15 Multiples Analysis

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X Company Name Chubb Corporation ç cell F3 is named "name"
Sub-header Dollars in millions, except per share ç cell F5 is named "subheader"
Last Fiscal Year End 12/31/2010 ç cell is named "FYE"
X Final Inputs 2011 Step

Premiums earned growth rate 0.0% 0.0%
Loss Ratio 59.0% 0.0%
SG&A expenses (as a % of sales) 3.0% 0.0%
Other operating (income) / expense (amount) $0.0 0.0
Effective tax rate 28.0% 0.0%
Cash (collection period in days) 2.0
Premiums Receivable (days outstanding) 110.0
Investments (as % of sales) 355.0%
Unpaid Losses and Loss Expenses (x losses and loss expenses 3.5
Unearned Premiums (as % premiums earned) 54.0%
Other current liabilities (as % of sales) 12.0%
Capital expenditures $771.2 0.0%
Capital expenditures as % of sales in year 2012
Asset Sales and Write-Offs $0.0
Depreciation expense $0.0
Depreciation as % of CapEx in year 2012 0.0% 0.0%
Additions to Intangibles $0.0
(Write-offs) 0.0
Amortization expense 0.0
Stock-based Compensation $0.0
Assumed current year P/E Multiple 9.0x
Shares repurchased - millions 30.000 0.500
New shares issued from options - millions 0.000
Average strike price $0.00
Dividend payout ratio 30.0%
Effects of options and dilutive securities (8.250)
X Minimum Cash Balance $0.0
Revolver interest rate 0.28%
Long-term debt interest rate 5.60%
Cash Balances: interest rate 1.00%
2015 2015 2015
EBITDA EBIT EPS
$3,005.4 $3,005.4 $7.43
X
COPYRIGHT 2011 © by Training The Street, Inc For training purposes only!
Chubb Corporation
DuPont Analysis
2001 2002 2003 2004 2005 2006 2007

ROE 1.71 3.27 9.49 15.29 14.72 18.24 19.43
Lev 1.24 1.29 1.33 1.28 1.20 1.18 1.24

ROC 1.38 2.54 7.13 11.97 12.28 15.48 15.68
NPM 1.46 2.45 7.15 11.95 13.33 18.37 20.44

Capital T/O 0.95 1.03 1.00 1.00 0.92 0.84 0.77
Source: Derived
Notes:
ROE = Net Income / Stk Equity
= Profit Margin x Capital Turnover x Financial Leverage
= NPM x Capital T/O x Lev
Theoretical
Theoretical CNA Cincinatti
Sector Chubb Actual Multiples Chubb Price Travelers Allstate Progressive Financial Financial
P/R Ratio (TTM) 1.04 1.67 1.3 57.73 1.11 0.55 0.9 0.87 1.47
Price To Book Value 0.61 1.15 1.1 58.64 1.05 0.9 2.25 0.7 1.1
P/E Ratio (TTM) 23.15 9.86 10 74.14 8.7 18.62 12.67 15.01 14.76
Fwd P/E 28.2 10.59 9 49.40 9.7 9.03 13.16 11.26 23.05
Fwd P/Rev 1.18 1.43 1.2 53.29 1.11 0.61 0.87 1.08 1.5
Source: Mergent Horizon AVERAGE: 58.64
Multiple/Valuation Meth Multiple Estimated Value Weight Contribution

P/R Ratio (TTM) 1.3 57.73 0% 0.00
Price To Book Value 1.1 58.64 50% 29.32
P/E Ratio (TTM) 10 74.14 0% 0.00
Fwd P/E 9 49.40 10% 4.94
Fwd P/Rev 1.2 53.29 5% 2.66
Dividend Discount Model 48.79 10% 4.88
DCF Valuation 41.76 20% 8.35
Final Intrinsic Value 50.15
SELL
on
2008 2009 2010 2011
13.43 13.96 13.60 14.05
1.30 1.25 1.21 1.36

10.36 11.13 11.28 10.30
13.27 16.80 16.20 12.36

0.78 0.66 0.70 0.83
Implied CB as % of
Forward P/E TRV Forward % of TRV S&P 500 S&P 500 S&P Implied S&P 500
Quarter Price (1) EPS (2) TRV Price TRV EPS P/E P/E Price EPS Forward P/E P/E
1Q08 47.58 1.77 11.63 44.33 1.54 10.17 114% 1378.55 $15.54 200.95 6%
2Q08 48.98 1.27 11.23 46.73 1.54 11.43 98% 1385.59 $12.86 184.50 6%
3Q08 44.71 0.73 8.40 41.15 0.36 7.65 110% 1267.38 $9.73 101.07 8%
4Q08 48.78 1.14 7.89 39.97 1.35 6.30 125% 968.75 -$23.25 19.01 42%
1Q09 40.13 0.95 6.30 36.55 1.11 5.64 112% 825.88 $7.52 13.55 46%
2Q09 37.03 1.54 5.93 39.26 1.27 5.98 99% 872.81 $13.51 13.01 46%
3Q09 44.3 1.69 7.10 41.38 1.65 5.89 120% 987.48 $14.76 13.74 52%
4Q09 46.87 2 7.90 48.13 2.31 7.29 108% 1036.19 $15.18 13.45 59%
1Q10 48.66 1.14 7.89 49.3 1.25 7.24 109% 1073.87 $17.48 12.77 62%
2Q10 51.83 1.41 8.46 49.67 1.35 7.19 118% 1186.69 $19.68 13.55 62%
3Q10 51.96 1.69 8.94 49.76 2.11 7.96 112% 1101.60 $19.52 12.05 74%
4Q10 57.66 1.69 10.48 54.84 1.89 9.42 111% 1183.26 $20.38 12.75 82%
1Q11 57.93 1.38 10.02 56.26 1.455 1286.12 $24.49 14.03
2Q11 1.38 1.455 $23.18
3Q11 1.38 1.455 $23.37
4Q11 1.38 1.455 $21.76
1Q12 1.66 $23.35
1) Price at beginning of quarter
2) Price/sum of next 4 quarters EPS
Sources: finance.yahoo.com, www.standardandpoors.com, Mergent Horizon
P/R Ratio (TTM

Price To Book
P/E Ratio (TTM
3-Jan-11 1,257.62 1,302.67 1,257.62 1,286.12 ### 1,286.12 Fwd P/E
1-Dec-10 1,186.60 1,262.60 1,186.60 1,257.64 ### 1,257.64 Fwd P/Rev
1-Nov-10 1,185.71 1,227.08 1,173.00 1,180.55 ### 1,180.55
1-Oct-10 1,143.49 1,196.14 1,131.87 1,183.26 ### 1,183.26
1-Sep-10 1,049.72 1,157.16 1,049.72 1,141.20 ### 1,141.20
2-Aug-10 1,107.53 1,129.24 1,039.70 1,049.33 ### 1,049.33
1-Jul-10 1,031.10 1,120.95 1,010.91 1,101.60 ### 1,101.60
1-Jun-10 1,087.30 1,131.23 1,028.33 1,030.71 ### 1,030.71
3-May-10 1,188.58 1,205.13 1,040.78 1,089.41 ### 1,089.41
1-Apr-10 1,171.23 1,219.80 1,170.69 1,186.69 ### 1,186.69
1-Mar-10 1,105.36 1,180.69 1,105.36 1,169.43 ### 1,169.43
1-Feb-10 1,073.89 1,112.42 1,044.50 1,104.49 ### 1,104.49
4-Jan-10 1,116.56 1,150.45 1,071.59 1,073.87 ### 1,073.87
1-Dec-09 1,098.89 1,130.38 1,085.89 1,115.10 ### 1,115.10
2-Nov-09 1,036.18 1,113.69 1,029.38 1,095.63 ### 1,095.63
1-Oct-09 1,054.91 1,101.36 1,019.95 1,036.19 ### 1,036.19
1-Sep-09 1,019.52 1,080.15 991.97 1,057.08 ### 1,057.08
3-Aug-09 990.22 1,039.47 978.51 1,020.62 ### 1,020.62
1-Jul-09 920.82 996.68 869.32 987.48 ### 987.48
1-Jun-09 923.26 956.23 888.86 919.32 ### 919.32
1-May-09 872.74 930.17 866.1 919.14 ### 919.14
1-Apr-09 793.59 888.7 783.32 872.81 ### 872.81
2-Mar-09 729.57 832.98 666.79 797.87 ### 797.87
2-Feb-09 823.09 875.01 734.52 735.09 ### 735.09
2-Jan-09 902.99 943.85 804.3 825.88 ### 825.88
1-Dec-08 888.61 918.85 815.69 903.25 ### 903.25
3-Nov-08 968.67 1,007.51 741.02 896.24 ### 896.24
1-Oct-08 1,164.17 1,167.03 839.8 968.75 ### 968.75
2-Sep-08 1,287.83 1,303.04 1,106.42 1,166.36 ### 1,166.36
1-Aug-08 1,269.42 1,313.15 1,247.45 1,282.83 ### 1,282.83
1-Jul-08 1,276.69 1,292.17 1,200.44 1,267.38 ### 1,267.38
2-Jun-08 1,399.62 1,404.05 1,272.00 1,280.00 ### 1,280.00
1-May-08 1,385.97 1,440.24 1,373.07 1,400.38 ### 1,400.38
1-Apr-08 1,326.41 1,404.57 1,324.35 1,385.59 ### 1,385.59
3-Mar-08 1,330.45 1,359.68 1,256.98 1,322.70 ### 1,322.70
1-Feb-08 1,378.60 1,396.02 1,316.75 1,330.63 ### 1,330.63
2-Jan-08 1,467.97 1,471.77 1,270.05 1,378.55 ### 1,378.55
3-Jan-11 1,257.62 1,302.67 1,257.62 1,286.12 ### 1,286.12 Fwd P/E

1-Oct-10 1,143.49 1,196.14 1,131.87 1,183.26 ### 1,183.26
1-Jul-10 1,031.10 1,120.95 1,010.91 1,101.60 ### 1,101.60
1-Apr-10 1,171.23 1,219.80 1,170.69 1,186.69 ### 1,186.69
4-Jan-10 1,116.56 1,150.45 1,071.59 1,073.87 ### 1,073.87
1-Oct-09 1,054.91 1,101.36 1,019.95 1,036.19 ### 1,036.19
1-Jul-09 920.82 996.68 869.32 987.48 ### 987.48
1-Apr-09 793.59 888.7 783.32 872.81 ### 872.81
2-Jan-09 902.99 943.85 804.3 825.88 ### 825.88
1-Oct-08 1,164.17 1,167.03 839.8 968.75 ### 968.75
1-Jul-08 1,276.69 1,292.17 1,200.44 1,267.38 ### 1,267.38
1-Apr-08 1,326.41 1,404.57 1,324.35 1,385.59 ### 1,385.59
2-Jan-08 1,467.97 1,471.77 1,270.05 1,378.55 ### 1,378.55
Sector CB TRV ALL PGR CNA CINF
1.04 1.67 1.11 0.55 0.9 0.87 1.47
0.61 1.05 0.9 2.25 0.7 1.1
23.15 9.86 8.7 18.62 12.67 15.01 14.76
28.2 10.59 9.7 9.03 13.16 11.26 23.05
1.18 1.43 1.11 0.61 0.87 1.08 1.5
28.2 10.59 9.7 9.03 13.16 11.26 23.05
NOPLAT Invested Capital
$ (millions) 2011 2012 2013 2014 2015 Operating
Net Income 1,609 1,706 1,779 1,821 1,863 Current As
Interest Expense 463 463 418 418 418 Current Liab
Interest Income - - - - - Net PPE
Non-operating Income - - - - - Net Other
NOPLAT 2,072 2,169 2,197 2,239 2,281 Total Inve
Free Cash Flow

$ (millions) S/T Invest
2011 2012 2013 2014 2015 2015 (Continuing Value) Cash
NOPLAT 2,072 2,169 2,197 2,239 2,281 29,328 Premiums
Depreciation - - - - - Other Asse
(Increase)/decrease in working c 771 544 (658) (676) (693)
Free cash flow 2,843 2,712 1,539 1,563 1,588 29,328
Discount factor 1.00 0.93 0.86 0.80 0.74 0.74

Discounted cash flow 2,843 2,513 1,321 1,243 1,170 21,611
WACC 7.9%
Terminal Growth Rate 2%
PV of Explicit CFs 9,089

PV of Continuing Value 21,611
- Total debt -34,264
+ equity Value 15,979
Equity Value 12,416
Shares Outstanding (mil) 297.30
Intrinsic Value 41.76

WACC Calculation
Book value of debt (billions) 34.26 WACC Sensitivity
Market Capitalization (2/11/201 18.23 Share Value
Cost of debt 11.65% 41.76
Tax Rate 28.00% 6% 73
Equity risk premium 5.00% 7% 55
Risk free rate 3.58% 8% 41
Beta 0.70 9% 30
Cost of equity 7.08% 10% 22
WACC 7.9% 11% 15
Terminal Growth Rate and WACC Sensitivity Table
Terminal Growth Rate

$ 41.76 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50%
6.00% 71.20 71.71 72.21 72.72 73.23 73.73 74.24 74.74
6.50% 61.44 61.90 62.36 62.82 63.28 63.73 64.19 64.65
7.00% 53.09 53.50 53.92 54.34 54.76 55.18 55.59 56.01
WACC 7.50% 45.85 46.24 46.62 47.00 47.38 47.77 48.15 48.53
8.00% 39.53 39.88 40.24 40.59 40.94 41.29 41.65 42.00
8.50% 33.96 34.29 34.61 34.94 35.26 35.59 35.92 36.24
9.00% 29.02 29.32 29.62 29.92 30.23 30.53 30.83 31.13
9.50% 24.60 24.88 25.16 25.44 25.72 26.00 26.28 26.57
10.00% 20.63 20.89 21.15 21.41 21.68 21.94 22.20 22.46
Invested Capital
2008 2009 2010
2,257 2,152 2,051
(31,022) (30,840) (30,141)
324 310 310
947 890 972
(27,494) (27,488) (26,808)
2008 2009 2010
$2,478.0 $1,918.0 $2,046.0

