EX-99.2

EX-99.2 3 d232471dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

LOGO

Chubb Limited

Financial Supplement

for the Quarter Ended June 30, 2016

Investor Contact

Helen M. Wilson

Phone: (441) 299-9283

email: investorrelations@chubb.com

This report is for informational purposes only. It should be read in conjunction with documents filed by Chubb Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and the closing reports on Form 8-K/A filed on March 24, 2016.

Segment Reporting and Combined Legacy ACE and Legacy Chubb Results (“As If”) Disclosures

Since the completion of its acquisition of The Chubb Corporation (referred to as Legacy Chubb) on January 14, 2016, Chubb Limited (formerly ACE Limited and referred to as Legacy ACE) began reporting its financial results within 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. Corporate includes all run-off asbestos and environmental (A&E) exposures, the results of its Brandywine business, the results of its Westchester Specialty operations for 1996 and prior years, certain other run-off exposures and Legacy Chubb A&E and mass tort exposures. Revenue and expenses managed at the corporate level and Chubb integration expenses, which are incurred by the overall company, are included in Corporate. These integration costs are not related to the on-going business activities of the segments and are therefore excluded from our definition of segment income. During the second quarter of 2016, the company further defined its segment measure to include Other operating income and expense items such as its share of the operating income (loss) related to partially-owned entities and certain federal excise and capital taxes incurred as a result of capital management initiatives. This updated definition better aligns with how the business is managed as we continue to refine the process. As the company progresses through the integration, it may continue to further refine its segments and segment income measures.

“As If” company measures presented throughout this document are prepared exclusive of the impact of the unearned premium reserves intangible amortization and the elimination of the historical policy acquisition costs, as a result of purchase accounting, in order to present the underlying profitability of our insurance business. We believe this measure provides visibility into our results and allows for comparability to our historical results and is consistent with how management evaluates results. We have discussed our results on an “As If” basis for both the current and prior year periods, which are defined as follows:

2016 “As If” results: The 2016 and 2015 As If underwriting results do not include any impact from purchase accounting adjustments. The first quarter and year to date combined company results are inclusive of the results of Legacy Chubb for the first 14 days of January 2016 when the acquisition had not yet been completed.

2015 “As If” results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results.

Note: In the first quarter of 2016 earnings release on May 4, 2016, the company previously labeled “As If” Results as “Pro Forma” Results. In order to emphasize that these combined company results exclude the impact of purchase accounting and are therefore not calculated in accordance with SEC guidance under Article 11, the company has renamed the combined Legacy ACE and Legacy Chubb results from “Pro Forma” to “As If”. The calculation of these results as defined above remains the same as the prior quarter.

“As If” company results presented throughout this document are unaudited and are provided for informational purposes only. A reconciliation of “As If” company results as defined above to pro forma results in accordance with SEC guidance under Article 11, is provided in the Reconciliation of non-GAAP section starting on page 40.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this financial supplement reflect Chubb Limited’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from as indicated by such statements. For example, forward-looking statements related to financial performance including exposures, reserves and recoverables could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, currency exchange fluctuations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable, credit developments among reinsurers and activities and expenses related to post-acquisition integration of Legacy ACE and Legacy Chubb.

Our forward-looking statements could also be affected by competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

As If Results Definition

Chubb Limited

Financial Supplement Table of Contents


		Page
I.	Financial Highlights
	- Consolidated Financial Highlights		1-2

II.	Consolidated Results
	- Consolidated Statement of Operations		3
	- P&C Results- Consecutive Quarters		4-5
	- Catastrophe Losses		6
	- Summary Consolidated Balance Sheets		7
	- Line of Business		8
	- Consolidated Results		9-12
	- Consolidated Statement of Operations - “As If” Basis		13-14

III.	Global P&C Results
	- Global P&C Results - Consecutive Quarters		15-16

IV.	Segment Results
	- North America Commercial P&C Insurance		17-18
	- North America Personal P&C Insurance		19-20
	- North American Agricultural Insurance		21
	- Overseas General Insurance		22-23
	- Global Reinsurance		24-25
	- Life Insurance		26-27
	- Corporate		28

V.	Balance Sheet Details
	- Loss Reserve Rollforward		29
	- Reinsurance Recoverable Analysis		30
	- Investment Portfolio		31-34
	- Net Realized and Unrealized Gains (Losses)		35-36
	- Debt and Capital		37
	- Computation of Basic and Diluted Earnings Per Share		38
	- Book Value and Book Value per Common Share		39

VI.	Other Disclosures
	- Non-GAAP Financial Measures		40-48
	- Glossary		49

Chubb Limited

Consolidated Financial Highlights - Quarter

(in millions of U.S. dollars, except share, per share data, and ratios)

(Unaudited)

Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.


												Constant $ % Change 2Q-16 vs. 2Q-15 ⁽¹⁾			As If *
	Three months ended June 30						% Change 2Q-16 vs. 2Q-15			Constant $ 2015⁽¹⁾					Three months ended June 30						% Change 2Q-16 vs. 2Q-15			Constant $ 2015⁽¹⁾		Constant $ % Change 2Q-16 vs. 2Q-15 ⁽¹⁾
	2016			2015			% Change 2Q-16 vs. 2Q-15			Constant $ 2015⁽¹⁾					2016			2015			% Change 2Q-16 vs. 2Q-15			Constant $ 2015⁽¹⁾		Constant $ % Change 2Q-16 vs. 2Q-15 ⁽¹⁾
Gross premiums written ⁽²⁾	$	9,274		$	6,504			42.6	%	$	6,391		45.1	%	$	9,274		$	10,050			-7.7	%	$	9,890		-6.2	%
Net premiums written ⁽²⁾	$	7,639		$	4,784			59.7	%	$	4,701		62.5	%	$	7,639		$	8,108			-5.8	%	$	7,972		-4.2	%
P&C net premiums written ⁽²⁾	$	7,112		$	4,284			66.0	%	$	4,213		68.8	%	$	7,112		$	7,584			-6.2	%	$	7,463		-4.7	%
Global P&C net premiums written ⁽²⁾	$	6,737		$	3,905			72.5	%	$	3,834		75.7	%	$	6,737		$	7,205			-6.5	%	$	7,083		-4.9	%
Net premiums earned	$	7,405		$	4,360			69.8	%	$	4,280		73.0	%	$	7,405		$	7,503			-1.3	%	$	7,383		0.3	%
Net investment income	$	708		$	562			26.0	%	$	554		27.7	%
Adjusted net investment income	$	816		$	562			45.3	%	$	554		47.2	%
Operating income ⁽²⁾	$	1,058		$	788			34.3	%	$	778		36.0	%
Net income	$	726		$	942			-22.8	%
Comprehensive income	$	1,540		$	397			288.3	%
Operating cash flow	$	1,133		$	816
P&C combined ratio
Loss and loss expense ratio		59.6	%		58.9	%										59.6	%		56.8	%
Underwriting and administrative expense ratio		31.6	%		28.8	%										30.6	%		30.3	%

Combined ratio		91.2	%		87.7	%										90.2	%		87.1	%
Operating return on equity (ROE)		9.5	%		11.4	%
ROE		6.2	%		12.7	%
Operating effective tax rate ⁽³⁾		16.7	%		14.7	%
Effective tax rate		17.6	%		13.2	%
Diluted earnings per share
Operating income	$	2.25		$	2.40			-6.3	%
Net income	$	1.54		$	2.86			-46.2	%
Weighted average basic common shares outstanding		467.7			325.5
Weighted average diluted common shares outstanding		471.2			328.7

(1)	Prior periods on a constant dollar basis.

(2)	Included in Q2 2015 are gross premiums written of $428 million, net premiums written of $252 million, and operating income of $15 million related to the transfer of Fireman’s Fund in-force business at the time of the transaction that is non-recurring in 2016.

(3)

Operating effective tax rate is dependent upon the mix of earnings from different jurisdictions with various tax rates. A change in the geographic mix of earnings would change the effective tax rate. The increase in the operating effective tax rate for the quarter was primarily due to a higher percentage of operating earnings being generated in higher tax paying jurisdictions.

*	2015 As If results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results.


Financial Highlights - QTR		Page 1

Chubb Limited

Consolidated Financial Highlights - Year to Date

(in millions of U.S. dollars, except share, per share data, and ratios)

(Unaudited)


																As If *
	Six months ended June 30						% Change YTD-16 vs YTD-15			Constant $ 2015⁽¹⁾			Constant $ % Change YTD-16 vs YTD-15⁽¹⁾			Six months ended June 30						% Change YTD-16 vs YTD-15			Constant $ 2015⁽¹⁾		Constant $ % Change YTD-16 vs YTD-15⁽¹⁾
	2016			2015			% Change YTD-16 vs YTD-15			Constant $ 2015⁽¹⁾			Constant $ % Change YTD-16 vs YTD-15⁽¹⁾			2016			2015			% Change YTD-16 vs YTD-15			Constant $ 2015⁽¹⁾		Constant $ % Change YTD-16 vs YTD-15⁽¹⁾
Gross premiums written ⁽²⁾	$	16,663		$	11,826			40.9	%	$	11,458			45.4	%	$	17,595		$	18,750			-6.2	%	$	18,242		-3.5	%
Net premiums written	$	13,634		$	8,860			53.9	%	$	8,566			59.2	%	$	14,489		$	15,324			-5.4	%	$	14,888		-2.7	%
P&C net premiums written ⁽²⁾	$	12,591		$	7,869			60.0	%	$	7,610			65.5	%	$	13,445		$	14,284			-5.9	%	$	13,885		-3.2	%
Global P&C net premiums written ⁽²⁾	$	12,152		$	7,402			64.2	%	$	7,143			70.1	%	$	13,006		$	13,817			-5.9	%	$	13,417		-3.1	%
Net premiums earned	$	14,002		$	8,287			69.0	%	$	8,025			74.5	%	$	14,393		$	14,540			-1.0	%	$	14,168		1.6	%
Net investment income	$	1,382		$	1,113			24.2	%	$	1,094			26.3	%
Adjusted net investment income	$	1,583		$	1,113			42.3	%	$	1,094			44.7	%
Operating income⁽²⁾	$	2,077		$	1,533			35.5	%	$	1,502			38.3	%
Net income	$	1,165		$	1,623			-28.2	%
Comprehensive income	$	2,346		$	1,039			125.9	%
Operating cash flow	$	2,153		$	1,891
P&C combined ratio
Loss and loss expense ratio		58.5	%		58.0	%											58.5	%		58.0	%
Underwriting and administrative expense ratio		32.1	%		30.0	%											31.1	%		31.0	%

Combined ratio		90.6	%		88.0	%											89.6	%		89.0	%
Operating return on equity (ROE)		9.8	%		11.0	%
ROE		5.3	%		11.0	%
Operating effective tax rate ⁽³⁾		16.6	%		14.2	%
Effective tax rate		19.3	%		13.9	%
Diluted earnings per share
Operating income	$	4.51		$	4.64			-2.8	%
Net income	$	2.53		$	4.91			-48.5	%
Full six months diluted earnings per share ⁽⁴⁾
Operating income	$	4.54		$	4.64			-2.2	%
Net income	$	2.60		$	4.91			-47.0	%

										December 31 2015			% Change 2Q-16 vs 4Q-15
Book value per common share	$	101.56								$	89.77			13.1	%
Book value per common share excluding foreign currency ⁽⁵⁾	$	100.72								$	89.77			12.2	%
Tangible book value per common share	$	57.14								$	72.25			-20.9	%
Tangible book value per common share excluding foreign currency ⁽⁵⁾	$	56.83								$	72.25			-21.3	%
Weighted average basic common shares outstanding		457.1			326.8						325.6
Weighted average diluted common shares outstanding		460.5			330.2						328.8
Total hybrid & financial debt/capitalization		22.1	%								25.0	%

(1)	Prior periods on a constant dollar basis.

(2)	Included in 2015 are gross premiums written of $428 million, net premiums written of $252 million, and operating income of $15 million related to the transfer of the Fireman’s Fund in-force business that existed at the time of the closing that is non-recurring in 2016.

(3)

Operating effective tax rate is dependent upon the mix of earnings from different jurisdictions with various tax rates. A change in the geographic mix of earnings would change the effective tax rate. The increase in the operating effective tax rate for the year was primarily due to a higher percentage of operating earnings being generated in higher tax paying jurisdictions.

(4)	Full six months diluted earnings per share includes the combined company results inclusive of the first 14 days of January 2016 and includes the impact of purchase accounting adjustments related to The Chubb Corporation acquisition.

(5)	For 2016, book value per common share and tangible book value per common share exclude the impact of foreign currency movement during the year.

*	2016 As If results: The 2016 and 2015 As If underwriting results do not include any impact from purchase accounting adjustments. The YTD 2016 combined company results are inclusive of the first 14 days of January 2016.

2015 As If results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results.


Financial Highlights - YTD		Page 2

Chubb Limited

Statement of Operations – Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)


																				Legacy ACE
								Legacy ACE									YTD			YTD			Full Year
	Consolidated Statements of Operations	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
	Gross premiums written	$	9,274		$	7,389		$	5,639		$	6,346		$	6,504		$	16,663		$	11,826		$	23,811
	Net premiums written		7,639			5,995			4,144			4,709			4,784			13,634			8,860			17,713
	Net premiums earned		7,405			6,597			4,207			4,719			4,360			14,002			8,287			17,213
	Losses and loss expenses		4,254			3,674			2,302			2,643			2,417			7,928			4,539			9,484
	Policy benefits		146			126			159			89			153			272			295			543
	Policy acquisition costs		1,560			1,413			736			771			727			2,973			1,434			2,941
	Administrative expenses		829			772			570			568			578			1,601			1,132			2,270
	Net investment income:
(1)	Adjusted net investment income		816			767			532			549			562			1,583			1,113			2,194
	Amortization expense of fair value adjustment on acquired invested assets		(108	)		(93	)		—			—			—			(201	)		—			—

	Total net investment income		708			674			532			549			562			1,382			1,113			2,194
	Net realized gains (losses):														—
(2)	Adjusted realized gains (losses)		(214	)		(394	)		(57	)		(393	)		128			(608	)		39			(411	)
	Realized gains (losses) on crop derivatives		(2	)		—			(3	)		(4	)		(2	)		(2	)		(2	)		(9	)

	Total net realized gains (losses)		(216	)		(394	)		(60	)		(397	)		126			(610	)		37			(420	)
(3)	Interest expense:
	Adjusted interest expense		166			149			64			68			71			315			139			271
	Interest expense related to pre-acquisition debt		—			7			29			—			—			7			—			29
	Amortization benefit of fair value adjustment on acquired long term debt		(13	)		(10	)		—			—			—			(23	)		—			—

	Total interest expense		153			146			93			68			71			299			139			300
	Other income (expense):
	Gains (losses) from fair value changes in separate account assets		3			(3	)		13			(49	)		6			—			17			(19	)
	Net realized gains (losses) related to unconsolidated entities		18			(25	)		(17	)		25			33			(7	)		59			67
	Other income (expense) - operating		8			—			(6	)		12			(1	)		8			(3	)		3

	Total other income (expense)		29			(28	)		(10	)		(12	)		38			1			73			51
	Amortization expense of purchased intangibles		5			7			35			51			55			12			85			171
	Chubb integration expenses		98			148			24			9			—			246			—			33
	Income tax expense		155			124			67			132			143			279			263			462

	Net income	$	726		$	439		$	683		$	528		$	942		$	1,165		$	1,623		$	2,834

(1)	Adjusted net investment income used throughout this report excludes amortization of fair value adjustment on acquired invested assets.

(2)	Adjusted realized gains (losses) used throughout this report excludes realized gains (losses) from crop derivatives.

(3)	Adjusted interest expense used throughout this report excludes interest expense related to pre-acquisition debt and amortization of fair value adjustment on acquired long term debt.


