<PAGE> 1
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 27, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
------------------
FORM 11-K
ANNUAL REPORT
------------------
['X'] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER 1-8661
A. FULL TITLE OF THE PLAN: CAPITAL ACCUMULATION PLAN OF THE CHUBB
CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES.
B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE
ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE:
The Chubb Corporation (the "Corporation")
15 Mountain View Road
P.O. Box 1615
Warren, New Jersey 07061 - 1615
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE> 2
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1994
<TABLE>
<CAPTION>
S&P 500 SHORT TERM CHUBB FIXED
INDEX INCOME CORPORATION INCOME BALANCED
FUND FUND STOCK FUND FUND FUND
----------- ---------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C>
Investments (Notes 1 and 3)
Common Stock of Chubb Corporation................... -- -- $75,639,401 -- --
Mutual Funds........................................ $43,266,526 -- -- -- $5,270,293
Investment in Equities.............................. -- -- -- -- --
Fixed Income Securities............................. -- -- -- $151,493,529 --
Pooled Investments:
US Government Money Market Fund................... -- $6,629,436 1,421,649 4,346,464 --
EGSF Venture Capital Fund......................... 14,790 -- -- -- --
Participant Loans................................... -- -- -- -- --
Accrued Income........................................ 1,890 28,372 453,906 (11,879) --
Participants' transfers receivable (payable) between
Funds............................................... (212,609) (13,423 ) (57,836 ) 246,736 (25,760)
----------- ----------- ----------- ------------ ----------
Net Assets Available for Plan Benefits at
December 31, 1994 (Note 4)...................... $43,070,597 $6,644,385 $77,457,120 $156,074,850 $5,244,533
=========== =========== =========== ============ ==========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1994
<TABLE>
<S> <C> <C> <C> <C> <C>
Contributions
Employers:
Pay conversion................................... $ 3,019,848 $ 509,538 $ 4,524,184 $ 7,866,087 $ 661,867
Matching......................................... 1,991,577 371,024 3,013,469 5,263,403 412,566
----------- ----------- ------------ ------------ ----------
Total employers.............................. 5,011,425 880,562 7,537,653 13,129,490 1,074,433
Participants....................................... 95,546 8,078 97,874 300,835 20,625
Rollovers.......................................... 262,959 142,524 517,736 592,739 106,266
Loan repayments...................................... 1,140,679 232,646 2,154,067 3,742,507 313,755
Interest............................................. 14,797 255,355 (27,821) 10,505,376 2,400
Dividends............................................ 1,497,690 -- 1,828,547 -- 147,085
Net appreciation/(depreciation) in fair value of
assets............................................. (1,076,902) -- (824,189) -- (22,469)
Participants' transfers between Funds................ (9,835,668) (1,480,340 ) (14,663,018) (15,156,651) 3,693,266
Distributions to participants........................ (2,292,695) (607,812 ) (4,124,192) (10,246,730) (90,324)
Forfeitures.......................................... (139) (184 ) (87) (523) (504)
----------- ----------- ------------ ------------ ----------
Increase (decrease) in Net Assets Available for
Plan Benefits during the year...................... (5,182,308) (569,171 ) (7,503,430) 2,867,043 5,244,533
Net Assets Available for Plan Benefits at
December 31, 1993.................................. 48,252,905 7,213,556 84,960,550 153,207,807 --
----------- ----------- ------------ ------------ ----------
Net Assets Available for Plan Benefits at
December 31, 1994.......................... $43,070,597 $6,644,385 $ 77,457,120 $156,074,850 $5,244,533
========== ========== =========== =========== =========
</TABLE>
See accompanying notes.
