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FOR IMMEDIATE RELEASE

WARREN, N.J., July 26, 2001 – The Chubb Corporation [NYSE: CB] today reported operating income of $142.4 million or $.80 per share for the second quarter of 2001. As previously announced, this quarter's earnings were heavily affected by catastrophe losses. In the year-earlier second quarter, operating income was $180.7 million or $1.00 per share. Net income, which includes realized investment gains, was $146.8 million or $.83 per share in the second quarter of 2001, compared with $184.6 million or $1.02 per share in the second quarter of 2000.

For the six months ended June 30, 2001, operating income was $315.1 million or $1.76 per share compared with $330.6 million or $1.85 per share in the first six months of 2000. Net income for the first half of 2001 was $321.8 million or $1.80 per share compared with 2000 first half net income of $338.3 million or $1.89 per share.

Reported property and casualty net premiums written in the second quarter of 2001 grew 7.0% to $1.6 billion. U.S. premiums grew 6.1%. Non-U.S. premiums grew about 16% in local currencies. Reported property and casualty net premiums written in the first six months of 2001 increased 8.0% to $3.4 billion.

The combined loss and expense ratio for the second quarter was 103.5% in 2001 and 98.6% in 2000. For the first half, the combined ratio was 101.7% in 2001 and 100.2% in 2000.

Catastrophe losses for the 2001 second quarter and six months were $80.3 million and $91.8 million, respectively, adding 4.9 and 2.8 percentage points to the respective combined ratios for these periods. Tropical Storm Allison accounted for approximately two-thirds of the second quarter catastrophe losses. In the second quarter and first half of 2000, catastrophe losses 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.

Chubb's second quarter and six month after-tax results are summarized below:

"Chubb Commercial Insurance (CCI) made good progress in the second quarter," said Dean R. O'Hare, Chairman and Chief Executive Officer. "Excluding catastrophe losses, CCI's combined ratio improved to 105.2% from 110.4% in the corresponding quarter a year ago." Catastrophe losses added 7.6 points to CCI's combined ratio in the second quarter of 2001 and zero points in the second quarter of 2000. Commercial Multi-Peril and Workers' Compensation underwriting results improved significantly, while the monoline Property business performed poorly. CCI's net written premiums increased by 6.4% to $544 million, compared with a double-digit decline in the corresponding quarter a year ago. Renewal rates in the U.S. increased 15%, the same as in the first quarter of 2001, and retention rates improved compared to the year-ago second quarter. "We are back in the market successfully selling the Chubb difference in broad coverages, loss control services, financial strength, global capabilities and unparalleled claim service," said Mr. O'Hare.

Chubb Specialty Insurance (CSI) second quarter net written premiums grew 0.3% to $566 million, and the combined ratio was 94.7%. Executive Protection (EP) net written premiums were flat because of reduced sales of multi-year policies compared with previous years; EP's earned premiums grew 11.2% in the second quarter. The EP and Financial Institutions businesses had combined ratios of 93.9% and 85.3%, respectively.

Chubb Personal Insurance (CPI) produced a combined ratio of 103.4% as premiums grew 16.0% to $528 million. Mr. O'Hare said that the Valuable Articles and Excess Liability lines were highly profitable but that the Homeowners line was unprofitable due to rate deficiencies in a number of states and an increase in loss frequency, particularly large losses. "Chubb's Masterpiece® product remains the industry's premier offering," said Mr. O'Hare, "but we have found that in some locations it is underpriced relative to the outstanding value provided. We are applying for rate increases in these jurisdictions. This will provide some relief, but we have also stepped up our efforts to make sure that the amount of coverage reflects the full current value of the home and contents and takes into consideration the escalating costs of restoring vintage homes."

Property and casualty investment income after taxes for the second quarter increased 4.0% to $188.0 million from $180.8 million in 2000. On a per share basis, property and casualty investment income after taxes increased 6.0% to $1.06 from $1.00. For the first half, property and casualty investment income after taxes in 2001 increased 2.9% to $372.6 million or $2.09 per share from $362.1 million or $2.03 per share in 2000.

During the second quarter, Chubb purchased 3.3 million shares of its common stock in open-market transactions, compared with 1.0 million shares in the second quarter of 2000. During the first six months of 2001, Chubb purchased 3.9 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," "estimates," 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 and Exchange Commission and specifically to: risks or uncertainties associated with the Corporation's expectations with respect to premium price increases, its insurance-to-value and restoration cost review efforts, and the timing and adequacy of regulatory action on rate filings, 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, weather-related or other natural disasters, the inability to reinsure certain risks economically, the adequacy of loss reserves, as well as general market conditions, competition, pricing and restructurings.