Filing at a Glance
Companies: Chubb Indemnity Insurance CompanyChubb National Insurance CompanyGreat Northern Insurance CompanyPacific Indemnity CompanyVigilant Insurance CompanyFederal Insurance Company
Product Name: Masterpiece
State: Pennsylvania
TOI: 04.0 Homeowners
Sub-TOI: 04.0000 Homeowners Sub-TOI Combinations
Filing Type: Rate/Rule
Date Submitted: 12/01/2016
SERFF Tr Num: ACEH-130764825
SERFF Status: Assigned
State Tr Num:
State Status: Received Review in Progress
Co Tr Num: 16-11049-RR
Effective DateRequested (New):
04/11/2017
Effective DateRequested (Renewal):
05/26/2017
Author(s): Kathleen Casey, Cindy Langston, Doreen Freiman, Brenda Balboni, Deborah Carman, AronSamkoff
Reviewer(s): Bojan Zorkic (primary), Michael McKenney
Disposition Date:
Disposition Status:
Effective Date (New):
Effective Date (Renewal):
State Filing Description:
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
General Information
Company and Contact
Project Name: HO Mid Phase Status of Filing in Domicile:
Project Number: 16 11049 Domicile Status Comments:
Reference Organization: Reference Number:
Reference Title: Advisory Org. Circular:
Filing Status Changed: 12/01/2016
State Status Changed: 12/02/2016 Deemer Date:
Created By: Cindy Langston Submitted By: Cindy Langston
Corresponding Filing Tracking Number: ACEH-130764824
Filing Description:
We are filing for your review and approval, revisions to the MASTERPIECE program in Pennsylvania.
Please refer to the attached actuarial filing memorandum and the Description of Change document under SupportingDocumentation for the details regarding the changes submitted under this filing. Also attached is the final print and the markedcopy of the manual pages reflecting the changes.
Our proposed effective date is April 11, 2017 for newlines and May 26, 2017 for renewals. Please contact me should you haveany questions or require additional information. Your approval will be greatly appreciated.
Filing Contact InformationCindy Langston, State Filing Analyst III [email protected]
202 Hall's Mill Road
P.O. Box 1600
Whitehouse Station , NJ 08889
908-572-2873 [Phone]
908-572-4034 [FAX]
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Filing Company InformationChubb National InsuranceCompany
One American Square
202 N. Illinois St.
Suite 2600
Indianapolis, IN 46282
(908) 572-2000 ext. [Phone]
CoCode: 10052
Group Code: 626
Group Name: Chubb
FEIN Number: 22-3253301
State of Domicile: Indiana
Company Type: Stock
State ID Number:
Great Northern InsuranceCompany
One American Square
202 N. Illinois St.
Suite 2600
Indianapolis, IN 46282
(908) 572-2000 ext. [Phone]
CoCode: 20303
Group Code: 626
Group Name: Chubb
FEIN Number: 41-0729473
State of Domicile: Indiana
Company Type: Stock
State ID Number:
Federal Insurance Company
One American Square
202 N. Illinois St.
Suite 2600
Indianapolis, IN 46282
(908) 572-2000 ext. [Phone]
CoCode: 20281
Group Code: 626
Group Name: Chubb
FEIN Number: 13-1963496
State of Domicile: Indiana
Company Type: Stock
State ID Number:
Chubb Indemnity InsuranceCompany
55 Water Street
New York, NY 10041-2899
(908) 572-2000 ext. [Phone]
CoCode: 12777
Group Code: 626
Group Name: Chubb
FEIN Number: 22-3291862
State of Domicile: New York
Company Type: Stock
State ID Number:
Vigilant Insurance Company
55 Water Street
New York, NY 10041-2899
(908) 572-2000 ext. [Phone]
CoCode: 20397
Group Code: 626
Group Name: Chubb
FEIN Number: 13-1963495
State of Domicile: New York
Company Type: Stock
State ID Number:
Pacific Indemnity Company
Two Plaza East
Suite 1450
330 East Kilbourn Avenue
Milwaukee, WI 53202-3146
(908) 572-2000 ext. [Phone]
CoCode: 20346
Group Code: 626
Group Name: Chubb
FEIN Number: 95-1078160
State of Domicile: Wisconsin
Company Type: Stock
State ID Number:
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Filing Fees
State Specific
Fee Required? Yes
Fee Amount: $105.00
Retaliatory? Yes
Fee Explanation: Federal Ins. Co., Great Northern Ins. Co., and Chubb National Ins. Co. are domiciled inIndiana. Indiana charges $35.00 per rate or rule filing per company.
3 companies x $35 = $105.00
There are no filing fees for Chubb Indemnity Ins. Co. (NY), Pacific Indemnity Co. (WI), VigilantIns. Co. (NY).
Per Company: Yes
Company Amount Date Processed Transaction #Great Northern Insurance Company $35.00 12/01/2016 117273681Chubb National Insurance Company $35.00 12/01/2016 117273682Federal Insurance Company $35.00 12/01/2016 117273683
*Filing Fee Amount: 105.00*Date Filing Fee Mailed: EFT*Filing Fee Check Number: EFT*Filing Fee Check Date: EFT*NAIC Number: 10052~20303~20281
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Correspondence Summary Filing NotesSubject Note Type Created By Created On Date SubmittedReply to 12/05/16 Note to Filer Note To Reviewer Cindy Langston 12/06/2016 12/06/2016Proprietary and Confidential labeling Note To Filer Bojan Zorkic 12/05/2016 12/05/2016
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Note To Reviewer
Created By:
Cindy Langston on 12/06/2016 09:33 AM
Last Edited By:
Cindy Langston
Submitted On:
12/06/2016 09:33 AM
Subject:
Reply to 12/05/16 Note to Filer
Comments:
In response to your 12/05/16 note to filer, please disregard the Proprietary and Confidential labeling on exhibit 10.1.
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Note To Filer
Created By:
Bojan Zorkic on 12/05/2016 08:40 AM
Last Edited By:
Bojan Zorkic
Submitted On:
12/05/2016 08:41 AM
Subject:
Proprietary and Confidential labeling
Comments:
Please clarify if the Proprietary and Confidential labeling on exhibit 10.1 is intentional. If so, please provide the rationale as towhy this information should be kept as such. If not, please provide a note to reviewer stating so. Thank you.
Bojan Zorkic717-787-6968
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Rate Information Rate data applies to filing.
Filing Method: Prior Approval
Rate Change Type: Increase
Overall Percentage of Last Rate Revision: 2.500%
Effective Date of Last Rate Revision: 12/07/2015
Filing Method of Last Filing: Prior Approval
Company Rate Information
Company
Name:
Overall %
Indicated
Change:
Overall %
Rate
Impact:
Written Premium
Change for
this Program:
Number of Policy
Holders Affected
for this Program:
Written
Premium for
this Program:
Maximum %
Change
(where req'd):
Minimum %
Change
(where req'd):Chubb IndemnityInsurance Company
% 4.500% $323,766 1,535 $7,118,591 14.700% -4.700%
Chubb National InsuranceCompany
% 4.500% $824,182 4,650 $18,283,940 58.900% -4.600%
Great Northern InsuranceCompany
% 4.600% $2,095,285 10,132 $45,866,083 18.900% 5.300%
Pacific IndemnityCompany
% 4.700% $445,925 2,792 $9,429,466 16.700% -3.100%
Vigilant InsuranceCompany
% 4.400% $180,946 995 $4,135,565 14.200% -5.500%
Federal InsuranceCompany
% 4.400% $255,074 1,504 $5,748,027 39.400% -5.600%
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Rate/Rule Schedule
Item
No.
Schedule Item
Status Exhibit Name Rule # or Page # Rate Action
Previous State
Filing Number Attachments1 Home and Contents: Rules Page 5.1-5.3 Replacement No State #~SERFF
#CHUB-130107605~Co #15-9937-RR
Home and Contents Rules04.11.17_Final .pdf
2 Home and Contents: Rules Discounts
Page 5a.1-5a.2 Replacement No State #~SERFF#CHUB-130107605~Co #15-9937-RR
Home and Contents Rules –Discounts 04.11.17_Final.pdf
3 Home and Contents: Charts Page 7.1-7.19 Replacement No State #~SERFF#CHUB-130130486~Co #15-10237-RR
Home and Contents Charts04.11.17_Final.pdf
4 Home and Contents: Rules -High base deductibles
Page 5d.1 New Home and Contents Rules pg5d.1.pdf
5 Home and Contents: Rates -High base deductibles
Page 7a.1 New Home and Contents Rates pg7a.1.pdf
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Home and Contents: Rules
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Rules Page 5.1
This manual is for policies insured with us for the applicable rates for Federal Insurance Company, Chubb Indemnity Insurance Company, Chubb National Insurance Company, Great Northern Insurance Company, Pacific Indemnity Company, and Vigilant Insurance Company.
Eligibility All homes, except city homes, must be used as one−family or two−family residences. A city home must be an owner occupied rowhouse with no more than one rental unit and must meet all of the following criteria: masonry construction built prior to 1940 renovated plumbing, heating and electrical systems. Contents coverage may be written for the owner occupied unit only. A vacation home must be an owner occupied house, other than a primary residence, but may be rented to others for up to 15 days in any given policy term.
Contents coverage may be written for a house owned by the insured only if house coverage is included in the policy.
Coverage options Property covered
Types of coverage
Payment basis (loss settlement)
House (dwelling only)
Deluxe (all risk) City home house (all risk) Vacation home (all risk)
Extended replacement cost, verified replacement cost or conditional replacement cost
Contents (with Deluxe house)
Deluxe (all risk) Standard (named perils) Fire (named perils, without theft)
Replacement cost or actual cash value Replacement cost or actual cash value Actual cash value
Contents (with City home house)
City home contents (all risk)
Replacement cost or actual cash value
Contents (with Vacation home house)
Deluxe (all risk) Standard (named perils)
Replacement cost or actual cash value
Contents (Condominium, Cooperative, or Renters)
Deluxe (all risk) Standard (named perils)
Replacement cost or actual cash value
Home and Contents: Rules
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Rules Page 5.2
Minimum amount These are the minimum amounts of coverage: Deluxe house or vacation home house amount with or without contents: $ 50,000 City home house amount with city home contents: $400,000* City home house amount without contents: $400,000** Condominium or cooperative: $ 15,000 Renters: $ 15,000 * City home contents coverage may not be less than 10% of City home house coverage. ** City home house without contents is only available if the renovation surcharge applies (house is being rebuilt/course of construction).
Base premium determination (not applicable to City home house) The base premium is calculated for:
$100,000 house coverage insured on an extended replacement cost basis, (or $40,000 condominium, cooperative, or renters contents coverage insured on a replacement cost basis);
$50,000 contents coverage insured on a replacement cost basis (for a Deluxe house with Deluxe or Standard contents coverage only);
$30,000 contents coverage insured on a replacement cost basis (for a vacation home house with deluxe or standard contents coverage only);
$20,000 other permanent structures coverage for a deluxe house or $10,000 other permanent structures coverage for a vacation home house (or $4,000 additions and alterations coverage for a condominium, cooperative, or renters);
$50,000 personal liability coverage; and
$500 deductible.
Fire protection The fire protection factor (not applicable to City home house) and fire protection code is determined by the type of coverage for the residence, the distance a fire hydrant or fire station is from the residence and whether the residence has a central station or direct reporting fire alarm. In lieu of a fire protection factor, a separate discount is available for fire protection if a city home has a direct or central station reporting fire alarm.
Value factor (not applicable to City home house) The value factor is determined by using the type of coverage for the location, the fire protection code, and the value of the building or contents. For a house, use the value of the highest valued building at the location (excluding contents) to determine the coverage amount. For a condominium, cooperative, or rental unit, use the value of contents to determine the amount of coverage.
Deductibles All homes and contents coverages must have the same deductible. If a policy has a deductible higher than $50,000, the deductible waiver will not apply. The following flat deductibles are available: $250 $500 $1,000 $2,500 $5,000 $7,500 $10,000 $25,000 $50,000 $100,000
Underinsured houses If a house is not insured to at least 90% of the amount of coverage we recommend, the payment basis will be conditional replacement cost. There is an undervalue surcharge when coverage is below 80% of the amount of coverage we recommend.
Home and Contents: Rules
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Rules Page 5.3
Renovated or newly constructed houses If new construction of a house or other permanent structures or additions, alterations or renovations to the existing house or other permanent structures occurs that results in the insured living out of the house, the company must be notified.
Vacant houses If an insured house will be vacant (substantially empty of furnishings and contents) for more than 30 days, the company must be notified.
Personal liability Liability is rated in the state where the Primary residence (first location with liability) is located regardless of the location of any additional residence(s). If liability is not requested, we apply a discount for each location that building and/or contents coverage is provided.
Home and Contents: Rules – Discounts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Rules – Discounts Page 5a.1
Applicable to house and contents, condominium, cooperative, and renters The following discounts are applied to house and contents, condominium, cooperative and renters coverage, if applicable. Burglar alarm – Applicable if the residence has a central station or direct reporting theft or burglar alarm. This discount is
not applicable to Deluxe house without contents or with fire contents. Fire resistive – Applicable if the house or the unit is in a building where exterior walls, floors, and roof are built of masonry
or other fire resistive materials with a rating of two hours or more. Suburban rating (not applicable to city homes) – Applicable to a residence if the following conditions are met:
the residence is within 3 miles of the first responding fire department which: has at least 2 pumpers; and brings at least 6,000 gallons of water; or brings at least 4,000 gallons of water and has dual response or mutual aid agreement(s) with fire department(s)
within 5 miles of the residence which will supply an additional 2,000 gallons of water; and the ISO protection class is not greater than 9. Gated community (not applicable to city homes) – Applicable if the residence is located in a gated community. A
residence is in a gated community if:
vehicle access is limited to entrances controlled by guards or locked gates at all times;
proper identification is required to enter; and
visitors are announced. This discount is not intended for high rise buildings. Gated community patrol service (not applicable to city homes) – Applicable if the residence in the gated community has
a fire and burglar alarm that when activated, alerts the community’s 24-hour patrol service to dispatch a guard to the residence. Premier client – Applicable in one of two ways, based on either customer tenure or risk tenure:
customer tenure - applied for a new location if the insured has another location insured by us for three or more consecutive years. The discount will apply to the new location for the first three policy terms. Once a location has a risk tenure of three years or more, the discount will be based on the risk tenure provided we did not pay any property claims for that location; or
risk tenure - applied for each location insured by us for three or more consecutive years that we did not pay any property claims for that location within the last three years. If a claim we paid is reimbursed in full through salvage and/or subrogation, that claim may be waived when determining eligibility for this discount. This discount is not applied if we paid any property claims for a location due to a loss caused by a catastrophe.
Portfolio discount – home with valuable articles – Applicable for a primary, owner-occupied house, condominium,
cooperative or a primary occupied rental unit when valuable articles coverage, meeting certain eligibility (see Charts section), is written on the same policy at the same location. Portfolio discount – home with auto – Applicable for a residence, if the residence is not seasonal, secondary or rented
to others, listed on the policy when the insured has a good standing active Masterpiece automobile policy with us. If the residence is a house, the house must have contents coverage listed on the policy. A city home may have up to one rental unit and still qualify for this discount. The automobile policy must have at least one private passenger vehicle with physical damage coverage garaged in the state of Pennsylvania at that location. Payment history – Applicable for a residence when the insured (not a mortgagee or lienholder) has paid the premium in
full at least two years within the past five years. The five year eligibility period begins with the policy term immediately following the policy term where the premium was paid by the mortgagee or lienholder, if applicable. Lien free (not applicable to renters) – Applicable if the residence has no mortgage or lien. This discount is not applied
if the residence is vacant, under the course of construction or rented to others.
Home and Contents: Rules – Discounts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Rules – Discounts Page 5a.2
Applicable to house and contents only The following additional discounts are applied to house and contents coverage, if applicable. Residential sprinkler system – Applicable if the living areas, basement and heating system area have an approved and
properly maintained sprinkler system. New house (not applicable to city homes) – Applicable if the house was built within the last ten years. Renovated house (not applicable to city homes) – Applicable if the house was renovated within the last six years. If this
renovated house discount applies, the new house discount cannot. To qualify as renovated, the plumbing and heating systems and the electrical system must have been completely upgraded including new wiring, receptacles, circuit boxes and conduits in exposed areas. The renovation must have been inspected and approved by licensed civil authorities in compliance with the local building codes. Superior protection (not applicable to city homes) – Applicable if one or more of the protection characteristics on the
superior protection discount chart apply.
Applicable to City home house and City home contents The following additional discounts are applied to City home house and City home contents coverage, if applicable. Temperature monitoring system – Applicable if the city home has a temperature monitoring system which reports
directly into a central station or direct fire alarm. Restoration – Applicable if the city home underwent restoration of its plumbing or electrical systems,
heating/A.C./ventilating system, or its roof or façade repointing within the last ten years.
Applicable to condominium, cooperative, and renters The following additional discounts are applied to condominium, cooperative, and renters coverage, if applicable. Building security protection – Applicable to a condominium, cooperative, or rental unit meeting all of the following
criteria:
building entrances are at all times:
manned; or
locked and secured by a central station or direct reporting burglar alarm;
visitors are announced; and
elevators are either manned or key controlled or must be accessed through a locked door. Building fire protection – Applicable to a condominium, cooperative, or rental unit meeting all of the following criteria:
approved and properly maintained sprinkler systems have been installed throughout the building; and
common areas have a central station or direct reporting fire alarm or fire alarm which alerts the building security staff.
Home and Contents: Charts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.1
Base premium chart (not applicable to City home house)
Type of coverage
Base premium
Deluxe house/Vacation home house $ 1,231
Condominium/Cooperative $ 259
Renters $ 269
Coverage type chart (not applicable to City home house)
Coverage Factor
Deluxe house/deluxe contents 1.100
Deluxe house/standard contents 1.000
Deluxe house without contents or with fire contents* 0.750
Vacation home house with deluxe contents 0.990
Vacation home house with standard contents 0.900
Deluxe condominium or cooperative 1.350
Standard condominium or cooperative 1.000
Deluxe renters 1.350
Standard renters 1.000
*There is an additional charge for Fire contents coverage.
City home house base premium chart
Writing Company
Type of coverage
Rate per $100 all territories
Federal Insurance Company, Vigilant Insurance Company, Pacific Indemnity Company
City home house $ 0.289
Great Northern Insurance Company, Chubb Indemnity Insurance Company, Chubb National Insurance Company
City home house $ 0.272
Other permanent structures adjustment - City home house
For each 1% above 20% of house coverage: For each 1% below 20% of house coverage:
0.50% -0.25%
Sinkhole collapse coverage If sinkhole collapse coverage is requested for a house, the factor is 20%.
Discount Writing Company Charts (not applicable to City home house)
Deluxe house/ vacation home
house
Condominium or
cooperative
Renters
Vigilant Insurance Company 0.800 0.900 0.900
Pacific Indemnity Company 0.712 0.900 0.900
Great Northern Insurance Company, Chubb National Insurance Company, Chubb Indemnity Insurance Company
0.663 0.850 0.850
Home and Contents: Charts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.2
Territory relativity chart (not applicable to City home house)
Territory
Deluxe house/vacation
home house
Condominium or
cooperative
Renters
001 1.000 1.000 1.000
005 0.720 0.519 0.519
006 0.537 0.519 0.519
007 0.512 0.519 0.519
008 0.720 0.519 0.519
009 0.756 0.519 0.519
010 0.611 0.549 0.549
012 0.537 0.519 0.519
014 1.000 1.000 1.000
021 0.676 0.549 0.549
022 0.537 0.519 0.519
023 0.512 0.519 0.519
024 0.676 0.549 0.549
025 0.512 0.519 0.519
027 0.512 0.519 0.519
031 0.570 0.519 0.519
035 0.697 0.610 0.610
037 0.756 0.519 0.519
051 0.697 0.519 0.519
052 0.697 0.519 0.519
053 0.611 0.549 0.549
054 0.720 0.519 0.519
055 0.675 0.549 0.549
056 0.756 0.519 0.519
057 0.676 0.549 0.549
058 0.570 0.519 0.519
059 0.570 0.519 0.519
061 0.611 0.549 0.549
071 0.611 0.549 0.549
073 0.707 0.519 0.519
074 0.675 0.549 0.549
075 0.697 0.519 0.519
076 0.629 0.610 0.610
077 0.697 0.519 0.519
081 0.697 0.519 0.519
082 0.697 0.519 0.519
083 0.707 0.747 0.747
086 0.910 0.747 0.747
087 0.756 0.519 0.519
088 0.697 0.519 0.519
089 0.720 0.519 0.519
090 0.537 0.519 0.519
091 0.697 0.519 0.519
092 0.715 0.549 0.549
093 0.720 0.519 0.519
094 0.697 0.519 0.519
095 0.863 0.747 0.747
096 0.697 0.519 0.519
099 0.611 0.549 0.549
100 0.512 0.519 0.519
Home and Contents: Charts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.3
Territory relativity chart (not applicable to City home house) (continued)
Territory
Deluxe house/vacation
home house
Condominium or
cooperative
Renters
101 0.910 0.747 0.747
102 0.611 0.549 0.549
104 0.697 0.610 0.610
105 0.697 0.610 0.610
106 0.697 0.610 0.610
107 0.697 0.833 0.833
108 0.697 0.833 0.833
109 0.697 0.610 0.610
110 0.697 0.610 0.610
111 0.697 0.610 0.610
112 0.697 0.610 0.610
113 0.697 0.610 0.610
114 0.697 0.833 0.833
115 0.697 0.610 0.610
116 0.697 0.610 0.610
117 0.697 0.610 0.610
119 0.697 0.610 0.610
120 0.697 0.610 0.610
121 0.697 0.610 0.610
122 0.697 0.833 0.833
123 0.697 0.610 0.610
124 0.697 0.610 0.610
125 0.697 0.610 0.610
126 0.697 0.833 0.833
127 0.697 0.610 0.610
128 0.697 0.610 0.610
129 0.697 0.610 0.610
130 0.697 0.610 0.610
131 0.697 0.610 0.610
132 0.863 0.747 0.747
133 0.727 0.747 0.747
134 0.753 0.519 0.519
135 0.863 0.747 0.747
136 0.863 0.747 0.747
137 0.753 0.519 0.519
138 0.727 0.747 0.747
139 0.629 0.610 0.610
140 0.863 0.747 0.747
141 0.863 0.747 0.747
Coverage adjustments charts
Contents adjustment Additional deluxe or standard contents purchased:
Factor
For each 1% of contents above 50% of deluxe house coverage
0.50%
For each 1% of contents above 30% of vacation home house coverage
0.50%
Home and Contents: Charts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.4
Coverage adjustments charts (continued)
Reduced deluxe or standard contents purchased:
Factor
For each 1% of the first 10% contents below 50% of deluxe house coverage
-0.35%
For each 1% of contents below 40% of deluxe house coverage
-0.25%
For each 1% of contents below 30% of vacation home house coverage
-0.25%
For deluxe house the only contents value available below 5% is zero. For vacation home house the contents cannot be reduced below 5%. Fire contents (not applicable to City home house). For every 1% of house coverage that is requested for the fire
contents amount, the factor is 0.45%
City home contents Writing Company
Amount of coverage
Rate per $100 all territories
Federal Insurance Company, Vigilant Insurance Company, Pacific Indemnity Company
50% or more of house coverage $ 0.312
40%-49% of house coverage $ 0.364
30%-39% of house coverage $ 0.416
20%-29% of house coverage $ 0.467
10%-19% of house coverage $ 0.520
Great Northern Insurance Company, Chubb Indemnity Insurance Company, Chubb National Insurance Company
50% or more of house coverage $ 0.293
40%-49% of house coverage $ 0.342
30%-39% of house coverage $ 0.390
20%-29% of house coverage $ 0.450
10%-19% of house coverage $ 0.489
Other permanent structures adjustment For each 1% above 20% of deluxe house and above 10% of vacation home house coverage:
For each 1% below 20% of deluxe house and below 10% of vacation home house coverage:
0.50% -0.25%
Additions and alterations adjustment
Additional additions and alterations purchased:
For each 1% above 10% of additional additions and alterations purchased:
First 20% 0.50%
Additional 20%+ 0.53%
Reduced additions and alterations purchased. For every 1% of additions and alterations coverage below 10% of
contents coverage, the factor is -0.50%.
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.5
Actual cash value adjustment
Actual cash value discount
Apply if actual cash value payment basis applies in lieu of replacement cost payment basis
Deluxe house/ vacation home house with deluxe or standard contents
City home house with City home contents
Condominium, cooperative, or renters
10% 10% 23%
Mold remediation expenses chart
Mold remediation expenses coverage
House Condominiums, cooperatives, or renters
Percentage of house coverage
Surcharge
Percentage of combined amount of contents and additions and alterations
Surcharge
10% 28% 10% 14% 25% 36% 25% 18% 50% 44% 50% 22% 75% 52% 75% 26% 100% 60% 100% 30%
GreenWise upgrade coverage - houses
Percentage of house coverage
Surcharge
10% 1%
25% 2%
50% 3%
75% 4%
100% 5%
Fire protection chart (not applicable to City home house)
Fire protection factor
Fire station within five
miles of residence?
Fire hydrant within 1,000 feet of the
residence?*
Central station or direct
reporting fire alarm?
Deluxe house or vacation
home house
Condominium, cooperative, or renters
Fire protection code
Yes
Yes Yes 0.95 0.95 A
No 1.00 1.00 A
No Yes 1.06 1.10 A
No 1.18 1.26 B
No
Yes Yes 1.10 1.15 A
No 1.26 1.31 B
No Yes 1.13 1.18 B
No 1.38 1.40 B
*A 10,000 gallon water source (private hydrant, pool, etc.) which is accessible year-round is also acceptable.
GreenWise upgrade coverage – condominium or cooperatives
Percentage of combined amount of contents and additions and alterations
Surcharge
10% 1%
25% 2%
50% 3%
75% 4%
100% 5%
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.6
Value factor chart (not applicable to City Home House) Fire protection code. Use the fire protection chart to determine whether a residence is fire protection code
A or B. Value of building or contents. For a house, use the value of the highest valued building at the location
(excluding contents) to determine the coverage amount. For a condominium, cooperative, or rental unit, use the value of contents to determine the amount of coverage. Round the value to the nearest $1,000.
If the building or contents value is not in the chart, calculate your value factor using the nearest value factor and the factor increase per $1,000. EXAMPLE: $153,000 deluxe house or vacation home house with deluxe contents, fire protection code A For $150,000 the value factor is 1.4500; the value factor per $1,000 is 0.00900.
Figure the difference between the value of the building or contents and the nearest value in the chart (less than or equal to) and divide by 1,000. This provides the number of thousands between the values. $153,000 -$150,000 $ 3,000 ÷ $1,000 = 3 Multiply the value factor per 1,000 by the number of thousands between values 3 x 0.0090 = 0.027 Add this amount to the $150,000 value factor 1.4500 1.4500 + 0.0270 = 1.4770 The result, 1.4770, is the value factor for this example.
Deluxe house or vacation home house
Fire protection code A Fire protection code B
Value of building Value factor Value factor per $1,000 Value factor Value factor per $1,000
$ 50,000 0.5000 0.01000 0.5000 0.01000
$ 55,000 0.5500 0.01000 0.5500 0.01000
$ 60,000 0.6000 0.01000 0.6000 0.01000
$ 65,000 0.6500 0.01000 0.6500 0.01000
$ 70,000 0.7000 0.01000 0.7000 0.01000
$ 75,000 0.7500 0.01000 0.7500 0.01000
$ 80,000 0.8000 0.01000 0.8000 0.01000
$ 85,000 0.8500 0.01000 0.8500 0.01000
$ 90,000 0.9000 0.01000 0.9000 0.01000
$ 95,000 0.9500 0.01000 0.9500 0.01000
$ 100,000 1.0000 0.00900 1.0000 0.01126
$ 150,000 1.4500 0.00900 1.5630 0.01126
$ 250,000 2.3500 0.00760 2.6890 0.00950
$ 500,000 4.2500 0.00700 5.0640 0.00876
$ 700,000 5.6500 0.00600 6.8160 0.00750
$ 1,000,000 7.4500 0.00600 9.0660 0.00750
$ 1,500,000 10.4500 0.00600 12.8160 0.00750
$ 3,000,000 19.4500 0.00620 24.0660 0.00776
$ 5,000,000 31.8500 0.00640 39.5860 0.00800
$ 7,500,000 47.8500 0.00640 59.5860 0.00800
$10,000,000 63.8500 0.00640 79.5860 0.00800
$20,000,000+ 127.8500 0.00640 159.5860 0.00800
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.7
Value factor chart (continued)
Condominium, cooperative, or renters
Fire protection codes A and B
Value of contents
Value factor
Value factor per $1,000
$ 15,000 0.3550 0.02580
$ 30,000 0.7420 0.02580
$ 40,000 1.0000 0.02800
$ 150,000 4.0800 0.02580
$ 1,000,000 26.0100 0.02580
$ 1,500,000 38.9100 0.02580
$ 3,000,000 77.6100 0.02580
$ 5,000,000 129.2100 0.02580
Deductible factor charts
Deluxe house, Vacation home house, Condominium, Cooperative, or Renters:
Deluxe House, Vacation Home House
Base deductible
Value of building
$250 $500 $1,000 $2,500 $5,000 $7,500 $10,000 $25,000 $50,000 $100,000
$ 15,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 0.300
$ 50,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 0.300 $ 500,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 0.300 $ 1,000,000 1.200 1.150 0.950 0.800 0.625 0.550 0.520 0.450 0.400 0.330 $ 2,500,000 1.200 1.150 1.100 0.835 0.750 0.650 0.545 0.490 0.425 0.375 $ 5,000,000 1.500 1.250 1.100 0.900 0.800 0.750 0.620 0.535 0.450 0.400 $ 7,500,000 and greater
1.500 1.300 1.250 0.950 0.900 0.850 0.800 0.750 0.564 0.500
We interpolate between the closest lower and higher listed values where applicable.
Condominium, cooperative, or renters Value of Contents
Base deductible
and A&A combined
$250 $500 $1,000 $2,500 $5,000 $7,500 $10,000 $25,000 $50,000 $100,000
$ 15,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 0.300
$ 50,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 0.300 $ 500,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 0.300 $ 1,000,000 1.200 1.150 0.950 0.800 0.625 0.550 0.520 0.450 0.400 0.330 $ 2,500,000 1.200 1.150 1.100 0.835 0.750 0.650 0.545 0.490 0.425 0.375 $ 5,000,000 1.500 1.250 1.100 0.900 0.800 0.750 0.620 0.535 0.450 0.400 $ 7,500,000 and greater
1.500 1.300 1.250 0.950 0.900 0.850 0.800 0.750 0.564 0.500
We interpolate between the closest lower and higher listed values where applicable.
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.8
Deductible factor charts (continued)
City home house
Base deductible
Deductible
factors
Maximum amount
of change
$ 250 1.250 No Maximum
$ 500 1.120 No Maximum
$ 1,000 1.000 --
$ 2,500 0.875 $ 1,500
$ 5,000 0.750 $ 3,000
$ 7,500 0.688 $ 4,500
$ 10,000 0.625 $ 7,000
$ 25,000 0.563 $ 9,000
$ 50,000 0.500 $13,000
$100,000 0.410 $14,500
Discounts and surcharges charts
Burglar alarm Factor
Deluxe house or vacation home house with deluxe or standard contents 0.95
Deluxe house with fire contents or no contents 1.00
Deluxe or standard condominium, cooperative, or renters 0.95
Discounts
Deluxe house
or vacation home house
Condominium,
cooperative, or renters
Gated community 5% 5%
Gated community patrol service 5% 5%
Residential sprinkler system 10% N/A
Fire resistive 15% 15%
Suburban rating discount 10% 10%
Payment history
2 years paid in full; or
3+ years paid in full
3% 5%
3% 5%
Lien free* 2.5% 2.5%
Building security protection N/A 5%
Building fire protection N/A 5%
*Not applicable to Renters policies.
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.9
Discounts and surcharges charts (continued)
Portfolio discounts
Deluxe house,
City home house
Condominium, cooperative, or
renters
Home with auto 10.0% 10.0%
Home with valuable articles Minimum eligible amount of coverage
the total of all itemized and/or blanket valuable articles is at least $250,000; or
the total of all itemized and/or blanket valuable articles (excluding fine arts, if any) is at least $50,000
12.5% 12.5%
the total of all itemized and/or blanket valuable articles is at least $100,000; or
the total of all itemized and/or blanket valuable articles (excluding fine arts, if any) is at least $25,000
10.0% 10.0%
We will apply the highest percentage of discount for which the residence qualifies.
* Portfolio discounts are not applied to the 25% maximum total discount for City home house.
Discounts
City home house (A maximum total discount of 25% applies to City home house)*
Fire alarm 5%
Burglar alarm 5%
Temperature monitoring system 5%
Residential sprinkler system 10%
Fire resistive 15%
Payment history
2 years paid in full; or
3+ years paid in full
3% 5%
Lien free* 2.5%
* Lien free is not applied to the 25% maximum total discount for City home house.
Restoration discount for City home house *
Restoration completed
within 5 years Restoration completed within 6-10 years
Plumbing system 2% 1%
Electrical system 2% 1%
Heating/A.C./ventilating system 2% 1%
Roof 2% 1%
Façade repointing 2% 1%
* Restoration discounts are included in the 25% maximum total discount for City home house.
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.10
Superior protection
Superior protection discounts
Deluxe house
Vacation home house
Security protection for the entire external perimeter of the house consisting of any one or more of the following:
closed circuit TV cameras monitored 24 hours a day;
detection system, external to the residence which is motion activated and monitored 24 hours per day;
24 hour on site security guard.
5% 5%
Full time caretaker who lives at the residence year round. This discount applies only if a 24 hour on site security guard is not present.
2% 4%
24 hour signal continuity protection for central station or direct fire and burglar alarm systems which activates the alarm when interrupted.
2% 2%
Perimeter gate where vehicular and pedestrian access is limited to entrances controlled by locked or electronic gates. This discount does not apply if any other Gated community discount applies.
2% 2%
Sprinkler system water flow alarm which activates a central station or direct alarm.
2% 2%
Temperature monitoring system, to protect against freezing, which activates a central station alarm.
2% 4%
Permanently installed, electrical power back−up generator capable of servicing heat, light, alarm and sprinkler systems.
5% 5%
Explosive gas leakage detector which activates a central station or direct fire alarm.
2% 2%
Automatic seismic shut−off valve to gas lines which activates automatically in the event of an earthquake.
2% 2%
Lightning protection system having a U.L. Master Label and installed by a certified Lightning Protection Institute installer. The system must include lightning rods and lightning arresters protecting the electrical wiring and all electronic devices of the entire house.
2% 2%
Water leak detection system having a U.L. Master Label. The system must monitor all areas containing plumbing devices and outlets. In the event of a leak, this system must:
• activate a central station or direct alarm; or 3% 3% • include a control system that closes the
master plumbing value; or 5% 5%
• include a control system that closes the master plumbing value and activates a central station or direct alarm.
8% 8%
The maximum total discount for Superior protection is 15%.
Home and Contents: Charts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.11
New house and Renovated house discounts (not applicable to City home house)
New house
Age of
dwelling
Renovated house
Years since oldest
renovation
24% 0 17% 0
24% 1 17% 1
21% 2 15% 2
18% 3 12% 3
15% 4 9% 4
12% 5 6% 5
9% 6 3% 6
6% 7
3% 8
2% 9
1% 10
Premier Client Discount
Risk Customer Loss free
tenure tenure No Yes
0 years 1 year 0.0% 0.0%
0 years 2 years 0.0% 0.0%
0 years 3 years -1.0% -1.0%
0 years 4 years -1.5% -1.5%
0 years 5 years -2.0% -2.0%
0 years 6 years -2.5% -2.5%
0 years 7 years -3.0% -3.0%
0 years 8 years -4.0% -4.0%
0 years 9+ years -5.0% -5.0%
1 year 1 year 0.0% 0.0%
1 year 2 years 0.0% 0.0%
1 year 3 years -1.0% -1.0%
1 year 4 years -1.5% -1.5%
1 year 5 years -2.0% -2.0%
1 year 6 years -2.5% -2.5%
1 year 7 years -3.0% -3.0%
1 year 8 years -4.0% -4.0%
1 year 9+ years -5.0% -5.0%
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.12
Discounts and surcharges charts (continued)
Premier Client Discount
(continued)
Risk Customer Loss free
tenure tenure No Yes
2 years 2 years 0.0% 0.0%
2 years 3 years -1.0% -1.0%
2 years 4 years -1.5% -1.5%
2 years 5 years -2.0% -2.0%
2 years 6 years -2.5% -2.5%
2 years 7 years -3.0% -3.0%
2 years 8 years -4.0% -4.0%
2 years 9+ years -5.0% -5.0%
3 years 3+ years 0.0% -5.0%
4 years 4+ years 0.0% -5.8%
5 years 5+ years 0.0% -6.6%
6 years 6+ years 0.0% -7.5%
7 years 7+ years 0.0% -8.3%
8 years 8+ years 0.0% -9.1%
9+ years 9+ years 0.0% -10.0%
Surcharges
Deluxe house or vacation home
house
City home house
Condominium,
cooperative, or renters
Cancellation surcharge 10% 10% 10%
Rented to others surcharge 25% N/A 25%
Rental unit N/A 5% N/A
Vacation home house nonoccupancy surcharge*
10% N/A N/A
Undervalue surcharge* 20% 20% N/A
Renovation or construction surcharge* 35% N/A N/A
Renovation surcharge* N/A 35% N/A
Vacant house surcharge (Deluxe house only)*
25% 25% N/A
*Applied by Company.