$56.0 $51.0 $77.0
$2,201.0 $2,101.0 $1,974.0
$1,271.0 $1,200.0 $1,282.0
0
Income Statement for Chubb Corporation
Dollars in millions, except per share
2011 - 2015
Historical Year Ending December 31, Projected Year Ending December 31, CAGR
2008 2009 2010 2011 2012 2013 2014 2015
x Premiums Earned 11,828.0 11,331.0 11,215.0 $11,215.0 $11,775.8 $12,011.3 $12,251.5 $12,496.5 2.2% Fiscal Year 2009 Fiscal Year 2008 Fiscal Year 2007
Investment Income (1) 1,732.0 1,649.0 1,809.0 $1,800.0 $1,890.0 $1,927.8 $1,966.4 $2,005.7
Losses and Loss Expenses 6,898.0 6,268.0 6,499.0 6,616.9 6,947.7 7,086.6 7,228.4 7,372.9 Restructuring costs (COGS) Restructuring costs (COGS) Reversal of legal reserves due to favorable results in litigation (SG&A)
Amortization of Deferred Policy Acquisition Costs 3,123.0 3,021.0 3,496.0 3,364.5 3,532.7 3,603.4 3,675.4 3,749.0
Gross Profit 3,539.0 3,691.0 3,029.0 3,033.7 3,185.3 3,249.0 3,314.0 3,380.3 2.2% 10-K, pg.51 10-K, pg.15 10-K, pg.16
$22.0 pre-tax $182.0 pre-tax ($20.0) pre-tax
SG&A expenses 283.0 285.0 279.0 336.5 353.3 360.3 367.5 374.9 17.0 accelerated depreciation 7.0 accelerated depreciation 13.0 after-tax
Other operating (income) / expense 609.0 196.0 (478) 0.0 0.0 0.0 0.0 0.0 5.0 175.0 ($7.0) tax adj.
x EBITDA 2,647.0 3,210.0 3,228.0 2,697.2 2,832.1 2,888.7 2,946.5 3,005.4 (1.4%) (15.0) after-tax (107.0) after-tax 35.0% Implied tax rate
$7.0 tax adj. $75.0 tax adj.
Depreciation 69.0 64.0 69.0 0.0 0.0 0.0 0.0 0.0 31.8% Implied tax rate 41.2% Implied tax rate Gain from the sale of an idle manufacturing facility (Other operating)
Amortization (4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10-K, pg.16
x EBIT 2,578.0 3,146.0 3,159.0 2,697.2 2,832.1 2,888.7 2,946.5 3,005.4 (1.0%) Impairment charge (Other operating) Impairment of intangible and other assets (Other operatin ($23.0) pre-tax
For Jump Starting 10-K, pg.15 10-K, pg.73 14.0 after-tax
Interest expense (5) 240.0 248.0 244.0 463.0 463.0 418.0 418.0 418.0 0.0 0.0 0.0 0.0 0.0 $67.0 pre-tax $6.0 pre-tax ($9.0) tax adj.
Pretax Income 2,338.0 2,898.0 2,915.0 2,234.2 2,369.1 2,470.7 2,528.5 2,587.4 (2.4%) $67.0 tax adj. $2.3 tax adj.
100.0% Implied tax rate 39.0% Implied tax rate Gain from the sale of business (Other operating)
Income taxes (1) (2) (3) (4) (5) (6) 603.0 779.0 742.0 625.6 663.3 691.8 708.0 724.5 10-K, pg.73
x Net Income $1,735.0 $2,119.0 $2,173.0 $1,608.6 $1,705.7 $1,778.9 $1,820.5 $1,862.9 (3.0%) Benefit from finalization of tax audits (TaxBenefit from resolution of state tax contingency (Tax) ($3.0) pre-tax
10-K, pg.22 10-K, pg.17 1.8 after-tax
Diluted weighted average shares (in millions) 366.800 353.000 321.600 293.083 258.250 250.750 250.750 250.750 (4.9%) $11.0 tax adj. $13.0 tax adj. ($1.2) tax adj.
39.0% Implied tax rate
x Earnings Per Share $4.73 $6.00 $6.76 $5.49 $6.60 $7.09 $7.26 $7.43 1.9%
Net Realized Investment Loss (Income) - per share $0.85 $0.14 ($0.86) $0.01 $0.03 ($0.10) ($0.13) ($0.16)
Operating EPS $5.58 $6.14 $5.90 $5.50 $6.63 $6.99 $7.13 $7.27
2011 Consensus Operating EPS $5.70 Consensus EPS CAGR of 8.0% Gain from settlement in lieu of condemnation (Other operating)
Ratios & Assumptions Step function 10-K, pg.73
x Premiums earned growth rate (4.2%) (1.0%) 0.0% 5.0% 2.0% 2.0% 2.0% 0.0% ($10.0) pre-tax
Loss Ratio 58.3% 55.3% 57.9% 59.0% 59.0% 59.0% 59.0% 59.0% 0.0% 6.1 after-tax
Expense Ratio 26.4% 26.7% 31.2% 30.0% 30.0% 30.0% 30.0% 30.0%
Combined Ratio 84.7% 82.0% 89.1% 89.0% 89.0% 89.0% 89.0% 89.0%
SG&A expenses (as a % of sales) 2.4% 2.5% 2.5% 3.0% 3.0% 3.0% 3.0% 3.0% 0.0% ($3.9) tax adj.
Other operating (income) / expense (amount) $609.0 $196.0 ($478.0) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 39.0% Implied tax rate
Effective tax rate 25.8% 26.9% 25.5% 28.0% 28.0% 28.0% 28.0% 28.0% 0.0%
1) Forecasted Including realized gain/loss which is excluded in non-GAAP Operating EPS Benefit from finalization of tax audits (Tax)
2) 2007 SG&A excludes $20 million reversal of legal reserves due favorable results in litigation. Source: Campbell 2009 10-K, pg. 16. 10-K, pg.22
3) 2009 Other operating excludes $67 million impairment charge. 2008 Other operating excludes $6 million impairment charge. $40.0 tax adj.
2007 other operating excludes total of $36 million in one time charges. Source: Campbell 2009 10-K, pgs. 15 & 73.
4) Amortization of Policy Acquisition costs excluded Benefit from tax settlement of bilateral advance pricing agreements (Tax)
5) 2007 Interest expense excludes $4 million non-cash benefit associated with legal settlement. Source: Campbell 2009 10-K, pg. 16. 10-K, pg.16
6) 2009 Income taxes exclude benefit from finalization of tax audits. 2008 Income taxes exclude benefit from the resolution of state tax contingency. 2007 income taxes exclude benefits from settlement $22.0 tax adj.
of pricing agreements and finalization tax audits. Source: Campbell 2009 10-K, pg. 11, 16-17. ($4.0) related interest expense adj.
x END 3.0 after-tax
($1.0) Additional tax adj.
25.0% Implied tax rate
"One-way, vertical table"

x 2011 Operating EPS Sensitivity Tables
Loss Ratio $5.49 Expense Ratio $5.49

57.00% $6.04 27.00% $6.32
58.00% $5.76 28.00% $6.04
59.00% $5.49 29.00% $5.76
60.00% $5.21 30.00% $5.49
61.00% $4.94 31.00% $5.21
62.00% $4.66 32.00% $4.94
63.00% $4.39 33.00% $4.66
1.00% Step function 1.00% Step function
"Two-way table"
x 2011 - 2015 EPS CAGR Sensitivity Table
2011 Sales Growth Rate Step function

$ 5.49 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 0.50%
57.00% 6.09 6.11 6.12 6.14 6.15 6.16 6.18 6.19
58.00% 5.81 5.83 5.84 5.85 5.86 5.88 5.89 5.90
2011 59.00% 5.53 5.54 5.55 5.57 5.58 5.59 5.60 5.61
Loss Ratio 60.00% 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32
61.00% 4.97 4.98 4.99 5.00 5.00 5.01 5.02 5.03
62.00% 4.69 4.70 4.70 4.71 4.72 4.72 4.73 4.74
63.00% 4.41 4.41 4.42 4.43 4.43 4.44 4.44 4.45
64.00% 4.13 4.13 4.14 4.14 4.14 4.15 4.15 4.16
65.00% 3.85 3.85 3.85 3.85 3.86 3.86 3.86 3.87
1.00% Step function
The Chubb Corporation (CB)
Income Statement
($ millions, except share data)
Rev Growth Rate 19% 25% 15% 6% 0% 0% -1% -4%
2001 2002 2003 2004 2005 2006 2007 2008 2009
Operating Rev* 7,639 9,083 11,310 12,959 13,699 13,758 13,733 13,592 12,993
COGS** 7,129 8,142 9,403 10,164 10,744 9,493 9,391 10,021 9,289
Gross profit 510 940 1,907 2,795 2,955 4,265 4,342 3,571 3,704
SG&A 208 235 353 315 379 435 335 352 349
R&D - - - - - - - - -
Other Op Costs 483 594 705 630 512 550 444 441 416
Op Inc (181) 111 849 1,850 2,064 3,280 3,563 2,778 2,939
Int***
Non-op Inc (Loss) 115 58 84 218 384 245 374 (371) 23
Tax Inc (66) 168 934 2,068 2,447 3,525 3,937 2,407 2,962
Taxes (178) (55) 125 520 621 997 1,130 603 779
Net Inc 112 223 809 1,548 1,826 2,528 2,807 1,804 2,183
EPS $0.65 $1.31 $4.51 $8.15 $9.21 $6.13 $7.13 $5.00 $6.24
Dil. EPS $0.63 $1.29 $4.46 $8.01 $8.94 $5.98 $7.01 $4.92 $6.18
Div. PS 1.36 1.40 1.44 1.56 1.72 1.00 1.16 1.32 1.40
Source: Bloomberg
*Premiums Earned + Investment Income
***Corporate and other comprises
**Losses + Amortization investment income
of Policy Acquisition Costs earned on corporate invested assets, interest
expense and other expenses not allocated to oper. subsidiaries
on (CB)
3%
2010
13,412 Net Revenue Sales
9,995 COS Losses and Amort of Acq Costs
3,417 Gross profit Gross Pft
348 SG&A Inv & Corp Exp
- R&D Other Op Exp
422 Other Op Costs Op Inc
2,647 Op Inc Net Realized Inv Gain
Int Non-Op Inc
372 Non-op Inc Tax Inc
3,019 Tax Inc Taxes
846 Taxes Net Inc
2,173 Net Inc Dividend
R/Inc
$6.67 EPS
$6.76 Dil. EPS
1.48 DPS
Ticker #NAME?
Currency
Name
Start Date
End Date
Periodicity
Display Order
Data Type
Reported Status
Consolidation Level
Date: CY1 2001 CY1 2002 CY1 2003 CY1 2004 CY1 2005 CY1 2006 CY1 2007 CY1 2008CY1 2009 2010
Status: Restated Restated Original Original Original Original Original Original Original Actual and Est
Income Statement
Revenues
Real Estate and Other Revenue 114 23.8
Premiums Earned 6656.4 8085.3 10182.5 11635.7 12176 11958 11946 11828 11331 11,215
Investment Income 982.8 997.3 1118.3 1256 1407.7 1580 1738 1732 1649 1,809
Other Revenues 8.8 67.3 115.1 220 49 32 13 16

