Information provided in connection with outstanding debt of subsidiaries (Tables)

9 Months Ended

Sep. 30, 2014

Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet at September 30, 2014

(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)		ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries		Consolidating Adjustments and Eliminations			ACE Limited Consolidated
Assets
Investments	$	31	$	25	$	63,198	$	—		$	63,254
Cash(1)	8		12		1,391		(605		)	806
Insurance and reinsurance balances receivable	—		—		6,149		(960		)	5,189
Reinsurance recoverable on losses and loss expenses	—		—		19,948		(9,003		)	10,945
Reinsurance recoverable on policy benefits	—		—		1,236		(1,008		)	228
Value of business acquired	—		—		491		—			491
Goodwill and other intangible assets	—		—		5,425		—			5,425
Investments in subsidiaries	30,065		19,054		—		(49,119		)	—
Due from subsidiaries and affiliates, net	768		—		—		(768		)	—
Other assets	4		272		14,669		(3,726		)	11,219
Total assets	$	30,876	$	19,363	$	112,507	$	(65,189	)	$	97,557
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	46,003	$	(8,556	)	$	37,447
Unearned premiums	—		—		9,828		(1,808		)	8,020
Future policy benefits	—		—		5,790		(1,008		)	4,782
Due to (from) subsidiaries and affiliates, net	—		556		212		(768		)	—
Affiliated notional cash pooling programs(1)	573		32		—		(605		)	—
Short-term debt	—		450		1,401		—			1,851
Long-term debt	—		4,045		12		—			4,057
Trust preferred securities	—		309		—		—			309
Other liabilities	286		1,432		12,681		(3,325		)	11,074
Total liabilities	859		6,824		75,927		(16,070		)	67,540
Total shareholders’ equity	30,017		12,539		36,580		(49,119		)	30,017
Total liabilities and shareholders’ equity	$	30,876	$	19,363	$	112,507	$	(65,189	)	$	97,557

⁽¹⁾  ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2013

(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)		ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries		Consolidating Adjustments and Eliminations			ACE Limited Consolidated
Assets
Investments	$	32	$	10	$	60,886	$	—		$	60,928
Cash(1)	—		16		748		(185		)	579
Insurance and reinsurance balances receivable	—		—		5,835		(809		)	5,026
Reinsurance recoverable on losses and loss expenses	—		—		20,057		(8,830		)	11,227
Reinsurance recoverable on policy benefits	—		—		1,215		(997		)	218
Value of business acquired	—		—		536		—			536
Goodwill and other intangible assets	—		—		5,404		—			5,404
Investments in subsidiaries	28,351		18,105		—		(46,456		)	—
Due from subsidiaries and affiliates, net	844		—		—		(844		)	—
Other assets	5		258		13,788		(3,459		)	10,592
Total assets	$	29,232	$	18,389	$	108,469	$	(61,580	)	$	94,510
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	45,714	$	(8,271	)	$	37,443
Unearned premiums	—		—		9,242		(1,703		)	7,539
Future policy benefits	—		—		5,612		(997		)	4,615
Due to (from) subsidiaries and affiliates, net	—		714		130		(844		)	—
Affiliated notional cash pooling programs(1)	185		—		—		(185		)	—
Short-term debt	—		500		1,401		—			1,901
Long-term debt	—		3,795		12		—			3,807
Trust preferred securities	—		309		—		—			309
Other liabilities	222		1,318		11,655		(3,124		)	10,071
Total liabilities	407		6,636		73,766		(15,124		)	65,685
Total shareholders’ equity	28,825		11,753		34,703		(46,456		)	28,825
Total liabilities and shareholders’ equity	$	29,232	$	18,389	$	108,469	$	(61,580	)	$	94,510

⁽¹⁾  ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement Of Operations and Comprehensive Income

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2014	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net premiums written	$	—		$	—		$	4,729		$	—		$	4,729
Net premiums earned	—			—			4,754			—			4,754
Net investment income	1			—			565			—			566
Equity in earnings of subsidiaries	745			258			—			(1,003		)	—
Net realized gains (losses) including OTTI	—			46			(166		)	—			(120		)
Losses and loss expenses	—			—			2,684			—			2,684
Policy benefits	—			—			125			—			125
Policy acquisition costs and administrative expenses	18			6			1,355			—			1,379
Interest (income) expense	(7		)	68			9			—			70
Other (income) expense	(54		)	2			33			—			(19		)
Income tax expense (benefit)	4			(11		)	183			—			176
Net income	$	785		$	239		$	764		$	(1,003	)	$	785
Comprehensive income	$	298		$	33		$	276		$	(309	)	$	298

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries		Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net premiums written	$	—		$	—		$	4,620	$	—		$	4,620
Net premiums earned	—			—			4,610		—			4,610
Net investment income	1			—			521		—			522
Equity in earnings of subsidiaries	863			322			—		(1,185		)	—
Net realized gains (losses) including OTTI	—			(2		)	42		—			40
Losses and loss expenses	—			—			2,655		—			2,655
Policy benefits	—			—			138		—			138
Policy acquisition costs and administrative expenses	13			4			1,224		—			1,241
Interest (income) expense	(8		)	69			11		—			72
Other (income) expense	(62		)	6			51		—			(5		)
Income tax expense (benefit)	5			(14		)	164		—			155
Net income	$	916		$	255		$	930	$	(1,185	)	$	916
Comprehensive income	$	1,030		$	339		$	1,043	$	(1,382	)	$	1,030

