Slide 1: The Chubb Corporation 2015 Update on Asbestos Reserves
The Chubb Corporation 2015 Update on Asbestos Reserves Exhibit 99.4
Slide 2: Forward-Looking Statements
Forward-Looking Statements The following materials contain “forward-looking statements,” including those relating to loss reserves and claim estimates, that are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or suggested by such
Slide 3: Contents
Contents Purpose of Updated Review Evaluation Methodology Exposure Analysis Asbestos Payments and Reserves Three Year Reserve Comparison Conclusions
Slide 4: Purpose of Review
Purpose of Review Reassess Chubb’s ultimate liability regarding asbestos exposures using an internal analysis, reviewed by our independent outside consulting actuaries Determine appropriate reserve levels Ensure aggressive case management of asbestos claims manage our exposure identify trends or iss
Slide 5: Evaluation Methodology
Evaluation Methodology Chubb segmented its defendant policyholders into two groups Traditional defendant policyholders (Tiers 1 & 2) Those engaged in asbestos mining, manufacturing and building products industries Peripheral defendant policyholders (Tiers 3 & 4) Those who manufactured, distributed,
Slide 6: Exposure Analysis
Exposure Analysis Within these policyholder categories: All Tier 1 & 2 accounts and Tier 3 & 4 accounts with Chubb incurred losses of at least $3M or judged to have high potential exposure were evaluated individually. Claimant information and available coverage were reviewed for each defendant polic
Slide 7: Asbestos Payments & Reserves by Category
Asbestos Payments & Reserves by Category #$ Traditional Defendants Tier 1 1 – 33 Traditional Defendants Tier 261039 Peripheral Defendants Tiers 3 & 4311 26 292 All Other 620 Reserves for future claims from unknown policyholders Unknown– 94 _____ ____ ____ Total318 42 478 PolicyholdersTotal NetNet A
Slide 8: Asbestos Payments & Reserves by Category
Asbestos Payments & Reserves by Category Total net asbestos reserves at 12/31/15: $478M Case reserves of $168M Established by Claim Department on known claims IBNR reserves of $310M Includes provision for: potential reserve development on known defendant policyholders (development) future claims fro
Slide 9: Asbestos Net Loss Reserve Comparison
Asbestos Net Loss Reserve Comparison ($ in Millions) 2014 2015 Beginning Reserves $566 Incurred Losses & LAE 25 51 Calendar Year Payments for Losses (72) (52) (19) (22) Ending Reserves $500 $566 IBNR portion of Ending Reserves $310 $321 $589 Calendar Year Payments for LAE 2013 $500 20 (22) (20) $478
Slide 10: Conclusions
Conclusions Chubb’s asbestos net reserves of $478M at 12/31/15 are based on our 2015 analysis of our ultimate asbestos liabilities This reserve represents Chubb’s best estimate of our ultimate asbestos liability at 12/31/15 This reserve amount is at full (undiscounted) value, and no consideration ha