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 ¨ |
Part I. | FINANCIAL INFORMATION | Page | |
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 5. | |||
Item 6. |
ITEM 1. Financial Statements |
June 30 | December 31 | ||||||
(in millions of U.S. dollars, except share and per share data) | 2018 | 2017 | |||||
Assets | |||||||
Investments | |||||||
Fixed maturities available for sale, at fair value (amortized cost – $78,546 and $77,835) (includes hybrid financial instruments of $9 and $5) | $ | 77,963 | $ | 78,939 | |||
Fixed maturities held to maturity, at amortized cost (fair value – $13,665 and $14,474) | 13,860 | 14,335 | |||||
Equity securities, at fair value (cost – $933 and $737) | 933 | 937 | |||||
Short-term investments, at fair value and amortized cost | 3,171 | 3,561 | |||||
Other investments (cost – $5,259 and $4,417) | 5,259 | 4,672 | |||||
Total investments | 101,186 | 102,444 | |||||
Cash | 1,000 | 728 | |||||
Restricted cash | 101 | 123 | |||||
Securities lending collateral | 2,355 | 1,737 | |||||
Accrued investment income | 870 | 909 | |||||
Insurance and reinsurance balances receivable | 10,341 | 9,334 | |||||
Reinsurance recoverable on losses and loss expenses | 14,792 | 15,034 | |||||
Reinsurance recoverable on policy benefits | 204 | 184 | |||||
Deferred policy acquisition costs | 4,916 | 4,723 | |||||
Value of business acquired | 311 | 326 | |||||
Goodwill | 15,476 | 15,541 | |||||
Other intangible assets | 6,283 | 6,513 | |||||
Prepaid reinsurance premiums | 2,686 | 2,529 | |||||
Investments in partially-owned insurance companies | 675 | 662 | |||||
Other assets | 6,338 | 6,235 | |||||
Total assets | $ | 167,534 | $ | 167,022 | |||
Liabilities | |||||||
Unpaid losses and loss expenses | $ | 62,778 | $ | 63,179 | |||
Unearned premiums | 15,748 | 15,216 | |||||
Future policy benefits | 5,470 | 5,321 | |||||
Insurance and reinsurance balances payable | 6,448 | 5,868 | |||||
Securities lending payable | 2,355 | 1,737 | |||||
Accounts payable, accrued expenses, and other liabilities | 8,933 | 9,545 | |||||
Deferred tax liabilities | 326 | 699 | |||||
Repurchase agreements | 1,413 | 1,408 | |||||
Short-term debt | 600 | 1,013 | |||||
Long-term debt | 12,184 | 11,556 | |||||
Trust preferred securities | 308 | 308 | |||||
Total liabilities | 116,563 | 115,850 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity | |||||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 463,502,164 and 463,833,179 shares outstanding) | 11,121 | 11,121 | |||||
Common Shares in treasury (16,281,700 and 15,950,685 shares) | (2,040 | ) | (1,944 | ) | |||
Additional paid-in capital | 13,150 | 13,978 | |||||
Retained earnings | 30,260 | 27,474 | |||||
Accumulated other comprehensive income (loss) (AOCI) | (1,520 | ) | 543 | ||||
Total shareholders’ equity | 50,971 | 51,172 | |||||
Total liabilities and shareholders’ equity | $ | 167,534 | $ | 167,022 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars, except per share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues | |||||||||||||||
Net premiums written | $ | 8,015 | $ | 7,581 | $ | 15,119 | $ | 14,291 | |||||||
Increase in unearned premiums | (351 | ) | (344 | ) | (428 | ) | (282 | ) | |||||||
Net premiums earned | 7,664 | 7,237 | 14,691 | 14,009 | |||||||||||
Net investment income | 828 | 770 | 1,634 | 1,515 | |||||||||||
Net realized gains (losses): | |||||||||||||||
Other-than-temporary impairment (OTTI) losses gross | (4 | ) | (9 | ) | (5 | ) | (28 | ) | |||||||
Portion of OTTI losses recognized in other comprehensive income (OCI) | — | 1 | — | 1 | |||||||||||
Net OTTI losses recognized in income | (4 | ) | (8 | ) | (5 | ) | (27 | ) | |||||||
Net realized gains (losses) excluding OTTI losses | 22 | 109 | 21 | 121 | |||||||||||
Total net realized gains (losses) (includes $(81), $25, $(104) and $17 reclassified from AOCI) | 18 | 101 | 16 | 94 | |||||||||||
Total revenues | 8,510 | 8,108 | 16,341 | 15,618 | |||||||||||
Expenses | |||||||||||||||
Losses and loss expenses | 4,487 | 4,146 | 8,589 | 7,935 | |||||||||||
Policy benefits | 150 | 163 | 301 | 331 | |||||||||||
Policy acquisition costs | 1,464 | 1,449 | 2,928 | 2,846 | |||||||||||
Administrative expenses | 747 | 706 | 1,439 | 1,382 | |||||||||||
Interest expense | 167 | 147 | 324 | 301 | |||||||||||
Other (income) expense | (115 | ) | (145 | ) | (162 | ) | (215 | ) | |||||||
Amortization of purchased intangibles | 85 | 65 | 170 | 129 | |||||||||||
Chubb integration expenses | 13 | 72 | 23 | 183 | |||||||||||
Total expenses | 6,998 | 6,603 | 13,612 | 12,892 | |||||||||||
Income before income tax | 1,512 | 1,505 | 2,729 | 2,726 | |||||||||||
Income tax expense (benefit) (includes $(12), $9, $(15) and $3 on reclassified unrealized gains and losses) | 218 | 200 | 353 | 328 | |||||||||||
Net income | $ | 1,294 | $ | 1,305 | $ | 2,376 | $ | 2,398 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Unrealized appreciation (depreciation) | $ | (578 | ) | $ | 459 | $ | (1,812 | ) | $ | 766 | |||||
Reclassification adjustment for net realized (gains) losses included in net income | 81 | (25 | ) | 104 | (17 | ) | |||||||||
(497 | ) | 434 | (1,708 | ) | 749 | ||||||||||
Change in: | |||||||||||||||
Cumulative foreign currency translation adjustment | (574 | ) | 102 | (177 | ) | 236 | |||||||||
Postretirement benefit liability adjustment | (17 | ) | (35 | ) | (40 | ) | (55 | ) | |||||||
Other comprehensive income (loss), before income tax | (1,088 | ) | 501 | (1,925 | ) | 930 | |||||||||
Income tax (expense) benefit related to OCI items | 71 | (131 | ) | 279 | (246 | ) | |||||||||
Other comprehensive income (loss) | (1,017 | ) | 370 | (1,646 | ) | 684 | |||||||||
Comprehensive income | $ | 277 | $ | 1,675 | $ | 730 | $ | 3,082 | |||||||
Earnings per share | |||||||||||||||
Basic earnings per share | $ | 2.78 | $ | 2.79 | $ | 5.10 | $ | 5.12 | |||||||
Diluted earnings per share | $ | 2.76 | $ | 2.77 | $ | 5.07 | $ | 5.08 |
Six Months Ended | |||||||
June 30 | |||||||
(in millions of U.S. dollars) | 2018 | 2017 | |||||
Common Shares | |||||||
Balance – beginning and end of period | $ | 11,121 | $ | 11,121 | |||
Common Shares in treasury | |||||||
Balance – beginning of period | (1,944 | ) | (1,480 | ) | |||
Common Shares repurchased | (324 | ) | (475 | ) | |||
Net shares redeemed under employee share-based compensation plans | 228 | 280 | |||||
Balance – end of period | (2,040 | ) | (1,675 | ) | |||
Additional paid-in capital | |||||||
Balance – beginning of period | 13,978 | 15,335 | |||||
Net shares redeemed under employee share-based compensation plans | (261 | ) | (275 | ) | |||
Exercise of stock options | (19 | ) | (38 | ) | |||
Share-based compensation expense | 123 | 156 | |||||
Funding of dividends declared to Retained earnings | (671 | ) | (656 | ) | |||
Balance – end of period | 13,150 | 14,522 | |||||
Retained earnings | |||||||
Balance – beginning of period | 27,474 | 23,613 | |||||
Cumulative effect of adoption of accounting guidance (refer to Note 1) | 410 | — | |||||
Balance – beginning of period, as adjusted | 27,884 | 23,613 | |||||
Net income | 2,376 | 2,398 | |||||
Funding of dividends declared from Additional paid-in capital | 671 | 656 | |||||
Dividends declared on Common Shares | (671 | ) | (656 | ) | |||
Balance – end of period | 30,260 | 26,011 | |||||
Accumulated other comprehensive income (loss) | |||||||
Net unrealized appreciation on investments | |||||||
Balance – beginning of period | 1,450 | 1,058 | |||||
Cumulative effect of adoption of accounting guidance (refer to Note 1) | (417 | ) | — | ||||
Balance – beginning of period, as adjusted | 1,033 | 1,058 | |||||
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $300 and $(259) | (1,512 | ) | 507 | ||||
Amounts reclassified from AOCI, net of income tax benefit (expense) of $(15) and $3 | 89 | (14 | ) | ||||
Change in period, net of income tax benefit (expense) of $285 and $(256) | (1,423 | ) | 493 | ||||
Balance – end of period | (390 | ) | 1,551 | ||||
Cumulative foreign currency translation adjustment | |||||||
Balance – beginning of period | (1,187 | ) | (1,663 | ) | |||
Change in period, net of income tax expense of $(15) and $(7) | (192 | ) | 229 | ||||
Balance – end of period | (1,379 | ) | (1,434 | ) | |||
Postretirement benefit liability adjustment | |||||||
Balance – beginning of period | 280 | 291 | |||||
Change in period, net of income tax benefit of $9 and $17 | (31 | ) | (38 | ) | |||
Balance – end of period | 249 | 253 | |||||
Accumulated other comprehensive income (loss) | (1,520 | ) | 370 | ||||
Total shareholders’ equity | $ | 50,971 | $ | 50,349 |
Six Months Ended June 30 | |||||||
(in millions of U.S. dollars) | 2018 | 2017 | |||||
Cash flows from operating activities | |||||||
Net income | $ | 2,376 | $ | 2,398 | |||
Adjustments to reconcile net income to net cash flows from operating activities | |||||||
Net realized (gains) losses | (16 | ) | (94 | ) | |||
Amortization of premiums/discounts on fixed maturities | 311 | 353 | |||||
Amortization of purchased intangibles | 170 | 129 | |||||
Deferred income taxes | (71 | ) | (112 | ) | |||
Unpaid losses and loss expenses | (267 | ) | (411 | ) | |||
Unearned premiums | 635 | 386 | |||||
Future policy benefits | 144 | 134 | |||||
Insurance and reinsurance balances payable | 675 | 278 | |||||
Accounts payable, accrued expenses, and other liabilities | (489 | ) | (603 | ) | |||
Income taxes payable | 224 | (103 | ) | ||||
Insurance and reinsurance balances receivable | (1,129 | ) | (575 | ) | |||
Reinsurance recoverable on losses and loss expenses | 200 | 312 | |||||
Reinsurance recoverable on policy benefits | (22 | ) | (15 | ) | |||
Deferred policy acquisition costs | (213 | ) | (179 | ) | |||
Prepaid reinsurance premiums | (205 | ) | (139 | ) | |||
Other | (126 | ) | (119 | ) | |||
Net cash flows from operating activities | 2,197 | 1,640 | |||||
Cash flows from investing activities | |||||||
Purchases of fixed maturities available for sale | (12,297 | ) | (12,260 | ) | |||
Purchases of fixed maturities held to maturity | (337 | ) | (212 | ) | |||
Purchases of equity securities | (85 | ) | (82 | ) | |||
Sales of fixed maturities available for sale | 6,858 | 6,873 | |||||
Sales of equity securities | 83 | 104 | |||||
Maturities and redemptions of fixed maturities available for sale | 3,920 | 5,169 | |||||
Maturities and redemptions of fixed maturities held to maturity | 732 | 408 | |||||
Net change in short-term investments | 401 | 354 | |||||
Net derivative instruments settlements | 5 | (129 | ) | ||||
Private equity contributions | (813 | ) | (345 | ) | |||
Private equity distributions | 413 | 487 | |||||
Other | (140 | ) | (244 | ) | |||
Net cash flows from (used for) investing activities | (1,260 | ) | 123 | ||||
Cash flows from financing activities | |||||||
Dividends paid on Common Shares | (661 | ) | (646 | ) | |||
Common Shares repurchased | (347 | ) | (475 | ) | |||
Proceeds from issuance of long-term debt | 2,171 | — | |||||
Repayment of long-term debt | (1,900 | ) | (500 | ) | |||
Proceeds from issuance of repurchase agreements | 1,014 | 1,343 | |||||
Repayment of repurchase agreements | (1,009 | ) | (1,338 | ) | |||
Proceeds from share-based compensation plans | 60 | 89 | |||||
Policyholder contract deposits | 192 | 209 | |||||
Policyholder contract withdrawals | (169 | ) | (125 | ) | |||
Net cash flows used for financing activities | (649 | ) | (1,443 | ) | |||
Effect of foreign currency rate changes on cash and restricted cash | (38 | ) | 11 | ||||
Net increase in cash and restricted cash | 250 | 331 | |||||
Cash and restricted cash – beginning of period | 851 | 1,088 | |||||
Cash and restricted cash – end of period | $ | 1,101 | $ | 1,419 | |||
Supplemental cash flow information | |||||||
Taxes paid | $ | 223 | $ | 510 | |||
Interest paid | $ | 332 | $ | 327 |
June 30 | December 31 | ||||||
(in millions of U.S. dollars) | 2018 | 2017 | |||||
Cash | $ | 1,000 | $ | 728 | |||
Restricted cash | 101 | 123 | |||||
Total cash and restricted cash shown in the consolidated statements of cash flows | $ | 1,101 | $ | 851 |
June 30, 2018 | 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 | $ | 3,827 | $ | 18 | $ | (81 | ) | $ | 3,764 | $ | — | ||||||||
Foreign | 21,884 | 421 | (294 | ) | 22,011 | — | |||||||||||||
Corporate securities | 24,665 | 235 | (415 | ) | 24,485 | (4 | ) | ||||||||||||
Mortgage-backed securities | 15,853 | 40 | (410 | ) | 15,483 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 12,317 | 55 | (152 | ) | 12,220 | — | |||||||||||||
$ | 78,546 | $ | 769 | $ | (1,352 | ) | $ | 77,963 | $ | (5 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 1,143 | $ | 9 | $ | (19 | ) | $ | 1,133 | $ | — | ||||||||
Foreign | 1,678 | 14 | (17 | ) | 1,675 | — | |||||||||||||
Corporate securities | 2,736 | 14 | (85 | ) | 2,665 | — | |||||||||||||
Mortgage-backed securities | 2,640 | 7 | (62 | ) | 2,585 | — | |||||||||||||
States, municipalities, and political subdivisions | 5,663 | 16 | (72 | ) | 5,607 | — | |||||||||||||
$ | 13,860 | $ | 60 | $ | (255 | ) | $ | 13,665 | $ | — |
December 31, 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 | $ | 3,701 | $ | 32 | $ | (35 | ) | $ | 3,698 | $ | — | ||||||||
Foreign | 20,514 | 622 | (106 | ) | 21,030 | (1 | ) | ||||||||||||
Corporate securities | 23,453 | 638 | (95 | ) | 23,996 | (4 | ) | ||||||||||||
Mortgage-backed securities | 15,279 | 111 | (100 | ) | 15,290 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 14,888 | 125 | (88 | ) | 14,925 | — | |||||||||||||
$ | 77,835 | $ | 1,528 | $ | (424 | ) | $ | 78,939 | $ | (6 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 908 | $ | 12 | $ | (5 | ) | $ | 915 | $ | — | ||||||||
Foreign | 1,738 | 27 | (8 | ) | 1,757 | — | |||||||||||||
Corporate securities | 3,159 | 67 | (7 | ) | 3,219 | — | |||||||||||||
Mortgage-backed securities | 2,724 | 23 | (5 | ) | 2,742 | — | |||||||||||||
States, municipalities, and political subdivisions | 5,806 | 50 | (15 | ) | 5,841 | — | |||||||||||||
$ | 14,335 | $ | 179 | $ | (40 | ) | $ | 14,474 | $ | — |
June 30 | December 31 | ||||||||||||||
2018 | 2017 | ||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Available for sale | |||||||||||||||
Due in 1 year or less | $ | 3,801 | $ | 3,808 | $ | 3,164 | $ | 3,182 | |||||||
Due after 1 year through 5 years | 26,591 | 26,583 | 24,749 | 25,068 | |||||||||||
Due after 5 years through 10 years | 24,016 | 23,695 | 25,388 | 25,704 | |||||||||||
Due after 10 years | 8,285 | 8,394 | 9,255 | 9,695 | |||||||||||
62,693 | 62,480 | 62,556 | 63,649 | ||||||||||||
Mortgage-backed securities | 15,853 | 15,483 | 15,279 | 15,290 | |||||||||||
$ | 78,546 | $ | 77,963 | $ | 77,835 | $ | 78,939 | ||||||||
Held to maturity | |||||||||||||||
Due in 1 year or less | $ | 644 | $ | 645 | $ | 743 | $ | 746 | |||||||
Due after 1 year through 5 years | 2,783 | 2,767 | 2,669 | 2,688 | |||||||||||
Due after 5 years through 10 years | 4,634 | 4,554 | 4,744 | 4,756 | |||||||||||
Due after 10 years | 3,159 | 3,114 | 3,455 | 3,542 | |||||||||||
11,220 | 11,080 | 11,611 | 11,732 | ||||||||||||
Mortgage-backed securities | 2,640 | 2,585 | 2,724 | 2,742 | |||||||||||
$ | 13,860 | $ | 13,665 | $ | 14,335 | $ | 14,474 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Fixed maturities: | |||||||||||||||
OTTI on fixed maturities, gross | $ | (4 | ) | $ | (5 | ) | $ | (5 | ) | $ | (11 | ) | |||
OTTI on fixed maturities recognized in OCI (pre-tax) | — | 1 | — | 1 | |||||||||||
OTTI on fixed maturities, net | (4 | ) | (4 | ) | (5 | ) | (10 | ) | |||||||
Gross realized gains excluding OTTI | 99 | 45 | 165 | 79 | |||||||||||
Gross realized losses excluding OTTI | (176 | ) | (18 | ) | (264 | ) | (58 | ) | |||||||
Total fixed maturities | (81 | ) | 23 | (104 | ) | 11 | |||||||||
Equity securities: | |||||||||||||||
OTTI on equity securities | — | (3 | ) | — | (8 | ) | |||||||||
Gross realized gains excluding OTTI | 6 | 6 | 16 | 15 | |||||||||||
Gross realized losses excluding OTTI | (8 | ) | (1 | ) | (29 | ) | (1 | ) | |||||||
Total equity securities | (2 | ) | 2 | (13 | ) | 6 | |||||||||
OTTI on other investments | — | (1 | ) | — | (9 | ) | |||||||||
Other investments | (11 | ) | — | 18 | — | ||||||||||
Foreign exchange gains (losses) | 140 | 14 | 63 | (5 | ) | ||||||||||
Investment and embedded derivative instruments | 24 | (16 | ) | 41 | (10 | ) | |||||||||
Fair value adjustments on insurance derivative | 41 | 118 | 79 | 211 | |||||||||||
S&P put options and futures | (44 | ) | (38 | ) | (22 | ) | (112 | ) | |||||||
Other derivative instruments | 8 | (1 | ) | 10 | 1 | ||||||||||
Other | (57 | ) | — | (56 | ) | 1 | |||||||||
Net realized gains (losses) | $ | 18 | $ | 101 | $ | 16 | $ | 94 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Balance of credit losses related to securities still held – beginning of period | $ | 15 | $ | 32 | $ | 22 | $ | 35 | |||||||
Additions where no OTTI was previously recorded | 1 | 1 | 1 | 1 | |||||||||||
Additions where an OTTI was previously recorded | — | — | — | 1 | |||||||||||
Reductions for securities sold during the period | — | (4 | ) | (7 | ) | (8 | ) | ||||||||
Balance of credit losses related to securities still held – end of period | $ | 16 | $ | 29 | $ | 16 | $ | 29 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2018 | June 30, 2018 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Equity Securities | Other Investments | Total | Equity Securities | Other Investments | Total | |||||||||||||||||
Net gains (losses) recognized during the period | $ | (2 | ) | $ | (11 | ) | $ | (13 | ) | $ | (13 | ) | $ | 18 | $ | 5 | |||||||
Less: Net gains (losses) recognized from sales of securities | 5 | — | 5 | 15 | — | 15 | |||||||||||||||||
Unrealized gains (losses) recognized for securities still held at reporting date | $ | (7 | ) | $ | (11 | ) | $ | (18 | ) | $ | (28 | ) | $ | 18 | $ | (10 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
June 30, 2018 | 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 | $ | 2,952 | $ | (59 | ) | $ | 1,275 | $ | (41 | ) | $ | 4,227 | $ | (100 | ) | ||||||||
Foreign | 8,886 | (219 | ) | 3,127 | (92 | ) | 12,013 | (311 | ) | ||||||||||||||
Corporate securities | 15,899 | (411 | ) | 1,553 | (89 | ) | 17,452 | (500 | ) | ||||||||||||||
Mortgage-backed securities | 12,438 | (325 | ) | 2,892 | (147 | ) | 15,330 | (472 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 13,551 | (177 | ) | 1,230 | (47 | ) | 14,781 | (224 | ) | ||||||||||||||
Total fixed maturities | $ | 53,726 | $ | (1,191 | ) | $ | 10,077 | $ | (416 | ) | $ | 63,803 | $ | (1,607 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 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 | $ | 2,172 | $ | (14 | ) | $ | 1,249 | $ | (26 | ) | $ | 3,421 | $ | (40 | ) | ||||||||
Foreign | 5,657 | (65 | ) | 1,693 | (49 | ) | 7,350 | (114 | ) | ||||||||||||||
Corporate securities | 5,210 | (56 | ) | 1,332 | (46 | ) | 6,542 | (102 | ) | ||||||||||||||
Mortgage-backed securities | 6,194 | (31 | ) | 3,209 | (74 | ) | 9,403 | (105 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 9,259 | (71 | ) | 1,402 | (32 | ) | 10,661 | (103 | ) | ||||||||||||||
Total fixed maturities | 28,492 | (237 | ) | 8,885 | (227 | ) | 37,377 | (464 | ) | ||||||||||||||
Equity securities | 115 | (12 | ) | — | — | 115 | (12 | ) | |||||||||||||||
Other investments | 78 | (8 | ) | — | — | 78 | (8 | ) | |||||||||||||||
Total | $ | 28,685 | $ | (257 | ) | $ | 8,885 | $ | (227 | ) | $ | 37,570 | $ | (484 | ) |
June 30 | December 31 | ||||||
(in millions of U.S. dollars) | 2018 | 2017 | |||||
Trust funds | $ | 14,775 | $ | 17,011 | |||
Deposits with U.S. regulatory authorities | 2,460 | 2,345 | |||||
Deposits with non-U.S. regulatory authorities | 2,206 | 2,250 | |||||
Assets pledged under repurchase agreements | 1,449 | 1,434 | |||||
Other pledged assets | 407 | 414 | |||||
$ | 21,297 | $ | 23,454 |
• | 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, 2018 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 2,939 | $ | 825 | $ | — | $ | 3,764 | |||||||
Foreign | — | 21,759 | 252 | 22,011 | |||||||||||
Corporate securities | — | 23,304 | 1,181 | 24,485 | |||||||||||
Mortgage-backed securities | — | 15,401 | 82 | 15,483 | |||||||||||
States, municipalities, and political subdivisions | — | 12,220 | — | 12,220 | |||||||||||
2,939 | 73,509 | 1,515 | 77,963 | ||||||||||||
Equity securities | 874 | — | 59 | 933 | |||||||||||
Short-term investments | 1,750 | 1,409 | 12 | 3,171 | |||||||||||
Other investments (1) | 424 | 326 | 264 | 1,014 | |||||||||||
Securities lending collateral | — | 2,355 | — | 2,355 | |||||||||||
Investment derivative instruments | 39 | — | — | 39 | |||||||||||
Other derivative instruments | 50 | — | — | 50 | |||||||||||
Separate account assets | 2,862 | 116 | — | 2,978 | |||||||||||
Total assets measured at fair value (1) | $ | 8,938 | $ | 77,715 | $ | 1,850 | $ | 88,503 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 42 | $ | — | $ | — | $ | 42 | |||||||
Other derivative instruments | — | — | 2 | 2 | |||||||||||
GLB (2) | — | — | 125 | 125 | |||||||||||
Total liabilities measured at fair value | $ | 42 | $ | — | $ | 127 | $ | 169 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $4,224 million and other investments of $21 million at June 30, 2018 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, 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 | $ | 3,129 | $ | 569 | $ | — | $ | 3,698 | |||||||
Foreign | — | 20,937 | 93 | 21,030 | |||||||||||
Corporate securities | — | 22,959 | 1,037 | 23,996 | |||||||||||
Mortgage-backed securities | — | 15,212 | 78 | 15,290 | |||||||||||
States, municipalities, and political subdivisions | — | 14,925 | — | 14,925 | |||||||||||
3,129 | 74,602 | 1,208 | 78,939 | ||||||||||||
Equity securities | 893 | — | 44 | 937 | |||||||||||
Short-term investments | 2,309 | 1,252 | — | 3,561 | |||||||||||
Other investments (1) | 466 | 305 | 263 | 1,034 | |||||||||||
Securities lending collateral | — | 1,737 | — | 1,737 | |||||||||||
Investment derivative instruments | 18 | — | — | 18 | |||||||||||
Other derivative instruments | 1 | — | — | 1 | |||||||||||
Separate account assets | 2,635 | 99 | — | 2,734 | |||||||||||
Total assets measured at fair value (1) | $ | 9,451 | $ | 77,995 | $ | 1,515 | $ | 88,961 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 30 | $ | — | $ | — | $ | 30 | |||||||
Other derivative instruments | 21 | — | 2 | 23 | |||||||||||
GLB (2) | — | — | 204 | 204 | |||||||||||
Total liabilities measured at fair value | $ | 51 | $ | — | $ | 206 | $ | 257 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,623 million and other investments of $15 million at December 31, 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. |
June 30 | December 31 | ||||||||||||||||
Expected Liquidation Period of Underlying Assets | 2018 | 2017 | |||||||||||||||
(in millions of U.S. dollars) | Fair Value | Maximum Future Funding Commitments | Fair Value | Maximum Future Funding Commitments | |||||||||||||
Financial | 5 to 9 Years | $ | 569 | $ | 281 | $ | 540 | $ | 330 | ||||||||
Real Assets | 3 to 7 Years | 673 | 192 | 651 | 114 | ||||||||||||
Distressed | 3 to 7 Years | 279 | 131 | 289 | 141 | ||||||||||||
Private Credit | 3 to 7 Years | 184 | 308 | 187 | 327 | ||||||||||||
Traditional | 3 to 15 Years | 2,177 | 2,529 | 1,656 | 3,149 | ||||||||||||
Vintage | 1 to 2 Years | 64 | — | 30 | — | ||||||||||||
Investment funds | Not Applicable | 278 | — | 270 | — | ||||||||||||
$ | 4,224 | $ | 3,441 | $ | 3,623 | $ | 4,061 |
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 or 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, 2018 | December 31, 2017 | ||||||||||||
GLB (1) | $ | 125 | $ | 204 | Actuarial model | Lapse rate | 3% – 33% | ||||||
Annuitization rate | 0% – 100% |
(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 3 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 (2) | |||||||||||||||||||||||||
June 30, 2018 | Foreign | Corporate securities (1) | MBS | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 176 | $ | 1,073 | $ | 83 | $ | 64 | $ | 12 | $ | 270 | $ | 2 | $ | 167 | |||||||||||||||
Transfers into Level 3 | — | 6 | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange | (7 | ) | (9 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Net Realized Gains/Losses | — | 2 | — | (3 | ) | — | 1 | — | (42 | ) | |||||||||||||||||||||
Purchases | 95 | 217 | — | 3 | 1 | 16 | — | — | |||||||||||||||||||||||
Sales | (11 | ) | (45 | ) | — | (5 | ) | — | — | — | — | ||||||||||||||||||||
Settlements | (1 | ) | (63 | ) | (1 | ) | — | (1 | ) | (23 | ) | — | — | ||||||||||||||||||
Balance – end of period | $ | 252 | $ | 1,181 | $ | 82 | $ | 59 | $ | 12 | $ | 264 | $ | 2 | $ | 125 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | (3 | ) | $ | — | $ | 1 | $ | — | $ | (42 | ) |
(1) | Purchases in Level 3 primarily consist of privately-placed fixed income securities. |
(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. The liability for GLB reinsurance was $497 million at June 30, 2018, and $529 million at March 31, 2018, which includes a fair value derivative adjustment of $125 million and $167 million, respectively. |
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, including foreign exchange | 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. |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Six Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(2) | |||||||||||||||||||||||||
June 30, 2018 | Foreign | Corporate securities (1) | MBS | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 93 | $ | 1,037 | $ | 78 | $ | 44 | $ | — | $ | 263 | $ | 2 | $ | 204 | |||||||||||||||
Transfers into Level 3 | 7 | 6 | 1 | — | 5 | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | — | (10 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange | 2 | (12 | ) | — | 1 | — | 2 | — | — | ||||||||||||||||||||||
Net Realized Gains/Losses | — | 2 | — | (1 | ) | — | 1 | — | (79 | ) | |||||||||||||||||||||
Purchases | 182 | 356 | 4 | 20 | 9 | 30 | — | — | |||||||||||||||||||||||
Sales | (30 | ) | (96 | ) | — | (5 | ) | — | — | — | — | ||||||||||||||||||||
Settlements | (2 | ) | (102 | ) | (1 | ) | — | (2 | ) | (32 | ) | — | — | ||||||||||||||||||
Balance – end of period | $ | 252 | $ | 1,181 | $ | 82 | $ | 59 | $ | 12 | $ | 264 | $ | 2 | $ | 125 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | 1 | $ | — | $ | (79 | ) |
(1) | Purchases in Level 3 primarily consist of privately-placed fixed income securities. |
(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. The liability for GLB reinsurance was $497 million at June 30, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $125 million and $204 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, including foreign exchange | 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. |
June 30, 2018 | 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 | $ | 1,079 | $ | 54 | $ | — | $ | 1,133 | $ | 1,143 | |||||||||
Foreign | — | 1,675 | — | 1,675 | 1,678 | ||||||||||||||
