For Immediate Release s85

News from The Chubb Corporation

The Chubb Corporation 15 Mountain View Road • P.O. Box 1615 Warren, New Jersey 07061-1615 Telephone: 908-903-2000

FOR IMMEDIATE RELEASE

Chubb’s 1st Quarter Operating EPS Increase 23% to $1.18; CEO Dean O’Hare Announces Intention to Retire Within a Year

WARREN, N.J., April 30, 2002 – The Chubb Corporation [NYSE: CB] today reported that operating earnings per share for the first quarter of 2002 grew 23% to $1.18 from $0.96 a year ago, as a result of substantially improved performance by Chubb Commercial Insurance and improved Homeowners insurance results. Net written premiums grew to $2.2 billion, an increase of 26%. U.S. premiums grew 26%, and non-U.S. premiums grew 29%. The combined loss and expense ratio for the first quarter was 95.9%, compared with 99.9% in the corresponding year-earlier quarter.

First quarter operating income, which excludes realized investment gains and losses, increased 18% to $204.3 million from $172.7 million. Net income in the 2002 first quarter was $198.2 million or $1.15 per share compared with $175.0 million or $0.97 per share last year.

In announcing first quarter results, Dean R. O’Hare, Chairman and Chief Executive Officer, also announced his intention to retire from Chubb within the next 12 months. "I’m turning 60 in June, and I’d like to retire while I’m still healthy and young enough to enjoy it. In my 39 years at Chubb, including 14 years as CEO, I’ve seen many ups and downs. It will be gratifying to leave at a time when Chubb’s global network is in excellent shape as we begin to reap the benefits of the turnaround and a favorable insurance market environment. I have discussed with my colleagues on the Board my feeling that now is the time to pass the baton to a new generation of leadership that will guide the company through this cycle and beyond. I will continue as Chairman and CEO until a new one is selected. A committee of the Board composed of outside directors and myself will commence the search immediately, and I will remain as long as needed to help effect a smooth transition. I am grateful to have had the privilege of working with outstanding colleagues who have made Chubb a bastion of integrity and strength in the insurance industry."

Mr. O’Hare began his career with Chubb in 1963 as an 2 underwriting trainee. He was named an officer of the corporation in 1972, chief financial officer in 1981 and president in 1986. 3

Commenting for the Board, Joel J. Cohen, a Chubb director since 1984, said, "Dean O’Hare has been an outstanding leader of not only Chubb but the entire insurance industry and global business community. In his 14 years as CEO, total return for Chubb has averaged 15% a year compounded, exceeding the performance of the S&P 500 and far exceeding the performance of the S&P Property and Casualty Index. Dean has worked tirelessly to help open up overseas markets to U.S. companies, and he transformed Chubb from a largely domestic insurer to a global powerhouse. He enhanced Chubb’s reputation for claims-paying integrity when he was the first insurance leader to announce that World Trade Center claims were already being paid and that Chubb would not seek to invoke the act- of-war exclusion. The Board is grateful to Dean for his 39 years of service and is pleased that he will remain at Chubb during the transition process."

First quarter after-tax results are summarized below:

Millions of Dollars 2002 2001 Operating Income $204.3 $172.7 Realized Investment Gains (Losses) (6.1) 2.3 Net Income $198.2 $175.0 Per Diluted Share Operating Income $1.18 $ .96 Realized Investment Gains (Losses) (.03) .01 Net Income $1.15 $ .97

Effect of Catastrophe Losses $ .05 $ .04

Chubb Commercial Insurance (CCI), which accounted for 41% of Chubb’s net written premiums, had premium growth of 35% in the first quarter and a combined ratio of 95.7%, compared to 106.6% in the first quarter of 2001. CCI premium growth resulted mainly from significantly higher prices and also from more policies in force. CCI retained 80% of the premiums that were up for renewal during the quarter, up from 74% a year ago, and premiums from new accounts exceeded nonrenewed business by more than a 2-to-1 margin. Renewal premium rates in the U.S. increased 24% for the quarter. Significant growth was experienced by all categories of CCI, including multiple peril, casualty, workers compensation and property. 4

Chubb Specialty Insurance (CSI), which accounted for 36% of net written premiums, had premium growth of 24% and a combined ratio of 95.4%, compared to 92.6% in the corresponding year-earlier quarter. The decline in CSI profitability resulted mainly from higher claims in directors & officers insurance for publicly held companies and less favorable prior-year development for the Executive Protection (EP) segment. Premiums for EP, CSI’s largest segment, grew 18%, and the combined ratio was 99.3%. In addition to U.S. renewal rate increases averaging 26%, EP implemented tighter terms and conditions, including lower policy limits and higher deductibles and coinsurance. CSI also includes Financial Institutions, which grew 11% and had a combined ratio of 94.4%. Other CSI businesses, which include Chubb Re, Surety, Accident and Aviation, grew 51% and had a combined ratio of 88.3%.

