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) April 24, 2014

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):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Press release dated April  24, 2014 (furnished pursuant to Item  2.02 of Form 8-K)

Supplementary Investor Information Report (furnished pursuant to Item 2.02 of Form 8-K)

Item 2.02 Results of Operations and Financial Condition.

The following information, including the text of the exhibits attached hereto, is furnished pursuant to this Item 2.02 of Form 8-K. On April 24, 2014, The Chubb Corporation (Chubb) issued a press release announcing its financial results for the quarter ended March 31, 2014. On April 24, 2014, Chubb also posted on its web site at www.chubb.com the Supplementary Investor Information Report (SIIR) relating to its 2014 first 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 furnished as Exhibits 99.1 and 99.2, respectively, to this Form 8-K. In its press release, the SIIR and the conference call to discuss its 2014 first quarter results, scheduled to be webcast at 5:00 P.M. on April 24, 2014, 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 prepared in accordance with accounting principles generally accepted in the United States.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press release dated April 24, 2014 (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: April 24, 2014	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

DATED APRIL 24, 2014

Exhibit No.	Description
99.1	Press release dated April 24, 2014 (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

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 First Quarter Net Income per Share of $1.80;

Operating Income per Share Is $1.50;

Combined Ratio of 93.2% Includes 6.6 Point Impact of Catastrophes

WARREN, New Jersey, April 24, 2014 — The Chubb Corporation [NYSE: CB] today reported that net income in the first quarter of 2014 was $449 million, compared to $656 million in the first quarter of 2013. First quarter net income per share was $1.80 in 2014 and $2.48 in 2013.

Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, was $374 million in the first quarter of 2014 and $566 million in the first quarter of 2013. First quarter operating income per share was $1.50 in 2014 and $2.14 in 2013.

Chubb’s results for the first quarter of 2014 were adversely affected by catastrophe losses of $199 million before tax ($0.52 per share after tax) related mostly to severe winter weather in the United States. In the first quarter of 2013, the adverse impact of catastrophes was $18 million before tax ($0.04 per share after tax).

The first quarter combined loss and expense ratio was 93.2% in 2014 and 84.6% in 2013. The impact of catastrophes on the first quarter combined ratio was 6.6 percentage points in 2014 and 0.6 points in 2013. Excluding the impact of catastrophes, the first quarter combined ratio was 86.6% in 2014 and 84.0% in 2013. The expense ratio for the first quarter was 32.1% in 2014 and 32.3% in 2013.

Net written premiums for the first quarter of 2014 were $3.1 billion, flat compared to the first quarter of 2013. Excluding the effect of foreign currency translation, premiums were up approximately 1%. Premiums were up 3% in the U.S. and down 6% outside the U.S. (down 4% in local currencies).

Property and casualty investment income after taxes for the first quarter declined 4% to $277 million in 2014 from $288 million in 2013.

Net income for the first quarter of 2014 reflected net realized investment gains of $116 million before tax ($0.30 per share after tax). Net income for the first quarter of 2013 reflected net realized investment gains of $138 million before tax ($0.34 per share after tax).

“Chubb produced solid results in the first quarter of 2014,” said John D. Finnegan, Chairman, President and Chief Executive Officer. “Results were adversely impacted by several factors, including catastrophe and non-catastrophe losses related to severe winter weather in the United States. Chubb also suffered an unusually high level of Homeowners fire losses after many quarters with relatively benign loss experience. Although catastrophe losses alone had an adverse impact of $0.52 per share in the first quarter, we still generated operating income of $1.50 per share and net income of $1.80 per share, reflecting a combined ratio of 86.6% excluding catastrophes,” he said.

“We remain encouraged by the mid-to-high-single-digit increases in our rate change metrics that we achieved in all of our business units during the first quarter, while enjoying an overall increase in renewal retention,” said Mr. Finnegan.