Corporate securities | — | 2,633 | 32 | 2,665 | 2,736 | ||||||||||||||
Mortgage-backed securities | — | 2,585 | — | 2,585 | 2,640 | ||||||||||||||
States, municipalities, and political subdivisions | — | 5,607 | — | 5,607 | 5,663 | ||||||||||||||
Total assets | $ | 1,079 | $ | 12,554 | $ | 32 | $ | 13,665 | $ | 13,860 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,413 | $ | — | $ | 1,413 | $ | 1,413 | |||||||||
Short-term debt | — | 615 | — | 615 | 600 | ||||||||||||||
Long-term debt | — | 12,296 | — | 12,296 | 12,184 | ||||||||||||||
Trust preferred securities | — | 433 | — | 433 | 308 | ||||||||||||||
Total liabilities | $ | — | $ | 14,757 | $ | — | $ | 14,757 | $ | 14,505 |
December 31, 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 | $ | 857 | $ | 58 | $ | — | $ | 915 | $ | 908 | |||||||||
Foreign | — | 1,757 | — | 1,757 | 1,738 | ||||||||||||||
Corporate securities | — | 3,184 | 35 | 3,219 | 3,159 | ||||||||||||||
Mortgage-backed securities | — | 2,742 | — | 2,742 | 2,724 | ||||||||||||||
States, municipalities, and political subdivisions | — | 5,841 | — | 5,841 | 5,806 | ||||||||||||||
Total assets | $ | 857 | $ | 13,582 | $ | 35 | $ | 14,474 | $ | 14,335 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,408 | $ | — | $ | 1,408 | $ | 1,408 | |||||||||
Short-term debt | — | 1,013 | — | 1,013 | 1,013 | ||||||||||||||
Long-term debt | — | 12,332 | — | 12,332 | 11,556 | ||||||||||||||
Trust preferred securities | — | 468 | — | 468 | 308 | ||||||||||||||
Total liabilities | $ | — | $ | 15,221 | $ | — | $ | 15,221 | $ | 14,285 |
Six Months Ended June 30 | |||||||
(in millions of U.S. dollars) | 2018 | 2017 | |||||
Gross unpaid losses and loss expenses – beginning of period | $ | 63,179 | $ | 60,540 | |||
Reinsurance recoverable on unpaid losses - beginning of period (1) | (14,014 | ) | (12,708 | ) | |||
Net unpaid losses and loss expenses – beginning of period | 49,165 | 47,832 | |||||
Net losses and loss expenses incurred in respect of losses occurring in: | |||||||
Current year | 9,026 | 8,396 | |||||
Prior years (2) | (437 | ) | (461 | ) | |||
Total | 8,589 | 7,935 | |||||
Net losses and loss expenses paid in respect of losses occurring in: | |||||||
Current year | 2,346 | 2,271 | |||||
Prior years | 6,269 | 5,758 | |||||
Total | 8,615 | 8,029 | |||||
Foreign currency revaluation and other | (96 | ) | 171 | ||||
Net unpaid losses and loss expenses – end of period | 49,043 | 47,909 | |||||
Reinsurance recoverable on unpaid losses (3) | 13,735 | 12,485 | |||||
Gross unpaid losses and loss expenses – end of period | $ | 62,778 | $ | 60,394 |
(1) | Net of provision for uncollectible reinsurance of $321 million and $300 million at December 31, 2017 and 2016, respectively. |
(2) | Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums totaling $37 million and $60 million for the six months ended June 30, 2018 and 2017, respectively. |
(3) | Net of provision for uncollectible reinsurance of $319 million and $335 million at June 30, 2018 and 2017, respectively. |
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 | |||||||||||||||||
2018 | |||||||||||||||||||||||
North America Commercial P&C Insurance | $ | (104 | ) | $ | (51 | ) | $ | (155 | ) | $ | (96 | ) | $ | (160 | ) | $ | (256 | ) | |||||
North America Personal P&C Insurance | — | 7 | 7 | — | 1 | 1 | |||||||||||||||||
North America Agricultural Insurance | — | — | — | — | (76 | ) | (76 | ) | |||||||||||||||
Overseas General Insurance | (2 | ) | (70 | ) | (72 | ) | (2 | ) | (92 | ) | (94 | ) | |||||||||||
Global Reinsurance | (30 | ) | 14 | (16 | ) | (30 | ) | — | (30 | ) | |||||||||||||
Corporate | 45 | — | 45 | 55 | — | 55 | |||||||||||||||||
Total | $ | (91 | ) | $ | (100 | ) | $ | (191 | ) | $ | (73 | ) | $ | (327 | ) | $ | (400 | ) | |||||
2017 | |||||||||||||||||||||||
North America Commercial P&C Insurance | $ | (83 | ) | $ | (48 | ) | $ | (131 | ) | $ | (177 | ) | $ | (133 | ) | $ | (310 | ) | |||||
North America Personal P&C Insurance | — | 37 | 37 | — | 34 | 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 | $ | (76 | ) | $ | (94 | ) | $ | (170 | ) | $ | (120 | ) | $ | (281 | ) | $ | (401 | ) |
• | Net favorable development of $104 million in long-tail business, primarily from: |
• | Net favorable development of $118 million in our workers’ compensation lines with favorable development of $56 million in the 2017 accident year mainly 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. The remaining favorable development is mainly in accident years 2011 and prior, and was principally due to lower than expected loss experience; and |
• | Net adverse development of $14 million, mainly in our automobile liability, commercial-multi peril (CMP) liability, products and general liability lines, driven by adverse paid and reported loss activity relative to prior expectations in accident years 2015 through 2017, partly offset by favorable emergence in older accident years. |
• | Net favorable development of $51 million in short-tail business, primarily from: |
• | Net favorable development of $40 million in our commercial property and marine businesses due to favorable claim development on the 2017 natural catastrophes. |
• | Net favorable development of $96 million in long-tail business, primarily from: |
• | Net favorable development of $138 million in our workers’ compensation lines mainly due to the same factors experienced for the three months ended June 30, 2018, as described above; |
• | Net favorable development of $29 million in our commercial excess and umbrella portfolios, driven by the 2012 and prior accident years where the cumulative emergence over time has been less than expected overall and an increase in weighting towards experience-based methods, partly offset by several large settlements; additionally there was adverse claim activity in the 2014 and 2015 accident years which led to reserve strengthening in those years; |
• | Net favorable development of $3 million on several lines of business due to favorable claim development on the 2017 natural catastrophes; and |
• | Net adverse development of $74 million, mainly in our automobile liability, commercial-multi peril (CMP) liability, products and general liability lines, due to the same factors experienced for the three months ended June 30, 2018, as described above. |
• | Net favorable development of $160 million in short-tail business, primarily from: |
• | Net favorable development of $115 million in our commercial property and marine businesses due to favorable claim development on the 2017 natural catastrophes; and |
• | Net favorable development of $45 million in other short-tail business, including $19 million in surety and also including several smaller net favorable movements from lower than expected case activity in other classes, such as accident and commercial automobile physical damage, none of which were significant individually or in the aggregate. |
• | Net favorable development of $83 million in long-tail business, primarily from: |
• | Net favorable development of $75 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 $38 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 $48 million in short-tail business, primarily from favorable development of $45 million in our commercial property portfolios, driven by lower than expected loss emergence in the 2014 and 2016 accident years. |
• | Net favorable development of $177 million in long-tail business, primarily from: |
• | Net favorable development of $79 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; 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 $133 million in short-tail business, primarily from: |
• | Net favorable development of $45 million in our surety business, primarily due to lower than expected claims severity in the 2015 accident year; |
• | Favorable development of $57 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 $19 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 $2 million in long-tail business. |
• | Net favorable development of $70 million in short-tail business, primarily from: |
• | Net favorable development of $40 million in property and marine (excluding technical lines), primarily in accident years 2014 through 2016, driven mainly by favorable loss emergence across all regions, including favorable claim-specific loss settlements; and |
• | Net favorable development of $30 million, including $17 million in personal business and $16 million in A&H business. |
• | Net favorable development of $2 million in long-tail business. |
• | Net favorable development of $92 million in short-tail business, due primarily to the same factors experienced for the three months ended June 30, 2018 as described above, and due to $12 million of favorable claim development on the 2017 natural catastrophes. |
• | 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 $30 million in long-tail business, primarily from $32 million favorable development in our casualty and professional liability lines, primarily impacting treaty years 2013 and prior, principally resulting from lower than expected loss emergence. |
• | Net adverse development of $14 million in short-tail business, which included $9 million of adverse claim development on the 2017 natural catastrophes. |
• | 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. |
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||
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) | $ | 33 | $ | (36 | ) | $ | 2,364 | $ | 14 | $ | (27 | ) | $ | 2,064 | ||||||||||
Cross-currency swaps | OA / (AP) | — | — | 45 | — | — | 45 | ||||||||||||||||||
Options/Futures contracts on notes and bonds | OA / (AP) | 6 | (6 | ) | 1,409 | 4 | (3 | ) | 1,007 | ||||||||||||||||
Convertible securities (1) | FM AFS / ES | 9 | — | 10 | 5 | — | 6 | ||||||||||||||||||
$ | 48 | $ | (42 | ) | $ | 3,828 | $ | 23 | $ | (30 | ) | $ | 3,122 | ||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Futures contracts on equities (2) | OA / (AP) | $ | 32 | $ | — | $ | 1,632 | $ | — | $ | (21 | ) | $ | 1,553 | |||||||||||
Other | OA / (AP) | 18 | (2 | ) | 351 | 1 | (2 | ) | 75 | ||||||||||||||||
$ | 50 | $ | (2 | ) | $ | 1,983 | $ | 1 | $ | (23 | ) | $ | 1,628 | ||||||||||||
GLB (3) | (AP) / (FPB) | $ | — | $ | (497 | ) | $ | 1,163 | $ | — | $ | (550 | ) | $ | 1,083 |
(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. |
Three Months Ended | Six Months Ended | |||||||||||||
June 30 | June 30 | |||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | ||||||||||
Investment and embedded derivative instruments: | ||||||||||||||
Foreign currency forward contracts | $ | 3 | $ | (7 | ) | $ | 7 | $ | 7 | |||||
All other futures contracts and options | 21 | (9 | ) | 34 | (17 | ) | ||||||||
Total investment and embedded derivative instruments | $ | 24 | $ | (16 | ) | $ | 41 | $ | (10 | ) | ||||
GLB and other derivative instruments: | ||||||||||||||
GLB (1) | $ | 41 | $ | 118 | $ | 79 | $ | 211 | ||||||
Futures contracts on equities (2) | (44 | ) | (38 | ) | (22 | ) | (112 | ) | ||||||
Other | 8 | (1 | ) | 10 | 1 | |||||||||
Total GLB and other derivative instruments | $ | 5 | $ | 79 | $ | 67 | $ | 100 | ||||||
$ | 29 | $ | 63 | $ | 108 | $ | 90 |
(1) | Excludes foreign exchange gains (losses) related to GLB. |
(2) | Related to GMDB and GLB blocks of business. |
Remaining contractual maturity | ||||||||
June 30 | December 31 | |||||||
2018 | 2017 | |||||||
(in millions of U.S. dollars) | Overnight and Continuous | |||||||
Collateral held under securities lending agreements: | ||||||||
Cash | $ | 990 | $ | 828 | ||||
U.S. Treasury and agency | 100 | 36 | ||||||
Foreign | 909 | 712 | ||||||
Corporate securities | 14 | — | ||||||
Mortgage-backed securities | 55 | 74 | ||||||
Equity securities | 287 | 87 | ||||||
$ | 2,355 | $ | 1,737 | |||||
Gross amount of recognized liability for securities lending payable | $ | 2,355 | $ | 1,737 |
Remaining contractual maturity | |||||||||||||||||||||||
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
Up to 30 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: | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 245 | $ | 9 | $ | 254 | $ | 9 | $ | 230 | $ | 239 | |||||||||||
Mortgage-backed securities | 333 | 862 | 1,195 | 369 | 826 | 1,195 | |||||||||||||||||
$ | 578 | $ | 871 | $ | 1,449 | $ | 378 | $ | 1,056 | $ | 1,434 | ||||||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,413 | $ | 1,408 | |||||||||||||||||||
Difference (1) | $ | 36 | $ | 26 |
(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 | ||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
CHF | USD | CHF | USD | CHF | USD | CHF | USD | ||||||||||||||||||||
Total dividend distributions per common share | 0.73 | $ | 0.73 | 0.69 | $ | 0.71 | 1.39 | $ | 1.44 | 1.38 | $ | 1.40 |
Three Months Ended June 30 | Six Months Ended June 30 | July 1, 2018 through July 31, 2018 | |||||||||||||||||
(in millions of U.S. dollars, except share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Number of shares repurchased | 2,443,855 | 2,381,566 | 2,443,855 | 3,417,630 | 740,869 | ||||||||||||||
Cost of shares repurchased | $ | 324 | $ | 335 | $ | 324 | $ | 475 | $ | 100 | |||||||||
Repurchase authorization remaining at end of period | $ | 676 | $ | 525 | $ | 676 | $ | 525 | $ | 576 |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Three Months Ended June 30 | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Service cost | $ | 15 | $ | 3 | $ | 16 | $ | 4 | $ | — | $ | 2 | |||||||||||
Interest cost | 27 | 7 | 26 | 7 | 1 | — | |||||||||||||||||
Expected return on plan assets | (53 | ) | (13 | ) | (48 | ) | (10 | ) | (1 | ) | (1 | ) | |||||||||||
Amortization of net actuarial loss | — | — | — | 1 | — | — | |||||||||||||||||
Amortization of prior service cost | — | — | — | — | (22 | ) | (23 | ) | |||||||||||||||
Curtailments | — | — | — | (8 | ) | (1 | ) | — | |||||||||||||||
Settlements | 1 | — | — | — | — | — | |||||||||||||||||
Net periodic (benefit) cost | $ | (10 | ) | $ | (3 | ) | $ | (6 | ) | $ | (6 | ) | $ | (23 | ) | $ | (22 | ) |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Six Months Ended June 30 | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Service cost | $ | 29 | $ | 6 | $ | 32 | $ | 8 | $ | — | $ | 2 | |||||||||||
Interest cost | 53 | 14 | 52 | 14 | 2 | 1 | |||||||||||||||||
Expected return on plan assets | (106 | ) | (26 | ) | (95 | ) | (20 | ) | (2 | ) | (2 | ) | |||||||||||
Amortization of net actuarial loss | — | — | — | 1 | — | — | |||||||||||||||||
Amortization of prior service cost | — | — | — | — | (43 | ) | (46 | ) | |||||||||||||||
Curtailments | — | — | — | (8 | ) | (1 | ) | — | |||||||||||||||
Settlements | 1 | — | — | — | — | — | |||||||||||||||||
Net periodic (benefit) cost | $ | (23 | ) | $ | (6 | ) | $ | (11 | ) | $ | (5 | ) | $ | (44 | ) | $ | (45 | ) |
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, 2018 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Net premiums written | $ | 3,331 | $ | 1,335 | $ | 388 | $ | 2,199 | $ | 197 | $ | 565 | $ | — | $ | 8,015 | |||||||||||||||
Net premiums earned | 3,277 | 1,156 | 351 | 2,161 | 167 | 552 | — | 7,664 | |||||||||||||||||||||||
Losses and loss expenses | 2,084 | 728 | 289 | 1,071 | 83 | 184 | 48 | 4,487 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 150 | — | 150 | |||||||||||||||||||||||
Policy acquisition costs | 448 | 228 | 26 | 584 | 40 | 138 | — | 1,464 | |||||||||||||||||||||||
Administrative expenses | 253 | 68 | 1 | 266 | 9 | 80 | 70 | 747 | |||||||||||||||||||||||
Underwriting income (loss) | 492 | 132 | 35 | 240 | 35 | — | (118 | ) | 816 | ||||||||||||||||||||||
Net investment income (loss) | 510 | 59 | 6 | 155 | 65 | 85 | (52 | ) | 828 | ||||||||||||||||||||||
Other (income) expense | (13 | ) | 1 | 1 | (12 | ) | (6 | ) | 8 | (94 | ) | (115 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | 3 | 7 | 11 | — | — | 64 | 85 | |||||||||||||||||||||||
Segment income (loss) | $ | 1,015 | $ | 187 | $ | 33 | $ | 396 | $ | 106 | $ | 77 | $ | (140 | ) | $ | 1,674 | ||||||||||||||
Net realized gains (losses) including OTTI | 18 | 18 | |||||||||||||||||||||||||||||
Interest expense | 167 | 167 | |||||||||||||||||||||||||||||
Chubb integration expenses | 13 | 13 | |||||||||||||||||||||||||||||
Income tax expense | 218 | 218 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (520 | ) | $ | 1,294 |
North America Commercial P&C Insurance (1) | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance (1) | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | ||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Net premiums written | $ | 3,203 | $ | 1,255 | $ | 403 | $ | 2,007 | $ | 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 |
(1) | The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ($1 million) from the North America Commercial P&C Insurance segment to the Overseas General Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. |
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, 2018 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Net premiums written | $ | 6,143 | $ | 2,383 | $ | 496 | $ | 4,583 | $ | 390 | $ | 1,124 | $ | — | $ | 15,119 | |||||||||||||||
Net premiums earned | 6,306 | 2,296 | 394 | 4,268 | 335 | 1,092 | — | 14,691 | |||||||||||||||||||||||
Losses and loss expenses | 3,992 | 1,614 | 236 | 2,149 | 150 | 389 | 59 | 8,589 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 301 | — | 301 | |||||||||||||||||||||||
Policy acquisition costs | 920 | 465 | 25 | 1,172 | 80 | 266 | — | 2,928 | |||||||||||||||||||||||
Administrative expenses | 484 | 133 | (2 | ) | 505 | 19 | 158 | 142 | 1,439 | ||||||||||||||||||||||
Underwriting income (loss) | 910 | 84 | 135 | 442 | 86 | (22 | ) | (201 | ) | 1,434 | |||||||||||||||||||||
Net investment income (loss) | 1,013 | 118 | 13 | 306 | 129 | 168 | (113 | ) | 1,634 | ||||||||||||||||||||||
Other (income) expense | (19 | ) | 1 | 1 | (5 | ) | (13 | ) | 4 | (131 | ) | (162 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | 6 | 14 | 21 | — | 1 | 128 | 170 | |||||||||||||||||||||||
Segment income (loss) | $ | 1,942 | $ | 195 | $ | 133 | $ | 732 | $ | 228 | $ | 141 | $ | (311 | ) | $ | 3,060 | ||||||||||||||
Net realized gains (losses) including OTTI | 16 | 16 | |||||||||||||||||||||||||||||
Interest expense | 324 | 324 | |||||||||||||||||||||||||||||
Chubb integration expenses | 23 | 23 | |||||||||||||||||||||||||||||
Income tax expense | 353 | 353 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (995 | ) | $ | 2,376 |
North America Commercial P&C Insurance (1) | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance (1) | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | ||||||||||||||||||||||||
For the Six Months Ended | |||||||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Net premiums written | $ | 5,933 | $ | 2,239 | $ | 464 | $ | 4,219 | $ | 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 |
(1) | The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ($13 million) from the North America Commercial P&C Insurance segment to the Overseas General Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars, except share and per share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Numerator: | |||||||||||||||
Net income | $ | 1,294 | $ | 1,305 | $ | 2,376 | $ | 2,398 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per share: | |||||||||||||||
Weighted-average shares outstanding | 465,276,597 | 467,981,077 | 465,488,724 | 468,244,458 | |||||||||||
Denominator for diluted earnings per share: | |||||||||||||||
Share-based compensation plans | 3,103,727 | 3,872,860 | 3,489,013 | 3,900,678 | |||||||||||
Weighted-average shares outstanding and assumed conversions | 468,380,324 | 471,853,937 | 468,977,737 | 472,145,136 | |||||||||||
Basic earnings per share | $ | 2.78 | $ | 2.79 | $ | 5.10 | $ | 5.12 | |||||||
Diluted earnings per share | $ | 2.76 | $ | 2.77 | $ | 5.07 | $ | 5.08 | |||||||
Potential anti-dilutive share conversions | 3,814,491 | 2,066,578 | 3,305,735 | 1,467,556 |
(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 | $ | — | $ | 172 | $ | 101,014 | $ | — | $ | 101,186 | |||||||||
Cash (1) | 1 | 1 | 2,238 | (1,240 | ) | 1,000 | |||||||||||||
Restricted cash | — | — | 101 | — | 101 | ||||||||||||||
Insurance and reinsurance balances receivable | — | — | 11,297 | (956 | ) | 10,341 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 27,117 | (12,325 | ) | 14,792 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,127 | (923 | ) | 204 | |||||||||||||
Value of business acquired | — | — | 311 | — | 311 | ||||||||||||||
Goodwill and other intangible assets | — | — | 21,759 | — | 21,759 | ||||||||||||||
Investments in subsidiaries | 42,919 | 51,706 | — | (94,625 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 8,686 | — | 257 | (8,943 | ) | — | |||||||||||||
Other assets | 2 | 655 | 18,760 | (1,577 | ) | 17,840 | |||||||||||||
Total assets | $ | 51,608 | $ | 52,534 | $ | 183,981 | $ | (120,589 | ) | $ | 167,534 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 73,427 | $ | (10,649 | ) | $ | 62,778 | ||||||||
Unearned premiums | — | — | 16,815 | (1,067 | ) | 15,748 | |||||||||||||
Future policy benefits | — | — | 6,393 | (923 | ) | 5,470 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 8,943 | — | (8,943 | ) | — | |||||||||||||
Affiliated notional cash pooling programs (1) | 403 | 837 | — | (1,240 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,413 | — | 1,413 | ||||||||||||||
Short-term debt | — | 600 | — | — | 600 | ||||||||||||||
Long-term debt | — | 12,173 | 11 | — | 12,184 | ||||||||||||||
Trust preferred securities | — | 308 | — | — | 308 | ||||||||||||||
Other liabilities | 234 | 2,248 | 18,722 | (3,142 | ) | 18,062 | |||||||||||||
Total liabilities | 637 | 25,109 | 116,781 | (25,964 | ) | 116,563 | |||||||||||||
Total shareholders’ equity | 50,971 | 27,425 | 67,200 | (94,625 | ) | 50,971 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 51,608 | $ | 52,534 | $ | 183,981 | $ | (120,589 | ) | $ | 167,534 |
(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, 2018, 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 | $ | — | $ | 168 | $ | 102,276 | $ | — | $ | 102,444 | |||||||||
Cash (1) | 3 | 1 | 839 | (115 | ) | 728 | |||||||||||||
Restricted cash | — | — | 123 | — | 123 | ||||||||||||||
Insurance and reinsurance balances receivable | — | — | 10,820 | (1,486 | ) | 9,334 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 27,514 | (12,480 | ) | 15,034 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,194 | (1,010 | ) | 184 | |||||||||||||
Value of business acquired | — | — | 326 | — | 326 | ||||||||||||||
Goodwill and other intangible assets | — | — | 22,054 | — | 22,054 | ||||||||||||||
Investments in subsidiaries | 41,909 | 51,165 | — | (93,074 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 9,639 | — | — | (9,639 | ) | — | |||||||||||||
Other assets | 3 | 287 | 20,578 | (4,073 | ) | 16,795 | |||||||||||||
Total assets | $ | 51,554 | $ | 51,621 | $ | 185,724 | $ | (121,877 | ) | $ | 167,022 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 74,767 | $ | (11,588 | ) | $ | 63,179 | ||||||||
Unearned premiums | — | — | 18,875 | (3,659 | ) | 15,216 | |||||||||||||
Future policy benefits | — | — | 6,331 | (1,010 | ) | 5,321 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 9,432 | 207 | (9,639 | ) | — | |||||||||||||
Affiliated notional cash pooling programs (1) | — | 115 | — | (115 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,408 | — | 1,408 | ||||||||||||||
Short-term debt | — | 1,013 | — | — | 1,013 | ||||||||||||||
Long-term debt | — | 11,546 | 10 | — | 11,556 | ||||||||||||||
Trust preferred securities | — | 308 | — | — | 308 | ||||||||||||||
Other liabilities | 382 | 1,411 | 18,848 | (2,792 | ) | 17,849 | |||||||||||||
Total liabilities | 382 | 23,825 | 120,446 | (28,803 | ) | 115,850 | |||||||||||||
Total shareholders’ equity | 51,172 | 27,796 | 65,278 | (93,074 | ) | 51,172 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 51,554 | $ | 51,621 | $ | 185,724 | $ | (121,877 | ) | $ | 167,022 |
(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, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Three Months Ended June 30, 2018 | 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 | $ | — | $ | — | $ | 8,015 | $ | — | $ | 8,015 | |||||||||
Net premiums earned | — | — | 7,664 | — | 7,664 | ||||||||||||||
Net investment income | 1 | 5 | 822 | — | 828 | ||||||||||||||
Equity in earnings of subsidiaries | 1,241 | 454 | — | (1,695 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | 2 | 73 | (57 | ) | — | 18 | |||||||||||||
Losses and loss expenses | — | — | 4,487 | — | 4,487 | ||||||||||||||
Policy benefits | — | — | 150 | — | 150 | ||||||||||||||
Policy acquisition costs and administrative expenses | 23 | 19 | 2,169 | — | 2,211 | ||||||||||||||
Interest (income) expense | (76 | ) | 204 | 39 | — | 167 | |||||||||||||
Other (income) expense | (4 | ) | 8 | (119 | ) | — | (115 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 85 | — | 85 | ||||||||||||||
Chubb integration expenses | 2 | — | 11 | — | 13 | ||||||||||||||
Income tax expense (benefit) | 5 | (36 | ) | 249 | — | 218 | |||||||||||||
Net income | $ | 1,294 | $ | 337 | $ | 1,358 | $ | (1,695 | ) | $ | 1,294 | ||||||||
Comprehensive income (loss) | $ | 277 | $ | (462 | ) | $ | 352 | $ | 110 | $ | 277 |
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 Six Months Ended June 30, 2018 | 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 | $ | — | $ | — | $ | 15,119 | $ | — | $ | 15,119 | |||||||||
Net premiums earned | — | — | 14,691 | — | 14,691 | ||||||||||||||
Net investment income | 3 | 9 | 1,622 | — | 1,634 | ||||||||||||||
Equity in earnings of subsidiaries | 2,263 | 1,339 | — | (3,602 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | 49 | (33 | ) | — | 16 | |||||||||||||
Losses and loss expenses | — | — | 8,589 | — | 8,589 | ||||||||||||||
Policy benefits | — | — | 301 | — | 301 | ||||||||||||||
Policy acquisition costs and administrative expenses | 41 | 41 | 4,285 | — | 4,367 | ||||||||||||||
Interest (income) expense | (156 | ) | 413 | 67 | — | 324 | |||||||||||||
Other (income) expense | (9 | ) | 16 | (169 | ) | — | (162 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 170 | — | 170 | ||||||||||||||
Chubb integration expenses | 4 | 1 | 18 | — | 23 | ||||||||||||||
Income tax expense (benefit) | 10 | (95 | ) | 438 | — | 353 | |||||||||||||
Net income | $ | 2,376 | $ | 1,021 | $ | 2,581 | $ | (3,602 | ) | $ | 2,376 | ||||||||
Comprehensive income (loss) | $ | 730 | $ | (246 | ) | $ | 966 | $ | (720 | ) | $ | 730 |
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, 2018 | 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 | $ | 43 | $ | 3,042 | $ | 2,187 | $ | (3,075 | ) | $ | 2,197 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | (22 | ) | (12,275 | ) | — | (12,297 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (337 | ) | — | (337 | ) | ||||||||||||
Purchases of equity securities | — | — | (85 | ) | — | (85 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 6,858 | — | 6,858 | ||||||||||||||