Statement of Operations		Page 3

Chubb Limited

P&C Underwriting Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)


							Legacy ACE												Legacy ACE
Chubb Limited P&C Underwriting Results	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			YTD 2016			YTD 2015			Full Year 2015
P&C Underwriting Income (Including Corporate and excluding Life Insurance)
Gross premiums written⁽¹⁾	$	8,717		$	6,843		$	5,091		$	5,824		$	5,975		$	15,560		$	10,775		$	21,690
Net premiums written ⁽¹⁾		7,112			5,479			3,629			4,217			4,284			12,591			7,869			15,715
Net premiums earned		6,893			6,100			3,701			4,239			3,873			12,993			7,326			15,266
Adjusted losses and loss expenses		4,109			3,497			2,146			2,494			2,282			7,606			4,252			8,892
Policy acquisition costs (excluding amortization of acquired UPR intangible)		898			721			602			654			609			1,619			1,209			2,465
Amortization of acquired UPR intangible ⁽²⁾		525			570			—			—			—			1,095			—			—
Administrative expenses		752			700			500			494			504			1,452			985			1,979

P&C Underwriting income ⁽¹⁾	$	609		$	612		$	453		$	597		$	478		$	1,221		$	880		$	1,930

P&C Underwriting income excluding Fireman’s Fund non-recurring transfer				$	606		$	434		$	565		$	429		$	1,215		$	831		$	1,830
% Change versus prior year period
Net premiums written		66.0	%		52.8	%		-4.6	%		-0.4	%		5.5	%		65.5	%		1.5	%		-0.5	%
Net premiums earned		77.9	%		76.7	%		-4.4	%		-0.6	%		0.8	%		83.1	%		0.0	%		-1.3	%
Net premiums written constant $		68.8	%		61.3	%		1.7	%		5.6	%		11.6	%		65.5	%		6.9	%		5.3	%
Net premiums earned constant $		81.1	%		85.3	%		1.6	%		5.4	%		7.0	%		83.1	%		5.4	%		4.4	%
Other ratios
Net premiums written/gross premiums written		82	%		80	%		71	%		72	%		72	%		81	%		73	%		72	%
P&C combined ratio
Loss and loss expense ratio		59.6	%		57.3	%		58.0	%		58.8	%		58.9	%		58.5	%		58.0	%		58.2	%
Policy acquisition cost ratio		20.6	%		21.2	%		16.2	%		15.4	%		15.7	%		20.9	%		16.5	%		16.1	%
Administrative expense ratio		11.0	%		11.5	%		13.5	%		11.7	%		13.1	%		11.2	%		13.5	%		13.1	%

Combined ratio		91.2	%		90.0	%		87.7	%		85.9	%		87.7	%		90.6	%		88.0	%		87.4	%

Combined ratio excluding catastrophe losses and PPD		89.9	%		89.9	%		88.4	%		89.2	%		88.4	%		89.9	%		88.8	%		88.8	%
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					89.9	%		88.9	%		89.9	%		89.7	%		89.9	%		89.5	%		89.5	%
P&C expense ratio		31.6	%		32.7	%		29.7	%		27.1	%		28.8	%		32.1	%		30.0	%		29.2	%
P&C expense ratio excluding A&H		29.8	%		30.8	%		26.3	%		23.6	%		25.5	%		30.3	%		26.6	%		25.7	%
Catastrophe reinstatement premiums (expensed) collected - pre-tax	$	6		$	—		$	(1	)	$	—		$	—		$	6		$	—		$	(1	)
Catastrophe losses - pre-tax	$	396		$	258		$	74		$	72		$	124		$	654		$	175		$	321
Favorable prior period development (PPD) - pre-tax	$	(301	)	$	(247	)	$	(100	)	$	(210	)	$	(153	)	$	(548	)	$	(236	)	$	(546	)
Loss and loss expense ratio excluding catastrophe losses and PPD		58.4	%		57.4	%		58.5	%		62.2	%		59.7	%		57.9	%		58.9	%		59.7	%

(1)	Included in Q2 2015 and YTD 2015 are gross premiums written of $428 million, net premiums written of $252 million, and underwriting income of $49 million related to the transfer of the Fireman’s Fund in-force business that existed at the time of the closing that is non-recurring in 2016.

(2)	Purchase accounting adjustments related to the acquisition of The Chubb Corporation.

Note: See Glossary on page 49 for further information on the calculation of the components of combined ratios.


P&C Results - Reported		Page 4

Chubb Limited

P&C Underwriting Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)


	As If *
Chubb Limited P&C Underwriting Results - As If Basis	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			YTD 2016			YTD 2015			Full Year 2015
P&C Underwriting Income (Including Corporate and excluding Life Insurance)
Gross premiums written⁽¹⁾	$	8,717		$	7,774		$	8,359		$	9,234		$	9,497		$	16,491		$	17,648		$	35,241
Net premiums written⁽¹⁾		7,112			6,333			6,671			7,375			7,584			13,445			14,284			28,330
Net premiums earned		6,893			6,489			6,812			7,400			6,992			13,382			13,531			27,743
Adjusted losses and loss expenses		4,109			3,719			3,835			4,134			3,970			7,828			7,847			15,816
Policy acquisition costs		1,357			1,287			1,330			1,385			1,333			2,644			2,617			5,332
Administrative expenses		752			763			780			773			791			1,515			1,584			3,137

P&C Underwriting income⁽¹⁾	$	675		$	720		$	867		$	1,108		$	898		$	1,395		$	1,483		$	3,458

P&C Underwriting income excluding Fireman’s Fund non-recurring transfer				$	714		$	848		$	1,076		$	849		$	1,389		$	1,434		$	3,358
% Change versus prior year period
Net premiums written		-6.2	%		-5.5	%											-5.9	%
Net premiums earned		-1.4	%		-0.7	%											-1.1	%
Net premiums written constant $		-4.7	%		-1.4	%											-3.2	%
Net premiums earned constant $		0.1	%		2.9	%											1.4	%
Other ratios
Net premiums written/gross premiums written		82	%		81	%		80	%		80	%		80	%		82	%		81	%		80	%
P&C combined ratio
Loss and loss expense ratio		59.6	%		57.3	%		56.3	%		55.9	%		56.8	%		58.5	%		58.0	%		57.0	%
Policy acquisition cost ratio		19.6	%		19.8	%		19.5	%		18.7	%		19.0	%		19.8	%		19.3	%		19.2	%
Administrative expense ratio		11.0	%		11.8	%		11.5	%		10.4	%		11.3	%		11.3	%		11.7	%		11.3	%

Combined ratio		90.2	%		88.9	%		87.3	%		85.0	%		87.1	%		89.6	%		89.0	%		87.5	%

Combined ratio excluding catastrophe losses and PPD		88.9	%		88.8	%		88.6	%		88.9	%		88.0	%		88.9	%		88.6	%		88.7	%
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					88.8	%		88.9	%		89.4	%		88.7	%		88.9	%		89.0	%		89.0	%
P&C expense ratio		30.6	%		31.6	%		31.0	%		29.1	%		30.3	%		31.1	%		31.0	%		30.5	%
P&C expense ratio excluding A&H		28.8	%		29.8	%		29.1	%		27.3	%		28.5	%		29.3	%		29.2	%		28.6	%
Catastrophe reinstatement premiums (expensed) collected - pre-tax	$	6		$	—		$	(1	)	$	—		$	—		$	6		$	—		$	(1	)
Catastrophe losses - pre-tax	$	396		$	258		$	158		$	101		$	274		$	654		$	589		$	848
Favorable prior period development (PPD) - pre-tax	$	(301	)	$	(247	)	$	(253	)	$	(389	)	$	(336	)	$	(548	)	$	(528	)	$	(1,170	)
Loss and loss expense ratio excluding catastrophe losses and PPD		58.4	%		57.4	%		57.6	%		59.8	%		57.7	%		57.9	%		57.6	%		58.2	%

(1)	Included in Q2 2015 and YTD 2015 are gross premiums written of $428 million, net premiums written of $252 million, and underwriting income of $49 million related to the transfer of the Fireman’s Fund in-force business that existed at the time of the closing that is non-recurring in 2016.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


P&C Results - As If		Page 5

Chubb Limited

Segments results - Catastrophe Loss Charges

(in millions of U.S. dollars)

(Unaudited)

Chubb Limited Catastrophe Loss Charges - Q2 2016


	North America Commercial P&C Insurance		North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance		Global Reinsurance		Total Consolidated
Catastrophe Loss Charges by Event - Gross
Texas storms	$	64	$	32	$	1	$	3	$	3	$	103
Other U.S. flooding, tornadoes, hail, wind		86		60		11		1		—		158
Japan and Ecuador earthquakes		—		—		—		38		—		38
Other international events		—		—		—		97		—		97
Fort McMurray wildfire		20		1		—		—		49		70
Other		19		4		2		4		—		29

Total	$	189	$	97	$	14	$	143	$	52	$	495

Catastrophe Loss Charges by Event - Net
Texas storms	$	56	$	32	$	1	$	3	$	3	$	95
Other U.S. flooding, tornadoes, hail, wind		77		60		11		1		—		149
Japan and Ecuador earthquakes		—		—		—		31		—		31
Other international events		—		—		—		34		—		34
Fort McMurray wildfire		20		1		—		—		49		70
Other		7		4		2		4		—		17

Total	$	160	$	97	$	14	$	73	$	52	$	396

Reinstatement premiums collected	$	—	$	—	$	—	$	—	$	6	$	6

Total impact before income tax	$	160	$	97	$	14	$	73	$	46	$	390

Total impact after income tax	$	118	$	71	$	10	$	66	$	46	$	311


Catastrophe Losses		Page 6

Chubb Limited

Summary Consolidated Balance Sheets

(in millions of U.S. dollars, except per share data)

(Unaudited)


							Legacy ACE
	June 30 2016			March 31 2016			December 31 2015
Assets
Fixed maturities available for sale, at fair value	$	79,951		$	77,538		$	43,587
Fixed maturities held to maturity, at amortized cost		11,090			11,280			8,430
Equity securities, at fair value		787			893			497
Short-term investments, at fair value		3,631			3,382			10,446
Other investments		4,387			4,493			3,291

Total investments		99,846			97,586			66,251
Cash		1,011			1,091			1,775
Securities lending collateral		1,142			1,003			1,046
Insurance and reinsurance balances receivable		8,532			7,692			5,323
Reinsurance recoverable on losses and loss expenses		13,235			12,891			11,386
Deferred policy acquisition costs		3,948			3,376			2,873
Value of business acquired		381			390			395
Prepaid reinsurance premiums		2,464			2,376			2,082
Goodwill and other intangible assets		22,923			23,359			5,683
Deferred tax assets		—			—			318
Investments in partially-owned insurance companies		658			654			653
Other assets		6,063			6,226			4,521

Total assets	$	160,203		$	156,644		$	102,306

Liabilities
Unpaid losses and loss expenses	$	60,819		$	60,206		$	37,303
Unearned premiums		15,229			14,896			8,439
Future policy benefits		4,975			4,869			4,807
Insurance and reinsurance balances payable		4,944			4,733			4,270
Securities lending payable		1,143			1,004			1,047
Accounts payable, accrued expenses, and other liabilities		11,019			10,453			7,609
Deferred tax liabilities		1,409			1,142			—
Short-term debt		500			500			—
Long-term debt		12,631			12,636			9,389
Trust preferred securities		308			308			307

Total liabilities		112,977			110,747			73,171
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		46,045			45,530			29,870
Accumulated other comprehensive income (AOCI)		1,181			367			(735	)

Total shareholders’ equity		47,226			45,897			29,135

Total liabilities and shareholders’ equity	$	160,203		$	156,644		$	102,306

Book value per common share	$	101.56		$	98.85		$	89.77
% change over prior quarter		2.7	%		10.1	%		-0.1	%
Tangible book value per common share	$	57.14		$	53.83		$	72.25
% change over prior quarter		6.1	%		-25.5	%		0.0	%


Consol Bal Sheet		Page 7

Chubb Limited

Consolidated Net Premiums Written by Line of Business

(in millions of U.S. dollars)

(Unaudited)


	2Q-16						% Change 2Q-16 vs. As If 2Q-15					Constant $ % Change 2Q-16 vs. As If 2Q-15			Constant $ % Change 2Q-16 vs. As If 2Q-15 Excluding FF UPR Transfer ⁽²⁾			Constant $ % Change 2Q-16 vs. As If 2Q-15 Excluding Total FF and One-Time Adjustment ⁽³⁾



			Legacy ACE		As If					Constant $ ⁽¹⁾ As If
			2Q-15		2Q-15					2Q-15
Net premiums written
Commercial multiple peril ⁽⁴⁾	$	236	$	—	$	239		-1.3	%	$	239		-1.3	%
Commercial casualty		893		471		848		5.3	%		848		5.3	%
Workers' compensation		548		194		503		8.9	%		503		8.9	%
Professional liability		927		369		954		-2.8	%		945		-1.9	%
Surety		149		80		163		-8.6	%		158		-5.7	%
Property and other short-tail lines		1,097		818		1,241		-11.6	%		1,202		-8.7	%
International other casualty		247		182		227		8.8	%		224		10.3	%

Total Commercial P&C		4,097		2,114		4,175		-1.9	%		4,119		-0.5	%
Agriculture		375		379		379		-1.2	%		379		-1.2	%
Personal automobile		344		274		416		-17.3	%		397		-13.4	%		-5.6	%		-3.8	%
Personal homeowners		898		325		1,076		-16.5	%		1,075		-16.5	%		-4.3	%		0.9	%
Personal other		405		276		502		-19.3	%		483		-16.1	%		1.5	%		5.4	%

Total Personal lines		1,647		875		1,994		-17.4	%		1,955		-15.8	%		-3.3	%		1.0	%
Total Property and Casualty lines		6,119		3,368		6,548		-6.6	%		6,453		-5.2	%		-1.4	%		-0.2	%
Other Lines
Global A&H ⁽⁵⁾		1,029		910		1,025		0.4	%		997		3.2	%
Reinsurance		230		261		266		-13.3	%		265		-13.0	%
Life		261		245		269		-3.0	%		257		1.6	%

Total consolidated	$	7,639	$	4,784	$	8,108		-5.8	%	$	7,972		-4.2	%		-1.1	%		-0.2	%

(1)	Prior periods on a constant dollar basis

(2)	Included in Q2 2015 are net premiums written of $252 million related to the transfer of the Fireman's Fund in-force business that existed at the time of the closing that is non-recurring in 2016.

(3)

Premium related to Fireman’s Fund high net worth personal lines business was $76 million ($10 million Automobile, $36 million Homeowners, and $30 million Other) in 2016 compared to $378 million ($50 million Automobile, $201 million Homeowners, and $127 million Other) in 2015. In addition, Q2 2015 included a non-recurring reinsurance benefit of $19 million in Homeowners related to a modification in terms related to a ceded reinsurance contract that resulted in a reinsurance return premium.

(4)	Commercial multiple peril represents retail package business (property and general liability)

(5)

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 the Global A&H line item above.

2015 As If results: Legacy ACE plus Legacy Chubb historical results.


Line of Business		Page 8

Chubb Limited

Consolidated Results - Three months ended June 30, 2016

(in millions of U.S. dollars, except ratios)

(Unaudited)


Q2 2016	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			Life Insurance			Total Consolidated
Net premiums written	$	3,245		$	1,231		$	375		$	2,031		$	230		$	—		$	7,112		$	527		$	7,639
Net premiums earned		3,148			1,140			327			2,093			185			—			6,893			512			7,405
Adjusted losses and loss expenses		1,971			661			286			1,089			87			15			4,109			147			4,256
Policy benefits		—			—			—			—			—			—			—			146			146
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			(3	)		(3	)
Policy acquisition costs (excluding amortization of acquired UPR intangible)		255			104			25			467			47			—			898			137			1,035
Amortization of acquired UPR intangible⁽²⁾		290			165			—			70			—			—			525			—			525
Administrative expenses		299			98			2			277			14			62			752			77			829

Underwriting income (loss)		333			112			14			190			37			(77	)		609			8			617
Adjusted net investment income		468			55			5			147			65			7			747			69			816
Other income (expense) - operating⁽¹⁾		9			(3	)		—			5			2			(2	)		11			(3	)		8

Segment income	$	810		$	164		$	19		$	342		$	104		$	(72	)	$	1,367		$	74		$	1,441

Adjusted interest expense																	(166	)								(166	)
Amortization expense of purchased intangibles																	(5	)								(5	)
Income tax expense																	(212	)								(212	)

Operating income (loss)																	(455	)								1,058
Chubb integration expenses, net of $27 million tax benefit																	(71	)								(71	)
Amortization of fair value adjustment on acquired invested assets and long-term debt, net of $29 million tax benefit ⁽²⁾																	(66	)								(66	)
Adjusted net realized gains (losses), net of $6 million tax benefit																	(208	)								(208	)
Net realized gains (losses) related to unconsolidated entities, net of $5 million tax																	13									13

Net income (loss)																$	(787	)							$	726

Combined ratio		89.5	%		90.1	%		95.9	%		90.9	%		79.8	%					91.2	%
Combined ratio excluding catastrophe losses and PPD		89.7	%		83.0	%		91.6	%		91.5	%		78.9	%					89.9	%

(1)	(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for underwriting income presentation from Other income (expense).

(2)	Related to the acquisition of The Chubb Corporation.


Consol Results 2016 - QTD		Page 9

Chubb Limited

Consolidated Results - Three months ended June 30, 2015

(in millions of U.S. dollars, except ratios)

(Unaudited)


	Legacy ACE
Q2 2015	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			Life Insurance			Total Consolidated
Net premiums written ⁽¹⁾	$	1,428		$	547		$	379		$	1,669		$	261		$	—		$	4,284		$	500		$	4,784
Net premiums earned		1,419			269			321			1,644			220			—			3,873			487			4,360
Adjusted Losses and loss expenses		916			156			273			816			72			49			2,282			137			2,419
Policy benefits		—			—			—			—			—			—			—			153			153
(Gains) losses from fair value changes in separate account assets ⁽²⁾		—			—			—			—			—			—			—			(6	)		(6	)
Policy acquisition costs		131			(1	)		23			396			60			—			609			118			727
Administrative expenses		154			34			4			254			13			45			504			74			578

Underwriting income (loss) ⁽¹⁾		218			80			21			178			75			(94	)		478			11			489
Net investment income		262			7			6			139			79			3			496			66			562
Other income (expense) - operating⁽²⁾		(1	)		—			(1	)		4			—			(4	)		(2	)		1			(1	)

Segment income	$	479		$	87		$	26		$	321		$	154		$	(95	)	$	972		$	78		$	1,050

Interest expense																	(71	)								(71	)
Amortization expense of purchased intangibles																	(55	)								(55	)
Income tax expense																	(136	)								(136	)

Operating income (loss) ⁽¹⁾																	(357	)								788
Adjusted net realized gains (losses), net of $5 million tax																	123									123
Net realized gains (losses) related to unconsolidated entities, net of $2 million tax																	31									31

Net income (loss)																$	(203	)							$	942

Combined ratio		84.6	%		70.6	%		93.6	%		89.2	%		65.7	%					87.7	%
Combined ratio excluding catastrophe losses and PPD		88.6	%		65.5	%		91.4	%		89.8	%		79.6	%					88.4	%
Underwriting income excluding Fireman’s Fund non-recurring transfer				$	31														$	429
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					83.5	%														89.7	%

(1)	Included in Q2 2015 are net premiums written of $252 million, underwriting income of $49 million, and operating income of $15 million related to the transfer of Fireman’s Fund in-force business at the time of the transaction that is non-recurring in 2016.

