CHUBB LTD, 10-Q filed on 8/5/2016
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2016
Jul. 22, 2016
Entity Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
CB 
 
Entity Registrant Name
Chubb Ltd 
 
Entity Central Index Key
0000896159 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Common Shares Outstanding
 
465,079,457 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Investments [Abstract]
 
 
Fixed maturities available for sale, at fair value (amortized cost - $77,436 and $43,149) (includes hybrid financial instruments of $2 and $31)
$ 79,951 
$ 43,587 
Fixed maturities held to maturity, at amortized cost (fair value – $11,581 and $8,552)
11,090 
8,430 
Equity securities, at fair value (cost – $703 and $441)
787 
497 
Short-term investments, at fair value and amortized cost
3,631 
10,446 
Other investments (cost – $4,152 and $2,993)
4,387 
3,291 
Total investments
99,846 
66,251 
Cash
1,011 1 2
1,775 1 3
Securities lending collateral
1,142 
1,046 
Accrued investment income
919 
513 
Insurance and reinsurance balances receivable
8,532 
5,323 
Reinsurance recoverable on losses and loss expenses
13,235 
11,386 
Reinsurance recoverable on policy benefits
199 
187 
Deferred policy acquisition costs
3,948 
2,873 
Value of business acquired
381 
395 
Goodwill
15,525 
4,796 
Other intangible assets
7,398 
887 
Prepaid reinsurance premiums
2,464 
2,082 
Deferred tax assets
0 
318 
Investments in partially-owned insurance companies
658 
653 
Other assets
4,945 
3,821 
Total assets
160,203 
102,306 
Liabilities
 
 
Unpaid losses and loss expenses
60,819 
37,303 
Unearned premiums
15,229 
8,439 
Future policy benefits
4,975 
4,807 
Insurance and reinsurance balances payable
4,944 
4,270 
Securities lending payable
1,143 
1,047 
Accounts payable, accrued expenses, and other liabilities
9,614 
6,205 
Deferred tax liabilities
1,409 
0 
Short-term debt
500 
0 
Long-term debt
12,631 
9,389 
Trust preferred securities
308 
307 
Repurchase Agreements
1,405 
1,404 
Total liabilities
112,977 
73,171 
Commitments and contingencies
   
   
Shareholders’ equity
 
 
Common Shares (CHF 24.15 par value; 479,783,864 and 342,832,412 shares issued; 465,012,980 and 324,563,441 shares outstanding)
11,121 
7,833 
Common Shares in treasury (14,770,884 and 18,268,971 shares)
(1,577)
(1,922)
Additional paid-in capital
15,858 
4,481 
Retained earnings
20,643 
19,478 
Accumulated other comprehensive income (loss) (AOCI)
1,181 
(735)
Total shareholders’ equity
47,226 
29,135 
Total liabilities and shareholders’ equity
$ 160,203 
$ 102,306 
Consolidated Balance Sheets (Parenthetical)
In Millions, except Share data, unless otherwise specified
Jun. 30, 2016
USD ($)
Jun. 30, 2016
CHF
Dec. 31, 2015
USD ($)
Dec. 31, 2015
CHF
Statement of Financial Position [Abstract]
 
 
 
 
Available for sale, at amortized cost
$ 77,436 
 
$ 43,149 
 
Fixed maturities available for sale, hybrid financial instruments
2 
 
31 
 
Held to maturity, at Fair Value
11,581 
 
8,552 
 
Equity securities, at cost
703 
 
441 
 
Other investments, cost
$ 4,152 
 
$ 2,993 
 
Common Shares, par value
 
 24.15 
 
 24.15 
Common Shares, shares issued
479,783,864 
479,783,864 
342,832,412 
342,832,412 
Common Shares, shares outstanding
465,012,980 
465,012,980 
324,563,441 
324,563,441 
Common Shares in treasury, shares
14,770,884 
14,770,884 
18,268,971 
18,268,971 
Consolidated Statements Of Operations and Comprehensive Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Revenues
 
 
 
 
Net premiums written
$ 7,639 
$ 4,784 
$ 13,634 
$ 8,860 
Decrease (increase) in unearned premiums
(234)
(424)
368 
(573)
Net premiums earned
7,405 
4,360 
14,002 
8,287 
Net investment income
708 
562 
1,382 
1,113 
Net realized gains (losses):
 
 
 
 
Other-than-temporary impairment (OTTI) losses gross
(16)
(14)
(87)
(27)
Portion of OTTI losses recognized in other comprehensive income (OCI)
0 
6 
8 
6 
Net OTTI losses recognized in income
(16)
(8)
(79)
(21)
Net realized gains (losses) excluding OTTI losses
(200)
134 
(531)
58 
Total net realized gains (losses) (includes $2, $34, $(150), and $31 reclassified from AOCI)
(216)
126 
(610)
37 
Total revenues
7,897 
5,048 
14,774 
9,437 
Expenses
 
 
 
 
Losses and loss expenses
4,254 
2,417 
7,928 
4,539 
Policy benefits
146 
153 
272 
295 
Policy acquisition costs
1,560 
727 
2,973 
1,434 
Administrative expenses
829 
578 
1,601 
1,132 
Interest expense
153 
71 
299 
139 
Other (income) expense
(29)
(38)
(1)
(73)
Amortization of purchased intangibles
5 
55 
12 
85 
Chubb integration expenses
98 
0 
246 
0 
Total expenses
7,016 
3,963 
13,330 
7,551 
Income before income tax
881 
1,085 
1,444 
1,886 
Income tax expense (includes $6, $10, $5 and $14 on reclassified unrealized gains and losses)
155 
143 
279 
263 
Net income
726 
942 
1,165 
1,623 
Other comprehensive income (loss)
 
 
 
 
Unrealized appreciation (depreciation)
947 
(816)
1,852 
(375)
Reclassification adjustment for net realized (gains) losses included in net income
(2)
(34)
150 
(31)
Unrealized appreciation (Depreciation) after reclassification adjustment
945 
(850)
2,002 
(406)
Change in:
 
 
 
 
Cumulative translation adjustment
81 
136 
393 
(285)
Pension liability
1 
(6)
3 
7 
Other comprehensive income (loss), before income tax
1,027 
(720)
2,398 
(684)
Income tax (expense) benefit related to OCI items
(213)
175 
(482)
100 
Other comprehensive income (loss)
814 
(545)
1,916 
(584)
Comprehensive income
$ 1,540 
$ 397 
$ 3,081 
$ 1,039 
Earnings per share
 
 
 
 
Basic earnings per share
$ 1.55 
$ 2.89 
$ 2.55 
$ 4.97 
Diluted earnings per share
$ 1.54 
$ 2.86 
$ 2.53 
$ 4.91 
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Total net realized gains (losses) reclassified from AOCI
$ 2 
$ 34 
$ (150)
$ 31 
Income tax expense on reclassified unrealized gains and loses
$ 6 
$ 10 
$ 5 
$ 14 
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions
Total
Common Stock [Member]
Common shares in treasury [Member]
Additional Paid-in Capital [Member]
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Retained Earnings [Member]
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Cumulative Translation Adjustment [Member]
Pension Liability Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Balance - beginning of period at Dec. 31, 2014
 
$ 8,055 
$ (1,448)
$ 5,145 
 
$ 16,644 
$ 1,851 
$ (581)
$ (79)
 
Dividends declared on Common Shares – par value reduction
 
(222)
 
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
183 
(163)
0 
 
 
 
 
 
Shares Issued for Chubb Corp Acquisition
 
0 
 
 
0 
 
 
 
 
 
Common Shares repurchased
 
 
(734)
 
 
 
 
 
 
 
Exercise of stock options
 
 
 
(29)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
111 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
(217)
 
 
 
 
 
 
Net income
1,623 
 
 
 
 
1,623 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
217 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
(217)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $(477) and $81
 
 
 
 
 
 
(294)
 
 
 
Amounts reclassified from AOCI, net of income tax benefit of $5 and $14
 
 
 
 
 
 
(17)
 
 
 
Change in period, net of income tax benefit (expense) of $(472) and $95
 
 
 
 
 
 
(311)
 
 
 
Change in period, net of income tax benefit (expense) of $(11) and $7
 
 
 
 
 
 
 
(278)
 
 
Change in period, net of income tax benefit (expense) of $1 and $(2)
 
 
 
 
 
 
 
 
5 
 
Balance - end of period at Jun. 30, 2015
29,555 
7,833 
(1,999)
4,847 
 
18,267 
1,540 
(859)
(74)
607 
Balance - beginning of period at Dec. 31, 2015
29,135 
7,833 
(1,922)
4,481 
 
19,478 
874 
(1,539)
(70)
 
Dividends declared on Common Shares – par value reduction
 
0 
 
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
345 
(358)
323 
 
 
 
 
 
Shares Issued for Chubb Corp Acquisition
 
3,288 
 
 
11,916 
 
 
 
 
 
Common Shares repurchased
 
 
0 
 
 
 
 
 
 
 
Exercise of stock options
 
 
 
(37)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
170 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
(637)
 
 
 
 
 
 
Net income
1,165 
 
 
 
 
1,165 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
637 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
(637)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $(477) and $81
 
 
 
 
 
 
1,375 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit of $5 and $14
 
 
 
 
 
 
155 
 
 
 
Change in period, net of income tax benefit (expense) of $(472) and $95
 
 
 
 
 
 
1,530 
 
 
 
Change in period, net of income tax benefit (expense) of $(11) and $7
 
 
 
 
 
 
 
382 
 
 
Change in period, net of income tax benefit (expense) of $1 and $(2)
 
 
 
 
 
 
 
 
4 
 
Balance - end of period at Jun. 30, 2016
$ 47,226 
$ 11,121 
$ (1,577)
$ 15,858 
 
$ 20,643 
$ 2,404 
$ (1,157)
$ (66)
$ 1,181 
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Statement Consolidated Statements Of Shareholders Equity [Abstract]
 
 
Change in year, before reclassification from AOCI, net of income tax benefit(expense)
$ (477)
$ 81 
Income tax benefit (expense) from reclassification of unrealized gains
5 
14 
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit
(472)
95 
Cumulative translation adjustment, Change in period, income tax(expense) benefit
(11)
7 
Net income
1,165 
1,623 
Pension liability adjustment, Change in period, income tax (expense) benefit
$ 1 
$ (2)
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Statement of Cash Flows [Abstract]
 
 
Net income
$ 1,165 
$ 1,623 
Adjustments to reconcile net income to net cash flows from operating activities
 
 
Net realized (gains) losses
610 
(37)
Amortization of premiums/discounts on fixed maturities
376 
71 
Amortization of UPR related to the Chubb Corp acquisition
1,095 
0 
Deferred income taxes
48 
108 
Unpaid losses and loss expenses
330 
(87)
Unearned premiums
(382)
420 
Future policy benefits
106 
114 
Insurance and reinsurance balances payable
193 
532 
Accounts payable, accrued expenses, and other liabilities
18 
48 
Income taxes payable
67 
(120)
Insurance and reinsurance balances receivable
(238)
(332)
Reinsurance recoverable on losses and loss expenses
(17)
55 
Reinsurance recoverable on policy benefits
(11)
16 
Deferred policy acquisition costs
(1,042)
(236)
Prepaid reinsurance premiums
12 
(261)
Other
(177)
(23)
Net cash flows from operating activities
2,153 
1,891 
Cash flows from investing activities
 
 
Purchases of fixed maturities available for sale
(17,077)
(9,179)
Purchases of to be announced mortgage-backed securities
0 
(31)
Purchases of fixed maturities held to maturity
(121)
(24)
Purchases of equity securities
(78)
(70)
Sales of fixed maturities available for sale
11,868 
3,611 
Sales of to be announced mortgage-backed securities
0 
31 
Sales of equity securities
932 
102 
Maturities and redemptions of fixed maturities available for sale
3,910 
3,691 
Maturities and redemptions of fixed maturities held to maturity
443 
470 
Net change in short-term investments
11,711 
228 
Net derivative instruments settlements
(93)
(33)
Acquisition of subsidiaries (net of cash acquired of $71 and $620)
(14,248)
255 
Other
81 
(71)
Net cash flows used for investing activities
(2,672)
(1,020)
Cash flows from financing activities
 
 
Dividends paid on Common Shares
(530)
(427)
Common Shares repurchased
0 
(750)
Proceeds from issuance of long-term debt
0 
800 
Proceeds from issuance of repurchase agreements
904 
1,327 
Repayment of long-term debt
0 
(450)
Repayment of repurchase agreements
(902)
(1,327)
Proceeds from share-based compensation plans, including windfall tax benefits
92 
46 
Policyholder contract deposits
274 
235 
Policyholder contract withdrawals
(103)
(107)
Other
(4)
(6)
Net cash flows used for financing activities
(269)
(659)
Effect of foreign currency rate changes on cash and cash equivalents
24 
(77)
Net (decrease) increase in cash
(764)
135 
Cash – beginning of period
1,775 1 2
655 3
Cash – end of period
1,011 2 4
790 3
Supplemental cash flow information
 
 
Taxes paid
259 
263 
Interest paid
$ 319 
$ 127 
Consolidated Statements of Cash Flows (Parentheticals) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Statement of Cash Flows [Abstract]
 
 
Cash Acquired from Acquisition
$ 71 
$ 620 
General
General
General

a) Basis of presentation
On January 14, 2016, we completed the acquisition of The Chubb Corporation (Chubb Corp), creating a global leader in property and casualty insurance. We have changed our name from ACE Limited to Chubb Limited and plan to adopt the Chubb name globally, although some subsidiaries may continue to use ACE as a part of their name.

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Effective the first quarter of 2016, our results are reported through 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. This reflects our significantly larger and expanded operations subsequent to our acquisition of Chubb Corp. We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of our run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years, and certain run-off exposures. Prior period amounts of Chubb Limited (i.e., excluding the historical results of Chubb Corp) contained in this report have been adjusted to conform to the new segment presentation. Refer to Note 12 for additional information.

The interim unaudited consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated.

The results of operations and cash flows of Chubb Corp are included from the acquisition date forward (i.e., after January 14, 2016). The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2015 Form 10-K.

b) Accounting guidance adopted in 2016

Presentation of Debt Issuance Costs
In April 2015, the Financial Accounting Standard Board (FASB) issued new guidance related to the accounting for debt issuance costs.  The new guidance requires presentation of debt issuance costs in the Consolidated balance sheets as a reduction of the carrying amount of the related debt liability instead of as a deferred charge. We retrospectively adopted this guidance effective January 1, 2016 and reclassified $60 million of debt issuance costs from Other assets to Long term debt ($58 million) and Trust preferred securities ($2 million) as of December 31, 2015.
 
c) Accounting guidance not yet adopted

Revenue from Contracts with Customers
In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our claims management and risk control services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The standard is effective for us in the first quarter of 2018 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on our financial condition or results of operations.

Short-Duration Contracts
In May 2015, the FASB issued guidance that requires additional disclosures for short-duration insurance contracts. New disclosure will be required to provide more information about initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The guidance is effective for us beginning with our 2016 annual reporting on Form 10-K. The guidance requires a change in disclosure only and adoption of this guidance will not have an impact on our financial condition or results of operations.

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB issued guidance that affects the recognition, measurement, presentation, and disclosure of financial instruments. The guidance requires equity investments to be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) and an assessment of a valuation allowance on deferred tax assets related to unrealized losses of available for sale debt securities in combination with other deferred tax assets. The standard is effective for us in the first quarter of 2018. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations.

Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued guidance on the accounting for credit losses of financial instruments that are measured at amortized cost, including held to maturity securities and reinsurance recoverables, by applying an approach based on the current expected credit losses (CECL). The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset in order to present the net carrying value at the amount expected to be collected on the financial asset on the consolidated balance sheet.

The guidance also amends the current available for sale (AFS) security other-than-temporary impairment model by requiring an estimate of the expected credit loss (ECL) only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. The AFS debt security model will also require the use of a valuation allowance.

The standard is effective for us in the first quarter of 2020 with early adoption permitted in the first quarter of 2019. We will be able to assess the impact of adopting this guidance on our financial condition and results of operations closer to the date of adoption.

Stock Compensation
In March 2016, the FASB issued guidance which requires recognition of the excess tax benefits or deficiencies of awards through net income rather than through additional paid in capital. Additionally, entities can elect to account for forfeitures related to share-based payments either as they occur or through an estimation method. If elected, the change to recognize forfeitures as they occur would be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to retained earnings. The updated guidance is effective for us in the first quarter of 2017 with early adoption permitted. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations.
Acquisitions
Acquisitions
Acquisitions

The Chubb Corporation
On January 14, 2016, we completed the acquisition of Chubb Corp, a leading provider of middle-market commercial, specialty, surety, and personal insurance for $29.5 billion, comprising $14.3 billion in cash and $15.2 billion in newly-issued stock, based on the Chubb Limited (formerly ACE Limited) closing price on the acquisition date. In addition, we assumed outstanding equity awards to employees and directors with an attributed value of approximately $323 million. The total consideration, including the assumption of equity awards, was $29.8 billion. We financed the cash portion of the transaction through a combination of $9.0 billion sourced from various Chubb Limited and Chubb Corp companies plus $5.3 billion of senior notes, which were issued in November 2015. Refer to Note 7 for additional information on the senior notes.
   
Upon completion of the merger, each Chubb Corp common share (other than shares held by certain legacy Chubb Corp employee benefit plans) was canceled and converted, in accordance with the procedures set forth in the merger agreement, into the right to receive (i) 0.6019 of a Chubb Limited common share and (ii) $62.93 in cash. In addition, replacement equity awards were issued by Chubb Limited to the holders of Chubb Corp's outstanding equity awards (stock options, restricted stock units, deferred stock units, deferred unit obligations, and performance units).

We believe the Chubb Corp acquisition is highly complementary to our existing business lines, distribution channels, customer segments, and underwriting skills. The Chubb Corp has a substantial presence in the U.S. with a broad variety of coverages serving large corporate and upper middle market accounts, middle market and small commercial accounts, and personal lines. Together we are one of the largest commercial insurers in the U.S. Internationally, where legacy ACE is a truly global insurer with extensive presence in 54 countries, Chubb Corp's operations in 25 markets are expected to add to our presence and capabilities and position us to better pursue important market opportunities globally. The combined company is a leader in a number of global specialty and traditional products such as professional lines, risk management, workers' compensation, accident and health (A&H), and other property and general casualty lines.
The table below details the purchase consideration and preliminary allocation of assets acquired and liabilities assumed. During the second quarter of 2016, we reassessed certain components of our preliminary estimates of assets acquired and liabilities assumed, including the net realizable value for Reinsurance recoverables on losses and loss expenses and Insurance and reinsurance balances receivables and certain components of the Deferred tax liabilities, which resulted in an adjustment to our preliminary estimates that increased Goodwill by $81 million. These estimates remain preliminary and are subject to adjustment. While they are not expected to be materially different than those shown, any material adjustments to the estimates will be reflected, retroactively, as of the date of the acquisition.
 
 
(in millions, except per share data)
 
Purchase consideration
 
Chubb Limited common shares
 
Chubb Corp common shares outstanding
228

Per share exchange ratio
0.6019

Common shares issued by Chubb Limited
137

Common share price of Chubb Limited at January 14, 2016
$
111.02

Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp
$
15,204

Cash consideration
 
Chubb Corp common shares outstanding
228

Agreed cash price per share paid to common shareholders of Chubb Corp
$
62.93

Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp
$
14,319

Stock-based awards
 
Fair value of equity awards issued (1)
$
323

Fair value of purchase consideration
$
29,846

Preliminary estimate of assets acquired and (liabilities) assumed
 
Cash
$
71

Investments
42,967

Accrued investment income
337

Insurance and reinsurance balances receivable
2,981

Reinsurance recoverable on losses and loss expenses
1,650

Indefinite lived intangible assets
2,860

Finite lived intangible assets
4,795

Prepaid reinsurance premiums
280

Other assets
863

Unpaid losses and loss expenses
(22,906
)
Unearned premium
(7,033
)
Insurance and reinsurance balances payable
(511
)
Accounts payable, accrued expenses, and other liabilities
(1,935
)
Deferred tax liabilities
(1,334
)
Long-term debt
(3,765
)
Total identifiable net assets acquired
19,320

Goodwill
10,526

Purchase price
$
29,846

(1) 
The estimated fair value of the replacement equity awards was $525 million, of which $323 million was attributed to service periods prior to the acquisition and was included in the purchase consideration. Refer to Note 10 for further information on these replacement equity awards.
Direct costs related to the Chubb Corp acquisition were expensed as incurred. Chubb integration expenses were $98 million and $246 million for the three and six months ended June 30, 2016, respectively, and include all internal and external costs directly related to the integration activities of the Chubb Corp acquisition, primarily personnel-related expenses, including severance and employee retention and relocation; consulting fees; and advisor fees.
We recognized goodwill of $10.5 billion, attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes, indefinite lived intangible assets of $2.9 billion and finite lived intangible assets of $4.8 billion, which will be amortized over their estimated useful lives, ranging from one to 24 years. Refer to Note 6 for additional information.

The following table summarizes the results of the acquired Chubb Corp operations since the acquisition date that have been included within our Consolidated statements of income:
(in millions of U.S. dollars)
Three Months Ended June 30, 2016

 
January 14, 2016 to June 30, 2016

Total revenues
$
2,745

 
$
5,232

Net income
$
326

 
$
581


The following table provides supplemental unaudited pro forma consolidated information for the three and six months ended June 30, 2016 and 2015, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars, except per share data)
2016

 
2015

 
2016

 
2015

Total revenues
$
7,915

 
$
8,378

 
$
15,237

 
$
16,073

Net income
$
712

 
$
1,199

 
$
1,246

 
$
2,158

Earnings per share
 
 
 
 
 
 
 
Basic earnings per share
$
1.52

 
$
2.57

 
$
2.67

 
$
4.62

Diluted earnings per share
$
1.51

 
$
2.55

 
$
2.65

 
$
4.57



Prior year acquisition

Fireman's Fund Insurance Company High Net Worth Personal Lines Insurance Business in the U.S. (Fireman's Fund)
On April 1, 2015, we acquired the Fireman's Fund Insurance Company high net worth personal lines insurance business in the U.S., which included the renewal rights for new and existing business and reinsurance of all existing reserves for $365 million in cash. We acquired assets with a fair value of $753 million, consisting primarily of cash of $629 million and insurance and reinsurance balances receivable of $124 million. We assumed liabilities with a fair value of $863 million, consisting primarily of unpaid losses and loss expenses of $417 million and unearned premiums of $428 million. This acquisition generated $196 million of goodwill, attributable to expected growth and profitability, all of which is expected to be deductible for income tax purposes, and other intangible assets of $278 million, primarily related to renewal rights, based on Chubb’s purchase price allocation. During the third quarter of 2015, we recorded an adjustment to the valuation of our other intangible assets. The acquisition expanded our position in the high net worth personal lines insurers in the U.S. The Fireman’s Fund business was integrated into our existing high net worth personal lines business, offering a broad range of coverage including homeowners, automobile, umbrella and excess liability, collectibles, and yachts. Goodwill and other intangible assets arising from this acquisition are included in our North America Personal P&C Insurance segment.

The consolidated financial statements include results of acquired businesses from the acquisition dates.
Investments
Investments
Investments

a) Fixed maturities
 
June 30, 2016
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,595

 
$
103

 
$
—

 
$
2,698

 
$
—

Foreign
21,633

 
916

 
(69
)
 
22,480

 
(13
)
Corporate securities
21,714

 
846

 
(125
)
 
22,435

 
(16
)
Mortgage-backed securities
12,369

 
400

 
(5
)
 
12,764

 
(1
)
States, municipalities, and political subdivisions
19,125

 
454

 
(5
)
 
19,574

 
—

 
$
77,436

 
$
2,719

 
$
(204
)
 
$
79,951

 
$
(30
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
686

 
$
30

 
$
—

 
$
716

 
$
—

Foreign
730

 
44

 
(1
)
 
773

 
—

Corporate securities
2,882

 
137

 
(4
)
 
3,015

 
—

Mortgage-backed securities
1,600

 
77

 
(1
)
 
1,676

 
—

States, municipalities, and political subdivisions
5,192

 
209

 
—

 
5,401

 
—

 
$
11,090

 
$
497

 
$
(6
)
 
$
11,581

 
$
—


December 31, 2015
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,481

 
$
52

 
$
(5
)
 
$
2,528

 
$
—

Foreign
13,190

 
468

 
(213
)
 
13,445

 
(13
)
Corporate securities
15,028

 
355

 
(454
)
 
14,929

 
(28
)
Mortgage-backed securities
9,827

 
183

 
(52
)
 
9,958

 
(1
)
States, municipalities, and political subdivisions
2,623

 
110

 
(6
)
 
2,727

 
—

 
$
43,149

 
$
1,168

 
$
(730
)
 
$
43,587

 
$
(42
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
733

 
$
13

 
$
(1
)
 
$
745

 
$
—

Foreign
763

 
30

 
(8
)
 
785

 
—

Corporate securities
3,054

 
57

 
(55
)
 
3,056

 
—

Mortgage-backed securities
1,707

 
38

 
(2
)
 
1,743

 
—

States, municipalities, and political subdivisions
2,173

 
52

 
(2
)
 
2,223

 
—

 
$
8,430

 
$
190

 
$
(68
)
 
$
8,552

 
$
—



As discussed in Note 3 c), if a credit loss is incurred on an impaired fixed maturity, an OTTI is considered to have occurred and the portion of the impairment not related to credit losses (non-credit OTTI) is recognized in OCI. Included in the “OTTI Recognized in AOCI” columns above are the cumulative amounts of non-credit OTTI recognized in OCI adjusted for subsequent sales, maturities, and redemptions. OTTI recognized in AOCI does not include the impact of subsequent changes in fair value of the related securities. In periods subsequent to a recognition of OTTI in OCI, changes in the fair value of the related fixed maturities are reflected in Unrealized appreciation (depreciation) in the Consolidated statement of shareholders’ equity. For the three and six months ended June 30, 2016, $21 million and $44 million, respectively, of net unrealized appreciation related to such securities is included in OCI. For the three and six months ended June 30, 2015, nil and $4 million, respectively, of net unrealized appreciation related to such securities is included in OCI. At June 30, 2016 and December 31, 2015, AOCI included cumulative net unrealized depreciation of $3 million and $35 million, respectively, related to securities remaining in the investment portfolio for which a non-credit OTTI was recognized.

Mortgage-backed securities (MBS) issued by U.S. government agencies are combined with all other to be announced mortgage derivatives held (refer to Note 8 c) (iv)) and are included in the category, “Mortgage-backed securities.” Approximately 79 percent and 81 percent of the total mortgage-backed securities at June 30, 2016 and December 31, 2015, respectively, are represented by investments in U.S. government agency bonds. The remainder of the mortgage exposure consists of collateralized mortgage obligations and non-government mortgage-backed securities, the majority of which provide a planned structure for principal and interest payments and carry a rating of AAA by the major credit rating agencies.

The following table presents fixed maturities by contractual maturity:
 
 
 
June 30

 
 
 
December 31

 
 
 
2016

 
 
 
2015

(in millions of U.S. dollars)
Amortized Cost

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
3,485

 
$
3,501

 
$
1,856

 
$
1,865

Due after 1 year through 5 years
25,540

 
26,174

 
14,936

 
15,104

Due after 5 years through 10 years
25,905

 
26,685

 
12,258

 
12,173

Due after 10 years
10,137

 
10,827

 
4,272

 
4,487

 
65,067

 
67,187

 
33,322

 
33,629

Mortgage-backed securities
12,369

 
12,764

 
9,827

 
9,958

 
$
77,436

 
$
79,951

 
$
43,149

 
$
43,587

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
368

 
$
372

 
$
492

 
$
495

Due after 1 year through 5 years
2,614

 
2,716

 
2,443

 
2,517

Due after 5 years through 10 years
2,942

 
3,063

 
2,292

 
2,313

Due after 10 years
3,566

 
3,754

 
1,496

 
1,484

 
9,490

 
9,905

 
6,723

 
6,809

Mortgage-backed securities
1,600

 
1,676

 
1,707

 
1,743

 
$
11,090

 
$
11,581

 
$
8,430

 
$
8,552



Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. 

b) Equity securities

June 30


December 31

(in millions of U.S. dollars)
2016


2015

Cost
$
703

 
$
441

Gross unrealized appreciation
103

 
74

Gross unrealized depreciation
(19
)
 
(18
)
Fair value
$
787

 
$
497



c) Net realized gains (losses)
In accordance with guidance related to the recognition and presentation of OTTI, when an impairment related to a fixed maturity has occurred, OTTI is required to be recorded in Net income if management has the intent to sell the security or it is more likely than not that we will be required to sell the security before the recovery of its amortized cost. Further, in cases where we do not intend to sell the security and it is more likely than not that we will not be required to sell the security, Chubb must evaluate the security to determine the portion of the impairment, if any, related to credit losses. If a credit loss is incurred, an OTTI is considered to have occurred and any portion of the OTTI related to credit losses must be reflected in Net income while the portion of OTTI related to all other factors is recognized in OCI. For fixed maturities held to maturity, OTTI recognized in OCI is accreted from AOCI to the amortized cost of the fixed maturity prospectively over the remaining term of the securities.

Each quarter, securities in an unrealized loss position (impaired securities), including fixed maturities, securities lending collateral, equity securities, and other investments, are reviewed to identify impaired securities to be specifically evaluated for a potential OTTI.

For all non-fixed maturities, OTTI is evaluated based on the following:

•
the amount of time a security has been in a loss position and the magnitude of the loss position;
•
the period in which cost is expected to be recovered, if at all, based on various criteria including economic conditions and other issuer-specific developments; and
•
Our ability and intent to hold the security to the expected recovery period.

As a general rule, we also consider that equity securities in an unrealized loss position for twelve consecutive months are other than temporarily impaired. For mutual funds included in equity securities in our consolidated balance sheet, we employ analysis similar to fixed maturities, when applicable.

We review each fixed maturity in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, we consider credit rating, market price, and issuer-specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which we determine that credit loss is likely are subjected to further analysis to estimate the credit loss recognized in Net income, if any. In general, credit loss recognized in Net income equals the difference between the security’s amortized cost and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security. All significant assumptions used in determining credit losses are subject to change as market conditions evolve.