Sales of equity securities | — | — | 83 | — | 83 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | 14 | 3,906 | — | 3,920 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 732 | — | 732 | ||||||||||||||
Net change in short-term investments | — | 6 | 395 | — | 401 | ||||||||||||||
Net derivative instruments settlements | — | (8 | ) | 13 | — | 5 | |||||||||||||
Private equity contributions | — | — | (813 | ) | — | (813 | ) | ||||||||||||
Private equity distributions | — | — | 413 | — | 413 | ||||||||||||||
Capital contribution | (750 | ) | (3,500 | ) | — | 4,250 | — | ||||||||||||
Other | — | (7 | ) | (133 | ) | — | (140 | ) | |||||||||||
Net cash flows used for investing activities | (750 | ) | (3,517 | ) | (1,243 | ) | 4,250 | (1,260 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (661 | ) | — | — | — | (661 | ) | ||||||||||||
Common Shares repurchased | — | — | (347 | ) | — | (347 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 2,171 | — | — | 2,171 | ||||||||||||||
Repayment of long-term debt | — | (1,900 | ) | — | — | (1,900 | ) | ||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 1,014 | — | 1,014 | ||||||||||||||
Repayment of repurchase agreements | — | — | (1,009 | ) | — | (1,009 | ) | ||||||||||||
Proceeds from share-based compensation plans | — | — | 60 | — | 60 | ||||||||||||||
Dividend to parent company | — | — | (3,075 | ) | 3,075 | — | |||||||||||||
Advances (to) from affiliates | 963 | (518 | ) | (445 | ) | — | — | ||||||||||||
Capital contribution | — | — | 4,250 | (4,250 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | 403 | 722 | — | (1,125 | ) | — | |||||||||||||
Policyholder contract deposits | — | — | 192 | — | 192 | ||||||||||||||
Policyholder contract withdrawals | — | — | (169 | ) | — | (169 | ) | ||||||||||||
Net cash flows from (used for) financing activities | 705 | 475 | 471 | (2,300 | ) | (649 | ) | ||||||||||||
Effect of foreign currency rate changes on cash and restricted cash | — | — | (38 | ) | — | (38 | ) | ||||||||||||
Net increase (decrease) in cash and restricted cash | (2 | ) | — | 1,377 | (1,125 | ) | 250 | ||||||||||||
Cash and restricted cash – beginning of period(1) | 3 | 1 | 962 | (115 | ) | 851 | |||||||||||||
Cash and restricted cash – end of period(1) | $ | 1 | $ | 1 | $ | 2,339 | $ | (1,240 | ) | $ | 1,101 |
(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, 2018 and December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
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 cash flows from (used for) 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 | ) | |||||||||||
Private equity contributions | — | — | (345 | ) | — | (345 | ) | ||||||||||||
Private equity distributions | — | — | 487 | — | 487 | ||||||||||||||
Other | — | 2 | (246 | ) | — | (244 | ) | ||||||||||||
Net cash flows from (used for) investing activities | — | 169 | (46 | ) | — | 123 | |||||||||||||
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 proceeds from 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 restricted cash | — | — | 11 | — | 11 | ||||||||||||||
Net increase (decrease) in cash and restricted cash | (1 | ) | 166 | (623 | ) | 789 | 331 | ||||||||||||
Cash and restricted cash – beginning of period(1) | 1 | 1 | 2,068 | (982 | ) | 1,088 | |||||||||||||
Cash and restricted cash – end of period(1) | $ | — | $ | 167 | $ | 1,445 | $ | (193 | ) | $ | 1,419 |
(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. |
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 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; |
• | the ability of our company to increase use of data analytics and technology as part of our business strategy and adapt to new technologies; 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, 2018 |
• | Net income was $1,294 million compared with $1,305 million in the prior year period. |
• | Total company and P&C net premiums written were $8.0 billion and $7.5 billion, respectively, up 5.7 percent and 5.6 percent. |
• | P&C combined ratio was 88.4 percent compared with 88.0 percent prior year. The year-over-year increase in large structured transactions adversely impacted the P&C combined ratio in the current year by 0.3 percentage points, comprising a 1.0 percentage point increase in the loss ratio and a 0.7 percentage points decrease in the expense ratio. |
• | Total pre-tax and after-tax catastrophe losses were $211 million (3.0 percentage points of the combined ratio) and $173 million, respectively, compared with $200 million (3.0 percentage points of the combined ratio) and $152 million, respectively, last year. |
• | Total pre-tax and after-tax favorable prior period development were $191 million (2.7 percentage points of the combined ratio) and $158 million, respectively, compared with $170 million (2.5 percentage points of the combined ratio) and $144 million, respectively, last year. |
• | Net investment income was $828 million compared with $770 million in the prior year period. Excluding the amortization of the fair value adjustment on acquired invested assets of The Chubb Corporation (Chubb Corp), net investment income was $890 million, compared with $855 million, up 4.0 percent. |
• | Share repurchases totaled $324 million, or approximately 2.4 million shares, during the quarter. |
Consolidated Operating Results – Three and Six Months Ended June 30, 2018 and 2017 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | Q-18 vs. Q-17 | 2018 | 2017 | YTD-18 vs. YTD-17 | |||||||||||||||
Net premiums written (1) | $ | 8,015 | $ | 7,581 | 5.7 | % | $ | 15,119 | $ | 14,291 | 5.8 | % | |||||||||
Net premiums earned (1) | 7,664 | 7,237 | 5.9 | % | 14,691 | 14,009 | 4.9 | % | |||||||||||||
Net investment income | 828 | 770 | 7.4 | % | 1,634 | 1,515 | 7.8 | % | |||||||||||||
Net realized gains (losses) | 18 | 101 | (82.2 | )% | 16 | 94 | (83.0 | )% | |||||||||||||
Total revenues | 8,510 | 8,108 | 5.0 | % | 16,341 | 15,618 | 4.6 | % | |||||||||||||
Losses and loss expenses | 4,487 | 4,146 | 8.2 | % | 8,589 | 7,935 | 8.2 | % | |||||||||||||
Policy benefits | 150 | 163 | (8.0 | )% | 301 | 331 | (9.1 | )% | |||||||||||||
Policy acquisition costs | 1,464 | 1,449 | 1.0 | % | 2,928 | 2,846 | 2.9 | % | |||||||||||||
Administrative expenses | 747 | 706 | 5.8 | % | 1,439 | 1,382 | 4.1 | % | |||||||||||||
Interest expense | 167 | 147 | 13.6 | % | 324 | 301 | 7.6 | % | |||||||||||||
Other (income) expense | (115 | ) | (145 | ) | (20.7 | )% | (162 | ) | (215 | ) | (24.7 | )% | |||||||||
Amortization of purchased intangibles | 85 | 65 | 30.8 | % | 170 | 129 | 31.8 | % | |||||||||||||
Chubb integration expenses | 13 | 72 | (81.9 | )% | 23 | 183 | (87.4 | )% | |||||||||||||
Total expenses | 6,998 | 6,603 | 6.0 | % | 13,612 | 12,892 | 5.6 | % | |||||||||||||
Income before income tax | 1,512 | 1,505 | 0.5 | % | 2,729 | 2,726 | 0.1 | % | |||||||||||||
Income tax expense | 218 | 200 | 9.0 | % | 353 | 328 | 7.6 | % | |||||||||||||
Net income | $ | 1,294 | $ | 1,305 | (0.8 | )% | $ | 2,376 | $ | 2,398 | (0.9 | )% |
(1) | On a constant-dollar basis for the three and six months ended June 30, 2018, net premiums written increased $327 million, or 4.3 percent, and $566 million, or 3.9 percent, respectively, and net premiums earned increased $306 million, or 4.2 percent and increased $435 million, or 3.1 percent, 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 increased $128 million and $210 million for the three and six months ended June 30, 2018, respectively, reflecting positive rate increases across a number of lines in both our Major account and middle market businesses, growth in our retail casualty businesses from strong new business increases in both our large corporate and middle market accounts, and the year-over-year increase in large structured transactions ($135 million and $155 million, respectively). For the six months ended June 30, 2018 the increase was also due to growth in our retail workers' compensation business due to stronger retention. These increases were partially offset by planned portfolio management in certain of our retail and wholesale brokerage financial lines. |
• | Net premiums written in our North America Personal P&C Insurance segment increased $80 million and $144 million for the three and six months ended June 30, 2018, respectively, primarily due to strong retention and new business growth in homeowners and complementary products such as automobiles and valuables. In addition, for the six months ended June 30, 2018, the non-renewal of a quota share treaty in the second quarter of 2017 covering the acquired Fireman's Fund homeowners and automobile businesses ($38 million) added to growth. |
• | Net premiums written in our North America Agricultural Insurance segment decreased $15 million for the three months ended June 30, 2018 primarily due to lower volatility factors, which are a component of the 2018 policy pricing that measures the likelihood the commodity price will fluctuate over the crop year, partially offset by policy count growth in our Crop business and growth in our Chubb Agribusiness unit driven by strong retention. Net premiums written increased $32 million for the six months ended June 30, 2018, primarily due to an increase in MPCI premium which was driven in part by higher new business and the year-over-year impact of the premium sharing formulas under the U.S. government. Under the MPCI profit and loss calculation, we cede additional premiums to the government during profitable years. In the prior year, the program was more profitable which resulted in higher cessions compared to 2018. |
• | Net premiums written in our Overseas General Insurance segment increased $192 million and $364 million, or $107 million and $140 million on a constant-dollar basis, for the three and six months ended June 30, 2018, respectively, reflecting growth across most regions and lines of business. Personal lines growth was principally in our automobile line in Mexico driven by new business, as well as in our specialty lines in Asia. P&C lines growth was across all regions, principally in small commercial property and general casualty lines reflecting new business, and in middle market driven by new business and rate increases. This growth was offset by declines in large account business. Accident and health (A&H) lines growth was principally in Asia driven by new business. |
• | Net premiums written in our Global Reinsurance segment increased $7 million and $1 million, or increased $3 million and decreased $7 million on a constant-dollar basis for the three and six months ended June 30, 2018, respectively, primarily due to new business written in casualty and property lines, partially offset by lower renewals, reflecting competitive market conditions. In addition, the prior year included a $7 million favorable non-recurring reinstatement premium adjustment related to prior period loss development. |
• | Net premiums written in our Life Insurance segment increased $42 million and $77 million, or $35 million and $61 million on a constant-dollar basis, for the three and six months ended June 30, 2018, respectively, primarily due to growth in our Asian international life operations and North American Combined Insurance supplemental A&H program business. This increase was partially offset by our life reinsurance business, which continues to decline as no new life reinsurance business is currently being written. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
June 30 | June 30 | ||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | % Change Q-18 vs. Q-17 | C$ (1) 2017 | C$ (1) % Change Q-18 vs. Q-17 | 2018 | 2017 | % Change YTD-18 vs. YTD-17 | C$ (1) 2017 | C$ (1) % Change YTD-18 vs. YTD-17 | |||||||||||||||||
Commercial casualty | $ | 1,446 | $ | 1,221 | 18.4 | % | $ | 1,238 | 16.8 | % | $ | 2,591 | $ | 2,270 | 14.1 | % | $ | 2,309 | 12.2 | % | |||||||
Workers' compensation | 450 | 478 | (5.9 | )% | 479 | (6.1 | )% | 1,074 | 1,066 | 0.8 | % | 1,067 | 0.7 | % | |||||||||||||
Professional liability | 889 | 900 | (1.2 | )% | 918 | (3.2 | )% | 1,662 | 1,663 | (0.1 | )% | 1,725 | (3.7 | )% | |||||||||||||
Surety | 161 | 153 | 5.2 | % | 154 | 4.5 | % | 322 | 303 | 6.3 | % | 307 | 4.9 | % | |||||||||||||
Commercial multiple peril (2) | 243 | 227 | 7.0 | % | 227 | 7.0 | % | 444 | 428 | 3.7 | % | 428 | 3.7 | % | |||||||||||||
Property and other short-tail lines | 1,032 | 1,055 | (2.2 | )% | 1,070 | (3.6 | )% | 2,072 | 2,099 | (1.3 | )% | 2,123 | (2.4 | )% | |||||||||||||
Total Commercial P&C | 4,221 | 4,034 | 4.6 | % | 4,086 | 3.3 | % | 8,165 | 7,829 | 4.3 | % | 7,959 | 2.6 | % | |||||||||||||
Agriculture | 388 | 403 | (3.7 | )% | 403 | (3.7 | )% | 496 | 464 | 6.8 | % | 464 | 6.8 | % | |||||||||||||
Personal automobile - North America | 229 | 209 | 9.6 | % | 210 | 9.0 | % | 413 | 374 | 10.4 | % | 376 | 9.8 | % | |||||||||||||
Personal automobile - International | 227 | 188 | 20.7 | % | 191 | 18.8 | % | 441 | 374 | 17.9 | % | 389 | 13.4 | % | |||||||||||||
Personal homeowners | 982 | 925 | 6.2 | % | 929 | 5.7 | % | 1,720 | 1,622 | 6.0 | % | 1,628 | 5.7 | % | |||||||||||||
Personal other | 389 | 363 | 7.2 | % | 376 | 3.5 | % | 776 | 725 | 7.0 | % | 754 | 2.9 | % | |||||||||||||
Total Personal lines | 1,827 | 1,685 | 8.4 | % | 1,706 | 7.1 | % | 3,350 | 3,095 | 8.2 | % | 3,147 | 6.5 | % | |||||||||||||
Total Property and Casualty lines | 6,436 | 6,122 | 5.1 | % | 6,195 | 3.9 | % | 12,011 | 11,388 | 5.5 | % | 11,570 | 3.8 | % | |||||||||||||
Global A&H lines (3) | 1,116 | 1,025 | 8.9 | % | 1,051 | 6.2 | % | 2,188 | 2,019 | 8.4 | % | 2,080 | 5.2 | % | |||||||||||||
Reinsurance lines | 197 | 190 | 3.8 | % | 194 | 1.5 | % | 390 | 389 | 0.4 | % | 397 | (1.7 | )% | |||||||||||||
Life | 266 | 244 | 9.0 | % | 248 | 7.3 | % | 530 | 495 | 7.1 | % | 506 | 4.7 | % | |||||||||||||
Total consolidated | $ | 8,015 | $ | 7,581 | 5.7 | % | $ | 7,688 | 4.3 | % | $ | 15,119 | $ | 14,291 | 5.8 | % | $ | 14,553 | 3.9 | % |
(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) | Commercial multiple peril represents retail package business (property and general liability). |
(3) | 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 | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Loss and loss expense ratio | 60.4 | % | 59.0 | % | 60.2 | % | 58.2 | % | |||
Policy acquisition cost ratio | 18.6 | % | 19.6 | % | 19.6 | % | 20.0 | % | |||
Administrative expense ratio | 9.4 | % | 9.4 | % | 9.4 | % | 9.6 | % | |||
P&C combined ratio | 88.4 | % | 88.0 | % | 89.2 | % | 87.8 | % |
• | The year-over-year increase in large structured transactions (1.0 percentage point and 0.5 percentage points, respectively); |
• | Favorable claims handling expense adjustments in the second quarter of 2017, which benefited the prior year loss ratio (0.6 percentage points and 0.3 percentage points, respectively); |
• | Partially offset by integration-related claims handling expense savings realized ($17 million, or 0.3 percentage points, and $34 million, or 0.3 percentage points, respectively). In addition, the loss and loss expense ratio for the six months ended June 30, 2018 was also unfavorably impacted by higher catastrophe losses in the current year. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Catastrophe losses, pre-tax | $ | 211 | $ | 200 | $ | 591 | $ | 406 | |||||||
Favorable prior period development net of related reinstatement premiums, pre-tax | $ | 191 | $ | 170 | $ | 400 | $ | 401 |
• | 2018: Severe weather-related events in the U.S., including California mudslides and Northeast winter storms, and in Asia Pacific and Europe. |
• | 2017: Severe weather-related events in the U.S., Cyclone Debbie in Australia and flooding in Latin America. |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Loss and loss expense ratio | 60.4 | % | 59.0 | % | 60.2 | % | 58.2 | % | |||
Catastrophe losses and related reinstatement premiums | (3.0 | )% | (3.0 | )% | (4.3 | )% | (3.1 | )% | |||
Prior period development net of related reinstatement premiums | 2.6 | % | 2.6 | % | 3.0 | % | 3.3 | % | |||
CAY loss ratio excluding catastrophe losses | 60.0 | % | 58.6 | % | 58.9 | % | 58.4 | % |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
CAY Loss and loss expense ratio ex CATs | 60.0 | % | 58.6 | % | 58.9 | % | 58.4 | % | |||
CAY Policy acquisition cost ratio ex CATs | 18.7 | % | 19.6 | % | 19.5 | % | 19.9 | % | |||
CAY Administrative expense ratio ex CATs | 9.4 | % | 9.3 | % | 9.4 | % | 9.5 | % | |||
CAY P&C combined ratio ex CATs | 88.1 | % | 87.5 | % | 87.8 | % | 87.8 | % |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
P&C Combined Ratio | 88.4 | % | 88.0 | % | 89.2 | % | 87.8 | % | |||
Less: CATs above (below) an expected level | (0.2 | )% | (0.2 | )% | 1.2 | % | — | ||||
P&C combined ratio with an expected level of CATs | 88.6 | % | 88.2 | % | 88.0 | % | 87.8 | % | |||
Less: Prior period development net of related reinstatement premiums | (2.7 | )% | (2.5 | )% | (3.0 | )% | (3.1 | )% | |||
CAY P&C Combined ratio with an expected level of CATs | 91.3 | % | 90.7 | % | 91.0 | % | 90.9 | % |
Segment Operating Results – Three and Six Months Ended June 30, 2018 and 2017 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | Q-18 vs. Q-17 | 2018 | 2017 | YTD-18 vs. YTD-17 | |||||||||||||||||||
Net premiums written (1) | $ | 3,331 | $ | 3,203 | 4.0 | % | $ | 6,143 | $ | 5,933 | 3.5 | % | |||||||||||||
Net premiums earned | 3,277 | 3,099 | 5.8 | % | 6,306 | 6,140 | 2.7 | % | |||||||||||||||||
Losses and loss expenses | 2,084 | 1,936 | 7.6 | % | 3,992 | 3,796 | 5.2 | % | |||||||||||||||||
Policy acquisition costs | 448 | 464 | (3.4 | )% | 920 | 951 | (3.3 | )% | |||||||||||||||||
Administrative expenses | 253 | 241 | 5.0 | % | 484 | 472 | 2.5 | % | |||||||||||||||||
Underwriting income | 492 | 458 | 7.4 | % | 910 | 921 | (1.2 | )% | |||||||||||||||||
Net investment income | 510 | 490 | 4.1 | % | 1,013 | 968 | 4.6 | % | |||||||||||||||||
Other (income) expense | (13 | ) | (4 | ) | 225.0 | % | (19 | ) | — | NM | |||||||||||||||
Segment income | $ | 1,015 | $ | 952 | 6.6 | % | $ | 1,942 | $ | 1,889 | 2.8 | % | |||||||||||||
Loss and loss expense ratio | 63.6 | % | 62.5 | % | 1.1 | pts | 63.3 | % | 61.8 | % | 1.5 | pts | |||||||||||||
Policy acquisition cost ratio | 13.7 | % | 15.0 | % | (1.3 | ) | pts | 14.6 | % | 15.5 | % | (0.9 | ) | pts | |||||||||||
Administrative expense ratio | 7.7 | % | 7.7 | % | — | pts | 7.7 | % | 7.7 | % | — | pts | |||||||||||||
Combined ratio | 85.0 | % | 85.2 | % | (0.2 | ) | pts | 85.6 | % | 85.0 | % | 0.6 | pts |
(1) | The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ($1 million and $13 million, for the three and six months ended, respectively) to the Overseas General Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Catastrophe losses, pre-tax | $ | 73 | $ | 102 | $ | 151 | $ | 185 | |||||||
Favorable prior period development net of related reinstatement premiums, pre-tax | $ | 155 | $ | 131 | $ | 256 | $ | 310 |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Loss and loss expense ratio | 63.6 | % | 62.5 | % | 63.3 | % | 61.8 | % | |||
Catastrophe losses and related reinstatement premiums | (2.2 | )% | (3.3 | )% | (2.4 | )% | (3.0 | )% | |||
Prior period development net of related reinstatement premiums | 4.6 | % | 4.2 | % | 4.1 | % | 5.1 | % | |||
CAY loss ratio excluding catastrophe losses | 66.0 | % | 63.4 | % | 65.0 | % | 63.9 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | Q-18 vs. Q-17 | 2018 | 2017 | YTD-18 vs. YTD-17 | |||||||||||||||||||
Net premiums written | $ | 1,335 | $ | 1,255 | 6.4 | % | $ | 2,383 | $ | 2,239 | 6.4 | % | |||||||||||||
Net premiums earned | 1,156 | 1,093 | 5.6 | % | 2,296 | 2,179 | 5.3 | % | |||||||||||||||||
Losses and loss expenses | 728 | 683 | 6.6 | % | 1,614 | 1,316 | 22.6 | % | |||||||||||||||||
Policy acquisition costs | 228 | 230 | (0.9 | )% | 465 | 447 | 4.0 | % | |||||||||||||||||
Administrative expenses | 68 | 66 | 3.0 | % | 133 | 131 | 1.5 | % | |||||||||||||||||
Underwriting income | 132 | 114 | 15.8 | % | 84 | 285 | (70.5 | )% | |||||||||||||||||
Net investment income | 59 | 56 | 5.4 | % | 118 | 111 | 6.3 | % | |||||||||||||||||
Other (income) expense | 1 | 1 | — | 1 | 2 | (50.0 | )% | ||||||||||||||||||
Amortization of purchased intangibles | 3 | 5 | (40.0 | )% | 6 | 8 | (25.0 | )% | |||||||||||||||||
Segment income | $ | 187 | $ | 164 | 14.0 | % | $ | 195 | $ | 386 | (49.5 | )% | |||||||||||||
Loss and loss expense ratio | 63.0 | % | 62.4 | % | 0.6 | pts | 70.3 | % | 60.4 | % | 9.9 | pts | |||||||||||||
Policy acquisition cost ratio | 19.7 | % | 21.1 | % | (1.4 | ) | pts | 20.2 | % | 20.5 | % | (0.3 | ) | pts | |||||||||||
Administrative expense ratio | 5.9 | % | 6.1 | % | (0.2 | ) | pts | 5.8 | % | 6.0 | % | (0.2 | ) | pts | |||||||||||
Combined ratio | 88.6 | % | 89.6 | % | (1.0 | ) | pts | 96.3 | % | 86.9 | % | 9.4 | pts |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Catastrophe losses, pre-tax | $ | 101 | $ | 77 | $ | 385 | $ | 145 | |||||||
Favorable (unfavorable) prior period development net of related reinstatement premiums, pre-tax | $ | (7 | ) | $ | (37 | ) | $ | (1 | ) | $ | (34 | ) |
• | 2018: California mudslides and Northeast winter storms. |
• | 2017: Severe weather-related events in the U.S. |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Loss and loss expense ratio | 63.0 | % | 62.4 | % | 70.3 | % | 60.4 | % | |||
Catastrophe losses and related reinstatement premiums | (8.7 | )% | (7.0 | )% | (16.8 | )% | (6.7 | )% | |||
Prior period development net of related reinstatement premiums | (0.6 | )% | (3.3 | )% | — | (1.5 | )% | ||||
CAY loss ratio excluding catastrophe losses | 53.7 | % | 52.1 | % | 53.5 | % | 52.2 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | Q-18 vs. Q-17 | 2018 | 2017 | YTD-18 vs. YTD-17 | |||||||||||||||||||
Net premiums written | $ | 388 | $ | 403 | (3.7 | )% | $ | 496 | $ | 464 | 6.8 | % | |||||||||||||
Net premiums earned | 351 | 344 | 2.2 | % | 394 | 358 | 10.3 | % | |||||||||||||||||
Losses and loss expenses (1) | 281 | 292 | (3.8 | )% | 226 | 219 | 3.2 | % | |||||||||||||||||
Policy acquisition costs | 26 | 27 | (3.7 | )% | 25 | 26 | (3.8 | )% | |||||||||||||||||
Administrative expenses | 1 | 2 | (50.0 | )% | (2 | ) | (3 | ) | (33.3 | )% | |||||||||||||||
Underwriting income | 43 | 23 | 87.0 | % | 145 | 116 | 25.0 | % | |||||||||||||||||
Net investment income | 6 | 6 | — | 13 | 12 | 8.3 | % | ||||||||||||||||||
Other (income) expense | 1 | 1 | — | 1 | 1 | — | |||||||||||||||||||
Amortization of purchased intangibles | 7 | 7 | — | 14 | 14 | — | |||||||||||||||||||
Segment income | $ | 41 | $ | 21 | 95.2 | % | $ | 143 | $ | 113 | 26.5 | % | |||||||||||||
Loss and loss expense ratio | 80.0 | % | 85.2 | % | (5.2 | ) | pts | 57.4 | % | 61.3 | % | (3.9 | ) | pts | |||||||||||
Policy acquisition cost ratio | 7.4 | % | 7.7 | % | (0.3 | ) | pts | 6.3 | % | 7.2 | % | (0.9 | ) | pts | |||||||||||
Administrative expense ratio | 0.5 | % | 0.4 | % | 0.1 | pts | (0.4 | )% | (0.8 | )% | 0.4 | pts | |||||||||||||
Combined ratio | 87.9 | % | 93.3 | % | (5.4 | ) | pts | 63.3 | % | 67.7 | % | (4.4 | ) | pts |
(1) | Gains (losses) on crop derivatives were $8 million and $10 million for the three and six months ended June 30, 2018, respectively. Gains (losses) on crop derivatives were $(2) million for both the three and six months ended June 30, 2017. These gains (losses) are included in Net realized gains (losses) in our Consolidated statements of operations but are reclassified to Losses and loss expenses for purposes of presenting North America Agricultural Insurance underwriting income. |
Three Months Ended | Six Months Ended | |||||||||||||
June 30 | June 30 | |||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | ||||||||||
Catastrophe losses, pre-tax | $ | 2 | $ | 8 | $ | 3 | $ | 13 | ||||||
Favorable prior period development net of related reinstatement premiums, pre-tax | $ | — | $ | — | $ | 76 | $ | 79 |
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Loss and loss expense ratio | 80.0 | % | 85.2 | % | 57.4 | % | 61.3 | % | |||
Catastrophe losses and related reinstatement premiums | (0.7 | )% | (2.2 | )% | (0.8 | )% | (3.5 | )% | |||
Prior period development net of related reinstatement premiums | — | — | 20.7 | % | 23.9 | % | |||||
CAY loss ratio excluding catastrophe losses | 79.3 | % | 83.0 | % | 77.3 | % | 81.7 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30 | % Change | June 30 | % Change | |||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | Q-18 vs. Q-17 | 2018 | 2017 | YTD-18 vs. YTD-17 | ||||||||||||||||||
Net premiums written (1) | $ | 2,199 | $ | 2,007 | 9.6 | % | $ | 4,583 | $ | 4,219 | 8.6 | % | ||||||||||||
Net premiums earned | 2,161 | 2,018 | 7.1 | % | 4,268 | 3,954 | 7.9 | % | ||||||||||||||||
Losses and loss expenses | 1,071 | 964 | 11.1 | % | 2,149 | 2,035 | 5.6 | % | ||||||||||||||||
Policy acquisition costs | 584 | 555 | 5.2 | % | 1,172 | 1,084 | 8.1 | % | ||||||||||||||||
Administrative expenses | 266 | 243 | 9.5 | % | 505 | 488 | 3.5 | % | ||||||||||||||||
Underwriting income (2) | 240 | 256 | (6.3 | )% | 442 | 347 | 27.4 | % | ||||||||||||||||
Net investment income | 155 | 148 | 4.7 | % | 306 | 296 | 3.4 | % | ||||||||||||||||
Other (income) expense | (12 | ) | (3 | ) | 300.0 | % | (5 | ) | (4 | ) | 25.0 | % | ||||||||||||
Amortization of purchased intangibles | 11 | 11 | — | 21 | 22 | (4.5 | )% | |||||||||||||||||
Segment income | $ | 396 | $ | 396 | — | $ | 732 | $ | 625 | 17.1 | % | |||||||||||||
Loss and loss expense ratio | 49.6 | % | 47.8 | % | 1.8 | pts | 50.4 | % | 51.5 | % | (1.1 | ) | pts | |||||||||||
Policy acquisition cost ratio | 27.0 | % | 27.5 | % | (0.5 | ) | pts | 27.4 | % | 27.4 | % | — | pts | |||||||||||
Administrative expense ratio | 12.3 | % | 12.0 | % | 0.3 | pts | 11.8 | % | 12.3 | % | (0.5 | ) | pts | |||||||||||
Combined ratio | 88.9 | % | 87.3 | % | 1.6 | pts | 89.6 | % | 91.2 | % | (1.6 | ) | pts |
(1) | On a constant-dollar basis, for the three and six months ended June 30, 2018, net premiums written increased $107 million and $140 million, or 5.1 percent and 3.1 percent, respectively. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period. The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ($1 million and $13 million, for the three and six months ended, respectively) from the North America Commercial P&C Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. |
(2) | On a constant-dollar basis, for the three and six months ended June 30, 2018, underwriting income decreased $36 million, or 13.1 percent, and increased $63 million, or 16.7 percent, respectively. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period. |
Three Months Ended June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2018 % of Total | 2017 | 2017 % of Total | C$ (1) 2017 | Q-18 vs. Q-17 | C$ (1) Q-18 vs. Q-17 | ||||||||||||||||
Region | |||||||||||||||||||||||
Europe | $ | 804 | 37 | % | $ | 726 | 36 | % | $ | 793 | 10.7 | % | 1.4 | % | |||||||||
