Chubb (CHB) 10-K 26 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 12, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	CHUBB CORP
Entity Central Index Key	0000020171
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$13,920,104,349
Entity Common Stock, Shares Outstanding (actual number of shares)		328,574,448

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues
Premiums Earned	$11,331	$11,828	$11,946
Investment Income	1,649	1,732	1,738
Other Revenues	13	32	49
Realized Investment Gains (Losses), Net
Total Other-Than-Temporary Impairment Losses on Investments	(132)	(446)	(109)
Other-Than-Temporary Impairment Losses on Investments Recognized in Other Comprehensive Income	20	0	0
Other Realized Investment Gains, Net	135	75	483
Total Realized Investment Gains (Losses), Net	23	(371)	374
TOTAL REVENUES	13,016	13,221	14,107
Losses and Expenses
Losses and Loss Expenses	6,268	6,898	6,299
Amortization of Deferred Policy Acquisition Costs	3,021	3,123	3,092
Other Insurance Operating Costs and Expenses	416	441	444
Investment Expenses	39	32	35
Other Expenses	16	36	48
Corporate Expenses	294	284	252
TOTAL LOSSES AND EXPENSES	10,054	10,814	10,170
INCOME BEFORE FEDERAL AND FOREIGN INCOME TAX	2,962	2,407	3,937
Federal and Foreign Income Tax	779	603	1,130
NET INCOME	$2,183	$1,804	$2,807
Net Income Per Share
Basic	6.24	$5	7.13
Diluted	6.18	4.92	7.01

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Assets
Short Term Investments	$1,918	$2,478
Fixed Maturities
Tax Exempt (cost $18,720 and $18,299)	19,587	18,345
Taxable (cost $16,470 and $14,592)	16,991	14,410
Equity Securities (cost $1,215 and $1,563)	1,433	1,479
Other Invested Assets	2,075	2,026
TOTAL INVESTED ASSETS	42,004	38,738
Cash	51	56
Accrued Investment Income	460	435
Premiums Receivable	2,101	2,201
Reinsurance Recoverable on Unpaid Losses and Loss Expenses	2,053	2,212
Prepaid Reinsurance Premiums	308	373
Deferred Policy Acquisition Costs	1,533	1,532
Deferred Income Tax	272	1,144
Goodwill	467	467
Other Assets	1,200	1,271
TOTAL ASSETS	50,449	48,429
Liabilities
Unpaid Losses and Loss Expenses	22,839	22,367
Unearned Premiums	6,153	6,367
Long Term Debt	3,975	3,975
Dividend Payable to Shareholders	118	118
Accrued Expenses and Other Liabilities	1,730	2,170
TOTAL LIABILITIES	34,815	34,997
Shareholders' Equity
Preferred Stock - Authorized 8,000,000 Shares; $1 Par Value; Issued - None	0	0
Common Stock - Authorized 1,200,000,000 Shares; $1 Par Value; Issued 371,980,460 and 371,980,710 Shares	372	372
Paid-In Surplus	224	253
Retained Earnings	16,235	14,509
Accumulated Other Comprehensive Income (Loss)	720	(735)
Treasury Stock, at Cost - 39,972,796 and 19,726,097 Shares	(1,917)	(967)
TOTAL SHAREHOLDERS' EQUITY	15,634	13,432
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$50,449	$48,429

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Fixed Maturities
Tax Exempt, Cost	$18,720	$18,299
Taxable, Cost	16,470	14,592
Equity Securities, Cost	$1,215	$1,563
Shareholders' Equity
Preferred Stock, Par Value	1	1
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Authorized	8,000,000	8,000,000
Common Stock, Par Value	1	1
Common Stock, Shares Issued	371,980,460	371,980,710
Common Stock, Shares Authorized	1,200,000,000	1,200,000,000
Treasury Stock, Shares	39,972,796	19,726,097

Consolidated Statements of Equi

Consolidated Statements of Equity (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Balance, Beginning of Year	$13,432	$14,445	$13,863
Net Income	2,183	1,804	2,807
Change During Year, Net of Tax	1,485	(1,179)	242
Accumulated Other Comprehensive Income (Loss)	720	(735)
Balance, End of Year	15,634	13,432	14,445
Preferred Stock
Balance, Beginning of Year	0	0	0
Balance, End of Year	0	0	0
Common Stock
Balance, Beginning of Year	372	375	411
Repurchase of Shares	0	(4)	(42)
Shares Issued Under Stock-Based Employee Compensation Plans	0	1	6
Balance, End of Year	372	372	375
Paid-In Surplus
Balance, Beginning of Year	253	346	1,539
Repurchase of Shares	0	(114)	(1,361)
Changes Related to Stock-Based Employee Compensation (includes tax benefit of $6, $32, and $16)	(29)	21	168
Balance, End of Year	224	253	346
Retained Earnings
Balance, Beginning of Year	14,509	13,280	11,711
Cumulative Effect, as of April 1, 2009, of Change in Accounting Principle, Net of Tax	30	0	0
Net Income	2,183	1,804	2,807
Dividends Declared (per share $1.40, $1.32 and $1.16)	(487)	(479)	(457)
Repurchase of Shares	0	(96)	(781)
Balance, End of Year	16,235	14,509	13,280
Accumulated Other Comprehensive Income (Loss)
Balance, Beginning of Year	(735)	444
Balance, End of Year	720	(735)	444
Unrealized Appreciation (Depreciation) of Investments Including Unrealized Other-Than-Temporary Impairment Losses
Balance, Beginning of Year	(143)	526	392
Cumulative Effect, as of April 1, 2009, of Change in Accounting Principle, Net of Tax	(30)	0	0
Change During Year, Net of Tax	1,217	(669)	134
Balance, End of Year	1,044	(143)	526
Foreign Currency Translation Gains (Losses)
Balance, Beginning of Year	(10)	216	91
Change During Year, Net of Tax	170	(226)	125
Balance, End of Year	160	(10)	216
Postretirement Benefit Costs Not Yet Recognized in Net Income
Balance, Beginning of Year	(582)	(298)	(281)
Change During Year, Net of Tax	98	(284)	(17)
Balance, End of Year	(484)	(582)	(298)
Treasury Stock, at Cost
Balance, Beginning of Year	(967)	0	0
Repurchase of Shares	(1,065)	(1,097)	0
Shares Issued Under Stock-Based Employee Compensation Plans	115	130	0
Balance, End of Year	($1,917)	($967)	$0

