Attached files
file | filename |
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8-K - FORM 8-K - CHUBB CORP | y93121e8vk.htm |
EX-99.1 - EX-99.1 - CHUBB CORP | y93121exv99w1.htm |
Exhibit 99.2
The
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Supplementary | September 30, 2011 | ||
Chubb
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Investor | |||
Corporation
|
Information |
This report is for informational purposes only. It should be read in conjunction with
documents filed by The Chubb Corporation with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. |
THE CHUBB CORPORATION
SUPPLEMENTARY INVESTOR INFORMATION
TABLE OF CONTENTS
SEPTEMBER 30, 2011
SUPPLEMENTARY INVESTOR INFORMATION
TABLE OF CONTENTS
SEPTEMBER 30, 2011
Page | ||||
The Chubb Corporation: |
||||
Consolidated Balance Sheet Highlights |
1 | |||
Share Repurchase Activity |
2 | |||
Summary of Invested Assets: |
||||
Corporate |
3 | |||
Property and Casualty |
3 | |||
Investment Income After Taxes: |
||||
Corporate |
4 | |||
Property and Casualty |
4 | |||
Property and Casualty Insurance Group: |
||||
Statutory Policyholders Surplus |
4 | |||
Change in Net Unpaid Losses |
5 | |||
Underwriting Results Year-To-Date |
6-10 | |||
Underwriting Results Quarterly |
11-15 | |||
Definitions of Key Terms |
16-17 |
THE CHUBB CORPORATION
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(in millions, except per share amounts)
Sept. 30 | Dec. 31 | |||||||||||||||
2011 | 2010 | |||||||||||||||
% of Total | % of Total | |||||||||||||||
Invested Assets (at carrying value) |
||||||||||||||||
Short Term Investments |
$ | 2,289 | 5 | % | $ | 1,905 | 4 | % | ||||||||
Fixed Maturities |
||||||||||||||||
Tax Exempt |
20,134 | 47 | 19,774 | 47 | ||||||||||||
Taxable |
17,271 | 40 | 16,745 | 40 | ||||||||||||
Equity Securities |
1,366 | 3 | 1,550 | 4 | ||||||||||||
Other Invested Assets |
2,313 | 5 | 2,239 | 5 | ||||||||||||
Total Invested Assets |
$ | 43,373 | 100 | % | $ | 42,213 | 100 | % | ||||||||
Unrealized Appreciation of Investments |
||||||||||||||||
Fixed Maturities |
$ | 2,189 | $ | 1,458 | ||||||||||||
Equity Securities |
95 | 265 | ||||||||||||||
2,284 | 1,723 | |||||||||||||||
Deferred Income Tax Liability |
799 | 603 | ||||||||||||||
$ | 1,485 | $ | 1,120 | |||||||||||||
Capitalization |
||||||||||||||||
Long Term Debt |
$ | 3,975 | $ | 3,975 | ||||||||||||
Shareholders Equity |
15,638 | 15,530 | ||||||||||||||
Total Capitalization |
$ | 19,613 | $ | 19,505 | ||||||||||||
Debt as a Percentage of Total Capitalization |
20.3 | % | 20.4 | % | ||||||||||||
Actual Common Shares Outstanding |
278.1 | 297.3 | ||||||||||||||
Book Value Per Common Share |
$ | 56.23 | $ | 52.24 | ||||||||||||
Book Value Per Common Share, with Available-for-Sale Fixed Maturities at Amortized Cost |
$ | 51.11 | $ | 49.05 |
Page 1 of 17
THE CHUBB CORPORATION
SHARE REPURCHASE ACTIVITY
(dollars in millions, except per share amounts)
Periods Ended September 30 | ||||||||||||
Third | Nine | From | ||||||||||
Quarter | Months | December 2005 | ||||||||||
2011 | 2011 | to September 30, 2011 | ||||||||||
Cost of Shares Repurchased |
$480 | $1,322 | $9,282 | |||||||||
Average Cost Per Share |
$59.97 | $61.24 | $52.12 | |||||||||
Shares Repurchased |
7,997,173 | 21,587,016 | 178,094,720 |
During the period from December 2005 through September 2010, under several
share repurchase authorizations the Board of Directors authorized the
repurchase of a total of 155 million shares of the Corporations common
stock. No shares remain under these repurchase authorizations.
In December 2010, the Board of Directors authorized the repurchase of up
to 30,000,000 shares of the Corporations common stock. The authorization
has no expiration date. As of September 30, 2011, 6,905,280 shares remained
under the share repurchase authorization.
