1 Exhibit 11.1 THE CHUBB CORPORATION COMPUTATION OF EARNINGS PER SHARE PERIODS ENDED SEPTEMBER 30 Third Quarter Nine Months ------------- ------------- 1996 1995 1996 1995 ---- ---- ---- ---- (in millions) Net income.................................. $165.2 $171.4 $490.9 $503.1 After-tax interest expense on 6% guaranteed exchangeable subordinated notes............ 2.4 2.4 7.3 7.3 ------ ------ ------ ------ Net income for computing earnings per share. $167.6 $173.8 $498.2 $510.4 ====== ====== ====== ====== Average number of common shares outstanding. 174.2 174.2 174.5 174.0 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.............. 180.0 180.0 180.3 179.8 ====== ====== ====== ====== Net income per share........................ $ .93 $ .97 $ 2.76 $ 2.84 The number of shares and per share amounts have been retroactively adjusted to reflect the two-for-one stock split effective April 19, 1996.