-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, KPCaszdYxscJ3iRx21Yd3wwToh1vjlE29NuNRROyPbKL+3OivwjfT4bjt2mlUKtF ZWd2wge0lXnENGa+cSij1g== 0000950123-95-001815.txt : 199506280000950123-95-001815.hdr.sgml : 19950628 ACCESSION NUMBER: 0000950123-95-001815 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950627 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHUBB CORP CENTRAL INDEX KEY: 0000020171 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 132595722 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08661 FILM NUMBER: 95549358 BUSINESS ADDRESS: STREET 1: 15 MOUNTAIN VIEW RD P O BOX 1615 CITY: WARREN STATE: NJ ZIP: 07061 BUSINESS PHONE: 9805802000 11-K 1 FORM 11-K FOR THE CHUBB CORPORATION 1 AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 27, 1995 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 ------------------ FORM 11-K ANNUAL REPORT ------------------ ['X'] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-8661 A. FULL TITLE OF THE PLAN: CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES. B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE: The Chubb Corporation (the "Corporation") 15 Mountain View Road P.O. Box 1615 Warren, New Jersey 07061 - 1615 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1994
S&P 500 SHORT TERM CHUBB FIXED INDEX INCOME CORPORATION INCOME BALANCED FUND FUND STOCK FUND FUND FUND ----------- ---------- ----------- ------------ ---------- Investments (Notes 1 and 3) Common Stock of Chubb Corporation................... -- -- $75,639,401 -- -- Mutual Funds........................................ $43,266,526 -- -- -- $5,270,293 Investment in Equities.............................. -- -- -- -- -- Fixed Income Securities............................. -- -- -- $151,493,529 -- Pooled Investments: US Government Money Market Fund................... -- $6,629,436 1,421,649 4,346,464 -- EGSF Venture Capital Fund......................... 14,790 -- -- -- -- Participant Loans................................... -- -- -- -- -- Accrued Income........................................ 1,890 28,372 453,906 (11,879) -- Participants' transfers receivable (payable) between Funds............................................... (212,609) (13,423 ) (57,836 ) 246,736 (25,760) ----------- ----------- ----------- ------------ ---------- Net Assets Available for Plan Benefits at December 31, 1994 (Note 4)...................... $43,070,597 $6,644,385 $77,457,120 $156,074,850 $5,244,533 =========== =========== =========== ============ ==========
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS YEAR ENDED DECEMBER 31, 1994 Contributions Employers: Pay conversion................................... $ 3,019,848 $ 509,538 $ 4,524,184 $ 7,866,087 $ 661,867 Matching......................................... 1,991,577 371,024 3,013,469 5,263,403 412,566 ----------- ----------- ------------ ------------ ---------- Total employers.............................. 5,011,425 880,562 7,537,653 13,129,490 1,074,433 Participants....................................... 95,546 8,078 97,874 300,835 20,625 Rollovers.......................................... 262,959 142,524 517,736 592,739 106,266 Loan repayments...................................... 1,140,679 232,646 2,154,067 3,742,507 313,755 Interest............................................. 14,797 255,355 (27,821) 10,505,376 2,400 Dividends............................................ 1,497,690 -- 1,828,547 -- 147,085 Net appreciation/(depreciation) in fair value of assets............................................. (1,076,902) -- (824,189) -- (22,469) Participants' transfers between Funds................ (9,835,668) (1,480,340 ) (14,663,018) (15,156,651) 3,693,266 Distributions to participants........................ (2,292,695) (607,812 ) (4,124,192) (10,246,730) (90,324) Forfeitures.......................................... (139) (184 ) (87) (523) (504) ----------- ----------- ------------ ------------ ---------- Increase (decrease) in Net Assets Available for Plan Benefits during the year...................... (5,182,308) (569,171 ) (7,503,430) 2,867,043 5,244,533 Net Assets Available for Plan Benefits at December 31, 1993.................................. 48,252,905 7,213,556 84,960,550 153,207,807 -- ----------- ----------- ------------ ------------ ---------- Net Assets Available for Plan Benefits at December 31, 1994.......................... $43,070,597 $6,644,385 $ 77,457,120 $156,074,850 $5,244,533 ========== ========== =========== =========== =========
See accompanying notes. 2 3
