<PAGE> 1
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 7, 1996
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 1995
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, 1995
<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 at fair value
(Note 1 and 3)
Common Stock of Chubb
Corporation................... -- -- $89,391,679 -- --
Mutual Funds.................... $63,796,051 -- -- $10,133,705
Investment in Equities.......... -- -- -- -- --
Fixed Income Securities......... -- -- -- $162,189,730 --
Pooled Investments:
US Government Money
Market Fund................. -- $7,456,738 2,046,323 2,145,931 --
EGSF Venture Capital Fund..... 10,514 -- -- -- --
Participant Loans............... -- -- -- -- --
Accrued Income.................... -- 30,749 459,186 (45,950) --
Participants' transfers receivable
(payable) between Funds........ (231,950) (107,217 ) (224,350 ) (6,922) 31,046
----------- ---------- ------------ ------------ -----------
Net Assets Available for Plan
Benefits at December 31,
1995 (Note 4)............... $63,574,615 $7,380,270 $91,672,838 $164,282,789 $10,164,751
=========== ========== ============ ============ ===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C> <C> <C> <C> <C>
Contributions
Employers:
Pay conversion................ $ 3,137,990 $ 454,724 $ 4,187,695 $ 7,438,923 $ 920,454
Matching...................... 2,019,310 326,360 2,783,008 4,929,824 559,180
----------- ---------- ------------ ------------ -----------
Total employers........... 5,157,300 781,084 6,970,703 12,368,747 1,479,634
Participants.................... 80,606 7,151 108,851 320,587 32,935
Rollovers....................... 493,512 278,556 764,303 1,536,937 234,484
Loan repayments................... 1,506,088 265,290 2,528,116 4,305,973 399,951
Interest.......................... 116 368,120 70,419 10,549,464 --
Dividends......................... 1,422,998 -- 1,888,103 -- 462,030
Net appreciation/(depreciation) in
fair value of assets............ 15,243,386 -- 18,829,485 -- 1,211,256
Participants' transfer
between Funds................... 913,226 (117,507) (10,104,805) (7,717,299) 1,518,480
Distributions to participants..... (4,297,317) (846,061) (6,828,565) (13,129,550) (406,585)
Forfeitures....................... (15,897) (748) (10,892) (26,920) (11,967)
----------- ---------- ------------ ------------ -----------
Increase in Net Assets
Available for Plan Benefits
during the year................. 20,504,018 735,885 14,215,718 8,207,939 4,920,218
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
----------- ---------- ------------ ------------ -----------
Net Assets Available for
Plan Benefits at
December 31, 1995
(Note 4)................ $63,574,615 $7,380,270 $ 91,672,838 $164,282,789 $10,164,751
=========== ========== ============ ============ ===========
</TABLE>
See accompanying notes.
2
<PAGE> 3
<TABLE>
<CAPTION>
GROWTH EMERGING
EQUITIES INTERNATIONAL MARKETS LONG-TERM VALUE PARTICIPANT TOTAL
FUND EQUITY FUND EQUITY FUND BOND FUND EQUITY FUND LOANS ALL FUNDS
---------- ------------- ----------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value
(Note 1 and 3)
Common Stock of Chubb
Corporation................... -- -- -- -- -- -- $ 89,391,679
Mutual Funds.................... $22,389,725 $7,393,606 $10,166,707 -- -- 113,879,794
Investment in Equities.......... -- -- -- -- $11,066,364 -- 11,066,364
Fixed Income Securities......... -- -- -- $5,160,791 -- -- 167,350,521
Pooled Investments:
US Government Money
Market Fund................. -- -- -- 52,144 2,720,971 -- 14,422,107
EGSF Venture Capital Fund..... -- -- -- -- -- -- 10,514
Participant Loans............... -- -- -- -- -- $22,375,827 22,375,827
Accrued Income.................... -- -- -- 194 33,482 -- 477,661
Participants' transfers receivable
(payable) between Funds........ 178,016 82,853 141,206 (33,454 156,572 14,200 --
----------- ---------- ----------- ---------- ----------- ----------- ------------
Net Assets Available for Plan
Benefits at December 31,
1995 (Note 4)............... $22,567,741 $7,476,459 $10,307,913 $5,179,675 $13,977,389 $22,390,027 $418,974,467
=========== ========== =========== ========== =========== =========== ============