1_Consolidated Statements of Eq

Consolidated Statements of Equity (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Paid-In Surplus
Tax Benefit, Stock-Based Employee Compensation	$6	$32	$16
Retained Earnings
Dividends Declared Per Share	1.4	1.32	1.16

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows from Operating Activities
Net Income	$2,183	$1,804	$2,807
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Increase in Unpaid Losses and Loss Expenses, Net	262	389	350
Decrease in Unearned Premiums, Net	(254)	(46)	(74)
Decrease in Premiums Receivable	100	26	87
Decrease in Reinsurance Recoverable on Paid Losses	6	148	258
Amortization of Premiums and Discounts on Fixed Maturities	186	206	233
Depreciation	69	64	69
Realized Investment Losses (Gains), Net	(23)	371	(374)
Other, Net	(94)	(418)	(165)
NET CASH PROVIDED BY OPERATING ACTIVITIES	2,435	2,544	3,191
Cash Flows from Investing Activities
Proceeds from Fixed Maturities - Sales	3,029	4,145	4,616
Proceeds from Fixed Maturities - Maturities, Calls and Redemptions	2,578	2,173	1,790
Proceeds from Sales of Equity Securities	394	432	360
Purchases of Fixed Maturities	(7,390)	(7,125)	(7,909)
Purchases of Equity Securities	(37)	(191)	(650)
Investments in Other Invested Assets, Net	(37)	(45)	(164)
Decrease (Increase) in Short Term Investments, Net	563	(654)	455
Increase (Decrease) in Net Payable from Security Transactions not Settled	72	(18)	(106)
Purchases of Property and Equipment, Net	(52)	(46)	(53)
Other, Net	6	3	12
NET CASH USED IN INVESTING ACTIVITIES	(874)	(1,326)	(1,649)
Cash Flows from Financing Activities
Proceeds from Issuance of Long Term Debt	0	1,200	1,800
Repayment of Long Term Debt	0	(685)	(800)
Decrease in Funds Held under Deposit Contracts	(53)	(19)	(8)
Proceeds from Issuance of Common Stock Under Stock-Based Employee Compensation Plans	34	109	130
Repurchase of Shares	(1,060)	(1,336)	(2,185)
Dividends Paid to Shareholders	(487)	(471)	(451)
Other, Net	0	(9)	(17)
NET CASH USED IN FINANCING ACTIVITIES	(1,566)	(1,211)	(1,531)
Net Increase (Decrease) in Cash	(5)	7	11
Cash at Beginning of Year	56	49	38
CASH AT END OF YEAR	$51	$56	$49

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statements of Comprehensive Income
Net Income	$2,183	$1,804	$2,807
Other Comprehensive Income (Loss), Net of Tax
Change in Unrealized Appreciation or Depreciation of Investments	1,223	(669)	134
Change in Unrealized Other-Than-Temporary Impairment Losses on Investments	(6)	0	0
Foreign Currency Translation Gains (Losses)	170	(226)	125
Change in Postretirement Benefit Costs Not Yet Recognized in Net Income	98	(284)	(17)
Total Other Comprehensive Income (Loss), Net of Tax	1,485	(1,179)	242
COMPREHENSIVE INCOME	$3,668	$625	$3,049

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies (a)Basis of Presentation The Chubb Corporation (Chubb) is a holding company with subsidiaries principally engaged in the property and casualty insurance business. The property and casualty insurance subsidiaries (the PC Group) underwrite most lines of property and casualty insurance in the United States, Canada, Europe, Australia and parts of Latin America and Asia. The geographic distribution of property and casualty business in the United States is broad with a particularly strong market presence in the Northeast. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Chubb and its subsidiaries (collectively, the Corporation). Significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements include amounts based on informed estimates and judgments of management for transactions that are not yet complete. Such estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Effective April1, 2009, the Corporation adopted new guidance issued by the Financial Accounting Standards Board (FASB) related to the recognition and presentation of other-than-temporary impairments. This guidance may not be retroactively applied to prior periods financial statements; accordingly, consolidated financial statements for periods prior to April1, 2009 have not been restated for this change in accounting policy. This accounting change is further described in Note (2)(b). Certain amounts in the consolidated financial statements for prior years have been reclassified to conform with the 2009 presentation. (b)Invested Assets Short term investments, which have an original maturity of one year or less, are carried at amortized cost, which approximates fair value. Fixed maturities, which include bonds and redeemable preferred stocks, are purchased to support the investment strategies of the Corporation. These strategies are developed based on many factors including rate of return, maturity, credit risk, tax considerations and regulatory requirements. Fixed maturities are classified as available-for-sale and carried at fair value as of the balance sheet date. Fixed maturities may be sold prior to maturity to support the investment strategies of the Corporation. Premiums and discounts arising from the purchase of fixed maturities are amortized using the interest method over the estimated remaining term of the securities. For mortgage-backed securities, prepayment assumptions are reviewed periodically and revised as necessary. Equity securities, which include common stocks and non-redeemable preferred stocks, are carried at fair value as of the balance sheet date. Unrealized appreciation or depreciation, including unrealized other-than-temporary impairment losses (se