GROWTH EQUITIES INTERNATIONAL EMERGING MARKETS LONG-TERM VALUE LOAN FUND EQUITY FUND EQUITY FUND BOND FUND EQUITY FUND FUND TOTAL ------------- ------------- ---------------- ---------- ----------- ----------- ------------ -- -- -- -- -- -- $ 75,639,401 $11,346,461 $ 6,564,921 $8,281,240 -- -- -- 74,729,441 -- -- -- -- $7,269,675 -- 7,269,675 -- -- -- $2,510,083 -- -- 154,003,612 -- -- -- 25,772 3,802 -- 12,427,123 -- -- -- -- -- -- 14,790 -- -- -- -- -- $20,757,771 20,757,771 -- -- -- 232 19,070 -- 491,591 (13,565) (40,672) (2,778) 69,504 29,105 21,298 -- --------- -------- -------- -------- -------- --------- ---------- $11,332,896 $ 6,524,249 $8,278,462 $2,605,591 $7,321,652 $20,779,069 $345,333,404 ========= ======== ======== ======== ======== ========= ========== $ 1,717,993 $ 932,147 $1,073,194 $ 515,627 $1,020,659 -- $ 21,841,144 1,016,973 551,463 639,757 333,974 628,940 -- 14,223,146 ------------- ------------- ------------- ---------- ----------- ----------- ------------ 2,734,966 1,483,610 1,712,951 849,601 1,649,599 -- 36,064,290 54,489 28,316 41,182 40,657 43,185 -- 730,787 226,295 141,404 154,279 79,277 163,221 -- 2,386,700 623,393 387,977 441,438 204,290 387,851 $(9,628,603) -- 4,856 2,425 2,891 (824) 18,668 1,322,395 12,100,518 -- -- 29,585 123,967 114,218 -- 3,741,092 35,449 (38,140) 75,395 (151,504) (271,268) -- (2,273,628) 8,023,587 4,723,401 6,059,727 1,570,884 5,408,286 11,656,526 -- (369,331) (204,488) (238,447) (110,581) (191,794) (634,404) (19,110,798) (808) (256) (539) (176) (314) -- (3,530) ------------- ------------- ---------------- ---------- ----------- ----------- ------------ 11,332,896 6,524,249 8,278,462 2,605,591 7,321,652 2,715,914 33,635,431 -- -- -- -- -- 18,063,155 311,697,973 ------------- ------------- ---------------- ---------- ----------- ----------- ------------ $11,332,896 $ 6,524,249 $8,278,462 $2,605,591 $7,321,652 $20,779,069 $345,333,404 ============ =========== ================ ========== =========== ========== ===========
3 4 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES STATEMENT OF ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1993
S&P 500 SHORT TERM CHUBB INDEX INCOME CORPORATION FIXED LOAN FUND FUND STOCK FUND INCOME FUND FUND TOTAL ---------- ------------ ------------ ----------- ---------- ----------- Investments (Notes 1 and 3): Participation in the Master Trust Fund of The Chubb Corporation and its Subsidiaries and Affiliates............................ $45,424,846 $7,190,834 $82,866,228 $152,010,698 $23,916,446 $311,409,052 Contributions receivable from participants...... -- -- -- -- 288,921 288,921 Participants' transfers receivable (payable) between Funds......................................... 2,828,059 22,722 2,094,322 1,197,109 (6,142,212) -- ----------- ---------- ----------- ------------ ----------- ----------- Net Assets Available for Plan Benefits at December 31, 1993 (Note 4)............ $48,252,905 $7,213,556 $84,960,550 $153,207,807 $18,063,155 $311,697,973 =========== ========== =========== ============ =========== ============
See accompanying notes. 4 5 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 AND 1993 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment valuation The Plan's assets at December 31, 1994 are held by United States Trust Company of New York in a trust established effective January 1, 1994 for the benefit of the participants of the Plan (the "Trust Fund"). The Plan's assets at December 31, 1993 were represented by units of participation in the Profit Sharing division of the Master Trust Fund of The Chubb Corporation and its Subsidiaries and Affiliates (the "Master Trust Fund"). The carrying value of the units of participation in the Master Trust Fund was based upon the Plan's proportionate share of the total assets of the Master Trust Fund as reported by the fund trustee, Citibank, N.A. The Trust Fund's assets for 1994 and Master Trust Fund's assets for 1993 are valued as follows: - Marketable equity and debt securities traded on a national securities exchange are valued at the last reported sale price on the last business day of the year. Such securities traded in the over-the- counter market are valued at the closing bid price on the last business day of the calendar year. - Interests in commingled trust funds, mutual funds and pooled investment funds are valued at the redemption price established by the trustee or the investment manager of the respective fund. - Participants' notes are valued at the unpaid principal balances, with maturities ranging from one to ten years. Notes executed prior to January 1, 1984, bear interest equal to the annual rate of return of the Fixed Income Fund for the quarter preceding the quarter in which the loan is made, not to exceed the maximum rate permitted by applicable law. Notes executed during the period January 1, 1984 through September 30, 1989, bear interest at a rate which is one percent less than the 90-day Treasury Bill rate as established by the Federal Reserve Bank at its offering immediately preceding the valuation date next preceding the valuation date on which the loan is made, except that the rate shall not exceed the guaranteed annual rate of return of the Fixed Income Fund for the quarter ending on the applicable valuation date next preceding the valuation date on which the loan is made, nor the maximum rate permitted by applicable law. Notes executed during the period September 30, 1989 through March 20, 1994 bear interest at a rate which is equal to the prime rate charged by Citibank, N.A. as of the applicable valuation date next preceding