Information provided in connection with outstanding debt of subsidiaries

6 Months Ended

Jun. 30, 2020

Disclosure Text Block Supplement [Abstract]

Information provided in connection with outstanding debt of subsidiaries

The following tables present condensed consolidating financial information at June 30, 2020 and December 31, 2019, and for the three and six months ended June 30, 2020 and 2019 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, 2020


(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	$	—	$	195	$	110,682	$	—	$	110,877
Cash ⁽¹⁾	1		—		2,624		(1,068)		1,557
Restricted cash	—		—		152		—		152
Insurance and reinsurance balances receivable	—		—		13,637		(2,784)		10,853
Reinsurance recoverable on losses and loss expenses	—		—		24,804		(9,597)		15,207
Reinsurance recoverable on policy benefits	—		—		292		(95)		197
Value of business acquired	—		—		290		—		290
Goodwill and other intangible assets	—		—		21,093		—		21,093
Investments in subsidiaries	52,339		52,752		—		(105,091)		—
Due from subsidiaries and affiliates, net	3,636		—		—		(3,636)		—
Other assets	8		336		22,858		(1,954)		21,248
Total assets	$	55,984	$	53,283	$	196,432	$	(124,225)	$	181,474
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	75,013	$	(9,314)	$	65,699
Unearned premiums	—		—		18,301		(1,220)		17,081
Future policy benefits	—		—		5,990		(95)		5,895
Due to subsidiaries and affiliates, net	—		3,365		271		(3,636)		—
Affiliated notional cash pooling programs ⁽¹⁾	882		186		—		(1,068)		—
Repurchase agreements	—		—		1,409		—		1,409
Short-term debt	—		1,300		—		—		1,300
Long-term debt	—		13,656		—		—		13,656
Trust preferred securities	—		308		—		—		308
Other liabilities	342		1,415		23,410		(3,801)		21,366
Total liabilities	1,224		20,230		124,394		(19,134)		126,714
Total shareholders’ equity	54,760		33,053		72,038		(105,091)		54,760
Total liabilities and shareholders’ equity	$	55,984	$	53,283	$	196,432	$	(124,225)	$	181,474

⁽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, 2020, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2019


(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	$	—	$	1,013	$	108,221	$	—	$	109,234
Cash ⁽¹⁾	2		442		1,093		—		1,537
Restricted cash	—		—		109		—		109
Insurance and reinsurance balances receivable	—		—		12,920		(2,563)		10,357
Reinsurance recoverable on losses and loss expenses	—		—		24,780		(9,599)		15,181
Reinsurance recoverable on policy benefits	—		—		292		(95)		197
Value of business acquired	—		—		306		—		306
Goodwill and other intangible assets	—		—		21,359		—		21,359
Investments in subsidiaries	50,853		52,076		—		(102,929)		—
Due from subsidiaries and affiliates, net	4,776		—		—		(4,776)		—
Other assets	12		408		20,072		(1,829)		18,663
Total assets	$	55,643	$	53,939	$	189,152	$	(121,791)	$	176,943
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	71,916	$	(9,226)	$	62,690
Unearned premiums	—		—		17,978		(1,207)		16,771
Future policy benefits	—		—		5,909		(95)		5,814
Due to subsidiaries and affiliates, net	—		4,446		330		(4,776)		—

Repurchase agreements	—		—		1,416		—		1,416
Short-term debt	—		1,298		1		—		1,299
Long-term debt	—		13,559		—		—		13,559
Trust preferred securities	—		308		—		—		308
Other liabilities	312		1,649		21,352		(3,558)		19,755
Total liabilities	312		21,260		118,902		(18,862)		121,612
Total shareholders’ equity	55,331		32,679		70,250		(102,929)		55,331
Total liabilities and shareholders’ equity	$	55,643	$	53,939	$	189,152	$	(121,791)	$	176,943

⁽¹⁾Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to the 2019 Form 10-K for additional information.

