# CHUBB GROUP OF INSURANCE COMPANIES
15 Mountain View Road
Warren, NJ 07059

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**May 20, 2010**

**INTERNATIONAL BUSINESS MACHINES CORPORATION**
ONE NEW ORCHARD ROAD
ARMONK, NY 10504

**Re: Financial Strength**

**Dear INTERNATIONAL BUSINESS MACHINES**

Chubb continues to deliver strong financial performance. Our financial strength, as reflected in our published reports and our ratings, should give you peace of mind that Chubb will be there for you when you need us most.

- Chubb's financial results during 2009 stand out in the industry.
- Chubb's balance sheet is backed with investments that we believe emphasize quality, safety, and liquidity, with total invested assets of $42.0 billion as of September 30, 2009.
- With 127 years in the business, Chubb is here for the long term, which is why we vigorously guard our financial strength and take what we believe is a prudent approach to assuming risk - on both the asset and liability sides of our balance sheet.
- Chubb is one of the most highly rated property and casualty companies in the industry, which is a reflection of our overall quality, strong financial condition, and strong capital position.

- Chubb's financial strength rating is "A++" from A.M. Best Company, "AA" from Fitch, "Aa2" from Moody's, and "AA" from Standard & Poor's – the leading independent evaluators of the insurance industry.
- Chubb's senior unsecured corporate debt rating from Standard & Poor's was upgraded from "A" to "A-" on December 15, 2008. Standard & Poor's also reaffirmed all of Chubb's ratings with a "stable" outlook.
- A.M. Best, Fitch, and Moody's recently affirmed all of Chubb's ratings with a "stable" outlook. (For reference, A.M. Best reaffirmed us on 12/23/08, Moody's on 2/4/09 and Fitch on 2/13/09.)
- For more than 50 years, Chubb has remained part of an elite group of insurers that have maintained A.M. Best's highest ratings.
- Chubb was named to Standard & Poor's list of S&P 500 Dividend Aristocrats, one of 52 companies in the S&P 500 index that have increased dividends every year for at least 25 consecutive years.
- Chubb's investment portfolio has held up extremely well. Chubb takes what we believe is a conservative approach to selecting and managing our assets. Furthermore, Chubb does not have any direct exposure to the subprime mortgage-backed securities market, and we stopped doing new credit derivative business in 2003 and put existing business in runoff.

December 2009
(over)