1 Exhibit 11.1 THE CHUBB CORPORATION COMPUTATION OF EARNINGS PER SHARE PERIODS ENDED JUNE 30 Second Quarter Six Months -------------- ------------- 1996 1995 1996 1995 ---- ---- ---- ---- (in millions) Net income.................................. $174.3 $185.0 $325.7 $331.7 After-tax interest expense on 6% guaranteed exchangeable subordinated notes............ 2.5 2.5 4.9 4.9 ------ ------ ------ ------ Net income for computing earnings per share. $176.8 $187.5 $330.6 $336.6 ====== ====== ====== ====== Average number of common shares outstanding. 174.6 174.0 174.6 173.8 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 23.256 shares of common stock........ 5.8 5.8 5.8 5.8 ------ ------ ------ ------ Average number of common and common equivalent shares assumed outstanding for computing earnings per share.............. 180.4 179.8 180.4 179.6 ====== ====== ====== ====== Net income per share........................ $ .98 $ 1.04 $ 1.83 $ 1.87 The number of shares and per share amounts have been retroactively adjusted to reflect the two-for-one stock split effective April 19, 1996.