WARREN, New Jersey, October 30, 2002 -- The Chubb Corporation [NYSE: CB] announced today that net written premiums grew 33% as insurance rates continued to rise in all three strategic business units and as the company continued to attract new customers. Chubb had an operating loss of $270.7 million or $1.59 per share in the third quarter, including a $625 million ($2.38 per share after-tax) strengthening of reserves for asbestos claims. In the corresponding quarter of 2001, Chubb had an operating loss of $240.6 million or $1.41 per share, including $645 million ($2.46 per share after-tax) of losses related to the September 11, 2001 attack.

Catastrophe losses reduced income by $0.20 per share in the third quarter of 2002, compared with $0.06 per share in the year-earlier quarter excluding September 11. A loss resulting from a mark-to-market adjustment of Chubb Financial Solutions’ (CFS) portfolio of credit derivatives amounted to $0.15 per share in the 2002 third quarter; in the third quarter a year ago, CFS had breakeven results.

The third quarter net loss including realized investment gains was $242.1 million or $1.42 per share in 2002 and $239.0 million or $1.40 per share in 2001. Realized investment gains per share for the third quarter were $0.17 in 2002 and $0.01 in 2001.

Excluding CFS results, asbestos reserve additions and realized investment gains for both years, and all catastrophes for both years including the September 11 loss last year, the company earned $1.14 per share in the third quarter this year and $1.16 per share last year.

Dean R. O'Hare, Chairman and Chief Executive Officer of Chubb, said, "Chubb Commercial Insurance (CCI) had an outstanding quarter despite higher catastrophe losses. CCI continues to benefit from rising rates, improved retention of existing customers and an increase in new customers attracted by Chubb’s superior claim service and broad coverages. Chubb Specialty Insurance (CSI) results suffered increased claim activity in the D&O and E&O lines, but we are securing significant rate increases and better terms and conditions. Chubb Personal Insurance (CPI) was profitable as we continued dealing with water damage and mold issues in the homeowners line. CPI continued to turn in excellent results in the personal automobile, valuable articles and excess liability lines.

"I am especially pleased that we have put the asbestos issue behind us," continued Mr. O'Hare. "Upon completion of our asbestos review, we decided to add $625 million to our reserves. This reflected our independent actuarial consultants’ best estimate of our ultimate asbestos losses. With asbestos behind us, our new CEO, who will be announced soon, will be able to concentrate on taking advantage of a favorable rate environment to enhance the company's growth and profitability. I expect rates to remain on the upswing through 2004."

The combined ratio for the third quarter of 2002 was 99.9%, excluding the asbestos charge. In the third quarter of 2001, the combined ratio excluding September 11 losses was also 99.9%. Catastrophe losses in the third quarter of 2002 were $51.6 million, adding 2.5 percentage points to the combined ratio. In the third quarter of 2001, catastrophe losses other than those related to the September 11 attack were $14.7 million, representing 0.9 percentage point of the combined ratio. Excluding all catastrophes in both years and the asbestos charge in 2002, the combined ratio for the quarter was 97.4% in 2002 and 99.0% in 2001.

Net written premium growth of 33% in the third quarter, which excludes September 11-related reinstatement premiums in 2001, reflected higher rates, new business and improved retention of existing business in nearly all major lines of business. Premium growth in the U.S. was 35%. Premiums outside the U.S. were up about 25%.

For the first nine months of 2002, net premiums written increased 30% to $6.6 billion from $5.1 billion in 2001, excluding reinsurance reinstatement premiums in 2001. The nine month combined ratio excluding the third quarter asbestos charge in 2002 and the effect of the September 11 attack in 2001 was 98.0% in 2002 and 101.1% in 2001. Catastrophe losses in the first nine months of 2002 were $75.2 million, adding 1.3 percentage points to the combined ratio. In the comparable period of 2001, catastrophe losses excluding the September 11 attack were $106.5 million or 2.2 percentage points of the combined ratio. The nine month combined ratio excluding all catastrophes in both years and the third quarter asbestos charge in 2002 was 96.7% in 2002 and 98.9% in 2001.

