þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Switzerland | 98-0091805 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer þ | Accelerated filer ¨ | |||||
Non-accelerated filer ¨ | (Do not check if a smaller reporting company) | Smaller reporting company ¨ | ||||
Emerging growth company ¨ |
Page | |||
Part I. | FINANCIAL INFORMATION | ||
Item 1. | |||
Note 1. | |||
Note 2. | |||
Note 3. | |||
Note 4. | |||
Note 5. | |||
Note 6. | |||
Note 7. | |||
Note 8. | |||
Note 9. | |||
Note 10. | |||
Note 11. | |||
Note 12. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II. | OTHER INFORMATION | ||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. |
ITEM 1. Financial Statements |
June 30 | December 31 | ||||||
(in millions of U.S. dollars, except share and per share data) | 2017 | 2016 | |||||
Assets | |||||||
Investments | |||||||
Fixed maturities available for sale, at fair value (amortized cost – $80,363 and $79,536) | $ | 81,645 | $ | 80,115 | |||
(includes hybrid financial instruments of $2 and $2) | |||||||
Fixed maturities held to maturity, at amortized cost (fair value – $10,560 and $10,670) | 10,371 | 10,644 | |||||
Equity securities, at fair value (cost – $697 and $706) | 856 | 814 | |||||
Short-term investments, at fair value and amortized cost | 2,651 | 3,002 | |||||
Other investments (cost – $4,410 and $4,270) | 4,685 | 4,519 | |||||
Total investments | 100,208 | 99,094 | |||||
Cash | 1,297 | 985 | |||||
Securities lending collateral | 1,545 | 1,092 | |||||
Accrued investment income | 901 | 918 | |||||
Insurance and reinsurance balances receivable | 9,662 | 8,970 | |||||
Reinsurance recoverable on losses and loss expenses | 13,358 | 13,577 | |||||
Reinsurance recoverable on policy benefits | 198 | 182 | |||||
Deferred policy acquisition costs | 4,546 | 4,314 | |||||
Value of business acquired | 337 | 355 | |||||
Goodwill | 15,434 | 15,332 | |||||
Other intangible assets | 6,579 | 6,763 | |||||
Prepaid reinsurance premiums | 2,592 | 2,448 | |||||
Investments in partially-owned insurance companies | 662 | 666 | |||||
Other assets | 5,669 | 5,090 | |||||
Total assets | $ | 162,988 | $ | 159,786 | |||
Liabilities | |||||||
Unpaid losses and loss expenses | $ | 60,394 | $ | 60,540 | |||
Unearned premiums | 15,289 | 14,779 | |||||
Future policy benefits | 5,190 | 5,036 | |||||
Insurance and reinsurance balances payable | 5,841 | 5,637 | |||||
Securities lending payable | 1,546 | 1,093 | |||||
Accounts payable, accrued expenses, and other liabilities | 8,952 | 8,617 | |||||
Deferred tax liabilities | 1,122 | 988 | |||||
Repurchase agreements | 1,408 | 1,403 | |||||
Short-term debt | 922 | 500 | |||||
Long-term debt | 11,667 | 12,610 | |||||
Trust preferred securities | 308 | 308 | |||||
Total liabilities | 112,639 | 111,511 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity | |||||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 465,375,141 and 465,968,716 shares outstanding) | 11,121 | 11,121 | |||||
Common Shares in treasury (14,408,723 and 13,815,148 shares) | (1,675 | ) | (1,480 | ) | |||
Additional paid-in capital | 14,522 | 15,335 | |||||
Retained earnings | 26,011 | 23,613 | |||||
Accumulated other comprehensive income (loss) (AOCI) | 370 | (314 | ) | ||||
Total shareholders’ equity | 50,349 | 48,275 | |||||
Total liabilities and shareholders’ equity | $ | 162,988 | $ | 159,786 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenues | |||||||||||||||
Net premiums written | $ | 7,581 | $ | 7,639 | $ | 14,291 | $ | 13,634 | |||||||
Decrease (increase) in unearned premiums | (344 | ) | (234 | ) | (282 | ) | 368 | ||||||||
Net premiums earned | 7,237 | 7,405 | 14,009 | 14,002 | |||||||||||
Net investment income | 770 | 708 | 1,515 | 1,382 | |||||||||||
Net realized gains (losses): | |||||||||||||||
Other-than-temporary impairment (OTTI) losses gross | (9 | ) | (16 | ) | (28 | ) | (87 | ) | |||||||
Portion of OTTI losses recognized in other comprehensive income (OCI) | 1 | — | 1 | 8 | |||||||||||
Net OTTI losses recognized in income | (8 | ) | (16 | ) | (27 | ) | (79 | ) | |||||||
Net realized gains (losses) excluding OTTI losses | 109 | (200 | ) | 121 | (531 | ) | |||||||||
Total net realized gains (losses) (includes $25, $2, $17, and $(150) reclassified from AOCI) | 101 | (216 | ) | 94 | (610 | ) | |||||||||
Total revenues | 8,108 | 7,897 | 15,618 | 14,774 | |||||||||||
Expenses | |||||||||||||||
Losses and loss expenses | 4,146 | 4,254 | 7,935 | 7,928 | |||||||||||
Policy benefits | 163 | 146 | 331 | 272 | |||||||||||
Policy acquisition costs | 1,449 | 1,560 | 2,846 | 2,973 | |||||||||||
Administrative expenses | 706 | 829 | 1,382 | 1,601 | |||||||||||
Interest expense | 147 | 153 | 301 | 299 | |||||||||||
Other (income) expense | (145 | ) | (29 | ) | (215 | ) | (1 | ) | |||||||
Amortization of purchased intangibles | 65 | 5 | 129 | 12 | |||||||||||
Chubb integration expenses | 72 | 98 | 183 | 246 | |||||||||||
Total expenses | 6,603 | 7,016 | 12,892 | 13,330 | |||||||||||
Income before income tax | 1,505 | 881 | 2,726 | 1,444 | |||||||||||
Income tax expense (includes $9, $6, $3 and $5 on reclassified unrealized gains and losses) | 200 | 155 | 328 | 279 | |||||||||||
Net income | $ | 1,305 | $ | 726 | $ | 2,398 | $ | 1,165 | |||||||
Other comprehensive income | |||||||||||||||
Unrealized appreciation | $ | 459 | $ | 947 | $ | 766 | $ | 1,852 | |||||||
Reclassification adjustment for net realized (gains) losses included in net income | (25 | ) | (2 | ) | (17 | ) | 150 | ||||||||
434 | 945 | 749 | 2,002 | ||||||||||||
Change in: | |||||||||||||||
Cumulative foreign currency translation adjustment | 102 | 81 | 236 | 393 | |||||||||||
Postretirement benefit liability adjustment | (35 | ) | 1 | (55 | ) | 3 | |||||||||
Other comprehensive income, before income tax | 501 | 1,027 | 930 | 2,398 | |||||||||||
Income tax expense related to OCI items | (131 | ) | (213 | ) | (246 | ) | (482 | ) | |||||||
Other comprehensive income | 370 | 814 | 684 | 1,916 | |||||||||||
Comprehensive income | $ | 1,675 | $ | 1,540 | $ | 3,082 | $ | 3,081 | |||||||
Earnings per share | |||||||||||||||
Basic earnings per share | $ | 2.79 | $ | 1.55 | $ | 5.12 | $ | 2.55 | |||||||
Diluted earnings per share | $ | 2.77 | $ | 1.54 | $ | 5.08 | $ | 2.53 |
Six Months Ended | |||||||
June 30 | |||||||
(in millions of U.S. dollars) | 2017 | 2016 | |||||
Common Shares | |||||||
Balance – beginning of period | $ | 11,121 | $ | 7,833 | |||
Shares issued for Chubb Corp acquisition | — | 3,288 | |||||
Balance – end of period | 11,121 | 11,121 | |||||
Common Shares in treasury | |||||||
Balance – beginning of period | (1,480 | ) | (1,922 | ) | |||
Common Shares repurchased | (475 | ) | — | ||||
Net shares redeemed under employee share-based compensation plans | 280 | 345 | |||||
Balance – end of period | (1,675 | ) | (1,577 | ) | |||
Additional paid-in capital | |||||||
Balance – beginning of period | 15,335 | 4,481 | |||||
Shares issued for Chubb Corp acquisition | — | 11,916 | |||||
Equity awards assumed in Chubb Corp acquisition | — | 323 | |||||
Net shares redeemed under employee share-based compensation plans | (275 | ) | (358 | ) | |||
Exercise of stock options | (38 | ) | (37 | ) | |||
Share-based compensation expense and other | 156 | 170 | |||||
Funding of dividends declared to Retained earnings | (656 | ) | (637 | ) | |||
Balance – end of period | 14,522 | 15,858 | |||||
Retained earnings | |||||||
Balance – beginning of period | 23,613 | 19,478 | |||||
Net income | 2,398 | 1,165 | |||||
Funding of dividends declared from Additional paid-in capital | 656 | 637 | |||||
Dividends declared on Common Shares | (656 | ) | (637 | ) | |||
Balance – end of period | 26,011 | 20,643 | |||||
Accumulated other comprehensive income (loss) | |||||||
Net unrealized appreciation on investments | |||||||
Balance – beginning of period | 1,058 | 874 | |||||
Change in period, before reclassification from AOCI, net of income tax expense of $(259) and $(477) | 507 | 1,375 | |||||
Amounts reclassified from AOCI, net of income tax benefit of $3 and $5 | (14 | ) | 155 | ||||
Change in period, net of income tax expense of $(256) and $(472) | 493 | 1,530 | |||||
Balance – end of period | 1,551 | 2,404 | |||||
Cumulative foreign currency translation adjustment | |||||||
Balance – beginning of period | (1,663 | ) | (1,539 | ) | |||
Change in period, net of income tax expense of $(7) and $(11) | 229 | 382 | |||||
Balance – end of period | (1,434 | ) | (1,157 | ) | |||
Postretirement benefit liability adjustment | |||||||
Balance – beginning of period | 291 | (70 | ) | ||||
Change in period, net of income tax benefit of $17 and $1 | (38 | ) | 4 | ||||
Balance – end of period | 253 | (66 | ) | ||||
Accumulated other comprehensive income | 370 | 1,181 | |||||
Total shareholders’ equity | $ | 50,349 | $ | 47,226 |
Six Months Ended June 30 | |||||||
(in millions of U.S. dollars) | 2017 | 2016 | |||||
Cash flows from operating activities | |||||||
Net income | $ | 2,398 | $ | 1,165 | |||
Adjustments to reconcile net income to net cash flows from operating activities | |||||||
Net realized (gains) losses | (94 | ) | 610 | ||||
Amortization of premiums/discounts on fixed maturities | 353 | 376 | |||||
Amortization of UPR related to the Chubb Corp acquisition | — | 1,095 | |||||
Deferred income taxes | (112 | ) | 48 | ||||
Unpaid losses and loss expenses | (411 | ) | 330 | ||||
Unearned premiums | 386 | (382 | ) | ||||
Future policy benefits | 134 | 106 | |||||
Insurance and reinsurance balances payable | 278 | 193 | |||||
Accounts payable, accrued expenses, and other liabilities | (603 | ) | 18 | ||||
Income taxes payable | (103 | ) | 67 | ||||
Insurance and reinsurance balances receivable | (575 | ) | (238 | ) | |||
Reinsurance recoverable on losses and loss expenses | 312 | (17 | ) | ||||
Reinsurance recoverable on policy benefits | (15 | ) | (11 | ) | |||
Deferred policy acquisition costs | (179 | ) | (1,042 | ) | |||
Prepaid reinsurance premiums | (139 | ) | 12 | ||||
Other | 10 | (177 | ) | ||||
Net cash flows from operating activities | 1,640 | 2,153 | |||||
Cash flows from investing activities | |||||||
Purchases of fixed maturities available for sale | (12,260 | ) | (17,077 | ) | |||
Purchases of fixed maturities held to maturity | (212 | ) | (121 | ) | |||
Purchases of equity securities | (82 | ) | (78 | ) | |||
Sales of fixed maturities available for sale | 6,873 | 11,868 | |||||
Sales of equity securities | 104 | 932 | |||||
Maturities and redemptions of fixed maturities available for sale | 5,169 | 3,910 | |||||
Maturities and redemptions of fixed maturities held to maturity | 408 | 443 | |||||
Net change in short-term investments | 354 | 11,711 | |||||
Net derivative instruments settlements | (129 | ) | (93 | ) | |||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | — | (14,248 | ) | ||||
Other | (121 | ) | 81 | ||||
Net cash flows from (used for) investing activities | 104 | (2,672 | ) | ||||
Cash flows from financing activities | |||||||
Dividends paid on Common Shares | (646 | ) | (530 | ) | |||
Common Shares repurchased | (475 | ) | — | ||||
Repayment of long-term debt | (500 | ) | — | ||||
Proceeds from issuance of repurchase agreements | 1,343 | 904 | |||||
Repayment of repurchase agreements | (1,338 | ) | (902 | ) | |||
Proceeds from share-based compensation plans | 89 | 92 | |||||
Policyholder contract deposits | 209 | 274 | |||||
Policyholder contract withdrawals | (125 | ) | (103 | ) | |||
Other | — | (4 | ) | ||||
Net cash flows used for financing activities | (1,443 | ) | (269 | ) | |||
Effect of foreign currency rate changes on cash and cash equivalents | 11 | 24 | |||||
Net increase (decrease) in cash | 312 | (764 | ) | ||||
Cash – beginning of period | 985 | 1,775 | |||||
Cash – end of period | $ | 1,297 | $ | 1,011 | |||
Supplemental cash flow information | |||||||
Taxes paid | $ | 510 | $ | 259 | |||
Interest paid | $ | 327 | $ | 319 |
(in millions of U.S. dollars) | Three Months Ended June 30, 2016 | January 14, 2016 to June 30, 2016 | |||||
Total revenues | $ | 2,745 | $ | 5,232 | |||
Net income | $ | 326 | $ | 581 |
Three Months Ended | Six Months Ended | ||||||
(in millions of U.S. dollars, except per share data) | June 30, 2016 | June 30, 2016 | |||||
Total revenues | $ | 7,915 | $ | 15,237 | |||
Net income | $ | 712 | $ | 1,246 | |||
Earnings per share | |||||||
Basic earnings per share | $ | 1.52 | $ | 2.67 | |||
Diluted earnings per share | $ | 1.51 | $ | 2.65 |
June 30, 2017 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 3,122 | $ | 40 | $ | (26 | ) | $ | 3,136 | $ | — | ||||||||
Foreign | 21,139 | 653 | (82 | ) | 21,710 | (2 | ) | ||||||||||||
Corporate securities | 24,744 | 714 | (94 | ) | 25,364 | (7 | ) | ||||||||||||
Mortgage-backed securities | 14,469 | 148 | (144 | ) | 14,473 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 16,889 | 138 | (65 | ) | 16,962 | — | |||||||||||||
$ | 80,363 | $ | 1,693 | $ | (411 | ) | $ | 81,645 | $ | (10 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 602 | $ | 13 | $ | (2 | ) | $ | 613 | $ | — | ||||||||
Foreign | 613 | 29 | — | 642 | — | ||||||||||||||
Corporate securities | 2,645 | 62 | (7 | ) | 2,700 | — | |||||||||||||
Mortgage-backed securities | 1,268 | 37 | (1 | ) | 1,304 | — | |||||||||||||
States, municipalities, and political subdivisions | 5,243 | 66 | (8 | ) | 5,301 | — | |||||||||||||
$ | 10,371 | $ | 207 | $ | (18 | ) | $ | 10,560 | $ | — |
December 31, 2016 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 2,883 | $ | 32 | $ | (45 | ) | $ | 2,870 | $ | — | ||||||||
Foreign | 20,929 | 636 | (125 | ) | 21,440 | (5 | ) | ||||||||||||
Corporate securities | 23,736 | 580 | (167 | ) | 24,149 | (8 | ) | ||||||||||||
Mortgage-backed securities | 14,066 | 135 | (194 | ) | 14,007 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 17,922 | 72 | (345 | ) | 17,649 | — | |||||||||||||
$ | 79,536 | $ | 1,455 | $ | (876 | ) | $ | 80,115 | $ | (14 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 655 | $ | 9 | $ | (3 | ) | $ | 661 | $ | — | ||||||||
Foreign | 640 | 28 | (1 | ) | 667 | — | |||||||||||||
Corporate securities | 2,771 | 50 | (26 | ) | 2,795 | — | |||||||||||||
Mortgage-backed securities | 1,393 | 35 | — | 1,428 | — | ||||||||||||||
States, municipalities, and political subdivisions | 5,185 | 26 | (92 | ) | 5,119 | — | |||||||||||||
$ | 10,644 | $ | 148 | $ | (122 | ) | $ | 10,670 | $ | — |
June 30 | December 31 | ||||||||||||||
2017 | 2016 | ||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Available for sale | |||||||||||||||
Due in 1 year or less | $ | 3,799 | $ | 3,823 | $ | 3,892 | $ | 3,913 | |||||||
Due after 1 year through 5 years | 23,748 | 24,207 | 24,027 | 24,429 | |||||||||||
Due after 5 years through 10 years | 28,040 | 28,498 | 27,262 | 27,379 | |||||||||||
Due after 10 years | 10,307 | 10,644 | 10,289 | 10,387 | |||||||||||
65,894 | 67,172 | 65,470 | 66,108 | ||||||||||||
Mortgage-backed securities | 14,469 | 14,473 | 14,066 | 14,007 | |||||||||||
$ | 80,363 | $ | 81,645 | $ | 79,536 | $ | 80,115 | ||||||||
Held to maturity | |||||||||||||||
Due in 1 year or less | $ | 807 | $ | 814 | $ | 430 | $ | 435 | |||||||
Due after 1 year through 5 years | 2,353 | 2,396 | 2,646 | 2,691 | |||||||||||
Due after 5 years through 10 years | 3,001 | 3,045 | 2,969 | 2,944 | |||||||||||
Due after 10 years | 2,942 | 3,001 | 3,206 | 3,172 | |||||||||||
9,103 | 9,256 | 9,251 | 9,242 | ||||||||||||
Mortgage-backed securities | 1,268 | 1,304 | 1,393 | 1,428 | |||||||||||
$ | 10,371 | $ | 10,560 | $ | 10,644 | $ | 10,670 |
June 30 | December 31 | ||||||
(in millions of U.S. dollars) | 2017 | 2016 | |||||
Cost | $ | 697 | $ | 706 | |||
Gross unrealized appreciation | 164 | 129 | |||||
Gross unrealized depreciation | (5 | ) | (21 | ) | |||
Fair value | $ | 856 | $ | 814 |
• | the amount of time a security has been in a loss position and the magnitude of the loss position; |
• | the period in which cost is expected to be recovered, if at all, based on various criteria including economic conditions and other issuer-specific developments; and |
• | our ability and intent to hold the security to the expected recovery period. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Fixed maturities: | |||||||||||||||
OTTI on fixed maturities, gross | $ | (5 | ) | $ | (11 | ) | $ | (11 | ) | $ | (78 | ) | |||
OTTI on fixed maturities recognized in OCI (pre-tax) | 1 | — | 1 | 8 | |||||||||||
OTTI on fixed maturities, net | (4 | ) | (11 | ) | (10 | ) | (70 | ) | |||||||
Gross realized gains excluding OTTI | 45 | 37 | 79 | 102 | |||||||||||
Gross realized losses excluding OTTI | (18 | ) | (19 | ) | (58 | ) | (215 | ) | |||||||
Total fixed maturities | 23 | 7 | 11 | (183 | ) | ||||||||||
Equity securities: | |||||||||||||||
OTTI on equity securities | (3 | ) | (5 | ) | (8 | ) | (6 | ) | |||||||
Gross realized gains excluding OTTI | 6 | 4 | 15 | 44 | |||||||||||
Gross realized losses excluding OTTI | (1 | ) | (4 | ) | (1 | ) | (5 | ) | |||||||
Total equity securities | 2 | (5 | ) | 6 | 33 | ||||||||||
OTTI on other investments | (1 | ) | — | (9 | ) | (3 | ) | ||||||||
Foreign exchange gains (losses) | 14 | (22 | ) | (5 | ) | 17 | |||||||||
Investment and embedded derivative instruments | (16 | ) | (47 | ) | (10 | ) | (86 | ) | |||||||
Fair value adjustments on insurance derivative | 118 | (131 | ) | 211 | (359 | ) | |||||||||
S&P put options and futures | (38 | ) | (28 | ) | (112 | ) | (43 | ) | |||||||
Other derivative instruments | (1 | ) | — | 1 | (2 | ) | |||||||||
Other | — | 10 | 1 | 16 | |||||||||||
Net realized gains (losses) | $ | 101 | $ | (216 | ) | $ | 94 | $ | (610 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Balance of credit losses related to securities still held – beginning of period | $ | 32 | $ | 57 | $ | 35 | $ | 53 | |||||||
Additions where no OTTI was previously recorded | 1 | 1 | 1 | 12 | |||||||||||
Additions where an OTTI was previously recorded | — | 6 | 1 | 12 | |||||||||||
Reductions for securities sold during the period | (4 | ) | (13 | ) | (8 | ) | (26 | ) | |||||||
Balance of credit losses related to securities still held – end of period | $ | 29 | $ | 51 | $ | 29 | $ | 51 |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
June 30, 2017 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 2,021 | $ | (28 | ) | $ | — | $ | — | $ | 2,021 | $ | (28 | ) | |||||||||
Foreign | 4,381 | (57 | ) | 599 | (25 | ) | 4,980 | (82 | ) | ||||||||||||||
Corporate securities | 4,410 | (72 | ) | 372 | (29 | ) | 4,782 | (101 | ) | ||||||||||||||
Mortgage-backed securities | 7,657 | (141 | ) | 118 | (4 | ) | 7,775 | (145 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 9,049 | (68 | ) | 182 | (5 | ) | 9,231 | (73 | ) | ||||||||||||||
Total fixed maturities | 27,518 | (366 | ) | 1,271 | (63 | ) | 28,789 | (429 | ) | ||||||||||||||
Equity securities | 104 | (5 | ) | — | — | 104 | (5 | ) | |||||||||||||||
Other investments | 70 | (4 | ) | — | — | 70 | (4 | ) | |||||||||||||||
Total | $ | 27,692 | $ | (375 | ) | $ | 1,271 | $ | (63 | ) | $ | 28,963 | $ | (438 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 2016 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 2,216 | $ | (48 | ) | $ | — | $ | — | $ | 2,216 | $ | (48 | ) | |||||||||
Foreign | 5,918 | (99 | ) | 386 | (27 | ) | 6,304 | (126 | ) | ||||||||||||||
Corporate securities | 7,021 | (149 | ) | 641 | (44 | ) | 7,662 | (193 | ) | ||||||||||||||
Mortgage-backed securities | 8,638 | (189 | ) | 234 | (5 | ) | 8,872 | (194 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 19,448 | (435 | ) | 49 | (2 | ) | 19,497 | (437 | ) | ||||||||||||||
Total fixed maturities | 43,241 | (920 | ) | 1,310 | (78 | ) | 44,551 | (998 | ) | ||||||||||||||
Equity securities | 199 | (21 | ) | — | — | 199 | (21 | ) | |||||||||||||||
Other investments | 201 | (18 | ) | — | — | 201 | (18 | ) | |||||||||||||||
Total | $ | 43,641 | $ | (959 | ) | $ | 1,310 | $ | (78 | ) | $ | 44,951 | $ | (1,037 | ) |
June 30 | December 31 | ||||||
(in millions of U.S. dollars) | 2017 | 2016 | |||||
Trust funds | $ | 14,938 | $ | 13,880 | |||
Deposits with U.S. regulatory authorities | 2,325 | 2,203 | |||||
Deposits with non-U.S. regulatory authorities | 2,170 | 2,191 | |||||
Assets pledged under repurchase agreements | 1,472 | 1,461 | |||||
Other pledged assets | 371 | 435 | |||||
$ | 21,276 | $ | 20,170 |
• | Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets; |
• | Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as |
• | Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants |
June 30, 2017 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 2,486 | $ | 650 | $ | — | $ | 3,136 | |||||||
Foreign | — | 21,625 | 85 | 21,710 | |||||||||||
Corporate securities | — | 24,617 | 747 | 25,364 | |||||||||||
Mortgage-backed securities | — | 14,428 | 45 | 14,473 | |||||||||||
States, municipalities, and political subdivisions | — | 16,962 | — | 16,962 | |||||||||||
2,486 | 78,282 | 877 | 81,645 | ||||||||||||
Equity securities | 817 | — | 39 | 856 | |||||||||||
Short-term investments | 1,421 | 1,223 | 7 | 2,651 | |||||||||||
Other investments (1) | 430 | 282 | 243 | 955 | |||||||||||
Securities lending collateral | — | 1,545 | — | 1,545 | |||||||||||
Investment derivative instruments | 12 | — | — | 12 | |||||||||||
Other derivative instruments | 9 | — | — | 9 | |||||||||||
Separate account assets | 2,147 | 101 | — | 2,248 | |||||||||||
Total assets measured at fair value (1) | $ | 7,322 | $ | 81,433 | $ | 1,166 | $ | 89,921 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 35 | $ | — | $ | — | $ | 35 | |||||||
Other derivative instruments | — | — | 2 | 2 | |||||||||||
GLB (2) | — | — | 357 | 357 | |||||||||||
Total liabilities measured at fair value | $ | 35 | $ | — | $ | 359 | $ | 394 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,711 million and other investments of $19 million at June 30, 2017 measured using NAV as a practical expedient. |
(2) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. |
December 31, 2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 2,175 | $ | 695 | $ | — | $ | 2,870 | |||||||
Foreign | — | 21,366 | 74 | 21,440 | |||||||||||
Corporate securities | — | 23,468 | 681 | 24,149 | |||||||||||
Mortgage-backed securities | — | 13,962 | 45 | 14,007 | |||||||||||
States, municipalities, and political subdivisions | — | 17,649 | — | 17,649 | |||||||||||
2,175 | 77,140 | 800 | 80,115 | ||||||||||||
Equity securities | 773 | — | 41 | 814 | |||||||||||
Short-term investments | 1,757 | 1,220 | 25 | 3,002 | |||||||||||
Other investments (1) | 384 | 259 | 225 | 868 | |||||||||||
Securities lending collateral | — | 1,092 | — | 1,092 | |||||||||||
Investment derivative instruments | 31 | — | — | 31 | |||||||||||
Other derivative instruments | 3 | — | — | 3 | |||||||||||
Separate account assets | 1,784 | 95 | — | 1,879 | |||||||||||
Total assets measured at fair value (1) | $ | 6,907 | $ | 79,806 | $ | 1,091 | $ | 87,804 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 54 | $ | — | $ | — | $ | 54 | |||||||
Other derivative instruments | — | — | 13 | 13 | |||||||||||
GLB (2) | — | — | 559 | 559 | |||||||||||
Total liabilities measured at fair value | $ | 54 | $ | — | $ | 572 | $ | 626 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,626 million and other investments of $25 million at December 31, 2016 measured using NAV as a practical expedient. |
(2) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. |
June 30 | December 31 | ||||||||||||||||
Expected Liquidation Period of Underlying Assets | 2017 | 2016 | |||||||||||||||
(in millions of U.S. dollars) | Fair Value | Maximum Future Funding Commitments | Fair Value | Maximum Future Funding Commitments | |||||||||||||
Financial | 5 to 9 Years | $ | 576 | $ | 354 | $ | 548 | $ | 428 | ||||||||
Real Assets | 3 to 7 Years | 622 | 181 | 536 | 230 | ||||||||||||
Distressed | 5 to 9 Years | 350 | 175 | 485 | 179 | ||||||||||||
Private Credit | 3 to 7 Years | 238 | 337 | 236 | 259 | ||||||||||||
Traditional | 3 to 9 Years | 1,646 | 805 | 1,550 | 930 | ||||||||||||
Vintage | 1 to 2 Years | 19 | — | 21 | 14 | ||||||||||||
Investment funds | Not Applicable | 260 | — | 251 | — | ||||||||||||
$ | 3,711 | $ | 1,852 | $ | 3,627 | $ | 2,040 |
Investment Category: | Consists of investments in private equity funds: | |
Financial | targeting financial services companies such as financial institutions and insurance services worldwide | |
Real Assets | targeting investments related to hard physical assets such as real estate, infrastructure and natural resources | |
Distressed | targeting distressed corporate debt/credit and equity opportunities in the U.S. | |
Private Credit | targeting privately originated corporate debt investments including senior secured loans and subordinated bonds | |
Traditional | employing traditional private equity investment strategies such as buyout and growth equity globally | |
Vintage | made before 2002 and where the funds’ commitment periods had already expired |
(in millions of U.S. dollars, except for percentages) | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges | |||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||
GLB (1) | $ | 357 | $ | 559 | Actuarial model | Lapse rate | 3% – 34% | ||||||
Annuitization rate | 0% – 78% |
(1) | Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits. |
Assets | Liabilities | |||||||||||||||||||||||||||
Three Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | ||||||||||||||||||||||
June 30, 2017 | Foreign | Corporate securities | MBS | |||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Balance – beginning of period | $ | 80 | $ | 737 | $ | 45 | $ | 41 | $ | 21 | $ | 233 | $ | 11 | $ | 466 | ||||||||||||
Transfers into Level 3 | — | 28 | — | — | — | — | — | 9 | ||||||||||||||||||||
Transfers out of Level 3 | — | (13 | ) | — | — | — | — | (9 | ) | — | ||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | 3 | — | — | 1 | — | (1 | ) | — | — | |||||||||||||||||||
Net Realized Gains/Losses | 2 | — | — | — | — | — | — | (118 | ) | |||||||||||||||||||
Purchases | 19 | 65 | — | 6 | 7 | 16 | — | — | ||||||||||||||||||||
Sales | (19 | ) | (28 | ) | — | (9 | ) | — | — | — | — | |||||||||||||||||
Settlements | — | (42 | ) | — | — | (21 | ) | (5 | ) | — | — | |||||||||||||||||
Balance – end of period | $ | 85 | $ | 747 | $ | 45 | $ | 39 | $ | 7 | $ | 243 | $ | 2 | $ | 357 | ||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (118 | ) |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million, respectively. |
Liabilities | ||||||||||||||||||||||||||||
Three Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | ||||||||||||||||||||||
June 30, 2016 | Foreign | Corporate securities | MBS | |||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Balance – beginning of period | $ | 62 | $ | 261 | $ | 48 | $ | 29 | $ | — | $ | 211 | $ | 10 | $ | 839 | ||||||||||||
Transfers into Level 3 | 3 | 2 | — | — | — | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | 3 | 9 | — | (1 | ) | — | — | — | — | |||||||||||||||||||
Net Realized Gains/Losses | (1 | ) | (2 | ) | — | 1 | — | — | — | 132 | ||||||||||||||||||
Purchases | 27 | 31 | 1 | 10 | 50 | 8 | — | — | ||||||||||||||||||||
Sales | (7 | ) | (16 | ) | — | (2 | ) | — | — | — | — | |||||||||||||||||
Settlements | — | (4 | ) | — | — | — | (3 | ) | — | — | ||||||||||||||||||
Balance – end of period | $ | 87 | $ | 281 | $ | 49 | $ | 37 | $ | 50 | $ | 216 | $ | 10 | $ | 971 | ||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 132 |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. |
Assets | Liabilities | |||||||||||||||||||||||||||
Six Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | ||||||||||||||||||||||
June 30, 2017 | Foreign | Corporate securities | MBS | |||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Balance – beginning of period | $ | 74 | $ | 681 | $ | 45 | $ | 41 | $ | 25 | $ | 225 | $ | 13 | $ | 559 | ||||||||||||
Transfers into Level 3 | — | 57 | — | — | — | — | — | 9 | ||||||||||||||||||||
Transfers out of Level 3 | — | (67 | ) | — | — | — | — | (9 | ) | — | ||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | 2 | (8 | ) | — | 1 | — | 3 | — | — | |||||||||||||||||||
Net Realized Gains/Losses | 1 | (1 | ) | — | — | — | — | (2 | ) | (211 | ) | |||||||||||||||||
Purchases | 33 | 221 | 1 | 6 | 14 | 24 | — | — | ||||||||||||||||||||
Sales | (22 | ) | (55 | ) | (1 | ) | (9 | ) | — | — | — | — | ||||||||||||||||
Settlements | (3 | ) | (81 | ) | — | — | (32 | ) | (9 | ) | — | — | ||||||||||||||||
Balance – end of period | $ | 85 | $ | 747 | $ | 45 | $ | 39 | $ | 7 | $ | 243 | $ | 2 | $ | 357 | ||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | $ | (211 | ) |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively. |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Six Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | |||||||||||||||||||||||||
June 30, 2016 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | — | $ | 212 | $ | 6 | $ | 609 | |||||||||||||||
Transfers into Level 3 | 9 | 18 | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | (2 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | 9 | 11 | — | (1 | ) | — | — | — | — | ||||||||||||||||||||||
Net Realized Gains/Losses | (6 | ) | (8 | ) | — | 1 | — | — | 2 | 362 | |||||||||||||||||||||
Purchases (2) | 32 | 124 | 1 | 23 | 50 | 14 | 2 | — | |||||||||||||||||||||||
Sales | (8 | ) | (30 | ) | (5 | ) | (2 | ) | — | — | — | — | |||||||||||||||||||
Settlements | (4 | ) | (8 | ) | — | — | — | (10 | ) | — | — | ||||||||||||||||||||
Balance – end of period | $ | 87 | $ | 281 | $ | 49 | $ | 37 | $ | 50 | $ | 216 | $ | 10 | $ | 971 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (5 | ) | $ | (7 | ) | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | 362 |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively. |
(2) | Includes acquired invested assets as a result of the Chubb Corp acquisition. |
June 30, 2017 | Fair Value | Carrying Value | |||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 528 | $ | 85 | $ | — | $ | 613 | $ | 602 | |||||||||
Foreign | — | 642 | — | 642 | 613 | ||||||||||||||
Corporate securities | — | 2,688 | 12 | 2,700 | 2,645 | ||||||||||||||
Mortgage-backed securities | — | 1,304 | — | 1,304 | 1,268 | ||||||||||||||
States, municipalities, and political subdivisions | — | 5,301 | — | 5,301 | 5,243 | ||||||||||||||
Total assets | $ | 528 | $ | 10,020 | $ | 12 | $ | 10,560 | $ | 10,371 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,408 | $ | — | $ | 1,408 | $ | 1,408 | |||||||||
Short-term debt | — | 931 | — | 931 | 922 | ||||||||||||||
Long-term debt | — | 12,366 | — | 12,366 | 11,667 | ||||||||||||||
Trust preferred securities | — | 462 | — | 462 | 308 | ||||||||||||||
Total liabilities | $ | — | $ | 15,167 | $ | — | $ | 15,167 | $ | 14,305 |
December 31, 2016 | Fair Value | Carrying Value | |||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 555 | $ | 106 | $ | — | $ | 661 | $ | 655 | |||||||||
Foreign | — | 667 | — | 667 | 640 | ||||||||||||||
Corporate securities | — | 2,782 | 13 | 2,795 | 2,771 | ||||||||||||||
Mortgage-backed securities | — | 1,428 | — | 1,428 | 1,393 | ||||||||||||||
States, municipalities, and political subdivisions | — | 5,119 | — | 5,119 | 5,185 | ||||||||||||||
Total assets | $ | 555 | $ | 10,102 | $ | 13 | $ | 10,670 | $ | 10,644 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,403 | $ | — | $ | 1,403 | $ | 1,403 | |||||||||
Short-term debt | — | 503 | — | 503 | 500 | ||||||||||||||
Long-term debt | — | 12,998 | — | 12,998 | 12,610 | ||||||||||||||
Trust preferred securities | — | 456 | — | 456 | 308 | ||||||||||||||
Total liabilities | $ | — | $ | 15,360 | $ | — | $ | 15,360 | $ | 14,821 |
Six Months Ended June 30 | ||||||||
(in millions of U.S. dollars) | 2017 | 2016 | ||||||
Gross unpaid losses and loss expenses – beginning of period | $ | 60,540 | $ | 37,303 | ||||
Reinsurance recoverable on unpaid losses (1) | (12,708 | ) | (10,741 | ) | ||||
Net unpaid losses and loss expenses – beginning of period | 47,832 | 26,562 | ||||||
Acquisition of subsidiaries | — | 21,398 | ||||||
Total | 47,832 | 47,960 | ||||||
Net losses and loss expenses incurred in respect of losses occurring in: | ||||||||
Current year | 8,396 | 8,529 | ||||||
Prior years (2) | (461 | ) | (601 | ) | ||||
Total | 7,935 | 7,928 | ||||||
Net losses and loss expenses paid in respect of losses occurring in: | ||||||||
Current year | 2,271 | 1,964 | ||||||
Prior years | 5,758 | 5,541 | ||||||
Total | 8,029 | 7,505 | ||||||
Foreign currency revaluation and other | 171 | 40 | ||||||
Net unpaid losses and loss expenses – end of period | 47,909 | 48,423 | ||||||
Reinsurance recoverable on unpaid losses (1) | 12,485 | 12,396 | ||||||
Gross unpaid losses and loss expenses – end of period | $ | 60,394 | $ | 60,819 |
• | Net favorable development of $101 million in long-tail business, primarily from: |
• | Net favorable development of $83 million in our workers’ compensation lines with favorable development of $57 million in the 2016 accident year related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. Favorable development of $40 million in accident years 2015 and prior was principally due to lower than expected loss experience and revision to development patterns used in our loss projection methods for select portfolios; and |
