first six months increased 1% to $5.7 billion. Excluding the effect of foreign currency translation, premiums were down approximately 1% in the first half of 2010. Premiums declined 3% in the U.S. and increased 14% outside the U.S. (increased 2% in local currencies).

     The combined ratio for the first six months was 92.0% in 2010 compared to 87.0% in 2009. The impact of catastrophes in the first half accounted for 9.6 percentage points of the combined ratio in 2010 and 1.2 points in 2009. Excluding the impact of catastrophes, the combined ratio in the first half was 82.4% in 2010 and 85.8% in 2009.

     The expense ratio for the first six months was 31.1% in 2010 and 30.5% in 2009.

     Property and casualty investment income after taxes for the first six months increased 1% to $624 million in 2010 from $618 million in 2009.

     Net income for the first six months of 2010 reflects net realized investment gains of $217 million pre-tax ($0.43 per share after-tax). Net income for the first half of 2009 reflected net realized investment losses, including impairments, of $239 million pre-tax ($0.43 per share after-tax).

     During the first six months of 2010, Chubb repurchased 19.4 million shares of common stock at a total cost of $980 million (an average of $50.54 per share).

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Outlook for 2010

     Chubb affirmed 2010 operating income per share guidance of $5.15 to $5.55. This guidance assumes:

• Net written premiums that are approximately flat for the full year, including a benefit from foreign currency translation of about one percentage point. The January 2010 guidance assumed net written premiums that would be flat to down 2%, including a 2 point positive impact of currency.

• A combined ratio between 90% and 92% for the year, unchanged from the assumption in the January 2010 guidance. This is based on revised combined ratio assumptions of 94% to 96% for Chubb Personal Insurance, 93% to 95% for Chubb Commercial Insurance and 82% to 84% for Chubb Specialty Insurance.

• An impact of catastrophe losses for 2010 of 7 percentage points, compared to the assumption of 3 points in the January 2010 guidance. This implies 4 to 4¹/2 points of catastrophe losses for the second half of 2010. The impact of each point of catastrophe losses on operating income per share for the year is approximately $0.22.

• Property and casualty investment income after tax for the year that is down approximately 1%, compared to an assumption of flat in the January 2010 guidance.

• Average diluted shares outstanding of 321 million for the year, compared to the assumption of 328 million shares in the January 2010 guidance.

     Guidance and related assumptions are subject to the risks outlined in the company’s forward-looking information safe-harbor statement below.

Second Quarter Operations Review

     Chubb Personal Insurance (CPI) net written premiums increased 5% in the second quarter to $1.0 billion. CPI’s combined ratio for the quarter was 92.9%, compared to 84.2% in the second quarter of 2009. The impact of catastrophe losses for the second quarter accounted for 13.8 percentage points of the combined ratio in 2010 and 3.2 points in 2009. Excluding the impact of catastrophe losses, CPI’s second quarter combined ratio was 79.1% in 2010 and 81.0% in 2009.

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     Net written premiums for Homeowners increased 2%, and the combined ratio was 94.5%. Personal Automobile net written premiums increased 14%, and the combined ratio was 90.2%. Other Personal lines premiums increased 9%, and the combined ratio was 90.5%.

     Chubb Commercial Insurance (CCI) net written premiums were flat in the second quarter at $1.2 billion. The combined ratio for the second quarter was 92.9% in 2010 and 89.2% in 2009. The impact of catastrophe losses for the second quarter accounted for 5.6 percentage points of the combined ratio in 2010 and 1.2 points in 2009. Excluding the impact of catastrophe losses, CCI’s second quarter combined ratio was 87.3% in 2010 and 88.0% in 2009.

     Average second quarter renewal rates in the U.S. were flat for CCI, which retained 86% of the U.S. premiums that came up for renewal. In the U.S., the ratio of new to lost business was 1.3 to 1.

     Chubb Specialty Insurance (CSI) net written premiums were flat in the second quarter at $666 million. The combined ratio was 82.5%, compared to 83.9% in the second quarter of 2009.

     Professional Liability (PL) net written premiums were flat, and the business had a combined ratio of 87.2%. In the U.S., average second quarter PL renewal rates were down 3%, premium renewal retention was 86% and the ratio of new to lost business was 1.0 to 1.