Latin America | 550 | 25 | % | 508 | 25 | % | 494 | 8.3 | % | 11.3 | % | ||||||||||||
Asia | 764 | 35 | % | 673 | 34 | % | 701 | 13.5 | % | 9.0 | % | ||||||||||||
Other (2) | 81 | 3 | % | 100 | 5 | % | 104 | (19.0 | )% | (22.1 | )% | ||||||||||||
Net premiums written | $ | 2,199 | 100 | % | $ | 2,007 | 100 | % | $ | 2,092 | 9.6 | % | 5.1 | % |
(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) | Combined International, Eurasia and Africa region, and other international. The 2017 net premiums written as reported and constant-dollar amounts were revised to reflect the transfer of certain multinational accounts ($1 million for the three months ended) from the North America Commercial P&C Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. |
Six Months Ended June 30 | % Change | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2018 % of Total | 2017 | 2017 % of Total | C$ (1) 2017 | YTD-18 vs. YTD-17 | C$ (1) YTD-18 vs. YTD-17 | ||||||||||||||||
Region | |||||||||||||||||||||||
Europe | $ | 1,914 | 42 | % | $ | 1,756 | 42 | % | $ | 1,921 | 9.0 | % | (0.4 | )% | |||||||||
Latin America | 1,078 | 24 | % | 1,005 | 24 | % | 1,001 | 7.3 | % | 7.7 | % | ||||||||||||
Asia | 1,421 | 31 | % | 1,250 | 30 | % | 1,305 | 13.7 | % | 8.9 | % | ||||||||||||
Other (2) | 170 | 3 | % | 208 | 4 | % | 216 | (18.3 | )% | (21.3 | )% | ||||||||||||
Net premiums written | $ | 4,583 | 100 | % | $ | 4,219 | 100 | % | $ | 4,443 | 8.6 | % | 3.1 | % |
(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) | Combined International, Eurasia and Africa region, and other international. The 2017 net premiums written as reported and constant-dollar amounts were revised to reflect the transfer of certain multinational accounts ($13 million for the six months ended) from the North America Commercial P&C Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Catastrophe losses, pre-tax | $ | 26 | $ | 10 | $ | 41 | $ | 60 | |||||||
Favorable prior period development net of related reinstatement premiums, pre-tax | $ | 72 | $ | 88 | $ | 94 | $ | 76 |
• | 2018: Severe weather-related events in Asia Pacific and Europe |
• | 2017: Cyclone Debbie in Australia and flooding in Latin America |
Three Months Ended | Six Months Ended | |||||||||
June 30 | June 30 | |||||||||
2018 | 2017 | 2018 | 2017 | |||||||
Loss and loss expense ratio | 49.6 | % | 47.8 | % | 50.4 | % | 51.5 | % | ||
Catastrophe losses and related reinstatement premiums | (1.2 | )% | (0.5 | )% | (1.0 | )% | (1.6 | )% | ||
Prior period development net of related reinstatement premiums | 3.3 | % | 4.3 | % | 2.2 | % | 2.0 | % | ||
CAY loss ratio excluding catastrophe losses | 51.7 | % | 51.6 | % | 51.6 | % | 51.9 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30 | % Change | June 30 | % Change | |||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | Q-18 vs. Q-17 | 2018 | 2017 | YTD-18 vs. YTD-17 | ||||||||||||||||
Net premiums written | $ | 197 | $ | 190 | 3.8 | % | $ | 390 | $ | 389 | 0.4 | % | ||||||||||
Net premiums earned | 167 | 168 | (0.6 | )% | 335 | 357 | (6.1 | )% | ||||||||||||||
Losses and loss expenses | 83 | 46 | 80.4 | % | 150 | 140 | 7.1 | % | ||||||||||||||
Policy acquisition costs | 40 | 43 | (7.0 | )% | 80 | 94 | (14.9 | )% | ||||||||||||||
Administrative expenses | 9 | 12 | (25.0 | )% | 19 | 22 | (13.6 | )% | ||||||||||||||
Underwriting income | 35 | 67 | (47.8 | )% | 86 | 101 | (14.9 | )% | ||||||||||||||
Net investment income | 65 | 65 | — | 129 | 127 | 1.6 | % | |||||||||||||||
Other (income) expense | (6 | ) | 1 | NM | (13 | ) | 1 | NM | ||||||||||||||
Segment income | $ | 106 | $ | 131 | (19.1 | )% | $ | 228 | $ | 227 | 0.4 | % | ||||||||||
Loss and loss expense ratio | 49.4 | % | 27.8 | % | 21.6 | pts | 44.8 | % | 39.3 | % | 5.5 | pts | ||||||||||
Policy acquisition cost ratio | 24.2 | % | 25.7 | % | (1.5) | pts | 23.9 | % | 26.3 | % | (2.4) | pts | ||||||||||
Administrative expense ratio | 5.7 | % | 6.7 | % | (1.0) | pt | 5.7 | % | 6.2 | % | (0.5) | pts | ||||||||||
Combined ratio | 79.3 | % | 60.2 | % | 19.1 | pts | 74.4 | % | 71.8 | % | 2.6 | pts |
Three Months Ended | Six Months Ended | |||||||||||||
June 30 | June 30 | |||||||||||||
(in millions of U.S dollars) | 2018 | 2017 | 2018 | 2017 | ||||||||||
Catastrophe losses, pre-tax | $ | 9 | $ | 3 | $ | 11 | $ | 3 | ||||||
Favorable prior period development net of related reinstatement premiums and acquisition expense adjustments, pre-tax (1) (2) | $ | 16 | $ | 31 | $ | 30 | $ | 23 | ||||||
(1) Favorable (unfavorable) reinstatement premiums receivable on prior period development - pre-tax | $ | (2 | ) | $ | — | $ | (3 | ) | $ | 7 | ||||
(2) Favorable acquisition expense adjustment payable on prior period development - pre-tax | $ | 1 | $ | — | $ | 1 | $ | — |
Three Months Ended | Six Months Ended | |||||||||
June 30 | June 30 | |||||||||
2018 | 2017 | 2018 | 2017 | |||||||
Loss and loss expense ratio | 49.4 | % | 27.8 | % | 44.8 | % | 39.3 | % | ||
Catastrophe losses and related reinstatement premiums | (5.4 | )% | (1.9 | )% | (3.3 | )% | (0.8 | )% | ||
Prior period development net of related reinstatement premiums and acquisition expense adjustments | 9.0 | % | 18.5 | % | 8.9 | % | 5.3 | % | ||
CAY loss ratio excluding catastrophe losses | 53.0 | % | 44.4 | % | 50.4 | % | 43.8 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | Q-18 vs. Q-17 | 2018 | 2017 | YTD-18 vs. YTD -17 | |||||||||||||||
Net premiums written | $ | 565 | $ | 523 | 8.0 | % | $ | 1,124 | $ | 1,047 | 7.4 | % | |||||||||
Net premiums earned | 552 | 515 | 7.2 | % | 1,092 | 1,021 | 7.0 | % | |||||||||||||
Losses and loss expenses | 184 | 182 | 1.1 | % | 389 | 375 | 3.7 | % | |||||||||||||
Policy benefits (1) | 150 | 163 | (8.0 | )% | 301 | 331 | (9.1 | )% | |||||||||||||
(Gains) losses from fair value changes in separate account assets (1) | 10 | (16 | ) | NM | 4 | (46 | ) | NM | |||||||||||||
Policy acquisition costs | 138 | 130 | 6.2 | % | 266 | 244 | 9.0 | % | |||||||||||||
Administrative expenses | 80 | 77 | 3.9 | % | 158 | 149 | 6.0 | % | |||||||||||||
Net investment income | 85 | 77 | 10.4 | % | 168 | 152 | 10.5 | % | |||||||||||||
Life Insurance underwriting income | 75 | 56 | 33.9 | % | 142 | 120 | 18.3 | % | |||||||||||||
Other (income) expense (1) | (2 | ) | 4 | NM | — | 5 | NM | ||||||||||||||
Amortization of purchased intangibles | — | — | — | 1 | 1 | — | |||||||||||||||
Segment income | $ | 77 | $ | 52 | 48.1 | % | $ | 141 | $ | 114 | 23.7 | % |
(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) | 2018 | 2017 | C$ (1) 2017 | Q-18 vs. Q-17 | C$ (1) Q-18 vs. Q-17 | 2018 | 2017 | C$ (1) 2017 | Y-18 vs. Y-17 | C$ (1) Y-18 vs. Y-17 | |||||||||||||||||||||||||
Deposits collected on Universal life and investment contracts | $ | 392 | $ | 316 | $ | 324 | 24.1 | % | 21.1 | % | $ | 771 | $ | 626 | $ | 648 | 23.0 | % | 19.0 | % |
(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. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30 | % Change | June 30 | % Change | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2018 | 2017 | Q-18 vs. Q-17 | 2018 | 2017 | YTD-18 vs. YTD-17 | |||||||||||||||
Losses and loss expenses | $ | 48 | $ | 45 | 6.7 | % | $ | 59 | $ | 56 | 5.4 | % | |||||||||
Administrative expenses | 70 | 65 | 7.7 | % | 142 | 123 | 15.4 | % | |||||||||||||
Underwriting loss | 118 | 110 | 7.3 | % | 201 | 179 | 12.3 | % | |||||||||||||
Net investment income (loss) | (52 | ) | (72 | ) | (27.8 | )% | (113 | ) | (151 | ) | (25.2 | )% | |||||||||
Interest expense | 167 | 147 | 13.6 | % | 324 | 301 | 7.6 | % | |||||||||||||
Net realized gains (losses) | 10 | 101 | (90.1 | )% | 6 | 94 | (93.6 | )% | |||||||||||||
Other (income) expense | (94 | ) | (129 | ) | (27.1 | )% | (131 | ) | (174 | ) | (24.7 | )% | |||||||||
Amortization expense of purchased intangibles | 64 | 42 | 52.4 | % | 128 | 84 | 52.4 | % | |||||||||||||
Chubb integration expenses | 13 | 72 | (81.9 | )% | 23 | 183 | (87.4 | )% | |||||||||||||
Income tax expense | 218 | 200 | 9.0 | % | 353 | 328 | 7.6 | % | |||||||||||||
Net loss | $ | (528 | ) | $ | (413 | ) | 27.8 | % | $ | (1,005 | ) | $ | (958 | ) | 4.9 | % |
Effective Income Tax Rate |
Non-GAAP Reconciliation |
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Corporate | Total P&C | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||
Losses and loss expenses | ||||||||||||||||||||||||||||
Losses and loss expenses | $ | 2,084 | $ | 728 | $ | 289 | $ | 1,071 | $ | 83 | $ | 48 | $ | 4,303 | ||||||||||||||
Realized (gains) losses on crop derivatives | — | — | (8 | ) | — | — | — | (8 | ) | |||||||||||||||||||
Adjusted losses and loss expenses | A | $ | 2,084 | $ | 728 | $ | 281 | $ | 1,071 | $ | 83 | $ | 48 | $ | 4,295 | |||||||||||||
Catastrophe losses | (73 | ) | (101 | ) | (2 | ) | (26 | ) | (9 | ) | — | (211 | ) | |||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 155 | (7 | ) | — | 72 | 16 | (45 | ) | 191 | |||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | (11 | ) | — | — | — | 2 | — | (9 | ) | |||||||||||||||||||
Expense adjustments - unfavorable (favorable) | — | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
PPD - gross of related adjustments - favorable (unfavorable) | 144 | (7 | ) | — | 72 | 17 | (45 | ) | 181 | |||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 2,155 | $ | 620 | $ | 279 | $ | 1,117 | $ | 91 | $ | 3 | $ | 4,265 | |||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 701 | $ | 296 | $ | 27 | $ | 850 | $ | 49 | $ | 70 | $ | 1,993 | |||||||||||||
Expense adjustments - favorable (unfavorable) | — | — | — | — | 1 | — | 1 | |||||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 701 | $ | 296 | $ | 27 | $ | 850 | $ | 50 | $ | 70 | $ | 1,994 | |||||||||||||
Denominator | ||||||||||||||||||||||||||||
Net premiums earned | E | $ | 3,277 | $ | 1,156 | $ | 351 | $ | 2,161 | $ | 167 | $ | 7,112 | |||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | (11 | ) | — | — | — | 2 | (9 | ) | ||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 3,266 | $ | 1,156 | $ | 351 | $ | 2,161 | $ | 169 | $ | 7,103 | |||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||
Losses and loss expense ratio | A/E | 63.6 | % | 63.0 | % | 80.0 | % | 49.6 | % | 49.4 | % | 60.4 | % | |||||||||||||||
Policy acquisition costs and administrative expense ratio | C/E | 21.4 | % | 25.6 | % | 7.9 | % | 39.3 | % | 29.9 | % | 28.0 | % | |||||||||||||||
P&C Combined ratio | 85.0 | % | 88.6 | % | 87.9 | % | 88.9 | % | 79.3 | % | 88.4 | % | ||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 66.0 | % | 53.7 | % | 79.3 | % | 51.7 | % | 53.0 | % | 60.0 | % | |||||||||||||||
Policy acquisition costs and administrative expense ratio, adjusted | D/F | 21.4 | % | 25.6 | % | 7.9 | % | 39.3 | % | 30.5 | % | 28.1 | % | |||||||||||||||
CAY P&C Combined ratio ex CATs | 87.4 | % | 79.3 | % | 87.2 | % | 91.0 | % | 83.5 | % | 88.1 | % | ||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||
Combined ratio | 88.5 | % | ||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | (0.1 | )% | ||||||||||||||||||||||||||
P&C Combined ratio | 88.4 | % | ||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Corporate | Total P&C | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
June 30, 2017 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||
Losses and loss expenses | ||||||||||||||||||||||||||||
Losses and loss expenses | $ | 1,936 | $ | 683 | $ | 290 | $ | 964 | $ | 46 | $ | 45 | $ | 3,964 | ||||||||||||||
Realized (gains) losses on crop derivatives | — | — | 2 | — | — | — | 2 | |||||||||||||||||||||
Adjusted losses and loss expenses | A | $ | 1,936 | $ | 683 | $ | 292 | $ | 964 | $ | 46 | $ | 45 | $ | 3,966 | |||||||||||||
Catastrophe losses | (102 | ) | (77 | ) | (8 | ) | (10 | ) | (3 | ) | — | (200 | ) | |||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 131 | (37 | ) | — | 88 | 31 | (43 | ) | 170 | |||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 2 | — | — | — | — | — | 2 | |||||||||||||||||||||
PPD - gross of related adjustments - favorable (unfavorable) | 133 | (37 | ) | — | 88 | 31 | (43 | ) | 172 | |||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 1,967 | $ | 569 | $ | 284 | $ | 1,042 | $ | 74 | $ | 2 | $ | 3,938 | |||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 705 | $ | 296 | $ | 29 | $ | 798 | $ | 55 | $ | 65 | $ | 1,948 | |||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 705 | $ | 296 | $ | 29 | $ | 798 | $ | 55 | $ | 65 | $ | 1,948 | |||||||||||||
Denominator | ||||||||||||||||||||||||||||
Net premiums earned | E | $ | 3,099 | $ | 1,093 | $ | 344 | $ | 2,018 | $ | 168 | $ | 6,722 | |||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 2 | — | — | — | — | 2 | ||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 3,101 | $ | 1,093 | $ | 344 | $ | 2,018 | $ | 168 | $ | 6,724 | |||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||
Losses and loss expense ratio | A/E | 62.5 | % | 62.4 | % | 85.2 | % | 47.8 | % | 27.8 | % | 59.0 | % | |||||||||||||||
Policy acquisition costs and administrative expense ratio | C/E | 22.7 | % | 27.2 | % | 8.1 | % | 39.5 | % | 32.4 | % | 29.0 | % | |||||||||||||||
P&C Combined ratio | 85.2 | % | 89.6 | % | 93.3 | % | 87.3 | % | 60.2 | % | 88.0 | % | ||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 63.4 | % | 52.1 | % | 83.0 | % | 51.6 | % | 44.4 | % | 58.6 | % | |||||||||||||||
Policy acquisition costs and administrative expense ratio, adjusted | D/F | 22.7 | % | 27.2 | % | 8.1 | % | 39.6 | % | 32.6 | % | 28.9 | % | |||||||||||||||
CAY P&C Combined ratio ex CATs | 86.1 | % | 79.3 | % | 91.1 | % | 91.2 | % | 77.0 | % | 87.5 | % | ||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||
Combined ratio | 88.0 | % | ||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | — | |||||||||||||||||||||||||||
P&C Combined ratio | 88.0 | % | ||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Corporate | Total P&C | ||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||
Losses and loss expenses | ||||||||||||||||||||||||||||
Losses and loss expenses | $ | 3,992 | $ | 1,614 | $ | 236 | $ | 2,149 | $ | 150 | $ | 59 | $ | 8,200 | ||||||||||||||
Realized (gains) losses on crop derivatives | — | — | (10 | ) | — | — | — | (10 | ) | |||||||||||||||||||
Adjusted losses and loss expenses | A | $ | 3,992 | $ | 1,614 | $ | 226 | $ | 2,149 | $ | 150 | $ | 59 | $ | 8,190 | |||||||||||||
Catastrophe losses | (151 | ) | (385 | ) | (3 | ) | (41 | ) | (11 | ) | — | (591 | ) | |||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 256 | (1 | ) | 76 | 94 | 30 | (55 | ) | 400 | |||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | (11 | ) | — | 40 | — | 3 | — | 32 | ||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | 6 | — | (4 | ) | — | (1 | ) | — | 1 | |||||||||||||||||||
PPD reinstatement premiums | 4 | — | — | — | — | — | 4 | |||||||||||||||||||||
PPD - gross of related adjustments - favorable (unfavorable) | 255 | (1 | ) | 112 | 94 | 32 | (55 | ) | 437 | |||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 4,096 | $ | 1,228 | $ | 335 | $ | 2,202 | $ | 171 | $ | 4 | $ | 8,036 | |||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 1,404 | $ | 598 | $ | 23 | $ | 1,677 | $ | 99 | $ | 142 | $ | 3,943 | |||||||||||||
Expense adjustments - favorable (unfavorable) | (6 | ) | — | 4 | — | 1 | — | (1 | ) | |||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 1,398 | $ | 598 | $ | 27 | $ | 1,677 | $ | 100 | $ | 142 | $ | 3,942 | |||||||||||||
Denominator | ||||||||||||||||||||||||||||
Net premiums earned | E | $ | 6,306 | $ | 2,296 | $ | 394 | $ | 4,268 | $ | 335 | $ | 13,599 | |||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | (11 | ) | — | 40 | — | 3 | 32 | |||||||||||||||||||||
Reinstatement premiums expensed on PPD | 4 | — | — | — | — | 4 | ||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 6,299 | $ | 2,296 | $ | 434 | $ | 4,268 | $ | 338 | $ | 13,635 | |||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||
Losses and loss expense ratio | A/E | 63.3 | % | 70.3 | % | 57.4 | % | 50.4 | % | 44.8 | % | 60.2 | % | |||||||||||||||
Policy acquisition costs and administrative expense ratio | C/E | 22.3 | % | 26.0 | % | 5.9 | % | 39.2 | % | 29.6 | % | 29.0 | % | |||||||||||||||
P&C Combined ratio | 85.6 | % | 96.3 | % | 63.3 | % | 89.6 | % | 74.4 | % | 89.2 | % | ||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 65.0 | % | 53.5 | % | 77.3 | % | 51.6 | % | 50.4 | % | 58.9 | % | |||||||||||||||
Policy acquisition costs and administrative expense ratio, adjusted | D/F | 22.2 | % | 26.0 | % | 6.2 | % | 39.3 | % | 29.9 | % | 28.9 | % | |||||||||||||||
CAY P&C Combined ratio ex CATs | 87.2 | % | 79.5 | % | 83.5 | % | 90.9 | % | 80.3 | % | 87.8 | % | ||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||
Combined ratio | 89.3 | % | ||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | (0.1 | )% | ||||||||||||||||||||||||||
P&C Combined ratio | 89.2 | % | ||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Corporate | Total P&C | ||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
June 30, 2017 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||
Losses and loss expenses | ||||||||||||||||||||||||||||
Losses and loss expenses | $ | 3,796 | $ | 1,316 | $ | 217 | $ | 2,035 | $ | 140 | $ | 56 | $ | 7,560 | ||||||||||||||
Realized (gains) losses on crop derivatives | — | — | 2 | — | — | — | 2 | |||||||||||||||||||||
Adjusted losses and loss expenses | A | $ | 3,796 | $ | 1,316 | $ | 219 | $ | 2,035 | $ | 140 | $ | 56 | $ | 7,562 | |||||||||||||
Catastrophe losses | (185 | ) | (145 | ) | (13 | ) | (60 | ) | (3 | ) | — | (406 | ) | |||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 310 | (34 | ) | 79 | 76 | 23 | (53 | ) | 401 | |||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 2 | — | 61 | — | (7 | ) | — | 56 | ||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | — | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||||||
PPD reinstatement premiums | 9 | — | — | — | — | — | 9 | |||||||||||||||||||||
PPD - gross of related adjustments - favorable (unfavorable) | 321 | (34 | ) | 135 | 76 | 16 | (53 | ) | 461 | |||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 3,932 | $ | 1,137 | $ | 341 | $ | 2,051 | $ | 153 | $ | 3 | $ | 7,617 | |||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 1,423 | $ | 578 | $ | 23 | $ | 1,572 | $ | 116 | $ | 123 | $ | 3,835 | |||||||||||||
Expense adjustments - favorable (unfavorable) | — | — | 5 | — | — | — | 5 | |||||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 1,423 | $ | 578 | $ | 28 | $ | 1,572 | $ | 116 | $ | 123 | $ | 3,840 | |||||||||||||
Denominator | ||||||||||||||||||||||||||||
Net premiums earned | E | $ | 6,140 | $ | 2,179 | $ | 358 | $ | 3,954 | $ | 357 | $ | 12,988 | |||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 2 | — | 61 | — | (7 | ) | 56 | |||||||||||||||||||||
Reinstatement premiums expensed on PPD | 9 | — | — | — | — | 9 | ||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 6,151 | $ | 2,179 | $ | 419 | $ | 3,954 | $ | 350 | $ | 13,053 | |||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||
Losses and loss expense ratio | A/E | 61.8 | % | 60.4 | % | 61.3 | % | 51.5 | % | 39.3 | % | 58.2 | % | |||||||||||||||
Policy acquisition costs and administrative expense ratio | C/E | 23.2 | % | 26.5 | % | 6.4 | % | 39.7 | % | 32.5 | % | 29.6 | % | |||||||||||||||
P&C Combined ratio | 85.0 | % | 86.9 | % | 67.7 | % | 91.2 | % | 71.8 | % | 87.8 | % | ||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 63.9 | % | 52.2 | % | 81.7 | % | 51.9 | % | 43.8 | % | 58.4 | % | |||||||||||||||
Policy acquisition costs and administrative expense ratio, adjusted | D/F | 23.1 | % | 26.6 | % | 6.5 | % | 39.7 | % | 33.2 | % | 29.4 | % | |||||||||||||||
CAY P&C Combined ratio ex CATs | 87.0 | % | 78.8 | % | 88.2 | % | 91.6 | % | 77.0 | % | 87.8 | % | ||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||
Combined ratio | 87.8 | % | ||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | — | |||||||||||||||||||||||||||
P&C Combined ratio | 87.8 | % | ||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
Other Income and Expense Items |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Equity in net (income) loss of partially-owned entities | $ | (117 | ) | $ | (146 | ) | $ | (176 | ) | $ | (199 | ) | |||
(Gains) losses from fair value changes in separate account assets (1) | 10 | (16 | ) | 4 | (46 | ) | |||||||||
Federal excise and capital taxes | 4 | 15 | 7 | 18 | |||||||||||
Other | (12 | ) | 2 | 3 | 12 | ||||||||||
Other (income) expense | $ | (115 | ) | $ | (145 | ) | $ | (162 | ) | $ | (215 | ) |
(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 2018 | $ | 81 | $ | 8 | $ | (26 | ) | $ | 63 | $ | 19 | $ | 82 | ||||||||||
Fourth quarter of 2018 | 81 | 8 | (26 | ) | 63 | 19 | 82 | ||||||||||||||||
2019 | 282 | — | (62 | ) | 220 | 75 | 295 | ||||||||||||||||
2020 | 240 | — | (36 | ) | 204 | 68 | 272 | ||||||||||||||||
2021 | 217 | — | (20 | ) | 197 | 63 | 260 | ||||||||||||||||
2022 | 198 | — | (14 | ) | 184 | 57 | 241 | ||||||||||||||||
2023 | 179 | — | (7 | ) | 172 | 51 | 223 | ||||||||||||||||
Total | $ | 1,278 | $ | 16 | $ | (191 | ) | $ | 1,103 | $ | 352 | $ | 1,455 |
(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 to deferred tax liability associated with intangible assets | ||
Third quarter of 2018 | $ | 24 | |
Fourth quarter of 2018 | 24 | ||
2019 | 79 | ||
2020 | 68 | ||
2021 | 62 | ||
2022 | 56 | ||
2023 | 51 | ||
Total | $ | 364 |
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 2018 | $ | (60 | ) | $ | 6 | ||
Fourth quarter of 2018 | (55 | ) | 5 | ||||
2019 | (220 | ) | 21 | ||||
2020 | (200 | ) | 21 | ||||
2021 | (135 | ) | 21 | ||||
2022 | — | 21 | |||||
2023 | — | 21 | |||||
Total | $ | (670 | ) | $ | 116 |
(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. |
Interest Expense |
Estimated Interest Expense | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
(in millions of U.S. dollars) | 2018 | 2018 | 2018 | 2018 | 2018 | ||||||||||||||
Fixed interest expense based on outstanding debt | $ | 140 | $ | 131 | $ | 125 | $ | 124 | $ | 520 | |||||||||
Variable interest expense based on expected usage | 29 | 46 | 47 | 47 | 169 | ||||||||||||||
Adjusted interest expense | $ | 169 | $ | 177 | $ | 172 | $ | 171 | $ | 689 | |||||||||
Amortization of the fair value of debt related to the Chubb Corp acquisition | (12 | ) | (10 | ) | (6 | ) | (5 | ) | (33 | ) | |||||||||
Total interest expense, including amortization of the fair value of debt | $ | 157 | $ | 167 | $ | 166 | $ | 166 | $ | 656 |
Actual Interest Expense | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
(in millions of U.S. dollars) | 2017 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||
Fixed interest expense based on outstanding debt | $ | 147 | $ | 139 | $ | 137 | $ | 137 | $ | 560 | |||||||||
Variable interest expense | 19 | 21 | 25 | 31 | 96 | ||||||||||||||
Adjusted interest expense | $ | 166 | $ | 160 | $ | 162 | $ | 168 | $ | 656 | |||||||||
Amortization of the fair value of debt related to the Chubb Corp acquisition | (12 | ) | (13 | ) | (12 | ) | (12 | ) | (49 | ) | |||||||||
Total interest expense, including amortization of the fair value of debt | $ | 154 | $ | 147 | $ | 150 | $ | 156 | $ | 607 |
• | We redeemed the $1.0 billion unsecured junior subordinated capital securities on April 6, 2018. No interest expense was considered for this debt after April 6, 2018. |
• | We redeemed the $600 million 5.75 percent senior notes on May 15, 2018. No interest expense was considered for this debt after May 15, 2018. |
• | We plan to redeem the $100 million 6.6 percent senior notes on August 15, 2018. No interest expense was considered for this debt after August 15, 2018. |
Net Investment Income |
Three Months Ended | Six Months Ended | |||||||||||||
June 30 | June 30 | |||||||||||||
(in millions of U.S. dollars) | 2018 | 2017 | 2018 | 2017 | ||||||||||
Fixed maturities | $ | 778 | $ | 741 | $ | 1,550 | $ | 1,471 | ||||||
Short-term investments | 21 | 14 | 41 | 26 | ||||||||||
Other interest income | 37 | 17 | 65 | 31 | ||||||||||
Equity securities | 11 | 13 | 19 | 22 | ||||||||||
Other investments | 24 | 24 | 43 | 43 | ||||||||||
Gross investment income (1) | 871 | 809 | 1,718 | 1,593 | ||||||||||
Investment expenses | (43 | ) | (39 | ) | (84 | ) | (78 | ) | ||||||
Net investment income (1) | $ | 828 | $ | 770 | $ | 1,634 | $ | 1,515 | ||||||
(1) Includes amortization expense related to fair value adjustment of acquired invested assets related to the Chubb Corp acquisition | $ | (62 | ) | $ | (85 | ) | $ | (133 | ) | $ | (176 | ) |
Net Realized and Unrealized Gains (Losses) |
Three Months Ended June 30, 2018 | Three Months Ended June 30, 2017 | ||||||||||||||||||||||
(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 | $ | (81 | ) | $ | (497 | ) | $ | (578 | ) | $ | 23 | $ | 423 | $ | 446 | ||||||||
Fixed income derivatives | 24 | — | 24 | (16 | ) | — | (16 | ) | |||||||||||||||
Public equity | 5 | — | 5 | 2 | 15 | 17 | |||||||||||||||||
Private equity | — | — | — | (1 | ) | (4 | ) | (5 | ) | ||||||||||||||
Mark-to-market on public and private equity | (18 | ) | — | (18 | ) | — | — | — | |||||||||||||||
Total investment portfolio (1) | (70 | ) | (497 | ) | (567 | ) | 8 | 434 | 442 | ||||||||||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges | (3 | ) | — | (3 | ) | 80 | — | 80 | |||||||||||||||
Other derivatives | 8 | — | 8 | (1 | ) | — | (1 | ) | |||||||||||||||
Foreign exchange | 140 | (574 | ) | (434 | ) | 14 | 102 | 116 | |||||||||||||||
Other | (57 | ) | (17 | ) | (74 | ) | — | (35 | ) | (35 | ) | ||||||||||||
Net gains (losses) before tax | $ | 18 | $ | (1,088 | ) | $ | (1,070 | ) | $ | 101 | $ | 501 | $ | 602 |
(1) | For the three months ended June 30, 2018, other-than-temporary impairments in Net realized gains (losses) included $4 million for fixed maturities. 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. |
Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | ||||||||||||||||||||||
(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 | $ | (104 | ) | $ | (1,708 | ) | $ | (1,812 | ) | $ | 11 | $ | 679 | $ | 690 | ||||||||
Fixed income derivatives | 41 | — | 41 | (10 | ) | — | (10 | ) | |||||||||||||||
Public equity | 15 | — | 15 | 6 | 43 | 49 | |||||||||||||||||
Private equity | — | — | — | (8 | ) | 27 | 19 | ||||||||||||||||
Mark-to-market on public and private equity | (10 | ) | — | (10 | ) | — | — | — | |||||||||||||||
Total investment portfolio (1) | (58 | ) | (1,708 | ) | (1,766 | ) | (1 | ) | 749 | 748 | |||||||||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges | 57 | — | 57 | 99 | — | 99 | |||||||||||||||||
Other derivatives | 10 | — | 10 | 1 | — | 1 | |||||||||||||||||
Foreign exchange | 63 | (177 | ) | (114 | ) | (5 | ) | 236 | 231 | ||||||||||||||
Other | (56 | ) | (40 | ) | (96 | ) | — | (55 | ) | (55 | ) | ||||||||||||
Net gains (losses) before tax | $ | 16 | $ | (1,925 | ) | $ | (1,909 | ) | $ | 94 | $ | 930 | $ | 1,024 |
(1) | For the six months ended June 30, 2018, other-than-temporary impairments in Net realized gains (losses) included $5 million for fixed maturities. 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. |
