Information provided in connection with outstanding debt of subsidiaries (Tables)

9 Months Ended

Sep. 30, 2018

Table Text Block Supplement [Abstract]

Condensed Consolidating Balance Sheet at September 30, 2018



(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	$	—	$	183	$	100,980	$	—		$	101,163
Cash ⁽¹⁾	—		1		1,298		(246		)	1,053
Restricted cash	—		—		104		—			104
Insurance and reinsurance balances receivable	—		—		10,486		(293		)	10,193
Reinsurance recoverable on losses and loss expenses	—		—		26,408		(11,320		)	15,088
Reinsurance recoverable on policy benefits	—		—		1,109		(903		)	206
Value of business acquired	—		—		298		—			298
Goodwill and other intangible assets	—		—		21,471		—			21,471
Investments in subsidiaries	43,528		50,132		—		(93,660		)	—
Due from subsidiaries and affiliates, net	7,917		—		111		(8,028		)	—
Other assets	3		678		18,985		(1,558		)	18,108
Total assets	$	51,448	$	50,994	$	181,250	$	(116,008	)	$	167,684
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	73,422	$	(10,393	)	$	63,029
Unearned premiums	—		—		16,793		(1,068		)	15,725
Future policy benefits	—		—		6,366		(903		)	5,463
Due to subsidiaries and affiliates, net	—		8,028		—		(8,028		)	—
Affiliated notional cash pooling programs ⁽¹⁾	165		81		—		(246		)	—
Repurchase agreements	—		—		1,414		—			1,414
Short-term debt	—		500		—		—			500
Long-term debt	—		12,138		11		—			12,149
Trust preferred securities	—		308		—		—			308
Other liabilities	349		2,418		17,105		(1,710		)	18,162
Total liabilities	514		23,473		115,111		(22,348		)	116,750
Total shareholders’ equity	50,934		27,521		66,139		(93,660		)	50,934
Total liabilities and shareholders’ equity	$	51,448	$	50,994	$	181,250	$	(116,008	)	$	167,684

⁽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 September 30, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2017



(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.

Condensed Consolidating Statement Of Operations and Comprehensive Income

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended September 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)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	8,110		$	—		$	8,110
Net premiums earned	—			—			7,908			—			7,908
Net investment income	2			3			818			—			823
Equity in earnings of subsidiaries	1,177			709			—			(1,886		)	—
Net realized gains (losses) including OTTI	(1		)	18			2			—			19
Losses and loss expenses	—			—			4,868			—			4,868
Policy benefits	—			—			127			—			127
Policy acquisition costs and administrative expenses	23			(90		)	2,290			—			2,223
Interest (income) expense	(75		)	203			36			—			164
Other (income) expense	(9		)	12			(148		)	—			(145		)
Amortization of purchased intangibles	—			—			83			—			83
Chubb integration expenses	3			1			12			—			16
Income tax expense (benefit)	5			(24		)	202			—			183
Net income	$	1,231		$	628		$	1,258		$	(1,886	)	$	1,231
Comprehensive income	$	592		$	47		$	640		$	(687	)	$	592

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended September 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)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	7,902		$	—		$	7,902
Net premiums earned	—			—			7,807			—			7,807
Net investment income	1			3			809			—			813
Equity in earnings of subsidiaries	(127		)	212			—			(85		)	—
Net realized gains (losses) including OTTI	—			(8		)	(2		)	—			(10		)
Losses and loss expenses	—			—			6,247			—			6,247
Policy benefits	—			—			169			—			169
Policy acquisition costs and administrative expenses	20			16			2,166			—			2,202
Interest (income) expense	(84		)	208			26			—			150
Other (income) expense	(5		)	9			(122		)	—			(118		)
Amortization of purchased intangibles	—			—			65			—			65
Chubb integration expenses	7			1			42			—			50
Income tax expense (benefit)	6			(89		)	(2		)	—			(85		)
Net income (loss)	$	(70	)	$	62		$	23		$	(85	)	$	(70	)
Comprehensive income	$	629		$	748		$	724		$	(1,472	)	$	629

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Nine Months Ended September 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)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	23,229		$	—		$	23,229
Net premiums earned	—			—			22,599			—			22,599
Net investment income	5			12			2,440			—			2,457
Equity in earnings of subsidiaries	3,440			2,048			—			(5,488		)	—
Net realized gains (losses) including OTTI	(1		)	67			(31		)	—			35
Losses and loss expenses	—			—			13,457			—			13,457
Policy benefits	—			—			428			—			428
Policy acquisition costs and administrative expenses	64			(49		)	6,575			—			6,590
Interest (income) expense	(231		)	616			103			—			488
Other (income) expense	(18		)	28			(317		)	—			(307		)
Amortization of purchased intangibles	—			—			253			—			253
Chubb integration expenses	7			2			30			—			39
Income tax expense (benefit)	15			(119		)	640			—			536
Net income	$	3,607		$	1,649		$	3,839		$	(5,488	)	$	3,607
Comprehensive income (loss)	$	1,322		$	(199	)	$	1,606		$	(1,407	)	$	1,322