     Surety net written premiums were down 2%, and the combined ratio was 47.7%.

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

     Chubb’s senior management will discuss the company’s second quarter performance with investors and analysts today, July 22nd, at 5 P.M. Eastern Daylight Time. The conference call will be webcast live on the Internet at http://www.chubb.com and archived later in the day for replay.

 6 

About Chubb

     Founded in 1882, the Chubb Group of Insurance Companies provides property and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers. Chubb’s global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.

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

     All financial results in this release and attachments are unaudited.

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

 7 

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 (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporation’s available-for-sale fixed maturities, which are carried at fair value. The appreciation or depreciation of 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.

Net Written Premiums Growth (Decrease) Excluding the Impact of Currency Fluctuation: Management uses net written premiums growth (decrease) excluding the impact of currency fluctuation, a non-GAAP financial measure, to evaluate the trends in net written premiums, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted. In net written premiums growth (decrease) excluding the impact of currency fluctuation, the effect of fluctuations in the exchange rates is excluded as these rates may fluctuate significantly and could distort the analysis of trends. Net written premiums growth (decrease) excluding the impact of currency fluctuation is determined by using the same exchange rate to translate each foreign currency denominated net written premium amount in both periods.

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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). Forward-looking statements are made pursuant to the safe harbor provisions of the PSLRA and include statements regarding management’s 2010 operating income per share guidance and related assumptions. Forward-looking statements generally can be identified by words such as “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “will,” “may,” “should,” “could,” “would,” “likely,” “estimate,” “predict,” “potential,” “continue,” or other similar expressions. Forward-looking statements are made based upon management’s current expectations and beliefs concerning trends and future developments and their potential effects on Chubb. 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 Chubb’s 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;

• our ability to retain existing business and attract new business;

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

• the adequacy of our 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; and

– 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;

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

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

– claims and litigation arising out of stock option “backdating,” “spring loading” and other equity 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;

– claims and litigation relating to uncertainty in the credit and broader financial markets; and

– legislative or regulatory proposals or changes;

• the effects of changes in market practices in the U.S. property and casualty insurance industry arising from any legal or regulatory proceedings, related settlements and industry reform, including changes that have been announced and changes that may occur in the future;

• the impact of legislative and regulatory developments on our business, including those relating to terrorism, catastrophes and the financial markets;

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

• the ability of our subsidiaries to pay us dividends;

• general political, economic and market conditions, whether globally or in the markets in which we operate, including:

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

– currency fluctuations;

– 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; and

– changes in the litigation environment;

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

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

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THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA
(Unaudited)

	Periods Ended June 30
	Second Quarter						Six Months
	2010			2009			2010			2009
	(in millions)
PROPERTY AND CASUALTY INSURANCE
Underwriting
Net Premiums Written	$	2,886		$	2,846		$	5,651		$	5,589
Decrease (Increase) in Unearned Premiums		(87	)		(18	)		(70	)		65
Premiums Earned		2,799			2,828			5,581			5,654
Losses and Loss Expenses		1,660			1,572			3,390			3,187
Operating Costs and Expenses		889			857			1,751			1,700
Increase in Deferred Policy
Acquisition Costs		(21	)		(4	)		(43	)		(20	)
Dividends to Policyholders		8			7			16			15
Underwriting Income		263			396			467			772
Investments
Investment Income Before Expenses		393			394			789			780
Investment Expenses		8			7			17			14
Investment Income		385			387			772			766
Other Income (Charges)		4			1			(3	)		5
Property and Casualty Income		652			784			1,236			1,543
CORPORATE AND OTHER		(40	)		(58	)		(103	)		(121	)
CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX		612			726			1,133			1,422
Federal and Foreign Income Tax		152			193			292			375
CONSOLIDATED OPERATING INCOME		460			533			841			1,047
REALIZED INVESTMENT GAINS (LOSSES) AFTER INCOME TAX		58			18			141			(155	)
CONSOLIDATED NET INCOME	$	518		$	551		$	982		$	892
PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX	$	311		$	312		$	624		$	618

