FOR IMMEDIATE RELEASE

Chubb 4th Quarter Operating Income Is Up 3% to $165.9 Million;
Net Written Premiums Increase 14.5%
2000 Operating Income Climbs 20% to $681.1 Million; Premiums Rise 11%

WARREN, New Jersey, February 9, 2001 -- The Chubb Corporation [NYSE: CB] today announced higher operating earnings and substantial premium growth in the fourth quarter of 2000.

Operating income in the final quarter of 2000 was $165.9 million or $0.93 per share compared with $160.6 million or $0.91 per share in the corresponding quarter of 1999. Net income, which includes realized investment gains, was $168.4 million or $0.95 per share for the quarter compared with $163.6 million or $0.93 per share in the same quarter last year.

Operating income for the year 2000 totaled $681.1 million or $3.82 per share compared with $565.3 million or $3.33 per share in 1999. Net income for 2000 was $714.6 million or $4.01 per share compared with $621.1 million or $3.66 per share last year.

Results of Executive Risk Inc., which was acquired by Chubb in July 1999, are included from the date of acquisition. Fourth quarter and twelve month after-tax results are summarized below:

For the fourth quarter, net property and casualty premiums written increased 14.5% to $1.6 billion. The combined ratio of 101.7% compares with 101.1% last year. Catastrophe losses were $9.0 million in the fourth quarter of 2000, adding 0.6 percentage point to the combined ratio, and $2.6 million in the fourth quarter of 1999, representing 0.2 percentage point of the combined ratio.

For the year 2000, net premiums written increased 11.1% to $6.3 billion. The combined ratio was 100.4% in 2000 and 102.8% in 1999. Catastrophe losses in 2000 were $71.6 million, adding 1.2 percentage points to the combined ratio. For the year 1999, catastrophe losses were $224.5 million or 4.0 percentage points of the combined ratio.

Property and casualty investment income after taxes increased 2.7% to $188.4 million or $1.05 per share in the fourth quarter from $183.5 million or $1.04 per share last year. For the full year, investment income increased 6.3% to $735.2 million or $4.12 per share from $691.9 million or $4.08 per share in 1999.

"Personal and Specialty Commercial Lines performed outstandingly well in the fourth quarter," said Dean R. O’Hare, chairman and chief executive officer. "Standard Commercial Lines again had an underwriting loss. However, rate increases continued to accelerate, and year-end analyses revealed that our initiative to shed the worst-performing accounts has resulted in a dramatic increase in the quality of the book."

Personal Lines had a fourth quarter combined ratio of 91.8%, and premiums grew 13.3%. Specialty Commercial had a combined ratio of 100.4% with premium growth of 25.6%. Excluding Property & Marine, which had heavy losses, Specialty Commercial would have reported a combined ratio of 94.2% and premium growth of 27.5%. Standard Commercial Lines had a combined ratio of 113.4% and premium growth of 1.7%.

For all of 2000, Personal Lines premiums grew 13.0%, the sixth consecutive year in which the rate of premium growth increased for Personal Lines. The combined ratio for 2000 was 92.9%. For the full year, Specialty Commercial Lines grew 21.0% and had a combined ratio of 95.9%. Excluding Property & Marine, Specialty Commercial grew 26.4% in 2000 and had a combined ratio of 91.7%. Standard Commercial Lines had a combined ratio for the year of 114.0% and a 3.0% decline in premiums.

In the fourth quarter, Chubb repurchased 668,500 shares of its common stock in the open market, bringing total 2000 share repurchases to 3.8 million shares.

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.