2
<PAGE> 3
<TABLE>
<CAPTION>
GROWTH
EQUITIES INTERNATIONAL EMERGING MARKETS LONG-TERM VALUE LOAN
FUND EQUITY FUND EQUITY FUND BOND FUND EQUITY FUND FUND TOTAL
------------- ------------- ---------------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
-- -- -- -- -- -- $ 75,639,401
$11,346,461 $ 6,564,921 $8,281,240 -- -- -- 74,729,441
-- -- -- -- $7,269,675 -- 7,269,675
-- -- -- $2,510,083 -- -- 154,003,612
-- -- -- 25,772 3,802 -- 12,427,123
-- -- -- -- -- -- 14,790
-- -- -- -- -- $20,757,771 20,757,771
-- -- -- 232 19,070 -- 491,591
(13,565) (40,672) (2,778) 69,504 29,105 21,298 --
--------- -------- -------- -------- -------- --------- ----------
$11,332,896 $ 6,524,249 $8,278,462 $2,605,591 $7,321,652 $20,779,069 $345,333,404
========= ======== ======== ======== ======== ========= ==========
$ 1,717,993 $ 932,147 $1,073,194 $ 515,627 $1,020,659 -- $ 21,841,144
1,016,973 551,463 639,757 333,974 628,940 -- 14,223,146
------------- ------------- ------------- ---------- ----------- ----------- ------------
2,734,966 1,483,610 1,712,951 849,601 1,649,599 -- 36,064,290
54,489 28,316 41,182 40,657 43,185 -- 730,787
226,295 141,404 154,279 79,277 163,221 -- 2,386,700
623,393 387,977 441,438 204,290 387,851 $(9,628,603) --
4,856 2,425 2,891 (824) 18,668 1,322,395 12,100,518
-- -- 29,585 123,967 114,218 -- 3,741,092
35,449 (38,140) 75,395 (151,504) (271,268) -- (2,273,628)
8,023,587 4,723,401 6,059,727 1,570,884 5,408,286 11,656,526 --
(369,331) (204,488) (238,447) (110,581) (191,794) (634,404) (19,110,798)
(808) (256) (539) (176) (314) -- (3,530)
------------- ------------- ---------------- ---------- ----------- ----------- ------------
11,332,896 6,524,249 8,278,462 2,605,591 7,321,652 2,715,914 33,635,431
-- -- -- -- -- 18,063,155 311,697,973
------------- ------------- ---------------- ---------- ----------- ----------- ------------
$11,332,896 $ 6,524,249 $8,278,462 $2,605,591 $7,321,652 $20,779,069 $345,333,404
============ =========== ================ ========== =========== ========== ===========
</TABLE>
3
<PAGE> 4
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
STATEMENT OF ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1993
<TABLE>
<CAPTION>
S&P 500 SHORT TERM CHUBB
INDEX INCOME CORPORATION FIXED LOAN
FUND FUND STOCK FUND INCOME FUND FUND TOTAL
---------- ------------ ------------ ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investments (Notes 1 and 3):
Participation in the Master Trust Fund of
The Chubb Corporation and its Subsidiaries
and Affiliates............................ $45,424,846 $7,190,834 $82,866,228 $152,010,698 $23,916,446 $311,409,052
Contributions receivable from participants...... -- -- -- -- 288,921 288,921
Participants' transfers receivable (payable)
between
Funds......................................... 2,828,059 22,722 2,094,322 1,197,109 (6,142,212) --
----------- ---------- ----------- ------------ ----------- -----------
Net Assets Available for Plan Benefits at
December 31, 1993 (Note 4)............ $48,252,905 $7,213,556 $84,960,550 $153,207,807 $18,063,155 $311,697,973
=========== ========== =========== ============ =========== ============
</TABLE>
See accompanying notes.
4
<PAGE> 5
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 AND 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investment valuation
The Plan's assets at December 31, 1994 are held by United States Trust
Company of New York in a trust established effective January 1, 1994 for the
benefit of the participants of the Plan (the "Trust Fund").
The Plan's assets at December 31, 1993 were represented by units of
participation in the Profit Sharing division of the Master Trust Fund of The
Chubb Corporation and its Subsidiaries and Affiliates (the "Master Trust Fund").
The carrying value of the units of participation in the Master Trust Fund was
based upon the Plan's proportionate share of the total assets of the Master
Trust Fund as reported by the fund trustee, Citibank, N.A.
The Trust Fund's assets for 1994 and Master Trust Fund's assets for 1993
are valued as follows:
- Marketable equity and debt securities traded on a national securities
exchange are valued at the last reported sale price on the last
business day of the year. Such securities traded in the over-the-
counter market are valued at the closing bid price on the last
business day of the calendar year.
- Interests in commingled trust funds, mutual funds and pooled
investment funds are valued at the redemption price established by the
trustee or the investment manager of the respective fund.
- Participants' notes are valued at the unpaid principal balances, with
maturities ranging from one to ten years. Notes executed prior to
January 1, 1984, bear interest equal to the annual rate of return of
the Fixed Income Fund for the quarter preceding the quarter in which
the loan is made, not to exceed the maximum rate permitted by
applicable law. Notes executed during the period January 1, 1984
through September 30, 1989, bear interest at a rate which is one
percent less than the 90-day Treasury Bill rate as established by the
Federal Reserve Bank at its offering immediately preceding the
valuation date next preceding the valuation date on which the loan is
made, except that the rate shall not exceed the guaranteed annual rate
of return of the Fixed Income Fund for the quarter ending on the
applicable valuation date next preceding the valuation date on which
the loan is made, nor the maximum rate permitted by applicable law.