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	Periods Ended June 30
	Second Quarter						Six Months
	2010			2009			2010			2009
OUTSTANDING SHARE DATA
(in millions)
Average Common and Potentially Dilutive Shares		326.7			357.4			330.8			357.8
Actual Common Shares at End of Period		314.5			349.9			314.5			349.9
DILUTED EARNINGS PER SHARE DATA
Operating Income	$	1.41		$	1.49		$	2.54		$	2.92
Realized Investment Gains (Losses)		.18			.05			.43			(.43	)
Net Income	$	1.59		$	1.54		$	2.97		$	2.49
Effect of Catastrophes	$	(.38	)	$	(.08	)	$	(1.06	)	$	(.13	)

	June 30		Dec. 31		June 30
	2010		2009		2009
BOOK VALUE PER COMMON SHARE	$	49.39	$	47.09	$	41.45
BOOK VALUE PER COMMON SHARE,
with Available-for-Sale Fixed Maturities at Amortized Cost		45.61		44.37		40.41

PROPERTY AND CASUALTY UNDERWRITING RATIOS
PERIODS ENDED JUNE 30

	Second Quarter						Six Months
	2010			2009			2010			2009
Losses and Loss Expenses to Premiums Earned		59.5	%		55.7	%		60.9	%		56.5	%
Underwriting Expenses to Premiums Written		30.9			30.2			31.1			30.5
Combined Loss and Expense Ratio		90.4	%		85.9	%		92.0	%		87.0	%
Effect of Catastrophes on Combined Loss and Expense Ratio		6.9	%		1.5	%		9.6	%		1.2	%

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

	Second Quarter					Six Months
	2010			2009		2010		2009
	(in millions)
Paid Losses and Loss Expenses	$	1,686		$	1,507	$	3,118	$	3,016
Increase (Decrease) in Unpaid Losses and Loss Expenses		(26	)		65		272		171
Total Losses and Loss Expenses	$	1,660		$	1,572	$	3,390	$	3,187

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PROPERTY AND CASUALTY PRODUCT MIX

	Net Premiums Written							Combined Loss and
					% Increase			Expense Ratios
	2010		2009		(Decrease)			2010			2009
	(in millions)
SIX MONTHS ENDED JUNE 30
Personal Insurance
Automobile	$	314	$	278		13	%		90.8	%		90.1	%
Homeowners		1,164		1,151		1			103.8			84.3
Other		404		375		8			88.9			93.9
Total Personal		1,882		1,804		4			98.6			87.0
Commercial Insurance
Multiple Peril		540		561		(4	)		103.6			82.8
Casualty		812		815		—			89.7			97.7
Workers’ Compensation		409		424		(4	)		90.8			89.6
Property and Marine		691		673		3			90.8			86.2
Total Commercial		2,452		2,473		(1	)		93.4			89.7
Specialty Insurance
Professional Liability		1,153		1,137		1			86.7			90.6
Surety		159		162		(2	)		43.9			38.4
Total Specialty		1,312		1,299		1			81.7			84.4
Total Insurance		5,646		5,576		1			92.2			87.6
Reinsurance Assumed		5		13		(62	)		*			*
Total	$	5,651	$	5,589		1			92.0			87.0
QUARTERS ENDED JUNE 30
Personal Insurance
Automobile	$	168	$	147		14	%		90.2	%		90.5	%
Homeowners		647		637		2			94.5			80.7
Other		193		177		9			90.5			90.7
Total Personal		1,008		961		5			92.9			84.2
Commercial Insurance
Multiple Peril		286		292		(2	)		95.2			79.9
Casualty		398		406		(2	)		91.0			92.7
Workers’ Compensation		187		188		(1	)		91.5			91.8
Property and Marine		338		327		3			93.9			91.4
Total Commercial		1,209		1,213		—			92.9			89.2
Specialty Insurance
Professional Liability		583		584		—			87.2			90.1
Surety		83		85		(2	)		47.7			38.5
Total Specialty		666		669		—			82.5			83.9
Total Insurance		2,883		2,843		1			90.4			86.3
Reinsurance Assumed		3		3		—			*			*
Total	$	2,886	$	2,846		1			90.4			85.9

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

EX-99.2

Exhibit 99.2

The	Supplementary	June 30, 2010
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
JUNE 30, 2010

	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		16-17

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

(in millions, except per share amounts)