Projected cash flows for corporate securities (principally senior unsecured bonds) are driven primarily by assumptions regarding probability of default and also the timing and amount of recoveries associated with defaults. Chubb developed projected cash flows for corporate securities using market observable data, issuer-specific information, and credit ratings. We use historical default data by Moody’s Investors Service (Moody’s) rating category to calculate a 1-in-100 year probability of default, which results in a default assumption in excess of the historical mean default rate. Consistent with management's approach, Chubb assumed a 32 percent recovery rate (the par value of a defaulted security that will be recovered) across all rating categories rather than using Moody's historical mean recovery rate of 42 percent. We believe that use of a default assumption in excess of the historical mean is conservative in light of current market conditions.

For the three and six months ended June 30, 2016, credit losses recognized in Net income for corporate securities were $7 million and $24 million, respectively. For the three and six months ended June 30, 2015, credit losses recognized in Net income for corporate securities were $5 million and $9 million, respectively.

For mortgage-backed securities, credit impairment is assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements that exist in that structure. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including default rates, prepayment rates, and loss severity rates (the par value of a defaulted security that will not be recovered) on foreclosed properties.

For the three and six months ended June 30, 2016 and 2015, there were no credit losses recognized in Net income for mortgage-backed securities.
The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary”:
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
June 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Fixed maturities:
 
 
 
 
 
 
OTTI on fixed maturities, gross
$
(11
)
 
$
(13
)
$
(78
)
 
$
(26
)
OTTI on fixed maturities recognized in OCI (pre-tax)
—

 
6

8

 
6

OTTI on fixed maturities, net
(11
)
 
(7
)
(70
)

(20
)
Gross realized gains excluding OTTI
37

 
28

102

 
72

Gross realized losses excluding OTTI
(19
)
 
(16
)
(215
)
 
(51
)
Total fixed maturities
7

 
5

(183
)

1

Equity securities:
 
 
 
 
 
 
OTTI on equity securities
(5
)
 
(1
)
(6
)
 
(1
)
Gross realized gains excluding OTTI
4

 
30

44

 
33

Gross realized losses excluding OTTI
(4
)
 
—

(5
)
 
(2
)
Total equity securities
(5
)
 
29

33


30

OTTI on other investments
—

 
—

(3
)
 
—

Foreign exchange gains (losses)
(22
)
 
(40
)
17

 
(71
)
Investment and embedded derivative instruments
(47
)
 
27

(86
)
 
28

Fair value adjustments on insurance derivative
(131
)
 
104

(359
)
 
59

S&P put options and futures
(28
)
 
(2
)
(43
)
 
(14
)
Other derivative instruments
—

 
(1
)
(2
)
 
(1
)
Other
10

 
4

16

 
5

Net realized gains (losses)
$
(216
)
 
$
126

$
(610
)

$
37


 
The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI: 
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
June 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Balance of credit losses related to securities still held – beginning of period
$
57

 
$
22

$
53

 
$
28

Additions where no OTTI was previously recorded
1

 
4

12

 
7

Additions where an OTTI was previously recorded
6

 
1

12

 
2

Reductions for securities sold during the period
(13
)
 
(4
)
(26
)
 
(14
)
Balance of credit losses related to securities still held – end of period
$
51

 
$
23

$
51


$
23



d) Gross unrealized loss
At June 30, 2016, there were 4,157 fixed maturities out of a total of 30,835 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $4 million. There were 93 equity securities out of a total of 297 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $2 million. Fixed maturities in an unrealized loss position at June 30, 2016, comprised both investment grade and below investment grade securities for which fair value declined primarily due to widening credit spreads since the date of purchase.

The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
June 30, 2016
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
Foreign
$
2,266

 
$
(27
)
 
$
673

 
$
(43
)
 
$
2,939

 
$
(70
)
Corporate securities
2,855

 
(61
)
 
1,047

 
(68
)
 
3,902

 
(129
)
Mortgage-backed securities
481

 
(3
)
 
414

 
(3
)
 
895

 
(6
)
States, municipalities, and political subdivisions
1,308

 
(4
)
 
60

 
(1
)
 
1,368

 
(5
)
Total fixed maturities
6,910

 
(95
)
 
2,194

 
(115
)
 
9,104

 
(210
)
Equity securities
186

 
(19
)
 
—

 
—

 
186

 
(19
)
Other investments
280

 
(27
)
 
—

 
—

 
280

 
(27
)
Total
$
7,376

 
$
(141
)
 
$
2,194

 
$
(115
)
 
$
9,570

 
$
(256
)
 
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2015
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
996

 
$
(5
)
 
$
153

 
$
(1
)
 
$
1,149

 
$
(6
)
Foreign
3,953

 
(148
)
 
436

 
(73
)
 
4,389

 
(221
)
Corporate securities
7,518

 
(371
)
 
738

 
(138
)
 
8,256

 
(509
)
Mortgage-backed securities
3,399

 
(42
)
 
516

 
(12
)
 
3,915

 
(54
)
States, municipalities, and political subdivisions
556

 
(6
)
 
42

 
(2
)
 
598

 
(8
)
Total fixed maturities
16,422

 
(572
)
 
1,885

 
(226
)
 
18,307

 
(798
)
Equity securities
131

 
(18
)
 
—

 
—

 
131

 
(18
)
Other investments
210

 
(11
)
 
—

 
—

 
210

 
(11
)
Total
$
16,763

 
$
(601
)
 
$
1,885

 
$
(226
)
 
$
18,648

 
$
(827
)


e) Restricted assets
Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. Chubb is also required to restrict assets pledged under repurchase agreements, which represent Chubb's agreement to sell securities and repurchase them at a future date for a predetermined price. We also use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We also have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets at June 30, 2016 and December 31, 2015, are investments, primarily fixed maturities, totaling $18.6 billion and $16.9 billion, respectively, and cash of $80 million and $110 million, respectively.
The following table presents the components of restricted assets:
 
June 30

 
December 31

(in millions of U.S. dollars)
2016

 
2015

Trust funds
$
12,271

 
$
11,862

Deposits with non-U.S. regulatory authorities
2,340

 
2,075

Deposits with U.S. regulatory authorities
2,241

 
1,242

Assets pledged under repurchase agreements
1,457

 
1,459

Other pledged assets
409

 
392

 
$
18,718

 
$
17,030

Fair value measurements
Fair value measurements
Fair value measurements

a) Fair value hierarchy
Fair value of financial assets and financial liabilities is estimated based on the framework established in the fair value accounting guidance. The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data.
 
The three levels of the hierarchy are as follows:

•
Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets;
•
Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as
interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and
•
Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants
would use in pricing an asset or liability.

We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement. Accordingly, transfers between levels within the valuation hierarchy occur when there are significant changes to the inputs, such as increases or decreases in market activity, changes to the availability of current prices, changes to the transparency to underlying inputs, and whether there are significant variances in quoted prices. Transfers in and/or out of any level are assumed to occur at the end of the period.

We use pricing services to obtain fair value measurements for the majority of our investment securities. Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate. Based on our understanding of the market inputs used by the pricing services, all applicable investments have been valued in accordance with GAAP. We do not adjust prices obtained from pricing services. The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy.

Fixed maturities
We use pricing services to estimate fair value measurements for the majority of our fixed maturities. The pricing services use market quotations for fixed maturities that have quoted prices in active markets; such securities are classified within Level 1. For fixed maturities other than U.S. Treasury securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Additional valuation factors that can be taken into account are nominal spreads, dollar basis, and liquidity adjustments. The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements, and sector news. The market inputs used in the pricing evaluation, listed in the approximate order of priority include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each input is dependent on the asset class and the market conditions. Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant. Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market based inputs (i.e., stale pricing), which may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur. The overwhelming majority of fixed maturities are classified within Level 2 because the most significant inputs used in the pricing techniques are observable. For a small number of fixed maturities, we obtain a single broker quote (typically from a market maker). Due to the disclaimers on the quotes that indicate that the price is indicative only, we include these fair value estimates in Level 3. 

Equity securities
Equity securities with active markets are classified within Level 1 as fair values are based on quoted market prices. For equity securities in markets which are less active, fair values are based on market valuations and are classified within Level 2. Equity securities for which pricing is unobservable are classified within Level 3.

Short-term investments
Short-term investments, which comprise securities due to mature within one year of the date of purchase that are traded in active markets, are classified within Level 1 as fair values are based on quoted market prices. Securities such as commercial paper and discount notes are classified within Level 2 because these securities are typically not actively traded due to their approaching maturity and, as such, their cost approximates fair value. Short-term investments for which pricing is unobservable are classified within Level 3.

Other investments
Fair values for the majority of Other investments including investments in partially-owned investment companies, investment funds, and limited partnerships are based on their respective net asset values or equivalent (NAV) and are excluded from the fair value hierarchy table below. Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP. These assets comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Other investments also include equity securities classified within Level 1, and fixed maturities, classified within Level 2, held in rabbi trusts maintained by Chubb for deferred compensation plans, and are classified within the valuation hierarchy on the same basis as other equity securities and fixed maturities. Other investments for which pricing is unobservable are classified within Level 3.

Securities lending collateral
The underlying assets included in Securities lending collateral in the consolidated balance sheets are fixed maturities which are classified in the valuation hierarchy on the same basis as other fixed maturities. Excluded from the valuation hierarchy is the corresponding liability related to Chubb’s obligation to return the collateral plus interest as it is reported at contract value and not fair value in the consolidated balance sheets.

Investment derivative instruments
Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps are based on market valuations and are classified within Level 2. Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets.

Other derivative instruments
We generally maintain positions in other derivative instruments including exchange-traded equity futures contracts and option contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in reserves for our guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) reinsurance business. Our position in exchange-traded equity futures contracts is classified within Level 1. At June 30, 2016, we held no positions in option contracts on equity market indices. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. Other derivative instruments based on unobservable inputs are classified within Level 3. Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets.

Separate account assets
Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. Separate account assets comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Separate account assets also include fixed maturities classified within Level 2 because the most significant inputs used in the pricing techniques are observable. Excluded from the valuation hierarchy are the corresponding liabilities as they are reported at contract value and not fair value in the consolidated balance sheets. Separate account assets are recorded in Other assets in the consolidated balance sheets.

Guaranteed living benefits
The GLB arises from life reinsurance programs covering living benefit guarantees whereby we assume the risk of guaranteed minimum income benefits (GMIB) and guaranteed minimum accumulation benefits (GMAB) associated with variable annuity contracts. GLB’s are recorded in Accounts payable, accrued expenses, and other liabilities and Future policy benefits in the consolidated balance sheets. For GLB reinsurance, Chubb estimates fair value using an internal valuation model which includes current market information and estimates of policyholder behavior. All of the treaties contain claim limits, which are factored into the valuation model. The fair value depends on a number of factors, including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates and other policyholder behavior, and changes in policyholder mortality.

The most significant policyholder behavior assumptions include lapse rates and the GMIB annuitization rates. Assumptions regarding lapse rates and GMIB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable.

A lapse rate is the percentage of in-force policies surrendered in a given calendar year. All else equal, as lapse rates increase, ultimate claim payments will decrease.

GMIB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GMIB. All else equal, as GMIB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits.

The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established in line with data received from other ceding companies adjusted, as appropriate, with industry estimates. The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities. Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3. For the three and six months ended June 30, 2016 and 2015, no material technical refinements were made to the model. For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2015 Form 10-K.

Financial instruments measured at fair value on a recurring basis, by valuation hierarchy
June 30, 2016
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,155

 
$
543

 
$
—

 
$
2,698

Foreign
—

 
22,393

 
87

 
22,480

Corporate securities
—

 
22,154

 
281

 
22,435

Mortgage-backed securities
—

 
12,715

 
49

 
12,764

States, municipalities, and political subdivisions
—

 
19,574

 
—

 
19,574

 
2,155

 
77,379

 
417

 
79,951

Equity securities
750

 
—

 
37

 
787

Short-term investments
2,321

 
1,260

 
50

 
3,631

Other investments (1)
369

 
240

 
216

 
825

Securities lending collateral
—

 
1,142

 
—

 
1,142

Investment derivative instruments
18

 
—

 
—

 
18

Other derivative instruments
7

 
—

 
—

 
7

Separate account assets
1,592

 
95

 
—

 
1,687

Total assets measured at fair value (1)
$
7,212

 
$
80,116

 
$
720

 
$
88,048

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
71

 
$
—

 
$
—

 
$
71

Other derivative instruments
4

 
—

 
10

 
14

GLB (2)
—

 
—

 
971

 
971

Total liabilities measured at fair value
$
75

 
$
—

 
$
981

 
$
1,056

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,537 million and other investments of $25 million at June 30, 2016 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
 
December 31, 2015
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
1,712

 
$
816

 
$
—

 
$
2,528

Foreign
—

 
13,388

 
57

 
13,445

Corporate securities
—

 
14,755

 
174

 
14,929

Mortgage-backed securities
—

 
9,905

 
53

 
9,958

States, municipalities, and political subdivisions
—

 
2,727

 
—

 
2,727

 
1,712

 
41,591

 
284

 
43,587

Equity securities
481

 
—

 
16

 
497

Short-term investments
7,171

 
3,275

 
—

 
10,446

Other investments (1)
347

 
230

 
212

 
789

Securities lending collateral
—

 
1,046

 
—

 
1,046

Investment derivative instruments
12

 
—

 
—

 
12

Separate account assets
1,464

 
88

 
—

 
1,552

Total assets measured at fair value (1)
$
11,187

 
$
46,230

 
$
512

 
$
57,929

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
13

 
$
—

 
$
—

 
$
13

Other derivative instruments
4

 
—

 
6

 
10

GLB (2)
—

 
—

 
609

 
609

Total liabilities measured at fair value
$
17

 
$
—

 
$
615

 
$
632


(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,477 million and other investments of $25 million at December 31, 2015 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.

There were no transfers between Level 1 and Level 2 for the three and six months ended June 30, 2016 and 2015.

Fair value of alternative investments
Alternative investments include investment funds, limited partnerships, and partially-owned investment companies measured at fair value using NAV as a practical expedient.

The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:
 
 
 
 
 
June 30

 
 
 
December 31

 
Expected
Liquidation
Period of Underlying Assets
 
 
 
2016

 
 
 
2015

(in millions of U.S. dollars)
Fair
Value

 
Maximum
Future Funding
Commitments

 
Fair
Value

 
Maximum
Future Funding
Commitments

Financial
5 to 9 Years
 
$
571

 
$
201

 
$
300

 
$
105

Real Assets
3 to 7 Years
 
520

 
304

 
474

 
140

Distressed
5 to 9 Years
 
456

 
200

 
261

 
218

Private Credit
3 to 7 Years
 
262

 
335

 
265

 
209

Traditional
3 to 9 Years
 
1,451

 
1,054

 
895

 
152

Vintage
1 to 2 Years
 
34

 
14

 
13

 
—

Investment funds
Not Applicable
 
243

 
—

 
269

 
—

 
 
 
$
3,537

 
$
2,108

 
$
2,477

 
$
824



Included in all categories in the above table except for Investment funds are investments for which Chubb will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds.
Investment Category
 
Consists of investments in private equity funds:
Financial
 
targeting financial services companies such as financial institutions and insurance services worldwide
Real Assets
 
targeting investments related to hard physical assets such as real estate, infrastructure and natural resources
Distressed
 
targeting distressed corporate debt/credit and equity opportunities in the U.S.
Private Credit
 
targeting privately originated corporate debt investments including senior secured loans and subordinated bonds
Traditional
 
employing traditional private equity investment strategies such as buyout and growth equity globally
Vintage
 
made before 2002 and where the funds’ commitment periods had already expired

Investment funds
Chubb’s investment funds employ various investment strategies such as long/short equity and arbitrage/distressed. Included in this category are investments for which Chubb has the option to redeem at agreed upon value as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investment fund investments may be redeemed monthly, quarterly, semi-annually, or annually. If Chubb wishes to redeem an investment fund investment, it must first determine if the investment fund is still in a lock-up period (a time when Chubb cannot redeem its investment so that the investment fund manager has time to build the portfolio). If the investment fund is no longer in its lock-up period, Chubb must then notify the investment fund manager of its intention to redeem by the notification date prescribed by the subscription agreement. Subsequent to notification, the investment fund can redeem Chubb’s investment within several months of the notification. Notice periods for redemption of the investment funds range between 5 and 120 days. Chubb can redeem its investment funds without consent from the investment fund managers.

Level 3 financial instruments
The fair values of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) consist of various inputs and assumptions that management makes when determining fair value. Management analyzes changes in fair value measurements classified within Level 3 by comparing pricing and returns of our investments to benchmarks, including month-over-month movements, investment credit spreads, interest rate movements, and credit quality of securities.

The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management. 
(in millions of U.S. dollars, except for percentages)
Fair Value
 
 
Valuation
Technique
 
Significant
Unobservable Inputs
 
Ranges
June 30, 2016

 
December 31, 2015

 
 
 
GLB(1)
$
971

 
$
609

 
Actuarial model
 
Lapse rate
 
1% – 30%
 
 
 
 
 
 
 
Annuitization rate
 
0% – 55%
(1) 
Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits.

The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3).
 
Assets
 
 
 
Liabilities

Three Months Ended
 
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

June 30, 2016
 
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
 
Balance–Beginning of Period
 
$
62

 
$
261

 
$
48

 
$
29

$
—

$
211

 
$
10

$
839

Transfers into Level 3
 
3

 
2

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
 
3

 
9

 
—

 
(1
)
—

—

 
—

—

Net Realized Gains/Losses
 
(1
)
 
(2
)
 
—

 
1

—

—

 
—

132

Purchases
 
27

 
31

 
1

 
10

50

8

 
—

—

Sales
 
(7
)
 
(16
)
 
—

 
(2
)
—

—

 
—

—

Settlements
 
—

 
(4
)
 
—

 
—

—

(3
)
 
—

—

Balance–End of Period
 
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
(1
)
 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
—

$
132

(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.



  
 
Assets
 
 
 
 
Liabilities

Three Months Ended
 
Available-for-Sale Debt Securities
 
 
Equity
securities

 
Other
investments

 
Other derivative instruments

 
GLB(1)

June 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
22

 
$
167

 
$
33

 
$
2

 
$
208

 
$
4

 
$
451

Transfers into Level 3
 
28

 
12

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
 
(2
)
 
(3
)
 
—

 
—

 
2

 
—

 
—

Net Realized Gains/Losses
 
—

 
—

 
—

 
(1
)
 
—

 
(1
)
 
(104
)
Purchases
 
8

 
8

 
23

 
1

 
7

 
—

 
—

Sales
 
—

 
(2
)
 
—

 
—

 
—

 
—

 
—

Settlements
 
—

 
(15
)
 
(1
)
 
—

 
(3
)
 
—

 
—

Balance–End of Period
 
$
56

 
$
167

 
$
55

 
$
2

 
$
214

 
$
3

 
$
347

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
—

 
$
(1
)
 
$
(104
)
(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $615 million at June 30, 2015, and $716 million at March 31, 2015, which includes a fair value derivative adjustment of $347 million and $451 million, respectively.

 
 
 
 
 
 
 
 
 
Assets

 
 
Liabilities

Six Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

June 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance–Beginning of Period
$
57

 
$
174

 
$
53

 
$
16

$
—

$
212

 
$
6

$
609

Transfers into Level 3
9

 
18

 
—

 
—

—

—

 
—

—

Transfers out of Level 3
(2
)
 
—

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
9

 
11

 
—

 
(1
)
—

—

 
—

—

Net Realized Gains/Losses
(6
)
 
(8
)
 
—

 
1

—

—

 
2

362

Purchases (2)
32

 
124

 
1

 
23

50

14

 
2

—

Sales
(8
)
 
(30
)
 
(5
)
 
(2
)
—

—

 
—

—

Settlements
(4
)
 
(8
)
 
—

 
—

—

(10
)
 
—

—

Balance–End of Period
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(5
)
 
$
(7
)
 
$
—

 
$
—

$
—

$
—

 
$
2

$
362

(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

  
 
Assets
 
 
 
Liabilities

Six Months Ended
 
Available-for-Sale Debt Securities
 
 
 
 
Other investments

 
Other
derivative
instruments

GLB(1)

June 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
Equity
securities

 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
22

 
$
187

 
$
15

 
$
2

 
$
204

 
$
4

$
406

Transfers into Level 3
 
28

 
13

 
—

 
—

 
—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
 
(2
)
 
—

 
—

 
—

 
—

 
—

—

Net Realized Gains/Losses
 
—

 
(3
)
 
—

 
(1
)
 
—

 
(1
)
(59
)
Purchases
 
9

 
16

 
41

 
1

 
16

 
—

—

Sales
 
(1
)
 
(5
)
 
—

 
—

 
—

 
—

—

Settlements
 
—

 
(41
)
 
(1
)
 
—

 
(6
)
 
—

—

Balance–End of Period
 
$
56


$
167


$
55

 
$
2


$
214

 
$
3

$
347

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
—

 
$
(2
)
 
$
—

 
$
(1
)
 
$
—

 
$
(1
)
$
(59
)
(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $615 million at June 30, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $347 million and $406 million, respectively.


b) Financial instruments disclosed, but not measured, at fair value
Chubb uses various financial instruments in the normal course of its business. Our insurance contracts are excluded from fair value of financial instruments accounting guidance, and therefore, are not included in the amounts discussed below.

The carrying values of cash, other assets, other liabilities, and other financial instruments not included below approximated their fair values.

Investments in partially-owned insurance companies
Fair values for investments in partially-owned insurance companies are based on Chubb’s share of the net assets based on the financial statements provided by those companies and are excluded from the valuation hierarchy tables below.

Short- and long-term debt, repurchase agreements, and trust preferred securities
Where practical, fair values for short-term debt, long-term debt, repurchase agreements, and trust preferred securities are estimated using discounted cash flow calculations based principally on observable inputs including incremental borrowing rates, which reflect Chubb’s credit rating, for similar types of borrowings with maturities consistent with those remaining for the debt being valued.

The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
June 30, 2016
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
605

 
$
111

 
$
—

 
$
716

 
$
686

Foreign
—

 
773

 
—

 
773

 
730

Corporate securities
—

 
3,002

 
13

 
3,015

 
2,882

Mortgage-backed securities
—

 
1,676

 
—

 
1,676

 
1,600

States, municipalities, and political subdivisions
—

 
5,401

 
—

 
5,401

 
5,192

Total assets
$
605

 
$
10,963

 
$
13

 
$
11,581

 
$
11,090

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,405

 
$
—

 
$
1,405

 
$
1,405

Short-term debt
—

 
514

 
—

 
514

 
500

Long-term debt
—

 
13,633

 
—

 
13,633

 
12,631

Trust preferred securities
—

 
451

 
—

 
451

 
308

Total liabilities
$
—

 
$
16,003

 
$
—

 
$
16,003

 
$
14,844


December 31, 2015
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
583

 
$
162

 
$
—

 
$
745

 
$
733

Foreign
—

 
785

 
—

 
785

 
763

Corporate securities
—

 
3,042

 
14

 
3,056

 
3,054

Mortgage-backed securities
—

 
1,743

 
—

 
1,743

 
1,707

States, municipalities, and political subdivisions
—

 
2,223

 
—

 
2,223

 
2,173

Total assets
$
583


$
7,955


$
14


$
8,552


$
8,430

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,404

 
$
—

 
$
1,404

 
$
1,404

Long-term debt
—

 
9,678

 
—

 
9,678

 
9,389

Trust preferred securities
—

 
446

 
—

 
446

 
307

Total liabilities
$
—

 
$
11,528

 
$
—

 
$
11,528

 
$
11,100

Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts
Assumed life reinsurance programs involving minimum benefit guarantees under variable annuity contracts

The following table presents income and expenses relating to GMDB and GLB reinsurance. GLBs include GMIBs as well as some GMABs originating in Japan.
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars)
2016

 
2015

 
2016

 
2015

GMDB
 
 
 
 
 
 
 
Net premiums earned
$
13

 
$
16

 
$
27

 
$
32

Policy benefits and other reserve adjustments
$
15

 
$
11

 
$
23

 
$
20

GLB
 
 
 
 
 
 
 
Net premiums earned
$
31

 
$
30

 
$
60

 
$
62

Policy benefits and other reserve adjustments
4

 
7

 
15

 
19

Net realized gains (losses)
(137
)
 
104

 
(371
)
 
59

Loss recognized in Net income
$
(110
)
 
$
127

 
$
(326
)
 
$
102

Less: Net cash received
24

 
26

 
42

 
54

Net (increase) decrease in liability
$
(134
)
 
$
101

 
$
(368
)
 
$
48



Net realized gains (losses) in the table above include gains (losses) related to foreign exchange and fair value adjustments on insurance derivatives and exclude gains (losses) on S&P put options and futures used to partially offset the risk in the GLB reinsurance portfolio. Refer to Note 8 for additional information.

The reported liability for GMDB reinsurance was $118 million and $117 million at June 30, 2016 and December 31, 2015, respectively. At June 30, 2016 and December 31, 2015, the reported liability for GLB reinsurance was $1.3 billion and $888 million, respectively, which includes a fair value derivative adjustment of $971 million and $609 million, respectively. Reported liabilities for both GMDB and GLB reinsurance are determined using internal valuation models. Such valuations require considerable judgment and are subject to significant uncertainty. The valuation of these products is subject to fluctuations arising from, among other factors, changes in interest rates, changes in equity markets, changes in credit markets, changes in the allocation of the investments underlying annuitants’ account values, and assumptions regarding future policyholder behavior. These models and the related assumptions are regularly reviewed by management and enhanced, as appropriate, based upon improvements in modeling assumptions and availability of updated information, such as market conditions and demographics of in-force annuities.
Goodwill and other intangible assets Goodwill and other intangible assets
Goodwill and Other Intangible Assets [Text Block]
Goodwill and Other intangible assets
At June 30, 2016 and December 31, 2015, Goodwill was $15.5 billion and $4.8 billion, respectively, and Other intangible assets were $7.4 billion and $887 million, respectively. The increases in Goodwill and Other intangible assets reflect the goodwill and intangible assets recorded in connection with the Chubb Corp acquisition.

The following table presents a roll-forward of Goodwill by segment for the six months ended June 30, 2016:
(in millions of U.S. dollars)
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global Reinsurance

 
Life Insurance

 
Chubb Consolidated

Balance at December 31, 2015
$
1,203

 
$
196

 
$
134

 
$
2,078

 
$
365

 
$
820

 
$
4,796

Acquisition of Chubb Corp
5,712

 
2,025

 
—

 
2,789

 
—

 
—

 
10,526

Foreign exchange revaluation
58

 
18

 
—

 
126

 
—

 
1

 
203

Balance at June 30, 2016
$
6,973

 
$
2,239

 
$
134

 
$
4,993

 
$
365

 
$
821

 
$
15,525


 
The preliminary purchase price allocation to intangible assets recorded in connection with the Chubb Corp acquisition and their related useful lives are as follows:
(in millions of U.S. dollars)
Preliminary purchase price allocation

 
Estimated useful life
Definite life
 
 
 
Unearned premium reserves (UPR) intangible asset
$
1,550

 
1 year
Agency distribution relationships and renewal rights
3,150

 
24 years
Internally developed technology
95

 
3 years
Indefinite life
 
 
 
Trademarks
2,800

 
Indefinite
Licenses
50

 
Indefinite
Syndicate capacity
10

 
Indefinite
Total identified intangible assets
$
7,655

 
 


Additionally, in connection with the Chubb Corp acquisition, we recorded an increase to Unpaid losses and loss expenses acquired as part of Chubb Corp of $715 million to adjust the carrying value of Chubb Corp's historical unpaid losses and loss expenses to fair value as of the acquisition date. The estimated fair value consists of the present value of the expected net unpaid loss and loss adjustment expenses payments adjusted for an estimated risk margin. The expected cash flows are discounted at a risk free rate. The estimated risk margin varies based on the inherent risks associated with each type of reserve. This fair value adjustment was recorded within Unpaid losses and loss expenses on the Consolidated balance sheets and will amortize through Amortization of purchased intangibles on the Consolidated statements of operations over a range of 5 to 17 years, based on the estimated payout patterns of unpaid loss and loss expenses as of the acquisition date.

The following table presents, as of June 30, 2016, the expected estimated pre-tax amortization expense (benefit), at current foreign currency exchange rates, for the third and fourth quarters of 2016 and the next five years, related to purchased intangibles as well as the fair value adjustment to Unpaid losses and loss expenses described above:
 
Associated with the Chubb Corp Acquisition
 
 
 
For the Year Ending December 31
(in millions of U.S. dollars)
Agency distribution relationships and renewal rights

Internally developed technology

Fair value adjustment to Unpaid losses and loss expense

Total

Other intangible assets

Total Amortization of purchased intangibles

Third quarter of 2016
$
33

$
8

$
(61
)
$
(20
)
$
23

$
3

Fourth quarter of 2016
33

8

(61
)
(20
)
23

3

2017
296

32

(160
)
168

85

253

2018
324

32

(101
)
255

74

329

2019
281

—

(62
)
219

66

285

2020
240

—

(35
)
205

59

264

2021
217

—

(20
)
197

53

250

Total
$
1,424

$
80

$
(500
)
$
1,004

$
383

$
1,387



The following table presents the expected amortization, at current foreign currency exchange rates, for the remainder of the UPR intangible asset which amortizes through Policy acquisition costs on the Consolidated statements of operations.
 
Associated with the Chubb Corp Acquisition

For the Year Ending December 31, 2016
(in millions of U.S. dollars)
Amortization of UPR intangible asset

Third quarter of 2016
$
320

Fourth quarter of 2016
144

Total
$
464

Debt
Debt Disclosure [Text Block]
Debt
In connection with the Chubb Corp acquisition, Chubb INA Holdings Inc. (formerly ACE INA Holdings Inc.) assumed $3.3 billion par value outstanding debt of Chubb Corp, fair valued at $3.8 billion at the acquisition date. Chubb INA Holdings Inc. (Chubb INA) assumed Chubb Corp's rights, duties and obligations and Chubb Limited fully and unconditionally guarantees Chubb INA's payment obligations under these debts. Additionally, during the first quarter of 2016 we adopted new guidance that required debt issuance costs be recorded as a reduction of the carrying amount of the related debt liability (these costs were previously included in Other assets on the Consolidated balance sheets). The debt balances at December 31, 2015 have been updated to reflect the adoption of this guidance.