• | Net favorable development of $37 million in our commercial-multi peril (CMP) and monoline general liability lines, driven by favorable paid and reported loss activity relative to prior expectations, principally in accident years 2008 through 2013. |
• | Net favorable development of $30 million in short-tail business, primarily from favorable development of $29 million in our commercial property portfolios, driven by lower than expected loss emergence in the 2014 and 2016 accident years. |
• | Net favorable development of $200 million in long-tail business, primarily from: |
• | Net favorable development of $84 million in our workers’ compensation lines due to the same factors experienced for the three months ended June 30, 2017, as described above; |
• | Net favorable development of $74 million in our commercial excess and umbrella portfolios, primarily in accident years 2010 and prior, driven by lower than expected reported loss activity, and an increase in weighting towards experience-based methods; |
• | Net favorable development of $37 million in our commercial-multi peril (CMP) and monoline general liability lines, due to the same factors experienced for the three months ended June 30, 2017, as described above; and |
• | Net favorable development of $25 million in our professional Errors and Omissions (E&O) portfolios, primarily in the 2012 and 2013 accident years, arising from lower than expected reported loss activity, partially offset by claim-specific adverse development. |
• | Net favorable development of $110 million in short-tail business, primarily from: |
• | Net favorable development of $45 million in our credit-related business, primarily due to lower than expected claims severity in the 2015 accident year; |
• | Favorable development of $33 million in our property lines, primarily in our commercial property portfolios, due to the same factors experienced for the three months ended June 30, 2017 as described above; and |
• | Net favorable development of $24 million in our accident & health (A&H) business, primarily due to lower than expected loss emergence in the 2015 and 2016 accident years. |
• | Net favorable development of $167 million in long-tail business, primarily from: |
• | Net favorable development of $114 million in our workers’ compensation lines with favorable development of $40 million in the 2015 accident year related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. Favorable development of $59 million driven by accident years 2011 and prior was principally due to lower than expected loss experience and revision to the basis for selecting development patterns used in our loss projection methods. Adverse development in accident years 2012 through 2015 was due to a small number of large claims in our excess business; |
• | Net favorable development of $50 million in our commercial-multi peril (CMP) and monoline general liability lines, driven by favorable paid and reported loss activity relative to prior expectations, principally in accident years 2007 through 2014; and |
• | Net favorable development of $20 million in our professional E&O portfolios, in the 2003 accident year due to a favorable development on a specific claim. |
• | Net favorable development of $309 million in long-tail business, primarily from: |
• | Favorable development of $145 million in our commercial excess and umbrella portfolios, driven by continued lower than expected reported loss activity in accident years 2010 and prior; in general, the severity of claims has been less than previously expected; |
• | Net favorable development of $114 million on our workers’ compensation lines due to the same factors experienced for the three months ended June 30, 2016, as described above; |
• | Favorable development of $63 million in our professional E&O portfolios, primarily impacting the 2012 and prior accident years and arising from both lower than expected reported loss activity and re-assessments of remaining claim-specific liabilities for the older accident years; and |
• | Net favorable development of $24 million in our primary casualty and general liability portfolios was driven by $50 million favorable development in our CMP and monoline general liability lines as described above, and $26 million adverse development due to higher than expected reported loss activity, mainly associated with construction defect coverages. |
• | Net favorable development of $37 million in short-tail business, primarily from favorable development of $24 million in our surety business, due to favorable claim emergence in the 2013 accident year. |
• | Net favorable development of $88 million in short-tail business, primarily from: |
• | Favorable development of $37 million in property and marine (excluding technical lines), primarily in accident years 2013 through 2015,driven mainly by favorable U.K. and Continental Europe loss emergence, including favorable claim-specific loss settlements; |
• | Favorable development of $26 million in technical and energy lines, primarily from favorable loss emergence in accident years 2014 through 2016 primarily in offshore where experience has been better than expected; and |
• | Favorable development of $19 million in A&H lines, primarily from favorable loss emergence in Asia Pacific and Continental Europe in accident years 2014 through 2016. |
• | Net favorable development of $108 million in short-tail business, due primarily to the same factors experienced for the three months ended June 30, 2017 as described above; and |
• | Net adverse development of $32 million in long-tail business, primarily in our casualty lines, driven by a change in the discount rate in the U.K. (Ogden rate) impacting the 2016 and prior accident years. |
• | Net favorable development of $84 million in short-tail business, primarily from: |
• | Favorable development of $38 million in property (excluding technical lines), primarily from favorable Continental Europe loss emergence in accident years 2013 through 2015; and |
• | Favorable development of $32 million in energy lines, primarily from a claims review of catastrophe impacts on underwriting years 2004 through 2008, as well as favorable loss emergence in accident years 2010 through 2013, primarily in offshore where experience has been better than expected. |
• | Net favorable development of $36 million in our casualty and professional liability lines, primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence. |
• | Net favorable development of $27 million, comprising $36 million in our casualty and professional liability lines as described above, as well as adverse development of $9 million in our motor and excess liability lines, driven by a change in the discount rate in the U.K. (Ogden rate) primarily impacting the 2015 and prior treaty years. |
• | Favorable development of $41 million in casualty lines primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence. |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||
Consolidated Balance Sheet Location | Fair Value | Notional Value/ Payment Provision | Fair Value | Notional Value/ Payment Provision | |||||||||||||||||||||
(in millions of U.S. dollars) | Derivative Asset | Derivative (Liability) | Derivative Asset | Derivative (Liability) | |||||||||||||||||||||
Investment and embedded derivative instruments | |||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 8 | $ | (30 | ) | $ | 2,201 | $ | 25 | $ | (50 | ) | $ | 2,220 | ||||||||||
Cross-currency swaps | OA / (AP) | — | — | 45 | — | — | 95 | ||||||||||||||||||
Options/Futures contracts on notes and bonds | OA / (AP) | 4 | (5 | ) | 1,376 | 6 | (4 | ) | 2,344 | ||||||||||||||||
Convertible securities (1) | FM AFS / ES | 2 | — | 7 | 2 | — | 7 | ||||||||||||||||||
$ | 14 | $ | (35 | ) | $ | 3,629 | $ | 33 | $ | (54 | ) | $ | 4,666 | ||||||||||||
Other derivative instruments | |||||||||||||||||||||||||
Futures contracts on equities (2) | OA / (AP) | $ | 5 | $ | — | $ | 1,428 | $ | 1 | $ | — | $ | 1,316 | ||||||||||||
Other | OA / (AP) | 4 | (2 | ) | 249 | 2 | (13 | ) | 214 | ||||||||||||||||
$ | 9 | $ | (2 | ) | $ | 1,677 | $ | 3 | $ | (13 | ) | $ | 1,530 | ||||||||||||
GLB(3) | (AP) / (FPB) | $ | — | $ | (684 | ) | $ | 1,180 | $ | — | $ | (853 | ) | $ | 1,264 |
(1) | Includes fair value of embedded derivatives. |
(2) | Related to GMDB and GLB blocks of business. |
(3) | Includes both future policy benefits reserves and fair value derivative adjustment. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts. |
Remaining contractual maturity | ||||||||
June 30 | December 31 | |||||||
2017 | 2016 | |||||||
(in millions of U.S. dollars) | Overnight and Continuous | |||||||
Collateral held under securities lending agreements: | ||||||||
Cash | $ | 1,062 | $ | 423 | ||||
U.S. Treasury and agency | 82 | 54 | ||||||
Foreign | 263 | 578 | ||||||
Corporate securities | 1 | 37 | ||||||
Mortgage-backed securities | 60 | — | ||||||
Equity securities | 77 | — | ||||||
$ | 1,545 | $ | 1,092 | |||||
Gross amount of recognized liability for securities lending payable | $ | 1,546 | $ | 1,093 | ||||
Difference (1) | $ | (1 | ) | $ | (1 | ) |
(1) | The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable at both June 30, 2017 and December 31, 2016, due to accrued interest recorded in the securities lending payable. |
Remaining contractual maturity | |||||||||||||||||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
30-90 Days | Greater than 90 Days | Total | Up to 30 Days | Greater than 90 Days | Total | ||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Collateral pledged under repurchase agreements: | |||||||||||||||||||||||
Cash | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | 1 | |||||||||||
U.S. Treasury and agency | 6 | 240 | 246 | 230 | 10 | 240 | |||||||||||||||||
Mortgage-backed securities | 495 | 731 | 1,226 | 339 | 881 | 1,220 | |||||||||||||||||
$ | 501 | $ | 971 | $ | 1,472 | $ | 569 | $ | 892 | $ | 1,461 | ||||||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,408 | $ | 1,403 | |||||||||||||||||||
Difference (1) | $ | 64 | $ | 58 |
(1) | Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. |
Three Months Ended | Six Months Ended | |||||||||||||
June 30 | June 30 | |||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | ||||||||||
Investment and embedded derivative instruments | ||||||||||||||
Foreign currency forward contracts | $ | (7 | ) | $ | (10 | ) | $ | 7 | $ | (20 | ) | |||
All other futures contracts and options | (9 | ) | (37 | ) | (17 | ) | (71 | ) | ||||||
Convertible securities (1) | — | — | — | 5 | ||||||||||
Total investment and embedded derivative instruments | $ | (16 | ) | $ | (47 | ) | $ | (10 | ) | $ | (86 | ) | ||
GLB and other derivative instruments | ||||||||||||||
GLB (2) | $ | 118 | $ | (131 | ) | $ | 211 | $ | (359 | ) | ||||
Futures contracts on equities (3) | (38 | ) | (28 | ) | (112 | ) | (43 | ) | ||||||
Other | (1 | ) | — | 1 | (2 | ) | ||||||||
Total GLB and other derivative instruments | $ | 79 | $ | (159 | ) | $ | 100 | $ | (404 | ) | ||||
$ | 63 | $ | (206 | ) | $ | 90 | $ | (490 | ) |
(1) | Includes embedded derivatives. |
(2) | Excludes foreign exchange gains (losses) related to GLB. |
(3) | Related to GMDB and GLB blocks of business. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
June 30 | June 30 | ||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
CHF | USD | CHF | USD | CHF | USD | CHF | USD | ||||||||||||||||||||
Total dividend distributions per common share | 0.69 | $ | 0.71 | 0.68 | $ | 0.69 | 1.38 | $ | 1.40 | 1.34 | $ | 1.36 |
(in millions of U.S. dollars, except share data) | Three Months Ended June 30, 2017 | Six Months Ended June 30, 2017 | July 1, 2017 through August 2, 2017 | ||||||||
Number of shares repurchased | 2,381,566 | 3,417,630 | 501,872 | ||||||||
Cost of shares repurchased | $ | 335 | $ | 475 | $ | 72 | |||||
Repurchase authorization remaining at end of period | $ | 525 | $ | 525 | $ | 453 |
Three Months Ended June 30 | |||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Total | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
2017 | |||||||||||||||||||||||
Service cost | $ | 16 | $ | 4 | $ | 20 | $ | 1 | $ | 1 | $ | 2 | |||||||||||
Interest cost | 26 | 7 | 33 | — | — | — | |||||||||||||||||
Expected return on plan assets | (48 | ) | (10 | ) | (58 | ) | (1 | ) | — | (1 | ) | ||||||||||||
Amortization of net actuarial loss | — | 1 | 1 | — | — | — | |||||||||||||||||
Amortization of prior service cost | — | — | — | (23 | ) | — | (23 | ) | |||||||||||||||
Curtailments | — | (8 | ) | (8 | ) | — | — | — | |||||||||||||||
Net periodic (benefit) cost | $ | (6 | ) | $ | (6 | ) | $ | (12 | ) | $ | (23 | ) | $ | 1 | $ | (22 | ) | ||||||
2016 | |||||||||||||||||||||||
Service cost | $ | 20 | $ | 4 | $ | 24 | $ | 2 | $ | 1 | $ | 3 | |||||||||||
Interest cost | 27 | 8 | 35 | 4 | — | 4 | |||||||||||||||||
Expected return on plan assets | (42 | ) | (10 | ) | (52 | ) | (2 | ) | — | (2 | ) | ||||||||||||
Amortization of net actuarial loss | — | 1 | 1 | — | — | — | |||||||||||||||||
Net periodic cost | $ | 5 | $ | 3 | $ | 8 | $ | 4 | $ | 1 | $ | 5 |
Six Months Ended June 30 | |||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Total | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
2017 | |||||||||||||||||||||||
Service cost | $ | 32 | $ | 8 | $ | 40 | $ | 1 | $ | 1 | $ | 2 | |||||||||||
Interest cost | 52 | 14 | 66 | 1 | — | 1 | |||||||||||||||||
Expected return on plan assets | (95 | ) | (20 | ) | (115 | ) | (2 | ) | — | (2 | ) | ||||||||||||
Amortization of net actuarial loss | — | 1 | 1 | — | — | — | |||||||||||||||||
Amortization of prior service cost | — | — | — | (46 | ) | — | (46 | ) | |||||||||||||||
Curtailments | — | (8 | ) | (8 | ) | — | — | — | |||||||||||||||
Net periodic (benefit) cost | $ | (11 | ) | $ | (5 | ) | $ | (16 | ) | $ | (46 | ) | $ | 1 | $ | (45 | ) | ||||||
2016 | |||||||||||||||||||||||
Service cost | $ | 37 | $ | 9 | $ | 46 | $ | 4 | $ | 1 | $ | 5 | |||||||||||
Interest cost | 54 | 16 | 70 | 9 | — | 9 | |||||||||||||||||
Expected return on plan assets | (79 | ) | (20 | ) | (99 | ) | (4 | ) | — | (4 | ) | ||||||||||||
Amortization of net actuarial loss | — | 2 | 2 | — | — | — | |||||||||||||||||
Net periodic cost | $ | 12 | $ | 7 | $ | 19 | $ | 9 | $ | 1 | $ | 10 |
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | ||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Net premiums written | $ | 3,204 | $ | 1,255 | $ | 403 | $ | 2,006 | $ | 190 | $ | 523 | $ | — | $ | 7,581 | |||||||||||||||
Net premiums earned | 3,099 | 1,093 | 344 | 2,018 | 168 | 515 | — | 7,237 | |||||||||||||||||||||||
Losses and loss expenses | 1,936 | 683 | 290 | 964 | 46 | 182 | 45 | 4,146 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 163 | — | 163 | |||||||||||||||||||||||
Policy acquisition costs | 464 | 230 | 27 | 555 | 43 | 130 | — | 1,449 | |||||||||||||||||||||||
Administrative expenses | 241 | 66 | 2 | 243 | 12 | 77 | 65 | 706 | |||||||||||||||||||||||
Underwriting income (loss) | 458 | 114 | 25 | 256 | 67 | (37 | ) | (110 | ) | 773 | |||||||||||||||||||||
Net investment income (loss) | 490 | 56 | 6 | 148 | 65 | 77 | (72 | ) | 770 | ||||||||||||||||||||||
Other (income) expense | (4 | ) | 1 | 1 | (3 | ) | 1 | (12 | ) | (129 | ) | (145 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | 5 | 7 | 11 | — | — | 42 | 65 | |||||||||||||||||||||||
Segment income (loss) | $ | 952 | $ | 164 | $ | 23 | $ | 396 | $ | 131 | $ | 52 | $ | (95 | ) | $ | 1,623 | ||||||||||||||
Net realized gains (losses) including OTTI | 101 | 101 | |||||||||||||||||||||||||||||
Interest expense | 147 | 147 | |||||||||||||||||||||||||||||
Chubb integration expenses | 72 | 72 | |||||||||||||||||||||||||||||
Income tax expense | 200 | 200 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (413 | ) | $ | 1,305 |
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | ||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Net premiums written | $ | 3,245 | $ | 1,231 | $ | 375 | $ | 2,031 | $ | 230 | $ | 527 | $ | — | $ | 7,639 | |||||||||||||||
Net premiums earned | 3,148 | 1,140 | 327 | 2,093 | 185 | 512 | — | 7,405 | |||||||||||||||||||||||
Losses and loss expenses | 1,971 | 661 | 284 | 1,089 | 87 | 147 | 15 | 4,254 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 146 | — | 146 | |||||||||||||||||||||||
Policy acquisition costs | 545 | 269 | 25 | 537 | 47 | 137 | — | 1,560 | |||||||||||||||||||||||
Administrative expenses | 299 | 98 | 2 | 277 | 14 | 77 | 62 | 829 | |||||||||||||||||||||||
Underwriting income (loss) | 333 | 112 | 16 | 190 | 37 | 5 | (77 | ) | 616 | ||||||||||||||||||||||
Net investment income (loss) | 468 | 55 | 5 | 147 | 65 | 69 | (101 | ) | 708 | ||||||||||||||||||||||
Other (income) expense | (9 | ) | 3 | — | (5 | ) | (2 | ) | — | (16 | ) | (29 | ) | ||||||||||||||||||
Amortization expense (benefit) of purchased intangibles | — | 4 | 8 | 13 | — | — | (20 | ) | 5 | ||||||||||||||||||||||
Segment income (loss) | $ | 810 | $ | 160 | $ | 13 | $ | 329 | $ | 104 | $ | 74 | $ | (142 | ) | $ | 1,348 | ||||||||||||||
Net realized gains (losses) including OTTI | (216 | ) | (216 | ) | |||||||||||||||||||||||||||
Interest expense | 153 | 153 | |||||||||||||||||||||||||||||
Chubb integration expenses | 98 | 98 | |||||||||||||||||||||||||||||
Income tax expense | 155 | 155 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (764 | ) | $ | 726 |
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | ||||||||||||||||||||||||
For the Six Months Ended | |||||||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Net premiums written | $ | 5,946 | $ | 2,239 | $ | 464 | $ | 4,206 | $ | 389 | $ | 1,047 | $ | — | $ | 14,291 | |||||||||||||||
Net premiums earned | 6,140 | 2,179 | 358 | 3,954 | 357 | 1,021 | — | 14,009 | |||||||||||||||||||||||
Losses and loss expenses | 3,796 | 1,316 | 217 | 2,035 | 140 | 375 | 56 | 7,935 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 331 | — | 331 | |||||||||||||||||||||||
Policy acquisition costs | 951 | 447 | 26 | 1,084 | 94 | 244 | — | 2,846 | |||||||||||||||||||||||
Administrative expenses | 472 | 131 | (3 | ) | 488 | 22 | 149 | 123 | 1,382 | ||||||||||||||||||||||
Underwriting income (loss) | 921 | 285 | 118 | 347 | 101 | (78 | ) | (179 | ) | 1,515 | |||||||||||||||||||||
Net investment income (loss) | 968 | 111 | 12 | 296 | 127 | 152 | (151 | ) | 1,515 | ||||||||||||||||||||||
Other (income) expense | — | 2 | 1 | (4 | ) | 1 | (41 | ) | (174 | ) | (215 | ) | |||||||||||||||||||
Amortization expense of purchased intangibles | — | 8 | 14 | 22 | — | 1 | 84 | 129 | |||||||||||||||||||||||
Segment income (loss) | $ | 1,889 | $ | 386 | $ | 115 | $ | 625 | $ | 227 | $ | 114 | $ | (240 | ) | $ | 3,116 | ||||||||||||||
Net realized gains (losses) including OTTI | 94 | 94 | |||||||||||||||||||||||||||||
Interest expense | 301 | 301 | |||||||||||||||||||||||||||||
Chubb integration expenses | 183 | 183 | |||||||||||||||||||||||||||||
Income tax expense | 328 | 328 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (958 | ) | $ | 2,398 |
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | ||||||||||||||||||||||||
For the Six Months Ended | |||||||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Net premiums written | $ | 5,547 | $ | 2,102 | $ | 439 | $ | 4,072 | $ | 431 | $ | 1,043 | $ | — | $ | 13,634 | |||||||||||||||
Net premiums earned | 6,044 | 2,164 | 350 | 4,048 | 387 | 1,009 | — | 14,002 | |||||||||||||||||||||||
Losses and loss expenses | 3,718 | 1,322 | 254 | 2,110 | 176 | 324 | 24 | 7,928 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 272 | — | 272 | |||||||||||||||||||||||
Policy acquisition costs | 1,027 | 518 | 29 | 1,040 | 100 | 259 | — | 2,973 | |||||||||||||||||||||||
Administrative expenses | 565 | 186 | (2 | ) | 540 | 28 | 149 | 135 | 1,601 | ||||||||||||||||||||||
Underwriting income (loss) | 734 | 138 | 69 | 358 | 83 | 5 | (159 | ) | 1,228 | ||||||||||||||||||||||
Net investment income (loss) | 894 | 102 | 10 | 293 | 132 | 136 | (185 | ) | 1,382 | ||||||||||||||||||||||
Other (income) expense | (9 | ) | 4 | — | (10 | ) | (3 | ) | 6 | 11 | (1 | ) | |||||||||||||||||||
Amortization expense (benefit) of purchased intangibles | — | 12 | 15 | 24 | — | 1 | (40 | ) | 12 | ||||||||||||||||||||||
Segment income (loss) | $ | 1,637 | $ | 224 | $ | 64 | $ | 637 | $ | 218 | $ | 134 | $ | (315 | ) | $ | 2,599 | ||||||||||||||
Net realized gains (losses) including OTTI | (610 | ) | (610 | ) | |||||||||||||||||||||||||||
Interest expense | 299 | 299 | |||||||||||||||||||||||||||||
Chubb integration expenses | 246 | 246 | |||||||||||||||||||||||||||||
Income tax expense | 279 | 279 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (1,749 | ) | $ | 1,165 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars, except share and per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Numerator: | |||||||||||||||
Net income | $ | 1,305 | $ | 726 | $ | 2,398 | $ | 1,165 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per share: | |||||||||||||||
Weighted-average shares outstanding | 467,981,077 | 467,701,328 | 468,244,458 | 457,102,802 | |||||||||||
Denominator for diluted earnings per share: | |||||||||||||||
Share-based compensation plans | 3,872,860 | 3,455,969 | 3,900,678 | 3,379,559 | |||||||||||
Weighted-average shares outstanding and assumed conversions | 471,853,937 | 471,157,297 | 472,145,136 | 460,482,361 | |||||||||||
Basic earnings per share | $ | 2.79 | $ | 1.55 | $ | 5.12 | $ | 2.55 | |||||||
Diluted earnings per share | $ | 2.77 | $ | 1.54 | $ | 5.08 | $ | 2.53 | |||||||
Potential anti-dilutive share conversions | 2,066,578 | 2,103,281 | 1,467,556 | 2,056,018 |
(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 | $ | 23 | $ | 305 | $ | 99,880 | $ | — | $ | 100,208 | |||||||||
Cash (1) | — | 167 | 1,323 | (193 | ) | 1,297 | |||||||||||||
Insurance and reinsurance balances receivable | — | — | 11,699 | (2,037 | ) | 9,662 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 24,118 | (10,760 | ) | 13,358 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,205 | (1,007 | ) | 198 | |||||||||||||
Value of business acquired | — | — | 337 | — | 337 | ||||||||||||||
Goodwill and other intangible assets | — | — | 22,013 | — | 22,013 | ||||||||||||||
Investments in subsidiaries | 40,553 | 49,982 | — | (90,535 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 10,251 | — | — | (10,251 | ) | — | |||||||||||||
Other assets | 141 | 289 | 19,527 | (4,042 | ) | 15,915 | |||||||||||||
Total assets | $ | 50,968 | $ | 50,743 | $ | 180,102 | $ | (118,825 | ) | $ | 162,988 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 70,460 | $ | (10,066 | ) | $ | 60,394 | ||||||||
Unearned premiums | — | — | 18,876 | (3,587 | ) | 15,289 | |||||||||||||
Future policy benefits | — | — | 6,197 | (1,007 | ) | 5,190 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 9,939 | 312 | (10,251 | ) | — | |||||||||||||
Affiliated notional cash pooling programs (1) | 193 | — | — | (193 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,408 | — | 1,408 | ||||||||||||||
Short-term debt | — | 922 | — | — | 922 | ||||||||||||||
Long-term debt | — | 11,656 | 11 | — | 11,667 | ||||||||||||||
Trust preferred securities | — | 308 | — | — | 308 | ||||||||||||||
Other liabilities | 426 | 1,582 | 18,639 | (3,186 | ) | 17,461 | |||||||||||||
Total liabilities | 619 | 24,407 | 115,903 | (28,290 | ) | 112,639 | |||||||||||||
Total shareholders’ equity | 50,349 | 26,336 | 64,199 | (90,535 | ) | 50,349 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 50,968 | $ | 50,743 | $ | 180,102 | $ | (118,825 | ) | $ | 162,988 |
(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 June 30, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
(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 | $ | 27 | $ | 485 | $ | 98,582 | $ | — | $ | 99,094 | |||||||||
Cash (1) | 1 | 1 | 1,965 | (982 | ) | 985 | |||||||||||||
Insurance and reinsurance balances receivable | — | — | 10,498 | (1,528 | ) | 8,970 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 24,496 | (10,919 | ) | 13,577 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,153 | (971 | ) | 182 | |||||||||||||
Value of business acquired | — | — | 355 | — | 355 | ||||||||||||||
Goodwill and other intangible assets | — | — | 22,095 | — | 22,095 | ||||||||||||||
Investments in subsidiaries | 38,408 | 49,509 | — | (87,917 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 10,482 | — | — | (10,482 | ) | — | |||||||||||||
Other assets | 3 | 436 | 18,442 | (4,353 | ) | 14,528 | |||||||||||||
Total assets | $ | 48,921 | $ | 50,431 | $ | 177,586 | $ | (117,152 | ) | $ | 159,786 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 70,683 | $ | (10,143 | ) | $ | 60,540 | ||||||||
Unearned premiums | — | — | 18,538 | (3,759 | ) | 14,779 | |||||||||||||
Future policy benefits | — | — | 6,007 | (971 | ) | 5,036 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 10,209 | 273 | (10,482 | ) | — | |||||||||||||
Affiliated notional cash pooling programs (1) | 363 | 619 | — | (982 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,403 | — | 1,403 | ||||||||||||||
Short-term debt | — | 500 | — | — | 500 | ||||||||||||||
Long-term debt | — | 12,599 | 11 | — | 12,610 | ||||||||||||||
Trust preferred securities | — | 308 | — | — | 308 | ||||||||||||||
Other liabilities | 283 | 1,582 | 17,368 | (2,898 | ) | 16,335 | |||||||||||||
Total liabilities | 646 | 25,817 | 114,283 | (29,235 | ) | 111,511 | |||||||||||||
Total shareholders’ equity | 48,275 | 24,614 | 63,303 | (87,917 | ) | 48,275 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 48,921 | $ | 50,431 | $ | 177,586 | $ | (117,152 | ) | $ | 159,786 |
(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, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Three Months Ended June 30, 2017 | 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 premiums written | $ | — | $ | — | $ | 7,581 | $ | — | $ | 7,581 | |||||||||
Net premiums earned | — | — | 7,237 | — | 7,237 | ||||||||||||||
Net investment income | 2 | 4 | 764 | — | 770 | ||||||||||||||
Equity in earnings of subsidiaries | 1,253 | 665 | — | (1,918 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | (2 | ) | (1 | ) | 104 | — | 101 | ||||||||||||
Losses and loss expenses | — | — | 4,146 | — | 4,146 | ||||||||||||||
Policy benefits | — | — | 163 | — | 163 | ||||||||||||||
Policy acquisition costs and administrative expenses | 18 | (2 | ) | 2,139 | — | 2,155 | |||||||||||||
Interest (income) expense | (84 | ) | 212 | 19 | — | 147 | |||||||||||||
Other (income) expense | 4 | 10 | (159 | ) | — | (145 | ) | ||||||||||||
Amortization of purchased intangibles | — | — | 65 | — | 65 | ||||||||||||||
Chubb integration expenses | 6 | 4 | 62 | — | 72 | ||||||||||||||
Income tax expense (benefit) | 4 | (87 | ) | 283 | — | 200 | |||||||||||||
Net income | $ | 1,305 | $ | 531 | $ | 1,387 | $ | (1,918 | ) | $ | 1,305 | ||||||||
Comprehensive income | $ | 1,675 | $ | 920 | $ | 1,756 | $ | (2,676 | ) | $ | 1,675 |
For the Three Months Ended June 30, 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 premiums written | $ | — | $ | — | $ | 7,639 | $ | — | $ | 7,639 | |||||||||
Net premiums earned | — | — | 7,405 | — | 7,405 | ||||||||||||||
Net investment income | 1 | 3 | 704 | — | 708 | ||||||||||||||
Equity in earnings of subsidiaries | 664 | 549 | — | (1,213 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | (1 | ) | (1 | ) | (214 | ) | — | (216 | ) | ||||||||||
Losses and loss expenses | — | — | 4,254 | — | 4,254 | ||||||||||||||
Policy benefits | — | — | 146 | — | 146 | ||||||||||||||
Policy acquisition costs and administrative expenses | 16 | 96 | 2,277 | — | 2,389 | ||||||||||||||
Interest (income) expense | (93 | ) | 233 | 13 | — | 153 | |||||||||||||
Other (income) expense | (4 | ) | 10 | (35 | ) | — | (29 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 5 | — | 5 | ||||||||||||||
Chubb integration expenses | 14 | (97 | ) | 181 | — | 98 | |||||||||||||
Income tax expense (benefit) | 5 | (37 | ) | 187 | — | 155 | |||||||||||||
Net income | $ | 726 | $ | 346 | $ | 867 | $ | (1,213 | ) | $ | 726 | ||||||||
Comprehensive income | $ | 1,540 | $ | 1,004 | $ | 1,681 | $ | (2,685 | ) | $ | 1,540 |
For the Six Months Ended June 30, 2017 | 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 premiums written | $ | — | $ | — | $ | 14,291 | $ | — | $ | 14,291 | |||||||||
Net premiums earned | — | — | 14,009 | — | 14,009 | ||||||||||||||
Net investment income | 2 | 7 | 1,506 | — | 1,515 | ||||||||||||||
Equity in earnings of subsidiaries | 2,280 | 1,366 | — | (3,646 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | (2 | ) | (14 | ) | 110 | — | 94 | ||||||||||||
Losses and loss expenses | — | — | 7,935 | — | 7,935 | ||||||||||||||
Policy benefits | — | — | 331 | — | 331 | ||||||||||||||
Policy acquisition costs and administrative expenses | 36 | 12 | 4,180 | — | 4,228 | ||||||||||||||
Interest (income) expense | (168 | ) | 433 | 36 | — | 301 | |||||||||||||
Other (income) expense | (2 | ) | 25 | (238 | ) | — | (215 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 129 | — | 129 | ||||||||||||||
Chubb integration expenses | 6 | 53 | 124 | — | 183 | ||||||||||||||
Income tax expense (benefit) | 10 | (199 | ) | 517 | — | 328 | |||||||||||||
Net income | $ | 2,398 | $ | 1,035 | $ | 2,611 | $ | (3,646 | ) | $ | 2,398 | ||||||||
Comprehensive income | $ | 3,082 | $ | 1,711 | $ | 3,294 | $ | (5,005 | ) | $ | 3,082 |
For the Six Months Ended June 30, 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 premiums written | $ | — | $ | — | $ | 13,634 | $ | — | $ | 13,634 | |||||||||
Net premiums earned | — | — | 14,002 | — | 14,002 | ||||||||||||||
Net investment income | 2 | 7 | 1,373 | — | 1,382 | ||||||||||||||
Equity in earnings of subsidiaries | 1,039 | 1,055 | — | (2,094 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | (1 | ) | (1 | ) | (608 | ) | — | (610 | ) | ||||||||||
Losses and loss expenses | — | — | 7,928 | — | 7,928 | ||||||||||||||
Policy benefits | — | — | 272 | — | 272 | ||||||||||||||
Policy acquisition costs and administrative expenses | 33 | 132 | 4,409 | — | 4,574 | ||||||||||||||
Interest (income) expense | (173 | ) | 448 | 24 | — | 299 | |||||||||||||
Other (income) expense | (13 | ) | 20 | (8 | ) | — | (1 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 12 | — | 12 | ||||||||||||||
Chubb integration expenses | 17 | 40 | 189 | — | 246 | ||||||||||||||
Income tax expense (benefit) | 11 | (187 | ) | 455 | — | 279 | |||||||||||||
Net income | $ | 1,165 | $ | 608 | $ | 1,486 | $ | (2,094 | ) | $ | 1,165 | ||||||||
Comprehensive income | $ | 3,081 | $ | 2,060 | $ | 3,402 | $ | (5,462 | ) | $ | 3,081 |
Six Months Ended June 30, 2017 | 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 | $ | 551 | $ | 1,444 | $ | 1,686 | $ | (2,041 | ) | $ | 1,640 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | (5 | ) | (12,255 | ) | — | (12,260 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (212 | ) | — | (212 | ) | ||||||||||||
Purchases of equity securities | — | — | (82 | ) | — | (82 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 6,873 | — | 6,873 | ||||||||||||||
Sales of equity securities | — | — | 104 | — | 104 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | 13 | 5,156 | — | 5,169 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 408 | — | 408 | ||||||||||||||
Net change in short-term investments | — | 166 | 188 | — | 354 | ||||||||||||||
Net derivative instruments settlements | — | (7 | ) | (122 | ) | — | (129 | ) | |||||||||||
Other | — | 2 | (123 | ) | — | (121 | ) | ||||||||||||
Net cash flows from (used for) investing activities | — | 169 | (65 | ) | — | 104 | |||||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (646 | ) | — | — | — | (646 | ) | ||||||||||||
Common Shares repurchased | — | — | (475 | ) | — | (475 | ) | ||||||||||||
Repayment of long-term debt | — | (500 | ) | — | — | (500 | ) | ||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 1,343 | — | 1,343 | ||||||||||||||
Repayment of repurchase agreements | — | — | (1,338 | ) | — | (1,338 | ) | ||||||||||||
Proceeds from share-based compensation plans | — | — | 89 | — | 89 | ||||||||||||||
Dividend to parent company | — | — | (2,041 | ) | 2,041 | — | |||||||||||||
Advances (to) from affiliates | 264 | (328 | ) | 64 | — | — | |||||||||||||
Net payments to affiliated notional cash pooling programs(1) | (170 | ) | (619 | ) | — | 789 | — | ||||||||||||
Policyholder contract deposits | — | — | 209 | — | 209 | ||||||||||||||
Policyholder contract withdrawals | — | — | (125 | ) | — | (125 | ) | ||||||||||||
Net cash flows used for financing activities | (552 | ) | (1,447 | ) | (2,274 | ) | 2,830 | (1,443 | ) | ||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | 11 | — | 11 | ||||||||||||||
Net increase (decrease) in cash | (1 | ) | 166 | (642 | ) | 789 | 312 | ||||||||||||
Cash – beginning of period(1) | 1 | 1 | 1,965 | (982 | ) | 985 | |||||||||||||
Cash – end of period(1) | $ | — | $ | 167 | $ | 1,323 | $ | (193 | ) | $ | 1,297 |
