Annual Report 2001 - Chubb Group of Insurance Companies

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management's discussion and analysis of Ñnancial condition
and results of operations addresses the Ñnancial
condition of The Chubb Corporation (the Corporation)
and its subsidiaries as of December 31, 2001
compared with December 31, 2000 and the Corporation's
results of operations for each of the three years in
the period ended December 31, 2001. This discussion
should be read in conjunction with the consolidated
Ñnancial statements and related notes on pages 48
through 71 and other supplementary Ñnancial informa-
tion on pages 21, 22 and 44 through 47.
Cautionary Statement Regarding
Forward-Looking Information
Certain of the statements contained in this Annual
Report or in Part I of the Corporation's Form 10-K
(other than statements of historical fact) may be
considered to be ""forward looking statements'' as that
term is deÑned in the Private Securities Litigation
Reform Act of 1995. Words or phrases such as ""will
result'', ""is expected to'', ""will continue'', ""is anticipated'',
or similar expressions are intended to identify
forward looking statements, although not all forward
looking statements contain those identifying words.
Such forward looking statements are subject to certain
risks, uncertainties and assumptions about our business.
The factors that could cause actual results to diÅer
materially from those suggested by any such statements
include but are not limited to those discussed or
identiÑed from time to time in the Corporation's public
Ñlings with the Securities and Exchange Commission
and speciÑcally to risks or uncertainties associated with
any one or more of the following:
‚ premium price increases and proÑtability or growth
estimates overall or by lines of business, and related
expectations with respect to the timing and terms of
any required regulatory approvals;
‚ our expectations with respect to cash Öow projections
and investment income and with respect to other
income;
‚ the adequacy of loss reserves including:
Ó our expectations relating to insurance losses from
the September 11 attack and related reinsurance
recoverables;
Ó any impact from the bankruptcy protection sought
by various asbestos producers and other related
businesses;
Ó any changes in judicial or legislative decisions
relating to coverage and liability for asbestos and
toxic waste claims;
‚ Enron-related eÅects, including:
Ó the eÅects on the energy markets and the companies
that participate in them;
Ó the eÅects on the capital markets and the markets
for directors and oÇcers and errors and omissions
insurance;
Ó claims and litigation arising out of accounting
disclosures by other companies;
Ó any legislative or regulatory proposals or changes;
‚ general economic conditions including:
Ó changes in interest rates and the performance of
the Ñnancial markets;
Ó changes in domestic and foreign laws, regulations
and taxes;
Ó changes in competition and pricing environments;
Ó regional or general changes in asset valuations;
Ó the occurrence of signiÑcant weather-related or
other natural or human-made disasters;
‚ the availability of primary and reinsurance coverage,
including the implications relating to the absence of
terrorism legislation;
Ó the inability to reinsure certain risks economically;
‚ global political conditions and the occurrence of any Ó changes in the litigation environment;
terrorist attacks, including any nuclear, biological or Ó general market conditions.
chemical events;
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