 
June 30

 
December 31

 
 
(in millions of U.S. dollars)
2016

 
2015

 
Early Redemption Option
Repurchase agreements (weighted average interest rate of 0.8% in 2016 and 0.6% in 2015)
$
1,405

 
$
1,404

 
None
Short-term debt
 
 
 
 
 
Chubb INA senior notes:
 
 
 
 
 
$500 million 5.7% due February 2017
$
500

 
$
—

 
Make-whole premium plus 0.20%
Total short-term debt
$
500

 
$
—

 
 
Long-term debt
 
 
 
 
 
Chubb INA senior notes:
 
 
 
 
 
$500 million 5.7% due February 2017
$
—

 
$
500

 
Make-whole premium plus 0.20%
$300 million 5.8% due March 2018
300

 
299

 
Make-whole premium plus 0.35%
$600 million 5.75% due May 2018
648

 
—

 
Make-whole premium plus 0.30%
$100 million 6.6% due August 2018
109

 
—

 
None
$500 million 5.9% due June 2019
497

 
497

 
Make-whole premium plus 0.40%
$1,300 million 2.3% due November 2020
1,294

 
1,294

 
Make-whole premium plus 0.15%
$1,000 million 2.875% due November 2022
994

 
994

 
Make-whole premium plus 0.20%
$475 million 2.7% due March 2023
471

 
471

 
Make-whole premium plus 0.10%
$700 million 3.35% due May 2024
694

 
694

 
Make-whole premium plus 0.15%
$800 million 3.15% due March 2025
794

 
794

 
Make-whole premium plus 0.15%
$1,500 million 3.35% due May 2026
1,487

 
1,487

 
Make-whole premium plus 0.20%
$100 million 8.875% due August 2029
100

 
100

 
None
$200 million 6.8% due November 2031
259

 
—

 
Make-whole premium plus 0.25%
$300 million 6.7% due May 2036
297

 
297

 
Make-whole premium plus 0.20%
$800 million 6.0% due May 2037
984

 
—

 
Make-whole premium plus 0.20%
$600 million 6.5% due May 2038
780

 
—

 
Make-whole premium plus 0.30%
$475 million 4.15% due March 2043
469

 
469

 
Make-whole premium plus 0.15%
$1,500 million 4.35% due November 2045
1,482

 
1,482

 
Make-whole premium plus 0.25%
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
961

 
—

 
Make-whole premium plus 0.25%-0.50%
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020)
11

 
11

 
None
Total long-term debt
$
12,631

 
$
9,389

 
 
Trust preferred securities
 
 
 
 
 
Chubb INA capital securities due April 2030
$
308

 
$
307

 
Redemption prices(2)
(1) 
6.375% interest rate through April 14, 2017; interest rate equal to three month LIBOR rate plus 2.25% thereafter.
(2) 
Redemption price is equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the debentures from the redemption date to April 1, 2030.

Certain of Chubb INA's senior notes and capital securities are redeemable at any time at Chubb INA's option subject to the provisions described in the table above. A "make-whole" premium is the present value of the remaining principal and interest discounted at the applicable U.S. Treasury rate. The senior notes and capital securities are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law.
We have outstanding $1.0 billion of unsecured junior subordinated capital securities at June 30, 2016, which were assumed by Chubb INA in connection with the Chubb Corp acquisition. The capital securities will become due on April 15, 2037, the scheduled maturity date, but only to the extent that we have received sufficient net proceeds from the sale of certain qualifying capital securities. We must use commercially reasonable efforts, subject to certain market disruption events, to sell enough qualifying capital securities to permit repayment of the capital securities on the scheduled maturity date or as soon thereafter as possible. Any remaining outstanding principal amount will be due on March 29, 2067, the final maturity date. The capital securities bear interest at a rate of 6.375 percent through April 14, 2017. Thereafter, the capital securities will bear interest at a rate equal to the three-month LIBOR rate plus 2.25 percent. Subject to certain conditions, we have the right to defer the payment of interest on the capital securities for a period not exceeding ten consecutive years. During any such period, interest will continue to accrue and we generally may not declare or pay any dividends on or purchase any shares of our capital stock.
In connection with the issuance of capital securities, a replacement capital covenant was entered into in which we agreed that we will not repay, redeem, or purchase capital securities before March 29, 2047, unless, subject to certain limitations, we have received proceeds from the sale of specified replacement capital securities. The replacement capital covenant is not intended for the benefit of holders of the capital securities and may not be enforced by them. The replacement capital covenant is for the benefit of holders of one or more designated series of Chubb's indebtedness, which initially was and continues to be its 6.8 percent debentures due November 2031.
Subject to the replacement capital covenant, the $1.0 billion capital securities may be redeemed, in whole or in part, at any time (i) on or after April 15, 2017 at a redemption price equal to the principal amount plus any accrued interest or (ii) prior to April 15, 2017 at a redemption price equal to the greater of (1) the principal amount or (2) a make-whole premium, in each case plus any accrued interest.
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees

a) Derivative instruments
Foreign currency management
As a global company, Chubb entities transact business in multiple currencies. Our policy is to generally match assets, liabilities, and required capital for each individual jurisdiction in local currency, which would include the use of derivatives discussed below. We do not hedge our net asset non-U.S. dollar capital positions; however, we do consider hedging for planned cross border transactions.

Derivative instruments employed
Chubb maintains positions in derivative instruments such as futures, options, swaps, and foreign currency forward contracts for which the primary purposes are to manage duration and foreign currency exposure, yield enhancement, or to obtain an exposure to a particular financial market. Chubb also maintains positions in convertible securities that contain embedded derivatives. Investment derivative instruments are recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP), convertible bonds are recorded in Fixed maturities available for sale (FM AFS), and convertible equity securities are recorded in Equity securities (ES) in the consolidated balance sheets. These are the most numerous and frequent derivative transactions.

In addition, Chubb from time to time purchases to be announced mortgage-backed securities (TBAs) as part of its investing activities.

Under reinsurance programs covering GLBs, Chubb assumes the risk of GLBs, including GMIB and GMAB, associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder’s account value is less than a guaranteed minimum value. The GLB reinsurance product meets the definition of a derivative instrument. Benefit reserves in respect of GLBs are classified as Future policy benefits (FPB) while the fair value derivative adjustment is classified within AP. Chubb also generally maintains positions in exchange-traded equity futures contracts and options on equity market indices to limit equity exposure in the GMDB and GLB blocks of business. At June 30, 2016, we held no positions in option contracts on equity market indices.

All derivative instruments are carried at fair value with changes in fair value recorded in Net realized gains (losses) in the Consolidated statements of operations. None of the derivative instruments are designated as hedges for accounting purposes.

The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments:
 
 
 
 
 
June 30, 2016
 
 
 
 
December 31, 2015
 
 
Consolidated
Balance Sheet
Location
 
Fair Value
 
 
Notional
Value/
Payment
Provision

 
Fair Value
 
 
Notional
Value/
Payment
Provision

(in millions of U.S. dollars)
 
Derivative Asset

 
Derivative (Liability)

 
 
Derivative Asset

 
Derivative (Liability)

 
Investment and embedded derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
OA / (AP)
 
$
10

 
$
(27
)
 
$
1,258

 
$
7

 
$
(11
)
 
$
1,029

Cross-currency swaps
OA / (AP)
 
—

 
—

 
95

 
—

 
—

 
95

Options/Futures contracts on notes and bonds
OA / (AP)
 
8

 
(44
)
 
1,249

 
5

 
(2
)
 
751

Convertible securities (1)
FM AFS / ES
 
2

 
—

 
6

 
31

 
—

 
40

 
 
 
$
20

 
$
(71
)
 
$
2,608

 
$
43

 
$
(13
)
 
$
1,915

Other derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Futures contracts on equities (2)
OA / (AP)
 
$
—

 
$
(4
)
 
$
1,225

 
$
—

 
$
(4
)
 
$
1,197

Other
OA / (AP)
 
7

 
(10
)
 
277

 
—

 
(6
)
 
15

 
 
 
$
7

 
$
(14
)
 
$
1,502

 
$
—

 
$
(10
)
 
$
1,212

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(1,256
)
 
$
1,511

 
$
—

 
$
(888
)
 
$
1,155


(1) 
Includes fair value of embedded derivatives.
(2) 
Related to GMDB and GLB blocks of business.
(3) 
Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.

At June 30, 2016 and December 31, 2015, derivative liabilities of $51 million and derivative assets of $1 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement. 

b) Secured borrowings
Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. At June 30, 2016 and December 31, 2015, our securities lending collateral was $1,142 million and $1,046 million, respectively, and our securities lending payable, reflecting our obligation to return the collateral plus interest, was $1,143 million and $1,047 million, respectively. The securities lending collateral can only be drawn down by Chubb in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the consolidated balance sheets.

The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:
 
 
Remaining contractual maturity

June 30, 2016
 
Overnight and Continuous

(in millions of U.S. dollars)
 
Collateral held under securities lending agreements:
 
 
Cash
 
$
447

U.S. Treasury and agency
 
71

Foreign
 
262

Corporate securities
 
11

Equity securities
 
351

 
 
$
1,142

Gross amount of recognized liability for securities lending payable
 
$
1,143

Difference (1)
 
$
(1
)
(1) 
The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable due to accrued interest recorded in the securities lending payable.

At June 30, 2016 and December 31, 2015, our repurchase agreement obligations of $1,405 million and $1,404 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities and the repurchase agreement obligation is recorded in Repurchase agreements in the consolidated balance sheets.  

The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:
 
Remaining contractual maturity
 
June 30, 2016
Up to 30 Days

 
Greater than
90 Days

 
Total

(in millions of U.S. dollars)
 
 
Collateral pledged under repurchase agreements:
 
 
 
 
 
U.S. Treasury and agency
$
234

 
$
5

 
$
239

Mortgage-backed securities
329

 
889

 
1,218

 
$
563

 
$
894

 
$
1,457

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
$
1,405

Difference(1)
 
 
 
 
$
52

(1) 
Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability.

Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, Chubb will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that Chubb may not be able to renew outstanding borrowings with a new term or with an existing counterparty due to market conditions including a decrease in demand as well as more restrictive terms from banks due to increased regulatory and capital constraints. Should this condition occur, Chubb may seek alternative borrowing sources or reduce borrowings. Additionally, increased margins and collateral requirements due to market conditions would increase our restricted assets as we are required to provide additional collateral to support the transaction.

The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
June 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Investment and embedded derivative instruments
 
 
 
 
 
 
Foreign currency forward contracts
$
(10
)
 
$
(10
)
$
(20
)
 
$
15

All other futures contracts and options
(37
)
 
42

(71
)
 
13

Convertible securities(1)
—

 
(5
)
5

 
—

Total investment and embedded derivative instruments
$
(47
)
 
$
27

$
(86
)

$
28

GLB and other derivative instruments
 
 
 
 
 
 
GLB(2)
$
(131
)
 
$
104

$
(359
)
 
$
59

Futures contracts on equities(3)
(28
)
 
(2
)
(43
)
 
(13
)
Options on equity market indices(3)
—

 
—

—

 
(1
)
Other
—

 
(1
)
(2
)
 
(1
)
Total GLB and other derivative instruments
$
(159
)
 
$
101

$
(404
)

$
44

 
$
(206
)
 
$
128

$
(490
)

$
72

(1) 
Includes embedded derivatives.
(2) 
Excludes foreign exchange gains (losses) related to GLB.
(3) 
Related to GMDB and GLB blocks of business.

c) Derivative instrument objectives
(i) Foreign currency exposure management
A foreign currency forward contract (forward) is an agreement between participants to exchange specific foreign currencies at a future date. Chubb uses forwards to minimize the effect of fluctuating foreign currencies as discussed above.

(ii) Duration management and market exposure
Futures
Futures contracts give the holder the right and obligation to participate in market movements, determined by the index or underlying security on which the futures contract is based. Settlement is made daily in cash by an amount equal to the change in value of the futures contract times a multiplier that scales the size of the contract. Exchange-traded futures contracts on money market instruments, notes and bonds are used in fixed maturity portfolios to more efficiently manage duration, as substitutes for ownership of the money market instruments, bonds and notes without significantly increasing the risk in the portfolio. Investments in futures contracts may be made only to the extent that there are assets under management not otherwise committed.

Exchange-traded equity futures contracts are used to limit exposure to a severe equity market decline, which would cause an increase in expected claims and therefore, an increase in reserves for GMDB and GLB reinsurance business.

Options
An option contract conveys to the holder the right, but not the obligation, to purchase or sell a specified amount or value of an underlying security at a fixed price. Option contracts are used in the investment portfolio as protection against unexpected shifts in interest rates, which would affect the duration of the fixed maturity portfolio. By using options in the portfolio, the overall interest rate sensitivity of the portfolio can be reduced. Option contracts may also be used as an alternative to futures contracts in the synthetic strategy as described above.

Another use for option contracts is to limit exposure to a severe equity market decline, which would cause an increase in expected claims and therefore, an increase in reserves for GMDB and GLB reinsurance business.

The price of an option is influenced by the underlying security, expected volatility, time to expiration, and supply and demand.

The credit risk associated with the above derivative financial instruments relates to the potential for non-performance by counterparties. Although non-performance is not anticipated, in order to minimize the risk of loss, management monitors the creditworthiness of its counterparties and obtains collateral. The performance of exchange-traded instruments is guaranteed by the exchange on which they trade. For non-exchange-traded instruments, the counterparties are principally banks which must meet certain criteria according to our investment guidelines.

Cross-currency swaps
Cross-currency swaps are agreements under which two counterparties exchange interest payments and principal denominated in different currencies at a future date.  We use cross-currency swaps to reduce the foreign currency and interest rate risk by converting cash flows back into local currency.  We invest in foreign currency denominated investments to improve credit diversification and also to obtain better duration matching to our liabilities that is limited in the local currency market.

Other
Included within Other are derivatives intended to reduce potential losses which may arise from certain exposures in our insurance business.  The economic benefit provided by these derivatives is similar to purchased reinsurance.  For example, Chubb may enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices. Also included within Other are certain life insurance products that meet the definition of a derivative instrument for accounting purposes. 

(iii) Convertible security investments
A convertible security is a debt instrument or preferred stock that can be converted into a predetermined amount of the issuer’s equity. The convertible option is an embedded derivative within the host instruments which are classified in the investment portfolio as either available for sale or as an equity security. Chubb purchases convertible securities for their total return and not specifically for the conversion feature.

(iv) TBA
By acquiring TBAs, we make a commitment to purchase a future issuance of mortgage-backed securities. For the period between purchase of the TBAs and issuance of the underlying security, we account for our position as a derivative in the consolidated financial statements. Chubb purchases TBAs both for their total return and for the flexibility they provide related to our mortgage-backed security strategy.

(v) GLB
Under the GLB program, as the assuming entity, Chubb is obligated to provide coverage until the expiration or maturity of the underlying deferred annuity contracts or the expiry of the reinsurance treaty. Premiums received under the reinsurance treaties are classified as premium. Expected losses allocated to premiums received are classified as Future policy benefits and valued similar to GMDB reinsurance. Other changes in fair value, principally arising from changes in expected losses allocated to expected future premiums, are classified as Net realized gains (losses). Fair value represents management’s estimate of an exit price and thus, includes a risk margin. We may recognize a realized loss for other changes in fair value due to adverse changes in the capital markets (e.g., declining interest rates and/or declining equity markets) and changes in actual or estimated future policyholder behavior (e.g., increased annuitization or decreased lapse rates) although we expect the business to be profitable. We believe this presentation provides the most meaningful disclosure of changes in the underlying risk within the GLB reinsurance programs for a given reporting period.

d) Fixed maturities
At June 30, 2016, we have commitments to purchase fixed income securities of $243 million over the next several years.

e) Other investments
At June 30, 2016, included in Other investments in the consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.3 billion. In connection with these investments, we have commitments that may require funding of up to $2.1 billion over the next several years. 

f) Taxation
At June 30, 2016, $20 million of unrecognized tax benefits remains outstanding. It is reasonably possible that over the next twelve months, the amount of unrecognized tax benefits may change resulting from the re-evaluation of unrecognized tax benefits arising from examinations of taxing authorities. With few exceptions, Chubb is no longer subject to state and local or non-U.S. income tax examinations for years before 2005.

g) Legal proceedings
Our insurance subsidiaries are subject to claims litigation involving disputed interpretations of policy coverages and, in some jurisdictions, direct actions by allegedly-injured persons seeking damages from policyholders. These lawsuits, involving claims on policies issued by our subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in our loss and loss expense reserves. In addition to claims litigation, we are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies. This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures. In the opinion of management, our ultimate liability for these matters could be, but we believe is not likely to be, material to our consolidated financial condition and results of operations.
Shareholders' equity
Shareholders' equity
Shareholders’ equity

All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing consolidated financial statements. Under Swiss corporate law, dividends, including distributions through a reduction in par value (par value reduction) or from legal reserves, must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. At June 30, 2016, our Common Shares had a par value of CHF 24.15 per share.

At our May 2014 annual general meeting, our shareholders approved an annual dividend for the following year of $2.60 per share, payable in four quarterly installments of $0.65 per share after the annual general meeting in the form of a distribution by way of a par value reduction.

At our May 2015 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.68 per share, which was paid in four quarterly installments of $0.67 per share at dates determined by the Board of Directors (Board) after the annual general meeting by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

At our May 2016 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.76 per share, expected to be paid in four quarterly installments of $0.69 per share after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment. The Board will determine the record and payment dates at which the annual dividend may be paid until the date of the 2017 annual general meeting, and is authorized to abstain from distributing a dividend at their discretion.

The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

Dividends – par value reduction
—

 
$


 
—

 
$
—

 
—

 
$


 
0.62

 
$
0.65

Dividends – distributed from capital contribution reserves
0.68

 
0.69

 
0.62

 
0.67

 
1.34

 
1.36

 
0.62

 
0.67

Total dividend distributions per common share
0.68

 
$
0.69

 
0.62

 
$
0.67

 
1.34

 
$
1.36

 
1.24

 
$
1.32



Common Shares in treasury are used principally for issuance upon the exercise of employee stock options, grants of restricted stock, and purchases under the Employee Stock Purchase Plan (ESPP). At June 30, 2016, 14,770,884 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans.

Chubb Limited securities repurchase authorization
In November 2014, the Board authorized a share repurchase program of $1.5 billion of Chubb's Common Shares for the period January 1, 2015 through December 31, 2015. For the three and six months ended June 30, 2015, Chubb repurchased $394 million (3,650,200 Common Shares) and $734 million (6,677,663 Common Shares), respectively. There are no outstanding repurchase authorizations subsequent to December 31, 2015.
Share-based compensation
Share-based compensation
Share-based compensation

The ACE Limited 2004 Long-Term Incentive Plan (the 2004 LTIP) permitted grants of both incentive and non-qualified stock options principally at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term. Stock options typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 25, 2016, Chubb granted 1,926,842 stock options with a weighted-average grant date fair value of $21.52 each. The fair value of the options issued is estimated on the grant date using the Black-Scholes option pricing model.

The 2004 LTIP also permitted grants of service-based restricted stock and restricted stock units as well as performance-based restricted stock awards. Chubb generally grants service-based restricted stock and restricted stock units with a 4-year vesting period, based on a graded vesting schedule. The performance-based stock awards comprise target awards which have four installments that vest annually based on tangible book value (shareholders' equity less goodwill and intangible assets) per share growth compared to a defined group of peer companies, and premium awards, which are earned only if tangible book value per share growth over the cumulative 4-year period after the grant of the associated target awards exceeds a higher threshold compared to our peer group. The restricted stock is granted at market close price on the grant date. On February 25, 2016, Chubb granted 1,119,686 service-based restricted stock awards, 337,581 service-based restricted stock units, and 452,820 performance-based awards to employees and officers with a grant date fair value of $118.39 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting.

In connection with the Chubb Corp acquisition, we assumed outstanding equity awards consisting of service-based restricted stock units, performance-based restricted stock units, and stock options issued by Chubb Corporation to employees and directors with a fair value of approximately $525 million, of which $323 million is attributed to purchase consideration for the acquisition. These awards were generally granted with a 3-year vesting period, and the stock options generally have a 10-year term.

In May 2016, our shareholders approved the Chubb Limited 2016 Long-Term Incentive Plan (the 2016 LTIP), which replaced both the 2004 LTIP and The Chubb Corporation Long-Term Incentive Plan (2014). The 2016 LTIP is substantially similar to the 2004 LTIP in its operation and the types of awards that may be granted.

Under the 2016 LTIP, 19,500,000 Common Shares were authorized to be issued, in addition to any shares that have not been delivered pursuant to the 2004 LTIP and remain available for grant pursuant to the 2004 LTIP, including any shares covered by awards granted under the 2004 LTIP that are forfeited, expire or are canceled after the effective date of the 2016 LTIP without delivery of shares or which result in the forfeiture of the shares back to Chubb.
Postretirement benefits Postretirement benefits
Compensation and Employee Benefit Plans [Text Block]
Postretirement benefits

We maintain non-contributory defined benefit pension plans and other postretirement plans that cover certain employees located in the U.S., Europe, Asia, Canada, and Mexico. All underlying plans are subject to periodic actuarial valuations by qualified actuarial firms using actuarial models to calculate the expense and liability for each plan. Components of the funded status of the pension and other postretirement benefit plans are included in Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets.

Chubb provides postretirement benefits to eligible employees and their dependents through various defined contribution plans and defined benefit plans sponsored by Chubb. With the acquisition, Chubb assumed the outstanding pension obligations of legacy Chubb Corp, which consisted of several non-contributory defined benefit pension plans covering substantially all its employees.

We also assumed the legacy Chubb Corp other postretirement benefits plans, principally health care and life insurance, to retired employees, their beneficiaries, and covered dependents. Health care coverage is contributory. Retiree contributions vary based upon retiree’s age, type of coverage, and years of service requirements. Life insurance coverage is non-contributory. Chubb funds a portion of the health care benefits obligation where such funding can be accomplished on a tax-effective basis. Benefits are paid as covered expenses are incurred.

As part of purchase accounting, Chubb eliminated legacy Chubb Corp’s postretirement benefit costs not yet recognized in Net income that were recorded in Accumulated other comprehensive income at the time of the acquisition. In addition, Chubb conformed the accounting policies for the acquired plans of legacy Chubb Corp to the accounting policies of Chubb, including selecting the applicable discount rates using specific spot rates along a yield curve determined by the projected cash flows assumptions. This resulted in a lower overall discount rate used to determine the benefit obligation and therefore increased that obligation at the date of the acquisition.

At the date of the acquisition of Chubb Corp, we assumed the following postretirement benefit plan assets and obligations:
 
Pension Benefits
 
 
Other Postretirement Benefits
 
January 14, 2016
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

(in millions of U.S. dollars)
 
 
 
 
 
Fair value of plan assets
$
2,473

 
$
315

 
$
2,788

 
$
138

 
$
—

 
$
138

Benefit obligations
(3,153
)
 
(372
)
 
(3,525
)
 
(491
)
 
(15
)
 
(506
)
Funded status
$
(680
)
 
$
(57
)
 
$
(737
)
 
$
(353
)
 
$
(15
)
 
$
(368
)


Chubb’s funding policy is to contribute amounts that meet regulatory requirements plus additional amounts determined based on actuarial valuations, market conditions and other factors. All benefit plans satisfy minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA). 

For the three and six months ended June 30, 2016, we contributed $105 million and $132 million, respectively, to our U.S. and non-U.S. pension and other postretirement benefits plans. At June 30, 2016, we estimate that we will contribute an additional $19 million for the remainder of 2016. These estimates are subject to change due to contribution decisions that are affected by various factors including our liquidity, market performance and management discretion.

The following tables summarize the components of net periodic benefit costs for our pension and postretirement benefit plans recognized in the Consolidated statements of operations:
Three Months Ended June 30
Pension Benefits
 
 
Other Postretirement Benefits
 
(in millions of U.S. dollars)
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
20

 
$
4

 
$
24

 
$
2

 
$
1

 
$
3

     Interest cost
27

 
8

 
35

 
4

 
—

 
4

     Expected return on plan assets
(42
)
 
(10
)
 
(52
)
 
(2
)
 
—

 
(2
)
     Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

             Net periodic benefit cost
$
5

 
$
3

 
$
8

 
$
4

 
$
1

 
$
5

2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
1

 
$
1

 
 
 
 
 
 
     Interest cost
—

 
5

 
5

 
 
 
 
 
 
     Expected return on plan assets
—

 
(7
)
 
(7
)
 
 
 
 
 
 
     Amortization of net actuarial loss
—

 
1

 
1

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
—

 
$
—

 
 
 
 
 
 

Six Months Ended June 30
Pension Benefits
 
 
Other Postretirement Benefits
 
(in millions of U.S. dollars)
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
37

 
$
9

 
$
46

 
$
4

 
$
1

 
$
5

     Interest cost
54

 
16

 
70

 
9

 
—

 
9

     Expected return on plan assets
(79
)
 
(20
)
 
(99
)
 
(4
)
 
—

 
(4
)
     Amortization of net actuarial loss
—

 
2

 
2

 
—

 
—

 
—

             Net periodic benefit cost
$
12

 
$
7

 
$
19

 
$
9

 
$
1

 
$
10

2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
3

 
$
3

 
 
 
 
 
 
     Interest cost
—

 
10

 
10

 
 
 
 
 
 
     Expected return on plan assets
—

 
(14
)
 
(14
)
 
 
 
 
 
 
     Amortization of net actuarial loss
—

 
2

 
2

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
1

 
$
1

 
 
 
 
 
 


The weighted-average assumptions used to determine net pension and other postretirement benefit costs were as follows:
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
U.S. Plans

 
Non-U.S. Plans

June 30, 2016
 
 
 
 
 
 
 
Discount rate
4.28
%
 
3.74
%
 
4.41
%
 
4.30
%
Rate of compensation increase
4.00
%
 
3.40
%
 
N/A

 
N/A

Expected long-term rate of return on plan assets
7.00
%
 
4.90
%
 
7.00
%
 
N/A

December 31, 2015

 

 

 

Discount rate
N/A

 
3.51
%
 
N/A

 
N/A

Rate of compensation increase
N/A

 
3.09
%
 
N/A

 
N/A

Expected long-term rate of return on plan assets
N/A

 
4.81
%
 
N/A

 
N/A

Segment information
Segment information
Segment information

Effective the first quarter of 2016, we are reporting our 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. We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years and certain other run-off exposures. All legacy ACE prior period amounts (i.e., legacy Chubb Corp prior period results are not included in the prior period amounts in the tables below) have been adjusted to conform to the new segment presentation.

•
The North America Commercial P&C Insurance segment includes the business written by Chubb divisions that provide property and casualty (P&C) insurance and services to large, middle market and small commercial businesses in the U.S., Bermuda and Canada. These divisions write a variety of coverages, including traditional commercial property, marine, general casualty, workers’ compensation, package policies, and risk management; specialty categories such as professional lines, marine and construction risk, environmental and cyber risk, excess casualty, as well as group accident and health (A&H) insurance. This segment includes our North American Major Accounts and Specialty Insurance (principally large corporate accounts and wholesale business), and the North American Commercial Insurance divisions (principally middle market and small commercial accounts).

•
The North America Personal P&C Insurance segment includes the business written by Chubb’s North America Personal Risk Services division, which comprises Chubb high net worth personal lines business and ACE Private Risk Services, with operations in U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, automobile, valuables, umbrella and recreational marine insurance and services.

•
The North America Agricultural Insurance segment includes the business written by Rain and Hail Service, Inc. which provides comprehensive multiple peril crop and crop-hail insurance, and Chubb Agribusiness, which offers farm and ranch property as well as specialty P&C coverages, including commercial agriculture products.

•
The Overseas General Insurance segment includes the business written by two Chubb divisions that provide P&C insurance and services in the 51 countries outside of North America where the company operates.  Chubb International provides commercial P&C traditional and specialty lines serving large corporations, middle market and small customers, A&H and traditional and specialty personal lines through retail brokers, agents and other channels locally around the world. Chubb Global Markets provides commercial P&C excess and surplus lines and A&H through wholesale brokers in the London market and through Lloyd’s.  These divisions write a variety of coverages, including traditional commercial property and casualty, specialty categories such as financial lines, marine, energy, aviation, political risk and construction risk, as well as group A&H and traditional and specialty personal lines. 

•
The Global Reinsurance segment primarily includes the reinsurance business written by Chubb Tempest Re as well as the legacy Chubb U.K. Assumed Reinsurance business, which is active, and the legacy Chubb run-off Reinsurance business.

•
The Life Insurance segment includes the business written by Chubb Life, Chubb Tempest Life Re and Combined Insurance’s North America operations.

Corporate primarily includes loss and loss expenses of asbestos and environmental (A&E) run-off liabilities, and the results of our non-insurance companies including Chubb Limited, Chubb Group Management and Holdings Ltd, and Chubb INA Holdings, Inc. Our exposure to A&E claims principally arises out of liabilities acquired when we purchased Westchester Specialty in 1998, CIGNA’s P&C business in 1999, and legacy Chubb Corp run-off business in 2016, and certain other run-off exposures.

In addition, revenue and expenses managed at the corporate level, including realized gains and losses, interest expense, the non-operating income of our partially-owned entities, amortization of purchased intangibles, Chubb integration expenses, and income taxes will be reported within Corporate. The amortization of purchased intangibles includes amortization of agency distribution relationships and renewal rights, internally developed technology, and the fair value adjustment on acquired loss reserves. Also the amortization of fair value adjustments on acquired invested assets and debt associated with the Chubb Corp acquisition is considered a corporate cost and is therefore included in Corporate. These items will not be allocated to the segment level; therefore, the segment income statement will only include underwriting income, net investment income, and beginning with the second quarter of 2016, other operating income and expense items such as each segment's share of the operating income (loss) related to partially-owned entities and miscellaneous income and expense items that the segments are held accountable for. We determined that this definition of segment income is appropriate and aligns with how the business is managed. As we progress through the integration and refine our processes, we may continue to further refine our segments and segment income measures. The prior periods have been adjusted to conform to the new segment presentation. Chubb integration expenses are one-time in nature and are not related to the on-going business activities of the segments. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs and they are therefore excluded from our definition of segment income.

For segment reporting purposes, certain items have been presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main measure of segment performance. Chubb calculates underwriting income by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate segment income, include net investment income and other (income) expense. For the North America Agricultural segment, management includes gains and losses on crop derivatives as a component of underwriting income. For example, for the three months ended June 30, 2016, underwriting income in our North America Agricultural Insurance segment was $14 million. This amount includes $2 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) in the Corporate column below.