	June 30						Dec. 31
	2010						2009
				% of Total						% of Total
Invested Assets (at carrying value)
Short Term Investments	$	2,211			5	%	$	1,918			5	%
Fixed Maturities
Tax Exempt		19,629			47			19,587			47
Taxable		16,652			40			16,991			40
Equity Securities		1,263			3			1,433			3
Other Invested Assets		2,240			5			2,075			5
Total Invested Assets	$	41,995			100	%	$	42,004			100	%
Unrealized Appreciation of Investments
Fixed Maturities	$	1,830					$	1,388
Equity Securities		33						218
		1,863						1,606
Deferred Income Tax Liability		652						562
	$	1,211					$	1,044
Capitalization
Long Term Debt	$	3,975					$	3,975
Shareholders’ Equity		15,533						15,634
Total Capitalization	$	19,508					$	19,609
Debt as a Percentage of Total Capitalization		20.4	%					20.3	%
Actual Common Shares Outstanding		314.5						332.0
Book Value Per Common Share	$	49.39					$	47.09
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	45.61					$	44.37

Page 1 of 17

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

(dollars in millions, except per share amounts)

	Periods Ended June 30
	Second		Six		From
	Quarter		Months		December 2005
	2010		2010		to June 30, 2010
Cost of Shares Repurchased	$	636	$	980	$	6,932
Average Cost Per Share	$	51.14	$	50.54	$	50.15
Shares Repurchased		12,433,151		19,394,818		138,234,693

In December 2005 and December 2006, the Board of Directors authorized the repurchase of up to 28,000,000 shares and 20,000,000 shares, respectively, 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 2006. In December 2007 and 2008, the Board of Directors authorized the repurchase of up to 28,000,000 shares and 20,000,000 shares, respectively, of the Corporation’s common stock. No shares remain under these share repurchase authorizations.

In December 2009, the Board of Directors authorized the repurchase of up to 25,000,000 shares of the Corporation’s common stock. In June 2010, the Board of Directors authorized an increase of 14,000,000 shares to the authorization approved in December 2009. The authorization has no expiration date. As of June 30, 2010, 16,765,307 shares remained under the share repurchase authorization.

Page 2 of 17

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

CORPORATE

	Cost or				Carrying
	Amortized Cost				Value (a)
	June 30		Dec. 31		June 30		Dec. 31
	2010		2009		2010		2009
	(in millions)
Short Term Investments	$	761	$	1,017	$	761	$	1,017
Taxable Fixed Maturities		1,271		1,286		1,325		1,327
Equity Securities		205		205		148		202
Other Invested Assets		37		25		37		25
TOTAL	$	2,274	$	2,533	$	2,271	$	2,571

PROPERTY AND CASUALTY

	Cost or				Carrying
	Amortized Cost				Value (a)
	June 30		Dec. 31		June 30		Dec. 31
	2010		2009		2010		2009
	(in millions)
Short Term Investments	$	1,450	$	901	$	1,450	$	901
Fixed Maturities
Tax Exempt		18,615		18,720		19,629		19,587
Taxable		14,565		15,184		15,327		15,664
Equity Securities		1,025		1,010		1,115		1,231
Other Invested Assets		2,203		2,050		2,203		2,050
TOTAL	$	37,858	$	37,865	$	39,724	$	39,433

(a) Short term investments are carried at amortized cost, which approximates fair value. Fixed maturities and equity securities are carried at fair value. Other invested assets include private equity limited partnerships carried at Chubb’s equity in the net assets of the partnerships.

Page 3 of 17

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES

	Periods Ended June 30
	Second Quarter						Six Months
	2010			2009			2010			2009
	(in millions)
CORPORATE INVESTMENT INCOME	$	22		$	9		$	30		$	18
PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	190		$	187		$	379		$	373
Taxable Interest		114			114			235			228
Other		12			15			21			26
Investment Expenses		(5	)		(4	)		(11	)		(9	)
TOTAL	$	311		$	312		$	624		$	618
Effective Tax Rate		19.2	%		19.4	%		19.2	%		19.3	%
After-Tax Annualized Yield		3.26	%		3.42	%		3.26	%		3.41	%

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 fair value.

