annual review 2008...the chubb corporation annual review 2008 2008 ar text_draft._gac2.26:layout 1...

The Chubb CorporationAnnual Review 2008

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About ChubbIn 1882, Thomas Caldecot Chubb and his son Percy

opened a marine underwriting business in the seaport district ofNew York City. The Chubbs were adept at turning risk transferinto business success, often by helping policyholders preventlosses before they occurred. Chubb also established strongrelationships with the insurance agents and brokers who placedtheir clients’ business with Chubb underwriters.

“Never compromise integrity,” a Chubb slogan, captures the spirit of ourcompany. Each of our 10,400 employees in North America, South America, Europe,Asia and Australia works toward the goal of satisfying customers by bringingprofessional excellence and fairness to each transaction.

Today, Chubb stands among the largest property and casualty insurers in theworld. The principles of financial strength, proficient underwriting, conservativeinvestment and excellent service, executed by our market-leading employees, havebeen the mainstays of our organization for 126 years.

On the CoverSunrise at The Nature Conservancy’s Blowing Rocks Preserve,Jupiter Island, Florida

Featured on our cover this year is The Nature Conservancy, a Chubb customersince 1982. Ray M. Culter, Vice President and Director of Business Operations forthe Conservancy, is shown at Blowing Rocks Preserve in Jupiter Island, Florida, abarrier island sanctuary that shields a variety of natural habitats — includingbeach dune, coastal strand and mangrove wetlands. It is one of the many ecologicallyimportant sites in 33 countries protected by the Conservancy, a global conservationorganization whose one million members are dedicated to the preservation of plants,animals and natural communities.

The Conservancy has relied on Chubb to understand the risks associatedwith its conservation activity and to help the organization develop loss mitigationprograms that respond to those risks. “The Nature Conservancy is in the businessof protecting the natural systems that sustain life on Earth,” says Culter. “TheConservancy focuses on tangible, lasting, on-the-ground conservation results. Chubbhas provided important risk management services to help our organization advanceits charitable mission.”

NoteSome of the statements in this review may be considered forward-looking

statements as defined in the Private Securities Litigation Reform Act of1995 (PSLRA). These forward-looking statements are made pursuant to the safe harborprovisions of the PSLRA and include statements regarding the impact of the economicdownturn on insurance exposures and our investment portfolio; our exposure to claimsarising out of the crisis in financial markets; the impact of currency fluctuations; theproperty and casualty insurance market environment, rates, pricing and new businessopportunities; and our ability to succeed in a variety of market conditions. Suchstatements speak only as of the date of the review and are not guarantees of futureperformance. Various risks and uncertainties may cause actual results to differmaterially. These risks and uncertainties include those discussed in the filings wemake with the Securities and Exchange Commission. We assume no obligation toupdate such forward-looking statements.

��This review discusses operating income, which is a “non-GAAP financial

measure” (as defined by the Securities and Exchange Commission). For additionalinformation regarding this non-GAAP financial measure, please refer to the insideback cover of this review.

The Chubb Corporation

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I am happy to report that Chubb effectively navigated the most

turbulent global financial markets experienced since the Depression,

achieving 2008 results that were the third-best in the corporation’s history.

Net income was $1.8 billion or $4.92 per share, compared with $2.8

billion or $7.01 per share in 2007, which was our best year ever.

Operating income, which we define as net income excluding realized

investment gains and losses, was $2.0 billion or $5.58 per share in 2008,

compared to $2.6 billion or $6.41 per share in 2007.

Despite the considerable challenges presented by the financial

markets, we were able to achieve earnings of this magnitude because we

CEO Report

John D. FinneganChairman, President and Chief Executive Officer

Net Income per Share

$5.98

$4.01

2003 2004 2005 2006 2007 2008

$4.47

$7.01

$4.92

$2.23

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adhered to a set of operating principles that have stood the test of time:

underwrite with discipline, invest conservatively, maintain financial

strength and motivate employees to perform at the highest possible level.

Underwriting Discipline

Chubb has always believed in the need to earn an underwriting profit

rather than rely on returns on our investment portfolio to cover under-

writing losses. Accordingly, we insure niche segments that we know, and

if we cannot get the right price for the risk we have been asked to assume,

we will not write the business. This discipline not only served us well in

2008, but also has allowed us to perform consistently well in the face of

soft market realities. Over the past four years, intense competition and

excess insurer capital have caused rates for many commercial and

specialty lines to decline, resulting in lower premiums and shrinking

margins as claim costs have continued to escalate. This was compounded

in 2008 by the worldwide recessionary decline in economic activity,

payrolls and property values, which put further downward pressure on

both insurable exposures and rates, as competitors scrambled to retain

their accounts and win a slice of the smaller pie of available new business.