Investments |
June 30, 2018 | December 31, 2017 | ||||||||||||||
(in millions of U.S. dollars) | Fair Value | Cost/ Amortized Cost | Fair Value | Cost/ Amortized Cost | |||||||||||
Fixed maturities available for sale | $ | 77,963 | $ | 78,546 | $ | 78,939 | $ | 77,835 | |||||||
Fixed maturities held to maturity | 13,665 | 13,860 | 14,474 | 14,335 | |||||||||||
Short-term investments | 3,171 | 3,171 | 3,561 | 3,561 | |||||||||||
94,799 | 95,577 | 96,974 | 95,731 | ||||||||||||
Equity securities (1) | 933 | 933 | 937 | 737 | |||||||||||
Other investments (1) | 5,259 | 5,259 | 4,672 | 4,417 | |||||||||||
Total investments | $ | 100,991 | $ | 101,769 | $ | 102,583 | $ | 100,885 |
(1) | Effective Q1 2018, we adopted new accounting guidance that requires any changes in fair value of equity securities and other investments that are accounted for under the cost-method to be recognized immediately in net income. Therefore, the amortized cost of these investments is equal to their fair value at June 30, 2018. |
June 30, 2018 | December 31, 2017 | ||||||||||||
(in millions of U.S. dollars, except for percentages) | Market Value | % of Total | Market Value | % of Total | |||||||||
Treasury | $ | 4,246 | 4 | % | $ | 4,049 | 4 | % | |||||
Agency | 651 | 1 | % | 564 | 1 | % | |||||||
Corporate and asset-backed securities | 27,150 | 29 | % | 27,215 | 28 | % | |||||||
Mortgage-backed securities | 18,068 | 19 | % | 18,032 | 19 | % | |||||||
Municipal | 17,827 | 19 | % | 20,766 | 21 | % | |||||||
Non-U.S. | 23,686 | 25 | % | 22,787 | 23 | % | |||||||
Short-term investments | 3,171 | 3 | % | 3,561 | 4 | % | |||||||
Total | $ | 94,799 | 100 | % | $ | 96,974 | 100 | % | |||||
AAA | $ | 14,952 | 16 | % | $ | 15,512 | 16 | % | |||||
AA | 36,292 | 38 | % | 37,407 | 39 | % | |||||||
A | 17,735 | 19 | % | 18,369 | 19 | % | |||||||
BBB | 12,473 | 13 | % | 12,377 | 13 | % | |||||||
BB | 7,788 | 8 | % | 7,941 | 8 | % | |||||||
B | 5,356 | 6 | % | 5,135 | 5 | % | |||||||
Other | 203 | — | 233 | — | |||||||||
Total | $ | 94,799 | 100 | % | $ | 96,974 | 100 | % |
(in millions of U.S. dollars) | Market Value | ||
Wells Fargo & Co | $ | 535 | |
AT&T Inc | 455 | ||
JP Morgan Chase & Co | 411 | ||
Goldman Sachs Group Inc | 382 | ||
Anheuser-Busch InBev NV | 362 | ||
Verizon Communications Inc | 330 | ||
Bank of America Corp | 321 | ||
HSBC Holdings Plc | 303 | ||
Morgan Stanley | 302 | ||
General Electric Co | 280 |
S&P Credit Rating | Market Value | Amortized Cost | |||||||||||||||||||||||||
June 30, 2018 (in millions of U.S. dollars) | AAA | AA | A | BBB | BB and below | Total | Total | ||||||||||||||||||||
Agency residential mortgage-backed (RMBS) | $ | — | $ | 14,688 | $ | — | $ | — | $ | — | $ | 14,688 | $ | 15,046 | |||||||||||||
Non-agency RMBS | 27 | 47 | 73 | 28 | 23 | 198 | 197 | ||||||||||||||||||||
Commercial mortgage-backed | 2,871 | 214 | 97 | — | — | 3,182 | 3,250 | ||||||||||||||||||||
Total mortgage-backed securities | $ | 2,898 | $ | 14,949 | $ | 170 | $ | 28 | $ | 23 | $ | 18,068 | $ | 18,493 |
(in millions of U.S. dollars) | Market Value | Amortized Cost | |||||
United Kingdom | $ | 1,360 | $ | 1,347 | |||
Republic of Korea | 1,091 | 1,019 | |||||
Canada | 975 | 989 | |||||
Federative Republic of Brazil | 713 | 716 | |||||
Province of Ontario | 637 | 644 | |||||
United Mexican States | 518 | 527 | |||||
Federal Republic of Germany | 512 | 503 | |||||
Province of Quebec | 502 | 508 | |||||
Kingdom of Thailand | 435 | 417 | |||||
French Republic | 314 | 295 | |||||
Other Non-U.S. Government Securities (1) | 4,356 | 4,327 | |||||
Total | $ | 11,413 | $ | 11,292 |
(1) | There are no investments in Portugal, Ireland, Italy, Greece or Spain. |
(in millions of U.S. dollars) | Market Value | Amortized Cost | |||||
United Kingdom | $ | 2,129 | $ | 2,112 | |||
Canada | 1,510 | 1,522 | |||||
United States (1) | 1,048 | 1,054 | |||||
France | 947 | 945 | |||||
Australia | 840 | 834 | |||||
Netherlands | 638 | 636 | |||||
Germany | 613 | 605 | |||||
Switzerland | 457 | 459 | |||||
Japan | 448 | 452 | |||||
Sweden | 347 | 346 | |||||
Other Non-U.S. Corporate Securities | 3,296 | 3,306 | |||||
Total | $ | 12,273 | $ | 12,271 |
(1) | The countries that are listed in the non-U.S. corporate fixed income portfolio above represent the ultimate parent company's country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations. |
Critical Accounting Estimates |
June 30 | December 31 | ||||||
(in millions of U.S. dollars) | 2018 | 2017 | |||||
Reinsurance recoverable on unpaid losses and loss expenses (1) | $ | 13,735 | $ | 14,014 | |||
Reinsurance recoverable on paid losses and loss expenses (1) | 1,057 | 1,020 | |||||
Reinsurance recoverable on losses and loss expenses (1) | $ | 14,792 | $ | 15,034 | |||
Reinsurance recoverable on policy benefits (2) | $ | 204 | $ | 184 |
(1) | Net of provision for uncollectible reinsurance on P&C reserves of $319 million and $321 million at June 30, 2018 and December 31, 2017, respectively. |
(2) | Net of provision for uncollectible reinsurance on policy benefits of $4 million at both June 30, 2018 and December 31, 2017. |
(in millions of U.S. dollars) | Gross Losses | Reinsurance Recoverable (1) | Net Losses | ||||||||
Balance at December 31, 2017 | $ | 63,179 | $ | 14,014 | $ | 49,165 | |||||
Losses and loss expenses incurred | 10,486 | 1,897 | 8,589 | ||||||||
Losses and loss expenses paid | (10,752 | ) | (2,137 | ) | (8,615 | ) | |||||
Foreign currency revaluation and other | (135 | ) | (39 | ) | (96 | ) | |||||
Balance at June 30, 2018 | $ | 62,778 | $ | 13,735 | $ | 49,043 |
(1) | Net of provision for uncollectible reinsurance of $319 million and $321 million at June 30, 2018 and December 31, 2017, respectively. |
Catastrophe management |
Modeled Net PML | ||||||||||||||||||||
Worldwide (1) | U.S. Hurricane | California Earthquake | ||||||||||||||||||
Annual Aggregate | Annual Aggregate | Single Occurrence | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Chubb | % of Total Shareholders’ Equity | Chubb | % of Total Shareholders’ Equity | Chubb | % of Total Shareholders’ Equity | ||||||||||||||
1-in-10 | $ | 1,931 | 3.8 | % | $ | 1,112 | 2.2 | % | $ | 143 | 0.3 | % | ||||||||
1-in-100 | $ | 4,040 | 7.9 | % | $ | 2,822 | 5.5 | % | $ | 1,381 | 2.7 | % | ||||||||
1-in-250 | $ | 6,540 | 12.8 | % | $ | 5,159 | 10.1 | % | $ | 1,517 | 3.0 | % |
(1) | Worldwide losses are comprised of losses arising only from hurricanes, typhoons, convective storms and earthquakes and do not include “non-modeled” perils such as wildfire and flood. |
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) | 2018 | 2017 | |||||
Short-term debt | $ | 600 | $ | 1,013 | |||
Long-term debt | 12,184 | 11,556 | |||||
Total financial debt | 12,784 | 12,569 | |||||
Trust preferred securities | 308 | 308 | |||||
Total shareholders’ equity | 50,971 | 51,172 | |||||
Total capitalization | $ | 64,063 | $ | 64,049 | |||
Ratio of financial debt to total capitalization | 20.0 | % | 19.6 | % | |||
Ratio of financial debt plus trust preferred securities to total capitalization | 20.5 | % | 20.1 | % |
Shareholders of record as of: | Dividends paid as of: | |||
December 29, 2017 | January 19, 2018 | $0.71 (CHF 0.70) | ||
March 29, 2018 | April 20, 2018 | $0.71 (CHF 0.66) | ||
June 22, 2018 | July 13, 2018 | $0.73 (CHF 0.73) |
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk |
• | No changes to the benefit ratio used to establish benefit reserves at June 30, 2018. |
• | 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, and 15 percent—25 percent international 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, and the MSCI EAFE index as a proxy for international 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), 25 percent—35 percent medium-term rates (maturing between 5 years and 10 years, inclusive), and 60 percent—70 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, 2018 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. |
• | 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 Gross FVL increases primarily 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 effect”. The unfavorable impact of timing effect on our Gross FVL in a quarter is not reflected in the sensitivity tables below. For this reason, when using the tables below to estimate the sensitivity of Gross FVL in the third quarter to various changes, it is necessary to assume an additional $5 million to $45 million increase in Gross FVL and realized losses. The impact to Net income is partially mitigated because this realized loss is partially offset by the positive quarterly run rate of Life insurance underwriting income generated by the variable annuity guarantee reinsurance portfolio if markets remain unchanged during the period. Note that both the timing effect and the quarterly run rate of Life insurance underwriting income change over time as the book ages. |
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 | $ | 195 | $ | 121 | $ | 8 | $ | (162 | ) | $ | (365 | ) | $ | (602 | ) | ||||||||
Increase/(decrease) in hedge value | (160 | ) | — | 160 | 320 | 480 | 640 | |||||||||||||||||
Increase/(decrease) in net income | $ | 35 | $ | 121 | $ | 168 | $ | 158 | $ | 115 | $ | 38 | ||||||||||||
Flat | (Increase)/decrease in Gross FVL | $ | 104 | $ | — | $ | (164 | ) | $ | (360 | ) | $ | (592 | ) | $ | (856 | ) | |||||||
Increase/(decrease) in hedge value | (160 | ) | — | 160 | 320 | 480 | 640 | |||||||||||||||||
Increase/(decrease) in net income | $ | (56 | ) | $ | — | $ | (4 | ) | $ | (40 | ) | $ | (112 | ) | $ | (216 | ) | |||||||
-100 bps | (Increase)/decrease in Gross FVL | $ | (46 | ) | $ | (205 | ) | $ | (394 | ) | $ | (616 | ) | $ | (872 | ) | $ | (1,155 | ) | |||||
Increase/(decrease) in hedge value | (160 | ) | — | 160 | 320 | 480 | 640 | |||||||||||||||||
Increase/(decrease) in net income | $ | (206 | ) | $ | (205 | ) | $ | (234 | ) | $ | (296 | ) | $ | (392 | ) | $ | (515 | ) | ||||||
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 | $ | 48 | $ | (56 | ) | $ | — | $ | — | $ | (8 | ) | $ | 6 | ||||||||||
Increase/(decrease) in hedge value | — | — | — | — | — | — | ||||||||||||||||||
Increase/(decrease) in net income | $ | 48 | $ | (56 | ) | $ | — | $ | — | $ | (8 | ) | $ | 6 | ||||||||||
Sensitivities to Actuarial Assumptions | Mortality | |||||||||||||||||||||||
(in millions of U.S. dollars) | +20% | +10% | -10% | -20% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 17 | $ | 8 | $ | (9 | ) | $ | (18 | ) | ||||||||||||||
Increase/(decrease) in hedge value | — | — | — | — | ||||||||||||||||||||
Increase/(decrease) in net income | $ | 17 | $ | 8 | $ | (9 | ) | $ | (18 | ) | ||||||||||||||
Lapses | ||||||||||||||||||||||||
(in millions of U.S. dollars) | +50% | +25% | -25% | -50% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 59 | $ | 31 | $ | (41 | ) | $ | (86 | ) | ||||||||||||||
Increase/(decrease) in hedge value | — | — | — | — | ||||||||||||||||||||
Increase/(decrease) in net income | $ | 59 | $ | 31 | $ | (41 | ) | $ | (86 | ) | ||||||||||||||
Annuitization | ||||||||||||||||||||||||
(in millions of U.S. dollars) | +50% | +25% | -25% | -50% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | (362 | ) | $ | (192 | ) | $ | 153 | $ | 310 | ||||||||||||||
Increase/(decrease) in hedge value | — | — | — | — | ||||||||||||||||||||
Increase/(decrease) in net income | $ | (362 | ) | $ | (192 | ) | $ | 153 | $ | 310 |
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 | 2,958 | $ | 139.30 | — | $ | 1.0 | billion | ||||||
May 1 through May 31 | 2,015,058 | $ | 133.80 | 1,896,737 | $ | 746 | million | ||||||
June 1 through June 30 | 551,339 | $ | 129.04 | 547,118 | $ | 676 | million | ||||||
Total | 2,569,355 | $ | 132.78 | 2,443,855 |
(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. |
(2) | The aggregate value of shares repurchased in the three months ended June 30, 2018 as part of the publicly announced plan was $324 million. |
(3) | Refer to Note 7 to the Consolidated Financial Statements for more information on the Chubb Limited securities repurchase authorization. In December 2017, our Board authorized the repurchase of up to $1.0 billion of Chubb's Common Shares from January 1, 2018 through December 31, 2018. For the period July 1, 2018 through July 31, 2018, we repurchased 740,869 Common Shares for a total of $100 million in a series of open market transactions. At July 31, 2018, $576 million in share repurchase authorization remained through December 31, 2018. |
ITEM 5. Other Information |
ITEM 6. Exhibits |
Incorporated by Reference | ||||||||||
Exhibit Number | Exhibit Description | Form | Original Number | Date Filed | Filed Herewith | |||||
8-K | 3.1 | May 18, 2018 | ||||||||
8-K | 3.1 | November 21, 2016 | ||||||||
8-K | 4.1 | May 18, 2018 | ||||||||
8-K | 3.1 | November 21, 2016 | ||||||||
X | ||||||||||
X | ||||||||||
X | ||||||||||
X | ||||||||||
101.1 | The following financial information from Chubb Limited’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 formatted in XBRL: (i) Consolidated Balance Sheets at June 30, 2018, and December 31, 2017; (ii) Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 and 2017; (iii) Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2018 and 2017; (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017; and (v) Notes to Consolidated Financial Statements | X |
SIGNATURES |
CHUBB LIMITED | |
(Registrant) | |
August 1, 2018 | /s/ Evan G. Greenberg |
Evan G. Greenberg | |
Chairman, President and Chief Executive Officer | |
August 1, 2018 | /s/ Philip V. Bancroft |
Philip V. Bancroft | |
Executive Vice President and Chief Financial 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/ 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 1, 2018 | /s/ Evan G. Greenberg |
Evan G. Greenberg | |
Chairman, President and Chief Executive Officer |
Dated: August 1, 2018 | /s/ Philip V. Bancroft |
Philip V. Bancroft | |
Executive Vice President and Chief Financial Officer |
Document and Entity Information - SFr / shares |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jul. 20, 2018 |
Dec. 31, 2017 |
|
Entity Information [Line Items] | |||
Common Shares, par value | SFr 24.15 | SFr 24.15 | |
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
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 | 463,258,917 |
Consolidated Balance Sheets - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
||||||
---|---|---|---|---|---|---|---|---|
Assets | ||||||||
Fixed maturities available for sale, at fair value (amortized cost – $78,546 and $77,835)(includes hybrid financial instruments of $9 and $5) | $ 77,963 | $ 78,939 | ||||||
Fixed maturities held to maturity, at amortized cost (fair value – $13,665 and $14,474) | 13,860 | 14,335 | ||||||
Equity securities, at fair value (cost – $933 and $737) | 933 | 937 | ||||||
Short-term investments, at fair value and amortized cost | 3,171 | 3,561 | ||||||
Other investments (cost – $5,259 and $4,417) | 5,259 | 4,672 | ||||||
Total investments | 101,186 | 102,444 | ||||||
Cash | 1,000 | [1] | 728 | [2] | ||||
Restricted Cash | [1] | 101 | 123 | |||||
Securities lending collateral | 2,355 | 1,737 | ||||||
Accrued investment income | 870 | 909 | ||||||
Insurance and reinsurance balances receivable | 10,341 | 9,334 | ||||||
Reinsurance Recoverable Losses And Loss Expenses | 14,792 | 15,034 | ||||||
Reinsurance recoverable on policy benefits | 204 | 184 | ||||||
Deferred policy acquisition costs | 4,916 | 4,723 | ||||||
Value of business acquired | 311 | 326 | ||||||
Goodwill | 15,476 | 15,541 | ||||||
Other intangible assets | 6,283 | 6,513 | ||||||
Prepaid reinsurance premiums | 2,686 | 2,529 | ||||||
Investments in partially-owned insurance companies | 675 | 662 | ||||||
Other assets | 6,338 | 6,235 | ||||||
Total assets | 167,534 | 167,022 | ||||||
Liabilities | ||||||||
Unpaid losses and loss expenses | 62,778 | 63,179 | ||||||
Unearned premiums | 15,748 | 15,216 | ||||||
Future policy benefits | 5,470 | 5,321 | ||||||
Insurance and reinsurance balances payable | 6,448 | 5,868 | ||||||
Securities lending payable | 2,355 | 1,737 | ||||||
Accounts payable, accrued expenses, and other liabilities | 8,933 | 9,545 | ||||||
Deferred tax liabilities | 326 | 699 | ||||||
Repurchase agreements | 1,413 | 1,408 | ||||||
Short-term debt | 600 | 1,013 | ||||||
Long-term debt | 12,184 | 11,556 | ||||||
Trust preferred securities | 308 | 308 | ||||||
Total liabilities | 116,563 | 115,850 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity | ||||||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 463,502,164 and 463,833,179 shares outstanding) | 11,121 | 11,121 | ||||||
Common Shares in treasury (16,281,700 and 15,950,685 shares) | (2,040) | (1,944) | ||||||
Additional Paid in Capital, Common Stock | 13,150 | 13,978 | ||||||
Retained earnings | 30,260 | 27,474 | ||||||
Accumulated other comprehensive income (loss) (AOCI) | (1,520) | 543 | ||||||
Total shareholders’ equity | 50,971 | 51,172 | ||||||
Total liabilities and shareholders’ equity | $ 167,534 | $ 167,022 | ||||||
|
Consolidated Balance Sheets (Parenthetical) $ in Millions |
Jun. 30, 2018
USD ($)
shares
|
Dec. 31, 2017
USD ($)
shares
|
---|---|---|
Statement of Financial Position [Abstract] | ||
Available for sale, at amortized cost | $ 78,546 | $ 77,835 |
Fixed maturities available for sale, hybrid financial instruments | 9 | 5 |
Held to maturity, at Fair Value | 13,665 | 14,474 |
Equity securities, at cost | 933 | 737 |
Other investments, cost | $ 5,259 | $ 4,417 |
Common Shares, shares issued | shares | 479,783,864 | 479,783,864 |
Common Shares, shares outstanding | shares | 463,502,164 | 463,833,179 |
Common Shares in treasury, shares | shares | 16,281,700 | 15,950,685 |
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Total net realized gains (losses) reclassified from AOCI | $ (81) | $ 25 | $ (104) | $ 17 |
Income tax expense on reclassified unrealized gains and loses | $ (12) | $ 9 | $ (15) | $ 3 |
Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement Consolidated Statements Of Shareholders Equity [Abstract] | ||
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax | $ 300 | $ (259) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (15) | 3 |
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit | 285 | (256) |
Cumulative translation adjustment, Change in period, income tax(expense) benefit | (15) | (7) |
Pension liability adjustment, Change in period, income tax (expense) benefit | $ 9 | $ 17 |
General |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2017 Form 10-K. b) Restricted cash Effective January 1, 2018, we retrospectively adopted guidance on "Restricted Cash" that clarified the presentation of restricted cash on the consolidated statement of cash flows. As a result, we revised the statement of cash flows for the six months ended June 30, 2017 to include restricted cash in the beginning and ending cash balances. In addition, we reclassified $123 million of Restricted cash from Other assets to a separate line in the balance sheet as of December 31, 2017. Restricted cash in the consolidated balance sheets represents amounts held for the benefit of third parties and is legally or contractually restricted as to withdrawal or usage. Amounts include deposits with U.S. and non-U.S. regulatory authorities, trust funds set up for the benefit of ceding companies, and amounts pledged as collateral to meet financing arrangements. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows:
c) Goodwill During the six months ended June 30, 2018, Goodwill decreased $65 million, primarily reflecting the impact of foreign exchange. d) Accounting guidance adopted in 2018 Revenue from Contracts with Customers In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our claims management and risk control services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. This guidance was effective for us on January 1, 2018. The adoption of this guidance did not have a material impact on our financial condition or results of operations given that the majority of our business is outside the scope of this guidance. Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities Effective January 2018, we adopted new accounting guidance on "Recognition and Measurement of Financial Assets and Financial Liabilities" on a modified-retrospective basis. The guidance requires equity investments, other than those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized through net income. The guidance impacts our public equities and cost-method private equities. As a result, we recorded a cumulative-effect adjustment to increase beginning Retained earnings by $417 million after tax ($454 million pre-tax), representing the unrealized appreciation on our equity investments with an offsetting adjustment to decrease Accumulated other comprehensive income. All subsequent changes in fair value of our equity investments are recognized within realized gains (losses) on the consolidated statement of operations. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. Income Taxes Effective January 2018, we adopted new accounting guidance on “Intra-Entity Transfers of Assets Other Than Inventory” on a modified-retrospective basis. Under the new guidance, we will no longer defer taxes on intra-company asset transfers and will recognize any related income tax expense (benefit) immediately through the consolidated statement of operations. As a result, we recorded a cumulative-effect adjustment to decrease beginning Retained earnings by $7 million representing the removal of the deferred tax asset for previous intra-company asset transfer transactions not yet recognized through earnings. Income Tax Accounting Implications of the Tax Cuts and Jobs Act The Tax Cuts and Jobs Act (2017 Tax Act) was signed into legislation in December 2017. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (SAB 118), Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which provides guidance for the application of the 2017 Tax Act. The income tax guidance allows for the transition impact of the 2017 Tax Act to be recorded as 1) complete with all accounting implications identified, 2) provisional based on a reasonable estimate, or 3) not recorded as no reasonable estimate was determinable. In December 2017, we recorded a $450 million income tax benefit which was our estimate of the tax effects of the 2017 Tax Act. This amount was recorded as provisional under SAB 118. There were no changes determined to this estimate for the current period as we continue to analyze the impact of the 2017 Tax Act. We will continue to monitor this area as new regulations and interpretive guidance are released and will update as appropriate. Refer to the 2017 Form 10-K for information on other accounting guidance not yet adopted. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments a) Fixed maturities
As discussed in Note 2 b), 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 the three and six months ended June 30, 2018, nil and $4 million, respectively, of net unrealized depreciation related to such securities is included in OCI. 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. At June 30, 2018 and December 31, 2017, AOCI included cumulative net unrealized appreciation of $3 million and $7 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 b) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 81 percent and 83 percent of the total mortgage-backed securities at June 30, 2018 and December 31, 2017, respectively, 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) 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 and securities lending collateral are reviewed to identify impaired securities to be specifically evaluated for a potential OTTI. Refer to the 2017 Form 10-K for information on our evaluation of OTTI for all non-fixed maturities prior to our adoption of new accounting guidance on financial instruments, effective January 1, 2018. 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. For both the three and six months ended June 30, 2018, credit losses recognized in Net income for corporate securities were $1 million. 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. 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, 2018 and 2017, there were no credit losses recognized in Net income for mortgage-backed securities. The following table presents the components of Net realized gains (losses):
Other net realized gains (losses) for the three and six months ended June 30, 2018, included a $36 million loss from the extinguishment of debt as discussed in Note 5 and a $22 million loss related to lease impairments. 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:
c) Equity securities and Other investments Effective January 1, 2018, we adopted new accounting guidance that requires any changes in fair value of equity securities and other investments that are accounted for under the cost-method to be recognized immediately in realized gains and losses in net income. As a result, beginning on January 1, 2018, realized gains and losses from these investments include both sales of securities and unrealized gains and losses as follows:
At December 31, 2017, the cost, gross unrealized appreciation, gross unrealized depreciation, and fair value of equity securities was $737 million, $212 million, $12 million, and $937 million, respectively. At December 31, 2017, the net unrealized appreciation (depreciation) was recorded within accumulated other comprehensive income on the balance sheet. d) Gross unrealized loss At June 30, 2018, there were 17,926 fixed maturities out of a total of 31,062 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $11 million. Fixed maturities in an unrealized loss position at June 30, 2018, 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, 2018 and December 31, 2017 are investments, primarily fixed maturities, totaling $21.2 billion and $23.3 billion, respectively, and cash of $101 million and $123 million, respectively. The following table presents the components of restricted assets:
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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 and option 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) associated with variable annuity contracts. We also assume the risk of guaranteed minimum accumulation benefits (GMAB). However, at June 30, 2018, the risks related to our GMAB programs are minimal given that the majority of these policies are no longer in-force. 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. For the three and six months ended June 30, 2018, no material technical refinements were made to the model. 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 2017 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 both the three and six months ended June 30, 2018 and 2017. 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. Refer to the 2017 Form 10-K for information on the fair value methods and assumptions for investments in partially-owned insurance companies, short-term and long-term debt, repurchase agreements, and trust-preferred securities. 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 |
