Chubb Books $195.5 Million in Asbestos Liabilities -------------------------------------------------- Published October 03, 2002 The Chubb Corporation sums up its asbestos liability for unpaid claims and claim adjustment expenses, net of reinsurance recoverable, to $195.5 million, as of December 31, 2001 as compared to $230.0 million and $205.6 million during 2000 and 1999, respectively. The company records around 1,000 asbestos claims outstanding at December 31, 2001, lower than last year's 1,100 and 1999's 1,600. Asbestos remains the most significant and difficult mass tort for the insurance industry in terms of claims volume and dollar exposure as companies file for bankruptcy as a result of the influx of asbestos- related liabilities. A growing number of asbestos claims are being presented as non-products claims, such as those by installers of asbestos products and by property owners who allegedly had asbestos on their property. These exposures typically have no aggregate limits so it creates potentially greater exposure. In an effort to seek additional insurance coverage, some insured are presenting new asbestos claims as non-products premises or operations claims, or attempting to reclassify old products claims. The focus of asbestos litigation beyond asbestos manufacturers and distributors to installers and premises owners has created conflicts among insureds, primary insurers and excess insurers, primarily involving questions on allocation of indemnity and expense costs and exhaustion of policy limits, generating costly coverage litigation with the potentially inconsistent results. COMPANY SNAPSHOT The Chubb Corporation (NYSE: CB) 15 Mountain View Rd. Warren, NJ 07061-1615 Phone: 908-903-2000 Fax: 908-903-3402 Website: http://www.chubb.com No. of Employees : 12,600 Revenue : $ 7,754,000,000 Net Income : $ 111,500,000 Assets : $ 29,449,000,000 Liabilities : $ 22,923,700,000 No of Asbestos Claims : 1,000 (For the year ended December 31, 2001) Description: The Chubb Corporation is best known for comprehensive homeowners insurance for the demographic that owns yachts (the company insures those, too). It also offers property/casualty insurance to companies. Products include niche coverage and specialty lines most notably its lucrative executive protection business). The company also develops properties in Florida and New Jersey through its Real Estate Group. Chubb was hit hard by the attacks on the World Trade Center and the fall of Enron, estimating to pay out almost $900 million in claims. ------------------------------------------------------------------- LitigationDataSource.com