During the first quarter of 2014, Chubb repurchased approximately 4.7 million shares of its common stock at a total cost of $409 million (an average cost per share of $86.73). As of March 31, 2014, there was $1.2 billion available for share repurchases under the current authorization.

Average diluted shares outstanding for the first quarter were 249.2 million in 2014 and 264.8 million in 2013.

Book value per share was $66.36 at March 31, 2014, compared to $61.79 at March 31, 2013 and $64.83 at December 31, 2013.

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First Quarter Operations Review

Chubb Personal Insurance (CPI) net written premiums increased 3% in the first quarter to $1.0 billion. CPI’s combined ratio for the quarter was 101.8%, compared to 87.0% in the first quarter of 2013. The first quarter impact of catastrophes accounted for 11.2 percentage points of the combined ratio in 2014 and 3.9 points in 2013. Excluding the impact of catastrophes, CPI’s first quarter combined ratio was 90.6% in 2014 and 83.1% in 2013.

Net written premiums for Homeowners increased 4%, and the combined ratio was 104.9%. The impact of catastrophes in the first quarter accounted for 17.9 percentage points of the Homeowners combined ratio. Excluding the impact of catastrophes, the combined ratio for Homeowners was 87.0%. Personal Automobile premiums declined 2%, and the combined ratio was 101.4%. For Other Personal lines, premiums increased 3% and the combined ratio was 92.4%.

Chubb Commercial Insurance (CCI) net written premiums declined 1% in the first quarter to $1.4 billion. The combined ratio for the quarter was 88.5% in 2014 and 81.9% in 2013. The impact of catastrophes on the CCI combined ratio in the first quarter of 2014 was 6.1 percentage points. The impact of catastrophes in the first quarter of 2013 improved CCI’s combined ratio by 1.7 points. Excluding the impact of catastrophes, CCI’s first quarter combined ratio was 82.4% in 2014 and 83.6% in 2013.

In the United States, average first quarter CCI renewal rates increased 5%, renewal premium retention was 85% and the ratio of new to lost business was 0.9 to 1.

Chubb Specialty Insurance (CSI) net written premiums declined 1% in the first quarter to $624 million. The combined ratio for CSI was 88.9%, compared to 87.4% in the first quarter of 2013.

Professional Liability (PL) net written premiums grew 1%, and the combined ratio was 84.6%. In the United States, average first quarter renewal rates for PL increased 7%, renewal premium retention was 85% and the ratio of new to lost business was 0.9 to 1.

Surety net written premiums were down 13%, and the combined ratio was 122.9% driven by one large loss.

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

Chubb’s senior management will discuss the company’s first quarter performance with investors and analysts today, April 24th, 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.

About Chubb

Since 1882, members of the Chubb Group of Insurance Companies have provided property and casualty insurance products to customers around the globe. These products are offered through a worldwide network of independent agents and brokers. The Chubb Group of Insurance Companies is known for financial strength, underwriting and loss-control expertise, tailoring products for the needs of high-net-worth individuals and commercial customers in niche markets and select industry segments, and outstanding claim service.

The Chubb Group of Insurance Companies is the marketing term used to describe several separately incorporated insurance companies under the common ownership of The Chubb Corporation. The Chubb Corporation is listed on the New York Stock Exchange [NYSE: CB] and, together with its subsidiaries, employs approximately 10,200 people throughout North America, Europe, Latin America, Asia and Australia. For more information regarding The Chubb Corporation, including a listing of the insurers in the Chubb Group of Insurance Companies, visit www.chubb.com.

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

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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, certain 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 results because it reflects the impact of any change in the proportion of tax exempt investment income to total investment income 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.

5

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 Foreign Currency Translation:

Management uses net written premiums growth (decrease) excluding the impact of foreign currency translation, 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 international business is transacted. The impact of foreign currency translation is excluded as exchange rates may fluctuate significantly and the effect of fluctuations could distort the analysis of trends. When excluding the impact of foreign currency translation, management uses the same exchange rate to translate each foreign currency denominated net written premium amount in both periods.

