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Chubb Reports Fourth Quarter Net Income per Share of $0.38; Operating Income per Share Is $0.16; Combined Ratio Is 111.2%,



 Chubb Reports Fourth Quarter Net Income per Share of $0.38; Operating Income
per Share Is $0.16; Combined Ratio Is 111.2%, Including 29.7 Percentage Point
                            Impact of Catastrophes

Net Income per Share for 2012 Is $5.69; Operating Income per Share Is $5.23;
Combined Ratio Is 95.3% Including 9.6 Percentage Point Impact of Catastrophes

Company Expects 2013 Operating Income per Share In Range of $6.40 to $6.80

PR Newswire

WARREN, N.J., Jan. 31, 2013

WARREN, N.J., Jan. 31, 2013 /PRNewswire/ -- The Chubb Corporation (NYSE: CB)
today reported net income in the fourth quarter of 2012 of $102 million or
$0.38 per share, compared to $452 million or $1.60 per share in the fourth
quarter of 2011.

Operating income was $44 million or $0.16 per share in the fourth quarter of
2012, compared to $460 million or $1.63 per share in the corresponding quarter
of 2011.  The company defines operating income as net income excluding
after-tax realized investment gains and losses. 

Chubb's results for the fourth quarter of 2012 were adversely affected by
costs of $882 million before tax ($2.15 per share after-tax) related to Storm
Sandy.  This amount includes $829 million of losses net of reinsurance
recoverable, as well as reinsurance reinstatement premium costs of $53
million.  During the quarter, the company also had $6 million of favorable
development of reserves for catastrophes that occurred before the fourth
quarter of 2012, reducing the total impact of catastrophes in the fourth
quarter of 2012 to $876 million before tax ($2.13 per share after-tax).  In
the fourth quarter of 2011, the impact of catastrophes was $11 million before
tax ($0.03 per share after-tax).

Net written premiums for the fourth quarter declined 2% to $2.9 billion in
2012 from $3.0 billion in 2011.  Premiums were down 2% in the U.S. and down 1%
outside the U.S. (up 1% in local currencies).  Excluding the effects of
foreign currency translation and reinsurance reinstatement premiums related to
Storm Sandy, premiums worldwide increased 1%.

The fourth quarter combined loss and expense ratio was 111.2% in 2012 and
89.9% in 2011. The impact of catastrophes on the combined ratio was 29.7
percentage points in the fourth quarter of 2012.  The impact of catastrophes
in the fourth quarter of 2011 was 0.4 points.  Excluding the impact of
catastrophes, the fourth quarter combined ratio was 81.5% in 2012 and 89.5% in
2011.

The expense ratio for the fourth quarter was 30.9% in 2012 and 30.6% in 2011.

Property and casualty investment income after taxes for the fourth quarter
declined 6% to $296 million in 2012 from $316 million in 2011.

Net income for the fourth quarter of 2012 included net realized investment
gains of $90 million before tax ($0.22 per share after-tax). Net income for
the fourth quarter of 2011 reflected net realized investment losses of $12
million before tax ($0.03 per share after-tax).

During the fourth quarter of 2012, Chubb repurchased 369,900 shares of its
common stock at a total cost of $28 million, or an average cost of $76.54 per
share. 

Average diluted shares outstanding for the fourth quarter were 266.8 million
in 2012 and 282.2 million in 2011.

Book value per share was $60.45 at December 31, 2012 compared to $60.99 at the
end of the third quarter and $56.15 at December 31, 2011.

"Storm Sandy took an enormous toll on millions of people in the Northeast
region of the United States, including many of our customers," said John D.
Finnegan, Chairman, President and Chief Executive Officer.  "Chubb's claim
organization and all of our employees responded with speed, empathy and
fairness during and after this devastating event.  Helping people recover from
catastrophes is a key part of our business, and I am very proud of our
employees for their role in helping our customers rebuild their lives and
restore their homes and businesses," he said.

"Although Storm Sandy had a severe impact on Chubb's fourth quarter results,"
said Mr. Finnegan, "the very strong underlying performance of our business
units, reflected in our excellent 81.5% combined ratio excluding catastrophes,
enabled us to generate an operating profit in the quarter.  For the full year
2012, we are very pleased that we achieved $1.4 billion in operating income
after-tax despite a catastrophe impact of over $1.1 billion before tax."

