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

Exhibit 99.3

Chubb Limited

Financial Supplement

Legacy Chubb Corporation Financial Results for the

Quarter and Year Ended December 31, 2015

Investor Contact

Helen M. Wilson

Phone: (441) 299-9283

email: investorrelations@chubb.com

This report is for informational purposes only. It should be read in conjunction with documents filed by Chubb Limited 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

SUPPLEMENTARY INVESTOR INFORMATION

TABLE OF CONTENTS

DECEMBER 31, 2015

	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 - Quarterly	6-10
Underwriting Results - Year-To-Date	11-15
Definitions of Key Terms	16-17

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

(in millions, except per share amounts)

	December 31 2015						December 31 2014
				% of Total						% of Total
Invested Assets (at carrying value)
Short Term Investments	$	4,631			11	%	$	1,318			3	%
Fixed Maturities
Tax Exempt		20,000			46			19,772			45
Taxable		15,703			37			19,008			44
Equity Securities		1,279			3			1,964			5
Other Invested Assets		1,371			3			1,423			3
Total Invested Assets	$	42,984			100	%	$	43,485			100	%
Unrealized Appreciation of Investments
Fixed Maturities	$	1,480					$	1,822
Equity Securities		465						875
		1,945						2,697
Deferred Income Tax Liability		681						944
	$	1,264					$	1,753
Fixed Maturities - Average Credit Rating		Aa3						Aa3
Fixed Maturities - Average Duration(in years)		4.2						4.0
Capitalization
Long Term Debt	$	3,300					$	3,300
Shareholders’ Equity		16,694						16,296
Total Capitalization	$	19,994					$	19,596
Debt as a Percentage of Total Capitalization		16.5	%					16.8	%
Actual Common Shares Outstanding		227.5						232.4
Book Value Per Common Share	$	73.38					$	70.12
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost	$	69.15					$	65.03

Page 1 of 17

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

(dollars in millions, except per share amounts)

	Periods Ended December 31
	Fourth Quarter 2015		Twelve Months 2015		From December 2005 to December 31, 2015
Cost of Shares Repurchased	$	—	$	604	$	14,072
Average Cost Per Share	$	—	$	99.83	$	59.88
Shares Repurchased		—		6,046,623		235,013,012

During the period from December 2005 through January 2014, the Board of Directors periodically authorized share repurchase programs. Pursuant to these authorizations, approximately 229 million shares of the Corporation’s common stock were repurchased. No shares or funds remain available under these authorizations.

In January 2015, the Board of Directors authorized the repurchase of up to $1.3 billion of the Corporation’s common stock. The Corporation suspended repurchases of its common stock in connection with its agreeing to be acquired by ACE Limited, which was announced on July 1, 2015. As of December 31, 2015, approximately $749 million remained under this authorization.

Page 2 of 17

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

AS OF DECEMBER 31

CORPORATE

	Cost or				Carrying
	Amortized Cost				Value (a)
	2015		2014		2015		2014
	(in millions)
Short Term Investments	$	2,965	$	585	$	2,965	$	585
Taxable Fixed Maturities		246		1,231		249		1,244
TOTAL	$	3,211	$	1,816	$	3,214	$	1,829

PROPERTY AND CASUALTY

	Cost or				Carrying
	Amortized Cost				Value (a)
	2015		2014		2015		2014
	(in millions)
Short Term Investments	$	1,666	$	733	$	1,666	$	733
Fixed Maturities
Tax Exempt		18,946		18,614		20,000		19,772
Taxable		15,031		17,113		15,454		17,764
Equity Securities		814		1,089		1,279		1,964
Other Invested Assets		1,371		1,423		1,371		1,423
TOTAL	$	37,828	$	38,972	$	39,770	$	41,656

(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 December 31
	Fourth Quarter						Twelve Months
	2015			2014			2015			2014
	(in millions)
CORPORATE INVESTMENT INCOME	$	3		$	4		$	13		$	15
PROPERTY AND CASUALTY INVESTMENT INCOME
Tax Exempt Interest	$	157		$	163		$	647		$	659
Taxable Interest		89			95			361			397
Other		14			15			56			58
Investment Expenses		(8	)		(6	)		(30	)		(25	)
TOTAL	$	252		$	267		$	1,034		$	1,089
Effective Tax Rate		17.6	%		17.8	%		17.6	%		18.1	%
After-Tax Annualized Yield		2.59	%		2.64	%		2.62	%		2.73	%