Contributions
Employers:
Pay conversion................ $ 2,328,669 $1,064,653 $ 1,429,511 $ 616,428 $ 1,339,008 -- $ 22,918,055
Matching...................... 1,373,532 632,162 852,226 391,935 809,929 -- 14,677,466
----------- ---------- ----------- ---------- ----------- ------------ ------------
Total employers........... 3,702,201 1,696,815 2,281,737 1,008,363 2,148,937 -- 37,595,521
Participants.................... 70,015 38,693 53,946 32,692 39,711 -- 785,187
Rollovers....................... 477,628 159,609 169,691 216,884 240,741 -- 4,572,345
Loan repayments................... 870,593 450,039 638,255 244,934 559,179 $(11,768,418) --
Interest.......................... -- -- 754 2,232 67,195 1,662,379 12,720,679
Dividends......................... 1,381,477 214,597 83,878 286,161 196,263 -- 5,935,507
Net appreciation/(depreciation) in
fair value of assets............ 3,357,721 488,050 1,183,506 336,701 2,575,462 -- 43,225,567
Participants' transfer
between Funds................... 2,686,527 (1,526,384) (1,493,821) 695,539 1,671,227 13,474,816 --
Distributions to participants..... (1,286,283) (560,897) (877,572) (242,240) (831,323) (1,757,819) (31,064,212)
Forfeitures....................... (25,034) (8,312) (10,923) (7,182) (11,655) -- (129,529)
----------- ---------- ----------- ---------- ----------- ------------ ------------
Increase in Net Assets
Available for Plan Benefits
during the year................. 11,234,845 952,210 2,029,451 2,574,084 6,655,737 1,610,958 73,641,063
Net Assets Available for Plan
Benefits at December 31, 1994... 11,332,896 6,524,249 8,278,462 2,605,591 7,321,652 20,779,069 345,333,404
----------- ---------- ----------- ---------- ----------- ------------ ------------
Net Assets Available for
Plan Benefits at
December 31, 1995
(Note 4)................ $22,567,741 $7,476,459 $10,307,913 $5,179,675 $13,977,389 $ 22,390,027 $418,974,467
=========== ========== =========== ========== =========== ============ ============
</TABLE>
3
<PAGE> 4
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 Securi-
ties.................. -- -- -- $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>
See accompanying notes.
4
<PAGE> 5
<TABLE>
<CAPTION>
GROWTH
EQUITIES INTERNATIONAL EMERGING MARKETS LONG-TERM VALUE PARTICIPANT TOTAL
FUND EQUITY FUND EQUITY FUND BOND FUND EQUITY FUND LOANS ALL FUNDS
------------- ------------- ---------------- ---------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments (Notes 1
and 3)
Common Stock of Chubb
Corporation......... -- -- -- -- -- -- $ 75,639,401
Mutual Funds............ $11,346,461 $ 6,564,921 $8,281,240 -- -- -- 74,729,441
Investment in Equities.. -- -- -- -- $7,269,675 -- 7,269,675
Fixed Income Securi-
ties.................. -- -- -- $2,510,083 -- -- 154,003,612
Pooled Investments:
US Government Money
Market Fund......... -- -- -- 25,772 3,802 -- 12,427,123
EGSF Venture Capital
Fund................ -- -- -- -- -- -- 14,790
Participant Loans....... -- -- -- -- -- $ 20,757,771 20,757,771
Accrued Income............ -- -- -- 232 19,070 -- 491,591
Participants' transfers
receivable (payable)
between Funds........... (13,565) (40,672) (2,778) 69,504 29,105 21,298 --
-------- -------- -------- -------- -------- --------- ----------
Net Assets Available
for Plan Benefits
at December 31,
1994 (Note 4)....... $11,332,896 $ 6,524,249 $8,278,462 $2,605,591 $7,321,652 $ 20,779,069 $345,333,404
========== ========= ========= ========= ========= ========== ===========
</TABLE>
5
<PAGE> 6
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 AND 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investment valuation
The Plan's assets at December 31, 1995 are held by The Chase Manhattan
Bank, N.A., as successor trustee to United States Trust Company of New York, and
at December 31, 1994 by the 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 Trust Fund's assets 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 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 1995 and 1994 were 6.8% and 7.1%, respectively. These
contracts are subject to certain restrictions or penalties in the
event of early withdrawal or liquidation.