Page 2 of 17
THE CHUBB CORPORATION
SUMMARY OF INVESTED ASSETS
CORPORATE
Cost or | Carrying | |||||||||||||||
Amortized Cost | Value (a) | |||||||||||||||
Sept. 30 | Dec. 31 | Sept. 30 | Dec. 31 | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
Short Term Investments |
$ | 1,322 | $ | 817 | $ | 1,322 | $ | 817 | ||||||||
Taxable Fixed
Maturities |
1,052 | 1,154 | 1,084 | 1,197 | ||||||||||||
Equity Securities |
200 | 205 | 145 | 171 | ||||||||||||
Other Invested Assets |
14 | 23 | 14 | 23 | ||||||||||||
TOTAL |
$ | 2,588 | $ | 2,199 | $ | 2,565 | $ | 2,208 | ||||||||
PROPERTY AND CASUALTY
Cost or | Carrying | |||||||||||||||
Amortized Cost | Value (a) | |||||||||||||||
Sept. 30 | Dec. 31 | Sept. 30 | Dec. 31 | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
Short Term Investments |
$ | 967 | $ | 1,088 | $ | 967 | $ | 1,088 | ||||||||
Fixed Maturities |
||||||||||||||||
Tax Exempt |
18,879 | 19,072 | 20,134 | 19,774 | ||||||||||||
Taxable |
15,285 | 14,835 | 16,187 | 15,548 | ||||||||||||
Equity Securities |
1,071 | 1,080 | 1,221 | 1,379 | ||||||||||||
Other Invested Assets |
2,299 | 2,216 | 2,299 | 2,216 | ||||||||||||
TOTAL |
$ | 38,501 | $ | 38,291 | $ | 40,808 | $ | 40,005 | ||||||||
(a) | Short term investments are carried at amortized cost, which approximates fair value. Fixed maturities and equity securities are carried at fair value. Other invested assets include private equity limited partnerships carried at Chubbs equity in the net assets of the partnerships. |
Page 3 of 17
THE CHUBB CORPORATION
INVESTMENT INCOME AFTER TAXES
Periods Ended September 30 | ||||||||||||||||
Third Quarter | Nine Months | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
CORPORATE INVESTMENT INCOME |
$ | 7 | $ | 8 | $ | 21 | $ | 38 | ||||||||
PROPERTY AND CASUALTY INVESTMENT INCOME |
||||||||||||||||
Tax Exempt Interest |
$ | 190 | $ | 190 | $ | 575 | $ | 569 | ||||||||
Taxable Interest |
119 | 116 | 352 | 351 | ||||||||||||
Other |
17 | 16 | 41 | 37 | ||||||||||||
Investment Expenses |
(5 | ) | (5 | ) | (19 | ) | (16 | ) | ||||||||
TOTAL |
$ | 321 | $ | 317 | $ | 949 | $ | 941 | ||||||||
Effective Tax Rate |
18.9 | % | 18.7 | % | 19.0 | % | 19.0 | % | ||||||||
After-Tax Annualized Yield |
3.28 | % | 3.32 | % | 3.24 | % | 3.28 | % |
After-tax annualized yield is based on the average invested assets for the periods
presented, with fixed maturities at amortized cost and equity securities at fair value.
STATUTORY POLICYHOLDERS SURPLUS
Sept. 30 | Dec. 31 | Sept. 30 | ||||||||||
2011 | 2010 | 2010 | ||||||||||
(in millions) | ||||||||||||
Estimated Statutory
Policyholders Surplus |
$13,950 | $14,539 | $14,525 | |||||||||
Rolling Year Statutory Net Premiums Written |
$11,675 | $11,262 | $11,185 | |||||||||
Ratio of Statutory Net Premiums Written to Policyholders Surplus |
0.84:1 | 0.77:1 | 0.77:1 |
Statutory Policyholders Surplus and Net Premiums Written include all domestic
and foreign property and casualty subsidiaries.