Although 2008 underwriting income pre-tax decreased to

$1.4 billion due to the cumulative effect of four years of declining rates

and heavy catastrophe losses in 2008, it was the third-best underwriting

profit in our history. Net written premiums in 2008 decreased only 1% to

$11.8 billion. Our combined loss and expense ratio in 2008 was 88.7%,

compared to 82.9% in 2007. Catastrophe losses, including those

attributable to Hurricane Ike, accounted for 5.1 percentage points of

the combined ratio in 2008. In 2007, catastrophe losses accounted for

3.0 points. Excluding the impact of catastrophes, the combined ratio was

83.6% in 2008 and 79.9% in 2007. We succeeded in keeping our expense

ratio essentially flat: 30.2% in 2008 and 30.1% in 2007.

Moreover, each of Chubb’s business units achieved a substantial

underwriting profit. Chubb Personal Insurance (CPI) net written premiums

grew 3% to $3.8 billion, and the combined ratio was 87.1%, including

5.4 percentage points of catastrophes. CPI includes insurance for homes,

2

Combined Loss &Expense RatioPercentage of premium dollarsspent on claims and expenses

82%

84%

88%

86%

92%

90%

98%

96%

94%

100%

92.3% 92.3%

2003 2004 2005 2006 2007 2008

82.9%

88.7%

84.2%

98.0%

Chubb has always believed

in the need to earn an

underwriting profit rather

than rely on returns on our

investment portfolio to

cover underwriting losses.

Accordingly, we insure niche

segments that we know, and

if we cannot get the right

price for the risk we have been

asked to assume, we will not

write the business.

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cars, yachts, jewelry, fine arts, antiques and excess personal liability, as

well as group accident insurance.

Chubb Commercial Insurance (CCI) net written premiums

declined 2% to $5.0 billion, and the combined ratio was 93.9%, including

8.1 percentage points of catastrophe losses. CCI includes commercial

property, liability, marine and workers’ compensation insurance.

Chubb Specialty Insurance (CSI) net written premiums declined

2% in 2008 to $2.9 billion, and the combined ratio was 83.3%. CSI

includes such professional liability lines as directors & officers, errors

& omissions, employment practices liability, fiduciary, fidelity and crime

insurance, as well as surety lines.

Conservative Investment Portfolio

Net income for 2008 reflected net realized investment losses,

including impairments, of $371 million before tax or $0.66 per share

after-tax. In 2007, net income included net realized investment gains

of $374 million before tax or $0.60 per share after-tax.

Given the unprecedented decline in asset values worldwide, the

modest size of our 2008 investment losses relative to our $39 billion

investment portfolio is a tribute to the successful execution of Chubb’s

conservative investment philosophy, which eschews excessive risk.

Our investment portfolio has zero direct exposure to subprime mortgage-

backed securities or derivative products such as collateralized debt

obligations or collateralized loan obligations. The quest for higher

investment income through investments in such securities resulted in very

substantial losses for several other insurers as well as many commercial

and investment banks.

Financial Strength

Chubb has always been differentiated by our unparalleled claim

service, superior coverages and seamless global reach. Perhaps more than

ever, we are also differentiated by our financial strength, which we will not

jeopardize by engaging in risky strategies to reach for higher premium

growth and investment returns. As a result of our balance sheet strength,

prudent reserving policy, underwriting discipline and conservative

3

Shareholders’ Equity(in billions)

$13.9$14.4

$13.4

$10.1

2003 2004 2005 2006 2007 2008

$12.4

$8.5

John J. Degnan, Vice Chairmanand Chief Operating Officer


investment portfolio, we enjoy excellent ratings from all the major rating

agencies. We are in the business of assuming risk, but we do so prudently.

It was this conservative mindset that guided our fortunate decision in early

2003 to exit the credit default swap business. An insurance policy is a

promise to pay, and we take our promises seriously — which is why we

guard our financial strength so zealously.

We anticipate that some policyholders who are concerned about

their insurance carrier's financial strength will switch to Chubb even if

the price of being insured by a carrier with a solid balance sheet might

be a higher rate. This should be particularly evident in the high-net-worth

homeowners market as well as the credit-sensitive excess casualty, profes-

sional liability and commercial real estate markets. People want to know

that their insurer will be around to pay their claim.

Quality Workforce

Chubb’s people, already the best in the industry, are energized by

our standout performance in 2008 and determined to propel us to new

heights. In addition to completing a number of successful projects aimed

at reducing costs, our people participated in an innovation initiative

designed to generate new ideas for premium growth and service

enhancements. The response from Chubb locations worldwide exceeded

4

Chubb has always been

differentiated by our

unparalleled claim service,

superior coverages and

seamless global reach.

Perhaps more than ever,

we are also differentiated

by our financial strength.

15

30

45

60

2008200720062005200420032002$15.00

$30.00

$45.00

$60.00

$26.10

$19.93

$51.00Market Value per Share

$38.13

Book Value per Share

2002 2003 2004 2005 2006 2007 2008

December 31

Book Value and Market Value per Share


all expectations. Nearly 4,000 of our 10,400 employees logged on to the

special website created for this program, with nearly 1,500 submitting or

collaborating on more than 600 ideas for new products, distribution or

sales methods, services and customer segments. We are currently

implementing the best ideas, and we are planning future idea-generating

events to help improve all aspects of our operations.

