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 23, 2015                        

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 23, 2015 (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 23, 2015, The Chubb Corporation (Chubb) issued a press release announcing its financial results for the quarter ended March 31, 2015. On April 23, 2015, Chubb also posted on its website at www.chubb.com the Supplementary Investor Information Report (SIIR) relating to its 2015 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 2015 first quarter results, scheduled to be webcast at 5:00 P.M. Eastern Time on April 23, 2015, 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 23, 2015 (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 hereunto duly authorized.

	THE CHUBB CORPORATION
Date: April 23, 2015	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 23, 2015

Exhibit No.	Description
99.1	Press release dated April 23, 2015 (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 $1.60;

Operating Income per Share Is $1.57;

Combined Ratio of 93.9% Includes 8.1 Point Impact of Catastrophes

WARREN, New Jersey, April 23, 2015 — The Chubb Corporation [NYSE: CB] today reported that net income in the first quarter of 2015 was $375 million, compared to $449 million in the first quarter of 2014. First quarter net income per share was $1.60 in 2015 and $1.80 in 2014.

Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, was $367 million in the first quarter of 2015 and $374 million in the first quarter of 2014. First quarter operating income per share was $1.57 in 2015 and $1.50 in 2014.

Average diluted shares outstanding for the first quarter were 234.2 million in 2015 and 249.2 million in 2014.

The impact of catastrophes in the first quarter of 2015 was $250 million before tax ($0.69 per share after tax), primarily related to severe winter weather and freeze events in the United States. In the first quarter of 2014, the impact of catastrophes was $199 million before tax ($0.52 per share after tax).

The first quarter combined loss and expense ratio was 93.9% in 2015 and 93.2% in 2014. The impact of catastrophes on the first quarter combined ratio was 8.1 percentage points in 2015 and 6.6 points in 2014. Excluding the impact of catastrophes, the first quarter combined ratio was 85.8% in 2015 and 86.6% in 2014. The expense ratio for the first quarter was 31.9% in 2015 and 32.1% in 2014.

Net written premiums for the first quarter of 2015 increased 1% to $3.1 billion. Excluding the effect of foreign currency translation, premiums increased approximately 4%. Premiums were up 4% in the U.S. and down 5% outside the U.S. (up 6% in local currencies).

Property and casualty investment income after taxes for the first quarter declined 5% to $264 million in 2015 from $277 million in 2014.

“Chubb produced solid results in the first quarter of 2015,” said John D. Finnegan, Chairman, President and Chief Executive Officer. “Results were adversely impacted by catastrophe and non-catastrophe losses related to severe winter weather in the United States. Although catastrophe losses alone had an adverse impact of $0.69 per share in the quarter, we still generated operating income of $1.57 per share, reflecting a strong combined ratio of 85.8% excluding catastrophes.

“We are pleased that in the first quarter we continued to achieve renewal rate increases while maintaining high retention levels in all of our businesses,” said Mr. Finnegan.

Net income for the first quarter of 2015 reflected net realized investment gains of $11 million before tax ($0.03 per share after tax). Net income for the first quarter of 2014 reflected net realized investment gains of $116 million before tax ($0.30 per share after tax).

During the first quarter of 2015, Chubb repurchased approximately 3.2 million shares of its common stock at a total cost of $326 million (an average cost per share of $100.77). As of March 31, 2015, there was $1.0 billion available for share repurchases under the current authorization.

Book value per share was $70.33 at March 31, 2015, compared to $66.36 at March 31, 2014 and $70.12 at December 31, 2014.

First Quarter Operations Review

Chubb Personal Insurance (CPI) net written premiums increased 2% in the first quarter to $1.0 billion. CPI’s combined ratio for the quarter was 105.1%, compared to 101.8% in the first quarter of 2014. The first quarter impact of catastrophes accounted for 18.4 percentage points of the combined ratio in 2015 and 11.2 points in 2014. Excluding the impact of catastrophes, CPI’s first quarter combined ratio was 86.7% in 2015 and 90.6% in 2014.

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Net written premiums for Homeowners increased 1%, and the combined ratio was 112.7%. The impact of catastrophes in the first quarter accounted for 30.0 percentage points of the Homeowners combined ratio. Excluding the impact of catastrophes, the combined ratio for Homeowners was 82.7%. Personal Automobile premiums increased 2%, and the combined ratio was 92.9%. For Other Personal lines, premiums increased 5% and the combined ratio was 92.3%.

