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|  | JULY 28, 2004
 WORD ON THE STREET Prudential Ups Chubb to Overweight Analyst Jay Gelb thinks the insurer has made significant progress addressing his concerns Prudential upgraded Chubb (CB ) to overweight. Analyst Jay Gelb says the upgrade is based on significant increase in his 2004 and 2005 EPS estimates, higher expected return on equity, and fewer concerns going forward. Previously, his thesis was that Chubb would be unable to achieve a 15% return on equity by 2005 -- this outlook now appears too pessimistic. Gelb thinks Chubb made significant progress addressing his concerns involving surety claims from Aquila, Chubb Financial Solutions, the potential loss reserve deficiencies. He also sees an improving cost ratio. Gelb upped the $6.50 2004 EPS estimate to $7.15 and upped the $7.30 2005 EPS estimate to $8.50 reflecting continued margin improvement. He upped the $75 target to $80.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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