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

AS OF DECEMBER 31

	2015		2014		2013
	(in millions)
Estimated Statutory Policyholders’ Surplus	$	13,500	$	15,127	$	15,024
Rolling Year Statutory Net Premiums Written	$	12,622	$	12,593	$	12,214
Ratio of Statutory Net Premiums Written to Policyholders’ Surplus		0.93:1		0.83:1		0.81:1

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

TWELVE MONTHS ENDED DECEMBER 31, 2015

	Net Unpaid Losses							IBNR Increase (Decrease)			All Other Unpaid Losses Increase (Decrease)
	Dec. 31 2015		Dec. 31 2014		Increase (Decrease)
	(in millions)
Personal Insurance
Automobile	$	383	$	397	$	(14	)	$	(7	)	$	(7	)
Homeowners		765		748		17			(3	)		20
Other		942		1,000		(58	)		(17	)		(41	)
Total Personal		2,090		2,145		(55	)		(27	)		(28	)
Commercial Insurance
Multiple Peril		1,739		1,750		(11	)		7			(18	)
Casualty		6,383		6,514		(131	)		(25	)		(106	)
Workers’ Compensation		3,138		2,918		220			93			127
Property and Marine		900		883		17			(12	)		29
Total Commercial		12,160		12,065		95			63			32
Specialty Insurance
Professional Liability		6,081		6,480		(399	)		(333	)		(66	)
Surety		86		75		11			7			4
Total Specialty		6,167		6,555		(388	)		(326	)		(62	)
Total Insurance		20,417		20,765		(348	)		(290	)		(58	)
Reinsurance Assumed		231		274		(43	)		(19	)		(24	)
Total	$	20,648	$	21,039	$	(391	)	$	(309	)	$	(82	)

Page 5 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Personal												Other						Total
	Automobile						Homeowners						Personal						Personal
	2015			2014			2015			2014			2015			2014			2015			2014
Net Premiums Written	$	162		$	182		$	682		$	672		$	243		$	265		$	1,087		$	1,119
Decrease (Increase) in Unearned Premiums		8			1			14			13			(1	)		(11	)		21			3
Net Premiums Earned		170			183			696			685			242			254			1,108			1,122
Net Losses Paid		118			122			368			339			168			137			654			598
Increase (Decrease) in Outstanding Losses		(2	)		(2	)		(52	)		(27	)		(29	)		—			(83	)		(29	)
Net Losses Incurred		116			120			316			312			139			137			571			569
Expenses Incurred		51			54			218			208			96			109			365			371
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income (Loss)	$	3		$	9		$	162		$	165		$	7		$	8		$	172		$	182
Ratios After Dividends to Policyholders:
Loss		68.2	%		65.5	%		45.4	%		45.5	%		57.4	%		54.0	%		51.5	%		50.7	%
Expense		31.5			29.7			32.0			31.0			39.5			41.1			33.6			33.2
Combined		99.7	%		95.2	%		77.4	%		76.5	%		96.9	%		95.1	%		85.1	%		83.9	%
Premiums Written as a % of Total		5.3	%		5.8	%		22.4	%		21.4	%		8.0	%		8.5	%		35.7	%		35.7	%

Page 6 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Commercial Multiple Peril						Commercial Casualty						Commercial Workers’ Compensation						Commercial Property and Marine						Total Commercial
	2015			2014			2015			2014			2015			2014			2015			2014			2015			2014
Net Premiums Written	$	270		$	284		$	376		$	393		$	291		$	284		$	331		$	357		$	1,268		$	1,318
Decrease (Increase) in Unearned Premiums		6			(3	)		21			14			28			2			29			7			84			20
Net Premiums Earned		276			281			397			407			319			286			360			364			1,352			1,338
Net Losses Paid		131			156			239			289			140			123			212			196			722			764
Increase (Decrease) in Outstanding Losses		27			(12	)		(17	)		(1	)		55			37			17			(10	)		82			14
Net Losses Incurred		158			144			222			288			195			160			229			186			804			778
Expenses Incurred		104			96			112			113			68			61			119			119			403			389
Dividends Incurred		1			1			—			1			9			10			—			—			10			12
Statutory Underwriting Income (Loss)	$	13		$	40		$	63		$	5		$	47		$	55		$	12		$	59		$	135		$	159
Ratios After Dividends to Policyholders:
Loss		57.4	%		51.5	%		55.9	%		71.0	%		62.9	%		57.9	%		63.6	%		51.1	%		59.9	%		58.7	%
Expense		38.7			33.9			29.8			28.8			24.1			22.3			36.0			33.3			32.0			29.8
Combined		96.1	%		85.4	%		85.7	%		99.8	%		87.0	%		80.2	%		99.6	%		84.4	%		91.9	%		88.5	%
Premiums Written as a % of Total		8.9	%		9.1	%		12.3	%		12.5	%		9.5	%		9.1	%		10.9	%		11.3	%		41.6	%		42.0	%

