Chubb (CHB) 8-K Results of Operations and Financial Condition

Exhibit 99.2

The	Supplementary	June 30, 2012
Chubb	Investor
Corporation	Information

This report is for informational purposes only. It should be read in conjunction with documents filed by The Chubb Corporation with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

THE CHUBB CORPORATION

Adoption of New Accounting Pronouncement

Shareholders’ equity and book value per common share at December 31, 2011 and return on equity and operating return on equity for the second quarter and six months ended June 30, 2011 have been adjusted to reflect the adoption of new guidance issued by the Financial Accounting Standards Board related to the accounting for costs associated with acquiring or renewing insurance contracts. The adoption of this guidance decreased shareholders’ equity by $273 million as of December 31, 2010 and 2011 and each of the quarter-end balances within 2011. The effect of the adoption of the new guidance on net income for the second quarter and six months ended June 30, 2012 and June 30, 2011 was not material.

(i)

THE CHUBB CORPORATION

SUPPLEMENTARY INVESTOR INFORMATION

TABLE OF CONTENTS

JUNE 30, 2012

	Page
The Chubb Corporation:
Consolidated Balance Sheet Highlights	1
Share Repurchase Activity	2
Summary of Invested Assets:
Corporate	3
Property and Casualty	3
Investment Income After Taxes:
Corporate	4
Property and Casualty	4
Property and Casualty Insurance Group:
Statutory Policyholders’ Surplus	4
Change in Net Unpaid Losses	5
Underwriting Results - Year-To-Date	6-10
Underwriting Results - Quarterly	11-15
Definitions of Key Terms	16-17

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

(in millions, except per share amounts)

	June 30 2012						Dec. 31 2011
				% of Total						% of Total
							(As Adjusted)
Invested Assets(at carrying value)
Short Term Investments	$	2,012			4	%	$	1,893			4	%
Fixed Maturities
Tax Exempt		20,260			47			20,211			47
Taxable		17,253			40			16,973			40
Equity Securities		1,583			4			1,512			4
Other Invested Assets		2,059			5			2,180			5
Total Invested Assets	$	43,167			100	%	$	42,769			100	%
Unrealized Appreciation of Investments
Fixed Maturities	$	2,538					$	2,422
Equity Securities		322						248
		2,860						2,670
Deferred Income Tax Liability		1,001						934
	$	1,859					$	1,736
Capitalization
Long Term Debt	$	3,575					$	3,575
Shareholders’ Equity		15,561						15,301
Total Capitalization	$	19,136					$	18,876
Debt as a Percentage of Total Capitalization		18.7	%					18.9	%
Actual Common Shares Outstanding		265.8						272.5
Book Value Per Common Share	$	58.54					$	56.15
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	52.34					$	50.37

Page 1 of 17

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

(dollars in millions, except per share amounts)

	Periods Ended June 30
	Second Quarter 2012		Six Months 2012		From December 2005 to June 30, 2012
Cost of Shares Repurchased	$	305	$	606	$	10,284
Average Cost Per Share	$	71.63	$	70.01	$	53.36
Shares Repurchased		4,257,422		8,648,468		192,739,061

During the period from December 2005 through December 2010, under several share repurchase authorizations the Board of Directors authorized the repurchase of a total of 185 million shares of the Corporation’s common stock. No shares remain under these repurchase authorizations.

In January 2012, the Board of Directors authorized the repurchase of up to $1.2 billion of the Corporation’s common stock. The authorization has no expiration date. As of June 30, 2012, approximately $658 million remained under the share repurchase authorization.

Page 2 of 17

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

CORPORATE

	Cost or Amortized Cost				Carrying Value (a)
	June 30 2012		Dec. 31 2011		June 30 2012		Dec. 31 2011
	(in millions)
Short Term Investments	$	739	$	1,035	$	739	$	1,035
Taxable Fixed Maturities		1,198		955		1,227		983
Equity Securities		177		200		178		179
Other Invested Assets		26		27		26		27
TOTAL	$	2,140	$	2,217	$	2,170	$	2,224
PROPERTY AND CASUALTY
	Cost or Amortized Cost				Carrying Value (a)
	June 30 2012		Dec. 31 2011		June 30 2012		Dec. 31 2011
	(in millions)
Short Term Investments	$	1,273	$	858	$	1,273	$	858
Fixed Maturities
Tax Exempt		18,779		18,786		20,260		20,211
Taxable		14,998		15,021		16,026		15,990
Equity Securities		1,084		1,064		1,405		1,333
Other Invested Assets		2,033		2,153		2,033		2,153
TOTAL	$	38,167	$	37,882	$	40,997	$	40,545

(a) Short term investments are carried at amortized cost, which approximates fair value. Fixed maturities and equity securities are carried at fair value. Other invested assets include private equity limited partnerships carried at the Corporation’s equity in the net assets of the partnerships.

