[FRONT COVER]
[CHUBB LOGO]
[ENSEMBLE II LOGO]
Variable Universal Life Insurance
Issued by Chubb Life Insurance Company of America
Distributed by Chubb Securities Corporation
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Chubb America Fund, Inc.
Annual Report 1996
Domestic Growth Stock Portfolio
World Growth Stock Portfolio
Growth and Income Portfolio
Emerging Growth Portfolio
Capital Growth Portfolio
Money Market Portfolio
Gold Stock Portfolio
Balanced Portfolio
Bond Portfolio
<PAGE>
CHUBB AMERICA FUND, INC.
One Granite Place
Concord, New Hampshire 03301
Dear Policyholder:
A stable economy with low inflationary fears combined for another excellent year
for owners of long term financial assets and led to an exciting year for
Ensemble II.
Favorable economic conditions continued to fuel exceptional performance in the
equities markets. Domestically, the broad markets performed well while European
markets posted strong results in the international arena. The Growth and Income
Portfolio led all portfolios of Chubb America Fund returning 22.88% for the
year. Performance for each Portfolio is discussed by the portfolio managers in
the following pages.
The fundamentals that drove the market in 1996 remain in place to start 1997.
Market indicators such as the Dow Jones Industrial Average have continued to set
records. While we believe that the market will continue to perform in favor of
the long-term investor, some short-term volatility may be experienced as the
financial markets react to changing conditions. Ensemble II's wide array of
complementary portfolios allow policyowners to diversify their investments to
help smooth some of the expected bumps. In addition, taking advantage of
Ensemble II's time-tested dollar cost averaging and portfolio rebalancing
features will help you get the most from your policy.
Just as 1996 was good to the investment markets, it was also a good year for
sales of Ensemble II. Strong investment results, attractive product features,
and Chubb Life's excellent claims paying ability resulted in a 50% increase in
the number of Ensemble II policyholders.
We continue to look forward to working with you in 1997 toward achieving your
financial goals.
Sincerely,
/s/ Ronald R. Angarella
Ronald R. Angarella
President
Chubb America Fund, Inc.
February, 1997
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<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
World Growth Stock Portfolio
by Sean Farrington
Templeton Global Advisors, Inc.
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Comparison of Change in Value of $10,000 Investment in the
World Growth Stock Portfolio and the MSCI World Index
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AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 5 YEAR 10 YEAR INCEPTION
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WORLD GROWTH 19.22% 13.79% 10.89% 12.34%
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MSCI WORLD INDEX 14.00% 11.40% 11.20% 14.88%
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[PLOT POINTS FOR LINE CHART]
World Growth MSCI World
Stock Portfolio Index
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1985 10000 10000
9112 10137
10526 11822
1986 12932 14371
12715 15328
12765 16146
13449 16882
1987 14918 20707
14999 21951
16167 23311
12408 19712
1988 13855 22022
14352 21836
14141 21928
14034 24433
1989 15373 25008
15862 24689
18247 27584
18041 28634
1990 17244 24562
18671 26580
15554 21760
16176 23904
1991 17797 26288
17325 25434
18848 27260
19812 28439
1992 19777 26152
20910 26660
20281 27143
21015 27114
1993 22440 29479
23314 31306
25138 32814
28104 33384
1994 27156 33628
26728 34678
28551 35464
27248 35248
1995 27603 36944
29865 38568
31357 40772
31703 42762
1996 33105 44543
34373 45880
34737 46568
37795 48757
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Commencement of Operations August 1, 1985. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the World Growth
Stock Portfolio (the "Portfolio") at its inception with a similar investment
in the MSCI World Index. For the purposes of this graph and the accompanying
table, the average annual total return for the Portfolio reflects all
recurring expenses and includes the reinvestment of all dividends and
distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not
reflect any separate account expenses imposed on the policies which include a
2.5% premium tax charge, account fees, cost of insurance, mortality expenses
and surrender charges.
The MSCI World Index is an unmanaged index and includes the reinvestment of
all dividends, but does not reflect the payment of transaction costs,
advisory fees or expenses that are associated with an investment in the
Portfolio.
Templeton's investment philosophy concentrates on picking securities which
are inexpensive relative to assets or future earnings, not on global economic
or market trends. Frequently, this approach leads to a concentration of
ideas in certain markets or industries and noticeable underweightings in
others. Throughout the year, our concentration of ideas in European and
emerging markets companies were large contributors to the Portfolio's
performance. The weighting remained about the same in the U.S. and the
Portfolio benefited from the unexpected rise in U.S. securities.
The Portfolio gained 19.22% during the year versus the benchmark index, the
MSCI World Index, which gained 14.0%.
continued
i
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Europe continued down the road of restructuring, eliminating costs, reducing
head count and debating new legislation which would allow companies to create
greater shareholder value. The fact that restructuring was a reality and an
inevitable part of Europe's ability to compete on a global basis has become more
apparent to investors who pushed up stock prices late in 1996.
The Portfolio increased holdings substantially in the United Kingdom from 5.97%
at the beginning of the year to 10.31% by the end of the year. New investments
include two examples of management teams repositioning their companies through
internal restructuring, BICC (the cables and wire manufacturer) and BTR (a
diversified company involved in industrial and transportation products). Two
other new British names added to the Portfolio were Thames Water (company
providing water, sewage and treatment services in London) and British Energy
(company generating and selling electricity). For these companies, we do not
believe the longer term earnings potential has yet been recognized in their
valuations. Please refer to pages 1-4 for a complete listing of Portfolio
investments.
We also increased our weighting in France during the year and added AXA,
France's largest insurance company. The long-term outlook for financial service
companies in France, and in Europe in general, is supported by demographic
trends.
Emerging markets presented a mixed bag of performance. According to the IFC
Investables, indices, among the top performing markets worldwide were China and
Hungary which rose 41% and 103%, respectively, in U.S. dollar terms for the year
ended December 31, 1996. Closing out the worst performers for the same period
were Korea and Thailand, down 38% and 40% in U.S. dollar terms. Our emerging
markets exposure has performed reasonably well. One area we added to was Brazil,
one of the more established and liquid markets in Latin America which last year
rose 34%. Investment there included Cia Energetica de Minas Gerais (an energy
provider in one of the more industrialized areas of Brazil) and Lojas Americanas
(a chain of consumer product retail stores).
Hong Kong, one of our largest emerging markets weightings, rose over 33% in U.S.
dollar terms for calendar 1996 according to the MSCI Index, despite the
uncertainty surrounding Chinese control in 1997. Our largest holding in Hong
Kong is Hutchison Whampoa, a large conglomerate which operates ports both
locally and in China, and is involved in telecommunications and invests in
infrastructure projects. There is some debate whether Hong Kong should be
classified as an emerging or developed market. In our opinion, the reversion of
Hong Kong to Chinese rule allows for classifying the market as "Emerging." We do
not pretend to know the outcome of the change in control in Hong Kong, but we
feel that despite the recent increase in prices, the uncertainty of the event
and the genuine concern of investors is already reflected in the price of the
shares.
Finding value in Japan remains a struggle and consequently holdings in the
Portfolio have remained the same with investments only in Hitachi and Sony. Our
substantial underweighting in this market was amply rewarded -- according to the
MSCI Index, Japan's market closed down 15% in U.S. dollars for the 12 months
ending December 1996. Average stock market valuations in Japan support our
under
ii
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
weighted position. Price-earnings ratios currently at 95-100x are excessive.
Even adjusting for differences in accounting and the possibility of earnings
doubling from currently depressed levels, stock prices are still among the
highest world-wide. Yields of 0.7% on common stocks are not exciting.
Overall, the Portfolio's U.S. weighting remains unchanged over the last year.
Healthy corporate profits, strong exports, improving real estate prices and
large flows of cash into equity mutual funds have supported an extended market
rally. The current outlook is for continued economic growth. The economy appears
to be on sound footing. Unfortunately, many companies' stock prices have begun
to reflect the favorable outlook reaching our fair value estimates. New ideas
have emerged in the telecommunications sector which lagged the overall market in
1996, including U.S. West Communications.
We have always maintained that our ability to serve you is contingent on three
basic principles -- a simple investment philosophy, hard work and a team
approach. There is nothing glamorous about hard work, but there is a certain
amount of pride that is built upon its success. Finding inexpensive securities
in over three dozen countries and worldwide takes an enormous amount of work.
During the last 12 months, Templeton's team of analysts wrote over 2,000
research reports on companies in 38 countries and 32 industries working
diligently to find inexpensive investments. Our team is intact and excited about
the years ahead. As always, we appreciate your continued confidence.
iii
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CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Money Market Portfolio
by Thomas J. Swartz
Chubb Assets Managers, Inc.
The investment objective of the Fund is to provide an investment vehicle that
minimizes credit quality risk and net asset fluctuations. The Fund continues to
meet this objective by investing in high quality short-term investment vehicles.
Taking into account the narrow yield differential between U.S. Treasury bills
and lesser quality alternative investments such as commercial paper, we continue
to feel it is prudent to invest primarily in government and quasi-government
securities.
The Fed Funds Rate has been stable at 5.25% since January, 1996. Given the
expected strong final Gross Domestic Product (GDP) number for the fourth quarter
of 1996, there is presently some debate over whether the Federal Reserve Bank
needs to ratchet up short-term rates in order to moderate the pace of economic
growth to a level consistent with low inflation. However, there are factors
supporting slower growth in early 1997 as opposed to early 1996 prior to an
economic acceleration. For example, bond yields and oil prices are now
substantially higher than a year ago and banks' willingness to lend to consumers
has lessened. If the Fed does make a preemptive move by raising short-term
rates, we would anticipate incremental adjustments to the Fed funds rate, rather
than dramatic moves, such as raising the discount rate.
iv
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CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Gold Stock Portfolio
by Henry J. Bingham
Van Eck Associates Corporation
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Comparison of Change in Value of $10,000 Investment in the Gold Stock
Portfolio, the S&P 500 Index and the Lipper Gold Fund Index
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AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 5 YEAR 10 YEAR INCEPTION
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GOLD STOCK 2.57% 7.64% 2.69% 5.17%
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S&P 500 INDEX 22.96% 15.18% 15.25% 16.46%
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LIPPER GOLD FUND INDEX 5.79% 7.44% 9.83% 6.14%
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[PLOT POINTS FOR LINE CHART]
Gold Stock S&P 500 Lipper Gold Fund
Portfolio Index Index
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1985 10000 10000 10000
9602 9916 9481
9960 11626 9069
1986 10217 13264 10276
10141 14049 9058
12987 13070 12189
13646 13800 12415
1987 22164 16745 19345
20392 17584 18429
24761 18746 22113
18325 14519 16944
1988 16901 15345 15396
16755 16359 15041
14766 16411 13359
14433 16915 13768
1989 15249 18110 14711
14364 19705 14488
15006 21812 15770
17210 22256 18387
1990 15812 21585 16804
13785 22936 14925
14846 19799 15425
13035 21564 13893
1991 12337 24685 13197
13532 24631 14518
12194 25947 13445
12316 28106 13809
1992 11826 27399 12923
12760 27921 13400
12844 28801 12548
11916 30245 11167
1993 14112 31562 13844
18279 31711 18325
15635 32520 16453
19578 33274 20875
1994 19639 32021 19124
17542 32160 18704
19936 33732 22616
16882 33725 19626
1995 17214 36998 18492
17323 40519 18717
18152 43729 19788
17348 46353 18676
1996 21724 48841 22803
19740 51033 21453
18695 52611 21026
17793 56996 19758
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Commencement of Operations August 1, 1985. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Gold Stock
Portfolio (the "Portfolio") at its inception with a similar investment in the
S&P 500 Index and the Lipper Gold Fund Index. For the purposes of this graph and
the accompanying table, the average annual total return for the portfolio
reflects all recurring expenses and includes the reinvestment of all dividends
and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index and the Lipper Gold Fund Index are unmanaged indexes and
include the reinvestment of all dividends, but do not reflect the payment of
transaction costs, advisory fees or expenses that are associated with an
investment in the Portfolio.
The net asset value of the Gold Fund's unit rose 2.57% during 1996 compared with
a 5.79% increase in the Lipper Gold Fund Index. Gold itself, after rising
sharply to $415 an ounce in February, subsequently declined and closed on
December 31, 1996 at $367 an ounce, down 5.3% for the year.
The early strength in gold appeared to have been caused by a general movement by
Central Banks toward easy monetary policies as well as to a lower level of
forward sales by mining companies following the sharp rise in lease rates late
in 1995.
Gold's early strength faded as a normal correction was accentuated by the sale
of 203 tons of gold by the Belgian Central Bank and recurring suggestions, later
withdrawn, that the International Monetary Fund might sell $2 billion of its
gold reserves over several years. Increased forward selling by mining companies
to fund development projects and higher real interest rates in the United States
as well as somewhat lower physical demand may have contributed to the decline.
continued
v
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Gold rallied during the U.S. stock market correction in July and then traded in
a range of approximately $380-$390 an ounce, until mid-November. The decline in
gold's price late in the year appeared to be triggered by the possible
"mobilization" of Swiss gold reserves should the 40% gold reserve behind bank
notes be repealed as proposed. Uncertainty as to the role of gold in the
proposed European monetary system and reports of Central Bank sales seemingly
caused speculative selling of gold. At yearend, the short position of "large
speculators" was close to record levels.
On a regional basis, Australia was the best performing gold share market rising
an average 5.1% in U.S. dollar terms during the year. Australian shares account
for approximately 21% of Portfolio assets and investments are concentrated in
proven producers with good exploration potential such as Plutonic Resources,
Acacia Resources and Sons of Gwalia.
The South African shares which are most heavily leveraged to the gold price had
the poorest performance last year, declining an average 12.7% in dollar terms.
The 20% depreciation of the rand, although helpful to the earnings of the mines,
may also have contributed to the decline of share prices in terms of the dollar.
The industry, although mature, is, with the benefit of relaxed government
regulation, restructuring itself to improve profitability. Approximately 7% of
the Portfolio's assets are invested in South Africa.
The XAU Index of North American shares declined 5.1%, about in line with the
gold price. The Portfolio is invested approximately 70% in North America,
including 39% in the United States and 31% in Canada. Several of the Canadian
companies have a preponderance of their operations in the United States. In
North America, the Portfolio invests primarily in producing companies which
would benefit most from a rise in the gold price, however, a portion is invested
in advance stage exploration companies such as Golden Star Resources, Pangea
Goldfields and Tombstone Exploration. Please refer to pages 6 and 7 for a
complete listing of Portfolio investments.
The Outlook
While general market sentiment toward financial assets remains optimistic, there
are factors within the global economy that under changing conditions could favor
gold:
* As the Wall Street Journal noted recently it may be that "Relatively low
inflation has been caused by the securities markets ability to draw excess
credit out of the system." In other words, a shift of funds from securities to
goods could reignite inflationary forces.
* The decline in credit standards, about which the Bank for International
Settlements as well as the U.S. Comptroller of the Currency recently warned,
has the potential to create financial disruptions and increased demand for
gold.
* The U.S. current account deficit, estimated at $150 billion in 1996, has been
financed mainly by foreign Central Banks, which with increased purchases of
U.S. equities by private foreign interests help explain the strength of the
dollar. A lessening of demand for U.S. securities could, of course, weaken the
dollar. A lower dollar and higher gold prices often go hand-in-hand, in which
case, investments in producing gold mines usually add leverage to a rising
gold market.
vi
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CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Domestic Growth Stock Portfolio
by Robert Benson
Pioneering Management Corporation
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Comparison of Change in Value of $10,000 Investment in the
Domestic Growth Portfolio and the S&P 500 Index
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AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 5 YEAR 10 YEAR INCEPTION
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DOMESTIC GROWTH 16.46% 18.98% 14.39% 13.96%
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S&P 500 INDEX 22.96% 15.18% 15.25% 14.70%
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[PLOT POINTS FOR LINE CHART]
Domestic Growth
Stock Portfolio S&P 500 Index
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1986 10000 10000
10372 10712
9863 9965
10565 10522
1987 11914 12768
12813 13408
13698 14294
10395 11071
1988 12119 11701
13176 12474
13151 12514
13129 12898
1989 14183 13809
15054 15025
16226 16632
15669 16971
1990 15299 16459
15505 17489
12071 15097
12759 16443
1991 15336 18823
15663 18782
16103 19785
16999 21431
1992 18699 20893
17992 21291
18527 21961
21506 23062
1993 22691 24066
22524 24180
23910 24802
24925 25377
1994 24982 24422
24337 24527
26469 25727
26834 25721
1995 28241 28217
29736 30902
33164 33351
34809 35352
1996 37702 37249
39076 38921
38570 40124
40537 43469
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Commencement of operations April 18, 1986. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Domestic Growth
Stock Portfolio (the "Portfolio") at its inception with a similar investment in
the S&P 500 Index. For the purposes of this graph and the accompanying table,
the average annual total return for the Portfolio reflects all recurring
expenses and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index is an unmanaged index and includes the reinvestment of all
dividends, but does not reflect the payment of transaction costs, advisory fees
or expenses that are associated with an investment in the Portfolio.
The economy grew at a modest 2.4% in 1996, which resulted in an essentially
benign interest rate environment. With corporate earnings continuing to increase
and interest rates having little impact on price-earnings ratios, the stock
market again exhibited strong returns. As was the case in 1995, large
capitalization, financial and technology stocks led the charge with smaller
capitalization and healthcare stocks lagging.
continued
vii
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
The Domestic Growth Stock Portfolio returned 16.46% for the year 1996 versus
22.96% for the S&P 500 Index. A component of the Portfolio that contained
smaller and medium sized companies hindered performance. However, current
Portfolio investments continue to offer good value relative to the overall stock
market.
As was the case last year, the best performing sector of the Portfolio was the
financial sector--banks and insurance companies. American Bankers Insurance
Group, UNUM Corp. and AAMES Financial had total returns exceeding 30%. Real
Estate Investment (REIT) stocks were also very strong in 1996 and the Portfolio
was well represented by Centerpoint Properties and Gables Residential Trust.
Additionally, Consolidated Stores in the retail sector and Lincare Holdings in
healthcare were both stellar performers. In the technology group, our smaller
capitalization issues lagged the market but our larger capitalization stocks
such as Arrow Electronics and EMC Corp. outperformed it. One of the Portfolio's
best performing stocks for the year was Personnel Group of America, a
diversified personnel staffing company. Please refer to pages 8 and 9 for a
complete listing of Portfolio investments.
The outlook for 1997 is very similar to the one we had at the beginning of 1996.
The economy is growing modestly, inflation is low and the pressures on interest
rates seem to be minimal. This economic climate translates into a market outlook
that is positive but cautious. We expect larger capitalization stocks,
particularly technology, to continue to do well. REIT stocks should also perform
favorably as the real estate cycle continues to improve. As a result, the
Portfolio has increased its exposure in those areas. Smaller and medium sized
companies with good earnings outlook and strong balance sheets continue to be
attractively priced in the market.
viii
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Bond Portfolio
by Ned I. Gerstman
Chubb Asset Managers, Inc.