Realized Investment Gains (Not
Realized Investment Gains 0.8 33.9 84.4 383.5 245 374
Realized Capital Gains/ Losses 218.2
Realized Investment Gains (Losses), Net -371 372
Total Other-Than-Temporary Impairment Losses on Investments -132
Other Realized Investment Gai #NAME? 135
Other-Than-Temporary Impairment Losses on Investments Recognized in O 20
TOTAL REVENUES 7754 9116.5 11394 13177.2 14082.3 14003 14107 13221 13016 13,412
Operating Expenses
Losses and Loss Expenses 5357.4 6064.6 6867.2 7320.9 7813.5 6574 6299 6898 6268 6,499
Amortization of Deferred Policy 1771.4 2077.8 2535.6 2843.3 2930.4 2919 3092 3123 3021 3,496
Other Insurance Operating Cos 483.4 594.1 704.7 630.1 512.1 550 444 441 416 422
Investment Expenses 14.1 24.7 29 24.7 29.2 34 35 32 39 39
Other Expenses 110.1 101.4 150.4 110.9 160.7 207 48 36 16 18
Corporate Expenses 83.6 109.3 173.5 179.1 189.4 194 252 284 294 291
TOTAL LOSSES AND EXPENSES 7820 8971.9 10460.4 11109 11635.3 10478 10170 10814 10054 10,765 2,647
INCOME BEFORE FEDERAL AND -66 168.4 933.6 2068.2 2447 3525 3937 2407 2962 2,915
Non-Operating Expenses
Federal and Foreign Income Ta -177.5 -54.5 124.8 519.8 621.1 997 1130 603 779 742.00
Earnings
Dividends per Share 1.56
Total Cash Common Dividends 298.2
Basic 0.65 1.31 4.51 8.15 9.21 6.13 7.13 5 6.24
Diluted 0.63 1.29 4.46 8.01 8.94 5.98 7.01 4.92 6.18 6.76
NET INCOME 111.5 222.9 808.8 1548.4 1825.9 2528 2807 1804 2183 2,173
Comprehensive Income
Change in Unrealized Appreciation of Investments, Net of Tax -313.8 81
Foreign Currency Translation Gains (Losses), Net of Tax -22.3 34
COMPREHENSIVE INCOME 1489.8 2643
Reference Items
Pension Plan Asset Category-Cash (amount) 0
Pension Plan Asset Category-Company Stock(amount) 0
Pension Plan Asset Category-Real Estate (amount) 0
Pro Forma Net Income (stock 65.7 168.4 808.8 1548.4
Pro Forma Diluted EPS (stock 0.37 0.97 4.46 8.01
Actual Return/Loss On Pension
Insurance Operating Costs (Non 431.1 568.8 675.2
Pension Plan Asset Category-Other (%) 0
Pension Plan Asset Category-Cash (%) 0
Pension Plan Asset Category-Real Estate (%) 0
Pension Plan Asset Category-Company Stock (%) 0
Underwriting Income -903.5 -625.9 104.5 2116 1631
Realized Investment Gains (Los 0.8 33.9 84.4 383.5 245 374 -371
Dividends Declared on Commo 1.36 1.4 1.44 1.56 1.72 1 1.16 1.32 1.4 1.48
Accumulated postretirement be 137 155
Decrease in unearned premiu 305.1 962 885.4 74 46 254
Loss ratio 80.8 75.4 67.6 63.1 64.3 55.2 52.8 58.5 55.4 58.10
Expense ratio 32.6 31.3 30.4 29.2 28 29 30.1 30.2 30.6 31.20
Combined loss and expense rat 113.4 106.7 98 92.3 92.3 84.2 82.9 88.7 86
Catastrophe Losses 114 294 350 630 173 363 607 91
Change in Unrealized Appreciat
Change in Unrealized Appreciat 32.5
Change in Unrealized Appreciation or Dep 332.9
Change in Unrealized Appreciation of Investments, N 88.1
Unrealized Gain (Loss) on Securities -49.1
Net unrealized gains (losses) recognizedin other comprehensive income -313.8
Unrealized holding gains (losses) arising during the year 106
Change in Unrealized Appreciation of Investments 134
Net unrealized gains (losses) recognized in other comprehensive incom -669
Change in Unrealized Other-Than-Temporary Impairment Losses on Invest -6
Change in Unrealized Appreciation or Depreciation of Investments 1223
Foreign Currency Translation G -4.5 16.5 68.5 67 -22.3 34 125 -226 170
Change in Postretirement Benefit Costs Not Yet Recognized in Net Inco 98
COMPREHENSIVE INCOME 139.5 572.3 965.4 1566.3 3049 625 3668
Interest Expense 134.8 134 206 240 248
United States 532
Foreign 161
Deferred tax (credit), principally United States 86
Actual tax -268.9 -32.4 13.4 25.1 25.4 28.3 26.3
Net premiums written 6961.5 9047.3 11067.9 12052.9 12282.6 11974 11872 11782 11077 11192
Net premiums earned 6656.4 8085.3 10182.5 11635.7 12176 11958 11946 11828 11331
Stock Based Compensation Expense 88 87 81 80
Dividends Declared (per share 234.8 239.7 258.9 345.3 417 -457
Benefit obligation 665.2 745.9 944.3 1076.9 1292.9 1533 1658 1761 1900
Benefit obligation 137 155 212.4 216 274.7 269 289 315 338
Plan assets at fair value 538.8 461.4 771.4 886.2 1031.2 1304 1409 1125 1558
Plan assets at fair value 13.4 21.8 26 37 32 50
Funded status at end of year, in -126.4 -284.5 -172.9 -190.7 -261.7 -229 249 636 342
Funded status at end of year, included in other liabil -212.4 -202.6 -252.9 -243 252 283 288
Accumulated Benefit Obligation (Pension) 836.5 1000 1224 1328 1451 1593
Discount rate 7.25 7 6.5 6.25 5.75 5.75 5.75 6 6
Rate of compensation increase 4.25 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5
Employer Contribution (Pension) 65 126.9 109 93 127 228
Employer Contribution (Postretirement) 12.8 8 2 12 10 10
Service cost 28.6 32.1 42.7 50.2 57.6 67 79 76 73
Service cost 5 5.2 6.7 6.7 8.4 9 10 10 10
Interest cost 43.9 46.9 55.2 61.2 68.5 75 89 99 104
Interest cost 9.2 9.9 12.6 12.6 14.5 14 16 17 19
Expected return on plan assets -53.5 -51.9 -55 -66.9 -73.5 -85 -100 -114 -118
Expected return on plan assets -0.2 -1.1 -2 -2 -3 -4
Pension Expense (Income) 14 36.7 46.4 58.7 73.2 91 100 112 105
$ 12.8 14.2 19.7 24.4 22.2 22 25 25 26
Discount Rate used on Liabs (o 7.25 7 6.5 6.25 5.75 5.75 5.75 6 6
Expected Return on Plan Assets 9 8.75 8.75 8.5 8.25 8 8 8 8
Expected Return on Plan Assets (other/healthcare) - % 8.5 8.25 8 8 8 8
Health Care Cost Trend Project 10 9.3 11.5 10 9.5 9.5 8.75 8.75 8.7
Rate to which the cost trend ra 5 5 5 5 5 5 4.5
Discount rate 29
Short term investments 33
Corporate bonds 232
U.S. Government and government agency and authority obligations 175
Foreign bonds 33
Mortgage-backed securities 121
Equity securities 935
$ 96 78
Expected Benefit Payments - Year 2 66 72
Direct premiums written 7534.3 9799.3 11337.7 12001.3 12179.6 12224
2015-2019 576 626
Reinsurance assumed 525.2 835.9 1266 1397.7 1119.7 954
Weighted average shares outs 172.2 170.5 179.2 189.9 198.2 412.5 393.6 361.1 350.1 314.40
Reinsurance ceded 1098 1587.9 1535.8 1346.1 1016.7 1204
Basic earnings per share 0.65 1.31 4.51 8.15 9.21 6.13 7.13 5 6.24
Weighted average shares and p 175.8 172.9 181.3 193.2 204.2 422.4 400.3 366.8 353 307.4
Diluted earnings per share 0.63 1.29 4.46 8.01 8.94 5.98 7.01 4.92 6.18
Fixed charges 277
Equity securities 60 61 60 62 60 46
Fixed maturities 40 39 40 38 40 54
Reclassification adjustment for realized gains included in net income -25
Net income 2528 2807 1804
Change in postretirement benefit costs not yet recognized in net inco -17 -284
Investment Income (Non-Life) 982.8 997.3 1118.3 1407.7 1580 1590
Claims and Losses (Non-Life) 5357.4 6064.6 6867.2 7813.5 6574 6299 6898
Amortization of Deferred Policy 1771.4 2077.8 2535.6 2930.4 2919 3092 3123
Dividends Declared Per Share
Weighted average shares outstanding
Weighted average shares and potential sh
d Per Share
shares outstanding
shares and potential shares assumed outstanding for
Ticker
Currency
Name From Q4 8-K
Start Date EST
End Date
Periodicity
Display Order
Data Type
Reported Status
Consolidation Level
Date: CQ1 2009 CQ2 2009 CQ3 2009 CQ4 2009 CQ1 2010 CQ2 2010 CQ3 2010 CQ4 2010
Status: Original Original Original Original Original Original Original Original
Income Statement
Revenues
Real Estate and Other Revenues
Realized Gains
Net Premiums Written
Decrease (Increase) in Unearned Premiums...........
Premiums Earned 2826 2828 2836 2,841 2782 2799 2798 2836
Investment Income 402 408 414 425 410 426 412 561
Other Revenues 3 3 1 6 4 3 3 6
Total Realized Investment Gains (Losses), Net -266 27 69 193 127 90 54 101
Other Income......................
Total Revenues 2965 3266 3320 3,465 3323 3318 3267 3504
Operating Expenses - 0
Incurred Losses and Loss Adjustment Expenses (Non-Life)
Decrease (Increase) in Deferred Policy Acquisition Costs..
Dividends to Policyholders.......
Highlighted Expenses as % of Operating Sales 0.725836 0.719716 0.710462 0.706675 0.77381 0.75193798 0.715265 0.746541
Losses and Loss Expenses 1615 1572 1534 1,547 1730 1660 1522 1655
Amortization of Deferred Policy Acquisition Costs 728 757 775 761 740 765 774 881
Other Insurance Operating Costs and Expenses 103 102 116 95 115 107 105 95
Highlighted Expenses as % of Operating Sales 0.028169 0.028195 0.02604651 0.025545
Investment Expenses 9 7 11 12 10 8 9 12
Real Estate Cost of Sales and Expenses
Real Estate and Other Expenses
Other Operating Expenses
Other Expenses 3 4 2 7 4 4 3 7
Investment Expenses
Other Expenses
Corporate Expenses
Investment Expenses
Corporate Expenses 77 71 73 73 76 72 70 73
Total Losses and Expenses 2535 2513 2511 2,495 2675 2616 2483 2723
Income Before Federal and Foreign Income Tax 430 753 809 970 648 702 784 781
Non-Operating Expenses
Federal and Foreign Income Tax 89 202 213 275 184 184 212 262
Earnings
Diluted EPS from Continuing Operations
Operating Income 519
Basic 0.96 1.55 1.7 2.03 1.39 1.6 1.82
Diluted 0.95 1.54 1.69 2.00 1.39 1.59 1.8 1.688354
Dividends Declared Per Share 0.35 0.35 0.35 0.35 0.37 0.37 0.37
Weighted average shares outstanding 324.5 314.4
Weighted average shares and potential shares assumed outsta 326.7 317.3
Net Income 341 551 596 695 464 518 572 620
Change in Unrealized Appreciation of Investments,Net of Tax
Foreign Currency Translation Gains (Losses),Net of Tax
Reference Items
Accumulated Benefit Obligation (Pension)
Underwriting Expenses (Non-Life)
Underwriting Expenses (Non-Life)
Reinsurance assumed
Accumulated Benefit Obligation (Postretirement)
Diluted, pro forma
Pro forma net income (loss)
Amortization of Deferred Policy Costs (Non-Life)
CONSOLIDATED OPERATING INCOME
Effective Tax Rate - % 19.3 19.1
Net Income 341 551 596 695 464 518 572 620
Basic earnings per share 0.96 1.55 1.7 2.03 1.39 1.6
Basic earnings per share
Basic earnings (loss) per share
Basic EPS
Basic 1.82
Diluted EPS
Diluted earnings per share 0.95 1.54 1.69 2.00 1.39 1.59 2.03
Diluted earnings per share
Diluted earnings (loss) per share
Diluted 1.8
Loss ratio
Effect of Catastrophes on Combined Loss and Expense Ratio
All Other
Catastrophic Ratio - %
Change in Unrealized Appreciation or Depreciation of Investm
Unrealized Gain (Loss) on Securities
Change in Unrealized Appreciation of Investments, Net of Tax
Change in Unrealized Appreciation of Investments
Change in Unrealized Appreciation or Depreciation of Investm 327 188 813 (105) 0 56 457 -105
Other Comprehensive Income (Loss), Net of Tax Change in U
Change in Unrealized Other-Than-Temporary Impairment Losses on Inv -9 3 0 1
Change in Unrealized Other-Than-Temporary Impairment Losses on Invest 3 0
Change in Unrealized Appreciation or Depreciation of Investments 107 0
Change in Unrealized Other-Than- Temporary Impairment Losses on Inves 3
Foreign Currency Translation Gains (Losses) -113 158 98 27 -28 -66 32 27
Amortization of Net Loss and Prior Service Cost Included in N 9 3 9 10 9 10
Amortization of Net Loss and Prior Service Cost Included in N
Comprehensive Income 564 891 1519 (2,974) 556 518 1074 -2974
Weighted average shares outstanding 355.3 354.8 350.3 (710) 332.8 324.5 314.4 -710.3
Weighted average shares and potential shares assumed outsta 358.3 357.4 353.5 (716) 335 326.7 317.3 307.4
Net Premiums Written 2743 2846 2705 2,783 2765 2886 2732 2809
Net Premiums Written
Net Premiums Written (Non-Life)
Total insurance
Increase in Unearned Premiums
Decrease (Increase) in Unearned Premiums -18 -87 66
Decrease (Increase) in Unearned Premiums
Increase in Unearned Premiums
Change in Unearned Premiums (Non-Life)
Decrease in Unearned Premiums 83 131 17
Premiums Earned 2826 2828 2836 2782 2799 2798
Premiums Earned
Net Premiums Earned (Non-Life)
Claims and Claim Expenses
Claims and Claim Expenses
Claims and Claim Expenses (includes asbestos and toxic wast
Claims and Claim Expenses (includes asbestos and toxic wast
Losses and Loss Expenses 1615 1572 1534 1730 1660 1522
Claims and Losses (Non-Life)
Underwriting Income (Loss)
Underwriting Loss
Underwriting Income (Loss)
Underwriting Income
Underwriting Income 376 396 423 204 263 399
Loss Ratio As Reported (Non-Life) - %
Loss Ratio As Reported (Non-Life) - %
Loss ratio 57.3 56.5 55.8 62.3 59.5 54.5
Losses and Loss Expenses to Premiums Earned
Expense Ratios As Reported (Non-Life) - %
Expense Ratios As Reported (Non-Life) - %
Expense ratio 30.8 30.5 30.7 31.3 30.9 31.7
Underwriting Expenses to Premiums Written
Combined Ratio As Reported (Non-Life) - %
Combined Ratio As Reported (Non-Life) - %
Combined ratio 88.1 86.5 90.4 86.2
Combined Loss and Expense Ratio 93.6
Due in one year or less 87
Catastrophe Losses 26 43 22 344 193
Catastrophe Losses
Catastrophe losses in the third quarter of 2010 58
Realized investment gains (losses) before tax -266 27 69 127 54
Benefit obligation
Benefit obligation
Plan assets at fair value
Plan assets at fair value
Funded status at end of year, included in other liabilities
Funded status at end of year, included in other liabilities
From Q4 8-K
2010
Est and Actual
FORECASTING
Standard Deviation over last 3 years
#'s %
11,215 75.81353 0.026733
1,809 44.1588 0.078714
16
372
-
13,412
-
-
-
-
6,499
3,496
422
39
-
-
-
18
-
-
-
-
291
10,497
2,915
-
842
-
-
1
639
644
2,174 2,073
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
2,174
3
-
-
-
2
-
6.76
-
-
2
-
-
-
-
-
-
-
-
408
-
1
3
107
3
(35)
29
-
11,192
-
-
-
-
(21)
-
-
-
17
-
-
-
-
-
-
4,912
-
-
-
-
-
866
-
-
176
-
-
-
94
-
-
-
177
94
-
537
-
58
181
Balance Sheet for Chubb Corporation
Historical Year Ending December 31, Projected Year Ending December 31,
2008 2009 2010 2011 2012 2013 2014 2015
x S/T Investments $2,478.0 $1,918.0 $2,046.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0
Cash $56.0 $51.0 $77.0 $122.8 $971.7 $1,285.0 $1,885.1 $2,497.2
Premiums Receivable $2,201.0 $2,101.0 $1,974.0 1,994.1 2,093.8 2,135.7 2,178.4 2,222.0
Other Assets $1,271.0 $1,200.0 $1,282.0 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0
x Total Current Assets: 6,006.0 5,270.0 5,379.0 5,316.9 6,265.6 6,620.7 7,263.5 7,919.2
Investments 36,260.0 40,086.0 40,167.0 39,811.1 40,113.4 41,358.7 42,633.0 43,937.1

Reinsurance Recoverable* 2,212.0 2,053.0 1,896.0 1,896.0 1,896.0 1,896.0 1,896.0 1,896.0
Investment Associated F.A. 435.0 460.0 452.0 452.0 452.0 452.0 452.0 452.0
Other F.A. 3,516.0 2,580.0 2,349.0 2,349.0 2,349.0 2,349.0 2,349.0 2,349.0
x Total Assets: $48,429.0 $50,449.0 $50,243.0 $49,825.0 $51,076.0 $52,676.4 $54,593.6 $56,553.3
Unpaid Losses and Loss Expenses $22,367.0 $22,839.0 $22,755.0 $23,159.0 $24,316.9 $24,803.3 $25,299.3 $25,805.3
Unearned Premiums 6,367.0 6,153.0 6,133.0 6,056.1 6,358.9 6,486.1 6,615.8 6,748.1
Other current liabilities 2,288.0 1,848.0 1,253.0 1,345.8 833.7 850.4 867.4 884.8
x Total Current Liabilities: 31,022.0 30,840.0 30,141.0 30,560.9 31,509.6 32,139.7 32,782.5 33,438.2
Revolver 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Long-term debt 3,975.0 3,975.0 3,975.0 3,575.0 3,575.0 3,300.0 3,300.0 3,300.0
Other long-term liabilities (used as plug) 0.0 0.0 148.0 66.0 66.0 66.0 66.0 66.0
x Total Liabilities: 34,997.0 34,815.0 34,264.0 34,201.9 35,150.6 35,505.7 36,148.5 36,804.2
Total equity 13,432.0 15,634.0 15,979.0 15,623.1 15,925.4 17,170.7 18,445.0 19,749.1
x Total Liabilities and Equity: $48,429.0 $50,449.0 $50,243.0 $49,825.0 $51,076.0 $52,676.4 $54,593.6 $56,553.3
Parity check (A = L+E) 0.000 0.000 0.000 (0.000) 0.000 0.000 0.000 (0.000)
To deal with "negative zeros"

