EXHIBIT 20.1
FOR IMMEDIATE RELEASE
CHUBB CORP. ANNOUNCES DIVIDEND INCREASE, NEW SHARE REPURCHASE
PROGRAM AND LIFE AND REAL ESTATE CHARGES
WARREN, N.J., March 7, 1997 - The Board of Directors of The Chubb
Corporation today declared a regular quarterly dividend in the amount of
$0.29 per share payable April 8, 1997 to shareholders of record on March
21, 1997. This represents an increase of 7.4% over the $0.27 dividend paid
last quarter.
The Board also approved a new share repurchase program authorizing
Chubb to buy back up to 17.5 million shares or approximately 10% of its
common stock outstanding. The purchases will be made from time to time in
the open market or in privately negotiated transactions. This new program
replaces an existing, smaller program in effect since 1994.
The Chubb Corporation also announced today that it is re- stating its
preliminary 1996 financial results to reflect the classification of its life
insurance business as a discontinued operation and to recognize a $160 million
after-tax charge re- lated to the write-down of certain real estate assets.
As a result of the definitive agreement reached on February 23 with
Jefferson-Pilot Corporation to purchase Chubb Life Insurance Company of
America for $875 million, Chubb is classi- fying its life insurance
business as a discontinued operation and is recognizing an after-tax loss
of $22 million on the sale.
In February of 1997, Chubb decided to pursue the sale of certain real
estate assets and has since entered into an agree- ment with a prospective
purchaser to perform due diligence in anticipation of executing a contract for
the sale of substan- tially all of Chubb's commercial properties. This change
in its real estate strategy caused Chubb to reevaluate the carrying value of
these assets which resulted in the $160 million after-tax charge.
As a result of these developments, Chubb's restated results for 1996 and
1995 are as follows:
Amounts Per Share
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1996 1995 1996 1995
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($ Millions)
Operating income from
continuing operations (*) $434.2 $583.7 $2.46 $3.29
Income from continuing operations
(including realized investment gains) $486.2 $654.4 $2.75 $3.70
Income from discontinued operations 26.5 42.2 .15 .23
------ ------ ------ -----
Net income $512.7 $696.6 $2.90 $3.93
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(*) 1996 amounts reflect an after-tax charge of $160 million
or $0.89 per share related to the write-down of certain
real estate assets.
For further information contact: Gail E. Devlin
(908) 903-3245
Glenn A. Montgomery
(908) 903-2365