STATUTORY POLICYHOLDERS’ SURPLUS

	June 30		Dec. 31		June 30
	2010		2009		2009
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	14,400	$	14,526	$	13,300
Rolling Year Statutory Net Premiums Written	$	11,151	$	11,074	$	11,366
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		0.77:1		0.76:1		0.85:1

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

Page 4 of 17

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES
SIX MONTHS ENDED JUNE 30, 2010

											All Other
	Net Unpaid Losses							IBNR			Unpaid Losses
					Increase			Increase			Increase
	6/30/10		12/31/09		(Decrease)			(Decrease)			(Decrease)
					(in millions)
Personal Insurance
Automobile	$	395	$	400	$	(5	)	$	(15	)	$	10
Homeowners		786		665		121			87			34
Other		854		872		(18	)		22			(40	)
Total Personal		2,035		1,937		98			94			4
Commercial Insurance
Multiple Peril		1,715		1,615		100			89			11
Casualty		6,034		5,988		46			104			(58	)
Workers’ Compensation		2,162		2,138		24			31			(7	)
Property and Marine		805		758		47			42			5
Total Commercial		10,716		10,499		217			266			(49	)
Specialty Insurance
Professional Liability		7,371		7,552		(181	)		(96	)		(85	)
Surety		63		58		5			—			5
Total Specialty		7,434		7,610		(176	)		(96	)		(80	)
Total Insurance		20,185		20,046		139			264			(125	)
Reinsurance Assumed		667		740		(73	)		(55	)		(18	)
Total	$	20,852	$	20,786	$	66		$	209		$	(143	)

Page 5 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2010			2009			2010			2009			2010			2009			2010			2009
Net Premiums Written	$	314		$	278		$	1,164		$	1,151		$	404		$	375		$	1,882		$	1,804
Decrease (Increase) in Unearned Premiums		(10	)		4			13			35			(27	)		(19	)		(24	)		20
Net Premiums Earned		304			282			1,177			1,186			377			356			1,858			1,824
Net Losses Paid		191			167			705			651			220			195			1,116			1,013
Increase (Decrease) in Outstanding Losses		(6	)		5			122			(42	)		(7	)		30			109			(7	)
Net Losses Incurred		185			172			827			609			213			225			1,225			1,006
Expenses Incurred		94			81			390			379			131			115			615			575
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	25		$	29		$	(40	)	$	198		$	33		$	16		$	18		$	243
Ratios After Dividends to Policyholders:
Loss		60.9	%		61.0	%		70.3	%		51.4	%		56.5	%		63.2	%		65.9	%		55.1	%
Expense		29.9			29.1			33.5			32.9			32.4			30.7			32.7			31.9
Combined		90.8	%		90.1	%		103.8	%		84.3	%		88.9	%		93.9	%		98.6	%		87.0	%
Premiums Written as a % of Total		5.6	%		5.0	%		20.6	%		20.6	%		7.1	%		6.7	%		33.3	%		32.3	%

Page 6 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2010			2009			2010			2009			2010			2009			2010			2009			2010			2009
Net Premiums Written	$	540		$	561		$	812		$	815		$	409		$	424		$	691		$	673		$	2,452		$	2,473
Decrease (Increase) in Unearned Premiums		16			21			(49	)		(25	)		(40	)		(15	)		(63	)		(61	)		(136	)		(80	)
Net Premiums Earned		556			582			763			790			369			409			628			612			2,316			2,393
Net Losses Paid		259			273			373			398			201			192			302			365			1,135			1,228
Increase (Decrease) in Outstanding Losses		107			(6	)		100			153			37			71			58			(45	)		302			173
Net Losses Incurred		366			267			473			551			238			263			360			320			1,437			1,401
Expenses Incurred		204			207			225			228			95			97			231			228			755			760
Dividends Incurred		—			—			—			—			13			11			—			—			13			11
Statutory Underwriting Income (Loss)	$	(14	)	$	108		$	65		$	11		$	23		$	38		$	37		$	64		$	111		$	221
Ratios After Dividends to Policyholders:
Loss		65.8	%		45.9	%		62.0	%		69.7	%		66.8	%		66.1	%		57.4	%		52.3	%		62.4	%		58.8	%
Expense		37.8			36.9			27.7			28.0			24.0			23.5			33.4			33.9			31.0			30.9
Combined		103.6	%		82.8	%		89.7	%		97.7	%		90.8	%		89.6	%		90.8	%		86.2	%		93.4	%		89.7	%
Premiums Written as a % of Total		9.6	%		10.0	%		14.4	%		14.6	%		7.2	%		7.6	%		12.2	%		12.0	%		43.4	%		44.2	%