Page 7 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Professional Liability						Surety						Total Specialty
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	616		$	628		$	75		$	73		$	691		$	701
Decrease (Increase) in Unearned Premiums		(38	)		(45	)		—			—			(38	)		(45	)
Net Premiums Earned		578			583			75			73			653			656
Net Losses Paid		395			492			(5	)		4			390			496
Increase (Decrease) in Outstanding Losses		(76	)		(174	)		8			(1	)		(68	)		(175	)
Net Losses Incurred		319			318			3			3			322			321
Expenses Incurred		166			162			29			32			195			194
Dividends Incurred		—			—			1			1			1			1
Statutory Underwriting Income (Loss)	$	93		$	103		$	42		$	37		$	135		$	140
Ratios After Dividends to Policyholders:
Loss		55.2	%		54.5	%		4.0	%		4.2	%		49.3	%		49.0	%
Expense		26.9			25.8			39.2			44.4			28.3			27.7
Combined		82.1	%		80.3	%		43.2	%		48.6	%		77.6	%		76.7	%
Premiums Written as a % of Total		20.2	%		20.0	%		2.5	%		2.3	%		22.7	%		22.3	%

Page 8 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Total Insurance						Reinsurance Assumed						Worldwide Total
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	3,046		$	3,138		$	1		$	—		$	3,047		$	3,138
Decrease (Increase) in Unearned Premiums		67			(22	)		—			—			67			(22	)
Net Premiums Earned		3,113			3,116			1			—			3,114			3,116
Net Losses Paid		1,766			1,858			8			7			1,774			1,865
Increase (Decrease) in Outstanding Losses		(69	)		(190	)		(12	)		(6	)		(81	)		(196	)
Net Losses Incurred		1,697			1,668			(4	)		1			1,693			1,669
Expenses Incurred		963			954			—			—			963			954
Dividends Incurred		11			13			—			—			11			13
Statutory Underwriting Income (Loss)	$	442		$	481		$	5		$	(1	)		447			480
Decrease in Deferred Acquisition Costs														(12	)		(3	)
GAAP Underwriting Income													$	435		$	477
Ratios After Dividends to Policyholders:
Loss		54.7	%		53.8	%		*	%		*	%		54.6	%		53.8	%
Expense		31.7			30.5			*			*			31.7			30.5
Combined		86.4	%		84.3	%		*	%		*	%		86.3	%		84.3	%
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 the Reinsurance Assumed business since it is in runoff.

Page 9 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE QUARTERS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	United States						Outside the United States						Worldwide Total
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	2,377		$	2,362		$	670		$	776		$	3,047		$	3,138
Decrease (Increase) in Unearned Premiums		77			—			(10	)		(22	)		67			(22	)
Net Premiums Earned		2,454			2,362			660			754			3,114			3,116
Net Losses Paid		1,392			1,426			382			439			1,774			1,865
Increase (Decrease) in Outstanding Losses		(49	)		(211	)		(32	)		15			(81	)		(196	)
Net Losses Incurred		1,343			1,215			350			454			1,693			1,669
Expenses Incurred		701			655			262			299			963			954
Dividends Incurred		11			13			—			—			11			13
Statutory Underwriting Income (Loss)	$	399		$	479		$	48		$	1			447			480
Decrease in Deferred Acquisition Costs														(12	)		(3	)
GAAP Underwriting Income													$	435		$	477
Ratios After Dividends to Policyholders:
Loss		55.0	%		51.7	%		53.0	%		60.2	%		54.6	%		53.8	%
Expense		29.6			27.9			39.1			38.5			31.7			30.5
Combined		84.6	%		79.6	%		92.1	%		98.7	%		86.3	%		84.3	%
Premiums Written as a % of Total		78.0	%		75.3	%		22.0	%		24.7	%		100.0	%		100.0	%