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Comparison of Change in Value of $10,000 Investment in the Bond Portfolio
and the Lehman Brothers Government Bond Index
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AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 5 YEAR 10 YEAR INCEPTION
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Bond Portfolio 2.47% 6.42% 7.26% 7.20%
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Lehman Bros. Govt Index 2.77% 6.88% 8.13% 8.16%
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[PLOT POINTS FOR LINE CHART]
Lehman Brothers
Bond Portfolio Gov't Bond Index
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1986 10000 10000
10116 10132
10310 10330
10447 10613
1987 10234 10737
10279 10549
9960 10265
10339 10845
1988 10613 11203
10701 11308
10811 11499
10920 11607
1989 10970 11730
11837 12674
11903 12779
12329 13259
1990 12185 13095
12633 13553
12679 13666
13370 14416
1991 13713 14729
13862 14928
14625 15778
15428 16624
1992 15015 16333
15679 16978
16501 17817
16572 17824
1993 17061 18630
17558 19168
17693 19791
18009 19724
1994 17633 19320
17574 18913
17662 18993
17598 19059
1995 18405 19957
19407 21194
19716 21569
20548 22555
1996 20110 22045
20121 22150
20488 22522
21056 23180
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Commencement of operations April 18, 1986. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Bond Portfolio
(the "Portfolio") at its inception with a similar investment in the Lehman
Brothers Government Bond Index. For the purposes of this graph and the
accompanying table, the average annual total return for the Portfolio reflects
all recurring expenses and includes the reinvestment of all dividends and
distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The Lehman Brothers Government Bond Index is an unmanaged index and includes the
reinvestment of all dividends, but does not reflect the payment of transaction
costs, advisory fees or expenses that are associated with an investment in the
Portfolio.
We entered 1996 after a furious bond market rally during 1995 that resulted from
slowing economic growth and continued moderate inflation. In response, the
Federal Reserve had been easing monetary policy throughout 1995. It was expected
that these trends would continue and result in lower interest rates for the
coming year. Early in 1996 it became apparent that the economy, led by the
housing sector, auto sales, low rates, strong employment growth and strong
exports, had gained momentum. As a result, the need for further Fed easing did
not come to pass and interest rates responded by rising 75 basis points during
the first quarter of 1996. After strong economic growth during the first half of
the year, including a very strong 4.7% Gross Domestic Product (GDP) in the
second quarter, the rise in rates and waning demand resulted in growth slowing
to 2.1% in the third quarter. Interest rates moved in a
continued
ix
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
narrow range over the last three quarters, moving higher as evidence of stronger
growth surfaced, and moving lower as signs of economic weakness materialized. By
the end of 1996, rates were somewhat below the low end of that trading range.
For the full year, the benchmark 10 year treasury yield rose 85 basis points.
While 1996 was not a great year for the bond market, our conservative
intermediate maturity strategy and prudent security selection helped us to once
again outperform the Lipper General bond fund averages for the third consecutive
year, which had a return of 1.72%. We are also among the best performing
Government funds over the last one, three, five and nine year timeframes
according to the Lipper General bond fund averages.
Going into 1997, the bond market appears to be fairly valued. During 1996,
inflation measures put in a mixed performance. Core measures of inflation
actually fell during the year. On a year over year basis, the core Consumer
Price Index (CPI) fell from 3.0% to 2.6% and the core Producer Price Index (PPI)
fell sharply from 2.6% to 0.6%. Only a sharp rise in energy prices pushed the
overall numbers higher. The employment cost index, closely watched by Allan
Greenspan, the Fed Chairman, fell to 2.8% at the end of the third quarter, down
from 3.2% at the end of last year. Gold, often viewed as an indicator of future
inflation, fell to its lowest level in four years. By many of these comparisons,
inflation still appears to be a falling trend and real inflation adjusted yields
in the bond market seem historically attractive. The one negative on this front
was the rise during the year in average hourly earnings due to the tight labor
markets. But as long as growth stays below 2.5% on average over the coming
quarters, those pressures should abate. Given our outlook for stable interest
rates, the Bond Portfolio expects to be more heavily weighted in higher yield
mortgage-backed securities whose returns should benefit in that environment.
x
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Growth and Income Portfolio
by Robert Witkoff
Chubb Asset Managers, Inc.
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Comparison of Change in Value of $10,000 Investment in the
Growth and Income Portfolio and the S&P 500 Index
-----------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR INCEPTION
-----------------------------------------------------
GROWTH & INCOME 22.88% 15.43%
-----------------------------------------------------
S&P 500 INDEX 22.96% 16.40%
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[PLOT POINTS FOR LINE CHART]
Growth & Income S&P 500
Portfolio Index
--------------- -------
1992 10000 10000
9696 9958
9824 10272
10820 10787
1993 11276 11256
11300 11310
11895 11598
12436 11867
1994 12070 11420
11996 11470
12248 12031
11910 12028
1995 12871 13195
14352 14451
15496 15596
15908 16532
1996 16489 17419
17365 18201
17639 18763
19548 20327
- --------------------------------------------------------------------------------
Commencement of operations May 1, 1992. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Growth and Income
Portfolio (the "Portfolio") at its inception with a similar investment in the
S&P 500 index. For the purposes of this graph and the accompanying table, the
average annual total return for the portfolio reflects all recurring expenses
and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index is an unmanaged index and includes the reinvestment of all
dividends, but does not reflect the payment of transaction costs, advisory fees
or expenses that are associated with an investment in the Portfolio.
It was another great year for the financial markets. Stocks advanced across the
board with the Dow Jones Industrials Average (DJIA) up 26.5%, the Standard and
Poor's (S&P) 500 up 22.96%, and the NASDAQ composite up 21.5%. The story is "old
hat" by now, but the underpinnings of the market's strength have basically not
changed over the last two years, declining short-term rates supported by low
long-term rates, sustained economic non-inflationary growth, and rising
corporate profits. This favorable economic climate has led to a record inflow of
money into equity mutual funds and a favorable demand for stocks. Combined, they
have helped the market achieve many new record highs. The DJIA, which toppled
two thousand-point milestones (4000 and 5000) last year surpassed the 6000 this
year and 6500 just a month later. This two year appreciation (68.2%) stands up
against many of the best of this century. Even more impressive for stocks is how
this was achieved with no real help from the bond market.
continued
xi
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
During the fourth quarter, the stock markets rose for most of October and
November, fell dramatically in early December, rallied late in the month to
erase the decline and finally fell close to 2% on the last trading day.
Employing the same disciplined approach to managing the Portfolio, we used this
volatility to make some adjustments in the Portfolio's composition. We sought
out and added companies selling at a significant discount to the broad market
averages on their earnings multiple yet with above average future growth
prospects, including: Black & Decker, PMI Group, Equitable and UCAR. We also
selectively added to many of our existing holdings. We sold those positions that
no longer provided a discounted valuation, including: Archer Daniels, Atlantic
Richfield, May Department Stores, Canadian National and Whirlpool. Please refer
to pages 11 and 12 for a complete listing of Portfolio investments.
Despite the change in portfolio managers, the investment tenets and approach
taken by the Portfolio will not change. We will stick to 35-40 equally weighted
large capitalization stocks, stay fully invested, and minimize our exposure to
any one sector. We believe that this focused value approach will continue to
reward our shareholders with above average performance over the long-term.
xii
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Capital Growth Portfolio
by Tom Marsico
Janus Capital Corporation
- --------------------------------------------------------------------------------
Comparison of Change in Value of $10,000 Investment in the
Capital Growth Portfolio and the S&P 500 Index
-----------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR INCEPTION
-----------------------------------------------------
CAPITAL GROWTH 19.25% 22.65%
-----------------------------------------------------
S&P 500 INDEX 22.96% 16.40%
-----------------------------------------------------
[PLOT POINTS FOR LINE CHART]
Capital Growth
Portfolio S&P 500 Index
--------- -------------
1992 10000 10000
10087 9958
10925 10272
12724 10787
1993 13604 11256
13635 11310
14752 11598
15869 11867
1994 15387 11420
14720 11470
15553 12031
15353 12028
1995 16045 13195
17479 14451
20143 15596
21762 16532
1996 23919 17419
25766 18201
26224 18763
25951 20327
- --------------------------------------------------------------------------------
Commencement of Operations May 1, 1992. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Capital Growth
Portfolio (the "Portfolio") at its inception with a similar investment in the
S&P 500 Index. For the purposes of this graph and the accompanying table, the
average annual total return for the Portfolio reflects all recurring expenses
and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index is an unmanaged index and includes the reinvestment of all
dividends, but does not reflect the payment of transaction costs, advisory fees
or expenses that are associated with an investment in the Portfolio.
As you know, Helen Young Hayes has asked me to take over management of the
Capital Growth Portfolio. Before discussing performance, I would like to
emphasize that my investment approach is very similar to Helen's. Both Helen and
I believe that detailed fundamental research and individual stock selection is
the key to long-term success. I tend to focus somewhat less on foreign stocks,
however, favoring instead, companies with a large international sales component.
This is consistent with my emphasis on large proven companies that dominate
their markets, both at home and abroad, often with uniquely powerful brands
(Coca-Cola and Nike are examples). I like companies with strong unit sales
growth, that consistently improve their profitability and their returns on
capital expenditures. In sum, companies that know how to wisely invest their
cash.
continued
xiii
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Stocks moved ahead nicely during 1996, ending the year near record highs. The
S&P 500 Index gained 22.96% for the year, while the Capital Growth Portfolio
appreciated 19.25%. Since inception, the Portfolio has average annual return of
22.65%, versus 16.40% for the S&P Index.
The fourth quarter was something of a disappointment as the Capital Growth
Portfolio lost 1.04% while the S&P 500 Index gained 8.34%. The Portfolio did not
keep pace with the Index for the quarter due to disappointments in a number of
stocks, most of which had performed well earlier. These included Rentokil, EDS
(Electronic Data Systems), Heritage Media, Millicom International, Amre, and
Intelligent Medical Imaging. These stocks were sold either due to earnings
disappointments that our research determined could persist beyond the current
quarter, or due to a deterioration in fundamentals. Ascend Communications, which
makes networking equipment, and Danka Business Systems were also down. The
prospects for Ascend and Danka are very positive, however, so I am holding both
positions.
During the quarter, I restructured the Portfolio, adding a number of dominant
franchise competitors with significant international operations. Not only are
these great individual companies, but the current healthy U.S. economic
environment, with its moderate growth, mild inflation, and low interest rates,
should boost profits in large, competitive companies across a broad spectrum of
industries. The Portfolio now holds a number of these familiar names: IBM,
Coca-Cola, General Electric, Merrill Lynch, Pfizer, Merck, and Monsanto (which
is transforming itself from an old-line chemical producer into a far more
dynamic life sciences company). Low interest rates should also benefit our
financial holdings. Wells Fargo, Citicorp, and Chase Manhattan continue to enjoy
excellent lending margins, and should also be able to extend their domination of
selected markets. Please refer to pages 13 and 14 for a complete listing of
Portfolio investments.
Overall, I am very positive on equities going forward and very proud of the
Janus research team's performance since the inception of the Capital Growth
Portfolio.
In general, there are many reasons to be positive on equities going forward. In
the 90s, corporations have experienced many profound changes, not only in the
greater emphasis placed on efficiency, productivity, and computerization, but in
the way management views its mission and responsibilities. Corporations are less
enamored with growth for its own sake, and more attuned to managing the business
effectively. As proof, witness the improvement in return on equity. Excess
capital is now being used to increase profitability.
Witness also the improvement in return on capital. U.S. business now has one of
the highest capital returns in the world, putting us at a distinct competitive
advantage. Politically, there has also been a
Continued
xiv
<PAGE>
seat change. President Clinton ran on a platform that was in many ways more
conservative, both fiscally and socially, than George Bush's platform in 1992.
Welfare was reformed by a Democratic President, and we will probably see some
type of balanced budget accord before the year is out. In general, government
understands that it should lead more constructively.
All these factors should lend more stability to the financial markets and are a
large part of the reason I believe the outlook for stocks and bonds is positive
in 1997, even though stock valuations are high by some measures. If economic and
business conditions remain favorable, I believe interest rates could fall closer
to their historic relationship to inflation. Assuming a continuing inflation
rate of about 2.5%, the yield on the 30-year treasury bond could fall to
approximately 5% over the next several years, which would encourage further
investment in the stock market.
Although I expect greater market volatility in 1997, the equities market should
make progress, for all the reasons I mentioned earlier. I stayed the course with
stocks in 1996, with very good results. Unless there is a radical change in the
current economic and business environment, I intend to stay the course in 1997
as well. I believe the Portfolio's focus on large, high-quality growth companies
will serve us well.
xv
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Balanced Portfolio
by C. Edwin Riley
Phoenix Investment Counsel, Inc.
- --------------------------------------------------------------------------------
Comparison of Change in Value of $10,000 Investment in the Balanced Portfolio
and the S&P 500 Index and the 55% S&P 500/35% Lehman Aggregate/10% 90 Day
T-Bill Index
-----------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR INCEPTION
-----------------------------------------------------
BALANCED 10.56% 10.32%
-----------------------------------------------------
S&P 500 INDEX 22.96% 16.40%
-----------------------------------------------------
BALANCED BENCHMARK 14.33% 12.11%
-----------------------------------------------------
[PLOT POINTS FOR LINE CHART]
55% S&P 500/
Balanced S&P 500 35% Lehman Aggregate/
Portfolio Index 10% 90 Day T-Bills
--------- ----- ------------------
1992 10000 10000 10000
10081 9958 10070
10467 10272 10403
10847 10787 10712
1993 11379 11256 11129
11526 11310 11273
11856 11598 11545
11852 11867 11702
1994 11654 11420 11351
11550 11470 11347
11698 12031 11691
11694 12028 11725
1995 12186 13195 12573
12848 14451 13516
13481 15596 14220
14308 16532 14917
1996 14377 17419 15286
14850 18201 15717
15163 18763 16114
15819 20327 17056
- --------------------------------------------------------------------------------
Past performance is not predictive of future performance.
This graph compares an initial $10,000 investment made in the Balanced Portfolio
(the "portfolio") at its inception with a similar investment in the S&P 500
Index and the 55% S&P 500/35% Lehman Aggregate/10% 90 Day T-Bill Index. For the
purposes of this graph and the accompanying table, the average annual total
return for the Portfolio reflects all recurring expenses and includes the
reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index and the 55% S&P 500/35% Lehman Aggregate/10% 90 Day T-Bill
Index are unmanaged indexes and include the reinvestment of all dividends, but
do not reflect the payment of transaction costs, advisory fees or expenses that
are associated with an investment in the Portfolio.
The Balanced Portfolio returned 10.56% for the year ending December 31, 1996
compared with the Balanced Benchmark return of 14.33%. (The Balanced Benchmark
represents an average blend of the following market indices: 55% Standard &
Poors' 500 Index; 35% Lehman Brothers Aggregate Bond Index; and 10% Salomon
Brothers Three-month Treasury-Bill Index).
The Portfolio's underperformance relative to the Balanced Benchmark for the year
can be attributed to the equity portion of the Portfolio. While posting a strong
double digit return of 16.6%, this lagged the S&P 500 return of 22.96%. The
fixed income portion of the Portfolio performed in line with the Lehman
Aggregate, returning 3.3% versus 3.6% for the year.
continued
xvi
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
More specifically on the equity side of the Portfolio, primary areas
contributing to performance included our exposure to financial companies and our
continued emphasis on the energy sector represented by our Deregulating
Financial Services and Energy Technology themes. Sources of underperformance for
the year came predominantly from an underweighting to the consumer staples
sector and our technology holdings. Within the fixed income portion of the
Portfolio, emphasis remained predominantly on U.S. Government and agency
mortgage-backed securities throughout the period. Please refer to pages 15-18
for a complete listing of Portfolio investments.
Asset allocation throughout the year was targeted at 55% stocks, 35% bonds, and
10% cash reserves.
The market has performed strongly the last two years, benefiting from strong
earnings gains and declining interest rates. Looking forward, earnings growth
should decelerate and interest rates should remain in a narrow range. The risks
are if earnings prove disappointing or interest rates rise. We believe that the
key to 1997 lies in taking advantage of market inefficiencies within a volatile
trading range combined with individual stock selection. In a market caught
between long-term concerns and intermediate opportunities we are maintaining
exposure to growth stocks that have some sensitivity to the domestic economy
and/or foreign sales growth.
xvii
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Emerging Growth Portfolio
by John Ballen and Toni Shimura
Massachusetts Financial Services
- --------------------------------------------------------------------------------
Comparison of Change in Value of $10,000
Investment in the Emerging Growth Portfolio
and the Russell 2000 Growth Index
-----------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR INCEPTION
-----------------------------------------------------
EMERGING GROWTH 18.30% 31.10%
-----------------------------------------------------
RUSSELL 2000 GROWTH INDEX 16.55% 22.02%
-----------------------------------------------------
Emerging Growth
Portfolio Russell 2000 Growth
--------- -------------------
10000 10000
06/95 10962 10829
11982 11239
12209 11649
09/95 12821 12060
12753 12120
13374 12180
12/95 13291 12239
13497 12200
14094 12600
03/96 14225 12862
15315 13000
15772 13300
06/96 15349 13523
14206 13530
14616 13550
09/96 15938 13569
15691 13700
16453 13900
12/96 15724 14264
- --------------------------------------------------------------------------------
Commencement of operations May 1, 1995. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Emerging Growth
Portfolio (the "Portfolio") at its inception with a similar investment in the
Russell 2000 Growth Index. For the purposes of this graph and the accompanying
table, the average annual total return for the Portfolio reflects all recurring
expenses and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The Russell 2000 Growth Index is an unmanaged index and includes the
reinvestment of all dividends, but does not reflect the payment of transaction
costs, advisory fees or expenses that are associated with an investment in the
Portfolio.
During 1996, the dramatic rise of the stock market overall reflected a pattern
of moderate growth and controlled inflation in the U.S. economy, two factors
that we anticipate will continue to be favorable for long-term investors. While
large cap stocks outperformed small cap stocks this year, the benign economic
environment should foster the growth of large and small companies alike in 1997.
Our performance in 1996 has reflected these trends. Compared to the Russell 2000
Growth Index return of 16.55%, the Emerging Growth Portfolio returned 18.30%.
The market this year, however, was clearly two-tiered. Our Portfolio's
performance benefited from the strong appreciation in the stock
continued
xviii
<PAGE>
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
prices of many of its holdings in the technology and consumer sectors while the
overall market was dominated by the larger cap issues as represented by the DJIA
and the S&P 500 Composite Index. In this environment, emerging growth stocks
offered particular challenges and opportunities.
With a very strong market, investors overlooked the earnings growth of the
smaller companies and bid up prices of the larger companies instead. Although
many smaller companies underperformed most of the year, their earnings results
nonetheless remained strong. Modest economic growth coupled with productivity
gains throughout Corporate America provided a favorable backdrop for a number of
emerging growth sectors in the Portfolio. Semiconductor stocks performed
strongly as investors focused on the potential for improving inventories and
demand. The need for improved productivity and efficiency benefited technology
stocks which make up the Portfolio's largest sector. Networking and software
stocks such as Oracle, BMC Software, and Compuware which all help their
corporate customers reduce costs have all performed well.