the valuation date on which the loan is made, rounded up to the next whole integer, except that the rate shall not exceed the maximum rate permitted by applicable law. Notes executed after March 20, 1994 bear interest at a rate which is equal to the prime rate as reported in the Wall Street Journal on the last business day of the month next preceding the valuation date on which the loan is made, rounded up to the next whole integer, except that the rate shall not exceed the maximum rate permitted by applicable law. - The underlying investments of the Fixed Income Fund are contracts with insurance companies and banks under which each insurance company or bank agrees to pay a rate of interest equal to or in excess of the rate initially guaranteed for a specified period of time. These insurance contracts are fully benefit responsive and are valued at contract value. Contract value represents contributions to the fund plus interest accrued less redemptions. The interest rates for the calendar years 1994 and 1993 were 7.1% and 7.7%. These contracts are subject to certain restrictions or penalties in the event of early withdrawal or liquidation. 5 6 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1994 AND 1993 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED) Security transactions Purchases and sales of securities are recorded on trade dates. Gains or losses on the sale of securities are based on average cost. Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis. Administrative and investment management expenses All expenses related to the administration of the Plan and all fees paid to the trustee and other investment managers for the management of the Plan's investments, except for investment management expenses attributable to a certain Fixed Income Fund investment contract, are paid by The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates (the "Employers"). The Pension and Profit Sharing Committee of The Chubb Corporation is authorized to charge Participants account maintenance fees. Beginning in March 1995, certain trustee fees are being paid by the Plan. Income tax status The Internal Revenue Service ("IRS") has determined and informed the Company by letter dated December 11, 1986 that the Plan qualifies under Section 401(a) of the Internal Revenue Code ("IRC"), and therefore the trust established under the Plan is tax-exempt. The Plan has been amended since receiving the determination letter and an application for a new determination letter has been filed with the IRS. The Plan administrator and its counsel believe that the Plan is currently designed and being operated in compliance with applicable requirements of the IRC. 2. PLAN DESCRIPTION The Plan is a defined contribution plan. Generally, each employee is eligible to participate in the Plan either upon the completion of one year of service and the attainment of age 21 or the completion of two years of service. Under the Plan, a participant may elect to have part of his or her salary otherwise due from the Employer contributed to the Plan by such Employer on a pre-tax basis (the employer pay conversion contribution) or after tax basis (participant contribution). The Plan is funded on a bi-weekly basis. Pre-tax contributions are subject to an annual limitation, $9,240 in 1994 and $8,994 in 1993, which may be increased annually based on the Consumer Price Index. A participant's pre-tax pay conversion contributions are matched dollar for dollar up to the first 4% of compensation (the employer matching contribution). In addition, employees may make rollover contributions from other qualified plans. The Plan allows each participant the option of investing his or her own contribution and his or her share of the employer's matching contribution in several investment funds. Effective March 31, 1994, six additional investment funds were added to the Plan. Participants may, subject to limitations, transfer their investments between funds at their own request. The investments of the individual funds are managed by several outside investment managers, subject to the Plan's guidelines. Chubb Equity Managers, Inc., a subsidiary of the Chubb Corporation, is the investment manager of the Value Equity Fund. A separate account is maintained for each participant. Each participant employed prior to December 31, 1992 has a 100% vested nonforfeitable interest in all units credited to his or her account. A participant hired after December 31, 1992 is required to complete five years of service in order to have a 100% vested nonforfeitable interest in units credited to his or her account attributable to the employer matching 6 7 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1994 AND 1993 2. PLAN DESCRIPTION -- (CONTINUED) contribution and earnings on the employer matching contribution. Service with affiliated non-participating companies is considered in calculating vesting and participation service. Forfeited balances of terminated participants nonvested accounts are used to reduce future company contributions or pay plan expenses. A