Page 3 of 17

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES

	Periods Ended June 30
	Second Quarter						Six Months
	2012			2011			2012			2011
	(in millions)
CORPORATE INVESTMENT INCOME	$	4		$	6		$	11		$	14
PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	185		$	193		$	372		$	385
Taxable Interest		110			117			226			233
Other		14			15			26			24
Investment Expenses		(6	)		(7	)		(13	)		(14	)
TOTAL	$	303		$	318		$	611		$	628
Effective Tax Rate		18.8	%		19.3	%		18.9	%		19.0	%
After-Tax Annualized Yield		3.15	%		3.24	%		3.18	%		3.22	%

After-tax annualized yield is based on the average invested assets for the periods presented, with fixed maturities at amortized cost and equity securities at fair value.

STATUTORY POLICYHOLDERS’ SURPLUS

	June 30 2012		Dec. 31 2011		June 30 2011
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	14,150	$	13,958	$	15,025
Rolling Year Statutory Net Premiums Written	$	11,891	$	11,778	$	11,532
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		0.84:1		0.84:1		0.77:1

Statutory Policyholders’ Surplus and Net Premiums Written include all domestic and foreign property and casualty subsidiaries.

Page 4 of 17

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES

SIX MONTHS ENDED JUNE 30, 2012

	Net Unpaid Losses							IBNR Increase (Decrease)			All Other Unpaid Losses Increase (Decrease)
	6/30/12		12/31/11		Increase (Decrease)
	(in millions)
Personal Insurance
Automobile	$	401	$	404	$	(3	)	$	2		$	(5	)
Homeowners		794		769		25			79			(54	)
Other		898		902		(4	)		31			(35	)
Total Personal		2,093		2,075		18			112			(94	)
Commercial Insurance
Multiple Peril		1,793		1,735		58			53			5
Casualty		6,380		6,274		106			56			50
Workers’ Compensation		2,495		2,392		103			81			22
Property and Marine		1,117		1,118		(1	)		50			(51	)
Total Commercial		11,785		11,519		266			240			26
Specialty Insurance
Professional Liability		7,147		7,180		(33	)		13			(46	)
Surety		76		75		1			3			(2	)
Total Specialty		7,223		7,255		(32	)		16			(48	)
Total Insurance		21,101		20,849		252			368			(116	)
Reinsurance Assumed		429		480		(51	)		(48	)		(3	)
Total	$	21,530	$	21,329	$	201		$	320		$	(119	)

Page 5 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	Personal Automobile						Homeowners						Other Personal						Total Personal
	2012			2011			2012			2011			2012			2011			2012			2011
Net Premiums Written	$	349		$	343		$	1,261		$	1,214		$	439		$	400		$	2,049		$	1,957
Decrease (Increase) in Unearned Premiums		(16	)		(13	)		(16	)		(4	)		(13	)		(3	)		(45	)		(20	)
Net Premiums Earned		333			330			1,245			1,210			426			397			2,004			1,937
Net Losses Paid		207			193			608			662			240			233			1,055			1,088
Increase (Decrease) in Outstanding Losses		—			10			26			85			2			—			28			95
Net Losses Incurred		207			203			634			747			242			233			1,083			1,183
Expenses Incurred		105			106			430			417			167			147			702			670
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	21		$	21		$	181		$	46		$	17		$	17		$	219		$	84
Ratios After Dividends to Policyholders:
Loss		62.2	%		61.5	%		50.9	%		61.7	%		56.8	%		58.7	%		54.0	%		61.1	%
Expense		30.0			30.9			34.1			34.4			38.0			36.7			34.3			34.2
Combined		92.2	%		92.4	%		85.0	%		96.1	%		94.8	%		95.4	%		88.3	%		95.3	%
Premiums Written as a % of Total		5.8	%		5.8	%		20.8	%		20.5	%		7.3	%		6.8	%		33.9	%		33.1	%