(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 June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Six Months Ended June 30, 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 | $ | 3,213 | $ | 4,050 | $ | 2,262 | $ | (7,372 | ) | $ | 2,153 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | (83 | ) | (16,994 | ) | — | (17,077 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (121 | ) | — | (121 | ) | ||||||||||||
Purchases of equity securities | — | — | (78 | ) | — | (78 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 11,868 | — | 11,868 | ||||||||||||||
Sales of equity securities | — | — | 932 | — | 932 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 3,910 | — | 3,910 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 443 | — | 443 | ||||||||||||||
Net change in short-term investments | — | 7,829 | 3,882 | — | 11,711 | ||||||||||||||
Net derivative instruments settlements | — | (10 | ) | (83 | ) | — | (93 | ) | |||||||||||
Acquisition of subsidiaries (net of cash acquired of $71) | — | (14,282 | ) | 34 | — | (14,248 | ) | ||||||||||||
Capital contribution | (2,330 | ) | — | (2,330 | ) | 4,660 | — | ||||||||||||
Other | — | (3 | ) | 84 | — | 81 | |||||||||||||
Net cash flows from (used for) investing activities | (2,330 | ) | (6,549 | ) | 1,547 | 4,660 | (2,672 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (530 | ) | — | — | — | (530 | ) | ||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 904 | — | 904 | ||||||||||||||
Repayment of repurchase agreements | — | — | (902 | ) | — | (902 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 92 | — | 92 | ||||||||||||||
Dividend to parent company | — | — | (7,372 | ) | 7,372 | — | |||||||||||||
Advances (to) from affiliates | (247 | ) | 221 | 26 | — | — | |||||||||||||
Capital contribution | — | 2,330 | 2,330 | (4,660 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | (106 | ) | 157 | — | (51 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 274 | — | 274 | ||||||||||||||
Policyholder contract withdrawals | — | — | (103 | ) | — | (103 | ) | ||||||||||||
Other | — | (4 | ) | — | — | (4 | ) | ||||||||||||
Net cash flows from (used for) financing activities | (883 | ) | 2,704 | (4,751 | ) | 2,661 | (269 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | 24 | — | 24 | ||||||||||||||
Net increase (decrease) in cash | — | 205 | (918 | ) | (51 | ) | (764 | ) | |||||||||||
Cash – beginning of period(1) | 1 | 2 | 2,743 | (971 | ) | 1,775 | |||||||||||||
Cash – end of period(1) | $ | 1 | $ | 207 | $ | 1,825 | $ | (1,022 | ) | $ | 1,011 |
(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 June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
MD&A Index | Page |
Forward-Looking Statements |
• | losses arising out of natural or man-made catastrophes such as hurricanes, typhoons, earthquakes, floods, climate change (including effects on weather patterns; greenhouse gases; sea; land and air temperatures; sea levels; and rain and snow), nuclear accidents, or terrorism which could be affected by: |
• | the number of insureds and ceding companies affected; |
• | the amount and timing of losses actually incurred and reported by insureds; |
• | the impact of these losses on our reinsurers and the amount and timing of reinsurance recoverable actually received; |
• | the cost of building materials and labor to reconstruct properties or to perform environmental remediation following a catastrophic event; and |
• | complex coverage and regulatory issues such as whether losses occurred from storm surge or flooding and related lawsuits; |
• | actions that rating agencies may take from time to time, such as financial strength or credit ratings downgrades or placing these ratings on credit watch negative or the equivalent; |
• | the ability to collect reinsurance recoverable, credit developments of reinsurers, and any delays with respect thereto and changes in the cost, quality, or availability of reinsurance; |
• | actual loss experience from insured or reinsured events and the timing of claim payments; |
• | the uncertainties of the loss-reserving and claims-settlement processes, including the difficulties associated with assessing environmental damage and asbestos-related latent injuries, the impact of aggregate-policy-coverage limits, the impact of bankruptcy protection sought by various asbestos producers and other related businesses, and the timing of loss payments; |
• | changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available for sale fixed maturity investments before their anticipated recovery; |
• | infection rates and severity of pandemics and their effects on our business operations and claims activity; |
• | developments in global financial markets, including changes in interest rates, stock markets, and other financial markets, increased government involvement or intervention in the financial services industry, the cost and availability of financing, and foreign currency exchange rate fluctuations (which we refer to in this report as foreign exchange and foreign currency exchange), which could affect our statement of operations, investment portfolio, financial condition, and financing plans; |
• | general economic and business conditions resulting from volatility in the stock and credit markets and the depth and duration of potential recession; |
• | global political conditions, the occurrence of any terrorist attacks, including any nuclear, radiological, biological, or chemical events, or the outbreak and effects of war, and possible business disruption or economic contraction that may result from such events; |
• | the potential impact of the United Kingdom’s vote to withdraw from the European Union, including political, regulatory, social, and economic uncertainty and market and exchange rate volatility; |
• | judicial decisions and rulings, new theories of liability, legal tactics, and settlement terms; |
• | the effects of public company bankruptcies and/or accounting restatements, as well as disclosures by and investigations of public companies relating to possible accounting irregularities, and other corporate governance issues, including the effects of such events on: |
• | the capital markets; |
• | the markets for directors and officers (D&O) and errors and omissions (E&O) insurance; and |
• | claims and litigation arising out of such disclosures or practices by other companies; |
• | uncertainties relating to governmental, legislative and regulatory policies, developments, actions, investigations, and treaties, which, among other things, could subject us to insurance regulation or taxation in additional jurisdictions or affect our current operations; |
• | the actual amount of new and renewal business, market acceptance of our products, and risks associated with the introduction of new products and services and entering new markets, including regulatory constraints on exit strategies; |
• | the competitive environment in which we operate, including trends in pricing or in policy terms and conditions, which may differ from our projections and changes in market conditions that could render our business strategies ineffective or obsolete; |
• | acquisitions made by us performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, or announced acquisitions not closing; |
• | risks and uncertainties relating to our acquisition of The Chubb Corporation (Chubb Corp acquisition) including our ability to successfully integrate the acquired company; |
• | risks associated with being a Swiss corporation, including reduced flexibility with respect to certain aspects of capital management and the potential for additional regulatory burdens; |
• | the potential impact from government-mandated insurance coverage for acts of terrorism; |
• | the availability of borrowings and letters of credit under our credit facilities; |
• | the adequacy of collateral supporting funded high deductible programs; |
• | changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers; |
• | material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; |
• | the effects of investigations into market practices in the property and casualty (P&C) industry; |
• | changing rates of inflation and other economic conditions, for example, recession; |
• | the amount of dividends received from subsidiaries; |
• | loss of the services of any of our executive officers without suitable replacements being recruited in a reasonable time frame; |
• | the ability of our technology resources, including information systems and security, to perform as anticipated such as with respect to preventing material information technology failures or third-party infiltrations or hacking resulting in consequences adverse to Chubb or its customers or partners; and |
• | management’s response to these factors and actual events (including, but not limited to, those described above). |
Overview |
Financial Highlights for the Three Months Ended June 30, 2017 |
• | Net income was $1,305 million compared with $726 million in the prior year period. |
• | Total company and P&C net premiums written were $7.6 billion and $7.1 billion, respectively, both down 0.8 percent. |
• | Since the acquisition of Chubb Corp, we have entered into new reinsurance agreements with third-party reinsurers for certain legacy Chubb Corp business, and have taken other merger-related underwriting actions, including exiting certain types of business that do not meet our underwriting standards or adhere to our risk diversification strategy. Together, these items adversely impacted P&C net premiums written growth by $198 million in the quarter. Excluding these items, P&C net premiums written were up 2.6 percent in constant dollars. |
• | P&C combined ratio was 88.0 percent compared with 91.2 percent in the prior year period which included 1.0 percentage point from the unfavorable impact of initial year purchase accounting adjustments related to the Chubb Corp acquisition. The P&C combined ratio in the current year reflects favorable impacts from integration-related savings, post-retirement benefit savings, a favorable release of unallocated claims handling expense reserves and merger-related underwriting actions. These benefits reduced the expense ratio by 1.7 percentage points and the loss and loss expense ratio by 1.0 percentage point. Partially offsetting this decline is an increase in the underlying loss and loss expense ratio. |
• | Total incremental integration-related savings recognized in the quarter were $105 million pre-tax. Refer to the Integration-Related Savings section below for additional information on the impact of these savings by income statement line item and segment. |
• | Total pre-tax and after-tax catastrophe losses were $200 million (3.0 percentage points of the combined ratio) and $152 million, respectively, compared with $390 million (5.7 percentage points of the combined ratio) and $311 million, respectively, last year. |
• | Total pre-tax and after-tax favorable prior period development was $170 million (2.5 percentage points of the combined ratio) and $144 million, respectively, compared with $301 million (4.4 percentage points of the combined ratio) and $241 million, respectively, last year. |
• | Net investment income was $770 million compared with $708 million in the prior year period. Excluding the amortization of the fair value adjustment on acquired invested assets of Chubb Corp, net investment income was $855 million, compared with $816 million, up 4.8 percent. |
• | Share repurchases totaled $335 million, or approximately 2.4 million shares, during the quarter. |
Actual | Expected | |||||||||||||||||||||||
(in millions of U.S. dollars) | 2015 | 2016 | YTD 2017 | 2017 | 2018 | Total | ||||||||||||||||||
Cumulative Chubb integration-related savings (1) | ||||||||||||||||||||||||
Annualized savings | $ | 578 | $ | 775 | $ | 825 | $ | 875 | $ | 875 | ||||||||||||||
Realized savings | $ | 325 | $ | 554 | $ | 710 | $ | 845 | $ | 875 | ||||||||||||||
Chubb integration and merger-related expenses (2) | ||||||||||||||||||||||||
One-time integration expenses related to savings | $ | 22 | $ | 299 | $ | 144 | $ | 233 | $ | 18 | $ | 572 | ||||||||||||
Other one-time merger-related expenses | 11 | 193 | 39 | 116 | 12 | 331 | ||||||||||||||||||
Total expected integration and merger-related expenses | $ | 33 | $ | 492 | $ | 183 | $ | 349 | $ | 30 | $ | 903 | ||||||||||||
Cumulative annualized post-retirement benefit savings | $ | 15 | $ | 95 | $ | 115 | $ | 115 | $ | 115 |
Consolidated Operating Results – Three and Six Months Ended June 30, 2017 and 2016 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | Q-17 vs. Q-16 | 2017 | 2016 | YTD-17 vs. YTD-16 | |||||||||||||||
Net premiums written (1) | $ | 7,581 | $ | 7,639 | (0.8 | )% | $ | 14,291 | $ | 13,634 | 4.8 | % | |||||||||
Net premiums earned (1) | 7,237 | 7,405 | (2.3 | )% | 14,009 | 14,002 | 0.1 | % | |||||||||||||
Net investment income | 770 | 708 | 8.8 | % | 1,515 | 1,382 | 9.6 | % | |||||||||||||
Net realized gains (losses) | 101 | (216 | ) | NM | 94 | (610 | ) | NM | |||||||||||||
Total revenues | 8,108 | 7,897 | 2.7 | % | 15,618 | 14,774 | 5.7 | % | |||||||||||||
Losses and loss expenses | 4,146 | 4,254 | (2.5 | )% | 7,935 | 7,928 | 0.1 | % | |||||||||||||
Policy benefits | 163 | 146 | 11.6 | % | 331 | 272 | 21.7 | % | |||||||||||||
Policy acquisition costs | 1,449 | 1,560 | (7.1 | )% | 2,846 | 2,973 | (4.3 | )% | |||||||||||||
Administrative expenses | 706 | 829 | (14.8 | )% | 1,382 | 1,601 | (13.7 | )% | |||||||||||||
Interest expense | 147 | 153 | (3.9 | )% | 301 | 299 | 0.7 | % | |||||||||||||
Other (income) expense | (145 | ) | (29 | ) | NM | (215 | ) | (1 | ) | NM | |||||||||||
Amortization of purchased intangibles | 65 | 5 | NM | 129 | 12 | NM | |||||||||||||||
Chubb integration expenses | 72 | 98 | (26.5 | )% | 183 | 246 | (25.6 | )% | |||||||||||||
Total expenses | 6,603 | 7,016 | (5.9 | )% | 12,892 | 13,330 | (3.3 | )% | |||||||||||||
Income before income tax | 1,505 | 881 | 70.9 | % | 2,726 | 1,444 | 88.8 | % | |||||||||||||
Income tax expense | 200 | 155 | 29.0 | % | 328 | 279 | 17.6 | % | |||||||||||||
Net income | $ | 1,305 | $ | 726 | 79.6 | % | $ | 2,398 | $ | 1,165 | 105.8 | % | |||||||||
NM – not meaningful |
(1) | On a constant-dollar basis for the three and six months ended June 30, 2017, net premiums written decreased $17 million, or 0.2 percent, and increased $721 million, or 5.3 percent, respectively, and net premiums earned decreased $131 million and increased $45 million, respectively. Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period. |
• | Net premiums written in our North America Commercial P&C Insurance segment decreased $41 million for the three months ended June 30, 2017 primarily due to merger-related underwriting actions ($84 million). Excluding these actions, net premiums written increased $43 million as growth in our Major Accounts Risk Management and Wholesale businesses was offset by declines in our property, casualty and select components of our financial lines businesses due to competitive market conditions. Net premiums written increased $399 million for the six months ended June 30, 2017 primarily reflecting the 14-day stub period ($519 million). On a comparative basis, which includes the 14-day stub period, net premiums written declined $120 million driven by merger-related underwriting actions ($168 million). Excluding these items, net premiums written increased $48 million, or 0.8 percent, due to the same factors driving the increase in the quarter as described above. |
• | Net premiums written in our North America Personal P&C Insurance segment increased $24 million and $137 million for the three and six months ended June 30, 2017, respectively, reflecting growth across most lines. In addition, the increase in net premiums written for the six months ended June 30, 2017 reflected the favorable impact of the 14-day stub period ($100 million). Offsetting this growth were merger-related underwriting actions of $75 million and $126 million for the three and six months ended June 30, 2017, respectively. Excluding these items, net premiums written increased $99 million and $163 million for the three and six months ended June 30, 2017, respectively, reflecting growth across most lines, primarily in homeowners and complementary products such as automobiles and valuables. Additionally, the non-renewal of a quota share treaty ($46 million) and a one-time favorable impact from the change in timing of premium registration favorably impacted growth in the quarter and year-to-date periods. |
• | Net premiums written in our North America Agricultural Insurance segment increased $28 million and $25 million for the three and six months ended June 30, 2017, respectively, primarily due to higher commodity base prices in our 2017 policy pricing and growth in our Chubb Agribusiness unit driven by new business written and strong retention. |
• | Net premiums written in our Overseas General Insurance segment decreased $25 million or increased $7 million on a constant-dollar basis, for the three months ended June 30, 2017, as growth in personal lines business and property and casualty (P&C) lines were offset by merger-related underwriting actions ($39 million). Net premiums written increased $134 million, or $196 million on a constant-dollar basis, for the six months ended June 30, 2017, primarily reflecting the 14-day stub period ($215 million). On a comparative constant-dollar basis, which includes the 14-day stub period, net premiums written declined $19 million for the six months ended June 30, 2017 reflecting merger-related underwriting actions ($81 million) and the impact of a merger-related accounting policy adjustment in the fourth quarter of 2016 to align the timing of premium recognition ($73 million). Excluding these items, net premiums written increased $135 million on a constant-dollar basis, due to growth in personal lines and P&C lines. |
• | Net premiums written in our Global Reinsurance segment decreased $40 million and $42 million for the three and six months ended June 30, 2017, respectively, as we maintained underwriting discipline in an environment of declining rates and increasing competition. |
• | Net premiums written in our Life Insurance segment decreased $4 million and increased $4 million for the three and six months ended June 30, 2017, respectively. For the quarter, growth in our Combined Insurance supplemental A&H program business and our Asian international life operations was more than offset by merger-related underwriting actions ($8 million). For the six months ended June 30, 2017, growth in these businesses more than offset the declines related to merger-related underwriting actions ($24 million). Both periods were adversely impacted by our life reinsurance business, which continues to decline as no new business is currently being written. |
Three Months Ended | |||||||||||||||||||||
June 30 | |||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | % Change Q-17 vs. Q-16 | C$ (1) 2016 | C$ (1) % Change Q-17 vs. Q-16 | Impact of Merger Actions (2) | |||||||||||||||
Commercial multiple peril (3) | $ | 227 | $ | 236 | (3.8 | )% | $ | 236 | (3.8 | )% | (1.3 | ) | pts | ||||||||
Commercial casualty | 961 | 893 | 7.6 | % | 892 | 7.7 | % | (3.7 | ) | pts | |||||||||||
Workers' compensation | 478 | 548 | (12.8 | )% | 547 | (12.6 | )% | (5.1 | ) | pts | |||||||||||
Professional liability | 913 | 927 | (1.5 | )% | 912 | 0.1 | % | (0.7 | ) | pts | |||||||||||
Surety | 153 | 149 | 2.7 | % | 148 | 3.4 | % | — | pts | ||||||||||||
Property and other short-tail lines | 1,054 | 1,097 | (3.9 | )% | 1,093 | (3.6 | )% | (1.4 | ) | pts | |||||||||||
International other casualty | 248 | 247 | 0.4 | % | 241 | 2.9 | % | (0.8 | ) | pts | |||||||||||
Total Commercial P&C | 4,034 | 4,097 | (1.5 | )% | 4,069 | (0.9 | )% | (2.2 | ) | pts | |||||||||||
Agriculture | 403 | 375 | 7.7 | % | 375 | 7.7 | % | — | pts | ||||||||||||
Personal automobile - North America | 209 | 190 | 10.0 | % | 190 | 10.0 | % | — | pts | ||||||||||||
Personal automobile - International | 188 | 165 | 13.9 | % | 162 | 16.0 | % | — | pts | ||||||||||||
Personal homeowners | 925 | 929 | (0.4 | )% | 928 | (0.3 | )% | (8.1 | ) | pts | |||||||||||
Personal other | 363 | 363 | — | 360 | 0.8 | % | (6.1 | ) | pts | ||||||||||||
Total Personal lines | 1,685 | 1,647 | 2.3 | % | 1,640 | 2.7 | % | (6.0 | ) | pts | |||||||||||
Total Property and Casualty lines | 6,122 | 6,119 | — | 6,084 | 0.6 | % | (3.0 | ) | pts | ||||||||||||
Global A&H lines (4) | 1,025 | 1,029 | (0.4 | )% | 1,022 | 0.3 | % | (1.4 | ) | pts | |||||||||||
Reinsurance lines | 190 | 230 | (17.7 | )% | 227 | (16.5 | )% | — | pts | ||||||||||||
Life | 244 | 261 | (6.5 | )% | 265 | (7.9 | )% | (3.0 | ) | pts | |||||||||||
Total consolidated | $ | 7,581 | $ | 7,639 | (0.8 | )% | $ | 7,598 | (0.2 | )% | (2.7 | ) | pts |
(1) | On a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period. |
(2) | Reflects the impact to growth of merger-related underwriting actions. |
(3) | Commercial multiple peril represents retail package business (property and general liability) |
(4) | For purposes of this schedule only, A&H results from our Combined North America and International businesses, normally included in the Life Insurance and Overseas General Insurance segments, respectively, as well as the A&H results of our North America Commercial P&C segment, are included in Global A&H lines above. |
Six Months Ended | |||||||||||||||||||||
June 30 | |||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | % Change YTD-17 vs. YTD-16 | C$ (1) 2016 including stub period | C$ (1) % Change YTD-17 vs. YTD-16 including stub period | Impact of Merger Actions and accounting policy alignment (2) | |||||||||||||||
Commercial multiple peril (3) | $ | 428 | $ | 368 | 16.3 | % | $ | 448 | (4.5 | )% | (1.2 | ) | pts | ||||||||
Commercial casualty | 1,688 | 1,536 | 9.9 | % | 1,653 | 2.1 | % | (3.4 | ) | pts | |||||||||||
Workers' compensation | 1,066 | 996 | 7.0 | % | 1,134 | (6.0 | )% | (3.6 | ) | pts | |||||||||||
Professional liability | 1,694 | 1,605 | 5.5 | % | 1,730 | (2.1 | )% | (2.2 | ) | pts | |||||||||||
Surety | 303 | 283 | 7.1 | % | 291 | 4.1 | % | (1.1 | ) | pts | |||||||||||
Property and other short-tail lines | 2,086 | 2,030 | 2.8 | % | 2,157 | (3.3 | )% | (4.0 | ) | pts | |||||||||||
International other casualty | 564 | 532 | 6.0 | % | 564 | — | (3.5 | ) | pts | ||||||||||||
Total Commercial P&C | 7,829 | 7,350 | 6.5 | % | 7,977 | (1.9 | )% | (3.2 | ) | pts | |||||||||||
Agriculture | 464 | 439 | 5.9 | % | 439 | 5.9 | % | — | pts | ||||||||||||
Personal automobile - North America | 374 | 332 | 12.7 | % | 346 | 8.1 | % | — | pts | ||||||||||||
Personal automobile - International | 374 | 345 | 8.4 | % | 337 | 11.0 | % | — | pts | ||||||||||||
Personal homeowners | 1,622 | 1,569 | 3.4 | % | 1,636 | (0.9 | )% | (7.7 | ) | pts | |||||||||||
Personal other | 725 | 681 | 6.5 | % | 712 | 1.8 | % | (7.8 | ) | pts | |||||||||||
Total Personal lines | 3,095 | 2,927 | 5.7 | % | 3,031 | 2.1 | % | (6.0 | ) | pts | |||||||||||
Total Property and Casualty lines | 11,388 | 10,716 | 6.3 | % | 11,447 | (0.5 | )% | (3.7 | ) | pts | |||||||||||
Global A&H lines (4) | 2,019 | 1,965 | 2.7 | % | 2,005 | 0.7 | % | (1.0 | ) | pts | |||||||||||
Reinsurance lines | 389 | 431 | (9.9 | )% | 445 | (12.7 | )% | (2.2 | ) | pts | |||||||||||
Life | 495 | 522 | (5.2 | )% | 528 | (6.3 | )% | (4.6 | ) | pts | |||||||||||
Total consolidated | $ | 14,291 | $ | 13,634 | 4.8 | % | $ | 14,425 | (0.9 | )% | (3.3 | ) | pts |
(1) | On a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period. |
(2) | Reflects the impact to growth of merger-related underwriting actions and accounting policy alignment, including the 14-day stub period. |
(3) | Commercial multiple peril represents retail package business (property and general liability) |
(4) | For purposes of this schedule only, A&H results from our Combined North America and International businesses, normally included in the Life Insurance and Overseas General Insurance segments, respectively, as well as the A&H results of our North America Commercial P&C segment, are included in Global A&H lines above. |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Loss and loss expense ratio | 59.0 | % | 59.6 | % | 58.2 | % | 58.5 | % | |||
Policy acquisition cost ratio | 19.6 | % | 20.6 | % | 20.0 | % | 20.9 | % | |||
Administrative expense ratio | 9.4 | % | 11.0 | % | 9.6 | % | 11.2 | % | |||
Combined Ratio | 88.0 | % | 91.2 | % | 87.8 | % | 90.6 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Catastrophe losses, pre-tax | $ | 200 | $ | 396 | $ | 406 | $ | 654 | |||||||
Favorable prior period development net of related reinstatement premiums, pre-tax | $ | 170 | $ | 301 | $ | 401 | $ | 548 |
• | 2017: severe weather-related events in the U.S., Cyclone Debbie in Australia and flooding in Latin America |
• | 2016: severe weather-related events in the U.S. and Europe, a wildfire in Canada, and an earthquake in Ecuador |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Loss and loss expense ratio | 59.0 | % | 59.6 | % | 58.2 | % | 58.5 | % | |||
Catastrophe losses | (3.0 | )% | (5.7 | )% | (3.1 | )% | (5.0 | )% | |||
Prior period development net of related reinstatement premiums | 2.6 | % | 4.5 | % | 3.3 | % | 4.4 | % | |||
Loss and loss expense ratio, adjusted | 58.6 | % | 58.4 | % | 58.4 | % | 57.9 | % |
Three Months Ended June 30 | |||||||||||||||||||||||||||||||
North America Commercial P&C Insurance | North America Personal P&C Insurance | Overseas General Insurance | Global Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 21 | $ | 10 | $ | 13 | $ | — | $ | — | $ | 44 | $ | — | $ | 44 | |||||||||||||||
Policy acquisition costs | 9 | 2 | 6 | — | — | 17 | — | 17 | |||||||||||||||||||||||
Administrative expenses | 36 | 17 | 42 | — | 18 | 113 | 1 | 114 | |||||||||||||||||||||||
Net investment income | 1 | 1 | — | — | — | 2 | — | 2 | |||||||||||||||||||||||
Total | $ | 67 | $ | 30 | $ | 61 | $ | — | $ | 18 | $ | 176 | $ | 1 | $ | 177 | |||||||||||||||
2016 | |||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 9 | $ | 6 | $ | 3 | $ | — | $ | — | $ | 18 | $ | — | $ | 18 | |||||||||||||||
Policy acquisition costs | 4 | — | 2 | — | — | 6 | — | 6 | |||||||||||||||||||||||
Administrative expenses | 18 | 10 | 11 | — | 7 | 46 | — | 46 | |||||||||||||||||||||||
Net investment income | 1 | 1 | — | — | — | 2 | — | 2 | |||||||||||||||||||||||
Total | $ | 32 | $ | 17 | $ | 16 | $ | — | $ | 7 | $ | 72 | $ | — | $ | 72 | |||||||||||||||
Incremental Change | |||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 12 | $ | 4 | $ | 10 | $ | — | $ | — | $ | 26 | $ | — | $ | 26 | |||||||||||||||
Policy acquisition costs | 5 | 2 | 4 | — | — | 11 | — | 11 | |||||||||||||||||||||||
Administrative expenses | 18 | 7 | 31 | — | 11 | 67 | 1 | 68 | |||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | 35 | $ | 13 | $ | 45 | $ | — | $ | 11 | $ | 104 | $ | 1 | $ | 105 |
Six Months Ended June 30 | |||||||||||||||||||||||||||||||
North America Commercial P&C Insurance | North America Personal P&C Insurance | Overseas General Insurance | Global Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 37 | $ | 15 | $ | 20 | $ | — | $ | — | $ | 72 | $ | — | $ | 72 | |||||||||||||||
Policy acquisition costs | 17 | 4 | 10 | — | — | 31 | — | 31 | |||||||||||||||||||||||
Administrative expenses | 78 | 32 | 80 | 1 | 32 | 223 | 1 | 224 | |||||||||||||||||||||||
Net investment income | 1 | 1 | — | — | — | 2 | — | 2 | |||||||||||||||||||||||
Total | $ | 133 | $ | 52 | $ | 110 | $ | 1 | $ | 32 | $ | 328 | $ | 1 | $ | 329 | |||||||||||||||
2016 | |||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 9 | $ | 6 | $ | 3 | $ | — | $ | — | $ | 18 | $ | — | $ | 18 | |||||||||||||||
Policy acquisition costs | 4 | — | 2 | — | — | 6 | — | 6 | |||||||||||||||||||||||
Administrative expenses | 32 | 15 | 17 | — | 10 | 74 | — | 74 | |||||||||||||||||||||||
Net investment income | 1 | 1 | — | — | — | 2 | — | 2 | |||||||||||||||||||||||
Total | $ | 46 | $ | 22 | $ | 22 | $ | — | $ | 10 | $ | 100 | $ | — | $ | 100 | |||||||||||||||
Incremental Change | |||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 28 | $ | 9 | $ | 17 | $ | — | $ | — | $ | 54 | $ | — | $ | 54 | |||||||||||||||
Policy acquisition costs | 13 | 4 | 8 | — | — | 25 | — | 25 | |||||||||||||||||||||||
Administrative expenses | 46 | 17 | 63 | 1 | 22 | 149 | 1 | 150 | |||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | 87 | $ | 30 | $ | 88 | $ | 1 | $ | 22 | $ | 228 | $ | 1 | $ | 229 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Long-tail | Short-tail | Total | Long-tail | Short-tail | Total | |||||||||||||||||
2017 | |||||||||||||||||||||||
North America Commercial P&C Insurance | $ | (101 | ) | $ | (30 | ) | $ | (131 | ) | $ | (200 | ) | $ | (110 | ) | $ | (310 | ) | |||||
North America Personal P&C Insurance | 20 | 17 | 37 | 20 | 14 | 34 | |||||||||||||||||
North America Agricultural Insurance | — | — | — | — | (79 | ) | (79 | ) | |||||||||||||||
Overseas General Insurance | — | (88 | ) | (88 | ) | 32 | (108 | ) | (76 | ) | |||||||||||||
Global Reinsurance | (36 | ) | 5 | (31 | ) | (28 | ) | 5 | (23 | ) | |||||||||||||
Corporate | 43 | — | 43 | 53 | — | 53 | |||||||||||||||||
Total | $ | (74 | ) | $ | (96 | ) | $ | (170 | ) | $ | (123 | ) | $ | (278 | ) | $ | (401 | ) | |||||
2016 | |||||||||||||||||||||||
North America Commercial P&C Insurance | $ | (167 | ) | $ | (1 | ) | $ | (168 | ) | $ | (309 | ) | $ | (37 | ) | $ | (346 | ) | |||||
North America Personal P&C Insurance | (4 | ) | (11 | ) | (15 | ) | (4 | ) | (14 | ) | (18 | ) | |||||||||||
North America Agricultural Insurance | — | — | — | — | (41 | ) | (41 | ) | |||||||||||||||
Overseas General Insurance | (1 | ) | (84 | ) | (85 | ) | (1 | ) | (114 | ) | (115 | ) | |||||||||||
Global Reinsurance | (47 | ) | — | (47 | ) | (49 | ) | (1 | ) | (50 | ) | ||||||||||||
Corporate | 14 | — | 14 | 22 | — | 22 | |||||||||||||||||
Total | $ | (205 | ) | $ | (96 | ) | $ | (301 | ) | $ | (341 | ) | $ | (207 | ) | $ | (548 | ) |
Segment Operating Results – Three and Six Months Ended June 30, 2017 and 2016 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | Q-17 vs. Q-16 | 2017 | 2016 | YTD-17 vs. YTD-16 | |||||||||||||||||||
Net premiums written | $ | 3,204 | $ | 3,245 | (1.3 | )% | $ | 5,946 | $ | 5,547 | 7.2 | % | |||||||||||||
Net premiums earned | 3,099 | 3,148 | (1.6 | )% | 6,140 | 6,044 | 1.6 | % | |||||||||||||||||
Losses and loss expenses | 1,936 | 1,971 | (1.8 | )% | 3,796 | 3,718 | 2.1 | % | |||||||||||||||||
Policy acquisition costs | 464 | 545 | (14.9 | )% | 951 | 1,027 | (7.4 | )% | |||||||||||||||||
Administrative expenses | 241 | 299 | (19.4 | )% | 472 | 565 | (16.5 | )% | |||||||||||||||||
Underwriting income | 458 | 333 | 37.5 | % | 921 | 734 | 25.5 | % | |||||||||||||||||
Net investment income | 490 | 468 | 4.7 | % | 968 | 894 | 8.3 | % | |||||||||||||||||
Other (income) expense | (4 | ) | (9 | ) | (55.6 | )% | — | (9 | ) | NM | |||||||||||||||
Segment income | $ | 952 | $ | 810 | 17.5 | % | $ | 1,889 | $ | 1,637 | 15.4 | % | |||||||||||||
Loss and loss expense ratio | 62.5 | % | 62.6 | % | (0.1 | ) | pts | 61.8 | % | 61.5 | % | 0.3 | pts | ||||||||||||
Policy acquisition cost ratio | 15.0 | % | 17.3 | % | (2.3 | ) | pts | 15.5 | % | 17.0 | % | (1.5 | ) | pts | |||||||||||
Administrative expense ratio | 7.7 | % | 9.6 | % | (1.9 | ) | pts | 7.7 | % | 9.4 | % | (1.7 | ) | pts | |||||||||||
Combined ratio | 85.2 | % | 89.5 | % | (4.3 | ) | pts | 85.0 | % | 87.9 | % | (2.9 | ) | pts |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Catastrophe losses, pre-tax | $ | 102 | $ | 160 | $ | 185 | $ | 241 | |||||||
Favorable prior period development net of related reinstatement premiums, pre-tax | $ | 131 | $ | 168 | $ | 310 | $ | 346 |
• | 2017: Severe weather-related events in the U.S. |
• | 2016: Severe weather-related events in the U.S. and a wildfire in Canada. |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Loss and loss expense ratio | 62.5 | % | 62.6 | % | 61.8 | % | 61.5 | % | |||
Catastrophe losses | (3.3 | )% | (5.1 | )% | (3.0 | )% | (4.0 | )% | |||
Prior period development net of related reinstatement premiums | 4.2 | % | 5.4 | % | 5.1 | % | 5.8 | % | |||
Loss and loss expense ratio, adjusted | 63.4 | % | 62.9 | % | 63.9 | % | 63.3 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | Q-17 vs. Q-16 | 2017 | 2016 | YTD-17 vs. YTD-16 | |||||||||||||||||||
Net premiums written | $ | 1,255 | $ | 1,231 | 2.0 | % | $ | 2,239 | $ | 2,102 | 6.5 | % | |||||||||||||
Net premiums earned | 1,093 | 1,140 | (4.0 | )% | 2,179 | 2,164 | 0.7 | % | |||||||||||||||||
Losses and loss expenses | 683 | 661 | 3.3 | % | 1,316 | 1,322 | (0.5 | )% | |||||||||||||||||
Policy acquisition costs | 230 | 269 | (14.5 | )% | 447 | 518 | (13.7 | )% | |||||||||||||||||
Administrative expenses | 66 | 98 | (32.7 | )% | 131 | 186 | (29.6 | )% | |||||||||||||||||
Underwriting income | 114 | 112 | 1.8 | % | 285 | 138 | 106.5 | % | |||||||||||||||||
Net investment income | 56 | 55 | 1.8 | % | 111 | 102 | 8.8 | % | |||||||||||||||||
Other (income) expense | 1 | 3 | (66.7 | )% | 2 | 4 | (50.0 | )% | |||||||||||||||||