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.
6
<PAGE> 7
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1995 AND 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED)
Administrative and investment management expenses
Prior to March 1995, 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, were paid by
The Chubb Corporation, Chubb & Son Inc. and Participating Affiliates (the
"Employers"). The 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 22, 1995 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 administrator and its counsel believe
that the Plan is currently designed and being operated in compliance with
applicable requirements of the IRC.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
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 of $9,240 in 1995 and 1994,
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. Participants may, subject to limitations, transfer
their investments between funds at their own request. Generally, 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 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.
7
<PAGE> 8
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1995 AND 1994
2. PLAN DESCRIPTION -- (CONTINUED)
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. 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.
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 The Chase Manhattan Bank, N.A. (the "Trustee")
successor to the United States Trust Company of New York, 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 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.
8
<PAGE> 9
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1995 AND 1994
3. INVESTMENTS -- (CONTINUED)
The following table presents investments. Investments that represent 5
percent or more of the Plan's net assets are separately identified.
<TABLE>
<CAPTION>
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------------------ ------------------------------
COST FAIR VALUE COST FAIR VALUE
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Fixed Income Securities
Investments in Insurance and
Bank Contracts............... $162,189,730 $162,189,730 $151,493,529 $151,493,529
Bond Mutual Fund................ 4,971,306 5,160,791 2,655,980 2,510,083
------------ ------------ ------------ ------------
Subtotal................ $167,161,036 $167,350,521 $154,149,509 $154,003,612
------------ ------------ ------------ ------------
The Chubb Corporation Common
Stock........................... $ 45,457,913 $ 89,391,679 $ 46,782,880 $ 75,639,401
------------ ------------ ------------ ------------
Investments in Equities........... $ 9,133,873 $ 11,066,364 $ 7,675,519 $ 7,269,675
------------ ------------ ------------ ------------
Mutual Funds
BT Institutional Equity 500
Index Fund................... $ 50,088,492 $ 63,796,051 $ 44,394,208 $ 43,266,526
Fidelity Contrafund Fund........ 19,497,910 22,389,725 11,350,600 11,346,461
Other........................... 25,532,276 27,694,018 20,222,064 20,116,454
------------ ------------ ------------ ------------
Subtotal................ $ 95,118,678 $113,879,794 $ 75,966,872 $ 74,729,441
------------ ------------ ------------ ------------
Pooled Investments................ $ 14,427,859 $ 14,432,621 $ 12,436,318 $ 12,441,913
------------ ------------ ------------ ------------
Participant Loans (maturing from
January 1996 to December 2005
with interest rates from 4.25%
to 16.0%)....................... $ 22,375,827 $ 22,375,827 $ 20,757,771 $ 20,757,771
------------ ------------ ------------ ------------
TOTAL................... $353,675,186 $418,496,806 $317,768,869 $344,841,814
============ ============ ============ ============
</TABLE>
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, 1995 and 1994 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, 1995 DECEMBER 31, 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund.............................................. 262,671.312 $241.55963 244,249.916 $175.59467
Short Term Income Fund.......................................... 75,365.722 97.87620 71,289.730 92.75478
Chubb Corporation Stock Fund.................................... 180,128.394 508.38552 193,872.418 398.23526
Fixed Income Fund............................................... 3,128,068.438 52.40959 3,164,973.450 49.08706
Balanced Fund................................................... 791,330.504 12.84390 501,615.853 10.27100
Growth Equities Fund............................................ 1,646,639.488 13.70492 1,126,924.695 10.05648