Chubb Personal Insurance (CPI), which accounted for 23% of net written premiums, had premium growth of 17% and a combined ratio of 97.4%. The Homeowners line grew 22% and had a combined ratio of 102.6%, substantially improved from 114.3% in the corresponding year- earlier quarter. Homeowners results benefited from lower claims frequency, the result of mild winter conditions. Growth came mostly from higher rates and increased insurance-to-value. Personal automobile insurance grew 12% and produced a combined ratio of 100.5%. Other Personal lines, which include valuable articles and personal excess liability, grew 13% and had a combined ratio of 80.9%.

"We had a great first quarter, thanks to the turnaround program we began implementing in late 1998, coupled with much improved market conditions and good weather," said Mr. O’Hare. "We are being inundated with requests for quotes, reflecting a flight to quality in the marketplace. Following the traumatic events of 2001, customers and agents now worry more about an insurance carrier’s financial strength and claims service reputation and less about giving the business to the lowest bidder. Chubb’s reputation and the insurance industry’s severely impaired capacity have put us in a position to achieve rate adequacy at the same time we increase our volume of business. In both CCI and CSI, we are putting better risks on the books at much higher rates and better terms and conditions. This will result in sustained improvement of our profitability well into 2003 and beyond. At CPI, we have implemented two rounds of rate increases."

Total catastrophe losses for Chubb were $13.3 million and represented 0.7 percentage point of the 2002 first quarter combined ratio. In the first quarter of 2001, catastrophe losses were $11.5 million and represented 0.7 percentage point. 5

Property and casualty investment income after taxes was $185.6 million or $1.07 per share, compared with $184.6 million or $1.03 per share in 2001.

Chubb made no stock repurchases during the quarter.

For further information contact: Investors: Weston M. Hicks (908) 903-4334 Glenn A. Montgomery (908) 903-2365 Media: Mark E. Greenberg (908) 903-2682 6

FORWARD LOOKING INFORMATION

Certain statements in this communication may be considered to be "forward looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 such as statements that include words or phrases "will result", "is expected to", "will continue", "is anticipated", or similar expressions. Such statements are subject to certain risks, uncertainties and assumptions about our business. The factors which could cause actual results to differ materially from those suggested by any such statements include but are not limited to those discussed or identified from time to time in the Corporation's public filings with the Securities and Exchange Commission and specifically to risks or uncertainties associated with:

 the availability of primary and reinsurance coverage, including the implications relating to the absence of terrorism legislation;

 global political conditions and the occurrence of any terrorist attacks, including any nuclear, biological or chemical events;

 premium price increases and profitability or growth estimates overall or by lines of business, and related expectations with respect to the timing and terms of any required regulatory approvals;

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

 the adequacy of loss reserves including:

- our expectations relating to insurance losses from the September 11 attack and related reinsurance recoverables; - any impact from the bankruptcy protection sought by various asbestos producers and other related businesses; - any changes in judicial or legislative decisions relating to coverage and liability for asbestos and toxic waste claims;

 Enron-related effects, including:

- the effects on the energy markets and the companies that participate in them; - the effects on the capital markets and the markets for directors and officers and error and omissions insurance; - claims and litigation arising out of accounting disclosures by other companies; - any legislative or regulatory proposals or changes;

 changes in management;

 general economic conditions including:

- changes in interest rates and the performance of the financial markets; - changes in domestic and foreign laws, regulations and taxes; - changes in competition and pricing environments; - regional or general changes in asset valuations; - the occurrence of significant weather-related or other natural or human-made disasters; - the inability to reinsure certain risks economically; - changes in the litigation environment; and - general market conditions. 7

THE CHUBB CORPORATION

SUPPLEMENTARY FINANCIAL DATA (Unaudited)