Page 10 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Personal Automobile						Homeowners						Other Personal						Total Personal
	2015			2014			2015			2014			2015			2014			2015			2014
Net Premiums Written	$	701		$	740		$	2,821		$	2,765		$	988		$	1,003		$	4,510		$	4,508
Decrease (Increase) in Unearned Premiums		2			(16	)		(38	)		(55	)		(2	)		(19	)		(38	)		(90	)
Net Premiums Earned		703			724			2,783			2,710			986			984			4,472			4,418
Net Losses Paid		456			466			1,535			1,500			562			476			2,553			2,442
Increase (Decrease) in Outstanding Losses		13			13			36			43			(23	)		42			26			98
Net Losses Incurred		469			479			1,571			1,543			539			518			2,579			2,540
Expenses Incurred		223			227			893			866			392			415			1,508			1,508
Dividends Incurred		—			—			—			—			—			—			—			—
Statutory Underwriting Income	$	11		$	18		$	319		$	301		$	55		$	51		$	385		$	370
Ratios After Dividends to Policyholders:
Loss		66.7	%		66.1	%		56.4	%		57.0	%		54.6	%		52.6	%		57.7	%		57.5	%
Expense		31.8			30.7			31.7			31.3			39.7			41.4			33.4			33.4
Combined		98.5	%		96.8	%		88.1	%		88.3	%		94.3	%		94.0	%		91.1	%		90.9	%
Premiums Written as a % of Total		5.6	%		5.9	%		22.3	%		21.9	%		7.8	%		8.0	%		35.7	%		35.8	%

Page 11 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Commercial Multiple Peril						Commercial Casualty						Commercial Workers’ Compensation						Commercial Property and Marine						Total Commercial
	2015			2014			2015			2014			2015			2014			2015			2014			2015			2014
Net Premiums Written	$	1,113		$	1,121		$	1,619		$	1,644		$	1,280		$	1,158		$	1,462		$	1,479		$	5,474		$	5,402
Decrease (Increase) in Unearned Premiums		(1	)		(4	)		10			(16	)		(44	)		(51	)		(10	)		(50	)		(45	)		(121	)
Net Premiums Earned		1,112			1,117			1,629			1,628			1,236			1,107			1,452			1,429			5,429			5,281
Net Losses Paid		570			548			942			1,029			546			513			799			848			2,857			2,938
Increase (Decrease) in Outstanding Losses		17			20			(5	)		11			229			134			42			8			283			173
Net Losses Incurred		587			568			937			1,040			775			647			841			856			3,140			3,111
Expenses Incurred		421			411			458			469			280			252			511			505			1,670			1,637
Dividends Incurred		1			1			—			1			37			39			—			—			38			41
Statutory Underwriting Income	$	103		$	137		$	234		$	118		$	144		$	169		$	100		$	68		$	581		$	492
Ratios After Dividends to Policyholders:
Loss		52.8	%		50.9	%		57.5	%		63.9	%		64.7	%		60.6	%		57.9	%		59.9	%		58.3	%		59.4	%
Expense		37.9			36.7			28.3			28.6			22.5			22.5			35.0			34.1			30.7			30.5
Combined		90.7	%		87.6	%		85.8	%		92.5	%		87.2	%		83.1	%		92.9	%		94.0	%		89.0	%		89.9	%
Premiums Written as a % of Total		8.8	%		8.9	%		12.8	%		13.1	%		10.1	%		9.2	%		11.6	%		11.7	%		43.3	%		42.9	%

Page 12 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Professional Liability						Surety						Total Specialty
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	2,340		$	2,381		$	309		$	300		$	2,649		$	2,681
Decrease (Increase) in Unearned Premiums		(31	)		(52	)		(1	)		(1	)		(32	)		(53	)
Net Premiums Earned		2,309			2,329			308			299			2,617			2,628
Net Losses Paid		1,416			1,550			1			62			1,417			1,612
Increase (Decrease) in Outstanding Losses		(183	)		(286	)		12			7			(171	)		(279	)
Net Losses Incurred		1,233			1,264			13			69			1,246			1,333
Expenses Incurred		657			666			127			130			784			796
Dividends Incurred		—			—			4			4			4			4
Statutory Underwriting Income	$	419		$	399		$	164		$	96		$	583		$	495
Ratios After Dividends to Policyholders:
Loss		53.4	%		54.2	%		4.3	%		23.4	%		47.7	%		50.8	%
Expense		28.1			28.0			41.6			43.9			29.6			29.7
Combined		81.5	%		82.2	%		45.9	%		67.3	%		77.3	%		80.5	%
Premiums Written as a % of Total		18.5	%		18.9	%		2.5	%		2.4	%		21.0	%		21.3	%