Amortization of purchased intangibles | 5 | 4 | 25.0 | % | 8 | 12 | (33.3 | )% | |||||||||||||||||
Segment income | $ | 164 | $ | 160 | 2.5 | % | $ | 386 | $ | 224 | 72.3 | % | |||||||||||||
Loss and loss expense ratio | 62.4 | % | 58.0 | % | 4.4 | pts | 60.4 | % | 61.1 | % | (0.7 | ) | pts | ||||||||||||
Policy acquisition cost ratio | 21.1 | % | 23.6 | % | (2.5 | ) | pts | 20.5 | % | 23.9 | % | (3.4 | ) | pts | |||||||||||
Administrative expense ratio | 6.1 | % | 8.5 | % | (2.4 | ) | pts | 6.0 | % | 8.6 | % | (2.6 | ) | pts | |||||||||||
Combined ratio | 89.6 | % | 90.1 | % | (0.5 | ) | pts | 86.9 | % | 93.6 | % | (6.7 | ) | pts | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Catastrophe losses, pre-tax | $ | 77 | $ | 97 | $ | 145 | $ | 253 | |||||||
Favorable (unfavorable) prior period development, pre-tax | $ | (37 | ) | $ | 15 | $ | (34 | ) | $ | 18 |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Loss and loss expense ratio | 62.4 | % | 58.0 | % | 60.4 | % | 61.1 | % | |||
Catastrophe losses | (7.0 | )% | (8.5 | )% | (6.7 | )% | (11.7 | )% | |||
Prior period development | (3.3 | )% | 1.4 | % | (1.5 | )% | 0.9 | % | |||
Loss and loss expense ratio, adjusted | 52.1 | % | 50.9 | % | 52.2 | % | 50.3 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | Q-17 vs. Q-16 | 2017 | 2016 | YTD-17 vs. YTD-16 | |||||||||||||||||||
Net premiums written | $ | 403 | $ | 375 | 7.7 | % | $ | 464 | $ | 439 | 5.9 | % | |||||||||||||
Net premiums earned | 344 | 327 | 5.4 | % | 358 | 350 | 2.3 | % | |||||||||||||||||
Losses and loss expenses | 292 | 286 | 2.1 | % | 219 | 256 | (14.5 | )% | |||||||||||||||||
Policy acquisition costs | 27 | 25 | 8.0 | % | 26 | 29 | (10.3 | )% | |||||||||||||||||
Administrative expenses | 2 | 2 | — | (3 | ) | (2 | ) | 50.0 | % | ||||||||||||||||
Underwriting income | 23 | 14 | 64.3 | % | 116 | 67 | 73.1 | % | |||||||||||||||||
Net investment income | 6 | 5 | 20.0 | % | 12 | 10 | 20.0 | % | |||||||||||||||||
Other (income) expense | 1 | — | NM | 1 | — | NM | |||||||||||||||||||
Amortization of purchased intangibles | 7 | 8 | (12.5 | )% | 14 | 15 | (6.7 | )% | |||||||||||||||||
Segment income | $ | 21 | $ | 11 | 90.9 | % | $ | 113 | $ | 62 | 82.3 | % | |||||||||||||
Loss and loss expense ratio | 85.2 | % | 87.5 | % | (2.3 | ) | pts | 61.3 | % | 73.3 | % | (12.0 | ) | pts | |||||||||||
Policy acquisition cost ratio | 7.7 | % | 7.7 | % | — | 7.2 | % | 8.2 | % | (1.0 | ) | pts | |||||||||||||
Administrative expense ratio | 0.4 | % | 0.7 | % | (0.3 | ) | pts | (0.8 | )% | (0.5 | )% | (0.3 | ) | pts | |||||||||||
Combined ratio | 93.3 | % | 95.9 | % | (2.6 | ) | pts | 67.7 | % | 81.0 | % | (13.3 | ) | pts |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Catastrophe losses, pre-tax | $ | 8 | $ | 14 | $ | 13 | $ | 16 | |||||||
Favorable prior period development, pre-tax | $ | — | $ | — | $ | 79 | $ | 41 |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Loss and loss expense ratio | 85.2 | % | 87.5 | % | 61.3 | % | 73.3 | % | |||
Catastrophe losses | (2.2 | )% | (4.2 | )% | (3.5 | )% | (4.5 | )% | |||
Prior period development | — | — | 23.9 | % | 13.0 | % | |||||
Loss and loss expense ratio, adjusted | 83.0 | % | 83.3 | % | 81.7 | % | 81.8 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | Q-17 vs. Q-16 | 2017 | 2016 | YTD-17 vs. YTD-16 | |||||||||||||||||||
Net premiums written (1) | $ | 2,006 | $ | 2,031 | (1.2 | )% | $ | 4,206 | $ | 4,072 | 3.3 | % | |||||||||||||
Net premiums earned | 2,018 | 2,093 | (3.6 | )% | 3,954 | 4,048 | (2.3 | )% | |||||||||||||||||
Losses and loss expenses | 964 | 1,089 | (11.5 | )% | 2,035 | 2,110 | (3.6 | )% | |||||||||||||||||
Policy acquisition costs | 555 | 537 | 3.4 | % | 1,084 | 1,040 | 4.2 | % | |||||||||||||||||
Administrative expenses | 243 | 277 | (12.3 | )% | 488 | 540 | (9.6 | )% | |||||||||||||||||
Underwriting income (2) | 256 | 190 | 34.7 | % | 347 | 358 | (3.1 | )% | |||||||||||||||||
Net investment income | 148 | 147 | 0.7 | % | 296 | 293 | 1.0 | % | |||||||||||||||||
Other (income) expense | (3 | ) | (5 | ) | (40.0 | )% | (4 | ) | (10 | ) | (60.0 | )% | |||||||||||||
Amortization of purchased intangibles | 11 | 13 | (15.4 | )% | 22 | 24 | (8.3 | )% | |||||||||||||||||
Segment income | $ | 396 | $ | 329 | 20.4 | % | $ | 625 | $ | 637 | (1.9 | )% | |||||||||||||
Loss and loss expense ratio | 47.8 | % | 52.1 | % | (4.3 | ) | pts | 51.5 | % | 52.1 | % | (0.6 | ) | pts | |||||||||||
Policy acquisition cost ratio | 27.5 | % | 25.6 | % | 1.9 | pts | 27.4 | % | 25.7 | % | 1.7 | pts | |||||||||||||
Administrative expense ratio | 12.0 | % | 13.2 | % | (1.2 | ) | pts | 12.3 | % | 13.3 | % | (1.0 | ) | pts | |||||||||||
Combined ratio | 87.3 | % | 90.9 | % | (3.6 | ) | pts | 91.2 | % | 91.1 | % | 0.1 | pts |
(1) | For the three and six months ended June 30, 2017, net premiums written increased $7 million and $196 million, or 0.3 percent and 4.9 percent, respectively, on a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period. |
(2) | For the three and six months ended June 30, 2017, underwriting income increased $64 million and decreased $11 million, or 33.9 percent and 2.9 percent, respectively, on a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period. |
Three Months Ended June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2017 % of Total | 2016 | 2016 % of Total | C$ (1) 2016 | Q-17 vs. Q-16 | C$ (1)Q-17 vs. Q-16 | ||||||||||||||||
Region | |||||||||||||||||||||||
Europe | $ | 726 | 36 | % | $ | 807 | 40 | % | $ | 763 | (10.0 | )% | (4.8 | )% | |||||||||
Latin America | 508 | 25 | % | 483 | 24 | % | 502 | 5.2 | % | 1.2 | % | ||||||||||||
Asia | 673 | 34 | % | 641 | 31 | % | 639 | 5.0 | % | 5.3 | % | ||||||||||||
Other (2) | 99 | 5 | % | 100 | 5 | % | 95 | (1.0 | )% | 4.2 | % | ||||||||||||
Net premiums written | $ | 2,006 | 100 | % | $ | 2,031 | 100 | % | $ | 1,999 | (1.2 | )% | 0.3 | % |
Six Months Ended June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2017 % of Total | 2016 | 2016 % of Total | C$ (1) 2016 | YTD-17 vs. YTD-16 | C$ (1)YTD-17 vs. YTD-16 | ||||||||||||||||
Region | |||||||||||||||||||||||
Europe | $ | 1,756 | 42 | % | $ | 1,706 | 42 | % | $ | 1,611 | 2.9 | % | 9.0 | % | |||||||||
Latin America | 1,005 | 24 | % | 965 | 24 | % | 992 | 4.1 | % | 1.3 | % | ||||||||||||
Asia | 1,250 | 30 | % | 1,211 | 30 | % | 1,223 | 3.2 | % | 2.2 | % | ||||||||||||
Other (2) | 195 | 4 | % | 190 | 4 | % | 184 | 2.6 | % | 6.0 | % | ||||||||||||
Net premiums written | $ | 4,206 | 100 | % | $ | 4,072 | 100 | % | $ | 4,010 | 3.3 | % | 4.9 | % |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Catastrophe losses, pre-tax | $ | 10 | $ | 73 | $ | 60 | $ | 91 | |||||||
Favorable prior period development, pre-tax | $ | 88 | $ | 85 | $ | 76 | $ | 115 |
• | 2017: Cyclone Debbie in Australia and flooding in Latin America |
• | 2016: Severe weather related events in Europe and an earthquake in Ecuador |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Loss and loss expense ratio | 47.8 | % | 52.1 | % | 51.5 | % | 52.1 | % | |||
Catastrophe losses | (0.5 | )% | (3.5 | )% | (1.6 | )% | (2.2 | )% | |||
Prior period development | 4.3 | % | 4.1 | % | 2.0 | % | 2.9 | % | |||
Loss and loss expense ratio, adjusted | 51.6 | % | 52.7 | % | 51.9 | % | 52.8 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | Q-17 vs. Q-16 | 2017 | 2016 | YTD-17 vs. YTD-16 | |||||||||||||||||
Net premiums written | $ | 190 | $ | 230 | (17.7 | )% | $ | 389 | $ | 431 | (9.9 | )% | |||||||||||
Net premiums earned | 168 | 185 | (9.6 | )% | 357 | 387 | (7.9 | )% | |||||||||||||||
Losses and loss expenses | 46 | 87 | (47.1 | )% | 140 | 176 | (20.5 | )% | |||||||||||||||
Policy acquisition costs | 43 | 47 | (8.5 | )% | 94 | 100 | (6.0 | )% | |||||||||||||||
Administrative expenses | 12 | 14 | (14.3 | )% | 22 | 28 | (21.4 | )% | |||||||||||||||
Underwriting income | 67 | 37 | 81.1 | % | 101 | 83 | 21.7 | % | |||||||||||||||
Net investment income | 65 | 65 | — | 127 | 132 | (3.8 | )% | ||||||||||||||||
Other (income) expense | 1 | (2 | ) | NM | 1 | (3 | ) | NM | |||||||||||||||
Segment income | $ | 131 | $ | 104 | 26.0 | % | $ | 227 | $ | 218 | 4.1 | % | |||||||||||
Loss and loss expense ratio | 27.8 | % | 46.9 | % | (19.1) | pts | 39.3 | % | 45.5 | % | (6.2) | pts | |||||||||||
Policy acquisition cost ratio | 25.7 | % | 25.5 | % | 0.2 | pts | 26.3 | % | 25.9 | % | 0.4 | pts | |||||||||||
Administrative expense ratio | 6.7 | % | 7.4 | % | (0.7) | pts | 6.2 | % | 7.1 | % | (0.9) | pts | |||||||||||
Combined ratio | 60.2 | % | 79.8 | % | (19.6) | pts | 71.8 | % | 78.5 | % | (6.7) | pts |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Catastrophe losses, pre-tax | $ | 3 | $ | 52 | $ | 3 | $ | 53 | |||||||
Favorable prior period development net of related reinstatement premiums, pre-tax | $ | 31 | $ | 47 | $ | 23 | $ | 50 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Loss and loss expense ratio | 27.8 | % | 46.9 | % | 39.3 | % | 45.5 | % | |||||||
Catastrophe losses and related reinstatement premiums | (1.9 | )% | (27.8 | )% | (0.8 | )% | (13.3 | )% | |||||||
Prior period development net of related reinstatement premiums (1) | 18.5 | % | 26.9 | % | 5.3 | % | 13.6 | % | |||||||
Loss and loss expense ratio, adjusted | 44.4 | % | 46.0 | % | 43.8 | % | 45.8 | % | |||||||
(1) Reinstatement premiums expensed (collected) on prior period development - pre-tax | $ | — | $ | — | $ | (7 | ) | $ | — |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | Q-17 vs. Q-16 | 2017 | 2016 | YTD-17 vs. YTD-16 | |||||||||||||||
Net premiums written | $ | 523 | $ | 527 | (0.7 | )% | $ | 1,047 | $ | 1,043 | 0.4 | % | |||||||||
Net premiums earned | 515 | 512 | 0.8 | % | 1,021 | 1,009 | 1.2 | % | |||||||||||||
Losses and loss expenses | 182 | 147 | 23.8 | % | 375 | 324 | 15.7 | % | |||||||||||||
Policy benefits (1) | 163 | 146 | 11.6 | % | 331 | 272 | 21.7 | % | |||||||||||||
(Gains) losses from fair value changes in separate account assets (1) | (16 | ) | (3 | ) | NM | (46 | ) | — | NM | ||||||||||||
Policy acquisition costs | 130 | 137 | (5.1 | )% | 244 | 259 | (5.8 | )% | |||||||||||||
Administrative expenses | 77 | 77 | — | 149 | 149 | — | |||||||||||||||
Net investment income | 77 | 69 | 11.6 | % | 152 | 136 | 11.8 | % | |||||||||||||
Life Insurance underwriting income | 56 | 77 | (27.3 | )% | 120 | 141 | (14.9 | )% | |||||||||||||
Other (income) expense (1) | 4 | 3 | 33.3 | % | 5 | 6 | (16.7 | )% | |||||||||||||
Amortization of purchased intangibles | — | — | NM | 1 | 1 | — | |||||||||||||||
Segment income | $ | 52 | $ | 74 | (29.7 | )% | $ | 114 | $ | 134 | (14.9 | )% |
(1) | (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified from Other income (expense) for purposes of presenting Life Insurance underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | C$ (1) 2016 | Q-17 vs. Q-16 | C$ (1) Q-17 vs. Q-16 | 2017 | 2016 | C$ (1) 2016 | Y-17 vs. Y-16 | C$ (1) Y-17 vs. Y-16 | |||||||||||||||||||||||||
Deposits collected on Universal life and investment contracts | $ | 316 | $ | 262 | $ | 270 | 20.5 | % | 16.8 | % | $ | 626 | $ | 475 | $ | 488 | 31.8 | % | 28.3 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2017 | 2016 | Q-17 vs. Q-16 | 2017 | 2016 | YTD-16 vs. YTD-15 | |||||||||||||||
Losses and loss expenses | $ | 45 | $ | 15 | 200.0 | % | $ | 56 | $ | 24 | 133.3 | % | |||||||||
Administrative expenses | 65 | 62 | 4.8 | % | 123 | 135 | (8.9 | )% | |||||||||||||
Underwriting loss | 110 | 77 | 42.9 | % | 179 | 159 | 12.6 | % | |||||||||||||
Net investment income (loss) | (72 | ) | (101 | ) | (28.7 | )% | (151 | ) | (185 | ) | (18.4 | )% | |||||||||
Interest expense | 147 | 153 | (3.9 | )% | 301 | 299 | 0.7 | % | |||||||||||||
Net realized gains (losses) | 101 | (216 | ) | NM | 94 | (610 | ) | NM | |||||||||||||
Other (income) expense | (129 | ) | (16 | ) | NM | (174 | ) | 11 | NM | ||||||||||||
Amortization expense (benefit) of purchased intangibles | 42 | (20 | ) | NM | 84 | (40 | ) | NM | |||||||||||||
Chubb integration expenses | 72 | 98 | (26.5 | )% | 183 | 246 | (25.6 | )% | |||||||||||||
Income tax expense | 200 | 155 | 29.0 | % | 328 | 279 | 17.6 | % | |||||||||||||
Net loss | $ | (413 | ) | $ | (764 | ) | (45.9 | )% | $ | (958 | ) | $ | (1,749 | ) | (45.2 | )% |
• | Other income in 2017 of $143 million and $204 million, respectively, from our share of net realized gains and losses from partially-owned investment companies, compared to realized gains (losses) in 2016 of $18 million and $(7) million, respectively, primarily reflecting the change in market value of these investments. |
• | Other expense in 2017 of $(14) million and $(21) million, respectively, compared to other expense in 2016 of $(2) million and $(4) million, respectively. The higher expense in 2017 was primarily due to an increase in capital taxes resulting from a higher equity base after the Chubb Corp acquisition. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Personnel-related expenses | $ | 34 | $ | 41 | $ | 115 | $ | 116 | |||||||
Leases and real estate termination costs | 12 | 6 | 22 | 13 | |||||||||||
Consulting fees | 7 | 15 | 14 | 24 | |||||||||||
Rebranding | 6 | 18 | 6 | 21 | |||||||||||
Advisor fees | — | — | — | 38 | |||||||||||
Other | 13 | 18 | 26 | 34 | |||||||||||
Totals | $ | 72 | $ | 98 | $ | 183 | $ | 246 |
Other Income and Expense Items |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Equity in net (income) loss of partially-owned entities | $ | (146 | ) | $ | (31 | ) | $ | (199 | ) | $ | (16 | ) | |||
(Gains) losses from fair value changes in separate account assets (1) | (16 | ) | (3 | ) | (46 | ) | — | ||||||||
Federal excise and capital taxes | 15 | 5 | 18 | 6 | |||||||||||
Other | 2 | — | 12 | 9 | |||||||||||
Other (income) expense | $ | (145 | ) | $ | (29 | ) | $ | (215 | ) | $ | (1 | ) |
(1) | Related to (gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. |
Amortization of purchased intangibles and Other amortization |
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 on Unpaid losses and loss expenses | Total (1) | Other intangible assets (2) | Total Amortization of purchased intangibles | |||||||||||||||||
Third quarter of 2017 | $ | 74 | $ | 8 | $ | (40 | ) | $ | 42 | $ | 21 | $ | 63 | ||||||||||
Fourth quarter of 2017 | 74 | 8 | (40 | ) | 42 | 21 | 63 | ||||||||||||||||
2018 | 323 | 32 | (101 | ) | 254 | 78 | 332 | ||||||||||||||||
2019 | 281 | — | (62 | ) | 219 | 68 | 287 | ||||||||||||||||
2020 | 239 | — | (35 | ) | 204 | 62 | 266 | ||||||||||||||||
2021 | 217 | — | (20 | ) | 197 | 53 | 250 | ||||||||||||||||
2022 | 197 | — | (15 | ) | 182 | 49 | 231 | ||||||||||||||||
Total | $ | 1,405 | $ | 48 | $ | (313 | ) | $ | 1,140 | $ | 352 | $ | 1,492 |
(1) | Recorded in Corporate. |
(2) | Recorded in applicable segment(s) that acquired the intangible assets. |
For the Years Ending December 31 (in millions of U.S. dollars) | Reduction of deferred tax liability associated with intangible assets related to the Chubb Corp acquisition | ||
Third quarter of 2017 | $ | 29 | |
Fourth quarter of 2017 | 29 | ||
2018 | 124 | ||
2019 | 98 | ||
2020 | 84 | ||
2021 | 76 | ||
2022 | 69 | ||
Total | $ | 509 |
Amortization (expense) benefit of the fair value adjustment on | |||||||
For the Years Ending December 31 (in millions of U.S. dollars) | Acquired invested assets (1) | Assumed long-term debt (2) | |||||
Third quarter of 2017 | $ | (85 | ) | $ | 12 | ||
Fourth quarter of 2017 | (85 | ) | 12 | ||||
2018 | (320 | ) | 31 | ||||
2019 | (320 | ) | 19 | ||||
2020 | (238 | ) | 19 | ||||
2021 | — | 19 | |||||
2022 | — | 19 | |||||
Total | $ | (1,048 | ) | $ | 131 |
(1) | Recorded as a reduction to Net investment income in the Consolidated statements of operations. |
(2) | Recorded as a reduction to Interest expense in the Consolidated statements of operations. |
Net Investment Income |
Three Months Ended | Six Months Ended | |||||||||||||
June 30 | June 30 | |||||||||||||
(in millions of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | ||||||||||
Fixed maturities | $ | 741 | $ | 686 | $ | 1,471 | $ | 1,329 | ||||||
Short-term investments | 31 | 22 | 57 | 45 | ||||||||||
Equity securities | 13 | 9 | 22 | 21 | ||||||||||
Other investments | 24 | 26 | 43 | 53 | ||||||||||
Gross investment income (1) | 809 | 743 | 1,593 | 1,448 | ||||||||||
Investment expenses | (39 | ) | (35 | ) | (78 | ) | (66 | ) | ||||||
Net investment income (1) | $ | 770 | $ | 708 | $ | 1,515 | $ | 1,382 | ||||||
(1) Includes amortization expense related to fair value adjustment of acquired invested assets related to the Chubb Corp acquisition | $ | (85 | ) | $ | (108 | ) | $ | (176 | ) | $ | (201 | ) |
Net Realized and Unrealized Gains (Losses) |
Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | |||||||||||||||||
Fixed maturities | $ | 23 | $ | 423 | $ | 446 | $ | 7 | $ | 954 | $ | 961 | |||||||||||
Fixed income derivatives | (16 | ) | — | (16 | ) | (47 | ) | — | (47 | ) | |||||||||||||
Public equity | 2 | 15 | 17 | (5 | ) | 33 | 28 | ||||||||||||||||
Private equity | (1 | ) | (4 | ) | (5 | ) | 13 | (42 | ) | (29 | ) | ||||||||||||
Total investment portfolio (1) | 8 | 434 | 442 | (32 | ) | 945 | 913 | ||||||||||||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges | 80 | — | 80 | (159 | ) | — | (159 | ) | |||||||||||||||
Other derivatives | (1 | ) | — | (1 | ) | — | — | — | |||||||||||||||
Foreign exchange | 14 | 102 | 116 | (22 | ) | 81 | 59 | ||||||||||||||||
Other | — | (35 | ) | (35 | ) | (3 | ) | 1 | (2 | ) | |||||||||||||
Net gains (losses) before tax | $ | 101 | $ | 501 | $ | 602 | $ | (216 | ) | $ | 1,027 | $ | 811 |
(1) | For the three months ended June 30, 2017, other-than-temporary impairments in Net realized gains (losses) included $4 million for fixed maturities, $3 million for public equity, and $1 million for private equity. For the three months ended June 30, 2016, other-than-temporary impairments in Net realized gains (losses) included $11 million for fixed maturities and $5 million for public equity. |
Six Months Ended June 30, 2017 | Six Months Ended June 30, 2016 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | |||||||||||||||||
Fixed maturities | $ | 11 | $ | 679 | $ | 690 | $ | (183 | ) | $ | 2,042 | $ | 1,859 | ||||||||||
Fixed income derivatives | (10 | ) | — | (10 | ) | (86 | ) | — | (86 | ) | |||||||||||||
Public equity | 6 | 43 | 49 | 33 | 29 | 62 | |||||||||||||||||
Private equity | (8 | ) | 27 | 19 | 16 | (69 | ) | (53 | ) | ||||||||||||||
Total investment portfolio (1) | (1 | ) | 749 | 748 | (220 | ) | 2,002 | 1,782 | |||||||||||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges | 99 | — | 99 | (402 | ) | — | (402 | ) | |||||||||||||||
Other derivatives | 1 | — | 1 | (2 | ) | — | (2 | ) | |||||||||||||||
Foreign exchange | (5 | ) | 236 | 231 | 17 | 393 | 410 | ||||||||||||||||
Other | — | (55 | ) | (55 | ) | (3 | ) | 3 | — | ||||||||||||||
Net gains (losses) before tax | $ | 94 | $ | 930 | $ | 1,024 | $ | (610 | ) | $ | 2,398 | $ | 1,788 |
(1) | For the six months ended June 30, 2017, other-than-temporary impairments in Net realized gains (losses) included $10 million for fixed maturities, $8 million for public equity, and $9 million for private equity. For the six months ended June 30, 2016, other-than-temporary impairments in Net realized gains (losses) included $70 million for fixed maturities, $6 million for public equity, and $3 million for private equity. |
Investments |
June 30, 2017 | December 31, 2016 | ||||||||||||||
(in millions of U.S. dollars) | Fair Value | Cost/ Amortized Cost | Fair Value | Cost/ Amortized Cost | |||||||||||
Fixed maturities available for sale | $ | 81,645 | $ | 80,363 | $ | 80,115 | $ | 79,536 | |||||||
Fixed maturities held to maturity | 10,560 | 10,371 | 10,670 | 10,644 | |||||||||||
Short-term investments | 2,651 | 2,651 | 3,002 | 3,002 | |||||||||||
94,856 | 93,385 | 93,787 | 93,182 | ||||||||||||
Equity securities | 856 | 697 | 814 | 706 | |||||||||||
Other investments | 4,685 | 4,410 | 4,519 | 4,270 | |||||||||||
Total investments | $ | 100,397 | $ | 98,492 | $ | 99,120 | $ | 98,158 |
June 30, 2017 | December 31, 2016 | ||||||||||||
(in millions of U.S. dollars, except for percentages) | Market Value | % of Total | Market Value | % of Total | |||||||||
Treasury | $ | 3,117 | 3 | % | $ | 2,832 | 3 | % | |||||
Agency | 632 | 1 | % | 699 | 1 | % | |||||||
Corporate and asset-backed securities | 28,064 | 30 | % | 26,944 | 29 | % | |||||||
Mortgage-backed securities | 15,777 | 17 | % | 15,435 | 16 | % | |||||||
Municipal | 22,263 | 23 | % | 22,768 | 24 | % | |||||||
Non-U.S. | 22,352 | 23 | % | 22,107 | 24 | % | |||||||
Short-term investments | 2,651 | 3 | % | 3,002 | 3 | % | |||||||
Total | $ | 94,856 | 100 | % | $ | 93,787 | 100 | % | |||||
AAA | $ | 15,411 | 16 | % | $ | 15,746 | 17 | % | |||||
AA | 36,107 | 38 | % | 36,235 | 39 | % | |||||||
A | 18,011 | 19 | % | 17,519 | 19 | % | |||||||
BBB | 12,513 | 13 | % | 12,237 | 13 | % | |||||||
BB | 7,151 | 8 | % | 6,993 | 7 | % | |||||||
B | 5,390 | 6 | % | 4,814 | 5 | % | |||||||
Other | 273 | — | % | 243 | — | % | |||||||
Total | $ | 94,856 | 100 | % | $ | 93,787 | 100 | % |
(in millions of U.S. dollars) | Market Value | ||
Wells Fargo & Co | $ | 588 | |
JP Morgan Chase & Co | 533 | ||
Goldman Sachs Group Inc | 464 | ||
Anheuser-Busch InBev NV | 433 | ||
General Electric Co | 394 | ||
Morgan Stanley | 363 | ||
Verizon Communications Inc | 356 | ||
Bank of America Corp | 349 | ||
AT&T Inc | 345 | ||
HSBC Holdings Plc | 318 |
S&P Credit Rating | Market Value | Amortized Cost | |||||||||||||||||||||||||
June 30, 2017 (in millions of U.S. dollars) | AAA | AA | A | BBB | BB and below | Total | Total | ||||||||||||||||||||
Agency residential mortgage-backed (RMBS) | $ | — | $ | 12,765 | $ | — | $ | — | $ | — | $ | 12,765 | $ | 12,749 | |||||||||||||
Non-agency RMBS | 1 | 5 | 60 | 3 | 28 | 97 | 105 | ||||||||||||||||||||
Commercial mortgage-backed | 2,902 | 13 | — | — | — | 2,915 | 2,883 | ||||||||||||||||||||
Total mortgage-backed securities | $ | 2,903 | $ | 12,783 | $ | 60 | $ | 3 | $ | 28 | $ | 15,777 | $ | 15,737 |
(in millions of U.S. dollars) | Market Value | Amortized Cost | |||||
United Kingdom | $ | 1,406 | $ | 1,367 | |||
Republic of Korea | 1,058 | 962 | |||||
Canada | 869 | 872 | |||||
Federative Republic of Brazil | 798 | 790 | |||||
Province of Ontario | 629 | 623 | |||||
United Mexican States | 506 | 506 | |||||
Province of Quebec | 499 | 494 | |||||
Kingdom of Thailand | 482 | 459 | |||||
Germany | 389 | 381 | |||||
Australia | 351 | 341 | |||||
Other Non-U.S. Government Securities (1) | 4,229 | 4,126 | |||||
Total | $ | 11,216 | $ | 10,921 |
(1) | There are no investments in Portugal, Ireland, Italy, Greece or Spain. |
(in millions of U.S. dollars) | Market Value | Amortized Cost | |||||
United Kingdom | $ | 2,070 | $ | 1,985 | |||
Canada | 1,373 | 1,350 | |||||
United States (1) | 906 | 882 | |||||
France | 837 | 810 | |||||
Netherlands | 714 | 692 | |||||
Australia | 713 | 700 | |||||
Germany | 621 | 606 | |||||
Japan | 348 | 347 | |||||
Switzerland | 335 | 325 | |||||
China | 285 | 280 | |||||
Other Non-U.S. Corporate Securities | 2,934 | 2,853 | |||||
Total | $ | 11,136 | $ | 10,830 |
Critical Accounting Estimates |
June 30 | December 31 | ||||||
(in millions of U.S. dollars) | 2017 | 2016 | |||||
Reinsurance recoverable on unpaid losses and loss expenses (1) | $ | 12,485 | $ | 12,708 | |||
Reinsurance recoverable on paid losses and loss expenses (1) | 873 | 869 | |||||
Reinsurance recoverable on losses and loss expenses (1) | $ | 13,358 | $ | 13,577 | |||
Reinsurance recoverable on policy benefits (1) | $ | 198 | $ | 182 |
(1) | Net of provision for uncollectible reinsurance |
(in millions of U.S. dollars) | Gross Losses | Reinsurance Recoverable (1) | Net Losses | ||||||||
Balance at December 31, 2016 | $ | 60,540 | $ | 12,708 | $ | 47,832 | |||||
Losses and loss expenses incurred | 9,768 | 1,833 | 7,935 | ||||||||
Losses and loss expenses paid | (10,186 | ) | (2,157 | ) | (8,029 | ) | |||||
Foreign currency revaluation and other | 272 | 101 | 171 | ||||||||
Balance at June 30, 2017 | $ | 60,394 | $ | 12,485 | $ | 47,909 |
(1) | Net of provision for uncollectible reinsurance |
Catastrophe management |
Modeled Annual Aggregate Net PML | ||||||||||||||||||||||||||||
U.S. Hurricane | California Earthquake | |||||||||||||||||||||||||||
June 30 | June 30 | June 30 | June 30 | |||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Chubb | % of Total Shareholders’ Equity | % of Industry | Chubb | Chubb | % of Total Shareholders’ Equity | % of Industry | Chubb | ||||||||||||||||||||
1-in-100 | $ | 2,919 | 5.8 | % | 2.0 | % | $ | 3,310 | $ | 1,436 | 2.9 | % | 3.7 | % | $ | 1,504 | ||||||||||||
1-in-250 | $ | 5,033 | 10.0 | % | 2.5 | % | $ | 5,717 | $ | 1,891 | 3.8 | % | 3.1 | % | $ | 2,114 |
Natural Catastrophe Property Reinsurance Program |
Loss Location | Layer of Loss | Comments | Notes | ||
United States (excluding Alaska and Hawaii) | $0 million – $1.0 billion | Losses retained by Chubb | (a) | ||
United States (excluding Alaska and Hawaii) | $1.0 billion – $1.25 billion | All natural perils and terrorism | (b) | ||
United States (excluding Alaska and Hawaii) | $1.25 billion – $2.0 billion | All natural perils and terrorism | (c) | ||
United States (excluding Alaska and Hawaii) | $2.0 billion – $3.5 billion | All natural perils and terrorism | (d) | ||
International (including Alaska and Hawaii) | $0 million – $175 million | Losses retained by Chubb | (a) | ||
International (including Alaska and Hawaii) | $175 million – $925 million | All natural perils and terrorism | (c) | ||
Alaska, Hawaii, and Canada | $925 million – $2.425 billion | All natural perils and terrorism | (d) | ||
(a) Ultimate retention will depend upon the nature of the loss and the interplay between the underlying per risk programs and certain other catastrophe programs purchased by individual business units. These other catastrophe programs have the potential to reduce our effective retention below the stated levels. | |||||
(b) These coverages are 20 percent placed with Reinsurers. | |||||
(c) These coverages are both part of the same Second layer within the Global Catastrophe Program and are 100 percent placed with Reinsurers. As such, it may be exhausted in one region and not available in the other. | |||||
(d) These coverages are both part of the same Third layer within the Global Catastrophe Program and are 100 percent placed with Reinsurers. As such, it may be exhausted in one region and not available in the other. |
Crop Insurance |
Liquidity |
Capital Resources |
June 30 | December 31 | ||||||
(in millions of U.S. dollars, except for ratios) | 2017 | 2016 | |||||
Short-term debt | $ | 922 | $ | 500 | |||
Long-term debt | 11,667 | 12,610 | |||||
Total financial debt | 12,589 | 13,110 | |||||
Trust preferred securities | 308 | 308 | |||||
Total shareholders’ equity | 50,349 | 48,275 | |||||
Total capitalization | $ | 63,246 | $ | 61,693 | |||
Ratio of financial debt to total capitalization | 19.9 | % | 21.3 | % | |||
Ratio of financial debt plus trust preferred securities to total capitalization | 20.4 | % | 21.8 | % |
Shareholders of record as of: | Dividends paid as of: | |||
December 30, 2016 | January 20, 2017 | $0.69 (CHF 0.69) | ||
March 31, 2017 | April 21, 2017 | $0.69 (CHF 0.69) | ||
June 30, 2017 | July 21, 2017 | $0.71 (CHF 0.69) |
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk |
• | No changes to the benefit ratio used to establish benefit reserves at June 30, 2017 |
• | Equity shocks impact all global equity markets equally |
• | Our liabilities are sensitive to global equity markets in the following proportions: 75 percent—85 percent U.S. equity, 10 percent—20 percent international equity ex-Japan, up to 10 percent Japan equity. |
• | Our current hedge portfolio is sensitive to global equity markets in the following proportions: 100 percent U.S. equity. |
• | We would suggest using the S&P 500 index as a proxy for U.S. equity, the MSCI EAFE index as a proxy for international equity, and the TOPIX as a proxy for Japan equity. |
• | Interest rate shocks assume a parallel shift in the U.S. yield curve |
• | Our liabilities are also sensitive to global interest rates at various points on the yield curve, mainly the U.S. Treasury curve in the following proportions: up to 10 percent short-term rates (maturing in less than 5 years), 15 percent—25 percent medium-term rates (maturing between 5 years and 10 years, inclusive), and 70 percent—80 percent long-term rates (maturing beyond 10 years). |
• | A change in AA-rated credit spreads (AA-rated credit spreads are a proxy for both our own credit spreads and the credit spreads of the ceding insurers) impacts the rate used to discount cash flows in the fair value model. |
• | The hedge sensitivity is from June 30, 2017 market levels. |
• | The sensitivities are not directly additive because changes in one factor will affect the sensitivity to changes in other factors. The sensitivities do not scale linearly and may be proportionally greater for larger movements in the market factors. The sensitivities may also vary due to foreign exchange rate fluctuations. The calculation of the FVL is based on internal models that include assumptions regarding future policyholder behavior, including lapse, annuitization, and asset allocation. These assumptions impact both the absolute level of the FVL as well as the sensitivities to changes in market factors shown below. Actual sensitivity of our net income may differ from those disclosed in the tables below due to differences between short-term market movements and management judgment regarding the long-term assumptions implicit in our benefit ratios. Furthermore, the sensitivities below could vary by multiples of the sensitivities in the tables below. |
• | In addition, the tables below do not reflect the expected quarterly run rate of net income generated by the variable annuity guarantee reinsurance portfolio if markets remain unchanged during the period. All else equal, if markets remain unchanged during the period, the Gross FVL will increase, resulting in a realized loss. The realized loss occurs primarily because, during the period, we will collect premium on the full population while only 69 percent of that population has become eligible to annuitize and generate a claim (since approximately 31 percent of policies are not eligible to annuitize until after June 30, 2017). This increases the Gross FVL because future premiums are lower by the amount collected in the quarter, and also because future claims are discounted for a shorter period. We refer to this increase in Gross FVL as “timing |
Interest Rate Shock | Worldwide Equity Shock | |||||||||||||||||||||||
(in millions of U.S. dollars) | +10% | Flat | -10% | -20% | -30% | -40% | ||||||||||||||||||
+100 bps | (Increase)/decrease in Gross FVL | $ | 330 | $ | 228 | $ | 38 | $ | (221 | ) | $ | (538 | ) | $ | (909 | ) | ||||||||
Increase/(decrease) in hedge value | (142 | ) | — | 142 | 285 | 427 | 570 | |||||||||||||||||
Increase/(decrease) in net income | $ | 188 | $ | 228 | $ | 180 | $ | 64 | $ | (111 | ) | $ | (339 | ) | ||||||||||
Flat | (Increase)/decrease in Gross FVL | $ | 190 | $ | — | $ | (242 | ) | $ | (546 | ) | $ | (906 | ) | $ | (1,315 | ) | |||||||
Increase/(decrease) in hedge value | (142 | ) | — | 142 | 285 | 427 | 570 | |||||||||||||||||
Increase/(decrease) in net income | $ | 48 | $ | — | $ | (100 | ) | $ | (261 | ) | $ | (479 | ) | $ | (745 | ) | ||||||||
-100 bps | (Increase)/decrease in Gross FVL | $ | (88 | ) | $ | (319 | ) | $ | (604 | ) | $ | (947 | ) | $ | (1,341 | ) | $ | (1,770 | ) | |||||
Increase/(decrease) in hedge value | (142 | ) | — | 142 | 285 | 427 | 570 | |||||||||||||||||
Increase/(decrease) in net income | $ | (230 | ) | $ | (319 | ) | $ | (462 | ) | $ | (662 | ) | $ | (914 | ) | $ | (1,200 | ) | ||||||
Sensitivities to Other Economic Variables | AA-rated Credit Spreads | Interest Rate Volatility | Equity Volatility | |||||||||||||||||||||
(in millions of U.S. dollars) | +100 bps | -100 bps | +2% | -2% | +2% | -2% | ||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 73 | $ | (83 | ) | $ | — | $ | — | $ | (10 | ) | $ | 9 | ||||||||||
Increase/(decrease) in hedge value | — | — | — | — | — | — | ||||||||||||||||||
Increase/(decrease) in net income | $ | 73 | $ | (83 | ) | $ | — | $ | — | $ | (10 | ) | $ | 9 | ||||||||||
Sensitivities to Actuarial Assumptions | Mortality | |||||||||||||||||||||||
(in millions of U.S. dollars) | +20% | +10% | -10% | -20% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 29 | $ | 14 | $ | (15 | ) | $ | (30 | ) | ||||||||||||||
Increase/(decrease) in hedge value | — | — | — | — | ||||||||||||||||||||
Increase/(decrease) in net income | $ | 29 | $ | 14 | $ | (15 | ) | $ | (30 | ) | ||||||||||||||
Lapses | ||||||||||||||||||||||||
(in millions of U.S. dollars) | +50% | +25% | -25% | -50% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 110 | $ | 58 | $ | (64 | ) | $ | (136 | ) | ||||||||||||||
Increase/(decrease) in hedge value | — | — | — | — | ||||||||||||||||||||
Increase/(decrease) in net income | $ | 110 | $ | 58 | $ | (64 | ) | $ | (136 | ) | ||||||||||||||
Annuitization | ||||||||||||||||||||||||