The following tables present the Statement of Operations by segment:
 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Three Months Ended
 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
3,245

 
$
1,231

 
$
375

 
$
2,031

 
$
230

 
$
527

 
$
—

 
$
7,639

Net premiums earned
3,148

 
1,140

 
327

 
2,093

 
185

 
512

 
—

 
7,405

Losses and loss expenses
1,971

 
661

 
284

 
1,089

 
87

 
147

 
15

 
4,254

Policy benefits
—

 
—

 
—

 
—

 
—

 
146

 
—

 
146

Policy acquisition costs
545

 
269

 
25

 
537

 
47

 
137

 
—

 
1,560

Administrative expenses
299

 
98

 
2

 
277

 
14

 
77

 
62

 
829

Underwriting income (loss)
333

 
112

 
16

 
190

 
37

 
5

 
(77
)
 
616

Net investment income (loss)
468

 
55

 
5

 
147

 
65

 
69

 
(101
)
 
708

Other (income) expense
(9
)
 
3

 
—

 
(5
)
 
(2
)
 
—

 
(16
)
 
(29
)
Segment income (loss)
810

 
164

 
21

 
342

 
104

 
74

 
(162
)
 
1,353

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(216
)
 
(216
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
153

 
153

Amortization of purchased intangibles
 
 
 
 
 
 
 
 
 
 
 
 
5

 
5

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
98

 
98

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
155

 
155

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(789
)
 
$
726


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Three Months Ended
 
 
 
 
 
June 30, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
1,428

 
$
547

 
$
379

 
$
1,669

 
$
261

 
$
500

 
$
—

 
$
4,784

Net premiums earned
1,419

 
269

 
321

 
1,644

 
220

 
487

 
—

 
4,360

Losses and loss expenses
916

 
156

 
271

 
816

 
72

 
137

 
49

 
2,417

Policy benefits
—

 
—

 
—

 
—

 
—

 
153

 
—

 
153

Policy acquisition costs
131

 
(1
)
 
23

 
396

 
60

 
118

 
—

 
727

Administrative expenses
154

 
34

 
4

 
254

 
13

 
74

 
45

 
578

Underwriting income (loss)
218

 
80

 
23

 
178

 
75

 
5

 
(94
)
 
485

Net investment income
262

 
7

 
6

 
139

 
79

 
66

 
3

 
562

Other (income) expense
1

 
—

 
1

 
(4
)
 
—

 
(7
)
 
(29
)
 
(38
)
Segment income (loss)
479

 
87

 
28

 
321

 
154

 
78

 
(62
)
 
1,085

Net realized gains (losses) including OTTI


 
 
 
 
 
 
 
 
 
 
 
126

 
126

Interest expense


 
 
 
 
 
 
 
 
 
 
 
71

 
71

Amortization of purchased intangibles


 
 
 
 
 
 
 
 
 
 
 
55

 
55

Income tax expense


 
 
 
 
 
 
 
 
 
 
 
143

 
143

Net income (loss)


 
 
 
 
 
 
 
 
 
 
 
$
(205
)
 
$
942


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Six Months Ended
 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
5,547

 
$
2,102

 
$
439

 
$
4,072

 
$
431

 
$
1,043

 
$
—

 
$
13,634

Net premiums earned
6,044

 
2,164

 
350

 
4,048

 
387

 
1,009

 
—

 
14,002

Losses and loss expenses
3,718

 
1,322

 
254

 
2,110

 
176

 
324

 
24

 
7,928

Policy benefits
—

 
—

 
—

 
—

 
—

 
272

 
—

 
272

Policy acquisition costs
1,027

 
518

 
29

 
1,040

 
100

 
259

 
—

 
2,973

Administrative expenses
565

 
186

 
(2
)
 
540

 
28

 
149

 
135

 
1,601

Underwriting income (loss)
734

 
138

 
69

 
358

 
83

 
5

 
(159
)
 
1,228

Net investment income (loss)
894

 
102

 
10

 
293

 
132

 
136

 
(185
)
 
1,382

Other (income) expense
(9
)
 
4

 
—

 
(10
)
 
(3
)
 
6

 
11

 
(1
)
Segment income (loss)
1,637

 
236

 
79

 
661

 
218

 
135

 
(355
)
 
2,611

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(610
)
 
(610
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
299

 
299

Amortization of purchased intangibles
 
 
 
 
 
 
 
 
 
 
 
 
12

 
12

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
246

 
246

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
279

 
279

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(1,801
)
 
$
1,165


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Six Months Ended
 
 
 
 
 
June 30, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
2,725

 
$
680

 
$
467

 
$
3,463

 
$
534

 
$
991

 
$
—

 
$
8,860

Net premiums earned
2,799

 
415

 
385

 
3,281

 
446

 
961

 
—

 
8,287

Losses and loss expenses
1,831

 
267

 
293

 
1,630

 
171

 
289

 
58

 
4,539

Policy benefits
—

 
—

 
—

 
—

 
—

 
295

 
—

 
295

Policy acquisition costs
261

 
30

 
19

 
785

 
114

 
225

 
—

 
1,434

Administrative expenses
305

 
53

 
3

 
510

 
25

 
147

 
89

 
1,132

Underwriting income (loss)
402

 
65

 
70

 
356

 
136

 
5

 
(147
)
 
887

Net investment income
520

 
12

 
12

 
277

 
154

 
132

 
6

 
1,113

Other (income) expense
(2
)
 
—

 
2

 
(6
)
 
(1
)
 
(16
)
 
(50
)
 
(73
)
Segment income (loss)
924

 
77

 
80

 
639

 
291

 
153

 
(91
)
 
2,073

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
37

 
37

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
139

 
139

Amortization of purchased intangibles
 
 
 
 
 
 
 
 
 
 
 
 
85

 
85

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
263

 
263

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(541
)
 
$
1,623



Underwriting assets are reviewed in total by management for purposes of decision-making. Other than goodwill and other intangible assets, Chubb does not allocate assets to its segments.
Earnings per share
Earnings per share
Earnings per share
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars, except share and per share data)
2016

 
2015

 
2016

 
2015

Numerator:
 
 
 
 
 
 
 
Net income
$
726

 
$
942

 
$
1,165

 
$
1,623

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
 
 
Weighted-average shares outstanding
467,701,328

 
325,463,196

 
457,102,802

 
326,795,838

Denominator for diluted earnings per share:
 
 
 
 

 

Share-based compensation plans
3,455,969

 
3,222,562

 
3,379,559

 
3,373,809

Weighted-average shares outstanding and assumed conversions
471,157,297

 
328,685,758

 
460,482,361

 
330,169,647

Basic earnings per share
$
1.55

 
$
2.89

 
$
2.55

 
$
4.97

Diluted earnings per share
$
1.54

 
$
2.86

 
$
2.53

 
$
4.91

Potential anti-dilutive share conversions
2,103,281

 
1,934,454

 
2,056,018

 
1,306,817



Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective periods.
Information provided in connection with outstanding debt of subsidiaries
Information provided in connection with outstanding debt of subsidiaries
Information provided in connection with outstanding debt of subsidiaries

In connection with the Chubb Corp acquisition, Chubb INA Holdings Inc., entered into a series of intercompany loans totaling $10 billion involving its parents, Chubb Group Holdings Inc. and Chubb Limited. The weighted-average interest rate is 3.3 percent with fixed interest rates ranging from 2.3 percent to 4.35 percent and various maturity dates from 2021 to 2046.

As part of the acquisition, Chubb INA Holdings Inc. assumed $3.3 billion par value outstanding debt of Chubb Corp, fair valued at $3.8 billion at the acquisition date. Chubb INA Holdings Inc. assumed Chubb Corp's rights, duties and obligations and Chubb Limited fully and unconditionally guarantees Chubb INA Holding Inc.'s payment obligations under these debts.

The following tables present condensed consolidating financial information at June 30, 2016 and December 31, 2015, and for the three and six months ended June 30, 2016 and 2015 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). The transactions noted above are reflected in the tables below. The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Parent Guarantor and Subsidiary Issuer are presented on the equity method of accounting. The revenues and expenses and cash flows of the subsidiaries of the Subsidiary Issuer are presented in the Other Chubb Limited Subsidiaries column on a combined basis.

Condensed Consolidating Balance Sheet at June 30, 2016
(in millions of U.S. dollars)
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
27

 
$
618

 
$
99,201

 
$
—

 
$
99,846

Cash (1)
1

 
207

 
1,825

 
(1,022
)
 
1,011

Insurance and reinsurance balances receivable
—

 
—

 
12,095

 
(3,563
)
 
8,532

Reinsurance recoverable on losses and loss expenses
—

 
—

 
23,071

 
(9,836
)
 
13,235

Reinsurance recoverable on policy benefits
—

 
—

 
1,185

 
(986
)
 
199

Value of business acquired
—

 
—

 
381

 
—

 
381

Goodwill and other intangible assets
—

 
—

 
22,923

 
—

 
22,923

Investments in subsidiaries
37,011

 
49,412

 
—

 
(86,423
)
 
—

Due from subsidiaries and affiliates, net
11,179

 
—

 
—

 
(11,179
)
 
—

Other assets
7

 
522

 
17,962

 
(4,415
)
 
14,076

Total assets
$
48,225

 
$
50,759

 
$
178,643

 
$
(117,424
)
 
$
160,203

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,026

 
$
(9,207
)
 
$
60,819

Unearned premiums
—

 
—

 
18,999

 
(3,770
)
 
15,229

Future policy benefits
—

 
—

 
5,961

 
(986
)
 
4,975

Due to subsidiaries and affiliates, net
—

 
11,036

 
143

 
(11,179
)
 
—

Affiliated notional cash pooling programs (1)
776

 
246

 
—

 
(1,022
)
 
—

Repurchase agreements
—

 
—

 
1,405

 
—

 
1,405

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,620

 
11

 
—

 
12,631

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
223

 
1,608

 
20,116

 
(4,837
)
 
17,110

Total liabilities
999

 
26,318

 
116,661

 
(31,001
)
 
112,977

Total shareholders’ equity
47,226

 
24,441

 
61,982

 
(86,423
)
 
47,226

Total liabilities and shareholders’ equity
$
48,225

 
$
50,759

 
$
178,643

 
$
(117,424
)
 
$
160,203


(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
 




Condensed Consolidating Balance Sheet at December 31, 2015

(in millions of U.S. dollars)
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
28

 
$
7,839

 
$
58,384

 
$
—

 
$
66,251

Cash (1)
1

 
2

 
2,743

 
(971
)
 
1,775

Insurance and reinsurance balances receivable
—

 
—

 
6,075

 
(752
)
 
5,323

Reinsurance recoverable on losses and loss expenses
—

 
—

 
20,124

 
(8,738
)
 
11,386

Reinsurance recoverable on policy benefits
—

 
—

 
1,129

 
(942
)
 
187

Value of business acquired
—

 
—

 
395

 
—

 
395

Goodwill and other intangible assets
—

 
—

 
5,683

 
—

 
5,683

Investments in subsidiaries
29,612

 
18,386

 
—

 
(47,998
)
 
—

Due from subsidiaries and affiliates, net
644

 
1,800

 
—

 
(2,444
)
 
—

Other assets
8

 
457

 
14,434

 
(3,593
)
 
11,306

Total assets
$
30,293

 
$
28,484

 
$
108,967

 
$
(65,438
)
 
$
102,306

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
45,490

 
$
(8,187
)
 
$
37,303

Unearned premiums
—

 
—

 
10,243

 
(1,804
)
 
8,439

Future policy benefits
—

 
—

 
5,749

 
(942
)
 
4,807

Due to subsidiaries and affiliates, net
—

 
—

 
2,444

 
(2,444
)
 
—

Affiliated notional cash pooling programs (1)
882

 
89

 
—

 
(971
)
 
—

Repurchase agreements
—

 
—

 
1,404

 
—

 
1,404

Long-term debt
—

 
9,378

 
11

 
—

 
9,389

Trust preferred securities
—

 
307

 
—

 
—

 
307

Other liabilities
276

 
1,422

 
12,916

 
(3,092
)
 
11,522

Total liabilities
1,158

 
11,196

 
78,257

 
(17,440
)
 
73,171

Total shareholders’ equity
29,135

 
17,288

 
30,710

 
(47,998
)
 
29,135

Total liabilities and shareholders’ equity
$
30,293

 
$
28,484

 
$
108,967

 
$
(65,438
)
 
$
102,306

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
7,639

 
$
—

 
$
7,639

Net premiums earned
—

 
—

 
7,405

 
—

 
7,405

Net investment income
1

 
3

 
704

 
—

 
708

Equity in earnings of subsidiaries
664

 
549

 
—

 
(1,213
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(1
)
 
(214
)
 
—

 
(216
)
Losses and loss expenses
—

 
—

 
4,254

 
—

 
4,254

Policy benefits
—

 
—

 
146

 
—

 
146

Policy acquisition costs and administrative expenses
16

 
96

 
2,277

 
—

 
2,389

Interest (income) expense
(93
)
 
233

 
13

 
—

 
153

Other (income) expense
(4
)
 
10

 
(35
)
 
—

 
(29
)
Amortization of purchased intangibles
—

 
—

 
5

 
—

 
5

Chubb integration expenses
14

 
(97
)
 
181

 
—

 
98

Income tax expense (benefit)
5

 
(37
)
 
187

 
—

 
155

Net income
$
726

 
$
346

 
$
867

 
$
(1,213
)
 
$
726

Comprehensive income
$
1,540

 
$
1,004

 
$
1,681

 
$
(2,685
)
 
$
1,540


During the second quarter of 2016, we refined our internal expense allocation processes and as a result we were able to more precisely identify which of our wholly-owned subsidiaries were responsible for specific Chubb integration expenses and subsequently transferred Chubb integration expenses of $97 million and income tax benefit of $34 million from Chubb INA Holdings Inc. to the Other Chubb Limited Subsidiaries column above. The offsetting movement is within Equity in earnings of subsidiaries in the Chubb INA Holdings Inc. column above.

Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended June 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
4,784

 
$
—

 
$
4,784

Net premiums earned
—

 
—

 
4,360

 
—

 
4,360

Net investment income
—

 
—

 
562

 
—

 
562

Equity in earnings of subsidiaries
901

 
296

 
—

 
(1,197
)
 
—

Net realized gains (losses) including OTTI
—

 
(2
)
 
128

 
—

 
126

Losses and loss expenses
—

 
—

 
2,417

 
—

 
2,417

Policy benefits
—

 
—

 
153

 
—

 
153

Policy acquisition costs and administrative expenses
18

 
7

 
1,280

 
—

 
1,305

Interest (income) expense
(7
)
 
69

 
9

 
—

 
71

Other (income) expense
(57
)
 
(4
)
 
23

 
—

 
(38
)
Amortization of purchased intangibles
—

 
—

 
55

 
—

 
55

Income tax expense (benefit)
5

 
(27
)
 
165

 
—

 
143

Net income
$
942

 
$
249

 
$
948

 
$
(1,197
)
 
$
942

Comprehensive income (loss)
$
397

 
$
(91
)
 
$
403

 
$
(312
)
 
$
397




Condensed Consolidating Statements of Operations and Comprehensive Income
Six Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
13,634

 
$
—

 
$
13,634

Net premiums earned
—

 
—

 
14,002

 
—

 
14,002

Net investment income
2

 
7

 
1,373

 
—

 
1,382

Equity in earnings of subsidiaries
1,039

 
1,055

 
—

 
(2,094
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(1
)
 
(608
)
 
—

 
(610
)
Losses and loss expenses
—

 
—

 
7,928

 
—

 
7,928

Policy benefits
—

 
—

 
272

 
—

 
272

Policy acquisition costs and administrative expenses
33

 
132

 
4,409

 
—

 
4,574

Interest (income) expense
(173
)
 
448

 
24

 
—

 
299

Other (income) expense
(13
)
 
20

 
(8
)
 
—

 
(1
)
Amortization of purchased intangibles
—

 
—

 
12

 
—

 
12

Chubb integration expenses
17

 
40

 
189

 
—

 
246

Income tax expense (benefit)
11

 
(187
)
 
455

 
—

 
279

Net income
$
1,165

 
$
608

 
$
1,486

 
$
(2,094
)
 
$
1,165

Comprehensive income
$
3,081

 
$
2,060

 
$
3,402

 
$
(5,462
)
 
$
3,081


Condensed Consolidating Statements of Operations and Comprehensive Income
Six Months Ended June 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
8,860

 
$
—

 
$
8,860

Net premiums earned
—

 
—

 
8,287

 
—

 
8,287

Net investment income
1

 
1

 
1,111

 
—

 
1,113

Equity in earnings of subsidiaries
1,549

 
500

 
—

 
(2,049
)
 
—

Net realized gains (losses) including OTTI
—

 
(2
)
 
39

 
—

 
37

Losses and loss expenses
—

 
—

 
4,539

 
—

 
4,539

Policy benefits
—

 
—

 
295

 
—

 
295

Policy acquisition costs and administrative expenses
32

 
13

 
2,521

 
—

 
2,566

Interest (income) expense
(15
)
 
138

 
16

 
—

 
139

Other (income) expense
(98
)
 
(7
)
 
32

 
—

 
(73
)
Amortization of purchased intangibles
—

 
—

 
85

 
—

 
85

Income tax expense (benefit)
8

 
(53
)
 
308

 
—

 
263

Net income
$
1,623

 
$
408

 
$
1,641

 
$
(2,049
)
 
$
1,623

Comprehensive income (loss)
$
1,039

 
$
(67
)
 
$
1,057

 
$
(990
)
 
$
1,039






Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from operating activities
$
3,213

 
$
4,050

 
$
2,262

 
$
(7,372
)
 
$
2,153

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturities available for sale
—

 
(83
)
 
(16,994
)
 
—

 
(17,077
)
Purchases of fixed maturities held to maturity
—

 
—

 
(121
)
 
—

 
(121
)
Purchases of equity securities
—

 
—

 
(78
)
 
—

 
(78
)
Sales of fixed maturities available for sale
—

 
—

 
11,868

 
—

 
11,868

Sales of equity securities
—

 
—

 
932

 
—

 
932

Maturities and redemptions of fixed maturities available for sale
—

 
—

 
3,910

 
—

 
3,910

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
443

 
—

 
443

Net change in short-term investments
—

 
7,829

 
3,882

 
—

 
11,711

Net derivative instruments settlements
—

 
(10
)
 
(83
)
 
—

 
(93
)
Acquisition of subsidiaries (net of cash acquired of $71)
—

 
(14,282
)
 
34

 
—

 
(14,248
)
Capital contribution
(2,330
)
 
—

 
(2,330
)
 
4,660

 
—

Other
—

 
(3
)
 
84

 
—

 
81

Net cash flows (used for) from investing activities
(2,330
)
 
(6,549
)
 
1,547

 
4,660

 
(2,672
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(530
)
 
—

 
—

 
—

 
(530
)
Proceeds from issuance of repurchase agreements
—

 
—

 
904

 
—

 
904

Repayment of repurchase agreements
—

 
—

 
(902
)
 
—

 
(902
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
92

 
—

 
92

Dividend to parent company
—

 
—

 
(7,372
)
 
7,372

 
—

Advances (to) from affiliates
(247
)
 
221

 
26

 
—

 
—

Capital contribution
—

 
2,330

 
2,330

 
(4,660
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(106
)
 
157

 
—

 
(51
)
 
—

Policyholder contract deposits
—

 
—

 
274

 
—

 
274

Policyholder contract withdrawals
—

 
—

 
(103
)
 
—

 
(103
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows (used for) from financing activities
(883
)
 
2,704

 
(4,751
)
 
2,661

 
(269
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
24

 
—

 
24

Net increase (decrease) in cash
—

 
205

 
(918
)
 
(51
)
 
(764
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
1

 
$
207

 
$
1,825

 
$
(1,022
)
 
$
1,011

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from (used for) operating activities
$
65

 
$
(35
)
 
$
1,861

 
$
—

 
$
1,891

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturities available for sale
—

 
—

 
(9,210
)
 
—

 
(9,210
)
Purchases of fixed maturities held to maturity
—

 
—

 
(24
)
 
—

 
(24
)
Purchases of equity securities
—

 
—

 
(70
)
 
—

 
(70
)
Sales of fixed maturities available for sale
—

 
—

 
3,642

 
—

 
3,642

Sales of equity securities
—

 
—

 
102

 
—

 
102

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
3,691

 
—

 
3,691

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
470

 
—

 
470

Net change in short-term investments
—

 
190

 
38

 
—

 
228

Net derivative instruments settlements
—

 
(9
)
 
(24
)
 
—

 
(33
)
Acquisition of subsidiaries (net of cash acquired of $620)
—

 
—

 
255

 
—

 
255

Other
—

 
(2
)
 
(69
)
 
—

 
(71
)
Net cash flows from (used for) investing activities
—

 
179

 
(1,199
)
 
—

 
(1,020
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(427
)
 
—

 
—

 
—

 
(427
)
Common Shares repurchased
—

 
—

 
(750
)
 
—

 
(750
)
Proceeds from issuance of long-term debt
—

 
800

 
—

 
—

 
800

Proceeds from issuance of repurchase agreements
—

 
—

 
1,327

 
—

 
1,327

Repayment of long-term debt
—

 
(450
)
 
—

 
—

 
(450
)
Repayment of repurchase agreements
—

 
—

 
(1,327
)
 
—

 
(1,327
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
46

 
—

 
46

Advances (to) from affiliates
223

 
(214
)
 
(9
)
 
—

 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
140

 
(272
)
 
—

 
132

 
—

Policyholder contract deposits
—

 
—

 
235

 
—

 
235

Policyholder contract withdrawals
—

 
—

 
(107
)
 
—

 
(107
)
Other
—

 
(6
)
 
—

 
—

 
(6
)
Net cash flows used for financing activities
(64
)
 
(142
)
 
(585
)
 
132

 
(659
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
(77
)
 
—

 
(77
)
Net increase in cash
1

 
2

 
—

 
132

 
135

Cash – beginning of period(1)
—

 
1

 
1,209

 
(555
)
 
655

Cash – end of period(1)
$
1

 
$
3

 
$
1,209

 
$
(423
)
 
$
790


(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2015 and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
General (Policies)
Basis of presentation 
a) Basis of presentation
On January 14, 2016, we completed the acquisition of The Chubb Corporation (Chubb Corp), creating a global leader in property and casualty insurance. We have changed our name from ACE Limited to Chubb Limited and plan to adopt the Chubb name globally, although some subsidiaries may continue to use ACE as a part of their name.

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Effective the first quarter of 2016, our results are reported through 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. This reflects our significantly larger and expanded operations subsequent to our acquisition of Chubb Corp. We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of our run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years, and certain run-off exposures. Prior period amounts of Chubb Limited (i.e., excluding the historical results of Chubb Corp) contained in this report have been adjusted to conform to the new segment presentation. Refer to Note 12 for additional information.

The interim unaudited consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated.

The results of operations and cash flows of Chubb Corp are included from the acquisition date forward (i.e., after January 14, 2016). The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2015 Form 10-K.

Accounting guidance adopted in 2016 
b) Accounting guidance adopted in 2016

Presentation of Debt Issuance Costs
In April 2015, the Financial Accounting Standard Board (FASB) issued new guidance related to the accounting for debt issuance costs.  The new guidance requires presentation of debt issuance costs in the Consolidated balance sheets as a reduction of the carrying amount of the related debt liability instead of as a deferred charge. We retrospectively adopted this guidance effective January 1, 2016 and reclassified $60 million of debt issuance costs from Other assets to Long term debt ($58 million) and Trust preferred securities ($2 million) as of December 31, 2015.
Accounting guidance not yet adopted 
c) Accounting guidance not yet adopted

Revenue from Contracts with Customers
In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our claims management and risk control services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The standard is effective for us in the first quarter of 2018 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on our financial condition or results of operations.

Short-Duration Contracts
In May 2015, the FASB issued guidance that requires additional disclosures for short-duration insurance contracts. New disclosure will be required to provide more information about initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The guidance is effective for us beginning with our 2016 annual reporting on Form 10-K. The guidance requires a change in disclosure only and adoption of this guidance will not have an impact on our financial condition or results of operations.

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB issued guidance that affects the recognition, measurement, presentation, and disclosure of financial instruments. The guidance requires equity investments to be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) and an assessment of a valuation allowance on deferred tax assets related to unrealized losses of available for sale debt securities in combination with other deferred tax assets. The standard is effective for us in the first quarter of 2018. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations.

Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued guidance on the accounting for credit losses of financial instruments that are measured at amortized cost, including held to maturity securities and reinsurance recoverables, by applying an approach based on the current expected credit losses (CECL). The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset in order to present the net carrying value at the amount expected to be collected on the financial asset on the consolidated balance sheet.

The guidance also amends the current available for sale (AFS) security other-than-temporary impairment model by requiring an estimate of the expected credit loss (ECL) only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. The AFS debt security model will also require the use of a valuation allowance.

The standard is effective for us in the first quarter of 2020 with early adoption permitted in the first quarter of 2019. We will be able to assess the impact of adopting this guidance on our financial condition and results of operations closer to the date of adoption.

Stock Compensation
In March 2016, the FASB issued guidance which requires recognition of the excess tax benefits or deficiencies of awards through net income rather than through additional paid in capital. Additionally, entities can elect to account for forfeitures related to share-based payments either as they occur or through an estimation method. If elected, the change to recognize forfeitures as they occur would be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to retained earnings. The updated guidance is effective for us in the first quarter of 2017 with early adoption permitted. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations.
Acquisitions Acquisitions (Tables)
Schedule of Assets Acquired and Liabilities Assumed in the Chubb Corp Acquisition [Table Text Block] 
 
 
(in millions, except per share data)
 
Purchase consideration
 
Chubb Limited common shares
 
Chubb Corp common shares outstanding
228

Per share exchange ratio
0.6019

Common shares issued by Chubb Limited
137

Common share price of Chubb Limited at January 14, 2016
$
111.02

Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp
$
15,204

Cash consideration
 
Chubb Corp common shares outstanding
228

Agreed cash price per share paid to common shareholders of Chubb Corp
$
62.93

Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp
$
14,319

Stock-based awards
 
Fair value of equity awards issued (1)
$
323

Fair value of purchase consideration
$
29,846

Preliminary estimate of assets acquired and (liabilities) assumed
 
Cash
$
71

Investments
42,967

Accrued investment income
337

Insurance and reinsurance balances receivable
2,981

Reinsurance recoverable on losses and loss expenses
1,650

Indefinite lived intangible assets
2,860

Finite lived intangible assets
4,795

Prepaid reinsurance premiums
280

Other assets
863

Unpaid losses and loss expenses
(22,906
)
Unearned premium
(7,033
)
Insurance and reinsurance balances payable
(511
)
Accounts payable, accrued expenses, and other liabilities
(1,935
)
Deferred tax liabilities
(1,334
)
Long-term debt
(3,765
)
Total identifiable net assets acquired
19,320

Goodwill
10,526

Purchase price
$
29,846

(1) 
The estimated fair value of the replacement equity awards was $525 million, of which $323 million was attributed to service periods prior to the acquisition and was included in the purchase consideration. Refer to Note 10 for further information on these replacement equity awards.
Results of Operations From Date of Business Combination [Table Text Block] 
(in millions of U.S. dollars)
Three Months Ended June 30, 2016

 
January 14, 2016 to June 30, 2016

Total revenues
$
2,745

 
$
5,232

Net income
$
326

 
$
581

Pro Forma Financial Information for the Chubb Corp Acquisition [Table Text Block] 
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars, except per share data)
2016

 
2015

 
2016

 
2015

Total revenues
$
7,915

 
$
8,378

 
$
15,237

 
$
16,073

Net income
$
712

 
$
1,199

 
$
1,246

 
$
2,158

Earnings per share
 
 
 
 
 
 
 
Basic earnings per share
$
1.52

 
$
2.57

 
$
2.67

 
$
4.62

Diluted earnings per share
$
1.51

 
$
2.55

 
$
2.65

 
$
4.57

Investments (Tables)
Schedule Of Amortized Cost And Fair Value Of Fixed Maturities And Related OTTI Recognized In AOCI 
June 30, 2016
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,595

 
$
103

 
$
—

 
$
2,698

 
$
—

Foreign
21,633

 
916

 
(69
)
 
22,480

 
(13
)
Corporate securities
21,714

 
846

 
(125
)
 
22,435

 
(16
)
Mortgage-backed securities
12,369

 
400

 
(5
)
 
12,764

 
(1
)
States, municipalities, and political subdivisions
19,125

 
454

 
(5
)
 
19,574

 
—

 
$
77,436

 
$
2,719

 
$
(204
)
 
$
79,951

 
$
(30
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
686

 
$
30

 
$
—

 
$
716

 
$
—

Foreign
730

 
44

 
(1
)
 
773

 
—

Corporate securities
2,882

 
137

 
(4
)
 
3,015

 
—

Mortgage-backed securities
1,600

 
77

 
(1
)
 
1,676

 
—

States, municipalities, and political subdivisions
5,192

 
209

 
—

 
5,401

 
—

 
$
11,090

 
$
497

 
$
(6
)
 
$
11,581

 
$
—


December 31, 2015
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,481

 
$
52

 
$
(5
)
 
$
2,528

 
$
—

Foreign
13,190

 
468

 
(213
)
 
13,445

 
(13
)
Corporate securities
15,028

 
355

 
(454
)
 
14,929

 
(28
)
Mortgage-backed securities
9,827

 
183

 
(52
)
 
9,958

 
(1
)
States, municipalities, and political subdivisions
2,623

 
110

 
(6
)
 
2,727

 
—

 
$
43,149

 
$
1,168

 
$
(730
)
 
$
43,587

 
$
(42
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
733

 
$
13

 
$
(1
)
 
$
745

 
$
—

Foreign
763

 
30

 
(8
)
 
785

 
—

Corporate securities
3,054

 
57

 
(55
)
 
3,056

 
—

Mortgage-backed securities
1,707

 
38

 
(2
)
 
1,743

 
—

States, municipalities, and political subdivisions
2,173

 
52

 
(2
)
 
2,223

 
—

 
$
8,430

 
$
190

 
$
(68
)
 
$
8,552

 
$
—

Schedule Of Fixed Maturities By Contractual Maturity 
 
 
 
June 30

 
 
 
December 31

 
 
 
2016

 
 