(2)	(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for underwriting income presentation from Other income (expense).


Consol Results 2015 - QTD		Page 10

Chubb Limited

Consolidated Results - Six months ended June 30, 2016

(in millions of U.S. dollars, except ratios)

(Unaudited)


YTD 2016	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			Life Insurance			Total ⁽³⁾ Consolidated
Net premiums written	$	5,547		$	2,102		$	439		$	4,072		$	431		$	—		$	12,591		$	1,043		$	13,634
Net premiums earned		6,044			2,164			350			4,048			387			—			12,993			1,009			14,002
Adjusted losses and loss expenses		3,718			1,322			256			2,110			176			24			7,606			324			7,930
Policy benefits		—			—			—			—			—			—			—			272			272
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			—			—
Policy acquisition costs (excluding amortization of acquired UPR intangible)		422			172			29			896			100			—			1,619			259			1,878
Amortization of acquired UPR intangible⁽²⁾		605			346			—			144			—			—			1,095			—			1,095
Administrative expenses		565			186			(2	)		540			28			135			1,452			149			1,601

Underwriting income (loss)		734			138			67			358			83			(159	)		1,221			5			1,226
Adjusted net investment income		894			102			10			293			132			16			1,447			136			1,583
Other income (expense) - operating⁽¹⁾		9			(4	)		—			10			3			(4	)		14			(6	)		8

Segment income	$	1,637		$	236		$	77		$	661		$	218		$	(147	)	$	2,682		$	135		$	2,817

Adjusted interest expense																	(315	)								(315	)
Amortization expense of purchased intangibles																	(12	)								(12	)
Income tax expense																	(413	)								(413	)

Operating income (loss)																	(887	)								2,077
Chubb integration and related expenses, net of $76 million tax benefit																	(177	)								(177	)
Amortization of fair value adjustment on acquired invested assets and long-term debt, net of $53 million tax benefit ⁽²⁾																	(125	)								(125	)
Adjusted net realized gains (losses), net of $2 million tax benefit																	(606	)								(606	)
Net realized gains (losses) related to unconsolidated entities, net of $3 million tax benefit																	(4	)								(4	)

Net income (loss)																$	(1,799	)							$	1,165

Combined ratio		87.9	%		93.6	%		81.0	%		91.1	%		78.5	%					90.6	%
Combined ratio excluding catastrophe losses and PPD		89.6	%		82.8	%		89.7	%		91.8	%		78.7	%					89.9	%

(1)	(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for underwriting income presentation from Other income (expense).

(2)	Related to the acquisition of the Chubb Corporation.


Consol Results 2016 - YTD		Page 11

Chubb Limited

Consolidated Results - Six months ended June 30, 2015

(in millions of U.S. dollars, except ratios)

(Unaudited)


	Legacy ACE
YTD 2015	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			Life Insurance			Total Consolidated
Net premiums written⁽¹⁾	$	2,725		$	680		$	467		$	3,463		$	534		$	—		$	7,869		$	991		$	8,860
Net premiums earned		2,799			415			385			3,281			446			—			7,326			961			8,287
Adjusted losses and loss expenses		1,831			267			295			1,630			171			58			4,252			289			4,541
Policy benefits		—			—			—			—			—			—			—			295			295
(Gains) losses from fair value changes in separate account assets ⁽²⁾		—			—			—			—			—			—			—			(17	)		(17	)
Policy acquisition costs		261			30			19			785			114			—			1,209			225			1,434
Administrative expenses		305			53			3			510			25			89			985			147			1,132

Underwriting income (loss) ⁽¹⁾		402			65			68			356			136			(147	)		880			22			902
Net investment income		520			12			12			277			154			6			981			132			1,113
Other income (expense) - operating⁽²⁾		2			—			(2	)		6			1			(9	)		(2	)		(1	)		(3	)

Segment income	$	924		$	77		$	78		$	639		$	291		$	(150	)	$	1,859		$	153		$	2,012

Interest expense																	(139	)								(139	)
Amortization expense of purchased intangibles																	(85	)								(85	)
Income tax expense																	(255	)								(255	)

Operating income (loss) ⁽¹⁾																	(629	)								1,533
Adjusted net realized gains (losses), net of $8 million tax																	31									31
Net realized gains (losses) related to unconsolidated entities, gross and net of tax																	59									59

Net income (loss)																$	(539	)							$	1,623

Combined ratio		85.6	%		84.4	%		82.3	%		89.1	%		69.5	%					88.0	%
Combined ratio excluding catastrophe losses and PPD		88.4	%		72.4	%		88.9	%		90.1	%		77.5	%					88.8	%
Underwriting income excluding Fireman’s Fund non-recurring transfer				$	16														$	831
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					84.1	%														89.5	%

(1)	Included in 2015 are net premiums written of $252 million, underwriting income of $49 million, and operating income of $15 million related to the transfer of Fireman’s Fund in-force business at the time of the transaction that is non-recurring in 2016.

(2)	(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for underwriting income presentation from Other income (expense).


Consol Results 2015 - YTD		Page 12

Chubb Limited

Segment Results - As If Basis

(in millions of U.S. dollars, except ratios)

(Unaudited)


	*As If (excluding purchase accounting adjustments)**
	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			Life Insurance			Total Consolidated
Q2 2016
Net premiums written	$	3,245		$	1,231		$	375		$	2,031		$	230		$	—		$	7,112		$	527		$	7,639
Net premiums earned		3,148			1,140			327			2,093			185			—			6,893			512			7,405
Adjusted losses and loss expenses		1,971			661			286			1,089			87			15			4,109			147			4,256
Policy benefits		—			—			—			—			—			—			—			146			146
(Gains) losses from fair value changes in separate account assets		—			—			—			—			—			—			—			(3	)		(3	)
Policy acquisition costs		499			240			25			546			47			—			1,357			137			1,494
Administrative expenses		299			98			2			277			14			62			752			77			829

Adjusted underwriting income (loss)	$	379		$	141		$	14		$	181		$	37		$	(77	)	$	675		$	8		$	683

Adjusted combined ratio		88.0	%		87.6	%		95.9	%		91.3	%		79.8	%					90.2	%
Adjusted combined ratio excluding catastrophe losses and PPD		88.3	%		80.5	%		91.6	%		92.0	%		78.9	%					88.9	%

	*As If (excluding purchase accounting adjustments)**
	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			Life Insurance			Total Consolidated
Q2 2015
Net premiums written	$	3,253		$	1,550		$	379		$	2,136		$	266		$	—		$	7,584		$	524		$	8,108
Net premiums earned		3,114			1,160			321			2,170			227			—			6,992			511			7,503
Adjusted losses and loss expenses		1,808			676			273			1,080			73			60			3,970			148			4,118
Policy benefits		—			—			—			—			—			—			—			153			153
(Gains) losses from fair value changes in separate account assets		—			—			—			—			—			—			—			(6	)		(6	)
Policy acquisition costs		492			199			23			558			61			—			1,333			123			1,456
Administrative expenses		297			102			4			305			15			68			791			83			874

Underwriting income (loss)	$	517		$	183		$	21		$	227		$	78		$	(128	)	$	898		$	10		$	908

Underwriting income excluding Fireman’s Fund non-recurring transfer				$	134														$	849					$	859
Combined ratio		83.4	%		84.3	%		93.6	%		89.5	%		65.0	%					87.1	%
Combined ratio excluding catastrophe losses and PPD		88.1	%		77.5	%		91.4	%		90.7	%		80.2	%					88.0	%
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					81.7	%														88.7	%

The following table presents the reconciliation of Q2 2016 underwriting income (loss) for each segment to Q2 2016 adjusted underwriting income (loss) shown 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			Life Insurance		Total Consolidated
Q2 2016
Underwriting income (loss) as reported	$	333		$	112		$	14	$	190		$	37	$	(77	)	$	609		$	8	$	617
Less: amortization of acquired UPR intangible⁽¹⁾		290			165			—		70			—		—			525			—		525
Add: elimination of DAC benefit ⁽¹⁾		(244	)		(136	)		—		(79	)		—		—			(459	)		—		(459	)

Adjusted underwriting income (loss)	$	379		$	141		$	14	$	181		$	37	$	(77	)	$	675		$	8	$	683

(1)	Related to the acquisition of The Chubb Corporation.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments.


As If - QTD		Page 13

Chubb Limited

Segment Results - As If Basis

(in millions of U.S. dollars, except ratios)

(Unaudited)


	*As If (excluding purchase accounting adjustments)**
	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			Life Insurance			Total Consolidated
YTD 2016
Net premiums written	$	6,066		$	2,202		$	439		$	4,287		$	451		$	—		$	13,445		$	1,044		$	14,489
Net premiums earned		6,252			2,274			350			4,119			387			—			13,382			1,011			14,393
Adjusted losses and loss expenses		3,845			1,375			256			2,152			176			24			7,828			324			8,152
Policy benefits		—			—			—			—			—			—			—			272			272
(Gains) losses from fair value changes in separate account assets		—			—			—			—			—			—			—			—			—
Policy acquisition costs		968			472			29			1,075			100			—			2,644			260			2,904
Administrative expenses		600			199			(2	)		552			28			138			1,515			150			1,665

Adjusted underwriting income (loss)	$	839		$	228		$	67		$	340		$	83		$	(162	)	$	1,395		$	5		$	1,400

Adjusted combined ratio		86.6	%		89.9	%		81.0	%		91.7	%		78.5	%					89.6	%
Adjusted combined ratio excluding catastrophe losses and PPD		88.3	%		79.6	%		89.7	%		92.3	%		78.7	%					88.9	%

	*As If (excluding purchase accounting adjustments)**
	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			Life Insurance			Total Consolidated
YTD 2015
Net premiums written	$	6,181		$	2,459		$	467		$	4,616		$	561		$	—		$	14,284		$	1,040		$	15,324
Net premiums earned		6,188			2,167			385			4,336			455			—			13,531			1,009			14,540
Adjusted losses and loss expenses		3,700			1,443			295			2,161			171			77			7,847			312			8,159
Policy benefits		—			—			—			—			—			—			—			295			295
(Gains) losses from fair value changes in separate account assets		—			—			—			—			—			—			—			(17	)		(17	)
Policy acquisition costs		965			419			19			1,100			114			—			2,617			236			2,853
Administrative expenses		595			185			3			621			30			150			1,584			165			1,749

Underwriting income (loss)	$	928		$	120		$	68		$	454		$	140		$	(227	)	$	1,483		$	18		$	1,501

Underwriting income excluding Fireman’s Fund non-recurring transfer				$	71														$	1,434					$	1,452
Combined ratio		85.0	%		94.5	%		82.3	%		89.5	%		69.0	%					89.0	%
Combined ratio excluding catastrophe losses and PPD		88.2	%		79.9	%		88.9	%		91.2	%		78.0	%					88.6	%
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					82.1	%														89.0	%

The following table presents the reconciliation of YTD 2016 underwriting income (loss) for each segment to YTD 2016 adjusted underwriting income (loss) shown above.
YTD 2016	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			Life Insurance			Total Consolidated
Underwriting income (loss) as reported	$	734		$	138		$	67		$	358		$	83		$	(159	)	$	1,221		$	5		$	1,226
Add: Pre-acquisition underwriting income (loss) (14 days prior to close)		13			30			—			4			—			(3	)		44			—			44
Less: amortization of acquired UPR intangible⁽¹⁾		605			346			—			144			—			—			1,095			—			1,095
Add: elimination of DAC benefit ⁽¹⁾		(513	)		(286	)		—			(166	)		—			—			(965	)		—			(965	)

Adjusted underwriting income (loss)	$	839		$	228		$	67		$	340		$	83		$	(162	)	$	1,395		$	5		$	1,400

(1)	Related to the acquisition of The Chubb Corporation.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


As If - YTD		Page 14

Chubb Limited

Global P&C Underwriting Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global P&C includes the company’s North America Commercial P&C Insurance segment (refer to page 17), North America Personal P&C Insurance segment (refer to page 19), Overseas General Insurance segment (refer to page 22), Global Reinsurance segment (refer to page 24), and Corporate (refer to page 28). Global P&C excludes the North America Agricultural Insurance and Life Insurance segments.


							Legacy ACE												Legacy ACE
Global P&C (Including Corporate and excluding Agriculture)	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			YTD 2016			YTD 2015			Full Year 2015
Global P&C Underwriting Income
Gross premiums written⁽¹⁾	$	8,172		$	6,707		$	4,821		$	4,581		$	5,409		$	14,879		$	10,081		$	19,483
Net premiums written ⁽¹⁾		6,737			5,415			3,487			3,480			3,905			12,152			7,402			14,369
Net premiums earned		6,566			6,077			3,461			3,500			3,552			12,643			6,941			13,902
Losses and loss expenses		3,823			3,527			1,968			1,870			2,009			7,350			3,957			7,795
Policy acquisition costs (excluding amortization of acquired UPR intangible)		873			717			594			612			586			1,590			1,190			2,396
Amortization of acquired UPR intangible ⁽²⁾		525			570			—			—			—			1,095			—			—
Administrative expenses		750			704			502			494			500			1,454			982			1,978

Global P&C Underwriting income ⁽¹⁾	$	595		$	559		$	397		$	524		$	457		$	1,154		$	812		$	1,733

Global P&C Underwriting income excluding Fireman’s Fund non-recurring transfer				$	553		$	378		$	492		$	408		$	1,148		$	763		$	1,633
% Change versus prior year period
Net premiums written		72.5	%		54.9	%		-2.0	%		0.3	%		6.4	%		64.2	%		3.2	%		1.2	%
Net premiums earned		84.8	%		79.4	%		-2.4	%		0.0	%		1.2	%		82.2	%		0.7	%		-0.3	%
Net premiums written constant $		75.7	%		63.6	%		4.9	%		7.8	%		13.2	%		70.1	%		9.2	%		7.7	%
Net premiums earned constant $		88.4	%		88.3	%		4.3	%		7.6	%		8.0	%		88.4	%		6.4	%		6.2	%
Other ratios
Net premiums written/gross premiums written		82	%		81	%		72	%		76	%		72	%		82	%		73	%		74	%
Combined ratio
Loss and loss expense ratio		58.2	%		58.0	%		56.9	%		53.4	%		56.5	%		58.1	%		57.0	%		56.1	%
Policy acquisition cost ratio		21.3	%		21.2	%		17.1	%		17.5	%		16.5	%		21.2	%		17.1	%		17.2	%
Administrative expense ratio		11.4	%		11.6	%		14.5	%		14.1	%		14.1	%		11.6	%		14.2	%		14.2	%

Combined ratio		90.9	%		90.8	%		88.5	%		85.0	%		87.1	%		90.9	%		88.3	%		87.5	%

Combined ratio excluding catastrophe losses and PPD		89.8	%		90.0	%		89.1	%		88.8	%		88.2	%		89.9	%		88.8	%		88.9	%
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					90.1	%		89.6	%		89.8	%		89.5	%		89.9	%		89.5	%		89.6	%
Expense ratio		32.7	%		32.8	%		31.6	%		31.6	%		30.6	%		32.8	%		31.3	%		31.4	%
Expense ratio excluding A&H		31.0	%		31.0	%		28.3	%		28.2	%		27.4	%		31.0	%		28.0	%		28.1	%
Catastrophe reinstatement premiums (expensed) collected - pre-tax	$	6		$	—		$	(1	)	$	—		$	—		$	6		$	—		$	(1	)
Catastrophe losses - pre-tax	$	382		$	256		$	73		$	72		$	117		$	638		$	167		$	312
Favorable prior period development (PPD) - pre-tax	$	(301	)	$	(206	)	$	(93	)	$	(205	)	$	(153	)	$	(507	)	$	(203	)	$	(501	)
Loss and loss expense ratio excluding catastrophe losses and PPD		57.1	%		57.2	%		57.3	%		57.3	%		57.6	%		57.2	%		57.6	%		57.4	%

(1)	Included in Q2 2015 and YTD 2015 are gross premiums written of $428 million, net premiums written of $252 million, and underwriting income of $49 million related to the transfer of the Fireman’s Fund in-force business that existed at the time of the closing that is non-recurring in 2016.

(2)	Related to the acquisition of The Chubb Corporation.


Global P&C - Reported		Page 15

Chubb Limited

Global P&C Underwriting Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global P&C includes the company’s North America Commercial P&C Insurance segment (refer to page 18), North America Personal P&C Insurance segment (refer to page 20), Overseas General Insurance segment (refer to page 23), Global Reinsurance segment (refer to page 25), and Corporate (refer to page 28). Global P&C excludes the North America Agricultural Insurance and Life Insurance segments.