(in millions of U.S. dollars) | +50% | +25% | -25% | -50% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | (413 | ) | $ | (223 | ) | $ | 227 | $ | 415 | ||||||||||||||
Increase/(decrease) in hedge value | — | — | — | — | ||||||||||||||||||||
Increase/(decrease) in net income | $ | (413 | ) | $ | (223 | ) | $ | 227 | $ | 415 |
ITEM 4. Controls and Procedures |
ITEM 1. Legal Proceedings |
ITEM 1A. Risk Factors |
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (2) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan (3) | |||||||||
April 1 through April 30 | 586,714 | $ | 137.41 | 544,301 | $ | 786 | million | ||||||
May 1 through May 31 | 1,174,101 | $ | 138.96 | 1,056,924 | $ | 639 | million | ||||||
June 1 through June 30 | 787,154 | $ | 145.22 | 780,341 | $ | 525 | million | ||||||
Total | 2,547,969 | $ | 140.54 | 2,381,566 |
(1) | This column represents open market share repurchases and the surrender to Chubb of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees and the exercising of options by employees. |
ITEM 6. Exhibits |
SIGNATURES |
CHUBB LIMITED | |
(Registrant) | |
August 3, 2017 | /s/ Evan G. Greenberg |
Evan G. Greenberg | |
Chairman, President and Chief Executive Officer | |
August 3, 2017 | /s/ Philip V. Bancroft |
Philip V. Bancroft | |
Executive Vice President and Chief Financial Officer |
Incorporated by Reference | ||||||||||
Exhibit Number | Exhibit Description | Form | Original Number | Date Filed | Filed Herewith | |||||
3.1 | Articles of Association of the Company, as amended | 8-K | 3.1 | May 20, 2016 | ||||||
3.2 | Organizational Regulations of the Company, as amended | 8-K | 3.1 | November 21, 2016 | ||||||
4.1 | Articles of Association of the Company, as amended | 8-K | 4.1 | May 20, 2016 | ||||||
4.2 | Organizational Regulations of the Company, as amended | 8-K | 3.1 | November 21, 2016 | ||||||
10.1* | Director Restricted Stock Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan | X | ||||||||
31.1 | Certification Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002 | X | ||||||||
31.2 | Certification Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002 | X | ||||||||
32.1 | Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 | X | ||||||||
32.2 | Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 | X | ||||||||
101.1 | The following financial information from Chubb Limited’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 formatted in XBRL: (i) Consolidated Balance Sheets at June 30, 2017, and December 31, 2016; (ii) Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2017 and 2016; (iii) Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2017 and 2016; (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016; and (v) Notes to Consolidated Financial Statements | X | ||||||||
* Management Contract or Compensation Plan |
(a) | The “Participant” is [Insert Name]. |
(b) | The “Grant Date” is [Insert Date]. |
(c) | The number of “Covered Shares” is [Insert Number]. |
(a) | The Restricted Period shall end upon the Date of Termination, if the Date of Termination occurs by reason of the Participant's death. |
(b) | The Restricted Period shall end upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Long-Term Disability. |
(c) | The Restricted Period shall end upon a Change in Control, provided that such Change in Control occurs on or before the Date of Termination. |
(b) | Date of Termination. The “Date of Termination” means the date the Director resigns or otherwise ceases to perform services as a Director for the Company or a Related Company for any reason. |
(c) | Director. The term “Director” means a member of the Board who is not an employee of the Company or a Related Company. |
(d) | Long-Term Disability. A Participant shall be considered to have a “Long-Term Disability” if the Committee determines, using standards comparable to those used in any long-term disability plan of the Company, that the Participant would be eligible for long-term disability benefits if he or she participated in such plan. |
(e) | Plan Definitions. Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan is similarly used in these Restricted Stock Award Terms. |
1) | I have reviewed this quarterly report on Form 10-Q of Chubb Limited; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
/s/ Evan G. Greenberg |
Evan G. Greenberg |
Chairman, President and Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Chubb Limited; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
/s/ Philip V. Bancroft |
Philip V. Bancroft |
Executive Vice President and Chief Financial Officer |
Dated: August 3, 2017 | /s/ Evan G. Greenberg |
Evan G. Greenberg | |
Chairman, President and Chief Executive Officer |
Dated: August 3, 2017 | /s/ Philip V. Bancroft |
Philip V. Bancroft | |
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 21, 2017 |
|
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CB | |
Entity Registrant Name | Chubb Ltd | |
Entity Central Index Key | 0000896159 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Common Shares Outstanding | 465,416,079 |
Consolidated Balance Sheets - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Investments [Abstract] | ||||||||||
Fixed maturities available for sale, at fair value (amortized cost – $80,363 and $79,536)(includes hybrid financial instruments of $2 and $2) | $ 81,645 | $ 80,115 | ||||||||
Fixed maturities held to maturity, at amortized cost (fair value – $10,560 and $10,670) | 10,371 | 10,644 | ||||||||
Equity securities, at fair value (cost – $697 and $706) | 856 | 814 | ||||||||
Short-term investments, at fair value and amortized cost | 2,651 | 3,002 | ||||||||
Other investments (cost – $4,410 and $4,270) | 4,685 | 4,519 | ||||||||
Total investments | 100,208 | 99,094 | ||||||||
Cash | [1] | 1,297 | [2] | 985 | [3] | |||||
Securities lending collateral | 1,545 | 1,092 | ||||||||
Accrued investment income | 901 | 918 | ||||||||
Insurance and reinsurance balances receivable | 9,662 | 8,970 | ||||||||
Reinsurance recoverable on losses and loss expenses | 13,358 | 13,577 | ||||||||
Reinsurance recoverable on policy benefits | 198 | 182 | ||||||||
Deferred policy acquisition costs | 4,546 | 4,314 | ||||||||
Value of business acquired | 337 | 355 | ||||||||
Goodwill | 15,434 | 15,332 | ||||||||
Other intangible assets | 6,579 | 6,763 | ||||||||
Prepaid reinsurance premiums | 2,592 | 2,448 | ||||||||
Investments in partially-owned insurance companies | 662 | 666 | ||||||||
Other assets | 5,669 | 5,090 | ||||||||
Total assets | 162,988 | 159,786 | ||||||||
Liabilities | ||||||||||
Unpaid losses and loss expenses | 60,394 | 60,540 | ||||||||
Unearned premiums | 15,289 | 14,779 | ||||||||
Future policy benefits | 5,190 | 5,036 | ||||||||
Insurance and reinsurance balances payable | 5,841 | 5,637 | ||||||||
Securities lending payable | 1,546 | 1,093 | ||||||||
Accounts payable, accrued expenses, and other liabilities | 8,952 | 8,617 | ||||||||
Deferred tax liabilities | 1,122 | 988 | ||||||||
Repurchase agreements | 1,408 | 1,403 | ||||||||
Short-term debt | 922 | 500 | ||||||||
Long-term debt | 11,667 | 12,610 | ||||||||
Trust preferred securities | 308 | 308 | ||||||||
Total liabilities | 112,639 | 111,511 | ||||||||
Commitments and contingencies | ||||||||||
Shareholders’ equity | ||||||||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 465,375,141 and 465,968,716 shares outstanding) | 11,121 | 11,121 | ||||||||
Common Shares in treasury (14,408,723 and 13,815,148 shares) | (1,675) | (1,480) | ||||||||
Additional paid-in capital | 14,522 | 15,335 | ||||||||
Retained earnings | 26,011 | 23,613 | ||||||||
Accumulated other comprehensive income (loss) (AOCI) | 370 | (314) | ||||||||
Total shareholders’ equity | 50,349 | 48,275 | ||||||||
Total liabilities and shareholders’ equity | $ 162,988 | $ 159,786 | ||||||||
|
Consolidated Balance Sheets (Parenthetical) $ in Millions |
Jun. 30, 2017
USD ($)
shares
|
Dec. 31, 2016
USD ($)
shares
|
---|---|---|
Statement of Financial Position [Abstract] | ||
Available for sale, at amortized cost | $ 80,363 | $ 79,536 |
Fixed maturities available for sale, hybrid financial instruments | 2 | 2 |
Held to maturity, at Fair Value | 10,560 | 10,670 |
Equity securities, at cost | 697 | 706 |
Other investments, cost | $ 4,410 | $ 4,270 |
Common Shares, shares issued | shares | 479,783,864 | 479,783,864 |
Common Shares, shares outstanding | shares | 465,375,141 | 465,968,716 |
Common Shares in treasury, shares | shares | 14,408,723 | 13,815,148 |
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Total net realized gains (losses) reclassified from AOCI | $ 25 | $ 2 | $ 17 | $ (150) |
Income tax expense on reclassified unrealized gains and loses | $ 9 | $ 6 | $ 3 | $ 5 |
Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions |
6 Months Ended | |
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Jun. 30, 2017 |
Jun. 30, 2016 |
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Statement Consolidated Statements Of Shareholders Equity [Abstract] | ||
Change in year, before reclassification from AOCI, net of income tax benefit(expense) | $ (259) | $ (477) |
Income tax benefit (expense) from reclassification of unrealized gains | 3 | 5 |
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit | (256) | (472) |
Cumulative translation adjustment, Change in period, income tax(expense) benefit | (7) | (11) |
Net income | 2,398 | 1,165 |
Pension liability adjustment, Change in period, income tax (expense) benefit | $ 17 | $ 1 |
Consolidated Statements Of Cash Flows - USD ($) $ in Millions |
6 Months Ended | |||||||||||
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Jun. 30, 2017 |
Jun. 30, 2016 |
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Cash flows from operating activities | ||||||||||||
Net income | $ 2,398 | $ 1,165 | ||||||||||
Adjustments to reconcile net income to net cash flows from operating activities | ||||||||||||
Net realized (gains) losses | (94) | 610 | ||||||||||
Amortization of premiums/discounts on fixed maturities | 353 | 376 | ||||||||||
Amortization of UPR related to the Chubb Corp acquisition | 0 | 1,095 | ||||||||||
Deferred income taxes | (112) | 48 | ||||||||||
Unpaid losses and loss expenses | (411) | 330 | ||||||||||
Unearned premiums | 386 | (382) | ||||||||||
Future policy benefits | 134 | 106 | ||||||||||
Insurance and reinsurance balances payable | 278 | 193 | ||||||||||
Accounts payable, accrued expenses, and other liabilities | (603) | 18 | ||||||||||
Income taxes payable | (103) | 67 | ||||||||||
Insurance and reinsurance balances receivable | (575) | (238) | ||||||||||
Reinsurance recoverable on losses and loss expenses | 312 | (17) | ||||||||||
Reinsurance recoverable on policy benefits | (15) | (11) | ||||||||||
Deferred policy acquisition costs | (179) | (1,042) | ||||||||||
Prepaid reinsurance premiums | (139) | 12 | ||||||||||
Other | 10 | (177) | ||||||||||
Net cash flows from operating activities | 1,640 | 2,153 | ||||||||||
Cash flows from investing activities | ||||||||||||
Purchases of fixed maturities available for sale | (12,260) | (17,077) | ||||||||||
Purchases of fixed maturities held to maturity | (212) | (121) | ||||||||||
Purchases of equity securities | (82) | (78) | ||||||||||
Sales of fixed maturities available for sale | 6,873 | 11,868 | ||||||||||
Sales of equity securities | 104 | 932 | ||||||||||
Maturities and redemptions of fixed maturities available for sale | 5,169 | 3,910 | ||||||||||
Maturities and redemptions of fixed maturities held to maturity | 408 | 443 | ||||||||||
Net change in short-term investments | 354 | 11,711 | ||||||||||
Net derivative instruments settlements | (129) | (93) | ||||||||||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 0 | (14,248) | ||||||||||
Other | (121) | 81 | ||||||||||
Net cash flows from (used for) investing activities | 104 | (2,672) | ||||||||||
Cash flows from financing activities | ||||||||||||
Dividends paid on Common Shares | (646) | (530) | ||||||||||
Common Shares repurchased | (475) | 0 | ||||||||||
Repayment of long-term debt | (500) | 0 | ||||||||||
Proceeds from issuance of repurchase agreements | 1,343 | 904 | ||||||||||
Repayment of repurchase agreements | (1,338) | (902) | ||||||||||
Proceeds from share-based compensation plans | 89 | 92 | ||||||||||
Policyholder contract deposits | 209 | 274 | ||||||||||
Policyholder contract withdrawals | (125) | (103) | ||||||||||
Other | 0 | (4) | ||||||||||
Net cash flows used for financing activities | (1,443) | (269) | ||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | 11 | 24 | ||||||||||
Net increase (decrease) in cash | 312 | (764) | ||||||||||
Cash – beginning of period | 985 | [1],[2] | 1,775 | [3] | ||||||||
Cash – end of period | 1,297 | [2],[4] | 1,011 | [3] | ||||||||
Supplemental cash flow information | ||||||||||||
Taxes paid | 510 | 259 | ||||||||||
Interest paid | $ 327 | $ 319 | ||||||||||
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Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Millions |
6 Months Ended | |
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Jun. 30, 2017 |
Jun. 30, 2016 |
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Statement of Cash Flows [Abstract] | ||
Cash Acquired from Acquisition | $ 0 | $ 71 |
General |
6 Months Ended |
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Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General a) Basis of presentation Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Chubb operates through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 10 for additional information. The interim unaudited consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated. The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2016 Form 10-K. b) Goodwill During the six months ended June 30, 2017, Goodwill increased $102 million, reflecting the impact of foreign exchange. c) Debt In February 2017, Chubb INA Holdings Inc.’s $500 million of 5.7 percent senior notes matured and were fully paid. In 2017, we reclassified $300 million of the 5.8 percent senior notes (due to mature in March 2018), and $600 million of the 5.75 percent senior notes (due to mature in May 2018) from Long-term debt to Short-term debt in the Consolidated balance sheets. Effective April 15, 2017, the interest rate on our $1.0 billion of unsecured junior subordinated capital securities converted to a floating rate, equal to the three-month LIBOR plus 2.25 percentage points. Previously, these capital securities carried interest at a rate of 6.375 percent. The current interest rate, at the time of this filing, on these securities is 3.55 percent. The scheduled maturity date for these securities is April 15, 2037. d) Accounting guidance adopted in 2017 Stock Compensation Effective January 2017, we prospectively adopted new guidance on stock compensation which requires recognition of the excess tax benefits or deficiencies of share-based compensation awards to employees through net income rather than through additional paid in capital. The calculation of the excess tax benefits or deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the Consolidated statements of operations. For the three and six months ended June 30, 2017, the excess tax benefit recorded to Income tax expense in the Consolidated statement of operations was $5 million and $30 million, respectively. Additionally, the guidance allowed for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We elected to retain our current accounting for compensation expense using a forfeiture estimation process. e) Accounting guidance not yet adopted Goodwill Impairment In January 2017, the FASB issued updated guidance on goodwill impairment testing that eliminates Step 2 of the goodwill impairment test requiring entities to calculate the implied fair value of goodwill through a hypothetical purchase price allocation. Under the updated guidance, impairment will now be recognized as the amount by which a reporting unit’s carrying value exceeds its fair value. The standard will be effective for us in the first quarter of 2020 on a prospective basis with early adoption permitted. We do not expect the adoption of this guidance to have a material effect on our financial condition and results of operations. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued guidance on the amortization period for purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. Under current guidance, premiums generally are amortized over the contracted life of the security. This guidance is effective for us in the first quarter of 2019 on a modified retrospective basis through a cumulative effect adjustment to beginning retained earnings. Early adoption is permitted. Securities held at a discount do not require an accounting change. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations. Refer to the 2016 Form 10-K for information on other accounting guidance not yet adopted. |
Acquisitions |
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Acquisitions | Acquisition The Chubb Corporation (Chubb Corp) On January 14, 2016, we completed the acquisition of Chubb Corp, a leading provider of middle-market commercial, specialty, surety, and personal insurance for $29.5 billion, comprising $14.3 billion in cash and $15.2 billion in newly-issued stock. In addition, we assumed outstanding equity awards to employees and directors with an attributed value of $323 million. The total consideration, including the assumption of equity awards, was $29.8 billion. We recognized goodwill of $10.5 billion, attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes. Refer to the 2016 Form 10-K for additional information on this acquisition. The consolidated financial statements include the results of Chubb Corp from the acquisition date. The following table summarizes the results of the acquired Chubb Corp operations within our 2016 Consolidated statements of operations for the periods presented:
The following table provides supplemental unaudited pro forma consolidated information for the three and six months ended June 30, 2016, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
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Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments a) Fixed maturities
As discussed in Note 3 c), if a credit loss is incurred on an impaired fixed maturity, an OTTI is considered to have occurred and the portion of the impairment not related to credit losses (non-credit OTTI) is recognized in OCI. Included in the “OTTI Recognized in AOCI” columns above are the cumulative amounts of non-credit OTTI recognized in OCI adjusted for subsequent sales, maturities, and redemptions. OTTI recognized in AOCI does not include the impact of subsequent changes in fair value of the related securities. In periods subsequent to a recognition of OTTI in OCI, changes in the fair value of the related fixed maturities are reflected in Net unrealized appreciation on investments in the Consolidated statements of shareholders’ equity. For both the three and six months ended June 30, 2017, $3 million of net unrealized depreciation related to such securities is included in OCI. For the three and six months ended June 30, 2016, $21 million and $44 million, respectively, of net unrealized appreciation related to such securities is included in OCI. At June 30, 2017 and December 31, 2016, AOCI included cumulative net unrealized appreciation of $7 million and $10 million, respectively, related to securities remaining in the investment portfolio for which a non-credit OTTI was recognized. Mortgage-backed securities (MBS) issued by U.S. government agencies are combined with all other to be announced mortgage-backed securities (TBAs) held (refer to Note 6 c) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 81 percent of the total mortgage-backed securities at both June 30, 2017 and December 31, 2016, are represented by investments in U.S. government agency bonds. The remainder of the mortgage exposure consists of collateralized mortgage obligations and non-government mortgage-backed securities, the majority of which provide a planned structure for principal and interest payments and carry a rating of AAA by the major credit rating agencies. The following table presents fixed maturities by contractual maturity:
Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. b) Equity securities
c) Net realized gains (losses) In accordance with guidance related to the recognition and presentation of OTTI, when an impairment related to a fixed maturity has occurred, OTTI is required to be recorded in Net income if management has the intent to sell the security or it is more likely than not that we will be required to sell the security before the recovery of its amortized cost. Further, in cases where we do not intend to sell the security and it is more likely than not that we will not be required to sell the security, we must evaluate the security to determine the portion of the impairment, if any, related to credit losses. If a credit loss is incurred, an OTTI is considered to have occurred and any portion of the OTTI related to credit losses must be reflected in Net income while the portion of OTTI related to all other factors is recognized in OCI. For fixed maturities held to maturity, OTTI recognized in OCI is accreted from AOCI to the amortized cost of the fixed maturity prospectively over the remaining term of the securities. Each quarter, securities in an unrealized loss position (impaired securities), including fixed maturities, securities lending collateral, equity securities, and other investments, are reviewed to identify impaired securities to be specifically evaluated for a potential OTTI. For all non-fixed maturities, OTTI is evaluated based on the following:
As a general rule, we also consider that equity securities in an unrealized loss position for twelve consecutive months are other than temporarily impaired. For mutual funds included in equity securities in our Consolidated balance sheets, we employ analysis similar to fixed maturities, when applicable. Evaluation of potential credit losses related to fixed maturities We review each fixed maturity in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, we consider credit rating, market price, and issuer-specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which we determine that credit loss is likely are subjected to further analysis to estimate the credit loss recognized in Net income, if any. In general, credit loss recognized in Net income equals the difference between the security’s amortized cost and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security. All significant assumptions used in determining credit losses are subject to change as market conditions evolve. Corporate securities Projected cash flows for corporate securities (principally senior unsecured bonds) are driven primarily by assumptions regarding probability of default and also the timing and amount of recoveries associated with defaults. Chubb developed projected cash flows for corporate securities using market observable data, issuer-specific information, and credit ratings. We use historical default data by Moody’s Investors Service (Moody’s) rating category to calculate a 1-in-100 year probability of default, which results in a default assumption in excess of the historical mean default rate. Consistent with management's approach, Chubb assumed a 32 percent recovery rate (the par value of a defaulted security that will be recovered) across all rating categories rather than using Moody's historical mean recovery rate of 42 percent. We believe that use of a default assumption in excess of the historical mean is conservative in light of current market conditions. For the three and six months ended June 30, 2017, credit losses recognized in Net income for corporate securities were $1 million and $2 million, respectively. For the three and six months ended June 30, 2016, credit losses recognized in Net income for corporate securities were $7 million and $24 million, respectively. Mortgage-backed securities For mortgage-backed securities, credit impairment is assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements that exist in that structure. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including default rates, prepayment rates, and loss severity rates (the par value of a defaulted security that will not be recovered) on foreclosed properties. For the three and six months ended June 30, 2017 and 2016, there were no credit losses recognized in Net income for mortgage-backed securities. The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary”:
The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI:
d) Gross unrealized loss At June 30, 2017, there were 7,924 fixed maturities out of a total of 30,953 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $5 million. There were 67 equity securities out of a total of 320 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $1 million. Fixed maturities in an unrealized loss position at June 30, 2017, comprised both investment grade and below investment grade securities for which fair value declined primarily due to widening credit spreads since the date of purchase. The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
e) Restricted assets Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. Chubb is also required to restrict assets pledged under repurchase agreements, which represent Chubb's agreement to sell securities and repurchase them at a future date for a predetermined price. We also use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We also have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets at June 30, 2017 and December 31, 2016 are investments, primarily fixed maturities, totaling $21.2 billion and $20.1 billion, respectively, and cash of $122 million and $103 million, respectively. The following table presents the components of restricted assets:
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Fair value measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements | Fair value measurements a) Fair value hierarchy Fair value of financial assets and financial liabilities is estimated based on the framework established in the fair value accounting guidance. The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The three levels of the hierarchy are as follows:
interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and
would use in pricing an asset or liability. We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement. Accordingly, transfers between levels within the valuation hierarchy occur when there are significant changes to the inputs, such as increases or decreases in market activity, changes to the availability of current prices, changes to the transparency to underlying inputs, and whether there are significant variances in quoted prices. Transfers in and/or out of any level are assumed to occur at the end of the period. We use pricing services to obtain fair value measurements for the majority of our investment securities. Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate. Based on our understanding of the market inputs used by the pricing services, all applicable investments have been valued in accordance with GAAP. We do not adjust prices obtained from pricing services. The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy. Fixed maturities We use pricing services to estimate fair value measurements for the majority of our fixed maturities. The pricing services use market quotations for fixed maturities that have quoted prices in active markets; such securities are classified within Level 1. For fixed maturities other than U.S. Treasury securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Additional valuation factors that can be taken into account are nominal spreads, dollar basis, and liquidity adjustments. The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements, and sector news. The market inputs used in the pricing evaluation, listed in the approximate order of priority include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each input is dependent on the asset class and the market conditions. Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant. Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market based inputs (i.e., stale pricing), which may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur. The overwhelming majority of fixed maturities are classified within Level 2 because the most significant inputs used in the pricing techniques are observable. For a small number of fixed maturities, we obtain a single broker quote (typically from a market maker). Due to the disclaimers on the quotes that indicate that the price is indicative only, we include these fair value estimates in Level 3. Equity securities Equity securities with active markets are classified within Level 1 as fair values are based on quoted market prices. For equity securities in markets which are less active, fair values are based on market valuations and are classified within Level 2. Equity securities for which pricing is unobservable are classified within Level 3. Short-term investments Short-term investments, which comprise securities due to mature within one year of the date of purchase that are traded in active markets, are classified within Level 1 as fair values are based on quoted market prices. Securities such as commercial paper and discount notes are classified within Level 2 because these securities are typically not actively traded due to their approaching maturity and, as such, their cost approximates fair value. Short-term investments for which pricing is unobservable are classified within Level 3. Other investments Fair values for the majority of Other investments including investments in partially-owned investment companies, investment funds, and limited partnerships are based on their respective net asset values or equivalent (NAV) and are excluded from the fair value hierarchy table below. Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP. These assets comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Other investments also include equity securities classified within Level 1, and fixed maturities, classified within Level 2, held in rabbi trusts maintained by Chubb for deferred compensation plans and are classified within the valuation hierarchy on the same basis as other equity securities and fixed maturities. Other investments for which pricing is unobservable are classified within Level 3. Securities lending collateral The underlying assets included in Securities lending collateral in the Consolidated balance sheets are fixed maturities which are classified in the valuation hierarchy on the same basis as other fixed maturities. Excluded from the valuation hierarchy is the corresponding liability related to Chubb’s obligation to return the collateral plus interest as it is reported at contract value and not fair value in the Consolidated balance sheets. Investment derivative instruments Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps is based on market valuations and is classified within Level 2. Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets. Other derivative instruments We generally maintain positions in other derivative instruments including exchange-traded equity futures contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in reserves for our guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) reinsurance business. Our position in exchange-traded equity futures contracts is classified within Level 1. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. Other derivative instruments based on unobservable inputs are classified within Level 3. Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets. Separate account assets Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. Separate account assets comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Separate account assets also include fixed maturities classified within Level 2 because the most significant inputs used in the pricing techniques are observable. Excluded from the valuation hierarchy are the corresponding liabilities as they are reported at contract value and not fair value in the Consolidated balance sheets. Separate account assets are recorded in Other assets in the Consolidated balance sheets. Guaranteed living benefits The GLB arises from life reinsurance programs covering living benefit guarantees whereby we assume the risk of guaranteed minimum income benefits (GMIB) and guaranteed minimum accumulation benefits (GMAB) associated with variable annuity contracts. GLB’s are recorded in Accounts payable, accrued expenses, and other liabilities and Future policy benefits in the Consolidated balance sheets. For GLB reinsurance, Chubb estimates fair value using an internal valuation model which includes current market information and estimates of policyholder behavior. All of the treaties contain claim limits, which are factored into the valuation model. The fair value depends on a number of factors, including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates and other policyholder behavior, and changes in policyholder mortality. The most significant policyholder behavior assumptions include lapse rates and the GMIB annuitization rates. Assumptions regarding lapse rates and GMIB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable. A lapse rate is the percentage of in-force policies surrendered in a given calendar year. All else equal, as lapse rates increase, ultimate claim payments will decrease. The GMIB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GMIB. All else equal, as GMIB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits. The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established in line with data received from other ceding companies adjusted, as appropriate, with industry estimates. The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities. Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3. During the three months ended June 30, 2017, we updated aspects of our valuation model relating to interest rates. This resulted in a decrease to the fair value of GLB liabilities generating a realized gain of approximately $94 million. During the six months ended June 30, 2017, there were no other material changes to actuarial or behavioral assumptions. For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2016 Form 10-K. Financial instruments measured at fair value on a recurring basis, by valuation hierarchy