 
2015

(in millions of U.S. dollars)
Amortized Cost

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
3,485

 
$
3,501

 
$
1,856

 
$
1,865

Due after 1 year through 5 years
25,540

 
26,174

 
14,936

 
15,104

Due after 5 years through 10 years
25,905

 
26,685

 
12,258

 
12,173

Due after 10 years
10,137

 
10,827

 
4,272

 
4,487

 
65,067

 
67,187

 
33,322

 
33,629

Mortgage-backed securities
12,369

 
12,764

 
9,827

 
9,958

 
$
77,436

 
$
79,951

 
$
43,149

 
$
43,587

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
368

 
$
372

 
$
492

 
$
495

Due after 1 year through 5 years
2,614

 
2,716

 
2,443

 
2,517

Due after 5 years through 10 years
2,942

 
3,063

 
2,292

 
2,313

Due after 10 years
3,566

 
3,754

 
1,496

 
1,484

 
9,490

 
9,905

 
6,723

 
6,809

Mortgage-backed securities
1,600

 
1,676

 
1,707

 
1,743

 
$
11,090

 
$
11,581

 
$
8,430

 
$
8,552

Schedule Of Cost And Fair Value Of Equity Securities 

June 30


December 31

(in millions of U.S. dollars)
2016


2015

Cost
$
703

 
$
441

Gross unrealized appreciation
103

 
74

Gross unrealized depreciation
(19
)
 
(18
)
Fair value
$
787

 
$
497

Schedule Of Net Realized Gains (Losses) And The Losses Included In Net Realized Gains (Losses) And OCI 
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
June 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Fixed maturities:
 
 
 
 
 
 
OTTI on fixed maturities, gross
$
(11
)
 
$
(13
)
$
(78
)
 
$
(26
)
OTTI on fixed maturities recognized in OCI (pre-tax)
—

 
6

8

 
6

OTTI on fixed maturities, net
(11
)
 
(7
)
(70
)

(20
)
Gross realized gains excluding OTTI
37

 
28

102

 
72

Gross realized losses excluding OTTI
(19
)
 
(16
)
(215
)
 
(51
)
Total fixed maturities
7

 
5

(183
)

1

Equity securities:
 
 
 
 
 
 
OTTI on equity securities
(5
)
 
(1
)
(6
)
 
(1
)
Gross realized gains excluding OTTI
4

 
30

44

 
33

Gross realized losses excluding OTTI
(4
)
 
—

(5
)
 
(2
)
Total equity securities
(5
)
 
29

33


30

OTTI on other investments
—

 
—

(3
)
 
—

Foreign exchange gains (losses)
(22
)
 
(40
)
17

 
(71
)
Investment and embedded derivative instruments
(47
)
 
27

(86
)
 
28

Fair value adjustments on insurance derivative
(131
)
 
104

(359
)
 
59

S&P put options and futures
(28
)
 
(2
)
(43
)
 
(14
)
Other derivative instruments
—

 
(1
)
(2
)
 
(1
)
Other
10

 
4

16

 
5

Net realized gains (losses)
$
(216
)
 
$
126

$
(610
)

$
37

Schedule Of Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which A Portion Of OTTI Was Recognized In OCI 
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
June 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Balance of credit losses related to securities still held – beginning of period
$
57

 
$
22

$
53

 
$
28

Additions where no OTTI was previously recorded
1

 
4

12

 
7

Additions where an OTTI was previously recorded
6

 
1

12

 
2

Reductions for securities sold during the period
(13
)
 
(4
)
(26
)
 
(14
)
Balance of credit losses related to securities still held – end of period
$
51

 
$
23

$
51


$
23

Schedule Of Aggregate Fair Value And Gross Unrealized Loss By Length Of Time The Security Has Continuously Been In An Unrealized Loss Position 
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
June 30, 2016
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
Foreign
$
2,266

 
$
(27
)
 
$
673

 
$
(43
)
 
$
2,939

 
$
(70
)
Corporate securities
2,855

 
(61
)
 
1,047

 
(68
)
 
3,902

 
(129
)
Mortgage-backed securities
481

 
(3
)
 
414

 
(3
)
 
895

 
(6
)
States, municipalities, and political subdivisions
1,308

 
(4
)
 
60

 
(1
)
 
1,368

 
(5
)
Total fixed maturities
6,910

 
(95
)
 
2,194

 
(115
)
 
9,104

 
(210
)
Equity securities
186

 
(19
)
 
—

 
—

 
186

 
(19
)
Other investments
280

 
(27
)
 
—

 
—

 
280

 
(27
)
Total
$
7,376

 
$
(141
)
 
$
2,194

 
$
(115
)
 
$
9,570

 
$
(256
)
 
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2015
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
996

 
$
(5
)
 
$
153

 
$
(1
)
 
$
1,149

 
$
(6
)
Foreign
3,953

 
(148
)
 
436

 
(73
)
 
4,389

 
(221
)
Corporate securities
7,518

 
(371
)
 
738

 
(138
)
 
8,256

 
(509
)
Mortgage-backed securities
3,399

 
(42
)
 
516

 
(12
)
 
3,915

 
(54
)
States, municipalities, and political subdivisions
556

 
(6
)
 
42

 
(2
)
 
598

 
(8
)
Total fixed maturities
16,422

 
(572
)
 
1,885

 
(226
)
 
18,307

 
(798
)
Equity securities
131

 
(18
)
 
—

 
—

 
131

 
(18
)
Other investments
210

 
(11
)
 
—

 
—

 
210

 
(11
)
Total
$
16,763

 
$
(601
)
 
$
1,885

 
$
(226
)
 
$
18,648

 
$
(827
)
Schedule Of Components Of Restricted Assets 
 
June 30

 
December 31

(in millions of U.S. dollars)
2016

 
2015

Trust funds
$
12,271

 
$
11,862

Deposits with non-U.S. regulatory authorities
2,340

 
2,075

Deposits with U.S. regulatory authorities
2,241

 
1,242

Assets pledged under repurchase agreements
1,457

 
1,459

Other pledged assets
409

 
392

 
$
18,718

 
$
17,030

Fair value measurements (Tables)
Financial Instruments Measured At Fair Value On A Recurring Basis 
June 30, 2016
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,155

 
$
543

 
$
—

 
$
2,698

Foreign
—

 
22,393

 
87

 
22,480

Corporate securities
—

 
22,154

 
281

 
22,435

Mortgage-backed securities
—

 
12,715

 
49

 
12,764

States, municipalities, and political subdivisions
—

 
19,574

 
—

 
19,574

 
2,155

 
77,379

 
417

 
79,951

Equity securities
750

 
—

 
37

 
787

Short-term investments
2,321

 
1,260

 
50

 
3,631

Other investments (1)
369

 
240

 
216

 
825

Securities lending collateral
—

 
1,142

 
—

 
1,142

Investment derivative instruments
18

 
—

 
—

 
18

Other derivative instruments
7

 
—

 
—

 
7

Separate account assets
1,592

 
95

 
—

 
1,687

Total assets measured at fair value (1)
$
7,212

 
$
80,116

 
$
720

 
$
88,048

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
71

 
$
—

 
$
—

 
$
71

Other derivative instruments
4

 
—

 
10

 
14

GLB (2)
—

 
—

 
971

 
971

Total liabilities measured at fair value
$
75

 
$
—

 
$
981

 
$
1,056

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,537 million and other investments of $25 million at June 30, 2016 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
 
December 31, 2015
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
1,712

 
$
816

 
$
—

 
$
2,528

Foreign
—

 
13,388

 
57

 
13,445

Corporate securities
—

 
14,755

 
174

 
14,929

Mortgage-backed securities
—

 
9,905

 
53

 
9,958

States, municipalities, and political subdivisions
—

 
2,727

 
—

 
2,727

 
1,712

 
41,591

 
284

 
43,587

Equity securities
481

 
—

 
16

 
497

Short-term investments
7,171

 
3,275

 
—

 
10,446

Other investments (1)
347

 
230

 
212

 
789

Securities lending collateral
—

 
1,046

 
—

 
1,046

Investment derivative instruments
12

 
—

 
—

 
12

Separate account assets
1,464

 
88

 
—

 
1,552

Total assets measured at fair value (1)
$
11,187

 
$
46,230

 
$
512

 
$
57,929

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
13

 
$
—

 
$
—

 
$
13

Other derivative instruments
4

 
—

 
6

 
10

GLB (2)
—

 
—

 
609

 
609

Total liabilities measured at fair value
$
17

 
$
—

 
$
615

 
$
632


(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,477 million and other investments of $25 million at December 31, 2015 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
Fair Value And Maximum Future Funding Commitments Related To Investments 
 
 
 
 
 
June 30

 
 
 
December 31

 
Expected
Liquidation
Period of Underlying Assets
 
 
 
2016

 
 
 
2015

(in millions of U.S. dollars)
Fair
Value

 
Maximum
Future Funding
Commitments

 
Fair
Value

 
Maximum
Future Funding
Commitments

Financial
5 to 9 Years
 
$
571

 
$
201

 
$
300

 
$
105

Real Assets
3 to 7 Years
 
520

 
304

 
474

 
140

Distressed
5 to 9 Years
 
456

 
200

 
261

 
218

Private Credit
3 to 7 Years
 
262

 
335

 
265

 
209

Traditional
3 to 9 Years
 
1,451

 
1,054

 
895

 
152

Vintage
1 to 2 Years
 
34

 
14

 
13

 
—

Investment funds
Not Applicable
 
243

 
—

 
269

 
—

 
 
 
$
3,537

 
$
2,108

 
$
2,477

 
$
824

Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations 
(in millions of U.S. dollars, except for percentages)
Fair Value
 
 
Valuation
Technique
 
Significant
Unobservable Inputs
 
Ranges
June 30, 2016

 
December 31, 2015

 
 
 
GLB(1)
$
971

 
$
609

 
Actuarial model
 
Lapse rate
 
1% – 30%
 
 
 
 
 
 
 
Annuitization rate
 
0% – 55%
(1) 
Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits.
Financial Instruments Measured At Fair Value Using Significant Unobservable Inputs 
 
 
 
 
 
 
 
 
 
Assets

 
 
Liabilities

Six Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

June 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance–Beginning of Period
$
57

 
$
174

 
$
53

 
$
16

$
—

$
212

 
$
6

$
609

Transfers into Level 3
9

 
18

 
—

 
—

—

—

 
—

—

Transfers out of Level 3
(2
)
 
—

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
9

 
11

 
—

 
(1
)
—

—

 
—

—

Net Realized Gains/Losses
(6
)
 
(8
)
 
—

 
1

—

—

 
2

362

Purchases (2)
32

 
124

 
1

 
23

50

14

 
2

—

Sales
(8
)
 
(30
)
 
(5
)
 
(2
)
—

—

 
—

—

Settlements
(4
)
 
(8
)
 
—

 
—

—

(10
)
 
—

—

Balance–End of Period
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(5
)
 
$
(7
)
 
$
—

 
$
—

$
—

$
—

 
$
2

$
362

(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

  
 
Assets
 
 
 
Liabilities

Six Months Ended
 
Available-for-Sale Debt Securities
 
 
 
 
Other investments

 
Other
derivative
instruments

GLB(1)

June 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
Equity
securities

 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
22

 
$
187

 
$
15

 
$
2

 
$
204

 
$
4

$
406

Transfers into Level 3
 
28

 
13

 
—

 
—

 
—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
 
(2
)
 
—

 
—

 
—

 
—

 
—

—

Net Realized Gains/Losses
 
—

 
(3
)
 
—

 
(1
)
 
—

 
(1
)
(59
)
Purchases
 
9

 
16

 
41

 
1

 
16

 
—

—

Sales
 
(1
)
 
(5
)
 
—

 
—

 
—

 
—

—

Settlements
 
—

 
(41
)
 
(1
)
 
—

 
(6
)
 
—

—

Balance–End of Period
 
$
56


$
167


$
55

 
$
2


$
214

 
$
3

$
347

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
—

 
$
(2
)
 
$
—

 
$
(1
)
 
$
—

 
$
(1
)
$
(59
)
(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $615 million at June 30, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $347 million and $406 million, respectively.
 
Assets
 
 
 
Liabilities

Three Months Ended
 
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

June 30, 2016
 
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
 
Balance–Beginning of Period
 
$
62

 
$
261

 
$
48

 
$
29

$
—

$
211

 
$
10

$
839

Transfers into Level 3
 
3

 
2

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
 
3

 
9

 
—

 
(1
)
—

—

 
—

—

Net Realized Gains/Losses
 
(1
)
 
(2
)
 
—

 
1

—

—

 
—

132

Purchases
 
27

 
31

 
1

 
10

50

8

 
—

—

Sales
 
(7
)
 
(16
)
 
—

 
(2
)
—

—

 
—

—

Settlements
 
—

 
(4
)
 
—

 
—

—

(3
)
 
—

—

Balance–End of Period
 
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
(1
)
 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
—

$
132

(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.



  
 
Assets
 
 
 
 
Liabilities

Three Months Ended
 
Available-for-Sale Debt Securities
 
 
Equity
securities

 
Other
investments

 
Other derivative instruments

 
GLB(1)

June 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
22

 
$
167

 
$
33

 
$
2

 
$
208

 
$
4

 
$
451

Transfers into Level 3
 
28

 
12

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
 
(2
)
 
(3
)
 
—

 
—

 
2

 
—

 
—

Net Realized Gains/Losses
 
—

 
—

 
—

 
(1
)
 
—

 
(1
)
 
(104
)
Purchases
 
8

 
8

 
23

 
1

 
7

 
—

 
—

Sales
 
—

 
(2
)
 
—

 
—

 
—

 
—

 
—

Settlements
 
—

 
(15
)
 
(1
)
 
—

 
(3
)
 
—

 
—

Balance–End of Period
 
$
56

 
$
167

 
$
55

 
$
2

 
$
214

 
$
3

 
$
347

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
—

 
$
(1
)
 
$
(104
)
(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $615 million at June 30, 2015, and $716 million at March 31, 2015, which includes a fair value derivative adjustment of $347 million and $451 million, respectively.
Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value 
June 30, 2016
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
605

 
$
111

 
$
—

 
$
716

 
$
686

Foreign
—

 
773

 
—

 
773

 
730

Corporate securities
—

 
3,002

 
13

 
3,015

 
2,882

Mortgage-backed securities
—

 
1,676

 
—

 
1,676

 
1,600

States, municipalities, and political subdivisions
—

 
5,401

 
—

 
5,401

 
5,192

Total assets
$
605

 
$
10,963

 
$
13

 
$
11,581

 
$
11,090

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,405

 
$
—

 
$
1,405

 
$
1,405

Short-term debt
—

 
514

 
—

 
514

 
500

Long-term debt
—

 
13,633

 
—

 
13,633

 
12,631

Trust preferred securities
—

 
451

 
—

 
451

 
308

Total liabilities
$
—

 
$
16,003

 
$
—

 
$
16,003

 
$
14,844


December 31, 2015
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
583

 
$
162

 
$
—

 
$
745

 
$
733

Foreign
—

 
785

 
—

 
785

 
763

Corporate securities
—

 
3,042

 
14

 
3,056

 
3,054

Mortgage-backed securities
—

 
1,743

 
—

 
1,743

 
1,707

States, municipalities, and political subdivisions
—

 
2,223

 
—

 
2,223

 
2,173

Total assets
$
583


$
7,955


$
14


$
8,552


$
8,430

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,404

 
$
—

 
$
1,404

 
$
1,404

Long-term debt
—

 
9,678

 
—

 
9,678

 
9,389

Trust preferred securities
—

 
446

 
—

 
446

 
307

Total liabilities
$
—

 
$
11,528

 
$
—

 
$
11,528

 
$
11,100

Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts (Tables)
Schedule Of Guaranteed Minimum Death Benefits And Guaranteed Minimum Income Benefits Income And Expense
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars)
2016

 
2015

 
2016

 
2015

GMDB
 
 
 
 
 
 
 
Net premiums earned
$
13

 
$
16

 
$
27

 
$
32

Policy benefits and other reserve adjustments
$
15

 
$
11

 
$
23

 
$
20

GLB
 
 
 
 
 
 
 
Net premiums earned
$
31

 
$
30

 
$
60

 
$
62

Policy benefits and other reserve adjustments
4

 
7

 
15

 
19

Net realized gains (losses)
(137
)
 
104

 
(371
)
 
59

Loss recognized in Net income
$
(110
)
 
$
127

 
$
(326
)
 
$
102

Less: Net cash received
24

 
26

 
42

 
54

Net (increase) decrease in liability
$
(134
)
 
$
101

 
$
(368
)
 
$
48

Goodwill and other intangible assets Goodwill and other intangible assets (Tables)
Schedule of Goodwill [Table Text Block] 
The following table presents a roll-forward of Goodwill by segment for the six months ended June 30, 2016:
(in millions of U.S. dollars)
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global Reinsurance

 
Life Insurance

 
Chubb Consolidated

Balance at December 31, 2015
$
1,203

 
$
196

 
$
134

 
$
2,078

 
$
365

 
$
820

 
$
4,796

Acquisition of Chubb Corp
5,712

 
2,025

 
—

 
2,789

 
—

 
—

 
10,526

Foreign exchange revaluation
58

 
18

 
—

 
126

 
—

 
1

 
203

Balance at June 30, 2016
$
6,973

 
$
2,239

 
$
134

 
$
4,993

 
$
365

 
$
821

 
$
15,525

Intangible assets acquired as part of Chubb Corp acquisition 
(in millions of U.S. dollars)
Preliminary purchase price allocation

 
Estimated useful life
Definite life
 
 
 
Unearned premium reserves (UPR) intangible asset
$
1,550

 
1 year
Agency distribution relationships and renewal rights
3,150

 
24 years
Internally developed technology
95

 
3 years
Indefinite life
 
 
 
Trademarks
2,800

 
Indefinite
Licenses
50

 
Indefinite
Syndicate capacity
10

 
Indefinite
Total identified intangible assets
$
7,655

 
 
Intangible Asset Amortization for the Next 5 Years [Table Text Block] 
 
Associated with the Chubb Corp Acquisition
 
 
 
For the Year Ending December 31
(in millions of U.S. dollars)
Agency distribution relationships and renewal rights

Internally developed technology

Fair value adjustment to Unpaid losses and loss expense

Total

Other intangible assets

Total Amortization of purchased intangibles

Third quarter of 2016
$
33

$
8

$
(61
)
$
(20
)
$
23

$
3

Fourth quarter of 2016
33

8

(61
)
(20
)
23

3

2017
296

32

(160
)
168

85

253

2018
324

32

(101
)
255

74

329

2019
281

—

(62
)
219

66

285

2020
240

—

(35
)
205

59

264

2021
217

—

(20
)
197

53

250

Total
$
1,424

$
80

$
(500
)
$
1,004

$
383

$
1,387

Future Changes in Deferred Tax Liabilities Resulting From Amortization of Intangible Assets [Table Text Block] 
 
Associated with the Chubb Corp Acquisition

For the Year Ending December 31, 2016
(in millions of U.S. dollars)
Amortization of UPR intangible asset

Third quarter of 2016
$
320

Fourth quarter of 2016
144

Total
$
464

Debt (Tables)
Schedule of Debt [Table Text Block]
 
June 30

 
December 31

 
 
(in millions of U.S. dollars)
2016

 
2015

 
Early Redemption Option
Repurchase agreements (weighted average interest rate of 0.8% in 2016 and 0.6% in 2015)
$
1,405

 
$
1,404

 
None
Short-term debt
 
 
 
 
 
Chubb INA senior notes:
 
 
 
 
 
$500 million 5.7% due February 2017
$
500

 
$
—

 
Make-whole premium plus 0.20%
Total short-term debt
$
500

 
$
—

 
 
Long-term debt
 
 
 
 
 
Chubb INA senior notes:
 
 
 
 
 
$500 million 5.7% due February 2017
$
—

 
$
500

 
Make-whole premium plus 0.20%
$300 million 5.8% due March 2018
300

 
299

 
Make-whole premium plus 0.35%
$600 million 5.75% due May 2018
648

 
—

 
Make-whole premium plus 0.30%
$100 million 6.6% due August 2018
109

 
—

 
None
$500 million 5.9% due June 2019
497

 
497

 
Make-whole premium plus 0.40%
$1,300 million 2.3% due November 2020
1,294

 
1,294

 
Make-whole premium plus 0.15%
$1,000 million 2.875% due November 2022
994

 
994

 
Make-whole premium plus 0.20%
$475 million 2.7% due March 2023
471

 
471

 
Make-whole premium plus 0.10%
$700 million 3.35% due May 2024
694

 
694

 
Make-whole premium plus 0.15%
$800 million 3.15% due March 2025
794

 
794

 
Make-whole premium plus 0.15%
$1,500 million 3.35% due May 2026
1,487

 
1,487

 
Make-whole premium plus 0.20%
$100 million 8.875% due August 2029
100

 
100

 
None
$200 million 6.8% due November 2031
259

 
—

 
Make-whole premium plus 0.25%
$300 million 6.7% due May 2036
297

 
297

 
Make-whole premium plus 0.20%
$800 million 6.0% due May 2037
984

 
—

 
Make-whole premium plus 0.20%
$600 million 6.5% due May 2038
780

 
—

 
Make-whole premium plus 0.30%
$475 million 4.15% due March 2043
469

 
469

 
Make-whole premium plus 0.15%
$1,500 million 4.35% due November 2045
1,482

 
1,482

 
Make-whole premium plus 0.25%
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
961

 
—

 
Make-whole premium plus 0.25%-0.50%
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020)
11

 
11

 
None
Total long-term debt
$
12,631

 
$
9,389

 
 
Trust preferred securities
 
 
 
 
 
Chubb INA capital securities due April 2030
$
308

 
$
307

 
Redemption prices(2)
(1) 
6.375% interest rate through April 14, 2017; interest rate equal to three month LIBOR rate plus 2.25% thereafter.
(2) 
Redemption price is equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the debentures from the redemption date to April 1, 2030.
Commitments, contingencies, and guarantees (Tables)
Balance Sheet Locations, Fair Values In An Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments 
 
 
 
 
 
June 30, 2016
 
 
 
 
December 31, 2015
 
 
Consolidated
Balance Sheet
Location
 
Fair Value
 
 
Notional
Value/
Payment
Provision

 
Fair Value
 
 
Notional
Value/
Payment
Provision

(in millions of U.S. dollars)
 
Derivative Asset

 
Derivative (Liability)

 
 
Derivative Asset

 
Derivative (Liability)

 
Investment and embedded derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
OA / (AP)
 
$
10

 
$
(27
)
 
$
1,258

 
$
7

 
$
(11
)
 
$
1,029

Cross-currency swaps
OA / (AP)
 
—

 
—

 
95

 
—

 
—

 
95

Options/Futures contracts on notes and bonds
OA / (AP)
 
8

 
(44
)
 
1,249

 
5

 
(2
)
 
751

Convertible securities (1)
FM AFS / ES
 
2

 
—

 
6

 
31

 
—

 
40

 
 
 
$
20

 
$
(71
)
 
$
2,608

 
$
43

 
$
(13
)
 
$
1,915

Other derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Futures contracts on equities (2)
OA / (AP)
 
$
—

 
$
(4
)
 
$
1,225

 
$
—

 
$
(4
)
 
$
1,197

Other
OA / (AP)
 
7

 
(10
)
 
277

 
—

 
(6
)
 
15

 
 
 
$
7

 
$
(14
)
 
$
1,502

 
$
—

 
$
(10
)
 
$
1,212

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(1,256
)
 
$
1,511

 
$
—

 
$
(888
)
 
$
1,155


(1) 
Includes fair value of embedded derivatives.
(2) 
Related to GMDB and GLB blocks of business.
(3) 
Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.
Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations 
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
June 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Investment and embedded derivative instruments
 
 
 
 
 
 
Foreign currency forward contracts
$
(10
)
 
$
(10
)
$
(20
)
 
$
15

All other futures contracts and options
(37
)
 
42

(71
)
 
13

Convertible securities(1)
—

 
(5
)
5

 
—

Total investment and embedded derivative instruments
$
(47
)
 
$
27

$
(86
)

$
28

GLB and other derivative instruments
 
 
 
 
 
 
GLB(2)
$
(131
)
 
$
104

$
(359
)
 
$
59

Futures contracts on equities(3)
(28
)
 
(2
)
(43
)
 
(13
)
Options on equity market indices(3)
—

 
—

—

 
(1
)
Other
—

 
(1
)
(2
)
 
(1
)
Total GLB and other derivative instruments
$
(159
)
 
$
101

$
(404
)

$
44

 
$
(206
)
 
$
128

$
(490
)

$
72

(1) 
Includes embedded derivatives.
(2) 
Excludes foreign exchange gains (losses) related to GLB.
(3) 
Related to GMDB and GLB blocks of business.

Transfer of Certain Financial Assets Accounted for as Secured Borrowings 
 
 
Remaining contractual maturity

June 30, 2016
 
Overnight and Continuous

(in millions of U.S. dollars)
 
Collateral held under securities lending agreements:
 
 
Cash
 
$
447

U.S. Treasury and agency
 
71

Foreign
 
262

Corporate securities
 
11

Equity securities
 
351

 
 
$
1,142

Gross amount of recognized liability for securities lending payable
 
$
1,143

Difference (1)
 
$
(1
)
(1) 
The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable due to accrued interest recorded in the securities lending payable.
Secured Borrowings Securities Lending Table Text Block [Table Text Block] 
 
Remaining contractual maturity
 
June 30, 2016
Up to 30 Days

 
Greater than
90 Days

 
Total

(in millions of U.S. dollars)
 
 
Collateral pledged under repurchase agreements:
 
 
 
 
 
U.S. Treasury and agency
$
234

 
$
5

 
$
239

Mortgage-backed securities
329

 
889

 
1,218

 
$
563

 
$
894

 
$
1,457

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
$
1,405

Difference(1)
 
 
 
 
$
52

(1) 
Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability.
Shareholders' equity Shareholders' Equity (Tables)
Dividends Declared [Table Text Block]
The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

Dividends – par value reduction
—

 
$


 
—

 
$
—

 
—

 
$


 
0.62

 
$
0.65

Dividends – distributed from capital contribution reserves
0.68

 
0.69

 
0.62

 
0.67

 
1.34

 
1.36

 
0.62

 
0.67

Total dividend distributions per common share
0.68

 
$
0.69

 
0.62

 
$
0.67

 
1.34

 
$
1.36

 
1.24

 
$
1.32

Postretirement benefits (Tables)
Schedule of Assumptions Used [Table Text Block] 
The weighted-average assumptions used to determine net pension and other postretirement benefit costs were as follows:
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
U.S. Plans

 
Non-U.S. Plans

June 30, 2016
 
 
 
 
 
 
 
Discount rate
4.28
%
 
3.74
%
 
4.41
%
 
4.30
%
Rate of compensation increase
4.00
%
 
3.40
%
 
N/A

 
N/A

Expected long-term rate of return on plan assets
7.00
%
 
4.90
%
 
7.00
%
 
N/A

December 31, 2015

 

 

 

Discount rate
N/A

 
3.51
%
 
N/A

 
N/A

Rate of compensation increase
N/A

 
3.09
%
 
N/A

 
N/A

Expected long-term rate of return on plan assets
N/A

 
4.81
%
 
N/A

 
N/A

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] 
 
Pension Benefits
 
 
Other Postretirement Benefits
 
January 14, 2016
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

(in millions of U.S. dollars)
 
 
 
 
 
Fair value of plan assets
$
2,473

 
$
315

 
$
2,788

 
$
138

 
$
—

 
$
138

Benefit obligations
(3,153
)
 
(372
)
 
(3,525
)
 
(491
)
 
(15
)
 
(506
)
Funded status
$
(680
)
 
$
(57
)
 
$
(737
)
 
$
(353
)
 
$
(15
)
 
$
(368
)
Schedule of Net Benefit Costs [Table Text Block] 
The following tables summarize the components of net periodic benefit costs for our pension and postretirement benefit plans recognized in the Consolidated statements of operations:
Three Months Ended June 30
Pension Benefits
 
 
Other Postretirement Benefits
 
(in millions of U.S. dollars)
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
20

 
$
4

 
$
24

 
$
2

 
$
1

 
$
3

     Interest cost
27

 
8

 
35

 
4

 
—

 
4

     Expected return on plan assets
(42
)
 
(10
)
 
(52
)
 
(2
)
 
—

 
(2
)
     Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

             Net periodic benefit cost
$
5

 
$
3

 
$
8

 
$
4

 
$
1

 
$
5

2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
1

 
$
1

 
 
 
 
 
 
     Interest cost
—

 
5

 
5

 
 
 
 
 
 
     Expected return on plan assets
—

 
(7
)
 
(7
)
 
 
 
 
 
 
     Amortization of net actuarial loss
—

 
1

 
1

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
—

 
$
—

 
 
 
 
 
 
Six Months Ended June 30
Pension Benefits
 
 
Other Postretirement Benefits
 
(in millions of U.S. dollars)
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
37

 
$
9

 
$
46

 
$
4

 
$
1

 
$
5

     Interest cost
54

 
16

 
70

 
9

 
—

 
9

     Expected return on plan assets
(79
)
 
(20
)
 
(99
)
 
(4
)
 
—

 
(4
)
     Amortization of net actuarial loss
—

 
2

 
2

 
—

 
—

 
—

             Net periodic benefit cost
$
12

 
$
7

 
$
19

 
$
9

 
$
1

 
$
10

2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
3

 
$
3

 
 
 
 
 
 
     Interest cost
—

 
10

 
10

 
 
 
 
 
 
     Expected return on plan assets
—

 
(14
)
 
(14
)
 
 
 
 
 
 
     Amortization of net actuarial loss
—

 
2

 
2

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
1

 
$
1

 
 
 
 
 
 
Segment information (Tables)
Operations By Segment
The following tables present the Statement of Operations by segment:
 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Three Months Ended
 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
3,245

 
$
1,231

 
$
375

 
$
2,031

 
$
230

 
$
527

 
$
—

 
$
7,639

Net premiums earned
3,148

 
1,140

 
327

 
2,093

 
185

 
512

 
—

 
7,405

Losses and loss expenses
1,971

 
661

 
284

 
1,089

 
87

 
147

 
15

 
4,254

Policy benefits
—

 
—

 
—

 
—

 
—

 
146

 
—

 
146

Policy acquisition costs
545

 
269

 
25

 
537

 
47

 
137

 
—

 
1,560

Administrative expenses
299

 
98

 
2

 
277

 
14

 
77

 
62

 
829

Underwriting income (loss)
333

 
112

 
16

 
190

 
37

 
5

 
(77
)
 
616

Net investment income (loss)
468

 
55

 
5

 
147

 
65

 
69

 
(101
)
 
708

Other (income) expense
(9
)
 
3

 
—

 
(5
)
 
(2
)
 
—

 
(16
)
 
(29
)
Segment income (loss)
810

 
164

 
21

 
342

 
104

 
74

 
(162
)
 
1,353

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(216
)
 
(216
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
153

 
153

Amortization of purchased intangibles
 
 
 
 
 
 
 
 
 
 
 
 
5

 
5

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
98

 
98

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
155

 
155

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(789
)
 
$
726


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Three Months Ended
 
 
 