OLD I33 =I18-I32
x END NEW I33 =IF(ABS(I18-I32)<0.001,0,I18-I32)
Balance Sheet - Traditional
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Balance Sheet
S/T Investments 957 1,757 2,696 1,308 1,899 2,254 1,839 2,478 1,918 2,046 S/T Investments Investment 44,975
Cash 26 42 52 42 36 38 49 56 51 77 Cash Premiums 2,054
Premiums Receivabl 1,693 2,041 2,188 2,336 2,319 2,314 2,227 2,201 2,101 1,974 Premiums Receivable Other 1,311
Other Assets 1,332 1,768 1,406 3,307 1,429 1,514 1,366 1,271 1,200 1,282 Other Assets Oper. Cas 68
Total C.A. 4,007 5,607 6,342 6,992 5,683 6,120 5,481 6,006 5,270 5,379 Total C.A. Excess Cash
Curr Asset 48,408
Investments 16,827 19,256 23,926 29,851 32,735 35,439 38,242 36,260 40,086 40,167 Investments Unpaid Lo 22,755
Reinsurance Recover 4,505 4,072 3,427 3,483 3,769 2,594 2,307 2,212 2,053 1,896 Reinsurance RecoverableUnearned 6,506
Investment Associate 1,698 2,420 1,823 1,170 3,095 3,232 1,687 435 460 452 Investment Associated F.Other CL 1,370
Other F.A. 2,412 2,727 2,843 2,764 2,779 2,892 2,857 3,516 2,580 2,349 Other F.A. Curr Liabs 30,630
Total F.A. 25,442 28,474 32,019 37,268 42,378 44,157 45,093 42,423 45,179 44,864 Total F.A.
Op W. Cap 17,778
Total Assets 29,449 34,081 38,361 44,260 48,061 50,277 50,574 48,429 50,449 50,243 Total Assets
Reinsuran 1,712
Unpaid Losses and L 15,515 16,713 17,948 20,292 22,482 22,293 22,623 22,367 22,839 22,755 Unpaid Losses and Loss Other FA 2,941
Unearned Premiums 3,916 5,050 5,939 6,356 6,361 6,546 6,599 6,367 6,153 6,133 Unearned Premiums Total F As 4,653
Accts Pay 475 1,415 773 1,929 2,167 2,724 1,357 118 118 115 Accts Pay
Other C.L. 1,666 2,118 2,365 2,744 2,177 2,385 2,090 2,170 1,730 1,138 Other C.L. Total Asse 22,431
Total C.L. 21,573 25,296 27,025 31,320 33,186 33,948 32,669 31,022 30,840 30,141 Total C.L.
S.T. Debt -
L.T. Debt 1,351 1,959 2,814 2,814 2,467 2,466 3,460 3,975 3,975 3,975 L.T. Debt
Deferred Inc Tax - - - - - - - - - 148 Deferred Inc Tax L.t. Debt 3,975
Total L.T. 1,351 1,959 2,814 2,814 2,467 2,466 3,460 3,975 3,975 4,123 Total L.T. Other Liab 685
Total L.T. 4,660
Stk Equity 6,525 6,826 8,522 10,126 12,407 13,863 14,445 13,432 15,634 15,979 Stk Equity
Total Debt 4,660
Total L&E 29,449 34,081 38,361 44,260 48,061 50,277 50,574 48,429 50,449 50,243 Total L&E
Equity 17,771
Shares (millions) 2001 2002 2003 2004 2005 2006 2007 2008 2009 12/31/2010
Wt Avg Shares out 172.20 170.50 179.20 189.90 198.20 412.50 393.60 361.10 350.10 326.00 Total Liab 22,431
Wt Avg Shares dilut 175.80 172.90 181.30 193.20 204.20 422.40 400.30 366.80 353.00 321.60 4Q
22,431
Source: Bloomberg, Mergent Online 22,431
*on Unpaid Losses and Loss Expenses 0
Ticker #NAME?
Currency
Name
Start Date
End Date
Periodicity
Display Order
Data Type
Reported Status
Consolidation Level
Date: CY1 2001 CY1 2002 CY1 2003 CY1 2004

Status: Restated Restated Original Original
Balance Sheet
Investments
Short Term Investments 957 1,757 2,696 1,308
Tax Exempt (cost $8,053.8 and $7,889.3)
Taxable (cost $5,666.6 and $5,054.7)
Tax Exempt (cost $8,053.8 and $8,053.8) 8,373
Taxable (cost $6,408.2 and $5,666.6) 6,525
Tax Exempt (cost $10,509.7 and $8,449.2) 9,083 11,154
Taxable (cost $10,531.8 and $8,112.5) 8,386 10,791
Fixed Income Available for Sale 14,071
Fixed Income Available for Sale 13,621
Tax Exempt (cost $15,448.5 and $13,522.6)
Taxable (cost $14,515.8 and $13,362.7)
Tax Exempt (cost $17,314 and $15,449)
Taxable (cost $14,310 and $14,515)
Equity Securities (cost $1,215 and $1,563) 710 992 1,514 1,841
Other Invested Assets 176 173 181 193
Held-to-Maturity — Tax Exempt (market $1 1,219 795 467 317
TOTAL INVESTED ASSETS 17,784 21,012 26,622 31,158
Investment in Partially Owned Company 386 267 312 346
Securities Lending Collateral 418 1,355 705
Real Estate Assets 647 551 519 474
Other Assets
Cash 26 42 52 42
Accrued Investment Income 248 247 287 350
Premiums Receivable 1,693 2,041 2,188 2,336
Reinsurance Recoverable on Unpaid Losses 4,505 4,072 3,427 3,483
Prepaid Reinsurance Premiums 341 479 391 328
Deferred Policy Acquisition Costs 929 1,150 1,343 1,435
Deferred Income Tax 675 631 641 534
Goodwill 467 467 467 467
Other Assets 1,332 1,768 1,406 3,307
Other Assets
TOTAL ASSETS 29,449 34,081 38,361 44,260
Reserves
Unpaid Losses and Loss Expenses 15,515 16,713 17,948 20,292
Unearned Premiums 3,916 5,050 5,939 6,356
Deferred Income Tax
Short Term Debt 199
Long Term Debt 1,351 1,959 2,814 2,814
Securities Lending Payable 418 1,355 705 1,854
Dividend Payable to Shareholders 58 60 68 75
Accrued Expenses and Other Liabilities 1,467 2,118 2,365 2,744
TOTAL LIABILITIES 22,924 27,255 29,839 34,134
Stockholder Equity
Receivable from Employee Stock Ownership (49) (34) (18)
Preferred Stock - Authorized 8,000,000 Shares; $1 Par Value; Issued -
Common Stock - Authorized 1,200,000,000 Sh 180 180 196 196
Paid-In Surplus 527 445 1,319 1,319
Retained Earnings 6,369 6,319 6,869 8,119
Accumulated Other Comprehensive Income (Loss)
Treasury Stock, at Cost - 39,972,796 and 19 (682) (614) (529) (211)
Unrealized Appreciation of Investments, Net 253 586 674 625
Foreign Currency Translation Gains, Net of (73) (57) 12 79
TOTAL SHAREHOLDERS' EQUITY 6,525 6,826 8,522 10,126
29,449 34,081 38,361 44,260
Common Stock, Par Value 1 1 1 1
Common Stock, Shares Issued 180,131,238 180,296,834 195,803,824 195,803,824
Common Stock, Shares Authorized 600,000,000 600,000,000 600,000,000
Treasury Stock, Shares 10,059,857 9,095,162 7,840,448 3,127,282
170,071,381
Reference Items
ESOP Shares (Number) 4,008,152 4,355,000 4,666,000
Shares Issued 180,131,238 180,296,834 195,803,824
Treasury Shares (Number) 10,059,857 9,095,162 7,840,448
Par Value 1 1 1
Shares Outstanding from the Front Cover 170,973,722 171,217,974 188,701,756 194,166,186
Net Liability for Unpaid Losses and Loss Ad 10,051 11,010 12,642 14,521
One year later 9,856 11,799 13,039 14,848
ARD Ref Reestimated Reserves Year 1 9,856 11,799 13,039 14,848
Four years later 7,145 8,527 9,740 11,150
Five years later 6,409 7,571 8,656 9,999
Six years later 6,477 6,887 7,694 8,844
Seven years later 6,045 7,036 7,052 7,822
Eight years later 5,692 6,655 7,254 7,197
Nine years later 5,468 6,346 6,870 7,423
Ten years later 5,200 6,171 6,594 7,055
One year later 2,794 3,085 3,399 3,342
Two years later 4,079 4,669 5,354 5,671
Three years later 4,653 5,286 5,981 6,932
Four years later 4,711 5,351 6,139 7,012
Five years later 4,556 5,133 5,894 6,829
Six years later 5,011 4,857 5,481 6,326
Seven years later 4,897 5,251 5,137 5,807
Eight years later 4,738 5,068 5,481 5,420
Nine years later 4,628 4,884 5,235 5,735
Ten years later 4,403 4,748 5,038 5,472
Gross Liability, End of Year 15,515 16,713 17,948 20,292
/s/ Martin G. McGuinn (Martin G. McGuinn 4,505 4,072 3,427 3,483
Net Liability, End of Year 11,010 12,642 14,521 16,809
Annualized investment yield (pre-tax) 6 5 5 4
Annualized investment yield (after-tax) 5 4 4 4
Book Value Per Share
Principal due under long term debt
Total Line of Credit 500 500 500 500
Debt Schedule Thereafter
Debt Schedule - Total Long Term Debt 1,351 1,959 2,814 2,814
ARD Contractual Obligations - Year 1 269 570
Total 563 1,099
Total 214
ARD Contractual Obligations - Years 2 & 3
Total 867 982
Total 831
ARD Contractual Obligations - Years 4 & 5
ARD Contractual Obligations - beyond Year 5 2,069 1,995
ARD Total Contractual Obligations 4,813 4,646
It is uncertain whether and, if so, when we will be required to fund
ARDR Quality Rating - Below Investment Gra 485 550 68 561
ARDR Qualtiy Rating - AA/aa 11,108 12,587 15,652 19,875
U.S. Government and government agency and authority obligations
ARDR Quality Rating - AAA/aaa 639 749 581 450
ARDR Quality Rating - Unrated 2,458 2,407 3,309 3,840
ARDR Quality Rating - Investment Grade 1,491 2,026 2,837 3,304
About 50% of our
Equity Securities (cost $839.8 and $715.0)......
Total available-for-sale......
Held-to-maturity -- Tax exempt......
Short Term Investments 957 1,757
Equity Securities (cost $757.9 and $839.8) 710
Total available-for-sale 14,898 17,469
Held-to-maturity — Tax exempt 1,283 851
Equity Securities (cost $998.3 and $757.9) 992
Total available-for-sale 21,945 27,692
Held-to-maturity — Tax exempt 502 338
Short Term Investments 2,696 1,308
Equity Securities (cost $1,381.4 and $998.3) 1,514
Equity Securities (cost $1,687.3 and $1,381.4) 1,841
Total available-for-sale
Held-to-maturity — Tax exempt
Equity Securities (cost $2,088.1 and $1,687.3)
Equity Securities (cost $1,561 and $1,045)
Other Invested Assets
Short Term Investments
Mortgage-backed securities
Tax exempt
Total Investments In Securities
Total fixed maturities
Equity securities
Tax exempt........................
Tax exempt........................
Foreign bonds...................
Foreign bonds...................
Redeemable preferred stocks.....
Tax exempt 15 4 16 22
Tax exempt 334 638 660 570
Foreign bonds 1 8 21 7
Foreign bonds 44 101 88 126
Redeemable preferred stocks 1 0 1 1
Foreign government and government agency obligations
Foreign government and government agency obligations
Equity securities
Equity securities
Tax exempt
obligations...................
obligations...................
U.S. Government and government agency and 25 59 6 14
U.S. Government and government agency and authority obligations 30 14
U.S. Government and government agency and authority obligations
U.S. Government and government agency and 685 1,243 2,065 2,805
Corporate bonds.................
Corporate bonds.................
Corporate bonds 29 43 6 11
Corporate bonds 58 108 141 107
Corporate bonds 2,038 2,044 2,105 2,534
Foreign government and government agency 1,626 2,278 3,147 4,472
Mortgage-backed securities......
Mortgage-backed securities......
Mortgage-backed securities 17 24 33 29
Mortgage-backed securities 36 80 66 72
Residential mortgage-backed securities
Residential mortgage-backed securities
Commercial mortgage-backed securities
Commercial mortgage-backed securities
Residential mortgage-backed securities 1,065 1,388 2,324 2,853
Commercial mortgage-backed securities 1,065 1,388 1,094 901
Debt Schedule in yr 2 100 301 1
Foreign tax credits
Total (675) (631) (641) (534)
Net deferred income tax asset
Weighted Average Cost of Options Granted 18 19 10 15
Risk-free interest rate 5 5 3 3
Expected volatility 26 27 28 26
Dividend yield 2 2 3 2
Expected average term (in years) 6 6 6 4
Granted 3,760,311 4,371,066 4,326,225 179,579
Outstanding, December 31, 2009 18,376,304 19,855,186 22,032,594 17,741,298
Avg exercise price (Options outstanding) 56 64 61 63
Exercisable, December 31, 2009 12,215,260 14,449,000 16,176,926 15,650,019
Avg exercise price (Options exercisable) 58 60 63 65
Held-to-maturity -- Tax exempt......
Held-to-maturity — Tax exempt 64 56 0 21
Held-to-maturity — Tax exempt 35
Held-to-maturity — Tax exempt 1,283 851 502 338
Tax exempt........................
Redeemable preferred stocks.....
Tax exempt 8,373 9,083 11,154 14,071
Redeemable preferred stocks 46 46 56 56
Redeemable preferred stocks 0
Redeemable preferred stocks
Office facilities 82 105
Equipment 16 19
Equipment 17
Office facilities 95
Current Rental Expense 114
$
Rental Expense - Year 1 91 97 96 94
Rental Expense - Beyond Year 5 350 338 333 297
Future Minimum Operating Lease Obligatio 720 739 745 712
Long term debt (Note 8) 1,387 2,000 3,096 3,113
ARD Ref Fair Value Assets Recur - Level 2
Fixed maturities
FV Assets-Rec.-Level 3-Securities AFS: Other
FV Assets-Rec.-Level 3-Securities AFS: Other
Fixed maturities
Equity securities
ARD Ref Fair Value Assets Recur - Total
ARD Ref Fair Value Assets Recur - Total
FV Assets-Rec.-Total:Securities available for sale
FV Assets-Rec.-Total:Securities available for sale
Fixed maturities
Equity securities
Equity securities
Repurchase of shares
Repurchase of shares
Common stock outstanding, end of year 170,071,381 171,201,672 187,963,376 192,676,542
Statutory Capital 3,815 4,512 6,368 7,848
Statutory Net Income 622 (27) 916 1,664
CY1 2005 CY1 2006 CY1 2007 CY1 2008 CY1 2009 9/30/2010
Original Original Original Original Original
1,899 2,254 1,839 2,478 1,918 2046
15,750
14,568
17,613
14,218
18,559
15,312
18,345
14,410
19,587
16,991
20248
17136
2,212 1,957 2,320 1,479 1,433 1,550
204 422 400 367 353 2213
205 135
34,633 37,693 40,081 38,738 42,004 42213
260
2,077 2,620 1,247
367 201
36 38 49 56 51 77
391 411 440 435 460 452
2,319 2,314 2,227 2,201 2,101 1974
3,769 2,594 2,307 2,212 2,053 1896
244 354 392 373 308 319
1,445 1,480 1,556 1,532 1,533 1563
623 591 442 1,144 272
467 467 467 467 467 467
1,429 1,514 1,366 1,271 1,200 1282
48,061 50,277 50,574 48,429 50,449 50243
22,482 22,293 22,623 22,367 22,839 22755