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.13
Discounts and surcharges charts (continued)
Claims rating factor
Amount of house coverage $1,000,000 or less
Risk tenure
Number of losses
0 1 2 3 4 5+
1 year 0.0% 20.0% 44.0% 72.5% 107.5% 150.0%
2 years 0.0% 16.0% 39.2% 66.8% 100.5% 141.3%
3 years -2.5% 12.0% 34.3% 61.2% 93.5% 132.7%
4 years -3.3% 8.0% 29.5% 55.5% 86.5% 124.0%
5 years -4.2% 5.3% 24.7% 49.7% 79.5% 115.5%
6 years -5.0% 2.7% 19.8% 43.8% 72.5% 107.0%
7 years -5.8% 0.0% 15.0% 38.0% 65.5% 98.5%
8 years -6.7% -2.5% 12.3% 32.0% 58.3% 89.8%
9+ years -7.5% -5.0% 9.5% 26.0% 51.0% 81.0%
Amount of house coverage equal to $2,000,000
Risk tenure
Number of losses
0 1 2 3 4 5+
1 year 0.0% 15.0% 35.5% 60.0% 89.0% 123.0%
2 years 0.0% 10.8% 30.7% 54.2% 82.2% 115.0%
3 years -2.5% 6.7% 25.8% 48.3% 75.3% 107.0%
4 years -3.3% 2.5% 21.0% 42.5% 68.5% 99.0%
5 years -4.2% 0.8% 17.0% 37.8% 62.8% 92.3%
6 years -5.0% -0.8% 13.0% 33.2% 57.2% 85.7%
7 years -5.8% -2.5% 9.0% 28.5% 51.5% 79.0%
8 years -6.7% -3.8% 5.8% 24.8% 47.0% 73.8%
9+ years -7.5% -5.0% 2.5% 21.0% 42.5% 68.5%
We interpolate for house coverage amounts between $1,000,001 and $1,999,999.
Amount of house coverage $5,000,000 or greater
Risk tenure
Number of losses
0 1 2 3 4 5+
1 year 0.0% 10.0% 26.5% 45.5% 67.5% 92.5%
2 years 0.0% 6.7% 22.7% 41.2% 62.5% 86.8%
3 years -5.0% 3.3% 18.8% 36.8% 57.5% 81.2%
4 years -5.8% 0.0% 15.0% 32.5% 52.5% 75.5%
5 years -6.6% -1.7% 11.7% 28.7% 48.0% 70.3%
6 years -7.5% -3.3% 8.3% 24.8% 43.5% 65.2%
7 years -8.3% -5.0% 5.0% 21.0% 39.0% 60.0%
8 years -9.1% -6.2% 2.5% 18.0% 35.5% 56.0%
9+ years -10.0% -7.5% 0.0% 15.0% 32.0% 52.0%
We interpolate for house coverage amounts between $2,000,001 and $4,999,999.
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.14
Discounts and surcharges charts (continued)
Claims rating factor (continued)
Amount of contents and additions and alterations coverage $250,000 or less
Risk tenure
Number of losses
0 1 2 3 4 5+
1 year 0.0% 20.0% 44.0% 72.5% 107.5% 150.0%
2 years 0.0% 16.0% 39.2% 66.8% 100.5% 141.3%
3 years -2.5% 12.0% 34.3% 61.2% 93.5% 132.7%
4 years -3.3% 8.0% 29.5% 55.5% 86.5% 124.0%
5 years -4.2% 5.3% 24.7% 49.7% 79.5% 115.5%
6 years -5.0% 2.7% 19.8% 43.8% 72.5% 107.0%
7 years -5.8% 0.0% 15.0% 38.0% 65.5% 98.5%
8 years -6.7% -2.5% 12.3% 32.0% 58.3% 89.8%
9+ years -7.5% -5.0% 9.5% 26.0% 51.0% 81.0%
Amount of contents and additions and alterations coverage equal to $500,000
Risk tenure
Number of losses
0 1 2 3 4 5+
1 year 0.0% 15.0% 35.5% 60.0% 89.0% 123.0%
2 years 0.0% 10.8% 30.7% 54.2% 82.2% 115.0%
3 years -2.5% 6.7% 25.8% 48.3% 75.3% 107.0%
4 years -3.3% 2.5% 21.0% 42.5% 68.5% 99.0%
5 years -4.2% 0.8% 17.0% 37.8% 62.8% 92.3%
6 years -5.0% -0.8% 13.0% 33.2% 57.2% 85.7%
7 years -5.8% -2.5% 9.0% 28.5% 51.5% 79.0%
8 years -6.7% -3.8% 5.8% 24.8% 47.0% 73.8%
9+ years -7.5% -5.0% 2.5% 21.0% 42.5% 68.5%
We interpolate for contents and additions and alterations coverage amounts between $250,001 and $499,999.
Amount of contents and additions and alterations coverage $1,000,000 or greater
Risk tenure
Number of losses
0 1 2 3 4 5+
1 year 0.0% 10.0% 26.5% 45.5% 67.5% 92.5%
2 years 0.0% 6.7% 22.7% 41.2% 62.5% 86.8%
3 years -5.0% 3.3% 18.8% 36.8% 57.5% 81.2%
4 years -5.8% 0.0% 15.0% 32.5% 52.5% 75.5%
5 years -6.6% -1.7% 11.7% 28.7% 48.0% 70.3%
6 years -7.5% -3.3% 8.3% 24.8% 43.5% 65.2%
7 years -8.3% -5.0% 5.0% 21.0% 39.0% 60.0%
8 years -9.1% -6.2% 2.5% 18.0% 35.5% 56.0%
9+ years -10.0% -7.5% 0.0% 15.0% 32.0% 52.0% We interpolate for contents and additions and alterations coverage amounts between $500,001 and $999,999.
Home and Contents: Charts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.15
Tier factor chart
Tier
House factor
Condominium, cooperative, or renters factor
1 0.62890 0.72900
2 0.66680 0.76370
3 0.70710 0.79990
4 0.75050 0.83800
5 0.79760 0.87850
6 0.84530 0.92060
7 0.89680 0.96430
8 0.95060 1.01020
9 1.00770 1.05820
10 1.06960 1.10870
11 1.13410 1.16160
12 1.20320 1.21700
13 1.28630 1.27980
14 1.36580 1.34170
15 1.44970 1.40570
16 1.53710 1.47330
17 1.66510 1.57620
18 1.76530 1.64440
19 2.17950 1.96620
20 1.00000 1.00000
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.16
Dollar adjustments charts
Liability Liability is rated in the state where the Primary residence (first location with liability) is located.
Primary location Each additional location Any liability Personal liability Excess only*
Is coverage provided for Building
and/or contents? Is coverage provided for Building and/or contents?
Amount of coverage
Yes
No
Yes
No
$ 50,000 $ 0 $ 15 $ 0 $ 15 N/A
$ 100,000 $ 43 $ 58 $ 10 $ 25 N/A
$ 200,000 $ 72 $ 87 $ 15 $ 30 N/A
$ 300,000 $ 97 $ 112 $ 19 $ 34 N/A
$ 500,000 $ 128 $ 143 $ 24 $ 39 N/A
$ 1,000,000 $ 141 $ 156 $ 28 $ 43 $ 22
$ 2,000,000 $ 167 $ 182 $ 32 $ 47 $ 26
$ 3,000,000 $ 184 $ 199 $ 33 $ 48 $ 28
$ 5,000,000 $ 206 $ 221 $ 40 $ 55 $ 32
$10,000,000 $ 266 $ 281 $ 42 $ 57 $ 43
*These premiums only apply when the insured requests building and/or contents coverage for one or more locations. No personal liability coverage. Subtract $15 for each location that building and/or contents coverage is provided if no
personal liability coverage is provided.
House replacement cost Subtract $5 if verified or conditional replacement cost payment basis applies in lieu of extended replacement cost payment basis. House replacement cost can only be applied by the Company.
Employment practices liability Add the amount from the following chart based on the amount of coverage selected. The coverage is always rated at one residence and the residence must be listed for Personal liability coverage.
Charge for Employment practices liability coverage with a $10,000 deductible
Employment practices liability Reputational injury
Code
Amount of coverage
Maximum annual amount of coverage
Amount of coverage
Maximum annual amount of coverage
Additional premium
A $250,000 $500,000 $25,000 $25,000 $ 650
B $500,000 $500,000 $50,000 $50,000 $ 975
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04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.17
Dollar adjustments charts
(continued)
Homeowner/unit assessments
For each additional $1,000 homeowner/unit assessments coverage over $50,000, add:
For each additional $1,000 coverage for an assessment due to a deductible in the homeowner, condominium, or cooperative association’s insurance over $5,000, add:
Deluxe house $2 $2
Vacation home house $2 $2
City home house $2 $2
Deluxe condominium or cooperative $2 $2
Standard condominium or cooperative $2 $2
Refer to Company for: a total amount of homeowner or unit assessments coverage greater than $500,000 or greater than the amount of
coverage for house, or the combined amount of coverage for additions and alterations and contents; or for an amount exceeding $50,000 for coverage for an assessment due to a deductible in the homeowners ,
condominium, or cooperative association’s insurance.
Landscaping
For each additional $1,000 landscaping coverage over 5% of the amount of house coverage and 10% of the amount of contents coverage, add:
For each additional $5,000 over $10,000 for any one tree, shrub, or plant, add:
Deluxe house $4 $50
Vacation home house $4 $50
Deluxe and standard condominium, cooperative, or renters
$4 $50
Refer to company to increase coverage for landscaping:
over $250,000 for the total amount of landscaping coverage; or
over $50,000 for the amount of coverage for any tree, shrub or plant.
Home and Contents: Charts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.18
Dollar Adjustments charts (continued)
Landscaping – wind and hail coverage
For each $1,000 landscaping coverage with the
perils of wind and hail included, add:
Deluxe house $15
Vacation home house $15
Deluxe and standard condominium, cooperative, or renters
$15
This increased coverage will be added by the Company.
Landscaping – sleet and weight of ice and snow coverage
For each $1,000 landscaping coverage with the
perils of sleet and weight of ice and snow included, add:
Deluxe house $15
Vacation home house $15
Deluxe and standard condominium, cooperative, or renters
$15
This increased coverage will be added by the Company.
City garden coverage For each additional $1,000
city garden coverage over 5% of the amount of city home house coverage, add:
For each additional $5,000 over $10,000 for any tree, shrub, or plant, add:
City home house $4 $50
Refer to company to increase coverage for landscaping:
over $250,000 for the total amount of landscaping coverage; or
over $50,000 for the amount of coverage for any tree, shrub or plant.
City garden coverage – wind and hail coverage For each $1,000 city garden coverage with the
perils of wind and hail included, add:
City home house $15
This increased coverage will be added by the Company.
City garden coverage – sleet and weight of ice and snow coverage
For each $1,000 city garden coverage with the
perils of sleet and weight of ice and snow included, add:
City home house $15
This increased coverage will be added by the Company.
Home and Contents: Charts
04/11/17 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.19
Dollar Adjustments charts (continued)
Business property For each additional $1,000 on premises business
property coverage over $25,000, add:
Deluxe contents $5
Standard contents $5
Fire contents $5
City home contents $5
Deluxe condominium, cooperative, or renters $5
Standard condominium, cooperative, or renters $5
For a total amount of business property coverage greater than $250,000, refer to Company. The increased coverage will be applied by the Company.
Student additional living expenses For $5,000 student
additional living expenses coverage, add:
For each $1,000 student additional living expenses coverage, greater than $5,000, add:
Deluxe contents $25 $1.50
Standard contents $25 $1.50 Fire contents $25 $1.50 City home contents $25 $1.50 Deluxe condominium, cooperative, or renters $25 $1.50 Standard condominium, cooperative, or renters $25 $1.50 For a total amount of student additional living expenses coverage greater than $250,000, refer to Company. The increased coverage will be applied by the Company.
Assisted living care coverage – contents of a relative-in-care
For the first $5,000 assisted living care coverage – contents of a relative-in-care, add:
For each $1,000 assisted living care coverage – contents of a relative-in-care, greater than $5,000, add:
Deluxe contents $50 $5
Standard contents $50 $5 City home contents $50 $5 Deluxe condominium, cooperative, or renters $50 $5 Standard condominium, cooperative, or renters $50 $5 For a total amount of assisted living care coverage greater than $250,000, refer to Company. The increased coverage will be applied by the Company.
Family protection coverage The premium for Family protection coverage is $110.
Earthquake coverage For a house add $0.60 for every $1,000 of house coverage. For a house with GreenWise upgrade coverage, multiply the earthquake rate by 1.05.
04/11/17 Pennsylvania Masterpiece® Manual Home and Contents: Rules Page 5d.1 NDA
Home and Contents: Rules
For company use only
High base deductibles
All homes and contents coverage must have the same deductible. The following high base deductibles are available at the option of the insured.
$250,000 $500,000 $750,000
04/11/17 Pennsylvania Masterpiece® Manual Home and Contents: Rates Page 7a.1 NDA
Home and Contents: Rates
For company use only
High base deductibles
For deductibles larger than $100,000 the factors below will be applied. If a policy has a deductible higher than $50,000, the deductible waiver will not apply.
Deluxe House, Vacation Home House
Value of building $250,000 $500,000 $750,000
$ 15,000 0.225 0.175 0.150
$ 50,000 0.225 0.175 0.150
$ 500,000 0.225 0.175 0.150
$1,000,000 0.250 0.200 0.175
$2,500,000 0.300 0.250 0.215
$5,000,000 0.350 0.300 0.260
$7,500,000 and greater 0.450 0.400 0.350
We interpolate between the closest lower and higher listed values where applicable.
Condominium, cooperative, or renters
Value of Contents and A&A combined $250,000 $500,000 $750,000
$ 15,000 0.225 0.175 0.150
$ 50,000 0.225 0.175 0.150
$ 500,000 0.225 0.175 0.150
$1,000,000 0.250 0.200 0.175
$2,500,000 0.300 0.250 0.215
$5,000,000 0.350 0.300 0.260
$7,500,000 and greater 0.450 0.400 0.350
We interpolate between the closest lower and higher listed values where applicable.
City home house
Base deductible Deductible factors
Maximum amount of
change
$ 250,000 0.330 $17,500
$ 500,000 0.290 $19,500
$ 750,000 0.275 $21,500
Supporting Document Schedules Bypassed - Item: Authorization to File (PC)Bypass Reason: Not applicable; we are filing on our own behalf.Attachment(s):Item Status:Status Date:
Satisfied - Item: Actuarial Explanatory Memorandum & Supporting Exhibits (PC)Comments: Attached.
Attachment(s):PA Filing Packet 20161128_afm.pdfPA Filing Exhibits 20161123.pdfPA Filing Exhibits 20161123.xls
Item Status:Status Date:
Satisfied - Item: Description of ChangeComments: Attached.Attachment(s): Desc of Change_RR.pdfItem Status:Status Date:
Satisfied - Item: Marked CopyComments: Attached.Attachment(s): PA Home mock up.pdfItem Status:Status Date:
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Attachment PA Filing Exhibits 20161123.xls is not a PDF document and cannot be reproduced here.
SERFF Tracking #: ACEH-130764825 State Tracking #: Company Tracking #: 16-11049-RR
State: Pennsylvania First Filing Company: Chubb Indemnity Insurance Company, ...
TOI/Sub-TOI: 04.0 Homeowners/04.0000 Homeowners Sub-TOI Combinations
Product Name: Masterpiece
Project Name/Number: HO Mid Phase/ 16 11049
PDF Pipeline for SERFF Tracking Number ACEH-130764825 Generated 12/08/2016 06:36 AM
Pennsylvania
MASTERPIECE Rate and Rule Manual
Home and Contents Section
Index
Exhibit 1 Filing Memorandum Exhibit 2 Explanatory Notes to Indication Exhibit 3 Homeowners Rate Level Indication Exhibit 4 Loss Development Exhibits Exhibit 5 Trend Exhibits Exhibit 6 Catastrophe Loads Exhibit 7 Countrywide Unallocated Loss Adjustment Expense Exhibit Exhibit 8 Countrywide Underwriting Expense Exhibit Exhibit 9 Pennsylvania Expense Provisions Exhibit 10 Pennsylvania ROE Exhibit Exhibit 11 Pennsylvania Annual Statement Exhibit 12 Excess Shock Exhibits
Exhibit 13 Rate Level Effects by Territory Exhibit 14 Rate Level Effect Histograms
Exhibit 15 Support of High Deductible Factors
Exhibit 1.1
Pennsylvania
MASTERPIECE RATE AND RULE MANUAL HOME AND CONTENTS SECTION
This memorandum presents a revision of the Home and Contents sections of the MASTERPIECE Rate and Rule manual in the state of Pennsylvania for Federal Insurance Company, Vigilant Insurance Company, Pacific Indemnity Company, Great Northern Insurance Company, Chubb National Insurance Company, and Chubb Indemnity Insurance Company. This explanatory memorandum is provided for informational purposes only and does not modify any of our rules, rates, rating plans or manuals. The actual rating methodologies used by the member companies of CHUBB are outlined in the applicable rules. The overall Homeowners rate level effect resulting from the changes described in this memorandum is +4.6%, which is supported by our overall indication of +7.7%. The rate effect and indication is broken out by form below: Inforce Written Form Prem as of Apr ‘16 Indication Rate Effect House & Vacation Home $ 81,959,496 7.8% +5.0% R/C/C $ 6,622,560 4.3% -0.1% City Home $ 1,999,615 4.9% 0.0% Total $ 90,581,670 7.7% +4.6% Revise Base Rates The House and Vacation Home base rates will be increased from $1,174 to $1,231. Revise Coverage Adjustments
Revised contents buy-up for House and Vacation home. Introduced new breakout for House contents buy-down from 5-40% of Coverage A. Revised contents buy-down for Vacation home. Increase Actual Cash Value Adjustment for Deluxe House, Vacation home with Deluxe or
Standard contents, and City Home from 9% to 10%. Decrease rates for Mold remediation by 20% for Renters/Condos/Co-Ops.
Please see the proposed rate and rule manual for the new rates. Revise Value Factors
Fire protection B value factor increments revised to be 25% higher than fire protection A for sizes of risk greater than or equal to $100,000. Please see the proposed rate and rule manual for the new Value Factor table.
Introduce High Deductible Options
Introduced high deductible options: $100,000, $250,000, $500,000 and $750,000. The $100,000 deductible option is in the rate and rule manual.
Exhibit 1.2
The $250,000, $500,000 and $750,000 deductible options will be on NDA pages. Please see the proposed rate and rule manual and NDA pages for the full deductible tables, and Exhibit 15 for the support of the proposed factors. Revise Discounts and Surcharges
Increase discounts for existing Water Leak Detection Credits, and introduce a 3rd level discount as part of the Water Leak Detection Credit for systems that do not close the master plumbing valve but do activate a central station or direct alarm.
Expand New House Discount to 10 years, with the maximum value of the discount increased to 24%.
Increase Renovation or Construction surcharge for Deluxe Home and Vacation Home. Increase Renovation surcharge for City Home.
Please see the proposed rate and rule manual for the new rates. Rate Level Effects
The combined rate level effects for the above revisions for Pennsylvania are based on in-force written premium as of April 30, 2016:
Premium Written Level Form Contents Premium Effect Deluxe House / Vacation Deluxe 68,441,439 5.0% Standard 10,187,273 5.0% No/Fire 3,330,783 5.4% Total 81,959,496 5.0% Renter/Condo/Coop Deluxe 6,136,315 -0.1% Standard 486,245 0.0% Total 6,622,560 -0.1% City Home
Total 1,999,615 0.0%
Total 90,581,670 4.6%
Exhibit 2.1
CHUBB Pennsylvania
Explanatory Notes to Indication
Exhibit 3 is provided in support of changes to the "Home and Contents" section of the MASTERPIECE Rate and Rule manual. Below is an explanation of the information provided in that exhibit.
Column 4: On Level Earned Premium = Earned Premium at current rate level = Column 2 adjusted to reflect the following overall rate changes during and since the experience period:
Date
House/ Vacation Effect
RCC Effect
City Home Effect
All Forms Effect
12/07/15 2.9% -2.2% -0.1% 2.5% 12/10/13 10.2% 0.1% 0.0% 9.2% 12/10/12 12/12/11
5.6% 4.1%
0.0% -0.3%
0.0% 0.2%
5.1% 3.6%
Column 5: Reported incurred losses and ALAE = losses and allocated loss adjustment
expenses incurred during each of the five accident years evaluated as of March 31, 2016.
Column 6: Ex-cat Capped Losses and ALAE = Shock Adjusted Losses Excluding Catastrophes.
For house forms, the shock loss adjustment procedure takes individual ground-up fire losses (ground-up to avoid distortions due to the presence of varying deductibles) and caps them at a pre-determined percentage (10%) of the total coverage amount. See Exhibit 12.1. House non-fire losses are capped at 35% of the total coverage amount, and R/C/C losses are capped at 85% of the contents amount.
Column 7: Expected Excess Shock Loss = After capping the House fire losses, an expected
loss amount, based on countrywide fire frequency and severity values, was built back in for each policy for each year. The selected frequency and severity values are displayed in Exhibit 12.2. These values were then used to determine an expected annual loss amount for each risk. A state offset is then applied to account for a state’s long-term deviation from countrywide results. The offset for Pennsylvania is 2.9%, as shown in Exhibit 12.3. This expected loss amount, representing a particular risk’s fire protection, size of risk, and deductible, was added to the capped losses for each year for indication purposes. The excess from capping House non-fire and R/C/C all cause large losses is spread to all years and territories.
Column 8: Loss Development
Exhibit 2.2
Loss and ALAE were developed to an ultimate settlement level using factors shown
in Exhibit 4. Column 9: Loss Ratio Trend Factors
These factors, shown in Exhibits 5.17-5.18, are applied to the Column 6 capped loss & Column 7 excess shock loss, for each of the experience years.
Column 10: Ultimate Ex-cat Adjusted Loss & ALAE = Ex-cat Capped Loss & ALAE plus Expected
Excess Shock Loss developed to ultimate and trended. Column 11: Ultimate Ex-cat Adjusted incurred loss and ALAE Ratio = Col 10 / Col 4.
Column 12: Catastrophe Adjustment
A non-modeled catastrophe loss and ALAE ratio was developed by looking at the catastrophe losses since 1991. See Exhibit 6.1-6.9.
Column 13: Ultimate Adjusted Loss & ALAE Ratio = Column 11 + Column 12
Row 15: 5 Year Average Loss Ratio = the weighted average of Column 13 using the following weights from Column 14.
Year Weight 2011 10.0% 2012 15.0% 2013 20.0% 2014 25.0% 2015 30.0%
Row 16: Modeled Cat Loss & ALAE Ratio is shown in Exhibit 6.10. Row 17: Unallocated Loss Adjustment Expenses
Unallocated loss adjustment expenses were estimated to be 6.1% of the developed incurred losses including allocated loss adjustment expenses. This estimate was based on 2013-2015 CHUBB’s data as displayed in Exhibit 7.
Row 18: Fixed Expenses
House RCC (1) Other Acquisitions 7.5% 7.5%
Exhibit 2.3
(2) General Expense 2.1% 2.1% (3) Total Fixed Expenses: (1)+(2) 9.6% 9.6%
Notes: (1) & (2) Based on 2013-2015 countrywide data from the Insurance
Expense Exhibit (see Exhibit 8) Row 19: Projected Loss, LAE & Fixed Expense Ratio = [(15) + (16)] * (17) + (18)
Row 20: Permissible Loss, LAE & Fixed Expense Ratio
The permissible loss, LAE & fixed expense ratio is based on the following breakdown
of expenses: House RCC (1) Regular Commissions 16.0% 16.0% (2) Guaranteed Supplemental Compensation 1.2% 1.2% (3) Taxes, Licenses & Fees 2.3% 2.3% (4) Underwriting Profit 11.1% 11.1% (5) Total Variable Expenses and Profit Provision 30.6% 30.6% (6) Permissible Loss, LAE & Fixed Expense Ratio 69.4% 69.4%
Notes: (1) & (3) Based on 2013-2015 Pennsylvania data from Page 15 of the
Annual Statement (see Exhibit 9) (2) In 2007, Contingent Commission was replaced with
Guaranteed Supplemental Compensation. The compensation percentage is based on the agents’ prior performance with consideration given to growth and loss. The percentage is applied in the upcoming year, and like regular commissions, it is guaranteed.
(4) Underwriting profit (See Exhibit 10) (5) (1) + (2) + (3) + (4) (6) [100% - (5)]
Row 21: Raw Indicated Rate Level Change = (19) / (20) – 1 Row 22: See Exhibits 2.4-2.6. Row 23: See Exhibits 2.4-2.6. Row 24: Credibility Weighted Loss, LAE & Fixed Expense Ratio = (15)*(17)*(22) + (23)*[1 - (22)] + (16)*(17) + (18) Row 25: Credibility Weighted Indicated Rate Level Change = (24) / (20) -1
Exhibit 2.4CHUBBPennsylvania HomeownersForm Indication = HouseCompanies = AllTerritory = AllEvaluated as of 03/2016
Credibility Calculation
(1) Earned House Years 114,960(2) Credibility Standard 40,000(3) Credibility = square root ((1) / (2)) 100.0%
Exhibit 2.5CHUBBPennsylvania HomeownersForm Indication = RCCCompanies = AllTerritory = AllEvaluated as of 03/2016
Credibility Calculation
(1) Earned House Years 27,330(2) Credibility Standard 20,000(3) Credibility = square root ((1) / (2)) 100.0%
Exhibit 2.6CHUBBPennsylvania HomeownersForm Indication = City HomeCompanies = AllTerritory = AllEvaluated as of 03/2016
Credibility Calculation
(1) Earned House Years 2,218(2) Credibility Standard 20,000(3) Credibility = square root ((1) / (2)) 33.3%
Complement of Credibility Calculation
The complement of credibility for the statewideindication is the trended expected loss and LAE ratioless the Modeled Cat Loss & LAE ratio
(1) Expected Loss & LAE ratio: 59.8%(2) Annual Net Projection Trend: 0.1%(3) Projection Window (years) 2.80(4) Trended Expected Loss & LAE ratio = (1) * [1+(2)]^(3): 60.0%(5) Modeled Catastrophe Loss & ALAE Ratio: 3.7%(6) ULAE 1.061(7) Complement of Credibility = (4) - [(5) * (6)]: 56.0%
Exhibit 3.1
CHUBBPennsylvania HomeownersForm Indication = HouseCompanies = AllTerritory = AllEvaluated as of 03/2016
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
=[(6)+(7)] =(10)/(4) =(11)+(12)* (8) * (9)
Calendar / Onlevel Ex-cat Expected Loss Loss Ratio Ultimate Ex-cat Ult. Ex-cat Adj. Cat Loss/ Ult. Adj. AccidentAccident Written Earned Onlevel Earned Reported Capped Excess Development Trend Adjusted Loss/ALAE ALAE Loss/ALAE Year
Year Premium Premium Factors Premium Loss/ALAE Loss/ALAE Shock Loss Factors Factors Loss/ALAE Ratio Ratio Ratio Weights2011 70,008,391 70,284,778 1.247 87,640,640 56,252,661 32,549,016 11,250,991 0.996 1.023 44,658,514 51.0% 13.0% 63.9% 10%2012 71,773,949 70,937,427 1.220 86,533,410 45,415,740 22,171,703 11,487,212 0.993 1.008 33,716,928 39.0% 13.0% 51.9% 15%2013 75,865,104 73,705,369 1.163 85,683,903 28,621,269 19,509,224 12,018,234 0.996 1.002 31,455,634 36.7% 13.3% 50.0% 20%2014 80,487,770 78,072,453 1.074 83,850,231 70,429,277 32,806,514 12,522,685 1.003 1.000 45,462,599 54.2% 13.8% 68.0% 25%2015 79,916,940 80,125,134 1.030 82,514,941 39,612,301 24,795,541 12,870,372 1.042 1.004 39,396,860 47.7% 14.2% 61.9% 30%
(15) Projected Loss & ALAE Ratio 59.8%
(16) Modeled Catastrophe Loss & ALAE Ratio 1.7%
(17) ULAE Load 1.061
(18) Fixed Expense Ratio 9.6%
(19) Projected Loss, LAE & Fixed Expense Ratio 74.8%
(20) Permissible Loss, LAE & Fixed Expense Ratio 69.4%
(21) Raw Indicated Rate Level Change 7.8%
(22) Credibility 100.0%
(23) Complement of Credibility Loss and LAE ratio N/A
(24) Credibility Weighted Loss & LAE + Modeled Cat Loss & LAE ratio + Fixed Exp =(15)*(17)*(22)+(23)*(1-(22))+(16)*(17)+(18) 74.8%
(25) Credibility Weighted Indicated Rate Level Change 7.8%
Exhibit 3.2
CHUBBPennsylvania HomeownersForm Indication = RCCCompanies = AllTerritory = AllEvaluated as of 03/2016
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
=[(6)+(7)] =(10)/(4) =(11)+(12)* (8) * (9)
Calendar / Onlevel Ex-cat Expected Loss Loss Ratio Ultimate Ex-cat Ult. Ex-cat Adj. Cat Loss/ Ult. Adj. AccidentAccident Written Earned Onlevel Earned Reported Capped Excess Development Trend Adjusted Loss/ALAE ALAE Loss/ALAE Year
Year Premium Premium Factors Premium Loss/ALAE Loss/ALAE Shock Loss Factors Factors Loss/ALAE Ratio Ratio Ratio Weights2011 6,775,184 6,707,348 0.977 6,550,070 3,424,713 2,695,907 275,879 0.994 1.329 3,925,255 59.9% 2.2% 62.1% 10%2012 6,663,166 6,724,855 0.978 6,579,160 2,924,981 2,496,355 279,484 0.991 1.272 3,498,659 53.2% 2.2% 55.4% 15%2013 6,788,859 6,721,154 0.980 6,584,028 1,906,925 1,882,274 291,127 0.986 1.223 2,619,243 39.8% 2.3% 42.1% 20%2014 6,646,971 6,736,619 0.979 6,595,735 5,340,824 3,674,944 302,685 0.980 1.186 4,624,624 70.1% 2.4% 72.5% 25%2015 6,768,602 6,678,077 0.979 6,537,912 3,236,322 2,670,925 311,990 1.039 1.157 3,583,494 54.8% 2.6% 57.4% 30%
(15) Projected Loss & ALAE Ratio 58.3%
(16) Modeled Catastrophe Loss & ALAE Ratio 0.8%
(17) ULAE Load 1.061
(18) Fixed Expense Ratio 9.6%
(19) Projected Loss, LAE & Fixed Expense Ratio 72.4%
(20) Permissible Loss, LAE & Fixed Expense Ratio 69.4%
(21) Raw Indicated Rate Level Change 4.3%