participant may withdraw any amount which does not exceed the aggregate current value of his or her own contributions, subject to certain limitations. In the event of financial hardship, there are provisions, subject to limitations and penalties, which will permit an active participant to withdraw certain other amounts from his or her account. All withdrawals must be in cash. Participants may obtain loans from the Plan pursuant to the provisions specified in the Plan. A participant to whom a loan is to be made must cancel an appropriate number of his or her units in one or more of the other funds for transfer to the Loan Fund. Loans are payable in equal installments representing a combination of interest and principal by withholding from the participant's biweekly paychecks, and the outstanding principal amounts of any loans can be prepaid on any applicable valuation date. In the event a participant has a loan outstanding under the Plan, various limitations exist on such participant's rights to receive further loans under the Plan and to receive payments in case of hardship in excess of a specified amount. The Employers retain the right to place a maximum on the aggregate amount of loans in order to avoid reducing the rate of return on investments in the Plan. Upon retirement, the balance in a participant's account is payable to him or her in a lump sum or in annual installments over 5, 10 or 15 years or over a period equal to his or her life expectancy or to the joint life expectancies of the participant and his or her spousal beneficiary. In addition to these options, a participant may elect to defer the lump sum payment or the commencement of annual installments until the day following any applicable valuation date, then elected by him or her, which is not later than the April 1 of the calendar year following the calendar year in which the participant attains age 70 1/2. In the event of termination of employment other than by reason of retirement or death, a participant will receive the balance in his or her separate account in a lump sum payment. However, if the value in the participant's account is greater than a certain limit, the participant may choose either to receive the lump sum distribution or to leave the units invested in the Plan until age 65, disability or death. If a participant dies, before or after retirement or after termination, any remaining balance in his or her account is paid to his or her estate or beneficiary under any of the following payment options: (a) lump sum, (b) installments as received by the participant prior to death, or (c) installment payments in accordance with the Plan, regardless of method received by participant prior to death. Upon request, any lump sum distribution to a participant or his or her beneficiary from The Chubb Corporation Stock Fund may be made in common stock of The Chubb Corporation in lieu of cash payments. While the Employers have not expressed any intent to terminate the Plan, they are free to do so at any time subject to the provisions of ERISA. In the event of such a termination, each affected participant is entitled to receive the value of his or her account. 3. INVESTMENTS The Trust Fund is managed by United States Trust Company of New York (the "Trustee"), a fiduciary with respect to the Plan under an agreement with the Employers. The Trust Fund's assets are held or accounted for by the Trustee under a trust agreement. The Trustee and certain investment managers have full 7 8 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1994 AND 1993 3. INVESTMENTS -- (CONTINUED) discretionary authority for the purchase and sale of investments subject to certain limitations on the composition of the portfolio as specified in the trust agreement. The following table presents the investments of the Trust Fund. Investments that individually represent 5 percent or more of the Plan's net assets are separately identified.
DECEMBER 31, 1994 ----------------------------- COST FAIR VALUE ------------ ------------ Fixed Income Securities Investments in Insurance and Bank Contracts................... $151,493,529 $151,493,529 Bond Mutual Fund.............................................. 2,655,980 2,510,083 ------------ ------------ Subtotal.............................................. $154,149,509 $154,003,612 ------------ ------------ The Chubb Corporation Common Stock.............................. $ 46,782,880 $ 75,639,401 ------------ ------------ Investments in Equities......................................... $ 7,675,519 $ 7,269,675 ------------ ------------ Mutual Funds BT Institutional Equity 500 Index Fund........................ $ 44,394,208 $ 43,266,526 Other......................................................... 31,572,664 31,462,915 ------------ ------------ Subtotal.............................................. $ 75,966,872 $ 74,729,441 ------------ ------------ Pooled Investments.............................................. $ 12,436,318 $ 12,441,913 ------------ ------------ Participant Loans (maturing from January 1995 to December 2004 with interest rates from 4.25% to 16.0%)...................... $ 20,757,771 $ 20,757,771 ------------ ------------ TOTAL................................................. $317,768,869 $344,841,813 =========== ===========