6,361 6,546 6,599 6,367 6,153 6133
148
- -839
2,467 2,466 3,460 3,975 3,975 3975
2,077 2,620 1,247
90 104 110 118 118 115
2,177 2,385 2,090 2,170 1,730 1977
35,654 36,414 36,129 34,997 34,815 34264
-
210 411 375 372 372 372
2,364 1,539 346 253 224 191
9,600 11,711 13,280 14,509 16,235 17435
202 444 (735) 720 1314
(135) (967) (1,917) -3333
311
57
12,407 13,863 14,445 13,432 15,634 15979
48,061 50,277 50,574 48,429 50,449 50243
1 1 1 1 1
210,432,298 411,276,940 374,649,923 371,980,710 371,980,460
600,000,000 1,200,000,000 1,200,000,000 1,200,000,000
1,393,900 19,726,097 39,972,796
1 1 1
207,408,188 408,589,297 370,249,648 352,324,016 328,574,448
16,809 18,713 19,699 20,316 20,155
16,971 18,417 19,002 19,443 19,393
16,971 18,417 19,002 19,443 19,393
15,315 17,048 17,861 18,215 18,619
14,407 15,667 16,725 17,298 17,571
13,246 14,842 15,584 16,526 16,884
11,605 13,676 14,907 15,657 16,411
10,373 11,936 13,812 15,064 15,798
9,119 10,602 12,019 13,994 15,255
8,061 9,324 10,702 12,170 14,218
7,411 8,247 9,434 10,828 12,364
7,597 7,601 8,383 9,536 11,011
4,031 3,948 3,873 4,108 4,063
6,095 6,594 6,586 6,789 6,565
7,753 8,039 8,487 8,850 8,554
8,390 9,147 9,466 10,048 10,089
7,894 9,378 10,250 10,794 10,977
7,382 8,635 10,126 11,353 11,530
6,680 7,926 9,159 10,950 11,915
6,060 7,040 8,310 9,714 11,390
5,641 6,335 7,330 8,697 10,046
5,916 5,879 6,599 7,562 8,944
22,482 22,293 22,623 22,367 22,839
3,769 2,594 2,307 2,212 2,053
18,713 19,699 20,316 20,155 20,786
4 4 4 4 4
3 3 4 3 3
47
685
500 500 500 500 500
2,375 3,300 3,300
2,467 2,466 3,460 3,975 3,975
226 895 5,941 5,243 5,341
1,726 990 7,500 7,495
7,381
262 652 4,903 4,608
4,438
1,887 1,401 12,261 14,066 14,209
4,101 3,938 30,605 31,412 31,369
850
611 639 339 328 366
22,867 24,277 25,553 22,660 24,419
2,758 1,911 705 626 758
860 1,085 5,583 7,359 7,342
2,754 2,718 2,302 2,334 4,399
3,442 3,254 95 75 53
1,899 2,478
31,831 33,871
142
2,254
30,318
216
2,212
1,957
1,516
1,839 1,918
2,320
2,051
4,750
1,479
2,026 2,075
18,345
14,410
36,578
1,433
61 42 34 405 66
362 341 385 451 933
17 57 63 42
107 39 66 340
0
11
221
43
261
15,750 17,613 18,559 18,345 19,587
17 26 2 4 10
6 1 36 43 12
(2,758) (1,911) (705) (626) (758)
2,758 1,911 705 626 758
35 24 22 143 24
56 42 42 39 327
2,630 2,397 2,908 3,057 6,590
4,837 5,571 6,949 6,962 6,113
82 21 42 467
34 88 31 52
20
69
49
6
3,141 2,907 2,850 2,447 1,899
1,162 1,432 1,900 1,318 1,631
675 685 400
400 275
879
(623) 591 442 1,144 2,181
272
15 8 8 6 6
4 5 4 3 2
22 16 17 16 24
2 2 2 3 3
4 3 4 4 5
379,291 564,411 203,481 330,329 131,800
8,677,898 11,508,056 8,107,931 5,814,200 4,915,461
66 34 34 35 36
8,555,486 11,218,976 7,883,973 5,592,086 4,679,664
66 34 34 34 35
11 7
216 142
40
101 98 93 88
92
685 400
89 87 89 78 72
400 275
89 80 80 64 66
81 69 66 58 57
70 59 60 51 50
58 57 54 48 41
253 219 181 133 110
640 571 530 432 396
675 685
2,504 3,427 3,493 4,102
32,481 36,427
32,481 36,427
274 151
204 226
274
204
151
226
32,755 36,578
1,479 1,433
1,479
32,755
36,578
1,433
1,275 1,207
1,275 1,207
(41,733,268) 22,310,886 22,623,775
(4,017,884)
209,038,398 411,276,940 374,649,923 352,254,613 332,007,664
8,910 11,357 12,998 12,342 14,526
1,897 2,575 2,859 1,963 2,357
2,807 1,804 2,183 1,710

447
Projected Cash Flow Statement for Chubb Corporation
Projected Year Ending December 31,

2011 2012 2013 2014 2015
Operating Activities
x Net Income $1,608.6 $1,705.7 $1,778.9 $1,820.5 $1,862.9
Stock-based compensation expense 0.0 0.0 0.0 0.0 0.0
Depreciation 0.0 0.0 0.0 0.0 0.0
Amortization 0.0 0.0 0.0 0.0 0.0
(Increase)/decrease in other long-term assets and liabilities 0.0 0.0 0.0 0.0 0.0
x Cash Flow from Operating Activities: 1,608.6 1,705.7 1,778.9 1,820.5 1,862.9
Investing Activities
Capital expenditures 771.2 (543.6) 658.2 675.6 693.3
Additions to intangibles 0.0 0.0 0.0 0.0 0.0
x Cash Flow from Investing Activities: 771.2 (543.6) 658.2 675.6 693.3
CASH FLOW AVAILABLE FOR FINANCING ACTIVITIES 2,379.8 1,162.2 2,437.1 2,496.1 2,556.2
Financing Activities
Issuance / (repayment) of revolver 0.0 0.0 0.0 0.0 0.0
Issuance of long-term debt 0.0 0.0 0.0 0.0 0.0
(Repayment) of long-term debt (400.0) 0.0 (275.0) 0.0 0.0
Repurchase of equity (1,481.9) (891.7) 0.0 0.0 0.0
Dividends (482.6) (511.7) (533.7) (546.2) (558.9)
Option proceeds 0.0 0.0 0.0 0.0 0.0
x Cash Flow from Financing Activities: (2,364.5) (1,403.4) (808.7) (546.2) (558.9)
Net Change in Cash 15.3 (241.2) 1,628.4 1,949.9 1,997.4

Beginning cash balance 77.0 92.3 (148.9) 1,479.5 3,429.5
x Ending cash balance $92.3 ($148.9) $1,479.5 $3,429.5 $5,426.8
x END
Working Capital Schedule for Chubb Corporation
2008 2009 2010 2011 2012 2013 2014 2015
Premiums Earned $11,828.0 $11,331.0 $11,215.0 $11,215.0 $11,775.8 $12,011.3 $12,251.5 $12,496.5
Losses and Loss Expenses 6,898.0 6,268.0 6,499.0 6,616.9 6,947.7 7,086.6 7,228.4 7,372.9
Working Capital Balances

x Cash $56.0 $51.0 $77.0 $61.5 $64.5 $65.8 $67.1 $68.5
Premiums Receivable 2,201.0 2,101.0 1,974.0 1,994.1 2,093.8 2,135.7 2,178.4 2,222.0
Investments 36,260.0 40,086.0 40,167.0 39,811.1 40,113.4 41,358.7 42,633.0 43,937.1
Total Current Assets incl Investments: $38,517.0 $42,238.0 $42,218.0 $41,866.7 $42,271.8 $43,560.2 $44,878.6 $46,227.5
x Unpaid Losses and Loss Expenses $22,367.0 $22,839.0 $22,755.0 $23,159.0 $24,316.9 $24,803.3 $25,299.3 $25,805.3
Unearned Premiums 6,367.0 6,153.0 6,133.0 6,056.1 6,358.9 6,486.1 6,615.8 6,748.1
Other current liabilities 2,288.0 1,848.0 1,253.0 1,345.8 833.7 850.4 867.4 884.8
Total Non-Debt Current Liabilities: $31,022.0 $30,840.0 $30,141.0 $30,560.9 $31,509.6 $32,139.7 $32,782.5 $33,438.2
NET WORKING CAPITAL / (DEFICIT) $7,495.0 $11,398.0 $12,077.0 $11,305.8 $10,762.2 $11,420.5 $12,096.0 $12,789.4
x (Increase)/Decrease in Working Capital ($3,903.0) ($679.0) $771.2 $543.6 ($658.2) ($675.6) ($693.3)
Ratios and Assumptions

x Numbers of days in the period 365 ç cell is named "Days"
Cash (collection period in days) 1.7 1.6 2.5 2.0 2.0 2.0 2.0 2.0
Premiums Receivable (days outstanding) 116.5 122.3 110.9 110.0 110.0 110.0 110.0 110.0
Investments (as % of sales) 306.6% 353.8% 358.2% 355.0% 340.6% 344.3% 348.0% 351.6%
x Unpaid Losses and Loss Expenses (x losses and loss 3.2 3.6 3.5 3.5 3.5 3.5 3.5 3.5
Unearned Premiums (as % premiums earned) 53.8% 54.3% 54.7% 54.0% 54.0% 54.0% 54.0% 54.0%
Other current liabilities (as % of sales) 19.3% 16.3% 11.2% 12.0% 12.0% 12.0% 12.0% 12.0%
x END
Investment Schedule for Chubb Corporation
2008 2009 2010 2011 2012 2013 2014 2015
Sales $11,828.0 $11,331.0 $11,215.0 $11,215.0 $11,775.8 $12,011.3 $12,251.5 $12,496.5

x Capital expenditures 0.0 (3,903.0) (679.0) 771.2 543.6 (658.2) (675.6) (693.3)
Capital expenditures as % of sales 0.0% (34.4%) (6.1%) 6.9% 0.0% 0.0% 0.0% 0.0%
x Depreciation expense $69.0 $64.0 $69.0 $0.0 $0.0 $0.0 $0.0 $0.0 Step function
Depreciation as % of CapEx n/a (1.6%) (10.2%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Depreciation as % of PP&E, net 0.2% 0.2% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0%
Beginning Investments $40,167.0 $39,811.1 $40,113.4 $41,358.7 $42,633.0

Change in Retained Earnings Historicals not needed (355.9) 302.3 1,245.2 1,274.4 1,304.1
Realized Investment Gain/Loss 0.0 0.0 0.0 0.0 0.0
(Asset sales and write-offs) 0.0 0.0 0.0 0.0 0.0
x Ending Investments $36,260.0 $40,086.0 $40,167.0 $39,811.1 $40,113.4 $41,358.7 $42,633.0 $43,937.1
x End
Amortization Schedule for Chubb Corporation
2008 2009 2010 2011 2012 2013 2014 2015
Sales $11,828.0 $11,331.0 $11,215.0 $11,215.0 $11,775.8 $12,011.3 $12,251.5 $12,496.5

x Additions to definite life intangibles 0.0 0.0 9.0 0.0 0.0 0.0 0.0 0.0
Additions as % of sales 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%
Amortization expense $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Amortization as % of intangibles, net 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Beginning definite life intangibles $1,896.0 $1,896.0 $1,896.0 $1,896.0 $1,896.0