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FORWARD-LOOKING INFORMATION

In the conference call identified above and other communications, we may make statements regarding our results of operations, financial condition and other matters that are “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements are made pursuant to the safe harbor provisions of the PSLRA. Forward-looking statements frequently can be identified by words such as “believe,” “expect,” “anticipate,” “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, economic and market conditions, particularly in the jurisdictions in which we operate and/or invest, including:

— changes in credit ratings, 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;

• the effects of the outbreak or escalation of war or hostilities;

• the occurrence of terrorist attacks, including any nuclear, biological, chemical or radiological events;

• 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 at acceptable rates;

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

7

• 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; and

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

• 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 or changes to our estimates (or the assessments of rating agencies and other third parties) of our potential exposure to such events;

• 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 we insure, particularly with respect to our lines of business that have a longer time span, or tail, between the incidence of a loss and the settlement of the claim;

• the impact of legislative, regulatory, judicial and similar developments on companies we insure, particularly with respect to our longer tail lines of business;

• the impact of legislative, regulatory, judicial and similar developments on our business, including those relating to insurance industry reform, terrorism, catastrophes, the financial markets, solvency standards, capital requirements, accounting guidance and taxation;

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

• the ability of our subsidiaries to pay us dividends;

• our plans to repurchase shares of our common stock, including as a result of changes in:

— our financial position and financial results;

— our capital position and/or capital adequacy levels required to maintain our existing ratings from independent rating agencies;

— our share price;

— investment opportunities;

— opportunities to profitably grow our property and casualty insurance business; and

— corporate and regulatory requirements; and

• 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.

8

THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA

(Unaudited)

	Three Months Ended March  31
	2014			2013
	(in millions)
PROPERTY AND CASUALTY INSURANCE
Underwriting
Net Premiums Written	$	3,062		$	3,057
Increase in Unearned Premiums		(33	)		(53	)
Premiums Earned		3,029			3,004
Losses and Loss Expenses		1,845			1,568
Operating Costs and Expenses		979			983
Increase in Deferred Policy Acquisition Costs		(13	)		(41	)
Dividends to Policyholders		10			9
Underwriting Income		208			485
Investments
Investment Income Before Expenses		351			363
Investment Expenses		10			12
Investment Income		341			351
Other Income (Charges)		(2	)		5
Property and Casualty Income		547			841
CORPORATE AND OTHER		(60	)		(63	)
CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX		487			778
Federal and Foreign Income Tax		113			212
CONSOLIDATED OPERATING INCOME		374			566
REALIZED INVESTMENT GAINS AFTER INCOME TAX		75			90
CONSOLIDATED NET INCOME	$	449		$	656
PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX	$	277		$	288

9

	Three Months Ended March  31
	2014			2013
OUTSTANDING SHARE DATA
(in millions)
Average Common and Potentially Dilutive Shares		249.2			264.8
Actual Common Shares at End of Period		244.5			259.2
DILUTED EARNINGS PER SHARE DATA
Operating Income	$	1.50		$	2.14
Realized Investment Gains		.30			.34
Net Income	$	1.80		$	2.48
Effect of Catastrophes	$	(.52	)	$	(.04	)

	Mar. 31 2014		Dec. 31 2013		Mar. 31 2013
BOOK VALUE PER COMMON SHARE	$	66.36	$	64.83	$	61.79
BOOK VALUE PER COMMON SHARE,
with Available-for-Sale Fixed Maturities at Amortized Cost		62.39		61.86		55.57

PROPERTY AND CASUALTY UNDERWRITING RATIOS

THREE MONTHS ENDED MARCH 31

	2014			2013
Losses and Loss Expenses to Premiums Earned		61.1	%		52.3	%
Underwriting Expenses to Premiums Written		32.1			32.3
Combined Loss and Expense Ratio		93.2	%		84.6	%
Effect of Catastrophes on Combined Loss and Expense Ratio		6.6	%		0.6	%