(22) Credibility 100.0%
(23) Complement of Credibility Loss and LAE ratio N/A
(24) Credibility Weighted Loss & LAE + Modeled Cat Loss & LAE ratio + Fixed Exp =(15)*(17)*(22)+(23)*(1-(22))+(16)*(17)+(18) 72.4%
(25) Credibility Weighted Indicated Rate Level Change 4.3%
Exhibit 3.3
CHUBBPennsylvania HomeownersForm Indication = City HomeCompanies = AllTerritory = AllEvaluated as of 03/2016
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
=[(6)+(7)] =(10)/(4) =(11)+(12)* (8) * (9)
Calendar / Onlevel Ex-cat Expected Loss Loss Ratio Ultimate Ex-cat Ult. Ex-cat Adj. Cat Loss/ Ult. Adj. AccidentAccident Written Earned Onlevel Earned Reported Capped Excess Development Trend Adjusted Loss/ALAE ALAE Loss/ALAE Year
Year Premium Premium Factors Premium Loss/ALAE Loss/ALAE Shock Loss Factors Factors Loss/ALAE Ratio Ratio Ratio Weights2011 1,728,986 1,699,130 1.002 1,703,050 512,395 358,948 0 0.995 1.023 365,553 21.5% 2.9% 24.4% 10%2012 1,760,718 1,748,741 1.001 1,750,014 350,525 312,305 0 0.990 1.008 311,881 17.8% 2.9% 20.7% 15%2013 1,803,218 1,763,816 1.002 1,767,291 593,780 593,780 0 0.994 1.002 591,572 33.5% 2.9% 36.4% 20%2014 1,833,411 1,795,463 1.002 1,799,002 3,072,475 2,925,801 0 1.014 1.000 2,968,096 165.0% 3.0% 168.0% 25%2015 1,913,913 1,865,250 1.002 1,868,991 352,045 341,626 0 1.095 1.004 375,634 20.1% 3.0% 23.1% 30%
(15) Projected Loss & ALAE Ratio 61.7%
(16) Modeled Catastrophe Loss & ALAE Ratio 3.7%
(17) ULAE Load 1.061
(18) Fixed Expense Ratio 9.6%
(19) Projected Loss, LAE & Fixed Expense Ratio 79.1%
(20) Permissible Loss, LAE & Fixed Expense Ratio 69.4%
(21) Raw Indicated Rate Level Change 14.0%
(22) Credibility 33.3%
(23) Complement of Credibility Loss and LAE ratio 56.0%
(24) Credibility Weighted Loss & LAE + Modeled Cat Loss & LAE ratio + Fixed Exp =(15)*(17)*(22)+(23)*(1-(22))+(16)*(17)+(18) 72.7%
(25) Credibility Weighted Indicated Rate Level Change 4.9%
Exhibit 3.4
CHUBBPennsylvania HomeownersForm Indication = AllCompanies = AllTerritory = AllEvaluated as of 03/2016
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
=[(6)+(7)] =(10)/(4) =(11)+(12)* (8) * (9)
Calendar / Onlevel Ex-cat Expected Loss Loss Ratio Ultimate Ex-cat Ult. Ex-cat Adj. Cat Loss/ Ult. Adj. AccidentAccident Written Earned Onlevel Earned Reported Capped Excess Development Trend Adjusted Loss/ALAE ALAE Loss/ALAE Year
Year Premium Premium Factors Premium Loss/ALAE Loss/ALAE Shock Loss Factors Factors Loss/ALAE Ratio Ratio Ratio Weights2011 78,512,562 78,691,256 1.219 95,893,761 60,189,769 35,603,871 11,526,869 0.996 1.041 48,853,074 50.9% 12.2% 63.1% 10%2012 80,197,833 79,411,023 1.195 94,862,584 48,691,247 24,980,363 11,766,696 0.993 1.024 37,357,409 39.4% 12.1% 51.5% 15%2013 84,457,181 82,190,339 1.144 94,035,223 31,121,974 21,985,279 12,309,361 0.995 1.015 34,634,636 36.8% 12.4% 49.3% 20%2014 88,968,152 86,604,535 1.065 92,244,968 78,842,576 39,407,259 12,825,370 1.002 1.012 52,922,382 57.4% 12.9% 70.2% 25%2015 88,599,454 88,668,460 1.025 90,921,844 43,200,668 27,808,092 13,182,363 1.042 1.014 43,302,026 47.6% 13.2% 60.8% 30%
(15) Projected Loss & ALAE Ratio 59.7%
(16) Modeled Catastrophe Loss & ALAE Ratio 1.7%
(17) ULAE Load 1.061
(18) Fixed Expense Ratio 9.6%
(19) Projected Loss, LAE & Fixed Expense Ratio 74.7%
(20) Permissible Loss, LAE & Fixed Expense Ratio 69.4%
(21) Raw Indicated Rate Level Change 7.7%
(22) Credibility 100.0%
(23) Complement of Credibility Loss and LAE ratio N/A
(24) Credibility Weighted Loss & LAE + Modeled Cat Loss & LAE ratio + Fixed Exp =(15)*(17)*(22)+(23)*(1-(22))+(16)*(17)+(18) 74.7%
(25) Credibility Weighted Indicated Rate Level Change 7.7%
Mid-Atlantic ZoneHome and Vacation
All CausesNon-cat Reported Losses and ALAE March 31st 2016
Loss Development - Mold Capped
LossYear 15 27 39 51 63 75 87 99 111 123 Ultimate2006 - - - - 188,274,578 188,077,505 187,733,693 187,842,926 187,673,559 187,763,507 187,763,507 2007 - - - 211,894,103 211,205,857 211,498,655 211,281,103 211,243,105 211,434,812 - 211,434,812 2008 - - 241,050,341 239,197,514 237,696,178 233,486,041 234,068,267 233,309,696 - - 233,309,696 2009 - 237,214,506 243,864,046 244,173,609 243,726,204 241,162,397 240,963,373 - - - 240,963,373 2010 202,661,682 210,810,574 213,070,623 212,888,344 212,606,909 212,697,746 - - - - 212,697,746 2011 239,161,357 245,458,041 244,116,486 245,636,351 244,797,615 - - - - - 243,888,707 2012 206,143,365 213,241,408 209,899,859 212,786,014 - - - - - - 211,395,665 2013 204,115,734 213,037,215 216,482,454 - - - - - - - 215,543,962 2014 297,607,132 310,218,492 - - - - - - - - 311,079,741 2015 277,031,762 - - - - - - - - - 288,636,754
2006 0.999 0.998 1.001 0.999 1.0002007 0.997 1.001 0.999 1.000 1.0012008 0.992 0.994 0.982 1.002 0.9972009 1.028 1.001 0.998 0.989 0.9992010 1.040 1.011 0.999 0.999 1.0002011 1.026 0.995 1.006 0.9972012 1.034 0.984 1.0142013 1.044 1.0162014 1.042
5 Point 1.037 1.007 1.003 0.997 0.995 1.000 0.999 1.000 1.0005 Point Ex Hi/Lo 1.039 1.007 1.002 0.997 0.996 1.000 1.000 1.000 1.000
3 Point 1.040 0.998 1.006 0.998 0.991 1.000 0.999 1.000 1.000Average 1.039 1.004 1.004 0.997 0.994 1.000 0.999 1.000 1.000
5 Yr. Wtd. Avg. 1.037 1.007 1.002 0.997 0.994 1.000 0.999 1.000 1.0003 Yr. Wtd. Avg. 1.040 0.998 1.006 0.998 0.990 1.000 0.999 1.000 1.000
Selected 1.039 1.007 1.002 0.997 0.996 1.000 1.000 1.000 1.000Cumulative 1.042 1.003 0.996 0.993 0.996 1.000 1.000 1.000 1.000
Exhibit 4.1
Mid-Atlantic ZoneRenter/Condo/Co-op
All CausesNon-cat Reported Losses and ALAE March 31st 2016
Loss Development - Mold Capped
LossYear 15 27 39 51 63 75 87 99 111 123 Ultimate2006 - - - - 53,801,136 53,669,022 53,504,448 53,412,621 53,453,531 53,454,777 53,454,777 2007 - - - 42,002,141 41,750,215 41,279,841 41,252,829 40,978,008 40,872,820 - 40,872,820 2008 - - 46,860,531 46,848,919 46,711,258 46,035,807 45,868,864 45,872,639 - - 45,872,639 2009 - 53,386,733 54,339,144 54,004,505 53,711,358 53,802,415 53,470,927 - - - 53,470,927 2010 49,702,577 53,270,502 50,522,458 51,022,104 51,034,750 50,791,459 - - - - 50,791,459 2011 48,209,779 53,284,990 52,739,600 52,206,481 52,260,762 - - - - - 51,938,676 2012 50,943,232 53,270,592 52,221,963 51,683,264 - - - - - - 51,225,732 2013 49,128,156 49,112,106 49,779,990 - - - - - - - 49,067,700 2014 49,841,690 52,868,589 - - - - - - - - 51,828,595 2015 57,661,767 - - - - - - - - - 59,885,239
2006 0.998 0.997 0.998 1.001 1.0002007 0.994 0.989 0.999 0.993 0.9972008 1.000 0.997 0.986 0.996 1.0002009 1.018 0.994 0.995 1.002 0.9942010 1.072 0.948 1.010 1.000 0.9952011 1.105 0.990 0.990 1.0012012 1.046 0.980 0.9902013 1.000 1.0142014 1.061
5 Point 1.057 0.990 0.997 0.997 0.994 0.997 0.997 0.999 1.0005 Point Ex Hi/Lo 1.059 0.995 0.994 0.997 0.994 1.000 1.000 1.000 1.000
3 Point 1.035 0.995 0.996 0.999 0.994 0.997 0.997 0.999 1.000Average 1.050 0.993 0.996 0.998 0.994 0.998 0.998 0.999 1.000
5 Yr. Wtd. Avg. 1.056 0.990 0.996 0.997 0.994 0.996 0.997 1.000 1.0003 Yr. Wtd. Avg. 1.036 0.994 0.996 0.999 0.995 0.996 0.997 1.000 1.000
Selected 1.059 0.995 0.994 0.997 0.994 1.000 1.000 1.000 1.000Cumulative 1.039 0.980 0.986 0.991 0.994 1.000 1.000 1.000 1.000
Exhibit 4.2
Mid-Atlantic ZoneCity Homes
All CausesNon-cat Reported Losses and ALAE March 31st 2016
Loss Development - Mold Capped
LossYear 15 27 39 51 63 75 87 99 111 123 Ultimate2006 - - - - 10,400,171 10,530,153 10,513,093 10,475,747 10,328,234 10,328,234 10,328,234 2007 - - - 6,488,448 6,503,118 6,501,838 6,552,953 6,632,132 6,485,746 - 6,485,746 2008 - - 6,943,304 7,187,027 7,009,494 6,866,246 6,814,329 6,814,329 - - 6,814,329 2009 - 14,193,652 14,548,005 14,418,001 14,372,484 14,450,257 14,565,716 - - - 14,565,716 2010 6,816,149 7,091,579 7,169,600 6,855,299 6,956,679 6,818,458 - - - - 6,818,458 2011 6,388,013 7,174,628 7,350,842 7,243,476 7,147,243 - - - - - 7,112,330 2012 7,685,821 7,861,690 8,810,401 9,531,899 - - - - - - 9,440,499 2013 14,969,905 18,797,152 18,161,965 - - - - - - - 18,057,124 2014 10,415,993 11,207,572 - - - - - - - - 11,367,695 2015 17,906,336 - - - - - - - - - 19,612,378
2006 1.012 0.998 0.996 0.986 1.0002007 1.002 1.000 1.008 1.012 0.9782008 1.035 0.975 0.980 0.992 1.0002009 1.025 0.991 0.997 1.005 1.0082010 1.040 1.011 0.956 1.015 0.9802011 1.123 1.025 0.985 0.9872012 1.023 1.121 1.0822013 1.256 0.9662014 1.076
5 Point 1.104 1.029 1.010 0.995 0.995 1.002 1.003 0.982 1.0005 Point Ex Hi/Lo 1.080 1.020 1.004 0.995 0.995 1.000 1.000 1.000 1.000
3 Point 1.118 1.037 1.008 0.999 0.988 1.003 1.003 0.982 1.000Average 1.101 1.029 1.007 0.997 0.993 1.001 1.002 0.988 1.000
5 Yr. Wtd. Avg. 1.127 1.017 1.009 0.995 0.998 1.003 1.002 1.000 1.0003 Yr. Wtd. Avg. 1.145 1.014 1.013 0.999 0.993 1.004 1.002 1.000 1.000
Selected 1.080 1.020 1.004 0.995 0.995 1.000 1.000 1.000 1.000Cumulative 1.095 1.014 0.994 0.990 0.995 1.000 1.000 1.000 1.000
Exhibit 4.3
CHUBBUS Homeowners
Calculation of Size of Risk Trend
State = PA
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Form = HouseAverage Average Trend from Combined
Earned Earned Earned SOR Average Earned Trend to Written Written Written SOR 7/1/2015 TrendCal Year House-Years Ins-Years (000) @ 7/1/XX SOR Factor 7/1/2015 House-Years Ins-Years (000) @ 7/1/XX to 4/17/2018 Factors
2011 23,736 26,422,680 1,113,194 8.2328 1.187 23,445 26,354,838 1,124,106 1.164 1.3812012 23,362 26,965,178 1,154,220 8.4826 1.152 23,320 27,252,478 1,168,608 1.164 1.3412013 23,215 28,119,951 1,211,308 8.8301 1.106 23,041 28,566,133 1,239,776 1.164 1.2882014 22,701 29,161,460 1,284,608 9.2763 1.053 22,353 29,366,626 1,313,777 1.164 1.2262015 21,968 29,997,886 1,365,535 9.7689 1.000 21,781 30,548,338 1,402,515 1.164 1.164
Fitted Annual Change (exponential) in Written SOR Exposure: 5.8%Prospective Annual Change in SOR adj for Construction Cost Adjustment Factor (CCAF) changes: 6.8%
Selected Prospective Annual Change in SOR Exposure: 6.5%Projection Period in Years: 2.80
Proj Ave SOR (annual change applied to latest ave earned SOR): 1,628,852Proj Ave SOR Factor: 11.372
Prospective Annual Change in Premium: 5.6%
Form = RCCAverage Average Trend from Combined
Earned Earned Earned SOR Average Earned Trend to Written Written Written SOR 7/1/2015 TrendCal Year House-Years Ins-Years (000) @ 7/1/XX SOR Factor 7/1/2015 House-Years Ins-Years (000) @ 7/1/XX to 4/17/2018 Factors
2011 5,410 1,814,839 335,452 8.8647 1.117 5,423 1,209,013 222,935 1.028 1.1472012 5,416 1,838,580 339,483 8.9687 1.104 5,470 1,194,441 218,363 1.028 1.1342013 5,520 1,915,189 346,971 9.1618 1.080 5,549 1,231,902 222,020 1.028 1.1102014 5,524 1,991,147 360,481 9.5104 1.041 5,456 1,220,676 223,717 1.028 1.0702015 5,468 2,053,181 375,498 9.8978 1.000 5,541 1,281,133 231,215 1.028 1.028
Fitted Annual Change (exponential) in Written SOR Exposure: 1.0%Prospective Annual Change in SOR adj for CCAF changes: 1.1%
Selected Prospective Annual Change in SOR Exposure: 1.0%Projection Period in Years: 2.80
Proj Ave SOR (annual change applied to latest ave earned SOR): 386,106Proj Ave SOR Factor: 10.172
Prospective Annual Change in Premium: 1.0%
(4) = (3) / (2) * 1,000(5) = SOR factor associated with (4); from SOR curve table for this state(6) = Latest Year (5) / (5)(9) = (8) / (7) * 1,000Exponential fit is applied to written data, which is more recent.(10) = (Prospective Annual Change in Premium adj for the CCAF) ^ Projection Period in Years(11) = (6) * (10)*City Home uses the same trend selections as House
Exhibit 5.1
CHUBBUS Homeowners
Calculation of Premium Trend for Shifting Deductibles
State = PA
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Form = HouseAdjusted Average Adjusted Average Trend from Combined
Earned Earned Base Earned Ded Factor Trend to Written Written Base Written Ded Factor 7/1/2015 TrendCal Year House-Years Premium Earned Prem @ 1/1/XX 7/1/2015 House-Years Premium Written Prem @ 1/1/XX to 4/17/2018 Factors
2011 23,736 70,284,778 88,107,876 0.798 0.954 23,445 70,008,391 87,938,359 0.796 0.972 0.9282012 23,362 70,937,427 89,704,994 0.791 0.962 23,320 71,773,949 90,980,483 0.789 0.972 0.9362013 23,215 73,705,372 94,266,131 0.782 0.973 23,041 75,865,104 97,556,243 0.778 0.972 0.9462014 22,701 78,076,488 101,329,505 0.771 0.988 22,353 80,495,449 104,915,841 0.767 0.972 0.9602015 21,968 80,214,728 105,396,630 0.761 1.000 21,781 80,343,858 105,934,661 0.758 0.972 0.972
Fitted Annual Change (exponential): -1.2%Selected Annual Change: -1.0%
Projection Period in Years: 2.80Proj Ave Ded Factor @ 4/17/2018: 0.740
Form = RCCAdjusted Average Adjusted Average Trend from Combined
Earned Earned Base Earned Ded Factor Trend to Written Written Base Written Ded Factor 7/1/2015 TrendCal Year House-Years Premium Earned Prem @ 1/1/XX 7/1/2015 House-Years Premium Written Prem @ 1/1/XX to 4/17/2018 Factors
2011 5,410 6,707,348 7,894,791 0.850 0.959 5,423 6,775,184 8,002,703 0.847 0.972 0.9322012 5,416 6,724,855 7,943,204 0.847 0.962 5,470 6,663,166 7,851,629 0.849 0.972 0.9362013 5,520 6,721,154 8,006,707 0.839 0.971 5,549 6,788,859 8,140,981 0.834 0.972 0.9442014 5,524 6,736,383 8,155,544 0.826 0.986 5,456 6,646,001 8,090,283 0.821 0.972 0.9592015 5,468 6,684,653 8,204,420 0.815 1.000 5,541 6,810,995 8,407,698 0.810 0.972 0.972
Fitted Annual Change (exponential): -1.2%Selected Annual Change: -1.0%
Projection Period in Years: 2.80Proj Ave Ded Factor @ 4/17/2018: 0.792
(5) = (3) / (4)(6) = Latest Year (5) / (5)(10) = (8) / (9)(11) = (Proj Ave Factor) / (Latest Year Earned Ave Factor)(12) = (6) * (11)*City Home uses the same trend selections as House
Exhibit 5.2
CHUBBUS HomeownersPremium Trend Summary
State = PA
Form = HouseEarned SOR SOR SOR Deductible Deductible Deductible Premium Premium Premium
Cal Year Premium Historical Prospective Combined Historical Prospective Combined Historical Prospective Combined2011 70,284,778 1.187 1.164 1.381 0.954 0.972 0.928 1.132 1.132 1.2822012 70,937,427 1.152 1.164 1.341 0.962 0.972 0.936 1.108 1.132 1.2552013 73,705,372 1.106 1.164 1.288 0.973 0.972 0.946 1.077 1.132 1.2182014 78,076,488 1.053 1.164 1.226 0.988 0.972 0.960 1.040 1.132 1.1772015 80,214,728 1.000 1.164 1.164 1.000 0.972 0.972 1.000 1.132 1.131
Implied Annual Trend: 4.4% 5.6% 5.0% -1.2% -1.0% -1.1% 3.2% 4.5% 3.8%
Form = RCCEarned SOR SOR SOR Deductible Deductible Deductible Premium Premium Premium
Cal Year Premium Historical Prospective Combined Historical Prospective Combined Historical Prospective Combined2011 6,707,348 1.117 1.028 1.147 0.959 0.972 0.932 1.071 0.999 1.0692012 6,724,855 1.104 1.028 1.134 0.962 0.972 0.936 1.062 0.999 1.0612013 6,721,154 1.080 1.028 1.110 0.971 0.972 0.944 1.049 0.999 1.0482014 6,736,383 1.041 1.028 1.070 0.986 0.972 0.959 1.027 0.999 1.0262015 6,684,653 1.000 1.028 1.028 1.000 0.972 0.972 1.000 0.999 0.999
Implied Annual Trend: 2.8% 1.0% 2.2% -1.1% -1.0% -1.1% 1.7% 0.0% 1.1%
Form = House & RCCEarned SOR SOR SOR Deductible Deductible Deductible Premium Premium Premium
Cal Year Premium Historical Prospective Combined Historical Prospective Combined Historical Prospective Combined2011 76,992,126 1.180 1.152 1.361 0.955 0.972 0.928 1.127 1.120 1.2632012 77,662,281 1.147 1.152 1.323 0.962 0.972 0.936 1.104 1.120 1.2382013 80,426,526 1.104 1.153 1.273 0.973 0.972 0.946 1.075 1.121 1.2042014 84,812,872 1.052 1.153 1.214 0.988 0.972 0.960 1.039 1.121 1.1652015 86,899,380 1.000 1.154 1.154 1.000 0.972 0.972 1.000 1.122 1.121
Implied Annual Trend: 4.3% 5.2% 4.7% -1.2% -1.0% -1.1% 3.0% 4.2% 3.6%
*City Home uses the same trend selections as House
Exhibit 5.3
CHUBB
HOMEOWNERS SEVERITY TRENDSPA
HOUSE VACATION Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 12,340 --30-Jun-06 12,325 --30-Sep-06 11,767 --31-Dec-06 11,534 --31-Mar-07 12,143 -1.6%30-Jun-07 11,842 -3.9%30-Sep-07 11,899 1.1%31-Dec-07 12,395 7.5%31-Mar-08 12,180 0.3%30-Jun-08 12,757 7.7%30-Sep-08 13,147 10.5%31-Dec-08 12,420 0.2%31-Mar-09 13,230 8.6%30-Jun-09 14,376 12.7%30-Sep-09 16,452 25.1%31-Dec-09 17,849 43.7%31-Mar-10 17,847 34.9%30-Jun-10 16,803 16.9%30-Sep-10 16,994 3.3%31-Dec-10 16,990 -4.8%31-Mar-11 17,686 -0.9%30-Jun-11 18,025 7.3%30-Sep-11 17,313 1.9%31-Dec-11 17,204 1.3%31-Mar-12 16,392 -7.3%30-Jun-12 16,998 -5.7%30-Sep-12 16,705 -3.5%31-Dec-12 17,385 1.0%31-Mar-13 18,568 13.3%30-Jun-13 18,027 6.1%30-Sep-13 19,239 15.2%31-Dec-13 18,515 6.5%31-Mar-14 19,816 6.7%30-Jun-14 20,637 14.5%30-Sep-14 20,594 7.0%31-Dec-14 22,503 21.5%31-Mar-15 21,503 8.5%30-Jun-15 22,120 7.2%30-Sep-15 25,846 25.5%31-Dec-15 25,706 14.2%31-Mar-16 26,402 22.8%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
8.1% 88.9%6.9% 78.0%9.1% 82.0%
13.4% 93.4%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.4
CHUBB
HOMEOWNERS FREQUENCY TRENDSPA
HOUSE VACATION Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 7.4328 --30-Jun-06 7.2969 --30-Sep-06 7.7295 --31-Dec-06 8.0716 --31-Mar-07 8.1185 9.2%30-Jun-07 8.3179 14.0%30-Sep-07 8.1263 5.1%31-Dec-07 8.1384 0.8%31-Mar-08 8.5721 5.6%30-Jun-08 8.5383 2.6%30-Sep-08 8.1617 0.4%31-Dec-08 7.6229 -6.3%31-Mar-09 7.5446 -12.0%30-Jun-09 7.6781 -10.1%30-Sep-09 8.1476 -0.2%31-Dec-09 8.5992 12.8%31-Mar-10 8.6910 15.2%30-Jun-10 9.3847 22.2%30-Sep-10 9.3438 14.7%31-Dec-10 9.3547 8.8%31-Mar-11 9.3577 7.7%30-Jun-11 9.1742 -2.2%30-Sep-11 9.6494 3.3%31-Dec-11 10.1618 8.6%31-Mar-12 9.7682 4.4%30-Jun-12 8.9153 -2.8%30-Sep-12 8.0877 -16.2%31-Dec-12 7.0755 -30.4%31-Mar-13 6.7097 -31.3%30-Jun-13 6.6605 -25.3%30-Sep-13 6.3870 -21.0%31-Dec-13 6.3021 -10.9%31-Mar-14 7.0546 5.1%30-Jun-14 7.8568 18.0%30-Sep-14 7.8425 22.8%31-Dec-14 7.9117 25.5%31-Mar-15 7.0486 -0.1%30-Jun-15 6.4175 -18.3%30-Sep-15 6.3841 -18.6%31-Dec-15 6.3411 -19.9%31-Mar-16 6.2766 -11.0%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
-2.8% 30.0%-4.8% 43.8%-8.0% 60.7%-2.8% 11.4%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.5
CHUBB
HOMEOWNERS SEVERITY TRENDSMid-Atlantic Zone
HOUSE VACATION Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 15,898 --30-Jun-06 16,362 --30-Sep-06 17,025 --31-Dec-06 17,094 --31-Mar-07 17,509 10.1%30-Jun-07 17,673 8.0%30-Sep-07 17,435 2.4%31-Dec-07 17,698 3.5%31-Mar-08 17,713 1.2%30-Jun-08 17,232 -2.5%30-Sep-08 17,628 1.1%31-Dec-08 17,548 -0.8%31-Mar-09 18,909 6.8%30-Jun-09 20,590 19.5%30-Sep-09 20,681 17.3%31-Dec-09 21,590 23.0%31-Mar-10 20,025 5.9%30-Jun-10 19,482 -5.4%30-Sep-10 20,822 0.7%31-Dec-10 20,955 -2.9%31-Mar-11 21,673 8.2%30-Jun-11 21,158 8.6%30-Sep-11 21,313 2.4%31-Dec-11 21,940 4.7%31-Mar-12 22,684 4.7%30-Jun-12 23,640 11.7%30-Sep-12 24,164 13.4%31-Dec-12 24,308 10.8%31-Mar-13 25,047 10.4%30-Jun-13 25,213 6.7%30-Sep-13 25,561 5.8%31-Dec-13 25,193 3.6%31-Mar-14 26,398 5.4%30-Jun-14 27,820 10.3%30-Sep-14 27,885 9.1%31-Dec-14 29,438 16.8%31-Mar-15 29,707 12.5%30-Jun-15 31,428 13.0%30-Sep-15 35,266 26.5%31-Dec-15 35,941 22.1%31-Mar-16 35,187 18.4%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
8.0% 93.5%8.6% 91.2%
10.9% 94.1%12.7% 91.9%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.6
CHUBB
HOMEOWNERS FREQUENCY TRENDSMid-Atlantic Zone
HOUSE VACATION Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 6.3541 --30-Jun-06 6.2405 --30-Sep-06 6.3387 --31-Dec-06 6.4759 --31-Mar-07 6.4725 1.9%30-Jun-07 6.6968 7.3%30-Sep-07 6.6623 5.1%31-Dec-07 6.9521 7.4%31-Mar-08 7.3122 13.0%30-Jun-08 7.0916 5.9%30-Sep-08 6.8622 3.0%31-Dec-08 6.2358 -10.3%31-Mar-09 6.1566 -15.8%30-Jun-09 6.1983 -12.6%30-Sep-09 6.4801 -5.6%31-Dec-09 6.6242 6.2%31-Mar-10 6.5210 5.9%30-Jun-10 6.8597 10.7%30-Sep-10 6.6734 3.0%31-Dec-10 6.6748 0.8%31-Mar-11 6.8427 4.9%30-Jun-11 6.8891 0.4%30-Sep-11 7.0163 5.1%31-Dec-11 7.3971 10.8%31-Mar-12 6.8389 -0.1%30-Jun-12 6.2073 -9.9%30-Sep-12 5.7537 -18.0%31-Dec-12 5.1366 -30.6%31-Mar-13 5.1543 -24.6%30-Jun-13 5.0964 -17.9%30-Sep-13 5.0459 -12.3%31-Dec-13 4.9221 -4.2%31-Mar-14 5.2103 1.1%30-Jun-14 5.9165 16.1%30-Sep-14 5.9602 18.1%31-Dec-14 6.0071 22.0%31-Mar-15 5.5399 6.3%30-Jun-15 5.2851 -10.7%30-Sep-15 5.1958 -12.8%31-Dec-15 5.1406 -14.4%31-Mar-16 5.0498 -8.8%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
-3.4% 55.3%-4.1% 50.5%-5.7% 48.2%0.1% 0.0%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.7
CHUBB
HOMEOWNERS SEVERITY TRENDSUS TOTAL Excluding TX
HOUSE VACATION Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 16,194 --30-Jun-06 16,511 --30-Sep-06 17,419 --31-Dec-06 17,607 --31-Mar-07 18,349 13.3%30-Jun-07 19,176 16.1%30-Sep-07 19,084 9.6%31-Dec-07 19,459 10.5%31-Mar-08 19,337 5.4%30-Jun-08 18,621 -2.9%30-Sep-08 19,108 0.1%31-Dec-08 19,825 1.9%31-Mar-09 21,142 9.3%30-Jun-09 22,670 21.7%30-Sep-09 23,296 21.9%31-Dec-09 23,952 20.8%31-Mar-10 23,433 10.8%30-Jun-10 23,177 2.2%30-Sep-10 23,782 2.1%31-Dec-10 24,306 1.5%31-Mar-11 25,066 7.0%30-Jun-11 25,335 9.3%30-Sep-11 25,966 9.2%31-Dec-11 26,258 8.0%31-Mar-12 26,300 4.9%30-Jun-12 26,917 6.2%30-Sep-12 27,134 4.5%31-Dec-12 26,916 2.5%31-Mar-13 27,517 4.6%30-Jun-13 28,189 4.7%30-Sep-13 28,572 5.3%31-Dec-13 29,020 7.8%31-Mar-14 31,063 12.9%30-Jun-14 32,356 14.8%30-Sep-14 33,251 16.4%31-Dec-14 34,511 18.9%31-Mar-15 34,810 12.1%30-Jun-15 36,654 13.3%30-Sep-15 38,523 15.9%31-Dec-15 40,290 16.7%31-Mar-16 39,701 14.1%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
8.6% 96.4%8.6% 94.2%
10.3% 93.9%13.4% 97.5%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.8
CHUBB
HOMEOWNERS FREQUENCY TRENDSUS TOTAL Excluding TX
HOUSE VACATION Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 5.9842 --30-Jun-06 5.8999 --30-Sep-06 5.9190 --31-Dec-06 5.8964 --31-Mar-07 5.9206 -1.1%30-Jun-07 6.0180 2.0%30-Sep-07 5.9131 -0.1%31-Dec-07 6.1064 3.6%31-Mar-08 6.3199 6.7%30-Jun-08 6.2571 4.0%30-Sep-08 6.2258 5.3%31-Dec-08 5.8972 -3.4%31-Mar-09 5.9537 -5.8%30-Jun-09 5.9393 -5.1%30-Sep-09 5.9923 -3.8%31-Dec-09 6.0492 2.6%31-Mar-10 5.8398 -1.9%30-Jun-10 5.9812 0.7%30-Sep-10 5.8737 -2.0%31-Dec-10 5.8332 -3.6%31-Mar-11 6.0034 2.8%30-Jun-11 6.2203 4.0%30-Sep-11 6.3044 7.3%31-Dec-11 6.4985 11.4%31-Mar-12 5.9665 -0.6%30-Jun-12 5.3604 -13.8%30-Sep-12 5.0327 -20.2%31-Dec-12 4.6223 -28.9%31-Mar-13 4.6866 -21.5%30-Jun-13 4.6672 -12.9%30-Sep-13 4.6069 -8.5%31-Dec-13 4.5596 -1.4%31-Mar-14 4.7036 0.4%30-Jun-14 5.1101 9.5%30-Sep-14 5.1632 12.1%31-Dec-14 5.2287 14.7%31-Mar-15 4.9519 5.3%30-Jun-15 4.8718 -4.7%30-Sep-15 4.8502 -6.1%31-Dec-15 4.8172 -7.9%31-Mar-16 4.7838 -3.4%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
-3.3% 63.3%-4.1% 60.0%-4.8% 45.1%1.2% 9.0%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.9
CHUBB
HOMEOWNERS SEVERITY TRENDSPA
C/C RENTER Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 9,692 --30-Jun-06 8,412 --30-Sep-06 8,778 --31-Dec-06 10,211 --31-Mar-07 9,197 -5.1%30-Jun-07 8,849 5.2%30-Sep-07 8,658 -1.4%31-Dec-07 8,792 -13.9%31-Mar-08 10,788 17.3%30-Jun-08 11,104 25.5%30-Sep-08 12,537 44.8%31-Dec-08 11,826 34.5%31-Mar-09 9,621 -10.8%30-Jun-09 9,629 -13.3%30-Sep-09 13,957 11.3%31-Dec-09 13,260 12.1%31-Mar-10 14,915 55.0%30-Jun-10 15,672 62.8%30-Sep-10 10,394 -25.5%31-Dec-10 10,881 -17.9%31-Mar-11 8,623 -42.2%30-Jun-11 9,383 -40.1%30-Sep-11 10,980 5.6%31-Dec-11 10,730 -1.4%31-Mar-12 11,664 35.3%30-Jun-12 10,802 15.1%30-Sep-12 10,705 -2.5%31-Dec-12 10,407 -3.0%31-Mar-13 9,490 -18.6%30-Jun-13 8,933 -17.3%30-Sep-13 8,264 -22.8%31-Dec-13 9,199 -11.6%31-Mar-14 10,764 13.4%30-Jun-14 12,968 45.2%30-Sep-14 13,282 60.7%31-Dec-14 14,415 56.7%31-Mar-15 17,168 59.5%30-Jun-15 18,722 44.4%30-Sep-15 19,136 44.1%31-Dec-15 19,291 33.8%31-Mar-16 18,433 7.4%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
5.0% 27.9%5.8% 21.5%
15.6% 63.5%28.0% 79.9%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.10
CHUBB
HOMEOWNERS FREQUENCY TRENDSPA
C/C RENTER Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 5.3975 --30-Jun-06 5.8761 --30-Sep-06 5.6403 --31-Dec-06 5.8563 --31-Mar-07 5.8572 8.5%30-Jun-07 5.5046 -6.3%30-Sep-07 5.0402 -10.6%31-Dec-07 3.9669 -32.3%31-Mar-08 3.7285 -36.3%30-Jun-08 3.8613 -29.9%30-Sep-08 4.0184 -20.3%31-Dec-08 4.8252 21.6%31-Mar-09 5.2054 39.6%30-Jun-09 5.1933 34.5%30-Sep-09 5.6292 40.1%31-Dec-09 6.0056 24.5%31-Mar-10 5.9321 14.0%30-Jun-10 5.7114 10.0%30-Sep-10 5.0898 -9.6%31-Dec-10 4.7365 -21.1%31-Mar-11 4.4297 -25.3%30-Jun-11 4.6395 -18.8%30-Sep-11 5.1201 0.6%31-Dec-11 5.7670 21.8%31-Mar-12 5.9335 33.9%30-Jun-12 5.9338 27.9%30-Sep-12 5.7087 11.5%31-Dec-12 4.9115 -14.8%31-Mar-13 4.8739 -17.9%30-Jun-13 4.6717 -21.3%30-Sep-13 4.4452 -22.1%31-Dec-13 4.4748 -8.9%31-Mar-14 4.4079 -9.6%30-Jun-14 4.5755 -2.1%30-Sep-14 4.5328 2.0%31-Dec-14 4.5442 1.5%31-Mar-15 4.3242 -1.9%30-Jun-15 4.2485 -7.1%30-Sep-15 4.2001 -7.3%31-Dec-15 4.0601 -10.7%31-Mar-16 4.0637 -6.0%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
-1.4% 7.9%-4.3% 55.2%-5.3% 48.8%-6.5% 75.3%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.11
CHUBB
HOMEOWNERS SEVERITY TRENDSMid-Atlantic Zone
C/C RENTER Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 15,014 --30-Jun-06 14,868 --30-Sep-06 16,430 --31-Dec-06 16,794 --31-Mar-07 16,542 10.2%30-Jun-07 16,770 12.8%30-Sep-07 15,960 -2.9%31-Dec-07 16,241 -3.3%31-Mar-08 17,745 7.3%30-Jun-08 17,583 4.8%30-Sep-08 17,570 10.1%31-Dec-08 17,155 5.6%31-Mar-09 16,839 -5.1%30-Jun-09 17,288 -1.7%30-Sep-09 18,601 5.9%31-Dec-09 18,915 10.3%31-Mar-10 19,256 14.4%30-Jun-10 19,034 10.1%30-Sep-10 18,562 -0.2%31-Dec-10 18,842 -0.4%31-Mar-11 19,761 2.6%30-Jun-11 20,365 7.0%30-Sep-11 21,044 13.4%31-Dec-11 21,345 13.3%31-Mar-12 20,778 5.1%30-Jun-12 21,902 7.5%30-Sep-12 22,576 7.3%31-Dec-12 22,697 6.3%31-Mar-13 24,703 18.9%30-Jun-13 24,619 12.4%30-Sep-13 24,894 10.3%31-Dec-13 25,271 11.3%31-Mar-14 25,402 2.8%30-Jun-14 26,648 8.2%30-Sep-14 27,740 11.4%31-Dec-14 26,907 6.5%31-Mar-15 27,199 7.1%30-Jun-15 27,712 4.0%30-Sep-15 29,096 4.9%31-Dec-15 33,260 23.6%31-Mar-16 35,496 30.5%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
7.9% 94.2%9.2% 95.2%
10.2% 93.0%10.9% 85.9%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.12
CHUBB
HOMEOWNERS FREQUENCY TRENDSMid-Atlantic Zone
C/C RENTER Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 5.3572 --30-Jun-06 5.3183 --30-Sep-06 5.4386 --31-Dec-06 5.4742 --31-Mar-07 5.3815 0.5%30-Jun-07 5.3396 0.4%30-Sep-07 5.0130 -7.8%31-Dec-07 4.1134 -24.9%31-Mar-08 3.8051 -29.3%30-Jun-08 3.7962 -28.9%30-Sep-08 3.9192 -21.8%31-Dec-08 4.6629 13.4%31-Mar-09 5.2680 38.4%30-Jun-09 5.3094 39.9%30-Sep-09 5.4054 37.9%31-Dec-09 5.4277 16.4%31-Mar-10 5.2589 -0.2%30-Jun-10 5.2647 -0.8%30-Sep-10 5.1867 -4.0%31-Dec-10 5.2364 -3.5%31-Mar-11 5.2519 -0.1%30-Jun-11 5.1838 -1.5%30-Sep-11 5.3238 2.6%31-Dec-11 5.5019 5.1%31-Mar-12 5.4061 2.9%30-Jun-12 5.4696 5.5%30-Sep-12 5.2751 -0.9%31-Dec-12 4.9420 -10.2%31-Mar-13 5.0498 -6.6%30-Jun-13 4.9372 -9.7%30-Sep-13 4.9317 -6.5%31-Dec-13 4.9302 -0.2%31-Mar-14 4.9237 -2.5%30-Jun-14 5.0189 1.7%30-Sep-14 4.9101 -0.4%31-Dec-14 4.8910 -0.8%31-Mar-15 4.6738 -5.1%30-Jun-15 4.6047 -8.3%30-Sep-15 4.6026 -6.3%31-Dec-15 4.5873 -6.2%31-Mar-16 4.5936 -1.7%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
0.2% 0.2%-2.3% 74.1%-3.4% 82.0%-3.3% 80.1%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.13
CHUBB
HOMEOWNERS SEVERITY TRENDSUS TOTAL Excluding TX