Additions to definite life intangibles Historicals not needed 0.0 0.0 0.0 0.0 0.0
(Amortization expense) 0.0 0.0 0.0 0.0 0.0
(Write-offs) 0.0 0.0 0.0 0.0 0.0
x Ending definite life intangibles $2,212.0 $2,053.0 $1,896.0 $1,896.0 $1,896.0 $1,896.0 $1,896.0 $1,896.0
x END
Other Long-Term Items Schedule for Chubb Corporation
2008 2009 2010 2011 2012 2013 2014 2015
Assets
x Investment Associated F.A. $435.0 $460.0 $452.0 $452.0 $452.0 $452.0 $452.0 $452.0
Other F.A. 3,516.0 2,580.0 2,349.0 2,349.0 2,349.0 2,349.0 2,349.0 2,349.0
Total Other Long-Term Assets: $3,951.0 $3,040.0 $2,801.0 $2,801.0 $2,801.0 $2,801.0 $2,801.0 $2,801.0
(Increase)/Decrease in Other Assets: 911.0 239.0 0.0 0.0 0.0 0.0 0.0
Liabilities
x Other long-term liabilities (used as plug) $0.0 $0.0 $148.0 $148.0 $148.0 $148.0 $148.0 $148.0
Total Other Long-Term Liabilities: $0.0 $0.0 $148.0 $148.0 $148.0 $148.0 $148.0 $148.0
Increase/(Decrease) in Other Long-term Liabilities: 0.0 148.0 0.0 0.0 0.0 0.0 0.0
x (Increase)/Decrease in Other Long-Term Assets and Liabilities $911.0 $387.0 $0.0 $0.0 $0.0 $0.0 $0.0
x END
Shareholders' Equity Schedule for Chubb Corporation
2008 2009 2010 2011 2012 2013 2014 2015
Total equity
x Beginning balance $15,979.0 $15,623.1 $15,925.4 $17,170.7 $18,445.0
Net income 1,608.6 1,705.7 1,778.9 1,820.5 1,862.9
Stock-based compensation expense 0.0 0.0 0.0 0.0 0.0
Repurchase of equity Historicals not needed (1,481.9) (891.7) 0.0 0.0 0.0
Dividends (482.6) (511.7) (533.7) (546.2) (558.9)
x Ending balance $13,432.0 $15,634.0 $15,979.0 $15,623.1 $15,925.4 $17,170.7 $18,445.0 $19,749.1 $19,749.1
$19,749.1
Share repurchase assumptions Share repurchase a
Current year EPS $5.49 $6.60 $7.09 $7.26 $7.43
Assumed current year P/E Multiple 9.0x 9.0x 9.0x 9.0x 9.0x
Projected share price $49.40 $59.44 $63.85 $65.34 $66.86 Step function
Shares repurchased - millions 30.000 26.000 17.000 30.000 15.000 0.000 0.000 0.000 0.500
x $ amount repurchased $1,140.0 $903.0 $527.0 $1,481.9 $891.7 $0.0 $0.0 $0.0
New shares from exercised options

New shares issued from options - millions 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Average strike price $0.00 $0.00 $0.00 $0.00 $0.00
x Option proceeds $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Dividend assumptions
Dividends $471.0 $487.0 $476.0 $482.6 $511.7 $533.7 $546.2 $558.9
Net income 1,735.0 2,119.0 2,173.0 1,608.6 1,705.7 1,778.9 1,820.5 1,862.9
x Dividend payout ratio 27.1% 23.0% 21.9% 30.0% 30.0% 30.0% 30.0% 30.0%
x END
Shares Outstanding Table for Chubb Corporation
2008 2009 2010 2011 2012 2013 2014 2015
x Beginning balance - basic (actual) 304.000 274.000 259.000 259.000 259.000

Shares issued from options Historicals not needed 0.000 0.000 0.000 0.000 0.000
Shares repurchased (30.000) (15.000) 0.000 0.000 0.000
Ending balance - basic (actual) 350.100 326.000 304.000 274.000 259.000 259.000 259.000 259.000
Average basic shares 393.600 361.100 330.000 301.333 266.500 259.000 259.000 259.000
Effects of options and dilutive securities (26.800) (8.100) (8.400) (8.250) (8.250) (8.250) (8.250) (8.250)
x Average diluted shares 366.800 353.000 321.600 293.083 258.250 250.750 250.750 250.750
x END
Debt and Interest Schedule for Chubb Corporation
2008 2009 2010 2011 2012 2013 2014 2015
x Cash Flow Available for Financing Activities $2,379.8 $1,162.2 $2,437.1 $2,496.1 $2,556.2
Repurchase of equity (1,481.9) (891.7) 0.0 0.0 0.0
Dividends (482.6) (511.7) (533.7) (546.2) (558.9)
Plus: Beginning cash balance 2,046.0 2,000.0 2,000.0 2,000.0 2,000.0
x Less: Minimum cash balance 0.0 0.0 0.0 0.0 0.0
Cash Available for Debt Repayment $2,461.3 $1,758.8 $3,903.4 $3,949.9 $3,997.4
Long-term debt issuance 0.0 0.0 0.0 0.0 0.0
Long-term debt (repayments) (400.0) 0.0 (275.0) 0.0 0.0
Excess Cash Available for Revolver $2,061.3 $1,758.8 $3,628.4 $3,949.9 $3,997.4
Revolver
Beginning balance $0.0 $0.0 $0.0 $0.0 $0.0
Issuance / (repayment) of revolver Use – MIN statement ---> 0.0 0.0 0.0 0.0 0.0
x Ending balance $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Long-term debt
Beginning Balance $3,975.0 $3,575.0 $3,575.0 $3,300.0 $3,300.0
Issuance Assume LT debt is refinanced ---> 0.0 0.0 0.0 0.0 0.0
(Repayment / Amortization) Review 10K for repayment schedule -> (400.0) 0.0 (275.0) 0.0 0.0
x Ending Balance $3,975.0 $3,975.0 $3,975.0 $3,575.0 $3,575.0 $3,300.0 $3,300.0 $3,300.0
x Revolver Average Balance $0.0 $0.0 $0.0 $0.0 $0.0 Debt tranche Rate
Interest Rate 0.28% 0.28% 0.28% 0.28% 0.28% $700.0 6.75%
Interest Expense $0.0 $0.0 $0.0 $0.0 $0.0 400.0 5.00%
300.0 4.88%
x Long-term debt Average Balance $3,775.0 $3,575.0 $3,437.5 $3,300.0 $3,300.0 300.0 3.38%
Interest Rate 5.60% 5.60% 5.60% 5.60% 5.60% 300.0 4.50%
Interest Expense $211.4 $200.2 $192.5 $184.8 $184.8 200.0 8.88%
Weighted avg. 5.60%
Total Interest Expense $211.4 $200.2 $192.5 $184.8 $184.8
x Cash Balances: Average Balance $2,023.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0

Interest Rate 1.00% 1.00% 1.00% 1.00% 1.00%
x Interest (Income) ($20.2) ($20.0) ($20.0) ($20.0) ($20.0)
x END
Chubb Corporation – Pro Forma
($ millions)
Income Statement Final Forecast
2011 1st Pass Final
Full Year Historic Analysis Used in Pro Forma F'cast F'cast FULL YEAR
Year-end % Explanation % Explanation 2012 2012 Income Statement 2011 1Q 2011 2Q 2011 3Q 2011 4Q 2011 2012
Premium Earn 13,044 0% Last quarter Sales Growth 5% Economic Recovery (Cons 13,696 13,696 Premium Earn and Inv Income Premium Earn and Inv Income 3,261 3,261 3,261 3,261 13,044 13,696 QUARTERLY
Losses and Amo 9,783 75% % of Sales 74% 1% lower claims as % sales 10,135 10,135 Losses and Amort of Acq Costs Losses and Amort of Acq Costs 2,446 2,446 2,446 2,446 9,783 10,135 2010 Actual 2011 Fin Model Forecast
Gross Pft 3,261 ComputationSales - Losses and Amort Computation 3,561 3,561 Gross Pft Gross Pft 815 815 815 815 3,261 3,561 Quarter 2010 1Q 2010 2Q 2010 3Q 2010 4Q 2011 1Q 2011 2Q 2011 3Q 2011 4Q
Inv & Corp Exp 368 3% Historical % of Sales 3% Stable - status quo 386 386 Inv & Corp Exp Inv & Corp Exp 92 92 92 92 368 386 Op Inc/share (dil) 1.14 1.41 1.69 1.69 1.17 1.33 1.36 1.39
Other Op Exp 652 5% Plug (excl from 8K) 5% Historic % 685 685 Other Op Exp Other Op Exp 196 163 163 163 685 685 Average 1.38 1.46 1.35 1.53
Net Realized I 250 Excluded from Op Inc 0% Economic Recovery Increas 350 350 Net Realized Inv Gain Net Realized Inv Gain 100 50 50 50 250 350 High Estimate 1.62 1.63 1.55 1.14
Non-Op Inc - Plug (excl from 8K) 0% Zero - - Non-Op Inc Non-Op Inc - - - - - - 19 Street Estimates Low Estimate 1.15 1.36 1.68 1.35
Tax Inc 2,491 ComputationOp Inc - Int - Non-op Inc Computation 2,840 2,840 Tax Inc Tax Inc 627 610 610 610 2,458 2,840
Taxes 697 28% % of Taxable Income 28% Historic % of taxable incom 795 795 Taxes Taxes 176 171 171 171 688 795 FULL YEAR
Op Inc 1,544 ComputationGP - SGA - Dep Computation 2,490 2,490 Op Inc Op Inc 352 389 389 389 1,520 1,695 Actual Actual Forecast
Net Inc 1,770 ComputationTax Inc - Taxes Computation 2,045 2,045 Net Inc Net Inc 452 439 439 439 1,770 2,045 Year 2007 2008 2009 2010 2011 est 2012 est
Op Inc/share (diluted) 1.17 1.33 1.36 1.39 5.42 6.63 Op Inc/share (dil) 6.41 5.58 6.14 5.90 5.42 6.63
Net Inc/share (diluted) 1.51 1.50 1.53 1.57 6.31 8.00 Average 5.68 5.81
Dividend 400 $ value $/share x # shares outstdg $ value Constant $ value - share rep 400 400 Dividend Dividend 100 100 100 100 400 400 High Estimate 6.09 6.85
R/Inc 1,370 ComputationNet Inc-Div Computation 1,645 1,645 R/Inc R/Inc 352 339 339 339 1,370 1,645 20 Street Estimates Low Estimate 5.2 5.00
Balance Sheet Balance Sheet

Investments 43,192 331% Running total (+ RE - Div) n/a Running total (+NI-Div-Shar 42,920 42,920 Investments Investments* 42,184 42,520 42,856 43,192 43,192 42,920 1.8
Premiums Rec 1,957 4% % of Sales/4 4% % of Annual Sales 2,054 2,054 Premiums Rec Premiums Rec 1,957 1,957 1,957 1,957 1,957 2,054 2010 - 2011 Quarterly Operating EPS
Other 719 6% % of Sales Plug Plug since no excess cash 796 Err:522 Other Other 709 712 715 719 719 796 1.7 1.69 1.69
Oper. Cash 65 1% % of Sales 0.5% % of Sales 68 68 Oper. Cash Oper. Cash 65 65 65 65 65 68 1.6
Excess Cash - Plug Balance Bal Sheet Plug Excess Cash Excess Cash - - - - -
Curr Assets 44,915 45,254 45,593 45,933 45,933 45,839 1.5
Curr Assets 45,933 ComputationInv+A/R+Other+Cash+Ex Computation 45,839 Err:522 Curr Assets
Unpaid Losses 22,755 0% Relatively Constant 0% Constant to Activity Cycle 22,755 22,755 Unpaid Losses and Loss Expenses Unpaid Losses and Loss Expen 22,755 22,755 22,755 22,755 22,755 22,755 1.4 1.41 1.39
Unearned Pre 6,196 48% % of Sales 48% % of Sales 6,506 6,506 Unearned Prem Unearned Prem 6,196 6,196 6,196 6,196 6,196 6,506 1.36
1.3 1.33
Other CL 1,304 10% % of Sales 10% % of Sales - lower trend rev 1,370 1,370 Other CL Other CL 1,304 1,304 1,304 1,304 1,304 1,370
Curr Liabs 30,255 ComputationA/P + Other Computation 30,630 30,630 Curr Liabs Curr Liabs 30,255 30,255 30,255 30,255 30,255 30,630 1.2 1.17
1.14
1.1
Op W. Cap 15,677 ComputationCurr Assets - Curr Liabs Computation 15,208 Err:522 Op W. Cap Op W. Cap 14,659 14,999 15,337 15,677 15,677 15,208
1 Op Inc/share (dil)
Reinsurance R 1,631 13% % of Sales 13% % of Sales 1,712 1,712 Reinsurance Recoverable Reinsurance Recoverable 1,631 1,631 1,631 1,631 1,631 1,712 2010 1Q 2010 2Q 2010 3Q 2010 4Q 2011 1Q 2011 2Q 2011 3Q 2011 4Q
Other FA 2,801 21% % of Sales 21% % of Sales 2,941 2,941 Other FA Other FA 2,801 2,801 2,801 2,801 2,801 2,941
Total F Assets 4,432 ComputationNPPE + Other FA Computation 4,653 4,653 Total F Assets Total F Assets 4,432 4,432 4,432 4,432 4,432 4,653
6.8
Total Assets 20,109 ComputationW.Cap + Fixed Assets Computation 19,861 Err:522 Total Assets Total Assets 19,091 19,430 19,769 20,109 20,109 19,861 2007 - 2012 Annual EPS 6.63
6.6
S.T. Debt - Plug Balance Bal Sheet Plug - - S.T. Debt S.T. Debt - - - - - - 6.41
6.4
L.t. Debt 3,975 Low Debt Low Debt $400m matures 3,575 3,575 L.t. Debt L.t. Debt 3,975 3,975 3,975 3,975 3,975 3,575 6.2
Other Liabs 163 163 163 163 163 171 6.14
Other Liabs 163 1% % of Sales 1% % of Sales 171 171 Other Liabs
Total L.T. Liab 4,138 ComputationLT Debt + Other Computation 3,746 3,746 Total L.T. Liab Total L.T. Liab 4,138 4,138 4,138 4,138 4,138 3,746 6
5.90
5.8
Total Debt 4,138 ComputationST Debt + Lt Liabs Computation 3,746 3,746 Total Debt Total Debt 4,138 4,138 4,138 4,138 4,138 3,746
Shares Outsta 281 Repurchase 6.5m/quarter Repurchase 6.25m/quarter Shares Outstanding Shares Outstanding 300.0 293.5 287.0 280.5 280.5 255.5 5.6 5.58
Equity 15,971 ComputationLast Yrs EQ + R/inc - repuComputation (including 25mm share rep) 16,115 16,115 Equity Equity 14,953 15,292 15,631 15,971 15,971 16,115
5.4 5.42
Total Liab/Cap. 20,109 ComputationEquity + Total Debt Computation 19,861 19,861 Total Liab/Cap. Total Liab/Cap. 19,091 19,430 19,769 20,109 20,109 19,861
5.2
Assets 19,861 Err:522 Op Inc/share (dil)
5
Liabs & Eq 19,861 19,861 2007 2008 2009 2010 2011 est 2012 est
Diff (goes to "plug acct.) (0) Err:522
EARNINGS ESTIMATES
QTR(6/11
A FY(12/11) FY(12/12)
)
Average Estimate 1.38 1.46 5.68 5.81
Number of Analysts 19 19 20 20
High Estimate 1.62 1.63 6.09 6.85 FULL YEAR HEURISTIC
Low Estimate 1.15 1.36 5.2 5 Actual Forecast
Year Ago EPS 1.14 1.41 5.9 5.68 Year 2007 2008 2009 2010 2011 est 2012 est
Growth Rate 21.05% 3.77% -3.77% 2.25% Operating Income 2564 2045 2168 1900 1900 1995
Operating Income/share (dil) 6.41 5.58 6.14 5.90 5.90 6.20
Average Estimate 5.68 5.81
20 Street Estimates High Estimate 6.09 6.85
Low Estimate 5.20 5.00
2011 Operating Income Guidance
Mr. Finnegan said that based on management’s current outlook, he expected Chubb to achieve 2011
range of $5.35 to $5.75.
The operating income guidance for 2011 assumes:
· Net written premiums that are flat to up 2%.
· Catastrophe losses that have an impact of 3.5 percentage points on the 2011 combined rat
The assumed impact of catastrophe losses in 2011 is based on Chubb’s long-term average an
adjusted upward by 0.5 percentage points to take into account anticipated higher than usual c
largely resulting from the January floods in Australia. The impact of each percentage point
per share is approximately $0.25.
· A combined ratio between 91% and 93% for the year, based on combined ratios of 91% to 94% f
· A decline of 2% to 4% in property and casualty investment income after taxes.
· Approximately 291 million average diluted shares outstanding for the year.
The guidance and related assumptions are subject to the risks outlined in the company's forward-look
bb to achieve 2011 operating income per share in the
e 2011 combined ratio, compared to 5.7 points of impact in 2010.

ong-term average annual catastrophe losses of 3 percentage points
d higher than usual catastrophe losses in the first quarter of 2011
h percentage point of catastrophe losses on 2011 operating income
os of 91% to 94% for CPI, 94% to 97% for CCI and 85% to 88% for CSI.
pany's forward-looking information safe-harbor statements (see below).

