Segment information

6 Months Ended

Jun. 30, 2017

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:

	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

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.