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2014	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net premiums written	$	—		$	—		$	13,473		$	—		$	13,473
Net premiums earned	—			—			13,056			—			13,056
Net investment income	2			1			1,672			—			1,675
Equity in earnings of subsidiaries	2,192			669			—			(2,861		)	—
Net realized gains (losses) including OTTI	—			53			(350		)	—			(297		)
Losses and loss expenses	—			—			7,233			—			7,233
Policy benefits	—			—			383			—			383
Policy acquisition costs and administrative expenses	57			20			3,889			—			3,966
Interest (income) expense	(26		)	209			30			—			213
Other (income) expense	(146		)	22			63			—			(61		)
Income tax expense (benefit)	11			(66		)	457			—			402
Net income	$	2,298		$	538		$	2,323		$	(2,861	)	$	2,298
Comprehensive income	$	2,754		$	810		$	2,778		$	(3,588	)	$	2,754

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries		Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net premiums written	$	—		$	—		$	12,809	$	—		$	12,809
Net premiums earned	—			—			12,250		—			12,250
Net investment income	2			2			1,583		—			1,587
Equity in earnings of subsidiaries	2,619			767			—		(3,386		)	—
Net realized gains (losses) including OTTI	12			(2		)	340		—			350
Losses and loss expenses	—			—			6,831		—			6,831
Policy benefits	—			—			379		—			379
Policy acquisition costs and administrative expenses	40			13			3,545		—			3,598
Interest (income) expense	(23		)	200			28		—			205
Other (income) expense	(157		)	21			158		—			22
Income tax expense (benefit)	13			(80		)	459		—			392
Net income	$	2,760		$	613		$	2,773	$	(3,386	)	$	2,760
Comprehensive income (loss)	$	1,247		$	(195	)	$	1,259	$	(1,064	)	$	1,247

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended September 30, 2014	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	168		$	139		$	3,115		$	(200	)	$	3,222
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(11,870		)	3			(11,867		)
Purchases of fixed maturities held to maturity	—			—			(185		)	—			(185		)
Purchases of equity securities	—			—			(222		)	—			(222		)
Sales of fixed maturities available for sale	—			—			6,309			(3		)	6,306
Sales of equity securities	—			—			322			—			322
Maturities and redemptions of fixed maturities available for sale	—			—			4,814			—			4,814
Maturities and redemptions of fixed maturities held to maturity	—			—			617			—			617
Net change in short-term investments	1			(16		)	(969		)	—			(984		)
Net derivative instruments settlements	—			53			(223		)	—			(170		)
Acquisition of subsidiaries (net of cash acquired of $4)	—			—			(172		)	—			(172		)
Capital contribution	—			(230		)	—			230			—
Other	—			(9		)	(138		)	—			(147		)
Net cash flows from (used for) investing activities	1			(202		)	(1,717		)	230			(1,688		)
Cash flows from financing activities
Dividends paid on Common Shares	(646		)	—			—			—			(646		)
Common Shares repurchased	—			—			(1,007		)	—			(1,007		)
Proceeds from issuance of long-term debt	—			699			—			—			699
Repayment of long-term debt	—			(500		)	(1		)	—			(501		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			94			—			94
Dividend to parent company	—			—			(200		)	200			—
Advances (to) from affiliates	97			(166		)	69			—			—
Capital contribution	—			—			230			(230		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs(1)	388			32			—			(420		)	—
Other	—			(6		)	127			—			121
Net cash flows (used for) from financing activities	(161		)	59			(688		)	(450		)	(1,240		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			(67		)	—			(67		)
Net increase (decrease) in cash	8			(4		)	643			(420		)	227
Cash – beginning of period(1)	—			16			748			(185		)	579
Cash – end of period(1)	$	8		$	12		$	1,391		$	(605	)	$	806

⁽¹⁾  ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended September 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	80		$	2		$	2,654		$	—		$	2,736
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(16,517		)	103			(16,414		)
Purchases of fixed maturities held to maturity	—			—			(374		)	—			(374		)
Purchases of equity securities	—			—			(217		)	—			(217		)
Sales of fixed maturities available for sale	—			—			8,115			(103		)	8,012
Sales of equity securities	—			—			99			—			99
Maturities and redemptions of fixed maturities available for sale	—			—			5,538			—			5,538
Maturities and redemptions of fixed maturities held to maturity	—			—			1,233			—			1,233
Net change in short-term investments	—			4			521			—			525
Net derivative instruments settlements	—			(1		)	(375		)	—			(376		)
Acquisition of subsidiaries (net of cash acquired of $38)	—			—			(977		)	—			(977		)
Capital contribution	(133		)	(1,010		)	—			1,143			—
Other	—			(5		)	(183		)	—			(188		)
Net cash flows used for investing activities	(133		)	(1,012		)	(3,137		)	1,143			(3,139		)
Cash flows from financing activities
Dividends paid on Common Shares	(343		)	—			—			—			(343		)
Common Shares repurchased	—			—			(233		)	—			(233		)
Proceeds from issuance of long-term debt	—			947			—			—			947
Net proceeds from issuance of short-term debt	—			—			1			—			1
Proceeds from share-based compensation plans, including windfall tax benefits	7			—			105			—			112
Advances (to) from affiliates	(575		)	575			—			—			—
Capital contribution	—			—			1,143			(1,143		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs(1)	872			(349		)	—			(523		)	—
Other	—			—			68			—			68
Net cash flows from (used for) financing activities	(39		)	1,173			1,084			(1,666		)	552
Effect of foreign currency rate changes on cash and cash equivalents	—			—			4			—			4
Net (decrease) increase in cash	(92		)	163			605			(523		)	153
Cash – beginning of period(1)	103			2			859			(349		)	615
Cash – end of period(1)	$	11		$	165		$	1,464		$	(872	)	$	768

⁽¹⁾  ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.