International Equity Fund....................................... 666,918.376 11.21024 643,836.525 10.13339
Emerging Markets Equity Fund.................................... 819,519.843 12.57704 764,713.240 10.82558
Long-term Bond Fund............................................. 441,339.041 11.73548 263,555.695 9.88630
Value Equity Fund............................................... 1,061,166.088 13.17136 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, 1995 AND 1994
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, 1995 SEPTEMBER 30, 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund.............................................. 259,095.065 $227.73097 243,073.037 $175.41813
Short Term Income Fund.......................................... 71,208.543 96.60042 71,763.765 91.65169
Chubb Corporation Stock Fund.................................... 181,793.302 501.70262 195,298.651 364.28714
Fixed Income Fund............................................... 3,156,387.532 51.58134 3,142,450.511 48.27128
Balanced Fund................................................... 731,150.835 12.20843 503,397.117 10.25321
Growth Equities Fund............................................ 1,516,123.820 13.48718 1,022,088.561 10.15275
International Equity Fund....................................... 644,325.990 10.61954 577,883.927 10.34244
Emerging Markets Equity Fund.................................... 841,272.991 12.12095 602,938.228 11.74300
Long-term Bond Fund............................................. 394,487.567 11.27079 241,972.018 9.90219
Value Equity Fund............................................... 997,236.811 12.89292 712,829.163 10.18937
</TABLE>
<TABLE>
<CAPTION>
JUNE 30, 1995 JUNE 30, 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund.............................................. 253,684.788 $211.05588 244,881.919 $167.36232
Short Term Income Fund.......................................... 72,283.096 95.33006 73,221.613 90.73606
Chubb Corporation Stock Fund.................................... 192,300.166 417.37230 195,042.393 389.46505
Fixed Income Fund............................................... 3,174,938.446 50.74241 3,164,165.966 47.44257
Balanced Fund................................................... 657,068.914 11.58362 474,891.580 9.96839
Growth Equities Fund............................................ 1,309,267.951 12.14212 969,625.731 9.67457
International Equity Fund....................................... 639,173.611 9.95816 486,037.774 10.21187
Emerging Markets Equity Fund.................................... 779,455.628 12.02067 483,622.384 10.60594
Long-term Bond Fund............................................. 334,541.637 10.93855 242,277.839 9.89120
Value Equity Fund............................................... 855,518.677 11.89196 644,636.766 9.88052
</TABLE>
<TABLE>
<CAPTION>
MARCH 31, 1995 MARCH 31, 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund.............................................. 245,998.164 $192.56714 251,570.210 $166.69110
Short Term Income Fund.......................................... 71,061.141 94.01062 72,875.001 89.97513
Chubb Corporation Stock Fund.................................... 196,109.638 409.04952 197,705.294 369.60422
Fixed Income Fund............................................... 3,204,100.071 49.91664 3,266,497.892 46.64270
Balanced Fund................................................... 568,155.140 10.91883 401,651.822 10.00000
Growth Equities Fund............................................ 1,201,869.192 10.66753 717,534.049 10.00000
International Equity Fund....................................... 640,808.823 9.73194 353,664.738 10.00000
Emerging Markets Equity Fund.................................... 723,124.532 10.89647 335,486.164 10.00000
Long-term Bond Fund............................................. 308,348.089 10.36247 187,190.755 10.00000
Value Equity Fund............................................... 799,761.575 10.66614 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, 1995 were as follows:
<TABLE>
<S> <C>
S&P 500 Index Fund............................................................... $123,945
Short Term Income Fund........................................................... 3,759
Chubb Corporation Stock Fund..................................................... 99,737
Fixed Income Fund................................................................ 342,116