The Master Trust Fund was a commingled investment trust account managed by Citibank, N.A. (the "Bank"), a bank as defined in the Investment Advisers Act of 1940 and a fiduciary with respect to the Plan under an agreement with the Employers. The Master Trust Fund's assets are held by the Bank under a trust agreement. The Bank and certain investment managers have full discretionary authority for the purchase and sale of investments subject to certain limitations on the composition of the portfolio as specified in the Master Trust Agreement. Investments with a fair value of $12,427,123 (cost of $12,427,123) at December 31, 1994 represent shares in Pooled Investments sponsored by the Trustee, a party-in-interest. All Plan investments owned by the Master Trust Fund at December 31, 1993 are summarized as follows:
DECEMBER 31, 1993 --------------------------- COST FAIR VALUE ----------- ----------- Loan Fund: Commingled employee benefit trust short term investment fund..................................................... $ 7,582,140 $ 7,582,140 Participants' interest bearing notes -- principal balance... 16,325,786 16,325,786 Accrued interest............................................ 8,520 8,520 ----------- ----------- Sub-total................................................... $23,916,446 $23,916,446 ----------- -----------
8 9 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1994 AND 1993 3. INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1993 --------------------------- COST FAIR VALUE ----------- ----------- Fixed Income Fund: Commingled employee benefit trust short term investment fund..................................................... $ 34,714 $ 34,714 Guaranteed interest fund.................................... 151,975,937 151,975,937 Accrued interest............................................ 47 47 ----------- ----------- Sub-total................................................... $152,010,698 $152,010,698 ----------- ----------- S&P 500 Index Fund: Commingled employee benefit trust short term investment fund..................................................... $ 2,011 $ 2,011 Other commingled trust funds................................ 29,325,890 45,422,827 Accrued dividends and interest.............................. 8 8 ----------- ----------- Sub-total $29,327,909 $45,424,846.. ----------- ----------- Short Term Income Fund: Commingled employee benefit trust short term investment fund..................................................... $ 7,180,769 $ 7,180,769 Accrued interest............................................ 10,065 10,065 ----------- ----------- Sub-total................................................... $ 7,190,834 $ 7,190,834 ----------- ----------- Chubb Corporation Stock Fund: Commingled employee benefit trust short term investment fund..................................................... $ 118 $ 118 The Chubb Corporation Common Stock.......................... 50,071,000 82,411,063 Accrued dividends and interest.............................. 455,047 455,047 ----------- ----------- Sub-total................................................... $50,526,165 $82,866,228 ----------- ----------- Total.................................................... $262,972,052 $311,409,052 =========== ===========
The Plan is required to file annual reports with the Department of Labor on Form 5500, in which a different investment cost basis is used to record realized and unrealized gains and losses as compared to generally accepted accounting principles. 4. UNITS OF PARTICIPATION AND VALUES The interest of an employee in the investment chosen is represented by units of participation. The number and value of units at the quarterly valuation dates for the years ended December 31, 1994 and 1993 were as follows:
NUMBER OF NUMBER OF UNITS NET ASSET UNITS NET ASSET HELD BY VALUE HELD BY VALUE PARTICIPANTS PER UNIT PARTICIPANTS PER UNIT ------------- ---------- ------------- ---------- DECEMBER 31, 1994 DECEMBER 31, 1993 -------------------------- -------------------------- S&P 500 Index Fund............................................... 244,249.916 175.59467 278,705.646 173.13214 Short Term Income Fund........................................... 71,289.730 92.75478 80,745.230 89.33724 Chubb Corporation Stock Fund..................................... 193,872.418 398.23526 217,480.813 390.65768 Fixed Income Fund................................................ 3,164,973.450 49.08706 3,343,851.969 45.81776 Balanced Fund.................................................... 501,615.853 10.27100 -- -- Growth Equities Fund............................................. 1,126,924.695 10.05648 -- -- International Equity Fund........................................ 643,836.525 10.13339 -- -- Emerging Markets Equity Fund..................................... 764,713.240 10.82558 -- -- Long-term Bond Fund.............................................. 263,555.695 9.88630 -- -- Value Equity Fund................................................ 744,477.879 9.83462 -- --