Page 6 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	Commercial Multiple Peril						Commercial Casualty						Commercial Workers’ Compensation						Commercial Property and Marine						Total Commercial
	2012			2011			2012			2011			2012			2011			2012			2011			2012			2011
Net Premiums Written	$	553		$	562		$	870		$	855		$	547		$	463		$	788		$	756		$	2,758		$	2,636
Decrease (Increase) in Unearned Premiums		13			5			(43	)		(50	)		(70	)		(60	)		(67	)		(88	)		(167	)		(193	)
Net Premiums Earned		566			567			827			805			477			403			721			668			2,591			2,443
Net Losses Paid		274			306			412			433			236			207			470			329			1,392			1,275
Increase (Decrease) in Outstanding Losses		61			124			129			17			106			65			3			248			299			454
Net Losses Incurred		335			430			541			450			342			272			473			577			1,691			1,729
Expenses Incurred		209			215			239			238			115			98			254			247			817			798
Dividends Incurred		—			—			—			—			14			14			—			—			14			14
Statutory Underwriting Income (Loss)	$	22		$	(78	)	$	47		$	117		$	6		$	19		$	(6	)	$	(156	)	$	69		$	(98	)
Ratios After Dividends to Policyholders:
Loss		59.2	%		75.8	%		65.4	%		55.9	%		73.9	%		70.0	%		65.6	%		86.4	%		65.6	%		71.2	%
Expense		37.8			38.3			27.5			27.8			21.5			21.8			32.2			32.7			29.8			30.4
Combined		97.0	%		114.1	%		92.9	%		83.7	%		95.4	%		91.8	%		97.8	%		119.1	%		95.4	%		101.6	%
Premiums Written as a % of Total		9.1	%		9.5	%		14.4	%		14.5	%		9.1	%		7.8	%		13.0	%		12.8	%		45.6	%		44.6	%

Page 7 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	Professional Liability						Surety						Total Specialty
	2012			2011			2012			2011			2012			2011
Net Premiums Written	$	1,093		$	1,146		$	147		$	173		$	1,240		$	1,319
Decrease (Increase) in Unearned Premiums		86			74			10			(9	)		96			65
Net Premiums Earned		1,179			1,220			157			164			1,336			1,384
Net Losses Paid		796			782			11			15			807			797
Increase (Decrease) in Outstanding Losses		2			(93	)		1			8			3			(85	)
Net Losses Incurred		798			689			12			23			810			712
Expenses Incurred		333			334			60			57			393			391
Dividends Incurred		—			—			2			2			2			2
Statutory Underwriting Income (Loss)	$	48		$	197		$	83		$	82		$	131		$	279
Ratios After Dividends to Policyholders:
Loss		67.7	%		56.5	%		7.7	%		14.2	%		60.7	%		51.5	%
Expense		30.5			29.1			41.4			33.3			31.8			29.7
Combined		98.2	%		85.6	%		49.1	%		47.5	%		92.5	%		81.2	%
Premiums Written as a % of Total		18.1	%		19.4	%		2.4	%		2.9	%		20.5	%		22.3	%

Page 8 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	Total Insurance						Reinsurance Assumed						Worldwide Total
	2012			2011			2012			2011			2012			2011
Net Premiums Written	$	6,047		$	5,912		$	2		$	2		$	6,049		$	5,914
Decrease (Increase) in Unearned Premiums		(116	)		(148	)		1			1			(115	)		(147	)
Net Premiums Earned		5,931			5,764			3			3			5,934			5,767
Net Losses Paid		3,254			3,160			34			50			3,288			3,210
Increase (Decrease) in Outstanding Losses		330			464			(51	)		(62	)		279			402
Net Losses Incurred		3,584			3,624			(17	)		(12	)		3,567			3,612
Expenses Incurred		1,912			1,859			1			—			1,913			1,859
Dividends Incurred		16			16			—			—			16			16
Statutory Underwriting Income (Loss)	$	419		$	265		$	19		$	15			438			280
Increase in Deferred Acquisition Costs														24			57
GAAP Underwriting Income													$	462		$	337
Ratios After Dividends to Policyholders:
Loss		60.6	%		63.1	%		*	%		*	%		60.3	%		62.8	%
Expense		31.7			31.5			*			*			31.7			31.5
Combined		92.3	%		94.6	%		*	%		*	%		92.0	%		94.3	%
Premiums Written as a % of Total		100.0	%		100.0	%		0.0	%		0.0	%		100.0	%		100.0	%

* Combined, loss and expense ratios are no longer presented for Reinsurance Assumed since this business is in runoff.

