<PAGE> 1
================================================================================
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, 1996
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, 1996
<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 The Chubb
Corporation.............. -- -- $96,024,482 -- --
Mutual Funds............... $84,580,098 -- -- -- $15,834,784
Investment in Equities..... -- -- -- -- --
Fixed Income Securities.... -- -- -- $161,099,199 --
Pooled Investments:
US Government Money
Market Fund............ -- $6,562,036 2,215,750 3,223,769 --
EGSF Venture Capital
Fund................... 10,433 -- -- -- --
Participant Loans.......... -- -- -- --
Accrued Income............... -- 26,950 492,429 12,873 --
Participants' transfers
receivable (payable)
between Funds.............. (405,572) (566) (663,375) 493,357 297,301
----------- ---------- ------------ ------------ -----------
Net Assets Available for
Plan Benefits at
December 31, 1996 (Note
4)..................... $84,184,959 $6,588,420 $98,069,286 $164,829,198 $16,132,085
=========== ========== ============ ============ ===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<S> <C> <C> <C> <C> <C>
Contributions
Employers:
Pay conversion........... $ 3,858,807 $ 371,706 $4,205,319 $ 6,064,759 $ 1,278,033
Matching................. 2,405,507 265,974 2,782,983 4,059,880 767,562
----------- ---------- ----------- ------------ -----------
Total employers...... 6,264,314 637,680 6,988,302 10,124,639 2,045,595
Participants............... 128,902 10,562 126,958 270,918 47,812
Rollovers.................. 1,348,362 47,459 711,880 1,223,542 435,881
Loan repayments.............. 1,873,518 241,562 2,718,221 3,608,065 502,533
Interest..................... 165 336,695 66,579 10,385,355 --
Dividends.................... 1,788,852 -- 2,009,763 -- 877,035
Net
appreciation/(depreciation)
in fair value of assets.... 13,331,382 -- 9,978,691 -- 617,358
Participants' transfer
between Funds.............. 1,481,952 (836,239) (9,597,663) (11,753,647) 2,201,398
Distributions to
participants............... (5,560,335) (1,235,073) (6,648,379) (13,284,273) (733,404)
Forfeitures.................. (46,768) 5,504 42,096 (28,190) (26,874)
----------- ---------- ----------- ------------ -----------
Increase/(Decrease) in Net
Assets Available for
Plan Benefits during the
year....................... 20,610,344 (791,850) 6,396,448 546,409 5,967,334
Net Assets Available for Plan
Benefits at
December 31, 1995.......... $63,574,615 $7,380,270 $91,672,838 $164,282,789 $10,164,751
----------- ---------- ----------- ------------ -----------
Net Assets Available
for Plan Benefits
at December 31,
1996 (Note 4)...... $84,184,959 $6,588,420 $98,069,286 $164,829,198 $16,132,085
=========== ========== =========== ============ ===========
</TABLE>
See accompanying notes.