Adoption of New Accounting Pron

Adoption of New Accounting Pronouncements
	12 Months Ended Dec. 31, 2009 USD / shares
Adoption of New Accounting Pronouncements [Abstract]
Adoption of New Accounting Pronouncements	(2) Adoption of New Accounting Pronouncements (a)Effective April1, 2009, the Corporation adopted new guidance issued by the FASB related to determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not orderly. The FASB provided additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased. The FASB also included guidance on identifying circumstances that indicate a transaction is not orderly. The adoption of this guidance did not have a significant effect on the Corporations financial position or results of operations. (b)Effective April1, 2009, the Corporation adopted new guidance issued by the FASB related to the recognition and presentation of other-than-temporary impairments. The FASB modified the guidance on the recognition of other-than-temporary impairments of debt securities. Under this guidance, an entity is required to recognize an other-than-temporary impairment when the entity concludes it has the intent to sell or it is more likely than not the entity will be required to sell an impaired debt security before the security recovers to its amortized cost value or it is likely the entity will not recover the entire amortized cost value of an impaired debt security. This guidance also changes the presentation in the financial statements of other-than-temporary impairments and provides for enhanced disclosures of both debt and equity securities. Under this guidance, if an entity has the intent to sell or it is more likely than not the entity will be required to sell an impaired debt security before the security recovers to its amortized cost value, the security is written down to fair value and the entire amount of the writedown is included in net income as a realized investment loss. For all other impaired debt securities, the impairment loss is separated into the amount representing the credit loss and the amount representing the loss related to all other factors. The portion of the impairment loss that represents the credit loss is included in net income as a realized investment loss and the amount representing the loss that relates to all other factors is included in other comprehensive income. This guidance requires a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption with a corresponding adjustment to accumulated other comprehensive income. The cumulative effect adjustment from adopting this guidance resulted in a $30million increase to retained earnings and a corresponding decrease to accumulated other comprehensive income. The adoption of this guidance did not have a significant effect on the Corporations financial position or results of operations. (c)Effective January1, 2009, the Corporation adopted new guidance issued by the FASB related to the accounting for financial guarantee insurance contracts, which clarifies the guidance for such contracts. The adoption of this guidance did not have a significant effect on the Corporations financial position or results of operations.

Transfer of Ongoing Reinsurance

Transfer of Ongoing Reinsurance Assumed Business
	12 Months Ended Dec. 31, 2009 USD / shares
Transfer of Ongoing Reinsurance Assumed Business [Abstract]
Transfer of Ongoing Reinsurance Assumed Business	(3) Transfer of Ongoing Reinsurance Assumed Business In 2005, the Corporation completed a transaction involving a new Bermuda-based reinsurance company, Harbor Point Limited. As part of the transaction, the Corporation transferred its ongoing reinsurance assumed business and certain related assets, including renewal rights, to Harbor Point. In exchange, the Corporation received from Harbor Point $200million of 6% convertible notes and warrants to purchase common stock of Harbor Point. In 2008, the notes were converted into 2,000,000shares of common stock of Harbor Point. The shares and warrants represent in the aggregate on a fully diluted basis approximately 18% of Harbor Point as of December31, 2009. The transaction resulted in a pre-tax gain of $204million, of which $171million was recognized in 2005 and $33million was recognized in 2008.

Invested Assets and Related Inc

Invested Assets and Related Income
	12 Months Ended Dec. 31, 2009 USD / shares
Invested Assets and Related Income [Abstract]
Invested Assets and Related Income	(4)Invested Assets and Related Income (a)The amortized cost and fair value of fixed maturities and equity securities were as follows: December 31 2009 2008 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Appreciation Depreciation Value Cost Appreciation Depreciation Value (in millions) Fixed maturities Tax exempt $ 18,720 $ 933 $ 66 $ 19,587 $ 18,299 $ 451 $ 405 $ 18,345 Taxable U.S. Government and government agency and authority obligations 756 12 10 758 587 43 4 626 Corporate bonds 6,287 327 24 6,590 4,672 72 182 4,562 Foreign government and government agency obligations 5,903 221 11 6,113 5,153 307 3 5,457 Residential mortgage-backed securities 1,850 69 20 1,899 2,422 50 24 2,448 Commercial mortgage-backed securities 1,674 6 49 1,631 1,758 2 443 1,317 16,470 635 114 16,991 14,592 474 656 14,410 Total fixed maturities $ 35,190 $ 1,568 $ 180 $ 36,578 $ 32,891 $ 925 $ 1,061 $ 32,755 Equity securities $ 1,215 $ 261 $ 43 $ 1,433 $ 1,563 $ 131 $ 215 $ 1,479 At December31, 2009, the gross unrealized depreciation of fixed maturities included $15million of unrealized other-than-temporary impairment losses recognized in accumulated other comprehensive income. The amortized cost and fair value of fixed maturities at December31, 2009 by contractual maturity were as follows: Amortized Cost Fair Value (in millions) Due in one year or less $ 1,380 $ 1,403 Due after one year through five years 10,711

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs
	12 Months Ended Dec. 31, 2009 USD / shares
Deferred Policy Acquisition Costs [Abstract]
Deferred Policy Acquisition Costs	(5)Deferred Policy Acquisition Costs Policy acquisition costs deferred and the related amortization reflected in operating results were as follows: Years Ended December 31 2009 2008 2007 (in millions) Balance, beginning of year $ 1,532 $ 1,556 $ 1,480 Costs deferred during year Commissions and brokerage 1,663 1,736 1,713 Premium taxes and assessments 240 256 253 Salaries and operating costs 1,091 1,148 1,178 2,994 3,140 3,144 Foreign currency translation effect 28 (41 ) 24 Amortization during year (3,021 ) (3,123 ) (3,092 ) Balance, end of year $ 1,533 $ 1,532 $ 1,556

Property and Equipment

Property and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property and Equipment [Abstract]
Property and Equipment	(6)Property and Equipment Property and equipment included in other assets were as follows: December 31 2009 2008 (in millions) Cost $ 678 $ 631 Accumulated depreciation 368 307 $ 310 $ 324 Depreciation expense related to property and equipment was $69million, $64million and $69million for 2009, 2008 and 2007, respectively.