Balanced Fund.................................................................... --
Growth Equities Fund............................................................. 680
International Equity Fund........................................................ 142
Emerging Markets Equity Fund..................................................... 781
Long-term Bond Fund.............................................................. 398
Value Equity Fund................................................................ 382
--------
Total.................................................................... $571,940
========
</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, 1995
<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 $ 12,090,698 $ 12,090,698
Contract #13027, due in equal maturities on
3/31/95 and 9/30/95, at 7.83%
Commonwealth Life Insurance Company............. 1 12,099,136 12,099,136
Contract #ADA00674FR, due in equal maturities
on 9/30/99 and 12/31/99, at 7.89%
Commonwealth Life Insurance Company............. 1 6,091,243 6,091,243
Contract #ADA00766FR, due on 6/30/2000, at
6.33%
Hartford Life Insurance Company................. 1 9,019,807 9,019,807
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 12,383,729 12,383,729
Contract #GA9534, due 9/30/97, at 5.77%
John Hancock Life Insurance Company............. 1 13,186,825 13,186,825
Contract #7836, due in equal maturities on
3/31/2000 and 9/30/2000, at 7.33%
JP Morgan Asset Management...................... 1 15,251,615 15,251,615
Contract #2015, due 9/30/96, at 6.90%
JP Morgan Asset Management...................... 1 15,240,576 15,240,576
Contract #2033, due in equal maturities on
3/31/96 and 3/31/97, at 6.59%
Provident National Assurance Company............ 1 218,206 218,206
Contract #027-04079, due 10/1/96, at 8.75%
Provident National Assurance Company............ 1 9,030,089 9,030,089
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 8,092,035 8,092,035
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 13,186,750 13,186,750
Contract #15670, due in equal maturities on
3/31/2000 and 9/30/2000, at 7.35%
Principal Mutual Life Insurance Company......... 1 6,092,370 6,092,370
Contract #3-16924, due on
12/31/2000, at 6.41%
Prudential Asset Management..................... 1 14,572,597 14,572,597
Contract #6529-213, due in equal maturities
on 3/31/98, 6/30/98, 9/30/98 and 12/31/98,
at 5.37%
</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, 1995
<TABLE>
<CAPTION>
NUMBER OF
UNITS CONTRACT OR
SECURITY DESCRIPTION OR SHARES COST FAIR VALUE
- -------------------------------------------------- ------------- ------------ ------------
<S> <C> <C> <C>
Pacific Mutual Life Insurance Company........... 1 $ 9,013,338 $ 9,013,338
Contract #G25863.02, due in equal maturities
on 3/31/98, 6/30/98, 9/30/98 and 12/31/98, at
5.90%
Pacific Mutual Life Insurance Company........... 1 6,620,716 6,620,716
Contract #G25863.03, due 6/30/99, at 7.34%
MAS Funds Fixed Income Portfolio................ 437,726.10 4,971,306 5,160,791
------------ ------------
Subtotal..................................... $167,161,036 $167,350,521
------------ ------------
The Chubb Corporation Common Stock................ 923,945 $ 45,457,913 $ 89,391,679
------------ ------------
Investments in Equities (Common stock unless
otherwise noted)
American Home Products Corp..................... 3,700 $ 214,357 $ 358,900
Archer Daniels Midland Co....................... 20,160 312,852 362,880
Asia Pulp & Paper LTD Sponsored Adr............. 26,300 324,579 213,688
Atlantic Richfield Co........................... 2,000 216,140 221,500
Avnet Inc....................................... 5,900 221,672 264,025
Berkley W R Corp................................ 8,100 291,436 435,375
Borg Warner Automotive Inc...................... 10,000 243,711 320,000
Burlington Inds Inc New......................... 24,000 312,744 315,000
Burlington Northern Inc......................... 3,000 150,414 234,000
Canadian Pacific LTD NPV........................ 20,300 328,759 367,938
Chrysler Corp................................... 5,900 279,263 326,713
Circuit City Stores Inc......................... 11,000 289,520 303,875
Compaq Computer Corp............................ 7,400 248,123 355,200
Cummins Engine Co Inc........................... 7,900 362,749 292,300
Cyprus Amax Minerals Co......................... 10,500 294,262 274,313
Exxon Corp...................................... 4,300 261,348 346,150
Federal Express Corp............................ 5,000 310,255 369,375