	As If *
																YTD			YTD			Full Year
Global P&C (Including Corporate and excluding Agriculture)	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Global P&C Underwriting Income
Gross premiums written⁽¹⁾	$	8,172		$	7,638		$	8,089		$	7,991		$	8,931		$	15,810		$	16,954		$	33,034
Net premiums written ⁽¹⁾		6,737			6,269			6,529			6,638			7,205			13,006			13,817			26,984
Net premiums earned		6,566			6,466			6,572			6,661			6,671			13,032			13,146			26,379
Losses and loss expenses		3,823			3,749			3,657			3,510			3,697			7,572			7,552			14,719
Policy acquisition costs		1,332			1,283			1,322			1,343			1,310			2,615			2,598			5,263
Administrative expenses		750			767			782			773			787			1,517			1,581			3,136

Global P&C Underwriting income ⁽¹⁾	$	661		$	667		$	811		$	1,035		$	877		$	1,328		$	1,415		$	3,261

Global P&C Underwriting income excluding Fireman’s Fund non-recurring transfer				$	661		$	792		$	1,003		$	828		$	1,322		$	1,366		$	3,161
% Change versus prior year period
Net premiums written		-6.5	%		-5.2	%											-5.9	%
Net premiums earned		-1.6	%		-0.1	%											-0.9	%
Net premiums written constant $		-4.9	%		-1.0	%											-3.1	%
Net premiums earned constant $		0.0	%		3.6	%											1.7	%
Other ratios
Net premiums written/gross premiums written		82	%		82	%		81	%		83	%		81	%		82	%		81	%		82	%
Combined ratio
Loss and loss expense ratio		58.2	%		58.0	%		55.6	%		52.7	%		55.4	%		58.1	%		57.4	%		55.8	%
Policy acquisition cost ratio		20.3	%		19.9	%		20.1	%		20.1	%		19.6	%		20.1	%		19.8	%		19.9	%
Administrative expense ratio		11.4	%		11.8	%		12.0	%		11.7	%		11.8	%		11.6	%		12.0	%		11.9	%

Combined ratio		89.9	%		89.7	%		87.7	%		84.5	%		86.8	%		89.8	%		89.2	%		87.6	%

Combined ratio excluding catastrophe losses and PPD		88.8	%		88.9	%		89.0	%		88.7	%		87.9	%		88.8	%		88.6	%		88.7	%
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					89.0	%		89.3	%		89.2	%		88.6	%		88.9	%		89.0	%		89.1	%
Expense ratio		31.7	%		31.7	%		32.1	%		31.8	%		31.4	%		31.7	%		31.8	%		31.8	%
Expense ratio excluding A&H		29.9	%		29.9	%		30.2	%		29.9	%		29.6	%		29.9	%		29.9	%		30.0	%
Catastrophe reinstatement premiums (expensed) collected - pre-tax	$	6		$	—		$	(1	)	$	—		$	—		$	6		$	—		$	(1	)
Catastrophe losses - pre-tax	$	382		$	256		$	157		$	101		$	267		$	638		$	581		$	839
Favorable prior period development (PPD) - pre-tax	$	(301	)	$	(206	)	$	(246	)	$	(384	)	$	(336	)	$	(507	)	$	(495	)	$	(1,125	)
Loss and loss expense ratio excluding catastrophe losses and PPD		57.1	%		57.2	%		56.9	%		57.0	%		56.5	%		57.2	%		56.8	%		56.9	%

(1)	Included in Q2 2015 and YTD 2015 are gross premiums written of $428 million, net premiums written of $252 million, and underwriting income of $49 million related to the transfer of the Fireman’s Fund in-force business that existed at the time of the closing that is non-recurring in 2016.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


Global P&C - As If		Page 16

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Commercial P&C Insurance


																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	4,041		$	3,004		$	2,408		$	1,994		$	2,070		$	7,045		$	4,049		$	8,451
Net premiums written		3,245			2,302			1,557			1,433			1,428			5,547			2,725			5,715
Net premiums earned		3,148			2,896			1,425			1,410			1,419			6,044			2,799			5,634
Losses and loss expenses		1,971			1,747			917			913			916			3,718			1,831			3,661
Policy acquisition costs (excluding amortization of acquired UPR intangible)		255			167			128			142			131			422			261			531
Amortization of acquired UPR intangible ⁽¹⁾		290			315			—			—			—			605			—			—
Administrative expenses		299			266			162			154			154			565			305			621

Underwriting income		333			401			218			201			218			734			402			821
Adjusted net investment income		468			426			252			260			262			894			520			1,032
Other income (expense) - operating		9			—			2			3			(1	)		9			2			7

Segment income	$	810		$	827		$	472		$	464		$	479		$	1,637		$	924		$	1,860

Combined ratio
Loss and loss expense ratio		62.6	%		60.3	%		64.4	%		64.7	%		64.5	%		61.5	%		65.4	%		65.0	%
Policy acquisition cost ratio		17.3	%		16.7	%		8.9	%		10.1	%		9.2	%		17.0	%		9.3	%		9.4	%
Administrative expense ratio		9.6	%		9.1	%		11.3	%		11.0	%		10.9	%		9.4	%		10.9	%		11.0	%

Combined ratio		89.5	%		86.1	%		84.6	%		85.8	%		84.6	%		87.9	%		85.6	%		85.4	%

Combined ratio excluding catastrophe losses and PPD		89.7	%		89.5	%		88.3	%		89.3	%		88.6	%		89.6	%		88.4	%		88.6	%
Catastrophe losses - pre-tax	$	160		$	81		$	25		$	10		$	41		$	241		$	50		$	85
Favorable prior period development (PPD) - pre-tax	$	(168	)	$	(178	)	$	(79	)	$	(59	)	$	(96	)	$	(346	)	$	(126	)	$	(264	)
Loss and loss expense ratio excluding catastrophe losses and PPD		62.9	%		63.7	%		67.8	%		68.3	%		68.6	%		63.3	%		68.2	%		68.2	%
% Change versus prior year period
Net premiums written		127.4	%		77.4	%		2.1	%		2.9	%		-3.3	%		103.6	%		-1.6	%		0.5	%
Net premiums earned		121.8	%		109.9	%		0.5	%		2.3	%		1.4	%		115.9	%		1.7	%		1.6	%
Net premiums written constant $		128.0	%		78.4	%											104.4	%
Net premiums earned constant $		122.3	%		111.1	%											116.8	%
Other ratios
Net premiums written/gross premiums written		80	%		77	%		65	%		72	%		69	%		79	%		67	%		68	%

(1)	Related to the acquisition of The Chubb Corporation.


NA Commercial - Reported		Page 17

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Commercial P&C Insurance


	As If*
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	4,041		$	3,572		$	4,237		$	3,906		$	4,048		$	7,613		$	7,800		$	15,943
Net premiums written		3,245			2,821			3,247			3,186			3,253			6,066			6,181			12,614
Net premiums earned		3,148			3,104			3,140			3,156			3,114			6,252			6,188			12,484
Losses and loss expenses		1,971			1,874			1,844			1,798			1,808			3,845			3,700			7,342
Policy acquisition costs		499			469			498			517			492			968			965			1,980
Administrative expenses		299			301			304			288			297			600			595			1,187

Underwriting income	$	379		$	460		$	494		$	553		$	517		$	839		$	928		$	1,975
Combined ratio
Loss and loss expense ratio		62.6	%		60.4	%		58.7	%		57.0	%		58.0	%		61.5	%		59.8	%		58.8	%
Policy acquisition cost ratio		15.8	%		15.1	%		15.9	%		16.3	%		15.8	%		15.5	%		15.6	%		15.9	%
Administrative expense ratio		9.6	%		9.7	%		9.6	%		9.2	%		9.6	%		9.6	%		9.6	%		9.5	%

Combined ratio		88.0	%		85.2	%		84.2	%		82.5	%		83.4	%		86.6	%		85.0	%		84.2	%

Combined ratio excluding catastrophe losses and PPD		88.3	%		88.3	%		88.5	%		88.4	%		88.1	%		88.3	%		88.2	%		88.3	%
Catastrophe losses - pre-tax	$	160		$	81		$	84		$	18		$	100		$	241		$	166		$	268
Favorable prior period development (PPD) - pre-tax	$	(168	)	$	(178	)	$	(220	)	$	(202	)	$	(246	)	$	(346	)	$	(361	)	$	(783	)
Loss and loss expense ratio excluding catastrophe losses and PPD		62.9	%		63.5	%		62.9	%		62.9	%		62.8	%		63.2	%		63.0	%		62.9	%
% Change versus prior year period
Net premiums written		-0.2	%		-3.7	%											-1.9	%
Net premiums earned		1.1	%		1.0	%											1.0	%
Net premiums written constant $		-0.1	%		-3.5	%											-1.7	%
Net premiums earned constant $		1.2	%		1.3	%											1.2	%
Other ratios
Net premiums written/gross premiums written		80	%		79	%		77	%		82	%		80	%		80	%		79	%		79	%

							% Change															% Change
							2Q-16 vs															YTD-16 vs
Production by Size	2Q-16			2Q-15			2Q-15									YTD-16			YTD-15			YTD-15
Net Premiums Written
Major account & specialty⁽¹⁾	$	1,927		$	1,943			-0.8	%							$	3,544		$	3,644			-2.7	%
Commercial ⁽²⁾		1,318			1,310			0.6	%								2,522			2,537			-0.6	%

Total	$	3,245		$	3,253			-0.2	%							$	6,066		$	6,181			-1.9	%

(1)	Principally large corporate accounts and wholesale business.

(2)	Principally middle market and small commercial accounts.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


NA Commercial - As If		Page 18

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Personal P&C Insurance


							Legacy ACE												Legacy ACE
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written ⁽¹⁾	$	1,369		$	974		$	314		$	378		$	835		$	2,343		$	981		$	1,673
Net premiums written ⁽¹⁾		1,231			871			234			278			547			2,102			680			1,192
Net premiums earned		1,140			1,024			261			272			269			2,164			415			948
Losses and loss expenses		661			661			144			179			156			1,322			267			590
Policy acquisition costs (excluding amortization of acquired UPR intangible)		104			68			26			13			(1	)		172			30			69
Amortization of acquired UPR intangible ⁽²⁾		165			181			—			—			—			346			—			—
Administrative expenses		98			88			34			36			34			186			53			123

Underwriting income (loss) ⁽¹⁾		112			26			57			44			80			138			65			166
Adjusted net investment income		55			47			6			7			7			102			12			25
Other expense - operating		(3	)		(1	)		(1	)		(1	)		—			(4	)		—			(2	)

Segment income (loss)	$	164		$	72		$	62		$	50		$	87		$	236		$	77		$	189

Underwriting income excluding Fireman’s Fund non-recurring transfer				$	20		$	38		$	12		$	31		$	132		$	16		$	66
Combined ratio
Loss and loss expense ratio		58.0	%		64.6	%		55.2	%		65.8	%		57.9	%		61.1	%		64.3	%		62.3	%
Policy acquisition cost ratio		23.6	%		24.3	%		10.1	%		4.9	%		-0.3	%		23.9	%		7.2	%		7.3	%
Administrative expense ratio		8.5	%		8.6	%		13.1	%		13.0	%		13.0	%		8.6	%		12.9	%		13.0	%

Combined ratio		90.1	%		97.5	%		78.4	%		83.7	%		70.6	%		93.6	%		84.4	%		82.6	%

Combined ratio excluding catastrophe losses and PPD		83.0	%		82.5	%		77.5	%		70.5	%		65.5	%		82.8	%		72.4	%		73.2	%
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					83.1	%		84.6	%		82.5	%		83.5	%		83.1	%		84.1	%		83.8	%
Catastrophe losses - pre-tax	$	97		$	156		$	2		$	12		$	13		$	253		$	49		$	63
Unfavorable (favorable) prior period development (PPD) - pre-tax	$	(15	)	$	(3	)	$	—		$	25		$	—		$	(18	)	$	—		$	25
Loss and loss expense ratio excluding catastrophe losses and PPD		50.9	%		49.6	%		54.3	%		52.6	%		52.7	%		50.3	%		52.3	%		52.9	%
% Change versus prior year period
Net premiums written		125.1	%		NM			62.7	%		86.0	%		247.0	%		209.2	%		139.2	%		106.4	%
Net premiums earned		322.4	%		NM			82.5	%		92.6	%		92.5	%		422.0	%		50.3	%		69.2	%
Net premiums written constant $		125.1	%		NM												209.2	%
Net premiums earned constant $		322.4	%		NM												422.0	%
Other ratios
Net premiums written/gross premiums written		90	%		89	%		75	%		74	%		65	%		90	%		69	%		71	%

(1)	Included in Q2 2015 and YTD 2015 are gross premiums written of $428 million, net premiums written of $252 million, and underwriting income of $49 million related to the transfer of the Fireman’s Fund in-force business that existed at the time of the closing that is non-recurring in 2016.

(2)	Related to the acquisition of The Chubb Corporation.


NA Personal - Reported		Page 19

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Personal P&C Insurance


	As If*
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written ⁽¹⁾	$	1,369		$	1,083		$	1,226		$	1,368		$	1,872		$	2,452		$	2,850		$	5,444
Net premiums written ⁽¹⁾		1,231			971			1,093			1,210			1,550			2,202			2,459			4,762
Net premiums earned		1,140			1,134			1,140			1,147			1,160			2,274			2,167			4,454
Losses and loss expenses		661			714			597			629			676			1,375			1,443			2,669
Policy acquisition costs		240			232			228			211			199			472			419			858
Administrative expenses		98			101			96			98			102			199			185			379

Underwriting income (loss) ⁽¹⁾	$	141		$	87		$	219		$	209		$	183		$	228		$	120		$	548

Underwriting income excluding Fireman’s Fund non-recurring transfer				$	81		$	200		$	177		$	134		$	222		$	71		$	448
Combined ratio
Loss and loss expense ratio		58.0	%		62.9	%		52.4	%		54.9	%		58.2	%		60.4	%		66.6	%		59.9	%
Policy acquisition cost ratio		21.1	%		20.5	%		20.0	%		18.4	%		17.2	%		20.8	%		19.3	%		19.3	%
Administrative expense ratio		8.5	%		8.9	%		8.5	%		8.5	%		8.9	%		8.7	%		8.6	%		8.5	%

Combined ratio		87.6	%		92.3	%		80.9	%		81.8	%		84.3	%		89.9	%		94.5	%		87.7	%

Combined ratio excluding catastrophe losses and PPD		80.5	%		78.7	%		80.9	%		77.6	%		77.5	%		79.6	%		79.9	%		79.5	%
Combined ratio excluding catastrophe losses, PPD and Fireman’s Fund non-recurring transfer					79.3	%		82.5	%		80.4	%		81.7	%		79.9	%		82.1	%		81.8	%
Catastrophe losses - pre-tax	$	97		$	156		$	15		$	30		$	95		$	253		$	338		$	383
Unfavorable (favorable) prior period development (PPD) - pre-tax	$	(15	)	$	(3	)	$	(15	)	$	19		$	(17	)	$	(18	)	$	(22	)	$	(18	)
Loss and loss expense ratio excluding catastrophe losses and PPD		50.9	%		49.3	%		52.4	%		50.7	%		51.5	%		50.1	%		52.0	%		51.7	%
% Change versus prior year period
Net premiums written		-20.6	%		6.8	%											-10.5	%
Net premiums earned		-1.8	%		12.7	%											4.9	%
Net premiums written constant $		-20.6	%		7.4	%											-10.3	%
Net premiums earned constant $		-1.8	%		12.7	%											4.9	%
Other ratios
Net premiums written/gross premiums written		90	%		90	%		89	%		89	%		83	%		90	%		86	%		87	%

(1)	Included in Q2 2015 are gross premiums written of $428 million, net premiums written of $252 million, and underwriting income of $49 million related to the transfer of the Fireman’s Fund in-force business that existed at the time of the closing that is non-recurring in 2016.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


NA Personal - As If		Page 20

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Agricultural Insurance


																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	545		$	136		$	270		$	1,243		$	566		$	681		$	694		$	2,207
Net premiums written		375			64			142			737			379			439			467			1,346
Net premiums earned		327			23			240			739			321			350			385			1,364
Losses and loss expenses ⁽¹⁾		286			(30	)		178			624			273			256			295			1,097
Policy acquisition costs		25			4			8			42			23			29			19			69
Administrative expenses		2			(4	)		(2	)		—			4			(2	)		3			1

Underwriting income		14			53			56			73			21			67			68			197
Net investment income		5			5			6			5			6			10			12			23
Other income (expense) - operating		—			—			—			1			(1	)		—			(2	)		(1	)

Segment income	$	19		$	58		$	62		$	79		$	26		$	77		$	78		$	219

Combined ratio
Loss and loss expense ratio		87.5	%		-125.2	%		73.9	%		84.5	%		85.3	%		73.3	%		76.6	%		80.4	%
Policy acquisition cost ratio		7.7	%		15.9	%		3.4	%		5.7	%		7.2	%		8.2	%		5.0	%		5.1	%
Administrative expense ratio		0.7	%		-17.6	%		-0.9	%		0.0	%		1.1	%		-0.5	%		0.7	%		0.0	%

Combined ratio		95.9	%		-126.9	%		76.4	%		90.2	%		93.6	%		81.0	%		82.3	%		85.5	%

Combined ratio excluding catastrophe losses and PPD		91.6	%		80.6	%		79.2	%		90.8	%		91.4	%		89.7	%		88.9	%		88.2	%
Catastrophe losses - pre-tax	$	14		$	2		$	1		$	—		$	7		$	16		$	8		$	9
Favorable prior period development (PPD) - pre-tax	$	—		$	(41	)	$	(7	)	$	(5	)	$	—		$	(41	)	$	(33	)	$	(45	)
Loss and loss expense ratio excluding catastrophe losses and PPD		83.3	%		75.1	%		75.4	%		85.1	%		83.1	%		81.8	%		83.1	%		82.8	%
% Change versus prior year period
Net premiums written		-1.2	%		-27.0	%		-41.9	%		-3.5	%		-2.4	%		-6.1	%		-19.8	%		-15.3	%
Net premiums earned		1.6	%		-63.7	%		-26.2	%		-3.6	%		-2.9	%		-9.3	%		-11.0	%		-10.6	%
Other ratios
Net premiums written/gross premiums written		69	%		47	%		52	%		59	%		67	%		64	%		67	%		61	%

(1)	Includes realized gains/losses on crop derivatives.


