"Is It Safe?" is a feature by TheStreet.com Ratings that looks at a company's risk-and-reward potential. Find out if your stocks are safe Tuesday and Thursday mornings at 4.Chubb ( CB) is known for its conservative approach, with "never compromise integrity" being one of its slogans. That means the insurer doesn't depend on investment income to buttress earnings. Nevertheless, it still disappointed investors with poor first-quarter results, a whopping 43 cents a share below expectations. Chubb is scheduled to release second-quarter results Thursday. Policy income is expected to have risen slightly for the second quarter and be flat for the year, but reduced expenses could have improved net income. Cash and cash equivalents of $56 billion were at an all-time high in March, and investments had risen. Those are indications that Chubb is making wise decisions and selling only profitable policies, unlike some other insurers, notably American International Group ( AIG). Another indicator is that by the end of May, 20 insurers, including Chubb, had announced dividend increases this year, according to SNL Financial. That could be interpreted as a sign of optimism from the Chubb board. Analysts expect Chubb to book earnings of $1.31 a share for the second quarter, up 4 cents from a year earlier. Chubb's belief in integrity was evident when CEO John D. Finnegan led the Merrill Lynch compensation committee. When John Thain was negotiating with Bank of America ( BOA) over the details of Merrill's takeover, he made a $40 million bonus request. Finnegan is said to have been incensed by the insensitivity, and Thain ultimately withdrew his requests for a bonus. Two elements -- ethics and underwriting profitably by pricing appropriately for risk -- came together when Chubb Chief Operating Officer John Degnan criticized the practice of "buying" insurance business with low renewal rates, which he believes aren't profitable or sustainable.