 
 
June 30, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
1,428

 
$
547

 
$
379

 
$
1,669

 
$
261

 
$
500

 
$
—

 
$
4,784

Net premiums earned
1,419

 
269

 
321

 
1,644

 
220

 
487

 
—

 
4,360

Losses and loss expenses
916

 
156

 
271

 
816

 
72

 
137

 
49

 
2,417

Policy benefits
—

 
—

 
—

 
—

 
—

 
153

 
—

 
153

Policy acquisition costs
131

 
(1
)
 
23

 
396

 
60

 
118

 
—

 
727

Administrative expenses
154

 
34

 
4

 
254

 
13

 
74

 
45

 
578

Underwriting income (loss)
218

 
80

 
23

 
178

 
75

 
5

 
(94
)
 
485

Net investment income
262

 
7

 
6

 
139

 
79

 
66

 
3

 
562

Other (income) expense
1

 
—

 
1

 
(4
)
 
—

 
(7
)
 
(29
)
 
(38
)
Segment income (loss)
479

 
87

 
28

 
321

 
154

 
78

 
(62
)
 
1,085

Net realized gains (losses) including OTTI


 
 
 
 
 
 
 
 
 
 
 
126

 
126

Interest expense


 
 
 
 
 
 
 
 
 
 
 
71

 
71

Amortization of purchased intangibles


 
 
 
 
 
 
 
 
 
 
 
55

 
55

Income tax expense


 
 
 
 
 
 
 
 
 
 
 
143

 
143

Net income (loss)


 
 
 
 
 
 
 
 
 
 
 
$
(205
)
 
$
942


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Six Months Ended
 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
5,547

 
$
2,102

 
$
439

 
$
4,072

 
$
431

 
$
1,043

 
$
—

 
$
13,634

Net premiums earned
6,044

 
2,164

 
350

 
4,048

 
387

 
1,009

 
—

 
14,002

Losses and loss expenses
3,718

 
1,322

 
254

 
2,110

 
176

 
324

 
24

 
7,928

Policy benefits
—

 
—

 
—

 
—

 
—

 
272

 
—

 
272

Policy acquisition costs
1,027

 
518

 
29

 
1,040

 
100

 
259

 
—

 
2,973

Administrative expenses
565

 
186

 
(2
)
 
540

 
28

 
149

 
135

 
1,601

Underwriting income (loss)
734

 
138

 
69

 
358

 
83

 
5

 
(159
)
 
1,228

Net investment income (loss)
894

 
102

 
10

 
293

 
132

 
136

 
(185
)
 
1,382

Other (income) expense
(9
)
 
4

 
—

 
(10
)
 
(3
)
 
6

 
11

 
(1
)
Segment income (loss)
1,637

 
236

 
79

 
661

 
218

 
135

 
(355
)
 
2,611

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(610
)
 
(610
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
299

 
299

Amortization of purchased intangibles
 
 
 
 
 
 
 
 
 
 
 
 
12

 
12

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
246

 
246

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
279

 
279

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(1,801
)
 
$
1,165


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Six Months Ended
 
 
 
 
 
June 30, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
2,725

 
$
680

 
$
467

 
$
3,463

 
$
534

 
$
991

 
$
—

 
$
8,860

Net premiums earned
2,799

 
415

 
385

 
3,281

 
446

 
961

 
—

 
8,287

Losses and loss expenses
1,831

 
267

 
293

 
1,630

 
171

 
289

 
58

 
4,539

Policy benefits
—

 
—

 
—

 
—

 
—

 
295

 
—

 
295

Policy acquisition costs
261

 
30

 
19

 
785

 
114

 
225

 
—

 
1,434

Administrative expenses
305

 
53

 
3

 
510

 
25

 
147

 
89

 
1,132

Underwriting income (loss)
402

 
65

 
70

 
356

 
136

 
5

 
(147
)
 
887

Net investment income
520

 
12

 
12

 
277

 
154

 
132

 
6

 
1,113

Other (income) expense
(2
)
 
—

 
2

 
(6
)
 
(1
)
 
(16
)
 
(50
)
 
(73
)
Segment income (loss)
924

 
77

 
80

 
639

 
291

 
153

 
(91
)
 
2,073

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
37

 
37

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
139

 
139

Amortization of purchased intangibles
 
 
 
 
 
 
 
 
 
 
 
 
85

 
85

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
263

 
263

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(541
)
 
$
1,623

Earnings per share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars, except share and per share data)
2016

 
2015

 
2016

 
2015

Numerator:
 
 
 
 
 
 
 
Net income
$
726

 
$
942

 
$
1,165

 
$
1,623

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
 
 
Weighted-average shares outstanding
467,701,328

 
325,463,196

 
457,102,802

 
326,795,838

Denominator for diluted earnings per share:
 
 
 
 

 

Share-based compensation plans
3,455,969

 
3,222,562

 
3,379,559

 
3,373,809

Weighted-average shares outstanding and assumed conversions
471,157,297

 
328,685,758

 
460,482,361

 
330,169,647

Basic earnings per share
$
1.55

 
$
2.89

 
$
2.55

 
$
4.97

Diluted earnings per share
$
1.54

 
$
2.86

 
$
2.53

 
$
4.91

Potential anti-dilutive share conversions
2,103,281

 
1,934,454

 
2,056,018

 
1,306,817

Information provided in connection with outstanding debt of subsidiaries (Tables)
Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet at June 30, 2016
(in millions of U.S. dollars)
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
27

 
$
618

 
$
99,201

 
$
—

 
$
99,846

Cash (1)
1

 
207

 
1,825

 
(1,022
)
 
1,011

Insurance and reinsurance balances receivable
—

 
—

 
12,095

 
(3,563
)
 
8,532

Reinsurance recoverable on losses and loss expenses
—

 
—

 
23,071

 
(9,836
)
 
13,235

Reinsurance recoverable on policy benefits
—

 
—

 
1,185

 
(986
)
 
199

Value of business acquired
—

 
—

 
381

 
—

 
381

Goodwill and other intangible assets
—

 
—

 
22,923

 
—

 
22,923

Investments in subsidiaries
37,011

 
49,412

 
—

 
(86,423
)
 
—

Due from subsidiaries and affiliates, net
11,179

 
—

 
—

 
(11,179
)
 
—

Other assets
7

 
522

 
17,962

 
(4,415
)
 
14,076

Total assets
$
48,225

 
$
50,759

 
$
178,643

 
$
(117,424
)
 
$
160,203

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,026

 
$
(9,207
)
 
$
60,819

Unearned premiums
—

 
—

 
18,999

 
(3,770
)
 
15,229

Future policy benefits
—

 
—

 
5,961

 
(986
)
 
4,975

Due to subsidiaries and affiliates, net
—

 
11,036

 
143

 
(11,179
)
 
—

Affiliated notional cash pooling programs (1)
776

 
246

 
—

 
(1,022
)
 
—

Repurchase agreements
—

 
—

 
1,405

 
—

 
1,405

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,620

 
11

 
—

 
12,631

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
223

 
1,608

 
20,116

 
(4,837
)
 
17,110

Total liabilities
999

 
26,318

 
116,661

 
(31,001
)
 
112,977

Total shareholders’ equity
47,226

 
24,441

 
61,982

 
(86,423
)
 
47,226

Total liabilities and shareholders’ equity
$
48,225

 
$
50,759

 
$
178,643

 
$
(117,424
)
 
$
160,203


(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
 




Condensed Consolidating Balance Sheet at December 31, 2015

(in millions of U.S. dollars)
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
28

 
$
7,839

 
$
58,384

 
$
—

 
$
66,251

Cash (1)
1

 
2

 
2,743

 
(971
)
 
1,775

Insurance and reinsurance balances receivable
—

 
—

 
6,075

 
(752
)
 
5,323

Reinsurance recoverable on losses and loss expenses
—

 
—

 
20,124

 
(8,738
)
 
11,386

Reinsurance recoverable on policy benefits
—

 
—

 
1,129

 
(942
)
 
187

Value of business acquired
—

 
—

 
395

 
—

 
395

Goodwill and other intangible assets
—

 
—

 
5,683

 
—

 
5,683

Investments in subsidiaries
29,612

 
18,386

 
—

 
(47,998
)
 
—

Due from subsidiaries and affiliates, net
644

 
1,800

 
—

 
(2,444
)
 
—

Other assets
8

 
457

 
14,434

 
(3,593
)
 
11,306

Total assets
$
30,293

 
$
28,484

 
$
108,967

 
$
(65,438
)
 
$
102,306

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
45,490

 
$
(8,187
)
 
$
37,303

Unearned premiums
—

 
—

 
10,243

 
(1,804
)
 
8,439

Future policy benefits
—

 
—

 
5,749

 
(942
)
 
4,807

Due to subsidiaries and affiliates, net
—

 
—

 
2,444

 
(2,444
)
 
—

Affiliated notional cash pooling programs (1)
882

 
89

 
—

 
(971
)
 
—

Repurchase agreements
—

 
—

 
1,404

 
—

 
1,404

Long-term debt
—

 
9,378

 
11

 
—

 
9,389

Trust preferred securities
—

 
307

 
—

 
—

 
307

Other liabilities
276

 
1,422

 
12,916

 
(3,092
)
 
11,522

Total liabilities
1,158

 
11,196

 
78,257

 
(17,440
)
 
73,171

Total shareholders’ equity
29,135

 
17,288

 
30,710

 
(47,998
)
 
29,135

Total liabilities and shareholders’ equity
$
30,293

 
$
28,484

 
$
108,967

 
$
(65,438
)
 
$
102,306

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Statement Of Operations and Comprehensive Income 
Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
7,639

 
$
—

 
$
7,639

Net premiums earned
—

 
—

 
7,405

 
—

 
7,405

Net investment income
1

 
3

 
704

 
—

 
708

Equity in earnings of subsidiaries
664

 
549

 
—

 
(1,213
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(1
)
 
(214
)
 
—

 
(216
)
Losses and loss expenses
—

 
—

 
4,254

 
—

 
4,254

Policy benefits
—

 
—

 
146

 
—

 
146

Policy acquisition costs and administrative expenses
16

 
96

 
2,277

 
—

 
2,389

Interest (income) expense
(93
)
 
233

 
13

 
—

 
153

Other (income) expense
(4
)
 
10

 
(35
)
 
—

 
(29
)
Amortization of purchased intangibles
—

 
—

 
5

 
—

 
5

Chubb integration expenses
14

 
(97
)
 
181

 
—

 
98

Income tax expense (benefit)
5

 
(37
)
 
187

 
—

 
155

Net income
$
726

 
$
346

 
$
867

 
$
(1,213
)
 
$
726

Comprehensive income
$
1,540

 
$
1,004

 
$
1,681

 
$
(2,685
)
 
$
1,540


During the second quarter of 2016, we refined our internal expense allocation processes and as a result we were able to more precisely identify which of our wholly-owned subsidiaries were responsible for specific Chubb integration expenses and subsequently transferred Chubb integration expenses of $97 million and income tax benefit of $34 million from Chubb INA Holdings Inc. to the Other Chubb Limited Subsidiaries column above. The offsetting movement is within Equity in earnings of subsidiaries in the Chubb INA Holdings Inc. column above.

Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended June 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
4,784

 
$
—

 
$
4,784

Net premiums earned
—

 
—

 
4,360

 
—

 
4,360

Net investment income
—

 
—

 
562

 
—

 
562

Equity in earnings of subsidiaries
901

 
296

 
—

 
(1,197
)
 
—

Net realized gains (losses) including OTTI
—

 
(2
)
 
128

 
—

 
126

Losses and loss expenses
—

 
—

 
2,417

 
—

 
2,417

Policy benefits
—

 
—

 
153

 
—

 
153

Policy acquisition costs and administrative expenses
18

 
7

 
1,280

 
—

 
1,305

Interest (income) expense
(7
)
 
69

 
9

 
—

 
71

Other (income) expense
(57
)
 
(4
)
 
23

 
—

 
(38
)
Amortization of purchased intangibles
—

 
—

 
55

 
—

 
55

Income tax expense (benefit)
5

 
(27
)
 
165

 
—

 
143

Net income
$
942

 
$
249

 
$
948

 
$
(1,197
)
 
$
942

Comprehensive income (loss)
$
397

 
$
(91
)
 
$
403

 
$
(312
)
 
$
397




Condensed Consolidating Statements of Operations and Comprehensive Income
Six Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
13,634

 
$
—

 
$
13,634

Net premiums earned
—

 
—

 
14,002

 
—

 
14,002

Net investment income
2

 
7

 
1,373

 
—

 
1,382

Equity in earnings of subsidiaries
1,039

 
1,055

 
—

 
(2,094
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(1
)
 
(608
)
 
—

 
(610
)
Losses and loss expenses
—

 
—

 
7,928

 
—

 
7,928

Policy benefits
—

 
—

 
272

 
—

 
272

Policy acquisition costs and administrative expenses
33

 
132

 
4,409

 
—

 
4,574

Interest (income) expense
(173
)
 
448

 
24

 
—

 
299

Other (income) expense
(13
)
 
20

 
(8
)
 
—

 
(1
)
Amortization of purchased intangibles
—

 
—

 
12

 
—

 
12

Chubb integration expenses
17

 
40

 
189

 
—

 
246

Income tax expense (benefit)
11

 
(187
)
 
455

 
—

 
279

Net income
$
1,165

 
$
608

 
$
1,486

 
$
(2,094
)
 
$
1,165

Comprehensive income
$
3,081

 
$
2,060

 
$
3,402

 
$
(5,462
)
 
$
3,081


Condensed Consolidating Statements of Operations and Comprehensive Income
Six Months Ended June 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
8,860

 
$
—

 
$
8,860

Net premiums earned
—

 
—

 
8,287

 
—

 
8,287

Net investment income
1

 
1

 
1,111

 
—

 
1,113

Equity in earnings of subsidiaries
1,549

 
500

 
—

 
(2,049
)
 
—

Net realized gains (losses) including OTTI
—

 
(2
)
 
39

 
—

 
37

Losses and loss expenses
—

 
—

 
4,539

 
—

 
4,539

Policy benefits
—

 
—

 
295

 
—

 
295

Policy acquisition costs and administrative expenses
32

 
13

 
2,521

 
—

 
2,566

Interest (income) expense
(15
)
 
138

 
16

 
—

 
139

Other (income) expense
(98
)
 
(7
)
 
32

 
—

 
(73
)
Amortization of purchased intangibles
—

 
—

 
85

 
—

 
85

Income tax expense (benefit)
8

 
(53
)
 
308

 
—

 
263

Net income
$
1,623

 
$
408

 
$
1,641

 
$
(2,049
)
 
$
1,623

Comprehensive income (loss)
$
1,039

 
$
(67
)
 
$
1,057

 
$
(990
)
 
$
1,039



Condensed Consolidating Statement of Cash Flows 
Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from operating activities
$
3,213

 
$
4,050

 
$
2,262

 
$
(7,372
)
 
$
2,153

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturities available for sale
—

 
(83
)
 
(16,994
)
 
—

 
(17,077
)
Purchases of fixed maturities held to maturity
—

 
—

 
(121
)
 
—

 
(121
)
Purchases of equity securities
—

 
—

 
(78
)
 
—

 
(78
)
Sales of fixed maturities available for sale
—

 
—

 
11,868

 
—

 
11,868

Sales of equity securities
—

 
—

 
932

 
—

 
932

Maturities and redemptions of fixed maturities available for sale
—

 
—

 
3,910

 
—

 
3,910

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
443

 
—

 
443

Net change in short-term investments
—

 
7,829

 
3,882

 
—

 
11,711

Net derivative instruments settlements
—

 
(10
)
 
(83
)
 
—

 
(93
)
Acquisition of subsidiaries (net of cash acquired of $71)
—

 
(14,282
)
 
34

 
—

 
(14,248
)
Capital contribution
(2,330
)
 
—

 
(2,330
)
 
4,660

 
—

Other
—

 
(3
)
 
84

 
—

 
81

Net cash flows (used for) from investing activities
(2,330
)
 
(6,549
)
 
1,547

 
4,660

 
(2,672
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(530
)
 
—

 
—

 
—

 
(530
)
Proceeds from issuance of repurchase agreements
—

 
—

 
904

 
—

 
904

Repayment of repurchase agreements
—

 
—

 
(902
)
 
—

 
(902
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
92

 
—

 
92

Dividend to parent company
—

 
—

 
(7,372
)
 
7,372

 
—

Advances (to) from affiliates
(247
)
 
221

 
26

 
—

 
—

Capital contribution
—

 
2,330

 
2,330

 
(4,660
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(106
)
 
157

 
—

 
(51
)
 
—

Policyholder contract deposits
—

 
—

 
274

 
—

 
274

Policyholder contract withdrawals
—

 
—

 
(103
)
 
—

 
(103
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows (used for) from financing activities
(883
)
 
2,704

 
(4,751
)
 
2,661

 
(269
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
24

 
—

 
24

Net increase (decrease) in cash
—

 
205

 
(918
)
 
(51
)
 
(764
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
1

 
$
207

 
$
1,825

 
$
(1,022
)
 
$
1,011

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from (used for) operating activities
$
65

 
$
(35
)
 
$
1,861

 
$
—

 
$
1,891

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturities available for sale
—

 
—

 
(9,210
)
 
—

 
(9,210
)
Purchases of fixed maturities held to maturity
—

 
—

 
(24
)
 
—

 
(24
)
Purchases of equity securities
—

 
—

 
(70
)
 
—

 
(70
)
Sales of fixed maturities available for sale
—

 
—

 
3,642

 
—

 
3,642

Sales of equity securities
—

 
—

 
102

 
—

 
102

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
3,691

 
—

 
3,691

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
470

 
—

 
470

Net change in short-term investments
—

 
190

 
38

 
—

 
228

Net derivative instruments settlements
—

 
(9
)
 
(24
)
 
—

 
(33
)
Acquisition of subsidiaries (net of cash acquired of $620)
—

 
—

 
255

 
—

 
255

Other
—

 
(2
)
 
(69
)
 
—

 
(71
)
Net cash flows from (used for) investing activities
—

 
179

 
(1,199
)
 
—

 
(1,020
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(427
)
 
—

 
—

 
—

 
(427
)
Common Shares repurchased
—

 
—

 
(750
)
 
—

 
(750
)
Proceeds from issuance of long-term debt
—

 
800

 
—

 
—

 
800

Proceeds from issuance of repurchase agreements
—

 
—

 
1,327

 
—

 
1,327

Repayment of long-term debt
—

 
(450
)
 
—

 
—

 
(450
)
Repayment of repurchase agreements
—

 
—

 
(1,327
)
 
—

 
(1,327
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
46

 
—

 
46

Advances (to) from affiliates
223

 
(214
)
 
(9
)
 
—

 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
140

 
(272
)
 
—

 
132

 
—

Policyholder contract deposits
—

 
—

 
235

 
—

 
235

Policyholder contract withdrawals
—

 
—

 
(107
)
 
—

 
(107
)
Other
—

 
(6
)
 
—

 
—

 
(6
)
Net cash flows used for financing activities
(64
)
 
(142
)
 
(585
)
 
132

 
(659
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
(77
)
 
—

 
(77
)
Net increase in cash
1

 
2

 
—

 
132

 
135

Cash – beginning of period(1)
—

 
1

 
1,209

 
(555
)
 
655

Cash – end of period(1)
$
1

 
$
3

 
$
1,209

 
$
(423
)
 
$
790


(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2015 and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
General Adoption of New Accounting Pronouncements (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2015
Components of Deferred Debt Issuance Costs [Line Items]
 
Debt Issuance Costs
$ 60 
Long-term Debt [Member]
 
Components of Deferred Debt Issuance Costs [Line Items]
 
Debt Issuance Costs
58 
Trust Preferred Securities [Member]
 
Components of Deferred Debt Issuance Costs [Line Items]
 
Debt Issuance Costs
$ 2 
Acquisitions (Detail) (USD $)
3 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Jan. 14, 2016
The Chubb Corporation [Member]
Nov. 1, 2015
The Chubb Corporation [Member]
Apr. 1, 2015
Fireman's Fund high net worth personal lines [Member]
Jun. 30, 2016
Minimum [Member]
Jun. 30, 2016
Maximum [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Other intangible assets
$ 7,398,000,000 
 
$ 7,398,000,000 
 
$ 887,000,000 
 
 
 
$ 278,000,000 
 
 
Chubb integration expenses
98,000,000 
0 
246,000,000 
0 
 
 
 
 
 
 
 
Weighted-average shares outstanding
467,701,328 
325,463,196 
457,102,802 
326,795,838 
 
 
228,000,000 
 
 
 
 
Business Acquisition, Expected Financing Of Acquisition With Cash
 
 
 
 
 
 
9,000,000,000 
 
 
 
 
Goodwill
15,525,000,000 
 
15,525,000,000 
 
4,796,000,000 
 
10,526,000,000 
 
196,000,000 
 
 
Purchase price
 
 
 
 
 
 
 
 
365,000,000 
 
 
Total Consideration
 
 
 
 
 
 
29,846,000,000 
 
 
 
 
Assumed liabilities fair value
 
 
 
 
 
 
 
 
863,000,000 
 
 
Unpaid losses and loss expenses
(60,819,000,000)
 
(60,819,000,000)
 
(37,303,000,000)
 
(22,906,000,000)
 
(417,000,000)
 
 
Unearned premiums
(15,229,000,000)
 
(15,229,000,000)
 
(8,439,000,000)
 
(7,033,000,000)
 
(428,000,000)
 
 
Insurance and reinsurance balances receivable
8,532,000,000 
 
8,532,000,000 
 
5,323,000,000 
 
2,981,000,000 
 
124,000,000 
 
 
Cash
1,011,000,000 1 2
790,000,000 3
1,011,000,000 1 2
790,000,000 3
1,775,000,000 1 4
655,000,000 3
71,000,000 
 
629,000,000 
 
 
Acquired assets fair value
 
 
 
 
 
 
 
 
753,000,000 
 
 
Expected purchase price
 
 
 
 
 
 
29,500,000,000 
 
 
 
 
Approximate number of shares to be issued
 
 
 
 
 
 
323,000,000 
 
 
 
 
Senior notes issued to finance acquisition
 
 
 
 
 
 
 
5,300,000,000 
 
 
 
Common Shares (CHF 24.15 par value; 479,783,864 and 342,832,412 shares issued; 465,012,980 and 324,563,441 shares outstanding)
11,121,000,000 
 
11,121,000,000 
 
7,833,000,000 
 
 
 
 
 
 
Payments to Acquire Businesses, Gross
 
 
 
 
 
 
14,319,000,000 
 
 
 
 
Investments
99,846,000,000 
 
99,846,000,000 
 
66,251,000,000 
 
42,967,000,000 
 
 
 
 
Accrued investment income
919,000,000 
 
919,000,000 
 
513,000,000 
 
337,000,000 
 
 
 
 
Reinsurance recoverable on losses and loss expenses
13,235,000,000 
 
13,235,000,000 
 
11,386,000,000 
 
1,650,000,000 
 
 
 
 
Indefinite-Lived Intangible Assets
 
 
 
 
 
 
2,860,000,000 
 
 
 
 
Finite-Lived Intangible Assets
 
 
 
 
 
 
4,795,000,000 
 
 
 
 
Prepaid reinsurance premiums
2,464,000,000 
 
2,464,000,000 
 
2,082,000,000 
 
280,000,000 
 
 
 
 
Other assets
4,945,000,000 
 
4,945,000,000 
 
3,821,000,000 
 
863,000,000 
 
 
 
 
Insurance and reinsurance balances payable
(4,944,000,000)
 
(4,944,000,000)
 
(4,270,000,000)
 
(511,000,000)
 
 
 
 
Accounts payable, accrued expenses, and other liabilities
(9,614,000,000)
 
(9,614,000,000)
 
(6,205,000,000)
 
(1,935,000,000)
 
 
 
 
Deferred Tax Liabilities, Net
 
 
 
 
 
 
(1,334,000,000)
 
 
 
 
Long-term debt
(12,631,000,000)
 
(12,631,000,000)
 
(9,389,000,000)
 
(3,800,000,000)
 
 
 
 
Attributed Value Equity Awards Assumed in Acquisition
 
 
 
 
 
 
323,000,000 
 
 
 
 
Total Value of Equity Awards Issued in Acquisition
 
 
 
 
 
 
525,000,000 
 
 
 
 
Cash consideration per share
 
 
 
 
 
 
$ 62.93 
 
 
 
 
Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp
 
 
 
 
 
 
15,204,000,000 
 
 
 
 
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares
 
 
 
 
 
 
137,000,000 
 
 
 
 
Share Price
 
 
 
 
 
 
$ 111.02 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net
 
 
 
 
 
 
$ 19,320,000,000 
 
 
 
 
Shares Conversion Ratio in Acquisition
 
 
 
 
 
 
0.6019 
 
 
 
 
Estimated Useful Life
 
 
 
 
 
 
 
 
 
1 year 
24 years 
Supplemental FInancial Information for Acquisition (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2016
Jun. 30, 2015
Business Acquisition [Line Items]
 
 
 
 
 
Actual Revenue of Chubb Corp since Acquisition Date
$ 2,745 
 
$ 5,232 
 
 
Actual Net Income of Chubb Corp since Acquisition Date
326 
 
581 
 
 
Pro Forma Total Revenues
7,915 
8,378 
 
15,237 
16,073 
Pro Forma Net Income
$ 712 
$ 1,199 
 
$ 1,246 
$ 2,158 
Pro Forma Earnings Per Share, Basic
$ 1.52 
$ 2.57 
 
$ 2.67 
$ 4.62 
Pro Forma Earnings Per Share, Diluted
$ 1.51 
$ 2.55 
 
$ 2.65 
$ 4.57 
Investments (Narrative) (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Security
Jun. 30, 2015
Jun. 30, 2016
Security
Jun. 30, 2015
Dec. 31, 2015
Investment [Line Items]
 
 
 
 
 
Total number of fixed maturities
30,835 
 
30,835 
 
 
Number of equity securities in an unrealized loss position
93 
 
93 
 
 
Total number of equity securities
297 
 
297 
 
 
Largest single unrealized loss in the equity securities
$ 2,000,000 
 
$ 2,000,000 
 
 
Restricted assets in fixed maturities and short-term investments
18,600,000,000 
 
18,600,000,000 
 
16,900,000,000 
Restricted assets in cash
80,000,000 
 
80,000,000 
 
110,000,000 
Moodys Historical Mean Recovery Rate
 
 
42.00% 
 
 
Company Assumed Recovery Rate
 
 
32.00% 
 
 
Net unrealized depreciation included in AOCI
3,000,000 
 
3,000,000 
 
35,000,000 
Investments in partially-owned insurance companies
658,000,000 
 
658,000,000 
 
653,000,000 
Net unrealized appreciation (depreciation) included in OCI
21,000,000 
0 
44,000,000 
4,000,000 
 
Number of fixed maturities in an unrealized loss position
4,157 
 
4,157 
 
 
Percentage of mortgage-backed securities represented by investments in US government agency bonds
79.00% 
 
79.00% 
 
81.00% 
Reinsurance recoverable on losses and loss expenses
13,235,000,000 
 
13,235,000,000 
 
11,386,000,000 
Insurance and reinsurance balances payable
4,944,000,000 
 
4,944,000,000 
 
4,270,000,000 
Unearned premiums
15,229,000,000 
 
15,229,000,000 
 
8,439,000,000 
Largest single unrealized loss in the fixed maturities
4,000,000 
 
4,000,000 
 
 
Corporate [Member]
 
 
 
 
 
Investment [Line Items]
 
 
 
 
 
Credit losses recognized in net income
7,000,000 
5,000,000 
24,000,000 
9,000,000 
 
Collateralized Mortgage Backed Securities [Member]
 
 
 
 
 
Investment [Line Items]
 
 
 
 
 
Credit losses recognized in net income
 
 
$ 0 
$ 0 
 
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Available for sale, Due in 1 year or less, Amortized Cost
$ 3,485 
$ 1,856 
Available for sale, Due after 1 year through 5 years, Amortized Cost
25,540 
14,936 
Available for sale, Due after 5 years though 10 years, Amortized Cost
25,905 
12,258 
Available for sale, Due after 10 years, Amortized Cost
10,137 
4,272 
Available for sale, Subtotal, Amortized Cost
65,067 
33,322 
Available for sale, Mortgage-backed securities, Amortized Cost
12,369 
9,827 
Available for sale, at amortized cost
77,436 
43,149 
Available for sale, Fair Value
79,951 
43,587 
Held to maturity, Due in 1 year or less, Amortized Cost
368 
492 
Held to maturity, Due after 1 year through 5 years, Amortized Cost
2,614 
2,443 
Held to maturity, Due after 5 years through 10 years, Amortized Cost
2,942 
2,292 
Held to maturity, Due after 10 years, Amortized Cost
3,566 
1,496 
Held to maturity, Subtotal, Amortized Cost
9,490 
6,723 
Held to maturity, Mortgage backed securities, Amortized Cost
1,600 
1,707 
Available for sale, Due in 1 year or less, Fair Value
3,501 
1,865 
Available for sale, Due after 1 year through 5 years, Fair Value
26,174 
15,104 
Available for sale, Due after 5 years through 10 years, Fair Value
26,685 
12,173 
Available for sale, Due after 10 years, Fair Value
10,827 
4,487 
Available for sale, Subtotal, Fair Value
67,187 
33,629 
Available for sale, Mortgage backed securities, Fair Value
12,764 
9,958 
Held to maturity, Due in 1 year or less, Fair Value
372 
495 
Held to maturity, Due after 1 year through 5, Fair Value
2,716 
2,517 
Held to maturity, Due after 5 years through 10 years, Fair Value
3,063 
2,313 
Held to maturity, Due after 10 years, Fair Value
3,754 
1,484 
Held to maturity, Subtotal, Fair Value
9,905 
6,809 
Held to maturity, Mortgage backed securities, Fair Value
1,676 
1,743 
Held to maturity, Amortized Cost
11,090 
8,430 
Held to maturity, Fair Value
$ 11,581 
$ 8,552 
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Cost
$ 703 
$ 441 
Gross unrealized appreciation
103 
74 
Gross unrealized depreciation
(19)
(18)
Equity securities, at fair value
$ 787 
$ 497 
Investments (Net Realized Gains (Losses) And Losses Included In Net Realized Gains (Losses) And Other Comprehensive Income) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
 