NA Agriculture		Page 21

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Overseas General Insurance


							Legacy ACE												Legacy ACE
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	2,494		$	2,516		$	1,990		$	2,019		$	2,212		$	5,010		$	4,467		$	8,476
Net premiums written		2,031			2,041			1,587			1,584			1,669			4,072			3,463			6,634
Net premiums earned		2,093			1,955			1,575			1,615			1,644			4,048			3,281			6,471
Losses and loss expenses		1,089			1,021			748			674			816			2,110			1,630			3,052
Policy acquisition costs (excluding amortization of acquired UPR intangible)		467			429			391			405			396			896			785			1,581
Amortization of acquired UPR intangible ⁽¹⁾		70			74			—			—			—			144			—			—
Administrative expenses		277			263			241			246			254			540			510			997

Underwriting income		190			168			195			290			178			358			356			841
Adjusted net investment income		147			146			125			132			139			293			277			534
Other income - operating		5			5			5			6			4			10			6			17

Segment income	$	342		$	319		$	325		$	428		$	321		$	661		$	639		$	1,392

Combined ratio
Loss and loss expense ratio		52.1	%		52.2	%		47.5	%		41.7	%		49.7	%		52.1	%		49.7	%		47.2	%
Policy acquisition cost ratio		25.6	%		25.7	%		24.8	%		25.1	%		24.1	%		25.7	%		23.9	%		24.4	%
Administrative expense ratio		13.2	%		13.5	%		15.3	%		15.2	%		15.4	%		13.3	%		15.5	%		15.4	%

Combined ratio		90.9	%		91.4	%		87.6	%		82.0	%		89.2	%		91.1	%		89.1	%		87.0	%

Combined ratio excluding catastrophe losses and PPD		91.5	%		92.0	%		89.7	%		90.5	%		89.8	%		91.8	%		90.1	%		90.1	%
Catastrophe reinstatement premiums expensed - pre-tax	$	—		$	—		$	(2	)	$	—		$	—		$	—		$	—		$	(2	)
Catastrophe losses - pre-tax	$	73		$	18		$	40		$	39		$	58		$	91		$	63		$	142
Favorable prior period development (PPD) - pre-tax	$	(85	)	$	(30	)	$	(74	)	$	(177	)	$	(68	)	$	(115	)	$	(92	)	$	(343	)
Loss and loss expense ratio excluding catastrophe losses and PPD		52.7	%		52.8	%		49.6	%		50.2	%		50.3	%		52.8	%		50.6	%		50.3	%
% Change versus prior year period
Net premiums written as reported		21.6	%		13.8	%		-9.3	%		-7.9	%		-5.1	%		17.6	%		-1.9	%		-5.2	%
Net premiums earned as reported		27.3	%		19.4	%		-10.5	%		-6.4	%		-3.9	%		23.4	%		-1.2	%		-4.9	%
Net premiums written constant $		26.7	%		26.1	%		3.6	%		6.1	%		7.6	%		26.4	%		9.3	%		7.1	%
Net premiums earned constant $		32.4	%		31.3	%		1.7	%		7.8	%		9.4	%		31.9	%		10.3	%		7.5	%
Other ratios
Net premiums written/gross premiums written		81	%		81	%		80	%		78	%		75	%		81	%		78	%		78	%

(1)	Related to the acquisition of The Chubb Corporation.


Overseas General Insurance - RP		Page 22

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Overseas General Insurance


	As If*
																			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			YTD 2016			2015			2015
Gross premiums written	$	2,494		$	2,749		$	2,515		$	2,526		$	2,713		$	5,243		$	5,685		$	10,726
Net premiums written		2,031			2,256			2,078			2,057			2,136			4,287			4,616			8,751
Net premiums earned		2,093			2,026			2,084			2,146			2,170			4,119			4,336			8,566
Losses and loss expenses		1,089			1,063			1,011			948			1,080			2,152			2,161			4,120
Policy acquisition costs		546			529			547			563			558			1,075			1,100			2,210
Administrative expenses		277			275			287			290			305			552			621			1,198

Underwriting income	$	181		$	159		$	239		$	345		$	227		$	340		$	454		$	1,038

Combined ratio
Loss and loss expense ratio		52.1	%		52.4	%		48.5	%		44.2	%		49.8	%		52.2	%		49.9	%		48.1	%
Policy acquisition cost ratio		26.0	%		26.1	%		26.3	%		26.2	%		25.7	%		26.1	%		25.4	%		25.8	%
Administrative expense ratio		13.2	%		13.7	%		13.7	%		13.5	%		14.0	%		13.4	%		14.2	%		14.0	%

Combined ratio		91.3	%		92.2	%		88.5	%		83.9	%		89.5	%		91.7	%		89.5	%		87.9	%

Combined ratio excluding catastrophe losses and PPD		92.0	%		92.8	%		91.2	%		92.7	%		90.7	%		92.3	%		91.2	%		91.5	%
Catastrophe reinstatement premiums expensed - pre-tax	$	—		$	—		$	(2	)	$	—		$	—		$	—		$	—		$	(2	)
Catastrophe losses - pre-tax	$	73		$	18		$	49		$	42		$	66		$	91		$	71		$	162
Favorable prior period development (PPD) - pre-tax	$	(85	)	$	(30	)	$	(106	)	$	(231	)	$	(90	)	$	(115	)	$	(140	)	$	(477	)
Loss and loss expense ratio excluding catastrophe losses and PPD		52.7	%		53.0	%		51.2	%		52.9	%		50.9	%		52.8	%		51.5	%		51.8	%
% Change versus prior year period
Net premiums written as reported		-5.0	%		-9.0	%											-7.1	%
Net premiums earned as reported		-3.5	%		-6.4	%											-5.0	%
Net premiums written constant $		0.5	%		1.7	%											1.1	%
Net premiums earned constant $		1.2	%		4.0	%											2.6	%
Other ratios
Net premiums written/gross premiums written		81	%		82	%		83	%		81	%		79	%		82	%		81	%		82	%


Production by Region	2Q-16		2Q-15		% Change 2Q-16 vs 2Q-15			Constant $ 2Q-15 ⁽¹⁾		Constant $ % Change 2Q-16 vs 2Q-15 ⁽¹⁾			YTD-16		YTD-15		% Change YTD-16 vs YTD-15			Constant $ YTD-15 ⁽¹⁾		Constant $ % Change YTD-16 vs YTD-15 ⁽¹⁾
Gross premiums written
Europe	$	1,084	$	1,133		-4.3	%	$	1,117		-3.0	%	$	2,482	$	2,587		-4.1	%	$	2,493		-0.4	%
Latin America		607		774		-21.6	%		667		-9.0	%		1,214		1,506		-19.4	%		1,241		-2.2	%
Asia		718		711		1.0	%		695		3.3	%		1,374		1,392		-1.3	%		1,320		4.1	%
Other⁽²⁾		85		95		-10.5	%		96		-11.5	%		173		200		-13.5	%		191		-9.4	%

Total	$	2,494	$	2,713		-8.1	%	$	2,575		-3.1	%	$	5,243	$	5,685		-7.8	%	$	5,245		0.0	%

Net Premiums Written
Europe	$	807	$	832		-3.0	%	$	821		-1.7	%	$	1,886	$	1,995		-5.5	%	$	1,918		-1.7	%
Latin America		483		585		-17.4	%		501		-3.6	%		979		1,196		-18.1	%		976		0.3	%
Asia		641		621		3.2	%		606		5.8	%		1,232		1,224		0.7	%		1,160		6.2	%
Other⁽²⁾		100		98		2.0	%		92		8.7	%		190		201		-5.5	%		185		2.7	%

Total	$	2,031	$	2,136		-5.0	%	$	2,020		0.5	%	$	4,287	$	4,616		-7.1	%	$	4,239		1.1	%

(1)	Prior periods on a constant dollar basis.

(2)	Primarily includes Eurasia and Africa, and the company’s international supplemental A&H business of Combined Insurance.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


Overseas General Ins. - As If		Page 23

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global Reinsurance


							Legacy ACE												Legacy ACE
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	268		$	213		$	109		$	190		$	292		$	481		$	584		$	883
Net premiums written		230			201			109			185			261			431			534			828
Net premiums earned		185			202			200			203			220			387			446			849
Losses and loss expenses		87			89			99			20			72			176			171			290
Policy acquisition costs		47			53			48			52			60			100			114			214
Administrative expenses		14			14			12			12			13			28			25			49

Underwriting income		37			46			41			119			75			83			136			296
Net investment income		65			67			70			76			79			132			154			300
Other income - operating		2			1			1			4			—			3			1			6

Segment income	$	104		$	114		$	112		$	199		$	154		$	218		$	291		$	602

Combined ratio
Loss and loss expense ratio		46.9	%		44.3	%		49.7	%		9.6	%		32.9	%		45.5	%		38.3	%		34.2	%
Policy acquisition cost ratio		25.5	%		26.2	%		24.1	%		25.4	%		27.2	%		25.9	%		25.6	%		25.2	%
Administrative expense ratio		7.4	%		6.8	%		6.0	%		6.2	%		5.6	%		7.1	%		5.6	%		5.8	%

Combined ratio		79.8	%		77.3	%		79.8	%		41.2	%		65.7	%		78.5	%		69.5	%		65.2	%

Combined ratio excluding catastrophe losses and PPD		78.9	%		78.5	%		76.6	%		75.3	%		79.6	%		78.7	%		77.5	%		76.8	%
Catastrophe reinstatement premiums collected - pre-tax	$	6		$	—		$	1		$	—		$	—		$	6		$	—		$	1
Catastrophe losses - pre-tax	$	52		$	1		$	6		$	11		$	5		$	53		$	5		$	22
Favorable prior period development (PPD) - pre-tax	$	(47	)	$	(3	)	$	—		$	(78	)	$	(36	)	$	(50	)	$	(41	)	$	(119	)
Loss and loss expense ratio excluding catastrophe losses and PPD		46.0	%		45.5	%		46.5	%		44.3	%		46.7	%		45.8	%		46.3	%		45.9	%
% Change versus prior year period
Net premiums written as reported		-11.9	%		-26.3	%		-22.1	%		-11.5	%		-5.9	%		-19.3	%		-8.8	%		-11.4	%
Net premiums earned as reported		-15.7	%		-10.7	%		-11.3	%		-20.4	%		-15.5	%		-13.2	%		-18.1	%		-17.2	%
Net premiums written constant $		-11.6	%		-24.6	%		-20.2	%		-9.5	%		-3.9	%		-18.2	%		-6.6	%		-9.3	%
Net premiums earned constant $		-15.0	%		-9.2	%		-9.0	%		-18.1	%		-13.2	%		-12.1	%		-16.3	%		-15.1	%
Other ratios
Net premiums written/gross premiums written		86	%		94	%		100	%		97	%		90	%		90	%		92	%		94	%


Global Reinsurance - Reported		Page 24

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global Reinsurance


	As If*
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	268		$	234		$	111		$	191		$	298		$	502		$	619		$	921
Net premiums written		230			221			111			185			266			451			561			857
Net premiums earned		185			202			208			212			227			387			455			875
Losses and loss expenses		87			89			103			21			73			176			171			295
Policy acquisition costs		47			53			48			52			61			100			114			214
Administrative expenses		14			14			12			13			15			28			30			55

Underwriting income	$	37		$	46		$	45		$	126		$	78		$	83		$	140		$	311

Combined ratio
Loss and loss expense ratio		46.9	%		44.3	%		49.2	%		9.7	%		32.5	%		45.5	%		37.7	%		33.7	%
Policy acquisition cost ratio		25.5	%		26.2	%		23.6	%		24.3	%		26.3	%		25.9	%		24.8	%		24.4	%
Administrative expense ratio		7.4	%		6.8	%		5.8	%		6.3	%		6.2	%		7.1	%		6.5	%		6.3	%

Combined ratio		79.8	%		77.3	%		78.6	%		40.3	%		65.0	%		78.5	%		69.0	%		64.4	%

Combined ratio excluding catastrophe losses and PPD		78.9	%		78.5	%		77.8	%		75.4	%		80.2	%		78.7	%		78.0	%		77.3	%
Catastrophe reinstatement premiums collected - pre-tax	$	6		$	—		$	1		$	—		$	—		$	6		$	—		$	1
Catastrophe losses - pre-tax	$	52		$	1		$	9		$	11		$	6		$	53		$	6		$	26
Favorable prior period development (PPD) - pre-tax	$	(47	)	$	(3	)	$	(7	)	$	(84	)	$	(41	)	$	(50	)	$	(47	)	$	(138	)
Loss and loss expense ratio excluding catastrophe losses and PPD		46.0	%		45.5	%		48.4	%		45.3	%		47.7	%		45.8	%		46.6	%		46.7	%
% Change versus prior year period
Net premiums written as reported		-13.3	%		-25.1	%											-19.5	%
Net premiums earned as reported		-18.2	%		-11.5	%											-14.9	%
Net premiums written constant $		-13.0	%		-23.4	%											-18.4	%
Net premiums earned constant $		-17.6	%		-10.0	%											-13.8	%
Other ratios
Net premiums written/gross premiums written		86	%		94	%		99	%		97	%		89	%		90	%		91	%		93	%

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


Global Reinsurance - As If		Page 25

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Life Insurance


							Legacy ACE												Legacy ACE
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	557		$	546		$	548		$	522		$	529		$	1,103		$	1,051		$	2,121
Net premiums written		527			516			515			492			500			1,043			991			1,998
Net premiums earned		512			497			506			480			487			1,009			961			1,947
Losses and loss expenses		147			177			159			153			137			324			289			601
Policy benefits ⁽¹⁾		146			126			159			89			153			272			295			543
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		(3	)		3			(13	)		49			(6	)		—			(17	)		19
Policy acquisition costs		137			122			134			117			118			259			225			476
Administrative expenses		77			72			70			74			74			149			147			291
Net investment income		69			67			67			66			66			136			132			265
Other income (expense) - operating ⁽¹⁾		(3	)		(3	)		(4	)		1			1			(6	)		(1	)		(4	)

Segment income	$	74		$	61		$	60		$	65		$	78		$	135		$	153		$	278

% Change versus prior year period
Net premiums written		5.5	%		5.1	%		-1.6	%		-0.8	%		0.3	%		5.3	%		-0.1	%		-0.7	%
Net premiums earned		5.1	%		4.9	%		1.4	%		-1.9	%		-0.8	%		5.0	%		-1.4	%		-0.8	%
Net premiums written constant $		8.2	%		10.2	%		3.7	%		4.4	%		4.1	%		9.1	%		3.3	%		3.7	%
Net premiums earned constant $		7.8	%		9.8	%		6.8	%		3.4	%		3.0	%		8.8	%		1.9	%		3.5	%

(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). The offsetting movement in the separate account liabilities is included in Policy benefits.

International life insurance net premiums written and deposits breakdown (excludes Combined North American and Life reinsurance businesses):


	2Q-16		Constant $ 2Q-15		Constant $ % Change 2Q-16 vs. 2Q-15			YTD-16		Constant $ YTD-15		Constant $ % Change YTD-16 vs YTD-15
International life insurance net premiums written	$	204	$	177		15.3	%	$	407	$	339		20.1	%
International life insurance deposits ⁽²⁾		262		251		4.2	%		475		492		-3.5	%

Total international life insurance net premiums written and deposits	$	466	$	428		8.8	%	$	882	$	831		6.1	%

(2)	Includes deposits collected on universal life and investment contracts. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.


Life Insurance - Reported		Page 26

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Life Insurance


	As If*
															YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15		2Q-15			2016			2015			2015
Gross premiums written	$	557		$	547		$	572		$	546	$	553		$	1,104		$	1,102		$	2,220
Net premiums written		527			517			538			515		524			1,044			1,040			2,093
Net premiums earned		512			499			531			503		511			1,011			1,009			2,043
Losses and loss expenses		147			177			171			165		148			324			312			648
Policy benefits ⁽¹⁾		146			126			159			89		153			272			295			543
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		(3	)		3			(13	)		49		(6	)		—			(17	)		19
Policy acquisition costs		137			123			138			120		123			260			236			494
Administrative expenses		77			73			80			83		83			150			165			328
Net investment income		69			67			67			66		66			136			132			265
Other income (expense) - operating ⁽¹⁾		(3	)		(3	)		(4	)		1		1			(6	)		(1	)		(4	)

Segment income	$	74		$	61		$	59		$	64	$	77		$	135		$	149		$	272

% Change versus prior year period
Net premiums written		0.7	%		0.0	%										0.4	%
Net premiums earned		0.2	%		0.2	%										0.2	%
Net premiums written constant $		3.5	%		4.6	%										4.0	%
Net premiums earned constant $		2.9	%		4.7	%										3.8	%

(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). The offsetting movement in the separate account liabilities is included in Policy benefits.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


Life Insurance - As If		Page 27

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Corporate


							Legacy ACE												Legacy ACE
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net premiums written		—			—			—			—			—			—			—			—
Net premiums earned		—			—			—			—			—			—			—			—
Losses and loss expenses		15			9			60			84			49			24			58			202
Policy acquisition costs		—			—			1			—			—			—			—			1
Administrative expenses		62			73			53			46			45			135			89			188

Underwriting loss		(77	)		(82	)		(114	)		(130	)		(94	)		(159	)		(147	)		(391	)
Net investment income		7			9			6			3			3			16			6			15
Other expense - operating		(2	)		(2	)		(9	)		(2	)		(4	)		(4	)		(9	)		(20	)
Adjusted interest expense⁽¹⁾		(166	)		(149	)		(64	)		(68	)		(71	)		(315	)		(139	)		(271	)
Amortization expense of purchased intangibles		(5	)		(7	)		(35	)		(51	)		(55	)		(12	)		(85	)		(171	)
Income tax expense		(212	)		(201	)		(97	)		(140	)		(136	)		(413	)		(255	)		(492	)

Operating loss		(455	)		(432	)		(313	)		(388	)		(357	)		(887	)		(629	)		(1,330	)
Chubb integration and related expenses, net of tax		(71	)		(106	)		(35	)		(7	)		—			(177	)		—			(42	)
Amortization of fair value adjustment on acquired invested assets and long-term debt, net of tax⁽¹⁾		(66	)		(59	)		—			—			—			(125	)		—			—
Adjusted net realized gains (losses) ⁽¹⁾		(214	)		(394	)		(57	)		(393	)		128			(608	)		39			(411	)
Net realized gains (losses) related to unconsolidated entities		18			(25	)		(17	)		25			33			(7	)		59			67
Income tax (expense) benefit on adjusted net realized gains (losses)		1			4			12			6			(7	)		5			(8	)		10

Net loss	$	(787	)	$	(1,012	)	$	(410	)	$	(757	)	$	(203	)	$	(1,799	)	$	(539	)	$	(1,706	)

Unfavorable prior period development (PPD) - pre-tax	$	14		$	8		$	60		$	84		$	47		$	22		$	56		$	200


	As If*
																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Gross premiums written	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net premiums written		—			—			—			—			—			—			—			—
Net premiums earned		—			—			—			—			—			—			—			—
Losses and loss expenses		15			9			102			114			60			24			77			293
Policy acquisition costs		—			—			1			—			—			—			—			1
Administrative expenses		62			76			83			84			68			138			150			317

Underwriting loss	$	(77	)	$	(85	)	$	(186	)	$	(198	)	$	(128	)	$	(162	)	$	(227	)	$	(611	)
Unfavorable prior period development (PPD) - pre-tax	$	14		$	8		$	102		$	114		$	58		$	22		$	75		$	291

Note: The Company presents all profit and loss items below Other income (expense) - operating within Corporate.

