FOR IMMEDIATE RELEASE

Chubb Fourth Quarter Operating Income Is $36.5 Million;
Net Written Premiums Increase 13.5%
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2001 Operating Income Is $111 Million ($531 Million
Excluding September 11^th Attack); Premiums Rise 9.9%

WARREN, New Jersey, February 7, 2002 -- The Chubb Corporation [NYSE: CB] today announced that operating income in the final quarter of 2001 was $36.5 million or $0.21 per share compared with $165.9 million or $0.93 per share in the corresponding quarter of 2000. Operating income for the fourth quarter of 2001 reflects an after-tax charge of $143 million, or $0.83 per share, from surety bond losses related to Enron. Net income, which includes realized investment gains and losses, was $28.7 million or $0.16 per share for the quarter compared with $168.4 million or $0.95 per share in the same quarter last year.

Operating income for the year 2001 totaled $111.0 million or $0.63 per share compared with $681.1 million or $3.82 per share in 2000. In addition to the Enron-related charge, 2001 operating income reflects after-tax costs of $420 million, or $2.39 per share, related to the September 11^th attack. Net income for 2001 was $111.5 million or $0.63 per share compared with $714.6 million or $4.01 per share last year.

Fourth quarter and twelve month after-tax results are summarized below:

For the fourth quarter, net property and casualty premiums written increased 13.5% to $1.8 billion. The combined ratio of 111.9% compares with 101.7% last year. Excluding the pre-tax loss of $220 million, net of reinsurance, on surety bonds related to Enron, the 2001 fourth quarter combined ratio was 99.0%. Catastrophe losses were $7.8 million in the fourth quarter of 2001, adding 0.5 percentage point to the combined ratio, and $9.0 million in the fourth quarter of 2000, representing 0.6 percentage point of the combined ratio.

For the year 2001, net premiums written increased 9.9% to $7.0 billion. The combined ratio was 113.4% in 2001 and 100.4% in 2000. Excluding the pre-tax costs of $645 million, net of reinsurance, related to the September 11^th attack, the combined ratio for the year 2001 was 103.9%. Excluding the Enron-related surety bond losses as well, the combined ratio was 100.5%. Catastrophe losses in 2001 other than those related to the September 11^th attack were $114.3 million, adding 1.7 percentage points to the combined ratio. For the year 2000, catastrophe losses were $71.6 million or 1.2 percentage points of the combined ratio.

Property and casualty investment income after taxes increased 0.4% to $189.2 million in the fourth quarter of 2001 from $188.4 million in the corresponding quarter of 2000. Fourth quarter property and casualty investment income per share increased 4.8% to $1.10 from $1.05. For the full year, property and casualty investment income increased 1.9% to $749.1 million from $735.2 million in 2000. Property and casualty investment income per share increased 3.4% to $4.26 in 2001 from $4.12 in 2000.

Chubb Commercial Insurance had a fourth quarter combined ratio of 102.4% and premium growth of 16.0%. Chubb Specialty Insurance had a combined ratio of 131.9% (96.1% excluding the Enron surety bond losses) with premium growth of 10.4%. Chubb Personal Insurance had a combined ratio of 98.4%, and premiums grew 13.9%.

"Chubb Commercial Insurance had an outstanding rebound in the fourth quarter," said Dean R. O’Hare, chairman and chief executive officer, "turning in strong growth and improving its combined ratio by 14.2 points over the corresponding quarter of 2000. The upward premium trends of the fourth quarter accelerated still further in January 2002. Chubb Specialty is culling its book of underperforming accounts and securing large rate increases and better terms and conditions on the business it keeps and the new business it writes. Chubb Personal is in the second phase of its rate initiative to solve the problem of underpriced homeowners insurance in many jurisdictions."

Mr. O’Hare said, "Rates are increasing across nearly all lines, as the higher cost of reinsurance, the losses from September 11^th and reduced investment income and capital gains have put intense pressure on our competitors to earn an underwriting profit. We believe the long-awaited hard market has arrived, and it is evident not only in improved rates but also in better terms and conditions and the ability to be more selective in assuming risks. With our strong balance sheet, conservative loss reserves and ample liquidity, Chubb is particularly well positioned to benefit from this market environment as more customers demonstrate a preference for the strongest carriers."

For all of 2001, Chubb Commercial Insurance’s net written premiums grew 6.4%, and it had a combined ratio for the year of 110.5% (106.1% excluding the effect of the September 11^th attack). Chubb Specialty Insurance grew 9.7% and had a combined ratio of 125.5% (104.5% excluding the effect of the September 11^th attack and 95.3% also excluding the Enron surety bond losses). Chubb Personal Insurance premiums grew 15.0%, the seventh consecutive year in which the rate of premium growth increased for Personal Lines. Chubb Personal Insurance’s combined ratio for 2001 was 101.3% (100.2% excluding the effect of the September 11^th attack).

In the fourth quarter of 2001, Chubb repurchased 17,000 shares of its common stock in the open market. Total 2001 repurchases were approximately 8.0 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, uncertainties and assumptions about our business. 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 availability of primary and reinsurance coverage, including the implications relating to the absence of terrorism legislation;
• global political conditions and the occurrence of any terrorist attacks, including any nuclear, biological or chemical events;
• premium price increases and profitability or growth estimates overall or by line of business, and related expectations with respect to:

• our expectations relating to insurance losses from the September 11 attack and related reinsurance recoverables;
• the effects of the Enron bankruptcy on the energy markets and the companies that participate in them, the effects on liability under primary coverage and surety obligations of related judicial decisions and risks or uncertainties with respect to related reinsurance recoverables;
• the effects on the capital markets and the markets for D&O and E&O insurance arising out of the ongoing investigation of Enron, related accounting disclosures by other companies and any legislative or regulatory proposals resulting from those events;
• general economic conditions including

The Corporation assumes no obligation to update any forward looking information set forth in this communication which speaks as of the first date of issuance hereof.