 
OTTI on fixed maturities, gross
$ (11)
$ (13)
$ (78)
$ (26)
OTTI on fixed maturities recognized in OCI (pre-tax)
0 
6 
8 
6 
OTTI on fixed maturities, net
(11)
(7)
(70)
(20)
Fixed maturities, Gross realized gains excluding OTTI
37 
28 
102 
72 
Fixed maturities, Gross realized losses excluding OTTI
(19)
(16)
(215)
(51)
Total fixed maturities
7 
5 
(183)
1 
OTTI on equity securities
(5)
(1)
(6)
(1)
Equity securities, Gross realized gains excluding OTTI
4 
30 
44 
33 
Equity securities, Gross realized losses excluding OTTI
(4)
0 
(5)
(2)
Total equity securities
(5)
29 
33 
30 
OTTI on other investments
0 
0 
(3)
0 
Foreign exchange gains (losses)
(22)
(40)
17 
(71)
Investment and embedded derivative instruments
(47)
27 
(86)
28 
Fair value adjustments on insurance derivative
(131)
104 
(359)
59 
S&P put options and futures
(28)
(2)
(43)
(14)
Other derivative instruments
0 
(1)
(2)
(1)
Other
10 
4 
16 
5 
Total net realized gains (losses) (includes $2, $34, $(150), and $31 reclassified from AOCI)
$ (216)
$ 126 
$ (610)
$ 37 
Investments (Aggregate Fair Value And Gross Unrealized Loss By Length Of Time Security Has Continuously Been In Unrealized Loss Position) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Investment [Line Items]
 
 
Fair Value, 0-12 Months
$ 7,376 
$ 16,763 
Gross Unrealized Loss, 0-12 Months
(141)
(601)
Fair Value, Over 12 Months
2,194 
1,885 
Gross Unrealized Loss, Over 12 Months
(115)
(226)
Total Fair Value
9,570 
18,648 
Total Gross Unrealized Loss
(256)
(827)
U.S. Treasury And Agency [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
 
996 
Gross Unrealized Loss, 0-12 Months
 
(5)
Fair Value, Over 12 Months
 
153 
Gross Unrealized Loss, Over 12 Months
 
(1)
Total Fair Value
 
1,149 
Total Gross Unrealized Loss
 
(6)
Foreign [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
2,266 
3,953 
Gross Unrealized Loss, 0-12 Months
(27)
(148)
Fair Value, Over 12 Months
673 
436 
Gross Unrealized Loss, Over 12 Months
(43)
(73)
Total Fair Value
2,939 
4,389 
Total Gross Unrealized Loss
(70)
(221)
Corporate [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
2,855 
7,518 
Gross Unrealized Loss, 0-12 Months
(61)
(371)
Fair Value, Over 12 Months
1,047 
738 
Gross Unrealized Loss, Over 12 Months
(68)
(138)
Total Fair Value
3,902 
8,256 
Total Gross Unrealized Loss
(129)
(509)
Collateralized Mortgage Backed Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
481 
3,399 
Gross Unrealized Loss, 0-12 Months
(3)
(42)
Fair Value, Over 12 Months
414 
516 
Gross Unrealized Loss, Over 12 Months
(3)
(12)
Total Fair Value
895 
3,915 
Total Gross Unrealized Loss
(6)
(54)
States, Municipalities, And Political Subdivisions [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
1,308 
556 
Gross Unrealized Loss, 0-12 Months
(4)
(6)
Fair Value, Over 12 Months
60 
42 
Gross Unrealized Loss, Over 12 Months
(1)
(2)
Total Fair Value
1,368 
598 
Total Gross Unrealized Loss
(5)
(8)
Fixed Maturities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
6,910 
16,422 
Gross Unrealized Loss, 0-12 Months
(95)
(572)
Fair Value, Over 12 Months
2,194 
1,885 
Gross Unrealized Loss, Over 12 Months
(115)
(226)
Total Fair Value
9,104 
18,307 
Total Gross Unrealized Loss
(210)
(798)
Equity Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
186 
131 
Gross Unrealized Loss, 0-12 Months
(19)
(18)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
186 
131 
Total Gross Unrealized Loss
(19)
(18)
Other Long-term Investments [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
280 
210 
Gross Unrealized Loss, 0-12 Months
(27)
(11)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
280 
210 
Total Gross Unrealized Loss
$ (27)
$ (11)
Investments (Schedule Of Components Of Restricted Assets) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Trust funds
$ 12,271 
$ 11,862 
Deposits with non-U.S. regulatory authorities
2,340 
2,075 
Assets pledged under repurchase agreements
1,457 
1,459 
Deposits with U.S. regulatory authorities
2,241 
1,242 
Other pledged assets
409 
392 
Total restricted assets
$ 18,718 
$ 17,030 
Fair Value Measurements (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2016
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member]
Dec. 31, 2015
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member]
Jun. 30, 2016
Minimum [Member]
Jun. 30, 2016
Maximum [Member]
Jun. 30, 2016
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2015
Fair Value, Inputs, Level 2 [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
 
 
 
 
 
 
 
 
Notice Period For Redemption For Alternative Investments Investment Funds
 
 
 
 
5 days 
120 days 
 
 
Fair Value
$ 3,537 
$ 2,477 
$ 3,537 
$ 2,477 
 
 
$ 240 
$ 230 
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Other investments
$ 3,537 
$ 2,477 
Available for sale, Fair Value
79,951 
43,587 
Equity securities, at fair value
787 
497 
Short-term investments
3,631 
10,446 
Other investments (cost – $4,152 and $2,993)
4,387 
3,291 
Securities lending collateral
1,142 
1,046 
Investment derivative instruments, assets
18 
12 
Other Derivative Instruments Fair Value
7 
 
Separate Account Assets
1,687 
1,552 
Total assets measured at fair value
88,048 
57,929 
Investment derivative instruments, liabilities
71 
13 
Other derivative instruments, liability
14 
10 
GLB
971 
609 
Total liabilities measured at fair value
1,056 
632 
Estimate of Fair Value Measurement [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Other investments
825 
789 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Other investments
369 
347 
Available for sale, Fair Value
2,155 
1,712 
Equity securities, at fair value
750 
481 
Short-term investments
2,321 
7,171 
Investment derivative instruments, assets
18 
12 
Other Derivative Instruments Fair Value
7 
 
Separate Account Assets
1,592 
1,464 
Total assets measured at fair value
7,212 
11,187 
Investment derivative instruments, liabilities
71 
13 
Other derivative instruments, liability
4 
4 
Total liabilities measured at fair value
75 
17 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Other investments
240 
230 
Available for sale, Fair Value
77,379 
41,591 
Short-term investments
1,260 
3,275 
Securities lending collateral
1,142 
1,046 
Separate Account Assets
95 
88 
Total assets measured at fair value
80,116 
46,230 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Other investments
216 
212 
Available for sale, Fair Value
417 
284 
Equity securities, at fair value
37 
16 
Short-term investments
50 
 
Total assets measured at fair value
720 
512 
Other derivative instruments, liability
10 
6 
GLB
971 
609 
Total liabilities measured at fair value
981 
615 
U.S. Treasury And Agency [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
2,698 
2,528 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
2,155 
1,712 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
543 
816 
Foreign [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
22,480 
13,445 
Foreign [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
22,393 
13,388 
Foreign [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
87 
57 
Corporate [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
22,435 
14,929 
Corporate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
22,154 
14,755 
Corporate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
281 
174 
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
12,764 
9,958 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
12,715 
9,905 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
49 
53 
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
19,574 
2,727 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
$ 19,574 
$ 2,727 
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
GLB
$ 971 
 
$ 971 
 
 
$ 609 
 
 
Valuation Technique
 
 
Actuarial model 1
 
 
 
 
 
Minimum [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
Significant Unobservable Inputs Lapse rate
1.00% 1
 
1.00% 1
 
 
 
 
 
Significant Unobservable Inputs Annuitization rate
 
 
0.00% 1
 
 
 
 
 
Maximum [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
Significant Unobservable Inputs Lapse rate
30.00% 1
 
30.00% 1
 
 
 
 
 
Significant Unobservable Inputs Annuitization rate
 
 
55.00% 1
 
 
 
 
 
Guaranteed Living Benefit [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
Fair Value Measurement With Unobservable Inputs, Rreconciliation, Recurring Basis, Liability Net Realized Gain Loss Attributable To Changes In Fair Value
(132)
104 
(362)2
59 2
 
 
 
 
Purchases, Liabilities
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
(132)
104 
(362)
59 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
971 2 3
347 2 3
971 2 3
347 2 3
839 3
609 3
451 3
406 3
Fair Value
 
 
 
 
 
609 1
 
 
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
GLB
971 
 
971 
 
 
609 
 
 
Equity Securities [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
2 
0 
2 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
10 
1 
23 
1 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
(1)
0 
1 
0 
 
 
 
 
Transfers Into Level 3, Asset
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
 
0 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
 
 
 
 
Short-term Investments [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
0 
 
0 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
50 
 
50 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
 
0 
 
 
 
 
 
Transfers Into Level 3, Asset
0 
 
0 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
 
0 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
 
0 
 
 
 
 
 
Other Long-term Investments [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
8 
7 
14 
16 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
2 
0 
0 
 
 
 
 
Transfers Into Level 3, Asset
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
 
0 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
(3)
(3)
(10)
(6)
 
 
 
 
Other Derivative Instruments Fair Value [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
Fair Value Measurement With Unobservable Inputs, Rreconciliation, Recurring Basis, Liability Net Realized Gain Loss Attributable To Changes In Fair Value
0 
(1)
2 
1 
 
 
 
 
Purchases, Liabilities
0 
 
2 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
0 
1 
(2)
1 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
$ 10 
$ 3 
$ 10 
$ 3 
$ 10 
$ 6 
$ 4 
$ 4 
Fair Value Measurements (Financial Instruments Measured At Fair Value Using Significant Unobservable Inputs) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Net Realized Gains/Losses, Assets
 
 
 
$ (1)
 
 
 
Guaranteed Living Benefit [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Balance - Beginning of Period, Liabilities
839 1
451 1
609 1
406 1
 
 
 
Transfers into level 3, liability
0 
0 
0 
0 
 
 
 
Transfers out of Level 3, Liabilities
 
 
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
0 
0 
0 
0 
 
 
 
Net Realized Gains/Losses, Liabilities
132 
(104)
362 
(59)
 
 
 
Sales, Liabilities
0 
0 
0 
0 
 
 
 
Settlements, Liabilities
0 
0 
0 
0 
 
 
 
Balance - End of Period, Liabilities
971 1 2
347 1 2
971 1 2
347 1 2
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities
132 
(104)
362 2
(59)2
 
 
 
Purchases, Liabilities
0 
0 
0 
0 
 
 
 
Reported liabilities
1,300 
615 
1,300 
615 
888 
716 
663 
Foreign [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Balance-End of Period, Assets
 
214 
 
214 
 
 
 
Equity Securities [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Transfers Into Level 3, Asset
0 
0 
0 
0 
 
 
 
Balance- Beginning of Period, Assets
29 
2 
16 
2 
 
 
 
Transfers out of Level 3, Assets
 
 
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
1 
0 
(1)
0 
 
 
 
Net Realized Gains/Losses, Assets
1 
(1)
1 
 
 
 
 
Sales, Assets
(2)
0 
(2)
0 
 
 
 
Settlements, Assets
0 
0 
0 
0 
 
 
 
Balance-End of Period, Assets
37 
2 
37 
2 
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
(1)
0 
(1)
 
 
 
Purchases, Assets
10 
1 
23 
1 
 
 
 
Short-term Investments [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Transfers Into Level 3, Asset
0 
 
0 
 
 
 
 
Balance- Beginning of Period, Assets
0 
 
0 
 
 
 
 
Transfers out of Level 3, Assets
 
 
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
 
0 
 
 
 
 
Net Realized Gains/Losses, Assets
0 
 
0 
 
 
 
 
Sales, Assets
0 
 
0 
 
 
 
 
Settlements, Assets
0 
 
0 
 
 
 
 
Balance-End of Period, Assets
50 
 
50 
 
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
 
0 
 
 
 
 
Purchases, Assets
50 
 
50 
 
 
 
 
Other Long-term Investments [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Transfers Into Level 3, Asset
0 
0 
0 
0 
 
 
 
Balance- Beginning of Period, Assets
211 
208 
212 
204 
 
 
 
Transfers out of Level 3, Assets
 
 
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
(2)
0 
0 
 
 
 
Net Realized Gains/Losses, Assets
0 
 
0 
0 
 
 
 
Sales, Assets
0 
0 
0 
0 
 
 
 
Settlements, Assets
(3)
(3)
(10)
(6)
 
 
 
Balance-End of Period, Assets
216 
214 
216 
214 
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
0 
0 
0 
 
 
 
Purchases, Assets
8 
7 
14 
16 
 
 
 
Other Derivative Instruments Fair Value [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Balance - Beginning of Period, Liabilities
10 
4 
6 
4 
 
 
 
Transfers into level 3, liability
0 
 
 
0 
 
 
 
Transfers out of Level 3, Liabilities
 
 
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
0 
 
 
0 
 
 
 
Net Realized Gains/Losses, Liabilities
0 
(1)
2 
(1)
 
 
 
Sales, Liabilities
0 
 
 
0 
 
 
 
Settlements, Liabilities
0 
 
 
0 
 
 
 
Balance - End of Period, Liabilities
10 
3 
10 
3 
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities
0 
1 
(2)
(1)
 
 
 
Purchases, Liabilities
0 
 
2 
0 
 
 
 
Available-for-sale Securities [Member] |
Foreign [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Transfers Into Level 3, Asset
3 
28 
9 
28 
 
 
 
Balance- Beginning of Period, Assets
62 
22 
57 
22 
 
 
 
Transfers out of Level 3, Assets
 
 
(2)
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
(3)
2 
9 
(2)
 
 
 
Net Realized Gains/Losses, Assets
(1)
0 
(6)
0 
 
 
 
Sales, Assets
(7)
0 
(8)
(1)
 
 
 
Settlements, Assets
0 
0 
(4)
0 
 
 
 
Balance-End of Period, Assets
87 
56 
87 
56 
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
(1)
0 
(5)
0 
 
 
 
Purchases, Assets
27 
8 
32 
9 
 
 
 
Available-for-sale Securities [Member] |
Corporate [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Transfers Into Level 3, Asset
2 
12 
18 
13 
 
 
 
Balance- Beginning of Period, Assets
261 
167 
174 
187 
 
 
 
Transfers out of Level 3, Assets
 
 
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
(9)
3 
11 
0 
 
 
 
Net Realized Gains/Losses, Assets
(2)
0 
(8)
(3)
 
 
 
Sales, Assets
(16)
(2)
(30)
(5)
 
 
 
Settlements, Assets
(4)
(15)
(8)
(41)
 
 
 
Balance-End of Period, Assets
281 
167 
281 
167 
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
0 
(7)
(2)
 
 
 
Purchases, Assets
31 
8 
124 
16 
 
 
 
Available-for-sale Securities [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
 
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
Transfers Into Level 3, Asset
0 
0 
0 
0 
 
 
 
Balance- Beginning of Period, Assets
48 
33 
53 
15 
 
 
 
Transfers out of Level 3, Assets
 
 
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
0 
0 
0 
 
 
 
Net Realized Gains/Losses, Assets
0 
0 
0 
0 
 
 
 
Sales, Assets
0 
0 
(5)
0 
 
 
 
Settlements, Assets
0 
(1)
0 
(1)
 
 
 
Balance-End of Period, Assets
49 
55 
49 
55 
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
0 
0 
0 
 
 
 
Purchases, Assets
$ 1 
$ 23 
$ 1 
$ 41 
 
 
 
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Investments in partially-owned insurance companies
$ 658 
$ 653 
Held-to-maturity Securities, Fair Value
11,581 
8,552 
Repurchase Agreements
1,405 
1,404 
Liabilities
112,977 
73,171 
Long-term debt
12,631 
9,389 
Short-term debt
500 
0 
Trust preferred securities
308 
307 
Held-to-maturity Securities
11,090 
8,430 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
605 
583 
Repurchase Agreements
0 
0 
Liabilities
0 
0 
Long-term Debt, Fair Value
0 
0 
Short-term Debt, Fair Value
0 
 
Trust preferred securities
0 
0 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
10,963 
7,955 
Repurchase Agreements
1,405 
1,404 
Liabilities
16,003 
11,528 
Long-term Debt, Fair Value
13,633 
9,678 
Short-term Debt, Fair Value
514 
 
Trust preferred securities
451 
446 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
13 
14 
Repurchase Agreements
0 
0 
Liabilities
0 
0 
Long-term Debt, Fair Value
0 
0 
Short-term Debt, Fair Value
0 
 
Trust preferred securities
0 
0 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
605 
583 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
111 
162 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Foreign [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Foreign [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
773 
785 
Foreign [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Corporate [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Corporate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
3,002 
3,042 
Corporate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
13 
14 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
1,676 
1,743 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
5,401 
2,223 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
11,581 
8,552 
Repurchase Agreements
1,405 
1,404 
Liabilities
16,003 
11,528 
Long-term Debt, Fair Value
13,633 
9,678 
Short-term Debt, Fair Value
514 
 
Trust preferred securities
451 
446 
Estimate of Fair Value Measurement [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
716 
745 
Estimate of Fair Value Measurement [Member] |
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
773 
785 
Estimate of Fair Value Measurement [Member] |
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
3,015 
3,056 
Estimate of Fair Value Measurement [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
1,676 
1,743 
Estimate of Fair Value Measurement [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
5,401 
2,223 
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Repurchase Agreements
1,405 
1,404 
Liabilities
14,844 
11,100 
Long-term debt
12,631 
9,389 
Short-term debt
500 
 
Trust preferred securities
308 
307 
Held-to-maturity Securities
11,090 
8,430 
Reported Value Measurement [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
686 
733 
Reported Value Measurement [Member] |
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
730 
763 
Reported Value Measurement [Member] |
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
2,882 
3,054 
Reported Value Measurement [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
1,600 
1,707 
Reported Value Measurement [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
$ 5,192 
$ 2,173 
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Schedule Of Guaranteed Minimum Benefits Income And Expense) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
Net premiums earned
$ 7,405 
$ 4,360 
$ 14,002 
$ 8,287 
Policy benefits and other reserve adjustments
146 
153 
272 
295 
Net realized gains (losses)
(216)
126 
(610)
37 
Guaranteed Minimum Death Benefit [Member]
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
Net premiums earned
13 
16 
27 
32 
Policy benefits and other reserve adjustments
15 
11 
23 
20 
Guaranteed Living Benefit [Member]
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
Net premiums earned
31 
30 
60 
62 
Policy benefits and other reserve adjustments
4 
7 
15 
19 
Net realized gains (losses)
(137)
104 
(371)
59 
Loss recognized in Net income
(110)
127 
(326)
102 
Less: Net cash received
24 
26 
42 
54 
Net (increase) decrease in liability
$ (134)
$ 101 
$ (368)
$ 48 
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Guaranteed Minimum Death Benefit [Member]
 
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
 
Reported liabilities
$ 118 
$ 117 
 
 
 
Guaranteed Living Benefit [Member]
 
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
 
Reported liabilities
1,300 
888 
615 
716 
663 
Fair value derivative adjustment in liability
$ 971 
$ 609 
 
 
 
Goodwill and other intangible assets Schedule of finite-lived and indefinite-lived intangible assets acquired (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 6 Months Ended
Jan. 14, 2016
Jun. 30, 2016
Minimum [Member]
Jun. 30, 2016
Maximum [Member]
Jun. 30, 2016
Unearned premium reserves [Member]
Jun. 30, 2016
Agency distribution relationships and renewal rights [Member]
Jun. 30, 2016
Internally Developed Technology [Member]
Jun. 30, 2016
Trademarks [Member]
Jun. 30, 2016
Syndicate capacity [Member]
Jun. 30, 2016
Licenses [Member]
Acquired Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
Finite-lived Intangible Assets Acquired
 
 
 
$ 1,550 
$ 3,150 
$ 95 
 
 
 
Indefinite-lived Intangible Assets Acquired
 
 
 
 
 
 
2,800 
10 
50 
Total identified intangible assets acquired
$ 7,655 
 
 
 
 
 
 
 
 
Estimated Useful Life
 
1 year 
24 years 
1 year 
24 years 
3 years 
 
 
 
Goodwill and other intangible assets Schedule of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2016
North America Commercial P&C Insurance [Member]
Jun. 30, 2016
North America Personal P&C Insurance [Member]
Jun. 30, 2016
North America Agricultural Insurance [Member]
Jun. 30, 2016
Overseas General Insurance [Member]
Jun. 30, 2016
Global Reinsurance [Member]
Jun. 30, 2016
Life Insurance [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Jun. 30, 2016
The Chubb Corporation [Member]
Minimum [Member]
Jun. 30, 2016
The Chubb Corporation [Member]
Maximum [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Other Intangible Assets, Net
$ 7,398 
$ 887 
 
 
 
 
 
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Goodwill, beginning of period
4,796 
 
1,203 
196 
134 
2,078 
365 
820 
10,526 
 
 
Goodwill, Acquired During Period
10,526 
 
5,712 
2,025 
0 
2,789 
0 
0 
 
 
 
Goodwill, Translation Adjustments
203 
 
58 
18 
0 
126 
0 
1 
 
 
 
Goodwill, end of period
15,525 
 
6,973 
2,239 
134 
4,993 
365 
821 
10,526 
 
 
Increase Decrease on Acquired Unpaid Losses and Loss Expenses
 
 
 
 
 
 
 
 
$ 715 
 
 
Amortization Period of Increase Decrease to Acquired Unpaid Losses and Loss Expenses
 
 
 
 
 
 
 
 
 
5 years 
17 years 
Debt (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Jan. 14, 2016
The Chubb Corporation [Member]
Jun. 30, 2016
Chubb INA Capital Securities Due 2067 [Member]
Jun. 30, 2016
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Dec. 31, 2015
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Apr. 14, 2017
London Interbank Offered Rate (LIBOR) [Member]
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
Long-term debt
$ 12,631 
$ 9,389 
$ 3,800 
 
$ 961 
$ 0 
 
Face amount of debt
 
 
3,300 
1,000 
1,000 
 
 
Interest Rate
 
 
 
 
6.375% 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
2.25% 
Repurchase Agreements
$ 1,405 
$ 1,404 
 
 
 
 
 
Debt (Schedule of Debt Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2016
Chubb INA Capital Securities Due 2067 [Member]
Jun. 30, 2016
Senior Notes [Member]
Dec. 31, 2015
Senior Notes [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due February 2017 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due February 2017 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due March 2018 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due March 2018 [Member]
Jun. 30, 2016
Senior Notes [Member]
Chubb INA Senior Notes Due May 2018 [Member]
Dec. 31, 2015
Senior Notes [Member]
Chubb INA Senior Notes Due May 2018 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due June 2019 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due June 2019 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due November 2020 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due November 2020 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due November 2022 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due November 2022 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due March 2023 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due March 2023 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due May 2024 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due May 2024 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due March 2025 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due March 2025 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due May 2026 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due May 2026 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due May 2036 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due May 2036 [Member]
Jun. 30, 2016
Senior Notes [Member]
Chubb INA Senior Notes Due 2037 [Member]
Dec. 31, 2015
Senior Notes [Member]
Chubb INA Senior Notes Due 2037 [Member]
Jun. 30, 2016
Senior Notes [Member]
Chubb INA Senior Notes Due 2038 [Member]
Dec. 31, 2015
Senior Notes [Member]
Chubb INA Senior Notes Due 2038 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due March 2043 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due March 2043 [Member]
Jun. 30, 2016
Senior Notes [Member]
INA Senior Notes Due November 2045 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due November 2045 [Member]
Jun. 30, 2016
Senior Notes [Member]
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
Dec. 31, 2015
Senior Notes [Member]
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
Jun. 30, 2016
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Dec. 31, 2015
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Jun. 30, 2016
Debentures Subject to Mandatory Redemption [Member]
Chubb INA Senior Notes Due August 2018 [Member]
Jun. 30, 2016
Debentures Subject to Mandatory Redemption [Member]
INA Senior Notes Due August 2029 [Member]
Dec. 31, 2015
Debentures Subject to Mandatory Redemption [Member]
INA Senior Notes Due August 2029 [Member]
Jun. 30, 2016
Unsecured Debt [Member]
Chubb INA Senior Notes Due 2031 [Member]
Dec. 31, 2015
Unsecured Debt [Member]
Chubb INA Senior Notes Due 2031 [Member]
Jun. 30, 2016
Trust Preferred Securities [Member]
INA Capital Securities Due April 2030 [Member]
Dec. 31, 2015
Trust Preferred Securities [Member]
INA Capital Securities Due April 2030 [Member]
Jun. 30, 2016
Repurchase Agreements [Member]
Dec. 31, 2015
Repurchase Agreements [Member]
Jun. 30, 2016
Minimum [Member]
Senior Notes [Member]
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
Jun. 30, 2016
Minimum [Member]
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Jun. 30, 2016
Maximum [Member]
Senior Notes [Member]
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
Jun. 30, 2016
Maximum [Member]
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Minimum [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Maximum [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount of debt
 
 
$ 1,000 
 
 
$ 500 
 
$ 300 
 
$ 600 
 
$ 500 
 
$ 1,300 
 
$ 1,000 
 
$ 475 
 
$ 700 
 
$ 800 
 
$ 1,500 
 
$ 300 
 
$ 800 
 
$ 600 
 
$ 475 
 
$ 1,500 
 
 
 
$ 1,000 
 
$ 100 
$ 100 
 
$ 200 
 
 
 
 
 
 
 
 
 
$ 3,300 
 
 
Repurchase Agreements
1,405 
1,404 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,405 
1,404 
 
 
 
 
 
 
 
Short-term debt
500 
0 
 
 
 
500 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term Debt, Weighted Average Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.80% 
0.60% 
 
 
 
 
 
 
 
Interest Rate
 
 
 
 
 
5.70% 
 
5.80% 
 
5.75% 
 
5.90% 
 
2.30% 
 
2.875% 
 
2.70% 
 
3.35% 
 
3.15% 
 
3.35% 
 
6.70% 
 
6.00% 
 
6.50% 
 
4.15% 
 
4.35% 
 
 
 
6.375% 
 
6.60% 
8.875% 
 
6.80% 
 
 
 
 
 
2.75% 
 
7.10% 
 
 
2.30% 
4.35% 
Long-term debt
12,631 
9,389 
 
12,631 
9,389 
0 
500 
300 
299 
648 
0 
497 
497 
1,294 
1,294 
994 
994 
471 
471 
694 
694 
794 
794 
1,487 
1,487 
297 
297 
984 
0 
780 
0 
469 
469 
1,482 
1,482 
11 
11 
961 
0 
109 
100 
100 
259 
0 
 
 
 
 
 
 
 
 
3,800 
 
 
Make Whole Premium Additional Percent
 
 
 
 
 
0.20% 
 
0.35% 
 
0.30% 
 
0.40% 
 
0.15% 
 
0.20% 
 
0.10% 
 
0.15% 
 
0.15% 
 
0.20% 
 
0.20% 
 
0.20% 
 
0.30% 
 
0.15% 
 
0.25% 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
0.25% 
 
0.50% 
 
 
 
Trust preferred securities
$ 308 
$ 307 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 308 
$ 307 
 
 
 
 
 
 
 
 
 
Commitments, Contingencies, And Guarantees (Balance Sheet Locations, Fair Values In Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
$ 1,258 
$ 1,029 
Cross Currency Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 
0 
Fair Value, Asset
0 
0 
Notional Value/Payment Provision
95 
95 
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,249 
751 
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
6 1
40 1
Investment And Embedded Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
20 
43 
Notional Value/Payment Provision
2,608 
1,915 
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,225 2
1,197 2
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
277 
15 
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,502 
1,212 
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,511 3
1,155 3
Other Assets [Member] |
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
10 
7 
Other Assets [Member] |
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
8 
5 
Other Assets [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
0 2
0 2
Other Assets [Member] |
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
7 
0 
Other Assets [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
7 
0 
Other Assets [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
0 3
0 3
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(27)
(11)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(44)
(2)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 1
0 1
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Investment And Embedded Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(71)
(13)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(4)2
(4)2
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(10)
(6)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(14)
(10)
Fixed Maturities Available For Sale [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
2 1
31 1
Accounts Payable Future Policy Benefits [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
$ (1,256)3
$ (888)3
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Repurchase Agreements
$ 1,405 
$ 1,404 
Assets pledged under repurchase agreements
1,457 
1,459 
Securities lending collateral
1,142 
1,046 
Securities lending payable
1,143 
1,047 
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
239 
 
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
1,218 
 
Repurchase Agreements [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
52 
 
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
(1)
 
Overnight and Continuous [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
447 
 
Overnight and Continuous [Member] |
Corporate [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
11 
 
Overnight and Continuous [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
71 
 
Maturity Less than 30 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
563 
 
Maturity Less than 30 Days [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
234 
 
Maturity Less than 30 Days [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
329 
 
Maturity Greater than 90 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
894 
 
Maturity Greater than 90 Days [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
5 
 
Maturity Greater than 90 Days [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
$ 889 
 
Commitments, Contingencies, And Guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
$ (206)
$ 128 
$ (490)
$ 72 
Foreign Exchange Future [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
(10)
(10)
(20)
15 
All Other Futures Contracts And Options [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
(37)
42 
(71)
13 
Convertibles and Bonds with Warrants Attached [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
0 1
(5)1
5 1
0 1
Investment And Embedded Derivative Instruments [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
(47)
27 
(86)
28 
Guaranteed Living Benefits [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
(131)2
104 2
(359)2
59 2
Single-Stock Future [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
(28)3
(2)3
(43)3
(13)3
Options On Equity Market Indices [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
0 3
0 3
0 3
(1)3
Guaranteed Living Benefit And Other Derivative Instruments [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
(159)
101 
(404)
44 
Other Derivatives [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Net realized gains (losses)
$ 0 
$ (1)
$ (2)
$ (1)
Commitments, Contingencies, And Guarantees (Narrative) (Detail) (USD $)
Jun. 30, 2016
Dec. 31, 2015
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
$ 1,142,000,000 
$ 1,046,000,000 
Carrying value of limited partnerships and partially-owned investment companies included in other investments
3,300,000,000 
 
Funding commitments relating to limited partnerships and partially-owned investment companies
2,100,000,000 
 
Unrecognized tax benefits
20,000,000 
 
Derivative liability subject to a master netting agreement
51,000,000 
1,000,000 
Purchase Commitment, Remaining Minimum Amount Committed
243,000,000 
 
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
1,000,000 
 
Cash and Cash Equivalents [Member] |
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
447,000,000 
 
U.S. Treasury And Agency [Member] |
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
71,000,000 
 