There were no transfers of financial instruments between Level 1 and Level 2 for the three and six months ended June 30, 2017 and 2016. Fair value of alternative investments Alternative investments include investment funds, limited partnerships, and partially-owned investment companies measured at fair value using NAV as a practical expedient. The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:
Included in all categories in the above table, except for Investment funds, are investments for which Chubb will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds.
Investment funds Chubb’s investment funds employ various investment strategies such as long/short equity and arbitrage/distressed. Included in this category are investments for which Chubb has the option to redeem at agreed upon value as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investment fund investments may be redeemed monthly, quarterly, semi-annually, or annually. If Chubb wishes to redeem an investment fund investment, it must first determine if the investment fund is still in a lock-up period (a time when Chubb cannot redeem its investment so that the investment fund manager has time to build the portfolio). If the investment fund is no longer in its lock-up period, Chubb must then notify the investment fund manager of its intention to redeem by the notification date prescribed by the subscription agreement. Subsequent to notification, the investment fund can redeem Chubb’s investment within several months of the notification. Notice periods for redemption of the investment funds range between 5 and 120 days. Chubb can redeem its investment funds without consent from the investment fund managers. Level 3 financial instruments The fair values of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) consist of various inputs and assumptions that management makes when determining fair value. Management analyzes changes in fair value measurements classified within Level 3 by comparing pricing and returns of our investments to benchmarks, including month-over-month movements, investment credit spreads, interest rate movements, and credit quality of securities. The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3):
b) Financial instruments disclosed, but not measured, at fair value Chubb uses various financial instruments in the normal course of its business. Our insurance contracts are excluded from fair value of financial instruments accounting guidance, and therefore, are not included in the amounts discussed below. The carrying values of cash, other assets, other liabilities, and other financial instruments not included below approximated their fair values. Investments in partially-owned insurance companies Fair values for investments in partially-owned insurance companies are based on Chubb’s share of the net assets based on the financial statements provided by those companies and are excluded from the valuation hierarchy tables below. Short- and long-term debt, repurchase agreements, and trust preferred securities Where practical, fair values for short-term debt, long-term debt, repurchase agreements, and trust preferred securities are estimated using discounted cash flow calculations based principally on observable inputs including incremental borrowing rates, which reflect Chubb’s credit rating, for similar types of borrowings with maturities consistent with those remaining for the debt being valued. The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
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Unpaid losses and loss expenses Unpaid losses and loss expenses |
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Liability for Claims and Claims Adjustment Expense [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 5. Unpaid losses and loss expenses The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
(1) Net of provision for uncollectible reinsurance. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums of $60 million and $53 million for the six months ended June 30, 2017 and 2016, respectively. Prior Period Development Long-tail lines include lines such as workers' compensation, general liability, and professional liability; while short-tail lines include lines such as most property lines, energy, personal accident, aviation, marine (including associated liability-related exposures) and agriculture. Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate. North America Commercial P&C Insurance 2017 For the three months ended June 30, 2017, net favorable PPD was $131 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:
For the six months ended June 30, 2017, net favorable PPD was $310 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:
2016 For the three months ended June 30, 2016, net favorable PPD was $168 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:
For the six months ended June 30, 2016, net favorable PPD was $346 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:
North America Personal P&C Insurance 2017 For the three and six months ended June 30, 2017, net adverse PPD was $37 million and $34 million, respectively, driven primarily by higher than expected case incurred development in our automobile, recreational marine and homeowners lines, mainly in accident years 2012 through 2016. 2016 For the three and six months ended June 30, 2016, net favorable PPD was $15 million and $18 million, respectively, which were the net result of several underlying favorable and adverse movements, none of which were significant individually or in the aggregate. North America Agricultural Insurance There was no PPD in both the three months ended June 30, 2017 and 2016. For the six months ended June 30, 2017 and 2016, net favorable PPD was $79 million and $41 million, respectively. Actual claim development relates to our Multiple Peril Crop Insurance (MPCI) business and is favorable due to better than expected crop yield results in certain states at the prior year-end period (i.e., 2017 results based on crop yield results at year-end 2016). Overseas General Insurance 2017 For the three months ended June 30, 2017, net favorable PPD was $88 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:
For the six months ended June 30, 2017, net favorable PPD was $76 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:
2016 For the three months ended June 30, 2016, net favorable PPD was $85 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:
For the six months ended June 30, 2016, net favorable PPD was $115 million, due primarily to the same factors experienced for the three months ended June 30, 2016 as described above. Global Reinsurance 2017 For the three months ended June 30, 2017, net favorable PPD was $31 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal change:
For the six months ended June 30, 2017, net favorable PPD was $23 million, which was the net result of several underlying favorable and adverse movements driven by the following principal change:
2016 For the three and six months ended June 30, 2016, net favorable PPD was $47 million and $50 million, respectively, which were the net result of several underlying favorable and adverse movements, driven by the following principal change:
Corporate 2017 For the three and six months ended June 30, 2017, adverse development was $43 million and $53 million, respectively, due principally to development of $35 million on run-off non A&E casualty exposures due to higher than expected loss activity, and unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in the respective periods of $8 million and $18 million, respectively. 2016 For the three and six months ended June 30, 2016, net adverse development was $14 million and $22 million, respectively, due principally to unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in the respective periods. |
Commitments, contingencies, and guarantees |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments, contingencies, and guarantees | Commitments, contingencies, and guarantees a) Derivative instruments Foreign currency management As a global company, Chubb entities transact business in multiple currencies. Our policy is to generally match assets, liabilities, and required capital for each individual jurisdiction in local currency, which would include the use of derivatives discussed below. We do not hedge our net asset non-U.S. dollar capital positions; however, we do consider hedging for planned cross border transactions. Derivative instruments employed Chubb maintains positions in derivative instruments such as futures, options, swaps, and foreign currency forward contracts for which the primary purposes are to manage duration and foreign currency exposure, yield enhancement, or to obtain an exposure to a particular financial market. Chubb also maintains positions in convertible securities that contain embedded derivatives. Investment derivative instruments are recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP), convertible bonds are recorded in Fixed maturities available for sale (FM AFS), and convertible equity securities are recorded in Equity securities (ES) in the Consolidated balance sheets. These are the most numerous and frequent derivative transactions. In addition, Chubb from time to time purchases to be announced mortgage-backed securities (TBAs) as part of its investing activities. Under reinsurance programs covering GLBs, Chubb assumes the risk of GLBs, including GMIB and GMAB, associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder’s account value is less than a guaranteed minimum value. The GLB reinsurance product meets the definition of a derivative instrument. Benefit reserves in respect of GLBs are classified as Future policy benefits (FPB) while the fair value derivative adjustment is classified within AP. Chubb also generally maintains positions in exchange-traded equity futures contracts on equity market indices to limit equity exposure in the GMDB and GLB blocks of business. All derivative instruments are carried at fair value with changes in fair value recorded in Net realized gains (losses) in the Consolidated statements of operations. None of the derivative instruments are designated as hedges for accounting purposes. The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments:
At June 30, 2017 and December 31, 2016, derivative liabilities of $8 million and $10 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement. b) Secured borrowings Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. The securities lending collateral can only be drawn down by Chubb in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the Consolidated balance sheets. Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, Chubb will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that Chubb may not be able to renew outstanding borrowings with a new term or with an existing counterparty due to market conditions including a decrease in demand as well as more restrictive terms from banks due to increased regulatory and capital constraints. Should this condition occur, Chubb may seek alternative borrowing sources or reduce borrowings. Additionally, increased margins and collateral requirements due to market conditions would increase our restricted assets as we are required to provide additional collateral to support the transaction. The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:
At June 30, 2017 and December 31, 2016, our repurchase agreement obligations of $1,408 million and $1,403 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets. The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:
The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
c) Derivative instrument objectives (i) Foreign currency exposure management A foreign currency forward contract (forward) is an agreement between participants to exchange specific foreign currencies at a future date. Chubb uses forwards to minimize the effect of fluctuating foreign currencies as discussed above. (ii) Duration management and market exposure Futures Futures contracts give the holder the right and obligation to participate in market movements, determined by the index or underlying security on which the futures contract is based. Settlement is made daily in cash by an amount equal to the change in value of the futures contract times a multiplier that scales the size of the contract. Exchange-traded futures contracts on money market instruments, notes, and bonds are used in fixed maturity portfolios to more efficiently manage duration, as substitutes for ownership of the money market instruments, bonds, and notes without significantly increasing the risk in the portfolio. Investments in futures contracts may be made only to the extent that there are assets under management not otherwise committed. Exchange-traded equity futures contracts are used to limit exposure to a severe equity market decline, which would cause an increase in expected claims and therefore, an increase in reserves for GMDB and GLB reinsurance business. Options An option contract conveys to the holder the right, but not the obligation, to purchase or sell a specified amount or value of an underlying security at a fixed price. Option contracts are used in the investment portfolio as protection against unexpected shifts in interest rates, which would affect the duration of the fixed maturity portfolio. By using options in the portfolio, the overall interest rate sensitivity of the portfolio can be reduced. Option contracts may also be used as an alternative to futures contracts in the synthetic strategy as described above. The price of an option is influenced by the underlying security, expected volatility, time to expiration, and supply and demand. The credit risk associated with the above derivative financial instruments relates to the potential for non-performance by counterparties. Although non-performance is not anticipated, in order to minimize the risk of loss, management monitors the creditworthiness of its counterparties and obtains collateral. The performance of exchange-traded instruments is guaranteed by the exchange on which they trade. For non-exchange-traded instruments, the counterparties are principally banks which must meet certain criteria according to our investment guidelines. Cross-currency swaps Cross-currency swaps are agreements under which two counterparties exchange interest payments and principal denominated in different currencies at a future date. We use cross-currency swaps to reduce the foreign currency and interest rate risk by converting cash flows back into local currency. We invest in foreign currency denominated investments to improve credit diversification and also to obtain better duration matching to our liabilities that is limited in the local currency market. Other Included within Other are derivatives intended to reduce potential losses which may arise from certain exposures in our insurance business. The economic benefit provided by these derivatives is similar to purchased reinsurance. For example, Chubb may enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices. (iii) Convertible security investments A convertible security is a debt instrument or preferred stock that can be converted into a predetermined amount of the issuer’s equity. The convertible option is an embedded derivative within the host instruments which are classified in the investment portfolio as either available for sale or as an equity security. Chubb purchases convertible securities for their total return and not specifically for the conversion feature. (iv) TBA By acquiring TBAs, we make a commitment to purchase a future issuance of mortgage-backed securities. For the period between purchase of the TBAs and issuance of the underlying security, we account for our position as a derivative in the consolidated financial statements. Chubb purchases TBAs both for their total return and for the flexibility they provide related to our mortgage-backed security strategy. (v) GLB Under the GLB program, as the assuming entity, Chubb is obligated to provide coverage until the expiration or maturity of the underlying deferred annuity contracts or the expiry of the reinsurance treaty. Premiums received under the reinsurance treaties are classified as premium. Expected losses allocated to premiums received are classified as Future policy benefits and valued similar to GMDB reinsurance. Other changes in fair value, principally arising from changes in expected losses allocated to expected future premiums, are classified as Net realized gains (losses). Fair value represents management’s estimate of an exit price and thus, includes a risk margin. We may recognize a realized loss for other changes in fair value due to adverse changes in the capital markets (e.g., declining interest rates and/or declining equity markets) and changes in actual or estimated future policyholder behavior (e.g., increased annuitization or decreased lapse rates) although we expect the business to be profitable. We believe this presentation provides the most meaningful disclosure of changes in the underlying risk within the GLB reinsurance programs for a given reporting period. d) Fixed maturities At June 30, 2017, we have commitments to purchase fixed income securities of $675 million over the next several years. e) Other investments At June 30, 2017, included in Other investments in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.5 billion. In connection with these investments, we have commitments that may require funding of up to $1.9 billion over the next several years. f) Taxation At June 30, 2017, $15 million of unrecognized tax benefits remain outstanding. It is reasonably possible that over the next twelve months, the amount of unrecognized tax benefits may change resulting from the re-evaluation of unrecognized tax benefits arising from examinations of taxing authorities and the closing of tax statute limitations. With few exceptions, Chubb is no longer subject to state and local or non-U.S. income tax examinations for years before 2009. g) Legal proceedings Our insurance subsidiaries are subject to claims litigation involving disputed interpretations of policy coverages and, in some jurisdictions, direct actions by allegedly-injured persons seeking damages from policyholders. These lawsuits, involving claims on policies issued by our subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in our loss and loss expense reserves. In addition to claims litigation, we are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies. This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures. In the opinion of management, our ultimate liability for these matters could be, but we believe is not likely to be, material to our consolidated financial condition and results of operations. |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | Shareholders’ equity All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing consolidated financial statements. Under Swiss corporate law, dividends, including distributions through a reduction in par value (par value reduction) or from legal reserves, must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. At June 30, 2017, our Common Shares had a par value of CHF 24.15 per share. At our May 2016 and 2015 annual general meetings, our shareholders approved an annual dividend for the following year of up to $2.76 per share and $2.68 per share, respectively, which were paid in four quarterly installments of $0.69 per share and $0.67 per share, respectively, at dates determined by the Board of Directors (Board) after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment. At our May 2017 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.84 per share, expected to be paid in four quarterly installments of $0.71 per share after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment. The Board will determine the record and payment dates at which the annual dividend may be paid until the date of the 2018 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion. The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
Common Shares in treasury are used principally for issuance upon the exercise of employee stock options, grants of restricted stock, and purchases under the Employee Stock Purchase Plan (ESPP). At June 30, 2017, 14,408,723 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans. Chubb Limited securities repurchase authorization There was no share repurchase program from January 2016 through October 2016. In November 2016, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares through December 31, 2017. Repurchases of Chubb's Common Shares conducted in a series of open market transactions from January 1, 2017 through August 2, 2017 under the Board authorization are as follows:
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Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | Share-based compensation The Chubb Limited 2016 Long-Term Incentive Plan (the 2016 LTIP) permits grants of incentive and non-qualified stock options; restricted stock and restricted stock units; and performance-based restricted stock awards. The incentive and non-qualified stock options are granted principally at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term and typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 23, 2017, Chubb granted 2,065,620 stock options with a weighted-average grant date fair value of $22.97 each estimated using the Black-Scholes option pricing model. The service-based restricted stock and restricted stock units are generally granted with a 4-year vesting period, based on a graded vesting schedule. Performance-based restricted stock awards granted prior to January 2017 comprised target awards which have four installments that vest annually based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth compared to a defined group of peer companies, and premium awards, which are earned only if tangible book value per share growth over the cumulative 4-year period after the grant of the associated target awards exceeds a higher threshold compared to our peer group. The terms of performance-based restricted stock awards granted beginning in January 2017 were updated to now include a 3-year cliff vesting provision in place of the 4-year graded vesting period. In addition, these awards now include an additional vesting criteria based on the P&C combined ratio compared to a defined group of peer companies as well as an additional vesting provision for premium awards based on total shareholder return (TSR) compared to a defined group of peer companies. Chubb's restricted stock is granted at market close price on the grant date. On February 23, 2017, Chubb granted 1,105,118 service-based restricted stock awards, 326,272 service-based restricted stock units, and 202,251 performance-based stock awards to employees and officers with a grant date fair value of $139.01 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting. |
Postretirement benefits Postretirement benefits |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Employee Benefit Plans [Text Block] | Postretirement benefits The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows:
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Segment information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment information | Segment information Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Corporate primarily includes loss and loss expenses of asbestos and environmental (A&E) run-off liabilities, and the results of our non-insurance companies including Chubb Limited, Chubb Group Management and Holdings Ltd, and Chubb INA Holdings Inc. Our exposure to A&E claims principally arises out of liabilities acquired when we purchased Westchester Specialty in 1998, CIGNA’s P&C business in 1999, and legacy Chubb Corp run-off business in 2016. For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main measures of segment performance. Chubb calculates underwriting income by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate segment income, include net investment income, other (income) expense, and amortization of purchased intangibles. For the North America Agricultural Insurance segment, management includes gains and losses on crop derivatives as a component of underwriting income. For example, for the three months ended June 30, 2017, underwriting income in our North America Agricultural Insurance segment was $23 million. This amount includes $2 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) in the Corporate column below. For the Life Insurance segment, management includes Net investment income and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life Insurance underwriting income. For example, for the three months ended June 30, 2017, Life Insurance underwriting income of $56 million includes Net investment income of $77 million and gains from fair value changes in separate account assets of $16 million. The gains from fair value changes in separate account assets are reported in Other (income) expense in the table below. The following tables present the Statement of Operations by segment:
Underwriting assets are reviewed in total by management for purposes of decision-making. Other than Unpaid losses and loss expenses, Reinsurance recoverables, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments. |
Earnings per share |
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Earnings per share | Earnings per share
Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective periods. |
Information provided in connection with outstanding debt of subsidiaries |
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Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information provided in connection with outstanding debt of subsidiaries | Information provided in connection with outstanding debt of subsidiaries The following tables present condensed consolidating financial information at June 30, 2017 and December 31, 2016, and for the three and six months ended June 30, 2017 and 2016 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). 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 June 30, 2017
Condensed Consolidating Balance Sheet at December 31, 2016
Condensed Consolidating Statements of Operations and Comprehensive Income
Condensed Consolidating Statements of Operations and Comprehensive Income
Condensed Consolidating Statements of Operations and Comprehensive Income
Condensed Consolidating Statements of Operations and Comprehensive Income
Condensed Consolidating Statement of Cash Flows
Condensed Consolidating Statement of Cash Flows
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General (Policies) |
6 Months Ended |
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Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | General a) Basis of presentation Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Chubb operates through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 10 for additional information. The interim unaudited consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated. The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2016 Form 10-K. |
Accounting guidance adopted in 2017 | d) Accounting guidance adopted in 2017 Stock Compensation Effective January 2017, we prospectively adopted new guidance on stock compensation which requires recognition of the excess tax benefits or deficiencies of share-based compensation awards to employees through net income rather than through additional paid in capital. The calculation of the excess tax benefits or deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the Consolidated statements of operations. For the three and six months ended June 30, 2017, the excess tax benefit recorded to Income tax expense in the Consolidated statement of operations was $5 million and $30 million, respectively. Additionally, the guidance allowed for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We elected to retain our current accounting for compensation expense using a forfeiture estimation process. |
Accounting guidance not yet adopted | e) Accounting guidance not yet adopted Goodwill Impairment In January 2017, the FASB issued updated guidance on goodwill impairment testing that eliminates Step 2 of the goodwill impairment test requiring entities to calculate the implied fair value of goodwill through a hypothetical purchase price allocation. Under the updated guidance, impairment will now be recognized as the amount by which a reporting unit’s carrying value exceeds its fair value. The standard will be effective for us in the first quarter of 2020 on a prospective basis with early adoption permitted. We do not expect the adoption of this guidance to have a material effect on our financial condition and results of operations. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued guidance on the amortization period for purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. Under current guidance, premiums generally are amortized over the contracted life of the security. This guidance is effective for us in the first quarter of 2019 on a modified retrospective basis through a cumulative effect adjustment to beginning retained earnings. Early adoption is permitted. Securities held at a discount do not require an accounting change. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations. Refer to the 2016 Form 10-K for information on other accounting guidance not yet adopted. |
Acquisitions Acquisitions (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results of Operations From Date of Business Combination [Table Text Block] | The following table summarizes the results of the acquired Chubb Corp operations within our 2016 Consolidated statements of operations for the periods presented:
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Pro Forma Financial Information for the Chubb Corp Acquisition [Table Text Block] | The following table provides supplemental unaudited pro forma consolidated information for the three and six months ended June 30, 2016, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
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Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Amortized Cost And Fair Value Of HTM Fixed Maturities And Related OTTI Recognized In AOCI |
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Schedule Of Fixed Maturities By Contractual Maturity | The following table presents fixed maturities by contractual maturity:
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Schedule Of Amortized Cost and Fair Value of Available-for-sale Securities and Related OTTI Recognized in AOCI |
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Schedule of Realized Gain (Loss) | The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary”:
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Schedule Of Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which A Portion Of OTTI Was Recognized In OCI | The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI:
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Schedule Of Aggregate Fair Value And Gross Unrealized Loss By Length Of Time The Security Has Continuously Been In An Unrealized Loss Position | The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
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Schedule Of Components Of Restricted Assets | The following table presents the components of restricted assets:
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Fair value measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Measured At Fair Value On A Recurring Basis | Financial instruments measured at fair value on a recurring basis, by valuation hierarchy
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Fair Value And Maximum Future Funding Commitments Related To Investments | The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:
