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FOR IMMEDIATE RELEASE

Chubb Reports Third Quarter Operating Loss of $1.41 per Share; Operating Earnings Are $1.05 per Share Excluding Attack of September 11^th

WARREN, New Jersey, October 30, 2001 -- The Chubb Corporation [NYSE: CB] announced today that third quarter operating income per share, excluding costs related to the attack of September 11^th, was $1.05, up 1% from $1.04 in the third quarter of 2000. Excluding a one-time after-tax gain of $0.04 per share in 2000 related to the sale of Chubb's interest in Associated Aviation Underwriters, Inc., operating income per share was up 5%. Third quarter operating income excluding costs related to the September 11^th attack was $179.4 million, compared with $184.6 million in 2000. The after-tax costs of the September 11^th attack were $420 million, or $2.46 per share. This amount includes current estimated losses net of reinsurance, net premiums for reinsurance reinstatements and Chubb's share of Hiscox plc's losses related to the attack. Including costs related to the September 11^th attack, Chubb reported an operating loss of $240.6 million or $1.41 per share. The net loss in the third quarter of 2001, which includes realized investment gains, was $239.0 million, or $1.40 per share. In the year-earlier third quarter, net income was $207.9 million, or $1.17 per share. Nine month operating income, excluding costs related to the September 11^th attack, totaled $494.5 million or $2.79 per share, compared with $515.2 million or $2.89 per share in 2000. Including September 11^th costs, operating income for the first nine months was $74.5 million, or $0.42 per share. Net income for the first nine months of 2001 was $82.8 million, or $0.47 per share, compared with $546.2 million or $3.06 per share last year.

Chubb's third quarter and nine month after-tax results are summarized below:

"The tragic event of September 11^th and its aftermath have caused changes in insurance markets which have resulted in increased numbers of applications to Chubb for coverage for new customers," said Dean R. O'Hare, Chairman and Chief Executive Officer of Chubb. "In the wake of heavy insurance industry losses, there is newfound intensity in the preference by agents and customers for the more stable, conservatively capitalized carriers. In addition, many insurance carriers have demanded huge price increases, raised deductibles, reduced coverage limits or declined outright to renew coverage. This has given Chubb an opportunity to fill the void by writing new, high quality accounts at attractive rates. In particular, we expect our surplus lines and reinsurance businesses to benefit from new opportunities created by these market changes." Mr. O'Hare said he expected the full benefits of this increased activity to have a substantial effect on the company's earnings in 2003, after the company has had a chance to improve its margins in 2002. "The big question mark for the future is whether Congress will take prompt action regarding insurance for any future attack," said Mr. O'Hare. "Without a government backstop, businesses will be unable to secure reasonably priced insurance which includes terrorism coverage, and that will have a chilling effect on significant portions of the economy." Mr. O'Hare expressed optimism that meaningful legislation will be passed soon, before large numbers of current policies expire. For the third quarter, Chubb's net property and casualty premiums written, excluding reinsurance reinstatement premiums, increased 8.2% to $1.7 billion. Premium growth in the U.S. was 5.2%. Reported premiums outside the U.S. were up 26.5%; in local currencies, they were up about 17%. The combined ratio of 99.9% for the third quarter of 2001, which excludes the effect of the September 11^th attack, compares with 99.4% last year. Catastrophe losses other than those related to September 11^th were $14.7 million, adding 0.9 percentage point to the combined ratio. In the third quarter of 2000, catastrophe losses were $8.0 million, representing 0.5 percentage point of the combined ratio. For the first nine months of 2001, net premiums written, excluding reinsurance reinstatement premiums, increased 8.1% to $5.1 billion. The combined ratio excluding the effect of the September 11^th attack was 101.1% in 2001 and 99.9% in 2000. Catastrophe losses in the first nine months of 2001 excluding September 11^th were $106.5 million or 2.2 percentage points of the combined ratio. In the comparable period of 2000, catastrophe losses were $62.6 million, adding 1.4 percentage points to the combined ratio.

Mr. O'Hare said he expected operating earnings for the fourth quarter of 2001 to be in the range of $1.01 to $1.06 per share, assuming typical fourth quarter catastrophe experience.

The following discussion of results for the three strategic business units excludes the effects of the September 11^th attack.Chubb Commercial Insurance (CCI) net written premiums grew 4% in the third quarter of 2001, and the combined ratio was 103.8% compared with 113.6% in the corresponding year-earlier quarter. CCI's pricing initiative continued to progress, as the average price increase on U.S. policies renewed during the quarter was 14%. Retention ratios at CCI improved to 77.1% from 72.8% in the second quarter of 2001 and 72.5% in the third quarter of 2000.Chubb Specialty Insurance (CSI) net written premiums grew 6% in the third quarter. Growth was impeded by fewer Executive Protection multi-year premiums compared with 2000. CSI's combined ratio was 97.2%. Executive Protection, which accounted for 54% of CSI's business, had a combined ratio of 96.9%, compared with 89.2% in the third quarter of 2000. The company continues to implement significant price increases for employment practices liability insurance and directors & officers insurance for large companies, where underwriting results have been penalized by very high jury awards and high settlement costs resulting from such awards.Chubb Personal Insurance (CPI) grew 16%. The combined ratio for CPI was 98.6%. Valuable articles and personal excess liability insurance were both very profitable, but the unit's largest product, homeowners' insurance, had a combined ratio of 107.6%, reflecting inadequate pricing. The company has already received regulatory approvals in some states for premium increases, and applications are pending in other states where the business has been unprofitable. Property and casualty investment income after taxes increased 1.4% to $187.3 million in the third quarter from $184.7 million last year. Property and casualty investment income per share increased 5.8% to $1.10 from $1.04. For the first nine months, investment income increased 2.4% to $559.9 million from $546.8 million; on a per share basis, nine month investment income increased 2.9% to $3.16 from $3.07. Chubb repurchased 4,064,800 shares of its common stock in the open market in the third quarter, bringing total stock purchases for the first nine months to 7,954,600 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 insurance losses from the September 11^th attack or with respect to related reinsurance recoverables, as well as its expectations with respect to the availability of primary and reinsurance coverage for such events and with respect to legislation, or with respect to premium price increases and profitability or growth estimates overall or by line of business, and its related expectations with respect to operating or other income; 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 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.