Full Year Results

For the year ended December 31, 2012, net income was $1.5 billion or $5.69 per
share, compared to $1.7 billion or $5.76 per share for the year ended December
31, 2011.  Operating income totaled $1.4 billion in 2012 and $1.5 billion in
2011.  Operating income per share increased to $5.23 in 2012 from $5.12 in
2011.

Net written premiums increased 1% to $11.9 billion in 2012 from $11.8 billion
in 2011; excluding the effect of foreign currency translation, premiums
increased 2%. Premiums were up 2% in the U.S. and down 3% outside the U.S. (up
1% in local currencies).

The combined ratio in 2012 was 95.3%, the same as in 2011.  The impact of
catastrophes accounted for 9.6 percentage points of the combined ratio in 2012
and 8.9 points in 2011. Excluding the impact of catastrophes, the combined
ratio was 85.7% in 2012 and 86.4% in 2011.

The expense ratio for the year was 31.7% in 2012 and 31.5% in 2011.

Property and casualty investment income after taxes in 2012 declined 5% to
$1.2 billion in 2012 from $1.3 billion in 2011.

Net income for 2012 included net realized investment gains of $193 million
before tax ($0.46 per share after-tax).  Net income for 2011 reflected net
realized investment gains of $288 million before tax ($0.64 per share
after-tax).

During 2012, Chubb repurchased 13.1 million shares of its common stock at a
total cost of $935 million, or an average cost of $71.38 per share.

Average diluted shares outstanding were 271.4 million in 2012 and 291.4
million in 2011.

Fourth Quarter Operations Review

Chubb Personal Insurance (CPI) net written premiums increased 2% in the fourth
quarter of 2012 to $1.0 billion. CPI's combined ratio for the fourth quarter
was 117.9% in 2012 and 86.9% in 2011. The impact of catastrophes on CPI's
combined ratio in the fourth quarter was 40.1 percentage points in 2012 and
1.6 points in 2011. Excluding the impact of catastrophes, the combined ratio
for the fourth quarter was 77.8% in 2012 and 85.3% in 2011.

Homeowners net written premiums were up 1%, and the combined ratio was 131.3%
(69.3% excluding the impact of catastrophes).  Personal Automobile net written
premiums increased 4%, and the combined ratio was 97.1%. Other Personal lines
net written premiums were up 3%, and the combined ratio was 97.1%.

Chubb Commercial Insurance (CCI) net written premiums for the fourth quarter
of 2012 declined 2% to $1.2 billion. The combined ratio for the quarter was
118.7% in 2012 and 93.2% in 2011.  The impact of catastrophes on CCI's
combined ratio in the fourth quarter accounted for 36.8 points in 2012
compared to a positive impact of 0.4 percentage points in 2011.  Excluding the
impact of catastrophes, the combined ratio for the fourth quarter was 81.9% in
2012 and 93.6% in 2011.

In the U.S., average fourth quarter CCI renewal rates were up 8%, renewal
premium retention was 83% and the ratio of new to lost business was 0.7 to 1.

Chubb Specialty Insurance (CSI) net written premiums declined 7% in the fourth
quarter to $688 million. The combined ratio was 88.5%, compared to 89.8% in
the fourth quarter of 2011.

Professional Liability (PL) net written premiums declined 5%, and PL had a
combined ratio of 93.7%.  In the U.S., average PL renewal rates were up 9%,
renewal premium retention was 81% and the ratio of new to lost business was
0.6 to 1.

Surety net written premiums were down 15%, and the combined ratio was 51.4%.

2012 Operations Review

For the year ended December 31, 2012, Chubb Personal Insurance net written
premiums increased 4% to $4.1 billion. CPI's combined ratio was 94.4% in 2012
and 98.3% in 2011. The impact of catastrophes accounted for 13.7 percentage
points of the combined ratio in 2012 and 13.1 points in 2011. Excluding the
impact of catastrophes, the combined ratio was 80.7% in 2012 and 85.2% in
2011.

Homeowners net written premiums increased 3%, and the combined ratio was 94.2%
(73.2% excluding the impact of catastrophes).  Personal Automobile net written
premiums were up 1%, and the combined ratio was 93.4%. Other Personal lines
net written premiums increased 8%, and the combined ratio was 95.6%.