PROPERTY AND CASUALTY LOSSES AND LOSS EXPENSES COMPONENTS

THREE MONTHS ENDED MARCH 31

	2014		2013
	(in millions)
Paid Losses and Loss Expenses	$	1,794	$	1,838
Increase (Decrease) in Unpaid Losses and Loss Expenses		51		(270	)
Total Losses and Loss Expenses	$	1,845	$	1,568

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PROPERTY AND CASUALTY PRODUCT MIX

THREE MONTHS ENDED MARCH 31

	Net Premiums Written						Combined Loss and Expense Ratios
						% Increase (Decrease)
	2014		2013				2014			2013
	(in millions)
Personal Insurance
Automobile	$	173	$	176		(2)%		101.4	%		94.0	%
Homeowners		592		570		4		104.9			82.5
Other		248		241		3		92.4			94.0
Total Personal		1,013		987		3		101.8			87.0
Commercial Insurance
Multiple Peril		261		272		(4)		91.8			83.4
Casualty		446		448		—		89.7			93.2
Workers’ Compensation		310		299		4		84.0			89.0
Property and Marine		408		421		(3)		89.1			64.7
Total Commercial		1,425		1,440		(1)		88.5			81.9
Specialty Insurance
Professional Liability		552		549		1		84.6			92.4
Surety		72		83		(13)		122.9			50.7
Total Specialty		624		632		(1)		88.9			87.4
Total Insurance		3,062		3,059		—		93.2			84.7
Reinsurance Assumed		—		(2	)	*		*			*
Total	$	3,062	$	3,057		—		93.2			84.6

* The change in net premiums written and the combined loss and expense ratios are no longer presented for the Reinsurance Assumed business since it is in runoff.

11

EX-99.2

Exhibit 99.2

The	Supplementary	March 31, 2014
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

MARCH 31, 2014

	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	6-10
Definitions of Key Terms	11-12

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

(in millions, except per share amounts)

	March 31 2014						December 31 2013
				% of Total						% of Total
Invested Assets (at carrying value)
Short Term Investments	$	1,693			4	%	$	2,114			5	%
Fixed Maturities
Tax Exempt		18,784			44			18,421			43
Taxable		19,041			44			18,670			44
Equity Securities		1,863			4			1,810			4
Other Invested Assets		1,555			4			1,598			4
Total Invested Assets	$	42,936			100	%	$	42,613			100	%
Unrealized Appreciation of Investments
Fixed Maturities	$	1,494					$	1,132
Equity Securities		752						753
		2,246						1,885
Deferred Income Tax Liability		786						660
	$	1,460					$	1,225
Capitalization
Long Term Debt	$	3,300					$	3,300
Shareholders’ Equity		16,226						16,097
Total Capitalization	$	19,526					$	19,397
Debt as a Percentage of Total Capitalization		16.9	%					17.0	%
Actual Common Shares Outstanding		244.5						248.3
Book Value Per Common Share	$	66.36					$	64.83
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	62.39					$	61.86

Page 1 of 12

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

(dollars in millions, except per share amounts)

	Three Months Ended March 31, 2014		From December 2005 to March 31, 2014
Cost of Shares Repurchased	$	409	$	12,323
Average Cost Per Share	$	86.73	$	56.84
Shares Repurchased		4,720,726		216,793,660

During the period from December 2005 through December 2010, the Board of Directors authorized the repurchase of a total of 185 million shares of the Corporation’s common stock. No shares remain under these repurchase authorizations.

In January 2012, the Board of Directors authorized the repurchase of up to $1.2 billion of the Corporation’s common stock. In January 2013, the Board of Directors authorized the repurchase of up to $1.3 billion of the Corporation’s common stock, which authorization replaced the January 2012 authorization. No shares remain under this authorization. In January 2014, the Board of Directors authorized the repurchase of up to $1.5 billion of the Corporation’s common stock. The January 2014 authorization has no expiration date and, as of March 31, 2014, approximately $1,198 million remained under this authorization.