Page 4 of 17
THE CHUBB CORPORATION
PROPERTY AND CASUALTY
CHANGE IN NET UNPAID LOSSES
NINE MONTHS ENDED SEPTEMBER 30, 2011
CHANGE IN NET UNPAID LOSSES
NINE MONTHS ENDED SEPTEMBER 30, 2011
All Other | ||||||||||||||||||||
Net Unpaid Losses | IBNR | Unpaid Losses | ||||||||||||||||||
Increase | Increase | Increase | ||||||||||||||||||
9/30/11 | 12/31/10 | (Decrease) | (Decrease) | (Decrease) | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Personal Insurance |
||||||||||||||||||||
Automobile |
$ | 418 | $ | 395 | $ | 23 | $ | 3 | $ | 20 | ||||||||||
Homeowners |
965 | 692 | 273 | 207 | 66 | |||||||||||||||
Other |
897 | 877 | 20 | 2 | 18 | |||||||||||||||
Total Personal |
2,280 | 1,964 | 316 | 212 | 104 | |||||||||||||||
Commercial Insurance |
||||||||||||||||||||
Multiple Peril |
1,827 | 1,705 | 122 | 78 | 44 | |||||||||||||||
Casualty |
6,265 | 6,141 | 124 | 159 | (35 | ) | ||||||||||||||
Workers Compensation |
2,352 | 2,234 | 118 | 89 | 29 | |||||||||||||||
Property and Marine |
1,140 | 819 | 321 | 167 | 154 | |||||||||||||||
Total Commercial |
11,584 | 10,899 | 685 | 493 | 192 | |||||||||||||||
Specialty Insurance |
||||||||||||||||||||
Professional Liability |
7,351 | 7,388 | (37 | ) | (72 | ) | 35 | |||||||||||||
Surety |
69 | 58 | 11 | | 11 | |||||||||||||||
Total Specialty |
7,420 | 7,446 | (26 | ) | (72 | ) | 46 | |||||||||||||
Total Insurance |
21,284 | 20,309 | 975 | 633 | 342 | |||||||||||||||
Reinsurance Assumed |
500 | 592 | (92 | ) | (77 | ) | (15 | ) | ||||||||||||
Total |
$ | 21,784 | $ | 20,901 | $ | 883 | $ | 556 | $ | 327 | ||||||||||
Page 5 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Personal | Other | Total | ||||||||||||||||||||||||||||||
Automobile | Homeowners | Personal | Personal | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
Net Premiums Written |
$ | 517 | $ | 474 | $ | 1,872 | $ | 1,795 | $ | 597 | $ | 593 | $ | 2,986 | $ | 2,862 | ||||||||||||||||
Decrease (Increase) in
Unearned Premiums |
(17 | ) | (16 | ) | (47 | ) | (24 | ) | 2 | (22 | ) | (62 | ) | (62 | ) | |||||||||||||||||
Net Premiums Earned |
500 | 458 | 1,825 | 1,771 | 599 | 571 | 2,924 | 2,800 | ||||||||||||||||||||||||
Net Losses Paid |
299 | 281 | 1,050 | 1,066 | 334 | 331 | 1,683 | 1,678 | ||||||||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
20 | (1 | ) | 267 | 51 | 13 | (4 | ) | 300 | 46 | ||||||||||||||||||||||
Net Losses Incurred |
319 | 280 | 1,317 | 1,117 | 347 | 327 | 1,983 | 1,724 | ||||||||||||||||||||||||
Expenses Incurred |
160 | 142 | 637 | 593 | 228 | 198 | 1,025 | 933 | ||||||||||||||||||||||||
Dividends Incurred |
| | | | | | | | ||||||||||||||||||||||||
Statutory Underwriting
Income (Loss) |
$ | 21 | $ | 36 | $ | (129 | ) | $ | 61 | $ | 24 | $ | 46 | $ | (84 | ) | $ | 143 | ||||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||||||||||
Loss |
63.8 | % | 61.1 | % | 72.2 | % | 63.1 | % | 57.9 | % | 57.3 | % | 67.9 | % | 61.6 | % | ||||||||||||||||
Expense |
31.0 | 30.0 | 34.0 | 33.0 | 38.2 | 33.4 | 34.3 | 32.6 | ||||||||||||||||||||||||
Combined |
94.8 | % | 91.1 | % | 106.2 | % | 96.1 | % | 96.1 | % | 90.7 | % | 102.2 | % | 94.2 | % | ||||||||||||||||
Premiums Written
as a % of Total |
5.9 | % | 5.6 | % | 21.3 | % | 21.4 | % | 6.8 | % | 7.1 | % | 34.0 | % | 34.1 | % |
Page 6 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Commercial | Commercial | |||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Workers | Property | Total | ||||||||||||||||||||||||||||||||||||
Multiple Peril | Casualty | Compensation | and Marine | Commercial | ||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||
Net Premiums Written |
$ | 852 | $ | 817 | $ | 1,247 | $ | 1,162 | $ | 662 | $ | 586 | $ | 1,058 | $ | 969 | $ | 3,819 | $ | 3,534 | ||||||||||||||||||||
Decrease (Increase) in
Unearned Premiums |