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Liability for Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | Unpaid losses and loss expenses The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
The decrease in net unpaid losses and loss expenses from December 31, 2017 was primarily due to payments related to the 2017 catastrophic events. Prior Period Development Prior period development arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. 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. 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, and agriculture. During the third quarter of 2017, we determined that the loss development classification for certain businesses, previously grouped within the short-tail column in the table below, would be more appropriately grouped within the long-tail column to better align with the classification of these businesses within our loss development triangles in our Form 10-K. We also determined that the loss development for certain other businesses should be reclassified from long-tail to short-tail. We updated the 2017 amounts below to conform to the current period presentation and reclassified $2 million of net favorable development and $3 million of net adverse development into long-tail from short-tail for the three and six months ended June 30, 2017, respectively. These changes to the previously disclosed amounts have no impact to our financial condition and results of operations. Favorable prior period development for the three months ended June 30, 2018 of $191 million included $236 million of favorable development, of which $136 million was long-tail lines, principally for the 2014 and prior accident years, $64 million was short-tail lines, and $36 million was related to the 2017 catastrophe events. The favorable development was offset by $45 million of adverse development related to our run-off non-A&E casualty exposures. Favorable prior period development for the six months ended June 30, 2018 of $400 million included $455 million of favorable development, of which $125 million was long-tail lines, principally for 2014 and prior accident years, $188 million was short-tail lines, principally related to our Crop insurance business, and $142 million was related to the 2017 catastrophe events. The favorable development was offset by $55 million of adverse development related to our run-off non-A&E casualty exposures.
North America Commercial P&C Insurance 2018 For the three months ended June 30, 2018, net favorable PPD was $155 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:
For the six months ended June 30, 2018, net favorable PPD was $256 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:
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, and was 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, and was driven by the following principal changes:
North America Personal P&C Insurance 2018 For the three and six months ended June 30, 2018, net adverse PPD was $7 million and $1 million, respectively, which were the net results of some modest net adverse and favorable movements by class and accident year, including favorable development of $5 million and $11 million, respectively, on the 2017 natural catastrophes. 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. North America Agricultural Insurance There was no PPD for the three months ended June 30, 2018 and 2017. For the six months ended June 30, 2018 and 2017, net favorable PPD was $76 million and $79 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., 2018 results based on crop yield results at year-end 2017). Overseas General Insurance 2018 For the three months ended June 30, 2018, net favorable PPD was $72 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:
For the six months ended June 30, 2018, net favorable PPD was $94 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:
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, and was 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, and was driven by the following principal changes:
Global Reinsurance 2018 For the three months ended June 30, 2018, net favorable PPD was $16 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:
For the six months ended June 30, 2018, net favorable PPD was $30 million, which was the net result of several underlying favorable and adverse movements, primarily from long-tail business lines discussed above, and in short-tail business due to $1 million of net favorable claim development on the 2017 natural catastrophes. 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, and was 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, and was driven by the following principal change:
Corporate 2018 For the three and six months ended June 30, 2018, net adverse development was $45 million and $55 million, respectively, from the non A&E run-off casualty exposures, driven by recent net adverse settlements on a limited number of claims and reinsurance collection activity. The net adverse development also included charges relating to unallocated loss adjustment expenses due to run-off operating expenses of $10 million and $20 million, respectively. 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 non A&E run-off 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. |
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Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt In March 2018, Chubb INA Holdings Inc. (Chubb INA) issued €900 million ($1.1 billion based on the foreign exchange rate at the date of issuance) of 1.55 percent Euro denominated senior notes due March 2028 and €900 million ($1.1 billion based on the foreign exchange rate at the date of issuance) of 2.5 percent Euro denominated senior notes due March 2038. These senior notes are redeemable at any time at Chubb INA's option subject to a “make-whole” premium (the present value of the remaining principal and interest discounted at the applicable comparable government bond rate plus 0.15 percent for the senior notes due 2028 and 0.25 percent for the senior notes due 2038). The notes are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law. These notes do not have the benefit of any sinking fund. These senior unsecured notes are guaranteed on a senior basis by Chubb and they rank equally with all of Chubb's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt. Chubb INA's $300 million of 5.8 percent senior notes due March 2018 and $600 million of 5.75 percent senior notes due May 2018 were paid upon maturity. During April 2018, we redeemed $1.0 billion of 6.375 percent unsecured junior subordinated capital securities due to mature in April 2037 and recorded a loss of $36 million from the extinguishment of debt, which is included in Net realized gains (losses) in the Consolidated statement of operations. In June 2018, we reclassified $499 million of the 5.9 percent senior notes ($500 million par value due to mature in June 2019) from long-term to short-term debt in the Consolidated balance sheets. |
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 economic 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 (principally GMIB) 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 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, 2018 and December 31, 2017, derivative assets of $53 million and derivative liabilities of $24 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. The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
b) 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. c) Securities lending and 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, 2018 and December 31, 2017, our repurchase agreement obligations of $1,413 million and $1,408 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 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:
d) Fixed maturities At June 30, 2018, we have commitments to purchase fixed income securities of $948 million over the next several years. e) Other investments At June 30, 2018, included in Other investments in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.9 billion. In connection with these investments, we have commitments that may require funding of up to $3.4 billion over the next several years. f) Taxation At June 30, 2018, $14 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 by taxing authorities and the closing of tax statutes of limitations. With few exceptions, Chubb is no longer subject to state and local or non-U.S. income tax examinations for years before 2010. 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. |
Share-based compensation |
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Jun. 30, 2018 | |
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 both incentive and non-qualified stock options 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. Stock options typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 22, 2018, Chubb granted 1,841,329 stock options with a weighted-average grant date fair value of $29.71 each. The fair value of the options issued is estimated on the grant date using the Black-Scholes option pricing model. The 2016 LTIP also permits grants of service-based restricted stock and restricted stock units as well as performance-based restricted stock awards. Chubb generally grants service-based restricted stock and restricted stock units with a 4-year vesting period, based on a graded vesting schedule. Beginning in 2017, the performance-based stock awards granted comprise target awards which have 3-year cliff vesting provisions based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth and P&C combined ratio compared to a defined group of peer companies. Premium performance-based stock awards are earned only if tangible book value per share growth and the P&C combined ratio over the cumulative 3-year period after the grant of the associated target awards exceed a higher threshold compared to our peer group, with an additional vesting provision based on total shareholder return compared to our peer group. The restricted stock is granted at market close price on the grant date. On February 22, 2018, Chubb granted 973,624 service-based restricted stock awards, 301,024 service-based restricted stock units, and 180,065 performance-based stock awards to employees and officers with a grant date fair value of $143.07 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting. |
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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, 2018, our Common Shares had a par value of CHF 24.15 per share. At our May 2017 and 2016 annual general meetings, our shareholders approved an annual dividend for the following year of up to $2.84 per share and $2.76 per share, respectively, which were paid in four quarterly installments of $0.71 per share and $0.69 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 2018 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.92 per share, expected to be paid in four quarterly installments of $0.73 per share after the 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 2019 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, 2018, 16,281,700 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans. Chubb Limited securities repurchase authorization In November 2016, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares through December 31, 2017. In December 2017, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares from January 1, 2018 through December 31, 2018. The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [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 results primarily include income and expenses not attributable to reportable segments and loss and loss expenses of asbestos and environmental (A&E) liabilities. For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income (loss) as the main measures of segment performance. Chubb calculates underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate Segment income (loss), 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 (loss). For example, for the three months ended June 30, 2018, underwriting income in our North America Agricultural Insurance segment was $43 million. This amount includes $8 million of realized gains related to crop derivatives which are reported in Net realized gains (losses) 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, 2018, Life Insurance underwriting income of $75 million includes Net investment income of $85 million and losses from fair value changes in separate account assets of $10 million. The gains (losses) 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 |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure Text Block Supplement [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, 2018 and December 31, 2017, and for the three and six months ended June 30, 2018 and 2017 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, 2018
Condensed Consolidating Balance Sheet at December 31, 2017
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) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of presentation | 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 2017 Form 10-K. |
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Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | b) Restricted cash Effective January 1, 2018, we retrospectively adopted guidance on "Restricted Cash" that clarified the presentation of restricted cash on the consolidated statement of cash flows. As a result, we revised the statement of cash flows for the six months ended June 30, 2017 to include restricted cash in the beginning and ending cash balances. In addition, we reclassified $123 million of Restricted cash from Other assets to a separate line in the balance sheet as of December 31, 2017. Restricted cash in the consolidated balance sheets represents amounts held for the benefit of third parties and is legally or contractually restricted as to withdrawal or usage. Amounts include deposits with U.S. and non-U.S. regulatory authorities, trust funds set up for the benefit of ceding companies, and amounts pledged as collateral to meet financing arrangements. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows:
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Accounting guidance adopted in 2018 | d) Accounting guidance adopted in 2018 Revenue from Contracts with Customers In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our claims management and risk control services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. This guidance was effective for us on January 1, 2018. The adoption of this guidance did not have a material impact on our financial condition or results of operations given that the majority of our business is outside the scope of this guidance. Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities Effective January 2018, we adopted new accounting guidance on "Recognition and Measurement of Financial Assets and Financial Liabilities" on a modified-retrospective basis. The guidance requires equity investments, other than those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized through net income. The guidance impacts our public equities and cost-method private equities. As a result, we recorded a cumulative-effect adjustment to increase beginning Retained earnings by $417 million after tax ($454 million pre-tax), representing the unrealized appreciation on our equity investments with an offsetting adjustment to decrease Accumulated other comprehensive income. All subsequent changes in fair value of our equity investments are recognized within realized gains (losses) on the consolidated statement of operations. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. Income Taxes Effective January 2018, we adopted new accounting guidance on “Intra-Entity Transfers of Assets Other Than Inventory” on a modified-retrospective basis. Under the new guidance, we will no longer defer taxes on intra-company asset transfers and will recognize any related income tax expense (benefit) immediately through the consolidated statement of operations. As a result, we recorded a cumulative-effect adjustment to decrease beginning Retained earnings by $7 million representing the removal of the deferred tax asset for previous intra-company asset transfer transactions not yet recognized through earnings. Income Tax Accounting Implications of the Tax Cuts and Jobs Act The Tax Cuts and Jobs Act (2017 Tax Act) was signed into legislation in December 2017. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (SAB 118), Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which provides guidance for the application of the 2017 Tax Act. The income tax guidance allows for the transition impact of the 2017 Tax Act to be recorded as 1) complete with all accounting implications identified, 2) provisional based on a reasonable estimate, or 3) not recorded as no reasonable estimate was determinable. In December 2017, we recorded a $450 million income tax benefit which was our estimate of the tax effects of the 2017 Tax Act. This amount was recorded as provisional under SAB 118. There were no changes determined to this estimate for the current period as we continue to analyze the impact of the 2017 Tax Act. We will continue to monitor this area as new regulations and interpretive guidance are released and will update as appropriate. |
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Accounting guidance not yet adopted | Refer to the 2017 Form 10-K for information on other accounting guidance not yet adopted. |
Fair value measurements Fair Value Measurement Policy (Policies) |
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Jun. 30, 2018 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | 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. |
General General (Tables) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows:
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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 Amortized Cost and Fair Value of Available-for-sale Securities 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 Realized Gain (Loss) | The following table presents the components of Net realized gains (losses):
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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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Gain (Loss) on Investments [Table Text Block] | Effective January 1, 2018, we adopted new accounting guidance that requires any changes in fair value of equity securities and other investments that are accounted for under the cost-method to be recognized immediately in realized gains and losses in net income. As a result, beginning on January 1, 2018, realized gains and losses from these investments include both sales of securities and unrealized gains and losses as follows:
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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) |
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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 | he 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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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:
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Prior Period Development, by Segment [Table Text Block] |
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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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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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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:
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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Shareholders' Equity (Tables) |
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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] | The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:
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Postretirement benefits (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | 9. 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 (Tables) |
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Operations By Segment | The following tables present the Statement of Operations by segment:
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Earnings per share (Tables) |
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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) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table Text Block Supplement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet at June 30, 2018
Condensed Consolidating Balance Sheet at December 31, 2017
|
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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 Schedule of Cash and Cash Equivalent (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
||||||
---|---|---|---|---|---|---|---|---|---|---|
Cash and Cash Equivalents [Line Items] | ||||||||||
Cash | $ 1,000 | [1] | $ 728 | [2] | ||||||
Restricted Cash | [1] | 101 | 123 | |||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 1,101 | $ 851 | $ 1,419 | $ 1,088 | ||||||
|
General Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Period Increase (Decrease) | $ (65) |
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, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
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 | $ 15 | $ 32 | $ 22 | $ 35 |
Additions where no OTTI was previously recorded | 1 | 1 | 1 | 1 |
Additions where an OTTI was previously recorded | 0 | 0 | 0 | 1 |
Reductions for securities sold during the period | 0 | (4) | (7) | (8) |
Balance of credit losses related to securities still held – end of period | $ 16 | $ 29 | $ 16 | $ 29 |
Investments (Schedule Of Components Of Restricted Assets) (Detail) - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Trust funds | $ 14,775 | $ 17,011 |
Deposits with U.S. regulatory authorities | 2,460 | 2,345 |
Deposits with non-U.S. regulatory authorities | 2,206 | 2,250 |
Assets pledged under repurchase agreements | 1,449 | 1,434 |
Other pledged assets | 407 | 414 |
Total restricted assets | $ 21,297 | $ 23,454 |
Fair value measurements Fair Value Measurements (narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
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 | |
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, 2018 |
Dec. 31, 2017 |
|
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 3,441 | $ 4,061 |
Fair Value | 4,224 | 3,623 |
Financial [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | 281 | 330 |
Fair Value | $ 569 | $ 540 |
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 | $ 192 | $ 114 |
Fair Value | $ 673 | $ 651 |
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 | $ 131 | $ 141 |
Fair Value | $ 279 | $ 289 |
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 | 3 years | 3 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 | 7 years | 7 years |
Private Credit [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 308 | $ 327 |
Fair Value | $ 184 | $ 187 |
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 | $ 2,529 | $ 3,149 |
Fair Value | $ 2,177 | $ 1,656 |
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 | 15 years | 15 years |
Vintage [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 64 | $ 30 |
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 | $ 278 | $ 270 |
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) - USD ($) $ in Millions |
6 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
[2] | Dec. 31, 2017 |
Jun. 30, 2017 |
[3] | Mar. 31, 2017 |
[3] | Dec. 31, 2016 |
[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] | 33.00% | |||||||||||||||||||
Significant Unobservable Inputs Annuitization Rate | [1] | 100.00% | |||||||||||||||||||
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 | $ 125 | [2] | $ 167 | $ 204 | [2] | $ 357 | $ 466 | $ 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 | [4] | $ 125 | $ 204 | ||||||||||||||||||
|
Fair Value Measurements (Assets Measured At Fair Value Using Significant Unobservable Inputs) (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Equity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | $ 64 | $ 41 | $ 44 | $ 41 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | 0 |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 1 | 1 | 1 |
Net Realized Gains/ (Losses), Assets | (3) | 0 | (1) | 0 |
Purchases, Assets | 3 | 6 | 20 | 6 |
Sales, Assets | (5) | (9) | (5) | (9) |
Settlements, Assets | 0 | 0 | 0 | 0 |
Balance-End of Period, Assets | 59 | 39 | 59 | 39 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (3) | 0 | (1) | 0 |
Short-term Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 12 | 21 | 0 | 25 |
Transfers Into Level 3, Asset | 0 | 0 | 5 | 0 |
Transfers out of Level 3, Assets | 0 | 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 | 1 | 7 | 9 | 14 |
Sales, Assets | 0 | 0 | 0 | 0 |
Settlements, Assets | (1) | (21) | (2) | (32) |
Balance-End of Period, Assets | 12 | 7 | 12 | 7 |
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 | 270 | 233 | 263 | 225 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | 0 |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | (1) | 2 | 3 |
Net Realized Gains/ (Losses), Assets | 1 | 0 | 1 | 0 |
Purchases, Assets | 16 | 16 | 30 | 24 |
Sales, Assets | 0 | 0 | 0 | 0 |
Settlements, Assets | (23) | (5) | (32) | (9) |
Balance-End of Period, Assets | 264 | 243 | 264 | 243 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 1 | 0 | 1 | 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 | 176 | 80 | 93 | 74 |
Transfers Into Level 3, Asset | 0 | 0 | 7 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | 0 |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | (7) | 3 | 2 | 2 |
Net Realized Gains/ (Losses), Assets | 0 | 2 | 0 | 1 |
Purchases, Assets | 95 | 19 | 182 | 33 |
Sales, Assets | (11) | (19) | (30) | (22) |
Settlements, Assets | (1) | 0 | (2) | (3) |
Balance-End of Period, Assets | 252 | 85 | 252 | 85 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Available-for-sale Securities [Member] | Corporate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 1,073 | 737 | 1,037 | 681 |
Transfers Into Level 3, Asset | 6 | 28 | 6 | 57 |
Transfers out of Level 3, Assets | 0 | (13) | (10) | (67) |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | (9) | 0 | (12) | (8) |
Net Realized Gains/ (Losses), Assets | 2 | 0 | 2 | (1) |
Purchases, Assets | 217 | 65 | 356 | 221 |
Sales, Assets | (45) | (28) | (96) | (55) |
Settlements, Assets | (63) | (42) | (102) | (81) |
Balance-End of Period, Assets | 1,181 | 747 | 1,181 | 747 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
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 | 83 | 45 | 78 | 45 |
Transfers Into Level 3, Asset | 0 | 0 | 1 | 0 |