Notes executed during the period September 30, 1989 through March 20,
1994 bear interest at a rate which is equal to the prime rate charged
by Citibank, N.A. as of the applicable valuation date next preceding
the valuation date on which the loan is made, rounded up to the next
whole integer, except that the rate shall not exceed the maximum rate
permitted by applicable law. Notes executed after March 20, 1994 bear
interest at a rate which is equal to the prime rate as reported in the
Wall Street Journal on the last business day of the month next
preceding the valuation date on which the loan is made, rounded up to
the next whole integer, except that the rate shall not exceed the
maximum rate permitted by applicable law.
- The underlying investments of the Fixed Income Fund are contracts with
insurance companies and banks under which each insurance company or
bank agrees to pay a rate of interest equal to or in excess of the
rate initially guaranteed for a specified period of time. These
insurance contracts are fully benefit responsive and are valued at
contract value. Contract value represents contributions to the fund
plus interest accrued less redemptions. The interest rates for the
calendar years 1994 and 1993 were 7.1% and 7.7%. These contracts are
subject to certain restrictions or penalties in the event of early
withdrawal or liquidation.
5
<PAGE> 6
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1994 AND 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED)
Security transactions
Purchases and sales of securities are recorded on trade dates. Gains or
losses on the sale of securities are based on average cost.
Dividend income is recorded on the ex-dividend date. Interest income is
recorded on an accrual basis.
Administrative and investment management expenses
All expenses related to the administration of the Plan and all fees paid to
the trustee and other investment managers for the management of the Plan's
investments, except for investment management expenses attributable to a certain
Fixed Income Fund investment contract, are paid by The Chubb Corporation, Chubb
& Son Inc. and Participating Affiliates (the "Employers"). The Pension and
Profit Sharing Committee of The Chubb Corporation is authorized to charge
Participants account maintenance fees.
Beginning in March 1995, certain trustee fees are being paid by the Plan.
Income tax status
The Internal Revenue Service ("IRS") has determined and informed the
Company by letter dated December 11, 1986 that the Plan qualifies under Section
401(a) of the Internal Revenue Code ("IRC"), and therefore the trust established
under the Plan is tax-exempt. The Plan has been amended since receiving the
determination letter and an application for a new determination letter has been
filed with the IRS. The Plan administrator and its counsel believe that the Plan
is currently designed and being operated in compliance with applicable
requirements of the IRC.
2. PLAN DESCRIPTION
The Plan is a defined contribution plan. Generally, each employee is
eligible to participate in the Plan either upon the completion of one year of
service and the attainment of age 21 or the completion of two years of service.
Under the Plan, a participant may elect to have part of his or her salary
otherwise due from the Employer contributed to the Plan by such Employer on a
pre-tax basis (the employer pay conversion contribution) or after tax basis
(participant contribution). The Plan is funded on a bi-weekly basis. Pre-tax
contributions are subject to an annual limitation, $9,240 in 1994 and $8,994 in
1993, which may be increased annually based on the Consumer Price Index. A
participant's pre-tax pay conversion contributions are matched dollar for dollar
up to the first 4% of compensation (the employer matching contribution). In
addition, employees may make rollover contributions from other qualified plans.
The Plan allows each participant the option of investing his or her own
contribution and his or her share of the employer's matching contribution in
several investment funds. Effective March 31, 1994, six additional investment
funds were added to the Plan. Participants may, subject to limitations, transfer
their investments between funds at their own request. The investments of the
individual funds are managed by several outside investment managers, subject to
the Plan's guidelines. Chubb Equity Managers, Inc., a subsidiary of the Chubb
Corporation, is the investment manager of the Value Equity Fund.
A separate account is maintained for each participant. Each participant
employed prior to December 31, 1992 has a 100% vested nonforfeitable interest in
all units credited to his or her account. A participant hired after December 31,
1992 is required to complete five years of service in order to have a 100%
vested nonforfeitable interest in units credited to his or her account
attributable to the employer matching
6
<PAGE> 7
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1994 AND 1993
2. PLAN DESCRIPTION -- (CONTINUED)
contribution and earnings on the employer matching contribution. Service with
affiliated non-participating companies is considered in calculating vesting and
participation service. Forfeited balances of terminated participants nonvested
accounts are used to reduce future company contributions or pay plan expenses.
A participant may withdraw any amount which does not exceed the aggregate
current value of his or her own contributions, subject to certain limitations.
In the event of financial hardship, there are provisions, subject to limitations
and penalties, which will permit an active participant to withdraw certain other
amounts from his or her account. All withdrawals must be in cash.