Chubb Commercial Insurance (CCI) net written premiums increased 2% in the first quarter to $1.4 billion. The combined ratio for the quarter was 90.8% in 2015 and 88.5% in 2014. The impact of catastrophes on the CCI combined ratio in the first quarter was 3.4 percentage points in 2015 and 6.1 points in 2014. Excluding the impact of catastrophes, CCI’s first quarter combined ratio was 87.4% in 2015 and 82.4% in 2014.

In the United States, average first quarter CCI renewal rates increased 1%, renewal premium retention was 87% and the ratio of new to lost business was 1.4 to 1.

Chubb Specialty Insurance (CSI) net written premiums were flat at $621 million. The combined ratio for CSI was 81.9%, compared to 88.9% in the first quarter of 2014.

Professional Liability (PL) net written premiums declined 1%, and the combined ratio was 85.2%. In the United States, average first quarter renewal rates for PL increased 4%, renewal premium retention was 87% and the ratio of new to lost business was 1.2 to 1.

Surety net written premiums were up 6%, and the combined ratio was 54.8%.

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 23rd, at 5 P.M. Eastern Time. The conference call will be webcast live on the Chubb website at www.chubb.com and archived later in the day for replay.

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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 10,300 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 is available on the Chubb website at 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 or 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) and 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 Effect of Foreign Currency Translation:

Management uses growth in net premiums written excluding the effect of foreign currency translation, a non-GAAP financial measure, to evaluate the trends in net premiums written, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the foreign currencies in which 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 effect of foreign currency translation on growth, management uses the current period average exchange rates to translate both the current period and the prior period foreign currency denominated net premiums written amounts.

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FORWARD-LOOKING INFORMATION

In the conference call identified above and otherwise, 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;

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• 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 ability and the ability of our third party vendors to maintain the availability of systems and safeguard the security of our data in the event of a disaster or other information security incident;

8

• 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 statement set forth in this document, which speak as of the date hereof.

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THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA

(Unaudited)

	Three Months Ended
	March 31
	2015			2014
	(in millions)
PROPERTY AND CASUALTY INSURANCE
Underwriting
Net Premiums Written	$	3,106		$	3,062
Increase in Unearned Premiums		(1	)		(33	)
Premiums Earned		3,105			3,029
Losses and Loss Expenses		1,920			1,845
Operating Costs and Expenses		987			979
Increase in Deferred Policy Acquisition Costs		(17	)		(13	)
Dividends to Policyholders		10			10
Underwriting Income		205			208
Investments
Investment Income Before Expenses		332			351
Investment Expenses		11			10
Investment Income		321			341
Other Income (Charges)		7			(2	)
Property and Casualty Income		533			547
CORPORATE AND OTHER		(62	)		(60	)
CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX		471			487
Federal and Foreign Income Tax		104			113
CONSOLIDATED OPERATING INCOME		367			374
REALIZED INVESTMENT GAINS AFTER INCOME TAX		8			75
CONSOLIDATED NET INCOME	$	375		$	449
PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX	$	264		$	277

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	Three Months Ended March 31
	2015			2014
OUTSTANDING SHARE DATA
(in millions)
Average Common and Potentially Dilutive Shares		234.2			249.2
Actual Common Shares at End of Period		229.8			244.5
DILUTED EARNINGS PER SHARE DATA
Operating Income	$	1.57		$	1.50
Realized Investment Gains		.03			.30
Net Income	$	1.60		$	1.80
Effect of Catastrophes	$	(.69	)	$	(.52	)

	Mar. 31 2015		Dec. 31 2014		Mar. 31 2014
BOOK VALUE PER COMMON SHARE	$	70.33	$	70.12	$	66.36
BOOK VALUE PER COMMON SHARE,
with Available-for-Sale Fixed Maturities at Amortized Cost		64.75		65.03		62.39

PROPERTY AND CASUALTY UNDERWRITING RATIOS

THREE MONTHS ENDED MARCH 31

	2015			2014
Losses and Loss Expenses to Premiums Earned		62.0	%		61.1	%
Underwriting Expenses to Premiums Written		31.9			32.1
Combined Loss and Expense Ratio		93.9	%		93.2	%
Effect of Catastrophes on Combined Loss and Expense Ratio		8.1	%		6.6	%

PROPERTY AND CASUALTY LOSSES AND LOSS EXPENSES COMPONENTS

THREE MONTHS ENDED MARCH 31

	2015		2014
	(in millions)
Paid Losses and Loss Expenses	$	1,660	$	1,794
Increase in Unpaid Losses and Loss Expenses		260		51
Total Losses and Loss Expenses	$	1,920	$	1,845

