Information provided in connection with outstanding debt of subsidiaries

In connection with the Chubb Corp acquisition, Chubb INA Holdings Inc., entered into a series of intercompany loans totaling $10 billion involving its parents, Chubb Group Holdings Inc. and Chubb Limited. The weighted-average interest rate is 3.3 percent with fixed interest rates ranging from 2.3 percent to 4.35 percent and various maturity dates from 2021 to 2046.

As part of the acquisition, Chubb INA Holdings Inc. assumed $3.3 billion par value outstanding debt of Chubb Corp, fair valued at $3.8 billion. Chubb INA Holdings Inc. assumed Chubb Corp's rights, duties and obligations and Chubb Limited fully and unconditionally guarantees Chubb INA Holding Inc.'s payment obligations under these debts.

The following tables present condensed consolidating financial information at March 31, 2016 and December 31, 2015, and for the three months ended March 31, 2016 and 2015 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). The transactions noted above are reflected in the tables below. The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Parent Guarantor and Subsidiary Issuer are presented on the equity method of accounting. The revenues and expenses and cash flows of the subsidiaries of the Subsidiary Issuer are presented in the Other Chubb Limited Subsidiaries column on a combined basis.

Condensed Consolidating Balance Sheet at March 31, 2016



(in millions of U.S. dollars)	Chubb Limited (Parent Guarantor)		Chubb INA Holdings Inc. (Subsidiary Issuer)		Other Chubb Limited Subsidiaries		Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Assets
Investments	$	29	$	643	$	96,914	$	—		$	97,586
Cash ⁽¹⁾	2		3		2,406		(1,320		)	1,091
Insurance and reinsurance balances receivable	—		—		10,884		(3,192		)	7,692
Reinsurance recoverable on losses and loss expenses	—		—		22,065		(9,174		)	12,891
Reinsurance recoverable on policy benefits	—		—		1,144		(959		)	185
Value of business acquired	—		—		390		—			390
Goodwill and other intangible assets	—		—		23,359		—			23,359
Investments in subsidiaries	35,426		49,240		—		(84,666		)	—
Due from subsidiaries and affiliates, net	11,267		—		—		(11,267		)	—
Other assets	4		503		17,291		(4,348		)	13,450
Total assets	$	46,728	$	50,389	$	174,453	$	(114,926	)	$	156,644
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	68,917	$	(8,711	)	$	60,206
Unearned premiums	—		—		18,522		(3,626		)	14,896
Future policy benefits	—		—		5,828		(959		)	4,869
Due to subsidiaries and affiliates, net	—		11,199		68		(11,267		)	—
Affiliated notional cash pooling programs ⁽¹⁾	521		799		—		(1,320		)	—
Repurchase agreements	—		—		1,403		—			1,403
Short-term debt	—		500		—		—			500
Long-term debt	—		12,625		11		—			12,636
Trust preferred securities	—		308		—		—			308
Other liabilities	310		1,575		18,421		(4,377		)	15,929
Total liabilities	831		27,006		113,170		(30,260		)	110,747
Total shareholders’ equity	45,897		23,383		61,283		(84,666		)	45,897
Total liabilities and shareholders’ equity	$	46,728	$	50,389	$	174,453	$	(114,926	)	$	156,644

⁽¹⁾

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2015



(in millions of U.S. dollars)	Chubb Limited (Parent Guarantor)		Chubb INA Holdings Inc. (Subsidiary Issuer)		Other Chubb Limited Subsidiaries		Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Assets
Investments	$	28	$	7,839	$	58,384	$	—		$	66,251
Cash ⁽¹⁾	1		2		2,743		(971		)	1,775
Insurance and reinsurance balances receivable	—		—		6,075		(752		)	5,323
Reinsurance recoverable on losses and loss expenses	—		—		20,124		(8,738		)	11,386
Reinsurance recoverable on policy benefits	—		—		1,129		(942		)	187
Value of business acquired	—		—		395		—			395
Goodwill and other intangible assets	—		—		5,683		—			5,683
Investments in subsidiaries	29,612		18,386		—		(47,998		)	—
Due from subsidiaries and affiliates, net	644		1,800		—		(2,444		)	—
Other assets	8		457		14,434		(3,593		)	11,306
Total assets	$	30,293	$	28,484	$	108,967	$	(65,438	)	$	102,306
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	45,490	$	(8,187	)	$	37,303
Unearned premiums	—		—		10,243		(1,804		)	8,439
Future policy benefits	—		—		5,749		(942		)	4,807
Due to subsidiaries and affiliates, net	—		—		2,444		(2,444		)	—
Affiliated notional cash pooling programs ⁽¹⁾	882		89		—		(971		)	—
Repurchase agreements	—		—		1,404		—			1,404
Long-term debt	—		9,378		11		—			9,389
Trust preferred securities	—		307		—		—			307
Other liabilities	276		1,422		12,916		(3,092		)	11,522
Total liabilities	1,158		11,196		78,257		(17,440		)	73,171
Total shareholders’ equity	29,135		17,288		30,710		(47,998		)	29,135
Total liabilities and shareholders’ equity	$	30,293	$	28,484	$	108,967	$	(65,438	)	$	102,306