Unpaid Losses and Loss Expenses

Unpaid Losses and Loss Expenses
	12 Months Ended Dec. 31, 2009 USD / shares
Unpaid Losses and Loss Expenses [Abstract]
Unpaid Losses and Loss Expenses	(7)Unpaid Losses and Loss Expenses (a)The process of establishing loss reserves is complex and imprecise as it must take into consideration many variables that are subject to the outcome of future events. As a result, informed subjective estimates and judgments as to the PC Groups ultimate exposure to losses are an integral component of the loss reserving process. The loss reserve estimation process relies on the basic assumption that past experience, adjusted for the effects of current developments and likely trends, is an appropriate basis for predicting future outcomes. Most of the PC Groups loss reserves relate to long tail liability classes of business. For many liability claims, significant periods of time, ranging up to several years or more, may elapse between the occurrence of the loss, the reporting of the loss and the settlement of the claim. The longer the time span between the incidence of a loss and the settlement of the claim, the more the ultimate settlement amount can vary. There are numerous factors that contribute to the inherent uncertainty in the process of establishing loss reserves. Among these factors are changes in the inflation rate for goods and services related to covered damages such as medical care and home repair costs; changes in the judicial interpretation of policy provisions relating to the determination of coverage; changes in the general attitude of juries in the determination of liability and damages; legislative actions; changes in the medical condition of claimants; changes in the estimates of the number and/or severity of claims that have been incurred but not reported as of the date of the financial statements; and changes in the PC Groups book of business, underwriting standards and/or claim handling procedures. In addition, the uncertain effects of emerging or potential claims and coverage issues that arise as legal, judicial and social conditions change must be taken into consideration. These issues have had, and may continue to have, a negative effect on loss reserves by either extending coverage beyond the original underwriting intent or by increasing the number or size of claims. As a result of such issues, the uncertainties inherent in estimating ultimate claim costs on the basis of past experience have grown, further complicating the already complex loss reserving process. Management believes that the aggregate loss reserves of the PC Group at December31, 2009 were adequate to cover claims for losses that had occurred as of that date, including both those known and those yet to be reported. In establishing such reserves, management considers facts currently known and the present state of the law and coverage litigation. However, given the significant uncertainties inherent in the loss reserving process, it is possible that managements estimate of the ultimate liability for losses that had occurred as of December31, 2009 may change, which could have a material effect on the Corporations results of operations and financial condition. (b)A reconciliation of the beginning and ending liability for unpaid losses and loss expenses, net of reinsurance recoverable,

Debt and Credit Arrangements

Debt and Credit Arrangements
	12 Months Ended Dec. 31, 2009 USD / shares
Debt and Credit Arrangements [Abstract]
Debt and Credit Arrangements	(8)Debt and Credit Arrangements (a)Long term debt consisted of the following: December 31 2009 2008 (in millions) 6% notes due November15, 2011 $ 400 $ 400 5.2% notes due April1, 2013 275 275 5.75% notes due May15, 2018 600 600 6.6% debentures due August15, 2018 100 100 6.8% debentures due November15, 2031 200 200 6% notes due May11, 2037 800 800 6.5% notes due May15, 2038 600 600 6.375% capital securities due March29, 2067 1,000 1,000 $ 3,975 $ 3,975 Chubb has outstanding $1.0billion of unsecured junior subordinated capital securities. The capital securities will become due on April15, 2037, the scheduled maturity date, but only to the extent that Chubb has received sufficient net proceeds from the sale of certain qualifying capital securities. Chubb must use its commercially reasonable efforts, subject to certain market disruption events, to sell enough qualifying capital securities to permit repayment of the capital securities on the scheduled maturity date or as soon thereafter as possible. Any remaining outstanding principal amount will be due on March29, 2067, the final maturity date. The capital securities bear interest at a fixed rate of 6.375% through April14, 2017. Thereafter, the capital securities will bear interest at a rate equal to the three-month LIBOR rate plus 2.25%. Subject to certain conditions, Chubb has the right to defer the payment of interest on the capital securities for a period not exceeding ten consecutive years. During any such period, interest will continue to accrue and Chubb generally may not declare or pay any dividends on or purchase any shares of its capital stock. In connection with the issuance of the capital securities, Chubb entered into a replacement capital covenant in which it agreed that it will not repay, redeem, or purchase the capital securities before March29, 2047, unless, subject to certain limitations, it has received proceeds from the sale of replacement capital securities, as defined. The replacement capital covenant is not intended for the benefit of holders of the capital securities and may not be enforced by them. The replacement capital covenant is for the benefit of holders of one or more designated series of Chubbs indebtedness, which will initially be its 6.8% debentures due November 15, 2031. Subject to the replacement capital covenant, the capital securities may be redeemed, in whole or in part, at any time on or after April15, 2017 at a redemption price equal to the principal amount plus any accrued interest or prior to April15, 2017 at a redemption price equal to the greater of (i)the principal amount or (ii)a make-whole amount, in each case plus any accrued interest. The 6% notes due in 2011, the 5.2% notes, the 5.75% notes, the 6.6% debentures, the 6.8% debentures, the 6% notes due in 2037 and the 6.5% notes are all unsecured obligations of C