C/C RENTER Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 13,289 --30-Jun-06 13,138 --30-Sep-06 14,429 --31-Dec-06 14,816 --31-Mar-07 15,122 13.8%30-Jun-07 15,667 19.3%30-Sep-07 15,087 4.6%31-Dec-07 15,342 3.5%31-Mar-08 16,582 9.7%30-Jun-08 16,426 4.8%30-Sep-08 16,349 8.4%31-Dec-08 16,641 8.5%31-Mar-09 16,510 -0.4%30-Jun-09 16,892 2.8%30-Sep-09 17,925 9.6%31-Dec-09 17,459 4.9%31-Mar-10 17,950 8.7%30-Jun-10 18,039 6.8%30-Sep-10 17,816 -0.6%31-Dec-10 18,606 6.6%31-Mar-11 18,881 5.2%30-Jun-11 19,378 7.4%30-Sep-11 19,742 10.8%31-Dec-11 19,772 6.3%31-Mar-12 19,365 2.6%30-Jun-12 20,222 4.4%30-Sep-12 21,143 7.1%31-Dec-12 21,382 8.1%31-Mar-13 22,973 18.6%30-Jun-13 22,980 13.6%30-Sep-13 23,151 9.5%31-Dec-13 23,622 10.5%31-Mar-14 24,412 6.3%30-Jun-14 25,700 11.8%30-Sep-14 26,205 13.2%31-Dec-14 26,139 10.7%31-Mar-15 26,342 7.9%30-Jun-15 27,088 5.4%30-Sep-15 28,400 8.4%31-Dec-15 31,091 18.9%31-Mar-16 32,248 22.4%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
8.0% 96.0%9.1% 96.4%
10.6% 96.5%11.4% 94.8%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.14
CHUBB
HOMEOWNERS FREQUENCY TRENDSUS TOTAL Excluding TX
C/C RENTER Cause of Loss = ALL
Ex Cat, With Mold Contracts
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 4.9777 --30-Jun-06 5.0157 --30-Sep-06 5.0833 --31-Dec-06 5.1005 --31-Mar-07 4.8854 -1.9%30-Jun-07 4.6696 -6.9%30-Sep-07 4.3697 -14.0%31-Dec-07 3.5977 -29.5%31-Mar-08 3.2925 -32.6%30-Jun-08 3.3213 -28.9%30-Sep-08 3.4029 -22.1%31-Dec-08 4.0651 13.0%31-Mar-09 4.5855 39.3%30-Jun-09 4.6031 38.6%30-Sep-09 4.7198 38.7%31-Dec-09 4.7069 15.8%31-Mar-10 4.5796 -0.1%30-Jun-10 4.5442 -1.3%30-Sep-10 4.4703 -5.3%31-Dec-10 4.5228 -3.9%31-Mar-11 4.4929 -1.9%30-Jun-11 4.4950 -1.1%30-Sep-11 4.5844 2.6%31-Dec-11 4.6767 3.4%31-Mar-12 4.6025 2.4%30-Jun-12 4.5809 1.9%30-Sep-12 4.4094 -3.8%31-Dec-12 4.1686 -10.9%31-Mar-13 4.2241 -8.2%30-Jun-13 4.1105 -10.3%30-Sep-13 4.0775 -7.5%31-Dec-13 4.0931 -1.8%31-Mar-14 4.1331 -2.2%30-Jun-14 4.2576 3.6%30-Sep-14 4.2243 3.6%31-Dec-14 4.2017 2.7%31-Mar-15 3.9743 -3.8%30-Jun-15 3.9233 -7.9%30-Sep-15 3.9144 -7.3%31-Dec-15 3.8876 -7.5%31-Mar-16 3.9720 -0.1%
Average Annual Change Based On Exponential Curve of Best Fit% Change R Squared
-0.3% 0.9%-2.6% 81.6%-3.3% 78.6%-2.4% 57.5%
Latest 37 Quarters Latest 29 Quarters Latest 21 Quarters Latest 15 Quarters
Exhibit 5.15
Frequency Trend Severity TrendHistorical Prospective Historical Prospective
House & Vacation home -4.0% -4.0% 8.0% 9.0%R/C/C -2.5% -2.5% 8.0% 8.0%
Loss Trend SelectionsCHUBB
Exhibit 5.16
Exhibit 5.17CHUBBPennsylvania HomeownersForm Indication = HouseCompanies = AllTerritory = AllEvaluated as of 03/2016
Calculation of Loss Ratio Trend Factors
(1) (2) (3) (4) (5) Calendar / Loss
Accident Frequency Severity Premium RatioYear Trend Trend Trend Trend2011 0.758 1.732 1.282 1.0232012 0.789 1.603 1.255 1.0082013 0.822 1.485 1.218 1.0022014 0.856 1.375 1.177 1.0002015 0.892 1.273 1.131 1.004
(2) Based on Frequency Selections in Exhibit 5.16 and a projection period of 2.8 yrs(3) Based on Severity Selections in Exhibit 5.16 and a projection period of 2.8 yrs(4) Exhibit 5.1, col 11 * Exhibit 5.2, col 12(5) = (2) * (3) / (4)
Net Projection Trend(6) Loss Trend 4.6%(7) Premium Trend 4.5%(8) Annual Net Projection Trend = (1+(6)) / (1+ (7)) -1 0.1%
Exhibit 5.18CHUBBPennsylvania HomeownersForm Indication = RCCCompanies = AllTerritory = AllEvaluated as of 03/2016
Calculation of Loss Ratio Trend Factors
(1) (2) (3) (4) (5) Calendar / Loss
Accident Frequency Severity Premium RatioYear Trend Trend Trend Trend2011 0.842 1.688 1.069 1.3292012 0.863 1.563 1.061 1.2722013 0.886 1.447 1.048 1.2232014 0.908 1.340 1.026 1.1862015 0.932 1.240 0.999 1.157
(2) Based on Frequency Selections in Exhibit 5.16 and a projection period of 2.8 yrs(3) Based on Severity Selections in Exhibit 5.16 and a projection period of 2.8 yrs(4) Exhibit 5.1, col 11 * Exhibit 5.2, col 12(5) = (2) * (3) / (4)
Net Projection Trend(6) Loss Trend 5.3%(7) Premium Trend 0.0%(8) Annual Net Projection Trend = (1+(6)) / (1+ (7)) -1 5.3%
Exhibit 6.1CHUBB
PA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Historical Data: House & Vacation Homes
(A) (B) (C) (D) (E) (F) (G) (H)Calendar/ EarnedAccident Insurance Non-Cat Catastrophe
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr 20-Yr(EIY) (C) / (A)
1986 - 5,744,133 -1987 - 5,452,789 -1988 - 7,635,473 10,6151989 - 12,345,933 1,188,281 1990 - 11,452,592 130,906 1991 7,325,722 14,923,314 129,745 1.8%1992 7,791,935 13,193,907 2,418,328 31.0%1993 8,300,601 13,781,389 1,953,186 23.5%1994 8,685,332 15,964,306 13,318,816 153.3%1995 9,160,967 13,879,650 532,516 5.8% 44.5%1996 9,902,801 24,877,685 10,342,648 104.4% 65.2%1997 10,962,969 16,627,926 460,117 4.2% 56.6%1998 12,277,944 15,111,265 6,498,141 52.9% 61.1%1999 13,548,245 19,273,331 1,707,137 12.6% 35.0%2000 14,945,948 27,930,904 1,580,028 10.6% 33.4% 37.8%2001 16,822,360 33,664,167 280,529 1.7% 15.4% 34.8%2002 18,707,855 29,994,673 1,889,910 10.1% 15.7% 31.3%2003 20,494,675 27,767,787 6,946,966 33.9% 14.7% 32.1%2004 22,070,856 31,764,483 1,827,004 8.3% 13.5% 21.5%2005 23,342,801 25,130,435 1,475,636 6.3% 12.2% 20.2% 25.1%2006 24,834,938 29,761,132 3,776,574 15.2% 14.5% 14.9% 24.8%2007 26,184,076 31,437,640 5,304,935 20.3% 16.5% 16.2% 24.1%2008 26,890,588 38,922,329 1,242,680 4.6% 11.0% 12.5% 22.1%2009 26,925,378 43,798,623 3,028,004 11.2% 11.6% 12.4% 16.9%2010 26,540,169 42,190,309 28,958,129 109.1% 32.2% 23.5% 25.6% 27.9%2011 26,422,680 36,043,882 4,155,080 15.7% 32.1% 24.2% 22.2% 27.5%2012 26,965,178 28,456,402 1,519,693 5.6% 29.1% 23.2% 21.5% 25.9%2013 28,119,951 27,554,042 1,128,193 4.0% 28.7% 20.3% 18.9% 24.4%2014 29,161,460 48,020,380 22,409,035 76.8% 42.4% 27.5% 23.9% 25.4%2015 29,997,886 30,817,891 8,913,664 29.7% 27.1% 29.6% 24.9% 26.1%
All Years Weighted Average: 27.7%
Earned Insurance Year Cat Factor
Exhibit 6.2CHUBB
PA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Trended Data: House & Vacation Homes
(A) (B) (C) (D) (E) (F) (G) (H)Calendar/ Trended Earned Trended TrendedAccident Insurance Non-Cat Catastrophe
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr 20-Yr(EIY) (C) / (A)
1986 - 96,322,170 -1987 - 83,678,545 -1988 - 107,232,153 138,430 1989 - 158,674,322 14,216,814 1990 - 134,703,903 1,436,866 1991 34,917,861 160,633,205 1,306,534 3.7%1992 35,037,785 129,968,205 22,341,836 63.8%1993 35,212,349 124,236,826 16,554,679 47.0%1994 34,758,899 131,704,634 103,565,778 298.0%1995 34,587,171 104,790,806 3,798,891 11.0% 84.6%1996 35,271,663 171,889,080 67,690,761 191.9% 122.4%1997 36,837,502 105,140,505 2,762,736 7.5% 110.0%1998 38,920,801 87,443,283 35,795,942 92.0% 118.4%1999 40,516,630 102,064,818 8,627,531 21.3% 63.8%2000 42,166,531 135,362,365 7,325,823 17.4% 63.1% 73.3%2001 44,773,954 149,305,040 1,193,282 2.7% 27.4% 71.3%2002 46,973,906 121,743,108 7,375,302 15.7% 28.3% 65.3%2003 48,547,608 103,141,911 24,871,807 51.2% 22.2% 65.2%2004 49,321,937 107,976,526 6,001,021 12.2% 20.2% 39.6%2005 49,211,663 78,177,400 4,446,706 9.0% 18.4% 38.4% 51.7%2006 49,393,783 84,727,485 10,440,725 21.1% 21.8% 24.4% 51.9%2007 49,129,302 81,906,518 13,455,079 27.4% 24.1% 26.0% 49.4%2008 47,598,994 92,802,783 2,891,605 6.1% 15.2% 18.5% 46.3%2009 44,962,807 95,568,835 6,464,123 14.4% 15.7% 17.9% 30.9%2010 41,810,892 84,248,504 56,714,902 135.6% 38.6% 28.4% 38.5% 48.1%2011 39,269,624 65,868,035 7,465,855 19.0% 39.0% 30.1% 29.3% 48.5%2012 37,807,443 47,590,119 2,505,126 6.6% 36.0% 29.6% 29.2% 46.0%2013 37,194,841 42,171,182 1,706,203 4.6% 37.2% 25.1% 24.1% 44.2%2014 36,389,120 67,258,891 31,091,656 85.4% 51.7% 31.7% 27.7% 35.6%2015 35,314,013 39,502,145 11,346,200 32.1% 29.1% 34.4% 28.6% 36.4%
All Years Weighted Average: 44.6%
Selected Cat Factor to EIYs: 37.0%
Earned Insurance Year Cat Factor
Exhibit 6.3CHUBB
PA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Historical Data: Renters/Condos/Co-ops
(A) (B) (C) (D) (E) (F) (G) (H)Calendar/ EarnedAccident Insurance Non-Cat Catastrophe
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr 20-Yr(EIY) (C) / (A)
1986 - 552,252 -1987 - 412,844 -1988 - 697,184 -1989 - 805,795 1121990 - 969,188 -1991 - 1,496,191 1,2021992 - 1,158,439 68,6531993 - 1,060,345 22,5331994 - 2,355,345 377,481 1995 - 987,209 6,2071996 626,904 1,436,172 90,771 14.5%1997 693,393 2,099,422 27,393 4.0%1998 759,523 1,151,088 34,164 4.5%1999 800,224 1,269,846 40,484 5.1%2000 878,989 1,514,245 13,202 1.5% 5.5%2001 975,496 2,839,111 26,576 2.7% 3.5%2002 1,083,765 2,194,410 23,777 2.2% 3.1%2003 1,200,137 2,430,097 153,811 12.8% 5.2%2004 1,306,195 2,004,852 185,123 14.2% 7.4%2005 1,431,823 2,661,358 106,824 7.5% 8.3% 7.2%2006 1,537,276 3,023,903 47,525 3.1% 7.9% 6.2%2007 1,649,522 1,953,199 79,105 4.8% 8.0% 6.1%2008 1,745,132 2,672,155 8,666 0.5% 5.6% 5.4%2009 1,751,628 4,256,750 36,626 2.1% 3.4% 5.0%2010 1,760,613 2,055,638 215,447 12.2% 4.6% 6.1% 6.0%2011 1,814,831 2,837,879 10,719 0.6% 4.0% 5.7% 5.2%2012 1,838,599 2,551,718 30,719 1.7% 3.4% 5.5% 4.9%2013 1,915,204 1,882,271 24,651 1.3% 3.5% 4.4% 4.6%2014 1,991,189 5,076,207 441,949 22.2% 7.8% 5.7% 6.1%2015 2,053,180 2,785,821 525,499 25.6% 10.8% 7.9% 8.0% 7.6%
All Years Weighted Average: 7.6%
Earned Insurance Year Cat Factor
Exhibit 6.4CHUBB
PA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Trended Data: Renters/Condos/Co-ops
(A) (B) (C) (D) (E) (F) (G) (H)Calendar/ Trended Earned Trended TrendedAccident Insurance Non-Cat Catastrophe
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr 20-Yr(EIY) (C) / (A)
1986 - 9,260,599 -1987 - 6,335,507 -1988 - 9,791,213 -1989 - 10,356,364 8991990 - 11,399,464 -1991 - 16,104,865 8,3491992 - 11,411,346 443,606 1993 - 9,558,826 135,441 1994 - 19,431,465 2,110,652 1995 - 7,453,389 32,2851996 2,232,896 9,923,041 439,189 19.7%1997 2,329,924 13,274,914 123,292 5.3%1998 2,407,671 6,660,919 143,040 5.9%1999 2,393,107 6,724,660 157,675 6.6%2000 2,479,865 7,338,530 47,831 1.9% 7.7%2001 2,596,355 12,591,833 89,568 3.4% 4.6%2002 2,721,246 8,906,725 74,544 2.7% 4.1%2003 2,842,875 9,026,461 448,573 15.8% 6.3%2004 2,918,966 6,815,063 502,224 17.2% 8.6%2005 3,018,592 8,279,126 269,586 8.9% 9.8% 8.8%2006 3,057,463 8,608,802 111,569 3.6% 9.7% 7.4%2007 3,095,006 5,088,796 172,749 5.6% 10.1% 7.3%2008 3,089,056 6,371,238 17,604 0.6% 7.1% 6.7%2009 2,925,051 9,288,252 69,212 2.4% 4.2% 6.3%2010 2,773,637 4,104,839 378,727 13.7% 5.0% 7.4% 7.4%2011 2,697,218 5,186,054 17,528 0.6% 4.5% 7.1% 6.3%2012 2,577,870 4,267,460 46,728 1.8% 3.8% 7.0% 6.1%2013 2,533,280 2,880,797 34,882 1.4% 4.1% 5.7% 5.8%2014 2,484,704 7,109,899 581,734 23.4% 8.1% 6.0% 6.8%2015 2,417,038 3,570,845 643,451 26.6% 10.4% 7.5% 8.3% 8.2%
All Years Weighted Average: 8.2%
Selected Cat Factor to EIYs: 7.9%
Earned Insurance Year Cat Factor
Exhibit 6.5CHUBB
PA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Historical Data: City Homes
(A) (B) (C) (D) (E) (F) (G) (H)Calendar/ EarnedAccident Insurance Non-Cat Catastrophe
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr 20-Yr(EIY) (C) / (A)
1986 - - -1987 - - -1988 - - -1989 - - -1990 - - -1991 - - -1992 - - -1993 - - -1994 - 8,497 -1995 - 77,120 -1996 112,637 56,144 68,473 60.8%1997 127,807 103,787 -1998 134,126 54,095 -1999 148,583 126,517 -2000 170,068 342,294 3,179 1.9% 10.3%2001 191,974 404,723 999 0.5% 0.5%2002 241,406 358,302 - 0.5%2003 295,586 168,242 35,588 12.0% 3.8%2004 343,844 143,691 110,272 32.1% 12.1%2005 408,127 489,652 - 9.9% 10.1%2006 492,539 695,928 - 8.2% 5.9%2007 558,006 801,516 885 0.2% 7.0% 5.1%2008 610,257 255,514 - 4.6% 4.4%2009 617,766 1,619,840 - 0.0% 3.8%2010 630,321 1,474,139 51,453 8.2% 1.8% 4.5% 5.3%2011 650,913 358,946 4,896 0.8% 1.9% 4.2% 3.7%2012 676,704 312,301 - 1.8% 3.8% 3.4%2013 708,278 593,779 - 1.7% 2.9% 3.1%2014 760,028 2,942,801 146,675 19.3% 5.9% 3.3% 4.8%2015 808,043 341,625 10,420 1.3% 4.5% 3.3% 4.5% 5.0%
All Years Weighted Average: 5.0%
Earned Insurance Year Cat Factor
Exhibit 6.6CHUBB
PA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Trended Data: City Homes
(A) (B) (C) (D) (E) (F) (G) (H)Calendar/ Trended Earned Trended TrendedAccident Insurance Non-Cat Catastrophe
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr 20-Yr(EIY) (C) / (A)
1986 - - -1987 - - -1988 - - -1989 - - -1990 - - -1991 - - -1992 - - -1993 - - -1994 - 70,100 -1995 - 582,253 -1996 401,188 387,920 448,143 111.7%1997 429,453 656,258 -1998 425,177 313,028 -1999 444,343 669,990 -2000 479,806 1,658,870 14,739 3.1% 21.2%2001 510,953 1,795,000 4,249 0.8% 0.8%2002 606,152 1,454,285 - 0.8%2003 700,182 624,926 127,414 18.2% 5.3%2004 768,392 488,447 362,202 47.1% 16.6%2005 860,419 1,523,241 - 14.3% 17.0%2006 979,602 1,981,250 - 12.5% 8.2%2007 1,046,989 2,088,242 2,245 0.2% 11.3% 7.5%2008 1,080,216 609,224 - 7.7% 6.8%2009 1,031,611 3,534,500 - 0.0% 6.3%2010 992,996 2,943,662 100,771 10.1% 2.0% 7.0% 9.9%2011 967,393 655,952 8,797 0.9% 2.2% 6.7% 5.5%2012 948,795 522,288 - 2.2% 6.4% 5.2%2013 936,854 908,773 - 2.2% 4.9% 5.0%2014 948,401 4,121,782 203,506 21.5% 6.5% 3.2% 6.4%2015 951,242 437,892 13,264 1.4% 4.7% 3.3% 6.2% 8.3%
All Years Weighted Average: 8.3%
Selected Cat Factor to EIYs: 6.6%
Earned Insurance Year Cat Factor
Exhibit 6.7CHUBBPennsylvania HomeownersForm Indication = HouseCompanies = AllTerritory = AllEvaluated as of 03/2016Catastrophe Loss and ALAE ratios
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)(1)*(2)*(3) (5)*(6) (7)*(8) (9)/(4) (10)+(11)
Calendar/ Trended Trended non-Modeled Expected non-ModeledModeled Cat Total CatAccident Earned On-level Premium On-level Earned Earned Catastrophe non-Modeled Loss&ALAE Loss&ALAE Loss&ALAEYear Premium Factors Trend Premium Ins Years EIY Trend Ins Years Factor to EIY Catastrophe $'s Ratio Ratio Ratio
2011 70,284,778 1.247 1.282 112,355,301 26,422,680 1.492 39,425,509 37.0% 14,587,438 13.0% 1.7% 14.7%2012 70,937,427 1.220 1.255 108,599,430 26,965,178 1.411 38,045,067 37.0% 14,076,675 13.0% 1.7% 14.6%2013 73,705,369 1.163 1.218 104,362,994 28,119,950 1.334 37,514,936 37.0% 13,880,526 13.3% 1.7% 15.0%2014 78,072,453 1.074 1.177 98,691,722 29,160,119 1.261 36,785,239 37.0% 13,610,539 13.8% 1.7% 15.5%2015 80,125,134 1.030 1.131 93,324,398 29,973,961 1.193 35,753,869 37.0% 13,228,931 14.2% 1.7% 15.9%Total 373,125,162 517,333,845 140,641,888 187,524,621 37.0% 69,384,110 13.4% 1.7% 15.1%
Exhibit 6.8CHUBBPennsylvania HomeownersForm Indication = RCCCompanies = AllTerritory = AllEvaluated as of 03/2016Catastrophe Loss and ALAE ratios
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)(1)*(2)*(3) (5)*(6) (7)*(8) (9)/(4) (10)+(11)
Calendar/ Trended Trended non-Modeled Expected non-ModeledModeled Cat Total CatAccident Earned On-level Premium On-level Earned Earned Catastrophe non-Modeled Loss&ALAE Loss&ALAE Loss&ALAEYear Premium Factors Trend Premium Ins Years EIY Trend Ins Years Factor to EIY Catastrophe $'s Ratio Ratio Ratio
2011 6,707,348 0.977 1.069 7,002,025 1,814,886 1.069 1,940,119 7.9% 153,269 2.2% 0.8% 3.0%2012 6,724,855 0.978 1.061 6,980,489 1,838,603 1.059 1,946,468 7.9% 153,771 2.2% 0.8% 3.1%2013 6,721,154 0.980 1.048 6,900,061 1,915,200 1.048 2,007,954 7.9% 158,628 2.3% 0.8% 3.1%2014 6,736,619 0.979 1.026 6,767,224 1,991,232 1.038 2,067,481 7.9% 163,331 2.4% 0.8% 3.3%2015 6,678,077 0.979 0.999 6,531,374 2,052,448 1.028 2,110,435 7.9% 166,724 2.6% 0.8% 3.4%Total 33,568,052 34,181,174 9,612,368 10,072,456 7.9% 795,724 2.3% 0.8% 3.2%
Exhibit 6.9CHUBBPennsylvania HomeownersForm Indication = City HomeCompanies = AllTerritory = AllEvaluated as of 03/2016Catastrophe Loss and ALAE ratios
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)(1)*(2)*(3) (5)*(6) (7)*(8) (9)/(4) (10)+(11)
Calendar/ Trended Trended non-Modeled Expected non-ModeledModeled Cat Total CatAccident Earned On-level Premium On-level Earned Earned Catastrophe non-Modeled Loss&ALAE Loss&ALAE Loss&ALAEYear Premium Factors Trend Premium Ins Years EIY Trend Ins Years Factor to EIY Catastrophe $'s Ratio Ratio Ratio
2011 1,699,130 1.002 1.282 2,183,311 650,913 1.492 971,233 6.6% 64,101 2.9% 3.7% 6.7%2012 1,748,741 1.001 1.255 2,196,267 676,704 1.411 954,759 6.6% 63,014 2.9% 3.7% 6.6%2013 1,763,816 1.002 1.218 2,152,561 708,278 1.334 944,916 6.6% 62,364 2.9% 3.7% 6.6%2014 1,795,463 1.002 1.177 2,117,425 760,028 1.261 958,769 6.6% 63,279 3.0% 3.7% 6.7%2015 1,865,250 1.002 1.131 2,113,829 808,131 1.193 963,964 6.6% 63,622 3.0% 3.7% 6.8%Total 8,872,400 10,763,393 3,604,054 4,793,641 6.6% 316,380 2.9% 3.7% 6.7%
Exhibit 6.10
(1)Modeled
Loss
(2)Adjusted
Hurr. Losses
(3)Inforce Prem at 12/31/15
(4)Onleveled
Inforce Prem.
(5)Hurricane Loss & ALAE Ratio
House 1,251,373 1,385,583 80,411,352 82,743,281 1.7%R/C/C 50,905 56,365 6,791,546 6,642,132 0.8%City Home 64,181 71,064 1,900,186 1,900,186 3.7%Total 1,366,459 1,513,012 89,103,084 91,285,599 1.7%
*RMS RiskLink v15 Hurricane Model AAL using December 2015 data
(2) = (1) *ALAE load of 1.03 * Other Coverage Manual load of 1.075where the Other Coverage Manual load accounts for coverages not included in the RMS model
(4) = (3) * onlevel premium factor (1.029 for House, .978 for R/C/C, and 1.000 for City Home)
(5) = (2) / (4)
CHUBBPennsylvania HomeownersModeled Hurricane Losses
Exhibit 7.1CHUBB
Homeowners InsuranceCountrywide Unallocated Loss Adjustment Expense Exhibit
(1) (2) (3) (4)[(3)+(2)]/(2)
Incurred UnallocatedUnallocated Loss
Gross Incurred Losses Loss AdjustmentCalendar Including Allocated Adjustment Expenses Year Loss Adjustment Expenses Expenses Ratio *
2015 1,195,533 75,296 1.063
2014 1,125,042 72,583 1.065
2013 1,027,343 57,986 1.056
Average 1.061
Items (2) and (3) above are expressed in (000's) of dollars.
* - To be applied to incurred losses including allocated loss adjustment expense.
Exhibit 8.1CHUBB
Homeowners InsuranceCountrywide Underwriting Expense Exhibit
(1) (3) * (4)
Expense Components Ratio = (2) ÷ (3)
Other Direct OtherCalendar General Acquisition Earned General Acquisition
Year Expense Expense Premium Expense Expense
2015 42,682 156,167 2,066,918 2.1% 7.6%
2014 38,586 136,421 2,012,261 1.9% 6.8%
2013 43,235 154,028 1,922,007 2.2% 8.0%
Average 2.1% 7.5%
* - Items (2) and (3) above are from the respective Consolidated/Combined FederalInsurance Company Insurance Expense Exhibits for the calendar years shown,and are expressed in (000's) of dollars.
(2) *
PENNSYLVANIA ANNUAL STATEMENT PAGE 15 Exhibit 9.1Homeowners Commission, Guaranteed Supplemental Compensation and Taxes
DIRECT GUARANTEEDCAL WRITTEN STANDARD SUPPLEMENTAL STATE
Company YEAR PREMIUM COMMISSIONS % COMPENSATION % SUBTOTAL % TAXES %Federal 2013 6,347,600 1,003,114 15.8% 62,246 1.0% 1,065,360 16.8% 160,407 2.5%
2014 6,121,731 966,823 15.8% 73,891 1.2% 1,040,714 17.0% 127,315 2.1%2015 5,597,017 882,984 15.8% 70,459 1.3% 953,443 17.0% 117,193 2.1%
Vigilant 2013 4,712,824 745,692 15.8% 44,516 0.9% 790,208 16.8% 149,678 3.2%2014 4,487,364 704,299 15.7% 55,164 1.2% 759,463 16.9% 107,973 2.4%2015 4,114,762 646,066 15.7% 46,189 1.1% 692,255 16.8% 101,436 2.5%
Pacific Indemnity 2013 9,047,113 1,453,877 16.1% 90,039 1.0% 1,543,916 17.1% 245,961 2.7%2014 9,514,974 1,518,948 16.0% 113,810 1.2% 1,632,758 17.2% 211,045 2.2%2015 9,250,566 1,479,472 16.0% 112,080 1.2% 1,591,552 17.2% 216,087 2.3%
Great Northern 2013 47,848,580 7,454,860 15.6% 498,599 1.0% 7,953,459 16.6% 1,299,258 2.7%2014 48,022,498 7,456,984 15.5% 673,231 1.4% 8,130,215 16.9% 1,002,727 2.1%2015 45,543,018 7,065,059 15.5% 538,753 1.2% 7,603,812 16.7% 967,440 2.1%
Chubb Indemnity 2013 7,329,574 1,185,766 16.2% 69,325 0.9% 1,255,091 17.1% 175,548 2.4%2014 7,248,915 1,173,919 16.2% 95,994 1.3% 1,269,913 17.5% 160,131 2.2%2015 7,033,803 1,136,355 16.2% 97,434 1.4% 1,233,789 17.5% 156,022 2.2%
Chubb National 2013 9,359,076 1,695,229 18.1% 112,224 1.2% 1,807,453 19.3% 205,485 2.2%2014 14,023,357 2,484,699 17.7% 221,548 1.6% 2,706,247 19.3% 302,784 2.2%2015 17,181,269 2,941,019 17.1% 247,521 1.4% 3,188,540 18.6% 369,825 2.2%
Total 2013 84,644,767 13,538,538 16.0% 876,949 1.0% 14,415,487 17.0% 2,236,337 2.6%2014 89,418,839 14,305,672 16.0% 1,233,638 1.4% 15,539,310 17.4% 1,911,975 2.1%2015 88,720,435 14,150,955 16.0% 1,112,436 1.3% 15,263,391 17.2% 1,928,003 2.2%
2013-2015 262,784,041 41,995,165 16.0% 3,223,023 1.2% 45,218,188 17.2% 6,076,315 2.3%
SELECTED PROVISIONS
STANDARD COMMISSIONS 16.0%GUARANTEED SUPPLEMENTAL COMPENSATION * 1.2%TAXES, LICENSES AND FEES 2.3%SUBTOTAL 19.5%MANDATED, RESIDUAL MARKET LOAD, OR ASSESSMENT 0.0%U/W PROFIT PROVISION (based on ) 11.1%TOTAL U/W PROFIT AND VARIABLE EXPENSE 30.6%
Exhibit 10.1
The following calculation was used to calculate an appropriate underwriting profit provision given items(1) through (5) below:
ROE = (UW * PS) * (1 - CTX) + (II * PS) * (1 – ETX) + YS * (1 – ETX)
Item Description Value1 . ROE After-Tax Expected Statutory Return on Equity 12.1%2 . II Investment Income Yield on Policyholder Funds as a % of Premium (See Exhibit 11.1) 1.50%3 . PS Premium to Surplus Ratio (Based on three year average from Annual Statement) 0.704 . YS Investment Income Yield on Surplus (See Exhibit 11.1) 3.10%5 . CTX Corporate Tax Rate 35.0%6 . ETX Effective Tax Rate (See Exhibit 11.1) 5.62%
7 . UW Underwriting Profit as a Percentage of Premium Calculated 17.9%Selected 11.1%
Privileged InformationProprietary and Confidential
CHUBBPennsylvania Homeowners
Underwriting Profit Provision Calculation
Exhibit 11.1
FEDERAL COMBINED INSURANCE COMPANIESSTATE OF PENNSYLVANIA
ANNUAL STATEMENT LINE 4 -- HOMEOWNERS CALCULATION OF INVESTMENT INCOME OFFSET
A. Direct Earned Premiums for Calendar Year 2015 (see Sheet 2) 89,067,294
B. Unearned Premium Reserve Subject to Investment (see Sheet 2)
1. Mean Unearned Premium Reserve for Calendar Year 2015
a. Unearned Premium Reserve as of 12/31/15 46,792,486b. Unearned Premium Reserve as of 12/31/14 47,012,528c. Mean Unearned Premium Reserve (a + b) ÷ 2 46,902,507
2. Deduction for Prepaid Expenses
a. Prepaid Expense Provisions:1. Commissions & Brokerage (excluding GSC) 16.0%2. Other Acquisition Expenses 7.5%3. 50% of General Expenses 1.0%4. Taxes, Licenses, & Fees 2.3%5. Ceded Reinsurance Premium 0.0%6. Total 26.8%
b. Deduction for Prepaid Expenses (B.1.c x B.2.a.6) 12,566,659
3. Deduction for Federal Taxes Payable (B.1.c x 7.0%) 3,283,175(see Sheet 2)
4. Deduction for Delayed Remission of Premiums
a. Average Agents' Balances Percentage (see Sheet 2) 19.80%b. Delayed Remission of Premiums (A x B.4.a) 17,635,324
5. Net Unearned Premium Reserve Subject to Investment 13,417,349(B.1.c - B.2.b - B.3 - B.4.b)
C. Loss Reserves Subject to Investment (see Sheet 2)
1. Expected Incurred Loss & LAE Ratio 59.85%
2. Average Reserve to Incurred Loss & LAE Ratio 0.573
3. Expected Mean Loss and Loss Adjustment Expense Reserve 30,543,264(A x C.1 x C.2)
D. Net Subject to Investment (B.5 + C.3) 43,960,613
E. Average Rate of Return on Invested Assets (see Sheet 2) 3.10%
F. Expected Investment Earnings (D x E) 1,362,779
G. Ratio of Investment Earnings to Earned Premium, 1.50%equals Investment Income Offset (F ÷ A)
H. Effective Tax Rate on Investment Income 5.62%
I. After-tax Ratio of Investment Earnings to Earned Premium 1.42%(G x (1 - H))
Exhibit 11.2
FEDERAL COMBINED INSURANCE COMPANIESSTATE OF PENNSYLVANIA
ANNUAL STATEMENT LINE 4 -- HOMEOWNERS CALCULATION OF INVESTMENT INCOME OFFSET
Item A Earned premiums are from the Federal Combined Annual Statement forLine 4 -- Homeowners : (Page 15, Line 4).
Item B.1 Unearned premium reserves are from the Federal Combined Annual Statement forLine 4 -- Homeowners : (Page 15, Line 4).
Item B.2 Production costs and a significant portion of other underwriting expenses (excluding lossadjustment expenses) are incurred as soon as the policy is written and before the premium is earned. As a result, these monies are not available for investment.
Item B.3 The Tax Reform Act of 1986 taxes 20% of the unearned premium reserve. At a corporatetax rate of 35%, this tax equals 7.0% (0.20 x 0.35 = 0.070) of the unearned premiumreserve. As a result, these monies are not available for investment.
Item B.4 The average agents' balances percentage is based on the following informationfor all lines of business from the Federal Combined Annual Statement:
Dollars in Thousands 20151. Net Earned Premium (Page 4, Line 1) 10,348,0472. Current Agents' Balances (Page 2, Lines 13.1 + 13.2) 2,048,3873. Prior Agents' Balances (Page 2, Lines 13.1 + 13.2) 2,050,5724. Mean Agents' Balances [(2) + (3)] ÷ 2 2,049,4795. Average Agents' Balances Percentage (4) ÷ (1) 19.80%
Item C.1 The expected incurred loss & loss adjustment expense ratio is 1 - Total Expenses (excl ceded reins prem)where Total Expenses (excl ceded reins prem) = B.2.a.6 + GSC + 50% Gen Exp + Profit & Cont - ceded reins premfor GSC = 1.2%, Profit & Contigencies = 11.1%.
Item C.2 The average reserve to incurred ratio is based on the following information based on the FederalCombined Annual Statement for Line 4 -- Homeowners : (Page 15, Line 4).
Dollars in Thousands 2013 2014 20151. Incurred Losses & LAE (000's) 828,638 1,207,589 1,272,3832. Current Unpaid Losses and LAE (000's) 523,522 581,597 613,8053. Prior Unpaid Losses and LAE (000's) 843,891 523,522 581,5974. Mean Loss & LAE Reserves [(2) + (3)] ÷ 2 683,707 552,560 597,7015. Ratio (4) ÷ (1) 0.825 0.458 0.4706. Average Reserve to Incurred Ratio 0.584
7. Estimated Reserve Discount 5.57%8. Federal Taxes Payable (% of Reserve) 0.019
[ (7) x 35% ]9. (6) x [(1.000 - (8)] 0.5730
Item E The average rate of return on invested assets is based on the following information for all linesof business from the Federal Combined Annual Statement.
Dollars in Thousands 2013 2014 20151. Net Investment Income Earned (Page 4, Line 9) 1,186,079 999,121 1,071,4442. Cash and Invested Assets (Page 2, Line 10) 34,771,379 35,423,377 35,351,0623. Rate of Return Percentage (1) ÷ (2) 3.40% 2.80% 3.00%4. Selected Rate of Return on Invested Assets 3.10%
Exhibit 12.1
Excess Shock Loss Methodology Expected Annual Loss Amount Calculation
(Cap set at 10% of Written Coverage Amount) Capped Loss: For fire losses only, the ground-up value of any loss and ALAE amount is capped at 10% of the written coverage amount (house and contents) and then the appropriate deductible is subtracted (this calculation includes the contemplation of a franchise deductible: the deductible is waived for non-catastrophe, non-wind losses exceeding $50,000). For all other causes of loss, there is no shock-adjustment. Expected Annual Loss: The expected annual loss for each policy is:
Capped Loss +
US
StateUS
EIY
EIYCapLosses %10 State Offset Factor
This is calculated as, Written Coverage Amount (Cov) = Coverage A + Coverage C
k
iii CovEHYEIY
where k = number of houses
Severity (Sev) =
US
US
US
US
EIY
EHY
CapofClaims
CapLosses
%10#
%10
Frequency per 1,000 Cov (Freq) = US
US
US
US
EHY
CapofClaims
EHY
CapofClaims %10#000,1
000,1
%10#
Freq x Sev =
US
US
EIY
CapLosses %10000,1
Expected Annual Loss = Capped Loss + [ (Freq/1,000 x Sev) x StateEIY ] x State Offset Factor
=Capped Loss +
State
US
US EIYEIY
CapLosses
000,1
%10000,1 State Offset Factor
= Capped Loss +
US
StateUS
EIY
EIYCapLosses %10State Offset Factor
State Offset Factor = Credibility Weighted 20 yr Raw Shock Loss Frequency/ US 20 yr Raw Shock Loss Frequency.
