6. Goodwill and intangible assets

At December 31, 2016 and 2015, Goodwill was $15.3 billion and $4.8 billion, respectively, and Other intangible assets were $6.8 billion and $887 million, respectively. The increases in Goodwill and Other intangible assets reflect the goodwill and intangible assets recorded in connection with the Chubb Corp acquisition.

a) Goodwill

The following table presents a roll-forward of Goodwill by segment:



(in millions of U.S. dollars)	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance			Global Reinsurance		Life Insurance			Chubb Consolidated
Balance at December 31, 2014	$	1,211		$	—	$	134	$	2,366		$	365	$	828		$	4,904
Purchase price allocation adjustment	—			—		—		(4		)	—		—			(4		)
Acquisition of Fireman's Fund	—			196		—		—			—		—			196
Foreign exchange revaluation and other	(8		)	—		—		(284		)	—		(8		)	(300		)
Balance at December 31, 2015	$	1,203		$	196	$	134	$	2,078		$	365	$	820		$	4,796
Acquisition of Chubb Corp	5,714			2,025		—		2,775			—		—			10,514
Foreign exchange revaluation and other	44			14		—		(36		)	—		—			22
Balance at December 31, 2016	$	6,961		$	2,235	$	134	$	4,817		$	365	$	820		$	15,332

b) Other intangible assets

Included in Other intangible assets at December 31, 2016 and 2015, are intangible assets subject to amortization of $3.8 billion and $789 million, respectively, and intangible assets not subject to amortization of $3.0 billion and $98 million, respectively. Intangible assets subject to amortization primarily include agency relationships and renewal rights, software, and client lists. Intangible assets not subject to amortization, primarily trademarks, are principally attributable to the Chubb Corp acquisition.

The purchase price allocation to intangible assets recorded in connection with the Chubb Corp acquisition and their related useful lives are as follows:



(in millions of U.S. dollars)	Purchase price allocation		Estimated useful life
Definite life
Unearned premium reserves (UPR) intangible asset	$	1,550	1 year
Agency distribution relationships and renewal rights	3,150		24 years
Internally developed technology	95		3 years
Indefinite life
Trademarks	2,800		Indefinite
Licenses	50		Indefinite
Syndicate capacity	10		Indefinite
Total identified intangible assets	$	7,655

Amortization of purchased intangibles

Amortization expense related to purchased intangibles amounted to $19 million, $171 million, and $108 million for the years ended December 31, 2016, 2015, and 2014, respectively. Amortization expense of purchased intangibles was low in 2016 reflecting the favorable impact of the amortization benefit of the fair value adjustment on acquired Unpaid losses and loss expenses. In 2017, the amortization is expected to increase to $251 million, primarily reflecting the increase in intangible amortization related to agency distribution relationships and renewal rights.

The following table presents, as of December 31, 2016, the expected estimated pre-tax amortization expense (benefit) of purchased intangibles, at current foreign currency exchange rates, for the next five years:



	Associated with the Chubb Corp Acquisition
For the Years Ending December 31 (in millions of U.S. dollars)	Agency distribution relationships and renewal rights		Internally developed technology		Fair value adjustment to Unpaid losses and loss expense ⁽¹⁾			Total		Other intangible assets		Total Amortization of purchased intangibles
2017	$	295	$	32	$	(160	)	$	167	$	84	$	251
2018	323		32		(101		)	254		74		328
2019	280		—		(62		)	218		68		286
2020	239		—		(35		)	204		59		263
2021	217		—		(20		)	197		52		249
Total	$	1,354	$	64	$	(378	)	$	1,040	$	337	$	1,377

⁽¹⁾

In connection with the Chubb Corp acquisition, we recorded an increase to Unpaid losses and loss expenses acquired as part of Chubb Corp of $715 million to adjust the carrying value of Chubb Corp's historical unpaid losses and loss expenses to fair value as of the acquisition date. This fair value adjustment amortizes through Amortization of purchased intangibles on the Consolidated statements of operations over a range of 5 to 17 years. The balance of the fair value adjustment on Unpaid losses and loss expense at December 31, 2016 was $470 million. Refer to Note 1(h) for additional information.

c) VOBA

The following table presents a roll-forward of VOBA:



(in millions of U.S. dollars)	2016			2015			2014
Balance, beginning of year	$	395		$	466		$	536
Amortization of VOBA ⁽¹⁾	(41		)	(42		)	(51		)
Foreign exchange revaluation	1			(29		)	(19		)
Balance, end of year	$	355		$	395		$	466


⁽¹⁾	Recognized in Policy acquisition costs in the Consolidated statements of operations.

The following table presents, as of December 31, 2016, the expected estimated pre-tax amortization expense related to VOBA for the next five years:



For the Year Ending December 31	VOBA
(in millions of U.S. dollars)	VOBA
2017	$	35
2018	31
2019	27
2020	23
2021	20
Total	$	136