Participants may obtain loans from the Plan pursuant to the provisions
specified in the Plan. A participant to whom a loan is to be made must cancel an
appropriate number of his or her units in one or more of the other funds for
transfer to the Loan Fund. Loans are payable in equal installments representing
a combination of interest and principal by withholding from the participant's
biweekly paychecks, and the outstanding principal amounts of any loans can be
prepaid on any applicable valuation date. In the event a participant has a loan
outstanding under the Plan, various limitations exist on such participant's
rights to receive further loans under the Plan and to receive payments in case
of hardship in excess of a specified amount. The Employers retain the right to
place a maximum on the aggregate amount of loans in order to avoid reducing the
rate of return on investments in the Plan.
Upon retirement, the balance in a participant's account is payable to him
or her in a lump sum or in annual installments over 5, 10 or 15 years or over a
period equal to his or her life expectancy or to the joint life expectancies of
the participant and his or her spousal beneficiary. In addition to these
options, a participant may elect to defer the lump sum payment or the
commencement of annual installments until the day following any applicable
valuation date, then elected by him or her, which is not later than the April 1
of the calendar year following the calendar year in which the participant
attains age 70 1/2. In the event of termination of employment other than by
reason of retirement or death, a participant will receive the balance in his or
her separate account in a lump sum payment. However, if the value in the
participant's account is greater than a certain limit, the participant may
choose either to receive the lump sum distribution or to leave the units
invested in the Plan until age 65, disability or death. If a participant dies,
before or after retirement or after termination, any remaining balance in his or
her account is paid to his or her estate or beneficiary under any of the
following payment options: (a) lump sum, (b) installments as received by the
participant prior to death, or (c) installment payments in accordance with the
Plan, regardless of method received by participant prior to death.
Upon request, any lump sum distribution to a participant or his or her
beneficiary from The Chubb Corporation Stock Fund may be made in common stock of
The Chubb Corporation in lieu of cash payments.
While the Employers have not expressed any intent to terminate the Plan,
they are free to do so at any time subject to the provisions of ERISA. In the
event of such a termination, each affected participant is entitled to receive
the value of his or her account.
3. INVESTMENTS
The Trust Fund is managed by United States Trust Company of New York (the
"Trustee"), a fiduciary with respect to the Plan under an agreement with the
Employers. The Trust Fund's assets are held or accounted for by the Trustee
under a trust agreement. The Trustee and certain investment managers have full
7
<PAGE> 8
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1994 AND 1993
3. INVESTMENTS -- (CONTINUED)
discretionary authority for the purchase and sale of investments subject to
certain limitations on the composition of the portfolio as specified in the
trust agreement.
The following table presents the investments of the Trust Fund. Investments
that individually represent 5 percent or more of the Plan's net assets are
separately identified.
<TABLE>
<CAPTION>
DECEMBER 31, 1994
-----------------------------
COST FAIR VALUE
------------ ------------
<S> <C> <C>
Fixed Income Securities
Investments in Insurance and Bank Contracts................... $151,493,529 $151,493,529
Bond Mutual Fund.............................................. 2,655,980 2,510,083
------------ ------------
Subtotal.............................................. $154,149,509 $154,003,612
------------ ------------
The Chubb Corporation Common Stock.............................. $ 46,782,880 $ 75,639,401
------------ ------------
Investments in Equities......................................... $ 7,675,519 $ 7,269,675
------------ ------------
Mutual Funds
BT Institutional Equity 500 Index Fund........................ $ 44,394,208 $ 43,266,526
Other......................................................... 31,572,664 31,462,915
------------ ------------
Subtotal.............................................. $ 75,966,872 $ 74,729,441
------------ ------------
Pooled Investments.............................................. $ 12,436,318 $ 12,441,913
------------ ------------
Participant Loans (maturing from January 1995 to December 2004
with interest rates from 4.25% to 16.0%)...................... $ 20,757,771 $ 20,757,771
------------ ------------
TOTAL................................................. $317,768,869 $344,841,813
=========== ===========
</TABLE>
The Master Trust Fund was a commingled investment trust account managed by
Citibank, N.A. (the "Bank"), a bank as defined in the Investment Advisers Act of
1940 and a fiduciary with respect to the Plan under an agreement with the
Employers. The Master Trust Fund's assets are held by the Bank under a trust
agreement. The Bank and certain investment managers have full discretionary
authority for the purchase and sale of investments subject to certain
limitations on the composition of the portfolio as specified in the Master Trust
Agreement. Investments with a fair value of $12,427,123 (cost of $12,427,123) at
December 31, 1994 represent shares in Pooled Investments sponsored by the
Trustee, a party-in-interest.