2
<PAGE> 3
<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>
-- -- -- -- -- -- $ 96,024,482
$36,984,067 $11,441,815 $ 14,405,711 -- -- -- 163,246,475
-- -- -- -- $21,621,712 -- 21,621,712
-- -- -- $6,221,912 -- -- 167,321,111
-- -- -- 61,418 -- -- 12,062,973
-- -- -- -- -- -- 10,433
-- -- -- -- -- $ 23,571,806 23,571,806
-- -- -- 245 -- -- 532,497
(23,890) 175,376 (53,448) 42,178 138,639 -- --
----------- ----------- ----------- ---------- ----------- ------------ ------------
36,960,177
$ $11,617,191 $ 14,352,263 $6,325,753 $21,760,351 $ 23,571,806 $484,391,489
=========== =========== =========== ========== =========== ============ ============
$ 3,304,920 $ 1,102,522 $ 1,485,960 $ 654,723 $1,783,981 -- $ 24,110,730
1,930,980 647,923 876,039 405,198 1,055,075 -- 15,197,121
------------- ------------- ---------------- ---------- ----------- ------------ ------------
5,235,900 1,750,445 2,361,999 1,059,921 2,839,056 -- 39,307,851
137,644 46,960 53,447 26,293 74,560 -- 924,056
1,109,808 317,918 229,509 285,146 396,388 -- 6,105,893
1,241,891 424,871 604,262 259,386 738,204 $(12,212,513) --
150 -- 7 2,389 490,388 1,746,288 13,028,016
1,288,169 843,510 100,249 355,821 642,263 -- 7,905,662
4,708,327 3,669 1,093,403 43,577 2,571,794 -- 32,348,201
2,568,414 1,421,181 423,086 (588,648) 1,271,410 13,408,756 --
(1,872,833) (645,576) (786,062) (278,961) (1,208,366) (1,760,752) (34,014,014)
(25,034) (22,246) (35,550) (18,846) (32,735) -- (188,643)
------------- ------------- ---------------- ---------- ----------- ------------ ------------
14,392,436 4,140,732 4,044,350 1,146,078 7,782,962 1,181,779 65,417,022
22,567,741
$ $ 7,476,459 $ 10,307,913 $5,179,675 $13,977,389 $ 22,390,027 $418,974,467
------------- ------------- ---------------- ---------- ----------- ------------ ------------
36,960,177
$ $11,617,191 $ 14,352,263 $6,325,753 $21,760,351 $ 23,571,806 $484,391,489
============= =========== ================ ========== =========== =========== ===========
</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, 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 The 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>
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>
-- -- -- -- -- -- $ 89,391,679
$22,389,725 $ 7,393,606 $ 10,166,707 -- -- -- 113,879,794
-- -- -- -- $11,066,364 -- 11,066,364
-- -- -- $5,160,791 -- -- 167,350,521
-- -- -- 52,144 2,720,971 -- 14,422,107
-- -- -- -- -- -- 10,514
-- -- -- -- -- $ 22,375,827 22,375,827
-- -- -- 194 33,482 -- 477,661
178,016 82,853 141,206 (33,454) 156,572 14,200 --
----------- ---------- ----------- ---------- ----------- ----------- ------------
22,567,741
$ $ 7,476,459 $ 10,307,913 $5,179,675 $13,977,389 $ 22,390,027 $418,974,467
=========== ========== =========== ========== =========== =========== ============
</TABLE>
5
<PAGE> 6
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investment valuation
The Plan's assets at December 31, 1996 and 1995 are held by The Chase
Manhattan Bank, N.A., as successor trustee to 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
investment contracts are fully benefit responsive and are valued at
contract value, which approximates fair value. Contract value
represents contributions to the fund plus interest accrued less
redemptions. The interest rates for the calendar years 1996 and 1995
were 6.6% and 6.8%, 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, 1996 AND 1995
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 $9,500 in 1996 and $9,240
in 1995, 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. Through October 30, 1996, Chubb Equity
Managers, Inc., a subsidiary of The Chubb Corporation, was 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
7
<PAGE> 8
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1996 AND 1995
2. PLAN DESCRIPTION -- (CONTINUED)
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. 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, 1996 AND 1995
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, 1996 DECEMBER 31, 1995
------------------------------ ------------------------------
COST FAIR VALUE COST FAIR VALUE
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Fixed Income Securities
Investments in Insurance and
Bank Contracts............... $ 161,099,199 $ 161,099,199 $ 162,189,730 $ 162,189,730
Bond Mutual Fund................ 6,069,848 6,221,912 4,971,306 5,160,791
------------ ------------ ------------ ------------
Subtotal................ $ 167,169,047 $ 167,321,111 $ 167,161,036 $ 167,350,521
------------ ------------ ------------ ------------
The Chubb Corporation Common
Stock........................... $ 44,962,569 $ 96,024,482 $ 45,457,913 $ 89,391,679
------------ ------------ ------------ ------------
Investments in Equities........... $ 20,681,783 $ 21,621,712 $ 9,133,873 $ 11,066,364
------------ ------------ ------------ ------------
Mutual Funds
BT Institutional Equity 500
Index Fund................... $ 58,752,264 $ 84,580,098 $ 50,088,492 $ 63,796,051
Fidelity Contrafund Fund........ 31,050,295 36,984,067 19,497,910 22,389,725
Other........................... 38,951,262 41,682,310 25,532,276 27,694,018
------------ ------------ ------------ ------------
Subtotal................ $ 128,753,821 $ 163,246,475 $ 95,118,678 $ 113,879,794
------------ ------------ ------------ ------------
Pooled Investments................ $ 12,068,725 $ 12,073,406 $ 14,427,859 $ 14,432,621
------------ ------------ ------------ ------------
Participant Loans (maturing from
January 1997 to December 2006
with interest rates from 4.25%
to 11%)......................... $ 23,571,806 $ 23,571,806 $ 22,375,827 $ 22,375,827
------------ ------------ ------------ ------------
TOTAL................... $ 397,207,751 $ 483,858,992 $ 353,675,186 $ 418,496,806
============ ============ ============ ============
</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, 1996 and 1995 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, 1996 DECEMBER 31, 1995
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund............................................... 283,437.539 $ 296.51 262,671.312 $241.55963
Short-Term Income Fund........................................... 63,823.792 102.78 75,365.722 97.87620
Chubb Corporation Stock Fund..................................... 169,965.367 576.45 180,128.394 508.38552
Fixed Income Fund................................................ 2,943,744.330 55.89 3,128,068.438 52.40959
Balanced Fund.................................................... 1,123,532.807 14.36 791,330.504 12.84390
Growth Equities Fund............................................. 221,570.939 16.71 1,646,639.488 13.70492
International Equity Fund........................................ 943,926.060 12.30 666,918.376 11.21024
Emerging Markets Equity Fund..................................... 1,024,989.426 14.00 819,519.843 12.57704
Long-Term Bond Fund.............................................. 502,219.969 12.59 441,339.041 11.73548
Value Equity Fund................................................ 1,372,171.144 15.85 1,061,166.088 13.17136
</TABLE>
9
<PAGE> 10
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1996 AND 1995
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 1996 SEPTEMBER 30, 1995
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund............................................... 278,885.769 $ 273.77 259,095.065 $227.73097
Short-Term Income Fund........................................... 66,741.220 101.54 71,208.543 96.60042
Chubb Corporation Stock Fund..................................... 177,931.350 491.65 181,793.302 501.70262
Fixed Income Fund................................................ 2,950,902.900 55.00 3,156,387.532 51.58134
Balanced Fund.................................................... 1,018,605.896 13.74 731,150.835 12.20843
Growth Equities Fund............................................. 2,112,318.948 15.40 1,516,123.820 13.48718
International Equity Fund........................................ 870,694.060 12.00 644,325.990 10.61954
Emerging Markets Equity Fund..................................... 986,305.034 13.38 841,272.991 12.12095
Long-Term Bond Fund.............................................. 467,640.466 12.12 394,487.567 11.27079
Value Equity Fund................................................ 1,299,803.102 14.25 997,236.811 12.89292
</TABLE>
<TABLE>
<CAPTION>
JUNE 30, 1996 JUNE 30, 1995
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund............................................... 276,596.175 $ 265.70 253,684.788 $211.05588
Short-Term Income Fund........................................... 67,876.302 100.28 72,283.096 95.33006
Chubb Corporation Stock Fund..................................... 180,690.957 529.50 192,300.166 417.37230
Fixed Income Fund................................................ 2,971,994.281 54.10 3,174,938.446 50.74241
Balanced Fund.................................................... 967,910.730 13.40 657,068.914 11.58362
Growth Equities Fund............................................. 2,070,339.946 14.94 1,309,267.951 12.14212
International Equity Fund........................................ 845,800.479 12.12 639,173.611 9.95816
Emerging Markets Equity Fund..................................... 1,012,634.265 13.29 779,455.628 12.02067
Long-Term Bond Fund.............................................. 438,547.483 11.85 334,541.637 10.93855
Value Equity Fund................................................ 1,257,728.556 14.14 855,518.677 11.89196
</TABLE>
<TABLE>
<CAPTION>
MARCH 31, 1996 MARCH 31, 1995
-------------------------- --------------------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund............................................... 269,431.175 $ 254.37 245,998.164 $192.56714
Short-Term Income Fund........................................... 69,818.270 99.08 71,061.141 94.01062
Chubb Corporation Stock Fund..................................... 182,067.039 496.38 196,109.638 409.04952
Fixed Income Fund................................................ 3,020,451.124 53.24 3,204,100.071 49.91664
Balanced Fund.................................................... 923,300.124 13.00 568,155.140 10.91883
Growth Equities Fund............................................. 1,835,551.111 14.49 1,201,869.192 10.66753
International Equity Fund........................................ 750,107.566 11.73 640,808.823 9.73194
Emerging Markets Equity Fund..................................... 954,681.949 13.69 723,124.532 10.89647
Long-Term Bond Fund.............................................. 425,322.911 11.71 308,348.089 10.36247
Value Equity Fund................................................ 1,142,002.994 13.55 799,761.575 10.66614
</TABLE>
5. FUND BALANCES DUE PARTICIPANTS
Amounts allocated to accounts of Participants who have withdrawn from
participation in the Plan at December 31, 1996 were as follows:
<TABLE>
<S> <C>
S&P 500 Index Fund............................................................... $138,722
Short-Term Income Fund........................................................... 25,034
Chubb Corporation Stock Fund..................................................... 93,057
Fixed Income Fund................................................................ 260,364
Balanced Fund.................................................................... 133
Growth Equities Fund............................................................. 192
International Equity Fund........................................................ --
Emerging Markets Equity Fund..................................................... --
Long-Term Bond Fund.............................................................. --
Value Equity Fund................................................................ 8
--------
Total.................................................................... $517,510
========
</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
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1996 AND 1995
6. SUBSEQUENT EVENT
The Chubb Corporation entered into a definitive agreement dated February
23, 1997 to sell Chubb Life Insurance Company of America and its subsidiaries to
Jefferson-Pilot Corporation. As of the closing date of the sale, May 13, 1997,
each participant who is a transferred employee as such term is defined in the
Stock Purchase Agreement between Jefferson-Pilot Corporation and The Chubb
Corporation has become fully vested, and account balances to date are
nonforfeitable. In addition, transferred employees are considered to have
terminated employment for purposes of the Plan.
11
<PAGE> 12
CAPITAL ACCUMULATION PLAN OF
THE CHUBB CORPORATION, CHUBB & SON INC.
AND PARTICIPATING AFFILIATES
ITEM 27A -- ASSETS HELD FOR INVESTMENT
DECEMBER 31, 1996
<TABLE>
<CAPTION>
# OF UNITS CONTRACT OR
SECURITY DESCRIPTION OR SHARES COST FAIR VALUE
- ------------------------------------------------ ------------- ------------ ------------
<S> <C> <C> <C>
Fixed Income Securities
CNA Insurance Company......................... 1 $ 6,095,493 $ 6,095,493
Contract #GP13027-016, due on 3/31/99, at
6.69%
CNA Insurance Company......................... 1 13,038,084 13,038,084
Contract #GP13027, Division 006, due in
equal maturities on 9/30/99 and 12/31/99,
at 7.83%
Commonwealth Life Insurance Company........... 1 13,054,893 13,054,893
Contract #ADA00674FR, due in equal
maturities on 9/30/99 and 12/31/99, at
7.89%
Commonwealth Life Insurance Company........... 1 6,477,274 6,477,274
Contract #ADA00766FR, due on 6/30/2000, at
6.33%
Hartford Life Insurance Company............... 1 9,553,780 9,553,780
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 13,098,270 13,098,270
Contract #GA9534, due 9/30/97, at 5.77%
John Hancock Life Insurance Company........... 1 14,153,419 14,153,419
Contract #7836, due in equal maturities on
3/31/2000 and 9/30/2000, at 7.33%
John Hancock Life Insurance Company........... 1 6,097,859 6,097,859
Contract #8642, due on 3/31/2001, at 6.86%
J P Morgan Asset Management................... 1 5,588,943 5,588,943
Contract #2033, due on 3/31/97, at 6.59%
Provident National Assurance Company.......... 1 9,569,186 9,569,186
Contract #627-05490, due on 3/31/98,
6/30/98, 9/30/98 and 12/31/98, at 5.97%
Prudential Asset Management................... 1 8,580,794 8,580,794
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 14,158,051 14,158,051
Contract #3-15670, due in equal maturities
on 3/31/2000 and 9/30/2000, at 7.35%
Principal Mutual Life Insurance Company....... 1 6,483,162 6,483,162
Contract #3-16924, due on 12/31/2000, at
6.41%
Prudential Asset Management................... 1 15,355,146 15,355,146
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 9,545,125 9,545,125
Contract #G-25863-02, due in equal
maturities on 3/31/98, 6/30/98, 9/30/98
and 12/31/98, at 5.90%
</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, 1996
<TABLE>
<CAPTION>
# OF UNITS CONTRACT OR
SECURITY DESCRIPTION OR SHARES COST FAIR VALUE
- ------------------------------------------------ ------------- ------------ ------------
<S> <C> <C> <C>
Pacific Mutual Life Insurance Company......... 1 7,106,676 7,106,676
Contract #G25863-03, due 6/30/99, at 7.34%
Peoples Life Insurance Company................ 1 3,143,043 3,143,043
Contract ADA 00602FR, due on 6/30/2000, at
6.45%
MAS Funds Fixed Income Portfolio.............. 529,524.39 6,069,849 6,221,912
------------ ------------
Subtotal................................... $167,169,047 $167,321,111
------------ ------------
The Chubb Corporation Common Stock.............. 1,786,502 $ 44,962,569 $ 96,024,482
------------ ------------
Investments in Equities
Strong Schafer Value Fund..................... 423,788.96 $ 20,681,783 $ 21,621,712
------------ ------------
Subtotal................................... $ 20,681,783 $ 21,621,712
------------ ------------
Mutual Funds
Colonial Tr VII Newport Tiger Fund Class Z.... 1,046,926.73 $ 12,295,931 $ 14,405,711
BT Institutional Equity 500 Index Fund........ 5,070,749.30 58,752,264 84,580,098
Columbia Balance Fund......................... 779,270.90 14,920,558 15,834,784
Fidelity Contrafund Fund...................... 877,439.31 31,050,295 36,984,067
Morgan Stanley Institutional Fund, Inc.-Active
Country Allocation Fund.................... 999,285.21 11,734,773 11,441,815
------------ ------------
Subtotal................................... $128,753,821 $163,246,475
------------ ------------
Pooled Investments
EGSF Venture Capital-Citibank Fund............ 17.56 $ 5,752 $ 10,433
Excelsior Government Money Market Fund........ 6,562,036.00 6,562,036 6,562,036
Vista Premier US Government Money Market
Fund....................................... 5,500,937.00 5,500,937 5,500,937
------------ ------------
Subtotal................................... $ 12,068,725 $ 12,073,406
------------ ------------
Participant Loans (Maturities January 1997 to
December 2006, Rates 4.25% to 11%)............ 23,571,806.00 $ 23,571,806 $ 23,571,806
------------ ------------
TOTAL.................................... $397,207,751 $483,858,992
=========== ===========
</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, 1996
<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:
Strong Schafer Value Fund..... 47 $ 20,855,892 $ 523,625 $ 174,109 $349,516
Vista Premier US Government
Money Market Fund.......... 1,076 110,167,564 111,545,021 111,545,021 --
Participant Loans............. 2,575 $ 13,403,499 $ 12,235,397 $ 12,235,397 --
</TABLE>
There were no category (i) or (ii) or (iv) reportable transactions during 1996.
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, 1996 and 1995, and the
related Statement of Changes in Net Assets Available for Plan Benefits for the
year ended December 31, 1996. 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, 1996 and 1995 and the Changes in its
Net Assets Available for Plan Benefits for the year ended December 31, 1996, 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, 1996, 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 Statements 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 23, 1997
------------------------
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 23, 1997 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, 1996.
ERNST & YOUNG LLP
New York, New York
June 23, 1997
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: DONALD B. LAWSON
DONALD B. LAWSON, A MEMBER OF THE
PROFIT SHARING COMMITTEE
Dated: June 23, 1997