Transfers out of Level 3, Assets | 0 | 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 | 0 | 4 | 1 |
Sales, Assets | 0 | 0 | 0 | (1) |
Settlements, Assets | (1) | 0 | (1) | 0 |
Balance-End of Period, Assets | 82 | 45 | 82 | 45 |
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, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
|||||||||||||
Guaranteed Minimum Income Benefit [Member] | ||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||||||||||
Reported liabilities | $ 497 | $ 684 | [1] | $ 497 | $ 684 | [1] | $ 529 | $ 550 | $ 774 | $ 853 | ||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||||||||||
Balance - Beginning of Period, Liabilities | 167 | [2] | 466 | [3] | 204 | [2] | 559 | [3] | ||||||||||||
Transfers into level 3, liability | 0 | 9 | 0 | 9 | ||||||||||||||||
Transfers out of Level 3, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||||||
Net Realized Gains/Losses, Liabilities | (42) | (118) | (79) | (211) | ||||||||||||||||
Purchases, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||||||
Sales, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | 0 | 0 | 0 | ||||||||||||||||
Balance - End of Period, Liabilities | 125 | [2] | 357 | [3] | 125 | [2] | 357 | [3] | ||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (42) | (118) | (79) | (211) | ||||||||||||||||
Other Derivative Instruments Fair Value [Member] | ||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||||||||||
Balance - Beginning of Period, Liabilities | 2 | 11 | 2 | 13 | ||||||||||||||||
Transfers into level 3, liability | 0 | 0 | 0 | 0 | ||||||||||||||||
Transfers out of Level 3, Liabilities | 0 | (9) | 0 | (9) | ||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||||||
Net Realized Gains/Losses, Liabilities | 0 | 0 | 0 | (2) | ||||||||||||||||
Purchases, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||||||
Sales, Liabilities | 0 | 0 | 0 | 0 | ||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | 0 | 0 | 0 | [4] | |||||||||||||||
Balance - End of Period, Liabilities | 2 | 2 | 2 | 2 | ||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ 0 | $ 0 | $ (2) | ||||||||||||||||
|
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | $ 13,665 | $ 14,474 |
Held-to-maturity Securities | 13,860 | 14,335 |
Repurchase agreements | 1,413 | 1,408 |
Short-term debt | 600 | 1,013 |
Long-term debt | 12,184 | 11,556 |
Trust preferred securities | 308 | 308 |
Total liabilities | 116,563 | 115,850 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 1,079 | 857 |
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 | 12,554 | 13,582 |
Repurchase agreements | 1,413 | 1,408 |
Short-term Debt, Fair Value | 615 | 1,013 |
Long-term Debt, Fair Value | 12,296 | 12,332 |
Trust preferred securities | 433 | 468 |
Total liabilities | 14,757 | 15,221 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 32 | 35 |
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 | 1,079 | 857 |
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 | 54 | 58 |
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 | 1,675 | 1,757 |
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 | 2,633 | 3,184 |
Corporate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 32 | 35 |
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 | 2,585 | 2,742 |
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 | 5,607 | 5,841 |
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 | 13,665 | 14,474 |
Repurchase agreements | 1,413 | 1,408 |
Short-term Debt, Fair Value | 615 | 1,013 |
Long-term Debt, Fair Value | 12,296 | 12,332 |
Trust preferred securities | 433 | 468 |
Total liabilities | 14,757 | 15,221 |
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 | 1,133 | 915 |
Estimate of Fair Value Measurement [Member] | Foreign [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 1,675 | 1,757 |
Estimate of Fair Value Measurement [Member] | Corporate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 2,665 | 3,219 |
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 | 2,585 | 2,742 |
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 | 5,607 | 5,841 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 13,860 | 14,335 |
Repurchase agreements | 1,413 | 1,408 |
Short-term debt | 600 | 1,013 |
Long-term debt | 12,184 | 11,556 |
Trust preferred securities | 308 | 308 |
Total liabilities | 14,505 | 14,285 |
Reported Value Measurement [Member] | U.S. Treasury And Agency [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 1,143 | 908 |
Reported Value Measurement [Member] | Foreign [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 1,678 | 1,738 |
Reported Value Measurement [Member] | Corporate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 2,736 | 3,159 |
Reported Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 2,640 | 2,724 |
Reported Value Measurement [Member] | States, Municipalities, And Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | $ 5,663 | $ 5,806 |
Unpaid losses and loss expenses (RF) (Detail) - USD ($) $ in Millions |
6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||
Unpaid Losses and Loss Expenses [Roll Forward] | |||||||||||
Gross unpaid losses and loss expenses, beginning of period | $ 63,179 | $ 60,540 | |||||||||
Reinsurance Recoverable on unpaid losses, beginning of period | [1] | (14,014) | (12,708) | ||||||||
Net unpaid loss, beginning of period | 49,165 | 47,832 | |||||||||
Current Year Claims and Claims Adjustment Expense | 9,026 | 8,396 | |||||||||
PPD, Gross | [2] | (437) | (461) | ||||||||
Total, Incurred | 8,589 | 7,935 | |||||||||
Net loss and loss expenses paid, Current Year | 2,346 | 2,271 | |||||||||
Net losses and loss expenses Paid, Prior Years | 6,269 | 5,758 | |||||||||
Total, Paid | 8,615 | 8,029 | |||||||||
Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Revaluation And Other | (96) | 171 | |||||||||
Net unpaid Loss, end of period | 49,043 | 47,909 | |||||||||
Reinsurance Recoverables on unpaid losses, end of period | [3] | 13,735 | 12,485 | ||||||||
Gross unpaid losses and loss expenses, end of period | 62,778 | 60,394 | |||||||||
Reinsurance Recoverables, Allowance | 319 | 335 | $ 321 | $ 300 | |||||||
prior period development, net adjustments | $ 37 | $ 60 | |||||||||
|
Unpaid losses and loss expenses Unpaid losses and loss expenses (PPD table) (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | $ (191) | $ (170) | $ (400) | $ (401) |
North America Commercial P&C Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (155) | (131) | (256) | (310) |
North America Personal P&C Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 7 | 37 | 1 | 34 |
North American Agriculture Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 0 | 0 | (76) | (79) |
Overseas General Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (72) | (88) | (94) | (76) |
Global Reinsurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (16) | (31) | (30) | (23) |
Corporate Segment [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 45 | 43 | 55 | 53 |
Long Tail [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (91) | (76) | (73) | (120) |
Long Tail [Member] | North America Commercial P&C Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (104) | (83) | (96) | (177) |
Long Tail [Member] | North America Personal P&C Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 0 | 0 | 0 | 0 |
Long Tail [Member] | North American Agriculture Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 0 | 0 | 0 | 0 |
Long Tail [Member] | Overseas General Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (2) | 0 | (2) | 32 |
Long Tail [Member] | Global Reinsurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (30) | (36) | (30) | (28) |
Long Tail [Member] | Corporate Segment [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 45 | 43 | 55 | 53 |
Short Tail [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (100) | (94) | (327) | (281) |
Short Tail [Member] | North America Commercial P&C Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (51) | (48) | (160) | (133) |
Short Tail [Member] | North America Personal P&C Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 7 | 37 | 1 | 34 |
Short Tail [Member] | North American Agriculture Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 0 | 0 | (76) | (79) |
Short Tail [Member] | Overseas General Insurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | (70) | (88) | (92) | (108) |
Short Tail [Member] | Global Reinsurance [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | 14 | 5 | 0 | 5 |
Short Tail [Member] | Corporate Segment [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Prior Year Claims and Claims Adjustment Expense | $ 0 | $ 0 | $ 0 | $ 0 |
Unpaid losses and loss expenses Unpaid losses and loss expenses (narrative)(Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | $ (191) | $ (170) | $ (400) | $ (401) |
Prior period reclassification adjustments | (1) | (13) | ||
non-A&E run-off [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 45 | 55 | ||
Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (91) | (76) | (73) | (120) |
Prior period reclassification adjustments | (2) | 3 | ||
Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (100) | (94) | (327) | (281) |
Accident year 2017 [Member] | Catastrophe [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (36) | (142) | ||
North America Commercial P&C Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (155) | (131) | (256) | (310) |
North America Commercial P&C Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (104) | (83) | (96) | (177) |
North America Commercial P&C Insurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (51) | (48) | (160) | (133) |
North America Commercial P&C Insurance [Member] | Surety [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (19) | |||
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 | (118) | (75) | (138) | (79) |
North America Commercial P&C Insurance [Member] | Commercial Excess and Umbrella [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (29) | |||
North America Commercial P&C Insurance [Member] | Other [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 2017 [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (56) | |||
North America Commercial P&C Insurance [Member] | Accident year 2017 [Member] | Catastrophe [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (3) | |||
North America Commercial P&C Insurance [Member] | Accident year 2017 [Member] | Catastrophe [Member] | Commercial Property and Marine [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (40) | (115) | ||
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 | (38) | |||
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) | |||
North America Commercial P&C Insurance [Member] | Accident years 2015 through 2017 [Member] | Other [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 14 | 74 | ||
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 2012 and 2013 [Member] | Professional 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 years 2014 and 2016 [Member] | Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (45) | (57) | ||
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 | (19) | |||
North America Commercial P&C Insurance [Member] | Accident year 2015 [Member] | Surety [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (45) | |||
North America Personal [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 7 | 1 | ||
North America Personal [Member] | Accident year 2017 [Member] | Catastrophe [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (5) | (11) | ||
North America Personal [Member] | Accident Years 2012 - 2016 [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 37 | 34 | ||
North America Agricultural Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 0 | 0 | (76) | (79) |
North America Agricultural Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 0 | 0 | 0 | 0 |
North America Agricultural Insurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 0 | 0 | (76) | (79) |
Overseas General Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (72) | (88) | (94) | (76) |
Overseas General Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (2) | 0 | (2) | 32 |
Overseas General Insurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (70) | (88) | (92) | (108) |
Overseas General Insurance [Member] | Personal lines [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (17) | |||
Overseas General Insurance [Member] | Accident and Health Insurance Product Line [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (16) | |||
Overseas General Insurance [Member] | Other [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (30) | |||
Overseas General Insurance [Member] | Accident year 2017 [Member] | Catastrophe [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (12) | |||
Overseas General Insurance [Member] | Accident year 2013 - 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] | Property and Inland Marine [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (40) | |||
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 | (16) | (31) | (30) | (23) |
Global Reinsurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (30) | |||
Global Reinsurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 14 | |||
Global Reinsurance [Member] | Other [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (27) | |||
Global Reinsurance [Member] | Accident Year 2013 and prior [Member] | Casualty & Professional [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (32) | |||
Global Reinsurance [Member] | Accident year 2017 [Member] | Catastrophe [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 9 | (1) | ||
Global Reinsurance [Member] | Accident year 2011 and prior [Member] | Casualty & Professional [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (36) | (36) | ||
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 | |||
Global Reinsurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (16) | (31) | (30) | (23) |
Global Reinsurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (30) | (36) | (30) | (28) |
Global Reinsurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 14 | 5 | 0 | 5 |
Corporate Segment [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 45 | 43 | 55 | 53 |
Corporate Segment [Member] | non-A&E run-off [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 35 | |||
Corporate Segment [Member] | Discontinued Operations [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 10 | 8 | 20 | 18 |
Corporate Segment [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 45 | 43 | 55 | 53 |
Corporate Segment [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 0 | $ 0 | 0 | $ 0 |
All segments excluding Corporate [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (236) | (455) | ||
All segments excluding Corporate [Member] | Excluding Catastrophic Events [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (64) | (188) | ||
All segments excluding Corporate [Member] | Accident years 2014 and prior [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | $ (136) | $ (125) |
Debt (Detail) € in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2018
EUR (€)
|
|
INA Senior Note Due June 2019 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | $ 500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.90% | 5.90% | ||
Debt, Current | $ 499 | $ 499 | ||
Chubb INA Senior Notes Due 2037 [Member] | Junior Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% | ||
Gain (Loss) on Extinguishment of Debt | $ (36) | $ (36) | ||
Senior Notes [Member] | INA Senior Note Due March 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,100 | € 900 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.55% | 1.55% | ||
Make Whole Premium Additional Percent | 0.15% | 0.15% | ||
Senior Notes [Member] | INA Senior Note Due March 2038 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,100 | € 900 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% | ||
Make Whole Premium Additional Percent | 0.25% | 0.25% | ||
Senior Notes [Member] | INA Senior Notes Due March 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 300 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.80% | 5.80% | ||
Senior Notes [Member] | INA Senior Note Due May 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 600 | $ 600 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% |
Commitments, Contingencies, And Guarantees (Narrative) (Detail) - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Derivative asset subject to a master netting agreement | $ 53 | |
Derivative liability subject to a master netting agreement | $ 24 | |
Repurchase agreements | 1,413 | $ 1,408 |
Purchase Commitment, Remaining Minimum Amount Committed | 948 | |
Carrying value of limited partnerships and partially-owned investment companies included in other investments | 3,900 | |
Funding commitments relating to limited partnerships and partially-owned investment companies | 3,400 | |
Unrecognized tax benefits | $ 14 |
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, 2018 |
Dec. 31, 2017 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Foreign currency forward contracts | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | $ 2,364 | $ 2,064 | ||||||||
Cross Currency Swap [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 45 | 45 | ||||||||
Options/Futures contracts on notes and bonds | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 1,409 | 1,007 | ||||||||
Convertible securities [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 10 | 6 | [1] | |||||||
Investment And Embedded Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 3,828 | 3,122 | ||||||||
Fair Value, Asset | 48 | 23 | ||||||||
Future contracts on equities [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | [2] | 1,632 | 1,553 | |||||||
Other Derivatives [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 351 | 75 | ||||||||
Other Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | 1,983 | 1,628 | ||||||||
Guaranteed Minimum Income Benefit [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Value/Payment Provision | [3] | 1,163 | 1,083 | |||||||
Fair Value, Asset | [3] | 0 | 0 | |||||||
Fixed Maturities [Member] | Convertible securities [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 9 | 5 | ||||||||
Equity [Member] | Convertible securities [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | 0 | 0 | ||||||||
Other Assets [Member] | Foreign currency forward contracts | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 33 | 14 | ||||||||
Other Assets [Member] | Cross Currency Swap [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 0 | 0 | ||||||||
Other Assets [Member] | Options/Futures contracts on notes and bonds | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 6 | 4 | ||||||||
Other Assets [Member] | Future contracts on equities [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | [2] | 32 | 0 | |||||||
Other Assets [Member] | Other Derivatives [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 18 | 1 | ||||||||
Other Assets [Member] | Other Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Asset | 50 | 1 | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Foreign currency forward contracts | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (36) | (27) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Cross Currency Swap [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | 0 | 0 | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Options/Futures contracts on notes and bonds | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (6) | (3) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Investment And Embedded Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (42) | (30) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Future contracts on equities [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | [2] | 0 | (21) | |||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivatives [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (2) | (2) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivative Instruments [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | (2) | (23) | ||||||||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Guaranteed Minimum Income Benefit [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value, Liability | [3] | $ (497) | $ (550) | |||||||
|
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, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain (Loss) on Derivative | $ 29 | $ 63 | $ 108 | $ 90 | |||||
Foreign currency forward contracts | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain (Loss) on Derivative | 3 | (7) | 7 | 7 | |||||
All Other Futures Contracts And Options [Member] | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain (Loss) on Derivative | 21 | (9) | 34 | (17) | |||||
Investment And Embedded Derivative Instruments [Member] | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain (Loss) on Derivative | 24 | (16) | 41 | (10) | |||||
Guaranteed Minimum Income Benefit [Member] | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain (Loss) on Derivative | [1] | 41 | 118 | 79 | 211 | ||||
Future contracts on equities [Member] | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain (Loss) on Derivative | [2] | (44) | (38) | (22) | (112) | ||||
Other Derivatives [Member] | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain (Loss) on Derivative | 8 | (1) | 10 | 1 | |||||
Guaranteed Living Benefit And Other Derivative Instruments [Member] | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain (Loss) on Derivative | $ 5 | $ 79 | $ 67 | $ 100 | |||||
|
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 2,355 | $ 1,737 |
Securities lending payable | 2,355 | 1,737 |
Cash and Cash Equivalents [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 990 | 828 |
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 | 100 | 36 |
Foreign Government Debt [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 909 | 712 |
Corporate [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 14 | 0 |
Collateralized Mortgage Backed Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 55 | 74 |
Equity Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 287 | $ 87 |
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
||
---|---|---|---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||||
Assets pledged under repurchase agreements | $ 1,449 | $ 1,434 | ||
Repurchase agreements | 1,413 | 1,408 | ||
U.S. Treasury And Agency [Member] | ||||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||||
Assets pledged under repurchase agreements | 254 | 239 | ||
Collateralized Mortgage Backed Securities [Member] | ||||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||||
Assets pledged under repurchase agreements | 1,195 | 1,195 | ||
Repurchase Agreements [Member] | ||||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||||
Secured Borrowings, Gross, Difference, Amount | [1] | 36 | 26 | |
Maturity Less than 30 Days [Member] | ||||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||||
Assets pledged under repurchase agreements | 578 | 378 | ||
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 | 245 | 9 | ||
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 | 333 | 369 | ||
Maturity Greater than 90 Days [Member] | ||||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||||
Assets pledged under repurchase agreements | 871 | 1,056 | ||
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 | 9 | 230 | ||
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 | $ 862 | $ 826 | ||
|
Share-Based Compensation (Detail) - $ / shares |
6 Months Ended | |
---|---|---|
Feb. 22, 2018 |
Jun. 30, 2018 |
|
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 | 1,841,329 | |
Weighted-average grant date fair value for stock options granted | $ 29.71 | |
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 | 973,624 | |
Grant date fair value of awards except for options granted to employees and officers of the company | $ 143.07 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 3 years | |
Restricted stock awards granted to employees and officers of the company | 180,065 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted to employees and officers of the company | 301,024 |
Shareholders' equity (Details) $ / shares in Units, $ in Millions |
Jun. 30, 2018
SFr / shares
shares
|
May 31, 2018
$ / shares
|
Dec. 31, 2017
SFr / shares
shares
|
Dec. 21, 2017
USD ($)
|
May 31, 2017
$ / shares
|
Nov. 30, 2016
USD ($)
|
May 31, 2016
$ / shares
|
---|---|---|---|---|---|---|---|
Equity, Class of Treasury Stock [Line Items] | |||||||
Common Shares, par value | SFr / shares | SFr 24.15 | SFr 24.15 | |||||
Annual dividend per share approved by shareholders | $ / shares | $ 2.92 | $ 2.84 | $ 2.76 | ||||
Common Shares in treasury, shares | shares | 16,281,700 | 15,950,685 | |||||
Common Stock, Dividend Rate Approved | $ / shares | $ 0.73 | $ 0.71 | $ 0.69 | ||||
Dec 2017 Stock Repurchase Plan [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized amount of share repurchase program | $ | $ 1,000 | ||||||
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, 2018
$ / shares
|
Jun. 30, 2018
SFr / shares
|
Jun. 30, 2017
$ / shares
|
Jun. 30, 2017
SFr / shares
|
Jun. 30, 2018
$ / shares
|
Jun. 30, 2018
SFr / shares
|
Jun. 30, 2017
$ / shares
|
Jun. 30, 2017
SFr / shares
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Common Stock, Dividends, Per Share, Declared | (per share) | $ 0.73 | SFr 0.73 | $ 0.71 | SFr 0.69 | $ 1.44 | SFr 1.39 | $ 1.40 | SFr 1.38 |
Shareholders' equity Share Repurchases (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 31, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Nov 2016 Stock Repurchase Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 2,381,566 | 3,417,630 | |||
Cost of shares repurchased | $ 335 | $ 475 | |||
Repurchase authorization remaining at end of period | $ 525 | $ 525 | |||
2018 Stock Repurchase Plan [Member] [Domain] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 2,443,855 | 2,443,855 | |||
Cost of shares repurchased | $ 324 | $ 324 | |||
Repurchase authorization remaining at end of period | $ 676 | $ 676 | |||
Subsequent Event [Member] | 2018 Stock Repurchase Plan [Member] [Domain] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 740,869 | ||||
Cost of shares repurchased | $ 100 | ||||
Repurchase authorization remaining at end of period | $ 576 |
Postretirement benefits Components of net periodic benefit costs (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Pension Plan [Member] | UNITED STATES | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 15 | $ 16 | $ 29 | $ 32 |
Interest cost | 27 | 26 | 53 | 52 |
Expected return on plan assets | (53) | (48) | (106) | (95) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Curtailments | 0 | 0 | 0 | 0 |
Settlement | 1 | 0 | 1 | 0 |
Net periodic (benefit) cost | (10) | (6) | (23) | (11) |
Pension Plan [Member] | Non-US [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 3 | 4 | 6 | 8 |
Interest cost | 7 | 7 | 14 | 14 |
