SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) January 19, 1999
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The Chubb Corporation
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(Exact name of Registrant as Specified in Charter)
New Jersey 1-8661 13-2595722
(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
15 Mountain View Road
P.O. Box 1615, Warren, New Jersey 07061
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code 908-903-2000
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On January 18, 1999, The Chubb Corporation (the "Registrant") issued the
press release attached as Exhibit 1 to this report and incorporated herein by
reference.
Certain statements in this Report on Form 8-K and the exhibit hereto may
be considered to be "forward looking statements" as that term is defined in the
Private Securities Litigation Reform Act of 1995, such as statements that
include the words or phrases "is expected to," "plan to," "intends" or other
similar expressions. The factors which could cause actual results to differ
materially from those suggested by any such statements include, but are not
limited to, those discussed or identified from time to time in the
Corporation's public filings with the Securities and Exchange Commission and
specifically to risks or uncertainties associated with the Corporation's
expectations with respect to its share repurchase program or to premium price
increases or the non-renewal of underpriced insurance accounts, 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 development of major Year 2000 liabilities, the
inability to reinsure certain risks economically, the adequacy of loss
reserves, as well as general market conditions, competition, pricing and
restructurings.
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
By: /s/ Robert Rusis
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Name: Robert Rusis
Title: Senior Vice President and
General Counsel
January 19, 1999
EXHIBIT 1
FROM
The Chubb Corporation
15 Mountain View Road, P.O. Box 1615, Warren, New Jersey 07061-1615
CHUBB CORPORATION COMPANIES: Chubb & Son, a division of Federal
Insurance Company - Federal Insurance Company - Vigilant Insurance
Company - Great Northern Insurance Company - Pacific Indemnity
Company - Northwestern Pacific Indemnity Company - Texas Pacific
Indemnity Company - Chubb Insurance Company of Canada - Chubb
Compagnie d'Assurances, S.A. - The Chubb Insurance Company of
Australia Limited - Chubb Insurance Company of Europe
CHUBB EXPECTS FOURTH QUARTER EARNINGS OF $.90 PER SHARE
WARREN, N.J., January 18, 1999 -- The Chubb Corporation announced today
that it expects its operating earnings for the fourth quarter of 1998 to be
approximately $.90 per share. Full year 1998 earnings are expected to be
approximately $3.80 per share before the $.15 per share restructuring charge
taken in the first quarter. Chubb expects to report a combined ratio of 99.8%
for the year. In 1997, Chubb reported operating earnings of $1.01 per share
for the fourth quarter and $4.00 per share for the full year.
Dean O'Hare, chairman and chief executive officer, said that inadequate
pricing in standard commercial lines continued to undermine profitability in
the fourth quarter. Personal and specialty commercial lines continued to
produce exceptionally good results with double-digit profit margins.
Mr. O'Hare said that aggressive steps to address the underpriced book of
standard commercial business are resulting in higher prices or the removal of
unprofitable business and that the positive impact of these pricing actions
will be reflected in the 1999 calendar year as renewals are implemented.
Chubb also announced that in the fourth quarter of 1998 it repurchased
1.1 million shares of its common stock in the open market and that it will
continue to pursue its share repurchase program in 1999.
For further information contact: Gail E. Devlin
908-903-3245
Glenn A. Montgomery
908-903-2365