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Net Inc 112 223 809 1,548 1,826 2,528 2,807 1,804 2,183 2,136 1,794 2,045
Dil. EPS $0.63 $1.29 $4.46 $8.01 $8.94 $5.98 $7.01 $4.92 $6.18 $6.76 $5.98 $6.82
Wt Avg Sh175.80 172.90 181.30 193.20 204.20 422.40 400.30 366.80 353.00 305.00 280.50 255.50
Net Income vs EPS

3000
2500
2000
1500
Net Inc
1000 Dil. EPS
500
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
450
400
350
300
250
200
150
100
50
0
400
350
300
250
200
150
100
50
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CHUBB CORP
10-Q
11/05/2010
Balance Sheet
Sept. 30, Dec. 31,

2010.00 2009.00
(in millions)
Assets
Invested Assets
Short Term Investments $2,046 $1,918
Fixed Maturities
Tax Exempt (cost $18,894 and $18,720) 20,248 19,587
Taxable (cost $16,071 and $16,470) 17,136 16,991
Equity Securities (cost $1,253 and $1,215) 1,404 1,433
Other Invested Assets 2,218 2,075
TOTAL INVESTED ASSETS 43,052 42,004
Cash 77 51
Accrued Investment Income 452 % of Rev 460
Premiums Receivable 1,974 0.15 2,101
Reinsurance Recoverable on Unpaid Losses 1,896 2,053
and Loss Expenses
Prepaid Reinsurance Premiums 319 308
Deferred Policy Acquisition Costs 1,563 1,533
Deferred Income Tax 272
Goodwill 467 467
Other Assets 1,282 1,200
TOTAL ASSETS t Avg Shares diluted 175.8 $173 181.3 193.2 $204 422.4
Liabilities
Unpaid Losses and Loss Expenses $22,755 $22,839

Unearned Premiums 6,133 6,153
Long Term Debt 3,975 3,975
Deferred Income Tax 148
Dividend Payable to Shareholders 115 118
Accrued Expenses and Other Liabilities 1,977 1,730
TOTAL LIABILITIES 35,103 34,815
Contingent Liabilities (Note 7)
Shareholders Equity
Common Stock $1 Par Value; 371,980,460 372 372

Shares
Paid-In Surplus 191 224
Retained Earnings 17,435 16,235
Accumulated Other Comprehensive Income 1,314 720
Treasury Stock, at Cost 67,047,923 and (3,333) (1,917)
39,972,796 Shares
TOTAL SHAREHOLDERS EQUITY 15,979 15,634
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $51,082 $50,449
____________________________
Created by Morningstar Document Research.
http://documentresearch.morningstar.com/
% of Rev
0.16
314.40
400.3 366.8 353 317.3
Balance Sheet - Capital
2001 2002 2003 2004 2005 2006 2007 2008 2009 9/30/2010
Excess Cash - - - - - - - - - -
2%
S/T Investments 957 1,757 2,696 1,308 1,899 2,254 1,839 2,478 1,918 2,046
Cash 26 42 52 42 36 38 49 56 51 77
Premiums Receivabl 1,693 2,041 2,188 2,336 2,319 2,314 2,227 2,201 2,101 1,974
Other Assets 1,332 1,768 1,406 3,307 1,429 1,514 1,366 1,271 1,200 1,282
Total C.A. 4,007 5,607 6,342 6,992 5,683 6,120 5,481 6,006 5,270 5,379
Unpaid Losses and
Loss Expenses 15,515 16,713 17,948 20,292 22,482 22,293 22,623 22,367 22,839 22,755
Other C.L. 5,859 8,583 9,077 11,028 10,705 11,655 10,046 8,655 8,001 8,225
Total C.L. 21,374 25,296 27,025 31,320 33,186 33,948 32,669 31,022 30,840 30,980
Working Cap (17,367) (19,689) (20,683) (24,328) (27,504) (27,828) (27,188) (25,016) (25,570) (25,601)
Reinsurance
Investments 16,827 19,256 23,926 29,851 32,735 35,439 38,242 36,260 40,086 40,167
Investment
Recoverable* 4,505 4,072 3,427 3,483 3,769 2,594 2,307 2,212 2,053 1,896
Associated F.A. 1,698 2,420 1,823 1,170 3,095 3,232 1,687 435 460 452
Other F.A. 2,412 2,727 2,843 2,764 2,779 2,892 2,857 3,516 2,580 2,349
Total F.A. 25,442 28,474 32,019 37,268 42,378 44,157 45,093 42,423 45,179 44,864
Capital 8,075 8,785 11,336 12,940 14,874 16,329 17,905 17,407 19,609 19,263
S.T. Debt 199 - - - - - - - - (839)
L.T. Debt 1,351 1,959 2,814 2,814 2,467 2,466 3,460 3,975 3,975 3,975
Other - - - - - - - - - 148
Total L.T. 1,351 1,959 2,814 2,814 2,467 2,466 3,460 3,975 3,975 4,123
Total Liab 1,550 1,959 2,814 2,814 2,467 2,466 3,460 3,975 3,975 3,284
Stk Equity 6,525 6,826 8,522 10,126 12,407 13,863 14,445 13,432 15,634 15,979
Capital 8,075 8,785 11,336 12,940 14,874 16,329 17,905 17,407 19,609 19,263
Source: Bloomberg, Mergent Online

*on Unpaid Losses and Loss Expenses
Corporation (CB)
e Sheet - Capital
ons, except share data)
Excess Cash
S/T Investments
Cash
Premiums Receivable
Other Assets
Total C.A.
Unpaid Losses and
Loss Expenses
Other C.L.
Total C.L.
Working Cap
Reinsurance
Investments
Investment
Recoverable*
Associated F.A.
Other F.A.
Total F.A.
Capital
S.T. Debt
L.T. Debt
Other
Total L.T.
Total Liab
Stk Eqty
Capital
Balance Sheet - Indexed
2001 2002 2003 2004 2005 2006 2007 2008 2009 9/30/2010
Excess Cash n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
2%
S/T Investments 100.00 183.60 281.76 136.65 198.42 235.58 192.20 258.99 200.46 213.84
Cash 100.00 162.40 202.33 161.63 137.98 147.29 189.92 217.05 197.67 298.45
Premiums Receivabl 100.00 120.55 129.25 138.02 137.00 136.70 131.56 130.02 124.11 116.61
Other Assets 100.00 132.75 105.59 248.34 107.34 113.71 102.59 95.46 90.12 96.28
Total C.A. 100.00 139.93 158.28 174.50 141.82 152.74 136.79 149.89 131.52 134.24
Unpaid Losses and L 100.00 107.72 115.68 130.79 144.90 143.69 145.81 144.16 147.21 146.67
Other 100.00 146.50 154.93 188.23 182.71 198.93 171.47 147.73 136.56 140.39
Total C.L. 100.00 118.35 126.44 146.54 155.27 158.83 152.85 145.14 144.29 144.94
Working Cap n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Investments 100.00 114.43 142.19 177.40 194.54 210.61 227.26 215.49 238.22 238.70
Reinsurance Recover 100.00 90.37 76.06 77.32 83.66 57.58 51.21 49.10 45.57 42.08
Investment Associate 100.00 142.51 107.34 68.93 182.29 190.34 99.35 25.62 27.09 26.62
Other F.A. 100.00 113.08 117.89 114.60 115.22 119.91 118.46 145.78 106.97 97.40
Total F.A. 100.00 111.92 125.85 146.48 166.57 173.56 177.24 166.74 177.58 176.34
Capital 100.00 108.79 140.38 160.24 184.20 202.21 221.73 215.56 242.83 238.54
S.T. Debt 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -421.61
L.T. Debt 100.00 145.01 208.28 208.27 182.63 182.53 256.11 294.23 294.23 294.23
Other n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Total L.T. 100.00 145.01 208.28 208.27 182.63 182.53 256.11 294.23 294.23 305.18
Total Liab 100.00 126.39 181.54 181.53 159.18 159.10 223.23 256.45 256.45 211.87
Stk Eqty 100.00 104.60 130.60 155.19 190.14 212.45 221.37 205.84 239.59 244.88
Capital 100.00 108.79 140.38 160.24 184.20 202.21 221.73 215.56 242.83 238.54
Source: Derived
orporation (CB)
eet - Indexed
xcept share data)
Excess Cash
S/T Investments
Cash
Premiums Receivable
Other Assets
Total C.A.
Unpaid Losses and Loss Expenses

Other
Total C.L.
Working Cap
Investments
Reinsurance Recoverable*
Investment Associated F.A.
Other F.A.
Total F.A.
Capital
S.T. Debt
L.T. Debt
Other
Total L.T.
Total Liab
Stk Eqty
Capital
Balance Sheet - Common Size
2001 2002 2003 2004 2005 2006 2007 2008 2009 9/30/2010
Excess Cash n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
2%
S/T Investments 11.85 20.00 23.78 10.10 12.76 13.80 10.27 14.24 9.78 10.62
Cash 0.32 0.48 0.46 0.32 0.24 0.23 0.27 0.32 0.26 0.40
Premiums Receivabl 20.96 23.23 19.30 18.06 15.59 14.17 12.44 12.64 10.71 10.25
Other Assets 16.49 20.12 12.40 25.55 9.61 9.27 7.63 7.30 6.12 6.66
Total C.A. 49.62 63.82 55.95 54.04 38.20 37.48 30.61 34.50 26.88 27.92
Unpaid Losses and L 192.13 190.25 158.33 156.81 151.14 136.52 126.35 128.49 116.47 118.13
Other 72.55 97.70 80.07 85.23 71.97 71.38 56.11 49.72 40.80 42.70
Total C.L. 264.68 287.95 238.40 242.04 223.11 207.90 182.46 178.22 157.27 160.83
Working Cap n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Investments 208.38 219.19 211.06 230.68 220.08 217.03 213.58 208.31 204.43 208.52
Reinsurance Recover 55.79 46.35 30.23 26.92 25.34 15.89 12.88 12.71 10.47 9.84
Investment Associate 21.03 27.55 16.08 9.04 20.81 19.79 9.42 2.50 2.35 2.35
Other F.A. 29.87 31.04 25.08 21.36 18.68 17.71 15.96 20.20 13.16 12.19
Total F.A. 315.06 324.13 282.45 288.00 284.91 270.42 251.85 243.71 230.40 232.90
Capital 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
S.T. Debt 2.46 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
L.T. Debt 16.73 22.30 24.82 21.74 16.59 15.10 19.32 22.84 20.27 20.64
Other n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.77
Total L.T. 16.73 22.30 24.82 21.74 16.59 15.10 19.32 22.84 20.27 21.40
Total Liab 19.19 22.30 24.82 21.74 16.59 15.10 19.32 22.84 20.27 17.05
Stk Eqty 80.81 77.70 75.18 78.26 83.41 84.90 80.68 77.16 79.73 82.95
Capital 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Source: Derived
orporation (CB)
- Common Size
xcept share data)
Excess Cash
2%
S/T Investments
Cash
Premiums Receivable
Other Assets
Total C.A.
Unpaid Losses and Loss Expenses

Other
Total C.L.
Working Cap
Investments
Reinsurance Recoverable*
Investment Associated F.A.
Other F.A.
Total F.A.
Capital
S.T. Debt
L.T. Debt
Other
Total L.T.
Total Liab
Stk Eqty
Capital
The Income
ChubbStatement
Corporation
- Indexed
(CB)
2001 2002 2003 2004 2005 2006 2007 2008 2009

Operating Rev* 100 119 148 170 179 180 180 178 170
COGS** 100 114 132 143 151 133 132 141 130
Gross profit 100 184 374 548 579 836 851 700 726
SG&A 100 113 170 151 183 209 161 169 168
R&D n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Other Op Costs 100 123 146 130 106 114 92 91 86
Op Inc (2002 base) n.a. 100 767 1,671 1,864 2,963 3,219 2,509 2,655
Int*** n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Non-op Inc (Loss) 100 50 74 190 334 213 326 -323 20
Tax Inc (2002 base) n.a. 100 554 1,228 1,453 2,093 2,338 1,429 1,759
Taxes (2003 base) n.a. n.a. 100 417 498 799 905 483 624
Net Inc 100 200 725 1,389 1,638 2,267 2,517 1,618 1,958
EPS 100 202 697 1,259 1,423 946 1,101 772 963
Dil. EPS 100 203 703 1,264 1,410 944 1,106 775 975
Div. PS 100 103 106 115 126 74 85 97 103
Source: Derived

Corporation
ement - Indexed
(CB)
except share data)
E 9/30/2010
176 Operating Rev*
140 COGS**
669 Gross profit
167 SG&A
n.a. R&D
87 Other Op Costs
2,391 Op Inc (2002 base)
n.a. Int***
324 Non-op Inc (Loss)
1,793 Tax Inc (2002 base)
678 Taxes (2003 base)
1,949 Net Inc
1,029 EPS
1,065 Dil. EPS
109 Div. PS
Income Statement - Common Size
2001 2002 2003 2004 2005 2006 2007 2008 2009