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PROPERTY AND CASUALTY PRODUCT MIX

THREE MONTHS ENDED MARCH 31

	Net Premiums Written							Combined Loss  and Expense Ratios
					% Increase (Decrease)
	2015		2014					2015			2014
	(in millions)
Personal Insurance
Automobile	$	176	$	173		2	%		92.9	%		101.4	%
Homeowners		600		592		1			112.7			104.9
Other		260		248		5			92.3			92.4
Total Personal		1,036		1,013		2			105.1			101.8
Commercial Insurance
Multiple Peril		269		261		3			96.9			91.8
Casualty		423		446		(5	)		93.7			89.7
Workers’ Compensation		343		310		11			84.1			84.0
Property and Marine		414		408		1			89.0			89.1
Total Commercial		1,449		1,425		2			90.8			88.5
Specialty Insurance
Professional Liability		545		552		(1	)		85.2			84.6
Surety		76		72		6			54.8			122.9
Total Specialty		621		624		—			81.9			88.9
Total Insurance		3,106		3,062		1			93.9			93.2
Reinsurance Assumed		—		—		*			*			*
Total	$	3,106	$	3,062		1			93.9			93.2

* 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.

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EX-99.2

Exhibit 99.2

The	Supplementary	March 31, 2015
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, 2015

	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						December 31
	2015						2014
				% of Total						% of Total
Invested Assets (at carrying value)
Short Term Investments	$	1,220			3	%	$	1,318			3	%
Fixed Maturities
Tax Exempt		20,415			47			19,772			45
Taxable		18,042			42			19,008			44
Equity Securities		1,964			5			1,964			5
Other Invested Assets		1,408			3			1,423			3
Total Invested Assets	$	43,049			100	%	$	43,485			100	%
Unrealized Appreciation of Investments
Fixed Maturities	$	1,974					$	1,822
Equity Securities		890						875
		2,864						2,697
Deferred Income Tax Liability		1,002						944
	$	1,862					$	1,753
Capitalization
Long Term Debt	$	3,300					$	3,300
Shareholders’ Equity		16,162						16,296
Total Capitalization	$	19,462					$	19,596
Debt as a Percentage of Total Capitalization		17.0	%					16.8	%
Actual Common Shares Outstanding		229.8						232.4
Book Value Per Common Share	$	70.33					$	70.12
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	64.75					$	65.03

Page 1 of 12

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

(dollars in millions, except per share amounts)

	Three Months		From
	Ended		December 2005
	March 31, 2015		to March 31, 2015
Cost of Shares Repurchased	$	326	$	13,794
Average Cost Per Share	$	100.77	$	59.41
Shares Repurchased		3,234,526		232,200,915

During the period from December 2005 through January 2014, the Board of Directors periodically authorized share repurchase programs. Pursuant to these authorizations, approximately 229 million shares of the Corporation’s common stock were repurchased. No shares or funds remain available under these authorizations.

In January 2015, the Board of Directors authorized the repurchase of up to $1.3 billion of the Corporation’s common stock. The January 2015 authorization has no expiration date and, as of March 31, 2015, approximately $1,026 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		Dec. 31		Mar. 31		Dec. 31
	2015		2014		2015		2014
	(in millions)
Short Term Investments	$	471	$	585	$	471	$	585
Taxable Fixed Maturities		1,275		1,231		1,294		1,244
TOTAL	$	1,746	$	1,816	$	1,765	$	1,829

PROPERTY AND CASUALTY

	Cost or Amortized Cost				Carrying Value (a)
	Mar. 31		Dec. 31		Mar. 31		Dec. 31
	2015		2014		2015		2014
	(in millions)
Short Term Investments	$	749	$	733	$	749	$	733
Fixed Maturities
Tax Exempt		19,260		18,614		20,415		19,772
Taxable		15,948		17,113		16,748		17,764
Equity Securities		1,074		1,089		1,964		1,964
Other Invested Assets		1,408		1,423		1,408		1,423
TOTAL	$	38,439	$	38,972	$	41,284	$	41,656

(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
	2015			2014
	(in millions)
CORPORATE INVESTMENT INCOME	$	4		$	4
PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	164		$	166
Taxable Interest		92			104
Other		15			14
Investment Expenses		(7	)		(7	)
TOTAL	$	264		$	277
Effective Tax Rate		17.8	%		18.8	%
After-Tax Annualized Yield		2.65	%		2.80	%