(4 | ) | 16 | (32 | ) | (18 | ) | (46 | ) | (36 | ) | (45 | ) | (21 | ) | (127 | ) | (59 | ) | |||||||||||||||||||||
Net Premiums Earned |
848 | 833 | 1,215 | 1,144 | 616 | 550 | 1,013 | 948 | 3,692 | 3,475 | ||||||||||||||||||||||||||||||
Net Losses Paid |
479 | 407 | 631 | 584 | 299 | 291 | 548 | 466 | 1,957 | 1,748 | ||||||||||||||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
118 | 94 | 78 | 133 | 117 | 68 | 311 | 43 | 624 | 338 | ||||||||||||||||||||||||||||||
Net Losses Incurred |
597 | 501 | 709 | 717 | 416 | 359 | 859 | 509 | 2,581 | 2,086 | ||||||||||||||||||||||||||||||
Expenses Incurred |
320 | 303 | 353 | 333 | 146 | 141 | 362 | 333 | 1,181 | 1,110 | ||||||||||||||||||||||||||||||
Dividends Incurred |
| | | | 20 | 17 | | | 20 | 17 | ||||||||||||||||||||||||||||||
Statutory Underwriting
Income (Loss) |
$ | (69 | ) | $ | 29 | $ | 153 | $ | 94 | $ | 34 | $ | 33 | $ | (208 | ) | $ | 106 | $ | (90 | ) | $ | 262 | |||||||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||||||||||||||||||
Loss |
70.4 | % | 60.1 | % | 58.4 | % | 62.6 | % | 69.8 | % | 67.3 | % | 84.8 | % | 53.7 | % | 70.3 | % | 60.3 | % | ||||||||||||||||||||
Expense |
37.6 | 37.1 | 28.3 | 28.7 | 22.7 | 24.8 | 34.2 | 34.4 | 31.1 | 31.6 | ||||||||||||||||||||||||||||||
Combined |
108.0 | % | 97.2 | % | 86.7 | % | 91.3 | % | 92.5 | % | 92.1 | % | 119.0 | % | 88.1 | % | 101.4 | % | 91.9 | % | ||||||||||||||||||||
Premiums Written
as a % of Total |
9.7 | % | 9.7 | % | 14.2 | % | 13.9 | % | 7.5 | % | 7.0 | % | 12.0 | % | 11.6 | % | 43.4 | % | 42.2 | % |
Page 7 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Professional | Total | |||||||||||||||||||||||
Liability | Surety | Specialty | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Net Premiums Written |
$ | 1,740 | $ | 1,735 | $ | 244 | $ | 246 | $ | 1,984 | $ | 1,981 | ||||||||||||
Decrease (Increase) in
Unearned Premiums |
95 | 104 | (2 | ) | 8 | 93 | 112 | |||||||||||||||||
Net Premiums Earned |
1,835 | 1,839 | 242 | 254 | 2,077 | 2,093 | ||||||||||||||||||
Net Losses Paid |
1,202 | 1,165 | 25 | 14 | 1,227 | 1,179 | ||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
(115 | ) | (66 | ) | 11 | 3 | (104 | ) | (63 | ) | ||||||||||||||
Net Losses Incurred |
1,087 | 1,099 | 36 | 17 | 1,123 | 1,116 | ||||||||||||||||||
Expenses Incurred |
499 | 482 | 84 | 86 | 583 | 568 | ||||||||||||||||||
Dividends Incurred |
| | 3 | 5 | 3 | 5 | ||||||||||||||||||
Statutory Underwriting
Income (Loss) |
$ | 249 | $ | 258 | $ | 119 | $ | 146 | $ | 368 | $ | 404 | ||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||
Loss |
59.2 | % | 59.7 | % | 15.0 | % | 6.8 | % | 54.2 | % | 53.5 | % | ||||||||||||
Expense |
28.7 | 27.8 | 34.9 | 35.7 | 29.4 | 28.7 | ||||||||||||||||||
Combined |
87.9 | % | 87.5 | % | 49.9 | % | 42.5 | % | 83.6 | % | 82.2 | % | ||||||||||||
Premiums Written
as a % of Total |
19.8 | % | 20.7 | % | 2.8 | % | 2.9 | % | 22.6 | % | 23.6 | % |
Page 8 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Total | Reinsurance | Worldwide | ||||||||||||||||||||||
Insurance | Assumed | Total | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Net Premiums Written |
$ | 8,789 | $ | 8,377 | $ | 4 | $ | 6 | $ | 8,793 | $ | 8,383 | ||||||||||||
Decrease (Increase) in
Unearned Premiums |
(96 | ) | (9 | ) | 2 | 5 | (94 | ) | (4 | ) | ||||||||||||||
Net Premiums Earned |
8,693 | 8,368 | 6 | 11 | 8,699 | 8,379 | ||||||||||||||||||
Net Losses Paid |
4,867 | 4,605 | 71 | 94 | 4,938 | 4,699 | ||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
820 | 321 | (92 | ) | (108 | ) | 728 | 213 | ||||||||||||||||
Net Losses Incurred |
5,687 | 4,926 | (21 | ) | (14 | ) | 5,666 | 4,912 | ||||||||||||||||
Expenses Incurred |
2,789 | 2,611 | 1 | 4 | 2,790 | 2,615 | ||||||||||||||||||
Dividends Incurred |
23 | 22 | | | 23 | 22 | ||||||||||||||||||
