FOR IMMEDIATE RELEASE

Chubb Reports First Quarter Earnings

WARREN, N.J., April 25, 2000 - The Chubb Corporation [NYSE: CB] today reported lower operating earnings and net income for the first quarter of 2000, partially as a result of weather-related losses in homeowners business. In addition, there were a number of large losses in the property and marine business compared to unusually few large losses in the year-ago first quarter.

Although standard commercial lines are still unprofitable, margins have improved since the fourth quarter of 1999 and the company’s pricing strategy continues to show success, with rate increases on renewed policies averaging 9.9% during the first quarter, compared with 1.6% in the first quarter of 1999 and 6.2% in the fourth quarter of 1999.

First quarter operating earnings, which exclude realized investment gains, were $149.9 million or $0.85 per share compared with $166.4 million or $1.02 per share in 1999. Net income in the 2000 first quarter was $153.7 million or $0.87 per share compared with $186.9 million or $1.14 per share last year.

Results of Executive Risk Inc., which was acquired by Chubb in July 1999, are included in the first quarter of 2000. First quarter after-tax results are summarized below:

Personal lines produced strong premium growth of 12.5% and a combined ratio of 97.5% in the first quarter. "A combination of catastrophe and other weather-related losses contributed to what we expect will be a temporary interruption in the profitability that has characterized homeowners results in recent years," said Dean R. O’Hare, chairman and chief executive officer. "In addition to the designated catastrophe losses of $27.3 million, there were many more homeowners losses caused by severe weather, such as water damage resulting from frozen pipes and fires resulting from heating equipment mishaps." As a result, the combined ratio for the homeowners business was 109.7% compared with 101.4% in the first quarter of 1999. Other personal lines, which include valuable articles and personal excess liability books of business and are closely related to homeowners, had a combined ratio of 69.5% for the quarter. Personal automobile produced a combined ratio of 97.1%.

Standard commercial lines produced a combined ratio of 114.9%, compared to 117.9% in the first quarter of 1999 and 125.8% in the fourth quarter of 1999. Mr. O’Hare said that improvement in the general pricing environment for standard commercial lines has enabled Chubb to renew quality business at much improved rates. "I am very encouraged by the price increases that we’re getting, and there is no question that we are doing a good job of ridding ourselves of unprofitable business," said Mr. O’Hare. "Even more encouraging, many of the carriers who over the past dozen years have sought market share by cutting prices without regard to profitability have now pulled back from the market or raised rates indiscriminately without matching our level of service. The dried up capacity and gap in service is permitting Chubb to retain quality accounts at higher rates. A continuation of this market environment, which facilitates our program of raising rates and culling unprofitable business, should enable us to restore underwriting profitability to these lines. We do not expect to see our standard commercial results in the black in the near term. However, we do expect continued improvement, particularly in the second half of this year."

Specialty commercial lines showed strong performance for the quarter, as most lines continued to produce excellent results. The company's executive protection business had a combined ratio of 84.8%, and the financial institutions business had a combined ratio of 92.2%. "Despite tough competition across just about all of our specialty lines, both executive protection and financial institutions produced continued strong profitability," said Mr. O’Hare. "Our Chubb Executive Risk operation is taking advantage of its strong market position in executive protection and is aggressively developing new business in such areas as professional services and healthcare." Property and marine results remain unsatisfactory with a combined ratio of 121.3%, which primarily reflected large loss activity, compared with 98.7% in the 1999 first quarter, which had fewer large losses.

Reported net property and casualty premiums written in the quarter increased 13.0% to $1.6 billion from $1.4 billion in 1999. U.S. premiums grew 9.8%, about three-fourths of which related to the acquisition of Executive Risk. Reported premiums written outside the U.S. increased 28.6%. However, a significant portion of this growth related to a change in the reporting for our European operations, the effect of which will be reversed in the second quarter. Non-U.S. premiums grew at about 11% in local currency.

The combined loss and expense ratio for the first quarter was 101.9% in 2000, compared with 99.2% in 1999. Catastrophe losses totaled $30.3 million and represented 2.0 percentage points of the 2000 first quarter combined ratio. In the first quarter of 1999, catastrophe losses were $40.1 million and represented 2.9 points of the combined ratio.

Property and casualty investment income after taxes increased 11.2% to $181.3 million or $1.03 per share from $163.0 million or $1.00 per share in 1999.

In the first quarter, Chubb purchased approximately 1.3 million shares of its common stock in the open market.

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FORWARD LOOKING INFORMATION

Certain statements in this communication may be considered to be "forward looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 such as statements that include words or phrases "will result", "is expected to", "will continue", "is anticipated", or similar expressions. Such statements are subject to certain risks and uncertainties. The factors which could cause actual results to differ materially from those suggested by any such statements include but are not limited to those discussed or identified from time to time in the Corporation's public filings with the Securities & Exchange Commission and specifically to: risks or uncertainties associated with the Corporation's expectations with respect to profitability or business retention estimates overall and by line of business, as well as its expectations with respect to premium growth; and, more generally to: general economic conditions including changes in interest rates and the performance of the financial markets, changes in domestic and foreign laws, regulations and taxes, changes in competition and pricing environments, regional or general changes in asset valuations, the occurrence of significant natural disasters, the inability to reinsure certain risks economically, the adequacy of loss reserves, as well as general market conditions, competition, pricing and restructurings.