All Plan investments owned by the Master Trust Fund at December 31, 1993
are summarized as follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1993
---------------------------
COST FAIR VALUE
----------- -----------
<S> <C> <C>
Loan Fund:
Commingled employee benefit trust short term investment
fund..................................................... $ 7,582,140 $ 7,582,140
Participants' interest bearing notes -- principal balance... 16,325,786 16,325,786
Accrued interest............................................ 8,520 8,520
----------- -----------
Sub-total................................................... $23,916,446 $23,916,446
----------- -----------
</TABLE>
8
<PAGE> 9
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1994 AND 1993
3. INVESTMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1993
---------------------------
COST FAIR VALUE
----------- -----------
<S> <C> <C>
Fixed Income Fund:
Commingled employee benefit trust short term investment
fund..................................................... $ 34,714 $ 34,714
Guaranteed interest fund.................................... 151,975,937 151,975,937
Accrued interest............................................ 47 47
----------- -----------
Sub-total................................................... $152,010,698 $152,010,698
----------- -----------
S&P 500 Index Fund:
Commingled employee benefit trust short term investment
fund..................................................... $ 2,011 $ 2,011
Other commingled trust funds................................ 29,325,890 45,422,827
Accrued dividends and interest.............................. 8 8
----------- -----------
Sub-total $29,327,909 $45,424,846..
----------- -----------
Short Term Income Fund:
Commingled employee benefit trust short term investment
fund..................................................... $ 7,180,769 $ 7,180,769
Accrued interest............................................ 10,065 10,065
----------- -----------
Sub-total................................................... $ 7,190,834 $ 7,190,834
----------- -----------
Chubb Corporation Stock Fund:
Commingled employee benefit trust short term investment
fund..................................................... $ 118 $ 118
The Chubb Corporation Common Stock.......................... 50,071,000 82,411,063
Accrued dividends and interest.............................. 455,047 455,047
----------- -----------
Sub-total................................................... $50,526,165 $82,866,228
----------- -----------
Total.................................................... $262,972,052 $311,409,052
=========== ===========
</TABLE>
The Plan is required to file annual reports with the Department of Labor on
Form 5500, in which a different investment cost basis is used to record realized
and unrealized gains and losses as compared to generally accepted accounting
principles.
4. UNITS OF PARTICIPATION AND VALUES
The interest of an employee in the investment chosen is represented by
units of participation. The number and value of units at the quarterly valuation
dates for the years ended December 31, 1994 and 1993 were as follows:
<TABLE>
<CAPTION>
NUMBER OF NUMBER OF
UNITS NET ASSET UNITS NET ASSET
HELD BY VALUE HELD BY VALUE
PARTICIPANTS PER UNIT PARTICIPANTS PER UNIT
------------- ---------- ------------- ----------
DECEMBER 31, 1994 DECEMBER 31, 1993
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund............................................... 244,249.916 175.59467 278,705.646 173.13214
Short Term Income Fund........................................... 71,289.730 92.75478 80,745.230 89.33724
Chubb Corporation Stock Fund..................................... 193,872.418 398.23526 217,480.813 390.65768
Fixed Income Fund................................................ 3,164,973.450 49.08706 3,343,851.969 45.81776
Balanced Fund.................................................... 501,615.853 10.27100 -- --
Growth Equities Fund............................................. 1,126,924.695 10.05648 -- --
International Equity Fund........................................ 643,836.525 10.13339 -- --
Emerging Markets Equity Fund..................................... 764,713.240 10.82558 -- --
Long-term Bond Fund.............................................. 263,555.695 9.88630 -- --
Value Equity Fund................................................ 744,477.879 9.83462 -- --
</TABLE>
9
<PAGE> 10
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1994 AND 1993
4. UNITS OF PARTICIPATION AND VALUES -- (CONTINUED)
<TABLE>
<CAPTION>
NUMBER OF NUMBER OF
UNITS NET ASSET UNITS NET ASSET
HELD BY VALUE HELD BY VALUE
PARTICIPANTS PER UNIT PARTICIPANTS PER UNIT
------------- ---------- ------------- ----------
SEPTEMBER 30, 1994 SEPTEMBER 30, 1993
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund............................................... 243,073.037 175.41813 262,344.628 169.07857
Short Term Income Fund........................................... 71,763.765 91.65169 80,479.654 88.56631