Page 2 of 12

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

CORPORATE

	Cost or Amortized Cost				Carrying Value (a)
	Mar. 31 2014		Dec. 31 2013		Mar. 31 2014		Dec. 31 2013
	(in millions)
Short Term Investments	$	829	$	864	$	829	$	864
Taxable Fixed Maturities		1,149		1,115		1,168		1,130
Equity Securities		—		—		2		2
TOTAL	$	1,978	$	1,979	$	1,999	$	1,996

PROPERTY AND CASUALTY

	Cost or Amortized Cost				Carrying Value (a)
	Mar. 31 2014		Dec. 31 2013		Mar. 31 2014		Dec. 31 2013
	(in millions)
Short Term Investments	$	864	$	1,250	$	864	$	1,250
Fixed Maturities
Tax Exempt		17,923		17,808		18,784		18,421
Taxable		17,259		17,036		17,873		17,540
Equity Securities		1,111		1,057		1,861		1,808
Other Invested Assets		1,555		1,598		1,555		1,598
TOTAL	$	38,712	$	38,749	$	40,937	$	40,617

(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 the Corporation’s equity in the net assets of the partnerships.

Page 3 of 12

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES

	Three Months Ended March 31
	2014			2013
	(in millions)
CORPORATE INVESTMENT INCOME	$	4		$	5
PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	166		$	177
Taxable Interest		104			105
Other		14			14
Investment Expenses		(7	)		(8	)
TOTAL	$	277		$	288
Effective Tax Rate		18.8	%		17.9	%
After-Tax Annualized Yield		2.80	%		2.93	%

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

	Mar. 31 2014		Dec. 31 2013		Mar. 31 2013
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	14,950	$	15,024	$	14,730
Rolling Year Statutory Net Premiums Written	$	12,222	$	12,214	$	11,970
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		0.82:1		0.81:1		0.81:1

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

Page 4 of 12

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES

THREE MONTHS ENDED MARCH 31, 2014

	Net Unpaid Losses										All Other
	Mar. 31 2014		Dec. 31 2013		Increase (Decrease)			IBNR Increase (Decrease)			Unpaid Losses Increase (Decrease)
	(in millions)
Personal Insurance
Automobile	$	391	$	390	$	1		$	(4	)	$	5
Homeowners		809		715		94			47			47
Other		976		968		8			10			(2	)
Total Personal		2,176		2,073		103			53			50
Commercial Insurance
Multiple Peril		1,755		1,745		10			21			(11	)
Casualty		6,552		6,576		(24	)		68			(92	)
Workers’ Compensation		2,819		2,793		26			(1	)		27
Property and Marine		875		886		(11	)		14			(25	)
Total Commercial		12,001		12,000		1			102			(101	)
Specialty Insurance
Professional Liability		6,815		6,889		(74	)		49			(123	)
Surety		81		71		10			(1	)		11
Total Specialty		6,896		6,960		(64	)		48			(112	)
Total Insurance		21,073		21,033		40			203			(163	)
Reinsurance Assumed		297		311		(14	)		1			(15	)
Total	$	21,370	$	21,344	$	26		$	204		$	(178	)

Page 5 of 12

THE CHUBB CORPORATION - WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013

(DOLLARS IN MILLIONS)