Exhibit 12.2 Selected Excess Fire Shock Loss Frequency and Severity Indices
Year Of
Construction
Fire Protection
Class
XS Frequency
Per 1,000 EHYs XS
Severity < 1920 A 0.5431 0.4869
B 0.7227 0.4381 C 0.8505 0.5845 D 1.7587 0.7548
1920 A 0.3892 0.5086 B 0.5178 0.4576 C 0.6094 0.6105 D 1.2602 0.7884
Total 0.4822 0.5119 Fire Protection Definitions: A Fire station within 5 miles, fire hydrant within 1000 feet, fire alarm B Fire station within 5 miles and fire hydrant within 1000 feet C Fire station within 5 miles and fire alarm OR fire hydrant within 1000 feet and fire alarm D Fire station within 5 miles OR fire hydrant within 1000 feet OR fire alarm OR no fire protection
Exhibit 12.3
Buhlmann BuhlmannActual Straub Straub Cred
Region Relativity Credibility RelativityPennsylvania 1.030 0.965 1.029Mid-Atlantic 0.924 0.989 0.925US Total 1.000 1.000
Selected 1.029
* Frequency, is Shock Count/ EHYs
Fire: State Offset FactorsBased on 20 year Credibility Weighted Frequency
CHUBBHomeowners Insurance
Exhibit 13.1
(1) (2) (3) (4) (5) (6) (7) (8)
Proposed Territory
Total Locations
% Distribution
Current Base Rate
Proposed Base Rate
Base Rate Change
Premium At Current Rates
Proposed Premium
Overall Rate Effect
001 887 4.1% 1,174 1,231 4.9% 3,503,676 3,679,664 5.0%005 136 0.6% 845 886 4.9% 488,629 513,524 5.1%006 172 0.8% 630 661 4.9% 569,515 598,989 5.2%007 167 0.8% 601 630 4.9% 485,984 512,780 5.5%008 124 0.6% 845 886 4.9% 440,207 464,248 5.5%009 48 0.2% 888 931 4.9% 162,187 171,479 5.7%010 5 0.0% 717 752 4.9% 16,669 17,539 5.2%012 249 1.2% 630 661 4.9% 689,800 724,491 5.0%014 651 3.0% 1,174 1,231 4.9% 3,494,672 3,672,260 5.1%021 96 0.4% 794 832 4.9% 260,110 273,538 5.2%022 117 0.5% 630 661 4.9% 372,312 391,291 5.1%023 191 0.9% 601 630 4.9% 565,577 595,085 5.2%024 13 0.1% 794 832 4.9% 46,527 48,626 4.5%025 27 0.1% 601 630 4.9% 76,842 80,969 5.4%027 121 0.6% 601 630 4.9% 363,380 382,173 5.2%031 25 0.1% 669 702 4.9% 69,059 72,537 5.0%035 26 0.1% 818 858 4.9% 103,221 109,109 5.7%037 3 0.0% 888 931 4.9% 16,289 17,333 6.4%051 11 0.1% 818 858 4.9% 34,669 36,303 4.7%052 168 0.8% 818 858 4.9% 465,373 489,889 5.3%053 88 0.4% 717 752 4.9% 249,363 260,000 4.3%054 97 0.5% 845 886 4.9% 246,668 260,007 5.4%055 310 1.4% 792 831 4.9% 785,018 823,489 4.9%056 12 0.1% 888 931 4.9% 45,081 47,150 4.6%057 22 0.1% 794 832 4.9% 78,048 82,416 5.6%058 263 1.2% 669 702 4.9% 901,660 949,054 5.3%059 308 1.4% 669 702 4.9% 980,212 1,027,802 4.9%061 28 0.1% 717 752 4.9% 77,428 81,682 5.5%071 22 0.1% 717 752 4.9% 102,871 107,802 4.8%073 830 3.9% 830 870 4.9% 3,598,105 3,779,195 5.0%074 55 0.3% 792 831 4.9% 153,767 161,663 5.1%075 390 1.8% 818 858 4.9% 1,216,162 1,275,620 4.9%076 10 0.0% 738 774 4.9% 18,430 19,297 4.7%077 574 2.7% 818 858 4.9% 2,020,027 2,122,032 5.0%081 294 1.4% 818 858 4.9% 871,728 914,612 4.9%082 66 0.3% 818 858 4.9% 233,922 245,817 5.1%083 1,553 7.2% 830 870 4.9% 5,592,051 5,871,756 5.0%086 72 0.3% 1,068 1,120 4.9% 343,997 360,535 4.8%087 87 0.4% 888 931 4.9% 228,826 239,936 4.9%088 16 0.1% 818 858 4.9% 68,608 71,468 4.2%089 37 0.2% 845 886 4.9% 169,930 178,630 5.1%090 174 0.8% 630 661 4.9% 555,323 586,040 5.5%091 29 0.1% 818 858 4.9% 91,084 95,651 5.0%092 748 3.5% 839 880 4.9% 2,099,685 2,203,524 4.9%093 69 0.3% 845 886 4.9% 250,867 262,699 4.7%094 24 0.1% 818 858 4.9% 67,217 70,618 5.1%095 940 4.4% 1,013 1,062 4.9% 3,406,526 3,573,605 4.9%096 15 0.1% 818 858 4.9% 55,302 58,222 5.3%099 33 0.2% 717 752 4.9% 103,694 108,766 4.9%100 156 0.7% 601 630 4.9% 450,885 476,639 5.7%101 386 1.8% 1,068 1,120 4.9% 1,705,945 1,788,110 4.8%102 14 0.1% 717 752 4.9% 32,573 34,240 5.1%104 6 0.0% 818 858 4.9% 13,582 14,251 4.9%106 1 0.0% 818 858 4.9% 1,403 1,538 9.6%107 103 0.5% 818 858 4.9% 295,716 311,046 5.2%108 188 0.9% 818 858 4.9% 440,794 462,835 5.0%109 35 0.2% 818 858 4.9% 88,046 92,211 4.7%110 242 1.1% 818 858 4.9% 764,715 804,009 5.1%111 38 0.2% 818 858 4.9% 106,167 111,512 5.0%113 43 0.2% 818 858 4.9% 114,602 120,474 5.1%114 767 3.6% 818 858 4.9% 2,858,012 3,007,218 5.2%115 414 1.9% 818 858 4.9% 1,131,864 1,185,197 4.7%116 1 0.0% 818 858 4.9% 3,388 3,474 2.5%117 9 0.0% 818 858 4.9% 21,068 22,085 4.8%119 21 0.1% 818 858 4.9% 58,409 61,435 5.2%120 1,080 5.0% 818 858 4.9% 4,037,016 4,233,788 4.9%121 378 1.8% 818 858 4.9% 1,062,371 1,116,316 5.1%122 2 0.0% 818 858 4.9% 2,341 2,455 4.9%123 223 1.0% 818 858 4.9% 683,330 717,234 5.0%124 1 0.0% 818 858 4.9% 2,103 2,179 3.6%125 24 0.1% 818 858 4.9% 67,664 71,042 5.0%128 1 0.0% 818 858 4.9% 1,506 1,582 5.0%129 1 0.0% 818 858 4.9% 2,341 2,454 4.8%131 137 0.6% 818 858 4.9% 370,671 389,006 4.9%132 943 4.4% 1,013 1,062 4.9% 4,877,114 5,125,040 5.1%133 419 1.9% 853 895 4.9% 1,819,640 1,910,734 5.0%134 1,027 4.8% 884 927 4.9% 4,764,902 5,010,933 5.2%135 2,248 10.5% 1,013 1,062 4.9% 10,366,209 10,898,906 5.1%136 678 3.2% 1,013 1,062 4.9% 3,192,445 3,344,749 4.8%137 1,088 5.1% 884 927 4.9% 3,853,568 4,044,901 5.0%138 136 0.6% 853 895 4.9% 666,628 699,613 4.9%139 124 0.6% 738 774 4.9% 345,492 362,239 4.8%140 16 0.1% 1,013 1,062 4.9% 83,579 88,742 6.2%141 154 0.7% 1,013 1,062 4.9% 837,107 879,741 5.1%
Total 21,507 100.0% 81,959,496 86,088,843 5.0%
(2) = (1) / (1 Tot)(5) = (4) / (3) -1(6) Premium based on inforce policies at current rates(7) Premium based on re-rating of the inforce policies with proposed changes(8) = (7) / (6) -1
PennsylvaniaRate Level Effects By Territory
House & Vacation Forms
Total In-Force Book
Exhibit 14.1
Rate Effect RangeTotal
Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
LT -5% 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0-5% to 0% 18 0.1% -86 1 0.1% -265 2 0.2% -67 1 0.0% -148 5 0.0% -57 7 0.2% -93 2 0.1% -330% to 5% 15,945 74.1% 173 1,215 81.4% 144 773 77.8% 170 2,149 77.2% 149 7,523 74.6% 192 3,193 69.1% 150 1,092 71.6% 1905% to 10% 5,418 25.2% 237 238 16.0% 203 217 21.8% 219 625 22.4% 196 2,531 25.1% 251 1,387 30.0% 231 420 27.5% 26510% to 20% 124 0.6% 727 37 2.5% 866 2 0.2% 1,137 9 0.3% 534 30 0.3% 620 34 0.7% 798 12 0.8% 44120% to 30% 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0
GT 30% 2 0.0% 204 1 0.1% 198 0 0.0% 0 0 0.0% 0 0 0.0% 0 1 0.0% 209 0 0.0% 0Total 21,507 100.0% 192 1,492 100.0% 171 994 100.0% 182 2,784 100.0% 160 10,089 100.0% 208 4,622 100.0% 179 1,526 100.0% 212
Max % Change (1) 58.9% (3) 39.4% (5) 14.2% (7) 16.7% (9) 18.9% (11) 58.9% (13) 14.7%Max $ Impact (2) 4,368 (4) 3,385 (6) 1,521 (8) 1,514 (10) 3,334 (12) 4,368 (14) 2,444
*Rate effects based on residence premium(1) $1.65M house, $2,500 deductible, $209 increase (8) $3.01M house, $5,000 deductible, 12.3% increase(2) $6.24M house, $5,000 deductible, 15.3% increase (9) $0.61M house, $5,000 deductible, $441 increase(3) $0.58M house, $500 deductible, $198 increase (10) $22.79M house, $10,000 deductible, 8.0% increase(4) $3.5M house, $10,000 deductible, 11.1% increase (11) $1.65M house, $2,500 deductible, $209 increase(5) $0.79M house, $1,000 deductible, $753 increase (12) $6.24M house, $5,000 deductible, 15.3% increase(6) $4.79M house, $5,000 deductible, 11.4% increase (13) $1.74M house, $5,000 deductible, $886 increase(7) $0.42M house, $2,500 deductible, $159 increase (14) $24.5M house, $5,000 deductible, 6.3% increase
PennsylvaniaRate Level Effects Histogram
Chubb IndemnityAll Companies Federal Vigilant Pacific Indemnity Great Northern Chubb National
Exhibit 15.1
Size of Risk $500 - $50,000 $50,000 - $100,000 $100,000 - $250,000 $250,000 - $500,000 $500,000 - $750,000 over $750,000$0 - $999,999 834,848,763 147,789,146 147,181,960 88,112,615 45,943,476 73,085,519
$1,000,000 - $2,499,999 943,011,116 223,855,342 238,167,654 156,762,488 85,873,976 283,757,341 $2,500,000 - $4,999,999 318,228,418 101,276,850 115,490,827 74,885,347 42,457,279 226,377,226 $5,000,000 - $7,499,999 74,882,903 27,455,478 33,639,919 24,364,496 12,567,963 79,241,947
$7,500,000 + 65,584,980 25,681,895 32,374,588 23,877,645 14,880,069 112,056,608
Size of Risk 50,000$ 100,000$ 250,000$ 500,000$ 750,000$ $0 - $999,999 62.4% 73.5% 84.5% 91.1% 94.5%
$1,000,000 - $2,499,999 48.8% 60.4% 72.7% 80.9% 85.3%$2,500,000 - $4,999,999 36.2% 47.7% 60.9% 69.4% 74.2%$5,000,000 - $7,499,999 29.7% 40.6% 53.9% 63.6% 68.6%
$7,500,000 + 23.9% 33.3% 45.0% 53.7% 59.2%
Size of Risk 50,000$ 100,000$ 250,000$ 500,000$ 750,000$ $0 - $999,999 62.5% 75.0% 85.0% 90.0% 95.0%
$1,000,000 - $2,499,999 47.5% 60.0% 72.5% 80.0% 85.0%$2,500,000 - $4,999,999 35.0% 47.5% 62.5% 70.0% 75.0%$5,000,000 - $7,499,999 30.0% 40.0% 55.0% 62.5% 65.0%
$7,500,000 + 25.0% 32.5% 47.5% 55.0% 57.5%
Size of Risk 50,000$ 100,000$ 250,000$ 500,000$ 750,000$ $0 - $999,999 0.461 0.353 0.267 0.224 0.181
$1,000,000 - $2,499,999 0.590 0.482 0.375 0.310 0.267 $2,500,000 - $4,999,999 0.698 0.590 0.461 0.396 0.353 $5,000,000 - $7,499,999 0.741 0.655 0.526 0.461 0.439
$7,500,000 + 0.784 0.720 0.590 0.526 0.504
Size of Risk 100,000$ 250,000$ 500,000$ 750,000$ $0 - $999,999 0.77 0.58 0.49 0.39
$1,000,000 - $2,499,999 0.82 0.63 0.53 0.45 $2,500,000 - $4,999,999 0.85 0.66 0.57 0.51 $5,000,000 - $7,499,999 0.88 0.71 0.62 0.59
$7,500,000 + 0.92 0.75 0.67 0.64
(1) Loss Elimination Ratio = { Losses between $500 and New Deductible } / { Total Losses above $500 }(2) Loss elimination ratios selected in order to smooth out results where data lacks credibility.(3) Large Deductible Factors over Standard Deductible
= { Permissible Loss Ratio * (1 - Loss Elimination Ratio) + Fixed Expenses } / { 1 - Variable Expenses - UW Profit }(4) Large Deductible Factors Relative to $50,000 = Large Deductible Factor (3) / Implied Deductible Factor at $50,000
CHUBBLarge Deductible Factors by Size of Risk
based on 5 years of Countrywide Loss and ALAE as of 06/30/2016
Ground up Loss by Layer
Loss Elimination Ratios over $500 Standard Deductible (1)
Selected Loss Elimination Ratios over $500 Standard Deductible (2)
Large Deductible Factors over $500 Standard Deductible (3)
Large Deductible Factors Relative to $50,000 Deductible (4)
Exhibit 15.2
Size of RiskCurrent $50,000
Deductible FactorsImplied $100,000
Deductible Factors Implied $250,000
Deductible Factors Implied $500,000 Deductible Factors
Implied $750,000 Deductible Factors
$15,000 0.400 0.308 0.232 0.196 0.156$50,000 0.400 0.308 0.232 0.196 0.156
$500,000 0.400 0.308 0.232 0.196 0.156$1,000,000 0.400 0.328 0.252 0.212 0.180$2,500,000 0.425 0.361 0.281 0.242 0.217$5,000,000 0.450 0.396 0.320 0.279 0.266$7,500,000 0.564 0.519 0.423 0.378 0.361
Size of Risk $100,000 $250,000 $500,000 $750,000$15,000 0.300 0.225 0.175 0.150$50,000 0.300 0.225 0.175 0.150
$500,000 0.300 0.225 0.175 0.150$1,000,000 0.330 0.250 0.200 0.175$2,500,000 0.375 0.300 0.250 0.215$5,000,000 0.400 0.350 0.300 0.260$7,500,000 0.500 0.450 0.400 0.350
(5) Implied Large Deductible Factors = Large Deductible Factors Relative to $50,000 (4)* Current Deductible Factor at $50,000
Selected Large Deductible Factors (House and R/C/C)
$2,500,000 - $4,999,999$5,000,000 - $7,499,999
$7,500,000 +
CHUBBLarge Deductible Factors by Size of Risk
based on 5 years of Countrywide Loss and ALAE as of 06/30/2016
Size of Risk Range$0 - $999,999
Implied Large Deductible Factors (5)
$0 - $999,999$0 - $999,999
$1,000,000 - $2,499,999
Exhibits 2.4-2.6
House & Vacation HomeEarned House Years 114,960 Credibility Standard 40,000 Credibility [√(EHY/Cred Std)] 100.0%
R/C/CEarned House Years 27,330 Credibility Standard 20,000 Credibility [√(EHY/Cred Std)] 100.0%
City HomeEarned House Years 2,218 Credibility Standard 20,000 Credibility [√(EHY/Cred Std)] 33.3%
The Complement of Credibility for the statewide indication is the trended expected lossand LAE ratio less the Modeled Cat Loss & LAE ratio
House & Vacation Home, R/C/C Fully Credible
City Home(1) Expected Loss & LAE ratio: 59.8%(2) Annual Net Projection Trend: 0.1%(3) Projection Window (years) 2.80(4) Trended Expected Loss & LAE ratio = (1) * [1+(2)]^(3): 60.0%(5) Modeled Catastrophe Loss & ALAE Ratio: 3.7%(6) ULAE 1.061
CHUBBPennsylvania HomeownersCalculation of Credibility
Calculation of Complement of Credibility
CHUBB Exhibit 3.1Pennsylvania HomeownersForm Indication = HouseCompanies = AllTerritory = AllEvaluated as of 03/2016
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
=[(6)+(7)] =(10)/(4) =(11)+(12)* (8) * (9)
Fiscal / Onlevel Ex-cat Expected Loss Loss Ratio Ultimate Ex-cat Ult. Ex-cat Adj. Cat Loss/ Ult. Adj. AccidentAccident Written Earned Onlevel Earned Reported Capped Excess Development Trend Adjusted Loss/ALAE ALAE Loss/ALAE Year
Year Premium Premium Factors Premium Loss/ALAE Loss/ALAE Shock Loss Factors Factors Loss/ALAE Ratio Ratio Ratio Weights2011 70,008,391 70,284,778 1.247 87,640,640 56,252,661 32,549,016 11,250,991 0.996 1.023 44,658,514 51.0% 13.0% 63.9% 10.0%2012 71,773,949 70,937,427 1.220 86,533,410 45,415,740 22,171,703 11,487,212 0.993 1.008 33,716,928 39.0% 13.0% 51.9% 15.0%2013 75,865,104 73,705,369 1.163 85,683,903 28,621,269 19,509,224 12,018,234 0.996 1.002 31,455,634 36.7% 13.3% 50.0% 20.0%2014 80,487,770 78,072,453 1.074 83,850,231 70,429,277 32,806,514 12,522,685 1.003 1.000 45,462,599 54.2% 13.8% 68.0% 25.0%2015 79,916,940 80,125,134 1.030 82,514,941 39,612,301 24,795,541 12,870,372 1.042 1.004 39,396,860 47.7% 14.2% 61.9% 30.0%
(15) Projected Loss & ALAE Ratio 59.8%
(16) Modeled Catastrophe Loss & ALAE Ratio 1.7%
(17) ULAE Load 1.061
(18) Fixed Expense Ratio 9.6%
(19) Projected Loss, LAE & Fixed Expense Ratio 74.8%
(20) Permissible Loss, LAE & Fixed Expense Ratio 69.4%
(21) Raw Indicated Rate Level Change 7.8%
(22) Credibility 100.0%
(23) Complement of Credibility Loss and LAE ratio N/A
(24) Credibility Weighted Loss & LAE + Modeled Cat Loss & LAE ratio + Fixed E=(15)*(17)*(22)+(23)*(1-(22))+(16)*(17)+(18) 74.8%
(25) Credibility Weighted Indicated Rate Level Change 7.8%
CHUBB Exhibit 3.2Pennsylvania HomeownersForm Indication = RCCCompanies = AllTerritory = AllEvaluated as of 03/2016
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
=[(6)+(7)] =(10)/(4) =(11)+(12)* (8) * (9)
Fiscal / Onlevel Ex-cat Expected Loss Loss Ratio Ultimate Ex-cat Ult. Ex-cat Adj. Cat Loss/ Ult. Adj. AccidentAccident Written Earned Onlevel Earned Reported Capped Excess Development Trend Adjusted Loss/ALAE ALAE Loss/ALAE Year
Year Premium Premium Factors Premium Loss/ALAE Loss/ALAE Shock Loss Factors Factors Loss/ALAE Ratio Ratio Ratio Weights2011 6,775,184 6,707,348 0.977 6,550,070 3,424,713 2,695,907 275,879 0.994 1.329 3,925,255 59.9% 2.2% 62.1% 10.0%2012 6,663,166 6,724,855 0.978 6,579,160 2,924,981 2,496,355 279,484 0.991 1.272 3,498,659 53.2% 2.2% 55.4% 15.0%2013 6,788,859 6,721,154 0.980 6,584,028 1,906,925 1,882,274 291,127 0.986 1.223 2,619,243 39.8% 2.3% 42.1% 20.0%2014 6,646,971 6,736,619 0.979 6,595,735 5,340,824 3,674,944 302,685 0.980 1.186 4,624,624 70.1% 2.4% 72.5% 25.0%2015 6,768,602 6,678,077 0.979 6,537,912 3,236,322 2,670,925 311,990 1.039 1.157 3,583,494 54.8% 2.6% 57.4% 30.0%
(15) Projected Loss & ALAE Ratio 58.3%
(16) Modeled Catastrophe Loss & ALAE Ratio 0.8%
(17) ULAE Load 1.061
(18) Fixed Expense Ratio 9.6%
(19) Projected Loss, LAE & Fixed Expense Ratio 72.4%
(20) Permissible Loss, LAE & Fixed Expense Ratio 69.4%
(21) Raw Indicated Rate Level Change 4.3%
(22) Credibility 100.0%
(23) Complement of Credibility Loss and LAE ratio N/A
(24) Credibility Weighted Loss & LAE + Modeled Cat Loss & LAE ratio + =(15)*(17)*(22)+(23)*(1-(22))+(16)*(17)+(18) 72.4%
(25) Credibility Weighted Indicated Rate Level Change 4.3%
CHUBB Exhibit 3.3Pennsylvania HomeownersForm Indication = City HomeCompanies = AllTerritory = AllEvaluated as of 03/2016
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
=[(6)+(7)] =(10)/(4) =(11)+(12)* (8) * (9)
Fiscal / Onlevel Ex-cat Expected Loss Loss Ratio Ultimate Ex-cat Ult. Ex-cat Adj. Cat Loss/ Ult. Adj. AccidentAccident Written Earned Onlevel Earned Reported Capped Excess Development Trend Adjusted Loss/ALAE ALAE Loss/ALAE Year
Year Premium Premium Factors Premium Loss/ALAE Loss/ALAE Shock Loss Factors Factors Loss/ALAE Ratio Ratio Ratio Weights2011 1,728,986 1,699,130 1.002 1,703,050 512,395 358,948 0 0.995 1.023 365,553 21.5% 2.9% 24.4% 10.0%2012 1,760,718 1,748,741 1.001 1,750,014 350,525 312,305 0 0.990 1.008 311,881 17.8% 2.9% 20.7% 15.0%2013 1,803,218 1,763,816 1.002 1,767,291 593,780 593,780 0 0.994 1.002 591,572 33.5% 2.9% 36.4% 20.0%2014 1,833,411 1,795,463 1.002 1,799,002 3,072,475 2,925,801 0 1.014 1.000 2,968,096 165.0% 3.0% 168.0% 25.0%2015 1,913,913 1,865,250 1.002 1,868,991 352,045 341,626 0 1.095 1.004 375,634 20.1% 3.0% 23.1% 30.0%
(15) Projected Loss & ALAE Ratio 61.7%
(16) Modeled Catastrophe Loss & ALAE Ratio 3.7%
(17) ULAE Load 1.061
(18) Fixed Expense Ratio 9.6%
(19) Projected Loss, LAE & Fixed Expense Ratio 79.1%
(20) Permissible Loss, LAE & Fixed Expense Ratio 69.4%
(21) Raw Indicated Rate Level Change 14.0%
(22) Credibility 33.3%
(23) Complement of Credibility Loss and LAE ratio 56.0%
(24) Credibility Weighted Loss & LAE + Modeled Cat Loss & LAE ratio + =(15)*(17)*(22)+(23)*(1-(22))+(16)*(17)+(18) 72.8%
(25) Credibility Weighted Indicated Rate Level Change 4.9%
CHUBB Exhibit 3.4Pennsylvania HomeownersForm Indication = AllCompanies = AllTerritory = AllEvaluated as of 09/2014
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
=[(6)+(7)] =(10)/(4) =(11)+(12)* (8) * (9)
Fiscal / Onlevel Ex-cat Expected Loss Loss Ratio Ultimate Ex-cat Ult. Ex-cat Adj. Cat Loss/ Ult. Adj. AccidentAccident Written Earned Onlevel Earned Reported Capped Excess Development Trend Adjusted Loss/ALAE ALAE Loss/ALAE Year
Year Premium Premium Factors Premium Loss/ALAE Loss/ALAE Shock Loss Factors Factors Loss/ALAE Ratio Ratio Ratio Weights2011 78,512,562 78,691,256 1.219 95,893,761 60,189,769 35,603,871 11,526,869 0.996 1.041 48,853,074 50.9% 12.2% 63.1% 10.0%2012 80,197,833 79,411,023 1.195 94,862,584 48,691,247 24,980,363 11,766,696 0.993 1.024 37,357,409 39.4% 12.1% 51.5% 15.0%2013 84,457,181 82,190,339 1.144 94,035,223 31,121,974 21,985,279 12,309,361 0.995 1.015 34,634,636 36.8% 12.4% 49.3% 20.0%2014 88,968,152 86,604,535 1.065 92,244,968 78,842,576 39,407,259 12,825,370 1.002 1.012 52,922,382 57.4% 12.9% 70.2% 25.0%2015 88,599,454 88,668,460 1.025 90,921,844 43,200,668 27,808,092 13,182,363 1.042 1.014 43,302,026 47.6% 13.2% 60.8% 30.0%
(15) Projected Loss & ALAE Ratio 59.7%
(16) Modeled Catastrophe Loss & ALAE Ratio 1.7%
(17) ULAE Load 1.061
(18) Fixed Expense Ratio 9.6%
(19) Projected Loss, LAE & Fixed Expense Ratio 74.7%
(20) Permissible Loss, LAE & Fixed Expense Ratio 69.4%
(21) Raw Indicated Rate Level Change 7.7%
(22) Credibility 100.0%
(23) Complement of Credibility Loss and LAE ratio N/A
(24) Credibility Weighted Loss & LAE + Modeled Cat Loss & LAE ratio + Fixed =(15)*(17)*(22)+(23)*(1-(22))+(16)*(17)+(18) 74.7%
(25) Credibility Weighted Indicated Rate Level Change 7.7%
Exhibit 4.1
Mid-Atlantic ZoneHome and Vacation
All CausesNon-cat Reported Losses and ALAE March 31st 2016
Loss Development - Mold Capped
LossYear 15 27 39 51 63 75 87 99 111 123 Ultimate2006 - - - - 188,274,578 188,077,505 187,733,693 187,842,926 187,673,559 187,763,507 187,763,507 2007 - - - 211,894,103 211,205,857 211,498,655 211,281,103 211,243,105 211,434,812 - 211,434,812 2008 - - 241,050,341 239,197,514 237,696,178 233,486,041 234,068,267 233,309,696 - - 233,309,696 2009 - 237,214,506 243,864,046 244,173,609 243,726,204 241,162,397 240,963,373 - - - 240,963,373 2010 202,661,682 210,810,574 213,070,623 212,888,344 212,606,909 212,697,746 - - - - 212,697,746 2011 239,161,357 245,458,041 244,116,486 245,636,351 244,797,615 - - - - - 243,888,707 2012 206,143,365 213,241,408 209,899,859 212,786,014 - - - - - - 211,395,665 2013 204,115,734 213,037,215 216,482,454 - - - - - - - 215,543,962 2014 297,607,132 310,218,492 - - - - - - - - 311,079,741 2015 277,031,762 - - - - - - - - - 288,636,754
2006 0.999 0.998 1.001 0.999 1.0002007 0.997 1.001 0.999 1.000 1.0012008 0.992 0.994 0.982 1.002 0.9972009 1.028 1.001 0.998 0.989 0.9992010 1.040 1.011 0.999 0.999 1.0002011 1.026 0.995 1.006 0.9972012 1.034 0.984 1.0142013 1.044 1.0162014 1.042
5 Point 1.037 1.007 1.003 0.997 0.995 1.000 0.999 1.000 1.0005 Point Ex Hi/Lo 1.039 1.007 1.002 0.997 0.996 1.000 1.000 1.000 1.000
3 Point 1.040 0.998 1.006 0.998 0.991 1.000 0.999 1.000 1.000Average 1.039 1.004 1.004 0.997 0.994 1.000 0.999 1.000 1.000
5 Yr. Wtd. Avg. 1.037 1.007 1.002 0.997 0.994 1.000 0.999 1.000 1.0003 Yr. Wtd. Avg. 1.040 0.998 1.006 0.998 0.990 1.000 0.999 1.000 1.000
Selected 1.039 1.007 1.002 0.997 0.996 1.000 1.000 1.000 1.000Cumulative 1.042 1.003 0.996 0.993 0.996 1.000 1.000 1.000 1.000
Exhibit 4.2
Mid-Atlantic ZoneRenter/Condo/Co-op
All CausesNon-cat Reported Losses and ALAE March 31st 2016
Loss Development - Mold Capped
LossYear 15 27 39 51 63 75 87 99 111 123 Ultimate2006 - - - - 53,801,136 53,669,022 53,504,448 53,412,621 53,453,531 53,454,777 53,454,777 2007 - - - 42,002,141 41,750,215 41,279,841 41,252,829 40,978,008 40,872,820 - 40,872,820 2008 - - 46,860,531 46,848,919 46,711,258 46,035,807 45,868,864 45,872,639 - - 45,872,639 2009 - 53,386,733 54,339,144 54,004,505 53,711,358 53,802,415 53,470,927 - - - 53,470,927 2010 49,702,577 53,270,502 50,522,458 51,022,104 51,034,750 50,791,459 - - - - 50,791,459 2011 48,209,779 53,284,990 52,739,600 52,206,481 52,260,762 - - - - - 51,938,676 2012 50,943,232 53,270,592 52,221,963 51,683,264 - - - - - - 51,225,732 2013 49,128,156 49,112,106 49,779,990 - - - - - - - 49,067,700 2014 49,841,690 52,868,589 - - - - - - - - 51,828,595 2015 57,661,767 - - - - - - - - - 59,885,239
2006 0.998 0.997 0.998 1.001 1.0002007 0.994 0.989 0.999 0.993 0.9972008 1.000 0.997 0.986 0.996 1.0002009 1.018 0.994 0.995 1.002 0.9942010 1.072 0.948 1.010 1.000 0.9952011 1.105 0.990 0.990 1.0012012 1.046 0.980 0.9902013 1.000 1.0142014 1.061
5 Point 1.057 0.990 0.997 0.997 0.994 0.997 0.997 0.999 1.0005 Point Ex Hi/Lo 1.059 0.995 0.994 0.997 0.994 1.000 1.000 1.000 1.000
3 Point 1.035 0.995 0.996 0.999 0.994 0.997 0.997 0.999 1.000Average 1.050 0.993 0.996 0.998 0.994 0.998 0.998 0.999 1.000
5 Yr. Wtd. Avg. 1.056 0.990 0.996 0.997 0.994 0.996 0.997 1.000 1.0003 Yr. Wtd. Avg. 1.036 0.994 0.996 0.999 0.995 0.996 0.997 1.000 1.000
Selected 1.059 0.995 0.994 0.997 0.994 1.000 1.000 1.000 1.000Cumulative 1.039 0.980 0.986 0.991 0.994 1.000 1.000 1.000 1.000
Exhibit 4.3Mid-Atlantic Zone
City HomesAll Causes
Non-cat Reported Losses and ALAE March 31st 2016Loss Development - Mold Capped
LossYear 15 27 39 51 63 75 87 99 111 123 Ultimate2006 - - - - 10,400,171 10,530,153 10,513,093 10,475,747 10,328,234 10,328,234 10,328,234 2007 - - - 6,488,448 6,503,118 6,501,838 6,552,953 6,632,132 6,485,746 - 6,485,746 2008 - - 6,943,304 7,187,027 7,009,494 6,866,246 6,814,329 6,814,329 - - 6,814,329 2009 - 14,193,652 14,548,005 14,418,001 14,372,484 14,450,257 14,565,716 - - - 14,565,716 2010 6,816,149 7,091,579 7,169,600 6,855,299 6,956,679 6,818,458 - - - - 6,818,458 2011 6,388,013 7,174,628 7,350,842 7,243,476 7,147,243 - - - - - 7,112,330 2012 7,685,821 7,861,690 8,810,401 9,531,899 - - - - - - 9,440,499 2013 14,969,905 18,797,152 18,161,965 - - - - - - - 18,057,124 2014 10,415,993 11,207,572 - - - - - - - - 11,367,695 2015 17,906,336 - - - - - - - - - 19,612,378
2006 1.012 0.998 0.996 0.986 1.0002007 1.002 1.000 1.008 1.012 0.9782008 1.035 0.975 0.980 0.992 1.0002009 1.025 0.991 0.997 1.005 1.0082010 1.040 1.011 0.956 1.015 0.9802011 1.123 1.025 0.985 0.9872012 1.023 1.121 1.0822013 1.256 0.9662014 1.076
5 Point 1.104 1.029 1.010 0.995 0.995 1.002 1.003 0.982 1.0005 Point Ex Hi/Lo 1.080 1.020 1.004 0.995 0.995 1.000 1.000 1.000 1.000
3 Point 1.118 1.037 1.008 0.999 0.988 1.003 1.003 0.982 1.000Average 1.101 1.029 1.007 0.997 0.993 1.001 1.002 0.988 1.000
5 Yr. Wtd. Avg. 1.127 1.017 1.009 0.995 0.998 1.003 1.002 1.000 1.0003 Yr. Wtd. Avg. 1.145 1.014 1.013 0.999 0.993 1.004 1.002 1.000 1.000
Selected 1.080 1.020 1.004 0.995 0.995 1.000 1.000 1.000 1.000Cumulative 1.095 1.014 0.994 0.990 0.995 1.000 1.000 1.000 1.000
CHUBB Exhibit 5.1US Homeowners
Calculation of Size of Risk Trend
State = PA
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Form = HouseAverage Average Trend from Combined
Earned Earned Earned SOR Average Earned Trend to Written Written Written SOR 7/1/2015 TrendCal Year House-Years Ins-Years (000) @ 7/1/XX SOR Factor 7/1/2015 House-Years Ins-Years (000) @ 7/1/XX to 4/17/2018 Factors
2011 23,736 26,422,680 1,113,194 8.2328 1.187 23,445 26,354,838 1,124,106 1.164 1.3812012 23,362 26,965,178 1,154,220 8.4826 1.152 23,320 27,252,478 1,168,608 1.164 1.3412013 23,215 28,119,951 1,211,308 8.8301 1.106 23,041 28,566,133 1,239,776 1.164 1.2882014 22,701 29,161,460 1,284,608 9.2763 1.053 22,353 29,366,626 1,313,777 1.164 1.2262015 21,968 29,997,886 1,365,535 9.7689 1.000 21,781 30,548,338 1,402,515 1.164 1.164
Fitted Annual Change (exponential) in Written SOR Exposure: 5.8%Prospective Annual Change in SOR adj for inflation guard changes: 6.8%
Selected Prospective Annual Change in SOR Exposure: 6.5%Projection Period in Years: 2.80
Proj Ave SOR (annual change applied to latest ave earned SOR): 1,628,852Proj Ave SOR Factor: 11.372
Prospective Annual Change in Premium: 5.6%
Form = RCC(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Average Average Trend from CombinedEarned Earned Earned SOR Average Earned Trend to Written Written Written SOR 7/1/2015 Trend
Cal Year House-Years Ins-Years (000) @ 7/1/XX SOR Factor 7/1/2015 House-Years Ins-Years (000) @ 7/1/XX to 4/17/2018 Factors2011 5,410 1,814,839 335,452 8.8647 1.117 5,423 1,209,013 222,935 1.028 1.1472012 5,416 1,838,580 339,483 8.9687 1.104 5,470 1,194,441 218,363 1.028 1.1342013 5,520 1,915,189 346,971 9.1618 1.080 5,549 1,231,902 222,020 1.028 1.1102014 5,524 1,991,147 360,481 9.5104 1.041 5,456 1,220,676 223,717 1.028 1.0702015 5,468 2,053,181 375,498 9.8978 1.000 5,541 1,281,133 231,215 1.028 1.028
Fitted Annual Change (exponential) in Written SOR Exposure: 1.0%Prospective Annual Change in SOR adj for inflation guard changes: 1.1%
Selected Prospective Annual Change in SOR Exposure: 1.0%Projection Period in Years: 2.80
Proj Ave SOR (annual change applied to latest ave earned SOR): 386,106Proj Ave SOR Factor: 10.172
Prospective Annual Change in Premium: 1.0%
(4) = (3) / (2) * 1,000(5) = SOR factor associated with (4); from SOR curve table for this state(6) = Latest Year (5) / (5)(9) = (8) / (7) * 1,000Exponential fit is applied to written data which is more recent.(10) = (Proj Ave Factor) / (Latest Year Earned Ave Factor)(10) = (Prospective Annual Change in Premium adj for Inflation) ^ Projection Period in Years(11) = (6) * (10)
CHUBB Exhibit 5.2US Homeowners
Calculation of Premium Trend for Shifting Deductibles
State = PA
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Form = House*Adjusted Average Adjusted Average Trend from Combined
Earned Earned Base Earned Ded Factor Trend to Written Written Base Written Ded Factor 7/1/2015 TrendCal Year House-Years Premium Earned Prem @ 1/1/XX 7/1/2015 House-Years Premium Written Prem @ 1/1/XX to 4/17/2018 Factors
2011 23,736 70,284,778 88,107,876 0.798 0.954 23,445 70,008,391 87,938,359 0.796 0.972 0.9282012 23,362 70,937,427 89,704,994 0.791 0.962 23,320 71,773,949 90,980,483 0.789 0.972 0.9362013 23,215 73,705,372 94,266,131 0.782 0.973 23,041 75,865,104 97,556,243 0.778 0.972 0.9462014 22,701 78,076,488 101,329,505 0.771 0.988 22,353 80,495,449 104,915,841 0.767 0.972 0.9602015 21,968 80,214,728 105,396,630 0.761 1.000 21,781 80,343,858 105,934,661 0.758 0.972 0.972