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Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations | The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3):
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3):
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Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value | The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
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Unpaid losses and loss expenses Unpaid losses and loss expenses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Claims and Claims Adjustment Expense [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
(1) Net of provision for uncollectible reinsurance. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums of $60 million and $53 million for the six months ended June 30, 2017 and 2016, respectively. |
Commitments, contingencies, and guarantees (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Locations, Fair Values In An Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments | The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments:
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Transfer of Certain Financial Assets Accounted for as Secured Borrowings | The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:
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Secured Borrowings Securities Lending Table Text Block [Table Text Block] | The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:
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Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations | The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
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Shareholders' equity Shareholders' Equity (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared [Table Text Block] | The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
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Share Repurchase Program [Table Text Block] | Repurchases of Chubb's Common Shares conducted in a series of open market transactions from January 1, 2017 through August 2, 2017 under the Board authorization are as follows:
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Postretirement benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows:
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Segment information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations By Segment | The following tables present the Statement of Operations by segment:
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Earnings per share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Earnings Per Share, Basic And Diluted |
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Information provided in connection with outstanding debt of subsidiaries (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet at June 30, 2017
Condensed Consolidating Balance Sheet at December 31, 2016
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Condensed Consolidating Statement Of Operations and Comprehensive Income | Condensed Consolidating Statements of Operations and Comprehensive Income
Condensed Consolidating Statements of Operations and Comprehensive Income
Condensed Consolidating Statements of Operations and Comprehensive Income
Condensed Consolidating Statements of Operations and Comprehensive Income
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows
Condensed Consolidating Statement of Cash Flows
|
General Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax expense | $ 200 | $ 155 | $ 328 | $ 279 |
Accounting Standards Update 2016-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax expense | $ 5 | $ 30 |
General Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Period Increase (Decrease) | $ 102 |
Acquisitions Acquisitions (narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jan. 14, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Business Acquisition [Line Items] | ||||
Goodwill | $ 15,434 | $ 15,332 | ||
The Chubb Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 29,500 | |||
Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp | 14,300 | |||
Equity Issued in Business Combination, Fair Value Disclosure | 15,200 | |||
Business Combination, Consideration Transferred | 29,800 | |||
Goodwill | 10,500 | |||
Additional Paid-in Capital [Member] | ||||
Business Acquisition [Line Items] | ||||
Attributed Value Equity Awards Assumed in Acquisition | (275) | $ (358) | ||
Additional Paid-in Capital [Member] | The Chubb Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Attributed Value Equity Awards Assumed in Acquisition | $ 323 | $ 0 | $ 323 |
Supplemental Financial Information for Acquisition (Details) - The Chubb Corporation [Member] - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Business Acquisition [Line Items] | ||
Actual Revenue of Chubb Corp since Acquisition Date | $ 2,745 | $ 5,232 |
Actual Net Income of Chubb Corp since Acquisition Date | 326 | 581 |
Pro Forma Total Revenues | 7,915 | 15,237 |
Pro Forma Net Income | $ 712 | $ 1,246 |
Pro Forma Earnings Per Share, Basic | $ 1.52 | $ 2.67 |
Pro Forma Earnings Per Share, Diluted | $ 1.51 | $ 2.65 |
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 697 | $ 706 |
Gross unrealized appreciation | 164 | 129 |
Gross unrealized depreciation | (5) | (21) |
Equity securities, at fair value | $ 856 | $ 814 |
Investments (Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which Portion Of Other-Than-Temporary Impairment Was Recognized In Other Comprehensive Income) (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which Portion Of Other-Than-Temporary Impairment Was Recognized In Other Comprehensive Income [Roll Forward] | ||||
Balance of credit losses related to securities still held – beginning of period | $ 32 | $ 57 | $ 35 | $ 53 |
Additions where no OTTI was previously recorded | 1 | 1 | 1 | 12 |
Additions where an OTTI was previously recorded | 0 | 6 | 1 | 12 |
Reductions for securities sold during the period | (4) | (13) | (8) | (26) |
Balance of credit losses related to securities still held – end of period | $ 29 | $ 51 | $ 29 | $ 51 |
Investments (Schedule Of Components Of Restricted Assets) (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Trust funds | $ 14,938 | $ 13,880 |
Deposits with U.S. regulatory authorities | 2,325 | 2,203 |
Deposits with non-U.S. regulatory authorities | 2,170 | 2,191 |
Assets pledged under repurchase agreements | 1,472 | 1,461 |
Other pledged assets | 371 | 435 |
Total restricted assets | $ 21,276 | $ 20,170 |
Fair value measurements Fair Value Measurements (narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value, Level 1 to Level 2 transfers, Amount | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value, Level 2 to Level 1 Transfers, Amount | 0 | $ 0 | $ 0 | $ 0 |
Realized Gain Losses As A Result of Annuitization Changes | $ 94 | |||
Minimum [Member] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Notice Period For Redemption For Alternative Investments Investment Funds | 5 days | |||
Maximum [Member] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Notice Period For Redemption For Alternative Investments Investment Funds | 120 days |
Fair Value Measurements (Fair Value And Maximum Future Funding Commitments Related To Investments) (Detail) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 1,852 | $ 2,040 |
Fair Value | 3,711 | 3,627 |
Financial [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | 354 | 428 |
Fair Value | $ 576 | $ 548 |
Financial [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 5 years | 5 years |
Financial [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 9 years | 9 years |
Real Assets [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 181 | $ 230 |
Fair Value | $ 622 | $ 536 |
Real Assets [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 3 years | 3 years |
Real Assets [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 7 years | 7 years |
Distressed [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 175 | $ 179 |
Fair Value | $ 350 | $ 485 |
Distressed [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 5 years | 5 years |
Distressed [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 9 years | 9 years |
Private Credit [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 337 | $ 259 |
Fair Value | $ 238 | $ 236 |
Private Credit [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 3 years | 3 years |
Private Credit [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 7 years | 7 years |
Traditional [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 805 | $ 930 |
Fair Value | $ 1,646 | $ 1,550 |
Traditional [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 3 years | 3 years |
Traditional [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 9 years | 9 years |
Vintage [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 14 | |
Fair Value | $ 19 | $ 21 |
Vintage [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 1 year | 1 year |
Vintage [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 2 years | 2 years |
Investment Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 260 | $ 251 |
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) - USD ($) $ in Millions |
6 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
[2] | Dec. 31, 2016 |
Jun. 30, 2016 |
[2],[3] | Mar. 31, 2016 |
[3] | Dec. 31, 2015 |
[2],[3] | ||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||
Fair Value Measurements, Valuation Techniques | [1] | Actuarial model | |||||||||||||||||
Minimum [Member] | |||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate | [1] | 3.00% | |||||||||||||||||
Significant Unobservable Inputs Annuitization Rate | [1] | 0.00% | |||||||||||||||||
Maximum [Member] | |||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate | [1] | 34.00% | |||||||||||||||||
Significant Unobservable Inputs Annuitization Rate | [1] | 78.00% | |||||||||||||||||
Guaranteed Minimum Income Benefit [Member] | |||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 357 | [2] | $ 466 | $ 559 | [2] | $ 971 | $ 839 | $ 609 | |||||||||||
Guaranteed Minimum Income Benefit [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 357 | 559 | |||||||||||||||||
Guaranteed Minimum Income Benefit [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 559 | ||||||||||||||||||
|
Fair Value Measurements (Assets Measured At Fair Value Using Significant Unobservable Inputs) (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Equity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | $ 41 | $ 29 | $ 41 | $ 16 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 1 | (1) | 1 | (1) |
Net Realized Gains/ (Losses), Assets | 0 | 1 | 0 | 1 |
Purchases, Assets | 6 | 10 | 6 | 23 |
Sales, Assets | (9) | (2) | (9) | (2) |
Settlements, Assets | 0 | 0 | 0 | 0 |
Balance-End of Period, Assets | 39 | 37 | 39 | 37 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Short-term Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 21 | 0 | 25 | 0 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Net Realized Gains/ (Losses), Assets | 0 | 0 | 0 | 0 |
Purchases, Assets | 7 | 50 | 14 | 50 |
Sales, Assets | 0 | 0 | 0 | 0 |
Settlements, Assets | (21) | 0 | (32) | 0 |
Balance-End of Period, Assets | 7 | 50 | 7 | 50 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | |
Other Long-term Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 233 | 211 | 225 | 212 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | (1) | 0 | 3 | 0 |
Net Realized Gains/ (Losses), Assets | 0 | 0 | 0 | 0 |
Purchases, Assets | 16 | 8 | 24 | 14 |
Sales, Assets | 0 | 0 | 0 | 0 |
Settlements, Assets | (5) | (3) | (9) | (10) |
Balance-End of Period, Assets | 243 | 216 | 243 | 216 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Available-for-sale Securities [Member] | Foreign Government Debt Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 80 | 62 | 74 | 57 |
Transfers Into Level 3, Asset | 0 | 3 | 0 | 9 |
Transfers out of Level 3, Assets | 0 | 0 | (2) | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 3 | 3 | 2 | 9 |
Net Realized Gains/ (Losses), Assets | 2 | (1) | 1 | (6) |
Purchases, Assets | 19 | 27 | 33 | 32 |
Sales, Assets | (19) | (7) | (22) | (8) |
Settlements, Assets | 0 | 0 | (3) | (4) |
Balance-End of Period, Assets | 85 | 87 | 85 | 87 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | (1) | 0 | (5) |
Available-for-sale Securities [Member] | Corporate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 737 | 261 | 681 | 174 |
Transfers Into Level 3, Asset | 28 | 2 | 57 | 18 |
Transfers out of Level 3, Assets | (13) | (67) | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 9 | (8) | 11 |
Net Realized Gains/ (Losses), Assets | 0 | (2) | (1) | (8) |
Purchases, Assets | 65 | 31 | 221 | 124 |
Sales, Assets | (28) | (16) | (55) | (30) |
Settlements, Assets | (42) | (4) | (81) | (8) |
Balance-End of Period, Assets | 747 | 281 | 747 | 281 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | (7) |
Available-for-sale Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 45 | 48 | 45 | 53 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Net Realized Gains/ (Losses), Assets | 0 | 0 | 0 | 0 |
Purchases, Assets | 0 | 1 | 1 | 1 |
Sales, Assets | 0 | 0 | (1) | (5) |
Settlements, Assets | 0 | 0 | 0 | 0 |
Balance-End of Period, Assets | 45 | 49 | 45 | 49 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Fair value measurements Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||
Guaranteed Minimum Income Benefit [Member] | ||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||||||
Reported liabilities | $ 684 | $ 1,300 | $ 684 | $ 1,300 | $ 774 | $ 853 | $ 1,100 | $ 888 | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||||||
Balance - Beginning of Period, Liabilities | 466 | [1] | 839 | [2] | 559 | [1] | 609 | [1],[2] | ||||||||
Transfers into level 3, liability | 9 | 0 | 9 | 0 | ||||||||||||
Transfers out of Level 3, Liabilities | 0 | 0 | 0 | |||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Net Realized Gains/Losses, Liabilities | (118) | 132 | [2] | (211) | 362 | [2] | ||||||||||
Purchases, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Sales, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Settlements, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Balance - End of Period, Liabilities | [1] | 357 | 971 | [2] | 357 | 971 | [2] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (118) | 132 | (211) | 362 | ||||||||||||
Other Derivative Instruments Fair Value [Member] | ||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||||||
Balance - Beginning of Period, Liabilities | 11 | 10 | 13 | 6 | ||||||||||||
Transfers into level 3, liability | 0 | 0 | 0 | 0 | ||||||||||||
Transfers out of Level 3, Liabilities | (9) | (9) | 0 | |||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Net Realized Gains/Losses, Liabilities | 0 | 0 | (2) | 2 | ||||||||||||
Purchases, Liabilities | 0 | 0 | 0 | 2 | ||||||||||||
Sales, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Settlements, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Balance - End of Period, Liabilities | 2 | 10 | 2 | 10 | ||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ 0 | $ (2) | $ 2 | ||||||||||||
|
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | $ 10,560 | $ 10,670 |
Held-to-maturity Securities | 10,371 | 10,644 |
Repurchase agreements | 1,408 | 1,403 |
Short-term debt | 922 | 500 |
Long-term debt | 11,667 | 12,610 |
Trust preferred securities | 308 | 308 |
Total liabilities | 112,639 | 111,511 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 528 | 555 |
Repurchase agreements | 0 | 0 |
Short-term Debt, Fair Value | 0 | 0 |
Long-term Debt, Fair Value | 0 | 0 |
Trust preferred securities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 10,020 | 10,102 |
Repurchase agreements | 1,408 | 1,403 |
Short-term Debt, Fair Value | 931 | 503 |
Long-term Debt, Fair Value | 12,366 | 12,998 |
Trust preferred securities | 462 | 456 |
Total liabilities | 15,167 | 15,360 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 12 | 13 |
Repurchase agreements | 0 | 0 |
Short-term Debt, Fair Value | 0 | 0 |
Long-term Debt, Fair Value | 0 | 0 |
Trust preferred securities | 0 | 0 |
Total liabilities | 0 | 0 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 528 | 555 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 85 | 106 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Foreign [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Foreign [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 642 | 667 |
Foreign [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Corporate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Corporate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 2,688 | 2,782 |
Corporate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 12 | 13 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 1,304 | 1,428 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 5,301 | 5,119 |
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 10,560 | 10,670 |
Repurchase agreements | 1,408 | 1,403 |
Short-term Debt, Fair Value | 931 | 503 |
Long-term Debt, Fair Value | 12,366 | 12,998 |
Trust preferred securities | 462 | 456 |
Total liabilities | 15,167 | 15,360 |
Estimate of Fair Value Measurement [Member] | U.S. Treasury And Agency [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 613 | 661 |
Estimate of Fair Value Measurement [Member] | Foreign [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 642 | 667 |
Estimate of Fair Value Measurement [Member] | Corporate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 2,700 | 2,795 |
Estimate of Fair Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 1,304 | 1,428 |
Estimate of Fair Value Measurement [Member] | States, Municipalities, And Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 5,301 | 5,119 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 10,371 | 10,644 |
Repurchase agreements | 1,408 | 1,403 |
Short-term debt | 922 | 500 |
Long-term debt | 11,667 | 12,610 |
Trust preferred securities | 308 | 308 |
Total liabilities | 14,305 | 14,821 |
Reported Value Measurement [Member] | U.S. Treasury And Agency [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 602 | 655 |
Reported Value Measurement [Member] | Foreign [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 613 | 640 |
Reported Value Measurement [Member] | Corporate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 2,645 | 2,771 |
Reported Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 1,268 | 1,393 |
Reported Value Measurement [Member] | States, Municipalities, And Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | $ 5,243 | $ 5,185 |
Unpaid losses and loss expenses Unpaid losses and loss expenses (RF Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Jan. 14, 2016 |
|
Unpaid Losses and Loss Expenses [Roll Forward] | ||||
Gross unpaid losses and loss expenses, beginning of year | $ 60,540 | $ 37,303 | ||
Reinsurance Recoverable on unpaid losses, beginning of year | (12,708) | (10,741) | ||
Net unpaid loss, beginning of period | 47,832 | 26,562 | ||
Acquisition of subsidiaries | $ 0 | $ 21,398 | ||
Total, Beginning of year | 47,832 | 47,960 | ||
Current Year Claims and Claims Adjustment Expense | 8,396 | 8,529 | ||
PPD (Favorable) / Adverse | (461) | (601) | ||
Total, Incurred | 7,935 | 7,928 | ||
Net loss and loss expenses paid, Current Year | 2,271 | 1,964 | ||
Net losses and loss expenses Paid, Prior Years | 5,758 | 5,541 | ||
Total, Paid | 8,029 | 7,505 | ||
Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Revaluation And Other | 171 | 40 | ||
Net unpaid Loss, end of period | 47,909 | 48,423 | ||
Reinsurance Recoverables on unpaid losses, end of year | 12,485 | 12,396 | ||
Gross unpaid losses and loss expenses, end of year | 60,394 | 60,819 | ||
prior period development, net adjustments | $ 60 | $ 53 |
Unpaid losses and loss expenses Unpaid losses and loss expenses (narrative details) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | $ (461) | $ (601) | ||
North America Commercial P&C Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | $ (131) | $ (168) | (310) | (346) |
North America Commercial P&C Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (101) | (167) | (200) | (309) |
North America Commercial P&C Insurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (30) | (110) | (37) | |
North America Commercial P&C Insurance [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (83) | (114) | (84) | (114) |
North America Commercial P&C Insurance [Member] | Primary casualty GL [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (24) | |||
North America Commercial P&C Insurance [Member] | construction defects [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 26 | |||
North America Commercial P&C Insurance [Member] | Accident Year 2016 [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (57) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2015 and prior [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (40) | |||
North America Commercial P&C Insurance [Member] | Accident years 2008 - 2013 [Member] | Commercial Multi-peril and General Liability [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (37) | (37) | ||
North America Commercial P&C Insurance [Member] | Accident years 2014 and 2016 [Member] | Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (33) | |||
North America Commercial P&C Insurance [Member] | Accident years 2014 - 2016 [Member] | Commercial Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (29) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2010 and Prior [Member] | Commercial Excess and Umbrella [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (74) | (145) | ||
North America Commercial P&C Insurance [Member] | Accident year 2012 and 2013 [Member] | Professional Malpractice Liability Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (25) | |||
North America Commercial P&C Insurance [Member] | Accident year 2011 and prior [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (59) | |||
North America Commercial P&C Insurance [Member] | Accident year 2015 and 2016 [Member] | Accident and Health Insurance Product Line [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (24) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2015 [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (40) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2015 [Member] | Credit related business [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (45) | |||
North America Commercial P&C Insurance [Member] | Accident year 2007 - 2014 [Member] | Commercial Multi-peril and General Liability [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (50) | (50) | ||
North America Commercial P&C Insurance [Member] | Accident year 2003 [Member] | Professional Malpractice Liability Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (20) | |||
North America Commercial P&C Insurance [Member] | Accident years 2012 and prior [Member] | Professional Malpractice Liability Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (63) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2013 [Member] | Credit related business [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (24) | |||
North America Personal P&C Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 37 | (15) | 34 | (18) |
North America Agricultural Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 0 | 0 | (79) | (41) |
Overseas General Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (88) | (85) | (76) | (115) |
Overseas General Insurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (88) | (84) | (108) | |
Overseas General Insurance [Member] | Energy and Technical Risk Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (32) | |||
Overseas General Insurance [Member] | Accident year 2013 to 2015 [Member] | Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (38) | |||
Overseas General Insurance [Member] | Accident year 2013 to 2015 [Member] | Property and Inland Marine [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (37) | |||
Overseas General Insurance [Member] | Accident years 2014 - 2016 [Member] | Energy and Technical Risk Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (26) | |||
Overseas General Insurance [Member] | Accident years 2014 - 2016 [Member] | Accident and Health Insurance Product Line [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (19) | |||
Overseas General Insurance [Member] | Accident years 2016 and prior [Member] | Casualty [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 32 | |||
Global Reinsurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (31) | (47) | (23) | (50) |
Global Reinsurance [Member] | Casualty & Professional [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (27) | |||
Global Reinsurance [Member] | Accident year 2011 and prior [Member] | Casualty & Professional [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (36) | |||
Global Reinsurance [Member] | Accident year 2011 and prior [Member] | Casualty [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (41) | |||
Global Reinsurance [Member] | Accident Year 2015 [Member] | Auto Liability Excess Lines [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 9 | |||
Corporate Segment [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 43 | $ 14 | 53 | $ 22 |
Corporate Segment [Member] | Discontinued Operations [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 8 | $ 18 | ||
Corporate Segment [Member] | non-A&E run-off [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | $ 35 |
Commitments, Contingencies, And Guarantees (Narrative) (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 675 | |
Derivative liability subject to a master netting agreement | 8 | $ 10 |
Unrecognized tax benefits | 15 | |
Repurchase agreements | 1,408 | $ 1,403 |
Funding commitments relating to limited partnerships and partially-owned investment companies | 1,900 | |
Carrying value of limited partnerships and partially-owned investment companies included in other investments | $ 3,500 |
Commitments, Contingencies, And Guarantees (Balance Sheet Locations, Fair Values In Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments) (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Foreign currency forward contracts | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | $ 2,201 | $ 2,220 | ||||||||
Cross Currency Swap [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | 0 | 0 | ||||||||
Fair Value, Asset | 0 | 0 | ||||||||
Notional Value/Payment Provision | 45 | 95 | ||||||||
Options/Futures contracts on notes and bonds | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 1,376 | 2,344 | ||||||||
Convertibles and Bonds with Warrants Attached [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 7 | 7 | [1] | |||||||
Investment And Embedded Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 14 | 33 | ||||||||
Notional Value/Payment Provision | 3,629 | 4,666 | ||||||||
Single-Stock Future [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | [2] | 1,428 | 1,316 | |||||||
Other Derivatives [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 249 | 214 | ||||||||
Other Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 1,677 | 1,530 | ||||||||
Guaranteed Living Benefits [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | [3] | 1,180 | 1,264 | |||||||
Other Assets [Member] | Foreign currency forward contracts | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 8 | 25 | ||||||||
Other Assets [Member] | Options/Futures contracts on notes and bonds | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 4 | 6 | ||||||||
Other Assets [Member] | Single-Stock Future [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | [2] | 5 | 1 | |||||||
Other Assets [Member] | Other Derivatives [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 4 | 2 | ||||||||
Other Assets [Member] | Other Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 9 | 3 | ||||||||
Other Assets [Member] | Guaranteed Living Benefits [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | [3] | 0 | 0 | |||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Foreign currency forward contracts | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (30) | (50) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Options/Futures contracts on notes and bonds | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (5) | (4) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Convertibles and Bonds with Warrants Attached [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | 0 | 0 | [1] | |||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Investment And Embedded Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (35) | (54) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Single-Stock Future [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | [2] | 0 | 0 | |||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivatives [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (2) | (13) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (2) | (13) | ||||||||
Fixed Maturities Available For Sale [Member] | Convertibles and Bonds with Warrants Attached [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 2 | 2 | [1] | |||||||
Accounts Payable Future Policy Benefits [Member] | Guaranteed Living Benefits [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | [3] | $ (684) | $ (853) | |||||||
|
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 1,545 | $ 1,092 |
Securities lending payable | 1,546 | 1,093 |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowings, Gross, Difference, Amount | (1) | (1) |
Cash and Cash Equivalents [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 1,062 | 423 |
U.S. Treasury And Agency [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 82 | 54 |
Foreign Government Debt [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 263 | 578 |
Corporate [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 1 | 37 |
Collateralized Mortgage Backed Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 60 | 0 |
Equity Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 77 | $ 0 |
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | $ 1,472 | $ 1,461 |
Repurchase agreements | 1,408 | 1,403 |
Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 0 | 1 |
U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 246 | 240 |
Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 1,226 | 1,220 |
Repurchase Agreements [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowings, Gross, Difference, Amount | 64 | 58 |
Maturity 30 to 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 501 | |
Maturity 30 to 90 Days [Member] | Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 0 | |
Maturity 30 to 90 Days [Member] | U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 6 | |
Maturity 30 to 90 Days [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 495 | |
Maturity Less than 30 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 569 | |
Maturity Less than 30 Days [Member] | Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 0 | |
Maturity Less than 30 Days [Member] | U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 230 | |
Maturity Less than 30 Days [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 339 | |
Maturity Greater than 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 971 | 892 |
Maturity Greater than 90 Days [Member] | Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 0 | 1 |
Maturity Greater than 90 Days [Member] | U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 240 | 10 |
Maturity Greater than 90 Days [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | $ 731 | $ 881 |
Commitments, Contingencies, And Guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | $ 63 | $ (206) | $ 90 | $ (490) |
Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (7) | (10) | 7 | (20) |
All Other Futures Contracts And Options [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (9) | (37) | (17) | (71) |
Convertibles and Bonds with Warrants Attached [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | 0 | 0 | 0 | 5 |
Investment And Embedded Derivative Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (16) | (47) | (10) | (86) |
Guaranteed Minimum Income Benefit [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | 118 | (131) | 211 | (359) |
Single-Stock Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (38) | (28) | (112) | (43) |
Other Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (1) | 0 | 1 | (2) |
Guaranteed Living Benefit And Other Derivative Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | $ 79 | $ (159) | $ 100 | $ (404) |
Shareholders' equity Shareholders' equity (Details) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017
$ / shares
SFr / shares
shares
|
Jun. 30, 2017
SFr / shares
shares
|
Jun. 30, 2016
$ / shares
|
Jun. 30, 2016
SFr / shares
|
Jun. 30, 2017
$ / shares
SFr / shares
shares
|
Jun. 30, 2017
SFr / shares
shares
|
Jun. 30, 2016
$ / shares
|
Jun. 30, 2016
SFr / shares
|
May 31, 2017
$ / shares
|
Dec. 31, 2016
SFr / shares
shares
|
Nov. 30, 2016
USD ($)
|
May 31, 2016
$ / shares
|
May 31, 2015
$ / shares
|
|
