Annual Report 2005 - Chubb Group of Insurance Companies

We are now in a capital
position that is sufficiently
strong so as to afford
your Board of Directors
the confidence to
return excess capital
to shareholders. On
December 8, 2005,
the Board authorized
the repurchase of up to
14 million shares. We
expect to repurchase all
of these shares by the
end of 2006.
Apart from record earnings, there were several noteworthy
achievements during 2005:
• We successfully resolved the last of the many overhang issues that
clouded our outlook three years ago by further reducing — from
$9 billion to $1 billion — our notional exposure from the credit
derivatives business that we exited in 2003.
• We are now in a capital position that is sufficiently strong so as to
afford your Board of Directors the confidence to return excess
capital to shareholders. On December 8, 2005, the Board
authorized the repurchase of up to 14 million shares. We expect to
repurchase all of these shares by the end of 2006.
• We established a new Legal Compliance & Ethics Committee with
senior representatives from each of the company’s business areas, to
provide high-level oversight of Chubb’s compliance functions and
underscore our commitment to maintain the highest ethical
Property & Casualty Investment Income
After tax
($ in millions)
00.000000 $1,056
42.857143
85.714286
28.571429
71.428571
14.285714
$749 $761
$843
$949
standards at the company. The Committee, which reports regularly
to the Audit Committee of Chubb’s Board of Directors, has set in
motion more than 50 separate initiatives to support and enhance
Chubb’s compliance and ethics performance in the years to come.
The Legal Compliance & Ethics Committee is headed by Vice
Chairman John Degnan, who was appointed to the additional
57.142857
0.000000
2001 2002 2003 2004 2005
position of Chief Ethics Officer.
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