First Chicago NBD Corp.......................... 7,059 189,672 278,831
General Motors Corp Class H..................... 5,800 200,694 284,925
Hanson Tr PLC Sponsored Adr..................... 19,300 326,363 294,325
Inco Ltd........................................ 9,200 250,555 305,900
Keycorp......................................... 8,600 250,709 311,750
May Dept Stores Co.............................. 6,600 226,264 278,850
Mellon Bank Corp................................ 7,700 284,146 413,875
Merrill Lynch & Co Inc.......................... 4,300 153,214 219,300
Offshore Logistics Inc.......................... 16,900 232,708 213,363
Old Republic Intl Corp.......................... 9,300 210,471 330,150
Owens Corning Fiberglass Corp................... 8,100 284,796 363,488
Paine Webber Group Inc.......................... 12,300 204,945 246,000
Philip Morris Cos Inc........................... 4,100 217,418 370,025
</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, 1995
<TABLE>
<CAPTION>
NUMBER OF
UNITS CONTRACT OR
SECURITY DESCRIPTION OR SHARES COST FAIR VALUE
- -------------------------------------------------- ------------- ------------ ------------
<S> <C> <C> <C>
Progressive Corp Ohio........................... 5,600 $ 165,334 $ 273,700
Redman Inds Inc New............................. 12,000 226,500 405,000
Sothebys Hldgs Inc Class A...................... 17,000 253,307 242,250
Ultramar Corp................................... 10,000 238,050 257,500
Whirlpool Corp.................................. 4,500 228,015 239,625
YPF S.A. Sponsored ADR Reg Class D Shs.......... 17,400 328,529 376,275
------------ ------------
Subtotal..................................... $ 9,133,873 $ 11,066,364
------------ ------------
Mutual Funds
Colonial Tr VII Newport Tiger Fund Class Z...... 816,688.12 $ 9,004,298 $ 10,166,707
BT Institutional Equity 500 Index Fund.......... 4,566,805.95 50,088,492 63,796,051
Columbia Balance Fund........................... 504,719.72 9,175,218 10,133,705
Fidelity Contrafund Fund........................ 588,893.33 19,497,910 22,389,725
Morgan Stanley Institutional Fund, Inc.-Active
Country Allocation Fund...................... 635,943.53 7,352,760 7,393,606
------------ ------------
Subtotal..................................... $ 95,118,678 $113,879,794
------------ ------------
Pooled Investments
EGSF Venture Capital-Citibank Fund.............. 17.56 $ 5,752 $ 10,514
Excelsior Government Money Market Fund.......... 7,456,738.00 7,456,738 7,456,738
Vista Premier US Government Money Market Fund... 6,965,369.00 6,965,369 6,965,369
------------ ------------
Subtotal..................................... $ 14,427,859 $ 14,432,621
------------ ------------
Participant Loans (Maturities January 1996 to
December 2005, Rates 4.25% to 16%).............. 22,375,827.00 $ 22,375,827 $ 22,375,827
------------ ------------
TOTAL...................................... $353,675,186 $418,496,806
============ ============
</TABLE>
13
<PAGE> 14
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
EXHIBIT 27D -- SCHEDULE OF REPORTABLE TRANSACTIONS
DECEMBER 31, 1995
<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 (iii) -- Series of
transactions in excess of 5% of
plan assets:
Excelsior Govt Money Fund...... 1,003 $62,466,112 $67,436,497 $67,436,497 --
Vista Premier US Government
Money Market Fund........... 341 47,223,888 40,258,519 40,258,519 --
Participant Loans.............. 590 $13,437,759 $11,819,703 $11,819,703 --
</TABLE>
There were no category (i) or (ii) or (iv) reportable transactions during 1995.
14
<PAGE> 15
REPORT OF INDEPENDENT AUDITORS
The 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, 1995 and 1994, and the
related Statement of Changes in Net Assets Available for Plan Benefits for the
year ended December 31, 1995. 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, 1995 and 1994 and the Changes in its
Net Assets Available for Plan Benefits for the year ended December 31, 1995, 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, 1995, 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 7, 1996
------------------------
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 7, 1996 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, 1995.
ERNST & YOUNG LLP
New York, New York
June 7, 1996
15
<PAGE> 16
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
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
PROFIT SHARING COMMITTEE
Dated: June 7, 1996
