Segment information

9 Months Ended

Sep. 30, 2019

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 and certain other non-A&E run-off exposures.

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 (loss), 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 September 30, 2019, underwriting income in our North America Agricultural Insurance segment was $1 million. This amount includes $14 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) in the Corporate column below.

For the Life Insurance segment, management includes Net investment income and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life Insurance

underwriting income. For example, for the three months ended September 30, 2019, Life Insurance underwriting income of $79 million includes Net investment income of $92 million and losses from fair value changes in separate account assets of $7 million. The 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:



For the Three Months Ended September 30, 2019 (in millions of U.S. dollars)	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance		Global Reinsurance			Life Insurance			Corporate			Chubb Consolidated



Net premiums written	$	3,452		$	1,251	$	938	$	2,228	$	141		$	612		$	—		$	8,622
Net premiums earned	3,185			1,187		941		2,256		160			598			—			8,327
Losses and loss expenses	2,051			674		866		1,154		79			190			38			5,052
Policy benefits	—			—		—		—		—			158			—			158
Policy acquisition costs	459			240		56		630		42			176			—			1,603
Administrative expenses	256			72		4		257		9			80			74			752
Underwriting income (loss)	419			201		15		215		30			(6		)	(112		)	762
Net investment income (loss)	532			66		8		148		55			92			(28		)	873
Other (income) expense	(1		)	1		—		3		(16		)	(10		)	(34		)	(57		)
Amortization expense of purchased intangibles	—			3		7		11		—			1			54			76
Segment income (loss)	$	952		$	263	$	16	$	349	$	101		$	95		$	(160	)	$	1,616
Net realized gains (losses) including OTTI																(155		)	(155		)
Interest expense																138			138
Chubb integration expenses																2			2
Income tax expense																230			230
Net income (loss)																$	(685	)	$	1,091



For the Three Months Ended September 30, 2018 (in millions of U.S. dollars)	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance			Global Reinsurance			Life Insurance		Corporate			Chubb Consolidated



Net premiums written	$	3,199		$	1,218	$	884	$	2,081		$	164		$	564	$	—		$	8,110
Net premiums earned	3,019			1,167		857		2,157			157			551		—			7,908
Losses and loss expenses	1,881			860		719		1,114			86			195		13			4,868
Policy benefits	—			—		—		—			—			127		—			127
Policy acquisition costs	458			236		49		582			40			139		—			1,504
Administrative expenses	251			69		2		252			10			77		58			719
Underwriting income (loss)	429			2		87		209			21			13		(71		)	690
Net investment income (loss)	503			59		7		155			63			85		(49		)	823
Other (income) expense	(1		)	—		—		(7		)	(13		)	20		(144		)	(145		)
Amortization expense of purchased intangibles	—			4		7		8			—			—		64			83
Segment income (loss)	$	933		$	57	$	87	$	363		$	97		$	78	$	(40	)	$	1,575
Net realized gains (losses) including OTTI																19			19
Interest expense																164			164
Chubb integration expenses																16			16
Income tax expense																183			183
Net income (loss)																$	(384	)	$	1,231



For the Nine Months Ended September 30, 2019 (in millions of U.S. dollars)	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance		Global Reinsurance			Life Insurance			Corporate			Chubb Consolidated



Net premiums written	$	9,937		$	3,616	$	1,534	$	6,881	$	540		$	1,770		$	—		$	24,278
Net premiums earned	9,660			3,509		1,374		6,595		487			1,730			—			23,355
Losses and loss expenses	6,238			2,178		1,155		3,385		245			581			83			13,865
Policy benefits	—			—		—		—		—			515			—			515
Policy acquisition costs	1,377			708		90		1,855		127			454			—			4,611
Administrative expenses	755			211		9		771		26			237			211			2,220
Underwriting income (loss)	1,290			412		120		584		89			(57		)	(294		)	2,144
Net investment income (loss)	1,563			194		22		443		166			278			(98		)	2,568
Other (income) expense	(4		)	2		1		10		(40		)	(57		)	(238		)	(326		)
Amortization expense of purchased intangibles	—			9		21		34		—			2			163			229
Segment income (loss)	$	2,857		$	595	$	120	$	983	$	295		$	276		$	(317	)	$	4,809
Net realized gains (losses) including OTTI																(475		)	(475		)
Interest expense																418			418
Chubb integration expenses																9			9
Income tax expense																626			626
Net income (loss)																$	(1,845	)	$	3,281



For the Nine Months Ended September 30, 2018 (in millions of U.S. dollars)	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance			Global Reinsurance			Life Insurance			Corporate			Chubb Consolidated



Net premiums written	$	9,342		$	3,601	$	1,380	$	6,664		$	554		$	1,688		$	—		$	23,229
Net premiums earned	9,325			3,463		1,251		6,425			492			1,643			—			22,599
Losses and loss expenses	5,873			2,474		955		3,263			236			584			72			13,457
Policy benefits	—			—		—		—			—			428			—			428
Policy acquisition costs	1,378			701		74		1,754			120			405			—			4,432
Administrative expenses	735			202		—		757			29			235			200			2,158
Underwriting income (loss)	1,339			86		222		651			107			(9		)	(272		)	2,124
Net investment income (loss)	1,516			177		20		461			192			253			(162		)	2,457
Other (income) expense	(20		)	1		1		(12		)	(26		)	24			(275		)	(307		)
Amortization expense of purchased intangibles	—			10		21		29			—			1			192			253
Segment income (loss)	$	2,875		$	252	$	220	$	1,095		$	325		$	219		$	(351	)	$	4,635
Net realized gains (losses) including OTTI																	35			35
Interest expense																	488			488
Chubb integration expenses																	39			39
Income tax expense																	536			536
Net income (loss)																	$	(1,379	)	$	3,607

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.