Federal and Foreign Income Tax

Federal and Foreign Income Tax
	12 Months Ended Dec. 31, 2009 USD / shares
Federal and Foreign Income Tax [Abstract]
Federal and Foreign Income Tax	(9)Federal and Foreign Income Tax (a)Income tax expense and taxes paid consisted of the following components: Years Ended December 31 2009 2008 2007 (in millions) Income tax expense Current tax United States $ 532 $ 457 $ 952 Foreign 161 202 168 Deferred tax (credit), principally United States 86 (56 ) 10 $ 779 $ 603 $ 1,130 Federal and foreign income taxes paid $ 720 $ 739 $ 1,140 (b)The effective income tax rate is different than the statutory federal corporate tax rate. The reasons for the different effective tax rate were as follows: Years Ended December 31 2009 2008 2007 % of % of % of Pre-Tax Pre-Tax Pre-Tax Amount Income Amount Income Amount Income (in millions) Income before federal and foreign income tax $ 2,962 $ 2,407 $ 3,937 Tax at statutory federal income tax rate $ 1,037 35.0 % $ 842 35.0 % $ 1,378 35.0 % Tax exempt interest income (239 ) (8.1 ) (235 ) (9.7 ) (232 ) (5.9 ) Other, net (19 ) (.6 ) (4 ) (.2 ) (16 ) (.4 ) Actual tax $ 779 26.3 % $ 603 25.1 % $ 1,130 28.7 % (c)The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities were as follows: December 31 2009 2008 (in millions) Deferred income tax assets Unpaid losses and loss expenses $ 650 $ 680 Unearned premiums 335 351 Foreign tax credits 879 788 Employee compensation 131 134 Postretirement benefits 171 285 Other-than-temporary impairment losses 287 244 Unrealized depreciation of investments 77 Total 2,453 2,559 Deferred income tax liabilities Deferred policy acquisition costs 439 451 Unremitted earnings of foreign subsidiaries 932 810

Reinsurance

Reinsurance
	12 Months Ended Dec. 31, 2009 USD / shares
Reinsurance [Abstract]
Reinsurance	(10)Reinsurance In the ordinary course of business, the PC Group assumes and cedes reinsurance with other insurance companies. Reinsurance is ceded to provide greater diversification of risk and to limit the PC Groups maximum net loss arising from large risks or catastrophic events. A large portion of the PC Groups ceded reinsurance is effected under contracts known as treaties under which all risks meeting prescribed criteria are automatically covered. Most of these arrangements consist of excess of loss and catastrophe contracts that protect against a specified part or all of certain types of losses over stipulated amounts arising from any one occurrence or event. In certain circumstances, reinsurance is also effected by negotiation on individual risks. Ceded reinsurance contracts do not relieve the PC Group of the primary obligation to its policyholders. Thus, an exposure exists with respect to reinsurance ceded to the extent that any reinsurer is unable or unwilling to meet its obligations assumed under the reinsurance contracts. The PC Group monitors the financial strength of its reinsurers on an ongoing basis. Premiums earned and insurance losses and loss expenses are reported net of reinsurance in the consolidated statements of income. The effect of reinsurance on the premiums written and earned of the PC Group was as follows: Years Ended December 31 2009 2008 2007 (in millions) Direct premiums written $ 11,813 $ 12,443 $ 12,432 Reinsurance assumed 370 549 775 Reinsurance ceded (1,106 ) (1,210 ) (1,335 ) Net premiums written $ 11,077 $ 11,782 $ 11,872 Direct premiums earned $ 12,058 $ 12,441 $ 12,457 Reinsurance assumed 435 607 789 Reinsurance ceded (1,162 ) (1,220 ) (1,300 ) Net premiums earned $ 11,331 $ 11,828 $ 11,946 The ceded reinsurance premiums written and earned included $40million and $111million, respectively, in 2009 and $195million and $243million, respectively, in 2008 and $386million and $344million, respectively, in 2007 that were ceded to Harbor Point. Ceded losses and loss expenses, which reduce losses and loss expenses incurred, were $291million, $417million and $460million in 2009, 2008 and 2007, respectively. The ceded losses and loss expenses in 2009, 2008 and 2007 included $64million, $163million and $183 million, respectively, that were ceded to Harbor Point.

Segments Information

Segments Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segments Information [Abstract]
Segments Information	(11)Segments Information The principal business of the Corporation is the sale of property and casualty insurance. The profitability of the property and casualty insurance business depends on the results of both underwriting operations and investments, which are viewed as two distinct operations. The underwriting operations are managed and evaluated separately from the investment function. The PC Group underwrites most lines of property and casualty insurance. Underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. The personal segment targets the personal insurance market. The personal classes include automobile, homeowners and other personal coverages. The commercial segment includes those classes of business that are generally available in broad markets and are of a more commodity nature. Commercial classes include multiple peril, casualty, workers compensation and property and marine. The specialty segment includes those classes of business that are available in more limited markets since they require specialized underwriting and claim settlement. Specialty classes include professional liability coverages and surety. The reinsurance assumed business is effectively in run-off following the sale, in 2005, of the ongoing business to Harbor Point (see Note(3)). Corporate and other includes investment income earned on corporate invested assets, corporate expenses and the results of the Corporations non-insurance subsidiaries. Performance of the property and casualty underwriting segments is measured based on statutory underwriting results. Statutory underwriting profit is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred. Under statutory accounting principles applicable to property and casualty insurance companies, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned. Management uses underwriting results determined in accordance with generally accepted accounting principles (GAAP) to assess the overall performance of the underwriting operations. Underwriting income determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred. To convert statutory underwriting results to a GAAP basis, policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned. Investment income performance is measured based on investment income net of investment expenses, excluding realized investment gains and losses. Distinct investment portfolios are not maintained for each underwriting segment. Property and casualty invested assets are available for payment of losses and expenses for all classes of business. Therefore, such assets and the related investment income are not allocated to underwriting segments. Revenues, income before income tax and assets of each operating segment were as follows: Years Ended December 31 2009