Fitted Annual Change (exponential): -1.2%Selected Annual Change: -1.0%
Projection Period in Years: 2.80Proj Ave Ded Factor @ 10/1/2012: 0.740
Form = RCCAdjusted Average Adjusted Average Trend from Combined
Earned Earned Base Earned Ded Factor Trend to Written Written Base Written Ded Factor 7/1/2015 TrendCal Year House-Years Premium Earned Prem @ 1/1/XX 7/1/2015 House-Years Premium Written Prem @ 1/1/XX to 4/17/2018 Factors
2011 5,410 6,707,348 7,894,791 0.850 0.959 5,423 6,775,184 8,002,703 0.847 0.972 0.9322012 5,416 6,724,855 7,943,204 0.847 0.962 5,470 6,663,166 7,851,629 0.849 0.972 0.9362013 5,520 6,721,154 8,006,707 0.839 0.971 5,549 6,788,859 8,140,981 0.834 0.972 0.9442014 5,524 6,736,383 8,155,544 0.826 0.986 5,456 6,646,001 8,090,283 0.821 0.972 0.9592015 5,468 6,684,653 8,204,420 0.815 1.000 5,541 6,810,995 8,407,698 0.810 0.972 0.972
Fitted Annual Change (exponential): -1.2%Selected Annual Change: -1.0%
Projection Period in Years: 2.80Proj Ave Ded Factor @ 10/1/2012: 0.792
(5) = (3) / (4)(6) = Latest Year (5) / (5)(10) = (8) / (9)(11) = (Proj Ave Factor) / (Latest Year Earned Ave Factor)(12) = (6) * (11)
CHUBB Exhibit 5.3US HomeownersPremium Trend Summary
State = PA
Form = HouseEarned SOR SOR SOR Deductible Deductible Deductible Premium Premium Premium
Cal Year Premium Historical Prospective Combined Historical Prospective Combined Historical Prospective Combined2011 70,284,778 1.187 1.164 1.381 0.954 0.972 0.928 1.132 1.132 1.2822012 70,937,427 1.152 1.164 1.341 0.962 0.972 0.936 1.108 1.132 1.2552013 73,705,372 1.106 1.164 1.288 0.973 0.972 0.946 1.077 1.132 1.2182014 78,076,488 1.053 1.164 1.226 0.988 0.972 0.960 1.040 1.132 1.1772015 80,214,728 1.000 1.164 1.164 1.000 0.972 0.972 1.000 1.132 1.131
Implied Annual Trend: 4.4% 5.6% 5.0% -1.2% -1.0% -1.1% 3.2% 4.5% 3.8%
Form = RCCEarned SOR SOR SOR Deductible Deductible Deductible Premium Premium Premium
Cal Year Premium Historical Prospective Combined Historical Prospective Combined Historical Prospective Combined2011 6,707,348 1.117 1.028 1.147 0.959 0.972 0.932 1.071 0.999 1.0692012 6,724,855 1.104 1.028 1.134 0.962 0.972 0.936 1.062 0.999 1.0612013 6,721,154 1.080 1.028 1.110 0.971 0.972 0.944 1.049 0.999 1.0482014 6,736,383 1.041 1.028 1.070 0.986 0.972 0.959 1.027 0.999 1.0262015 6,684,653 1.000 1.028 1.028 1.000 0.972 0.972 1.000 0.999 0.999
Implied Annual Trend: 2.8% 1.0% 2.2% -1.1% -1.0% -1.1% 1.7% 0.0% 1.1%
Form = House & RCCEarned SOR SOR SOR Deductible Deductible Deductible Premium Premium Premium
Cal Year Premium Historical Prospective Combined Historical Prospective Combined Historical Prospective Combined2011 76,992,126 1.180 1.152 1.361 0.955 0.972 0.928 1.127 1.120 1.2632012 77,662,281 1.147 1.152 1.323 0.962 0.972 0.936 1.104 1.120 1.2382013 80,426,526 1.104 1.153 1.273 0.973 0.972 0.946 1.075 1.121 1.2042014 84,812,872 1.052 1.153 1.214 0.988 0.972 0.960 1.039 1.121 1.1652015 86,899,380 1.000 1.154 1.154 1.000 0.972 0.972 1.000 1.122 1.121
Implied Annual Trend: 4.3% 5.2% 4.7% -1.2% -1.0% -1.1% 3.0% 4.2% 3.6%
Exhibit 5.4
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 12,340 --30-Jun-06 12,325 --30-Sep-06 11,767 --31-Dec-06 11,534 --31-Mar-07 12,143 -1.6%30-Jun-07 11,842 -3.9%30-Sep-07 11,899 1.1%31-Dec-07 12,395 7.5%31-Mar-08 12,180 0.3%30-Jun-08 12,757 7.7%30-Sep-08 13,147 10.5%31-Dec-08 12,420 0.2%31-Mar-09 13,230 8.6%30-Jun-09 14,376 12.7%30-Sep-09 16,452 25.1%31-Dec-09 17,849 43.7%31-Mar-10 17,847 34.9%30-Jun-10 16,803 16.9%30-Sep-10 16,994 3.3%31-Dec-10 16,990 -4.8%31-Mar-11 17,686 -0.9%30-Jun-11 18,025 7.3%30-Sep-11 17,313 1.9%31-Dec-11 17,204 1.3%31-Mar-12 16,392 -7.3%30-Jun-12 16,998 -5.7%30-Sep-12 16,705 -3.5%31-Dec-12 17,385 1.0%31-Mar-13 18,568 13.3%
CHUBBHOMEOWNERS SEVERITY TRENDS
PAHOUSE & VACATION
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.5
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 7.4328 --30-Jun-06 7.2969 --30-Sep-06 7.7295 --31-Dec-06 8.0716 --31-Mar-07 8.1185 9.2%30-Jun-07 8.3179 14.0%30-Sep-07 8.1263 5.1%31-Dec-07 8.1384 0.8%31-Mar-08 8.5721 5.6%30-Jun-08 8.5383 2.6%30-Sep-08 8.1617 0.4%31-Dec-08 7.6229 -6.3%31-Mar-09 7.5446 -12.0%30-Jun-09 7.6781 -10.1%30-Sep-09 8.1476 -0.2%31-Dec-09 8.5992 12.8%31-Mar-10 8.6910 15.2%30-Jun-10 9.3847 22.2%30-Sep-10 9.3438 14.7%31-Dec-10 9.3547 8.8%31-Mar-11 9.3577 7.7%30-Jun-11 9.1742 -2.2%30-Sep-11 9.6494 3.3%31-Dec-11 10.1618 8.6%31-Mar-12 9.7682 4.4%30-Jun-12 8.9153 -2.8%30-Sep-12 8.0877 -16.2%31-Dec-12 7.0755 -30.4%31-Mar-13 6.7097 -31.3%
CHUBBHOMEOWNERS FREQUENCY TRENDS
PAHOUSE & VACATION
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.6
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 15,898 --30-Jun-06 16,362 --30-Sep-06 17,025 --31-Dec-06 17,094 --31-Mar-07 17,509 10.1%30-Jun-07 17,673 8.0%30-Sep-07 17,435 2.4%31-Dec-07 17,698 3.5%31-Mar-08 17,713 1.2%30-Jun-08 17,232 -2.5%30-Sep-08 17,628 1.1%31-Dec-08 17,548 -0.8%31-Mar-09 18,909 6.8%30-Jun-09 20,590 19.5%30-Sep-09 20,681 17.3%31-Dec-09 21,590 23.0%31-Mar-10 20,025 5.9%30-Jun-10 19,482 -5.4%30-Sep-10 20,822 0.7%31-Dec-10 20,955 -2.9%31-Mar-11 21,673 8.2%30-Jun-11 21,158 8.6%30-Sep-11 21,313 2.4%31-Dec-11 21,940 4.7%31-Mar-12 22,684 4.7%30-Jun-12 23,640 11.7%30-Sep-12 24,164 13.4%31-Dec-12 24,308 10.8%31-Mar-13 25,047 10.4%
CHUBBHOMEOWNERS SEVERITY TRENDS
Mid-Atlantic ZoneHOUSE & VACATION
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.7
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 6.3541 --30-Jun-06 6.2405 --30-Sep-06 6.3387 --31-Dec-06 6.4759 --31-Mar-07 6.4725 1.9%30-Jun-07 6.6968 7.3%30-Sep-07 6.6623 5.1%31-Dec-07 6.9521 7.4%31-Mar-08 7.3122 13.0%30-Jun-08 7.0916 5.9%30-Sep-08 6.8622 3.0%31-Dec-08 6.2358 -10.3%31-Mar-09 6.1566 -15.8%30-Jun-09 6.1983 -12.6%30-Sep-09 6.4801 -5.6%31-Dec-09 6.6242 6.2%31-Mar-10 6.5210 5.9%30-Jun-10 6.8597 10.7%30-Sep-10 6.6734 3.0%31-Dec-10 6.6748 0.8%31-Mar-11 6.8427 4.9%30-Jun-11 6.8891 0.4%30-Sep-11 7.0163 5.1%31-Dec-11 7.3971 10.8%31-Mar-12 6.8389 -0.1%30-Jun-12 6.2073 -9.9%30-Sep-12 5.7537 -18.0%31-Dec-12 5.1366 -30.6%31-Mar-13 5.1543 -24.6%
CHUBBHOMEOWNERS FREQUENCY TRENDS
Mid-Atlantic ZoneHOUSE & VACATION
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.8
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 16,194 --30-Jun-06 16,511 --30-Sep-06 17,419 --31-Dec-06 17,607 --31-Mar-07 18,349 13.3%30-Jun-07 19,176 16.1%30-Sep-07 19,084 9.6%31-Dec-07 19,459 10.5%31-Mar-08 19,337 5.4%30-Jun-08 18,621 -2.9%30-Sep-08 19,108 0.1%31-Dec-08 19,825 1.9%31-Mar-09 21,142 9.3%30-Jun-09 22,670 21.7%30-Sep-09 23,296 21.9%31-Dec-09 23,952 20.8%31-Mar-10 23,433 10.8%30-Jun-10 23,177 2.2%30-Sep-10 23,782 2.1%31-Dec-10 24,306 1.5%31-Mar-11 25,066 7.0%30-Jun-11 25,335 9.3%30-Sep-11 25,966 9.2%31-Dec-11 26,258 8.0%31-Mar-12 26,300 4.9%30-Jun-12 26,917 6.2%30-Sep-12 27,134 4.5%31-Dec-12 26,916 2.5%31-Mar-13 27,517 4.6%
CHUBBHOMEOWNERS SEVERITY TRENDS
US TOTAL Excluding TXHOUSE & VACATION
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.9
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 5.9842 --30-Jun-06 5.8999 --30-Sep-06 5.9190 --31-Dec-06 5.8964 --31-Mar-07 5.9206 -1.1%30-Jun-07 6.0180 2.0%30-Sep-07 5.9131 -0.1%31-Dec-07 6.1064 3.6%31-Mar-08 6.3199 6.7%30-Jun-08 6.2571 4.0%30-Sep-08 6.2258 5.3%31-Dec-08 5.8972 -3.4%31-Mar-09 5.9537 -5.8%30-Jun-09 5.9393 -5.1%30-Sep-09 5.9923 -3.8%31-Dec-09 6.0492 2.6%31-Mar-10 5.8398 -1.9%30-Jun-10 5.9812 0.7%30-Sep-10 5.8737 -2.0%31-Dec-10 5.8332 -3.6%31-Mar-11 6.0034 2.8%30-Jun-11 6.2203 4.0%30-Sep-11 6.3044 7.3%31-Dec-11 6.4985 11.4%31-Mar-12 5.9665 -0.6%30-Jun-12 5.3604 -13.8%30-Sep-12 5.0327 -20.2%31-Dec-12 4.6223 -28.9%31-Mar-13 4.6866 -21.5%
CHUBBHOMEOWNERS FREQUENCY TRENDS
US TOTAL Excluding TXHOUSE & VACATION
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.10
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 9,692 --30-Jun-06 8,412 --30-Sep-06 8,778 --31-Dec-06 10,211 --31-Mar-07 9,197 -5.1%30-Jun-07 8,849 5.2%30-Sep-07 8,658 -1.4%31-Dec-07 8,792 -13.9%31-Mar-08 10,788 17.3%30-Jun-08 11,104 25.5%30-Sep-08 12,537 44.8%31-Dec-08 11,826 34.5%31-Mar-09 9,621 -10.8%30-Jun-09 9,629 -13.3%30-Sep-09 13,957 11.3%31-Dec-09 13,260 12.1%31-Mar-10 14,915 55.0%30-Jun-10 15,672 62.8%30-Sep-10 10,394 -25.5%31-Dec-10 10,881 -17.9%31-Mar-11 8,623 -42.2%30-Jun-11 9,383 -40.1%30-Sep-11 10,980 5.6%31-Dec-11 10,730 -1.4%31-Mar-12 11,664 35.3%30-Jun-12 10,802 15.1%30-Sep-12 10,705 -2.5%31-Dec-12 10,407 -3.0%31-Mar-13 9,490 -18.6%
CHUBBHOMEOWNERS SEVERITY TRENDS
PAC/C RENTER
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.11
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 5.3975 --30-Jun-06 5.8761 --30-Sep-06 5.6403 --31-Dec-06 5.8563 --31-Mar-07 5.8572 8.5%30-Jun-07 5.5046 -6.3%30-Sep-07 5.0402 -10.6%31-Dec-07 3.9669 -32.3%31-Mar-08 3.7285 -36.3%30-Jun-08 3.8613 -29.9%30-Sep-08 4.0184 -20.3%31-Dec-08 4.8252 21.6%31-Mar-09 5.2054 39.6%30-Jun-09 5.1933 34.5%30-Sep-09 5.6292 40.1%31-Dec-09 6.0056 24.5%31-Mar-10 5.9321 14.0%30-Jun-10 5.7114 10.0%30-Sep-10 5.0898 -9.6%31-Dec-10 4.7365 -21.1%31-Mar-11 4.4297 -25.3%30-Jun-11 4.6395 -18.8%30-Sep-11 5.1201 0.6%31-Dec-11 5.7670 21.8%31-Mar-12 5.9335 33.9%30-Jun-12 5.9338 27.9%30-Sep-12 5.7087 11.5%31-Dec-12 4.9115 -14.8%31-Mar-13 4.8739 -17.9%
CHUBBHOMEOWNERS FREQUENCY TRENDS
PAC/C RENTER
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.12
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 15,014 --30-Jun-06 14,868 --30-Sep-06 16,430 --31-Dec-06 16,794 --31-Mar-07 16,542 10.2%30-Jun-07 16,770 12.8%30-Sep-07 15,960 -2.9%31-Dec-07 16,241 -3.3%31-Mar-08 17,745 7.3%30-Jun-08 17,583 4.8%30-Sep-08 17,570 10.1%31-Dec-08 17,155 5.6%31-Mar-09 16,839 -5.1%30-Jun-09 17,288 -1.7%30-Sep-09 18,601 5.9%31-Dec-09 18,915 10.3%31-Mar-10 19,256 14.4%30-Jun-10 19,034 10.1%30-Sep-10 18,562 -0.2%31-Dec-10 18,842 -0.4%31-Mar-11 19,761 2.6%30-Jun-11 20,365 7.0%30-Sep-11 21,044 13.4%31-Dec-11 21,345 13.3%31-Mar-12 20,778 5.1%30-Jun-12 21,902 7.5%30-Sep-12 22,576 7.3%31-Dec-12 22,697 6.3%31-Mar-13 24,703 18.9%
CHUBBHOMEOWNERS SEVERITY TRENDS
Mid-Atlantic ZoneC/C RENTER
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.13
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 5.3572 --30-Jun-06 5.3183 --30-Sep-06 5.4386 --31-Dec-06 5.4742 --31-Mar-07 5.3815 0.5%30-Jun-07 5.3396 0.4%30-Sep-07 5.0130 -7.8%31-Dec-07 4.1134 -24.9%31-Mar-08 3.8051 -29.3%30-Jun-08 3.7962 -28.9%30-Sep-08 3.9192 -21.8%31-Dec-08 4.6629 13.4%31-Mar-09 5.2680 38.4%30-Jun-09 5.3094 39.9%30-Sep-09 5.4054 37.9%31-Dec-09 5.4277 16.4%31-Mar-10 5.2589 -0.2%30-Jun-10 5.2647 -0.8%30-Sep-10 5.1867 -4.0%31-Dec-10 5.2364 -3.5%31-Mar-11 5.2519 -0.1%30-Jun-11 5.1838 -1.5%30-Sep-11 5.3238 2.6%31-Dec-11 5.5019 5.1%31-Mar-12 5.4061 2.9%30-Jun-12 5.4696 5.5%30-Sep-12 5.2751 -0.9%31-Dec-12 4.9420 -10.2%31-Mar-13 5.0498 -6.6%
CHUBBHOMEOWNERS FREQUENCY TRENDS
Mid-Atlantic ZoneC/C RENTER
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.14
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 13,289 --30-Jun-06 13,138 --30-Sep-06 14,429 --31-Dec-06 14,816 --31-Mar-07 15,122 13.8%30-Jun-07 15,667 19.3%30-Sep-07 15,087 4.6%31-Dec-07 15,342 3.5%31-Mar-08 16,582 9.7%30-Jun-08 16,426 4.8%30-Sep-08 16,349 8.4%31-Dec-08 16,641 8.5%31-Mar-09 16,510 -0.4%30-Jun-09 16,892 2.8%30-Sep-09 17,925 9.6%31-Dec-09 17,459 4.9%31-Mar-10 17,950 8.7%30-Jun-10 18,039 6.8%30-Sep-10 17,816 -0.6%31-Dec-10 18,606 6.6%31-Mar-11 18,881 5.2%30-Jun-11 19,378 7.4%30-Sep-11 19,742 10.8%31-Dec-11 19,772 6.3%31-Mar-12 19,365 2.6%30-Jun-12 20,222 4.4%30-Sep-12 21,143 7.1%31-Dec-12 21,382 8.1%31-Mar-13 22,973 18.6%
CHUBBHOMEOWNERS SEVERITY TRENDS
US TOTAL Excluding TXC/C RENTER
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.15
New Arising LossCapped at 1,000,000
Rolling Year % ChangeEnded Actual Over Prior Yr
31-Mar-06 4.9777 --30-Jun-06 5.0157 --30-Sep-06 5.0833 --31-Dec-06 5.1005 --31-Mar-07 4.8854 -1.9%30-Jun-07 4.6696 -6.9%30-Sep-07 4.3697 -14.0%31-Dec-07 3.5977 -29.5%31-Mar-08 3.2925 -32.6%30-Jun-08 3.3213 -28.9%30-Sep-08 3.4029 -22.1%31-Dec-08 4.0651 13.0%31-Mar-09 4.5855 39.3%30-Jun-09 4.6031 38.6%30-Sep-09 4.7198 38.7%31-Dec-09 4.7069 15.8%31-Mar-10 4.5796 -0.1%30-Jun-10 4.5442 -1.3%30-Sep-10 4.4703 -5.3%31-Dec-10 4.5228 -3.9%31-Mar-11 4.4929 -1.9%30-Jun-11 4.4950 -1.1%30-Sep-11 4.5844 2.6%31-Dec-11 4.6767 3.4%31-Mar-12 4.6025 2.4%30-Jun-12 4.5809 1.9%30-Sep-12 4.4094 -3.8%31-Dec-12 4.1686 -10.9%31-Mar-13 4.2241 -8.2%
CHUBBHOMEOWNERS FREQUENCY TRENDS
US TOTAL Excluding TXC/C RENTER
Cause of Loss = ALLEx Cat, With Mold Contracts
Exhibit 5.17CHUBBPennsylvania HomeownersForm Indication = House & Vacation Home, City HomeCompanies = AllTerritory = AllEvaluated as of 03/2016
Calculation of Loss Ratio Trend Factors
(1) (2) (3) (4) (5) Calendar / Loss
Accident Frequency Severity Premium RatioYear Trend** Trend* Trend Trend2011 0.758 1.732 1.282 1.0232012 0.789 1.603 1.255 1.0082013 0.822 1.485 1.218 1.0022014 0.856 1.375 1.177 1.0002015 0.892 1.273 1.131 1.004
(2) Based on Frequency Selections in Exhibit 5.16 and a projection period of 2.8 yrs(3) Based on Severity Selections in Exhibit 5.16 and a projection period of 2.8 yrs(4) Exhibit 5.1, col 11 * Exhibit 5.2, col 12(5) = (2) * (3) / (4)
Net Projection Trend(6) Loss Trend 4.6%(7) Premium Trend 4.5%(8) Annual Net Projection Trend = (1+(6)) / (1+ (7)) -1 0.1%
Exhibit 5.18CHUBBPennsylvania HomeownersForm Indication = RCCCompanies = AllTerritory = AllEvaluated as of 03/2016
Calculation of Loss Ratio Trend Factors
(1) (2) (3) (4) (5) Calendar / Loss
Accident Frequency Severity Premium RatioYear Trend** Trend* Trend Trend2011 0.842 1.688 1.282 1.1082012 0.863 1.563 1.255 1.0752013 0.886 1.447 1.218 1.0522014 0.908 1.340 1.177 1.0342015 0.932 1.240 1.131 1.022
(2) Based on Frequency Selections in Exhibit 5.16 and a projection period of 2.8 yrs(3) Based on Severity Selections in Exhibit 5.16 and a projection period of 2.8 yrs(4) Exhibit 5.1, col 11 * Exhibit 5.2, col 12(5) = (2) * (3) / (4)
Net Projection Trend(6) Loss Trend 5.3%(7) Premium Trend 0.0%(8) Annual Projection Trend = (1+(6)) / (1+ (7)) -1 5.3%
Ex
(A) (B) (C) (D) (E) (F) (G)Calendar/ EarnedAccident Insurance Non-Cat Catastrophe Earned Insurance Year Cat Factor
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr(EIY) (C) / (A)
1986 - 5,744,133 - 1987 - 5,452,789 - 1988 - 7,635,473 10,615 1989 - 12,345,933 1,188,281 1990 - 11,452,592 130,906 1991 7,325,722 14,923,314 129,745 1.8%1992 7,791,935 13,193,907 2,418,328 31.0%1993 8,300,601 13,781,389 1,953,186 23.5%1994 8,685,332 15,964,306 13,318,816 153.3%1995 9,160,967 13,879,650 532,516 5.8% 44.5%1996 9,902,801 24,877,685 10,342,648 104.4% 65.2%1997 10,962,969 16,627,926 460,117 4.2% 56.6%1998 12,277,944 15,111,265 6,498,141 52.9% 61.1%1999 13,548,245 19,273,331 1,707,137 12.6% 35.0%2000 14,945,948 27,930,904 1,580,028 10.6% 33.4% 37.8%2001 16,822,360 33,664,167 280,529 1.7% 15.4% 34.8%2002 18,707,855 29,994,673 1,889,910 10.1% 15.7% 31.3%2003 20,494,675 27,767,787 6,946,966 33.9% 14.7% 32.1%2004 22,070,856 31,764,483 1,827,004 8.3% 13.5% 21.5%2005 23,342,801 25,130,435 1,475,636 6.3% 12.2% 20.2% 25.1%2006 24,834,938 29,761,132 3,776,574 15.2% 14.5% 14.9% 24.8%2007 26,184,076 31,437,640 5,304,935 20.3% 16.5% 16.2% 24.1%2008 26,890,588 38,922,329 1,242,680 4.6% 11.0% 12.5% 22.1%2009 26,925,378 43,798,623 3,028,004 11.2% 11.6% 12.4% 16.9%2010 26,540,169 42,190,309 28,958,129 109.1% 32.2% 23.5% 25.6%2011 26,422,680 36,043,882 4,155,080 15.7% 32.1% 24.2% 22.2%2012 26,965,178 28,456,402 1,519,693 5.6% 29.1% 23.2% 21.5%2013 28,119,951 27,554,042 1,128,193 4.0% 28.7% 20.3% 18.9%2014 29,161,460 48,020,380 22,409,035 76.8% 42.4% 27.5% 23.9%2015 29,997,886 30,817,891 8,913,664 29.7% 27.1% 29.6% 24.9%
All Years Weighted Average:
CHUBBPA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Historical Data: House & Vacation Homes
Ex
(A) (B) (C) (D) (E) (F) (G)Calendar/ Trended Earned Trended TrendedAccident Insurance Non-Cat Catastrophe Earned Insurance Year Cat Factor
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr(EIY) (C) / (A)
1986 - 96,322,170 - 1987 - 83,678,545 - 1988 - 107,232,153 138,430 1989 - 158,674,322 14,216,814 1990 - 134,703,903 1,436,866 1991 34,917,861 160,633,205 1,306,534 3.7%1992 35,037,785 129,968,205 22,341,836 63.8%1993 35,212,349 124,236,826 16,554,679 47.0%1994 34,758,899 131,704,634 103,565,778 298.0%1995 34,587,171 104,790,806 3,798,891 11.0% 84.6%1996 35,271,663 171,889,080 67,690,761 191.9% 122.4%1997 36,837,502 105,140,505 2,762,736 7.5% 110.0%1998 38,920,801 87,443,283 35,795,942 92.0% 118.4%1999 40,516,630 102,064,818 8,627,531 21.3% 63.8%2000 42,166,531 135,362,365 7,325,823 17.4% 63.1% 73.3%2001 44,773,954 149,305,040 1,193,282 2.7% 27.4% 71.3%2002 46,973,906 121,743,108 7,375,302 15.7% 28.3% 65.3%2003 48,547,608 103,141,911 24,871,807 51.2% 22.2% 65.2%2004 49,321,937 107,976,526 6,001,021 12.2% 20.2% 39.6%2005 49,211,663 78,177,400 4,446,706 9.0% 18.4% 38.4% 51.7%2006 49,393,783 84,727,485 10,440,725 21.1% 21.8% 24.4% 51.9%2007 49,129,302 81,906,518 13,455,079 27.4% 24.1% 26.0% 49.4%2008 47,598,994 92,802,783 2,891,605 6.1% 15.2% 18.5% 46.3%2009 44,962,807 95,568,835 6,464,123 14.4% 15.7% 17.9% 30.9%2010 41,810,892 84,248,504 56,714,902 135.6% 38.6% 28.4% 38.5%2011 39,269,624 65,868,035 7,465,855 19.0% 39.0% 30.1% 29.3%2012 37,807,443 47,590,119 2,505,126 6.6% 36.0% 29.6% 29.2%2013 37,194,841 42,171,182 1,706,203 4.6% 37.2% 25.1% 24.1%2014 36,389,120 67,258,891 31,091,656 85.4% 51.7% 31.7% 27.7%2015 35,314,013 39,502,145 11,346,200 32.1% 29.1% 34.4% 28.6%
All Years Weighted Average:
CHUBBPA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Trended Data: House & Vacation Homes
Ex
(A) (B) (C) (D) (E) (F) (G)Calendar/ EarnedAccident Insurance Non-Cat Catastrophe Earned Insurance Year Cat Factor
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr(EIY) (C) / (A)
1986 - 552,252 - 1987 - 412,844 - 1988 - 697,184 - 1989 - 805,795 112 1990 - 969,188 - 1991 - 1,496,191 1,202 1992 - 1,158,439 68,653 1993 - 1,060,345 22,533 1994 - 2,355,345 377,481 1995 - 987,209 6,207 1996 626,904 1,436,172 90,771 14.5%1997 693,393 2,099,422 27,393 4.0%1998 759,523 1,151,088 34,164 4.5%1999 800,224 1,269,846 40,484 5.1%2000 878,989 1,514,245 13,202 1.5% 5.5%2001 975,496 2,839,111 26,576 2.7% 3.5%2002 1,083,765 2,194,410 23,777 2.2% 3.1%2003 1,200,137 2,430,097 153,811 12.8% 5.2%2004 1,306,195 2,004,852 185,123 14.2% 7.4%2005 1,431,823 2,661,358 106,824 7.5% 8.3% 7.2%2006 1,537,276 3,023,903 47,525 3.1% 7.9% 6.2%2007 1,649,522 1,953,199 79,105 4.8% 8.0% 6.1%2008 1,745,132 2,672,155 8,666 0.5% 5.6% 5.4%2009 1,751,628 4,256,750 36,626 2.1% 3.4% 5.0%2010 1,760,613 2,055,638 215,447 12.2% 4.6% 6.1% 6.0%2011 1,814,831 2,837,879 10,719 0.6% 4.0% 5.7% 5.2%2012 1,838,599 2,551,718 30,719 1.7% 3.4% 5.5% 4.9%2013 1,915,204 1,882,271 24,651 1.3% 3.5% 4.4% 4.6%2014 1,991,189 5,076,207 441,949 22.2% 7.8% 5.7% 6.1%2015 2,053,180 2,785,821 525,499 25.6% 10.8% 7.9% 8.0%
All Years Weighted Average:
CHUBBPA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Historical Data: Renters/Condos/Co-ops
Ex
(A) (B) (C) (D) (E) (F) (G)Calendar/ Trended Earned Trended TrendedAccident Insurance Non-Cat Catastrophe Earned Insurance Year Cat Factor
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr(EIY) (C) / (A)
1986 - 9,260,599 - 1987 - 6,335,507 - 1988 - 9,791,213 - 1989 - 10,356,364 899 1990 - 11,399,464 - 1991 - 16,104,865 8,349 1992 - 11,411,346 443,606 1993 - 9,558,826 135,441 1994 - 19,431,465 2,110,652 1995 - 7,453,389 32,285 1996 2,232,896 9,923,041 439,189 19.7%1997 2,329,924 13,274,914 123,292 5.3%1998 2,407,671 6,660,919 143,040 5.9%1999 2,393,107 6,724,660 157,675 6.6%2000 2,479,865 7,338,530 47,831 1.9% 7.7%2001 2,596,355 12,591,833 89,568 3.4% 4.6%2002 2,721,246 8,906,725 74,544 2.7% 4.1%2003 2,842,875 9,026,461 448,573 15.8% 6.3%2004 2,918,966 6,815,063 502,224 17.2% 8.6%2005 3,018,592 8,279,126 269,586 8.9% 9.8% 8.8%2006 3,057,463 8,608,802 111,569 3.6% 9.7% 7.4%2007 3,095,006 5,088,796 172,749 5.6% 10.1% 7.3%2008 3,089,056 6,371,238 17,604 0.6% 7.1% 6.7%2009 2,925,051 9,288,252 69,212 2.4% 4.2% 6.3%2010 2,773,637 4,104,839 378,727 13.7% 5.0% 7.4% 7.4%2011 2,697,218 5,186,054 17,528 0.6% 4.5% 7.1% 6.3%2012 2,577,870 4,267,460 46,728 1.8% 3.8% 7.0% 6.1%2013 2,533,280 2,880,797 34,882 1.4% 4.1% 5.7% 5.8%2014 2,484,704 7,109,899 581,734 23.4% 8.1% 6.0% 6.8%2015 2,417,038 3,570,845 643,451 26.6% 10.4% 7.5% 8.3%
All Years Weighted Average:
CHUBBPA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Trended Data: Renters/Condos/Co-ops
Ex
(A) (B) (C) (D) (E) (F) (G)Calendar/ EarnedAccident Insurance Non-Cat Catastrophe Earned Insurance Year Cat Factor
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr(EIY) (C) / (A)
1986 - - - 1987 - - - 1988 - - - 1989 - - - 1990 - - - 1991 - - - 1992 - - - 1993 - - - 1994 - 8,497 - 1995 - 77,120 - 1996 112,637 56,144 68,473 60.8%1997 127,807 103,787 - 1998 134,126 54,095 - 1999 148,583 126,517 - 2000 170,068 342,294 3,179 1.9% 10.3%2001 191,974 404,723 999 0.5% 0.5%2002 241,406 358,302 - 0.5%2003 295,586 168,242 35,588 12.0% 3.8%2004 343,844 143,691 110,272 32.1% 12.1%2005 408,127 489,652 - 9.9% 10.1%2006 492,539 695,928 - 8.2% 5.9%2007 558,006 801,516 885 0.2% 7.0% 5.1%2008 610,257 255,514 - 4.6% 4.4%2009 617,766 1,619,840 - 0.0% 3.8%2010 630,321 1,474,139 51,453 8.2% 1.8% 4.5% 5.3%2011 650,913 358,946 4,896 0.8% 1.9% 4.2% 3.7%2012 676,704 312,301 - 1.8% 3.8% 3.4%2013 708,278 593,779 - 1.7% 2.9% 3.1%2014 760,028 2,942,801 146,675 19.3% 5.9% 3.3% 4.8%2015 808,043 341,625 10,420 1.3% 4.5% 3.3% 4.5%
All Years Weighted Average:
CHUBBPA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Historical Data: City Homes
Ex
(A) (B) (C) (D) (E) (F) (G)Calendar/ Trended Earned Trended TrendedAccident Insurance Non-Cat Catastrophe Earned Insurance Year Cat Factor
Year Years (000's) Losses Losses 1-Yr 5-Yr 10-Yr 15-Yr(EIY) (C) / (A)
1986 - - - 1987 - - - 1988 - - - 1989 - - - 1990 - - - 1991 - - - 1992 - - - 1993 - - - 1994 - 70,100 - 1995 - 582,253 - 1996 401,188 387,920 448,143 111.7%1997 429,453 656,258 - 0.0%1998 425,177 313,028 - 0.0%1999 444,343 669,990 - 0.0%2000 479,806 1,658,870 14,739 3.1% 21.2%2001 510,953 1,795,000 4,249 0.8% 0.8%2002 606,152 1,454,285 - 0.0% 0.8%2003 700,182 624,926 127,414 18.2% 5.3%2004 768,392 488,447 362,202 47.1% 16.6%2005 860,419 1,523,241 - 0.0% 14.3% 17.0%2006 979,602 1,981,250 - 0.0% 12.5% 8.2%2007 1,046,989 2,088,242 2,245 0.2% 11.3% 7.5%2008 1,080,216 609,224 - 0.0% 7.7% 6.8%2009 1,031,611 3,534,500 - 0.0% 0.0% 6.3%2010 992,996 2,943,662 100,771 10.1% 2.0% 7.0% 9.9%2011 967,393 655,952 8,797 0.9% 2.2% 6.7% 5.5%2012 948,795 522,288 - 0.0% 2.2% 6.4% 5.2%2013 936,854 908,773 - 0.0% 2.2% 4.9% 5.0%2014 948,401 4,121,782 203,506 21.5% 6.5% 3.2% 6.4%2015 951,242 437,892 13,264 1.4% 4.7% 3.3% 6.2%
All Years Weighted Average:
CHUBBPA
Non-Earthquake Catastrophe Load Exhibit: All Cats Excl. Hurr. & Trop. StormsCalendar/Accident Year as of March 31, 2016
Trended Data: City Homes
Exhibit 6.7CHUBBPennsylvania HomeownersForm Indication = HouseCompanies = AllTerritory = AllEvaluated as of 03/2016Catastrophe Loss and ALAE ratios
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)(1)*(2)*(3) (5)*(6) (7)*(8) (9)/(4) (10)+(11)
Calendar/ Trended Trended non-Modeled Expected non-Modeled Cat Modeled Cat Total CatAccident Earned On-level Premium On-level Earned Earned Catastrophe non-Modeled Loss&ALAE Loss&ALAE Loss&ALAEYear Premium Factors Trend Premium Ins Years EIY Trend Ins Years Factor to EIY Catastrophe $'s Ratio Ratio Ratio
2011 70,284,778 1.247 1.282 112,355,301 26,422,680 1.492 39,425,509 37.0% 14,587,438 13.0% 1.7% 14.7%2012 70,937,427 1.220 1.255 108,599,430 26,965,178 1.411 38,045,067 37.0% 14,076,675 13.0% 1.7% 14.6%2013 73,705,369 1.163 1.218 104,362,994 28,119,950 1.334 37,514,936 37.0% 13,880,526 13.3% 1.7% 15.0%2014 78,072,453 1.074 1.177 98,691,722 29,160,119 1.261 36,785,239 37.0% 13,610,539 13.8% 1.7% 15.5%2015 80,125,134 1.030 1.131 93,324,398 29,973,961 1.193 35,753,869 37.0% 13,228,931 14.2% 1.7% 15.9%Total 373,125,162 517,333,845 140,641,888 187,524,621 37.0% 69,384,110 13.4% 1.7% 15.1%
Exhibit 6.8CHUBBPennsylvania HomeownersForm Indication = RCCCompanies = AllTerritory = AllEvaluated as of 03/2016Catastrophe Loss and ALAE ratios
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)(1)*(2)*(3) (5)*(6) (7)*(8) (9)/(4) (10)+(11)
Calendar/ Trended Trended non-Modeled Expected non-Modeled Cat Modeled Cat Total CatAccident Earned On-level Premium On-level Earned Earned Catastrophe non-Modeled Loss&ALAE Loss&ALAE Loss&ALAEYear Premium Factors Trend Premium Ins Years EIY Trend Ins Years Factor to EIY Catastrophe $'s Ratio Ratio Ratio
2011 6,707,348 0.977 1.069 7,002,025 1,814,886 1.069 1,940,119 7.9% 153,269 2.2% 0.8% 3.0%2012 6,724,855 0.978 1.061 6,980,489 1,838,603 1.059 1,946,468 7.9% 153,771 2.2% 0.8% 3.1%2013 6,721,154 0.980 1.048 6,900,061 1,915,200 1.048 2,007,954 7.9% 158,628 2.3% 0.8% 3.1%2014 6,736,619 0.979 1.026 6,767,224 1,991,232 1.038 2,067,481 7.9% 163,331 2.4% 0.8% 3.3%2015 6,678,077 0.979 0.999 6,531,374 2,052,448 1.028 2,110,435 7.9% 166,724 2.6% 0.8% 3.4%Total 33,568,052 34,181,174 9,612,368 10,072,456 7.9% 795,724 2.3% 0.8% 3.2%
CHUBBPennsylvania HomeownersForm Indication = City HomeCompanies = AllTerritory = AllEvaluated as of 03/2016Catastrophe Loss and ALAE ratios
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)(1)*(2)*(3) (5)*(6) (7)*(8) (9)/(4)
Calendar/ Trended Trended non-Modeled Expected non-Modeled Cat Modeled CatAccident Earned On-level Premium On-level Earned Earned Catastrophe non-Modeled Loss&ALAE Loss&ALAEYear Premium Factors Trend Premium Ins Years EIY Trend Ins Years Factor to EIY Catastrophe $'s Ratio Ratio
2011 1,699,130 1.002 1.282 2,183,311 650,913 1.492 971,233 6.6% 64,101 2.9% 3.7%2012 1,748,741 1.001 1.255 2,196,267 676,704 1.411 954,759 6.6% 63,014 2.9% 3.7%2013 1,763,816 1.002 1.218 2,152,561 708,278 1.334 944,916 6.6% 62,364 2.9% 3.7%2014 1,795,463 1.002 1.177 2,117,425 760,028 1.261 958,769 6.6% 63,279 3.0% 3.7%2015 1,865,250 1.002 1.131 2,113,829 808,131 1.193 963,964 6.6% 63,622 3.0% 3.7%Total 8,872,400 10,763,393 3,604,054 4,793,641 6.6% 316,380 2.9% 3.7%
Exhibit 6.9
(12)(10)+(11)
Total CatLoss&ALAERatio
6.7%6.6%6.6%6.7%6.8%6.7%
Exhibit 6.10
(1) (2) (3) (4) (5)Modeled Adjusted Inforce Prem. Onleveled Hurricane
Loss Hurr. Losses at 07/31/12 Inforce Prem Loss & ALAE Ratio
House 1,251,373 1,385,583 80,411,352 82,743,281 1.7%
R/C/C 50,905 56,365 6,791,546 6,642,132 0.8%
City Home 64,181 71,064 1,900,186 1,900,186 3.7%Total 1,366,459 1,513,012 89,103,084 91,285,599 1.7%
*RMS RiskLink v15 Hurricane Model AAL using December 2015 data
(2) = (1) *ALAE load of 1.03 * Other Coverage Manual load of 1.075where the Other Coverage Manual load accounts for coverages not included in the RMS model
(4) = (3) * onlevel premium factor (1.029 for House, .978 for R/C/C, and 1.000 for City Home)
(5) = (2) / (4)
CHUBBPennsylvania HomeownersModeled Hurricane Losses
Exhibit 7.1CHUBB
Homeowners InsuranceCountrywide Unallocated Loss Adjustment Expense Exhibit
(1) (2) (3) (4)[(3)+(2)]/(2)
Incurred UnallocatedUnallocated Loss
Gross Incurred Losses Loss AdjustmentCalendar Including Allocated Adjustment Expenses Year Loss Adjustment Expenses Expenses Ratio *
2015 75,296 1.063
2014 72,583 1.065
2013 57,986 1.056
Average 1.061
Items (2) and (3) above are expressed in (000's) of dollars.* - To be applied to incurred losses including allocated loss adjustment expense.