Statutory Underwriting
Income |
$ | 194 | $ | 809 | $ | 26 | $ | 21 | 220 | 830 | ||||||||||||||
Increase in Deferred
Acquisition Costs |
70 | 36 | ||||||||||||||||||||||
GAAP Underwriting Income |
$ | 290 | $ | 866 | ||||||||||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||
Loss |
65.6 | % | 59.0 | % | * | % | * | % | 65.3 | % | 58.8 | % | ||||||||||||
Expense |
31.8 | 31.3 | * | * | 31.8 | 31.3 | ||||||||||||||||||
Combined |
97.4 | % | 90.3 | % | * | % | * | % | 97.1 | % | 90.1 | % | ||||||||||||
Premiums Written
as a % of Total |
100.0 | % | 99.9 | % | 0.0 | % | 0.1 | % | 100.0 | % | 100.0 | % |
* | Combined, loss and expense ratios are no longer presented for Reinsurance Assumed since this business is in runoff. |
Page 9 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Outside | ||||||||||||||||||||||||
the | Worldwide | |||||||||||||||||||||||
United States | United States | Total | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Net Premiums Written |
$ | 6,349 | $ | 6,229 | $ | 2,444 | 2,154 | $ | 8,793 | $ | 8,383 | |||||||||||||
Decrease (Increase) in
Unearned Premiums |
(56 | ) | 21 | (38 | ) | (25 | ) | (94 | ) | (4 | ) | |||||||||||||
Net Premiums Earned |
6,293 | 6,250 | 2,406 | 2,129 | 8,699 | 8,379 | ||||||||||||||||||
Net Losses Paid |
3,791 | 3,722 | 1,147 | 977 | 4,938 | 4,699 | ||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
524 | 182 | 204 | 31 | 728 | 213 | ||||||||||||||||||
Net Losses Incurred |
4,315 | 3,904 | 1,351 | 1,008 | 5,666 | 4,912 | ||||||||||||||||||
Expenses Incurred |
1,889 | 1,848 | 901 | 767 | 2,790 | 2,615 | ||||||||||||||||||
Dividends Incurred |
23 | 22 | | | 23 | 22 | ||||||||||||||||||
Statutory Underwriting
Income |
$ | 66 | $ | 476 | $ | 154 | $ | 354 | 220 | 830 | ||||||||||||||
Increase in Deferred
Acquisition Costs |
70 | 36 | ||||||||||||||||||||||
GAAP Underwriting Income |
$ | 290 | $ | 866 | ||||||||||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||
Loss |
68.8 | % | 62.7 | % | 56.2 | % | 47.3 | % | 65.3 | % | 58.8 | % | ||||||||||||
Expense |
29.9 | 29.8 | 36.9 | 35.6 | 31.8 | 31.3 | ||||||||||||||||||
Combined |
98.7 | % | 92.5 | % | 93.1 | % | 82.9 | % | 97.1 | % | 90.1 | % | ||||||||||||
Premiums Written
as a % of Total |
72.2 | % | 74.2 | % | 27.8 | % | 25.8 | % | 100.0 | % | 100.0 | % |
Page 10 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Personal | Other | Total | ||||||||||||||||||||||||||||||
Automobile | Homeowners | Personal | Personal | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
Net Premiums Written |
$ | 174 | $ | 160 | $ | 658 | $ | 631 | $ | 197 | $ | 189 | $ | 1,029 | $ | 980 | ||||||||||||||||
Decrease (Increase) in
Unearned Premiums |
(4 | ) | (6 | ) | (43 | ) | (37 | ) | 5 | 5 | (42 | ) | (38 | ) | ||||||||||||||||||
Net Premiums Earned |
170 | 154 | 615 | 594 | 202 | 194 | 987 | 942 | ||||||||||||||||||||||||
Net Losses Paid |
106 | 90 | 388 | 361 | 101 | 111 | 595 | 562 | ||||||||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
10 | 5 | 182 | (71 | ) | 13 | 3 | 205 | (63 | ) | ||||||||||||||||||||||
Net Losses Incurred |
116 | 95 | 570 | 290 | 114 | 114 | 800 | 499 | ||||||||||||||||||||||||
Expenses Incurred |
54 | 48 | 220 | 203 | 81 | 67 | 355 | 318 | ||||||||||||||||||||||||
Dividends Incurred |
| | | | | | | | ||||||||||||||||||||||||
Statutory Underwriting
Income (Loss) |
$ | | $ | 11 | $ | (175 | ) | $ | 101 | $ | 7 | $ | 13 | $ | (168 | ) | $ | 125 | ||||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||||||||||
Loss |
68.3 | % | 61.7 | % | 92.7 | % | 48.8 | % | 56.5 | % | 58.8 | % | 81.1 | % | 53.0 | % | ||||||||||||||||
Expense |
31.0 | 30.0 | 33.4 | 32.2 | 41.1 | 35.4 | 34.5 | 32.4 | ||||||||||||||||||||||||
Combined |
99.3 | % | 91.7 | % | 126.1 | % | 81.0 | % | 97.6 | % | 94.2 | % | 115.6 | % | 85.4 | % | ||||||||||||||||