(1)	See non-GAAP financial measures.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


Corporate		Page 28

Chubb Limited

Loss Reserve Rollforward

(in millions of U.S. dollars, except ratios)

(Unaudited)


	Unpaid Losses									Net Paid to
	Gross			Ceded			Net			Incurred Ratio
Balance at December 31, 2014	$	38,315		$	11,307		$	27,008
Losses and loss expenses incurred		2,743			621			2,122
Losses and loss expenses paid		(3,062	)		(744	)		(2,318	)		109	%
Other (incl. foreign exch. revaluation)		(670	)		(197	)		(473	)

Balance at March 31, 2015	$	37,326		$	10,987		$	26,339
Losses and loss expenses incurred		3,065			648			2,417
Losses and loss expenses paid		(2,830	)		(547	)		(2,283	)		94	%
Other (incl. foreign exch. revaluation)		669			60			609

Balance at June 30, 2015	$	38,230		$	11,148		$	27,082
Losses and loss expenses incurred		3,252			609			2,643
Losses and loss expenses paid		(3,391	)		(908	)		(2,483	)		94	%
Other (incl. foreign exch. revaluation)		(527	)		(193	)		(334	)

Balance at September 30, 2015	$	37,564		$	10,656		$	26,908
Losses and loss expenses incurred		3,481			1,179			2,302
Losses and loss expenses paid		(3,616	)		(1,050	)		(2,566	)		111	%
Other (incl. foreign exch. revaluation)		(126	)		(44	)		(82	)

Balance at December 31, 2015	$	37,303		$	10,741		$	26,562
Losses and loss expenses incurred		4,663			989			3,674
Losses and loss expenses paid		(4,692	)		(1,143	)		(3,549	)		97	%
Acquired reserve (Legacy Chubb)		22,878			1,515			21,363
Other (incl. foreign exch. revaluation)		54			25			29

Balance at March 31, 2016	$	60,206		$	12,127		$	48,079
Losses and loss expenses incurred		5,239			985			4,254
Losses and loss expenses paid		(4,708	)		(752	)		(3,956	)		93	%
Other (incl. foreign exch. revaluation)		82			36			46

Balance at June 30, 2016	$	60,819		$	12,396		$	48,423
Add net recoverable on paid losses		—			839			(839	)

Balance including net recoverable on paid losses	$	60,819		$	13,235		$	47,584


Loss Reserve Rollforward		Page 29

Chubb Limited

Reinsurance Recoverable Analysis

(in millions of U.S. dollars)

(Unaudited)

Net Reinsurance Recoverable by Division


							Legacy ACE
	June 30			March 31			December 31
	2016			2016			2015
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	598		$	592		$	450
Brandywine and Other Run-off		323			269			288

Total	$	921		$	861		$	738

Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	11,535		$	11,169		$	9,884
Brandywine and Other Run-off		1,097			1,182			1,092

Total	$	12,632		$	12,351		$	10,976

Gross reinsurance recoverable
Active operations	$	12,133		$	11,761		$	10,334
Brandywine and Other Run-off		1,420			1,451			1,380

Total	$	13,553		$	13,212		$	11,714

Provision for uncollectible reinsurance ⁽¹⁾
Active operations	$	(162	)	$	(164	)	$	(194	)
Brandywine and Other Run-off		(156	)		(157	)		(134	)

Total	$	(318	)	$	(321	)	$	(328	)

Net reinsurance recoverable
Active operations	$	11,971		$	11,597		$	10,140
Brandywine and Other Run-off		1,264			1,294			1,246

Total	$	13,235		$	12,891		$	11,386

(1)	The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of usable collateral of approximately $3.2 billion.


Reinsurance Recoverable		Page 30

Chubb Limited

Investment Portfolio

(in millions of U.S. dollars)

(Unaudited)


											Legacy ACE
	June 30					March 31					December 31
	2016					2016					2015
Market Value
Fixed maturities available for sale	$	79,951				$	77,538				$	43,587
Fixed maturities held to maturity		11,581					11,580					8,552
Short-term investments		3,631					3,382					10,446

Total fixed maturities	$	95,163				$	92,500				$	62,585

Asset Allocation by Market Value
Treasury	$	2,864		3	%	$	3,145		3	%	$	2,395		4	%
Agency		550		1	%		634		1	%		878		1	%
Corporate and asset-backed		25,450		27	%		24,060		26	%		17,985		28	%
Mortgage-backed		14,440		15	%		13,757		15	%		11,701		19	%
Municipal		24,975		26	%		24,945		27	%		4,950		8	%
Non-U.S.		23,253		24	%		22,577		24	%		14,230		23	%
Short-term investments		3,631		4	%		3,382		4	%		10,446		17	%

Total fixed maturities	$	95,163		100	%	$	92,500		100	%	$	62,585		100	%

Credit Quality by Market Value
AAA	$	17,412		18	%	$	19,524		21	%	$	14,369		23	%
AA		36,802		39	%		34,399		37	%		22,141		36	%
A		18,016		19	%		17,726		19	%		10,163		16	%
BBB		12,148		13	%		11,604		13	%		8,941		14	%
BB		6,465		7	%		5,484		6	%		3,775		6	%
B		4,061		4	%		3,494		4	%		3,018		5	%
Other		259		0	%		269		0	%		178		0	%

Total fixed maturities	$	95,163		100	%	$	92,500		100	%	$	62,585		100	%

Cost/Amortized Cost
Fixed maturities available for sale	$	77,436				$	75,991				$	43,149
Fixed maturities held to maturity		11,090					11,280					8,430
Short-term investments		3,631					3,382					10,446

Subtotal fixed maturities		92,157					90,653					62,025
Equity securities		703					841					441
Other investments		4,152					4,233					2,993

Total investment portfolio	$	97,012				$	95,727				$	65,459

Avg. duration of fixed maturities		3.9 years					3.9 years					3.5 years
Avg. market yield of fixed maturities		2.3	%				2.5	%				2.8	%
Avg. credit quality		A/Aa					AA/Aa					A/Aa
Avg. yield on invested assets⁽¹⁾		3.4	%				3.4	%				3.4	%

(1)	Calculated using adjusted net investment income.


Investments		Page 31

Chubb Limited

Investment Portfolio - 2

(in millions of U.S. dollars)

(Unaudited)

Mortgage-backed Fixed Income Portfolio

Mortgage-backed securities


	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Market Value at June 30, 2016
Agency residential mortgage-backed (RMBS)	$	—	$	11,360	$	—	$	—	$	—	$	11,360
Non-agency RMBS		4		6		10		8		35		63
Commercial mortgage-backed		2,978		33		6		—		—		3,017

Total mortgage-backed securities at market value	$	2,982	$	11,399	$	16	$	8	$	35	$	14,440

U.S. Corporate and Asset-backed Fixed Income Portfolios


	S&P Credit Rating
	Investment Grade
	AAA		AA		A		BBB		Total
Market Value at June 30, 2016
Asset-backed	$	717	$	39	$	—	$	—	$	756
Banks		—		17		1,620		1,596		3,233
Basic Materials		—		—		109		248		357
Communications		—		160		300		1,254		1,714
Consumer, Cyclical		—		183		621		744		1,548
Consumer, Non-Cyclical		113		549		1,801		1,097		3,560
Diversified Financial Services		29		41		478		204		752
Energy		—		60		114		696		870
Industrial		—		346		551		505		1,402
Utilities		1		8		1,067		653		1,729
All Others		83		456		776		572		1,887

Total	$	943	$	1,859	$	7,437	$	7,569	$	17,808


	S&P Credit Rating
	Below Investment Grade
	BB		B		CCC		Total
Market Value at June 30, 2016
Asset-backed	$	6	$	—	$	10	$	16
Banks		36		—		—		36
Basic Materials		169		137		2		308
Communications		896		646		23		1,565
Consumer, Cyclical		847		566		37		1,450
Consumer, Non-Cyclical		717		927		12		1,656
Diversified Financial Services		169		37		1		207
Energy		349		124		25		498
Industrial		377		376		24		777
Utilities		261		105		2		368
All Others		465		276		20		761

Total	$	4,292	$	3,194	$	156	$	7,642


Investments 2		Page 32

Chubb Limited

Investment Portfolio - 3

(in millions of U.S. dollars)

(Unaudited)

Non-U.S. Fixed Income Portfolio

June 30, 2016

Non-U.S. Government Securities


	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	—	$	1,848	$	—	$	—	$	—	$	1,848
Canada		1,204		—		—		—		—		1,204
Republic of Korea		—		1,046		—		—		—		1,046
Federative Republic of Brazil		—		—		—		—		833		833
Germany		622		—		—		—		—		622
Province of Ontario		—		—		513		—		—		513
United Mexican States		—		—		322		167		—		489
Kingdom of Thailand		—		—		424		—		—		424
Province of Quebec		—		—		385		—		—		385
Australia		317		3		—		—		—		320
Other Non-U.S. Government Securities		1,090		1,611		544		413		645		4,303

Total	$	3,233	$	4,508	$	2,188	$	580	$	1,478	$	11,987

Non-U.S. Corporate Securities


	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	134	$	105	$	813	$	871	$	255	$	2,178
Canada		124		307		308		405		197		1,341
United States ⁽¹⁾		2		113		193		310		288		906
France		23		62		466		281		38		870
Netherlands		78		55		401		200		71		805
Australia		99		161		272		90		38		660
Germany		95		66		144		213		23		541
Japan		—		42		335		43		9		429
Switzerland		35		21		107		149		35		347
China		—		131		110		34		4		279
Other Non-U.S. Corporate Securities		485		409		860		653		503		2,910

Total	$	1,075	$	1,472	$	4,009	$	3,249	$	1,461	$	11,266

(1)	Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.


Investments 3		Page 33

Chubb Limited

Investment Portfolio - 4

(in millions of U.S. dollars)

(Unaudited)

Fixed Maturity Investment Portfolio

Top 10 Global Corporate Exposures


	June 30, 2016	Market Value		Rating
1	JP Morgan Chase & Co	$	546	A-
2	Wells Fargo & Co		468	A
3	General Electric Co		444	AA+
4	Goldman Sachs Group Inc		416	BBB+
5	Bank of America Corp		385	BBB+
6	Anheuser-Busch InBev NV		356	A-
7	Verizon Communications Inc		355	BBB+
8	AT&T Inc		334	BBB+
9	Berkshire Hathaway Inc		321	AA
10	Rabobank Nederland NV		310	A+


Investments 4		Page 34

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Three months ended June 30, 2016
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)⁽¹⁾			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed maturities	$	7		$	(8	)	$	(1	)	$	954		$	(234	)	$	720		$	961		$	(242	)	$	719
Fixed income derivatives		(47	)		7			(40	)		—			—			—			(47	)		7			(40	)
Public equity		(5	)		2			(3	)		33			(10	)		23			28			(8	)		20
Private equity		33			(5	)		28			(42	)		5			(37	)		(9	)		—			(9	)

Total investment portfolio		(12	)		(4	)		(16	)		945			(239	)		706			933			(243	)		690
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		(159	)		—			(159	)		—			—			—			(159	)		—			(159	)
Foreign exchange		(22	)		4			(18	)		81			24			105			59			28			87
Partially-owned entities ⁽³⁾		(2	)		1			(1	)		—			—			—			(2	)		1			(1	)
Other		(1	)		—			(1	)		1			2			3			—			2			2

Net gains (losses)	$	(196	)	$	1		$	(195	)	$	1,027		$	(213	)	$	814		$	831		$	(212	)	$	619

(1)	Other-than-temporary impairments for the quarter includes $11 million for fixed maturities and $5 million for public equity.

(2)	The quarter includes $28 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(3)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).


	Legacy ACE
	Three months ended June 30, 2015
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)⁽⁴⁾			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed maturities	$	5		$	—		$	5		$	(832	)	$	171		$	(661	)	$	(827	)	$	171		$	(656	)
Fixed income derivatives		27			(9	)		18			—			—			—			27			(9	)		18
Public equity		29			(8	)		21			(23	)		8			(15	)		6			—			6
Private equity		27			(2	)		25			5			(1	)		4			32			(3	)		29

Total investment portfolio		88			(19	)		69			(850	)		178			(672	)		(762	)		159			(603	)
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁵⁾		102			—			102			—			—			—			102			—			102
Foreign exchange		(40	)		11			(29	)		136			(4	)		132			96			7			103
Partially-owned entities ⁽⁶⁾		18			(1	)		17			—			—			—			18			(1	)		17
Other		(7	)		2			(5	)		(6	)		1			(5	)		(13	)		3			(10	)

Net gains (losses)	$	161		$	(7	)	$	154		$	(720	)	$	175		$	(545	)	$	(559	)	$	168		$	(391	)

(4)	Other-than-temporary impairments for the quarter includes $7 million for fixed maturities and $1 million for public equity.

(5)	The quarter includes $2 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).


Net Gains (Losses) 1		Page 35

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Six months ended June 30, 2016
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)⁽¹⁾			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed maturities	$	(183	)	$	6		$	(177	)	$	2,042		$	(466	)	$	1,576		$	1,859		$	(460	)	$	1,399
Fixed income derivatives		(86	)		12			(74	)		—			—			—			(86	)		12			(74	)
Public equity		33			(11	)		22			29			(9	)		20			62			(20	)		42
Private equity		14			3			17			(69	)		3			(66	)		(55	)		6			(49	)

Total investment portfolio		(222	)		10			(212	)		2,002			(472	)		1,530			1,780			(462	)		1,318
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		(402	)		—			(402	)		—			—			—			(402	)		—			(402	)
Foreign exchange		17			(6	)		11			393			(11	)		382			410			(17	)		393
Partially-owned entities ⁽³⁾		(5	)		1			(4	)		—			—			—			(5	)		1			(4	)
Other		(3	)		—			(3	)		3			1			4			—			1			1

Net gains (losses)	$	(615	)	$	5		$	(610	)	$	2,398		$	(482	)	$	1,916		$	1,783		$	(477	)	$	1,306

(1)	Year to date other-than-temporary impairments includes $70 million for fixed maturities, $6 million for public equity and $3 million for private equity.

(2)	Year to date includes $43 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(3)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).


	Legacy ACE
	Six months ended June 30, 2015
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)⁽⁴⁾			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed maturities	$	1		$	(5	)	$	(4	)	$	(393	)	$	93		$	(300	)	$	(392	)	$	88		$	(304	)
Fixed income derivatives		28			(3	)		25			—			—			—			28			(3	)		25
Public equity		30			(9	)		21			(6	)		2			(4	)		24			(7	)		17
Private equity		40			(3	)		37			(7	)		—			(7	)		33			(3	)		30

Total investment portfolio		99			(20	)		79			(406	)		95			(311	)		(307	)		75			(232	)
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁵⁾		45			—			45			—			—			—			45			—			45
Foreign exchange		(71	)		12			(59	)		(285	)		7			(278	)		(356	)		19			(337	)
Partially-owned entities ⁽⁶⁾		31			(2	)		29			—			—			—			31			(2	)		29
Other		(6	)		2			(4	)		7			(2	)		5			1			—			1

Net gains (losses)	$	98		$	(8	)	$	90		$	(684	)	$	100		$	(584	)	$	(586	)	$	92		$	(494	)

(4)	Year to date other-than-temporary impairments includes $20 million for fixed maturities and $1 million for public equities.

(5)	Year to date includes $14 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).


Net Gains (Losses) 2		Page 36

Chubb Limited

Debt and Capital

(in millions of U.S. dollars, except ratios)

(Unaudited)


							Legacy ACE
	June 30			March 31			December 31			December 31
	2016			2016			2015			2014
Financial Debt:
Total short-term debt	$	500		$	500		$	—		$	1,150
Total long-term debt ⁽¹⁾		12,631			12,636			9,389			3,334

Total financial debt	$	13,131		$	13,136		$	9,389		$	4,484
Hybrid debt
Total trust preferred securities		308			308			307			307

Total	$	13,439		$	13,444		$	9,696		$	4,791

Capitalization:
Shareholders’ equity	$	47,226		$	45,897		$	29,135		$	29,587
Hybrid debt		308			308			307			307
Financial debt		13,131			13,136			9,389			4,484

Total capitalization	$	60,665		$	59,341		$	38,831		$	34,378

Leverage ratios (based on total capital)
Hybrid debt		0.5	%		0.5	%		0.8	%		0.9	%
Financial debt		21.6	%		22.1	%		24.2	%		13.0	%

Total hybrid & financial debt		22.1	%		22.6	%		25.0	%		13.9	%

Note: As of June 30, 2016, there was $0.5 billion usage of credit facilities on a total commitment of $1.5 billion.