Stock-Based Employee Compensati

Stock-Based Employee Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Employee Compensation Plans [Abstract]
Stock-Based Employee Compensation Plans	(12)Stock-Based Employee Compensation Plans The Corporation has two stock-based employee compensation plans, the Long-Term Incentive Plan and the Stock Purchase Plan. The compensation cost with respect to these plans was $80million, $81million and $87million in 2009, 2008 and 2007, respectively. The total income tax benefit included in net income with respect to these stock-based compensation arrangements was $28million in 2009 and 2008 and $31million in 2007. As of December31, 2009, there was $84million of unrecognized compensation cost related to nonvested awards. That cost is expected to be reflected in operating results over a weighted average period of 1.7years. (a)The Long-Term Incentive Plan provides for the granting of restricted stock units, restricted stock, performance units, stock options and other stock-based awards to key employees. The maximum number of shares of Chubbs common stock in respect to which stock-based awards may be granted under the plan most recently approved by shareholders is 8,650,000shares. Additional shares of Chubbs common stock may also become available for grant in connection with the cancellation, forfeiture and/or settlement of awards previously granted. At December31, 2009, 9,394,896shares were available for grant. Restricted Stock Units, Restricted Stock and Performance Units Restricted stock unit awards are payable in cash, in shares of Chubbs common stock or in a combination of both. Restricted stock units are not considered to be outstanding shares of common stock, have no voting rights and are subject to forfeiture during the restriction period. Holders of restricted stock units may receive dividend equivalents. Restricted stock awards consist of shares of Chubbs common stock granted at no cost to the employees. Shares of restricted stock become outstanding when granted, receive dividends and have voting rights. The shares are subject to forfeiture and to restrictions that prevent their sale or transfer during the restriction period. Performance unit awards are based on the achievement of performance goals over three year performance periods. Performance unit awards are payable in cash, in shares of Chubbs common stock or in a combination of both. An amount equal to the fair value at the date of grant of restricted stock unit awards, restricted stock awards and performance unit awards is expensed over the vesting period. The weighted average fair value per share of the restricted stock units granted was $40.38, $50.44 and $50.10 in 2009, 2008 and 2007, respectively. The weighted average fair value per share of the performance units granted was $45.60, $51.46 and $52.99 in 2009, 2008 and 2007, respectively. Additional information with respect to restricted stock units and performance units is as follows: Restricted Stock Units Performance Units* Weighted Average Weighted Average Number Grant Date Number Grant Date of Shares Fair Value of Shares Fair Value Nonvested, January 1, 2009 3,052,561

Employee Benefits

Employee Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefits [Abstract]
Employee Benefits	(13) Employee Benefits (a)The Corporation has several non-contributory defined benefit pension plans covering substantially all employees. Prior to 2001, benefits were generally based on an employees years of service and average compensation during the last five years of employment. Effective January 1, 2001, the Corporation changed the formula for providing pension benefits from the final average pay formula to a cash balance formula. Under the cash balance formula, a notional account is established for each employee, which is credited semi-annually with an amount equal to a percentage of eligible compensation based on age and years of service plus interest based on the account balance. Employees hired prior to 2001 will generally be eligible to receive vested benefits based on the higher of the final average pay or cash balance formulas. The Corporations funding policy is to contribute amounts that meet regulatory requirements plus additional amounts determined by management based on actuarial valuations, market conditions and other factors. This may result in no contribution being made in a particular year. The Corporation also provides certain other postretirement benefits, principally health care and life insurance, to retired employees and their beneficiaries and covered dependents. Substantially all employees hired before January 1, 1999 may become eligible for these benefits upon retirement if they meet minimum age and years of service requirements. Health care coverage is contributory. Retiree contributions vary based upon a retirees age, type of coverage and years of service with the Corporation. Life insurance coverage is non-contributory. The Corporation funds a portion of the health care benefits obligation where such funding can be accomplished on a tax effective basis. Benefits are paid as covered expenses are incurred. The funded status of the pension and other postretirement benefit plans at December31, 2009 and 2008 was as follows: Other Pension Benefits Postretirement Benefits 2009 2008 2009 2008 (in millions) Benefit obligation $ 1,900 $ 1,761 $ 338 $ 315 Plan assets at fair value 1,558 1,125 50 32 Funded status at end of year, included in other liabilities $ 342 $ 636 $ 288 $ 283 Net loss and prior service cost included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs at December31, 2009 and 2008 were as follows: Other Postretirement Pension Benefits Benefits 2009 2008 2009 2008 (in millions) Net loss $ 681 $ 808 $ 54 $ 59 Prior service cost (benefit) 28 30 (2 ) (2 )

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	(14)Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the year. The computation of diluted earnings per share reflects the potential dilutive effect, using the treasury stock method, of outstanding awards under stock-based employee compensation plans. The following table sets forth the computation of basic and diluted earnings per share: Years Ended December 31 2009 2008 2007 (in millions except for per share amounts) Basic earnings per share: Net income $ 2,183 $ 1,804 $ 2,807 Weighted average shares outstanding 350.1 361.1 393.6 Basic earnings per share $ 6.24 $ 5.00 $ 7.13 Diluted earnings per share: Net income $ 2,183 $ 1,804 $ 2,807 Weighted average shares outstanding 350.1 361.1 393.6 Additional shares from assumed exercise of stock-based compensation awards 2.9 5.7 6.7 Weighted average shares and potential shares assumed outstanding for computing diluted earnings per share 353.0 366.8 400.3 Diluted earnings per share $ 6.18 $ 4.92 $ 7.01

Comprehensive Income

Comprehensive Income
	12 Months Ended Dec. 31, 2009 USD / shares
Comprehensive Income [Abstract]
Comprehensive Income	(15)Comprehensive Income Comprehensive income is defined as all changes in shareholders equity, except those arising from transactions with shareholders. Comprehensive income includes net income and other comprehensive income, which for the Corporation consists of changes in unrealized appreciation or depreciation of investments carried at fair value, changes in foreign currency translation gains or losses, changes in postretirement benefit costs not yet recognized in net income and, beginning in 2009, changes in unrealized other-than-temporary impairment losses on investments. The components of other comprehensive income or loss were as follows: Years Ended December 31 2009 2008 2007 Before Income Before Income Before Income Tax Tax Net Tax Tax Net Tax Tax Net (in millions) Unrealized holding gains (losses) arising during the year $ 1,930 $ 675 $ 1,255 $ (1,378 ) $ (483 ) $ (895 ) $ 237 $ 83 $ 154 Unrealized other-than-temporary impairment losses arising during the year (14 ) (5 ) (9 ) Reclassification adjustment for realized gains (losses) included in net income 44 15 29 (348 ) (122 ) (226 ) 30 10 20 Net unrealized gains (losses) recognized in other comprehensive income or loss 1,872 655 1,217 (1,030 ) (361 ) (669 ) 207 73 134 Foreign currency translation gains (losses) 262 92 170 (348 ) (122 ) (226 ) 193 68 125 Change in postretirement benefit costs not yet recognized in net income 134 36 98 (437 ) (153 ) (284 ) (26 ) (9 ) (17 ) Total other comprehensive income (loss) $ 2,268 $ 783 $ 1,485 $ (1,815 ) $ (636 ) $ (1,179 ) $ 374 $ 132 $ 242