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)


For the Three Months Ended June 30, 2020	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	$	—	$	—	$	8,355	$	—	$	8,355
Net premiums earned	—		—		8,128		—		8,128
Net investment income	—		1		826		—		827
Equity in earnings of subsidiaries	(366)		(271)		—		637		—
Net realized gains (losses)	23		(192)		199		—		30
Losses and loss expenses	—		—		6,577		—		6,577
Policy benefits	—		—		223		—		223
Policy acquisition costs and administrative expenses	21		(30)		2,329		—		2,320
Interest (income) expense	(35)		149		14		—		128
Other (income) expense	(8)		(5)		71		—		58
Amortization of purchased intangibles	—		—		72		—		72
Income tax expense (benefit)	10		(66)		(6)		—		(62)
Net loss	$	(331)	$	(510)	$	(127)	$	637	$	(331)
Comprehensive income	$	2,860	$	1,872	$	3,078	$	(4,950)	$	2,860

Condensed Consolidating Statements of Operations and Comprehensive Income


For the Three Months Ended June 30, 2019	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	$	—	$	—	$	8,343	$	—	$	8,343
Net premiums earned	—		—		7,891		—		7,891
Net investment income	1		(6)		864		—		859
Equity in earnings of subsidiaries	1,104		762		—		(1,866)		—
Net realized gains (losses) including OTTI	4		(21)		(206)		—		(223)
Losses and loss expenses	—		—		4,715		—		4,715
Policy benefits	—		—		161		—		161
Policy acquisition costs and administrative expenses	22		(5)		2,285		—		2,302
Interest (income) expense	(62)		180		22		—		140
Other (income) expense	(6)		1		(225)		—		(230)
Amortization of purchased intangibles	—		—		77		—		77
Chubb integration expenses	—		—		4		—		4
Income tax expense (benefit)	5		(45)		248		—		208
Net income	$	1,150	$	604	$	1,262	$	(1,866)	$	1,150
Comprehensive income	$	2,059	$	1,397	$	2,181	$	(3,578)	$	2,059

Condensed Consolidating Statements of Operations and Comprehensive Income


For the Six Months Ended June 30, 2020	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	$	—	$	—	$	16,332	$	—	$	16,332
Net premiums earned	—		—		15,922		—		15,922
Net investment income	(2)		5		1,685		—		1,688
Equity in earnings of subsidiaries	(110)		322		—		(212)		—
Net realized gains (losses)	2		(79)		(851)		—		(928)
Losses and loss expenses	—		—		11,062		—		11,062
Policy benefits	—		—		352		—		352
Policy acquisition costs and administrative expenses	45		(68)		4,699		—		4,676
Interest (income) expense	(69)		297		32		—		260
Other (income) expense	(17)		3		127		—		113
Amortization of purchased intangibles	—		—		145		—		145
Income tax expense (benefit)	10		(59)		202		—		153
Net income (loss)	$	(79)	$	75	$	137	$	(212)	$	(79)
Comprehensive income	$	400	$	672	$	660	$	(1,332)	$	400

Condensed Consolidating Statements of Operations and Comprehensive Income


For the Six Months Ended June 30, 2019	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	$	—	$	—	$	15,656	$	—	$	15,656
Net premiums earned	—		—		15,028		—		15,028
Net investment income	2		(10)		1,703		—		1,695
Equity in earnings of subsidiaries	2,094		1,521		—		(3,615)		—
Net realized gains (losses) including OTTI	5		(34)		(291)		—		(320)
Losses and loss expenses	—		—		8,813		—		8,813
Policy benefits	—		—		357		—		357
Policy acquisition costs and administrative expenses	42		(20)		4,454		—		4,476
Interest (income) expense	(128)		365		43		—		280
Other (income) expense	(12)		4		(261)		—		(269)
Amortization of purchased intangibles	—		—		153		—		153
Chubb integration expenses	—		2		5		—		7
Income tax expense (benefit)	9		(87)		474		—		396
Net income	$	2,190	$	1,213	$	2,402	$	(3,615)	$	2,190
Comprehensive income	$	4,777	$	3,338	$	4,969	$	(8,307)	$	4,777

Condensed Consolidating Statement of Cash Flows


Six Months Ended June 30, 2020	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	$	181	$	(307)	$	3,933	$	(110)	$	3,697
Cash flows from investing activities
Purchases of fixed maturities available for sale	—		(13)		(13,045)		—		(13,058)
Purchases of fixed maturities held to maturity	—		—		(42)		—		(42)
Purchases of equity securities	—		—		(2,824)		—		(2,824)
Sales of fixed maturities available for sale	—		7		7,727		—		7,734