Three Months Ended March 31 2002 2001 (in millions)

PROPERTY AND CASUALTY INSURANCE Underwriting Net Premiums Written...... $2,190.9 $1,732.9 Increase in Unearned Premiums...... (335.5) (112.3) Premiums Earned...... 1,855.4 1,620.6 Claims and Claim Expenses...... 1,190.5 1,081.0 Operating Costs and Expenses...... 686.6 568.4 Increase in Deferred Policy Acquisition Costs...... (87.4) (28.2) Dividends to Policyholders...... 8.6 7.0

Underwriting Income (Loss)...... 57.1 (7.6)

Investments Investment Income Before Expenses...... 230.2 225.4 Investment Expenses...... 5.0 4.6

Investment Income...... 225.2 220.8

Other Charges (a)...... (10.5) (10.4)

Property and Casualty Income...... 271.8 202.8

CORPORATE AND OTHER...... (17.6) 3.1

CONSOLIDATED OPERATING INCOME BEFORE INCOME TAX...... 254.2 205.9

Federal and Foreign Income Tax...... 49.9 33.2

CONSOLIDATED OPERATING INCOME...... 204.3 172.7

REALIZED INVESTMENT GAINS (LOSSES) AFTER INCOME TAX.... (6.1) 2.3

CONSOLIDATED NET INCOME...... $ 198.2 $ 175.0

PROPERTY AND CASUALTY INVESTMENT INCOME AFTER INCOME TAX...... $ 185.6 $ 184.6

(a) Effective January 1, 2002, the Corporation adopted Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and Other Intangible Assets. Under SFAS No. 142, goodwill is no longer amortized. The elimination of goodwill amortization resulted in an increase in operating income of $5.0 million ($.03 per share) in the first quarter of 2002. 8

Three Months Ended March 31 2002 2001

OUTSTANDING SHARE DATA (in millions) Average Common and Potentially Dilutive Shares...... 172.9 179.0 Actual Common Shares...... 171.0 176.0

DILUTED EARNINGS PER SHARE DATA Operating Income...... $1.18 $ .96 Realized Investment Gains (Losses)...... (.03) .01 Net Income...... $1.15 $ .97

Effect of Catastrophe Losses...... $ .05 $ .04

Mar. 31 Dec. 31 2002 2001

BOOK VALUE PER COMMON SHARE...... $38.83 $38.37

BOOK VALUE PER COMMON SHARE, with Available-for-Sale Fixed Maturities at Amortized Cost...... 37.59 36.60

PROPERTY AND CASUALTY UNDERWRITING RATIOS THREE MONTHS ENDED MARCH 31

2002 2001

Losses to Premiums Earned...... 64.4% 67.0% Expenses to Premiums Written...... 31.5 32.9

Combined Loss and Expense Ratio...... 95.9% 99.9%

PROPERTY AND CASUALTY CLAIMS AND CLAIM EXPENSE COMPONENTS THREE MONTHS ENDED MARCH 31

2002 2001 (in millions)

Paid Claims and Claim Expenses...... $1,084.9 $1,146.3 Increase (Decrease) in Unpaid Claims and Claim Expenses...... 105.6 (65.3)

Total Claims and Claim Expenses...... $1,190.5 $1,081.0 9

PROPERTY AND CASUALTY PRODUCT MIX THREE MONTHS ENDED MARCH 31

Net Premiums Combined Loss and Written Expense Ratios 2002 2001 2002 2001 (in millions)

Personal Insurance Automobile...... $ 119.1 $ 106.6 100.5% 96.6% Homeowners...... 272.4 223.5 102.6 114.3 Other...... 111.0 98.5 80.9 73.9 Total Personal 502.5 428.6 97.4 100.8

Commercial Insurance Multiple Peril...... 247.0 204.5 99.9 104.6 Casualty...... 300.8 205.5 100.3 110.1 Workers' Compensation...... 142.8 108.2 91.5 94.1 Property and Marine...... 202.3 145.0 87.5 112.7 Total Commercial 892.9 663.2 95.7 106.6

Specialty Insurance Executive Protection...... 388.6 329.8 99.3 90.4 Financial Institutions...... 178.2 160.1 94.4 101.5 Other...... 228.7 151.2 88.3 88.8 Total Specialty 795.5 641.1 95.4 92.6

Total $2,190.9 $1,732.9 95.9% 99.9%