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Common Shares, par value | SFr / shares | SFr 24.15 | SFr 24.15 | SFr 24.15 | SFr 24.15 | SFr 24.15 | ||||||||
Common Stock, Dividend Rate Declared | (per share) | SFr 0.71 | SFr 0.69 | $ 0.69 | SFr 0.68 | SFr 1.40 | SFr 1.38 | $ 1.36 | SFr 1.34 | |||||
Common Shares in treasury, shares | shares | 14,408,723 | 14,408,723 | 14,408,723 | 14,408,723 | 13,815,148 | ||||||||
Common Stock, Dividend Rate Approved | $ 0.71 | $ 0.69 | $ 0.67 | ||||||||||
Annual dividend per share approved by shareholders | $ 2.84 | $ 2.76 | $ 2.68 | ||||||||||
Nov 2016 Stock Repurchase Plan [Member] | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Authorized amount of share repurchase program | $ | $ 1,000 |
Shareholders' equity Dividends declared (Details) |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2017
$ / shares
|
Jun. 30, 2017
SFr / shares
|
Jun. 30, 2016
$ / shares
|
Jun. 30, 2016
SFr / shares
|
Jun. 30, 2017
$ / shares
|
Jun. 30, 2017
SFr / shares
|
Jun. 30, 2016
$ / shares
|
Jun. 30, 2016
SFr / shares
|
|
Dividends Declared [Abstract] | ||||||||
Common Stock, Dividend Rate Declared | (per share) | $ 0.71 | SFr 0.69 | $ 0.69 | SFr 0.68 | $ 1.40 | SFr 1.38 | $ 1.36 | SFr 1.34 |
Shareholders' equity Share Repurchases (Details) - Nov 2016 Stock Repurchase Plan [Member] - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended |
---|---|---|---|
Aug. 03, 2017 |
Jun. 30, 2017 |
Jun. 30, 2017 |
|
Class of Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 2,381,566 | 3,417,630 | |
Treasury Stock, Value, Acquired, Cost Method | $ 335 | $ 475 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 525 | $ 525 | |
Subsequent Event [Member] | |||
Class of Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 501,872 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 72 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 453 |
Share-Based Compensation (Detail) - $ / shares |
6 Months Ended | |
---|---|---|
Feb. 23, 2017 |
Jun. 30, 2017 |
|
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 3 years | |
Award term period in years | 10 years | |
Stock options granted | 2,065,620 | |
Weighted-average grant date fair value for stock options granted | $ 22.97 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 4 years | |
Restricted stock awards granted to employees and officers of the company | 1,105,118 | |
Grant date fair value of awards except for options granted to employees and officers of the company | $ 139.01 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units awarded to employees and officers of the company | 326,272 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 4 years | |
Restricted stock awards granted to employees and officers of the company | 202,251 |
Postretirement benefits Components of net periodic benefit costs (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 20 | $ 24 | $ 40 | $ 46 |
Interest cost | 33 | 35 | 66 | 70 |
Expected return on plan assets | (58) | (52) | (115) | (99) |
Amortization of net actuarial loss | 1 | 1 | 1 | 2 |
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Curtailments | (8) | (8) | ||
Net periodic (benefit) cost | (12) | 8 | (16) | 19 |
Pension Plan [Member] | UNITED STATES | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 16 | 20 | 32 | 37 |
Interest cost | 26 | 27 | 52 | 54 |
Expected return on plan assets | (48) | (42) | (95) | (79) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Net periodic (benefit) cost | (6) | 5 | (11) | 12 |
Pension Plan [Member] | Non-US [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 4 | 4 | 8 | 9 |
Interest cost | 7 | 8 | 14 | 16 |
Expected return on plan assets | (10) | (10) | (20) | (20) |
Amortization of net actuarial loss | 1 | 1 | 1 | 2 |
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Curtailments | (8) | (8) | ||
Net periodic (benefit) cost | (6) | 3 | (5) | 7 |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 2 | 3 | 2 | 5 |
Interest cost | 0 | 4 | 1 | 9 |
Expected return on plan assets | (1) | (2) | (2) | (4) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (23) | (46) | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Net periodic (benefit) cost | (22) | 5 | (45) | 10 |
Other Postretirement Benefit Plan [Member] | UNITED STATES | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 2 | 1 | 4 |
Interest cost | 0 | 4 | 1 | 9 |
Expected return on plan assets | (1) | (2) | (2) | (4) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (23) | (46) | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Net periodic (benefit) cost | (23) | 4 | (46) | 9 |
Other Postretirement Benefit Plan [Member] | Non-US [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 0 | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Net periodic (benefit) cost | $ 1 | $ 1 | $ 1 | $ 1 |
Segment information Segment Information (narrative Detail (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting Information [Line Items] | ||||
Derivative, (Gain) Loss on Derivative, Net | $ (63) | $ 206 | $ (90) | $ 490 |
Net investment income | 770 | 708 | 1,515 | 1,382 |
North America Agricultural Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Income Loss Including Gains Losses On Crop Derivatives | 23 | |||
Derivative, (Gain) Loss on Derivative, Net | 2 | |||
Net investment income | 6 | 5 | 12 | 10 |
Segment Life [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net investment income | 77 | $ 69 | $ 152 | $ 136 |
Management Underwriting Income (Loss) | 56 | |||
Gains Losses On Fair Value Changes In Separate Account Assets | $ 16 |
Segment Information (Operations By Segment) (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting Information [Line Items] | ||||
Net premiums written | $ 7,581 | $ 7,639 | $ 14,291 | $ 13,634 |
Net premiums earned | 7,237 | 7,405 | 14,009 | 14,002 |
Losses and loss expenses | 4,146 | 4,254 | 7,935 | 7,928 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs | 1,449 | 1,560 | 2,846 | 2,973 |
Administrative expenses | 706 | 829 | 1,382 | 1,601 |
Underwriting income (loss) | 773 | 616 | 1,515 | 1,228 |
Net investment income | 770 | 708 | 1,515 | 1,382 |
Other (income) expense | (145) | (29) | (215) | (1) |
Amortization of purchased intangibles | 65 | 5 | 129 | 12 |
Segment Income (loss) | 1,623 | 1,348 | 3,116 | 2,599 |
Net realized gains (losses) including OTTI | 101 | (216) | 94 | (610) |
Interest expense | 147 | 153 | 301 | 299 |
Chubb integration expenses | 72 | 98 | 183 | 246 |
Income tax expense | 200 | 155 | 328 | 279 |
Net income | 1,305 | 726 | 2,398 | 1,165 |
North America Commercial P&C Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 3,204 | 3,245 | 5,946 | 5,547 |
Net premiums earned | 3,099 | 3,148 | 6,140 | 6,044 |
Losses and loss expenses | 1,936 | 1,971 | 3,796 | 3,718 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 464 | 545 | 951 | 1,027 |
Administrative expenses | 241 | 299 | 472 | 565 |
Underwriting income (loss) | 458 | 333 | 921 | 734 |
Net investment income | 490 | 468 | 968 | 894 |
Other (income) expense | (4) | (9) | 0 | (9) |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Segment Income (loss) | 952 | 810 | 1,889 | 1,637 |
North America Personal P&C Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 1,255 | 1,231 | 2,239 | 2,102 |
Net premiums earned | 1,093 | 1,140 | 2,179 | 2,164 |
Losses and loss expenses | 683 | 661 | 1,316 | 1,322 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 230 | 269 | 447 | 518 |
Administrative expenses | 66 | 98 | 131 | 186 |
Underwriting income (loss) | 114 | 112 | 285 | 138 |
Net investment income | 56 | 55 | 111 | 102 |
Other (income) expense | 1 | 3 | 2 | 4 |
Amortization of purchased intangibles | 5 | 4 | 8 | 12 |
Segment Income (loss) | 164 | 160 | 386 | 224 |
North America Agricultural Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 403 | 375 | 464 | 439 |
Net premiums earned | 344 | 327 | 358 | 350 |
Losses and loss expenses | 290 | 284 | 217 | 254 |
Policy benefits | 0 | 0 | ||
Policy acquisition costs | 27 | 25 | 26 | 29 |
Administrative expenses | 2 | 2 | (3) | (2) |
Underwriting income (loss) | 25 | 16 | 118 | 69 |
Net investment income | 6 | 5 | 12 | 10 |
Other (income) expense | 1 | 0 | 1 | 0 |
Amortization of purchased intangibles | 7 | 8 | 14 | 15 |
Segment Income (loss) | 23 | 13 | 115 | 64 |
Overseas General Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 2,006 | 2,031 | 4,206 | 4,072 |
Net premiums earned | 2,018 | 2,093 | 3,954 | 4,048 |
Losses and loss expenses | 964 | 1,089 | 2,035 | 2,110 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 555 | 537 | 1,084 | 1,040 |
Administrative expenses | 243 | 277 | 488 | 540 |
Underwriting income (loss) | 256 | 190 | 347 | 358 |
Net investment income | 148 | 147 | 296 | 293 |
Other (income) expense | (3) | (5) | (4) | (10) |
Amortization of purchased intangibles | 11 | 13 | 22 | 24 |
Segment Income (loss) | 396 | 329 | 625 | 637 |
Global Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 190 | 230 | 389 | 431 |
Net premiums earned | 168 | 185 | 357 | 387 |
Losses and loss expenses | 46 | 87 | 140 | 176 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 43 | 47 | 94 | 100 |
Administrative expenses | 12 | 14 | 22 | 28 |
Underwriting income (loss) | 67 | 37 | 101 | 83 |
Net investment income | 65 | 65 | 127 | 132 |
Other (income) expense | 1 | (2) | 1 | (3) |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Segment Income (loss) | 131 | 104 | 227 | 218 |
Life Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 523 | 527 | 1,047 | 1,043 |
Net premiums earned | 515 | 512 | 1,021 | 1,009 |
Losses and loss expenses | 182 | 147 | 375 | 324 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs | 130 | 137 | 244 | 259 |
Administrative expenses | 77 | 77 | 149 | 149 |
Underwriting income (loss) | (37) | 5 | (78) | 5 |
Net investment income | 77 | 69 | 152 | 136 |
Other (income) expense | (12) | 0 | (41) | 6 |
Amortization of purchased intangibles | 0 | 0 | 1 | 1 |
Segment Income (loss) | 52 | 74 | 114 | 134 |
Corporate And Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | |
Net premiums earned | 0 | 0 | 0 | |
Losses and loss expenses | 45 | 15 | 56 | 24 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 0 | 0 | 0 | 0 |
Administrative expenses | 65 | 62 | 123 | 135 |
Underwriting income (loss) | (110) | (77) | (179) | (159) |
Net investment income | (72) | (101) | (151) | (185) |
Other (income) expense | (129) | (16) | (174) | 11 |
Amortization of purchased intangibles | 42 | (20) | 84 | (40) |
Segment Income (loss) | (95) | (142) | (240) | (315) |
Net realized gains (losses) including OTTI | 101 | (216) | 94 | (610) |
Interest expense | 147 | 153 | 301 | 299 |
Chubb integration expenses | 72 | 98 | 183 | 246 |
Income tax expense | 200 | 155 | 328 | 279 |
Net income | $ (413) | $ (764) | $ (958) | $ (1,749) |
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 1,305 | $ 726 | $ 2,398 | $ 1,165 |
Weighted-average shares outstanding | 467,981,077 | 467,701,328 | 468,244,458 | 457,102,802 |
Share-based compensation plans | 3,872,860 | 3,455,969 | 3,900,678 | 3,379,559 |
Weighted-average shares outstanding and assumed conversions | 471,853,937 | 471,157,297 | 472,145,136 | 460,482,361 |
Basic earnings per share (US$ per share) | $ 2.79 | $ 1.55 | $ 5.12 | $ 2.55 |
Diluted earnings per share (US$ per share) | $ 2.77 | $ 1.54 | $ 5.08 | $ 2.53 |
Potential anti-dilutive share conversions | 2,066,578 | 2,103,281 | 1,467,556 | 2,056,018 |
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details) |
Jun. 30, 2017 |
---|---|
Debt Instrument [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||
Investments | $ 100,208 | $ 99,094 | ||||||||||||||
Cash | 1,297 | [1],[2] | 985 | [1],[3] | $ 1,011 | [4] | $ 1,775 | [4] | ||||||||
Insurance and reinsurance balances receivable | 9,662 | 8,970 | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | 13,358 | 13,577 | ||||||||||||||
Reinsurance recoverable on policy benefits | 198 | 182 | ||||||||||||||
Value of business acquired | 337 | 355 | ||||||||||||||
Goodwill and other intangible assets | 22,013 | 22,095 | ||||||||||||||
Investments in subsidiaries | 0 | 0 | ||||||||||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||||||||||
Other assets | 15,915 | 14,528 | ||||||||||||||
Total assets | 162,988 | 159,786 | ||||||||||||||
Unpaid losses and loss expenses | 60,394 | 60,540 | 60,819 | 37,303 | ||||||||||||
Unearned premiums | 15,289 | 14,779 | ||||||||||||||
Future policy benefits | 5,190 | 5,036 | ||||||||||||||
Due to subsidiaries and affiliates, net | 0 | 0 | ||||||||||||||
Affiliated notional cash pooling programs | 0 | 0 | ||||||||||||||
Repurchase agreements | 1,408 | 1,403 | ||||||||||||||
Short-term debt | 922 | 500 | ||||||||||||||
Long-term debt | 11,667 | 12,610 | ||||||||||||||
Trust preferred securities | 308 | 308 | ||||||||||||||
Other liabilities | 17,461 | 16,335 | ||||||||||||||
Total liabilities | 112,639 | 111,511 | ||||||||||||||
Total shareholders' equity | 50,349 | 48,275 | 47,226 | |||||||||||||
Total liabilities and shareholders’ equity | 162,988 | 159,786 | ||||||||||||||
Chubb Limited (Parent Guarantor) | ||||||||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||
Investments | 23 | 27 | ||||||||||||||
Cash | 0 | [1],[2] | 1 | [1],[3] | 1 | [4] | 1 | [4] | ||||||||
Insurance and reinsurance balances receivable | 0 | 0 | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | 0 | 0 | ||||||||||||||
Reinsurance recoverable on policy benefits | 0 | 0 | ||||||||||||||
Value of business acquired | 0 | 0 | ||||||||||||||
Goodwill and other intangible assets | 0 | 0 | ||||||||||||||
Investments in subsidiaries | 40,553 | 38,408 | ||||||||||||||
Due from subsidiaries and affiliates, net | 10,251 | 10,482 | ||||||||||||||
Other assets | 141 | 3 | ||||||||||||||
Total assets | 50,968 | 48,921 | ||||||||||||||
Unpaid losses and loss expenses | 0 | 0 | ||||||||||||||
Unearned premiums | 0 | 0 | ||||||||||||||
Future policy benefits | 0 | 0 | ||||||||||||||
Due to subsidiaries and affiliates, net | 0 | 0 | ||||||||||||||
Affiliated notional cash pooling programs | 193 | [2] | 363 | [3] | ||||||||||||
Repurchase agreements | 0 | 0 | ||||||||||||||
Short-term debt | 0 | 0 | ||||||||||||||
Long-term debt | 0 | 0 | ||||||||||||||
Trust preferred securities | 0 | 0 | ||||||||||||||
Other liabilities | 426 | 283 | ||||||||||||||
Total liabilities | 619 | 646 | ||||||||||||||
Total shareholders' equity | 50,349 | 48,275 | ||||||||||||||
Total liabilities and shareholders’ equity | 50,968 | 48,921 | ||||||||||||||
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||||||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||
Investments | 305 | 485 | ||||||||||||||
Cash | 167 | [1],[2] | 1 | [1],[3] | 207 | [4] | 2 | [4] | ||||||||
Insurance and reinsurance balances receivable | 0 | 0 | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | 0 | 0 | ||||||||||||||
Reinsurance recoverable on policy benefits | 0 | 0 | ||||||||||||||
Value of business acquired | 0 | 0 | ||||||||||||||
Goodwill and other intangible assets | 0 | 0 | ||||||||||||||
Investments in subsidiaries | 49,982 | 49,509 | ||||||||||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||||||||||
Other assets | 289 | 436 | ||||||||||||||
Total assets | 50,743 | 50,431 | ||||||||||||||
Unpaid losses and loss expenses | 0 | 0 | ||||||||||||||
Unearned premiums | 0 | 0 | ||||||||||||||
Future policy benefits | 0 | 0 | ||||||||||||||
Due to subsidiaries and affiliates, net | 9,939 | 10,209 | ||||||||||||||
Affiliated notional cash pooling programs | 0 | [2] | 619 | [3] | ||||||||||||
Repurchase agreements | 0 | 0 | ||||||||||||||
Short-term debt | 922 | 500 | ||||||||||||||
Long-term debt | 11,656 | 12,599 | ||||||||||||||
Trust preferred securities | 308 | 308 | ||||||||||||||
Other liabilities | 1,582 | 1,582 | ||||||||||||||
Total liabilities | 24,407 | 25,817 | ||||||||||||||
Total shareholders' equity | 26,336 | 24,614 | ||||||||||||||
Total liabilities and shareholders’ equity | 50,743 | 50,431 | ||||||||||||||
Other Chubb Limited Subsidiaries | ||||||||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||
Investments | 99,880 | 98,582 | ||||||||||||||
Cash | 1,323 | [1],[2] | 1,965 | [1],[3] | 1,825 | [4] | 2,743 | [4] | ||||||||
Insurance and reinsurance balances receivable | 11,699 | 10,498 | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | 24,118 | 24,496 | ||||||||||||||
Reinsurance recoverable on policy benefits | 1,205 | 1,153 | ||||||||||||||
Value of business acquired | 337 | 355 | ||||||||||||||
Goodwill and other intangible assets | 22,013 | 22,095 | ||||||||||||||
Investments in subsidiaries | 0 | 0 | ||||||||||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||||||||||
Other assets | 19,527 | 18,442 | ||||||||||||||
Total assets | 180,102 | 177,586 | ||||||||||||||
Unpaid losses and loss expenses | 70,460 | 70,683 | ||||||||||||||
Unearned premiums | 18,876 | 18,538 | ||||||||||||||
Future policy benefits | 6,197 | 6,007 | ||||||||||||||
Due to subsidiaries and affiliates, net | 312 | 273 | ||||||||||||||
Affiliated notional cash pooling programs | 0 | [2] | 0 | [3] | ||||||||||||
Repurchase agreements | 1,408 | 1,403 | ||||||||||||||
Short-term debt | 0 | 0 | ||||||||||||||
Long-term debt | 11 | 11 | ||||||||||||||
Trust preferred securities | 0 | 0 | ||||||||||||||
Other liabilities | 18,639 | 17,368 | ||||||||||||||
Total liabilities | 115,903 | 114,283 | ||||||||||||||
Total shareholders' equity | 64,199 | 63,303 | ||||||||||||||
Total liabilities and shareholders’ equity | 180,102 | 177,586 | ||||||||||||||
Consolidating Adjustments and Eliminations | ||||||||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||
Investments | 0 | 0 | ||||||||||||||
Cash | (193) | [1],[2] | (982) | [1],[3] | $ (1,022) | [4] | $ (971) | [4] | ||||||||
Insurance and reinsurance balances receivable | (2,037) | (1,528) | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | (10,760) | (10,919) | ||||||||||||||
Reinsurance recoverable on policy benefits | (1,007) | (971) | ||||||||||||||
Value of business acquired | 0 | 0 | ||||||||||||||
Goodwill and other intangible assets | 0 | 0 | ||||||||||||||
Investments in subsidiaries | (90,535) | (87,917) | ||||||||||||||
Due from subsidiaries and affiliates, net | (10,251) | (10,482) | ||||||||||||||
Other assets | (4,042) | (4,353) | ||||||||||||||
Total assets | (118,825) | (117,152) | ||||||||||||||
Unpaid losses and loss expenses | (10,066) | (10,143) | ||||||||||||||
Unearned premiums | (3,587) | (3,759) | ||||||||||||||
Future policy benefits | (1,007) | (971) | ||||||||||||||
Due to subsidiaries and affiliates, net | (10,251) | (10,482) | ||||||||||||||
Affiliated notional cash pooling programs | (193) | [2] | (982) | [3] | ||||||||||||
Repurchase agreements | 0 | 0 | ||||||||||||||
Short-term debt | 0 | 0 | ||||||||||||||
Long-term debt | 0 | 0 | ||||||||||||||
Trust preferred securities | 0 | 0 | ||||||||||||||
Other liabilities | (3,186) | (2,898) | ||||||||||||||
Total liabilities | (28,290) | (29,235) | ||||||||||||||
Total shareholders' equity | (90,535) | (87,917) | ||||||||||||||
Total liabilities and shareholders’ equity | $ (118,825) | $ (117,152) | ||||||||||||||
|
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | $ 7,581 | $ 7,639 | $ 14,291 | $ 13,634 |
Net premiums earned | 7,237 | 7,405 | 14,009 | 14,002 |
Net investment income | 770 | 708 | 1,515 | 1,382 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net realized gains (losses) including OTTI | 101 | (216) | 94 | (610) |
Losses and loss expenses | 4,146 | 4,254 | 7,935 | 7,928 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs and administrative expenses | 2,155 | 2,389 | 4,228 | 4,574 |
Interest (income) expense | 147 | 153 | 301 | 299 |
Other (income) expense | (145) | (29) | (215) | (1) |
Amortization of purchased intangibles | 65 | 5 | 129 | 12 |
Chubb integration expenses | 72 | 98 | 183 | 246 |
Income tax expense | 200 | 155 | 328 | 279 |
Net income | 1,305 | 726 | 2,398 | 1,165 |
Comprehensive income (loss) | 1,675 | 1,540 | 3,082 | 3,081 |
Consolidating Adjustments and Eliminations | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (1,918) | (1,213) | (3,646) | (2,094) |
Net realized gains (losses) including OTTI | 0 | 0 | 0 | 0 |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | 0 | 0 | 0 | 0 |
Interest (income) expense | 0 | 0 | 0 | 0 |
Other (income) expense | 0 | 0 | 0 | 0 |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Chubb integration expenses | 0 | 0 | 0 | |
Income tax expense | 0 | 0 | 0 | 0 |
Net income | (1,918) | (1,213) | (3,646) | (2,094) |
Comprehensive income (loss) | (2,676) | (2,685) | (5,005) | (5,462) |
Chubb Limited (Parent Guarantor) | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 2 | 1 | 2 | 2 |
Equity in earnings of subsidiaries | 1,253 | 664 | 2,280 | 1,039 |
Net realized gains (losses) including OTTI | (2) | (1) | (2) | (1) |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | 18 | 16 | 36 | 33 |
Interest (income) expense | (84) | (93) | (168) | (173) |
Other (income) expense | 4 | (4) | (2) | (13) |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Chubb integration expenses | 6 | 14 | 6 | 17 |
Income tax expense | 4 | 5 | 10 | 11 |
Net income | 1,305 | 726 | 2,398 | 1,165 |
Comprehensive income (loss) | 1,675 | 1,540 | 3,082 | 3,081 |
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 4 | 3 | 7 | 7 |
Equity in earnings of subsidiaries | 665 | 549 | 1,366 | 1,055 |
Net realized gains (losses) including OTTI | (1) | (1) | (14) | (1) |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | (2) | 96 | 12 | 132 |
Interest (income) expense | 212 | 233 | 433 | 448 |
Other (income) expense | 10 | 10 | 25 | 20 |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Chubb integration expenses | 4 | (97) | 53 | 40 |
Income tax expense | (87) | (37) | (199) | (187) |
Net income | 531 | 346 | 1,035 | 608 |
Comprehensive income (loss) | 920 | 1,004 | 1,711 | 2,060 |
Other Chubb Limited Subsidiaries | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | 7,581 | 7,639 | 14,291 | 13,634 |
Net premiums earned | 7,237 | 7,405 | 14,009 | 14,002 |
Net investment income | 764 | 704 | 1,506 | 1,373 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net realized gains (losses) including OTTI | 104 | (214) | 110 | (608) |
Losses and loss expenses | 4,146 | 4,254 | 7,935 | 7,928 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs and administrative expenses | 2,139 | 2,277 | 4,180 | 4,409 |
Interest (income) expense | 19 | 13 | 36 | 24 |
Other (income) expense | (159) | (35) | (238) | (8) |
Amortization of purchased intangibles | 65 | 5 | 129 | 12 |
Chubb integration expenses | 62 | 181 | 124 | 189 |
Income tax expense | 283 | 187 | 517 | 455 |
Net income | 1,387 | 867 | 2,611 | 1,486 |
Comprehensive income (loss) | $ 1,756 | $ 1,681 | $ 3,294 | $ 3,402 |
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) - USD ($) $ in Millions |
6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||
Net cash flows from operating activities | $ 1,640 | $ 2,153 | ||||||||||
Purchases of fixed maturities available for sale | (12,260) | (17,077) | ||||||||||
Purchases of fixed maturities held to maturity | (212) | (121) | ||||||||||
Purchases of equity securities | (82) | (78) | ||||||||||
Sales of fixed maturities available for sale | 6,873 | 11,868 | ||||||||||
Sales of equity securities | 104 | 932 | ||||||||||
Maturities and redemptions of fixed maturities available for sale | 5,169 | 3,910 | ||||||||||
Maturities and redemptions of fixed maturities held to maturity | 408 | 443 | ||||||||||
Net change in short-term investments | 354 | 11,711 | ||||||||||
Net derivative instruments settlements | (129) | (93) | ||||||||||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 0 | (14,248) | ||||||||||
Capital contribution | 0 | |||||||||||
Other | (121) | 81 | ||||||||||
Net cash flows from (used for) investing activities | 104 | (2,672) | ||||||||||
Dividends paid on Common Shares | (646) | (530) | ||||||||||
Common Shares repurchased | (475) | 0 | ||||||||||
Repayment of long-term debt | (500) | 0 | ||||||||||
Proceeds from issuance of repurchase agreements | 1,343 | 904 | ||||||||||
Repayments of repurchase agreements | (1,338) | (902) | ||||||||||
Proceeds from share-based compensation plans | 89 | 92 | ||||||||||
Dividend to Parent Company | 0 | 0 | ||||||||||
Advances (to) from affiliates | 0 | 0 | ||||||||||
Capital contribution | 0 | |||||||||||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | 0 | ||||||||||
Policyholder contract deposits | 209 | 274 | ||||||||||
Policyholder contract withdrawals | (125) | (103) | ||||||||||
Other | 0 | (4) | ||||||||||
Net cash flows used for financing activities | (1,443) | (269) | ||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | 11 | 24 | ||||||||||
Net increase (decrease) in cash | 312 | (764) | ||||||||||
Cash – beginning of period | 985 | [1],[2] | 1,775 | [3] | ||||||||
Cash – end of period | 1,297 | [2],[4] | 1,011 | [3] | ||||||||
Chubb Limited (Parent Guarantor) | ||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||
Net cash flows from operating activities | 551 | 3,213 | ||||||||||
Purchases of fixed maturities available for sale | 0 | 0 | ||||||||||
Purchases of fixed maturities held to maturity | 0 | 0 | ||||||||||
Purchases of equity securities | 0 | 0 | ||||||||||
Sales of fixed maturities available for sale | 0 | 0 | ||||||||||
Sales of equity securities | 0 | 0 | ||||||||||
Maturities and redemptions of fixed maturities available for sale | 0 | 0 | ||||||||||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||||||||||
Net change in short-term investments | 0 | 0 | ||||||||||
Net derivative instruments settlements | 0 | 0 | ||||||||||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 0 | |||||||||||
Capital contribution | (2,330) | |||||||||||
Other | 0 | 0 | ||||||||||
Net cash flows from (used for) investing activities | 0 | (2,330) | ||||||||||
Dividends paid on Common Shares | (646) | (530) | ||||||||||
Common Shares repurchased | 0 | |||||||||||
Repayment of long-term debt | 0 | |||||||||||
Proceeds from issuance of repurchase agreements | 0 | 0 | ||||||||||
Repayments of repurchase agreements | 0 | 0 | ||||||||||
Proceeds from share-based compensation plans | 0 | 0 | ||||||||||
Dividend to Parent Company | 0 | 0 | ||||||||||
Advances (to) from affiliates | 264 | (247) | ||||||||||
Capital contribution | 0 | |||||||||||
Net proceeds from (payments to) affiliated notional cash pooling program | (170) | [2] | (106) | [3] | ||||||||
Policyholder contract deposits | 0 | 0 | ||||||||||
Policyholder contract withdrawals | 0 | 0 | ||||||||||
Other | 0 | |||||||||||
Net cash flows used for financing activities | (552) | (883) | ||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||||||||||
Net increase (decrease) in cash | (1) | 0 | ||||||||||
Cash – beginning of period | 1 | [1],[2] | 1 | [3] | ||||||||
Cash – end of period | 0 | [2],[4] | 1 | [3] | ||||||||
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||
Net cash flows from operating activities | 1,444 | 4,050 | ||||||||||
Purchases of fixed maturities available for sale | (5) | (83) | ||||||||||
Purchases of fixed maturities held to maturity | 0 | 0 | ||||||||||
Purchases of equity securities | 0 | 0 | ||||||||||
Sales of fixed maturities available for sale | 0 | 0 | ||||||||||
Sales of equity securities | 0 | 0 | ||||||||||
Maturities and redemptions of fixed maturities available for sale | 13 | 0 | ||||||||||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||||||||||
Net change in short-term investments | 166 | 7,829 | ||||||||||
Net derivative instruments settlements | (7) | (10) | ||||||||||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | (14,282) | |||||||||||
Capital contribution | 0 | |||||||||||
Other | 2 | (3) | ||||||||||
Net cash flows from (used for) investing activities | 169 | (6,549) | ||||||||||
Dividends paid on Common Shares | 0 | 0 | ||||||||||
Common Shares repurchased | 0 | |||||||||||
Repayment of long-term debt | (500) | |||||||||||
Proceeds from issuance of repurchase agreements | 0 | 0 | ||||||||||
Repayments of repurchase agreements | 0 | 0 | ||||||||||
Proceeds from share-based compensation plans | 0 | 0 | ||||||||||
Dividend to Parent Company | 0 | 0 | ||||||||||
Advances (to) from affiliates | (328) | 221 | ||||||||||
Capital contribution | 2,330 | |||||||||||
Net proceeds from (payments to) affiliated notional cash pooling program | (619) | [2] | 157 | [3] | ||||||||
Policyholder contract deposits | 0 | 0 | ||||||||||
Policyholder contract withdrawals | 0 | 0 | ||||||||||
Other | (4) | |||||||||||
Net cash flows used for financing activities | (1,447) | 2,704 | ||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||||||||||
Net increase (decrease) in cash | 166 | 205 | ||||||||||
Cash – beginning of period | 1 | [1],[2] | 2 | [3] | ||||||||
Cash – end of period | 167 | [2],[4] | 207 | [3] | ||||||||
Other Chubb Limited Subsidiaries | ||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||
Net cash flows from operating activities | 1,686 | 2,262 | ||||||||||
Purchases of fixed maturities available for sale | (12,255) | (16,994) | ||||||||||
Purchases of fixed maturities held to maturity | (212) | (121) | ||||||||||
Purchases of equity securities | (82) | (78) | ||||||||||
Sales of fixed maturities available for sale | 6,873 | 11,868 | ||||||||||
Sales of equity securities | 104 | 932 | ||||||||||
Maturities and redemptions of fixed maturities available for sale | 5,156 | 3,910 | ||||||||||
Maturities and redemptions of fixed maturities held to maturity | 408 | 443 | ||||||||||
Net change in short-term investments | 188 | 3,882 | ||||||||||
Net derivative instruments settlements | (122) | (83) | ||||||||||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 34 | |||||||||||
Capital contribution | (2,330) | |||||||||||
Other | (123) | 84 | ||||||||||
Net cash flows from (used for) investing activities | (65) | 1,547 | ||||||||||
Dividends paid on Common Shares | 0 | 0 | ||||||||||
Common Shares repurchased | (475) | |||||||||||
Repayment of long-term debt | 0 | |||||||||||
Proceeds from issuance of repurchase agreements | 1,343 | 904 | ||||||||||
Repayments of repurchase agreements | (1,338) | (902) | ||||||||||
Proceeds from share-based compensation plans | 89 | 92 | ||||||||||
Dividend to Parent Company | (2,041) | (7,372) | ||||||||||
Advances (to) from affiliates | 64 | 26 | ||||||||||
Capital contribution | 2,330 | |||||||||||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | [2] | 0 | [3] | ||||||||
Policyholder contract deposits | 209 | 274 | ||||||||||
Policyholder contract withdrawals | (125) | (103) | ||||||||||
Other | 0 | |||||||||||
Net cash flows used for financing activities | (2,274) | (4,751) | ||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | 11 | 24 | ||||||||||
Net increase (decrease) in cash | (642) | (918) | ||||||||||
Cash – beginning of period | 1,965 | [1],[2] | 2,743 | [3] | ||||||||
Cash – end of period | 1,323 | [2],[4] | 1,825 | [3] | ||||||||
Consolidation, Eliminations [Member] | ||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||
Net cash flows from operating activities | (2,041) | (7,372) | ||||||||||
Purchases of fixed maturities available for sale | 0 | 0 | ||||||||||
Purchases of fixed maturities held to maturity | 0 | 0 | ||||||||||
Purchases of equity securities | 0 | 0 | ||||||||||
Sales of fixed maturities available for sale | 0 | 0 | ||||||||||
Sales of equity securities | 0 | 0 | ||||||||||
Maturities and redemptions of fixed maturities available for sale | 0 | 0 | ||||||||||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||||||||||
Net change in short-term investments | 0 | 0 | ||||||||||
Net derivative instruments settlements | 0 | 0 | ||||||||||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 0 | |||||||||||
Capital contribution | 4,660 | |||||||||||
Other | 0 | 0 | ||||||||||
Net cash flows from (used for) investing activities | 0 | 4,660 | ||||||||||
Dividends paid on Common Shares | 0 | 0 | ||||||||||
Common Shares repurchased | 0 | |||||||||||
Repayment of long-term debt | 0 | |||||||||||
Proceeds from issuance of repurchase agreements | 0 | 0 | ||||||||||
Repayments of repurchase agreements | 0 | 0 | ||||||||||
Proceeds from share-based compensation plans | 0 | 0 | ||||||||||
Dividend to Parent Company | 2,041 | 7,372 | ||||||||||
Advances (to) from affiliates | 0 | 0 | ||||||||||
Capital contribution | (4,660) | |||||||||||
Net proceeds from (payments to) affiliated notional cash pooling program | 789 | [2] | (51) | |||||||||
Policyholder contract deposits | 0 | 0 | ||||||||||
Policyholder contract withdrawals | 0 | 0 | ||||||||||
Other | 0 | |||||||||||
Net cash flows used for financing activities | 2,830 | 2,661 | ||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||||||||||
Net increase (decrease) in cash | 789 | (51) | ||||||||||
Cash – beginning of period | (982) | [1],[2] | (971) | [3] | ||||||||
Cash – end of period | $ (193) | [2],[4] | $ (1,022) | [3] | ||||||||
|
Information provided in connection with outstanding debt of subsidiaries Parenthetical (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash Acquired from Acquisition | $ 0 | $ 71 |