Commitments and Contingent Liab

Commitments and Contingent Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingent Liabilities [Abstract]
Commitments and Contingent Liabilities	(16)Commitments and Contingent Liabilities (a)Chubb and certain of its subsidiaries have been involved in the investigations by various Attorneys General and other regulatory authorities of several states, the U.S.Securities and Exchange Commission, the U.S.Attorney for the Southern District of New York and certain non-U.S.regulatory authorities with respect to certain business practices in the property and casualty insurance industry including (1)potential conflicts of interest and anti-competitive behavior arising from the payment of contingent commissions to brokers and agents and (2)loss mitigation and finite reinsurance arrangements. In connection with these investigations, Chubb and certain of its subsidiaries received subpoenas and other requests for information from various regulators. The Corporation has cooperated fully with these investigations. The Corporation has settled with several state Attorneys General and insurance departments all issues arising out of their investigations. As described in more detail below, the Attorney General of Ohio in August 2007 filed an action against Chubb and certain of its subsidiaries, as well as several other insurers and one broker, as a result of the Ohio Attorney Generals business practices investigation. Although no other Attorney General or regulator has initiated an action against the Corporation, it is possible that such an action may be brought against the Corporation with respect to some or all of the issues that were the focus of the business practice investigations. The Attorney General of Ohio on August24, 2007 filed an action in the Court of Common Pleas in Cuyahoga County, Ohio, against Chubb and certain of its subsidiaries, as well as several other insurers and one broker, as a result of the Ohio Attorney Generals business practices investigation. This action alleges violations of Ohios antitrust laws. In July 2008, the court denied the Corporations and the other defendants motions to dismiss the Attorney Generals complaint. In August 2008, the Corporation and the other defendants filed answers to the complaint and discovery is proceeding. Individual actions and purported class actions arising out of the investigations into the payment of contingent commissions to brokers and agents have been filed in a number of federal and state courts. On August1, 2005, Chubb and certain of its subsidiaries were named in a putative class action entitled In re Insurance Brokerage Antitrust Litigation in the U.S. District Court for the District of New Jersey (N. J. District Court). This action, brought against several brokers and insurers on behalf of a class of persons who purchased insurance through the broker defendants, asserts claims under the Sherman Act and state law and the Racketeer Influenced and Corrupt Organizations Act (RICO) arising from the alleged unlawful use of contingent commission agreements. On September28, 2007, the N. J. District Court dismissed the second amended complaint filed by the plaintiffs in the In re Insurance Brokerage Antitrust Litigation in its entirety. In so doing, the court dismissed the plaintiffs Sherman Act and RICO claims with prejud

Fair Values of Financial Instru

Fair Values of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Values of Financial Instruments [Abstract]
Fair Values of Financial Instruments	(17)Fair Values of Financial Instruments (a)Fair values of financial instruments are determined using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical assets or liabilities or other inputs, such as quoted prices for similar assets or liabilities, that are observable, either directly or indirectly. In those instances where observable inputs are not available, fair values are measured using unobservable inputs for the asset or liability. Unobservable inputs reflect the Corporations own assumptions about the assumptions that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange. Certain financial instruments, particularly insurance contracts, are excluded from fair value disclosure requirements. The methods and assumptions used to estimate the fair values of financial instruments are as follows: (i)The carrying value of short term investments approximates fair value due to the short maturities of these investments. (ii)Fair values for fixed maturities are determined by management, utilizing prices obtained from an independent, nationally recognized pricing service or, in the case of securities for which prices are not provided by a pricing service, from independent brokers. For fixed maturities that have quoted prices in active markets, market quotations are provided. For fixed maturities that do not trade on a daily basis, the pricing service and brokers provide fair value estimates using a variety of inputs including, but not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, reference data, prepayment spreads and measures of volatility. Management reviews on an ongoing basis the reasonableness of the methodologies used by the relevant pricing service and brokers. In addition, management, using the prices received for the securities from the pricing service and brokers, determines the aggregate portfolio price performance and reviews it against applicable indices. If management believes that significant discrepancies exist, it will discuss these with the relevant pricing service or broker to resolve the discrepancies. (iii)Fair values of equity securities are based on quoted market prices. (iv)Fair values of long term debt issued by Chubb are determined by management, utilizing prices obtained from an independent, nationally recognized pricing service. The carrying values and fair values of financial instruments were as follows: December 31 2009 2008 Carrying Fair Carrying

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Shareholders' Equity [Abstract]
Shareholders' Equity	(18)Shareholders Equity (a)The authorized but unissued preferred shares may be issued in one or more series and the shares of each series shall have such rights as fixed by the Board of Directors. (b)The activity of Chubbs common stock was as follows: Years Ended December 31 2009 2008 2007 (number of shares) Common stock issued Balance, beginning of year 371,980,710 374,649,923 411,276,940 Repurchase of shares (4,017,884 ) (41,733,268 ) Share activity under stock-based employee compensation plans (250 ) 1,348,671 5,106,251 Balance, end of year 371,980,460 371,980,710 374,649,923 Treasury stock Balance, beginning of year 19,726,097 Repurchase of shares 22,623,775 22,310,886 Share activity under stock-based employee compensation plans (2,377,076 ) (2,584,789 ) Balance, end of year 39,972,796 19,726,097 Common stock outstanding, end of year 332,007,664 352,254,613 374,649,923 (c)As of December31, 2009, 22,160,125shares remained under the share repurchase authorization that was approved by the Board of Directors in December 2009. The authorization has no expiration date. (d)The property and casualty insurance subsidiaries are required to file annual statements with insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis). For such subsidiaries, statutory accounting practices differ in certain respects from GAAP. A comparison of shareholders equity on a GAAP basis and policyholders surplus on a statutory basis is as follows: December 31 2009 2008 GAAP Statutory GAAP Statutory (in millions) PC Group $ 17,002 $ 14,526 $ 14,381 $ 12,281 Corporate and other (1,368 ) (949 ) $ 15,634 $ 13,432 A comparison of GAAP and statutory net income (loss) is as follows: Years Ended December 31 2009 2008 2007 GAAP Statutory GAAP Statutory GAAP Statutory (in millions) PC Group $ 2,324 $ 2,357 $ 1,997 $ 1,963 $ 2,992 $ 2,859