Page 9 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	United States						Outside the United States						Worldwide Total
	2012			2011			2012			2011			2012			2011
Net Premiums Written	$	4,448		$	4,284		$	1,601		$	1,630		$	6,049		$	5,914
Decrease (Increase) in Unearned Premiums		(58	)		(41	)		(57	)		(106	)		(115	)		(147	)
Net Premiums Earned		4,390			4,243			1,544			1,524			5,934			5,767
Net Losses Paid		2,553			2,439			735			771			3,288			3,210
Increase (Decrease) in Outstanding Losses		147			250			132			152			279			402
Net Losses Incurred		2,700			2,689			867			923			3,567			3,612
Expenses Incurred		1,334			1,275			579			584			1,913			1,859
Dividends Incurred		16			16			—			—			16			16
Statutory Underwriting Income (Loss)	$	340		$	263		$	98		$	17			438			280
Increase in Deferred Acquisition Costs														24			57
GAAP Underwriting Income													$	462		$	337
Ratios After Dividends to Policyholders:
Loss		61.7	%		63.6	%		56.2	%		60.6	%		60.3	%		62.8	%
Expense		30.1			29.9			36.2			35.8			31.7			31.5
Combined		91.8	%		93.5	%		92.4	%		96.4	%		92.0	%		94.3	%
Premiums Written as a % of Total		73.5	%		72.4	%		26.5	%		27.6	%		100.0	%		100.0	%

Property and casualty underwriting results for 2011 reflect a reclassification of certain business that was previously considered outside the United States business and is now considered United States business. This reclassification had no impact on worldwide total amounts.

Page 10 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	Personal Automobile						Homeowners						Other Personal						Total Personal
	2012			2011			2012			2011			2012			2011			2012			2011
Net Premiums Written	$	185		$	181		$	706		$	681		$	218		$	201		$	1,109		$	1,063
Decrease (Increase) in Unearned Premiums		(18	)		(14	)		(79	)		(72	)		2			3			(95	)		(83	)
Net Premiums Earned		167			167			627			609			220			204			1,014			980
Net Losses Paid		102			97			290			353			102			125			494			575
Increase (Decrease) in Outstanding Losses		4			5			73			41			16			(1	)		93			45
Net Losses Incurred		106			102			363			394			118			124			587			620
Expenses Incurred		55			56			229			225			85			76			369			357
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	6		$	9		$	35		$	(10	)	$	17		$	4		$	58		$	3
Ratios After Dividends to Policyholders:
Loss		63.5	%		61.1	%		57.9	%		64.7	%		53.6	%		60.8	%		57.9	%		63.3	%
Expense		29.7			30.9			32.4			33.0			39.0			37.8			33.3			33.6
Combined		93.2	%		92.0	%		90.3	%		97.7	%		92.6	%		98.6	%		91.2	%		96.9	%
Premiums Written as a % of Total		6.0	%		5.9	%		22.8	%		22.3	%		7.0	%		6.6	%		35.8	%		34.8	%

Page 11 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	Commercial Multiple Peril						Commercial Casualty						Commercial Workers’ Compensation						Commercial Property and Marine						Total Commercial
	2012			2011			2012			2011			2012			2011			2012			2011			2012			2011
Net Premiums Written	$	292		$	295		$	420		$	419		$	249		$	220		$	392		$	376		$	1,353		$	1,310
Decrease (Increase) in Unearned Premiums		(7	)		(10	)		(3	)		(14	)		(8	)		(14	)		(30	)		(38	)		(48	)		(76	)
Net Premiums Earned		285			285			417			405			241			206			362			338			1,305			1,234
Net Losses Paid		149			156			195			274			126			109			214			176			684			715
Increase (Decrease) in Outstanding Losses		35			83			74			(47	)		46			34			39			95			194			165
Net Losses Incurred		184			239			269			227			172			143			253			271			878			880
Expenses Incurred		106			113			116			117			54			47			126			124			402			401
Dividends Incurred		—			—			—			—			7			7			—			—			7			7
Statutory Underwriting Income (Loss)	$	(5	)	$	(67	)	$	32		$	61		$	8		$	9		$	(17	)	$	(57	)	$	18		$	(54	)
Ratios After Dividends to Policyholders:
Loss		64.6	%		83.9	%		64.5	%		56.1	%		73.5	%		71.8	%		69.9	%		80.2	%		67.6	%		71.7	%
Expense		36.3			38.3			27.6			27.9			22.3			22.1			32.1			33.0			29.9			30.8
Combined		100.9	%		122.2	%		92.1	%		84.0	%		95.8	%		93.9	%		102.0	%		113.2	%		97.5	%		102.5	%
Premiums Written as a % of Total		9.4	%		9.7	%		13.6	%		13.7	%		8.0	%		7.2	%		12.6	%		12.3	%		43.6	%		42.9	%