Chubb Commercial Insurance net written premiums for 2012 increased 2% to $5.2
billion. The combined ratio was 99.0% in 2012 and 99.3% in 2011. The impact of
catastrophes accounted for 11.4 percentage points of the combined ratio in
2012 and 10.5 points in 2011.  Excluding the impact of catastrophes, the
combined ratio was 87.6% in 2012 and 88.8% in 2011.

In the U.S., average CCI renewal rates were up 8%, renewal premium retention
was 84% and the ratio of new to lost business was 0.8 to 1.

Chubb Specialty Insurance net written premiums for 2012 declined 6% to $2.6
billion. The combined ratio was 91.3% in 2012 and 85.1% in 2011.

Professional Liability's net written premiums were down 5%. PL had a combined
ratio of 96.7%.  In the U.S., average 2012 renewal rates for PL were up 7%,
renewal premium retention was 83% and the ratio of new to lost business was
0.7 to 1.

Surety net written premiums declined 11%, and the combined ratio was 51.4%.

2013 Operating Income Guidance

Based on management's current outlook, Chubb expects to achieve 2013 operating
income per share in the range of $6.40 to $6.80.

This guidance assumes for the full year 2013:

  o An increase of 2% to 4% in net written premiums.
  o Catastrophe losses that have an impact of 4.0 percentage points on the
    combined ratio.  The impact of each percentage point of catastrophe losses
    on operating income per share is approximately $0.30.
  o A combined ratio between 89% and 91%.
  o A decline of 7% to 9% in property and casualty investment income after
    taxes.
  o Approximately 260 million average diluted shares outstanding.

The guidance and related assumptions are subject to the risks outlined in the
company's forward-looking information safe-harbor statements (see below).

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

Chubb's senior management will discuss the company's fourth quarter
performance with investors and analysts today, January 31^st, at 5 P.M.
Eastern Standard 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 10,000 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.

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

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.

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,  Net Written Premiums Growth (Decrease) Excluding the
Impact of Reinsurance Reinstatement Premiums, Net Written Premiums Growth
(Decrease) Excluding the Impact of Foreign Currency Translation and
Reinsurance Reinstatement Premiums:
Management uses net written premiums growth (decrease) excluding the impact of
foreign currency translation, net written premiums growth (decrease) excluding
the impact of reinsurance reinstatement premiums, and net written premiums
growth (decrease) excluding the impact of foreign currency translation and
reinsurance reinstatement premiums, non-GAAP financial measures, 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  and/or the effect of reinsurance
reinstatement premiums.  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.  The impact of reinsurance reinstatement premiums related to a major
catastrophe event such as Storm Sandy are excluded as these reinsurance
reinstatement premiums are infrequent and could distort the analysis of
trends.  When excluding the impact of reinsurance reinstatement premiums, net
written premiums are increased by the amount of reinsurance reinstatement
premiums recognized in the period.

FORWARD-LOOKING INFORMATION

In this press release, 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 and include statements regarding management's 2013
operating income per share guidance and related assumptions.  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:

  o 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;

  o the effects of the outbreak or escalation of war or hostilities;
  o the occurrence of terrorist attacks, including any nuclear, biological,
    chemical or radiological events;
  o 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;
  o adverse changes in loss cost trends;
  o our ability to retain existing business and attract new business at
    acceptable rates;
  o our expectations with respect to cash flow and investment income and with
    respect to other income;
  o 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;

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

   - the effects on the capital markets and the markets for directors and
     officers and errors and omissions insurance;
   - claims and litigation arising out of actual or alleged accounting or
     other corporate malfeasance by other companies;
   - claims and litigation arising out of practices in the financial services
     industry;
   - claims and litigation relating to uncertainty in the credit and broader
     financial markets; and
   - legislative or regulatory proposals or changes;

  o the effects of changes in market practices in the U.S. property and
    casualty insurance industry arising from any legal or regulatory
    proceedings, related settlements and industry reform, including changes
    that have been announced and changes that may occur in the future;
  o the impact of legislative, regulatory and similar developments on our
    business, including those relating to terrorism, catastrophes, the
    financial markets, solvency standards, capital requirements and accounting
    guidance;
  o any downgrade in our claims-paying, financial strength or other credit
    ratings;
  o the ability of our subsidiaries to pay us dividends; and
  o 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.