	Personal Automobile						Homeowners						Other Personal						Total Personal
	2014			2013			2014			2013			2014			2013			2014			2013
Net Premiums Written	$	173		$	176		$	592		$	570		$	248		$	241		$	1,013		$	987
Decrease (Increase) in Unearned Premiums		5			(4	)		74			69			(16	)		(21	)		63			44
Net Premiums Earned		178			172			666			639			232			220			1,076			1,031
Net Losses Paid		121			107			378			475			112			110			611			692
Increase (Decrease) in Outstanding Losses		4			—			99			(174	)		8			10			111			(164	)
Net Losses Incurred		125			107			477			301			120			120			722			528
Expenses Incurred		54			56			197			202			101			95			352			353
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	(1	)	$	9		$	(8	)	$	136		$	11		$	5		$	2		$	150
Ratios After Dividends to Policyholders:
Loss		70.2	%		62.2	%		71.6	%		47.1	%		51.7	%		54.6	%		67.1	%		51.2	%
Expense		31.2			31.8			33.3			35.4			40.7			39.4			34.7			35.8
Combined		101.4	%		94.0	%		104.9	%		82.5	%		92.4	%		94.0	%		101.8	%		87.0	%
Premiums Written as a % of Total		5.7	%		5.8	%		19.3	%		18.6	%		8.1	%		7.9	%		33.1	%		32.3	%

Page 6 of 12

THE CHUBB CORPORATION - WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013

(DOLLARS IN MILLIONS)

													Commercial						Commercial
	Commercial						Commercial						Workers’						Property						Total
	Multiple Peril						Casualty						Compensation						and Marine						Commercial
	2014			2013			2014			2013			2014			2013			2014			2013			2014			2013
Net Premiums Written	$	261		$	272		$	446		$	448		$	310		$	299		$	408		$	421		$	1,425		$	1,440
Decrease (Increase) in Unearned Premiums		16			7			(40	)		(36	)		(42	)		(49	)		(59	)		(54	)		(125	)		(132	)
Net Premiums Earned		277			279			406			412			268			250			349			367			1,300			1,308
Net Losses Paid		130			153			269			226			136			114			209			296			744			789
Increase (Decrease) in Outstanding Losses		14			(29	)		(15	)		44			24			49			(11	)		(177	)		12			(113	)
Net Losses Incurred		144			124			254			270			160			163			198			119			756			676
Expenses Incurred		104			106			121			124			67			62			132			136			424			428
Dividends Incurred		—			—			—			—			9			9			—			—			9			9
Statutory Underwriting Income (Loss)	$	29		$	49		$	31		$	18		$	32		$	16		$	19		$	112		$	111		$	195
Ratios After Dividends to Policyholders:
Loss		52.0	%		44.4	%		62.6	%		65.5	%		61.8	%		67.6	%		56.7	%		32.4	%		58.6	%		52.0	%
Expense		39.8			39.0			27.1			27.7			22.2			21.4			32.4			32.3			29.9			29.9
Combined		91.8	%		83.4	%		89.7	%		93.2	%		84.0	%		89.0	%		89.1	%		64.7	%		88.5	%		81.9	%
Premiums Written as a % of Total		8.5	%		8.9	%		14.6	%		14.6	%		10.1	%		9.8	%		13.3	%		13.8	%		46.5	%		47.1	%

Page 7 of 12

THE CHUBB CORPORATION - WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013

(DOLLARS IN MILLIONS)

	Professional												Total
	Liability						Surety						Specialty
	2014			2013			2014			2013			2014			2013
Net Premiums Written	$	552		$	549		$	72		$	83		$	624		$	632
Decrease (Increase) in Unearned Premiums		28			35			1			(1	)		29			34
Net Premiums Earned		580			584			73			82			653			666
Net Losses Paid		382			340			43			9			425			349
Increase (Decrease) in Outstanding Losses		(69	)		21			11			(1	)		(58	)		20
Net Losses Incurred		313			361			54			8			367			369
Expenses Incurred		169			168			34			34			203			202
Dividends Incurred		—			—			1			—			1			—
Statutory Underwriting Income (Loss)	$	98		$	55		$	(16	)	$	40		$	82		$	95
Ratios After Dividends to Policyholders:
Loss		54.0	%		61.8	%		75.0	%		9.7	%		56.3	%		55.4	%
Expense		30.6			30.6			47.9			41.0			32.6			32.0
Combined		84.6	%		92.4	%		122.9	%		50.7	%		88.9	%		87.4	%
Premiums Written as a % of Total		18.0	%		18.0	%		2.4	%		2.7	%		20.4	%		20.7	%