Page 12 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	Professional Liability						Surety						Total Specialty
	2012			2011			2012			2011			2012			2011
Net Premiums Written	$	555		$	595		$	83		$	85		$	638		$	680
Decrease (Increase) in Unearned Premiums		29			21			(3	)		(4	)		26			17
Net Premiums Earned		584			616			80			81			664			697
Net Losses Paid		440			420			5			9			445			429
Increase (Decrease) in Outstanding Losses		(40	)		(73	)		(2	)		(1	)		(42	)		(74	)
Net Losses Incurred		400			347			3			8			403			355
Expenses Incurred		163			168			32			29			195			197
Dividends Incurred		—			—			1			1			1			1
Statutory Underwriting Income (Loss)	$	21		$	101		$	44		$	43		$	65		$	144
Ratios After Dividends to Policyholders:
Loss		68.5	%		56.4	%		3.8	%		10.0	%		60.8	%		51.0	%
Expense		29.4			28.2			39.0			34.5			30.6			29.0
Combined		97.9	%		84.6	%		42.8	%		44.5	%		91.4	%		80.0	%
Premiums Written as a % of Total		17.9	%		19.5	%		2.7	%		2.8	%		20.6	%		22.3	%

Page 13 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	Total Insurance						Reinsurance Assumed						Worldwide Total
	2012			2011			2012			2011			2012			2011
Net Premiums Written	$	3,100		$	3,053		$	—		$	2		$	3,100		$	3,055
Decrease (Increase) in Unearned Premiums		(117	)		(142	)		—			—			(117	)		(142	)
Net Premiums Earned		2,983			2,911			—			2			2,983			2,913
Net Losses Paid		1,623			1,719			14			24			1,637			1,743
Increase (Decrease) in Outstanding Losses		245			136			(22	)		(32	)		223			104
Net Losses Incurred		1,868			1,855			(8	)		(8	)		1,860			1,847
Expenses Incurred		966			955			—			—			966			955
Dividends Incurred		8			8			—			—			8			8
Statutory Underwriting Income (Loss)	$	141		$	93		$	8		$	10			149			103
Increase in Deferred Acquisition Costs														10			32
GAAP Underwriting Income													$	159		$	135
Ratios After Dividends to Policyholders:
Loss		62.8	%		63.9	%		*	%		*	%		62.5	%		63.6	%
Expense		31.2			31.4			*			*			31.3			31.3
Combined		94.0	%		95.3	%		*	%		*	%		93.8	%		94.9	%
Premiums Written as a % of Total		100.0	%		100.0	%		0.0	%		0.0	%		100.0	%		100.0	%

* Combined, loss and expense ratios are no longer presented for Reinsurance Assumed since this business is in runoff.

Page 14 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED JUNE 30, 2012 AND 2011

(DOLLARS IN MILLIONS)

	United States						Outside the United States						Worldwide Total
	2012			2011			2012			2011			2012			2011
Net Premiums Written	$	2,366		$	2,298		$	734		$	757		$	3,100		$	3,055
Decrease (Increase) in Unearned Premiums		(161	)		(167	)		44			25			(117	)		(142	)
Net Premiums Earned		2,205			2,131			778			782			2,983			2,913
Net Losses Paid		1,291			1,287			346			456			1,637			1,743
Increase (Decrease) in Outstanding Losses		152			152			71			(48	)		223			104
Net Losses Incurred		1,443			1,439			417			408			1,860			1,847
Expenses Incurred		688			671			278			284			966			955
Dividends Incurred		8			8			—			—			8			8
Statutory Underwriting Income (Loss)	$	66		$	13		$	83		$	90			149			103
Increase in Deferred Acquisition Costs														10			32
GAAP Underwriting Income													$	159		$	135
Ratios After Dividends to Policyholders:
Loss		65.7	%		67.8	%		53.6	%		52.2	%		62.5	%		63.6	%
Expense		29.2			29.3			37.9			37.5			31.3			31.3
Combined		94.9	%		97.1	%		91.5	%		89.7	%		93.8	%		94.9	%
Premiums Written as a % of Total		76.3	%		75.2	%		23.7	%		24.8	%		100.0	%		100.0	%

Property and casualty underwriting results for 2011 reflect a reclassification of certain business that was previously considered outside the United States business and is now considered United States business. This reclassification had no impact on worldwide total amounts.