Chubb continues to benefit from a consistently strong bench of in-

house talent that is complemented by our ability to recruit the best talent

from outside the company. This was demonstrated during 2008, when we

had some changes in our senior management team. Tom Motamed, our

Chief Operating Officer, left Chubb to become CEO of another insurer.

He was succeeded as COO by Vice Chairman John Degnan. At the same

time, we promoted three seasoned Chubb Executive Vice Presidents:

Paul Krump, Chief Underwriting Officer; Harold Morrison, Chief Global

Field Officer; and Dino Robusto, Chief Administrative Officer. At the

end of 2008, Mike O’Reilly, our Chief Financial Officer, retired after a

distinguished 39-year career at Chubb. He was succeeded by Ricky Spiro,

a veteran investment banker who headed the insurance practice at leading

Wall Street firms.

5

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

$24,000

Chubb$22,364

S&P 500$11,521S&P P&C$11,115

2002 2003 2004 2005 2006 2007 2008December 31

Value of $10,000 invested on December 31, 2002 in Chubb common stock, S&P 500 Index andS&P Property & Casualty Index, including share price appreciation and reinvested dividends.Past results are no guarantee of future returns.

Total Return

Michael O’Reilly, Vice Chairmanand Chief Financial Officer, retired atthe end of 2008 after a distinguished39-year career at Chubb.


Outperforming the Market

We are grateful that our shareholders were spared the severe decline

in market values that befell so much of our industry and the overall stock

market. We are never happy to report negative shareholder returns, and

Chubb’s total shareholder return for the year, including stock price

fluctuation and reinvested dividends, was a negative 4%. However, in

2008 we far outperformed the Standard & Poor’s Property & Casualty

Insurance Index, which returned a negative 29%, and the S&P 500 Index,

which was down a staggering 37%.

Chubb Executive Vice Presidentsare pictured below (from left):Paul J. Krump, Chief UnderwritingOfficer; Dino E. Robusto, ChiefAdministrative Officer; Harold L.Morrison, Jr., Chief Global Field Officer;Richard G. Spiro, Chief Financial Officer;Marjorie D. Raines, Co-Chief InvestmentOfficer; Ned I. Gerstman, Co-ChiefInvestment Officer; Robert C. Cox, ChiefOperating Officer, Chubb SpecialtyInsurance; Janice M. Tomlinson,International Field Operations Manager;Andrew A. McElwee, Jr., Chief OperatingOfficer, Chubb Personal Insurance;Maureen A. Brundage, General Counsel;Sunita Holzer, Worldwide HumanResources Officer; James P. Knight,Global Chief Information Officer.

6


Outlook for 2009

Since the beginning of 2009, the recession has deepened, and this

will adversely affect insurable exposures. The market values of virtually

all asset classes have continued their decline, and this will put pressure

on our investments. Moreover, the strengthening of the U.S. dollar will

have the effect of reducing net written premium growth, since more than

20% of our premiums are written outside the U.S.

With respect to claims from the current crisis in financial markets,

we are reserving prudently for our own anticipated losses from such

7

In 2008 we far outperformed

the Standard & Poor’s

Property & Casualty

Insurance Index and the

S&P 500 Index.


8

claims, which we expect will be mitigated by our underwriting initiatives in

recent years, including the move to reduce limits and to decrease our

exposure to large financial institutions and mortgage brokers.

A number of other developments give us good cause for optimism:

• We have begun to see a flow of new business opportunities arising from

the weakened financial condition of some of our competitors.

• The industry’s shrunken capital from investment losses should be a

catalyst for rate improvements.

• Heavy catastrophe losses in 2008 should push up prices for both

commercial and residential property coverage in catastrophe-prone

areas.

• The industry’s losses from claims related to the crisis in the financial

markets have already driven up rates for professional liability insurance

and should spread to other lines as well.

• The smaller rate declines that we saw in the fourth quarter of 2008

might be an indication that the soft market is ending.

Although the extent to which these trends will impact earnings in the

near term is uncertain, we are confident that our people’s expertise, guided

by our core values, will enable us to succeed in a variety of economic

conditions. Our capital position, strong credit ratings, reputation for claim

service and focus on niche markets should enable us to leverage our

demonstrated underwriting talent to generate solid returns even in an

uncertain market.

I would like to thank all of our employees for a job well done in

2008 and extend my thanks as well to our customers, agents, brokers and

shareholders for your encouragement and support.

John D. FinneganChairman, President and Chief Executive OfficerFebruary 26, 2009

Our capital position, strong

credit ratings, reputation

for claim service and focus

on niche markets should

enable us to leverage our

demonstrated underwriting

talent to generate solid

returns even in an uncertain

market.