Premiums Written
as a % of Total |
6.0 | % | 5.9 | % | 22.9 | % | 23.1 | % | 6.8 | % | 6.9 | % | 35.7 | % | 35.9 | % |
Page 11 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Commercial | Commercial | |||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Workers | Property | Total | ||||||||||||||||||||||||||||||||||||
Multiple Peril | Casualty | Compensation | and Marine | Commercial | ||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||
Net Premiums Written |
$ | 290 | $ | 277 | $ | 392 | $ | 350 | $ | 199 | $ | 177 | $ | 302 | $ | 278 | $ | 1,183 | $ | 1,082 | ||||||||||||||||||||
Decrease (Increase) in
Unearned Premiums |
(9 | ) | | 18 | 31 | 14 | 4 | 43 | 42 | 66 | 77 | |||||||||||||||||||||||||||||
Net Premiums Earned |
281 | 277 | 410 | 381 | 213 | 181 | 345 | 320 | 1,249 | 1,159 | ||||||||||||||||||||||||||||||
Net Losses Paid |
173 | 148 | 198 | 211 | 92 | 90 | 219 | 164 | 682 | 613 | ||||||||||||||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
(6 | ) | (13 | ) | 61 | 33 | 52 | 31 | 63 | (15 | ) | 170 | 36 | |||||||||||||||||||||||||||
Net Losses Incurred |
167 | 135 | 259 | 244 | 144 | 121 | 282 | 149 | 852 | 649 | ||||||||||||||||||||||||||||||
Expenses Incurred |
105 | 99 | 115 | 108 | 48 | 46 | 115 | 102 | 383 | 355 | ||||||||||||||||||||||||||||||
Dividends Incurred |
| | | | 6 | 4 | | | 6 | 4 | ||||||||||||||||||||||||||||||
Statutory Underwriting
Income (Loss) |
$ | 9 | $ | 43 | $ | 36 | $ | 29 | $ | 15 | $ | 10 | $ | (52 | ) | $ | 69 | $ | 8 | $ | 151 | |||||||||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||||||||||||||||||
Loss |
59.4 | % | 48.8 | % | 63.2 | % | 64.0 | % | 69.5 | % | 68.4 | % | 81.7 | % | 46.6 | % | 68.6 | % | 56.2 | % | ||||||||||||||||||||
Expense |
36.2 | 35.7 | 29.3 | 30.9 | 24.9 | 26.6 | 38.1 | 36.7 | 32.5 | 32.9 | ||||||||||||||||||||||||||||||
Combined |
95.6 | % | 84.5 | % | 92.5 | % | 94.9 | % | 94.4 | % | 95.0 | % | 119.8 | % | 83.3 | % | 101.1 | % | 89.1 | % | ||||||||||||||||||||
Premiums Written
as a % of Total |
10.1 | % | 10.1 | % | 13.6 | % | 12.8 | % | 6.9 | % | 6.5 | % | 10.5 | % | 10.2 | % | 41.1 | % | 39.6 | % |
Page 12 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Professional | Total | |||||||||||||||||||||||
Liability | Surety | Specialty | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Net Premiums Written |
$ | 594 | $ | 582 | $ | 71 | $ | 87 | $ | 665 | $ | 669 | ||||||||||||
Decrease (Increase) in
Unearned Premiums |
21 | 25 | 7 | | 28 | 25 | ||||||||||||||||||
Net Premiums Earned |
615 | 607 | 78 | 87 | 693 | 694 | ||||||||||||||||||
Net Losses Paid |
420 | 371 | 10 | 6 | 430 | 377 | ||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
(22 | ) | 4 | 3 | (1 | ) | (19 | ) | 3 | |||||||||||||||
Net Losses Incurred |
398 | 375 | 13 | 5 | 411 | 380 | ||||||||||||||||||
Expenses Incurred |
165 | 160 | 27 | 29 | 192 | 189 | ||||||||||||||||||
Dividends Incurred |
| | 1 | 2 | 1 | 2 | ||||||||||||||||||
Statutory Underwriting
Income (Loss) |
$ | 52 | $ | 72 | $ | 37 | $ | 51 | $ | 89 | $ | 123 | ||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||
Loss |
64.7 | % | 61.8 | % | 16.9 | % | 5.9 | % | 59.4 | % | 54.9 | % | ||||||||||||
Expense |
27.8 | 27.5 | 38.6 | 34.1 | 28.9 | 28.4 | ||||||||||||||||||
Combined |
92.5 | % | 89.3 | % | 55.5 | % | 40.0 | % | 88.3 | % | 83.3 | % | ||||||||||||
Premiums Written
as a % of Total |
20.6 | % | 21.3 | % | 2.5 | % | 3.2 | % | 23.1 | % | 24.5 | % |
Page 13 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Total | Reinsurance | Worldwide | ||||||||||||||||||||||
Insurance | Assumed | Total | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Net Premiums Written |
$ | 2,877 | $ | 2,731 | $ | 2 | $ | 1 | $ | 2,879 | $ | 2,732 | ||||||||||||
Decrease (Increase) in