(1)	In connection with our acquisition of The Chubb Corporation, we assumed $3.3 billion par value of Legacy Chubb’s debt, fair valued at $3.8 billion for purchase accounting purposes. This included $1 billion of junior subordinated capital securities.


Debt and Capital		Page 37

Chubb Limited

Computation of Basic and Diluted Earnings Per Share

(in millions of U.S. dollars, except share and per share data)

(Unaudited)


	Three months ended June 30						Six months ended June 30
	2016			2015			2016			2015
Numerator
Operating income to common shares	$	1,058		$	788		$	2,077		$	1,533
Amortization of fair value adjustment on acquired invested assets and long-term debt, pre-tax ⁽¹⁾		(95	)		—			(178	)		—
Tax benefit on amortization adjustment		29			—			53			—
Chubb integration and related expenses, pre-tax		(98	)		—			(253	)		—
Tax benefit on Chubb integration and related expenses		27			—			76			—
Adjusted net realized gains (losses), pre-tax		(196	)		161			(615	)		98
Tax (expense) benefit on adjusted net realized gains (losses)		1			(7	)		5			(8	)

Net income	$	726		$	942		$	1,165		$	1,623

Rollforward of Common Shares Outstanding
Shares - beginning of period		464,283,520			327,084,762			324,563,441			328,659,686
Share Issuance for Chubb Acquisition		—			—			136,950,381			—
Repurchase of shares		—			(3,650,200	)		—			(6,677,663	)
Shares issued, excluding option exercises		297,586			107,071			2,469,747			1,118,101
Issued for option exercises		431,874			272,648			1,029,411			714,157

Shares - end of period		465,012,980			323,814,281			465,012,980			323,814,281

Denominator
Weighted average shares outstanding		467,701,328			325,463,196			457,102,802			326,795,838
Effect of other dilutive securities		3,455,969			3,222,562			3,379,559			3,373,809

Adj. wtd. avg. shares outstanding and assumed conversions		471,157,297			328,685,758			460,482,361			330,169,647

Basic earnings per share
Operating income	$	2.26		$	2.42		$	4.54		$	4.69
Amortization of fair value adjustment on acquired invested assets and long-term debt, net of tax ⁽¹⁾		(0.14	)		—			(0.27	)		—
Chubb integration and related expenses, net of tax		(0.15	)		—			(0.39	)		—
Adjusted net realized gains (losses), net of tax		(0.42	)		0.47			(1.33	)		0.28

Net income	$	1.55		$	2.89		$	2.55		$	4.97

Diluted earnings per share
Operating income	$	2.25		$	2.40		$	4.51		$	4.64
Amortization of fair value adjustment on acquired invested assets and long-term debt⁽¹⁾		(0.14	)		—			(0.27	)		—
Chubb integration and related expenses		(0.15	)		—			(0.38	)		—
Adjusted net realized gains (losses)		(0.42	)		0.46			(1.33	)		0.27

Net income	$	1.54		$	2.86		$	2.53		$	4.91

(1)	Related to the acquisition of the Chubb Corporation.


Earnings per share		Page 38

Chubb Limited

Book Value and Book Value per Common Share

(in millions of U.S. dollars, except share and per share data)

(Unaudited)

Reconciliation of Book Value per Common Share


	June 30			March 31			December 31			June 30
	2016			2016			2015			2015
Shareholders’ equity	$	47,226		$	45,897		$	29,135		$	29,555
Less: goodwill and other intangible assets, net of tax		20,656			20,904			5,683			5,969

Numerator for tangible book value per share	$	26,570		$	24,993		$	23,452		$	23,586

Book value - % change over prior quarter		2.9	%		57.5	%		0.0	%		-0.5	%
Tangible book value - % change over prior quarter		6.3	%		6.6	%		0.2	%		-2.5	%
Denominator		465,012,980			464,283,520			324,563,441			323,814,281

Book value per common share	$	101.56		$	98.85		$	89.77		$	91.27
Tangible book value per common share	$	57.14		$	53.83		$	72.25		$	72.84
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter	$	45,897		$	29,135		$	29,127		$	29,702
Operating income		1,058			1,019			780			788
Amortization of fair value adjustment on acquired invested assets and long-term debt, net of tax ⁽¹⁾		(66	)		(59	)		—			—
Chubb integration and related expenses, net of tax		(71	)		(106	)		(35	)		—
Adjusted net realized gains (losses), net of tax		(195	)		(415	)		(62	)		154
Net unrealized gains (losses) on the investment portfolio		706			824			(411	)		(672	)
Share Issuance related to acquisition of The Chubb Corp.		—			15,204			—			—
Fair value of equity awards assumed in acquisition of The Chubb Corp.		—			323			—			—
Repurchase of shares		—			—			—			(394	)
Dividend declared on common shares		(323	)		(314	)		(218	)		(217	)
Cumulative translation		105			277			(133	)		132
Pension liability		3			1			1			(5	)
Other⁽²⁾		112			8			86			67

	$	47,226		$	45,897		$	29,135		$	29,555

(1)	Related to the acquisition of The Chubb Corporation.

(2)	Other primarily includes proceeds from exercise of stock options and stock compensation.


Reconciliation Book Value		Page 39

Chubb Limited

Non-GAAP Financial Measures

(in millions of U.S. dollars)

(Unaudited)

Regulation G - Non-GAAP Financial Measures

In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

We provide financial measures such as gross premiums written, net premiums written, net premiums earned, and operating income on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.

Adjusted net realized gains (losses) is a non-GAAP financial measure that excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations and therefore realized gains and losses from these derivatives are reclassified to Adjusted losses and loss expenses (a non-GAAP financial measure). Adjusted losses and loss expenses include gains and losses on crop derivatives. P&C loss and loss expense ratio and P&C combined ratio (both non-GAAP financial measures) include adjusted losses and loss expenses in the ratio numerator. A reconciliation of GAAP combined ratio to P&C combined ratio is provided on page 42.

Other income (expense) – operating is a non-GAAP financial measure and excludes the portion of net realized gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported as net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant percentage of the investee’s shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our underwriting operations as they are heavily influenced by, and fluctuate in part according to market conditions. The focus of our business is underwriting operations. Excluding results that are not underwriting related provide visibility into the effectiveness of our company pricing underwriting risks. Results based on market conditions, such as realized gains and losses from our investment portfolio, and results that are driven by unusual items, such as the size and complexity of our recent Chubb Corp acquisition and the related integration costs and purchase accounting adjustments, are not indicative measure of our effectiveness in pricing underwriting risks.

In presenting our segment income results, we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting adjusted losses and loss expenses, policy benefits, policy acquisition costs, and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and adjusted net realized gains (losses). P&C underwriting income is a non-GAAP financial measure which excludes the Life Insurance segment. North American Agricultural Insurance underwriting income includes gains (losses) on crop derivatives.

P&C combined ratio excluding catastrophe losses and prior period development (PPD) is a non-GAAP financial measure. The ratio numerator includes adjusted losses and loss expenses, policy acquisition costs, and administrative expenses adjusted to exclude catastrophe losses and PPD. The ratio denominator includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected and net earned premium adjustments on loss sensitive policies. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.

P&C loss and loss expense ratio excluding the impact of catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes adjusted losses and loss expenses and excludes catastrophe losses and PPD. The loss ratio denominator includes Net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating this ratio. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.

P&C expense ratio excluding accident and health (A&H) is a non-GAAP financial measure and excludes the impact of our A&H business from our consolidated expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.

Global P&C performance metrics are non-GAAP financial measures and comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life Insurance and North American Agricultural Insurance segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the North American Agricultural Insurance and Life Insurance segments because the results of these businesses do not always correlate with the results of our global P&C operations.

International life insurance net premiums written and deposits collected, is a non-GAAP financial measure. Deposits collected on universal life and investment contracts (life deposits) are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our life insurance business because new life deposits are an important component of production and key to our efforts to grow our business.

Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on adjusted net realized gains (losses). The denominator excludes adjusted net realized gains (losses), before tax. We exclude adjusted net realized gains (losses) and the related tax impact because these amounts are heavily influenced by, and fluctuate in part according to, the availability of market opportunities. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.

Tangible book value per common share is a non-GAAP financial measure and is shareholders’ equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of tangible book value per share is provided on page 39. Tangible book value per common share excluding acquisitions is shareholders’ equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding. The numerator adds back the goodwill and other intangible assets, net of tax, related to the acquisition of The Chubb Corporation in order to adjust for the distortive effect of the acquisition. In addition, we disclose per share measures that exclude the impact of foreign currency fluctuations during 2016 in order to adjust for the distortive effects of fluctuations in exchange rates.

Operating income is a non-GAAP financial measure that excludes the after-tax impact of adjusted net realized gains (losses), net realized gains (losses) included in other income (expense) related to partially owned entities, Chubb integration and related expenses, and the amortization of the fair value adjustments related to purchased invested assets and long-term debt from the Chubb Corp acquisition. We exclude realized gains and losses because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We also exclude Chubb integration and related expenses due to the size and complexity of this acquisition. Chubb integration expenses are incurred by the overall company and are therefore included in Corporate. The costs are not related to the on-going activities of the individual segments and are therefore excluded from our definition of segment income, as well. These integration and related expenses are distortive to our results and are not indicative of our underlying profitability. We believe that excluding these integration and related expenses facilitate the comparison of our financial results to our historical operating results. These expenses include legal and professional fees and all other costs directly related to the integration activities of the Chubb Corp acquisition. In addition, we excluded the pre-acquisition interest expense on the $5.3 billion senior notes issued in November 2015 from operating income because the operations for which the debt was issued were not part of our operating activities prior to the completion of the acquisition. Effective with the close of the Chubb acquisition (January 14, 2016), this debt was considered a cost of our operations and interest expense associated with this debt is included within operating income. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. Operating income should not be viewed as a substitute for net income determined in accordance with GAAP.

Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment on acquired invested assets. Adjusted interest expense is interest expense excluding the amortization of the fair value adjustment on acquired debt and the pre-acquisition interest expense on the $5.3 billion senior notes issued in November 2015. We believe that excluding these items are meaningful in order to present the underlying economics of the company’s business.

We acquired Fireman’s Fund high net worth personal lines business in April 2015 and recognized as written premiums non-recurring unearned premiums reserves of $252 million. Due to the size of this non-recurring transfer, we believe that excluding this one-time benefit in 2015 will allow for comparability when assessing trends in our business. We present measures exclusive of Fireman’s Fund high net worth business and a $19 million one-time reinsurance benefit related to a modification in terms related to a ceded reinsurance contract that resulted in a reinsurance return premium. We exclude Fireman’s Fund from our 2016 and 2015 in order to show its impact on our results and to highlight the negative impact of Fireman’s Fund low retention on our business.


Reconciliation Non-GAAP		Page 40

Chubb Limited

Non-GAAP Financial Measures - 2

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Operating income

Operating income is a common performance measure for insurance companies and is presented throughout this report.

The following table presents the reconciliation of Net income to Operating income:


																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Net income, as reported	$	726		$	439		$	683		$	528		$	942		$	1,165		$	1,623		$	2,834
Amortization of fair value adjustment on acquired invested assets and long-term debt, pre-tax ⁽¹⁾		(95	)		(83	)		—			—			—			(178	)		—			—
Tax benefit on amortization adjustment		29			24			—			—			—			53						—
Chubb integration and related expenses, pre tax		(98	)		(155	)		(53	)		(9	)		—			(253	)		—			(62	)
Tax benefit on Chubb integration and related expenses		27			49			18			2			—			76			—			20
Adjusted net realized gains (losses)		(214	)		(394	)		(57	)		(393	)		128			(608	)		39			(411	)
Net realized gains (losses) related to unconsolidated entities ⁽²⁾		18			(25	)		(17	)		25			33			(7	)		59			67
Tax (expense) benefit on adjusted net realized gains (losses)		1			4			12			6			(7	)		5			(8	)		10

Operating income	$	1,058		$	1,019		$	780		$	897		$	788		$	2,077		$	1,533		$	3,210

(1)	Related to the acquisition of The Chubb Corporation

(2)	Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).

Operating ROE

Operating return on equity (ROE) or ROE calculated using operating income: The ROE numerator includes income adjusted to exclude after-tax adjusted net realized gains (losses), Chubb integration and related expenses, and the amortization of the fair value adjustment on acquired invested assets and long-term debt. The ROE denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. In addition, for the six months ended June 30, 2016, the denominator was adjusted to account for the weighted-average impact of the $15,527 million issuance of common shares and equity awards related to the Chubb Corp acquisition on January 14, 2016 . To annualize YTD 2016 operating ROE, include the 14-day stub period adjustment in the numerator (i.e., include income from the first 14 days of January of approximately $60 million to account for the distortive impact of Q1 not having a full quarter given the acquisition close on January 14, 2016). Operating ROE is a useful measures as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.


							YTD			YTD			Full Year
	2Q-16			2Q-15			2016			2015			2015
Net income	$	726		$	942		$	1,165		$	1,623		$	2,834
Operating income	$	1,058		$	788		$	2,077		$	1,533		$	3,210
Equity - beginning of period, as reported	$	45,897		$	29,702		$	29,135		$	29,587		$	29,587
Add: weighted average impact of equity issuance (168 days)								14,333
Less: unrealized gains (losses) on investments, net of deferred tax		1,698			2,212			874			1,851			1,851

Equity - beginning of period, as adjusted	$	44,199		$	27,490		$	42,594		$	27,736		$	27,736

Equity - end of period, as reported	$	47,226		$	29,555		$	47,226		$	29,555		$	29,135
Less: weighted average impact of equity issuance (14 days)		—			—			1,194			—			—
Less: unrealized gains (losses) on investments, net of deferred tax		2,404			1,540			2,404			1,540			874

Equity - end of period, as adjusted	$	44,822		$	28,015		$	43,628		$	28,015		$	28,261

Weighted average equity, as reported	$	46,562		$	29,629		$	44,750		$	29,571		$	29,361
Weighted average equity, as adjusted	$	44,511		$	27,753		$	43,111		$	27,876		$	27,999
Operating ROE		9.5	%		11.4	%		9.8	%		11.0	%		11.5	%
ROE		6.2	%		12.7	%		5.3	%		11.0	%		9.7	%


Reconciliation Non-GAAP 2		Page 41

Chubb Limited

Non-GAAP Financial Measures - 3

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Operating effective tax rate

The following table presents the reconciliation of effective tax rate to the operating effective tax rate:


																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
Tax expense, as reported	$	155		$	124		$	67		$	132		$	143		$	279		$	263		$	462
Tax benefit on amortization of fair value of acquired invested assets and debt ⁽¹⁾		(29	)		(24	)		—			—			—			(53	)		—			—
Tax benefit on Chubb integration and related expenses		(27	)		(49	)		(18	)		(2	)		—			(76	)		—			(20	)
Tax expense (benefit) on adjusted net realized gains (losses)		(1	)		(4	)		(12	)		(6	)		7			(5	)		8			(10	)

Tax expense, adjusted	$	212		$	201		$	97		$	140		$	136		$	413		$	255		$	492

Income before tax, as reported	$	881		$	563		$	750		$	660		$	1,085		$	1,444		$	1,886		$	3,296
Less: amortization of fair value of acquired invested assets and debt ⁽¹⁾		(95	)		(83	)		—			—			—			(178	)		—			—
Less: Chubb integration and related expenses		(98	)		(155	)		(53	)		(9	)		—			(253	)		—			(62	)
Less: adjusted realized gains (losses)		(214	)		(394	)		(57	)		(393	)		128			(608	)		39			(411	)
Less: realized gains (losses) related to unconsolidated entities		18			(25	)		(17	)		25			33			(7	)		59			67

Operating income before tax	$	1,270		$	1,220		$	877		$	1,037		$	924		$	2,490		$	1,788		$	3,702

Effective tax rate		17.6	%		22.1	%		9.0	%		20.1	%		13.2	%		19.3	%		13.9	%		14.0	%
Adjustment for tax impact of amortization of fair value of acquired invested assets and debt ⁽¹⁾		1.1	%		0.9	%		—			—			—			1.0	%		—			—
Adjustment for tax impact of Chubb integration and related expenses		0.9	%		2.2	%		1.5	%		-0.1	%		—			1.5	%		—			0.3	%
Adjustment for tax impact of adjusted net realized gains (losses)		-2.9	%		-8.7	%		0.6	%		-6.5	%		1.5	%		-5.2	%		0.3	%		-1.0	%

Operating effective tax rate		16.7	%		16.5	%		11.1	%		13.5	%		14.7	%		16.6	%		14.2	%		13.3	%

(1)	Related to the acquisition of The Chubb Corporation

P&C combined ratio

The following table presents the reconciliation of GAAP combined ratio to P&C combined ratio. The P&C combined ratio includes the impact of realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations.