Page 8 of 12

THE CHUBB CORPORATION - WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013

(DOLLARS IN MILLIONS)

	Total Insurance						Reinsurance Assumed						Worldwide Total
	2014			2013			2014			2013			2014			2013
Net Premiums Written	$	3,062		$	3,059		$	—		$	(2	)	$	3,062		$	3,057
Decrease (Increase) in Unearned Premiums		(33	)		(54	)		—			1			(33	)		(53	)
Net Premiums Earned		3,029			3,005			—			(1	)		3,029			3,004
Net Losses Paid		1,780			1,830			14			8			1,794			1,838
Increase (Decrease) in Outstanding Losses		65			(257	)		(14	)		(13	)		51			(270	)
Net Losses Incurred		1,845			1,573			—			(5	)		1,845			1,568
Expenses Incurred		979			983			—			—			979			983
Dividends Incurred		10			9			—			—			10			9
Statutory Underwriting Income	$	195		$	440		$	—		$	4			195			444
Increase in Deferred Acquisition Costs														13			41
GAAP Underwriting Income													$	208		$	485
Ratios After Dividends to Policyholders:
Loss		61.1	%		52.5	%		*	%		*	%		61.1	%		52.3	%
Expense		32.1			32.2			*			*			32.1			32.3
Combined		93.2	%		84.7	%		*	%		*	%		93.2	%		84.6	%
Premiums Written as a % of Total		100.0	%		100.1	%		0.0	%		(0.1	)%		100.0	%		100.0	%

* Combined, loss and expense ratios are no longer presented for the Reinsurance Assumed business since it is in runoff.

Page 9 of 12

THE CHUBB CORPORATION - WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013

(DOLLARS IN MILLIONS)

	United States						Outside the United States						Worldwide Total
	2014			2013			2014			2013			2014			2013
Net Premiums Written	$	2,199		$	2,138		$	863		$	919		$	3,062		$	3,057
Decrease (Increase) in Unearned Premiums		92			89			(125	)		(142	)		(33	)		(53	)
Net Premiums Earned		2,291			2,227			738			777			3,029			3,004
Net Losses Paid		1,344			1,488			450			350			1,794			1,838
Increase (Decrease) in Outstanding Losses		89			(353	)		(38	)		83			51			(270	)
Net Losses Incurred		1,433			1,135			412			433			1,845			1,568
Expenses Incurred		661			665			318			318			979			983
Dividends Incurred		10			9			—			—			10			9
Statutory Underwriting Income	$	187		$	418		$	8		$	26			195			444
Increase in Deferred Acquisition Costs														13			41
GAAP Underwriting Income													$	208		$	485
Ratios After Dividends to Policyholders:
Loss		62.8	%		51.2	%		55.8	%		55.7	%		61.1	%		52.3	%
Expense		30.2			31.2			36.8			34.6			32.1			32.3
Combined		93.0	%		82.4	%		92.6	%		90.3	%		93.2	%		84.6	%
Premiums Written as a % of Total		71.8	%		69.9	%		28.2	%		30.1	%		100.0	%		100.0	%

Page 10 of 12

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, certain 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 results because it reflects the impact of any change in the proportion of tax exempt investment income to total investment income 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 11 of 12

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.

	Three Months Ended March 31
	2014			2013
	(dollars in millions)
Annualized Net Income	$	1,796		$	2,624
Average Shareholders’ Equity	$	16,162		$	15,922
Return on Equity		11.1	%		16.5	%
Annualized Operating Income	$	1,496		$	2,264
Average Shareholders’ Equity Excluding Unrealized Appreciation or Depreciation	$	14,819		$	13,907
Operating Return on Equity		10.1	%		16.3	%

Page 12 of 12