 

THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA

(Unaudited)
                                   Periods Ended December 31
                                    Fourth Quarter    Twelve Months 
                                   2012     2011    2012     2011
                                   (in millions)
PROPERTY AND CASUALTY INSURANCE
 Underwriting
  Net Premiums Written             $2,908   $2,965  $11,870  $11,758
  Decrease (Increase) in
                                   19       (20)    (32)     (114)
   Unearned Premiums
     Premiums Earned               2,927    2,945   11,838   11,644
  Losses and Loss Expenses         2,343    1,741   7,507    7,407
  Operating Costs and Expenses     897      905     3,756    3,695
  Decrease (Increase) in Deferred                             

   Policy Acquisition Costs        12       7       (3)      (63)
  Dividends to Policyholders       7        8       30       31
  Underwriting Income (Loss)       (332)    284     548      574
 Investments
  Investment Income Before
   Expenses                        373      398     1,518    1,598
  Investment Expenses              8        7       36       36
  Investment Income                365      391     1,482    1,562
 Other Income (Charges)            4        (3)     10       21
Property and Casualty Income       37       672     2,040    2,157
CORPORATE AND OTHER                (64)     (58)    (237)    (246)
CONSOLIDATED OPERATING INCOME                                 

 (LOSS) BEFORE INCOME TAX          (27)     614     1,803    1,911
Federal and Foreign Income
 Tax (Credit)                      (71)     154     383      420
CONSOLIDATED OPERATING INCOME                                1,491
                                   44       460     1,420
                                                              
REALIZED INVESTMENT GAINS (LOSSES)                            

 AFTER INCOME TAX                  58       (8)     125      187
CONSOLIDATED NET INCOME            $  102   $  452  $ 1,545  $1,678
PROPERTY AND CASUALTY INVESTMENT                              

 INCOME AFTER INCOME TAX           $  296   $  316  $ 1,204  $1,265

 

 

                                    Periods Ended December 31
                                      Fourth Quarter   Twelve Months  
                                    2012      2011    2012      2011
OUTSTANDING SHARE DATA
 (in millions)
  Average Common and Potentially
   Dilutive Shares                  266.8     282.2   271.4     291.4
  Actual Common Shares at                                        

   End of Period                    261.8     272.5   261.8     272.5
DILUTED EARNINGS PER SHARE DATA
  Operating Income                  $  .16    $1.63   $ 5.23    $ 5.12
  Realized Investment Gains(Losses) .22       (.03)   .46       .64
  Net Income                        $  .38    $1.60   $ 5.69    $ 5.76
  Effect of Catastrophes            $(2.13)   $(.03)  $(2.73)   $(2.30)
                                                                 

                                                      Dec. 31   Dec. 31
                                                      2012      2011
                                                                (As Adjusted)
BOOK VALUE PER COMMON SHARE                           $60.45    $56.15
BOOK VALUE PER COMMON SHARE,                                     

 with Available-for-Sale Fixed Maturities                        

 at Amortized Cost                                    53.80     50.37

Book value per common share at December 31, 2011 has been adjusted to reflect
the adoption of new guidance issued by the Financial Accounting Standards
Board related to the accounting for costs associated with acquiring or
renewing insurance contracts. The adoption of this guidance decreased
shareholders' equity by $273 million as of December 31, 2011.  The effect of
the adoption of the new guidance on net income for the twelve months ended
December 31, 2012 and December 31, 2011 was not material.

 

PROPERTY AND CASUALTY UNDERWRITING RATIOS
PERIODS ENDED DECEMBER 31
                                 Fourth Quarter    Twelve Months
                                 2012    2011   2012     2011
Losses and Loss Expenses to                               
                                                63.6
 Premiums Earned                 80.3%   59.3%           63.8%
Underwriting Expenses to                                  

 Premiums Written                30.9    30.6   31.7     31.5
Combined Loss and Expense Ratio  111.2%  89.9%  95.3%    95.3%
Effect of Catastrophes on                                 

 Combined Loss and Expense Ratio 29.7%   0.4%   9.6%     8.9%

 

PROPERTY AND CASUALTY LOSSES AND LOSS EXPENSES COMPONENTS
PERIODS ENDED DECEMBER 31
                                     Fourth Quarter    Twelve Months
                                     2012    2011   2012     2011
                                     (in millions)
Paid Losses and Loss Expenses        $1,889  $2,108 $6,816   $7,046
Increase (Decrease) in Unpaid Losses                          

 and Loss Expenses                   454     (367)  691      361
Total Losses and Loss Expenses       $2,343  $1,741 $7,507   $7,407

The increase in unpaid losses and loss expenses for both the fourth quarter
and the twelve months ended 2012 includes $620 million related to Storm Sandy.