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		Dec. 31		Mar. 31
	2015		2014		2014
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	14,975	$	15,127	$	14,950
Rolling Year Statutory Net Premiums Written	$	12,631	$	12,593	$	12,222
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		0.84:1		0.83:1		0.82:1

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, 2015

	Net Unpaid Losses							IBNR Increase (Decrease)			All Other Unpaid Losses Increase (Decrease)
	Mar. 31 2015		Dec. 31 2014		Increase (Decrease)
	(in millions)
Personal Insurance
Automobile	$	380	$	397	$	(17	)	$	(5	)	$	(12	)
Homeowners		951		748		203			168			35
Other		993		1,000		(7	)		11			(18	)
Total Personal		2,324		2,145		179			174			5
Commercial Insurance
Multiple Peril		1,760		1,750		10			17			(7	)
Casualty		6,419		6,514		(95	)		(22	)		(73	)
Workers’ Compensation		2,960		2,918		42			19			23
Property and Marine		883		883		—			12			(12	)
Total Commercial		12,022		12,065		(43	)		26			(69	)
Specialty Insurance
Professional Liability		6,244		6,480		(236	)		(168	)		(68	)
Surety		78		75		3			4			(1	)
Total Specialty		6,322		6,555		(233	)		(164	)		(69	)
Total Insurance		20,668		20,765		(97	)		36			(133	)
Reinsurance Assumed		264		274		(10	)		(2	)		(8	)
Total	$	20,932	$	21,039	$	(107	)	$	34		$	(141	)

Page 5 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Personal Automobile						Homeowners						Other Personal						Total Personal
	2015			2014			2015			2014			2015			2014			2015			2014
Net Premiums Written	$	176		$	173		$	600		$	592		$	260		$	248		$	1,036		$	1,013
Decrease (Increase) in Unearned Premiums		4			5			84			74			(11	)		(16	)		77			63
Net Premiums Earned		180			178			684			666			249			232			1,113			1,076
Net Losses Paid		115			121			325			378			122			112			562			611
Increase (Decrease) in Outstanding Losses		(6	)		4			217			99			12			8			223			111
Net Losses Incurred		109			125			542			477			134			120			785			722
Expenses Incurred		57			54			201			197			100			101			358			352
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	14		$	(1	)	$	(59	)	$	(8	)	$	15		$	11		$	(30	)	$	2
Ratios After Dividends to Policyholders:
Loss		60.5	%		70.2	%		79.2	%		71.6	%		53.8	%		51.7	%		70.5	%		67.1	%
Expense		32.4			31.2			33.5			33.3			38.5			40.7			34.6			34.7
Combined		92.9	%		101.4	%		112.7	%		104.9	%		92.3	%		92.4	%		105.1	%		101.8	%
Premiums Written as a % of Total		5.7	%		5.7	%		19.3	%		19.3	%		8.4	%		8.1	%		33.4	%		33.1	%

Page 6 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Commercial Multiple Peril						Commercial Casualty						Commercial Workers’ Compensation						Commercial Property and Marine						Total Commercial
	2015			2014			2015			2014			2015			2014			2015			2014			2015			2014
Net Premiums Written	$	269		$	261		$	423		$	446		$	343		$	310		$	414		$	408		$	1,449		$	1,425
Decrease (Increase) in Unearned Premiums		11			16			(17	)		(40	)		(48	)		(42	)		(53	)		(59	)		(107	)		(125	)
Net Premiums Earned		280			277			406			406			295			268			361			349			1,342			1,300
Net Losses Paid		134			130			263			269			127			136			183			209			707			744
Increase (Decrease) in Outstanding Losses		30			14			6			(15	)		52			24			18			(11	)		106			12
Net Losses Incurred		164			144			269			254			179			160			201			198			813			756
Expenses Incurred		103			104			116			121			72			67			138			132			429			424
Dividends Incurred		—			—			—			—			9			9			—			—			9			9
Statutory Underwriting Income (Loss)	$	13		$	29		$	21		$	31		$	35		$	32		$	22		$	19		$	91		$	111
Ratios After Dividends to Policyholders:
Loss		58.6	%		52.0	%		66.3	%		62.6	%		62.5	%		61.8	%		55.7	%		56.7	%		61.0	%		58.6	%
Expense		38.3			39.8			27.4			27.1			21.6			22.2			33.3			32.4			29.8			29.9
Combined		96.9	%		91.8	%		93.7	%		89.7	%		84.1	%		84.0	%		89.0	%		89.1	%		90.8	%		88.5	%
Premiums Written as a % of Total		8.7	%		8.5	%		13.6	%		14.6	%		11.0	%		10.1	%		13.3	%		13.3	%		46.6	%		46.5	%