Unearned Premiums |
52 | 64 | 1 | 2 | 53 | 66 | ||||||||||||||||||
Net Premiums Earned |
2,929 | 2,795 | 3 | 3 | 2,932 | 2,798 | ||||||||||||||||||
Net Losses Paid |
1,707 | 1,552 | 21 | 29 | 1,728 | 1,581 | ||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
356 | (24 | ) | (30 | ) | (35 | ) | 326 | (59 | ) | ||||||||||||||
Net Losses Incurred |
2,063 | 1,528 | (9 | ) | (6 | ) | 2,054 | 1,522 | ||||||||||||||||
Expenses Incurred |
930 | 862 | 1 | 2 | 931 | 864 | ||||||||||||||||||
Dividends Incurred |
7 | 6 | | | 7 | 6 | ||||||||||||||||||
Statutory Underwriting
Income (Loss) |
$ | (71 | ) | $ | 399 | $ | 11 | $ | 7 | (60 | ) | 406 | ||||||||||||
Increase (Decrease) in
Deferred Acquisition Costs |
13 | (7 | ) | |||||||||||||||||||||
GAAP Underwriting Income (Loss) |
$ | (47 | ) | $ | 399 | |||||||||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||
Loss |
70.6 | % | 54.8 | % | * | % | * | % | 70.2 | % | 54.5 | % | ||||||||||||
Expense |
32.4 | 31.6 | * | * | 32.4 | 31.7 | ||||||||||||||||||
Combined |
103.0 | % | 86.4 | % | * | % | * | % | 102.6 | % | 86.2 | % | ||||||||||||
Premiums Written
as a % of Total |
99.9 | % | 100.0 | % | 0.1 | % | 0.0 | % | 100.0 | % | 100.0 | % |
* | Combined, loss and expense ratios are no longer presented for Reinsurance Assumed since this business is in runoff. |
Page 14 of 17
THE CHUBB CORPORATION WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2011 AND 2010
(DOLLARS IN MILLIONS)
Outside | ||||||||||||||||||||||||
the | Worldwide | |||||||||||||||||||||||
United States | United States | Total | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Net Premiums Written |
$ | 2,116 | $ | 2,082 | $ | 763 | $ | 650 | $ | 2,879 | $ | 2,732 | ||||||||||||
Decrease (Increase) in
Unearned Premiums |
(16 | ) | (5 | ) | 69 | 71 | 53 | 66 | ||||||||||||||||
Net Premiums Earned |
2,100 | 2,077 | 832 | 721 | 2,932 | 2,798 | ||||||||||||||||||
Net Losses Paid |
1,363 | 1,256 | 365 | 325 | 1,728 | 1,581 | ||||||||||||||||||
Increase (Decrease) in
Outstanding Losses |
278 | (56 | ) | 48 | (3 | ) | 326 | (59 | ) | |||||||||||||||
Net Losses Incurred |
1,641 | 1,200 | 413 | 322 | 2,054 | 1,522 | ||||||||||||||||||
Expenses Incurred |
628 | 625 | 303 | 239 | 931 | 864 | ||||||||||||||||||
Dividends Incurred |
7 | 6 | | | 7 | 6 | ||||||||||||||||||
Statutory Underwriting
Income (Loss) |
$ | (176 | ) | $ | 246 | $ | 116 | $ | 160 | (60 | ) | 406 | ||||||||||||
Increase (Decrease) in
Deferred Acquisition Costs |
13 | (7 | ) | |||||||||||||||||||||
GAAP Underwriting Income (Loss) |
$ | (47 | ) | $ | 399 | |||||||||||||||||||
Ratios After Dividends
to Policyholders: |
||||||||||||||||||||||||
Loss |
78.4 | % | 57.9 | % | 49.6 | % | 44.7 | % | 70.2 | % | 54.5 | % | ||||||||||||
Expense |
29.8 | 30.1 | 39.7 | 36.8 | 32.4 | 31.7 | ||||||||||||||||||
Combined |
108.2 | % | 88.0 | % | 89.3 | % | 81.5 | % | 102.6 | % | 86.2 | % | ||||||||||||
Premiums Written
as a % of Total |
73.5 | % | 76.2 | % | 26.5 | % | 23.8 | % | 100.0 | % | 100.0 | % |
Page 15 of 17
THE CHUBB CORPORATION
Definitions of Key Terms
Underwriting Income (Loss)
Management evaluates underwriting results separately from investment results. The underwriting
operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and
reinsurance assumed. Performance of the business units is measured based on statutory underwriting results. Statutory
accounting principles applicable to property and casualty insurance companies differ in certain respects from generally
accepted accounting principles (GAAP). Under statutory accounting principles, policy acquisition and other
underwriting expenses are recognized immediately, not at the time premiums are earned. Statutory underwriting income (loss)
is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses
incurred.
