Segment information

6 Months Ended

Jun. 30, 2020

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 losses 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 measure 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 expense 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, 2020, underwriting income in our North America Agricultural Insurance segment was $31 million. This amount includes $1 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 (loss) 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 (loss). For example, for the three months ended June 30, 2020, Life Insurance underwriting income of $71 million includes Net investment income of $95 million and gains from fair value changes in separate account assets of $40 million. The gains from fair value changes in separate account assets are reported in Other (income) expense in the table below.

The following tables present the Statement of Operations by segment:


For the Three Months Ended June 30, 2020 (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	$	3,720	$	1,327	$	461	$	2,021	$	207	$	619	$	—	$	8,355
Net premiums earned	3,595		1,192		376		2,194		163		608		—		8,128
Losses and loss expenses	3,498		762		312		1,485		73		171		276		6,577
Policy benefits	—		—		—		—		—		223		—		223
Policy acquisition costs	471		231		29		624		42		196		—		1,593
Administrative expenses	249		66		3		241		9		82		77		727
Underwriting income (loss)	(623)		133		32		(156)		39		(64)		(353)		(992)
Net investment income (loss)	507		65		7		124		51		95		(22)		827
Other (income) expense	4		1		1		8		(8)		(57)		109		58
Amortization expense of purchased intangibles	—		3		6		11		—		1		51		72
Segment income (loss)	$	(120)	$	194	$	32	$	(51)	$	98	$	87	$	(535)	$	(295)
Net realized gains (losses)													30		30
Interest expense													128		128

Income tax benefit													(62)		(62)
Net loss													$	(571)	$	(331)


For the Three Months Ended June 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	$	3,534	$	1,309	$	466	$	2,258	$	197	$	579	$	—	$	8,343
Net premiums earned	3,390		1,168		378		2,225		159		571		—		7,891
Losses and loss expenses	2,214		747		316		1,125		90		189		34		4,715
Policy benefits	—		—		—		—		—		161		—		161
Policy acquisition costs	459		237		27		629		42		150		—		1,544
Administrative expenses	259		71		4		265		7		78		74		758
Underwriting income (loss)	458		113		31		206		20		(7)		(108)		713
Net investment income (loss)	521		64		4		151		55		97		(33)		859
Other (income) expense	2		1		1		3		(15)		(7)		(215)		(230)
Amortization expense of purchased intangibles	—		3		7		12		—		1		54		77
Segment income	$	977	$	173	$	27	$	342	$	90	$	96	$	20	$	1,725
Net realized gains (losses) including OTTI													(223)		(223)
Interest expense													140		140
Chubb integration expenses													4		4
Income tax expense													208		208
Net income (loss)													$	(555)	$	1,150


For the Six Months Ended June 30, 2020 (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	$	6,972	$	2,434	$	618	$	4,619	$	425	$	1,264	$	—	$	16,332
Net premiums earned	6,971		2,392		470		4,501		349		1,239		—		15,922
Losses and loss expenses	5,679		1,445		375		2,743		160		373		287		11,062
Policy benefits	—		—		—		—		—		352		—		352
Policy acquisition costs	963		476		40		1,266		87		376		—		3,208
Administrative expenses	508		134		7		499		19		158		143		1,468
Underwriting income (loss)	(179)		337		48		(7)		83		(20)		(430)		(168)
Net investment income (loss)	1,023		131		16		269		105		190		(46)		1,688
Other (income) expense	1		3		1		12		(23)		(13)		132		113
Amortization expense of purchased intangibles	—		6		13		23		—		2		101		145
Segment income (loss)	$	843	$	459	$	50	$	227	$	211	$	181	$	(709)	$	1,262
Net realized gains (losses)													(928)		(928)
Interest expense													260		260

Income tax expense													153		153
Net loss													$	(2,050)	$	(79)


For the Six Months Ended June 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	$	6,485	$	2,365	$	596	$	4,653	$	399	$	1,158	$	—	$	15,656
Net premiums earned	6,475		2,322		433		4,339		327		1,132		—		15,028
Losses and loss expenses	4,187		1,504		289		2,231		166		391		45		8,813
Policy benefits	—		—		—		—		—		357		—		357
Policy acquisition costs	918		468		34		1,225		85		278		—		3,008
Administrative expenses	499		139		5		514		17		157		137		1,468
Underwriting income (loss)	871		211		105		369		59		(51)		(182)		1,382
Net investment income (loss)	1,031		128		14		295		111		186		(70)		1,695
Other (income) expense	(3)		1		1		7		(24)		(47)		(204)		(269)
Amortization expense of purchased intangibles	—		6		14		23		—		1		109		153
Segment income (loss)	$	1,905	$	332	$	104	$	634	$	194	$	181	$	(157)	$	3,193
Net realized gains (losses) including OTTI													(320)		(320)
Interest expense													280		280
Chubb integration expenses													7		7
Income tax expense													396		396
Net income (loss)													$	(1,160)	$	2,190

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.