1,195,533
1,125,042
1,027,343
Exhibit 8.1CHUBB
Homeowners InsuranceCountrywide Underwriting Expense Exhibit
(1) (2) * (3) * (4)
Expense Components Ratio = (2) ÷ (3)Adjusted
Other Direct OtherCalendar General Acquisition Earned General Acquisition
Year Expense Expense Premium Expense Expense
2015 42,682 156,167 2,066,918 2.1% 7.6%
2014 38,586 136,421 2,012,261 1.9% 6.8%
2013 43,235 154,028 1,922,007 2.2% 8.0%
Average 2.1% 7.5%
* - Items (2) and (3) above are from the respective Consolidated/Combined FederalInsurance Company Insurance Expense Exhibits for the calendar years shown,and are expressed in (000's) of dollars.
CHUBB Exhibit 9.1PENNSYLVANIA ANNUAL STATEMENT PAGE 15
Homeowners Commission, Guaranteed Supplemental Compensation and Taxes
DIRECT GUARANTEEDCAL WRITTEN STANDARD SUPPLEMENTAL STATE
Company YEAR PREMIUM COMMISSIONS % COMPENSATION % SUBTOTAL % TAXES %Federal 2013 6,347,600 1,003,114 15.8% 62,246 1.0% 1,065,360 16.8% 160,407 2.5%
2014 6,121,731 966,823 15.8% 73,891 1.2% 1,040,714 17.0% 127,315 2.1%2015 5,597,017 882,984 15.8% 70,459 1.3% 953,443 17.0% 117,193 2.1%
Vigilant 2013 4,712,824 745,692 15.8% 44,516 0.9% 790,208 16.8% 149,678 3.2%2014 4,487,364 704,299 15.7% 55,164 1.2% 759,463 16.9% 107,973 2.4%2015 4,114,762 646,066 15.7% 46,189 1.1% 692,255 16.8% 101,436 2.5%
Great Northern 2013 9,047,113 1,453,877 16.1% 90,039 1.0% 1,543,916 17.1% 245,961 2.7%2014 9,514,974 1,518,948 16.0% 113,810 1.2% 1,632,758 17.2% 211,045 2.2%2015 9,250,566 1,479,472 16.0% 112,080 1.2% 1,591,552 17.2% 216,087 2.3%
Pacific Indemnity 2013 47,848,580 7,454,860 15.6% 498,599 1.0% 7,953,459 16.6% 1,299,258 2.7%2014 48,022,498 7,456,984 15.5% 673,231 1.4% 8,130,215 16.9% 1,002,727 2.1%2015 45,543,018 7,065,059 15.5% 538,753 1.2% 7,603,812 16.7% 967,440 2.1%
Chubb Indemnity 2013 7,329,574 1,185,766 16.2% 69,325 0.9% 1,255,091 17.1% 175,548 2.4%2014 7,248,915 1,173,919 16.2% 95,994 1.3% 1,269,913 17.5% 160,131 2.2%2015 7,033,803 1,136,355 16.2% 97,434 1.4% 1,233,789 17.5% 156,022 2.2%
Chubb National 2013 9,359,076 1,695,229 18.1% 112,224 1.2% 1,807,453 19.3% 205,485 2.2%2014 14,023,357 2,484,699 17.7% 221,548 1.6% 2,706,247 19.3% 302,784 2.2%2015 17,181,269 2,941,019 17.1% 247,521 1.4% 3,188,540 18.6% 369,825 2.2%
Total 2013 84,644,767 13,538,538 16.0% 876,949 1.0% 14,415,487 17.0% 2,236,337 2.6%2014 89,418,839 14,305,672 16.0% 1,233,638 1.4% 15,539,310 17.4% 1,911,975 2.1%2015 88,720,435 14,150,955 16.0% 1,112,436 1.3% 15,263,391 17.2% 1,928,003 2.2%
2013-2015 262,784,041 41,995,165 16.0% 3,223,023 1.2% 45,218,188 17.2% 6,076,315 2.3%
SELECTED PROVISIONS
STANDARD COMMISSIONS 16.0%GUARANTEED SUPPLEMENTAL COMPENSATION * 1.2%TAXES, LICENSES AND FEES 2.3%SUBTOTAL 19.5%MANDATED, RESIDUAL MARKET LOAD, OR ASSESSMENT 0.0%U/W PROFIT PROVISION 11.1%TOTAL U/W PROFIT AND VARIABLE EXPENSE 30.6%
Exhibit 10.1
Privileged InformationProprietary and Confidential
CHUBBPennsylvania Homeowners
Underwriting Profit Provision Calculation
The following calculation was used to calculate an appropriate underwriting profit provision given items(1) through (5) below:
ROE = (UW * PS) * (1 - CTX) + (II * PS) * (1 – ETX) + YS * (1 – ETX)
Item Description Value1 . ROE After-Tax Expected Statutory Return on Equity 12.1%2 . II Investment Income Yield on Policyholder Funds as a % of Premium (See Exhibit 11.1) 1.50%3 . PS Premium to Surplus Ratio (Based on three year average from Annual Statement) 0.704 . YS Investment Income Yield on Surplus (See Exhibit 11.1) 3.10%5 . CTX Corporate Tax Rate 35.0%6 . ETX Effective Tax Rate (See Exhibit 11.1) 5.62%
7 . UW Underwriting Profit as a Percentage of Premium Calculated 17.9%Selected 11.1%
Exhibit 11.1
FEDERAL COMBINED INSURANCE COMPANIESSTATE OF PENNSYLVANIA
ANNUAL STATEMENT LINE 4 -- HOMEOWNERS CALCULATION OF INVESTMENT INCOME OFFSET
A. Direct Earned Premiums for Calendar Year 2015 (see Sheet 2) 89,067,294
B. Unearned Premium Reserve Subject to Investment (see Sheet 2)
1. Mean Unearned Premium Reserve for Calendar Year 2015
a. Unearned Premium Reserve as of 12/31/15 46,792,486b. Unearned Premium Reserve as of 12/31/14 47,012,528c. Mean Unearned Premium Reserve (a + b) ÷ 2 46,902,507
2. Deduction for Prepaid Expenses
a. Prepaid Expense Provisions:1. Commissions & Brokerage (excluding GSC) 16.0%2. Other Acquisition Expenses 7.5%3. 50% of General Expenses 1.0%4. Taxes, Licenses, & Fees 2.3%5. Ceded Reinsurance Premium 0.0%6. Total 26.8%
b. Deduction for Prepaid Expenses (B.1.c x B.2.a.6) 12,566,659
3. Deduction for Federal Taxes Payable (B.1.c x 7.0%) 3,283,175(see Sheet 2)
4. Deduction for Delayed Remission of Premiums
a. Average Agents' Balances Percentage (see Sheet 2) 19.80%b. Delayed Remission of Premiums (A x B.4.a) 17,635,324
5. Net Unearned Premium Reserve Subject to Investment 13,417,349(B.1.c - B.2.b - B.3 - B.4.b)
C. Loss Reserves Subject to Investment (see Sheet 2)
1. Expected Incurred Loss & LAE Ratio 59.85%
2. Average Reserve to Incurred Loss & LAE Ratio 0.573
3. Expected Mean Loss and Loss Adjustment Expense Reserve 30,543,264(A x C.1 x C.2)
D. Net Subject to Investment (B.5 + C.3) 43,960,613
E. Average Rate of Return on Invested Assets (see Sheet 2) 3.10%
F. Expected Investment Earnings (D x E) 1,362,779
G. Ratio of Investment Earnings to Earned Premium, 1.50%equals Investment Income Offset (F ÷ A)
H. Effective Tax Rate on Investment Income 5.62%
I. After-tax Ratio of Investment Earnings to Earned Premium 1.42%(G x (1 - H))
Exhibit 11.2
FEDERAL COMBINED INSURANCE COMPANIESSTATE OF PENNSYLVANIA
ANNUAL STATEMENT LINE 4 -- HOMEOWNERS CALCULATION OF INVESTMENT INCOME OFFSET
Item A Earned premiums are from the Federal Combined Annual Statement forLine 4 -- Homeowners : (Page 15, Line 4).
Item B.1 Unearned premium reserves are from the Federal Combined Annual Statement forLine 4 -- Homeowners : (Page 15, Line 4).
Item B.2 Production costs and a significant portion of other underwriting expenses (excluding lossadjustment expenses) are incurred as soon as the policy is written and before the premium is earned. As a result, these monies are not available for investment.
Item B.3 The Tax Reform Act of 1986 taxes 20% of the unearned premium reserve. At a corporatetax rate of 35%, this tax equals 7.0% (0.20 x 0.35 = 0.070) of the unearned premiumreserve. As a result, these monies are not available for investment.
Item B.4 The average agents' balances percentage is based on the following informationfor all lines of business from the Federal Combined Annual Statement:
Dollars in Thousands 20151. Net Earned Premium (Page 4, Line 1) 10,348,0472. Current Agents' Balances (Page 2, Lines 13.1 + 13.2) 2,048,3873. Prior Agents' Balances (Page 2, Lines 13.1 + 13.2) 2,050,5724. Mean Agents' Balances [(2) + (3)] ÷ 2 2,049,4795. Average Agents' Balances Percentage (4) ÷ (1) 19.80%
Item C.1 The expected incurred loss & loss adjustment expense ratio is 1 - Total Expenses (excl ceded reins prem)where Total Expenses (excl ceded reins prem) = B.2.a.6 + GSC + 50% Gen Exp + Profit & Cont - ceded reins premfor GSC = 1.2%, Profit & Contigencies = 11.1%.
Item C.2 The average reserve to incurred ratio is based on the following information based on the FederalCombined Annual Statement for Line 4 -- Homeowners : (Page 15, Line 4).
Dollars in Thousands 2013 2014 20151. Incurred Losses & LAE (000's) 828,638 1,207,589 1,272,3832. Current Unpaid Losses and LAE (000's) 523,522 581,597 613,8053. Prior Unpaid Losses and LAE (000's) 843,891 523,522 581,5974. Mean Loss & LAE Reserves [(2) + (3)] ÷ 2 683,707 552,560 597,7015. Ratio (4) ÷ (1) 0.825 0.458 0.4706. Average Reserve to Incurred Ratio 0.584
7. Estimated Reserve Discount 5.57%8. Federal Taxes Payable (% of Reserve) 0.019
[ (7) x 35% ]9. (6) x [(1.000 - (8)] 0.5730
Item E The average rate of return on invested assets is based on the following information for all linesof business from the Federal Combined Annual Statement.
Dollars in Thousands 2013 2014 20151. Net Investment Income Earned (Page 4, Line 9) 1,186,079 999,121 1,071,4442. Cash and Invested Assets (Page 2, Line 10) 34,771,379 35,423,377 35,351,0623. Rate of Return Percentage (1) ÷ (2) 3.40% 2.80% 3.00%4. Selected Rate of Return on Invested Assets 3.10%
Exhibit 12.3
Buhlmann BuhlmannActual Straub Straub Cred
Region Relativity Credibility RelativityPennsylvania 1.030 0.965 1.029Mid-Atlantic 0.924 0.989 0.925US Total 1.000 1.000
Selected 1.029
CHUBBHomeowners Insurance
Fire: State Offset FactorsBased on 20 year Credibility Weighted Frequency
(1) (2) (3) (4) (5) (6)
Proposed Territory
Total Locations
% Distribution
Current Base Rate
Proposed Base Rate
Base Rate Change
Premium At Current Rates
001 887 4.1% 1,174 1,231 4.9% 3,503,676005 136 0.6% 845 886 4.9% 488,629006 172 0.8% 630 661 4.9% 569,515007 167 0.8% 601 630 4.9% 485,984008 124 0.6% 845 886 4.9% 440,207009 48 0.2% 888 931 4.9% 162,187010 5 0.0% 717 752 4.9% 16,669012 249 1.2% 630 661 4.9% 689,800014 651 3.0% 1,174 1,231 4.9% 3,494,672021 96 0.4% 794 832 4.9% 260,110022 117 0.5% 630 661 4.9% 372,312023 191 0.9% 601 630 4.9% 565,577024 13 0.1% 794 832 4.9% 46,527025 27 0.1% 601 630 4.9% 76,842027 121 0.6% 601 630 4.9% 363,380031 25 0.1% 669 702 4.9% 69,059035 26 0.1% 818 858 4.9% 103,221037 3 0.0% 888 931 4.9% 16,289051 11 0.1% 818 858 4.9% 34,669052 168 0.8% 818 858 4.9% 465,373053 88 0.4% 717 752 4.9% 249,363054 97 0.5% 845 886 4.9% 246,668055 310 1.4% 792 831 4.9% 785,018056 12 0.1% 888 931 4.9% 45,081057 22 0.1% 794 832 4.9% 78,048058 263 1.2% 669 702 4.9% 901,660059 308 1.4% 669 702 4.9% 980,212061 28 0.1% 717 752 4.9% 77,428071 22 0.1% 717 752 4.9% 102,871073 830 3.9% 830 870 4.9% 3,598,105074 55 0.3% 792 831 4.9% 153,767075 390 1.8% 818 858 4.9% 1,216,162076 10 0.0% 738 774 4.9% 18,430077 574 2.7% 818 858 4.9% 2,020,027081 294 1.4% 818 858 4.9% 871,728082 66 0.3% 818 858 4.9% 233,922083 1,553 7.2% 830 870 4.9% 5,592,051086 72 0.3% 1,068 1,120 4.9% 343,997087 87 0.4% 888 931 4.9% 228,826088 16 0.1% 818 858 4.9% 68,608089 37 0.2% 845 886 4.9% 169,930090 174 0.8% 630 661 4.9% 555,323091 29 0.1% 818 858 4.9% 91,084092 748 3.5% 839 880 4.9% 2,099,685093 69 0.3% 845 886 4.9% 250,867094 24 0.1% 818 858 4.9% 67,217095 940 4.4% 1,013 1,062 4.9% 3,406,526096 15 0.1% 818 858 4.9% 55,302099 33 0.2% 717 752 4.9% 103,694100 156 0.7% 601 630 4.9% 450,885101 386 1.8% 1,068 1,120 4.9% 1,705,945102 14 0.1% 717 752 4.9% 32,573104 6 0.0% 818 858 4.9% 13,582106 1 0.0% 818 858 4.9% 1,403107 103 0.5% 818 858 4.9% 295,716108 188 0.9% 818 858 4.9% 440,794109 35 0.2% 818 858 4.9% 88,046110 242 1.1% 818 858 4.9% 764,715111 38 0.2% 818 858 4.9% 106,167113 43 0.2% 818 858 4.9% 114,602114 767 3.6% 818 858 4.9% 2,858,012115 414 1.9% 818 858 4.9% 1,131,864116 1 0.0% 818 858 4.9% 3,388117 9 0.0% 818 858 4.9% 21,068119 21 0.1% 818 858 4.9% 58,409120 1,080 5.0% 818 858 4.9% 4,037,016121 378 1.8% 818 858 4.9% 1,062,371122 2 0.0% 818 858 4.9% 2,341123 223 1.0% 818 858 4.9% 683,330124 1 0.0% 818 858 4.9% 2,103125 24 0.1% 818 858 4.9% 67,664128 1 0.0% 818 858 4.9% 1,506129 1 0.0% 818 858 4.9% 2,341131 137 0.6% 818 858 4.9% 370,671132 943 4.4% 1,013 1,062 4.9% 4,877,114133 419 1.9% 853 895 4.9% 1,819,640134 1,027 4.8% 884 927 4.9% 4,764,902135 2,248 10.5% 1,013 1,062 4.9% 10,366,209136 678 3.2% 1,013 1,062 4.9% 3,192,445137 1,088 5.1% 884 927 4.9% 3,853,568138 136 0.6% 853 895 4.9% 666,628139 124 0.6% 738 774 4.9% 345,492140 16 0.1% 1,013 1,062 4.9% 83,579141 154 0.7% 1,013 1,062 4.9% 837,107
Total 21,507 100.0% 81,959,496
(2) = (1) / (1 Tot)(5) = (4) / (3) -1(6) Premium based on inforce policies at current rates(7) Premium based on re-rating of the inforce policies with proposed changes(8) = (7) / (6) -1
Total In-Force Book
PennsylvaniaRate Level Effects By Territory
House & Vacation Forms
Rate Effect RangeTotal
Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
LT -5% 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0%-5% to 0% 18 0.1% -86 1 0.1% -265 2 0.2% -67 1 0.0%0% to 5% 15,945 74.1% 173 1,215 81.4% 144 773 77.8% 170 2,149 77.2%5% to 10% 5,418 25.2% 237 238 16.0% 203 217 21.8% 219 625 22.4%10% to 20% 124 0.6% 727 37 2.5% 866 2 0.2% 1,137 9 0.3%20% to 30% 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0%
GT 30% 2 0.0% 204 1 0.1% 198 0 0.0% 0 0 0.0%Total 21,507 100.0% 192 1,492 100.0% 171 994 100.0% 182 2,784 100.0%
Max % Change (1) 58.9% (3) 39.4% (5) 14.2% (7)Max $ Impact (2) 4,368 (4) 3,385 (6) 1,521 (8)
*Rate effects based on residence premium(1) $1.65M house, $2,500 deductible, $209 increase (8) $3.01 (2) $6.24M house, $5,000 deductible, 15.3% increase (9) $0.61 (3) $0.58M house, $500 deductible, $198 increase (10) $22. (4) $3.5M house, $10,000 deductible, 11.1% increase (11) $1.6 (5) $0.79M house, $1,000 deductible, $753 increase (12) $6.2 (6) $4.79M house, $5,000 deductible, 11.4% increase (13) $1.7 (7) $0.42M house, $2,500 deductible, $159 increase (14) $24.
PennsylvaniaRate Level Effects Histogram
All Companies Federal Vigilant Pacific Indem
Exhibit 14.1
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
Total Locations % Distn
Average Dollar Impact
0 0 0.0% 0 0 0.0% 0 0 0.0% 0-148 5 0.0% -57 7 0.2% -93 2 0.1% -33149 7,523 74.6% 192 3,193 69.1% 150 1,092 71.6% 190196 2,531 25.1% 251 1,387 30.0% 231 420 27.5% 265534 30 0.3% 620 34 0.7% 798 12 0.8% 4410 0 0.0% 0 0 0.0% 0 0 0.0% 00 0 0.0% 0 1 0.0% 209 0 0.0% 0
160 10,089 100.0% 208 4,622 100.0% 179 1,526 100.0% 212
16.7% (9) 18.9% (11) 58.9% (13) 14.7%1,514 (10) 3,334 (12) 4,368 (14) 2,444
M house, $5,000 deductible, 12.3% increase M house, $5,000 deductible, $441 increase .79M house, $10,000 deductible, 8.0% increase 65M house, $2,500 deductible, $209 increase 24M house, $5,000 deductible, 15.3% increase 74M house, $5,000 deductible, $886 increase .5M house, $5,000 deductible, 6.3% increase
m
mnity Great Northern Chubb National Chubb Indemnity
Exhibit 15.1
Size of Risk $500 - $50,000 $50,000 - $100,000 $100,000 - $250,000 $250,000 - $500,000 $500,000 - $750,000 over $750,000$0 - $999,999 834,848,763 147,789,146 147,181,960 88,112,615 45,943,476 73,085,519
$1,000,000 - $2,499,999 943,011,116 223,855,342 238,167,654 156,762,488 85,873,976 283,757,341 $2,500,000 - $4,999,999 318,228,418 101,276,850 115,490,827 74,885,347 42,457,279 226,377,226 $5,000,000 - $7,499,999 74,882,903 27,455,478 33,639,919 24,364,496 12,567,963 79,241,947
$7,500,000 + 65,584,980 25,681,895 32,374,588 23,877,645 14,880,069 112,056,608
Size of Risk 50,000$ 100,000$ 250,000$ 500,000$ 750,000$ $0 - $999,999 62.4% 73.5% 84.5% 91.1% 94.5%
$1,000,000 - $2,499,999 48.8% 60.4% 72.7% 80.9% 85.3%$2,500,000 - $4,999,999 36.2% 47.7% 60.9% 69.4% 74.2%$5,000,000 - $7,499,999 29.7% 40.6% 53.9% 63.6% 68.6%
$7,500,000 + 23.9% 33.3% 45.0% 53.7% 59.2%
Size of Risk 50,000$ 100,000$ 250,000$ 500,000$ 750,000$ $0 - $999,999 62.5% 75.0% 85.0% 90.0% 95.0%
$1,000,000 - $2,499,999 47.5% 60.0% 72.5% 80.0% 85.0%$2,500,000 - $4,999,999 35.0% 47.5% 62.5% 70.0% 75.0%$5,000,000 - $7,499,999 30.0% 40.0% 55.0% 62.5% 65.0%
$7,500,000 + 25.0% 32.5% 47.5% 55.0% 57.5%
Size of Risk 50,000$ 100,000$ 250,000$ 500,000$ 750,000$ $0 - $999,999 0.461 0.353 0.267 0.224 0.181
$1,000,000 - $2,499,999 0.590 0.482 0.375 0.310 0.267 $2,500,000 - $4,999,999 0.698 0.590 0.461 0.396 0.353 $5,000,000 - $7,499,999 0.741 0.655 0.526 0.461 0.439
$7,500,000 + 0.784 0.720 0.590 0.526 0.504
Size of Risk 100,000$ 250,000$ 500,000$ 750,000$ $0 - $999,999 0.77 0.58 0.49 0.39
$1,000,000 - $2,499,999 0.82 0.63 0.53 0.45 $2,500,000 - $4,999,999 0.85 0.66 0.57 0.51 $5,000,000 - $7,499,999 0.88 0.71 0.62 0.59
$7,500,000 + 0.92 0.75 0.67 0.64
(1) Loss Elimination Ratio = { Losses between $500 and New Deductible } / { Total Losses above $500 }(2) Loss elimination ratios selected in order to smooth out results where data lacks credibility.(3) Large Deductible Factors over Standard Deductible
= { Permissible Loss Ratio * (1 - Loss Elimination Ratio) + Fixed Expenses } / { 1 - Variable Expenses - UW Profit }(4) Large Deductible Factors Relative to $50,000 = Large Deductible Factor (3) / Implied Deductible Factor at $50,000
CHUBBLarge Deductible Factors by Size of Risk
based on 5 years of Countrywide Loss and ALAE as of 06/30/2016
Ground up Loss by Layer
Loss Elimination Ratios over $500 Standard Deductible (1)
Selected Loss Elimination Ratios over $500 Standard Deductible (2)
Large Deductible Factors over $500 Standard Deductible (3)
Large Deductible Factors Relative to $50,000 Deductible (4)
Exhibit 15.2
Size of RiskCurrent $50,000
Deductible Factors Implied $100,000 Deductible Factors
Implied $250,000 Deductible Factors
Implied $500,000 Deductible Factors
Implied $750,000 Deductible Factors
$15,000 0.400 0.308 0.232 0.196 0.156$50,000 0.400 0.308 0.232 0.196 0.156
$500,000 0.400 0.308 0.232 0.196 0.156$1,000,000 0.400 0.328 0.252 0.212 0.180$2,500,000 0.425 0.361 0.281 0.242 0.217$5,000,000 0.450 0.396 0.320 0.279 0.266$7,500,000 0.564 0.519 0.423 0.378 0.361
Size of Risk $100,000 $250,000 $500,000 $750,000$15,000 0.300 0.225 0.175 0.150$50,000 0.300 0.225 0.175 0.150
$500,000 0.300 0.225 0.175 0.150$1,000,000 0.330 0.250 0.200 0.175$2,500,000 0.375 0.300 0.250 0.215$5,000,000 0.400 0.350 0.300 0.260$7,500,000 0.500 0.450 0.400 0.350
(5) Implied Large Deductible Factors = Large Deductible Factors Relative to $50,000 (4)* Current Deductible Factor at $50,000
$0 - $999,999
Large Deductible Factors by Size of Risk
$1,000,000 - $2,499,999$2,500,000 - $4,999,999$5,000,000 - $7,499,999
$7,500,000 +
Selected Large Deductible Factors (House and R/C/C)
based on 5 years of Countrywide Loss and ALAE as of 06/30/2016
Implied Large Deductible Factors (5)
Size of Risk Range$0 - $999,999
$0 - $999,999
CHUBB
Masterpiece Rate and Rule Change
Company Filing No.: 16-11049-RR
State: Pennsylvania Applicable To: Rate and Describe Change Rule Section
Home and Contents: Rules We introduced a $100,000 deductible. Home and Contents: Rules – Discounts We revised the New house discount to apply to houses built within the last ten years.
Home and Contents: Rates We revised:
Contents adjustment;
Deductible factor charts to introduce a $100,000 base deductible;
Superior protection discounts under Discounts and Surcharges charts; and
New house discount.
Home and Contents: Rules (new page 5d.1) We introduced High base deductibles of $250,000, $500,000 and
$750,000. Home and Contents: Rates (new page 7a.1) We introduced High base deductible factors for $250,000, $500.000 and
$750,000 deductibles.
Date: 11/2/16
Home and Contents: Rules This manual is for policies insured with us for the applicable rates for Federal Insurance Company, Chubb Indemnity Insurance Company, Chubb National Insurance Company, Great Northern Insurance Company, Pacific Indemnity Company, and Vigilant Insurance Company. Eligibility All homes, except city homes, must be used as one−family or two−family residences. A city home must be an owner occupied rowhouse with no more than one rental unit and must meet all of the following criteria: • masonry construction • built prior to 1940 • renovated plumbing, heating and electrical systems. Contents coverage may be written for the owner occupied unit only. A vacation home must be an owner occupied house, other than a primary residence, but may be rented to others for up to 15 days in any given policy term. Contents coverage may be written for a house owned by the insured only if house coverage is included in the policy. Coverage options Property covered
Types of coverage
Payment basis (loss settlement)
House (dwelling only)
Deluxe (all risk) City home house (all risk) Vacation home (all risk)
Extended replacement cost, verified replacement cost or conditional replacement cost
Contents (with Deluxe house)
Deluxe (all risk) Standard (named perils) Fire (named perils, without theft)
Replacement cost or actual cash value Replacement cost or actual cash value Actual cash value
Contents (with City home house)
City home contents (all risk)
Replacement cost or actual cash value
Contents (with Vacation home house)
Deluxe (all risk) Standard (named perils)
Replacement cost or actual cash value
Contents (Condominium, Cooperative, or Renters)
Deluxe (all risk) Standard (named perils)
Replacement cost or actual cash value
12/07/15 Pennsylvania Masterpiece Manual Home and Contents: Rules Page 5.1 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Rules Minimum amount These are the minimum amounts of coverage: Deluxe house or vacation home house amount with or without contents: $ 50,000 City home house amount with city home contents: $400,000* City home house amount without contents: $400,000** Condominium or cooperative: $ 15,000 Renters: $ 15,000 * City home contents coverage may not be less than 10% of City home house coverage. ** City home house without contents is only available if the renovation surcharge applies (house is being rebuilt/course of construction).
Base premium determination (not applicable to City home house) The base premium is calculated for: • $100,000 house coverage insured on an extended replacement cost basis, (or $40,000 condominium, cooperative, or
renters contents coverage insured on a replacement cost basis); • $50,000 contents coverage insured on a replacement cost basis (for a Deluxe house with Deluxe or Standard
contents coverage only); • $30,000 contents coverage insured on a replacement cost basis (for a vacation home house with deluxe or standard
contents coverage only); • $20,000 other permanent structures coverage for a deluxe house or $10,000 other permanent structures coverage for a
vacation home house (or $4,000 additions and alterations coverage for a condominium, cooperative, or renters); • $50,000 personal liability coverage; and • $500 deductible. Fire protection The fire protection factor (not applicable to City home house) and fire protection code is determined by the type of coverage for the residence, the distance a fire hydrant or fire station is from the residence and whether the residence has a central station or direct reporting fire alarm. In lieu of a fire protection factor, a separate discount is available for fire protection if a city home has a direct or central station reporting fire alarm. Value factor (not applicable to City home house) The value factor is determined by using the type of coverage for the location, the fire protection code, and the value of the building or contents. For a house, use the value of the highest valued building at the location (excluding contents) to determine the coverage amount. For a condominium, cooperative, or rental unit, use the value of contents to determine the amount of coverage. Deductibles All homes and contents coverages must have the same deductible. If a policy has a deductible higher than $50,000, the deductible waiver will not apply. The following flat deductibles are available: $250 $500 $1,000 $2,500 $5,000 $7,500 $10,000 $25,000 $50,000 $100,000 Underinsured houses If a house is not insured to at least 90% of the amount of coverage we recommend, the payment basis will be conditional replacement cost. There is an undervalue surcharge when coverage is below 80% of the amount of coverage we recommend.
12/07/15 Pennsylvania Masterpiece Manual Home and Contents: Rules Page 5.2 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Rules Renovated or newly constructed houses If new construction of a house or other permanent structures or additions, alterations or renovations to the existing house or other permanent structures occurs that results in the insured living out of the house, the company must be notified. Vacant houses If an insured house will be vacant (substantially empty of furnishings and contents) for more than 30 days, the company must be notified. Personal liability Liability is rated in the state where the Primary residence (first location with liability) is located regardless of the location of any additional residence(s). If liability is not requested, we apply a discount for each location that building and/or contents coverage is provided.
12/07/15 Pennsylvania Masterpiece Manual Home and Contents: Rules Page 5.3 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Rules – Discounts Applicable to house and contents, condominium, cooperative, and renters The following discounts are applied to house and contents, condominium, cooperative and renters coverage, if applicable. Burglar alarm – Applicable if the residence has a central station or direct reporting theft or burglar alarm. This discount is not applicable to Deluxe house without contents or with fire contents. Fire resistive – Applicable if the house or the unit is in a building where exterior walls, floors, and roof are built of masonry or other fire resistive materials with a rating of two hours or more. Suburban rating (not applicable to city homes) – Applicable to a residence if the following conditions are met: • the residence is within 3 miles of the first responding fire department which:
• has at least 2 pumpers; and • brings at least 6,000 gallons of water; or • brings at least 4,000 gallons of water and has dual response or mutual aid agreement(s) with fire department(s)
within 5 miles of the residence which will supply an additional 2,000 gallons of water; and • the ISO protection class is not greater than 9. Gated community (not applicable to city homes) – Applicable if the residence is located in a gated community. A residence is in a gated community if: • vehicle access is limited to entrances controlled by guards or locked gates at all times; • proper identification is required to enter; and • visitors are announced. This discount is not intended for high rise buildings. Gated community patrol service (not applicable to city homes) – Applicable if the residence in the gated community has a fire and burglar alarm that when activated, alerts the community’s 24-hour patrol service to dispatch a guard to the residence. Premier client – Applicable in one of two ways, based on either customer tenure or risk tenure: • customer tenure - applied for a new location if the insured has another location insured by us for three or more
consecutive years. The discount will apply to the new location for the first three policy terms. Once a location has a risk tenure of three years or more, the discount will be based on the risk tenure provided we did not pay any property claims for that location; or
• risk tenure - applied for each location insured by us for three or more consecutive years that we did not pay any property claims for that location within the last three years. If a claim we paid is reimbursed in full through salvage and/or subrogation, that claim may be waived when determining eligibility for this discount. This discount is not applied if we paid any property claims for a location due to a loss caused by a catastrophe.