Seamless Global Service

UNITED STATES

Eastern TerritoryAtlanta RegionAtlanta, GANashville, TN

Boston RegionBoston, MANew Haven, CTPortsmouth, NHSimsbury, CT

New Jersey RegionNJ RetailNew York, NYWhitehouse Station, NJ

Philadelphia RegionHarrisburg, PAPhiladelphia, PAPittsburgh, PA

Tampa RegionBirmingham, ALJackson, MSMaitland, FLSunrise, FLTampa, FL

Washington, DCRegionBaltimore, MDCharlotte, NCChesapeake, VAColumbia, SCRaleigh, NCRichmond, VAWashington, DC

Westchester RegionAlbany, NYLong Island, NYRochester, NYWestchester, NY

Western TerritoryChicago RegionChicago, ILGrand Rapids, MIItasca, ILMilwaukee, WITroy, MI

Cincinnati RegionCincinnati, OHCleveland, OHColumbus, OHIndianapolis, INLouisville, KY

Dallas RegionAustin, TXDallas, TXHouston, TXTulsa, OK

Denver RegionDenver, COPhoenix, AZPortland, ORSeattle, WA

Los Angeles RegionLos Angeles, CANewport Beach, CAPleasanton, CASan Diego, CASan Francisco, CA

Minneapolis RegionDes Moines, IAKansas City, MOMinneapolis, MNSt. Louis, MO

CANADACalgary, ABMontréal, QCToronto, ONVancouver, BC

BERMUDAHamilton

LATIN AMERICAArgentinaBuenos Aires

BrazilBelo HorizonteBrasiliaCuritibaPorto AlegreRio de JaneiroSão Paulo

ChileSantiago

ColombiaBarranquillaBogotáCaliMedellín

MéxicoGuadalajaraMéxico CityMonterrey

EUROPEAustriaVienna

BelgiumBrussels

DenmarkCopenhagen

FranceBordeauxLilleLyonParis

GermanyDüsseldorfHamburgMunich

IrelandDublin

ItalyMilan

NetherlandsAmsterdam

SpainBarcelonaMadrid

SwedenStockholm

SwitzerlandZurich

United KingdomBelfastBirminghamGlasgowLeedsLondonManchesterReading

ASIA/PACIFICAustraliaBrisbaneMelbournePerthSydney

ChinaBeijingHong KongShanghai

JapanTokyo

KoreaSeoul

SingaporeTaiwanTaipei

ThailandBangkok

Worldwide Headquarters: Warren, NJ

9


10

OfficersChairman andChief Executive OfficerJohn D. Finnegan

President andChief Operating OfficerJohn J. Degnan

Executive Vice President andChief Underwriting OfficerPaul J. Krump

Executive Vice President andChief Global Field OfficerHarold L. Morrison, Jr.

Executive Vice President andChief Administrative OfficerDino E. Robusto

Executive Vice PresidentsRobert C. CoxSunita HolzerJames P. KnightAndrew A. McElwee, Jr.Richard G. SpiroJanice M. Tomlinson

Executive Vice President andGeneral CounselMaureen A. Brundage

Administrative CommitteeW. Brian BarnesMaureen A. BrundageRichard A. CiulloRobert C. CoxJohn J. DegnanJohn D. FinneganMark E. GreenbergSunita HolzerJohn J. KennedyJames P. KnightPaul J. KrumpAndrew A. McElwee, Jr.Harold L. MorrisonDino E. RobustoRichard G. SpiroJanice M. Tomlinson

Senior Vice PresidentsDerek AdamsJames E. AltmanJoel D. AronchickWilliam D. ArrighiGregory P. BarabasDonald E. BarbJohn A. BarrettMark L. BerthiaumeJon C. BidwellPeter G. BoccherJulia T. BolandJames P. BronnerTimothy D. BuckleyGerard M. ButlerJohn F. CasellaMichael J. CasellaMichael A. ChangRichard A. CiulloGardner R. Cunningham, Jr.Robert F. DaddDavid S. DaltonJames A. DarlingGary R. DelongKathleen M. Dubia