Consolidated Summary of Investm

Consolidated Summary of Investments - Other Than Investments in Related Parties
	12 Months Ended Dec. 31, 2009 USD / shares
Consolidated Summary of Investments - Other Than Investments in Related Parties [Abstract]
CONSOLIDATED SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES	Summary Of Investments Other Than Investments In Related Parties THE CHUBB CORPORATION Schedule I CONSOLIDATED SUMMARY OF INVESTMENTSOTHER THAN INVESTMENTS IN RELATED PARTIES (in millions) December 31, 2009 Amount at Which Cost or Shown in Amortized Fair the Type of Investment Cost Value Balance Sheet Short term investments $ 1,918 $ 1,918 $ 1,918 Fixed maturities United States Government and government agencies and authorities 2,279 2,358 2,358 States, municipalities and political subdivisions 18,911 19,770 19,770 Foreign government and government agencies 5,903 6,113 6,113 Public utilities 929 991 991 All other corporate bonds 7,168 7,346 7,346 Total fixed maturities 35,190 36,578 36,578 Equity securities Common stocks Public utilities 101 111 111 Banks, trusts and insurance companies 270 288 288 Industrial, miscellaneous and other 810 999 999 Total common stocks 1,181 1,398 1,398 Non-redeemable preferred stocks 34 35 35 Total equity securities 1,215 1,433 1,433 Other invested assets 2,075 2,075 2,075 Total invested assets $ 40,398 $ 42,004 $ 42,004

Condensed Financial Information

Condensed Financial Information of Parent Company
	12 Months Ended Dec. 31, 2009 USD / shares
Condensed Financial Information of Parent Company [Abstract]
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY	Condensed Financial Information Of Parent Company Only Disclosure THE CHUBB CORPORATION Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETSPARENT COMPANY ONLY (in millions) December 31 2009 2008 Assets Invested Assets Short Term Investments $ 1,010 $ 1,553 Taxable Fixed Maturities (cost $1,272 and $754) 1,313 759 Equity Securities (cost $205 and $451) 202 504 Other Invested Assets 25 TOTAL INVESTED ASSETS 2,550 2,816 Investment in Consolidated Subsidiaries 17,079 14,510 Other Assets 183 280 TOTAL ASSETS $ 19,812 $ 17,606 Liabilities Long Term Debt $ 3,975 $ 3,975 Dividend Payable to Shareholders 118 118 Accrued Expenses and Other Liabilities 85 81 TOTAL LIABILITIES 4,178 4,174 Shareholders Equity Preferred StockAuthorized 8,000,000 Shares; $1 Par Value; IssuedNone Common StockAuthorized 1,200,000,000 Shares; $1 Par Value; Issued 371,980,460 and 371,980,710Shares 372 372 Paid-In Surplus 224 253 Retained Earnings 16,235 14,509 Accumulated Other Comprehensive Income (Loss) 720 (735 ) Treasury Stock, at Cost39,972,796 and 19,726,097 Shares (1,917 ) (967 ) TOTAL SHAREHOLDERS EQUITY 15,634 13,432 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 19,812 $ 17,606 The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto. STATEMENTS OF INCOMEPARENT COMPANY ONLY (in millions) Years Ended December 31 2009 2008 2007 Revenues Investment Income $ 64 $ 79 $ 125 Other Revenues 4 (5 ) Realized Investment Gains (Losses), Net 88 49 (31 ) TOTAL REVENUES 152 132 89 Expenses Corporate Expenses 292 282 249 Investment Expenses 3 2 3 Other Expenses 4 TOTAL EXPENSES

Consolidated Supplementary Insu

Consolidated Supplementary Insurance Information
	12 Months Ended Dec. 31, 2009 USD / shares
Consolidated Supplementary Insurance Information [Abstract]
CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION	Supplementary Insurance Information For Insurance Companies Disclosure THE CHUBB CORPORATION Schedule III CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION (in millions) December 31 Year Ended December 31 Amortization Other Deferred of Deferred Insurance Policy Net Policy Operating Acquisition Unpaid Unearned Premiums Investment Insurance Acquisition Costs and Premiums Segment Costs Losses Premiums Earned Income* Losses Costs Expenses** Written 2009 Property and Casualty Insurance Personal $ 537 $ 2,133 $ 1,929 $ 3,692 $ 1,923 $ 1,064 $ 101 $ 3,657 Commercial 628 11,531 2,583 4,762 2,773 1,290 214 4,660 Specialty 364 8,071 1,614 2,829 1,606 651 95 2,739 Reinsurance Assumed 4 1,104 27 48 (34 ) 16 1 21 Investments $ 1,549 $ 1,533 $ 22,839 $ 6,153 $ 11,331 $ 1,549 $ 6,268 $ 3,021 $ 411 $ 11,077 2008 Property and Casualty Insurance Personal $ 523 $ 2,139 $ 1,935 $ 3,787 $ 2,087 $ 1,089 $ 105 $ 3,826 Commercial 641 11,222 2,641 5,015 3,131 1,313 240 4,993 Specialty 355 7,728 1,666 2,935