Portfolio discount – home with valuable articles – Applicable for a primary, owner-occupied house, condominium, cooperative or a primary occupied rental unit when valuable articles coverage, meeting certain eligibility (see Charts section), is written on the same policy at the same location. Portfolio discount – home with auto – Applicable for a residence, if the residence is not seasonal, secondary or rented to others, listed on the policy when the insured has a good standing active Masterpiece automobile policy with us. If the residence is a house, the house must have contents coverage listed on the policy. A city home may have up to one rental unit and still qualify for this discount. The automobile policy must have at least one private passenger vehicle with physical damage coverage garaged in the state of Pennsylvania at that location. Payment history – Applicable for a residence when the insured (not a mortgagee or lienholder) has paid the premium in full at least two years within the past five years. The five year eligibility period begins with the policy term immediately following the policy term where the premium was paid by the mortgagee or lienholder, if applicable. Lien free (not applicable to renters) – Applicable if the residence has no mortgage or lien. This discount is not applied if the residence is vacant, under the course of construction or rented to others.
12/07/15 Pennsylvania Masterpiece Manual Home and Contents: Rules – Discounts Page 5a.1 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Rules – Discounts Applicable to house and contents only The following additional discounts are applied to house and contents coverage, if applicable. Residential sprinkler system – Applicable if the living areas, basement and heating system area have an approved and properly maintained sprinkler system. New house (not applicable to city homes) – Applicable if the house was built within the last seven ten years. Renovated house (not applicable to city homes) – Applicable if the house was renovated within the last six years. If this renovated house discount applies, the new house discount cannot. To qualify as renovated, the plumbing and heating systems and the electrical system must have been completely upgraded including new wiring, receptacles, circuit boxes and conduits in exposed areas. The renovation must have been inspected and approved by licensed civil authorities in compliance with the local building codes. Superior protection (not applicable to city homes) – Applicable if one or more of the protection characteristics on the superior protection discount chart apply. Applicable to City home house and City home contents The following additional discounts are applied to City home house and City home contents coverage, if applicable. Temperature monitoring system – Applicable if the city home has a temperature monitoring system which reports directly into a central station or direct fire alarm. Restoration – Applicable if the city home underwent restoration of its plumbing or electrical systems, heating/A.C./ventilating system, or its roof or façade repointing within the last ten years. Applicable to condominium, cooperative, and renters The following additional discounts are applied to condominium, cooperative, and renters coverage, if applicable. Building security protection – Applicable to a condominium, cooperative, or rental unit meeting all of the following criteria: • building entrances are at all times:
• manned; or • locked and secured by a central station or direct reporting burglar alarm;
• visitors are announced; and • elevators are either manned or key controlled or must be accessed through a locked door. Building fire protection – Applicable to a condominium, cooperative, or rental unit meeting all of the following criteria: • approved and properly maintained sprinkler systems have been installed throughout the building; and • common areas have a central station or direct reporting fire alarm or fire alarm which alerts the building security staff.
12/07/15 Pennsylvania Masterpiece Manual Home and Contents: Rules – Discounts Page 5a.2 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Base premium chart (not applicable to City home house)
Type of coverage
Base premium
Deluxe house/Vacation home house $ 1,174 Condominium/Cooperative $ 259 Renters $ 269
Coverage type chart (not applicable to City home house)
Coverage Factor Deluxe house/deluxe contents 1.100 Deluxe house/standard contents 1.000 Deluxe house without contents or with fire contents* 0.750 Vacation home house with deluxe contents 0.990 Vacation home house with standard contents 0.900 Deluxe condominium or cooperative 1.350 Standard condominium or cooperative 1.000 Deluxe renters 1.350 Standard renters 1.000
*There is an additional charge for Fire contents coverage. City home house base premium chart
Writing Company
Type of coverage
Rate per $100 all territories
Federal Insurance Company, Vigilant Insurance Company, Pacific Indemnity Company
City home house $ 0.289
Great Northern Insurance Company, Chubb Indemnity Insurance Company, Chubb National Insurance Company
City home house $ 0.272
Other permanent structures adjustment - City home house
For each 1% above 20% of house coverage: For each 1% below 20% of house coverage: 0.50% 0.25%
Sinkhole collapse coverage If sinkhole collapse coverage is requested for a house, the factor is 20%. Discount Writing Company Charts (not applicable to City home house)
Deluxe house/ vacation home
house
Condominium or
cooperative
Renters Vigilant Insurance Company 0.800 0.900 0.900 Pacific Indemnity Company 0.712 0.900 0.900 Great Northern Insurance Company, Chubb National Insurance Company, Chubb Indemnity Insurance Company
0.663 0.850 0.850
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.1 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Territory relativity chart (not applicable to City home house)
Territory
Deluxe house/vacation
home house
Condominium or
cooperative
Renters 001 1.000 1.000 1.000 005 0.720 0.519 0.519 006 0.537 0.519 0.519 007 0.512 0.519 0.519 008 0.720 0.519 0.519 009 0.756 0.519 0.519 010 0.611 0.549 0.549 012 0.537 0.519 0.519 014 1.000 1.000 1.000 021 0.676 0.549 0.549 022 0.537 0.519 0.519 023 0.512 0.519 0.519 024 0.676 0.549 0.549 025 0.512 0.519 0.519 027 0.512 0.519 0.519 031 0.570 0.519 0.519 035 0.697 0.610 0.610 037 0.756 0.519 0.519 051 0.697 0.519 0.519 052 0.697 0.519 0.519 053 0.611 0.549 0.549 054 0.720 0.519 0.519 055 0.675 0.549 0.549 056 0.756 0.519 0.519 057 0.676 0.549 0.549 058 0.570 0.519 0.519 059 0.570 0.519 0.519 061 0.611 0.549 0.549 071 0.611 0.549 0.549 073 0.707 0.519 0.519 074 0.675 0.549 0.549 075 0.697 0.519 0.519 076 0.629 0.610 0.610 077 0.697 0.519 0.519 081 0.697 0.519 0.519 082 0.697 0.519 0.519 083 0.707 0.747 0.747 086 0.910 0.747 0.747 087 0.756 0.519 0.519 088 0.697 0.519 0.519 089 0.720 0.519 0.519 090 0.537 0.519 0.519 091 0.697 0.519 0.519 092 0.715 0.549 0.549 093 0.720 0.519 0.519 094 0.697 0.519 0.519 095 0.863 0.747 0.747 096 0.697 0.519 0.519 099 0.611 0.549 0.549 100 0.512 0.519 0.519
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.2 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Territory relativity chart (not applicable to City home house) (continued)
Territory
Deluxe house/vacation
home house
Condominium or
cooperative
Renters 101 0.910 0.747 0.747 102 0.611 0.549 0.549 104 0.697 0.610 0.610 105 0.697 0.610 0.610 106 0.697 0.610 0.610 107 0.697 0.833 0.833 108 0.697 0.833 0.833 109 0.697 0.610 0.610 110 0.697 0.610 0.610 111 0.697 0.610 0.610 112 0.697 0.610 0.610 113 0.697 0.610 0.610 114 0.697 0.833 0.833 115 0.697 0.610 0.610 116 0.697 0.610 0.610 117 0.697 0.610 0.610 119 0.697 0.610 0.610 120 0.697 0.610 0.610 121 0.697 0.610 0.610 122 0.697 0.833 0.833 123 0.697 0.610 0.610 124 0.697 0.610 0.610 125 0.697 0.610 0.610 126 0.697 0.833 0.833 127 0.697 0.610 0.610 128 0.697 0.610 0.610 129 0.697 0.610 0.610 130 0.697 0.610 0.610 131 0.697 0.610 0.610 132 0.863 0.747 0.747 133 0.727 0.747 0.747 134 0.753 0.519 0.519 135 0.863 0.747 0.747 136 0.863 0.747 0.747 137 0.753 0.519 0.519 138 0.727 0.747 0.747 139 0.629 0.610 0.610 140 0.863 0.747 0.747 141 0.863 0.747 0.747
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.3 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Coverage adjustments charts Contents adjustment Additional deluxe or standard contents purchased:
Factor
Reduced deluxe or standard contents purchased:
Factor For each 1% of contents above 50% of deluxe house
0.40%
For each 1% of contents below 50% of deluxe house
0.35% For each 1% of contents above 30% of vacation home house
0.40%
For each 1% of contents below 30% of vacation home house
0.35%
Reduced deluxe or standard contents purchased:
Factor For each 1% of the first 10% contents below 50% of deluxe house coverage
For each 1% of contents below 40% of deluxe house coverage
For each 1% of contents below 30% of vacation home house coverage
For deluxe house the only contents value available below 5% is zero. For vacation home house the contents cannot be reduced below 5%.
Fire contents (not applicable to City home house). For every 1% of house coverage that is requested for the fire contents amount, the factor is 0.45% City home contents
Writing Company
Amount of coverage
Rate per $100 all territories
Federal Insurance Company, Vigilant Insurance Company, Pacific ndemnity Company
50% or more of house coverage $ 0.312 40%-49% of house coverage $ 0.364 30%-39% of house coverage $ 0.416 20%-29% of house coverage $ 0.467 10%-19% of house coverage $ 0.520
Great Northern Insurance Company, Chubb Indemnity Insurance Company,
Chubb National Insurance Company
50% or more of house coverage $ 0.293 40%-49% of house coverage $ 0.342 30%-39% of house coverage $ 0.390 20%-29% of house coverage $ 0.450 10%-19% of house coverage $ 0.489
Other permanent structures adjustment For each 1% above 20% of deluxe
house and above 10% of vacation home house coverage:
For each 1% below 20% of deluxe house and below 10% of vacation home house coverage:
0.50% -0.25%
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.4 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Coverage adjustments charts (continued) Additions and alterations adjustment
Additional additions and alterations purchased:
For each 1% above 10% of additional additions and alterations purchased:
First 20% 0.50% Additional 20%+ 0.53%
Reduced additions and alterations purchased. For every 1% of additions and alterations coverage below 10% of contents coverage, the factor is 0.50%. Actual cash value adjustment
Actual cash value discount Apply if actual cash value payment basis applies in lieu of replacement cost payment basis
Deluxe house/ vacation home house with deluxe or standard contents
City home house with City home contents
Condominium, cooperative, or renters
9% 9% 23%
Mold remediation expenses chart
Mold remediation expenses coverage House Condominiums, cooperatives, or renters Percentage of house coverage
Surcharge
Percentage of combined amount of contents and additions and alterations
Surcharge
10% 28% 10% 17.5% 25% 36% 25% 22.5% 50% 44% 50% 27.5% 75% 52% 75% 32.5% 100% 60% 100% 37.5%
GreenWise upgrade coverage - houses Percentage of house coverage
Surcharge
10% 1% 25% 2% 50% 3% 75% 4% 100% 5%
GreenWise upgrade coverage – condominium or cooperatives Percentage of combined amount of contents and additions and alterations
Surcharge
10% 1% 25% 2% 50% 3% 75% 4% 100% 5%
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.5 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Coverage adjustments charts (continued) Fire protection chart (not applicable to City home house)
Fire protection factor
Fire station within five
miles of residence?
Fire hydrant within 1,000 feet of the
residence?*
Central station or direct
reporting fire alarm?
Deluxe house or vacation
home house
Condominium, cooperative, or renters
Fire protection code
Yes Yes Yes 0.95 0.95 A
No 1.00 1.00 A
No Yes 1.06 1.10 A No 1.18 1.26 B
No Yes Yes 1.10 1.15 A
No 1.26 1.31 B
No Yes 1.13 1.18 B No 1.38 1.40 B
*A 10,000 gallon water source (private hydrant, pool, etc.) which is accessible year-round is also acceptable. Value factor chart (not applicable to City Home House) Fire protection code. Use the fire protection chart to determine whether a residence is fire protection code A or B. Value of building or contents. For a house, use the value of the highest valued building at the location (excluding contents) to determine the coverage amount. For a condominium, cooperative, or rental unit, use the value of contents to determine the amount of coverage. Round the value to the nearest $1,000. If the building or contents value is not in the chart, calculate your value factor using the nearest value factor and the factor increase per $1,000. EXAMPLE: $153,000 deluxe house or vacation home house with deluxe contents, fire protection code A For $150,000 the value factor is 1.4500; the value factor per $1,000 is 0.00900. Figure the difference between the value of the building or contents and the nearest value in the chart (less than or equal to) and divide by 1,000. This provides the number of thousands between the values. $153,000 -$150,000 $ 3,000 ÷ $1,000 = 3 Multiply the value factor per 1,000 by the number of thousands between values 3 x 0.0090 = 0.027 Add this amount to the $150,000 value factor 1.4500 1.4500 + 0.0270 = 1.4770 The result, 1.4770, is the value factor for this example. Deluxe house or vacation home house Fire protection code A Fire protection code B Value of building Value factor Value factor per $1,000 Value factor Value factor per $1,000 $ 50,000 0.5000 0.01000 0.5000 0.01000 $ 55,000 0.5500 0.01000 0.5500 0.01000 $ 60,000 0.6000 0.01000 0.6000 0.01000 $ 65,000 0.6500 0.01000 0.6500 0.01000 $ 70,000 0.7000 0.01000 0.7000 0.01000 $ 75,000 0.7500 0.01000 0.7500 0.01000 $ 80,000 0.8000 0.01000 0.8000 0.01000 $ 85,000 0.8500 0.01000 0.8500 0.01000 $ 90,000 0.9000 0.01000 0.9000 0.01000
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.6 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts
$ 95,000 0.9500 0.01000 0.9500 0.01000 $ 100,000 1.0000 0.00900 1.0000 0.01134 $ 150,000 1.4500 0.00900 1.5670 0.01134 $ 250,000 2.3500 0.00760 2.7010 0.00958 $ 500,000 4.2500 0.00700 5.0960 0.00882 $ 700,000 5.6500 0.00600 6.8600 0.00756 $ 1,000,000 7.4500 0.00600 9.1280 0.00756 $ 1,500,000 10.4500 0.00600 12.9080 0.00756 $ 3,000,000 19.4500 0.00620 24.2480 0.00782 $ 5,000,000 31.8500 0.00640 39.8880 0.00806 $ 7,500,000 47.8500 0.00640 60.0380 0.00806 $10,000,000 63.8500 0.00640 80.1880 0.00806 $20,000,000+ 127.8500 0.00640 160.7880 0.00806
Condominium, cooperative, or renters Fire protection codes A and B
Value of contents
Value factor
Value factor per $1,000
$ 15,000 0.3550 0.02580 $ 30,000 0.7420 0.02580 $ 40,000 1.0000 0.02800 $ 150,000 4.0800 0.02580 $ 1,000,000 26.0100 0.02580 $ 1,500,000 38.9100 0.02580 $ 3,000,000 77.6100 0.02580 $ 5,000,000 129.2100 0.02580
Deductible factor charts Deluxe house, Vacation home house, Condominium, Cooperative, or Renters:
Deluxe House, Vacation Home House Base deductible
Value of building
$250 $500 $1,000 $2,500 $5,000 $7,500 $10,000 $25,000 $50,000 $100,000
$ 15,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 $ 50,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 $ 500,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 $ 1,000,000 1.200 1.150 0.950 0.800 0.625 0.550 0.520 0.450 0.400 $ 2,500,000 1.200 1.150 1.100 0.835 0.750 0.650 0.545 0.490 0.425 $ 5,000,000 1.500 1.250 1.100 0.900 0.800 0.750 0.620 0.535 0.450 $ 7,500,000 and greater
1.500 1.300 1.250 0.950 0.900 0.850 0.800 0.750 0.564
We interpolate between the closest lower and higher listed values where applicable.
Condominium, cooperative, or renters Value of Contents and
Base deductible
A&A combined
$250 $500 $1,000 $2,500 $5,000 $7,500 $10,000 $25,000 $50,000 $100,000
$ 15,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 $ 50,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 $ 500,000 1.150 1.050 0.900 0.735 0.600 0.550 0.500 0.450 0.400 $ 1,000,000 1.200 1.150 0.950 0.800 0.625 0.550 0.520 0.450 0.400 $ 2,500,000 1.200 1.150 1.100 0.835 0.750 0.650 0.545 0.490 0.425 $ 5,000,000 1.500 1.250 1.100 0.900 0.800 0.750 0.620 0.535 0.450 $ 7,500,000 and greater
1.500 1.300 1.250 0.950 0.900 0.850 0.800 0.750 0.564
We interpolate between the closest lower and higher listed values where applicable.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.7 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Deductible factor charts (continued) City home house
Base deductible
Deductible
factors
Maximum amount
of change $ 250 1.250 No Maximum $ 500 1.120 No Maximum $ 1,000 1.000 -- $ 2,500 0.875 $ 1,500 $ 5,000 0.750 $ 3,000 $ 7,500 0.688 $ 4,500 $ 10,000 0.625 $ 7,000 $ 25,000 0.563 $ 9,000 $ 50,000 0.500 $13,000
$100,000 Discounts and surcharges charts
Burglar alarm Factor Deluxe house or vacation home house with deluxe or standard contents 0.95 Deluxe house with fire contents or no contents 1.00 Deluxe or standard condominium, cooperative, or renters 0.95
Discounts
Deluxe house
or vacation home house
Condominium,
cooperative, or renters
Gated community 5% 5% Gated community patrol service 5% 5% Residential sprinkler system 10% N/A Fire resistive 15% 15% Suburban rating discount 10% 10% Payment history
• 2 years paid in full; or • 3+ years paid in full
3% 5%
3% 5%
Lien free* 2.5% 2.5% Building security protection N/A 5% Building fire protection N/A 5%
*Not applicable to Renters policies.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.8 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Discounts and surcharges charts (continued) Portfolio discounts
Deluxe house,
City home house
Condominium, cooperative, or
renters Home with auto 10.0% 10.0% Home with valuable articles Minimum eligible amount of coverage
• the total of all itemized and/or blanket valuable articles is at least $250,000; or
• the total of all itemized and/or blanket valuable articles (excluding fine arts, if any) is at least $50,000
12.5% 12.5%
• the total of all itemized and/or blanket valuable articles is at least $100,000; or
• the total of all itemized and/or blanket valuable articles (excluding fine arts, if any) is at least $25,000
10.0% 10.0%
We will apply the highest percentage of discount for which the residence qualifies. * Portfolio discounts are not applied to the 25% maximum total discount for City home house.
Discounts
City home house (A maximum total discount of 25% applies to City home house)*
Fire alarm 5% Burglar alarm 5% Temperature monitoring system 5% Residential sprinkler system 10% Fire resistive 15% Payment history
• 2 years paid in full; or • 3+ years paid in full
3% 5%
Lien free* 2.5% * Lien free is not applied to the 25% maximum total discount for City home house. Restoration discount for City home house *
Restoration completed
within 5 years Restoration completed within 6-10 years
Plumbing system 2% 1% Electrical system 2% 1%
Heating/A.C./ventilating system 2% 1% Roof 2% 1% Façade repointing 2% 1%
* Restoration discounts are included in the 25% maximum total discount for City home house.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.9 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Superior protection
Superior protection discounts
Deluxe house
Vacation home house
Security protection for the entire external perimeter of the house consisting of any one or more of the following: • closed circuit TV cameras monitored 24 hours a day; • detection system, external to the residence which is motion
activated and monitored 24 hours per day; • 24 hour on site security guard.
5% 5%
Full time caretaker who lives at the residence year round. This discount applies only if a 24 hour on site security guard is not present.
2% 4%
24 hour signal continuity protection for central station or direct fire and burglar alarm systems which activates the alarm when interrupted.
2% 2%
Perimeter gate where vehicular and pedestrian access is limited to entrances controlled by locked or electronic gates. This discount does not apply if any other Gated community discount applies.
2% 2%
Sprinkler system water flow alarm which activates a central station or direct alarm.
2% 2%
Temperature monitoring system, to protect against freezing, which activates a central station alarm.
2% 4%
Permanently installed, electrical power back−up generator capable of servicing heat, light, alarm and sprinkler systems.
5% 5%
Explosive gas leakage detector which activates a central station or direct fire alarm.
2% 2%
Automatic seismic shut−off valve to gas lines which activates automatically in the event of an earthquake.
2% 2%
Lightning protection system having a U.L. Master Label and installed by a certified Lightning Protection Institute installer. The system must include lightning rods and lightning arresters protecting the electrical wiring and all electronic devices of the entire house.
2% 2%
Water leak detection and control system having a U.L. Master Label. The system must monitor all areas containing plumbing devices and outlets. In the event of a leak, this system must:
• activate a central station or direct alarm; or
% %
• include a control system that closes the master plumbing valve or
3%
3%
• include a control system that closes the master plumbing value and activates a central station or 5% 5% direct alarm. The maximum total discount for Superior protection is 15%.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.10 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts New house and Renovated house discounts (not applicable to City home house)
New house
Age of
dwelling
Renovated house
Years since oldest
renovation 21% 0 17% 0 21% 1 17% 1 18% 2 15% 2 15% 3 12% 3 12% 4 9% 4 9% 5 6% 5 6% 6 3% 6 3% 7
% 8 % 9 % 10
Premier Client Discount
Risk Customer Loss free tenure tenure No Yes 0 years 1 year 0.0% 0.0% 0 years 2 years 0.0% 0.0% 0 years 3 years -1.0% -1.0% 0 years 4 years -1.5% -1.5% 0 years 5 years -2.0% -2.0% 0 years 6 years -2.5% -2.5% 0 years 7 years -3.0% -3.0% 0 years 8 years -4.0% -4.0% 0 years 9+ years -5.0% -5.0% 1 year 1 year 0.0% 0.0% 1 year 2 years 0.0% 0.0% 1 year 3 years -1.0% -1.0% 1 year 4 years -1.5% -1.5% 1 year 5 years -2.0% -2.0% 1 year 6 years -2.5% -2.5% 1 year 7 years -3.0% -3.0% 1 year 8 years -4.0% -4.0% 1 year 9+ years -5.0% -5.0%
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.11 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Discounts and surcharges charts (continued) Premier Client Discount (continued)
Risk Customer Loss free tenure tenure No Yes 2 years 2 years 0.0% 0.0% 2 years 3 years -1.0% -1.0% 2 years 4 years -1.5% -1.5% 2 years 5 years -2.0% -2.0% 2 years 6 years -2.5% -2.5% 2 years 7 years -3.0% -3.0% 2 years 8 years -4.0% -4.0% 2 years 9+ years -5.0% -5.0% 3 years 3+ years 0.0% -5.0% 4 years 4+ years 0.0% -5.8% 5 years 5+ years 0.0% -6.6% 6 years 6+ years 0.0% -7.5% 7 years 7+ years 0.0% -8.3% 8 years 8+ years 0.0% -9.1%
9+ years 9+ years 0.0% -10.0%
Surcharges
Deluxe house or vacation home
house
City home house
Condominium,
cooperative, or renters
Cancellation surcharge 10% 10% 10% Rented to others surcharge 25% N/A 25% Rental unit N/A 5% N/A Vacation home house nonoccupancy surcharge*
10% N/A N/A
Undervalue surcharge* 20% 20% N/A Renovation or construction surcharge* 25% N/A N/A Renovation surcharge* N/A 25% N/A Vacant house surcharge (Deluxe house only)*
25% 25% N/A
*Applied by Company.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.12 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Discounts and surcharges charts (continued) Claims rating factor
Amount of house coverage $1,000,000 or less Risk tenure
Number of losses 0 1 2 3 4 5+
1 year 0.0% 20.0% 44.0% 72.5% 107.5% 150.0% 2 years 0.0% 16.0% 39.2% 66.8% 100.5% 141.3% 3 years -2.5% 12.0% 34.3% 61.2% 93.5% 132.7% 4 years -3.3% 8.0% 29.5% 55.5% 86.5% 124.0% 5 years -4.2% 5.3% 24.7% 49.7% 79.5% 115.5% 6 years -5.0% 2.7% 19.8% 43.8% 72.5% 107.0% 7 years -5.8% 0.0% 15.0% 38.0% 65.5% 98.5% 8 years -6.7% -2.5% 12.3% 32.0% 58.3% 89.8% 9+ years -7.5% -5.0% 9.5% 26.0% 51.0% 81.0%
Amount of house coverage equal to $2,000,000 Risk tenure
Number of losses 0 1 2 3 4 5+
1 year 0.0% 15.0% 35.5% 60.0% 89.0% 123.0% 2 years 0.0% 10.8% 30.7% 54.2% 82.2% 115.0% 3 years -2.5% 6.7% 25.8% 48.3% 75.3% 107.0% 4 years -3.3% 2.5% 21.0% 42.5% 68.5% 99.0% 5 years -4.2% 0.8% 17.0% 37.8% 62.8% 92.3% 6 years -5.0% -0.8% 13.0% 33.2% 57.2% 85.7% 7 years -5.8% -2.5% 9.0% 28.5% 51.5% 79.0% 8 years -6.7% -3.8% 5.8% 24.8% 47.0% 73.8% 9+ years -7.5% -5.0% 2.5% 21.0% 42.5% 68.5%
We interpolate for house coverage amounts between $1,000,001 and $1,999,999.
Amount of house coverage $5,000,000 or greater Risk tenure
Number of losses 0 1 2 3 4 5+
1 year 0.0% 10.0% 26.5% 45.5% 67.5% 92.5% 2 years 0.0% 6.7% 22.7% 41.2% 62.5% 86.8% 3 years -5.0% 3.3% 18.8% 36.8% 57.5% 81.2% 4 years -5.8% 0.0% 15.0% 32.5% 52.5% 75.5% 5 years -6.6% -1.7% 11.7% 28.7% 48.0% 70.3% 6 years -7.5% -3.3% 8.3% 24.8% 43.5% 65.2% 7 years -8.3% -5.0% 5.0% 21.0% 39.0% 60.0% 8 years -9.1% -6.2% 2.5% 18.0% 35.5% 56.0% 9+ years -10.0% -7.5% 0.0% 15.0% 32.0% 52.0%
We interpolate for house coverage amounts between $2,000,001 and $4,999,999.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.13 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Discounts and surcharges charts (continued) Claims rating factor (continued)
Amount of contents and additions and alterations coverage $250,000 or less Risk tenure
Number of losses 0 1 2 3 4 5+
1 year 0.0% 20.0% 44.0% 72.5% 107.5% 150.0% 2 years 0.0% 16.0% 39.2% 66.8% 100.5% 141.3% 3 years -2.5% 12.0% 34.3% 61.2% 93.5% 132.7% 4 years -3.3% 8.0% 29.5% 55.5% 86.5% 124.0% 5 years -4.2% 5.3% 24.7% 49.7% 79.5% 115.5% 6 years -5.0% 2.7% 19.8% 43.8% 72.5% 107.0% 7 years -5.8% 0.0% 15.0% 38.0% 65.5% 98.5% 8 years -6.7% -2.5% 12.3% 32.0% 58.3% 89.8% 9+ years -7.5% -5.0% 9.5% 26.0% 51.0% 81.0%
Amount of contents and additions and alterations coverage equal to $500,000 Risk tenure
Number of losses 0 1 2 3 4 5+
1 year 0.0% 15.0% 35.5% 60.0% 89.0% 123.0% 2 years 0.0% 10.8% 30.7% 54.2% 82.2% 115.0% 3 years -2.5% 6.7% 25.8% 48.3% 75.3% 107.0% 4 years -3.3% 2.5% 21.0% 42.5% 68.5% 99.0% 5 years -4.2% 0.8% 17.0% 37.8% 62.8% 92.3% 6 years -5.0% -0.8% 13.0% 33.2% 57.2% 85.7% 7 years -5.8% -2.5% 9.0% 28.5% 51.5% 79.0% 8 years -6.7% -3.8% 5.8% 24.8% 47.0% 73.8% 9+ years -7.5% -5.0% 2.5% 21.0% 42.5% 68.5%
We interpolate for contents and additions and alterations coverage amounts between $250,001 and $499,999.
Amount of contents and additions and alterations coverage $1,000,000 or greater Risk tenure
Number of losses 0 1 2 3 4 5+
1 year 0.0% 10.0% 26.5% 45.5% 67.5% 92.5% 2 years 0.0% 6.7% 22.7% 41.2% 62.5% 86.8% 3 years -5.0% 3.3% 18.8% 36.8% 57.5% 81.2% 4 years -5.8% 0.0% 15.0% 32.5% 52.5% 75.5% 5 years -6.6% -1.7% 11.7% 28.7% 48.0% 70.3% 6 years -7.5% -3.3% 8.3% 24.8% 43.5% 65.2% 7 years -8.3% -5.0% 5.0% 21.0% 39.0% 60.0% 8 years -9.1% -6.2% 2.5% 18.0% 35.5% 56.0% 9+ years -10.0% -7.5% 0.0% 15.0% 32.0% 52.0%
We interpolate for contents and additions and alterations coverage amounts between $500,001 and $999,999.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.14 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Tier factor chart
Tier
House factor
Condominium, cooperative, or renters factor
1 0.62890 0.72900 2 0.66680 0.76370 3 0.70710 0.79990 4 0.75050 0.83800 5 0.79760 0.87850 6 0.84530 0.92060 7 0.89680 0.96430 8 0.95060 1.01020 9 1.00770 1.05820 10 1.06960 1.10870 11 1.13410 1.16160 12 1.20320 1.21700 13 1.28630 1.27980 14 1.36580 1.34170 15 1.44970 1.40570 16 1.53710 1.47330 17 1.66510 1.57620 18 1.76530 1.64440 19 2.17950 1.96620 20 1.00000 1.00000
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.15 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Dollar adjustments charts Liability Liability is rated in the state where the Primary residence (first location with liability) is located.
Primary location Each additional location Any liability Personal liability Excess only* Is coverage provided for Building
and/or contents? Is coverage provided for Building and/or contents?
Amount of coverage
Yes
No
Yes
No
$ 50,000 $ 0 $ 15 $ 0 $ 15 N/A $ 100,000 $ 43 $ 58 $ 10 $ 25 N/A $ 200,000 $ 72 $ 87 $ 15 $ 30 N/A $ 300,000 $ 97 $ 112 $ 19 $ 34 N/A $ 500,000 $ 128 $ 143 $ 24 $ 39 N/A $ 1,000,000 $ 141 $ 156 $ 28 $ 43 $ 22 $ 2,000,000 $ 167 $ 182 $ 32 $ 47 $ 26 $ 3,000,000 $ 184 $ 199 $ 33 $ 48 $ 28 $ 5,000,000 $ 206 $ 221 $ 40 $ 55 $ 32 $10,000,000 $ 266 $ 281 $ 42 $ 57 $ 43
*These premiums only apply when the insured requests building and/or contents coverage for one or more locations. No personal liability coverage. Subtract $15 for each location that building and/or contents coverage is provided if no personal liability coverage is provided. House replacement cost Subtract $5 if verified or conditional replacement cost payment basis applies in lieu of extended replacement cost payment basis. House replacement cost can only be applied by the Company. Employment practices liability Add the amount from the following chart based on the amount of coverage selected. The coverage is always rated at one residence and the residence must be listed for Personal liability coverage.
Charge for Employment practices liability coverage with a $10,000 deductible Employment practices liability Reputational injury Code
Amount of coverage
Maximum annual amount of coverage
Amount of coverage
Maximum annual amount of coverage
Additional premium
A $250,000 $500,000 $25,000 $25,000 $ 650 B $500,000 $500,000 $50,000 $50,000 $ 975
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.16 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Dollar adjustments charts (continued)
Homeowner/unit assessments
For each additional $1,000 homeowner/unit assessments coverage over $50,000, add:
For each additional $1,000 coverage for an assessment due to a deductible in the homeowner, condominium, or cooperative association’s insurance over $5,000, add:
Deluxe house $2 $2 Vacation home house $2 $2 City home house $2 $2 Deluxe condominium or cooperative $2 $2 Standard condominium or cooperative $2 $2 Refer to Company for: a total amount of homeowner or unit assessments coverage greater than $500,000 or greater than the amount of
coverage for house, or the combined amount of coverage for additions and alterations and contents; or for an amount exceeding $50,000 for coverage for an assessment due to a deductible in the homeowners ,
condominium, or cooperative association’s insurance. Landscaping For each additional
$1,000 landscaping coverage over 5% of the amount of house coverage and 10% of the amount of contents coverage, add:
For each additional $5,000 over $10,000 for any one tree, shrub, or plant, add:
Deluxe house $4 $50 Vacation home house $4 $50 Deluxe and standard condominium, cooperative, or renters
$4 $50
Refer to company to increase coverage for landscaping: • over $250,000 for the total amount of landscaping coverage; or • over $50,000 for the amount of coverage for any tree, shrub or plant.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.17 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Dollar Adjustments charts (continued) Landscaping – wind and hail coverage For each $1,000 landscaping coverage with the
perils of wind and hail included, add: Deluxe house $15 Vacation home house $15 Deluxe and standard condominium, cooperative, or renters
$15
This increased coverage will be added by the Company. Landscaping – sleet and weight of ice and snow coverage For each $1,000 landscaping coverage with the
perils of sleet and weight of ice and snow included, add:
Deluxe house $15 Vacation home house $15 Deluxe and standard condominium, cooperative, or renters
$15
This increased coverage will be added by the Company. City garden coverage For each additional $1,000
city garden coverage over 5% of the amount of city home house coverage, add:
For each additional $5,000 over $10,000 for any tree, shrub, or plant, add:
City home house $4 $50 Refer to company to increase coverage for landscaping: • over $250,000 for the total amount of landscaping coverage; or • over $50,000 for the amount of coverage for any tree, shrub or plant. City garden coverage – wind and hail coverage For each $1,000 city garden coverage with the
perils of wind and hail included, add: City home house $15 This increased coverage will be added by the Company. City garden coverage – sleet and weight of ice and snow coverage For each $1,000 city garden coverage with the
perils of sleet and weight of ice and snow included, add:
City home house $15 This increased coverage will be added by the Company.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.18 ©Copyright 1985 by Chubb & Son Inc.
Home and Contents: Charts Dollar Adjustments charts (continued) Business property For each additional $1,000 on premises business
property coverage over $25,000, add: Deluxe contents $5 Standard contents $5 Fire contents $5 City home contents $5 Deluxe condominium, cooperative, or renters $5 Standard condominium, cooperative, or renters $5 For a total amount of business property coverage greater than $250,000, refer to Company. The increased coverage will be applied by the Company. Student additional living expenses For $5,000 student
additional living expenses coverage, add:
For each $1,000 student additional living expenses coverage, greater than $5,000, add:
Deluxe contents $25 $1.50 Standard contents $25 $1.50 Fire contents $25 $1.50 City home contents $25 $1.50 Deluxe condominium, cooperative, or renters $25 $1.50 Standard condominium, cooperative, or renters $25 $1.50 For a total amount of student additional living expenses coverage greater than $250,000, refer to Company. The increased coverage will be applied by the Company. Assisted living care coverage – contents of a relative-in-care
For the first $5,000 assisted living care coverage – contents of a relative-in-care, add:
For each $1,000 assisted living care coverage – contents of a relative-in-care, greater than $5,000, add:
Deluxe contents $50 $5 Standard contents $50 $5 City home contents $50 $5 Deluxe condominium, cooperative, or renters $50 $5 Standard condominium, cooperative, or renters $50 $5 For a total amount of assisted living care coverage greater than $250,000, refer to Company. The increased coverage will be applied by the Company. Family protection coverage The premium for Family protection coverage is $110. Earthquake coverage For a house add $0.60 for every $1,000 of house coverage. For a house with GreenWise upgrade coverage, multiply the earthquake rate by 1.05.
01/11/16 Pennsylvania Masterpiece Manual Home and Contents: Charts Page 7.19 ©Copyright 1985 by Chubb & Son Inc.