FOR IMMEDIATE RELEASE

Chubb Reports 2nd Quarter Operating Income of $1.00 Per Share

WARREN, N.J., July 27, 2000 – The Chubb Corporation [NYSE: CB] today reported operating income of $180.7 million or $1.00 per share for the second quarter of 2000. In the year-earlier second quarter, operating income, which excludes realized investment gains, was $163.5 million or $1.00 per share. Net income, which includes realized investment gains, was $184.6 million or $1.02 per share in the second quarter of 2000, compared with $193.3 million or $1.18 per share in the 1999 second quarter.

For the six months ended June 30, 2000, operating income was $330.6 million or $1.85 per share compared with $329.9 million or $2.02 per share in the first six months of 1999. Net income for the first half of 2000 was $338.3 million or $1.89 per share compared with 1999 first half net income of $380.2 million or $2.32 per share.

The combined loss and expense ratio for the second quarter was 98.6% in 2000 and 100.3% in 1999. For the first half, the combined ratio was 100.2% in 2000 and 99.7% in 1999.

Results of Executive Risk Inc., which was acquired by Chubb in July 1999, are included in the second quarter and first six months of 2000. Chubb’s second quarter and six month after-tax results are summarized below:

Reported property and casualty net premiums written in the second quarter of 2000 grew 6.8% to $1.5 billion. U.S. premiums grew 13.5%; more than half of the increase was related to the acquisition of Executive Risk. Reported premiums written outside the U.S. declined solely because of the elimination of a three-month lag in the reporting of European results. Excluding the effect of the European reporting change, non-U.S. premiums grew about 15% in local currencies. Reported property and casualty net premiums written in the first six months of 2000 increased 9.9% to $3.1 billion. Excluding the acquisition and the reporting change, premiums grew about 5% in the first half.

"Chubb had an excellent second quarter in all three major business segments," said Dean R. O’Hare, Chairman and Chief Executive Officer. "Personal Lines produced a solid underwriting profit and strong premium growth. Specialty Commercial Lines had a great quarter, posting strong premium growth and sustained profitability in both Executive Protection and Financial Institutions. The combined ratio for Standard Commercial Lines improved to 110.2% from 120.8% in the second quarter a year ago and from 114.9% in the first quarter of 2000, reflecting fewer large losses and outstanding progress in our initiative to increase rates to profitable levels."

Personal Lines produced a combined ratio of 94.1% in the second quarter as premiums grew 12.2% to $455 million. Mr. O’Hare said that Personal Lines premium growth continued in all geographic regions. "Our Masterpiece® product continues to be the gold standard against which all other policies’ coverages are measured," he said, "and it is one of the few successfully branded products in the insurance industry. A key component of the Masterpiece franchise is Chubb’s unsurpassed claims philosophy and service."

Specialty Commercial Lines’ second quarter premiums grew 19.6% to $685 million, and the combined ratio was 93.9%. Excluding the acquisition of Executive Risk and the European reporting change, Specialty Commercial premiums grew 14%. The Executive Protection business had another strong quarter, with a combined ratio of 84.6%, as did the Financial Institutions business, which posted a combined ratio of 83.6%.

Standard Commercial Lines’ second quarter premiums declined to $390 million, reflecting the company’s ongoing determination to weed out undesirable business. Standard commercial rate increases in the U.S. averaged 11.8% during the quarter. Total price increases, including both rate and exposure increases, averaged 15.1%.

Catastrophe losses for the 2000 second quarter and six months were $24.3 million and $54.6 million, respectively, adding 1.6 and 1.8 percentage points to the respective combined ratios for these periods. In the second quarter and first half of 1999, catastrophe losses were $46.8 million and $86.9 million, respectively, adding 3.4 and 3.2 percentage points to the respective combined ratios for these periods.

Property and casualty investment income after taxes for the second quarter increased 8.7% to $180.8 million from $166.4 million in 1999. For the first half, property and casualty investment income after taxes increased 9.9% to $362.1 million from $329.4 million in 1999.

During the second quarter, the company purchased approximately 1.0 million shares of its common stock in open-market transactions.

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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 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 or other weather-related events, the inability to reinsure certain risks economically, the adequacy of loss reserves, as well as general market conditions, competition, pricing and restructurings.