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Nine Months Ended September 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)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	22,193		$	—		$	22,193
Net premiums earned	—			—			21,816			—			21,816
Net investment income	3			10			2,315			—			2,328
Equity in earnings of subsidiaries	2,153			1,578			—			(3,731		)	—
Net realized gains (losses) including OTTI	(2		)	(22		)	108			—			84
Losses and loss expenses	—			—			14,182			—			14,182
Policy benefits	—			—			500			—			500
Policy acquisition costs and administrative expenses	56			28			6,346			—			6,430
Interest (income) expense	(252		)	641			62			—			451
Other (income) expense	(7		)	34			(360		)	—			(333		)
Amortization of purchased intangibles	—			—			194			—			194
Chubb integration expenses	13			54			166			—			233
Income tax expense (benefit)	16			(288		)	515			—			243
Net income	$	2,328		$	1,097		$	2,634		$	(3,731	)	$	2,328
Comprehensive income	$	3,711		$	2,459		$	4,018		$	(6,477	)	$	3,711

Condensed Consolidating Statement of Cash Flows



For the Nine Months Ended September 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	$	237		$	4,701		$	3,797		$	(4,838	)	$	3,897
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(30		)	(16,758		)	—			(16,788		)
Purchases of fixed maturities held to maturity	—			—			(380		)	—			(380		)
Purchases of equity securities	—			—			(148		)	—			(148		)
Sales of fixed maturities available for sale	—			6			9,035			—			9,041
Sales of equity securities	—			—			247			—			247
Maturities and redemptions of fixed maturities available for sale	—			15			5,467			—			5,482
Maturities and redemptions of fixed maturities held to maturity	—			—			1,001			—			1,001
Net change in short-term investments	—			6			58			—			64
Net derivative instruments settlements	—			(7		)	(39		)	—			(46		)
Private equity contributions	—			—			(1,112		)	—			(1,112		)
Private equity distributions	—			—			743			—			743
Capital contribution	(1,125		)	(3,500		)	—			4,625			—
Other	—			(18		)	(213		)	—			(231		)
Net cash flows used for investing activities	(1,125		)	(3,528		)	(2,099		)	4,625			(2,127		)
Cash flows from financing activities
Dividends paid on Common Shares	(1,001		)	—			—			—			(1,001		)
Common Shares repurchased	—			—			(732		)	—			(732		)
Proceeds from issuance of long-term debt	—			2,171			—			—			2,171
Repayment of long-term debt	—			(2,000		)	(1		)	—			(2,001		)
Proceeds from issuance of repurchase agreements	—			—			1,572			—			1,572
Repayment of repurchase agreements	—			—			(1,566		)	—			(1,566		)
Proceeds from share-based compensation plans	—			—			86			—			86
Dividend to parent company	—			—			(4,838		)	4,838			—
Advances (to) from affiliates	1,722			(1,310		)	(412		)	—			—
Capital contribution	—			—			4,625			(4,625		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	165			(34		)	—			(131		)	—
Policyholder contract deposits	—			—			269			—			269
Policyholder contract withdrawals	—			—			(222		)	—			(222		)
Net cash flows from (used for) financing activities	886			(1,173		)	(1,219		)	82			(1,424		)
Effect of foreign currency rate changes on cash and restricted cash	(1		)	—			(39		)	—			(40		)
Net increase (decrease) in cash and restricted cash	(3		)	—			440			(131		)	306
Cash and restricted cash – beginning of period⁽¹⁾	3			1			962			(115		)	851
Cash and restricted cash – end of period⁽¹⁾	$	—		$	1		$	1,402		$	(246	)	$	1,157

⁽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 September 30, 2018 and December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows



For the Nine Months Ended September 30, 2017	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	639		$	1,472		$	3,341		$	(2,041	)	$	3,411
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(9		)	(18,469		)	—			(18,478		)
Purchases of fixed maturities held to maturity	—			—			(262		)	—			(262		)
Purchases of equity securities	—			—			(125		)	—			(125		)
Sales of fixed maturities available for sale	—			99			9,116			—			9,215
Sales of equity securities	—			—			152			—			152
Maturities and redemptions of fixed maturities available for sale	—			22			7,677			—			7,699
Maturities and redemptions of fixed maturities held to maturity	—			—			644			—			644
Net change in short-term investments	—			197			(153		)	—			44
Net derivative instruments settlements	—			(13		)	(157		)	—			(170		)
Private equity contributions	—			—			(485		)	—			(485		)
Private equity distributions	—			—			744			—			744
Other	—			6			(325		)	—			(319		)
Net cash flows from (used for) investing activities	—			302			(1,643		)	—			(1,341		)
Cash flows from financing activities
Dividends paid on Common Shares	(978		)	—			—			—			(978		)
Common Shares repurchased	—			—			(707		)	—			(707		)
Repayment of long-term debt	—			(500		)	—			—			(500		)
Proceeds from issuance of repurchase agreements	—			—			1,798			—			1,798
Repayment of repurchase agreements	—			—			(1,793		)	—			(1,793		)
Proceeds from share-based compensation plans	—			—			109			—			109
Dividend to parent company	—			—			(2,041		)	2,041			—
Advances (to) from affiliates	617			(658		)	41			—			—
Net proceeds from affiliated notional cash pooling programs⁽¹⁾	(278		)	(617		)	—			895			—
Policyholder contract deposits	—			—			312			—			312
Policyholder contract withdrawals	—			—			(211		)	—			(211		)
Net cash flows used for financing activities	(639		)	(1,775		)	(2,492		)	2,936			(1,970		)
Effect of foreign currency rate changes on cash and restricted cash	—			—			5			—			5
Net increase (decrease) in cash and restricted cash	—			(1		)	(789		)	895			105
Cash and restricted cash – beginning of period⁽¹⁾	1			1			2,068			(982		)	1,088
Cash and restricted cash – end of period⁽¹⁾	$	1		$	—		$	1,279		$	(87	)	$	1,193

⁽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 September 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.