9 10 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 1994 AND 1993 4. UNITS OF PARTICIPATION AND VALUES -- (CONTINUED)
NUMBER OF NUMBER OF UNITS NET ASSET UNITS NET ASSET HELD BY VALUE HELD BY VALUE PARTICIPANTS PER UNIT PARTICIPANTS PER UNIT ------------- ---------- ------------- ---------- SEPTEMBER 30, 1994 SEPTEMBER 30, 1993 -------------------------- -------------------------- S&P 500 Index Fund............................................... 243,073.037 175.41813 262,344.628 169.07857 Short Term Income Fund........................................... 71,763.765 91.65169 80,479.654 88.56631 Chubb Corporation Stock Fund..................................... 195,298.651 364.28714 212,111.125 420.11038 Fixed Income Fund................................................ 3,142,450.511 48.27128 3,249,258.163 45.02240 Balanced Fund.................................................... 503,397.117 10.25321 -- -- Growth Equities Fund............................................. 1,022,088.561 10.15275 -- -- International Equity Fund........................................ 577,883.927 10.34244 -- -- Emerging Markets Equity Fund..................................... 602,938.228 11.74300 -- -- Long-term Bond Fund.............................................. 241,972.018 9.90219 -- -- Value Equity Fund................................................ 712,829.163 10.18937 -- --
JUNE 30, 1994 JUNE 30, 1993 -------------------------- -------------------------- S&P 500 Index Fund............................................... 244,881.919 167.36232 253,192.945 164.83713 Short Term Income Fund........................................... 73,221.613 90.73606 79,660.920 87.82657 Chubb Corporation Stock Fund..................................... 195,042.393 389.46505 208,338.380 431.64504 Fixed Income Fund................................................ 3,164,165.966 47.44257 3,192,343.998 44.13235 Balanced Fund.................................................... 474,891.580 9.96839 -- -- Growth Equities Fund............................................. 969,625.731 9.67457 -- -- International Equity Fund........................................ 486,037.774 10.21187 -- -- Emerging Markets Equity Fund..................................... 483,622.384 10.60594 -- -- Long-term Bond Fund.............................................. 242,277.839 9.89120 -- -- Value Equity Fund................................................ 644,636.766 9.88052 -- --
MARCH 31, 1994 MARCH 31, 1993 -------------------------- -------------------------- S&P 500 Index Fund............................................... 251,570.210 166.69110 252,143.350 163.84696 Short Term Income Fund........................................... 72,875.001 89.97513 82,329.724 87.15872 Chubb Corporation Stock Fund..................................... 197,705.294 369.60422 201,173.466 465.11892 Fixed Income Fund................................................ 3,266,497.892 46.64270 3,221,217.901 43.30116 Balanced Fund.................................................... 401,651.822 10.00000 -- -- Growth Equities Fund............................................. 717,534.049 10.00000 -- -- International Equity Fund........................................ 353,664.738 10.00000 -- -- Emerging Markets Equity Fund..................................... 335,486.164 10.00000 -- -- Long-term Bond Fund.............................................. 187,190.755 10.00000 -- -- Value Equity Fund................................................ 506,147.059 10.00000 -- --
5. FUND BALANCES DUE PARTICIPANTS Amounts allocated to accounts of Participants who have withdrawn from participation in the Plan at December 31, 1994 were as follows: S&P 500 Index Fund........................................... $ 181,613 Short Term Income Fund....................................... 31,921 Chubb Corporation Stock Fund................................. 250,288 Fixed Income Fund............................................ 715,595 ---------- Total.............................................. $1,179,417 =========
For the purpose of preparing the Plan's Form 5500, the Department of Labor Rules and Regulations require that these amounts be reported as liabilities. Distributions to Participants on Form 5500 also differ for this reason. 10 11 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES ITEM 27A -- ASSETS HELD FOR INVESTMENT DECEMBER 31, 1994
