1 Exhibit 11.1 THE CHUBB CORPORATION COMPUTATION OF EARNINGS PER SHARE PERIODS ENDED JUNE 30 Second Quarter Six Months --------------- --------------- 1997 1996 1997 1996 ------ ------ ------ ------ (in millions) Net income.................................. $188.7 $174.3 $380.8 $325.7 After-tax interest expense on 6% exchangeable subordinated notes............ 1.1 2.5 3.3 4.9 ------ ------ ------ ------ Net income for computing earnings per share. $189.8 $176.8 $384.1 $330.6 ====== ====== ====== ====== Weighted average number of common shares outstanding................................ 172.3 174.6 172.9 174.6 Additional shares from assumed conversion of 6% exchangeable subordinated notes as if each $1,000 of principal amount had been converted at issuance into 23.256 shares of common stock............. 2.0 5.8 3.7 5.8 ------ ------ ------ ------ Weighted average number of common and common equivalent shares assumed outstanding for computing earnings per share.............. 174.3 180.4 176.6 180.4 ====== ====== ====== ====== Net income per share........................ $ 1.09 $ .98 $ 2.18 $ 1.83