Management uses underwriting results determined in accordance with GAAP, among other measures, to
assess the overall performance of the underwriting operations. To convert statutory underwriting results to a GAAP
basis, policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned.
Underwriting income (loss) determined in accordance with GAAP is defined as premiums earned less losses and loss expenses
incurred and GAAP underwriting expenses incurred.
Property and Casualty Investment Income After Income Tax
Management uses property and casualty investment income after income tax, a non-GAAP financial
measure, to evaluate its investment performance because it reflects the impact of any change in the proportion of the
investment portfolio invested in tax exempt securities and is therefore more meaningful for analysis purposes than
investment income before income taxes.
Book Value per Common Share with Available-for-Sale Fixed Maturities at Amortized Cost
Book value per common share represents the portion of consolidated shareholders equity
attributable to one share of common stock outstanding as of the balance sheet date. Consolidated shareholders equity
includes, as part of accumulated other comprehensive income (loss), the after-tax appreciation or depreciation, including
unrealized other-than-temporary impairment losses, of the Corporations available-for-sale fixed maturities, which are carried at
fair value. The appreciation or depreciation of available-for-sale fixed maturities is subject to fluctuation due
to changes in interest rates and therefore could distort the analysis of trends. Management believes that book value per
common share with available-for-sale fixed maturities at amortized cost, a non-GAAP financial measure, is an
important measure of the underlying equity attributable to one share of common stock.
Combined Loss and Expense Ratio or Combined Ratio
The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting
profitability. Management uses the combined loss and expense ratio calculated in accordance with statutory
accounting principles applicable to property and casualty insurance companies to evaluate the performance of the
underwriting operations. It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the
ratio of statutory underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by
dividends to policyholders.
Page 16 of 17
THE CHUBB CORPORATION
Definitions of Key Terms
Operating Income
Operating income, a non-GAAP financial measure, is net income excluding after-tax realized
investment gains and losses. Management uses operating income, among other measures, to evaluate its performance
because the realization of investment gains and losses in any given period is largely discretionary as to timing and can
fluctuate significantly, which could distort the analysis of trends.
Return on Equity and Operating Return on Equity
Return on equity is the ratio of annualized net income divided by average shareholders equity.
Average shareholders equity is the average of the beginning and all quarter-end balances within the period.
Operating return on equity, a non-GAAP measure, is the ratio of annualized operating income
divided by average shareholders equity excluding the after-tax unrealized appreciation or depreciation of
investments. Consolidated shareholders equity includes, as part of accumulated other comprehensive income (loss), the
after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporations
available-for-sale fixed maturities and equity securities, which are carried at fair value. The appreciation or
depreciation of available-for-sale fixed maturities and equity securities is subject to fluctuation and could
distort the analysis of trends. Average shareholders equity excluding the after-tax unrealized appreciation or
depreciation of investments is the average of the beginning and all quarter-end balances within the period. Management uses
operating return on equity, among other measures, to assess the overall performance of the Corporation.
Periods Ended September 30 | ||||||||||||||||
Third Quarter | Nine Months | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(dollars in millions) | ||||||||||||||||
Annualized Net Income |
$ | 1,192 | $ | 2,288 | $ | 1,635 | $ | 2,072 | ||||||||
Average Shareholders Equity |
$ | 15,715 | $ | 15,756 | $ | 15,635 | $ | 15,722 | ||||||||
Return on Equity |
7.6 | % | 14.5 | % | 10.5 | % | 13.2 | % | ||||||||
Annualized Operating Income |
$ | 1,008 | $ | 2,148 | $ | 1,375 | $ | 1,837 | ||||||||
Average Shareholders Equity Excluding Unrealized Appreciation or
Depreciation |
$ | 14,296 | $ | 14,315 | $ | 14,379 | $ | 14,452 | ||||||||
Operating Return on Equity |
7.1 | % | 15.0 | % | 9.6 | % | 12.7 | % |
Page 17 of 17