At the same time, consumer services companies such as HFS, Inc. have also helped
the Portfolio's performance. HFS has acquired companies in the hotel industry,
real estate, and car rental businesses. All of these businesses fit into HFS
very well and the company has produced over 30% internal growth from revenue
opportunities and cost savings. Supplementing this internal growth has been what
we believe is the best acquisition team in the 1990's, which has made several
acquisitions that greatly increased the company's earnings growth rate this
year. And while the stock has outperformed the market, its valuation has lagged
its earnings growth rate, making it attractively priced.
One sector that did not perform as well as expected is healthcare. HMOs set
their prices too low to insure revenues in 1996. United Healthcare,
Healthsource, and Pacificare all underperformed. We are, however, optimistic
that these companies will benefit from price increases implemented for 1997.
Please refer to pages 19-22 for a complete listing of Portfolio investments.
Looking ahead, we see a continuation in the steady growth that has characterized
the U.S. economy. This environment has allowed companies to lower their costs
and improve their margins, thus enhancing earnings. Many smaller companies, with
their lower cost structure, can capitalize on these trends. We believe that
emerging growth stocks will continue to offer investment opportunities in the
upcoming year. By seeking out new rapidly growing companies and more established
companies with dynamic earnings growth, we anticipate that our strategy should
reward investors in 1997.
xix
<PAGE>
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION
World Growth Stock Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
Common Stock 88.04%
Short-Term Obligations 7.07%
Preferred Stock 2.88%
Cash 1.26%
Corporate Bonds 0.75%
% OF
TOP TEN EQUITIES PORTFOLIO
Bank of Ireland 2.24%
Banco Popular Espanol 1.99%
Nokia, AB 1.45%
Repsol, SA 1.44%
Citicorp 1.41%
Telefonica de Espana, ADR 1.41%
Hitachi Ltd. 1.39%
Iberdrola SA 1.29%
Stet Societa Finanziaria Telefonica, SPA 1.28%
Tesco, PLC 1.25%
% OF
TOP TEN COUNTRIES PORTFOLIO
United States 29.94%
United Kingdom 10.31%
Spain 6.85%
France 6.20%
Hong Kong 4.52%
Netherlands 3.56%
Finland 3.37%
Sweden 3.12%
New Zealand 2.98%
Italy 2.84%
Money Market Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
Short-Term Obligations 93.37%
Cash 6.63%
PORTFOLIO QUALITY DOLLAR WEIGHTED AVERAGE MATURITY
% OF
RATING PORTFOLIO 39.02 DAYS
AAA 100.00%
xx
<PAGE>
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION-(Continued)
Gold Stock Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
Common Stock 93.39%
Commercial Paper 4.47%
Corporate Bonds 1.92%
Cash 0.14%
Warrants 0.08%
% OF
TOP TEN EQUITIES PORTFOLIO
Barrick Gold Corp. 4.78%
Homestake Mining Co. 4.38%
Placer Dome, Inc. 4.04%
Normandy Mining, Ltd. 4.03%
Newmont Mining Corp. 4.01%
Getchell Gold Corp. 3.93%
Santa Fe Pacific Gold Corp. 3.35%
Freeport McMoRan Copper & Gold, Inc. 2.88%
Crown Resources Corp. 2.77%
Newcrest Mining, Ltd. 2.68%
% OF
TOP COUNTRIES PORTFOLIO
United States 39.03%
Canada 31.37%
Australia 20.90%
South Africa 7.00%
Ghana 1.14%
Peru 0.56%
Domestic Growth Stock Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
Common Stock 95.24%
Cash 4.76%
% OF
TOP TEN EQUITIES PORTFOLIO
Ensco International, Inc. 3.14%
Lincare Holdings, Inc. 2.65%
Host Marriott Corp. 2.53%
Action Performance Companies, Inc. 2.33%
Cisco Systems, Inc. 2.29%
Tencor Instruments 2.28%
DST Systems, Inc. 2.26%
CenterPoint Properties Corp. 2.23%
Amresco, Inc. 2.12%
Teradyne, Inc. 2.10%
% OF
TOP TEN INDUSTRIES PORTFOLIO
Health Care 8.52%
Insurance 8.45%
Electronics 7.92%
Computers 6.99%
Real Estate 6.36%
Financial Services 6.08%
Medical Supplies 5.24%
Oil-Crude 5.16%
Computer Software & Services 5.14%
Commercial Services 5.11%
xxi
<PAGE>
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION-(Continued)
Bond Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
U.S. Government and Agency Obligations 98.96%
Cash 0.60%
Corporate Bonds 0.44%
PORTFOLIO QUALITY DOLLAR WEIGHTED AVERAGE MATURITY
% OF
RATING PORTFOLIO 12.69 YEARS
AAA 99.56%
A 0.44%
Growth and Income Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
Common Stock 95.21%
Cash 4.79%
% OF
TOP TEN EQUITIES PORTFOLIO
Owens-Illinois, Inc. 3.75%
Reebok International, Ltd. 2.77%
Singer Co., NV 2.70%
PMI Group, Inc. 2.68%
Merrill Lynch & Co. 2.63%
Ball Corp. 2.62%
First Chicago NBD Corp. 2.48%
PaineWebber Group, Inc. 2.47%
KeyCorp 2.45%
Black & Decker Corp. 2.43%
% OF
TOP TEN INDUSTRIES PORTFOLIO
Insurance 12.88%
Mining & Metals 10.66%
Banking 9.35%
Financial Services 7.58%
Electronics 6.84%
Building Materials 6.48%
Automotive Parts & Accessories 5.58%
Transportation 4.35%
Food Processing 4.23%
Packaging & Containers 3.75%
xxii
<PAGE>
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION-(Continued)
Capital Growth Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
Common Stock 97.84%
Cash 2.16%
% OF
TOP TEN EQUITIES PORTFOLIO
Wells Fargo & Co. 4.36%
IBM Corp. 4.16%
Chase Manhattan Corp. 4.09%
Lucent Technologies, Inc. 3.98%
UAL Corp. 3.82%
General Electric Co. 3.80%
Monsanto Co. 3.77%
Nike Inc., Class B 3.65%
Federal National Mortgage Association 3.64%
First Data Corp. 3.57%
% OF
TOP TEN INDUSTRIES PORTFOLIO
Financial Services 18.37%
Pharmaceuticals 9.58%
Software Products & Services 7.92%
Medical Supplies 7.37%
Computers 6.89%
Chemicals 6.53%
Beverages 5.78%
Communication Systems 5.18%
Textiles & Apparel 4.17%
Telecommunications 3.98%
Balanced Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
Common Stock 56.10%
U.S. Government and Agency Obligations 36.38%
Short-Term Obligations 5.45%
Municipal Bonds 1.62%
Corporate Bonds 0.24%
Cash 0.21%
% OF
TOP TEN HOLDINGS PORTFOLIO
U.S. Treasury Notes & Bonds 29.03%
Government National Mortgage Assoc. 7.35%
Cisco Systems, Inc. 1.78%
Intel Corp. 1.53%
International Business Machines Corp. 1.23%
3COM Corp. 1.12%
PepsiCo, Inc. 1.09%
Equifax, Inc. 1.06%
Procter & Gamble Co. 1.04%
Columbia/HCA HealthCare Corp. 1.04%
% OF
TOP TEN INDUSTRIES PORTFOLIO
Software Products & Services 4.91%
Insurance 4.55%
Pharmaceuticals 3.38%
Oil, Crude, Service & Equipment 2.85%
Oil - Integrated 2.76%
Retail Stores 2.46%
Financial Services 2.34%
Communication Systems 2.32%
Computers 2.14%
Lodging & Restaurant 1.91%
xxiii
<PAGE>
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION-(Continued)
Emerging Growth Portfolio
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
Common Stock 87.35%
Short-Term Obligations 8.19%
Warrants & Rights 1.92%
Preferred Stocks 1.26%
Cash 1.23%
Convertible Bonds 0.05%
% OF
TOP TEN EQUITIES PORTFOLIO
Oracle Systems Corp. 4.54%
HFS, Inc. 4.43%
BMC Software, Inc. 3.94%
United Healthcare Corp. 3.72%
Technology Solutions 3.58%
Cisco Systems, Inc. 3.54%
Cadence Design Systems, Inc. 3.47%
Computer Associates Int'l, Inc. 3.43%
Worldcom, Inc. 2.58%
Microsoft Corp. 2.03%
% OF
TOP TEN INDUSTRIES PORTFOLIO
Computer Software - Mainframe 21.52%
Computer Software - P.C. 12.91%
Commercial Services 6.78%
Lodging 5.40%
Electronics 4.86%
Telecommunications 4.18%
Insurance 3.96%
Computer & Office Equipment 3.78%
Electronics - Semiconductor 3.25%
Medical - Hospitals 2.66%
++ Represents market value of investments plus cash.
xxiv
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
WORLD GROWTH STOCK PORTFOLIO
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-94.15%
Aerospace Equipment-1.20%
Textron, Inc. ................................ 11,700 $1,102,725
----------
Automotive Manufacturing-2.19%
Fiat - RNC, SPA .............................. 144,400 252,613
Fiat, SPA .................................... 255,300 770,674
Volkswagen, AG ............................... 2,400 992,791
----------
2,016,078
----------
Banking-7.00%
Banco Popular Espanol ........................ 10,000 1,960,406
Banco Portugues de
Investimento ............................... 96,200 1,195,910
Banco Portugues de Investimento,
New Shares+................................. 36,556 430,900
Bank of Ireland .............................. 241,460 2,204,458
National Bank of Canada ...................... 65,000 656,799
----------
6,448,473
----------
Building & Construction-0.61%
Sociedade Construcos Soares
de Costa ................................... 48,100 563,564
----------
Building Materials-3.83%
Alfa, S.A. de C.V ............................ 161,700 743,577
The BICC Group ............................... 54,000 255,976
Kaufman & Broad Home
Corp. ...................................... 26,000 334,750
Masco Corp. .................................. 16,400 590,400
Owens Corning ................................ 10,000 426,250
Pioneer International, Ltd. .................. 195,000 580,788
Pioneer International, Ltd.,
ADR ........................................ 200,000 595,680
----------
3,527,421
----------
Chemicals-1.73%
BASF, AG ..................................... 24,000 918,818
Solvay, S.A. ................................. 1,100 672,685
----------
1,591,503
----------
Commercial Services-0.80%
Jardine Matheson Holdings,
Ltd., ADR .................................. 111,600 $ 736,560
----------
Computer Software & Services-0.83%
Bay Networks, Inc.+ .......................... 36,400 759,850
----------
Consumer Products-1.76%
Ceramco Corp., Ltd. .......................... 620,100 591,451
McBride, PLC ................................. 439,100 1,029,426
----------
1,620,877
----------
Electronics-2.71%
Hitachi, Ltd. ................................ 146,900 1,366,860
Sony Corp. ................................... 17,200 1,124,734
----------
2,491,594
----------
Energy Sources-1.06%
Total Petroles ............................... 12,000 974,082
----------
Engineering & Construction-1.09%
International-Mueller, NV .................... 40,000 1,003,620
----------
Entertainment & Leisure-0.89%
Kuoni Reisebuero ............................. 340 822,955
----------
Environmental Control-1.88%
Wheelabrator Technologies,
Inc. ....................................... 45,000 731,250
WMX Technologies, Inc. ....................... 30,600 998,325
----------
1,729,575
----------
- ----------
+Non-income producing security.
See notes to financial statements.
1
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
WORLD GROWTH STOCK PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Financial Services-5.78%
American Express Co. ............................. 8,700 $ 491,550
Brierley Investments, Ltd. ....................... 525,000 485,888
Chile Fund, Inc. ................................. 23,140 483,048
Citicorp ......................................... 13,500 1,390,500
Hutchison Whampoa, Ltd. .......................... 132,000 1,036,715
Invesco Mim ...................................... 200,000 888,160
Rhone-Poulenc .................................... 7,800 265,414
Thailand International Fund+ ..................... 12 276,000
----------
5,317,275
----------
Food & Household Products-0.14%
IBP, Inc. ........................................ 5,300 128,525
----------
Forest Products & Paper-7.46%
Boise Cascade Corp. .............................. 19,000 603,250
Bowater, Inc. .................................... 21,000 790,125
Carter Holt Harvey, Ltd. ......................... 279,251 633,313
Enso OY+ ......................................... 111,300 891,068
Fletcher Challenge, Ltd., Forestry
Division ....................................... 731,629 1,225,040
International Paper Co. .......................... 25,000 1,009,375
James River Corp. of Virginia .................... 22,000 728,750
Valmet OY ........................................ 56,400 991,185
----------
6,872,106
----------
Health & Personal Care-1.12%
Nationwide Health Properties ..................... 42,600 1,033,050
----------
Insurance-3.00%
AXA, S.A. ........................................ 16,300 1,034,673
National Mutual Asia, Ltd. ....................... 750,000 712,650
UNUM Corp. ....................................... 14,000 1,011,500
----------
2,758,823
----------
Machines-Diversified-0.98%
Asea,AB .......................................... 8,000 902,164
----------
Manufacturing-4.21%
BTR, PLC ......................................... 226,700 $1,101,762
Pechiney S.A., Class A ........................... 25,740 1,076,390
Portucel Industrial Empressa,
S.A., ADR ...................................... 97,000 562,319
S.K.F. ........................................... 48,000 1,135,320
----------
3,875,791
----------
Media-0.79%
News Corp., Ltd. ................................. 97,515 433,727
News Corp. Ltd., ADR ............................. 13,808 288,242
----------
721,969
----------
Mining & Metals-1.68%
Oregon Steel Mills, Inc. ......................... 67,800 1,135,650
Union Miniere, NPV+ .............................. 6,000 406,114
----------
1,541,764
----------
Oil - International-3.00%
Royal Dutch Petroleum
Co., Ltd., ADR ................................. 5,000 853,750
Societe Elf Aquitaine, S.A. ...................... 10,500 953,913
YPF Sociedad Anonima,
S.A., ADR ..................................... 37,600 949,400
----------
2,757,063
----------
Oil & Gas Exploration-1.54%
Repsol, S.A. ..................................... 37,000 1,416,564
----------
Pharmaceuticals-2.38%
Astra, AB, Class B ............................... 21,500 1,035,950
Novartis, AG+ .................................... 1,013 1,156,210
----------
2,192,160
----------
Real Estate-2.55%
Meditrust Corp. .................................. 23,900 956,000
Union du Credit Bail
Immobilier Unibail ............................. 10,700 1,062,026
Wereldhave, NV ................................... 5,200 324,673
----------
2,342,699
----------
- ----------
+Non-income producing security.
See notes to financial statements.
2
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
WORLD GROWTH STOCK PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Retail-4.85%
Coles Myer, Ltd. ............................. 282,700 $1,163,084
Federated Department
Stores, Inc.+ .............................. 13,600 464,100
Hudsons Bay Co. .............................. 46,700 780,231
Tesco, PLC ................................... 203,404 1,233,950
The Limited, Inc. ............................ 44,600 819,525
----------
4,460,890
----------
Telecommunication Equipment-2.91%
Alcatel Alsthom, CG .......................... 9,178 735,831
DSC Communications Corp.+ .................... 28,500 509,438
Nokia, AB, OY ................................ 24,700 1,429,799
----------
2,675,068
----------
Telecommunications-7.94%
Cable & Wireless, PLC, ADR ................... 22,000 541,750
MCI Communications Corp. ..................... 36,000 1,176,750
Stet Societa Finanziaria Telefonica,
SPA ........................................ 277,700 1,260,175
Telcom Italia, SPA ........................... 262,591 511,186
Teledanmark, AS .............................. 18,100 997,218
Telefonica de Argentina, S.A.,
Class B, ADR ............................... 18,100 468,338
Telefonica de Espana, ADR .................... 20,000 1,385,000
U.S. West Communications Group,
NPV ........................................ 29,900 964,275
----------
7,304,692
----------
Textiles & Apparel-2.52%
Dawson International, PLC .................... 366,000 360,107
Liz Claiborne, Inc. .......................... 24,500 946,313
Yizheng Chemical Fibre Co. ................... 2,647,000 643,221
Yue Yuen Industrial
Holdings, Ltd. .............................. 960,000 366,048
----------
2,315,689
----------
Tire & Rubber-0.87%
Goodyear Tire & Rubber
Co. ........................................ 15,500 $ 796,313
----------
Transportation & Shipping-6.11%
American President Companies,
Ltd. ....................................... 23,000 543,376
Frans Maas Groep, CVA ........................ 17,000 697,792
Guangshen Railway Co.,
Ltd.+ ...................................... 46,300 954,938
Helikopter Service, AS ....................... 51,500 669,418
Nedlloyd Groep ............................... 34,600 948,140
Transport Development Group .................. 288,100 929,353
Transportation Maritima, S.A. ................ 45,000 218,650
Unitor Ships Service ......................... 50,700 651,079
----------
5,612,746
----------
Utilities - Electric & Gas-5.44%
British Energy, PLC .......................... 419,000 1,046,831
British Gas, PLC ............................. 251,300 963,308
Empresa Nacional
de Electricidad, ADR ....................... 10,000 700,000
Iberdrola, S.A. .............................. 90,000 1,273,104
Shandong Huaneng Power,
ADR ........................................ 38,000 370,500
Texas Utilities Co. .......................... 16,000 652,000
----------
5,005,743
----------
Utilities - Water-1.30%
Thames Water Group, PLC ...................... 114,100 1,193,030
----------
TOTAL COMMON STOCK
(Cost $67,624,674) ....................... 86,613,001
----------
- ----------
+Non-income producing security.
See notes to financial statements.
3
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
WORLD GROWTH STOCK PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
PREFERRED STOCK-3.07%
Financial Services-1.24%
Bangkok Investments Co.,
Ltd.+ .................................. 2,500 $ 241,250
Nacional Financiera, S.A.,
Conv., ADR+ ............................ 26,700 907,800
------------
1,149,050
------------
Media-0.13%
News Corp. Ltd., ADR ..................... 6,904 121,683
------------
Retail-0.17%
Dairy Farm International
Holding, Ltd.+ .......................... 210,000 156,450
------------
Textiles & Apparel-0.29%
Lojas Americanas, S.A., ADR .............. 20,000 263,688
------------
Utilities - Electric & Gas-1.24%
Cia Energetica de Minas
Gerais, ADR ............................ 33,400 1,137,871
------------
TOTAL PREFERRED STOCK
(Cost $2,488,885) .................... 2,828,742
------------
Market
Principal Value
Company Value (Note B)
- ------- --------- --------
BONDS-0.81%
PIV Investment Finance,
(Cayman) Ltd., Conv., 4.500%,
due 12/01/00 ........................... $ 840,000 $ 743,400
------------
TOTAL BONDS
(Cost $698,610) ...................... 743,400
------------
SHORT-TERM OBLIGATIONS-7.56%
U.S. Treasury Bill, 4.955%, due
01/16/97 ............................... 4,000,000 3,991,649
U.S. Treasury Bill, 5.038%, due
03/06/97 ............................... 1,000,000 991,354
U.S. Treasury Bill, 5.055%, due
04/17/97 ............................... 2,000,000 1,970,890
------------
TOTAL SHORT-TERM
OBLIGATIONS
(Cost $6,952,925) ................... 6,953,893
------------
TOTAL INVESTMENTS
(Cost $77,765,094*) .................. 105.59% 97,139,036
Other assets, less liabilities ........... (5.59) (5,143,402)
---------- ------------
TOTAL NET ASSETS ...................... 100.00% $91,995,634
========== ============
- ----------
*Aggregate cost for Federal income tax purposes.