Corporate [Member] |
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
$ 11,000,000 
 
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 1,142 
$ 1,046 
Securities lending payable
1,143 
1,047 
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
(1)
 
Cash and Cash Equivalents [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
447 
 
Equity Securities [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
351 
 
Corporate [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
11 
 
Foreign Government Debt [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
262 
 
U.S. Treasury And Agency [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 71 
 
Shareholders' equity Shareholders' equity (Details)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
Jun. 30, 2016
CHF
Jun. 30, 2015
USD ($)
Jun. 30, 2015
CHF
Mar. 31, 2015
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2016
CHF
Jun. 30, 2015
USD ($)
Jun. 30, 2015
CHF
May 31, 2016
USD ($)
Dec. 31, 2015
CHF
May 31, 2015
USD ($)
May 31, 2014
USD ($)
Jun. 30, 2016
Common Stock [Member]
USD ($)
Jun. 30, 2016
Common Stock [Member]
CHF
Jun. 30, 2015
Common Stock [Member]
USD ($)
Jun. 30, 2015
Common Stock [Member]
CHF
Jun. 30, 2016
Common Stock [Member]
USD ($)
Jun. 30, 2016
Common Stock [Member]
CHF
Jun. 30, 2015
Common Stock [Member]
USD ($)
Jun. 30, 2015
Common Stock [Member]
CHF
Jun. 30, 2016
Additional Paid-in Capital [Member]
USD ($)
Jun. 30, 2016
Additional Paid-in Capital [Member]
CHF
Jun. 30, 2015
Additional Paid-in Capital [Member]
USD ($)
Jun. 30, 2015
Additional Paid-in Capital [Member]
CHF
Jun. 30, 2016
Additional Paid-in Capital [Member]
USD ($)
Jun. 30, 2016
Additional Paid-in Capital [Member]
CHF
Jun. 30, 2015
Additional Paid-in Capital [Member]
USD ($)
Jun. 30, 2015
Additional Paid-in Capital [Member]
CHF
Jun. 30, 2015
2015 Stock Repurchase Plan [Member]
USD ($)
Jun. 30, 2015
2015 Stock Repurchase Plan [Member]
USD ($)
Jan. 1, 2015
2015 Stock Repurchase Plan [Member]
USD ($)
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Shares, par value
 
 24.15 
 
 
 
 
 24.15 
 
 
 
 24.15 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Dividend Rate, Per-Dollar-Amount
 
 
$ 0.67 
 
$ 0.65 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
$ 0.69 
 0.68 
$ 0.67 
 0.62 
 
$ 1.36 
 1.34 
$ 1.32 
 1.24 
 
 
 
 
$ 0 
 0 
$ 0 
 0 
$ 0 
 0 
$ 0.65 
 0.62 
$ 0.69 
 0.68 
$ 0.67 
 0.62 
$ 1.36 
 1.34 
$ 0.67 
 0.62 
 
 
 
Common Shares repurchased
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 394,000,000 
$ 734,000,000 
 
Repurchase of outstanding common shares, shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,650,200 
6,677,663 
 
Common Shares in treasury, shares
14,770,884 
14,770,884 
 
 
 
14,770,884 
14,770,884 
 
 
 
18,268,971 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Authorized amount of share repurchase program
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,500,000,000 
Annual dividend per share approved by shareholders
 
 
 
 
 
 
 
 
 
$ 2.76 
 
$ 2.68 
$ 2.60 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-Based Compensation (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended
Jun. 30, 2016
May 31, 2016
Jan. 14, 2016
The Chubb Corporation [Member]
Jun. 30, 2016
The Chubb Corporation [Member]
Feb. 25, 2016
Stock Options [Member]
Feb. 25, 2016
Restricted Stock [Member]
Jun. 30, 2016
Restricted Stock [Member]
Feb. 25, 2016
Restricted Stock Units (RSUs) [Member]
Feb. 25, 2016
Performance Shares [Member]
Jun. 30, 2016
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
Stock option vesting period in years
3 years 
 
 
 
 
 
 
 
 
 
Stock option term in years
10 years 
 
 
10 years 
 
 
 
 
 
 
Stock options granted
 
 
 
 
1,926,842 
 
 
 
 
 
Weighted-average grant date fair value for stock options granted
 
 
 
 
$ 21.52 
 
 
 
 
 
Restricted stock award and units vesting period in years
 
 
 
3 years 
 
 
4 years 
 
 
4 years 
Restricted stock awards granted to employees and officers of the company
 
 
 
 
 
1,119,686 
 
 
 
 
Restricted stock units awarded to employees and officers of the company
 
 
 
 
 
 
 
337,581 
452,820 
 
Grant date fair value of awards except for options granted to employees and officers of the company
 
 
 
 
 
$ 118.39 
 
 
 
 
Attributed Value Equity Awards Assumed in Acquisition
 
 
$ 323 
 
 
 
 
 
 
 
Total Value of Equity Awards Issued in Acquisition
 
 
$ 525 
 
 
 
 
 
 
 
Shares authorized to be issued
 
19,500,000 
 
 
 
 
 
 
 
 
Postretirement benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2016
Jun. 30, 2016
Pension Plan [Member]
Jun. 30, 2015
Pension Plan [Member]
Jun. 30, 2016
Pension Plan [Member]
Jun. 30, 2015
Pension Plan [Member]
Jan. 14, 2016
Pension Plan [Member]
The Chubb Corporation [Member]
Jun. 30, 2016
Pension Plan [Member]
U.S. [Member]
Jun. 30, 2015
Pension Plan [Member]
U.S. [Member]
Jun. 30, 2016
Pension Plan [Member]
U.S. [Member]
Jun. 30, 2015
Pension Plan [Member]
U.S. [Member]
Jan. 14, 2016
Pension Plan [Member]
U.S. [Member]
The Chubb Corporation [Member]
Jun. 30, 2016
Pension Plan [Member]
Non-US [Member]
Jun. 30, 2015
Pension Plan [Member]
Non-US [Member]
Jun. 30, 2016
Pension Plan [Member]
Non-US [Member]
Jun. 30, 2015
Pension Plan [Member]
Non-US [Member]
Dec. 31, 2015
Pension Plan [Member]
Non-US [Member]
Jan. 14, 2016
Pension Plan [Member]
Non-US [Member]
The Chubb Corporation [Member]
Jun. 30, 2016
Other Postretirement Benefit Plan [Member]
Jun. 30, 2016
Other Postretirement Benefit Plan [Member]
Jan. 14, 2016
Other Postretirement Benefit Plan [Member]
The Chubb Corporation [Member]
Jun. 30, 2016
Other Postretirement Benefit Plan [Member]
U.S. [Member]
Jun. 30, 2016
Other Postretirement Benefit Plan [Member]
U.S. [Member]
Jan. 14, 2016
Other Postretirement Benefit Plan [Member]
U.S. [Member]
The Chubb Corporation [Member]
Jun. 30, 2016
Other Postretirement Benefit Plan [Member]
Non-US [Member]
Jun. 30, 2016
Other Postretirement Benefit Plan [Member]
Non-US [Member]
Jan. 14, 2016
Other Postretirement Benefit Plan [Member]
Non-US [Member]
The Chubb Corporation [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate of Compensation Increase
 
 
 
 
 
 
 
 
 
4.00% 
 
 
 
 
3.40% 
 
3.09% 
 
 
 
 
 
 
 
 
 
 
Expected Long-term Rate of Return on Plan Assets Assumption
 
 
 
 
 
 
 
 
 
7.00% 
 
 
 
 
4.90% 
 
4.81% 
 
 
 
 
 
7.00% 
 
 
 
 
Discount Rate
 
 
 
 
 
 
 
 
 
4.28% 
 
 
 
 
3.74% 
 
3.51% 
 
 
 
 
 
4.41% 
 
 
4.30% 
 
Contributions During Current Period
$ 105 
$ 132 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected Contribution For Remainder of Year
 
19 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Cost
 
 
24 
1 
46 
3 
 
20 
0 
37 
0 
 
4 
1 
9 
3 
 
 
3 
5 
 
2 
4 
 
1 
1 
 
Interest Cost
 
 
35 
5 
70 
10 
 
27 
0 
54 
0 
 
8 
5 
16 
10 
 
 
4 
9 
 
4 
9 
 
0 
0 
 
Expected Return on Plan Assets
 
 
(52)
(7)
(99)
(14)
 
(42)
0 
(79)
0 
 
(10)
(7)
(20)
(14)
 
 
(2)
(4)
 
(2)
(4)
 
0 
0 
 
Amortization of Actuarial (Gain) Loss
 
 
1 
1 
2 
2 
 
0 
0 
0 
0 
 
1 
1 
2 
2 
 
 
0 
0 
 
0 
0 
 
0 
0 
 
Net Periodic Benefit Cost
 
 
8 
0 
19 
1 
 
5 
0 
12 
0 
 
3 
0 
7 
1 
 
 
5 
10 
 
4 
9 
 
1 
1 
 
Fair Value of Plan Assets
 
 
 
 
 
 
2,788 
 
 
 
 
2,473 
 
 
 
 
 
315 
 
 
138 
 
 
138 
 
 
0 
Projected Benefit Obligation
 
 
 
 
 
 
(3,525)
 
 
 
 
(3,153)
 
 
 
 
 
(372)
 
 
(506)
 
 
(491)
 
 
(15)
Funded Status of Plan
 
 
 
 
 
 
$ (737)
 
 
 
 
$ (680)
 
 
 
 
 
$ (57)
 
 
$ (368)
 
 
$ (353)
 
 
$ (15)
Segment Information (Operations By Segment) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
$ 7,639 
$ 4,784 
$ 13,634 
$ 8,860 
Net premiums earned
7,405 
4,360 
14,002 
8,287 
Losses and loss expenses
4,254 
2,417 
7,928 
4,539 
Policy benefits
146 
153 
272 
295 
Policy acquisition costs
1,560 
727 
2,973 
1,434 
Administrative expenses
829 
578 
1,601 
1,132 
Underwriting income (loss)
616 
485 
1,228 
887 
Net investment income
708 
562 
1,382 
1,113 
Other (income) expense
(29)
(38)
(1)
(73)
Segment Income (loss)
1,353 
1,085 
2,611 
2,073 
Net realized gains (losses) including OTTI
(216)
126 
(610)
37 
Interest expense
153 
71 
299 
139 
Amortization of purchased intangibles
5 
55 
12 
85 
Chubb integration expenses
98 
0 
246 
0 
Income tax expense
155 
143 
279 
263 
Net income (loss)
726 
942 
1,165 
1,623 
North America Agricultural Insurance segment income
14 
 
 
 
North America Commercial P&C Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
3,245 
1,428 
5,547 
2,725 
Net premiums earned
3,148 
1,419 
6,044 
2,799 
Losses and loss expenses
1,971 
916 
3,718 
1,831 
Policy acquisition costs
545 
131 
1,027 
261 
Administrative expenses
299 
154 
565 
305 
Underwriting income (loss)
333 
218 
734 
402 
Net investment income
468 
262 
894 
520 
Other (income) expense
(9)
1 
(9)
(2)
Segment Income (loss)
810 
479 
1,637 
924 
North America Personal P&C Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
1,231 
547 
2,102 
680 
Net premiums earned
1,140 
269 
2,164 
415 
Losses and loss expenses
661 
156 
1,322 
267 
Policy acquisition costs
269 
(1)
518 
30 
Administrative expenses
98 
34 
186 
53 
Underwriting income (loss)
112 
80 
138 
65 
Net investment income
55 
7 
102 
12 
Other (income) expense
3 
0 
4 
0 
Segment Income (loss)
164 
87 
236 
77 
North America Agricultural Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
375 
379 
439 
467 
Net premiums earned
327 
321 
350 
385 
Losses and loss expenses
284 
271 
254 
293 
Policy acquisition costs
25 
23 
29 
19 
Administrative expenses
2 
4 
(2)
3 
Underwriting income (loss)
16 
23 
69 
70 
Net investment income
5 
6 
10 
12 
Other (income) expense
0 
1 
0 
2 
Segment Income (loss)
21 
28 
79 
80 
Net realized gains (losses) including OTTI
2 
 
 
 
Overseas General Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
2,031 
1,669 
4,072 
3,463 
Net premiums earned
2,093 
1,644 
4,048 
3,281 
Losses and loss expenses
1,089 
816 
2,110 
1,630 
Policy acquisition costs
537 
396 
1,040 
785 
Administrative expenses
277 
254 
540 
510 
Underwriting income (loss)
190 
178 
358 
356 
Net investment income
147 
139 
293 
277 
Other (income) expense
(5)
(4)
(10)
(6)
Segment Income (loss)
342 
321 
661 
639 
Global Reinsurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
230 
261 
431 
534 
Net premiums earned
185 
220 
387 
446 
Losses and loss expenses
87 
72 
176 
171 
Policy acquisition costs
47 
60 
100 
114 
Administrative expenses
14 
13 
28 
25 
Underwriting income (loss)
37 
75 
83 
136 
Net investment income
65 
79 
132 
154 
Other (income) expense
(2)
0 
(3)
(1)
Segment Income (loss)
104 
154 
218 
291 
Life Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
527 
500 
1,043 
991 
Net premiums earned
512 
487 
1,009 
961 
Losses and loss expenses
147 
137 
324 
289 
Policy benefits
146 
153 
272 
295 
Policy acquisition costs
137 
118 
259 
225 
Administrative expenses
77 
74 
149 
147 
Underwriting income (loss)
5 
5 
5 
5 
Net investment income
69 
66 
136 
132 
Other (income) expense
0 
(7)
6 
(16)
Segment Income (loss)
74 
78 
135 
153 
Corporate And Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Losses and loss expenses
15 
49 
24 
58 
Policy acquisition costs
 
0 
 
0 
Administrative expenses
62 
45 
135 
89 
Underwriting income (loss)
(77)
(94)
(159)
(147)
Net investment income
(101)
3 
(185)
6 
Other (income) expense
(16)
(29)
11 
(50)
Segment Income (loss)
(162)
(62)
(355)
(91)
Net realized gains (losses) including OTTI
(216)
126 
(610)
37 
Interest expense
153 
71 
299 
139 
Amortization of purchased intangibles
5 
55 
12 
85 
Chubb integration expenses
98 
 
246 
 
Income tax expense
155 
143 
279 
263 
Net income (loss)
$ (789)
$ (205)
$ (1,801)
$ (541)
Earnings Per Share (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Earnings Per Share [Abstract]
 
 
 
 
Net income
$ 726 
$ 942 
$ 1,165 
$ 1,623 
Weighted-average shares outstanding
467,701,328 
325,463,196 
457,102,802 
326,795,838 
Share-based compensation plans
3,455,969 
3,222,562 
3,379,559 
3,373,809 
Weighted-average shares outstanding and assumed conversions
471,157,297 
328,685,758 
460,482,361 
330,169,647 
Basic earnings per share (US$ per share)
$ 1.55 
$ 2.89 
$ 2.55 
$ 4.97 
Diluted earnings per share (US$ per share)
$ 1.54 
$ 2.86 
$ 2.53 
$ 4.91 
Potential anti-dilutive share conversions
2,103,281 
1,934,454 
2,056,018 
1,306,817 
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jan. 14, 2016
The Chubb Corporation [Member]
Jan. 14, 2016
Minimum [Member]
The Chubb Corporation [Member]
Jan. 14, 2016
Maximum [Member]
The Chubb Corporation [Member]
Debt Instrument [Line Items]
 
 
 
 
 
Intercompany Loan Agreements
 
 
$ 10,000 
 
 
Interest Rate
 
 
 
2.30% 
4.35% 
Par value of debt
 
 
3,300 
 
 
Long-term debt
$ 12,631 
$ 9,389 
$ 3,800 
 
 
Weighted Average Interest Rate
 
 
 
3.30% 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
$ 99,846 
$ 66,251 
 
 
Cash
1,011 1 2
1,775 1 3
790 4
655 4
Insurance and reinsurance balances receivable
8,532 
5,323 
 
 
Reinsurance recoverable on losses and loss expenses
13,235 
11,386 
 
 
Reinsurance recoverable on policy benefits
199 
187 
 
 
Value of business acquired
381 
395 
 
 
Goodwill and other intangible assets
22,923 
5,683 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
14,076 
11,306 
 
 
Total assets
160,203 
102,306 
 
 
Unpaid losses and loss expenses
60,819 
37,303 
 
 
Unearned premiums
15,229 
8,439 
 
 
Future policy benefits
4,975 
4,807 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Repurchase Agreements
1,405 
1,404 
 
 
Short-term debt
500 
0 
 
 
Affiliated notional cash pooling programs
0 
0 
 
 
Long-term debt
12,631 
9,389 
 
 
Trust preferred securities
308 
307 
 
 
Other liabilities
17,110 
11,522 
 
 
Total liabilities
112,977 
73,171 
 
 
Total shareholders' equity
47,226 
29,135 
29,555 
 
Total liabilities and shareholders’ equity
160,203 
102,306 
 
 
Consolidating Adjustments and Eliminations
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
0 
0 
 
 
Cash
(1,022)1 2
(971)1 3
(423)4
(555)4
Insurance and reinsurance balances receivable
(3,563)
(752)
 
 
Reinsurance recoverable on losses and loss expenses
(9,836)
(8,738)
 
 
Reinsurance recoverable on policy benefits
(986)
(942)
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
(86,423)
(47,998)
 
 
Due from subsidiaries and affiliates, net
(11,179)
(2,444)
 
 
Other assets
(4,415)
(3,593)
 
 
Total assets
(117,424)
(65,438)
 
 
Unpaid losses and loss expenses
(9,207)
(8,187)
 
 
Unearned premiums
(3,770)
(1,804)
 
 
Future policy benefits
(986)
(942)
 
 
Due to subsidiaries and affiliates, net
(11,179)
(2,444)
 
 
Repurchase Agreements
0 
0 
 
 
Short-term debt
0 
 
 
 
Affiliated notional cash pooling programs
(1,022)2
(971)3
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
(4,837)
(3,092)
 
 
Total liabilities
(31,001)
(17,440)
 
 
Total shareholders' equity
(86,423)
(47,998)
 
 
Total liabilities and shareholders’ equity
(117,424)
(65,438)
 
 
Chubb Limited (Parent Guarantor)
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
27 
28 
 
 
Cash
1 1 2
1 1 3
1 4
0 4
Insurance and reinsurance balances receivable
0 
0 
 
 
Reinsurance recoverable on losses and loss expenses
0 
0 
 
 
Reinsurance recoverable on policy benefits
0 
0 
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
37,011 
29,612 
 
 
Due from subsidiaries and affiliates, net
11,179 
644 
 
 
Other assets
7 
8 
 
 
Total assets
48,225 
30,293 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
0 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Repurchase Agreements
0 
0 
 
 
Short-term debt
0 
 
 
 
Affiliated notional cash pooling programs
776 2
882 3
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
223 
276 
 
 
Total liabilities
999 
1,158 
 
 
Total shareholders' equity
47,226 
29,135 
 
 
Total liabilities and shareholders’ equity
48,225 
30,293 
 
 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
618 
7,839 
 
 
Cash
207 1 2
2 1 3
3 4
1 4
Insurance and reinsurance balances receivable
0 
0 
 
 
Reinsurance recoverable on losses and loss expenses
0 
0 
 
 
Reinsurance recoverable on policy benefits
0 
0 
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
49,412 
18,386 
 
 
Due from subsidiaries and affiliates, net
0 
1,800 
 
 
Other assets
522 
457 
 
 
Total assets
50,759 
28,484 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
0 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
11,036 
0 
 
 
Repurchase Agreements
0 
0 
 
 
Short-term debt
500 
 
 
 
Affiliated notional cash pooling programs
246 2
89 3
 
 
Long-term debt
12,620 
9,378 
 
 
Trust preferred securities
308 
307 
 
 
Other liabilities
1,608 
1,422 
 
 
Total liabilities
26,318 
11,196 
 
 
Total shareholders' equity
24,441 
17,288 
 
 
Total liabilities and shareholders’ equity
50,759 
28,484 
 
 
Other Chubb Limited Subsidiaries
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
99,201 
58,384 
 
 
Cash
1,825 1 2
2,743 1 3
1,209 4
1,209 4
Insurance and reinsurance balances receivable
12,095 
6,075 
 
 
Reinsurance recoverable on losses and loss expenses
23,071 
20,124 
 
 
Reinsurance recoverable on policy benefits
1,185 
1,129 
 
 
Value of business acquired
381 
395 
 
 
Goodwill and other intangible assets
22,923 
5,683 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
17,962 
14,434 
 
 
Total assets
178,643 
108,967 
 
 
Unpaid losses and loss expenses
70,026 
45,490 
 
 
Unearned premiums
18,999 
10,243 
 
 
Future policy benefits
5,961 
5,749 
 
 
Due to subsidiaries and affiliates, net
143 
2,444 
 
 
Repurchase Agreements
1,405 
1,404 
 
 
Short-term debt
0 
 
 
 
Affiliated notional cash pooling programs
0 2
0 3
 
 
Long-term debt
11 
11 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
20,116 
12,916 
 
 
Total liabilities
116,661 
78,257 
 
 
Total shareholders' equity
61,982 
30,710 
 
 
Total liabilities and shareholders’ equity
$ 178,643 
$ 108,967 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
$ 7,639 
$ 4,784 
$ 13,634 
$ 8,860 
Net premiums earned
7,405 
4,360 
14,002 
8,287 
Net investment income
708 
562 
1,382 
1,113 
Equity in earnings of subsidiaries
0 
0 
0 
0 
Net realized gains (losses) including OTTI
(216)
126 
(610)
37 
Losses and loss expenses
4,254 
2,417 
7,928 
4,539 
Policy benefits
146 
153 
272 
295 
Policy acquisition costs and administrative expenses
2,389 
1,305 
4,574 
2,566 
Interest (income) expense
153 
71 
299 
139 
Other (income) expense
(29)
(38)
(1)
(73)
Amortization of purchased intangibles
5 
55 
12 
85 
Chubb integration expenses
98 
0 
246 
0 
Income tax expense
155 
143 
279 
263 
Net income (loss)
726 
942 
1,165 
1,623 
Comprehensive income (loss)
1,540 
397 
3,081 
1,039 
Chubb Limited (Parent Guarantor)
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
0 
0 
0 
0 
Net premiums earned
0 
0 
0 
0 
Net investment income
1 
0 
2 
1 
Equity in earnings of subsidiaries
664 
901 
1,039 
1,549 
Net realized gains (losses) including OTTI
(1)
0 
(1)
0 
Losses and loss expenses
0 
0 
0 
0 
Policy benefits
0 
0 
0 
0 
Policy acquisition costs and administrative expenses
16 
18 
33 
32 
Interest (income) expense
(93)
(7)
(173)
(15)
Other (income) expense
(4)
(57)
(13)
(98)
Amortization of purchased intangibles
0 
0 
0 
0 
Chubb integration expenses
14 
 
17 
 
Income tax expense
5 
5 
11 
8 
Net income (loss)
726 
942 
1,165 
1,623 
Comprehensive income (loss)
1,540 
397 
3,081 
1,039 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
0 
0 
0 
0 
Net premiums earned
0 
0 
0 
0 
Net investment income
3 
0 
7 
1 
Equity in earnings of subsidiaries
549 
296 
1,055 
500 
Net realized gains (losses) including OTTI
(1)
(2)
(1)
(2)
Losses and loss expenses
0 
0 
0 
0 
Policy benefits
0 
0 
0 
0 
Policy acquisition costs and administrative expenses
96 
7 
132 
13 
Interest (income) expense
233 
69 
448 
138 
Other (income) expense
10 
(4)
20 
(7)
Amortization of purchased intangibles
0 
0 
0 
0 
Chubb integration expenses
(97)
 
40 
 
Income tax expense
(37)
(27)
(187)
(53)
Net income (loss)
346 
249 
608 
408 
Comprehensive income (loss)
1,004 
(91)
2,060 
(67)
Other Chubb Limited Subsidiaries
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
7,639 
4,784 
13,634 
8,860 
Net premiums earned
7,405 
4,360 
14,002 
8,287 
Net investment income
704 
562 
1,373 
1,111 
Equity in earnings of subsidiaries
0 
0 
0 
0 
Net realized gains (losses) including OTTI
(214)
128 
(608)
39 
Losses and loss expenses
4,254 
2,417 
7,928 
4,539 
Policy benefits
146 
153 
272 
295 
Policy acquisition costs and administrative expenses
2,277 
1,280 
4,409 
2,521 
Interest (income) expense
13 
9 
24 
16 
Other (income) expense
(35)
23 
(8)
32 
Amortization of purchased intangibles
5 
55 
12 
85 
Chubb integration expenses
181 
 
189 
 
Income tax expense
187 
165 
455 
308 
Net income (loss)
867 
948 
1,486 
1,641 
Comprehensive income (loss)
1,681 
403 
3,402 
1,057 
Consolidating Adjustments and Eliminations
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
0 
0 
0 
0 
Net premiums earned
0 
0 
0 
0 
Net investment income
0 
0 
0 
0 
Equity in earnings of subsidiaries
(1,213)
(1,197)
(2,094)
(2,049)
Net realized gains (losses) including OTTI
0 
0 
0 
0 
Losses and loss expenses
0 
0 
0 
0 
Policy benefits
0 
0 
0 
0 
Policy acquisition costs and administrative expenses
0 
0 
0 
0 
Interest (income) expense
0 
0 
0 
0 
Other (income) expense
0 
0 
0 
0 
Amortization of purchased intangibles
0 
0 
0 
0 
Chubb integration expenses
0 
 
0 
 
Income tax expense
0 
0 
0 
0 
Net income (loss)
(1,213)
(1,197)
(2,094)
(2,049)
Comprehensive income (loss)
$ (2,685)
$ (312)
$ (5,462)
$ (990)
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Consolidating Adjustments and Eliminations
Jun. 30, 2015
Consolidating Adjustments and Eliminations
Jun. 30, 2016
Chubb Limited (Parent Guarantor)
Jun. 30, 2015
Chubb Limited (Parent Guarantor)
Jun. 30, 2016
Chubb INA Holdings Inc (Subsidiary Issuer)
Jun. 30, 2015
Chubb INA Holdings Inc (Subsidiary Issuer)
Jun. 30, 2016
Other Chubb Limited Subsidiaries
Jun. 30, 2015
Other Chubb Limited Subsidiaries
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
Net cash flows from operating activities
$ 2,153 
$ 1,891 
$ (7,372)
$ 0 
$ 3,213 
$ 65 
$ 4,050 
$ (35)
$ 2,262 
$ 1,861 
Purchases of fixed maturities available for sale
(17,077)
(9,210)
0 
0 
0 
0 
(83)
0 
(16,994)
(9,210)
Purchases of fixed maturities held to maturity
(121)
(24)
0 
0 
0 
0 
0 
0 
(121)
(24)
Purchases of equity securities
(78)
(70)
0 
0 
0 
0 
0 
0 
(78)
(70)
Sales of fixed maturities available for sale
11,868 
3,642 
0 
0 
0 
0 
0 
0 
11,868 
3,642 
Sales of equity securities
932 
102 
0 
0 
0 
0 
0 
0 
932 
102 
Maturities and redemptions of fixed maturities available for sale
3,910 
3,691 
0 
0 
0 
0 
0 
0 
3,910 
3,691 
Maturities and redemptions of fixed maturities held to maturity
443 
470 
0 
0 
0 
0 
0 
0 
443 
470 
Net change in short-term investments
11,711 
228 
0 
0 
0 
0 
7,829 
190 
3,882 
38 
Net derivative instruments settlements
(93)
(33)
0 
0 
0 
0 
(10)
(9)
(83)
(24)
Cash Acquired from Acquisition
71 
620 
 
 
 
 
 
 
 
 
Acquisition of subsidiaries (net of cash acquired of $71 and $620)
(14,248)
255 
0 
0 
0 
0 
(14,282)
0 
34 
255 
Capital contribution
0 
 
4,660 
 
(2,330)
 
0 
 
(2,330)
 
Other
81 
(71)
0 
0 
0 
0 
(3)
(2)
84 
(69)
Net cash flows used for investing activities
(2,672)
(1,020)
4,660 
0 
(2,330)
0 
(6,549)
179 
1,547 
(1,199)
Dividends paid on Common Shares
(530)
(427)
0 
0 
(530)
(427)
0 
0 
0 
0 
Common Shares repurchased
0 
(750)
 
0 
 
0 
 
0 
 
(750)
Proceeds from issuance of long-term debt
0 
800 
 
0 
 
0 
 
800 
 
0 
Proceeds from issuance of repurchase agreements
904 
1,327 
0 
0 
0 
0 
0 
0 
904 
1,327 
Repayment of long-term debt
0 
(450)
 
0 
 
0 
 
(450)
 
0 
Repayments of repurchase agreements
(902)
(1,327)
0 
0 
0 
0 
0 
0 
(902)
(1,327)
Proceeds from share-based compensation plans, including windfall tax benefits
92 
46 
0 
0 
0 
0 
0 
0 
92 
46 
Dividend to Parent Company
0 
 
7,372 
 
0 
 
0 
 
(7,372)
 
Capital contribution
0 
 
(4,660)
 
0 
 
2,330 
 
2,330 
 
Advances To From Affiliates Financing Activities
0 
0 
0 
0 
(247)
223 
221 
(214)
26 
(9)
Net proceeds from (payments to) affiliated notional cash pooling program
0 
0 
(51)1
132 2
(106)1
140 2
157 1
(272)2
0 1
0 2
Policyholder contract deposits
274 
235 
0 
0 
0 
0 
0 
0 
274 
235 
Policyholder contract withdrawals
(103)
(107)
0 
0 
0 
0 
0 
0 
(103)
(107)
Other
(4)
(6)
0 
0 
0 
0 
(4)
(6)
0 
0 
Net cash flows (used for) from financing activities
(269)
(659)
2,661 
132 
(883)
(64)
2,704 
(142)
(4,751)
(585)
Effect of foreign currency rate changes on cash and cash equivalents
24 
(77)
0 
0 
0 
0 
0 
0 
24 
(77)
Net increase (decrease) in cash
(764)
135 
(51)
132 
0 
1 
205 
2 
(918)
0 
Cash – beginning of period
1,775 1 3
655 2
(971)1 3
(555)2
1 1 3
0 2
2 1 3
1 2
2,743 1 3
1,209 2
Cash – end of period
$ 1,011 1 4
$ 790 2
$ (1,022)1 4
$ (423)2
$ 1 1 4
$ 1 2
$ 207 1 4
$ 3 2
$ 1,825 1 4
$ 1,209 2