Page 7 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Professional Liability						Surety						Total Specialty
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	545		$	552		$	76		$	72		$	621		$	624
Decrease (Increase) in Unearned Premiums		30			28			(1	)		1			29			29
Net Premiums Earned		575			580			75			73			650			653
Net Losses Paid		377			382			4			43			381			425
Increase (Decrease) in Outstanding Losses		(62	)		(69	)		3			11			(59	)		(58	)
Net Losses Incurred		315			313			7			54			322			367
Expenses Incurred		166			169			34			34			200			203
Dividends Incurred		—			—			1			1			1			1
Statutory Underwriting Income (Loss)	$	94		$	98		$	33		$	(16	)	$	127		$	82
Ratios After Dividends to Policyholders:
Loss		54.7	%		54.0	%		9.5	%		75.0	%		49.6	%		56.3	%
Expense		30.5			30.6			45.3			47.9			32.3			32.6
Combined		85.2	%		84.6	%		54.8	%		122.9	%		81.9	%		88.9	%
Premiums Written as a % of Total		17.6	%		18.0	%		2.4	%		2.4	%		20.0	%		20.4	%

Page 8 of 12

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Total Insurance						Reinsurance Assumed						Worldwide Total
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	3,106		$	3,062		$	—		$	—		$	3,106		$	3,062
Decrease (Increase) in Unearned Premiums		(1	)		(33	)		—			—			(1	)		(33	)
Net Premiums Earned		3,105			3,029			—			—			3,105			3,029
Net Losses Paid		1,650			1,780			10			14			1,660			1,794
Increase (Decrease) in Outstanding Losses		270			65			(10	)		(14	)		260			51
Net Losses Incurred		1,920			1,845			—			—			1,920			1,845
Expenses Incurred		987			979			—			—			987			979
Dividends Incurred		10			10			—			—			10			10
Statutory Underwriting Income (Loss)	$	188		$	195		$	—		$	—			188			195
Increase in Deferred Acquisition Costs														17			13
GAAP Underwriting Income													$	205		$	208
Ratios After Dividends to Policyholders:
Loss		62.0	%		61.1	%		*	%		*	%		62.0	%		61.1	%
Expense		31.9			32.1			*			*			31.9			32.1
Combined		93.9	%		93.2	%		*	%		*	%		93.9	%		93.2	%
Premiums Written as a % of Total		100.0	%		100.0	%		0.0	%		0.0	%		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, 2015 AND 2014

(DOLLARS IN MILLIONS)

	United States						Outside the United  States						Worldwide Total
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	2,286		$	2,199		$	820		$	863		$	3,106		$	3,062
Decrease (Increase) in Unearned Premiums		117			92			(118	)		(125	)		(1	)		(33	)
Net Premiums Earned		2,403			2,291			702			738			3,105			3,029
Net Losses Paid		1,281			1,344			379			450			1,660			1,794
Increase (Decrease) in Outstanding Losses		272			89			(12	)		(38	)		260			51
Net Losses Incurred		1,553			1,433			367			412			1,920			1,845
Expenses Incurred		692			661			295			318			987			979
Dividends Incurred		10			10			—			—			10			10
Statutory Underwriting Income (Loss)	$	148		$	187		$	40		$	8			188			195
Increase in Deferred Acquisition Costs														17			13
GAAP Underwriting Income													$	205		$	208
Ratios After Dividends to Policyholders:
Loss		64.9	%		62.8	%		52.3	%		55.8	%		62.0	%		61.1	%
Expense		30.4			30.2			36.0			36.8			31.9			32.1
Combined		95.3	%		93.0	%		88.3	%		92.6	%		93.9	%		93.2	%
Premiums Written as a % of Total		73.6	%		71.8	%		26.4	%		28.2	%		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 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 or 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) and 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 or 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
	2015			2014
	(dollars in millions)
Annualized Net Income	$	1,500		$	1,796
Average Shareholders’ Equity	$	16,229		$	16,162
Return on Equity		9.2	%		11.1	%
Annualized Operating Income	$	1,468		$	1,496
Average Shareholders’ Equity Excluding Unrealized Appreciation or Depreciation	$	14,422		$	14,819
Operating Return on Equity		10.2	%		10.1	%

Page 12 of 12