																YTD			YTD			Full Year
	2Q-16			1Q-16			4Q-15			3Q-15			2Q-15			2016			2015			2015
GAAP combined ratio		91.2	%		90.0	%		87.7	%		85.8	%		87.6	%		90.6	%		88.0	%		87.3	%
Impact of gains and losses on crop derivatives		0.0	%		0.0	%		0.0	%		0.1	%		0.1	%		0.0	%		0.0	%		0.1	%

P&C combined ratio		91.2	%		90.0	%		87.7	%		85.9	%		87.7	%		90.6	%		88.0	%		87.4	%


Reconciliation Non-GAAP 3		Page 42

Chubb Limited

Non-GAAP Financial Measures - 4

(in millions of U.S. dollars, except share data)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Chubb integration and related expenses, net of tax

Chubb integration and related expenses is a non-GAAP financial measure and includes legal and professional fees and all other costs directly related to the integration activities of the Chubb acquisition, including the pre-acquisition interest expense on the $5.3 billion senior notes issued in November 2015. We exclude Chubb integration expenses related to the Chubb acquisition from operating income due to the size and complexity of this acquisition. We exclude the pre-acquisition interest expense from operating income because the operations for which the debt was issued were not part of our operating activities prior to the completion of the acquisition. Effective with the close of the Chubb acquisition (January 14, 2016), the interest on this debt was considered a cost of our operations and is included within operating income. These integration and related expenses are distortive to our results and are not indicative of our underlying profitability. We believe that excluding these integration and related expenses facilitate the comparison of our financial results to our historical operating results. The following table presents the reconciliation of Chubb integration expenses on a GAAP basis to Chubb integration and related expenses.


											YTD		YTD		Full Year
	2Q-16		1Q-16		4Q-15		3Q-15		2Q-15		2016		2015		2015
Chubb integration expenses, net of tax	$	71	$	102	$	16	$	7	$	—	$	173	$	—	$	23
Add: pre-acquisition interest expense related to $5.3 billion senior notes, net of tax		—		4		19		—		—		4		—		19

Chubb integration and related expenses, net of tax		71		106		35		7		—		177		—		42
Tax benefit		27		49		18		2		—		76		—		20

Chubb integration and related expenses, pre- tax	$	98	$	155	$	53	$	9	$	—	$	253	$	—	$	62

As If Results

As If results presented throughout this document are prepared exclusive of purchase accounting adjustments in order to present the underlying profitability of our insurance business. We believe that excluding these adjustments provide visibility and comparability into our results. As If is defined as follows:

2016 As If results: The 2016 and 2015 As If underwriting results do not include any impact from purchase accounting adjustments. The first quarter and year to date combined company results are inclusive of the first 14 days of January 2016.

The following presents the reconciliation of earnings per share to earnings per share, including the 14 day stub period for YTD 2016:


	YTD				YTD
Numerator	2016			Denominator	2016
Operating income as reported	$	2,077
Add: 14-day stub period income				Weighted average shares outstanding and assumed conversions		460,482,361
Underwriting income		44		Impact of shares issued in connection with Chubb Corp acquisition		10,116,378
Net investment income		45		As If adjusted weighted average shares outstanding		470,598,739
Interest expense		(9	)
Income tax expense		(20	)	Diluted earnings per share, including 14 day stub period

Total 14-day stub period income		60		Operating income per share	$	4.54

As If operating income, including 14 day stub period	$	2,137		Net income per share	$	2.60

Net income as reported	$	1,165
Add: 14-day stub period income from above		60

As If net income, including 14 day stub period	$	1,225


Reconciliation Non-GAAP 4		Page 43

Chubb Limited

Non-GAAP Financial Measures - 5

(in millions of U.S. dollars)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

The following table presents the reconciliation of Q1 2016 As If underwriting income excluding purchase accounting adjustments and including 14 days prior to the acquisition (14 Day Stub Period) to Q1 2016 underwriting results.


			Purchase Accounting adjustments ⁽¹⁾					14 Day Stub Period
	Total Consolidated As If* (Excluding Purchase Accounting)		Acquisition expense elimination			UPR intangible amortization		North America Commercial P&C Insurance		North America Personal P&C Insurance		Overseas General Insurance		Global Reinsurance		Life Insurance		Corporate			Total Consolidated
Q1 2016
Net premiums written	$	6,850						$	519	$	100	$	215	$	20	$	1	$	—		$	5,995
Net premiums earned		6,988							208		109		72		—		2		—			6,597
Losses and loss expenses		3,896							127		53		42		—		—		—			3,674
Policy benefits		126							—		—		—		—		—		—			126
(Gains) losses from fair value changes in separate account assets		3							—		—		—		—		—		—			3
Policy acquisition costs		1,410		(506	)				33		14		13		—		1		—			843
Amortization of acquired UPR intangible		—					570		—		—		—		—		—		—			570
Administrative expenses		836							35		13		12		—		1		3			772

Adjusted underwriting income (loss)	$	717						$	13	$	29	$	5	$	—	$	—	$	(3	)	$	609

(1)

Purchase accounting adjustments include the amortization of the fair value adjustment related to unearned premiums at the date of purchase amortized over the remaining coverage period. In addition, as part of purchase accounting, we recognize a benefit (Acquisition expense elimination) associated with the acquired unearned premiums being recognized over the remaining coverage period with no expense for the historical acquisition costs.

The following table presents the reconciliation of underwriting income excluding purchase accounting adjustments, as used throughout this report (As If), to Pro Forma results calculated in accordance with SEC guidance under Article 11:


												Purchase Accounting adjustments⁽¹⁾
	Legacy ACE			Legacy Chubb		Accounting policy alignment ⁽²⁾			As If*			Acquisition expense elimination			UPR intangible amortization		SEC Pro Forma 2015 ⁽³⁾
Q1 2015
Net premiums written	$	4,076		$	3,106	$	34		$	7,216							$	7,216
Net premiums earned		3,927			3,105		5			7,037								7,037
Losses and loss expenses		2,122			1,920		(1	)		4,041								4,041
Policy benefits		142			—		—			142								142
(Gains) losses from fair value changes in separate account assets		(11	)		—		—			(11	)							(11	)
Policy acquisition costs		707			626		64			1,397			(543	)				854
Amortization of acquired UPR intangible		—			—		—			—						674		674
Administrative expenses		554			354		(33	)		875								875

Underwriting income (loss)	$	413		$	205	$	(25	)	$	593							$	462

(1)	As if acquisition occurred on January 1, 2015.

(2)	Refer to the closing Form 8-K/A filed on March 24, 2016 for further information on these adjustments.

(3)	Based on SEC guidance under Article 11.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 As If company results are inclusive of the first 14 days of January 2016.


Reconciliation Non-GAAP 5		Page 44

Chubb Limited

Non-GAAP Financial Measures - 6

(in millions of U.S. dollars)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

The following presents the reconciliation of Q2 2016 As If underwriting income excluding purchase accounting adjustments to Q2 2016 underwriting results.


				Purchase Accounting adjustments ⁽¹⁾
	Total Consolidated As If* (Excluding Purchase Accounting)			Acquisition expense elimination			UPR intangible amortization		Total Consolidated
Q2 2016
Net premiums written	$	7,639							$	7,639
Net premiums earned		7,405								7,405
Losses and loss expenses		4,256								4,256
Policy benefits		146								146
(Gains) losses from fair value changes in separate account assets		(3	)							(3	)
Policy acquisition costs		1,494			(459	)				1,035
Amortization of acquired UPR intangible		—						525		525
Administrative expenses		829								829

Adjusted underwriting income (loss)	$	683							$	617	⁽¹⁾

(1)

Refer to page 9 for a reconciliation of underwriting income to net income. Purchase accounting adjustments include the amortization of the fair value adjustment related to unearned premiums at the date of purchase amortized over the remaining coverage period. In addition, as part of purchase accounting, we recognize a benefit (Acquisition expense elimination) associated with the acquired unearned premiums being recognized over the remaining coverage period with no expense for the historical acquisition costs.


												Purchase Accounting adjustments⁽¹⁾
	Legacy ACE			Legacy Chubb		Accounting policy alignment ⁽²⁾			As If*			Acquisition expense elimination			UPR intangible amortization		SEC Pro Forma 2015 ⁽³⁾
Q2 2015
Net premiums written	$	4,784		$	3,309	$	15		$	8,108							$	8,108
Net premiums earned		4,360			3,133		10			7,503								7,503
Losses and loss expenses		2,419			1,707		(8	)		4,118								4,118
Policy benefits		153			—		—			153								153
(Gains) losses from fair value changes in separate account assets		(6	)		—		—			(6	)							(6	)
Policy acquisition costs		727			652		77			1,456			(395	)				1,061
Amortization of acquired UPR intangible		—			—		—			—						489		489
Administrative expenses		578			346		(50	)		874								874

Underwriting income (loss)	$	489		$	428	$	(9	)	$	908							$	814

(1)

As if acquisition occurred on January 1, 2015. Purchase accounting adjustments include the amortization of the fair value adjustment related to unearned premiums at the date of purchase amortized over the remaining coverage period. In addition, as part of purchase accounting, we recognize a benefit (Acquisition expense elimination) associated with the acquired unearned premiums being recognized over the remaining coverage period with no expense for the historical acquisition costs.

(2)	Refer to the closing Form 8-K/A filed on March 24, 2016 for further information on these adjustments.

(3)	Based on SEC guidance under Article 11.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments.


Reconciliation Non-GAAP 6		Page 45

Chubb Limited

Non-GAAP Financial Measures - 7

(in millions of U.S. dollars)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

The following presents the reconciliation of YTD 2016 As If underwriting income excluding purchase accounting adjustments and including 14 days prior to the acquisition (14 Day Stub Period) to YTD 2016 as reported underwriting results.


			Purchase Accounting adjustments ⁽¹⁾					14 Day Stub Period
	Total Consolidated As If* (Excluding Purchase Accounting)		Acquisition expense elimination			UPR intangible amortization		North America Commercial P&C Insurance		North America Personal P&C Insurance		Overseas General Insurance		Global Reinsurance		Life Insurance		Corporate			Total Consolidated
Q2 YTD 2016
Net premiums written	$	14,489						$	519	$	100	$	215	$	20	$	1	$	—		$	13,634
Net premiums earned		14,393							208		109		72		—		2		—			14,002
Losses and loss expenses		8,152							127		53		42		—		—		—			7,930
Policy benefits		272							—		—		—		—		—		—			272
(Gains) losses from fair value changes in separate account assets		—							—		—		—		—		—		—			—
Policy acquisition costs		2,904		(965	)				33		14		13		—		1		—			1,878
Amortization of acquired UPR intangible		—					1,095		—		—		—		—		—		—			1,095
Administrative expenses		1,665							35		13		12		—		1		3			1,601

Adjusted underwriting income (loss)	$	1,400						$	13	$	29	$	5	$	—	$	—	$	(3	)	$	1,226	⁽¹⁾

(1)

Refer to page 11 for a reconciliation of underwriting income to net income. Purchase accounting adjustments include the amortization of the fair value adjustment related to unearned premiums at the date of purchase amortized over the remaining coverage period. In addition, as part of purchase accounting, we recognize a benefit (Acquisition expense elimination) associated with the acquired unearned premiums being recognized over the remaining coverage period with no expense for the historical acquisition costs.

The following table presents the reconciliation of underwriting income excluding purchase accounting adjustments, as used throughout this report (“As If”), to Pro Forma results calculated in accordance with SEC guidance under Article 11:


												Purchase Accounting adjustments⁽¹⁾
	Legacy ACE			Legacy Chubb		Accounting policy alignment ⁽²⁾			As If*			Acquisition expense elimination			UPR intangible amortization		SEC Pro Forma 2015 ⁽³⁾
Six months ended June 30, 2015
Net premiums written	$	8,860		$	6,415	$	49		$	15,324							$	15,324
Net premiums earned		8,287			6,238		15			14,540								14,540
Losses and loss expenses		4,541			3,627		(9	)		8,159								8,159
Policy benefits		295			—		—			295								295
(Gains) losses from fair value changes in separate account assets		(17	)		—		—			(17	)							(17	)
Policy acquisition costs		1,434			1,278		141			2,853			(938	)				1,915
Amortization of acquired UPR intangible		—			—		—			—						1,163		1,163
Administrative expenses		1,132			700		(83	)		1,749								1,749

Underwriting income (loss)	$	902		$	633	$	(34	)	$	1,501							$	1,276

(1)

(2)	Refer to the closing Form 8-K/A filed on March 24, 2016 for further information on these adjustments.

(3)	Based on SEC guidance under Article 11.

*	2016 As If results: The 2016 and 2015 As If company underwriting results do not include any impact from purchase accounting adjustments. The Q1 2016 and YTD 2016 As If company results are inclusive of the first 14 days of January 2016.


Reconciliation Non-GAAP 7		Page 46

Chubb Limited

Non-GAAP Financial Measures - 8

(in millions of U.S. dollars)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

The following tables present the reconciliation of combined company underwriting income (“As If”) used throughout this report to Pro Forma results calculated in accordance with SEC guidance under Article 11:


										Purchase Accounting adjustments⁽¹⁾
	Legacy ACE		Legacy Chubb		Accounting policy alignment ⁽²⁾			As If*		Acquisition expense elimination			UPR intangible amortization		SEC Pro Forma 2015 ⁽³⁾
Q3 2015
Net premiums written	$	4,709	$	3,171	$	10		$	7,890						$	7,890
Net premiums earned		4,719		3,166		18			7,903							7,903
Losses and loss expenses		2,647		1,633		19			4,299							4,299
Policy benefits		89		—		—			89							89
(Gains) losses from fair value changes in separate account assets		49		—		—			49							49
Policy acquisition costs		771		663		71			1,505		(247	)				1,258
Amortization of acquired UPR intangible		—		—		—			—					288		288
Administrative expenses		568		345		(57	)		856							856

Underwriting income (loss)	$	595	$	525	$	(15	)	$	1,105						$	1,064


										Purchase Accounting adjustments ⁽¹⁾
	Legacy ACE		Legacy Chubb		Accounting policy alignment ⁽²⁾			As If*		Acquisition expense elimination			UPR intangible amortization		SEC Pro Forma 2015 ⁽³⁾
Nine months ended September 30, 2015
Net premiums written	$	13,569	$	9,586	$	59		$	23,214						$	23,214
Net premiums earned		13,006		9,404		33			22,443							22,443
Losses and loss expenses		7,188		5,260		10			12,458							12,458
Policy benefits		384		—		—			384							384
(Gains) losses from fair value changes in separate account assets		32		—		—			32							32
Policy acquisition costs		2,205		1,941		212			4,358		(1,185	)				3,173
Amortization of acquired UPR intangible		—		—		—			—					1,451		1,451
Administrative expenses		1,700		1,045		(140	)		2,605							2,605

Underwriting income (loss)	$	1,497	$	1,158	$	(49	)	$	2,606						$	2,340

(1)

(2)	Refer to the closing Form 8-K/A filed on March 24, 2016 for further information on these adjustments.

(3)	Based on SEC guidance under Article 11.

*	2015 As If results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results.


Reconciliation Non-GAAP 8		Page 47

Chubb Limited

Non-GAAP Financial Measures - 9

(in millions of U.S. dollars)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)


												Purchase Accounting adjustments⁽¹⁾
	Legacy ACE			Legacy Chubb		Accounting policy alignment ⁽²⁾			As If*			Acquisition expense elimination			UPR intangible amortization		SEC Pro Forma 2015 ⁽³⁾
Q4 2015
Net premiums written	$	4,144		$	3,047	$	18		$	7,209							$	7,209
Net premiums earned		4,207			3,114		22			7,343								7,343
Losses and loss expenses		2,305			1,693		8			4,006								4,006
Policy benefits		159			—		—			159								159
(Gains) losses from fair value changes in separate account assets		(13	)		—		—			(13	)							(13	)
Policy acquisition costs		736			652		80			1,468			(99	)				1,369
Amortization of acquired UPR intangible		—			—		—			—						99		99
Administrative expenses		570			334		(44	)		860								860

Underwriting income (loss)	$	450		$	435	$	(22	)	$	863							$	863


										Purchase Accounting adjustments⁽¹⁾
	Legacy ACE		Legacy Chubb		Accounting policy alignment ⁽²⁾			As If*		Acquisition expense elimination			UPR intangible amortization		SEC Pro Forma 2015 ⁽³⁾
Full Year 2015
Net premiums written	$	17,713	$	12,633	$	77		$	30,423						$	30,423
Net premiums earned		17,213		12,518		55			29,786							29,786
Losses and loss expenses		9,493		6,953		18			16,464							16,464
Policy benefits		543		—		—			543							543
(Gains) losses from fair value changes in separate account assets		19		—		—			19							19
Policy acquisition costs		2,941		2,593		292			5,826		(1,284	)				4,542
Amortization of acquired UPR intangible		—		—		—			—					1,550		1,550
Administrative expenses		2,270		1,379		(184	)		3,465							3,465

Underwriting income (loss)	$	1,947	$	1,593	$	(71	)	$	3,469						$	3,203

(1)

(2)	Refer to the closing Form 8-K/A filed on March 24, 2016 for further information on these adjustments.

(3)	Based on SEC guidance under Article 11.

*	2015 As If results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results.


Reconciliation Non-GAAP 9		Page 48

Chubb Limited

Glossary

Chubb Limited Consolidated comprises all segments including Corporate.

Book value per common share: Shareholders’ equity divided by the shares outstanding.

Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business.

Operating effective tax rate: Income tax expense excluding tax expense (benefit) on adjusted net realized gains (losses) divided by income excluding adjusted net realized gains (losses) before tax.

Tangible book value per common share: Shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.

Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.

Average yield on invested assets: Net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.

Tangible capital: Total capitalization less goodwill and other intangible assets.

Total capitalization: Short-term debt, long-term debt, trust preferreds, and shareholders’ equity.

NM: Not meaningful.

Chubb integration and related expenses: Chubb integration expenses comprise legal and professional fees and all other costs directly related to the integration activities of the Chubb acquisition including the pre-acquisition interest expense on the $5.3 billion senior notes issued in November 2015. The pre-acquisition interest expense is included in operating income subsequent to January 14th, 2016, the date of the acquisition close. Chubb integration expenses are incurred by the overall company and are therefore included in Corporate. These costs are not related to the on-going business activities of the segments and are therefore excluded from our definition of segment income.


Glossary		Page 49