1 Exhibit 11.1 THE CHUBB CORPORATION COMPUTATION OF EARNINGS PER SHARE PERIODS ENDED SEPTEMBER 30 Third Quarter Nine Months ------------- ------------- 1994 1993 1994 1993 ---- ---- ---- ---- (in millions) Net income (loss)............................ $152.7 $(130.6) $372.6 $163.7 After-tax interest expense on 6% guaranteed exchangeable subordinated notes............. 2.4 2.3 7.3 7.3 ------ ------- ------ ------ Net income (loss) for computing earnings per share................................... $155.1 $(128.3) $379.9 $171.0 ====== ======= ====== ====== Average number of common shares outstanding................................. 87.6 87.7 87.7 87.6 Additional shares from assumed conversion of 6% guaranteed exchangeable subordinated notes as if each $1,000 of principal amount had been converted at issuance into 11.628 shares of common stock.......... 2.9 2.9 2.9 2.9 ------ ------- ------ ------ Average number of common and common equivalent shares assumed outstanding for computing earnings per share................ 90.5 90.6 90.6 90.5 ====== ======= ====== ====== Net income (loss) per share.................. $ 1.71 $ (1.42) $ 4.19 $ 1.89