Page 7 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

	Professional												Total
	Liability						Surety						Specialty
	2010			2009			2010			2009			2010			2009
Net Premiums Written	$	1,153		$	1,137		$	159		$	162		$	1,312		$	1,299
Decrease (Increase) in Unearned Premiums		79			98			8			9			87			107
Net Premiums Earned		1,232			1,235			167			171			1,399			1,406
Net Losses Paid		794			677			8			14			802			691
Increase (Decrease) in Outstanding Losses		(70	)		111			4			(8	)		(66	)		103
Net Losses Incurred		724			788			12			6			736			794
Expenses Incurred		322			305			57			55			379			360
Dividends Incurred		—			—			3			4			3			4
Statutory Underwriting Income (Loss)	$	186		$	142		$	95		$	106		$	281		$	248
Ratios After Dividends to Policyholders:
Loss		58.8	%		63.8	%		7.3	%		3.6	%		52.7	%		56.6	%
Expense		27.9			26.8			36.6			34.8			29.0			27.8
Combined		86.7	%		90.6	%		43.9	%		38.4	%		81.7	%		84.4	%
Premiums Written as a % of Total		20.4	%		20.4	%		2.8	%		2.9	%		23.2	%		23.3	%

Page 8 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2010			2009			2010			2009			2010			2009
Net Premiums Written	$	5,646		$	5,576		$	5		$	13		$	5,651		$	5,589
Decrease (Increase) in Unearned Premiums		(73	)		47			3			18			(70	)		65
Net Premiums Earned		5,573			5,623			8			31			5,581			5,654
Net Losses Paid		3,053			2,932			65			84			3,118			3,016
Increase (Decrease) in Outstanding Losses		345			269			(73	)		(98	)		272			171
Net Losses Incurred		3,398			3,201			(8	)		(14	)		3,390			3,187
Expenses Incurred		1,749			1,695			2			5			1,751			1,700
Dividends Incurred		16			15			—			—			16			15
Statutory Underwriting Income (Loss)	$	410		$	712		$	14		$	40			424			752
Increase in Deferred Acquisition Costs														43			20
GAAP Underwriting Income													$	467		$	772
Ratios After Dividends to Policyholders:
Loss		61.1	%		57.1	%		*	%		*	%		60.9	%		56.5	%
Expense		31.1			30.5			*			*			31.1			30.5
Combined		92.2	%		87.6	%		*	%		*	%		92.0	%		87.0	%
Premiums Written as a % of Total		99.9	%		99.8	%		0.1	%		0.2	%		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 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

							Outside
							the						Worldwide
	United States						United States						Total
	2010			2009			2010			2009			2010			2009
Net Premiums Written	$	4,147		$	4,266		$	1,504		$	1,323		$	5,651		$	5,589
Decrease (Increase) in Unearned Premiums		26			142			(96	)		(77	)		(70	)		65
Net Premiums Earned		4,173			4,408			1,408			1,246			5,581			5,654
Net Losses Paid		2,474			2,486			644			530			3,118			3,016
Increase (Decrease) in Outstanding Losses		130			(5	)		142			176			272			171
Net Losses Incurred		2,604			2,481			786			706			3,390			3,187
Expenses Incurred		1,223			1,231			528			469			1,751			1,700
Dividends Incurred		16			15			—			—			16			15
Statutory Underwriting Income (Loss)	$	330		$	681		$	94		$	71			424			752
Increase in Deferred Acquisition Costs														43			20
GAAP Underwriting Income													$	467		$	772
Ratios After Dividends to Policyholders:
Loss		62.6	%		56.5	%		55.8	%		56.7	%		60.9	%		56.5	%
Expense		29.6			29.0			35.1			35.4			31.1			30.5
Combined		92.2	%		85.5	%		90.9	%		92.1	%		92.0	%		87.0	%
Premiums Written as a % of Total		73.4	%		76.3	%		26.6	%		23.7	%		100.0	%		100.0	%