+Non-income producing security.
See notes to financial statements.
4
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
MONEY MARKET PORTFOLIO
December 31, 1996
<TABLE>
<CAPTION>
Market
Principal Value
Value (Note B)
--------- --------
<S> <C> <C>
SHORT-TERM OBLIGATIONS-98.01%
Federal Farm Credit Bank Discount Note,
5.180%, due 01/21/97 ...................................... $1,000,000 $ 997,122
Federal Home Loan Mortgage Corporation Discount
Note, 5.270%, due 01/30/97 ................................ 435,000 433,153
Federal National Mortgage Association Discount
Note, 5.180%, due 01/24/97 ................................ 1,550,000 1,544,870
U.S. Treasury Bill, 4.850%, due 02/13/97 .................... 2,400,000 2,386,097
U.S. Treasury Bill, 4.830%, due 03/06/97 .................... 2,400,000 2,378,158
----------
Total Short-Term Obligations
(Cost $7,740,635) ....................................... 7,739,400
----------
TOTAL INVESTMENTS
(Cost $7,740,635*) ...................................... 98.01% 7,739,400
Other assets, less liabilities .............................. 1.99 156,857
------ ----------
TOTAL NET ASSETS ......................................... 100.00% $7,896,257
======= ==========
</TABLE>
- ----------
*Aggregate cost for Federal income tax purposes.
See notes to financial statements.
5
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
GOLD STOCK PORTFOLIO
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-96.60%
Australia-21.62%
Acacia Resources, Ltd.+ ....... 60,000 $ 116,754
Avgold, ADR+ .................. 26,618 68,208
Delta Gold Ltd.+ .............. 35,000 65,604
Eagle Mining Corp.+ ........... 50,000 108,810
Emperor Mines Ltd.+ ........... 40,000 77,836
Great Central Mines, N.L. ..... 50,000 142,170
Herald Resources, Ltd. ........ 110,354 81,507
Menzies Gold, N.L.+ ........... 100,000 45,270
Newcrest Mining, Ltd. ......... 52,700 209,282
Normandy Mining, Ltd. ......... 228,000 315,096
Plutonic Resources, Ltd. ...... 30,000 139,389
Ranger Minerals, N.L.+ ........ 14,000 42,809
Resolute Samantha, Ltd. ....... 35,000 72,832
Sons of Gwalia, N.L., ADR ..... 5,000 147,533
---------
1,633,100
---------
Canada-32.37%
Barrick Gold Corp. ............ 13,000 373,750
Battle Mountain Canada+ ....... 24,593 170,452
Cambior, Inc. ................. 10,000 146,250
Dayton Mining Corp.+ .......... 30,000 200,625
Echo Bay Mines, Ltd. .......... 17,000 112,625
El Callao Mining Corp.+ ....... 60,000 57,342
Euro-Nevada Mining Corp. ...... 5,800 173,070
Golden Star Resources, Ltd.+ .. 10,000 130,000
Meridian Gold, Inc.+ .......... 39,000 92,473
Miramar Mining Corp.+ ......... 30,000 131,250
Pangea Goldfields, Inc.+ ...... 10,000 46,693
Placer Dome, Inc. ............. 14,500 315,375
Rift Resources, Ltd.+ ......... 100,000 98,850
Tombstone Exploration
Co., Ltd.+ .................. 70,000 109,795
Treminco Resources, Ltd.+ ..... 50,000 51,070
Viceroy Resources Corp.+ ...... 25,200 112,150
Vista Gold Corp.+ ............. 90,000 123,750
---------
2,445,520
---------
Ghana-1.18%
Ashanti Goldfields Co., Ltd.+ . 2,222 $ 27,480
Ashanti Goldfields Co., Ltd.,
GDR ......................... 5,000 61,875
---------
89,355
---------
Peru-0.58%
Compania de Minas
Buenaventura, S.A. .......... 2,550 43,509
---------
South Africa-7.24%
Driefontein Consolidated, Ltd.,
ADR ......................... 11,000 110,000
Free State Consolidated Gold
Mines, Ltd., ADR ............ 14,000 100,625
Harmony Gold Mining, ADR+ ..... 10,000 78,750
Kloof Gold Mining Co.,
Ltd., ADR ................... 10,000 78,125
Vaal Reefs Exploration & Mining
Co., Ltd., ADR .............. 12,000 74,250
Western Deep Levels, Ltd.,
ADR ......................... 3,500 105,000
---------
546,750
---------
United States-33.61%
Crown Resources Corp.+ ........ 35,000 216,563
Freeport McMoRan Copper &
Gold, Inc. .................. 8,000 225,000
Getchell Gold Corp.+ .......... 8,000 307,000
Goldcorp, Inc., Class A+ ...... 20,000 170,000
Homestake Mining Co. .......... 24,000 342,000
Meridian Gold, Inc.+ .......... 18,000 74,250
Newmont Gold Co. .............. 3,000 131,250
Newmont Mining Corp. .......... 6,999 313,205
Pegasus Gold, Inc.+ ........... 12,000 90,750
Royal Gold, Inc.+ ............. 8,700 116,363
Royal Oak Mines, Inc.+ ........ 40,000 130,000
Santa Fe Pacific Gold Corp. ... 17,000 261,374
Stillwater Mining Co.+ ........ 4,500 81,563
USMX, Inc.+ ................... 50,000 79,685
---------
2,539,003
---------
TOTAL COMMON STOCK
(Cost $7,094,124) ......... 7,297,237
---------
- ----------
+ Non-income producing security.
See notes to financial statements.
6
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
GOLD STOCK PORTFOLIO
December 31, 1996
Market
Principal Value
Company Value (Note B)
- ------- ------ --------
BONDS-1.98%
Randgold Finance Ltd., 7.000%,
due 09/30/01 ......................... $150,000 $ 150,000
----------
TOTAL BONDS
(Cost $150,000) .................... 150,000
----------
SHORT-TERM OBLIGATIONS-4.63%
General Electric Capital Corporation,
5.500%, due 01/02/97 ................. 350,000 349,947
----------
TOTAL SHORT-TERM
OBLIGATIONS
(Cost $349,947) ................... 349,947
----------
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
WARRANTS-0.08%
Canada-0.08%
Rift Resources, Ltd.++ + ............... 50,000 $ 0
Tombstone Exploration Co.,
Ltd.++ + ............................. 50,000 5,955
Vista Gold Corp.++ + ................... 30,000 0
-----------
TOTAL WARRANTS
(Cost $0) .......................... 5,955
-----------
TOTAL INVESTMENTS
(Cost $7,594,071*) ................. 103.29% 7,803,139
Other assets, less liabilities ......... (3.29) (248,712)
------- -----------
TOTAL NET ASSETS .................... 100.00% $ 7,554,427
======= ===========
- ----------
*Aggregate cost for Federal income tax purposes
+Non-income producing security.
++Restricted security
See notes to financial statements.
7
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
DOMESTIC GROWTH STOCK PORTFOLIO
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-106.48%
Automotive & Trucking-0.89%
Wabash National Corp. .............. 30,000 $ 551,250
----------
Building & Construction-2.57%
Belmont Homes, Inc.+ ............... 70,000 673,750
Southern Energy Homes, Inc.+ ....... 80,500 925,750
----------
1,599,500
----------
Chemicals-0.56%
Furon Corp. ........................ 16,400 348,500
----------
Commercial Services-5.72%
AccuStaff, Inc.+ ................... 60,000 1,267,500
Kelly Services, Inc., Class A ...... 40,000 1,080,000
Personnel Group of America,
Inc.+ ............................ 50,000 1,206,250
----------
3,553,750
----------
Computer Software & Services-5.74%
Autodesk, Inc. ..................... 25,000 700,000
BancTec, Inc.+ ..................... 50,000 1,031,250
Banyan Systems, Inc.+ .............. 60,000 270,000
DST Systems, Inc.+ ................. 50,000 1,568,750
----------
3,570,000
----------
Computers-7.81%
Cerion Technologies, Inc.+ ......... 40,000 260,000
Data General Corp.+ ................ 90,000 1,305,000
EMC Corp./Mass+ .................... 40,000 1,325,000
Silicon Graphics, Inc.+ ............ 45,000 1,147,500
Stratus Computers, Inc.+ ........... 30,000 817,500
----------
4,855,000
----------
Electrical Equipment-3.86%
Vishay Intertechnology, Inc.+ ...... 47,250 1,104,469
Westinghouse Electric
Co. .............................. 65,000 1,291,875
----------
2,396,344
----------
Electronics-8.86%
Arrow Electronics, Inc.+ ........... 25,000 $1,337,500
Holophane Corp.+ ................... 42,500 807,500
Tencor Instruments+ ................ 60,000 1,582,500
Teradyne, Inc.+ .................... 60,000 1,462,500
Whittaker Corp.+ ................... 25,000 315,625
----------
5,505,625
----------
Financial Services-6.79%
Aames Financial Corp. .............. 40,000 1,435,000
Amresco, Inc.+ ..................... 55,000 1,471,250
PNC Banc Corp. ..................... 35,000 1,316,875
----------
4,223,125
----------
Health Care-9.53%
Apria Healthcare Group, Inc.+ ...... 70,000 1,312,500
Coastal Physician Group, Inc.+ ..... 60,000 210,000
Integrated Health Services, Inc. ... 60,000 1,462,500
Lincare Holdings, Inc. ............. 45,000 1,845,000
Tenet Healthcare Corp.+ ............ 50,000 1,093,750
----------
5,923,750
----------
Insurance-9.44%
American Bankers, Inc. ............. 25,000 1,278,125
Citizens Corp. ..................... 50,000 1,125,000
TIG Holdings, Inc. ................. 32,000 1,084,000
UNUM Corp. ......................... 15,000 1,083,750
Western National Corp. ............. 67,500 1,299,375
----------
5,870,250
----------
Leisure & Entertainment-2.61%
Action Performance Companies,
Inc.+ ............................ 90,000 1,620,000
----------
Lodging-2.83%
Host Marriott Corp.+ ............... 110,000 1,760,000
----------
- ----------
+Non-income producing security.
See notes to financial statements.
8
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
DOMESTIC GROWTH STOCK PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Machinery-4.31%
Duriron, Inc. ................................. 35,000 $ 949,375
Lamson & Sessions, Inc.+ ...................... 80,700 585,075
N.N. Ball & Roller, Inc. ...................... 75,000 1,143,750
------------
2,678,200
------------
Manufacturing-1.88%
Toy Biz, Inc.+ ................................ 60,000 1,170,000
------------
Medical Supplies-5.86%
Healthdyne Technologies, Inc.+ ................ 91,766 814,423
Heartstream, Inc.+ ............................ 100,000 1,250,000
Schering-Plough Corp. ......................... 15,000 971,250
Sun Healthcare Group, Inc.+ ................... 45,000 607,500
------------
3,643,173
------------
Mining & Metals-2.69%
A.M. Castle & Co. ............................. 48,187 927,600
Roanoke Electric Steel Corp. .................. 44,550 746,213
------------
1,673,813
------------
Networking Products-2.56%
Cisco Systems, Inc.+ .......................... 25,000 1,590,625
------------
Oil - Crude, Service & Equipment-5.77%
Ensco International, Inc.+ .................... 45,000 2,182,500
Seagull Energy Corp.+ ......................... 20,000 440,000
Weatherford Enterra, Inc.+ .................... 32,110 963,300
------------
3,585,800
------------
Real Estate-7.11%
CenterPoint Properties Corp. .................. 47,300 $ 1,549,075
FAC Realty, Inc. .............................. 45,000 298,125
Gables Residential Trust ...................... 50,000 1,450,000
Horizon Group, Inc. ........................... 56,500 1,122,937
------------
4,420,137
------------
Retail Stores-3.90%
Consolidated Stores Corp.+ .................... 43,750 1,405,469
Party City Corp.+ ............................. 60,000 1,020,000
------------
2,425,469
------------
Telecommunications-3.04%
American Paging, Inc.+ ........................ 113,800 533,438
DSP Communications, Inc.+ ..................... 70,000 1,356,250
------------
1,889,688
------------
Textile & Apparel-2.15%
Designer Holdings, Ltd.+ ...................... 30,000 483,750
Ridgeview, Inc.+ .............................. 116,000 855,500
------------
1,339,250
------------
TOTAL COMMON STOCK
(Cost $57,127,636) ........................ 66,193,249
------------
TOTAL INVESTMENTS
(Cost $57,127,636*) ....................... 106.48% 66,193,249
Other assets, less liabilities ................ (6.48) (4,026,883)
------- ------------
TOTAL NET ASSETS ........................... 100.00% $62,166,366
======= ============
- ----------
*Aggregate cost for Federal income tax purposes.
+Non-income producing security.
See notes to financial statements.
9
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BOND PORTFOLIO
December 31, 1996
Market
Principal Value
Company Value (Note B)
- ------- ------ --------
CORPORATE BONDS-0.46%
Corning Glass, 8.250%,
due 03/15/02 .......................... $ 50,000 $ 53,429
------------
TOTAL CORPORATE
BONDS (Cost $48,801) ................ 53,429
------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS-103.63%
Federal Home Loan Mortgage
Corporation, Pool #C80090,
6.000%, due 01/01/24 .................. 528,611 495,086
Federal National Mortgage
Association, 9.550%,
due 09/10/97 .......................... 55,000 56,440
Federal National Mortgage
Association, CMO #8829B,
9.500%, due 12/25/18 .................. 68,139 72,028
Federal National Mortgage
Association, Pool #248672,
6.000%, due 12/01/23 .................. 170,942 158,709
Federal National Mortgage
Association, Pool #261605,
6.000%, due 01/01/24 .................. 706,979 656,385
Federal National Mortgage
Association, Pool #267376,
6.000%, due 01/01/24 .................. 179,066 166,252
Government National Mortgage
Association, Pool #190666,
9.000%, due 12/15/16 .................. 91,609 96,533
Government National Mortgage
Association, Pool #780339,
8.000%, due 12/15/23 .................. 905,439 929,233
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS-(Continued)
Government National Mortgage
Association, Pool #402760,
8.000%, due 08/15/25 .................. $ 914,878 $ 933,175
U.S. Treasury Note, 7.750%,
due 11/30/99 .......................... 730,000 762,394
U.S. Treasury Note, 6.750%,
due 04/30/00 .......................... 380,000 387,244
U.S. Treasury Note, 6.125%,
due 09/30/00 .......................... 2,050,000 2,049,358
U.S. Treasury Note, 8.000%,
due 05/15/01 .......................... 200,000 213,687
U.S. Treasury Note, 6.625%,
due 07/31/01 .......................... 500,000 508,125
U.S. Treasury Note, 6.250%,
due 02/15/03 .......................... 2,890,000 2,887,289
U.S. Treasury Note, 10.375%,
due 11/15/12 .......................... 1,375,000 1,771,172
------------
TOTAL U.S. GOVERNMENT
AND AGENCY
OBLIGATIONS
(Cost $12,103,806) .................. 12,143,110
------------
TOTAL INVESTMENTS
(Cost $12,152,607*) ................. 104.09% 12,196,539
Other assets, less liabilities .......... (4.09) (478,846)
------- ------------
TOTAL NET ASSETS ..................... 100.00% $ 11,717,693
======= ============
- ----------
*Aggregate cost for Federal income tax purposes.
See notes to financial statements.
10
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
GROWTH AND INCOME PORTFOLIO
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-99.67%
Automobiles-3.70%
Chrysler Corp. ................................... 14,200 $ 468,600
Ford Motor Co. ................................... 12,800 408,000
----------
876,600
----------
Automotive - Parts & Accessories-5.84%
Borg-Warner Automotive ........................... 14,900 573,650
Cummins Engine, Inc. ............................. 4,700 216,200
The Goodyear Tire & Rubber
Co. ............................................ 11,600 595,950
----------
1,385,800
----------
Banking-9.79%
Chase Manhattan Corp. ............................ 6,100 544,425
Citicorp ......................................... 5,600 576,800
KeyCorp. ......................................... 12,033 607,667
Mellon Bank Corp. ................................ 8,350 592,850
----------
2,321,742
----------
Building Materials-6.79%
Black & Decker Corp. ............................. 20,000 602,500
Lafarge Corp. .................................... 24,600 495,075
Owens Corning .................................... 12,000 511,500
----------
1,609,075
----------
Chemicals-0.18%
Millenium Chemicals, Inc.+ ....................... 2,471 43,860
----------
Electronics-7.16%
Philips Electronics, NV .......................... 13,700 548,000
Tektronix, Inc. .................................. 11,400 584,250
UCAR International, Inc.+ ........................ 15,000 564,375
----------
1,696,625
----------
Financial Services-7.93%
First Chicago NBD Corp. .......................... 11,459 $ 615,921
Merrill Lynch & Co. .............................. 8,000 652,000
PaineWebber Group, Inc. .......................... 21,800 613,125
----------
1,881,046
----------
Food Processing-4.43%
IBP, Inc. ........................................ 19,600 475,300
Philip Morris Companies, Inc. .................... 5,100 574,388
----------
1,049,688
----------
Forest Products & Paper-2.31%
Asia Pulp & Paper, Co., Ltd.,
ADR+ ........................................... 48,100 547,137
----------
Health Care Products-2.36%
Bard (C.R.), Inc. ................................ 20,000 560,000
----------
Holding Companies-0.98%
Hanson PLC, ADR .................................. 34,600 233,550
----------
Home Furnishings-2.83%
Singer Co., NV ................................... 30,000 671,250
----------
Insurance-13.49%
Equitable Companies, Inc. ........................ 15,000 369,375
LaSalle Re Holdings .............................. 18,900 552,825
Old Republic International Corp. ................. 19,800 529,650
PMI Group, Inc. .................................. 12,000 664,500
Progressive Corp. ................................ 8,200 552,475
W.R. Berkley Corp. ............................... 10,400 527,800
----------
3,196,625
----------
- ----------
+Non-income producing security.
See notes to financial statements.
11
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
GROWTH AND INCOME PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Mining & Metals-11.16%
Alumax, Inc.+ ............................. 16,500 $ 550,687
Ball Corp. ................................ 25,000 650,000
Carpenter Technology
Corp. ................................... 13,500 494,437
Cyprus Amax Minerals ...................... 21,900 511,913
Inco, Ltd., ADR ........................... 13,800 439,875
-----------
2,646,912
-----------
Oil - Domestic-4.46%
YPF Sociedad Anonima, S.A.,
ADR ..................................... 20,600 520,150
Ultramar Corp. ............................ 17,000 537,625
-----------
1,057,775
-----------
Packaging & Containers-3.92%
Owens-Illinois, Inc.+ ..................... 40,900 930,475
-----------
Retail - Specialty-2.15%
Circuit City Stores, Inc. ................. 16,900 509,113
-----------
Technology - Semiconductors-2.51%
Avnet, Inc. ............................... 10,200 594,150
-----------
Textiles & Apparel-3.13%
Burlington Industries, Inc.+ .............. 4,900 $ 53,900
Reebok International, Ltd. ................ 16,400 688,800
-----------
742,700
-----------
Transportation-4.55%
Burlington Northern, Inc. ................. 6,100 526,887
Federal Express+ .......................... 12,400 551,800
-----------
1,078,687
-----------
TOTAL COMMON STOCK
(Cost $19,449,541) .................... 23,632,810
-----------
TOTAL INVESTMENTS ...................... 99.67% 23,632,810
(Cost $19,449,541*)
Other assets, less liabilities ............ 0.33 78,886
------- -----------
TOTAL NET ASSETS ....................... 100.00% $23,711,696
====== ===========
- ----------
*Aggregate cost for Federal income tax purposes.
+Non-income producing security.
See notes to financial statements.
12
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
CAPITAL GROWTH PORTFOLIO
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-113.06%
Aerospace Equipment-2.69%
Boeing Co. ............................... 13,475 $ 1,433,403
United Technologies
Corp. .................................. 7,100 468,600
-----------
1,902,003
-----------
Airlines-4.41%
UAL Corp.+ ............................... 50,000 3,125,000
-----------
Appliances-4.40%
General Electric Co. ..................... 31,500 3,114,562
-----------
Banking-0.48%
First Empire State Corp. ................. 1,175 338,400
-----------
Beverages-6.67%
Coca Cola Enterprise, Inc. ............... 55,075 2,671,137
PepsiCo, Inc. ............................ 70,325 2,057,006
-----------
4,728,143
-----------
Building Materials-2.24%
Assa Abloy AB-B .......................... 87,283 1,585,098
-----------
Chemicals-7.54%
Cytec Industries, Inc.+ .................. 55,550 2,256,719
Monsanto Co. ............................. 79,375 3,085,703
-----------
5,342,422
-----------
Commercial Services-0.92%
National Processing, Inc.+ ............... 40,550 648,800
-----------
Communication Systems-5.99%
Ascend Communications, Inc.+ ............. 25,000 1,553,125
Danka Business Systems, ADR .............. 53,175 1,881,066
MFS Communications Co.,
Inc.+ .................................. 14,825 807,963
-----------
4,242,154
-----------
Computers-7.97%
BA Merchant Services, Inc.+ .............. 125,000 $ 2,234,375
IBM Corp. ................................ 22,575 3,408,825
-----------
5,643,200
-----------
Financial Services-21.22%
Chase Manhattan Corp. .................... 37,500 3,346,875
CitiCorp ................................. 26,575 2,737,225
Federal National Mortgage
Association ............................ 80,000 2,980,000
Merrill Lynch & Co., Inc. ................ 29,550 2,408,325
Wells Fargo & Co. ........................ 13,216 3,565,016
-----------
15,037,441
-----------
Food Processing-1.09%
Nutricia Verenigde Bedrijven ............. 5,080 770,926
-----------
Hotels-2.29%
Mirage Resorts, Inc.+ .................... 75,000 1,621,875
-----------
Insurance-1.48%
United Insurance Companies+ .............. 32,300 1,049,750
-----------
Medical-2.04%
Warner-Lambert Co. ....................... 19,275 1,445,625
-----------
Medical Supplies-8.52%
Boston Scientific Corp.+ ................ 35,000 2,100,000
Bristol-Myers Squibb Co. ................. 600 65,250
HBO & Co. ................................ 34,000 2,018,750
Merck & Co., Inc. ........................ 23,325 1,848,506
-----------
6,032,506
-----------
Packaging & Containers-1.21%
Sealed Air Corp.+ ........................ 20,575 856,434
-----------
- ----------
+Non-income producing security.
See notes to financial statements.
13
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
CAPITAL GROWTH PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Pharmaceuticals-11.06%
Eli Lilly and Co. ......................... 37,000 $ 2,701,000
Glaxo Wellcome, PLC ....................... 46,749 760,013
Pfizer, Inc. .............................. 32,600 2,701,725
Roche Holding, AG,
Genusshein .............................. 91 705,854
Smithkline Beecham, PLC, ADR .............. 14,250 969,000
------------
7,837,592
------------
Pollution Control-1.61%
WMX Technology Inc. ....................... 35,000 1,141,875
------------
Publishing-0.00%
Wolters Kluwer, CVA ....................... 1 113
------------
Restaurants & Food Service-0.66%
Harvey Nichols, PLC+ ...................... 78,500 467,491
------------
Software Products & Services-9.16%
Electronics For Imaging+ .................. 9,425 775,206
First Data Corp. .......................... 80,150 2,925,475
Getronics, NV ............................. 44,741 1,213,094
HNC Software+ ............................. 36,600 1,148,325
Misys, PLC ................................ 22,307 424,112
------------
6,486,212
------------
Telecommunications-4.60%
Lucent Technologies, Inc. ................. 70,400 $ 3,256,000
------------
Textiles & Apparel-4.81%
Gucci Group, ADR .......................... 6,650 424,769
Nike, Inc., Class B ....................... 49,950 2,984,513
------------
3,409,282
------------
TOTAL COMMON STOCK
(Cost $73,631,704) .................... 80,082,904
------------
TOTAL INVESTMENTS
(Cost $73,631,704*) ................... 113.06% 80,082,904
Other assets, less liabilities ............ (13.06) (9,250,742)
-------- ------------
TOTAL NET ASSETS ....................... 100.00% $ 70,832,162
======== ============
- ----------
*Aggregate cost for Federal income tax purposes.
+Non-income producing security.
See notes to financial statements.
14
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BALANCED PORTFOLIO
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-60.44%
Aerospace Equipment-1.33%
Allied Signal, Inc. ............................ 1,400 $ 93,800
Boeing Co. ..................................... 1,400 148,925
--------
242,725
--------
Automotive Manufacturing-0.20%
Chrysler Corp. ................................. 1,100 36,300
--------
Banking-1.89%
BankAmerica Corp. .............................. 1,300 129,675
Chase Manhattan Bank ........................... 1,100 98,175
Mellon Bank Corp. .............................. 1,100 78,100
NationsBank Corp. .............................. 400 39,100
--------
345,050
--------
Beverages-1.75%
Coca Cola Co. .................................. 2,000 105,250
PepsiCo, Inc. .................................. 7,300 213,525
--------
318,775
--------
Beverages - Wine & Spirits-0.11%
Seagrams Co., Ltd. ............................. 500 19,375
--------
Broadcasting-0.44%
Westinghouse Electric Corp. .................... 4,000 79,500
--------
Chemicals-1.85%
Du Pont E.I. de Nemours Co. .................... 1,500 141,563
Eli Lilly & Co. ................................ 500 36,500
Monsanto Co. ................................... 4,100 159,387
--------
337,450
--------
Commercial Services-1.36%
Equifax, Inc. .................................. 6,800 208,250
Service Corporation
International ................................ 1,400 39,200
--------
247,450
--------
Communication Systems-2.50%
3COM Corp.+ .................................... 3,000 $220,125
Bell Atlantic Corp. ............................ 600 38,850
United Technologies Corp. ...................... 3,000 198,000
--------
456,975
--------
Computers-2.31%
International Business
Machines Corp. ............................... 1,600 241,600
Sun Microsystems, Inc.+ ........................ 7,000 179,813
--------
421,413
--------
Cosmetics-0.30%
Colgate Palmolive Co. .......................... 600 55,350
--------
Diversified Operations-1.48%
Cognizant Corp. ................................ 4,000 132,000
Minnesota Mining &
Manufacturing Co. ............................ 1,100 91,163
Tyco International, Ltd. ....................... 900 47,587
--------
270,750
--------
Electrical Equipment-0.90%
Honeywell, Inc. ................................ 2,500 164,375
--------
Electronics-1.71%
Emerson Electric, Co. .......................... 200 19,350
General Electric Co. ........................... 2,000 197,750
Perkin-Elmer Corp. ............................. 1,600 94,200
--------
311,300
--------
Entertainment & Leisure-0.46%
Walt Disney Co. ................................ 1,200 83,550
--------
Environmental Control-1.04%
Philip Environmental, Inc.+ .................... 3,000 43,500
Republic Industries, Inc.+ ..................... 1,500 46,781
USA Waste Services, Inc.+ ...................... 3,100 98,813
--------
189,094
--------
- ----------
+Non-income producing security.
See notes to financial statements.
15
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BALANCED PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Financial Services-2.52%
Citicorp ......................................... 1,000 $103,000
First USA, Inc. .................................. 4,600 159,275
MBNA Corp. ....................................... 2,000 83,000
T. Rowe Price & Associates ....................... 2,650 115,275
--------
460,550
--------
Food & Household Products-1.56%
Campbell Soup Co. ................................ 1,000 80,250
Procter & Gamble Co. ............................. 1,900 204,250
--------
284,500
--------
Health & Personal Care-1.66%
Bristol Myers Squibb Co. ......................... 1,500 163,125
Gillette Co. ..................................... 1,800 139,950
--------
303,075
--------
Insurance-4.90%
Allstate ......................................... 3,500 202,562
American International Group,
Inc. ........................................... 1,500 162,375
Conseco, Inc. .................................... 2,400 153,000
ITT Hartford Group ............................... 400 27,000
Marsh & McLennan, Inc. ........................... 1,000 104,000
TIG Holdings, Inc. ............................... 3,000 101,625
Travelers Group, Inc. ............................ 3,166 143,657
--------
894,219
--------
Lodging & Restaurant-2.05%
HFS, Inc.+ ....................................... 2,100 125,475
Hilton Hotels Corp. .............................. 3,200 83,600
Marriott International, Inc. ..................... 3,000 165,750
--------
374,825
--------
Machinery-1.58%
Deere & Co. ...................................... 2,300 93,438
Dover Corp. ...................................... 2,900 145,725
Thermo Electron Corp. ............................ 1,200 49,500
--------
288,663
--------
Medical - Hospital Mgt. & Services-0.56%
Boston Scientific Corp.+ ......................... 1,700 $102,000
--------
Medical Supplies & Services-1.12%
Columbia/HCA Healthcare
Corp. .......................................... 5,000 203,750
--------
Merchandising-0.93%
Home Depot, Inc. ................................. 3,400 170,425
--------
Office & Business Equipment-0.84%
Office Depot, Inc.+ .............................. 1,000 17,750
Texas Instruments, Inc. .......................... 900 57,375
Xerox Corp. ...................................... 1,500 78,938
--------
154,063
--------
Oil & Gas Exploration-1.92%
Apache Corp. ..................................... 2,200 77,825
Noble Affiliates, Inc. ........................... 4,000 191,500
Transocean Offshore, Inc. ........................ 1,300 81,413
--------
350,738
--------
Oil - Crude, Service & Equipment-3.07%
Consolidated Natural Gas Co. ..................... 1,400 77,350
Halliburton Co. .................................. 2,000 120,500
Schlumberger Ltd. ................................ 1,000 99,875
Tidewater, Inc. .................................. 3,000 135,750
Western Atlas, Inc.+ ............................. 1,800 127,575
--------
561,050
--------
Oil - Integrated-2.97%
British Petroleum Co., ADR ....................... 600 84,825
Chevron Corp. .................................... 2,400 156,000
Columbia Gas ..................................... 900 57,263
Exxon Corp. ...................................... 1,200 117,600
Mobil Corp. ...................................... 200 24,450
Royal Dutch Petroleum, ADR ....................... 600 102,450
--------
542,588
--------
- ----------
+Non-income producing security.
See notes to financial statements.
16
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BALANCED PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Pharmaceuticals-3.64%
Abbott Labs, Inc. ................................ 700 $ 35,525
American Home Products
Corp. .......................................... 2,000 117,250
Amgen, Inc.+ ..................................... 1,000 54,375
Johnson & Johnson ................................ 1,800 89,550
Merck & Co., Inc. ................................ 2,500 198,125
Pfizer, Inc. ..................................... 1,600 132,600
Warner Lambert Co. ............................... 500 37,500
----------
664,925
----------
Publishing & Printing-0.31%
New York Times Co. ............................... 1,500 57,000
----------
Retail Stores-2.65%
Staples, Inc.+ ................................... 5,500 99,344
CVS Corp. ........................................ 1,300 53,787
PetSmart, Inc.+ .................................. 5,900 129,062
Safeway, Inc.+ ................................... 4,700 200,925
----------
483,118
----------
Real Estate-0.20%
Redwood Trust, Inc. .............................. 1,000 37,250
----------
Software Products & Services-5.29%
Cisco Systems, Inc.+ ............................. 5,500 $ 349,937
Computer Associates International,
Inc. ........................................... 2,800 139,300
First Data Corp. ................................. 4,400 160,600
GT Interactive Software Corp.+ ................... 3,000 21,375
Microsoft Corp.+ ................................. 1,300 107,412
Oracle Corp.+ .................................... 4,500 187,875
----------
966,499
----------
Telecommunications-0.33%
Ameritech Corp. .................................. 700 42,437
Lucent Technologies, Inc. ........................ 400 18,500
----------
60,937
----------
Textiles & Apparel-0.82%
Nike, Inc. ....................................... 2,500 149,375
----------
Technology - Semiconductors-1.89%
Intel Corp. ...................................... 2,300 301,156
Micron Technology, Inc. .......................... 1,500 43,688
----------
344,844
----------
TOTAL COMMON STOCK
(Cost $10,135,809) ........................... 11,033,826
----------
- ----------
+Non-income producing security.
See notes to financial statements.
17
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BALANCED PORTFOLIO-(Continued)
December 31, 1996
Market
Principal Value
Company Value (Note B)
- ------- ------ --------
BONDS-41.19%
Municipal Bonds-1.74%
Dade County Florida, Educational
Bond, 5.750%,
due 04/01/20 .............................. $ 30,000 $ 30,546
Kergen County, California, Pension
Obligation, 7.260%,
due 08/15/14 .............................. 30,000 30,026
Long Beach, California, Pension
Obligation, 6.870%,
due 09/01/06 .............................. 20,000 19,817
Miami Beach, Florida, Special
Obligation, 8.600%,
due 09/01/21 .............................. 70,000 76,889
San Bernardino County, California,
Fing. Auth. Pension
Obligation, 6.870%,
due 08/01/08 .............................. 10,000 9,804
San Bernardino County, California,
Fing. Auth. Pension
Obligation, 6.940%,
due 08/01/09 .............................. 25,000 24,425
University of Miami, Exchangeable
Revenue, 7.650%,
due 04/01/20 .............................. 105,000 106,963
Ventura County, California, Pension
Obligation, 6.580%,
due 11/01/06 .............................. 20,000 19,380
---------
317,850
---------
Corporate Bonds-0.26%
Fleetwood Credit Corp.,
Grantor Trust, 6.900%,
due 03/15/12 .............................. 47,385 47,800
---------
U.S. Government and
Agency Obligations-39.19%
Government National Mortgage
Association, 6.500%,
due 12/15/23 .............................. 180,553 172,484
Government National Mortgage
Association, 6.500%,
due 07/15/24 .............................. 322,606 309,459
U.S. Government and
Agency Obligations-(Continued)
Government National Mortgage
Association, 6.500%,
due 04/15/26 .............................. $1,009,183 $ 964,084
U.S. Treasury Bond, 6.000%,
due 10/31/01 .............................. 700,000 700,656
U.S. Treasury Bond, 7.500%,
due 11/15/16 .............................. 550,000 595,375
U.S. Treasury Bond, 6.250%,
due 08/15/23 .............................. 275,000 257,813
U.S. Treasury Bond, 6.000%,
due 02/15/26 .............................. 30,000 27,300
U.S. Treasury Note, 6.160%,
due 12/31/01 .............................. 1,000,000 996,562
U.S. Treasury Note, 7.250%,
due 05/15/04 .............................. 395,000 415,861
U.S. Treasury Note, 6.500%,
due 10/15/06 .............................. 2,700,000 2,715,945
---------
7,155,539
---------
TOTAL BONDS
(Cost $7,493,161) ....................... 7,521,189
---------
Short-term obligations-5.88%
Heinz, 5.370%,
due 01/22/97 .............................. 420,000 418,684
Merck & Co., 5.280%,
due 01/15/97 .............................. 100,000 99,795
Preferred Receivables Funding
Corp., 5.350%,
due 01/16/97 .............................. 295,000 294,342
Procter & Gamble,
5.320%, due 01/07/97 ...................... 260,000 259,769
---------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $1,072,590) ....................... 1,072,590
---------
TOTAL INVESTMENTS
(Cost $18,701,560*) ..................... 107.51% 19,627,605
Other assets, less liabilities .............. (7.51) (1,371,175)
------ ----------
TOTAL NET ASSETS ......................... 100.00% $18,256,430
====== ==========
- ---------
*Aggregate cost for Federal income tax purposes
+Non-income producing security.
See notes to financial statements.
18
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-90.02%
Advertising-0.17%
Sabre Group Holdings, Inc.+ .................. 1,600 $ 44,600
Harvard Consultant Holdings
Corp.+ ..................................... 300 7,425
---------
52,025
---------
Automotive Parts & Accessories-0.20%
APS Holdings Corp.,
Class A+ ................................... 4,000 62,000
---------
Broadcasting - Radio & TV-2.19%
Cox Radio, Inc.+ ............................. 8,000 140,000
Heritage Media Corp.,
Class A+ ................................... 5,600 63,000
Jacor Communications, Inc.+ .................. 1,200 32,850
LIN Television Corp.+ ........................ 8,025 339,056
Sinclair Broadcasting Group,
Inc.+ ...................................... 1,200 31,200
Univision Communications,
Inc.+ ...................................... 1,800 66,600
---------
672,706
---------
Chemicals-0.17%
Betz Laboratories, Inc. ...................... 900 52,650
---------
Commercial Services-6.98%
AccuStaff, Inc.+ ............................. 15,700 331,662
Affiliated Computer Services,
Inc.+ ...................................... 12,800 380,800
CUC International, Inc.+ ..................... 20,825 494,594
Employee Solutions, Inc.+ .................... 9,600 196,800
Equity Corp., International+ ................. 900 18,000
International Network
Services+ .................................. 100 3,019
Learning Tree International,
Inc.+ ...................................... 19,050 561,975
Loewen Group, Inc. ........................... 3,400 133,025
Service Corporation,
International .............................. 1,100 30,800
---------
2,150,675
---------
Computer & Office Equipment-3.90%
3COM Corp.+ .................................. 6,100 $ 447,587
BT Office Products International,
Inc.+ ...................................... 1,500 13,312
Bay Networks, Inc.+ .......................... 100 2,087
Cabletron Systems, Inc.+ ..................... 12,200 405,650
Danka Business Systems, ADR .................. 9,400 332,525
---------
1,201,161
---------
Computer Software - Mainframe-22.17%
BMC Software, Inc.+ .......................... 30,200 1,249,525
Cadence Design Systems,
Inc.+ ...................................... 27,700 1,101,075
Computer Associates Int'l.,
Inc. ....................................... 21,875 1,088,281
Computer Sciences Co.+ ....................... 3,800 312,075
Compuware Corp.+ ............................. 10,100 506,262
DST Systems, Inc.+ ........................... 9,600 301,200
First Data Corp. ............................. 12,800 467,200
Oracle Systems Corp.+ ........................ 34,500 1,440,375
Sybase, Inc.+ ................................ 6,400 106,800
Transaction Systems Architects,
Inc.+ ...................................... 4,900 162,925
Xionics Document Technologies,
Inc.+ ...................................... 7,400 92,500
---------
6,828,218
---------
Computers Software - P.C.-13.30%
Adobe Systems, Inc. .......................... 850 31,769
Autodesk, Inc. ............................... 100 2,800
Cisco Systems, Inc.+ ......................... 17,675 1,124,572
Information Management
Resources, Inc.+ ........................... 200 4,225
Microsoft Corp.+ ............................. 7,800 644,475
Parametric Technology+ ....................... 6,650 342,059
Spectrum Holobyte, Inc.+ ..................... 2,300 17,250
Sun Microsystems, Inc.+ ...................... 16,100 413,569
Synopsys, Inc.+ .............................. 3,800 175,750
System, Anwendungen, Prudukte,
ADR ........................................ 1,500 70,106
Technology Solutions Co.+ .................... 27,400 1,137,100
USCS International, Inc.+ .................... 2,300 38,813
Viasoft, Inc.+ ............................... 2,000 94,500
---------
4,096,988
---------
- ----------
+Non-income producing security.
See notes to financial statements.
19
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Consulting Services-0.01%
Forrester Research, Inc.+ ........................ 100 $ 2,575
---------
Cosmetics-0.99%
Carson, Inc.+ .................................... 22,000 305,250
---------
Data Processing & Reproduction-0.63%
Sterling Software, Inc.+ ......................... 6,100 192,913
---------
Electronics-5.00%
ADT, Ltd.+ ....................................... 11,500 263,062
Altera Corp.+ .................................... 6,500 472,469
LSI Logic Corp.+ ................................. 6,100 163,175
Linear Technology Corp. .......................... 4,650 204,019
Pace Micro Technology, PLC+ ...................... 70,200 276,300
Teradyne, Inc.+ .................................. 4,700 114,562
Ultratech Stepper, Inc.+ ......................... 2,000 47,500
---------
1,541,087
---------
Electronics - Semiconductor-3.35%
Actel Corp.+ ..................................... 2,900 68,875
Analog Devices, Inc.+ ............................ 6,700 226,962
Atmel Corp.+ ..................................... 3,800 125,875
Intel Corp. ...................................... 1,600 209,500
Lattice Semiconductor Corp.+ ..................... 3,900 179,400
VLSI Technology, Inc.+ ........................... 5,900 140,862
Xilinx, Inc.+ .................................... 2,200 80,987
---------
1,032,461
---------
Entertainment & Leisure-0.74%
Harrah's Entertainment, Inc.+ .................... 11,200 222,600
International Speedway+ .......................... 200 4,100
---------
226,700
---------
Environmental Control-0.78%
Republic Industries, Inc.+ ....................... 100 3,119
USA Waste Systems, Inc.+ ......................... 7,440 237,150
---------
240,269
---------
Financial Services-1.16%
Associates First Capital Corp. ................... 600 $ 26,475
Dean Witter Discover & Co. ....................... 1,100 72,875
Franklin Resources, Inc. ......................... 600 41,025
MBNA Corp. ....................................... 5,200 215,800
---------
356,175
---------
Food & Household Products-0.88%
Earthgrains Co. .................................. 5,200 271,700
---------
Insurance-4.08%
Foundation Health Corp.+ ......................... 100 3,175
Healthsource, Inc.+ .............................. 5,500 72,188
United Healthcare Corp. .......................... 26,250 1,181,250
---------
1,256,613
---------
Lodging-5.56%
HFS, Inc.+ ....................................... 23,550 1,407,113
Promus Hotel Corp.+ .............................. 6,600 195,525
Renaissance Hotel Group, N.V.+ ................... 4,600 108,100
U.S. Franchise Systems, Inc.+ .................... 200 2,025
---------
1,712,763
---------
Machines - Diversified-0.30%
National - Oilwell, Inc.+ ........................ 200 6,150
SI Handling Systems, Inc. ........................ 5,800 87,363
---------
93,513
---------
Manufacturing-2.45%
Shaw Group, Inc.+ ................................ 12,300 287,513
Tyco International, Ltd. ......................... 8,800 465,300
---------
752,813
---------
Marketing-0.02%
Nu Skin Asia Pacific, Inc.,
Class A+ ....................................... 200 6,175
---------
Medical - Hospitals-2.74%
Columbia/HCA Health .............................. 75 3,056
HealthSouth Corp.+ ............................... 10,300 397,838
Pacificare Health Systems,
Class B+ ....................................... 5,200 443,300
---------
844,194
---------
- ----------
+Non-income producing security.
See notes to financial statements.
20
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
COMMON STOCK-Continued
Medical Supplies-0.49%
St. Jude Medical, Inc.+ .......................... 2,650 $ 112,956
Ventritex, Inc.+ ................................. 1,500 36,938
--------
149,894
--------
Oil & Gas Exploration-0.27%
Barrett Resources Corp.+ ......................... 1,700 72,463
Offshore Energy Development+ ..................... 100 1,525
Titan Exploration, Inc.+ ......................... 800 9,600
--------
83,588
--------
Paper Products-0.09%
Thermo Fibergen, Inc.+ ........................... 2,500 26,250
--------
Pharmaceuticals-1.00%
Biochem Pharmaceuticals,
Inc.+ .......................................... 6,150 309,038
--------
Restaurants & Food Service-1.20%
Alco Standard Corp. .............................. 2,400 123,900
Applebee's International, Inc. ................... 8,900 244,750
--------
368,650
--------
Retail-2.36%
Fila Holdings, SPA, ADR .......................... 2,875 167,109
Hollywood Entertainment Corp.+ ................... 4,100 75,850
Mazel Stores, Inc.+ .............................. 100 2,250
Micro Warehouse, Inc.+ ........................... 700 8,225
Office Depot, Inc.+ .............................. 6,900 122,475
Staples, Inc.+ ................................... 19,400 350,413
--------
726,322
--------
Retail - Specialty-1.30%
Corporate Express, Inc.+ ......................... 9,100 $ 267,881
General Nutrition Companies,
Inc.+ .......................................... 6,600 111,375
Linens N' Things, Inc.+ .......................... 1,100 21,588
---------
400,844
---------
Telecommunication-4.31%
Glenayre Technologies, Inc.+ ..................... 17,150 369,797
Lucent Technologies, Inc. ........................ 2,900 134,125
Tel-Save Holdings, Inc.+ ......................... 150 4,350
Worldcom, Inc.+ .................................. 31,400 818,362
---------
1,326,634
---------
Textiles & Apparel-0.21%
Gucci Group ...................................... 450 28,744
Nine West Group, Inc.+ ........................... 800 37,100
--------
65,844
--------
Transportation-0.97%
Kansas City Southern Industries,
Inc. ........................................... 4,400 198,000
Wisconsin Central Transportation
Corp.+ ......................................... 2,500 99,063
--------
297,063
--------
Wholesale-0.05%
Ingram Micro, Inc.+ .............................. 600 13,800
--------
TOTAL COMMON STOCK
(Cost $24,177,059) ........................... 27,719,551
--------
- ----------
+Non-income producing security.
See notes to financial statements.
21
<PAGE>
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO-(Continued)
December 31, 1996
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
PREFERRED STOCKS-1.29%
Computer Software - P.C.-1.29%
Systeme, Anwendugen,
Pruduckte ............................... 2,900 $ 398,557
----------
TOTAL PREFERRED STOCKS
(Cost $494,045) ........................ 398,557
----------
Market
Principal Value
Company Value (Note B)
- ------- ------ --------
BONDS-0.05%
Medical Supplies-0.05%
Ventritex, Inc., Convertible
5.750%, due 08/15/01 ..................... $ 10,000 $ 15,500
---------
TOTAL BONDS
(Cost $10,000) .......................... 15,500
---------
SHORT-TERM OBLIGATIONS-8.44%
Student Loan Marketing
Association, 6.300%,
due 01/02/97 ............................. 2,600,000 2,599,545
---------
TOTAL SHORT-TERM
OBLIGATIONS
(Cost $2,599,545) ...................... 2,599,545
---------
Number Market
of Value
Company Shares (Note B)
- ------- ------ --------
WARRANTS & RIGHTS-1.98%
Electronics - Semiconductor-1.96%
Intel Corp. - Warrants .................... 6,550 $ 604,237
Paper Products-0.02%
Thermo Fibergen,
Inc. - Rights ........................... 2,500 6,250
----------
TOTAL WARRANTS & RIGHTS
(Cost $400,503) ........................ 610,487
----------
TOTAL INVESTMENTS
(Cost $27,681,152*) ................... 101.78% 31,343,640
Other assets, less liabilities ............ (1.78) (549,610)
TOTAL NET ASSETS ....................... 100.00% $ 30,794,030
====== ===========
- ----------
*Aggregate cost for Federal income tax purposes
+Non-income producing security.
See notes to financial statements.
22
<PAGE>
[This page intentionally left blank]
<PAGE>
CHUBB AMERICA FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
<TABLE>
<CAPTION>
World
Growth Money Gold
Stock Market Stock
Portfolio Portfolio Portfolio
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
Investments-at cost-see accompanying portfolios ............. $ 77,765,094 $ 7,740,635 $ 7,594,071
============= ============= =============
Investments, at market value (Notes B and C) ............... $ 97,139,036 $ 7,739,400 $ 7,803,139
Cash ....................................................... 1,237,333 549,360 10,597
Receivable for accrued investment income ................... 408,079 634 7,019
Receivable for portfolio securities sold ................... 2,051,470 417,399
Other assets ............................................... 5,400
Deferred organization costs (Note B) .......................
------------- ------------- -------------
Total Assets ............................................ 100,835,918 8,289,394 8,243,554
LIABILITIES
Net payable for capital shares redeemed ....................
Dividends payable .......................................... 7,106,756 387,924 196,148
Payable for portfolio securities purchased ................. 1,653,028 485,692
Accrued investment advisory fees (Note D) .................. 63,528 3,752 4,977
Accrued expenses ........................................... 16,972 1,461 2,310
------------- ------------- -------------
Total Liabilities ........................................ 8,840,284 393,137 689,127
NET ASSETS .................................................. $ 91,995,634 $ 7,896,257 $ 7,554,427
============= ============= =============
NET ASSETS CONSIST OF:
Capital paid in ............................................ $ 71,067,714 $ 7,898,600 $ 7,377,161
Undistributed net investment income (loss) ................. (490,907) 105,318
Accumulated net realized gain (loss) on investments ........ 2,046,667 (1,108) (135,784)
Net unrealized gain (loss) on investments .................. 19,373,942 (1,235) 209,068
Net unrealized loss on translation of
assets and liabilities in foreign currencies (Note C) ..... (1,782) (1,336)
Capital gain distributions required for Federal tax
purposes over amounts recognized for financial
reporting (Note C) ........................................
------------- ------------- -------------
NET ASSETS .................................................. $ 91,995,634 $ 7,896,257 $ 7,554,427
============= ============= =============
Shares of common stock outstanding (no par value,
1,000,000,000 shares authorized) ......................... 3,947,054 770,648 454,995
============= ============= =============
Net asset value, offering and redemption price per share .... $ 23.31 $ 10.25 $ 16.60
============= ============= =============
</TABLE>
See notes to financial statements.
24
<PAGE>
<TABLE>
<CAPTION>
Domestic Growth
Growth and Capital Emerging
Stock Bond Income Growth Balanced Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- ---------
<C> <C> <C> <C> <C> <C>
$ 57,127,636 $ 12,152,607 $ 19,449,541 $ 73,631,704 $ 18,701,560 $ 27,681,152
============ ============ ============ ============ ============ ============
$ 66,193,249 $ 12,196,539 $ 23,632,810 $ 80,082,904 $ 19,627,605 $ 31,343,640
3,305,136 73,016 1,189,653 1,771,723 41,357 391,571
64,897 168,563 46,077 79,908 83,377 5,429
288,048 1,016,061 1,005,000 14,123
175 180 176
- ------------ ------------ ------------ ------------ ------------ ------------
69,851,330 12,438,118 24,868,715 82,950,776 20,757,515 31,754,763
44,727 13,843
7,630,013 669,587 1,123,435 12,034,502 1,476,274 930,604
1,007,150
44,973 5,472 15,999 71,687 12,975 22,121
9,978 639 3,742 12,425 4,686 8,008
- ------------ ------------ ------------ ------------ ------------ ------------
7,684,964 720,425 1,157,019 12,118,614 2,501,085 960,733
$ 62,166,366 $ 11,717,693 $ 23,711,696 $ 70,832,162 $ 18,256,430 $ 30,794,030
============ ============ ============ ============ ============ ============
$ 52,741,370 $ 11,672,624 $ 19,104,193 $ 62,852,475 $ 16,700,368 $ 27,298,182
1,873 169
359,383 1,137 424,234 1,526,661 629,848
9,065,613 43,932 4,183,269 6,451,200 926,045 3,662,488
(47)
(166,640)
- ------------ ------------ ------------ ------------ ------------ ------------
$ 62,166,366 $ 11,717,693 $ 23,711,696 $ 70,832,162 $ 18,256,430 $ 30,794,030
============ ============ ============ ============ ============ ============
3,418,546 1,141,490 1,402,464 4,103,167 1,513,162 2,021,917
============ ============ ============ ============ ============ ============
$ 18.19 $ 10.27 $ 16.91 $ 17.26 $ 12.07 $ 15.23
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
25
<PAGE>
CHUBB AMERICA FUND, INC.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
<TABLE>
<CAPTION>
World
Growth Money Gold
Stock Market Stock
Portfolio Portfolio Portfolio
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest ........................................... $ 551,779 $ 440,661 $ 16,930
Dividends .......................................... 2,348,890 65,013
Foreign taxes withheld ............................. (199,579) (3,934)
------------ ------------ ------------
Total investment
income ......................................... 2,701,090 440,661 78,009
------------ ------------ ------------
Expenses:
Advisory fees (Note D) ............................. 656,061 42,558 62,705
Custodian fees ..................................... 31,212 1,688 9,755
Shareholder reports ................................ 43,348 4,346 4,088
Professional fees .................................. 17,326 1,902 1,744
Insurance expense .................................. 4,723 467 454
Directors fees ..................................... 4,279 423 412
Security valuation ................................. 14,235 1,194 7,571
Miscellaneous expenses ............................. 1,662 159 673
Organization expense (Note B)
------------ ------------ ------------
Total expenses ................................... 772,846 52,737 87,402
------------ ------------ ------------
Net investment
income (loss) .................................. 1,928,244 387,924 (9,393)
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on investments ............. 7,256,749 (163) 589,746
Net realized gain (loss) from
foreign currency transactions ...................... (68,459) (9,933)
Net unrealized gain (loss) on investments ........... 6,417,179 (2,551) (473,134)
Net unrealized gain (loss) on translation
of assets and liabilities in foreign currencies 27,256 (1,344)
------------ ------------ ------------
Net realized and unrealized gain (loss) on
investments and foreign currencies ............. 13,632,725 (2,714) 105,335
------------ ------------ ------------
Net increase in net assets
resulting from operations .......................... $ 15,560,969 $ 385,210 $ 95,942
============ ============ ============
</TABLE>
See notes to financial statements.
26
<PAGE>
<TABLE>
<CAPTION>
Domestic Growth
Growth and Capital Emerging
Stock Bond Income Growth Balanced Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- ---------
<C> <C> <C> <C> <C> <C>
$ 83,777 $ 699,701 $ 35,826 $ 542,852 $ 469,158 $ 119,739
665,000 378,502 488,004 101,640 27,107
(5,330) (23,834) (183) (240)
- ------------ ------------ ------------ ------------ ------------ ------------
748,777 699,701 408,998 1,007,022 570,615 146,606
- ------------ ------------ ------------ ------------ ------------ ------------
480,015 53,464 135,739 703,701 134,709 173,563
6,740 930 2,854 29,798 14,378 44,312
32,741 4,814 9,911 36,781 9,336 12,276
14,393 1,511 4,032 13,183 3,910 4,817
3,450 582 966 3,781 973 1,150
3,126 528 875 3,426 882 1,042
5,580 1,676 3,208 5,229 9,340 11,184
739 878 442 1,283 660 2,200
727 721 721
- ------------ ------------ ------------ ------------ ------------ ------------
546,784 64,383 158,754 797,903 174,909 250,544
- ------------ ------------ ------------ ------------ ------------ ------------
201,993 635,318 250,244 209,119 395,706 (103,938)
- ------------ ------------ ------------ ------------ ------------ ------------
7,787,402 70,071 1,429,616 13,354,485 1,710,587 867,544
(17) 574 (2) 358
1,251,740 (363,167) 2,322,094 (2,436,070) (325,936) 2,223,109
(55)
- ------------ ------------ ------------ ------------ ------------ ------------
9,039,142 (293,096) 3,751,693 10,918,934 1,384,649 3,091,011
- ------------ ------------ ------------ ------------ ------------ ------------
$ 9,241,135 $ 342,222 $ 4,001,937 $ 11,128,053 $ 1,780,355 $ 2,987,073
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
27
<PAGE>
CHUBB AMERICA FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
World Growth Stock Money Market
Portfolio Portfolio
-------------------------- -----------------------
Year Year Year Year
Ended Ended Ended Ended
December December December December
31, 1996 31, 1995 31, 1996 31, 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income (loss) ..... $ 1,928,244 $ 1,578,594 $ 387,924 $ 401,686
Net realized gain (loss) on
investments ..................... 7,256,749 2,331,370 (163) (59)
Net realized gain (loss) from
foreign currency transactions ... (68,459) (144,377)
Net unrealized gain (loss)
on investments .................. 6,417,179 6,906,079 (2,551) 1,316
Net unrealized gain (loss) on
translation of assets and
liabilities in foreign currencies 27,256 (26,053)
------------ ----------- ----------- -----------
Net increase in net assets
resulting from operations ....... 15,560,969 10,645,613 385,210 402,943
Distributions to shareholders from
net investment income ............ (1,859,775) (1,504,890) (387,924) (401,686)
Distributions to shareholders in
excess of net investment income .. (36,899)
Distributions to shareholders from
capital gains .................... (5,766,822) (1,647,022)
Distributions to shareholders in
excess of capital gains ..........
Increase (decrease) in net assets
derived from shareholder
transactions (Note E) ............ 10,405,804 13,294,888 (413,705) 630,934
------------ ----------- ----------- -----------
Net increase (decrease) in
net assets ...................... 18,303,277 20,788,589 (416,419) 632,191
Net Assets:
Beginning of period .............. 73,692,357 52,903,768 8,312,676 7,680,485
------------ ----------- ----------- -----------
End of period .................... $ 91,995,634 $ 73,692,357 $ 7,896,257 $ 8,312,676
============ ============ ============ ============
Including under (over) distribution
of net investment income ......... $ (490,907) $ (454,018) $ 0 $ 0
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Domestic
Gold Stock Growth Stock
Portfolio Portfolio
------------------------ ---------------------------
Year Year Year Year
Ended Ended Ended Ended
December December December December
31, 1996 31, 1995 31, 1996 31, 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income (loss) ..... $ (9,393) $ 19,515 $ 201,993 $ 404,753
Net realized gain (loss) on
investments ..................... 589,746 1,128,650 7,787,402 6,833,811
Net realized gain (loss) from
foreign currency transactions ... (9,933) (5,423)
Net unrealized gain (loss)
on investments .................. (473,134) (763,459) 1,251,740 3,980,606
Net unrealized gain (loss) on
translation of assets and
liabilities in foreign currencies (1,344) 8
------------ ----------- ----------- -----------
Net increase in net assets
resulting from operations ....... 95,942 379,291 9,241,135 11,219,170
Distributions to shareholders from
net investment income ............ (19,549) (201,993) (404,753)
Distributions to shareholders in
excess of net investment income .. (18,006)
Distributions to shareholders from
capital gains .................... (196,148) (8,608,136) (6,681,176)
Distributions to shareholders in
excess of capital gains ..........
Increase (decrease) in net assets
derived from shareholder
transactions (Note E) ............ 786,988 (825,716) 13,217,474 12,925,979
------------ ----------- ----------- -----------
Net increase (decrease) in
net assets ...................... 686,782 (483,980) 13,648,480 17,059,220
Net Assets:
Beginning of period .............. 6,867,645 7,351,625 48,517,886 31,458,666
------------ ----------- ----------- -----------
End of period .................... $ 7,554,427 $ 6,867,645 $ 62,166,366 $ 48,517,886
============ ============ ============ ============
Including under (over) distribution
of net investment income ......... $ 0 $ (71,804) $ 0 $ 0
============ ============ ============ ============
</TABLE>
(A) For the period from May 1, 1995 (Commencement of Operations) to December
31, 1995.
See notes to financial statements.
28
<PAGE>
<TABLE>
<CAPTION>
Bond Growth and Income Capital Growth Balanced Emerging Growth
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------------- --------------------- --------------------- -------------------- ------------------------
Period
Year Year Year Year Year Year Year Year Year May 1,
Ended Ended Ended Ended Ended Ended Ended Ended Ended 1995 to
December December December December December December December December December December
31, 1996 31, 1995 31, 1996 31, 1995 31, 1996 31, 1995 31, 1996 31, 1995 31, 1996 31, 1995(A)
-------- -------- -------- -------- -------- -------- -------- -------- -------- -----------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 635,318 $ 644,900 $ 250,244 $ 132,259 $ 209,119 $ 82,795 $ 395,706 $ 454,979 $ (103,938) $ (35,141)
70,071 194,936 1,429,616 263,627 13,354,485 6,193,650 1,710,587 956,351 867,544 68,623
(17) 574 (1,143) (2) 358
(363,167) 775,732 2,322,094 1,988,518 (2,436,070) 7,917,932 (325,936) 1,446,230 2,223,109 1,439,379
(55) 1
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
342,222 1,615,568 4,001,937 2,384,404 11,128,053 14,193,235 1,780,355 2,857,560 2,987,073 1,472,861
(635,318) (644,900) (250,227) (132,259) (206,677) (82,795) (395,535) (454,979)
(34,269) (873,208) (263,627) (13,430,158) (4,477,144) (1,248,566) (868,152) (901,384)
(132,174) (62,702)
2,814,968 (4,807,023) 7,707,171 5,659,207 23,487,915 12,655,647 3,587,908 (1,767,014) 17,331,519 9,966,663
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,487,603 (3,836,355) 10,585,673 7,515,551 20,979,133 22,288,943 3,724,162 (232,585) 19,354,506 11,439,524
9,230,090 13,066,445 13,126,023 5,610,472 49,853,029 27,564,086 14,532,268 14,764,853 11,439,524 0
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$11,717,693 $ 9,230,090 $23,711,696 $13,126,023 $70,832,162 $49,853,029 $18,256,430 $14,532,268 $30,794,030 $11,439,524
========== ========== ========== ========== ========== ========== ========== ========== ========== ==========
$ 0 $ 0 $ 0 $ 0 $ 0 $ (1,143) $ 169 $ 0 $ 0 $ 0
========== ========== ========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
See notes to financial statements.
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
December 31, 1996
NOTE A-ORGANIZATION
Chubb America Fund, Inc. (the "Company") is a diversified open-end series
management investment company registered under the Investment Company Act of
1940, as amended. The Company was incorporated under the laws of the State of
Maryland on October 19, 1984 for the purpose of funding Flexible Premium
Variable Life Insurance Policies issued by Chubb Life Insurance Company of
America ("Chubb Life"). The Company is composed of nine separate portfolios
(the "Portfolios"): the World Growth Stock Portfolio, the Money Market
Portfolio, the Gold Stock Portfolio, the Domestic Growth Stock Portfolio, the
Bond Portfolio, the Growth and Income Portfolio, the Capital Growth
Portfolio, the Balanced Portfolio and the Emerging Growth Portfolio. Chubb
Life's ownership at December 31, 1996 is as follows:
<TABLE>
<CAPTION>
Percentage of
Portfolio Shares Owned Shares Outstanding
<S> <C> <C>
World Growth Stock 0 0
Money Market 0 0
Gold Stock 0 0
Domestic Growth Stock 0 0
Bond 0 0
Growth and Income 24,399 1.74%
Capital Growth 15,095 0.37%
Balanced 18,781 1.24%
Emerging Growth 300,633 14.87%
</TABLE>
NOTE B-SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments:Investment securities are valued at the closing
sales price on the exchange on which such securities are principally traded;
securities traded in the over-the-counter market and securities traded on a
national exchange for which no sales took place on the day of valuation are
valued at the mean of the bid and ask prices at the close of trading.
Quotations for foreign securities are in United States dollars and,
accordingly, unrealized gains and losses on these securities reflect all
foreign exchange fluctuations. Restricted securities are valued at fair value
as determined in good faith by the Board of Directors. Short-term debt
instruments with a remaining maturity of 60 days or less are valued at
amortized cost, which approximates market value.
Investment Security Transactions: Investment security transactions are
recorded as of the trade date, the date the order to buy or sell is executed.
Dividend income is recorded on the ex-dividend date. Interest income is
recorded on the accrual basis.
Deferred Organizational Costs: Costs incurred by the Company in connection
with the organization and initial public offering of the Growth and Income,
Capital Growth and Balanced Portfolios have been deferred and are being
amortized over a five year period using the straight line method from the
date the shares were first offered to the public. In the event that any of
the initial shares are redeemed, by any holder thereof, during the
amortization period, the proceeds will be reduced for any unamortized
organizational costs in the same proportion as the number of initial shares
being redeemed bears to the number of initial shares outstanding at the time
of redemption.
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
December 31, 1996
NOTE B-SIGNIFICANT ACCOUNTING POLICIES-(Continued)
Distributions to Shareholders:Distributions to shareholders from ordinary
income and net realized capital gains are declared and distributed at least
once annually. Distributions to shareholders are recorded on the ex-dividend
date.
The Company distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
dividends in excess of net investment income or accumulated net realized
gains.
Foreign Currency Transactions: Certain Portfolios may engage in portfolio
transactions that are denominated in foreign currency. All related
receivables and payables are marked to market daily based on the most recent
exchange rates listed at the close of the New York Stock Exchange.
The Portfolios do not isolate the portion of the operating results due to
changes in foreign exchange rates on investments from the fluctuations
arising from changes in the market value of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
Reported net realized foreign currency gains and losses arise from the
fluctuation of exchange rates between trade date and settlement date on
security transactions and from the difference between accrual date and
payment date on accrued investment income. Net unrealized foreign exchange
gains and losses are related to the fluctuation of exchange rates on the
payables and receivables for securities and accrued investment income at
December 31, 1996.
Federal Income Taxes: The Company intends to qualify as a regulated
investment company by complying with the requirements of the Internal Revenue
Code applicable to regulated investment companies, and by distributing all of
its ordinary income and net realized capital gains. Therefore, no Federal
tax provision is required.
Foreign taxes withheld represents amounts withheld by foreign tax
authorities, net of refunds recoverable.
NOTE C-INVESTMENTS
Net realized gains and losses on investment securities sold are determined by
using the first-in, first-out method. The aggregate cost of investments owned
for Federal income tax purposes is the same as for financial reporting
purposes.
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
December 31, 1996
NOTE C-INVESTMENTS-(Continued)
As of December 31, 1996, gross unrealized gains and losses were as follows:
Gross Gross Net
Unrealized Unrealized Unrealized
Gains Losses Gain (Loss)
------------ ------------ --------------
World Growth Stock Portfolio .. $ 22,355,952 $ 2,982,010 $ 19,373,942
Money Market Portfolio ........ 0 1,235 (1,235)
Gold Stock Portfolio .......... 1,110,918 901,850 209,068
Domestic Growth Stock Portfolio 14,201,542 5,135,929 9,065,613
Bond Portfolio ................ 119,195 75,263 43,932
Growth and Income Portfolio ... 4,503,791 320,522 4,183,269
Capital Growth Portfolio ...... 7,896,233 1,445,033 6,451,200
Balanced Portfolio ............ 1,167,304 241,259 926,045
Emerging Growth Portfolio ..... 4,758,122 1,095,634 3,662,488
As of December 31, 1996, the World Growth Stock Portfolio had an unrealized
foreign currency loss of $1,782, the Gold Stock Portfolio had an unrealized
foreign currency loss of $1,336, and the Capital Growth Portfolio had an
unrealized foreign currency loss of $47.
At December 31, 1996, the Money Market Portfolio had $1,087 of accumulated
realized capital losses, for Federal Income tax purposes, of which $697 expires
in 2002, and $390 expires in 2004. These losses are available to be used to
offset future realized capital gains.
In addition, during the period from November 1, 1996 through December 31,
1996, the World Growth Stock Portfolio incurred foreign currency losses of
$20,434, the Money Market Portfolio incurred capital losses of $21, the Gold
Stock Portfolio incurred capital losses of $126,246, and the Emerging Growth
Portfolio incurred capital losses of $172,802 that are treated for Federal
Income tax purposes as if they had occurred on January 1, 1997. Accordingly,
during 1996 these Portfolios made distributions, as required by Internal
Revenue Code Regulations, in excess of amounts recognized for financial
reporting purposes.
As of December 31, 1996, the Gold Stock Portfolio and World Growth Stock
Portfolio had investments in passive foreign investment companies during the
year which were marked to market for Federal tax purposes. A distribution of
$53,000 for the World Growth Stock Portfolio was declared based upon this
mark to market adjustment, resulting in distributions in excess of net
investment income for financial statement purposes.
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
December 31, 1996
NOTE C-INVESTMENTS-(Continued)
Purchases and sales of investment securities for the period ended December
31, 1996, other than short-term obligations, were as follows:
Proceeds
Cost of from
Investment Investment
Securities Securities
Purchased Sold
--------- ---------
World Growth Stock Portfolio .. $ 29,288,878 $ 21,469,302
Gold Stock Portfolio .......... 6,112,240 5,157,790
Domestic Growth Stock Portfolio 35,470,046 30,565,257
Bond Portfolio ................ 5,222,695 2,394,892
Growth and Income Portfolio ... 12,790,627 6,088,495
Capital Growth Portfolio ...... 110,712,710 82,415,599
Balanced Portfolio ............ 38,163,642 34,969,824
Emerging Growth Portfolio ..... 33,722,676 18,321,452
NOTE D--INVESTMENT ADVISORY FEES AND MANAGEMENT AGREEMENT
The Company has entered into an investment management agreement with Chubb
Investment Advisory Corporation, a wholly-owned subsidiary of Chubb Life. Under
the agreement, Chubb Investment Advisory Corporation provides investment
management and certain administrative services for the Company. Chubb Investment
Advisory Corporation has, in turn, retained Templeton Global Advisors, Inc. to
provide investment advisory services for the World Growth Stock Portfolio; Chubb
Asset Managers, Inc. to provide investment advisory services for the Money
Market, Bond, and Growth and Income Portfolios; Van Eck Associates Corporation
to provide investment advisory services for the Gold Stock Portfolio; Pioneering
Management Corporation to provide investment advisory services for the Domestic
Growth Stock Portfolio; Janus Capital Corporation to provide investment advisory
services for the Capital Growth Portfolio; Phoenix Investment Counsel to provide
investment advisory services for the Balanced Portfolio, and MFS Asset
Management Group to provide investment advisory services for the Emerging Growth
Portfolio. For its investment management and administrative services, Chubb
Investment Advisory Corporation is paid an annual fee through a daily charge
based on a percentage of the average daily net assets of each Portfolio as shown
below:
First Next Over
$200 $1.1 $1.3
Million Billion Billion
------- ------- -------
World Growth Stock Portfolio .75% .70% .65%
Money Market Portfolio .50% .45% .40%
Gold Stock Portfolio .75% .70% .65%
Domestic Growth Stock Portfolio .75% .70% .65%
Bond Portfolio .50% .45% .40%
Growth and Income Portfolio .75% .70% .65%
Capital Growth Portfolio 1.00% .95% .90%
Balanced Portfolio .75% .70% .65%
Emerging Growth Portfolio .80% .75% .70%
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
December 31, 1996
NOTE E--SHAREHOLDERS' TRANSACTIONS
Following is a summary of transactions with shareholders for each Portfolio.
<TABLE>
<CAPTION>
World Growth Stock Portfolio
-----------------------------------------------------------
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 480,289 $ 10,849,212 1,079,198 $ 21,534,683
Shares issued as reinvestment of
dividends .................... 173,957 3,708,652 149,363 2,838,549
Shares redeemed ................ (182,468) (4,152,060) (537,061) (11,078,344)
------- ----------- --------- -----------
Net increase ............... 471,778 $ 10,405,804 691,500 $ 13,294,888
======= =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio
-----------------------------------------------------------
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 1,371,889 $ 14,448,718 1,632,081 $ 17,200,276
Shares issued as reinvestment of
dividends .................... 39,106 401,686 25,311 259,435
Shares redeemed ................ (1,449,618) (15,264,109) (1,597,452) (16,828,777)
--------- ---------- --------- ----------
Net increase (decrease) .... (38,623) $ (413,705) 59,940 $ 630,934
========= ========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Gold Stock Portfolio
----------------------------------------------------------
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- -------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 119,333 $ 2,262,264 186,086 $ 2,934,007
Shares issued as reinvestment of
dividends .................... 2,259 37,521 3,131 50,893
Shares redeemed ................ (80,029) (1,512,797) (228,093) (3,810,616)
------- --------- ------- ---------
Net increase (decrease) .... 41,563 $ 786,988 (38,876) $ (825,716)
======= ========= ======= =========
</TABLE>
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
December 31, 1996
NOTE E--SHAREHOLDERS' TRANSACTIONS-(Continued)
<TABLE>
<CAPTION>
Domestic Growth Stock Portfolio
-----------------------------------------------------------
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 674,482 $ 12,867,171 772,787 $ 13,629,978
Shares issued as reinvestment of
dividends .................... 401,256 7,238,564 119,026 1,896,979
Shares redeemed ................ (372,862) (6,888,262) (150,022) (2,600,978)
-------- ---------- -------- ----------
Net increase ............... 702,876 $ 13,217,474 741,791 $ 12,925,979
======= ============ ======= ============
</TABLE>
<TABLE>
<CAPTION>
Bond Portfolio
-----------------------------------------------------------
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 526,422 $ 5,515,501 570,322 $ 6,012,459
Shares issued as reinvestment of
dividends .................... 60,897 644,900 48,644 472,011
Shares redeemed ................ (317,408) (3,345,433) (1,093,969) (11,291,493)
-------- ---------- ---------- -----------
Net increase (decrease) .... 269,911 $ 2,814,968 (475,003) $ (4,807,023)
======= ============ ======== ============
</TABLE>
<TABLE>
<CAPTION>
Growth and Income Portfolio
-----------------------------------------------------------
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 638,373 $ 9,952,481 513,526 $ 7,033,965
Shares issued as reinvestment of
dividends .................... 36,642 528,059 17,247 193,563
Shares redeemed ................ (183,357) (2,773,369) (119,878) (1,568,321)
-------- ---------- -------- ----------
Net increase ............... 491,658 $ 7,707,171 410,895 $ 5,659,207
======= =========== ======= ===========
</TABLE>
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
December 31, 1996
NOTE E--SHAREHOLDERS' TRANSACTIONS-(Continued)
<TABLE>
<CAPTION>
Capital Growth Portfolio
-----------------------------------------------------------
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 1,090,550 $ 21,217,632 1,012,623 $ 15,822,540
Shares issued as reinvestment of
dividends .................... 348,517 6,162,273 35,107 469,711
Shares redeemed ................ (205,098) (3,891,990) (238,732) (3,636,604)
-------- ---------- -------- ----------
Net increase ............... 1,233,969 $ 23,487,915 808,998 $ 12,655,647
========= ============ ======= ============
</TABLE>
<TABLE>
<CAPTION>
Balanced Portfolio
-----------------------------------------------------------
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 444,592 $ 5,423,155 423,487 $ 4,897,002
Shares issued as reinvestment of
dividends .................... 118,592 1,411,330 49,731 527,979
Shares redeemed ................ (270,460) (3,246,577) (643,500) (7,191,995)
-------- ---------- -------- ----------
Net increase (decrease) .... 292,724 $ 3,587,908 (170,282) $(1,767,014)
======= =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
Emerging Growth Portfolio
-----------------------------------------------------------
Year Ended For Period May 1, 1995
December 31, 1996 to December 31, 1995*
------------------------ ---------------------------
Shares Dollars Shares Dollars
--------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares issued .................. 1,255,676 $ 18,753,571 864,931 $ 10,018,440
Shares issued as reinvestment of
dividends .................... 2,359 33,482
Shares redeemed ................ (96,996) (1,455,534) (4,053) (51,777)
------- ---------- ------ -------
Net increase ............... 1,161,039 $ 17,331,519 860,878 $ 9,966,663
========= ============ ======= ============
</TABLE>
*Inception Date May 1, 1995
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
December 31, 1996
NOTE F-Restricted Securities
The Portfolios may not invest more than 5% of each portfolio's assets in
securities subject to legal or contractual restrictions on resale. At
December 31, 1996, the Gold Stock Portfolio owned the following restricted
securities (constituting 0.07% of Portfolio assets) which may not be publicly
sold without registration under the Securities Act of 1933 (the 1933 Act).
The Portfolio does not have the right to demand that such securities be
registered. The value of these securities is determined by valuations
supplied by a pricing service or, if not available, in good faith by or at
the direction of the Board of Directors.
<TABLE>
<CAPTION>
Restricted Date of Market
Security Acquisition Cost Value
- ----------- ----------- ---- -------
<S> <C> <C> <C>
Rift Resources, Ltd., Warrants July 19, 1996 $0 $ 0
Tombstone Exploration Co., Warrants October 3, 1996 0 5,995
Vista Gold Corp., Warrants November 12, 1996 0 0
</TABLE>
37
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the year:
<TABLE>
<CAPTION>
World Growth Stock Portfolio
--------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
December December December December December
31, 1996 31, 1995 31, 1994 31, 1993 31, 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 21.20 $ 19.00 $ 20.89 $ 16.73 $ 16.45
Income From Investment
Operations
Net investment income 0.49 0.45 0.25 0.24 0.35
Net gains and losses on
securities and foreign currency
(both realized and unrealized) 3.56 2.65 (0.89) 5.40 0.65
---- ---- ----- ---- ----
Total from investment
operations 4.05 3.10 (0.64) 5.64 1.00
Less Distributions to
Shareholders
Dividends from net
investment income (0.48) (0.43) (0.25) (0.24) (0.35)
Dividends in excess of net
investment income
Distributions from capital
gains (1.46) (0.47) (0.81) (1.24) (0.37)
Distributions in excess of
capital gains (0.19)
Returns of capital
----- ----- ----- ----- -----
Total distributions (1.94) (0.90) (1.25) (1.48) (0.72)
----- ----- ----- ----- -----
Net asset value, end of year $ 23.31 $ 21.20 $ 19.00 $ 20.89 $ 16.73
===== ===== ===== ===== =====
Total Return (A) 19.22% 16.35% (3.05%) 33.73% 6.10%
Ratios to Average Net Assets:
Expenses 0.88% 0.96% 1.00% 1.04% 1.17%
Net investment income 2.20% 2.31% 1.56% 1.64% 2.19%
Portfolio Turnover Rate 27.50% 18.09% 18.47% 34.90% 32.27%
Average Commission Rate Paid $ 0.0155
Net Assets, At End of Year $91,995,634 $73,692,357 $52,903,768 $42,031,141 $25,416,357
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges that apply to the separate
account or related insurance policies. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost.
38
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the year (A):
<TABLE>
<CAPTION>
Money Market Portfolio
-------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
December December December December December
31, 1996 31, 1995 31, 1994 31, 1993 31, 1992
-------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 10.27 $ 10.25 $ 10.26 $ 10.22 $ 10.22
Income From Investment
Operations
Net investment income 0.50 0.50 0.35 0.20 0.29
Net gains and losses
on securities (both
realized and unrealized) (0.02) 0.02 (0.01) 0.04
-------- -------- ------- --------- --------
Total from investment
operations 0.48 0.52 0.34 0.24 0.29
Less Distributions to
Shareholders
Dividends from net
investment income (0.50) (0.50) (0.35) (0.20) (0.29)
Dividends in excess of net
investment income
Distributions from capital
gains
Distributions in excess of
capital gains
Returns of capital
-------- -------- ------- --------- --------
Total distributions (0.50) (0.50) (0.35) (0.20) (0.29)
-------- -------- ------- --------- --------
Net asset value, end of year $ 10.25 $ 10.27 $ 10.25 $ 10.26 $ 10.22
======== ======== ======= ========= ========
Total Return (B) 4.65% 5.06% 3.28% 2.32% 2.83%
Ratios to Average Net Assets:
Expenses 0.62% 0.63% 0.65% 0.74% 0.85%
Net investment income 4.54% 4.89% 3.31% 2.32% 2.81%
Portfolio Turnover Rate (C) N/A N/A N/A N/A N/A
Average Commission Rate Paid (D) N/A
Net Assets, At End of Year $7,896,257 $8,312,676 $7,680,485 $5,061,181 $3,956,152
</TABLE>
(A) The per share amounts which are shown have been computed based on the
average number of shares outstanding during each year.
(B) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges that apply to the separate
account or related insurance policies. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost.
(C) There were no purchases and/or sales of securities other than short-term
obligations during the year. Therefore, the portfolio turnover rate has not
been calculated.
(D) During the period, the portfolio held less than 10% of the value of its
average net assets in equity securities. Therefore, the Average Commission
Rate Paid has not been calculated.
39
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the year:
<TABLE>
<CAPTION>
Gold Stock Portfolio
---------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
December December December December December
31, 1996 31, 1995 31, 1994 31, 1993 31, 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year ......................... $ 16.61 $ 16.25 $ 19.00 $ 11.57 $ 11.99
Income From Investment
Operations
Net investment income (loss) . (0.03) 0.05 0.03 0.02 0.03
Net gains and losses on
securities and foreign currency
(both realized and unrealized) 0.45 0.40 (2.65) 7.43 (0.42)
--------- ----------- ----------- ----------- -----------
Total from investment
operations ................... 0.42 0.45 (2.62) 7.45 (0.39)
Less Distributions to
Shareholders
Dividends from net
investment income ............ (0.05) (0.03) (0.02) (0.03)
Dividends in excess of net
investment income ............ (0.04)
Distributions from capital
gains ........................ (0.43)
Distributions in excess of
capital gains ................ (0.10)
Returns of capital
--------- ----------- ----------- ----------- -----------
Total distributions ........... (0.43) (0.09) (0.13) (0.02) (0.03)
--------- ----------- ----------- ----------- -----------
Net asset value, end of year .. $ 16.60 $ 16.61 $ 16.25 $ 19.00 $ 11.57
========= =========== =========== =========== ===========
Total Return (A) .............. 2.57% 2.76% (13.77)% 63.90% (3.29%)
Ratios to Average Net Assets:
Expenses ...................... 1.04% 1.01% 0.99% 1.01% 1.13%
Net investment income ......... (0.11% 0.24% 0.18% 0.14% 0.24%
Portfolio Turnover Rate ....... 64.78% 23.98% 11.12% 7.32% 7.78%
Average Commission Rate Paid .. $ 0.0151
Net Assets, At End of Year .... $7,554,427 $ 6,867,645 $ 7,351,625 $ 7,863,581 $ 4,338,297
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges that apply to the separate
account or related insurance policies. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost.
40
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the year:
<TABLE>
<CAPTION>
Domestic Growth Stock Portfolio
------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
December December December December December
31, 1996 31, 1995 31, 1994 31, 1993 31, 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year ....................... $ 17.87 $ 15.94 $ 16.14 $ 15.16 $ 12.96
Income From Investment
Operations
Net investment income ..... 0.06 0.15 0.09 0.12 0.14
Net gains and losses
on securities (both
realized and unrealized) . 2.85 4.48 1.12 2.29 3.27
------ ------ ------ ------ ------
Total from investment
operations ................. 2.91 4.63 1.21 2.41 3.41
Less Distributions to Shareholders
Dividends from net
investment income .......... (0.06) (0.15) (0.09) (0.12) (0.14)
Dividends in excess of net
investment income
Distributions from capital
gains ...................... (2.53) (2.55) (1.32) (1.31) (1.07)
Distributions in excess of
capital gains
Returns of capital
------ ------ ------ ------ ------
Total distributions ......... (2.59) (2.70) (1.41) (1.43) (1.21)
------ ------ ------ ------ ------
Net asset value, end of year $ 18.19 $ 17.87 $ 15.94 $ 16.14 $ 15.16
====== ====== ====== ====== ======
Total Return (A) ............ 16.46% 29.72% 7.66% 15.89% 26.50%
Ratios to Average Net Assets:
Expenses .................... 0.85% 0.87% 0.89% 0.97% 1.07%
Net investment income ....... 0.31% 0.95% 0.63% 0.76% 1.07%
Portfolio Turnover Rate ..... 49.75% 64.17% 46.65% 49.47% 41.36%
Average Commission Rate Paid $ 0.0555
Net Assets, At End of Year .. $62,166,366 $48,517,886 $31,458,666 $25,072,289 $19,985,838
</TABLE>
(A)Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges that apply to the separate
account or related insurance policies. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost.
41
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the year:
<TABLE>
<CAPTION>
Bond Portfolio
------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
December December December December December
31, 1996 31, 1995 31, 1994 31, 1993 31, 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year .......................... $ 10.59 $ 9.70 $ 10.28 $ 10.21 $ 10.61
Income From Investment
Operations
Net investment income ......... 0.56 0.74 0.35 0.74 0.66
Net gains and losses
on securities (both
realized and unrealized) ..... (0.29) 0.89 (0.58) 0.13 0.13
----------- ---------- ----------- ---------- ---------
Total from investment
operations .................... 0.27 1.63 (0.23) 0.87 0.79
Less Distributions to
Shareholders
Dividends from net
investment income ............. (0.56) (0.74) (0.35) (0.74) (0.66)
Dividends in excess of net
investment income
Distributions from capital
gains ......................... (0.03) (0.06) (0.53)
Distributions in excess of
capital gains
Returns of capital
----------- ---------- ----------- ---------- ---------
Total distributions ............ (0.59) (0.74) (0.35) (0.80) (1.19)
----------- ---------- ----------- ---------- ---------
Net asset value, end of year ... $ 10.27 $ 10.59 $ 9.70 $ 10.28 $ 10.21
=========== ========== =========== ========== =========
Total Return (A) ............... 2.47% 16.76% (2.28%) 8.68% 7.46%
Ratios to Average Net Assets:
Expenses ....................... 0.60% 0.63% 0.68% 0.74% 0.88%
Net investment income .......... 5.93% 6.43% 6.07% 7.59% 6.83%
Portfolio Turnover Rate ........ 23.25% 127.74% 140.30% 112.66% 81.23%
Average Commission Rate Paid (B) N/A
Net Assets, At End of Year ..... $11,717,693 $9,230,090 $13,066,445 $5,461,879 $4,042,506
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges. Investment returns and
principal values will fluctuate and shares, when redeemed, may be worth more
or less than the original cost.
(B) During the period, the portfolio held less than 10% of the value of its
average net assets in equity securities. Therefore, the Average Commission
Rate Paid has not been calculated.
42
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
Growth and Income Portfolio
------------------------------------------------------------------------
Period From
Year Year Year Year May 1,
Ended Ended Ended Ended 1992 to
December December December December December
31, 1996 31, 1995 31,1994 31, 1993 31, 1992 (A)
-------- -------- ------- -------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ...................... $ 14.41 $ 11.22 $ 12.35 $ 11.10 $ 10.27
Income From Investment
Operations
Net investment income ...... 0.18 0.15 0.13 0.12 0.02
Net gains and losses
on securities (both
realized and unrealized) .. 3.12 3.62 (0.65) 1.53 0.83
----------- ----------- ----------- ---------- ----------
Total from investment
operations .................. 3.30 3.77 (0.52) 1.65 0.85
Less Distributions to
Shareholders
Dividends from net
investment income ........... (0.18) (0.15) (0.13) (0.12) (0.02)
Dividends in excess of net
investment income
Distributions from capital
gains ....................... (0.62) (0.29) (0.48) (0.28)
Distributions in excess of
capital gains ............... (0.14)
Returns of capital
----------- ----------- ----------- ---------- ----------
Total distributions .......... (0.80) (0.58) (0.61) (0.40) (0.02)
----------- ----------- ----------- ---------- ----------
Net asset value, end of period $ 16.91 $ 14.41 $ 11.22 $ 12.35 $ 11.10
=========== =========== =========== ========== ==========
Total Return (B) ............. 22.88% 33.58% (4.24%) 14.94% 12.48%(C)
Ratios to Average Net Assets:
Expenses ..................... 0.88% 0.92% 1.10% 1.35% 2.09%(C)
Net investment income ........ 1.39% 1.50% 1.52% 1.38% 0.36%(C)
Portfolio Turnover Rate ...... 35.69% 32.30% 38.17% 77.68% 54.11%
Average Commission Rate Paid . $ 0.0700
Net Assets, At End of Period . $23,711,696 $13,126,023 $5,610,472 $2,831,442 $1,489,179
</TABLE>
(A) Per share data calculated from the initial offering date, May 1, 1992, for
sale to Chubb Separate Account A.
(B) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges. Investment returns and
principal values will fluctuate and shares, when redeemed, may be worth more
or less than the original cost. Total return figures for periods less than
one year have not been annualized.
(C) Per share data and ratios calculated on an annualized basis.
43
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
Capital Growth Portfolio
------------------------------------------------------------------------------
Period From
Year Year Year Year May 1,
Ended Ended Ended Ended 1992 to
December December December December December
31, 1996 31, 1995 31,1994 31, 1993 31, 1992(A)
-------- -------- ------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ........................... $ 17.38 $ 13.38 $ 14.26 $ 12.42 $ 9.95
Income From Investment
Operations
Net investment income (loss) ..... 0.05 0.03 0.03 (0.01)
Net gains and losses on securities
and foreign currency (both
realized and unrealized) ......... 3.24 5.56 (0.49) 3.03 2.69
----------- ----------- ----------- ----------- -----------
Total from investment
operations ...................... 3.29 5.59 (0.46) 3.03 2.68
Less Distributions to
Shareholders
Dividends from net
investment income ............... (0.05) (0.03) (0.03)
Dividends in excess of net
investment income
Distributions from capital gains . (3.36) (1.56) (0.33) (1.19) (0.21)
Distributions in excess of
capital gains ................... (0.06)
Returns of capital
----------- ----------- ----------- ----------- -----------
Total distributions .............. (3.41) (1.59) (0.42) (1.19) (0.21)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ..... $ 17.26 $ 17.38 $ 13.38 $ 14.26 $ 12.42
=========== =========== =========== =========== ===========
Total Return (B) ................... 19.25% 41.74% (3.26%) 24.73% 40.40%(C)
Ratios to Average Net Assets:
Expenses ......................... 1.13% 1.15% 1.22% 1.33% 1.96%(C)
Net investment income ............ 0.30% 0.21% 0.25% (0.11%) (0.37%)(C)
Portfolio Turnover Rate ............ 147.82% 170.32% 202.04% 162.79% 104.76%
Average Commission Rate Paid ....... $ 0.0502
Net Assets, At End of Period ....... $70,832,162 $49,853,029 $27,564,086 $15,373,489 $5,343,734
</TABLE>
(A) Per share data calculated from the initial offering date, May 1, 1992, for
sale to Chubb Separate Account A.
(B) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges. Investment returns and
principal values will fluctuate and shares, when redeemed, may be worth more
or less than the original cost. Total return figures for periods less than
one year have not been annualized.
(c) Per share data and ratios calculated on an annualized basis.
44
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
Balanced Portfolio
-------------------------------------------------------------------------
Period From
Year Year Year Year May 1,
Ended Ended Ended Ended 1992 to
December December December December December
31, 1996 31, 1995 31,1994 31, 1993 31, 1992(A)
-------- -------- ------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ..................... $ 11.91 $ 10.62 $ 11.22 $ 10.77 $ 10.10
Income From Investment
Operations
Net investment income ...... 0.26 0.37 0.32 0.25 0.16
Net gains and losses
on securities (both
realized and unrealized) .. 0.99 1.99 (0.47) 0.74 0.67
---------- ------- ------ ------ -------
Total from investment
operations ................ 1.25 2.36 (0.15) 0.99 0.83
Less Distributions to
Shareholders
Dividends from net
investment income ......... (0.26) (0.37) (0.32) (0.25) (0.16)
Dividends in excess of net
investment income
Distributions from capital
gains ..................... (0.83) (0.70) (0.13) (0.25)
Distributions in excess of
capital gains ............. (0.04)
Returns of capital
---------- ------- ------ ------ -------
Total distributions ........ (1.09) (1.07) (0.45) (0.54) (0.16)
---------- ------- ------ ------ -------
Net asset value, end of period 12.07 11.91 10.62 11.22 $ 10.77
========== ======= ====== ====== =======
Total Return (B) ............. 10.56% 22.35% (1.33%) 9.27% 12.33%(C)
Ratios to Average Net Assets:
Expenses ................... 0.97% 0.99% 1.01% 1.07% 1.43%(C)
Net investment income ...... 2.20% 3.20% 3.34% 2.79% 2.80%(C)
Portfolio Turnover Rate ...... 222.35% 164.70% 103.68% 65.49% 77.33%
Average Commission Rate Paid . $ 0.0601
Net Assets, At End of Period . $18,256,430 $14,532,268 $14,764,853 $11,703,898 $6,944,437
</TABLE>
(A) Per share data calculated from the initial offering date, May 1, 1992, for
sale to Chubb Separate Account A.
(B) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges that apply to the separate
account or related insurance policies. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost. Total return figures for periods less than one year
have not been annualized.
(C) Per share data and ratios calculated on an annualized basis.
45
<PAGE>
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
Emerging Growth Portfolio
----------------------------
Period From
Year May 1,
Ended 1995 through
December December
31, 1996 31, 1995(A)
-------- -----------
<S> <C> <C>
Net asset value, beginning of
period ....................... $ 13.29 $ 10.00
Income From Investment
Operations
Net investment income (loss) . (0.05) (0.04)
Net gain on securities
(both realized
and unrealized) .............. 2.48 3.33
----------- -----------
Total from investment
operations .................. 2.43 3.29
Less Distributions to
Shareholders
Dividends from net
investment income
Dividends in excess of net
investment income
Distributions from capital
gains ....................... (0.49)
Distributions in excess of
capital gains
Returns of capital
----------- -----------
Total distributions .......... (0.49) 0.00
----------- -----------
Net asset value, end of period . $ 15.23 $ 13.29
=========== ===========
Total Return (B) ............... 18.30% 32.91%(C)
Ratios to Average Net Assets:
Expenses ..................... 1.16% 1.63%(C)
Net investment income ........ (0.48%) (0.84%)(C)
Portfolio Turnover Rate ........ 94.58% 30.31%
Average Commission Rate Paid ... $ 0.0390
Net Assets, At End of Period ... $30,794,030 $11,439,524
</TABLE>
(A) Per share data calculated from the initial offering date, May 1, 1995, for
sale to Chubb Separate Account A.
(B) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of account fees and charges that apply to the separate
account or related insurance policies. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost. Total return figures for periods less than one year
have not been annualized.
(C) Per share data and ratios calculated on an annualized basis.
46
<PAGE>
Report of Independent Auditors
To the Board of Directors and Shareholders
Chubb America Fund, Inc.
We have audited the accompanying statement of assets and liabilities of Chubb
America Fund, Inc. (the "Fund", comprising, respectively, the World Growth
Stock Portfolio, Money Market Portfolio, Gold Stock Portfolio, Domestic
Growth Stock Portfolio, Bond Portfolio, Growth and Income Portfolio, Capital
Growth Portfolio, Balanced Portfolio and Emerging Growth Portfolio),
including the related schedules of portfolio investments, as of December 31,
1996, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods indicated on
pages 38, 39, 40, 41, 42, 43, 44, 45 and 46 of these financial statements for
all Portfolios, except Emerging Growth, for which the statement of changes in
net assets and the financial highlights are for the year ended December 31,
1996 and for the period from May 1, 1995 (commencement of operations) to
December 31, 1995. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights 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 and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1996 by correspondence with the custodian
and brokers, or other appropriate auditing procedures where replies from
brokers were not received. 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 and financial highlights referred to
above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting Chubb America Fund, Inc. at
December 31, 1996, the results of their operations, the changes in their net
assets and the financial highlights for each of the periods indicated above,
in conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 14, 1997
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[BACK COVER]
Distributor
Chubb Securities Corporation
One Granite Place
Concord, New Hampshire 03301
This material has been prepared for policyowners of Ensemble II variable
universal life insurance. If used for prospecting purposes, it must be preceded
or accompanied by a current prospectus and personalized illustrations. Always
read these materials carefully before investing or sending money.
Chubb Life Insurance Company of America
Corporate Offices, One Granite Place, Concord, NH 03301
Chubb Group of Insurance Companies
Form 3-5915 Ed. 2/97
