A.M. Best Assigns Rating to Chubb Corporation's New Commercial Paper Program

Business Wire, July 18, 2005

OLDWICK, N.J. -- A.M. Best has assigned a commercial paper rating of AMB-1 to The Chubb Corporation's (Chubb) (NYSE:CB) (Warren, NJ) new 4(2) commercial paper program, effective July 15, 2005 and has withdrawn the commercial paper rating of AMB-1 previously assigned to the 3(a)3 program of its subsidiary, Chubb Capital Corporation (Chubb Capital). Chubb's new commercial paper program is for $500 million and replaces the two former $250 million programs of Chubb Capital Corporation. The rating has a stable outlook.

The 4(2) and 3(a)3 designations refer to the exemptions from Securities and Exchange Commission registration under security regulations. Chubb's new 4(2) program is less restrictive than its former 3(a)3 program, having greater flexibility in how funds raised can be used. It also can have a longer maturity of 397 days versus 270 days under the former program.

Chubb's current liquidity is significant with approximately $1.4 billion of liquid funds held at March 31, 2005, and the company recently entered into a $500 million credit facility that matures in June 2010. Given this liquidity and the strong current earnings of its insurance subsidiaries, it is not anticipated that the company will be utilizing its new commercial paper program in the near term. Chubb's debt-to-total capital at March 31, 2005 was moderate at 21.3%.

The remaining debt and financial strength ratings of Chubb and its subsidiaries are unchanged.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.> A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.