Mark D. DugleAlexis R. Durcan, Jr.Mary M. ElliottTimothy T. EllisKathleen S. EllisMichele N. FincherPhilip W. FiscusThomas V. FitzpatrickPhilip G. FolzPaul W. FranklinAnthony S. GalbanThomas J. GanterJames E. GardnerJohn C. Gibson, Jr.Christopher J. GilesBaxter W. GrahamJeffrey S. GrangeRick A. GrayMark E. GreenbergDonna M. GriffinCharles S. GunterMarc R. HacheyJames R. HamiltonLorraine C. HeinenSteven D. HernandezJeffrey HoffmanKevin G. HoganKim D. HogrefePatricia A. HurleyGerald A. IppolitoMark S. JamesHope JarvisDoris M. JohnsonBettina F. KellyJohn J. KennedyCaroline KingMark P. KorsgaardEric T. KrantzUlli KrellAndrew N. LaGraveneseJames V. LalorKathleen S. LangnerPaul A. LarsonKevin J. LeidwingerPaul L. LewisRobert A. LippertBeverly J. LuehsAmelia C. LynchMichael J. MaloneyMichael L. MarinaroKathleen P. MarvelDavid P. Mc KeonMichelle D. MiddletonRobert P. MidwoodJeffrey J. MillerJohn J. MizziEllen J. MooreFrank MorelliDee A. NunleyFrances D. O'BrienMoses I. OjeisekhobaKelly P. O’LearyMichael W. O’MalleyMichael D. OppeRolando A. OramaDaniel A. PaciccoNancy D. Pate-NelsonJane M. PetersonGary C. PetrosinoSteven R. PozziEdward J. RadzinskiBarbara RingChristoph C. RittersonEric M. RiveraJames C. Romanelli

Evan J. RosenbergJudith A. SammarcoEric D. SchallTimothy M. ShannahanRichard I. SimonMichael A. SlorKevin G. SmithGail W. SojaRichard P. SojaJody E. SpechtEdward G. SpellScott R. SpencerKurt R. StemmlerKenneth J. StephensJohn M. SwordsTimothy J. SzerlongJoel M. TealerClifton E. ThomasBruce W. ThorneKathleen M. TierneyJoel S. TownsendGary TrustPeter J. TuckerWilliam P. TullyWilliam C. Turnbull, Jr.Michele E. TwymanJeffrey A. UpdykeSusan M. VellaPeter H. Vogt, IICharles J. WalkonisSusan C. WaltermireCarole J. WeberJames L. WestJeremy N.R. Winter

Senior Vice President andChief ActuaryW. Brian Barnes

Senior Vice Presidents andActuariesPeter V. BurchettLinda M. GrohRobert J. HopperAdrienne B. KaneMichael F. McManusKeith R. Spalding

Senior Vice President andDeputy General CounselJudith A. Heim

Senior Vice Presidents andAssociate General CounselsMatthew CampbellKirk J. RaslowskyLinda F. Walker

Senior Vice President andCoverage CounselLouis Nagy

Senior Vice President andTreasurerDouglas A. Nordstrom

Vice PresidentsJames R. AbercrombieJill A. AbereWilliam M. AdamsMichael K. AdkinsElizabeth A. AguinagaJames D. AlbertsonBrenda I. AlbiarNicky J. Alexander

George N. AllportAngela W. AlperMary S. AquinoMichael ArcuriRonald J. ArigoBrendan ArnottDorothy M. BadgerSybil O. BaffoeKirk O. BaileyGregory W. BangsAchiles I. BarbatsoulisDavid A. BarclayFrances M. BarfootCynthia L. BarkmanRichard W. BarnettWilliam E. Barr, Jr.David BaumanArthur J. BeaverWilliam R. Bell, IIIDonna A. BelvedereR. Kerry BesniaDavid H. BissellStanley V. BloomJulie BondOdette M. BonvouloirDaniel J. BosoldDennis L. Bostedo, Jr.Jeffrey M. BrownJeff H. BrundrettJohn E. Bryer, IIIJohn A. Burkhart, IIIJames D. ButchartSabine B. CainWalter K. CainRonald CalavanoAlan M. CarlsonJames M. CarsonJohn C. CavanaughLyria CharlesBarnes L. ChatelainKenneth ChungThomas C. ClansenLaura B. ClarkFrank L. ClaybrooksArthur W. CohenRichard N. ConsoliBrian B. CottoneMonika H. CoxEdwin E. CreterRaymond L. Crisci, Jr.William S. CrowleyTimothy E. DadikChristine A. DartMichael D. DaughertyMark W. DavisJanet DecostroDavid S. DeetsCarol A. DeFranceJudith A. DelarosaJoseph F. DeluccoPhillip C. DemmelSusan DeVries AmelangJoanne C. DiamondDebra A. DikenJames S. DobsonCatherine A. DonahueBrian J. DouglasWendy J. DowdAlfred C. DrowneKeith M. DunfordLeslie L. EdsallRichard J. EdsallPatricia J. EgglestonTimothy G. EhrhartJames P. Ekdahl