Nine month operating income was $117.2 million ($0.68 per share) in 2002 and $74.5 million ($0.42 per share) in 2001. These amounts include the $625 million ($2.34 per share after-tax) third quarter asbestos charge in 2002 and the $645 million ($2.37 per share after-tax) September 11 charge in 2001. Net income for the first nine months was $166.3 million ($0.96 per share) in 2002 and $82.8 million ($0.47 per share) in 2001.

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

Mr. O'Hare said he expected operating earnings for the fourth quarter of 2002 to be in the range of $1.05 to $1.15 per share, assuming typical fourth quarter catastrophe experience and breakeven results at CFS.

The following discussion of results for the three strategic business units excludes the effects of the third quarter asbestos charge in 2002 and the September 11 attack in 2001.

CCI net written premiums grew 47% in the third quarter of 2002, and the combined ratio was 94.4% compared with 103.8% in the corresponding year-earlier quarter. There were 5 points of catastrophe losses in the third quarter of 2002, compared with six-tenths of a point a year earlier. The average price increase on U.S. policies renewed during the quarter was 23%. Retention ratios at CCI improved to 82% from 77% in the third quarter of 2001.

CSI net written premiums grew 34% in the third quarter. CSI's combined ratio was 106.1%, compared with 97.2% in the third quarter of 2001. Executive Protection (EP), which accounted for just over half of CSI's business, had a combined ratio of 112.3%, compared with 96.9% in the third quarter of 2001. The company continues to implement significant rate increases and better terms and conditions for D&O and E&O insurance for large publicly held companies, where claims activity was heavy. Financial Institutions (FI) results were also adversely affected by D&O and E&O losses, resulting in a combined ratio of 115.7%, compared with 95.3% in the third quarter of 2001. Surety and Accident were profitable. Chubb Re had premium growth of 119% and a combined ratio of 97%.

CPI net written premiums grew 16%. The combined ratio for CPI was 99.0%, compared with 98.6% in the third quarter of 2001. Personal automobile insurance had a combined ratio of 94.5%, compared with 100.1% a year ago. Valuable articles and personal excess liability insurance had a combined ratio of 78.3%, compared with 75.3% a year ago. These profitable results were offset by results of CPI's largest product, homeowners' insurance, which had a combined ratio of 108.8%, compared with 107.6% a year ago. Homeowners results reflected increasing severity for water damage and mold claims, primarily in Texas. The company has already received regulatory approval in many states for rate increases and forms changes that would allow the company to offer policies with and without mold coverage. Third quarter catastrophe losses accounted for 2.2 points of CPI's combined ratio in 2002 and 2.4 points in 2001.

Property and casualty investment income after taxes increased 1.5% to $190.1 million in the third quarter from $187.3 million last year. Property and casualty investment income per share increased 0.9% to $1.11 from $1.10. For the first nine months, investment income increased 1.2% to $566.5 million from $559.9 million; on a per share basis, nine month investment income increased 3.5% to $3.27 from $3.16.

Chubb repurchased 1,000,000 shares of its common stock in the open market in the third quarter, bringing total stock purchases for the first nine months to 1,500,000 shares.

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 terrorism legislation and regulation;

• global political conditions and the occurrence of any terrorist attacks, including any nuclear, biological or chemical events;

• the outbreak of war with Iraq;

• premium price increases and profitability or growth estimates overall or by lines of business or geographic area, and related expectations with respect to the timing and terms of any required regulatory approvals;

• our expectations with respect to cash flow projections and investment income and with respect to other income;

• the adequacy of loss reserves including:

• the effects of disclosures by and investigations of public companies relating to possible accounting irregularities, practices in the energy and securities industries and other corporate governance issues, including:

• changes in management;

• any downgrade in our claims-paying, financial strength or credit ratings;

• general economic conditions including: