SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report. . . . March 7, 1997
(Date of earliest event reported)
The Chubb Corporation
(Exact name of registrant as specified in its charter)
New Jersey 1-8661 13-2595722
- --------------- ----------------- --------------------
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
15 Mountain View Road
P. O. Box 1615
Warren, New Jersey 07061-1615
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code . . (908) 903-2000
Not Applicable
- ------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
Item 5. Other Information
On March 7, 1997, The Chubb Corporation (the "Registrant") issued the press
release attached as Exhibit 20.1 to this report and incorporated herein by
reference.
Any statements in this Report on Form 8-K and the exhibit hereto which may
be considered to be "forward looking statements" as that term is defined in
the Private Securities Litigation Reform Act of 1995 are subject to certain
risks and uncertainties. The factors which could cause actual results to
differ materially from those suggested by any such statements include, but
are not limited to those discussed or identified from time to time in the
Corporation's public filings with the Securities & Exchange Commission and
specifically to: risks or uncertainties associated with the Corporation's
announced sale activities relating to portions of its non-property and
casualty business, or associated with its expectations of proceeds
deployment, asset valuations, or premium and investment income growth
projections and new cash available for investment, and, more generally, to:
general economic conditions including changes in interest rates and the
performance of the financial markets, changes in domestic and foreign laws,
regulations and taxes, changes in competition and pricing environments,
regional or general changes in asset valuation, the occurrence of
significant natural disasters, the inability to reinsure certain risks
economically, the adequacy of loss reserves, as well as general market
conditions, competition, pricing and restructurings.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits.
20.1 Registrant's press release dated March 7, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
THE CHUBB CORPORATION
Date: March 7, 1997 By: /s/Robert Rusis
----------------------------
Name: Robert Rusis
Title: Senior Vice President
and General Counsel
EXHIBIT INDEX
Exhibit Description of Exhibit
- ------- ----------------------
20.1 Registrant's press release, dated March 7, 1997.
EXHIBIT 20.1
FOR IMMEDIATE RELEASE
CHUBB CORP. ANNOUNCES DIVIDEND INCREASE, NEW SHARE REPURCHASE
PROGRAM AND LIFE AND REAL ESTATE CHARGES
WARREN, N.J., March 7, 1997 - The Board of Directors of The Chubb
Corporation today declared a regular quarterly dividend in the amount of
$0.29 per share payable April 8, 1997 to shareholders of record on March
21, 1997. This represents an increase of 7.4% over the $0.27 dividend paid
last quarter.
The Board also approved a new share repurchase program authorizing
Chubb to buy back up to 17.5 million shares or approximately 10% of its
common stock outstanding. The purchases will be made from time to time in
the open market or in privately negotiated transactions. This new program
replaces an existing, smaller program in effect since 1994.
The Chubb Corporation also announced today that it is re- stating its
preliminary 1996 financial results to reflect the classification of its life
insurance business as a discontinued operation and to recognize a $160 million
after-tax charge re- lated to the write-down of certain real estate assets.
As a result of the definitive agreement reached on February 23 with
Jefferson-Pilot Corporation to purchase Chubb Life Insurance Company of
America for $875 million, Chubb is classi- fying its life insurance
business as a discontinued operation and is recognizing an after-tax loss
of $22 million on the sale.
In February of 1997, Chubb decided to pursue the sale of certain real
estate assets and has since entered into an agree- ment with a prospective
purchaser to perform due diligence in anticipation of executing a contract for
the sale of substan- tially all of Chubb's commercial properties. This change
in its real estate strategy caused Chubb to reevaluate the carrying value of
these assets which resulted in the $160 million after-tax charge.
As a result of these developments, Chubb's restated results for 1996 and
1995 are as follows:
Amounts Per Share
-------------- ------------
1996 1995 1996 1995
---- ---- ---- ----
($ Millions)
Operating income from
continuing operations (*) $434.2 $583.7 $2.46 $3.29
Income from continuing operations
(including realized investment gains) $486.2 $654.4 $2.75 $3.70
Income from discontinued operations 26.5 42.2 .15 .23
------ ------ ------ -----
Net income $512.7 $696.6 $2.90 $3.93
====== ====== ===== =====
- -------------
(*) 1996 amounts reflect an after-tax charge of $160 million
or $0.89 per share related to the write-down of certain
real estate assets.
For further information contact: Gail E. Devlin
(908) 903-3245
Glenn A. Montgomery
(908) 903-2365