Chubb Corporation Stock Fund..................................... 195,298.651 364.28714 212,111.125 420.11038
Fixed Income Fund................................................ 3,142,450.511 48.27128 3,249,258.163 45.02240
Balanced Fund.................................................... 503,397.117 10.25321 -- --
Growth Equities Fund............................................. 1,022,088.561 10.15275 -- --
International Equity Fund........................................ 577,883.927 10.34244 -- --
Emerging Markets Equity Fund..................................... 602,938.228 11.74300 -- --
Long-term Bond Fund.............................................. 241,972.018 9.90219 -- --
Value Equity Fund................................................ 712,829.163 10.18937 -- --
</TABLE>
<TABLE>
<CAPTION>
JUNE 30, 1994 JUNE 30, 1993
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund............................................... 244,881.919 167.36232 253,192.945 164.83713
Short Term Income Fund........................................... 73,221.613 90.73606 79,660.920 87.82657
Chubb Corporation Stock Fund..................................... 195,042.393 389.46505 208,338.380 431.64504
Fixed Income Fund................................................ 3,164,165.966 47.44257 3,192,343.998 44.13235
Balanced Fund.................................................... 474,891.580 9.96839 -- --
Growth Equities Fund............................................. 969,625.731 9.67457 -- --
International Equity Fund........................................ 486,037.774 10.21187 -- --
Emerging Markets Equity Fund..................................... 483,622.384 10.60594 -- --
Long-term Bond Fund.............................................. 242,277.839 9.89120 -- --
Value Equity Fund................................................ 644,636.766 9.88052 -- --
</TABLE>
<TABLE>
<CAPTION>
MARCH 31, 1994 MARCH 31, 1993
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund............................................... 251,570.210 166.69110 252,143.350 163.84696
Short Term Income Fund........................................... 72,875.001 89.97513 82,329.724 87.15872
Chubb Corporation Stock Fund..................................... 197,705.294 369.60422 201,173.466 465.11892
Fixed Income Fund................................................ 3,266,497.892 46.64270 3,221,217.901 43.30116
Balanced Fund.................................................... 401,651.822 10.00000 -- --
Growth Equities Fund............................................. 717,534.049 10.00000 -- --
International Equity Fund........................................ 353,664.738 10.00000 -- --
Emerging Markets Equity Fund..................................... 335,486.164 10.00000 -- --
Long-term Bond Fund.............................................. 187,190.755 10.00000 -- --
Value Equity Fund................................................ 506,147.059 10.00000 -- --
</TABLE>
5. FUND BALANCES DUE PARTICIPANTS
Amounts allocated to accounts of Participants who have withdrawn from
participation in the Plan at December 31, 1994 were as follows:
<TABLE>
<S> <C>
S&P 500 Index Fund........................................... $ 181,613
Short Term Income Fund....................................... 31,921
Chubb Corporation Stock Fund................................. 250,288
Fixed Income Fund............................................ 715,595
----------
Total.............................................. $1,179,417
=========
</TABLE>
For the purpose of preparing the Plan's Form 5500, the Department of Labor
Rules and Regulations require that these amounts be reported as liabilities.
Distributions to Participants on Form 5500 also differ for this reason.
10
<PAGE> 11
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
ITEM 27A -- ASSETS HELD FOR INVESTMENT
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
UNITS CONTRACT OR
SECURITY DESCRIPTION OR SHARES COST FAIR VALUE
- ---------------------------------------------------- ------------- ------------ ------------
<S> <C> <C> <C>
Fixed Income Securities
CNA Insurance Company............................. 1 $ 11,213,329 $ 11,213,329
Contract #13027, due in equal maturities on
9/30/99 and 12/31/99, at 7.83%
Commonwealth Life Insurance Company............... 1 11,214,918 11,214,918
Contract #ADA00674FR, due in equal maturities
on 9/30/99 and 12/31/99, at 7.89%
Allstate Life Insurance Company................... 1 10,320,879 10,320,879
Contract #4833, due in equal maturities on
3/31/95 and 9/30/95, at 9.11%
Hartford Life Insurance Company................... 1 8,515,679 8,515,679
Contract #GA9655, due in equal maturities on
3/31/98, 6/30/98, 9/30/98 and 12/31/98, at
5.92%
Hartford Life Insurance Company................... 1 11,708,168 11,708,168
Contract #GA9534, due 9/30/97, at 5.77%
John Hancock Life Insurance Company............... 1 7,488,022 7,488,022
Contract #5715, due 3/31/95, at 8.91%
JP Morgan Asset Management........................ 1 15,248,828 15,248,828
Contract #2015, due 9/30/96, at 6.90%
JP Morgan Asset Management........................ 1 15,237,912 15,237,912