Expected return on plan assets | (13) | (10) | (26) | (20) |
Amortization of net actuarial loss | 0 | 1 | 0 | 1 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Curtailments | 0 | (8) | 0 | (8) |
Settlement | 0 | 0 | 0 | 0 |
Net periodic (benefit) cost | (3) | (6) | (6) | (5) |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 2 | 0 | 2 |
Interest cost | 1 | 0 | 2 | 1 |
Expected return on plan assets | (1) | (1) | (2) | (2) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (22) | (23) | (43) | (46) |
Curtailments | (1) | 0 | (1) | 0 |
Settlement | 0 | 0 | 0 | 0 |
Net periodic (benefit) cost | $ (23) | $ (22) | $ (44) | $ (45) |
Segment information Segment Information (narrative Detail (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Segment Reporting Information [Line Items] | ||||
Gain (Loss) on Derivative | $ 29 | $ 63 | $ 108 | $ 90 |
Net investment income | 828 | 770 | 1,634 | 1,515 |
North America Agricultural Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Income Loss Including Gains Losses On Crop Derivatives | 43 | |||
Gain (Loss) on Derivative | 8 | |||
Net investment income | 6 | 6 | 13 | 12 |
Segment Life [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net investment income | 85 | $ 77 | $ 168 | $ 152 |
Management Underwriting Income (Loss) | 75 | |||
Gains(Losses) On Fair Value Changes In Separate Account Assets | $ (10) |
Segment Information (Operations By Segment) (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||
Segment Reporting Information [Line Items] | ||||||||||
Net premiums written | $ 8,015 | $ 7,581 | $ 15,119 | $ 14,291 | ||||||
Net premiums earned | 7,664 | 7,237 | 14,691 | 14,009 | ||||||
Losses and loss expenses | 4,487 | 4,146 | 8,589 | 7,935 | ||||||
Policy benefits | 150 | 163 | 301 | 331 | ||||||
Policy acquisition costs | 1,464 | 1,449 | 2,928 | 2,846 | ||||||
Administrative expenses | 747 | 706 | 1,439 | 1,382 | ||||||
Underwriting income (loss) | 816 | 773 | 1,434 | 1,515 | ||||||
Net investment income (loss) | 828 | 770 | 1,634 | 1,515 | ||||||
Other (income) expense | (115) | (145) | (162) | (215) | ||||||
Amortization of purchased intangibles | 85 | 65 | 170 | 129 | ||||||
Segment Income (loss) | 1,674 | 1,623 | 3,060 | 3,116 | ||||||
Net realized gains (losses) including OTTI | 18 | 101 | 16 | 94 | ||||||
Interest expense | 167 | 147 | 324 | 301 | ||||||
Chubb integration expenses | 13 | 72 | 23 | 183 | ||||||
Income tax expense | 218 | 200 | 353 | 328 | ||||||
Net income | 1,294 | 1,305 | 2,376 | 2,398 | ||||||
Prior Period Reclassification Adjustment | 1 | 13 | ||||||||
North America Commercial P&C Insurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net premiums written | 3,331 | 3,203 | [1] | 6,143 | 5,933 | [2] | ||||
Net premiums earned | 3,277 | 3,099 | 6,306 | 6,140 | ||||||
Losses and loss expenses | 2,084 | 1,936 | 3,992 | 3,796 | ||||||
Policy benefits | 0 | 0 | 0 | 0 | ||||||
Policy acquisition costs | 448 | 464 | 920 | 951 | ||||||
Administrative expenses | 253 | 241 | 484 | 472 | ||||||
Underwriting income (loss) | 492 | 458 | 910 | 921 | ||||||
Net investment income (loss) | 510 | 490 | 1,013 | 968 | ||||||
Other (income) expense | (13) | (4) | (19) | 0 | ||||||
Amortization of purchased intangibles | 0 | 0 | 0 | 0 | ||||||
Segment Income (loss) | 1,015 | 952 | 1,942 | 1,889 | ||||||
North America Personal P&C Insurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net premiums written | 1,335 | 1,255 | 2,383 | 2,239 | ||||||
Net premiums earned | 1,156 | 1,093 | 2,296 | 2,179 | ||||||
Losses and loss expenses | 728 | 683 | 1,614 | 1,316 | ||||||
Policy benefits | 0 | 0 | 0 | 0 | ||||||
Policy acquisition costs | 228 | 230 | 465 | 447 | ||||||
Administrative expenses | 68 | 66 | 133 | 131 | ||||||
Underwriting income (loss) | 132 | 114 | 84 | 285 | ||||||
Net investment income (loss) | 59 | 56 | 118 | 111 | ||||||
Other (income) expense | 1 | 1 | 1 | 2 | ||||||
Amortization of purchased intangibles | 3 | 5 | 6 | 8 | ||||||
Segment Income (loss) | 187 | 164 | 195 | 386 | ||||||
North America Agricultural Insurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net premiums written | 388 | 403 | 496 | 464 | ||||||
Net premiums earned | 351 | 344 | 394 | 358 | ||||||
Losses and loss expenses | 289 | 290 | 236 | 217 | ||||||
Policy benefits | 0 | 0 | 0 | 0 | ||||||
Policy acquisition costs | 26 | 27 | 25 | 26 | ||||||
Administrative expenses | 1 | 2 | (2) | (3) | ||||||
Underwriting income (loss) | 35 | 25 | 135 | 118 | ||||||
Net investment income (loss) | 6 | 6 | 13 | 12 | ||||||
Other (income) expense | 1 | 1 | 1 | 1 | ||||||
Amortization of purchased intangibles | 7 | 7 | 14 | 14 | ||||||
Segment Income (loss) | 33 | 23 | 133 | 115 | ||||||
Overseas General Insurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net premiums written | 2,199 | 2,007 | [1] | 4,583 | 4,219 | [2] | ||||
Net premiums earned | 2,161 | 2,018 | 4,268 | 3,954 | ||||||
Losses and loss expenses | 1,071 | 964 | 2,149 | 2,035 | ||||||
Policy benefits | 0 | 0 | 0 | 0 | ||||||
Policy acquisition costs | 584 | 555 | 1,172 | 1,084 | ||||||
Administrative expenses | 266 | 243 | 505 | 488 | ||||||
Underwriting income (loss) | 240 | 256 | 442 | 347 | ||||||
Net investment income (loss) | 155 | 148 | 306 | 296 | ||||||
Other (income) expense | (12) | (3) | (5) | (4) | ||||||
Amortization of purchased intangibles | 11 | 11 | 21 | 22 | ||||||
Segment Income (loss) | 396 | 396 | 732 | 625 | ||||||
Global Reinsurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net premiums written | 197 | 190 | 390 | 389 | ||||||
Net premiums earned | 167 | 168 | 335 | 357 | ||||||
Losses and loss expenses | 83 | 46 | 150 | 140 | ||||||
Policy benefits | 0 | 0 | 0 | 0 | ||||||
Policy acquisition costs | 40 | 43 | 80 | 94 | ||||||
Administrative expenses | 9 | 12 | 19 | 22 | ||||||
Underwriting income (loss) | 35 | 67 | 86 | 101 | ||||||
Net investment income (loss) | 65 | 65 | 129 | 127 | ||||||
Other (income) expense | (6) | 1 | (13) | 1 | ||||||
Amortization of purchased intangibles | 0 | 0 | 0 | 0 | ||||||
Segment Income (loss) | 106 | 131 | 228 | 227 | ||||||
Life Insurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net premiums written | 565 | 523 | 1,124 | 1,047 | ||||||
Net premiums earned | 552 | 515 | 1,092 | 1,021 | ||||||
Losses and loss expenses | 184 | 182 | 389 | 375 | ||||||
Policy benefits | 150 | 163 | 301 | 331 | ||||||
Policy acquisition costs | 138 | 130 | 266 | 244 | ||||||
Administrative expenses | 80 | 77 | 158 | 149 | ||||||
Underwriting income (loss) | 0 | (37) | (22) | (78) | ||||||
Net investment income (loss) | 85 | 77 | 168 | 152 | ||||||
Other (income) expense | 8 | (12) | 4 | (41) | ||||||
Amortization of purchased intangibles | 0 | 0 | 1 | 1 | ||||||
Segment Income (loss) | 77 | 52 | 141 | 114 | ||||||
Corporate Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net premiums written | 0 | 0 | 0 | 0 | ||||||
Net premiums earned | 0 | 0 | 0 | 0 | ||||||
Losses and loss expenses | 48 | 45 | 59 | 56 | ||||||
Policy benefits | 0 | 0 | 0 | 0 | ||||||
Policy acquisition costs | 0 | 0 | 0 | 0 | ||||||
Administrative expenses | 70 | 65 | 142 | 123 | ||||||
Underwriting income (loss) | (118) | (110) | (201) | (179) | ||||||
Net investment income (loss) | (52) | (72) | (113) | (151) | ||||||
Other (income) expense | (94) | (129) | (131) | (174) | ||||||
Amortization of purchased intangibles | 64 | 42 | 128 | 84 | ||||||
Segment Income (loss) | (140) | (95) | (311) | (240) | ||||||
Net realized gains (losses) including OTTI | 18 | 101 | 16 | 94 | ||||||
Interest expense | 167 | 147 | 324 | 301 | ||||||
Chubb integration expenses | 13 | 72 | 23 | 183 | ||||||
Income tax expense | 218 | 200 | 353 | 328 | ||||||
Net income | $ (520) | $ (413) | $ (995) | $ (958) | ||||||
|
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 1,294 | $ 1,305 | $ 2,376 | $ 2,398 |
Weighted-average shares outstanding | 465,276,597 | 467,981,077 | 465,488,724 | 468,244,458 |
Share-based compensation plans | 3,103,727 | 3,872,860 | 3,489,013 | 3,900,678 |
Weighted-average shares outstanding and assumed conversions | 468,380,324 | 471,853,937 | 468,977,737 | 472,145,136 |
Basic earnings per share (US$ per share) | $ 2.78 | $ 2.79 | $ 5.10 | $ 5.12 |
Diluted earnings per share (US$ per share) | $ 2.76 | $ 2.77 | $ 5.07 | $ 5.08 |
Potential anti-dilutive share conversions | 3,814,491 | 2,066,578 | 3,305,735 | 1,467,556 |
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details) |
Jun. 30, 2018 |
---|---|
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |
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, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Investments | $ 101,186 | $ 102,444 | |||||||||
Cash | 1,000 | [1] | 728 | [2] | |||||||
Restricted Cash | [1] | 101 | 123 | ||||||||
Insurance and reinsurance balances receivable | 10,341 | 9,334 | |||||||||
Reinsurance Recoverable Losses And Loss Expenses | 14,792 | 15,034 | |||||||||
Reinsurance recoverable on policy benefits | 204 | 184 | |||||||||
Value of business acquired | 311 | 326 | |||||||||
Goodwill and other intangible assets | 21,759 | 22,054 | |||||||||
Investments in subsidiaries | 0 | 0 | |||||||||
Due from subsidiaries and affiliates, net | 0 | 0 | |||||||||
Other assets | 17,840 | 16,795 | |||||||||
Total assets | 167,534 | 167,022 | |||||||||
Unpaid losses and loss expenses | 62,778 | 63,179 | $ 60,394 | $ 60,540 | |||||||
Unearned premiums | 15,748 | 15,216 | |||||||||
Future policy benefits | 5,470 | 5,321 | |||||||||
Due to subsidiaries and affiliates, net | 0 | 0 | |||||||||
Affiliated notional cash pooling programs | 0 | 0 | |||||||||
Repurchase agreements | 1,413 | 1,408 | |||||||||
Short-term debt | 600 | 1,013 | |||||||||
Long-term debt | 12,184 | 11,556 | |||||||||
Trust preferred securities | 308 | 308 | |||||||||
Other liabilities | 18,062 | 17,849 | |||||||||
Total liabilities | 116,563 | 115,850 | |||||||||
Total shareholders' equity | 50,971 | 51,172 | $ 50,349 | ||||||||
Total liabilities and shareholders’ equity | 167,534 | 167,022 | |||||||||
Chubb Limited (Parent Guarantor) | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Investments | 0 | 0 | |||||||||
Cash | 1 | [1] | 3 | [2] | |||||||
Restricted Cash | [1] | 0 | 0 | ||||||||
Insurance and reinsurance balances receivable | 0 | 0 | |||||||||
Reinsurance Recoverable 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 | 42,919 | 41,909 | |||||||||
Due from subsidiaries and affiliates, net | 8,686 | 9,639 | |||||||||
Other assets | 2 | 3 | |||||||||
Total assets | 51,608 | 51,554 | |||||||||
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 | 403 | [1] | 0 | [2] | |||||||
Repurchase agreements | 0 | 0 | |||||||||
Short-term debt | 0 | 0 | |||||||||
Long-term debt | 0 | 0 | |||||||||
Trust preferred securities | 0 | 0 | |||||||||
Other liabilities | 234 | 382 | |||||||||
Total liabilities | 637 | 382 | |||||||||
Total shareholders' equity | 50,971 | 51,172 | |||||||||
Total liabilities and shareholders’ equity | 51,608 | 51,554 | |||||||||
Chubb INA Holdings Inc (Subsidiary Issuer) | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Investments | 172 | 168 | |||||||||
Cash | 1 | [1] | 1 | [2] | |||||||
Restricted Cash | [1] | 0 | 0 | ||||||||
Insurance and reinsurance balances receivable | 0 | 0 | |||||||||
Reinsurance Recoverable 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 | 51,706 | 51,165 | |||||||||
Due from subsidiaries and affiliates, net | 0 | 0 | |||||||||
Other assets | 655 | 287 | |||||||||
Total assets | 52,534 | 51,621 | |||||||||
Unpaid losses and loss expenses | 0 | 0 | |||||||||
Unearned premiums | 0 | 0 | |||||||||
Future policy benefits | 0 | 0 | |||||||||
Due to subsidiaries and affiliates, net | 8,943 | 9,432 | |||||||||
Affiliated notional cash pooling programs | 837 | [1] | 115 | [2] | |||||||
Repurchase agreements | 0 | 0 | |||||||||
Short-term debt | 600 | 1,013 | |||||||||
Long-term debt | 12,173 | 11,546 | |||||||||
Trust preferred securities | 308 | 308 | |||||||||
Other liabilities | 2,248 | 1,411 | |||||||||
Total liabilities | 25,109 | 23,825 | |||||||||
Total shareholders' equity | 27,425 | 27,796 | |||||||||
Total liabilities and shareholders’ equity | 52,534 | 51,621 | |||||||||
Other Chubb Limited Subsidiaries | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Investments | 101,014 | 102,276 | |||||||||
Cash | 2,238 | [1] | 839 | [2] | |||||||
Restricted Cash | [1] | 101 | 123 | ||||||||
Insurance and reinsurance balances receivable | 11,297 | 10,820 | |||||||||
Reinsurance Recoverable Losses And Loss Expenses | 27,117 | 27,514 | |||||||||
Reinsurance recoverable on policy benefits | 1,127 | 1,194 | |||||||||
Value of business acquired | 311 | 326 | |||||||||
Goodwill and other intangible assets | 21,759 | 22,054 | |||||||||
Investments in subsidiaries | 0 | 0 | |||||||||
Due from subsidiaries and affiliates, net | 257 | 0 | |||||||||
Other assets | 18,760 | 20,578 | |||||||||
Total assets | 183,981 | 185,724 | |||||||||
Unpaid losses and loss expenses | 73,427 | 74,767 | |||||||||
Unearned premiums | 16,815 | 18,875 | |||||||||
Future policy benefits | 6,393 | 6,331 | |||||||||
Due to subsidiaries and affiliates, net | 0 | 207 | |||||||||
Affiliated notional cash pooling programs | 0 | [1] | 0 | [2] | |||||||
Repurchase agreements | 1,413 | 1,408 | |||||||||
Short-term debt | 0 | 0 | |||||||||
Long-term debt | 11 | 10 | |||||||||
Trust preferred securities | 0 | 0 | |||||||||
Other liabilities | 18,722 | 18,848 | |||||||||
Total liabilities | 116,781 | 120,446 | |||||||||
Total shareholders' equity | 67,200 | 65,278 | |||||||||
Total liabilities and shareholders’ equity | 183,981 | 185,724 | |||||||||
Consolidating Adjustments and Eliminations | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Investments | 0 | 0 | |||||||||
Cash | (1,240) | [1] | (115) | [2] | |||||||
Restricted Cash | [1] | 0 | 0 | ||||||||
Insurance and reinsurance balances receivable | (956) | (1,486) | |||||||||
Reinsurance Recoverable Losses And Loss Expenses | (12,325) | (12,480) | |||||||||
Reinsurance recoverable on policy benefits | (923) | (1,010) | |||||||||
Value of business acquired | 0 | 0 | |||||||||
Goodwill and other intangible assets | 0 | 0 | |||||||||
Investments in subsidiaries | (94,625) | (93,074) | |||||||||
Due from subsidiaries and affiliates, net | (8,943) | (9,639) | |||||||||
Other assets | (1,577) | (4,073) | |||||||||
Total assets | (120,589) | (121,877) | |||||||||
Unpaid losses and loss expenses | (10,649) | (11,588) | |||||||||
Unearned premiums | (1,067) | (3,659) | |||||||||
Future policy benefits | (923) | (1,010) | |||||||||
Due to subsidiaries and affiliates, net | (8,943) | (9,639) | |||||||||
Affiliated notional cash pooling programs | (1,240) | [1] | (115) | [2] | |||||||
Repurchase agreements | 0 | 0 | |||||||||
Short-term debt | 0 | 0 | |||||||||
Long-term debt | 0 | 0 | |||||||||
Trust preferred securities | 0 | 0 | |||||||||
Other liabilities | (3,142) | (2,792) | |||||||||
Total liabilities | (25,964) | (28,803) | |||||||||
Total shareholders' equity | (94,625) | (93,074) | |||||||||
Total liabilities and shareholders’ equity | $ (120,589) | $ (121,877) | |||||||||
|
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, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | $ 8,015 | $ 7,581 | $ 15,119 | $ 14,291 |
Net premiums earned | 7,664 | 7,237 | 14,691 | 14,009 |
Net investment income | 828 | 770 | 1,634 | 1,515 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 |
Net realized gains (losses) including OTTI | 18 | 101 | 16 | 94 |
Losses and loss expenses | 4,487 | 4,146 | 8,589 | 7,935 |
Policy benefits | 150 | 163 | 301 | 331 |
Policy acquisition costs and administrative expenses | 2,211 | 2,155 | 4,367 | 4,228 |
Interest (income) expense | 167 | 147 | 324 | 301 |
Other (income) expense | (115) | (145) | (162) | (215) |
Amortization of purchased intangibles | 85 | 65 | 170 | 129 |
Chubb integration expenses | 13 | 72 | 23 | 183 |
Income tax expense | 218 | 200 | 353 | 328 |
Net income | 1,294 | 1,305 | 2,376 | 2,398 |
Comprehensive income (loss) | 277 | 1,675 | 730 | 3,082 |
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 |
Income (Loss) from Subsidiaries, Net of Tax | (1,695) | (1,918) | (3,602) | (3,646) |
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 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Net income | (1,695) | (1,918) | (3,602) | (3,646) |
Comprehensive income (loss) | 110 | (2,676) | (720) | (5,005) |
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 | 1 | 2 | 3 | 2 |
Income (Loss) from Subsidiaries, Net of Tax | 1,241 | 1,253 | 2,263 | 2,280 |
Net realized gains (losses) including OTTI | 2 | (2) | 0 | (2) |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | 23 | 18 | 41 | 36 |
Interest (income) expense | (76) | (84) | (156) | (168) |
Other (income) expense | (4) | 4 | (9) | (2) |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Chubb integration expenses | 2 | 6 | 4 | 6 |
Income tax expense | 5 | 4 | 10 | 10 |
Net income | 1,294 | 1,305 | 2,376 | 2,398 |
Comprehensive income (loss) | 277 | 1,675 | 730 | 3,082 |
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 | 5 | 4 | 9 | 7 |
Income (Loss) from Subsidiaries, Net of Tax | 454 | 665 | 1,339 | 1,366 |
Net realized gains (losses) including OTTI | 73 | (1) | 49 | (14) |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | 19 | (2) | 41 | 12 |
Interest (income) expense | 204 | 212 | 413 | 433 |
Other (income) expense | 8 | 10 | 16 | 25 |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Chubb integration expenses | 0 | 4 | 1 | 53 |
Income tax expense | (36) | (87) | (95) | (199) |
Net income | 337 | 531 | 1,021 | 1,035 |
Comprehensive income (loss) | (462) | 920 | (246) | 1,711 |
Other Chubb Limited Subsidiaries | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | 8,015 | 7,581 | 15,119 | 14,291 |
Net premiums earned | 7,664 | 7,237 | 14,691 | 14,009 |
Net investment income | 822 | 764 | 1,622 | 1,506 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 |
Net realized gains (losses) including OTTI | (57) | 104 | (33) | 110 |
Losses and loss expenses | 4,487 | 4,146 | 8,589 | 7,935 |
Policy benefits | 150 | 163 | 301 | 331 |
Policy acquisition costs and administrative expenses | 2,169 | 2,139 | 4,285 | 4,180 |
Interest (income) expense | 39 | 19 | 67 | 36 |
Other (income) expense | (119) | (159) | (169) | (238) |
Amortization of purchased intangibles | 85 | 65 | 170 | 129 |
Chubb integration expenses | 11 | 62 | 18 | 124 |
Income tax expense | 249 | 283 | 438 | 517 |
Net income | 1,358 | 1,387 | 2,581 | 2,611 |
Comprehensive income (loss) | $ 352 | $ 1,756 | $ 966 | $ 3,294 |
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) - USD ($) $ in Millions |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||
Net cash flows from operating activities | $ 2,197 | $ 1,640 | ||||||
Purchases of fixed maturities available for sale | (12,297) | (12,260) | ||||||
Purchases of fixed maturities held to maturity | (337) | (212) | ||||||
Purchases of equity securities | (85) | (82) | ||||||
Sales of fixed maturities available for sale | 6,858 | 6,873 | ||||||
Sales of equity securities | 83 | 104 | ||||||
Maturities and redemptions of fixed maturities available for sale | 3,920 | 5,169 | ||||||
Maturities and redemptions of fixed maturities held to maturity | 732 | 408 | ||||||
Net change in short-term investments | 401 | 354 | ||||||
Net derivative instruments settlements | 5 | (129) | ||||||
Private equity contribution | (813) | (345) | ||||||
Private equity distribution | 413 | 487 | ||||||
Capital contribution | 0 | |||||||
Other | (140) | (244) | ||||||
Net cash flows from (used for) investing activities | (1,260) | 123 | ||||||
Dividends paid on Common Shares | (661) | (646) | ||||||
Common Shares repurchased | (347) | (475) | ||||||
Proceeds from Issuance of Long-term Debt | 2,171 | 0 | ||||||
Proceeds from issuance of long-term debt | (1,900) | (500) | ||||||
Proceeds from issuance of repurchase agreements | 1,014 | 1,343 | ||||||
Repayments of repurchase agreements | (1,009) | (1,338) | ||||||
Proceeds from share-based compensation plans | 60 | 89 | ||||||
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 | 192 | 209 | ||||||
Policyholder contract withdrawals | (169) | (125) | ||||||
Net cash flows used for financing activities | (649) | (1,443) | ||||||
Effect of foreign currency rate changes on cash and restricted cash | (38) | 11 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 250 | 331 | ||||||
Cash and Restricted Cash - Beginning of year | 851 | 1,088 | ||||||
Cash and Restricted Cash - end of Year | 1,101 | 1,419 | ||||||
Chubb Limited (Parent Guarantor) | ||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||
Net cash flows from operating activities | 43 | 551 | ||||||
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 | ||||||
Private equity contribution | 0 | 0 | ||||||
Private equity distribution | 0 | 0 | ||||||
Capital contribution | (750) | |||||||
Other | 0 | 0 | ||||||
Net cash flows from (used for) investing activities | (750) | 0 | ||||||
Dividends paid on Common Shares | (661) | (646) | ||||||
Common Shares repurchased | 0 | 0 | ||||||
Proceeds from Issuance of Long-term Debt | 0 | |||||||
Proceeds from issuance of long-term debt | 0 | 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 | 963 | 264 | ||||||
Capital contribution | 0 | |||||||
Net proceeds from (payments to) affiliated notional cash pooling program | 403 | [1] | (170) | [2] | ||||
Policyholder contract deposits | 0 | 0 | ||||||
Policyholder contract withdrawals | 0 | 0 | ||||||
Net cash flows used for financing activities | 705 | (552) | ||||||
Effect of foreign currency rate changes on cash and restricted cash | 0 | 0 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (2) | (1) | ||||||
Cash and Restricted Cash - Beginning of year | 3 | 1 | ||||||
Cash and Restricted Cash - end of Year | 1 | 0 | ||||||
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||
Net cash flows from operating activities | 3,042 | 1,444 | ||||||
Purchases of fixed maturities available for sale | (22) | (5) | ||||||
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 | 14 | 13 | ||||||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||||||
Net change in short-term investments | 6 | 166 | ||||||
Net derivative instruments settlements | (8) | (7) | ||||||
Private equity contribution | 0 | 0 | ||||||
Private equity distribution | 0 | 0 | ||||||
Capital contribution | (3,500) | |||||||
Other | (7) | 2 | ||||||
Net cash flows from (used for) investing activities | (3,517) | 169 | ||||||
Dividends paid on Common Shares | 0 | 0 | ||||||
Common Shares repurchased | 0 | 0 | ||||||
Proceeds from Issuance of Long-term Debt | 2,171 | |||||||
Proceeds from issuance of long-term debt | (1,900) | (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 | (518) | (328) | ||||||
Capital contribution | 0 | |||||||
Net proceeds from (payments to) affiliated notional cash pooling program | 722 | [1] | (619) | [2] | ||||
Policyholder contract deposits | 0 | 0 | ||||||
Policyholder contract withdrawals | 0 | 0 | ||||||
Net cash flows used for financing activities | 475 | (1,447) | ||||||
Effect of foreign currency rate changes on cash and restricted cash | 0 | 0 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 166 | ||||||
Cash and Restricted Cash - Beginning of year | 1 | 1 | ||||||
Cash and Restricted Cash - end of Year | 1 | 167 | ||||||
Other Chubb Limited Subsidiaries | ||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||
Net cash flows from operating activities | 2,187 | 1,686 | ||||||
Purchases of fixed maturities available for sale | (12,275) | (12,255) | ||||||
Purchases of fixed maturities held to maturity | (337) | (212) | ||||||
Purchases of equity securities | (85) | (82) | ||||||
Sales of fixed maturities available for sale | 6,858 | 6,873 | ||||||
Sales of equity securities | 83 | 104 | ||||||
Maturities and redemptions of fixed maturities available for sale | 3,906 | 5,156 | ||||||
Maturities and redemptions of fixed maturities held to maturity | 732 | 408 | ||||||
Net change in short-term investments | 395 | 188 | ||||||
Net derivative instruments settlements | 13 | (122) | ||||||
Private equity contribution | (813) | (345) | ||||||
Private equity distribution | 413 | 487 | ||||||
Capital contribution | 0 | |||||||
Other | (133) | (246) | ||||||
Net cash flows from (used for) investing activities | (1,243) | (46) | ||||||
Dividends paid on Common Shares | 0 | 0 | ||||||
Common Shares repurchased | (347) | (475) | ||||||
Proceeds from Issuance of Long-term Debt | 0 | |||||||
Proceeds from issuance of long-term debt | 0 | 0 | ||||||
Proceeds from issuance of repurchase agreements | 1,014 | 1,343 | ||||||
Repayments of repurchase agreements | (1,009) | (1,338) | ||||||
Proceeds from share-based compensation plans | 60 | 89 | ||||||
Dividend to Parent Company | (3,075) | (2,041) | ||||||
Advances (to) from affiliates | (445) | 64 | ||||||
Capital contribution | 4,250 | |||||||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | [1] | 0 | [2] | ||||
Policyholder contract deposits | 192 | 209 | ||||||
Policyholder contract withdrawals | (169) | (125) | ||||||
Net cash flows used for financing activities | 471 | (2,274) | ||||||
Effect of foreign currency rate changes on cash and restricted cash | (38) | 11 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 1,377 | (623) | ||||||
Cash and Restricted Cash - Beginning of year | 962 | 2,068 | ||||||
Cash and Restricted Cash - end of Year | 2,339 | 1,445 | ||||||
Consolidation, Eliminations [Member] | ||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||
Net cash flows from operating activities | (3,075) | (2,041) | ||||||
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 | ||||||
Private equity contribution | 0 | 0 | ||||||
Private equity distribution | 0 | 0 | ||||||
Capital contribution | 4,250 | |||||||
Other | 0 | 0 | ||||||
Net cash flows from (used for) investing activities | 4,250 | 0 | ||||||
Dividends paid on Common Shares | 0 | 0 | ||||||
Common Shares repurchased | 0 | 0 | ||||||
Proceeds from Issuance of Long-term Debt | 0 | |||||||
Proceeds from issuance of long-term debt | 0 | 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 | 3,075 | 2,041 | ||||||
Advances (to) from affiliates | 0 | 0 | ||||||
Capital contribution | (4,250) | |||||||
Net proceeds from (payments to) affiliated notional cash pooling program | (1,125) | [1] | 789 | [2] | ||||
Policyholder contract deposits | 0 | 0 | ||||||
Policyholder contract withdrawals | 0 | 0 | ||||||
Net cash flows used for financing activities | (2,300) | 2,830 | ||||||
Effect of foreign currency rate changes on cash and restricted cash | 0 | 0 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (1,125) | 789 | ||||||
Cash and Restricted Cash - Beginning of year | (115) | (982) | ||||||
Cash and Restricted Cash - end of Year | $ (1,240) | $ (193) | ||||||
|
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