Sales of equity securities	—		—		1,353		—		1,353
Maturities and redemptions of fixed maturities available for sale	—		29		5,191		—		5,220
Maturities and redemptions of fixed maturities held to maturity	—		—		642		—		642
Net change in short-term investments	—		761		(588)		—		173
Net derivative instruments settlements	—		69		(87)		—		(18)
Private equity contributions	—		—		(546)		—		(546)
Private equity distributions	—		—		443		—		443
Deposit paid on share acquisition	—		—		(1,550)		—		(1,550)
Capital contribution	(1,200)		—		—		1,200		—
Other	(1)		(3)		(217)		—		(221)
Net cash flows from (used for) investing activities	(1,201)		850		(3,543)		1,200		(2,694)
Cash flows from financing activities
Dividends paid on Common Shares	(678)		—		—		—		(678)
Common Shares repurchased	(333)		—		—		—		(333)


Proceeds from issuance of repurchase agreements	—		—		1,402		—		1,402
Repayment of repurchase agreements	—		—		(1,402)		—		(1,402)
Proceeds from share-based compensation plans	—		—		74		—		74
Dividend to parent company	—		—		(110)		110		—
Advances (to) from affiliates	1,149		(1,168)		19		—		—
Capital contribution	—		—		1,200		(1,200)		—
Net proceeds from (payments to) affiliated notional cash pooling programs ⁽¹⁾	882		186		—		(1,068)		—
Policyholder contract deposits	—		—		215		—		215
Policyholder contract withdrawals	—		—		(173)		—		(173)
Other	—		(3)		—		—		(3)
Net cash flows from (used for) financing activities	1,020		(985)		1,225		(2,158)		(898)
Effect of foreign currency rate changes on cash and restricted cash	(1)		—		(41)		—		(42)
Net increase (decrease) in cash and restricted cash	(1)		(442)		1,574		(1,068)		63
Cash and restricted cash – beginning of period ⁽¹⁾	2		442		1,202		—		1,646
Cash and restricted cash – end of period ⁽¹⁾	$	1	$	—	$	2,776	$	(1,068)	$	1,709

⁽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, 2020 and December 31, 2019, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows


Six Months Ended June 30, 2019	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	$	323	$	1,302	$	2,943	$	(1,860)	$	2,708
Cash flows from investing activities
Purchases of fixed maturities available for sale	—		(5)		(12,561)		—		(12,566)
Purchases of fixed maturities held to maturity	—		—		(73)		—		(73)
Purchases of equity securities	—		—		(147)		—		(147)
Sales of fixed maturities available for sale	—		—		7,838		—		7,838
Sales of equity securities	—		—		266		—		266
Maturities and redemptions of fixed maturities available for sale	—		16		3,947		—		3,963
Maturities and redemptions of fixed maturities held to maturity	—		—		598		—		598
Net change in short-term investments	—		(11)		(752)		—		(763)
Net derivative instruments settlements	—		(35)		(501)		—		(536)
Private equity contributions	—		—		(920)		—		(920)
Private equity distributions	—		—		780		—		780
Capital contribution	(600)		(110)		—		710		—
Other	—		(12)		(715)		—		(727)
Net cash flows used for investing activities	(600)		(157)		(2,240)		710		(2,287)
Cash flows from financing activities
Dividends paid on Common Shares	(671)		—		—		—		(671)
Common Shares repurchased	—		—		(741)		—		(741)
Proceeds from issuance of long-term debt	—		1,289		—		—		1,289
Repayment of long-term debt	—		(500)		—		—		(500)
Proceeds from issuance of repurchase agreements	—		—		1,984		—		1,984
Repayment of repurchase agreements	—		—		(1,986)		—		(1,986)
Proceeds from share-based compensation plans	—		—		95		—		95
Dividend to parent company	—		—		(1,860)		1,860		—
Advances (to) from affiliates	801		(1,498)		697		—		—
Capital contribution	—		—		710		(710)		—
Net proceeds from (payments to) affiliated notional cash pooling programs ⁽¹⁾	142		(437)		—		295		—
Policyholder contract deposits	—		—		237		—		237
Policyholder contract withdrawals	—		—		(138)		—		(138)
Other	—		—		—		—		—
Net cash flows from (used for) financing activities	272		(1,146)		(1,002)		1,445		(431)
Effect of foreign currency rate changes on cash and restricted cash	5		—		33		—		38
Net increase (decrease) in cash and restricted cash	—		(1)		(266)		295		28
Cash and restricted cash – beginning of period ⁽¹⁾	1		2		1,989		(652)		1,340
Cash and restricted cash – end of period ⁽¹⁾	$	1	$	1	$	1,723	$	(357)	$	1,368

⁽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, 2019 and December 31, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.