Contract #2033, due in equal maturities on
3/31/96 and 3/31/97, at 6.59%
Pacific Mutual Life Insurance Company............. 1 7,946,744 7,946,744
Contract #G25863.01, due 9/30/95, at 8.25%
Provident National Assurance Company.............. 1 864,192 864,192
Contract #027-04079, due in equal maturities on
10/1/95 and 10/1/96, at 8.75%
Provident National Assurance Company.............. 1 8,521,364 8,521,364
Contract #627-05490, due in equal maturities on
3/31/98, 6/30/98, 9/30/98 and 12/31/98, at
5.97%
Prudential Asset Management....................... 1 7,631,116 7,631,116
Contract #6529-212, due in equal maturities on
3/31/98, 6/30/98, 9/30/98 and 12/31/98, at
6.04%
Principal Mutual Life Insurance Company........... 1 7,073,285 7,073,285
Contract #S-15670, due 3/31/95, at 8.20%
Prudential Asset Management....................... 1 13,829,930 13,829,930
Contract #6529-213, due in equal maturities on
3/31/98, 6/30/98, 9/30/98 and 12/31/98, at
5.37%
Pacific Mutual Life Insurance Company............. 1 8,511,178 8,511,178
Contract #G25863.02, due in equal maturities on
3/31/98, 6/30/98, 9/30/98 and 12/31/98, at
5.90%
</TABLE>
11
<PAGE> 12
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES -- (CONTINUED)
ITEM 27A -- ASSETS HELD FOR INVESTMENT
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
UNITS CONTRACT OR
SECURITY DESCRIPTION OR SHARES COST FAIR VALUE
- ---------------------------------------------------- ------------- ------------ ------------
<S> <C> <C> <C>
Pacific Mutual Life Insurance Company............. 1 $ 6,167,985 $ 6,167,985
Contract #G25863.03, due 6/30/99, at 7.34%
MAS Funds Fixed Income Portfolio.................. 237,023.91 2,655,980 2,510,083
------------ ------------
Subtotal....................................... $154,149,509 $154,003,612
------------ ------------
The Chubb Corporation Common Stock.................. 977,569 $ 46,782,880 $ 75,639,401
------------ ------------
Investments In Equities (Common stock unless
otherwise noted)
American Home Products Corp....................... 3,700 $ 214,357 $ 232,175
Anheuser Busch Cos Inc............................ 3,900 204,520 198,413
Avnet Inc......................................... 5,900 221,672 218,300
Baxter International Inc.......................... 7,200 166,129 203,400
Berkley W R Corp.................................. 5,500 199,604 206,250
Boeing Co......................................... 3,900 177,876 183,300
Burlington Industries Inc......................... 21,900 285,560 216,263
Burlington Northern Inc........................... 3,000 150,414 144,375
Chrysler Corp..................................... 5,000 242,863 245,000
Compaq Computer Corp.............................. 6,000 201,825 237,000
Cummins Engine Co Inc. ........................... 4,500 222,436 203,625
E Systems Inc..................................... 5,200 222,234 216,450
Exxon Corp........................................ 3,500 204,592 212,625
Fingerhut Cos Inc. ............................... 9,200 262,883 142,600
First Chicago Corp................................ 3,900 189,672 186,225
Firstfed Michigan Corp............................ 10,300 238,082 211,150
Fleet Mortgage Group Inc.......................... 13,300 174,615 264,338
General Motors Corp............................... 4,100 230,496 172,713
General Motors Corp Class H....................... 5,800 200,694 202,275
Inco Ltd.......................................... 7,600 208,843 217,550
K Mart Corp....................................... 15,200 253,601 197,600
Keycorp........................................... 8,600 250,709 215,000
Mellon Bank Corp.................................. 6,600 239,107 202,125
Merrill Lynch & Co Inc............................ 4,300 153,214 153,725
National Health Laboratories Holdings Inc......... 17,700 227,391 234,523
Offshore Logistics Inc............................ 16,900 232,708 219,700
Old Republic International Corp................... 9,300 210,471 197,625
Owens Corning Fiberglass Corp..................... 6,000 207,799 191,250
Paine Webber Group Inc............................ 12,300 204,945 184,500
Philip Morris Cos Inc............................. 3,800 195,122 218,500
Polaroid Corp..................................... 6,100 197,297 198,250
Progressive Corp Ohio............................. 5,600 165,334 196,000
Sothebys Holdings Inc Class A..................... 17,000 253,307 195,500
</TABLE>
12
<PAGE> 13
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES -- (CONTINUED)
ITEM 27A -- ASSETS HELD FOR INVESTMENT
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF
UNITS CONTRACT OR
SECURITY DESCRIPTION OR SHARES COST FAIR VALUE
- ---------------------------------------------------- ------------- ------------ ------------
<S> <C> <C> <C>
Telefonos de Mexico S.A. de C.V. ................. 3,300 $ 190,003 $ 135,300
Toll Bros Inc..................................... 20,500 263,275 205,000
Whirlpool Corp.................................... 4,200 211,869 211,050
------------ ------------
Subtotal....................................... $ 7,675,519 $ 7,269,675