 

PROPERTY AND CASUALTY PRODUCT MIX
QUARTERS ENDED DECEMBER 31
                          Net Premiums Written
                          2012                 2011     % Increase (Decrease)
                                 Excluding                      Excluding
                          Total  Storm Sandy   Total    Total   Storm Sandy
                                 Reinstatement                  Reinstatement
                                 Premiums                       Premiums
                                 (in millions)
Personal Insurance
  Automobile              $  172 $  172        $   165  4 %     4 %
  Homeowners              614    639           605      1       6
  Other                   228    228           221      3       3
      Total Personal      1,014  1,039         991      2       5
Commercial Insurance
  Multiple Peril          279    284           284      (2)     -
  Casualty                393    393           392      -       -
  Workers' Compensation   225    225           198      14      14
  Property and Marine     308    331           358      (14)    (8)
      Total Commercial    1,205  1,233         1,232    (2)     -
Specialty Insurance
  Professional Liability  613    613           648      (5)     (5)
  Surety                  75     75            88       (15)    (15)
      Total Specialty     688    688           736      (7)     (7)
      Total Insurance     2,907  2,960         2,959    (2)     -
Reinsurance Assumed       1      1             6           *    *  
      Total               $2,908 $2,961        $ 2,965  (2)     -

 

                         Combined Loss and
                           Expense Ratios 
                         2012      2011
Personal Insurance
  Automobile             97.1%     93.3%
  Homeowners             131.3     82.3
  Other                  97.1      94.7
      Total Personal     117.9     86.9
Commercial Insurance
  Multiple Peril         103.9     81.8
  Casualty               93.8      91.8
  Workers' Compensation  89.3      95.5
  Property and Marine    184.2     102.2
      Total Commercial   118.7     93.2
Specialty Insurance
  Professional Liability 93.7      96.1
  Surety                 51.4      47.0
      Total Specialty    88.5      89.8
      Total Insurance    111.6     90.2
Reinsurance Assumed        *        *   
      Total              111.2     89.9

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

 

                         PROPERTY AND CASUALTY PRODUCT MIX
                         TWELVE MONTHS ENDED DECEMBER 31
                         Net Premiums Written
                                                 
                                                         % Increase (Decrease)
                         2012                   2011
                                 Excluding                       Excluding
                                 Storm Sandy                     Storm Sandy
                         Total   Reinstatement  Total    Total   Reinstatement
                                 Premiums                        Premiums
                                  (in millions)
Personal Insurance
  Automobile             $   691 $   691        $   682  1 %     1 %
  Homeowners             2,554   2,579          2,477    3       4
  Other                  880     880            818      8       8
      Total Personal     4,125   4,150          3,977    4       4
Commercial Insurance
  Multiple Peril         1,119   1,124          1,136    (2)     (1)
  Casualty               1,641   1,641          1,639    -       -
  Workers' Compensation  1,014   1,014          860      18      18
  Property and Marine    1,400   1,423          1,416    (1)     -
      Total Commercial   5,174   5,202          5,051    2       3
Specialty Insurance
  Professional Liability 2,273   2,273          2,388    (5)     (5)
  Surety                 295     295            332      (11)    (11)
      Total Specialty    2,568   2,568          2,720    (6)     (6)
      Total Insurance    11,867  11,920         11,748   1       1
Reinsurance Assumed      3       3              10          *     *   
      Total              $11,870 $11,923        $11,758  1       1

 

                         Combined Loss and
                           Expense Ratios 
                         2012     2011
Personal Insurance
  Automobile             93.4%    94.4%
  Homeowners             94.2     100.2
  Other                  95.6     95.7
      Total Personal     94.4     98.3
Commercial Insurance
  Multiple Peril         93.7     101.5
  Casualty               92.1     87.9
  Workers' Compensation  93.7     93.2
  Property and Marine    115.0    114.7
      Total Commercial   99.0     99.3
Specialty Insurance
  Professional Liability 96.7     89.9
  Surety                 51.4     49.1
      Total Specialty    91.3     85.1
      Total Insurance    95.7     95.6
Reinsurance Assumed       *        *
      Total              95.3     95.3

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

 

SOURCE Chubb Corporation

Website: http://www.chubb.com
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