⁽¹⁾

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended March 31, 2016	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	5,995		$	—		$	5,995
Net premiums earned	—			—			6,597			—			6,597
Net investment income	1			4			669			—			674
Equity in earnings of subsidiaries	375			506			—			(881		)	—
Net realized gains (losses) including OTTI	—			—			(394		)	—			(394		)
Losses and loss expenses	—			—			3,674			—			3,674
Policy benefits	—			—			126			—			126
Policy acquisition costs and administrative expenses	17			36			2,132			—			2,185
Interest (income) expense	(80		)	215			11			—			146
Other (income) expense	(9		)	10			27			—			28
Amortization of purchased intangibles	—			—			7			—			7
Chubb integration expenses	3			137			8			—			148
Income tax expense (benefit)	6			(150		)	268			—			124
Net income	$	439		$	262		$	619		$	(881	)	$	439
Comprehensive income (loss)	$	1,541		$	1,056		$	1,721		$	(2,777	)	$	1,541

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended March 31, 2015	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	4,076		$	—		$	4,076
Net premiums earned	—			—			3,927			—			3,927
Net investment income	1			1			549			—			551
Equity in earnings of subsidiaries	648			204			—			(852		)	—
Net realized gains (losses) including OTTI	—			—			(89		)	—			(89		)
Losses and loss expenses	—			—			2,122			—			2,122
Policy benefits	—			—			142			—			142
Policy acquisition costs and administrative expenses	14			6			1,241			—			1,261
Interest (income) expense	(8		)	69			7			—			68
Other (income) expense	(41		)	(3		)	9			—			(35		)
Amortization of purchased intangibles	—			—			30			—			30
Income tax expense (benefit)	3			(26		)	143			—			120
Net income	$	681		$	159		$	693		$	(852	)	$	681
Comprehensive income	$	642		$	24		$	654		$	(678	)	$	642

Condensed Consolidating Statement of Cash Flows



For the Three Months Ended March 31, 2016	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	3,272		$	3,109		$	1,011		$	(6,372	)	$	1,020
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(8,104		)	—			(8,104		)
Purchases of fixed maturities held to maturity	—			—			(77		)	—			(77		)
Purchases of equity securities	—			—			(33		)	—			(33		)
Sales of fixed maturities available for sale	—			—			6,329			—			6,329
Sales of equity securities	—			—			761			—			761
Maturities and redemptions of fixed maturities available for sale	—			—			1,553			—			1,553
Maturities and redemptions of fixed maturities held to maturity	—			—			249			—			249
Net change in short-term investments	—			7,788			4,144			—			11,932
Net derivative instruments settlements	—			—			(22		)	—			(22		)
Acquisition of subsidiaries (net of cash acquired of $57)	—			(14,282		)	20			—			(14,262		)
Capital contribution	(2,330		)	—			(2,330		)	4,660			—
Other	—			—			59			—			59
Net cash flows (used for) from investing activities	(2,330		)	(6,494		)	2,549			4,660			(1,615		)
Cash flows from financing activities
Dividends paid on Common Shares	(218		)	—			—			—			(218		)
Proceeds from issuance of repurchase agreements	—			—			853			—			853
Repayment of repurchase agreements	—			—			(853		)	—			(853		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			51			—			51
Dividend to parent company	—			—			(6,372		)	6,372			—
Advances (to) from affiliates	(362		)	350			12			—			—
Capital contribution	—			2,330			2,330			(4,660		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	(361		)	710			—			(349		)	—
Policyholder contract deposits	—			—			118			—			118
Policyholder contract withdrawals	—			—			(49		)	—			(49		)
Other	—			(4		)	—			—			(4		)
Net cash flows (used for) from financing activities	(941		)	3,386			(3,910		)	1,363			(102		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			13			—			13
Net increase (decrease) in cash	1			1			(337		)	(349		)	(684		)
Cash – beginning of period⁽¹⁾	1			2			2,743			(971		)	1,775
Cash – end of period⁽¹⁾	$	2		$	3		$	2,406		$	(1,320	)	$	1,091

⁽¹⁾

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2016 and December 31, 2015, 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 Three Months Ended March 31, 2015	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	48		$	4		$	1,023		$	—		$	1,075
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(4,336		)	—			(4,336		)
Purchases of fixed maturities held to maturity	—			—			(21		)	—			(21		)
Purchases of equity securities	—			—			(39		)	—			(39		)
Sales of fixed maturities available for sale	—			—			2,002			—			2,002
Sales of equity securities	—			—			28			—			28
Maturities and redemptions of fixed maturities available for sale	—			—			1,481			—			1,481
Maturities and redemptions of fixed maturities held to maturity	—			—			324			—			324
Net change in short-term investments	—			216			(471		)	—			(255		)
Net derivative instruments settlements	—			—			(51		)	—			(51		)
Other	—			—			(153		)	—			(153		)
Net cash flows from (used for) investing activities	—			216			(1,236		)	—			(1,020		)
Cash flows from financing activities
Dividends paid on Common Shares	(214		)	—			—			—			(214		)
Common Shares repurchased	—			—			(347		)	—			(347		)
Proceeds from issuance of long-term debt	—			800			—			—			800
Proceeds from issuance of short-term debt	—			—			477			—			477
Repayment of short-term debt	—			—			(477		)	—			(477		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			39			—			39
Advances (to) from affiliates	336			(340		)	4			—			—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	(168		)	(309		)	—			477			—
Policyholder contract deposits							101						101
Policyholder contract withdrawals	—			—			(40		)	—			(40		)
Other	—			(6		)	—			—			(6		)
Net cash flows (used for) from financing activities	(46		)	145			(243		)	477			333
Effect of foreign currency rate changes on cash and cash equivalents	—			—			(95		)	—			(95		)
Net increase (decrease) in cash	2			365			(551		)	477			293
Cash – beginning of period⁽¹⁾	—			1			1,209			(555		)	655
Cash – end of period⁽¹⁾	$	2		$	366		$	658		$	(78	)	$	948

⁽¹⁾

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2015 and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.