------------ ------------
Mutual Funds
World Funds Inc Newport Tiger Fund................ 766,781.50 $ 8,311,270 $ 8,281,240
BT Institutional 500 Index Fund................... 4,144,303.29 44,394,208 43,266,526
Columbia Balance Fund............................. 304,993.81 5,294,943 5,270,293
Fidelity Contrafund Fund.......................... 374,718.00 11,350,600 11,346,461
Morgan Stanley Institutional Fund, Inc.-Active
Country Allocation Fund........................ 563,996.64 6,615,851 6,564,921
------------ ------------
Subtotal....................................... $ 75,966,872 $ 74,729,441
------------ ------------
Pooled Investments
EGSF Venture Capital-Citibank Fund................ 28.07 $ 9,195 $ 14,790
UST Master Government Money Fund.................. 12,427,123.00 12,427,123 12,427,123
------------ ------------
Subtotal....................................... $ 12,436,318 $ 12,441,913
------------ ------------
Participant Loans (Maturities January 1995 to
December 2004, Rates 4.25% to 16%)................ 20,757,771.00 $ 20,757,771 $ 20,757,771
------------ ------------
TOTAL........................................ $317,768,869 $344,841,813
=========== ===========
</TABLE>
13
<PAGE> 14
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
ITEM 27D -- SCHEDULE OF REPORTABLE TRANSACTIONS
DECEMBER 31, 1994
<TABLE>
<CAPTION>
SALE OR COST OF NET
NUMBER OF PURCHASE REDEMPTION ASSETS GAIN
TRANSACTIONS PRICE PRICE SOLD (LOSS)
------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Category (i) -- individual
transactions in excess of 5% of
plan assets:
BT Pyramid Equity Index Fund... 1 -- $45,678,486 $29,310,945 $16,367,541
Category (iii) -- Series of
transactions in excess of 5% of
plan assets:
UST Master Government Money
Fund........................ 1,077 $77,229,637 $64,802,514 $64,802,514 --
Units of Participation in
United States Trust Short
Term Fixed Income Fund...... 59 $38,116,897 $38,116,897 $38,116,897 --
Participant Loans.............. 278 $15,372,372 $11,558,263 $11,558,263 --
BT Institutional Equity 500
Index Fund.................. 208 $52,976,421 $ 8,356,473 $ 8,582,213 $ (225,740)
CNA Insurance Co
Contract #12386(A) and
(B)......................... 21 $ 1,132,455 $24,589,135 $24,589,135 --
</TABLE>
There were no category (ii) or (iv) reportable transactions during 1994.
14
<PAGE> 15
REPORT OF INDEPENDENT AUDITORS
The Pension and Profit Sharing Committee
Capital Accumulation Plan of The Chubb Corporation,
Chubb & Son Inc. and Participating Affiliates
We have audited the accompanying statements of Net Assets Available for
Plan Benefits of the Capital Accumulation Plan of The Chubb Corporation, Chubb &
Son Inc. and Participating Affiliates as of December 31, 1994 and 1993, and the
related Statement of Changes in Net Assets Available for Plan Benefits for the
year ended December 31, 1994. These financial statements are the responsibility
of the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the Net Assets Available for Plan Benefits of the
Capital Accumulation Plan of The Chubb Corporation, Chubb & Son Inc. and
Participating Affiliates at December 31, 1994 and 1993 and the Changes in its
Net Assets Available for Plan Benefits for the year ended December 31, 1994, in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of December 31, 1994, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The Fund Information in
the Statement of Net Assets Available for Plan Benefits and the Statement of
Changes in Net Assets Available for Plan Benefits is presented for purposes of
additional analysis rather than to present the net assets available for plan
benefits and changes in net assets available for plan benefits of each fund. The
supplemental schedules and Fund Information have been subjected to the auditing
procedures applied in our audits of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
ERNST & YOUNG LLP
New York, New York
June 16, 1995
------------------------
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements
(Form S-8:
No. 33-12208, No. 33-29185, No. 33-30020, No. 33-49230 and No. 33-49232)
pertaining to the Capital Accumulation Plan of The Chubb Corporation, Chubb &
Son Inc. and Participating Affiliates and in the related Prospectuses of our
report dated June 16, 1995 with respect to the financial statements and
schedules of the Capital Accumulation Plan of The Chubb Corporation, Chubb & Son
Inc. and Participating Affiliates included in this Annual Report (Form 11-K) for
the year ended December 31, 1994.
ERNST & YOUNG LLP
New York, New York
June 26, 1995
15
<PAGE> 16
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
PENSION AND PROFIT SHARING COMMITTEE OF THE CAPITAL ACCUMULATION PLAN OF THE
CHUBB CORPORATION, CHUBB & SON INC. AND PARTICIPATING AFFILIATES HAS DULY CAUSED
THIS ANNUAL REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED.
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC. and
PARTICIPATING AFFILIATES
By: /s/ Donald B. Lawson
----------------------------------------
DONALD B. LAWSON, A MEMBER
OF THE PENSION AND PROFIT SHARING
COMMITTEE
Dated: June 27, 1995