Robert C. Ellis, Jr.Victoria S. EspositoHeather S. EvansCraig M. FarinaTimothy J. FarrThomas J. FazioMichael FeighanDrew A. FeldmanAmy L. FellerKaren E. FeuerhermJeffrey B. FischerJames A. FiskeBrian J. FlynnPeter A. FlynnJill A. FrancisJohn B. FuossFrederick W. GaertnerEileen L. GallagherTrevor S. GandyDonald M. Garvey, Jr.Mark D. GatliffIrene T. GaughanPatrick GerrityNed I. GerstmanRalph GiordanoKaren R. GladdenChristine GomesEugene B. GoodridgeFrank F. GoudsmitPerry S. GranofCraig M. GrantKevin J. GuinanPatricia L. HallNancy Halpin-BirknerRobert A. HamburgerNoel P. HannonRichard W. HaranPatricia F. HarrisPeter J. HarrisonWilliam R. HarrisonGary L. HeardMichael W. HeembrockLynne J. HeidelbachRandolph L. HeinRaymond HendricksonRichard D. HesselmanFrederick P. HessenthalerSteven M. HillDebra Ann HochronPamela D. HoffmanEdward I. HowardThomas B. HowlandJoaquin O. HoyosAnthony IovineRobert A. IskolsMichael E. JacksonSteven JakubowskiJohn M. JeffreyColleen A. JenningsBradley M. JohnLatrell JohnsonKenneth C. JonesLisa M. JonesJohn J. Juarez, Jr.John P. KaasCeline E. KacmarekArvind KapoorDennis C. KearnsJames R. KebbekusRobert G. KellyTimothy J. KellyAmy F. KendallThomas R. KerrElsbeth KirkpatrickJeffrey Kneeshaw

Cille KochJoseph M. KorkuchDieter W. KorteKathleen W. KoufacosJoseph E. KozlowskiEdgar KroezeRalph La CannaAnne La FontaineBarbara J. LangioneTerri L. LathanMary M. LeahyJames W. LenzKelly LewisFrederick W. LobdellMark A. LockeDonna M. LombardiMatthew E. LubinRichard P. LuongoJohn W. LuthringerRobert LynchDavid E. MackMichael G. ManginiLeona E. MantieKeith D. MarksJohn C. MarquesPatricia S. MartzBrian MatesEileen G. MathewsRichard D. MaukAnthony McCullerElizabeth McDaidSandra K. Mc DanielPreston McGowanPenny L. McGuireMonique L. McKeonMichelle McLaughlinEdward J. McLoughlin, Jr.Neil W. McPhersonRobert MeolaAllison W. MetaScott D. MeyersAnn M. Minzner ConleyJoseph D. MiskellAndrea M. MollicaGregory E. MonroeTerry D. MontgomeryMichael K. MooneyPaul N. MorrissetteRichard P. MunsonPatrick P. MurphyGerald MyersJeffery A. NeighborsRuth T. NelsonJennifer K. NewsomCatherine J. NikodenDaniel NoceraDavid B. Norris, Jr.Nancy A. O’DonnellStephen S. OhThomas P. OlsonJohn A. O’MaraJohn S. OsabenMark C. PaccioneCatherine M. PadalinoPeter PalermoMichael PalumboChristopher ParkerMary ParzychLouise T. PatregnaniJonathan L. PensaJoanna B. PerronAudrey L. PetersenJeffrey PetersonIrene D. PetilloMichael S. Phillips

Chubb & Son, a division of Federal Insurance Company

OfficersChairman, President andChief Executive OfficerJohn D. Finnegan

Lead DirectorJoel J. Cohen

Vice Chairman andChief Operating OfficerJohn J. Degnan

Executive Vice PresidentNed I. Gerstman

Executive Vice President andChief Financial OfficerRichard G. Spiro

Executive Vice President andGeneral CounselMaureen A. Brundage

Senior Vice PresidentsDaniel J. ConwayFrederick W. GaertnerPaul R. GeyerMark E. GreenbergAndrew A. McElwee, Jr.

Glenn A. MontgomerySteven M. VersaggiRobert M. Witkoff

Senior Vice President andChief Accounting OfficerJohn J. Kennedy

Vice PresidentsStephen A. FullerThomas J. GanterMarc R. HacheySunita HolzerMarylu KorkuchThomas J. Swartz, IIIThomas J. Walsh, Jr.

Vice President, CorporateCounsel and SecretaryW. Andrew Macan

Vice President and TreasurerDouglas A. Nordstrom



00

OfficersMary Beth PittingerKristen E. PoplarRobert J. PriceRamona D. PringleScott F. PringleJennifer L. ProceJames H. ProferesWilliam J. PuleoDavid L. PychMarlin J. QuickRobert S. RaffertyRichard D. ReedRichard P. ReedRobert ReedyWalead A. RefaiMichael K. Reicher, IIJames L. RhynerMerrily RiesebeckGary V. RispoliNicholas RizziMark J. Robinson

Anne RoccoEdward F. RochfordThomas J. RoesselJorge A. RosasJune A. RoseVictoria S. RossettiJeffrey W. RyanRuth M. RyanCarolyn M. SalapaBarbara N. SandelandsFranklin D. Sanders, Jr.Melissa P. SchefflerRobert F. SchmidMichael A. SchraerRobert D. SchuckRussell J. SchurenMark L. SchusselRoma K. SeudatMary T. SheridanLeigh A. ShermanKristine A. Shields