Page 15 of 17

THE CHUBB CORPORATION

Definitions of Key Terms

Underwriting Income (Loss)

Management evaluates underwriting results separately from investment results. The underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. Performance of the business units is measured based on statutory underwriting results. Statutory accounting principles applicable to property and casualty insurance companies differ in certain respects from generally accepted accounting principles (GAAP). Under statutory accounting principles, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned. Statutory underwriting income (loss) is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred.

Management uses underwriting results determined in accordance with GAAP, among other measures, to assess the overall performance of the underwriting operations. To convert statutory underwriting results to a GAAP basis, certain policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned. Underwriting income (loss) determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred.

Property and Casualty Investment Income After Income Tax

Management uses property and casualty investment income after income tax, a non-GAAP financial measure, to evaluate its investment results because it reflects the impact of any change in the proportion of the investment portfolio invested in tax exempt securities and is therefore more meaningful for analysis purposes than investment income before income taxes.

Book Value per Common Share with Available-for-Sale Fixed Maturities at Amortized Cost

Book value per common share represents the portion of consolidated shareholders’ equity attributable to one share of common stock outstanding as of the balance sheet date. Consolidated shareholders’ equity includes, as part of accumulated other comprehensive income (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporation’s available-for-sale fixed maturities, which are carried at fair value. The appreciation or depreciation of available-for-sale fixed maturities is subject to fluctuation due to changes in interest rates and therefore could distort the analysis of trends. Management believes that book value per common share with available-for-sale fixed maturities at amortized cost, a non-GAAP financial measure, is an important measure of the underlying equity attributable to one share of common stock.

Combined Loss and Expense Ratio or Combined Ratio

The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability. Management uses the combined loss and expense ratio calculated in accordance with statutory accounting principles applicable to property and casualty insurance companies to evaluate the performance of the underwriting operations. It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the ratio of statutory underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by dividends to policyholders.

Page 16 of 17

THE CHUBB CORPORATION

Definitions of Key Terms

Operating Income

Operating income, a non-GAAP financial measure, is net income excluding after-tax realized investment gains and losses. Management uses operating income, among other measures, to evaluate its performance because the realization of investment gains and losses in any given period is largely discretionary as to timing and can fluctuate significantly, which could distort the analysis of trends.

Return on Equity and Operating Return on Equity

Return on equity is the ratio of annualized net income divided by average shareholders’ equity. Average shareholders’ equity is the average of the beginning and all quarter-end balances within the period.

Operating return on equity, a non-GAAP measure, is the ratio of annualized operating income divided by average shareholders’ equity excluding the after-tax unrealized appreciation or depreciation of investments. Consolidated shareholders’ equity includes, as part of accumulated other comprehensive income (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporation’s available-for-sale fixed maturities and equity securities, which are carried at fair value. The appreciation or depreciation of available-for-sale fixed maturities and equity securities is subject to fluctuation and could distort the analysis of trends. Average shareholders’ equity excluding the after-tax unrealized appreciation or depreciation of investments is the average of the beginning and all quarter-end balances within the period. Management uses operating return on equity, among other measures, to assess the overall performance of the Corporation.

	Periods Ended June 30
	Second Quarter						Six Months
	2012			2011			2012			2011
	(dollars in millions)
	(As Adjusted)									(As Adjusted)
Annualized Net Income	$	1,616		$	1,676		$	1,820		$	1,856
Average Shareholders’ Equity	$	15,526		$	15,412		$	15,451		$	15,360
Return on Equity		10.4	%		10.9	%		11.8	%		12.1	%
Annualized Operating Income	$	1,496		$	1,496		$	1,686		$	1,558
Average Shareholders’ Equity Excluding Unrealized Appreciation or Depreciation	$	13,701		$	14,204		$	13,655		$	14,181
Operating Return on Equity		10.9	%		10.5	%		12.3	%		11.0	%

Page 17 of 17