NUMBER OF UNITS CONTRACT OR SECURITY DESCRIPTION OR SHARES COST FAIR VALUE - ---------------------------------------------------- ------------- ------------ ------------ Fixed Income Securities CNA Insurance Company............................. 1 $ 11,213,329 $ 11,213,329 Contract #13027, due in equal maturities on 9/30/99 and 12/31/99, at 7.83% Commonwealth Life Insurance Company............... 1 11,214,918 11,214,918 Contract #ADA00674FR, due in equal maturities on 9/30/99 and 12/31/99, at 7.89% Allstate Life Insurance Company................... 1 10,320,879 10,320,879 Contract #4833, due in equal maturities on 3/31/95 and 9/30/95, at 9.11% Hartford Life Insurance Company................... 1 8,515,679 8,515,679 Contract #GA9655, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.92% Hartford Life Insurance Company................... 1 11,708,168 11,708,168 Contract #GA9534, due 9/30/97, at 5.77% John Hancock Life Insurance Company............... 1 7,488,022 7,488,022 Contract #5715, due 3/31/95, at 8.91% JP Morgan Asset Management........................ 1 15,248,828 15,248,828 Contract #2015, due 9/30/96, at 6.90% JP Morgan Asset Management........................ 1 15,237,912 15,237,912 Contract #2033, due in equal maturities on 3/31/96 and 3/31/97, at 6.59% Pacific Mutual Life Insurance Company............. 1 7,946,744 7,946,744 Contract #G25863.01, due 9/30/95, at 8.25% Provident National Assurance Company.............. 1 864,192 864,192 Contract #027-04079, due in equal maturities on 10/1/95 and 10/1/96, at 8.75% Provident National Assurance Company.............. 1 8,521,364 8,521,364 Contract #627-05490, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.97% Prudential Asset Management....................... 1 7,631,116 7,631,116 Contract #6529-212, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 6.04% Principal Mutual Life Insurance Company........... 1 7,073,285 7,073,285 Contract #S-15670, due 3/31/95, at 8.20% Prudential Asset Management....................... 1 13,829,930 13,829,930 Contract #6529-213, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.37% Pacific Mutual Life Insurance Company............. 1 8,511,178 8,511,178 Contract #G25863.02, due in equal maturities on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at 5.90%
11 12 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES -- (CONTINUED) ITEM 27A -- ASSETS HELD FOR INVESTMENT DECEMBER 31, 1994
NUMBER OF UNITS CONTRACT OR SECURITY DESCRIPTION OR SHARES COST FAIR VALUE - ---------------------------------------------------- ------------- ------------ ------------ Pacific Mutual Life Insurance Company............. 1 $ 6,167,985 $ 6,167,985 Contract #G25863.03, due 6/30/99, at 7.34% MAS Funds Fixed Income Portfolio.................. 237,023.91 2,655,980 2,510,083 ------------ ------------ Subtotal....................................... $154,149,509 $154,003,612 ------------ ------------ The Chubb Corporation Common Stock.................. 977,569 $ 46,782,880 $ 75,639,401 ------------ ------------ Investments In Equities (Common stock unless otherwise noted) American Home Products Corp....................... 3,700 $ 214,357 $ 232,175 Anheuser Busch Cos Inc............................ 3,900 204,520 198,413 Avnet Inc......................................... 5,900 221,672 218,300 Baxter International Inc.......................... 7,200 166,129 203,400 Berkley W R Corp.................................. 5,500 199,604 206,250 Boeing Co......................................... 3,900 177,876 183,300 Burlington Industries Inc......................... 21,900 285,560 216,263 Burlington Northern Inc........................... 3,000 150,414 144,375 Chrysler Corp..................................... 5,000 242,863 245,000 Compaq Computer Corp.............................. 6,000 201,825 237,000 Cummins Engine Co Inc. ........................... 4,500 222,436 203,625 E Systems Inc..................................... 5,200 222,234 216,450 Exxon Corp........................................ 3,500 204,592 212,625 Fingerhut Cos Inc. ............................... 9,200 262,883 142,600 First Chicago Corp................................ 3,900 189,672 186,225 Firstfed Michigan Corp............................ 10,300 238,082 211,150 Fleet Mortgage Group Inc.......................... 13,300 174,615 264,338 General Motors Corp............................... 4,100 230,496 172,713 General Motors Corp Class H....................... 5,800 200,694 202,275 Inco Ltd.......................................... 7,600 208,843 217,550 K Mart Corp....................................... 15,200 253,601 197,600 Keycorp........................................... 8,600 250,709 215,000 Mellon Bank Corp.................................. 6,600 239,107 202,125 Merrill Lynch & Co Inc............................ 4,300 153,214 153,725 National Health Laboratories Holdings Inc......... 17,700 227,391 234,523 Offshore Logistics Inc............................ 16,900 232,708 219,700 Old Republic International Corp................... 9,300 210,471 197,625 Owens Corning Fiberglass Corp..................... 6,000 207,799 191,250 Paine Webber Group Inc............................ 12,300 204,945 184,500 Philip Morris Cos Inc............................. 3,800 195,122 218,500 Polaroid Corp..................................... 6,100 197,297 198,250 Progressive Corp Ohio............................. 5,600 165,334 196,000 Sothebys Holdings Inc Class A..................... 17,000 253,307 195,500
