Chubb Agrees to Sell Personal Lines Insurance Brokerage to Hub International

Chubb Agrees to Sell Personal Lines Insurance Brokerage to Hub International 


WARREN, N.J., Aug. 1   /PRNewswire-FirstCall/ -- The Chubb Corporation (NYSE:CB) announced today that it has entered into an agreement to sell Personal Lines Insurance Brokerage, Inc. (PLI) to Hub International Limited (NYSE:HBG). The transaction is expected to close within 60 days, subject to customary closing conditions. Terms of the transaction were not announced.

The sale of PLI will have no material impact on Chubb's financial results. PLI's 2004 revenue (unaudited) was approximately $27 million.  PLI, one of the nation's leading personal lines insurance brokers, focuses on high net worth clients. It is licensed to do business in the 50 states.

The member insurers of the Chubb Group of Insurance Companies provide property and casualty insurance for personal and commercial customers worldwide through approximately 8,000 independent agents and brokers.

  For further information contact:  Investors:  Glenn A. Montgomery
                                                908-903-2365
                                    Media:      Mark E. Greenberg
                                                908-903-2682

  FORWARD-LOOKING INFORMATION


Certain statements in this release, and certain oral statements made by management from time to time, are "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements are made pursuant to the safe harbor provisions of the PSLRA and include estimates and assumptions related to economic, competitive, regulatory, judicial, legislative and other developments.  These include statements relating to trends in, or representing management's beliefs about, our future strategies, operations and financial results, as well as other statements that include words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "should," "will," or other similar expressions.  Forward-looking statements are made based upon management's current expectations and beliefs concerning trends and future developments and their potential effects on us.  These statements are not guarantees of future performance.  Actual results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, which include, among others, those discussed or identified from time to time in our public filings with the Securities and Exchange Commission and those associated with:

  * the availability of primary and reinsurance coverage, including the
    implications relating to terrorism legislation and regulation;

  * global political conditions and the occurrence of terrorist attacks,
    including any nuclear, biological, chemical or radiological events;

  * the effects of the outbreak or escalation of war or hostilities;

  * premium pricing and profitability or growth estimates overall or by
    lines of business or geographic area, and related expectations with
    respect to the timing and terms of any required regulatory approvals;

  * adverse changes in loss cost trends;

  * our ability to retain existing business;

  * our expectations with respect to cash flow projections and investment
    income and with respect to other income;

  * the adequacy of loss reserves, including:

    -- our expectations relating to reinsurance recoverables;
    -- the effects of proposed asbestos liability legislation, including the
       impact of claims patterns arising from the possibility of legislation
       and those that may arise if legislation is not passed;
    -- our estimates relating to ultimate asbestos liabilities;
    -- the impact from the bankruptcy protection sought by various asbestos
       producers and other related businesses;
    -- the willingness of parties, including us, to settle disputes;
    -- developments in judicial decisions or regulatory or legislative
       actions relating to coverage and liability for asbestos, toxic waste
       and mold claims;
    -- development of new theories of liability;

  * the impact of economic factors on companies on whose behalf we have
    issued surety bonds, and in particular, on those companies that have
    filed for bankruptcy or otherwise experienced deterioration in
    creditworthiness;

  * the effects of disclosures by, and investigations of, public companies
    relating to possible accounting irregularities, practices in the
    financial services industry and other corporate governance issues,
    including:

    -- the effects on the capital markets and the markets for directors and
       officers and errors and omissions insurance;
    -- claims and litigation arising out of actual or alleged accounting or
       other corporate malfeasance by other companies;
    -- claims and litigation arising out of practices in the financial
       services industry.
    -- legislative or regulatory proposals or changes, including the changes
       in law and regulation implemented under the Sarbanes-Oxley Act of
       2002;

  * the effects of investigations into market practices in the U.S. property
    and casualty insurance industry and any legal or regulatory proceedings
    arising therefrom;

  * the occurrence of significant weather-related or other natural or human-
    made disasters, particularly in locations where we have concentrations
    of risk;

  * any downgrade in our claims-paying, financial strength or other credit
    ratings;

  * the ability of our subsidiaries to pay us dividends;

  * general economic conditions including:

    -- changes in interest rates, market credit spreads and the performance
       of the financial markets, generally and as they relate to credit
       risks assumed by our Chubb Financial Solutions unit in particular;
    -- the effects of inflation;
    -- changes in domestic and foreign laws, regulations and taxes;
    -- changes in competition and pricing environments;
    -- regional or general changes in asset valuations;
    -- the inability to reinsure certain risks economically;
    -- changes in the litigation environment;
    -- general market conditions; and

  * our ability to implement management's strategic plans and initiatives.



Chubb assumes no obligation to update any forward-looking information set forth in this document, which speak as of the date hereof. 

DATASOURCE: Chubb Corporation



CONTACT:  Investors, Glenn A. Montgomery, [phone], or Media,

Mark E. Greenberg, [phone], both of Chubb Corporation



Web site:  http://www.chubb.com/ 

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