Page 13 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	Total Insurance						Reinsurance Assumed						Worldwide Total
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	12,633		$	12,591		$	—		$	1		$	12,633		$	12,592
Decrease (Increase) in Unearned Premiums		(115	)		(264	)		—			—			(115	)		(264	)
Net Premiums Earned		12,518			12,327			—			1			12,518			12,328
Net Losses Paid		6,827			6,992			31			38			6,858			7,030
Increase (Decrease) in Outstanding Losses		138			(8	)		(43	)		(37	)		95			(45	)
Net Losses Incurred		6,965			6,984			(12	)		1			6,953			6,985
Expenses Incurred		3,962			3,941			—			—			3,962			3,941
Dividends Incurred		42			45			—			—			42			45
Statutory Underwriting Income	$	1,549		$	1,357		$	12		$	—			1,561			1,357
Increase in Deferred Acquisition Costs														32			45
GAAP Underwriting Income													$	1,593		$	1,402
Ratios After Dividends to Policyholders:
Loss		55.8	%		56.9	%		*	%		*	%		55.7	%		56.9	%
Expense		31.5			31.4			*			*			31.5			31.4
Combined		87.3	%		88.3	%		*	%		*	%		87.2	%		88.3	%
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 the Reinsurance Assumed business since it is in runoff.

Page 14 of 17

THE CHUBB CORPORATION — WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2014

(DOLLARS IN MILLIONS)

	United States						Outside the United States						Worldwide Total
	2015			2014			2015			2014			2015			2014
Net Premiums Written	$	9,858		$	9,513		$	2,775		$	3,079		$	12,633		$	12,592
Decrease (Increase) in Unearned Premiums		(92	)		(197	)		(23	)		(67	)		(115	)		(264	)
Net Premiums Earned		9,766			9,316			2,752			3,012			12,518			12,328
Net Losses Paid		5,374			5,333			1,484			1,697			6,858			7,030
Increase (Decrease) in Outstanding Losses		163			(13	)		(68	)		(32	)		95			(45	)
Net Losses Incurred		5,537			5,320			1,416			1,665			6,953			6,985
Expenses Incurred		2,878			2,749			1,084			1,192			3,962			3,941
Dividends Incurred		42			45			—			—			42			45
Statutory Underwriting Income	$	1,309		$	1,202		$	252		$	155			1,561			1,357
Increase in Deferred Acquisition Costs														32			45
GAAP Underwriting Income													$	1,593		$	1,402
Ratios After Dividends to Policyholders:
Loss		57.0	%		57.4	%		51.4	%		55.3	%		55.7	%		56.9	%
Expense		29.3			29.0			39.1			38.7			31.5			31.4
Combined		86.3	%		86.4	%		90.5	%		94.0	%		87.2	%		88.3	%
Premiums Written as a % of Total		78.0	%		75.5	%		22.0	%		24.5	%		100.0	%		100.0	%

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 tax exempt investment income to total investment income and is therefore more meaningful for analysis purposes than investment income before income tax.

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

Book value per common share represents the portion of consolidated shareholders’ equity attributable to one share of common stock outstanding as of the balance sheet date. Consolidated shareholders’ equity includes, as part of accumulated other comprehensive income or 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) and 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 or 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 December 31
	Fourth Quarter						Twelve Months
	2015			2014			2015			2014
	(dollars in millions)
Annualized Net Income	$	2,664		$	2,232		$	2,136		$	2,100
Average Shareholders’ Equity	$	16,533		$	16,401		$	16,288		$	16,325
Return on Equity		16.1	%		13.6	%		13.1	%		12.9	%
Annualized Operating Income	$	1,876		$	2,176		$	1,864		$	1,858
Average Shareholders’ Equity Excluding Unrealized Appreciation or Depreciation	$	15,167		$	14,699		$	14,721		$	14,767
Operating Return on Equity		12.4	%		14.8	%		12.7	%		12.6	%

Page 17 of 17