Page 10 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2010			2009			2010			2009			2010			2009			2010			2009
Net Premiums Written	$	168		$	147		$	647		$	637		$	193		$	177		$	1,008		$	961
Decrease (Increase) in Unearned Premiums		(14	)		(5	)		(60	)		(45	)		(1	)		6			(75	)		(44	)
Net Premiums Earned		154			142			587			592			192			183			933			917
Net Losses Paid		97			82			429			303			121			94			647			479
Increase (Decrease) in Outstanding Losses		(3	)		6			(63	)		(12	)		(12	)		14			(78	)		8
Net Losses Incurred		94			88			366			291			109			108			569			487
Expenses Incurred		49			42			208			201			65			56			322			299
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income	$	11		$	12		$	13		$	100		$	18		$	19		$	42		$	131
Ratios After Dividends to Policyholders:
Loss		61.0	%		62.0	%		62.4	%		49.2	%		56.8	%		59.0	%		61.0	%		53.1	%
Expense		29.2			28.5			32.1			31.5			33.7			31.7			31.9			31.1
Combined		90.2	%		90.5	%		94.5	%		80.7	%		90.5	%		90.7	%		92.9	%		84.2	%
Premiums Written as a % of Total		5.8	%		5.2	%		22.4	%		22.3	%		6.7	%		6.2	%		34.9	%		33.7	%

Page 11 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2010			2009			2010			2009			2010			2009			2010			2009			2010			2009
Net Premiums Written	$	286		$	292		$	398		$	406		$	187		$	188		$	338		$	327		$	1,209		$	1,213
Decrease (Increase) in Unearned Premiums		1			(3	)		(21	)		(13	)		(4	)		15			(21	)		(17	)		(45	)		(18	)
Net Premiums Earned		287			289			377			393			183			203			317			310			1,164			1,195
Net Losses Paid		130			122			198			202			108			103			163			183			599			610
Increase (Decrease) in Outstanding Losses		40			4			41			52			8			29			24			(6	)		113			79
Net Losses Incurred		170			126			239			254			116			132			187			177			712			689
Expenses Incurred		103			106			110			114			47			46			118			112			378			378
Dividends Incurred		—			—			—			—			6			5			—			—			6			5
Statutory Underwriting Income	$	14		$	57		$	28		$	25		$	14		$	20		$	12		$	21		$	68		$	123
Ratios After Dividends to Policyholders:
Loss		59.2	%		43.6	%		63.4	%		64.6	%		65.5	%		66.7	%		59.0	%		57.1	%		61.5	%		57.9	%
Expense		36.0			36.3			27.6			28.1			26.0			25.1			34.9			34.3			31.4			31.3
Combined		95.2	%		79.9	%		91.0	%		92.7	%		91.5	%		91.8	%		93.9	%		91.4	%		92.9	%		89.2	%
Premiums Written as a % of Total		9.9	%		10.3	%		13.8	%		14.3	%		6.5	%		6.6	%		11.7	%		11.5	%		41.9	%		42.7	%

Page 12 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

	Professional												Total
	Liability						Surety						Specialty
	2010			2009			2010			2009			2010			2009
Net Premiums Written	$	583		$	584		$	83		$	85		$	666		$	669
Decrease (Increase) in Unearned Premiums		29			34			3			2			32			36
Net Premiums Earned		612			618			86			87			698			705
Net Losses Paid		407			370			3			6			410			376
Increase (Decrease) in Outstanding Losses		(41	)		29			7			(3	)		(34	)		26
Net Losses Incurred		366			399			10			3			376			402
Expenses Incurred		160			149			29			29			189			178
Dividends Incurred		—			—			2			2			2			2
Statutory Underwriting Income	$	86		$	70		$	45		$	53		$	131		$	123
Ratios After Dividends to Policyholders:
Loss		59.8	%		64.6	%		11.9	%		3.5	%		54.0	%		57.2	%
Expense		27.4			25.5			35.8			35.0			28.5			26.7
Combined		87.2	%		90.1	%		47.7	%		38.5	%		82.5	%		83.9	%
Premiums Written as a % of Total		20.2	%		20.5	%		2.9	%		3.0	%		23.1	%		23.5	%