Operating Rev* 100 100 100 100 100 100 100 100 100
Investment Income 13 11 10 10 10 11 13 13 13
COGS** 93 90 83 78 78 69 68 74 71
Gross profit 7 10 17 22 22 31 32 26 29
SG&A 3 3 3 2 3 3 2 3 3
R&D 0 0 0 0 0 0 0 0 0
Other Op Costs 6 7 6 5 4 4 3 3 3
Op Inc (2002 base) -2 1 8 14 15 24 26 20 23
Int*** 0 0 0 0 0 0 0 0 0
Non-op Inc (Loss) 2 1 1 2 3 2 3 -3 0
Tax Inc (2002 base) -1 2 8 16 18 26 29 18 23
Taxes (2003 base) -2 -1 1 4 5 7 8 4 6
Net Inc 1 2 7 12 13 18 20 13 17
EPS $0.01 $0.01 $0.04 $0.06 $0.07 $0.04 $0.05 $0.04 $0.05
Dil. EPS $0.01 $0.01 $0.04 $0.06 $0.07 $0.04 $0.05 $0.04 $0.05
Div. PS n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Source: Derived

bement
Corporation (CB)
- Common Size
ions, except share data)
Y/E 9/30/2010
100 Net Revenue
13
75 COS
25 Gross profit
3 SG&A
0 R&D
3 Other Op Costs
20 Op Inc
0 Int
3 Non-op Inc
23 Tax Inc
6 Taxes
16 Net Inc
$0.05 EPS
$0.05 Dil. EPS
n.a. DPS
DuPont Analysis
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
ROE 1.71 3.27 9.49 15.29 14.72 18.24 19.43 13.43 13.96 13.60
Lev 1.24 1.29 1.33 1.28 1.20 1.18 1.24 1.30 1.25 1.21
ROC 1.38 2.54 7.13 11.97 12.28 15.48 15.68 10.36 11.13 11.28
NPM 1.46 2.45 7.15 11.95 13.33 18.37 20.44 13.27 16.80 16.20
Capital T/O 0.95 1.03 1.00 1.00 0.92 0.84 0.77 0.78 0.66 0.70
Source: Derived
Notes:
ROE = Net Income / Stk Equity
= Profit Margin x Capital Turnover x Financial Leverage
= NPM x Capital T/O x Lev
Ratios
2001 2002 2003 2004 2005 2006 2007 2008 2009
Liquidity
Current 0.19 0.22 0.23 0.22 0.17 0.18 0.17 0.19 0.17
Acid Test 0.14 0.15 0.13 0.18 0.11 0.11 0.11 0.11 0.11
Activity
Av Coll Prd (days) 80.88 82.01 70.61 65.81 61.79 61.39 59.19 59.11 59.02
Inv T/O (# times) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Av Pmt Prd (days) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
F.A.T.O. (# times) 0.30 0.32 0.35 0.35 0.32 0.31 0.30 0.32 0.29
Capital T/O (# times) 0.946 1.034 0.998 1.001 0.921 0.843 0.767 0.781 0.663
Capital T/O (w/o
Goodwill and Intag.) 1.004 1.092 1.041 1.039 0.951 0.867 0.788 0.802 0.679
Solvency
Debt Ratio 0.78 0.80 0.78 0.77 0.74 0.72 0.71 0.72 0.69
Leverage 1.24 1.29 1.33 1.28 1.20 1.18 1.24 1.30 1.25
X Int Earnd* n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Profitability
OROA -2.24 1.26 7.49 14.30 13.87 20.09 19.90 15.96 14.99
ROC 1.38 2.54 7.13 11.97 12.28 15.48 15.68 10.36 11.13
ROE 1.71 3.27 9.49 15.29 14.72 18.24 19.43 13.43 13.96
NPM 1.46 2.45 7.15 11.95 13.33 18.37 20.44 13.27 16.80
GPM 6.68 10.35 16.86 21.57 21.57 31.00 31.62 26.27 28.51
Loss Ratio 80.80 75.40 67.60 63.10 64.30 55.20 52.80 58.50 55.40
Expense Ratio 32.60 31.30 30.40 29.20 28.00 29.00 30.10 30.20 30.60
Combined Ratio 113.40 106.70 98.00 92.30 92.30 84.20 82.90 88.70 86.00
Source: Derived
*Interest Expense n.a, negligible - for example ------------------> 135 134 206 240 248
)
Traveler's Companies Comp Ratios
2010
0.18
0.11
Asset Management 09/30/2010
53.72 Total Asset Turnover 0.24

n.a. Cash & Equivalents Turnover 91.19
n.a.
0.30
0.70
0.71
Debt Management 09/30/2010
0.68 Total Debt to Equity 0.23

1.21
n.a.
Profitability Ratios 09/30/2010
13.74 ROA % (Net) 3.71

11.28 Operating ROE % (Net) 12.5
13.60 Loss Ratio % 59.26
16.20
25.48
Insurance Ratios CYE 2010
57.95
31.24
89.19 Combined Ratio 95
Source: Traveler's Conference Call (http://investor.travelers.com), Mergent Online
Traveler's Companies Comp Ratios
Profitability Ratios 09/30/2010
ROA % (Net) 3.71
ROE % (Net) 14.88
Loss Ratio % 59.26
Calculated Tax Rate % 26.7
Debt Management 09/30/2010

Total Debt to Equity 0.23
Asset Management 09/30/2010

Total Asset Turnover 0.24
Cash & Equivalents Turnove91.19
Per Share 09/30/2010

Cash Flow per Share 11.42
Book Value per Share 59.27
Ticker CB US Equity #NAME?
Currency USD
Name CHUBB CORP
Start Date 1/1/2000
End Date 1/25/2011
Periodicity Calendar Annually
Display Order Chronological
Data Type As Reported Data
Reported Status Most Recent
Consolidation Level Default
Date: CY1 2000 CY1 2001 CY1 2002 CY1 2003 CY1 2004 CY1 2005
Status: Original Restated Restated Original Original Original
Cash Flow
Cash From Operating Activities
Change in Deferred Policy Acquisition Costs -62.3 -86.8 -212.5 -168.3 -76.6 -16.7
NET INCOME 714.6 111.5 222.9 808.8 1548.4 1825.9
Increase in Unpaid Losses and Loss Expenses, Net
Decrease in Unearned Premiums, Net 187.3 305.1 962 885.4 417.2 106.6
Label -175.1 -283 -347.8 -147.4 -148.4 17.2
Decrease in Reinsurance Recoverable on Paid Losses
Amortization of Premiums and Discounts on Fixed Maturities 216.8
Depreciation 84.4 95.1 103.1 108 105.6 90.8
Total Realized Investment Gains (Losses), Net -51.5 -0.8 -33.9 -84.4 -218.2 -383.5
Other, Net -10.3 #NAME? 16.7 179 88.1 97.2
NET CASH PROVIDED BY OPERATING ACTIVITIES 964.3 1019.2 2215.7 3363.8 4088.6 3755.5
Increase in Unpaid Losses and Loss Expenses, Net 2287.5 1903.8

Deferred Income Tax -25.3 -189.9 -126.7 -96.9 85 83.8
Decrease in Liability Related to Principal andInterest Guarantee -186.4
Increase in Unpaid Losses and Loss Expenses, Net 302.5 958.4 1631.9 1879.6
Cash From Investing Activities
Proceeds from Sale of Interest in Associated Aviation Underwriters, I 55
Proceeds from Fixed Maturities - Sales 2180.8 4581.5 4559.9 6165.3 3920.3 7481.7
Proceeds from Fixed Maturities - Maturities, Calls and Redemptions 741.6 1246.2 2086.9 2105.5 2048.1 1683.4
Proceeds from Sales of Equity Securities 453.5 458.1 387.3 501 779.7 697.5
Purchases of Fixed Maturities -3463.3 -6307.2 -8205.8 -12139.5 -11465.2 -12206.6
Purchases of Equity Securities -579.4 -374.6 -467.7 -824 -860.4 -862.1
Other, Net Wt Avg Shares diluted 175.8 172.9 181.3 193.2 204.2
Purchase of Investment in Partially Owned Company -276.5
Other Investing Activities 126.6
Other Investing Activities -1.1
Increase (Decrease) in Net Payable from Security Transactions not Set -110.6
Increase (Decrease) in Net Payable from Security Transactions not Set
Other, Net
Investments in Other Invested Assets, Net
Decrease (Increase) in Short Term Investments, Net -351.2 -799.9 -939.2 -591
Increase (Decrease) in Net Payable from Security Transactions not Set
Purchases of Property and Equipment, Net -138.7 -185.2 -141.9 -74.3-64.7 -40.5
Decrease (Increase) in Short Term Investments, Net 125.5 1388.4
NET CASH USED IN INVESTING ACTIVITIES -623.5 -1164.9 -2527 -5233.1 -4128.3 -3850.8
Cash from Financing Activities

Repurchase of Shares -242.3 -555.6 -99.4
Increase (Decrease) in Short Term Debt, Net 199 -199
Increase (Decrease) in Policyholders Account -8.5 168.6 347.2 44.2 -276.5
Proceeds from Issuance of Long Term Debt 600 600 960
Repayment of Long Term Debt -5.4 -2.8 -7.9 -100.4 -0.4 -300.7
Other, Net 16.3 5 -3.3 -6.7
Other Financing Activities 17.9
Decrease in Funds Held Under Deposit Contracts
Other, Net
Decrease in Funds Held under Deposit Contracts
Proceeds from Issuance of Common Stock Under Incentive and Purchase P 119.3
Proceeds from Issuance of Common Stock UnderIncentive and Purchase Pl 146.8 106 43.8
Proceeds from Common Stock Offering 886.8
Issuance of Common Stock 258.4
Proceeds from Common Stock Issued Upon Settlement of Equity Unit Warr 600
Proceeds from Common Stock Issued Upon Settlement of Equity Unit Purc
Proceeds from Issuance of Common Stock Under Stock-Based Employee Com
Proceeds from Issuance of Common Stock Under Stock-Based Employee Com
Repurchase of Shares -134.9
Dividends Paid to Shareholders -229 -234.8 -237.6 -251.1 -290.9 -330.1
Net Increase (Decrease) in Cash -0.3 3.4 16.1 10.3 -10.5 -6.1
Stock-Based Employee Compensation Plans 531.4
NET CASH USED IN FINANCING ACTIVITIES -341.1 149.1 327.4 1879.6 29.2 89.2
Reference Items
Cash Paid for Interest 52.7 55.5 85 122.2 135.6 137.9
Federal and foreign income taxes paid 159.7 53.4 38.5 133.9 377.7 409.4
CY1 2006CY1 2007CY1 2008CY1 2009
Original Original Original Original
-19
2528 2807 1804 2183000000
262000000
16 -74 -46 -254000000
5 100000000
-225 258 148 6000000
233 233 206 186000000
81 69 64 69000000
-245 -374 371 -23000000
-126 -345 -392 -94000000
3342 3191 2544 2435000000
986
108
617 389
3623 4616 4145 3029000000

1579 1790 2173 2578000000
186 360 432 394000000
-6758 -7909 -7125-7390000000
-377 -650 -191 -37000000 314.40
422.4 400.3 366.8 353 317.3
50
-106 -18
12 3
-37000000
-355 -654 563000000
-264 -164 -45 72000000
-53 -53 -46 -52000000
455
-2369 -1649 -1326 -874000000
-29
1800 1200 0
-800 -685 0
-28 0
-8
-17
-53000000
460
130 109
34000000
-1228 -2185 -1336-1060000000
-403 -451 -471 -487000000
2 11 7 -5000000
229
-971 -1531 -1211-1566000000
129 191 232 244

847 1140 739 720

15 Multiples Analysis

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PREMIUM RESOURCES & SERVICES

Sub-header Dollars in millions, except per share ç cell F5 is named "subheader"

Last Fiscal Year End 12/31/2010 ç cell is named "FYE"

X Final Inputs 2011 Step

2001 2002 2003 2004 2005 2006 2007

Lev 1.24 1.29 1.33 1.28 1.20 1.18 1.24

NPM 1.46 2.45 7.15 11.95 13.33 18.37 20.44

Multiple/Valuation Meth Multiple Estimated Value Weight Contribution

Final Intrinsic Value 50.15

1.30 1.25 1.21 1.36

13.27 16.80 16.20 12.36

P/R Ratio (TTM

3-Jan-11 1,257.62 1,302.67 1,257.62 1,286.12 ### 1,286.12 Fwd P/E

NOPLAT 2,072 2,169 2,197 2,239 2,281 Total Inve

Free Cash Flow

Discount factor 1.00 0.93 0.86 0.80 0.74 0.74

PV of Explicit CFs 9,089

Equity Value 12,416

Shares Outstanding (mil) 297.30

Intrinsic Value 41.76

Terminal Growth Rate and WACC Sensitivity Table

Terminal Growth Rate

(27,494) (27,488) (26,808)

2008 2009 2010

$2,478.0 $1,918.0 $2,046.0

"One-way, vertical table"

Loss Ratio $5.49 Expense Ratio $5.49

1.00% Step function 1.00% Step function

2011 Sales Growth Rate Step function

1.00% Step function

Other Revenues 8.8 67.3 115.1 220 49 32 13 16

Investments 36,260.0 40,086.0 40,167.0 39,811.1 40,113.4 41,358.7 42,633.0 43,937.1

Revolver 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

To deal with "negative zeros"

Date: CY1 2001 CY1 2002 CY1 2003 CY1 2004

1,899 2,254 1,839 2,478 1,918 2046

48,061 50,277 50,574 48,429 50,449 50243

22,482 22,293 22,623 22,367 22,839 22755

2,807 1,804 2,183 1,710

Projected Year Ending December 31,

Net Change in Cash 15.3 (241.2) 1,628.4 1,949.9 1,997.4

Working Capital Balances

Ratios and Assumptions

Sales $11,828.0 $11,331.0 $11,215.0 $11,215.0 $11,775.8 $12,011.3 $12,251.5 $12,496.5

Beginning Investments $40,167.0 $39,811.1 $40,113.4 $41,358.7 $42,633.0

Sales $11,828.0 $11,331.0 $11,215.0 $11,215.0 $11,775.8 $12,011.3 $12,251.5 $12,496.5

Beginning definite life intangibles $1,896.0 $1,896.0 $1,896.0 $1,896.0 $1,896.0

New shares from exercised options

x Beginning balance - basic (actual) 304.000 274.000 259.000 259.000 259.000

x Cash Balances: Average Balance $2,023.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0

Balance Sheet Balance Sheet

· Net written premiums that are flat to up 2%.

· A decline of 2% to 4% in property and casualty investment income after taxes.

e 2011 combined ratio, compared to 5.7 points of impact in 2010.

pany's forward-looking information safe-harbor statements (see below).

Net Income vs EPS

Sept. 30, Dec. 31,

TOTAL INVESTED ASSETS 43,052 42,004

Unpaid Losses and Loss Expenses $22,755 $22,839

Contingent Liabilities (Note 7)

Common Stock $1 Par Value; 371,980,460 372 372

TOTAL SHAREHOLDERS EQUITY 15,979 15,634