Anthony W. ShineDonald L. Siegrist, Jr.Jason SkrantPatricia S. SmithScott E. SmithT. Clarke Smith, IIIRichard E. SoleauVeronica SomarribaVictor J. SordilloChristine M. StaronLloyd J. StoikBeth A. StrappDorit D. StrausJacquelyn C. StrobelRobert D. StroupPatrick F. SullivanScott B. TellerJames S. ThieringerJonathan ThomasCharles E. Thompson

Eric W. ThompsonPeter J. ThompsonJohn J. TomaineDionysia G. ToregasRichard E. TowleJ. Tracy TuckerRoy C. Tyson, IIIRichard L. UghettaPaula C. UmreikoJ. Scott UsiltonLouise E. ValleeLouise Van DyckNivaldo VenturiniBennett C. VernieroTracey A. VispoliJohn T. VolanskiKevin M. WaldronChristine WartellaWalter B. WashingtonMaureen B. Waterbury

Ryan L. WatsonGregory WellsJanece E. WhiteDavid B. WilliamsGrenes Eugene WilliamsMichael A. WilliamsOwen E. WilliamsSuzanne L. WittBarbara A. WittickBert Wolff, Jr.Archyne S. WoodardGary C. WoodringSteven YacikJeffrey B. YaoRegina YorkJack S. ZachariasStephen J. ZappasCynthia ZegelYelena ZeltserDominick Zenzola

Vice President and SecretaryW. Andrew Macan

Vice Presidents andActuariesJason R. AbramsJoseph E. FreedmanScott E. HenckHye-Sook KangKevin A. KesbyShu C. LinKraig P. Peterson

Vice Presidents andAssociate CounselsGail ArkinJames W. GunsonJames SharkeyWendy TaylorRobert F. Tuohy

Chubb & Son, a division of Federal Insurance Company (continued)

OfficersChairman, President, ChiefExecutive Officer and ChiefOperating OfficerJohn J. Degnan

Senior Vice President andChief Underwriting OfficerPaul J. Krump

Senior Vice President andChief Global Field OfficerHarold L. Morrison, Jr.

Senior Vice President andChief Financial OfficerRichard G. Spiro

Senior Vice President andChief Administrative OfficerDino E. Robusto

Senior Vice President andGeneral CounselMaureen A. Brundage

Senior Vice PresidentsBrendon R. AllanStephen BlasinaStanley V. BloomPaul ChapmanMichael CollinsIan CookAndre DallaireChristopher J. GilesChristopher Hamilton

Mark T. LingafelterFrederick W. LobdellKevin O’ShielGary C. PetrosinoDoreen Yip

Vice PresidentsJames E. AltmanPaul BaldacchinoKemsley BrennanRoger C.P. BrookhouseMichael J. CasellaAmy ChaiStephen Ming Sum ChanBay Hon ChinRichard A. CiulloWilliam C. ClarksonAnn Maree Cook

Stephen De GruchyMario DelrossoGregory D. DoddsJonathan DohertyMatthew T. DoquileFrederick W. GaertnerShasi GangadharanThomas J. GanterNed I. GerstmanPaul R. GeyerAndrew R. GourleyBaxter W. GrahamRick A. GrayJason HowardGeorge X.Z. HuangKaren A. HumphreysJohn J. KennedyMah Swee Keong

James E. KernsHelen KoustasChristopher R. LeesIrene LiangAmelia C. LynchDermot McComiskeyDavid P. Mc KeonGlenn A. MontgomeryDavid B. Norris, Jr.Rolando A. OramaSteven J. OrdEmma OsborneMatthew PasterfieldJorge A. RosasFrancis RowAndrew RussellLeo A. SchmidtJohn X. Stabelos

Kevin M. StevensLeo TakagiJik C. TayJanice M. TomlinsonSteven M. VersaggiKyle WilliamsRobert M. WitkoffEsther WongKiyoshi Yamamoto

Vice President and ActuaryW. Brian Barnes

Vice President and SecretaryW. Andrew Macan

Vice President and TreasurerDouglas A. Nordstrom

Federal Insurance Company

OfficersChairmanJanice M. Tomlinson

President andChief Executive OfficerEllen J. Moore

Senior Vice President,General Counsel andSecretaryJohn F. Cairns

Senior Vice PresidentsJean BertrandNicole Brouillard

Giovanni DamianoPatricia EwenPaul N. MorrissetteAndrew SteenSusan WattsDavid B. Williams

Vice PresidentsBarry BlackburnLeeAnn BoydDale ChowPaul JohnstoneGale LewisMary MaloneyJeffrey Marit

Christina McAvellaRobert MurrayMichel RousseauZorica Todorovic

Vice President andChief Financial OfficerGrant McEwen

Vice President andActuaryPhilip Jeffery

Chubb Insurance Company of Canada

OfficersPresident andChief Executive OfficerChristopher J. Giles

Senior Vice PresidentsPaul ChapmanGardner R. Cunningham, Jr.Thierry DaucourtJohannes EttenCarolyn HamiltonAndrew McKeeCarlos MerinoMoses I. Ojeisekhoba