Page 13 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

	Total						Reinsurance						Worldwide
	Insurance						Assumed						Total
	2010			2009			2010			2009			2010			2009
Net Premiums Written	$	2,883		$	2,843		$	3		$	3		$	2,886		$	2,846
Decrease (Increase) in Unearned Premiums		(88	)		(26	)		1			8			(87	)		(18	)
Net Premiums Earned		2,795			2,817			4			11			2,799			2,828
Net Losses Paid		1,656			1,465			30			42			1,686			1,507
Increase (Decrease) in Outstanding Losses		1			113			(27	)		(48	)		(26	)		65
Net Losses Incurred		1,657			1,578			3			(6	)		1,660			1,572
Expenses Incurred		889			855			—			2			889			857
Dividends Incurred		8			7			—			—			8			7
Statutory Underwriting Income	$	241		$	377		$	1		$	15			242			392
Increase in Deferred Acquisition Costs														21			4
GAAP Underwriting Income													$	263		$	396
Ratios After Dividends to Policyholders:
Loss		59.5	%		56.2	%		*	%		*	%		59.5	%		55.7	%
Expense		30.9			30.1			*			*			30.9			30.2
Combined		90.4	%		86.3	%		*	%		*	%		90.4	%		85.9	%
Premiums Written as a % of Total		99.9	%		99.9	%		0.1	%		0.1	%		100.0	%		100.0	%

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

Page 14 of 17

THE CHUBB CORPORATION — WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED JUNE 30, 2010 AND 2009
(DOLLARS IN MILLIONS)

							Outside
							the						Worldwide
	United States						United States						Total
	2010			2009			2010			2009			2010			2009
Net Premiums Written	$	2,199		$	2,229		$	687		$	617		$	2,886		$	2,846
Decrease (Increase) in Unearned Premiums		(122	)		(48	)		35			30			(87	)		(18	)
Net Premiums Earned		2,077			2,181			722			647			2,799			2,828
Net Losses Paid		1,360			1,238			326			269			1,686			1,507
Increase (Decrease) in Outstanding Losses		(15	)		(34	)		(11	)		99			(26	)		65
Net Losses Incurred		1,345			1,204			315			368			1,660			1,572
Expenses Incurred		634			631			255			226			889			857
Dividends Incurred		8			7			—			—			8			7
Statutory Underwriting Income	$	90		$	339		$	152		$	53			242			392
Increase in Deferred Acquisition Costs														21			4
GAAP Underwriting Income													$	263		$	396
Ratios After Dividends to Policyholders:
Loss		65.0	%		55.4	%		43.6	%		56.9	%		59.5	%		55.7	%
Expense		28.9			28.4			37.1			36.6			30.9			30.2
Combined		93.9	%		83.8	%		80.7	%		93.5	%		90.4	%		85.9	%
Premiums Written as a % of Total		76.2	%		78.3	%		23.8	%		21.7	%		100.0	%		100.0	%

Page 15 of 17

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 (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporation’s available-for-sale fixed maturities, which are carried at fair value. The appreciation or depreciation of 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.

Page 16 of 17

THE CHUBB CORPORATION

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.

Return on Equity and Operating Return on Equity

Return on equity is the ratio of annualized net income divided by average shareholders’ equity. Average shareholders’ equity is the average of the beginning and all quarter-end balances within the period.

Operating return on equity, a non-GAAP measure, is the ratio of annualized operating income divided by average shareholders’ equity excluding the after-tax unrealized appreciation or depreciation of investments. Consolidated shareholders’ equity includes, as part of accumulated other comprehensive income (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporation’s available-for-sale fixed maturities and equity securities, which are carried at fair value. The appreciation or depreciation of available-for-sale fixed maturities and equity securities is subject to fluctuation and could distort the analysis of trends. Average shareholders’ equity excluding the after-tax unrealized appreciation or depreciation of investments is the average of the beginning and all quarter-end balances within the period. Management uses operating return on equity, among other measures, to assess the overall performance of the Corporation.

	Periods Ended June 30
	Second Quarter						Six Months
	2010			2009			2010			2009
				(dollars in millions)
Annualized Net Income	$	2,072		$	2,204		$	1,964		$	1,784
Average Shareholders’ Equity	$	15,637		$	14,154		$	15,636		$	13,913
Return on Equity		13.3	%		15.6	%		12.6	%		12.8	%
Annualized Operating Income	$	1,840		$	2,132		$	1,682		$	2,094
Average Shareholders’ Equity Excluding Unrealized Appreciation	$	14,455		$	13,896		$	14,500		$	13,789
Operating Return on Equity		12.7	%		15.3	%		11.6	%		15.2	%

Page 17 of 17