12 13 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES -- (CONTINUED) ITEM 27A -- ASSETS HELD FOR INVESTMENT DECEMBER 31, 1994
NUMBER OF UNITS CONTRACT OR SECURITY DESCRIPTION OR SHARES COST FAIR VALUE - ---------------------------------------------------- ------------- ------------ ------------ Telefonos de Mexico S.A. de C.V. ................. 3,300 $ 190,003 $ 135,300 Toll Bros Inc..................................... 20,500 263,275 205,000 Whirlpool Corp.................................... 4,200 211,869 211,050 ------------ ------------ Subtotal....................................... $ 7,675,519 $ 7,269,675 ------------ ------------ Mutual Funds World Funds Inc Newport Tiger Fund................ 766,781.50 $ 8,311,270 $ 8,281,240 BT Institutional 500 Index Fund................... 4,144,303.29 44,394,208 43,266,526 Columbia Balance Fund............................. 304,993.81 5,294,943 5,270,293 Fidelity Contrafund Fund.......................... 374,718.00 11,350,600 11,346,461 Morgan Stanley Institutional Fund, Inc.-Active Country Allocation Fund........................ 563,996.64 6,615,851 6,564,921 ------------ ------------ Subtotal....................................... $ 75,966,872 $ 74,729,441 ------------ ------------ Pooled Investments EGSF Venture Capital-Citibank Fund................ 28.07 $ 9,195 $ 14,790 UST Master Government Money Fund.................. 12,427,123.00 12,427,123 12,427,123 ------------ ------------ Subtotal....................................... $ 12,436,318 $ 12,441,913 ------------ ------------ Participant Loans (Maturities January 1995 to December 2004, Rates 4.25% to 16%)................ 20,757,771.00 $ 20,757,771 $ 20,757,771 ------------ ------------ TOTAL........................................ $317,768,869 $344,841,813 =========== ===========
13 14 CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES ITEM 27D -- SCHEDULE OF REPORTABLE TRANSACTIONS DECEMBER 31, 1994
SALE OR COST OF NET NUMBER OF PURCHASE REDEMPTION ASSETS GAIN TRANSACTIONS PRICE PRICE SOLD (LOSS) ------------ ----------- ----------- ----------- ----------- Category (i) -- individual transactions in excess of 5% of plan assets: BT Pyramid Equity Index Fund... 1 -- $45,678,486 $29,310,945 $16,367,541 Category (iii) -- Series of transactions in excess of 5% of plan assets: UST Master Government Money Fund........................ 1,077 $77,229,637 $64,802,514 $64,802,514 -- Units of Participation in United States Trust Short Term Fixed Income Fund...... 59 $38,116,897 $38,116,897 $38,116,897 -- Participant Loans.............. 278 $15,372,372 $11,558,263 $11,558,263 -- BT Institutional Equity 500 Index Fund.................. 208 $52,976,421 $ 8,356,473 $ 8,582,213 $ (225,740) CNA Insurance Co Contract #12386(A) and (B)......................... 21 $ 1,132,455 $24,589,135 $24,589,135 --
There were no category (ii) or (iv) reportable transactions during 1994. 14 15 REPORT OF INDEPENDENT AUDITORS The Pension and Profit Sharing Committee Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates We have audited the accompanying statements of Net Assets Available for Plan Benefits of the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates as of December 31, 1994 and 1993, and the related Statement of Changes in Net Assets Available for Plan Benefits for the year ended December 31, 1994. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the Net Assets Available for Plan Benefits of the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates at December 31, 1994 and 1993 and the Changes in its Net Assets Available for Plan Benefits for the year ended December 31, 1994, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of December 31, 1994, and reportable transactions for the year then ended, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the basic financial statements. The Fund Information in the Statement of Net Assets Available for Plan Benefits and the Statement of Changes in Net Assets Available for Plan Benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. ERNST & YOUNG LLP New York, New York June 16, 1995 ------------------------ CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statements (Form S-8: No. 33-12208, No. 33-29185, No. 33-30020, No. 33-49230 and No. 33-49232) pertaining to the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates and in the related Prospectuses of our report dated June 16, 1995 with respect to the financial statements and schedules of the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates included in this Annual Report (Form 11-K) for the year ended December 31, 1994. ERNST & YOUNG LLP New York, New York June 26, 1995 15 16 SIGNATURES PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE PENSION AND PROFIT SHARING COMMITTEE OF THE CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. CAPITAL ACCUMULATION PLAN OF THE CHUBB CORPORATION, CHUBB & SON INC. and PARTICIPATING AFFILIATES By: /s/ Donald B. Lawson ---------------------------------------- DONALD B. LAWSON, A MEMBER OF THE PENSION AND PROFIT SHARING COMMITTEE Dated: June 27, 1995 -----END PRIVACY-ENHANCED MESSAGE-----