Jalil RehmanFred ShurbajiBernardus Van Der VossenPaul R. Van Pelt

Senior Vice President andChief Financial OfficerKevin O’Shiel

Senior Vice President andActuaryColin Crouch

Vice President, GeneralCounsel and SecretaryRanald T. I. Munro

Vice PresidentsDavid AdamsJan AuerbachRon BakkerHubert BelangerThierry BourguignonBernhard BuddeRobert CageDavid Casement

Fiona CoxBijan DaftariGuillaume DealMark EdmondsonRichard EveleighJoaquin FraguelaAndrew FrancisDavid GibbsMarta Gomez-LlorenteBrian HardwickSimon HayterIsabelle HilaireMonique Kooijman

Richard LambertNeil Lee-AmiesPhilippe LeosticAndreas LuberichsJeremy MilesSimon MobeyMiguel MolinaTom NewarkRene NieuwlandStuart PayneBjorn PetersenHugh PollingtonJonathan Poole

Feliciano RuizVittorio ScalaHenrik SchwieningCovington ShacklefordAlan SheilChris TaitMichael ThyssenLynn TwinnMonique Van Der LindenSophie Van T’il LeedhamBrian VoslohBernd WiemannNigel Williams

Chubb Insurance Company of Europe SE

11


12

Directors

Zoë BairdPresidentThe Markle Foundation

Sheila P. BurkeResearch FacultyJ.F. Kennedy School ofGovernment,Harvard University

James I. Cash, Ph.D.Professor EmeritusHarvard Business School

Joel J. CohenLead DirectorThe Chubb CorporationChairman andCo-Chief Executive OfficerSagent Advisors Inc.

John D. FinneganChairman, President andChief Executive OfficerThe Chubb Corporation

Dr. Klaus J. MangoldFormer Member of the BoardDaimler AG

Martin G. McGuinnRetired Chairman andChief Executive OfficerMellon Financial Corp.

Lawrence M. SmallFormer SecretarySmithsonian Institution

Jess SøderbergRetired Partner andGroup CEOA.P. Moller-Maersk

Daniel E. SomersRetired Vice ChairmanBlaylock and Partners LP

Karen Hastie WilliamsRetired PartnerCrowell & Moring LLP

James M. ZimmermanRetired Chairman andChief Executive OfficerFederated Dept. Stores, Inc.

Alfred W. ZollarGeneral ManagerTivoli SoftwareIBM Corporation


Committees of the Board

Audit CommitteeDaniel E. Somers (Chair)Zoë BairdJoel J. CohenMartin G. McGuinnAlfred W. Zollar

Organization & CompensationCommitteeMartin G. McGuinn (Chair)Sheila P. BurkeDaniel E. SomersKaren Hastie WilliamsJames M. ZimmermanAlfred W. Zollar

Executive CommitteeJohn D. Finnegan (Chair)James I. Cash, Ph.D.Joel J. CohenMartin G. McGuinnDaniel E. Somers

Finance CommitteeJohn D. Finnegan (Chair)Sheila P. BurkeDr. Klaus J. MangoldJess Søderberg

Corporate Governance &Nominating CommitteeJames I. Cash, Ph.D. (Chair)Zoë BairdJoel J. CohenLawrence M. SmallKaren Hastie Williams


The Chubb Corporation15 Mountain View RoadP.O. Box 1615Warren, NJ 07061-1615Telephone (908) 903-2000www.chubb.com

Stock ListingThe common stock of theCorporation is traded on theNew York Stock Exchangeunder the symbol CB.

Dividend Agent, TransferAgent and RegistrarBNY MellonShareholder Services480 Washington BoulevardJersey City, NJ 07310Telephone (877) 251-3569www.bnymellon.com

SEC and NYSE CertificationsChubb has included as exhibits toits Annual Report on Form 10-K forthe year ended December 31, 2008filed with the Securities andExchange Commission certificatesof its Chief Executive Officer andChief Financial Officer certifyingthe quality of Chubb’s internalcontrols over financial reportingand disclosure controls. Chubb hassubmitted to the New York StockExchange (NYSE) a certificate ofits Chief Executive Officercertifying that he is not awareof any violation by Chubb of theNYSE’s corporate governancelisting standards.

Photography: Peter Vidor

Explanation of Non-GAAPFinancial MeasureOperating income, a non-GAAP financialmeasure, is net income excluding after-taxrealized investment gains and losses.Management uses operating income, amongother measures, to evaluate its performancebecause the realization of investment gainsand losses in any given period is largelydiscretionary as to timing and can fluctuatesignificantly, which could distort theanalysis of trends.

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The Chubb Corporation15 Mountain View Road, P.O. Box 1615Warren, New Jersey 07061-1615Telephone (908) 903-2000www.chubb.com

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annual review 2008...the chubb corporation annual review 2008 2008 ar text_draft._gac2.26:layout 1...

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