1 Exhibit 11.1 THE CHUBB CORPORATION COMPUTATION OF EARNINGS PER SHARE PERIODS ENDED SEPTEMBER 30 Third Quarter Nine Months --------------------- --------------------- 1997 1996 1997 1996 ------- ------- ------- ------- (in millions) Net income ................................. $ 194.0 $ 165.2 $ 574.8 $ 490.9 After-tax interest expense on 6% exchangeable subordinated notes ........... -- 2.4 3.3 7.3 ------- ------- ------- ------- Net income for computing earnings per share ................................. $ 194.0 $ 167.6 $ 578.1 $ 498.2 ======= ======= ======= ======= Weighted average number of common shares outstanding ............................... 172.0 174.2 172.6 174.5 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 ............ -- 5.8 2.4 5.8 ------- ------- ------- ------- Weighted average number of common and common equivalent shares assumed outstanding for computing earnings per share ............. 172.0 180.0 175.0 180.3 ======= ======= ======= ======= Net income per share ....................... $ 1.12 $ .93 $ 3.30 $ 2.76