Chubb Announces Remarketing of 2.25% Senior Notes Due 2008
WARREN, New Jersey, May 11, 2006 — The Chubb Corporation (NYSE: CB) announced today that it has priced the remarketing of $460 million aggregate principal
amount of its 2.25% Senior Notes due 2008 (CUSIP No. 171232AK7). As a result of the remarketing, the annual interest rate
on the Senior Notes will be reset to 5.472% per annum, paid quarterly, effective May 16, 2006. The remarketed Senior Notes
will be sold to investors at a price of 99.8712%. After the closing of the remarketing, the Senior Notes will no longer form
part of Chubb’s Equity Units (NYSE: CBPRB) (CUSIP No. 171232507). The remarketing is being conducted on behalf of Equity
Unit holders pursuant to the terms of the Equity Units and is expected to close on or about May 16, 2006.
Proceeds from the remarketing will be used to purchase U.S. Treasury securities that will be pledged to secure the purchase
contract obligations of the Equity Unit holders. Holders of the outstanding Equity Units will receive, on or about May 16,
2006, the remaining proceeds from the remarketing, after deduction of the remarketing fee and the purchase price of the portfolio
of U.S. Treasury securities, in an amount equal to $0.062 per Equity Unit.
This release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be
any sale of the Senior Notes in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any state or other jurisdiction. The remarketing will
only be made pursuant to a prospectus supplement and prospectus to be filed with the Securities and Exchange Commission which,
when finalized, may be obtained from the Remarketing Agents, Citigroup Global Markets Inc., Deutsche Bank Securities Inc.,
Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, care of Citigroup Global Markets Inc., Brooklyn
Army Terminal, 140 58th Street, 7th Floor, Brooklyn, New York, 11220, Attn: Prospectus Department, (718) 765-6732.
For further information contact:
Glenn A. Montgomery
908-903-2365
Media:
Mark E. Greenberg
908-903-2682
FORWARD-LOOKING INFORMATION
Statements in this release relating to the reset of the interest rate on the 2.25% Senior Notes, the purchase price of the
remarketed 2.25% Senior Notes, the closing of the remarketing of the 2.25% Senior Notes, the use of the proceeds from the
remarketing of the 2.25% Senior Notes, the pledge of the U.S. Treasury securities, and the distribution of remaining proceeds
to holders of the Equity Units are “forward-looking statements” as that term is defined in the Private Securities Litigation
Reform Act of 1995 (the “PSLRA”). These forward-looking statements are made pursuant to the safe harbor provisions of the
PSLRA. Forward-looking statements are made based upon management’s current expectations and beliefs and are subject to risks,
uncertainties and other factors that could cause actual events to differ from those suggested by the forward-looking statements.
The Corporation assumes no obligation to update any “forward-looking statement” set forth in this release.
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