CHUBB LTD, 10-Q filed on 5/10/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2016
Apr. 22, 2016
Entity Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q1 
 
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
 
464,478,489 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Investments [Abstract]
 
 
Fixed maturities available for sale, at fair value (amortized cost - $75,991 and $43,149) (includes hybrid financial instruments of $3 and $31)
$ 77,538 
$ 43,587 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
11,280 
8,430 
Equity securities, at fair value (cost – $841 and $441)
893 
497 
Short-term investments, at fair value and amortized cost
3,382 
10,446 
Other investments (cost – $4,233 and $2,993)
4,493 
3,291 
Total investments
97,586 
66,251 
Cash
1,091 1 2
1,775 1 3
Securities lending collateral
1,003 
1,046 
Accrued investment income
891 
513 
Insurance and reinsurance balances receivable
7,692 
5,323 
Reinsurance recoverable on losses and loss expenses
12,891 
11,386 
Reinsurance recoverable on policy benefits
185 
187 
Deferred policy acquisition costs
3,376 
2,873 
Value of business acquired
390 
395 
Goodwill
15,404 
4,796 
Other intangible assets
7,955 
887 
Prepaid reinsurance premiums
2,376 
2,082 
Deferred tax assets
0 
318 
Investments in partially-owned insurance companies
654 
653 
Other assets
5,150 
3,821 
Total assets
156,644 
102,306 
Liabilities
 
 
Unpaid losses and loss expenses
60,206 
37,303 
Unearned premiums
14,896 
8,439 
Future policy benefits
4,869 
4,807 
Insurance and reinsurance balances payable
4,733 
4,270 
Securities lending payable
1,004 
1,047 
Accounts payable, accrued expenses, and other liabilities
9,050 
6,205 
Deferred Tax Liabilities, Net
1,142 
0 
Short-term debt
500 
0 
Long-term debt
12,636 
9,389 
Trust preferred securities
308 
307 
Repurchase Agreements
1,403 
1,404 
Total liabilities
110,747 
73,171 
Commitments and contingencies
   
   
Shareholders’ equity
 
 
Common Shares (CHF 24.15 par value; 479,783,864 and 342,832,412 shares issued; 464,283,520 and 324,563,441 shares outstanding)
11,121 
7,833 
Common Shares in treasury (15,500,344 and 18,268,971 shares)
(1,648)
(1,922)
Additional paid-in capital
16,140 
4,481 
Retained earnings
19,917 
19,478 
Accumulated other comprehensive income (loss) (AOCI)
367 
(735)
Total shareholders’ equity
45,897 
29,135 
Total liabilities and shareholders’ equity
$ 156,644 
$ 102,306 
Consolidated Balance Sheets (Parenthetical)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2016
USD ($)
Mar. 31, 2016
CHF
Dec. 31, 2015
USD ($)
Dec. 31, 2015
CHF
Statement of Financial Position [Abstract]
 
 
 
 
Fixed maturities available for sale, at amortized cost
$ 75,991 
 
$ 43,149 
 
Fixed maturities available for sale, hybrid financial instruments
3 
 
31 
 
Fixed maturities held to maturity, at amortized cost
11,580 
 
8,552 
 
Equity securities, at cost
841 
 
441 
 
Other investments, cost
$ 4,233 
 
$ 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
464,283,520 
464,283,520 
324,563,441 
324,563,441 
Common Shares in treasury, shares
15,500,344 
15,500,344 
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
Mar. 31, 2016
Mar. 31, 2015
Revenues
 
 
Net premiums written
$ 5,995 
$ 4,076 
Decrease (increase) in unearned premiums
602 
(149)
Net premiums earned
6,597 
3,927 
Net investment income
674 
551 
Net realized gains (losses):
 
 
Other-than-temporary impairment (OTTI) losses gross
(71)
(13)
Portion of OTTI losses recognized in other comprehensive income (OCI)
8 
0 
Net OTTI losses recognized in income
(63)
(13)
Net realized gains (losses) excluding OTTI losses
(331)
(76)
Total net realized gains (losses) (includes $(152) and $(3) reclassified from AOCI)
(394)
(89)
Total revenues
6,877 
4,389 
Expenses
 
 
Losses and loss expenses
3,674 
2,122 
Policy benefits
126 
142 
Policy acquisition costs
1,413 
707 
Administrative expenses
772 
554 
Interest expense
146 
68 
Other (income) expense
28 
(35)
Amortization of purchased intangibles
7 
30 
Chubb integration expenses
148 
0 
Total expenses
6,314 
3,588 
Income before income tax
563 
801 
Income tax (benefits) expense (includes $(1) and $4 on reclassified unrealized gains and losses)
124 
120 
Net income
439 
681 
Other comprehensive income (loss)
 
 
Unrealized appreciation
905 
441 
Reclassification adjustment for net realized losses included in net income
152 
3 
Unrealized appreciation (Depreciation) after reclassification adjustment
1,057 
444 
Change in:
 
 
Cumulative translation adjustment
312 
(421)
Pension liability
2 
13 
Other comprehensive income, before income tax
1,371 
36 
Income tax expense related to OCI items
(269)
(75)
Other comprehensive income (loss)
1,102 
(39)
Comprehensive income
1,541 
642 
Earnings per share
 
 
Basic earnings per share
$ 0.98 
$ 2.08 
Diluted earnings per share
$ 0.97 
$ 2.05 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Accumulated Net Unrealized Investment Gain (Loss) [Member]
 
 
Net realized gains (losses):
 
 
Total net realized gains (losses) (includes $(152) and $(3) reclassified from AOCI)
(152)
(3)
Expenses
 
 
Income tax (benefits) expense (includes $(1) and $4 on reclassified unrealized gains and losses)
$ (1)
$ 4 
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income tax expense
$ 124 
$ 120 
Net realized gains (losses)
(394)
(89)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Accumulated Net Unrealized Investment Gain (Loss) [Member]
 
 
Income tax expense
(1)
4 
Net realized gains (losses)
$ (152)
$ (3)
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions
Total
Common Stock [Member]
Common Stock [Member]
The Chubb Corporation [Member]
Treasury Stock [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]
Accumulated Translation Adjustment [Member]
Accumulated Defined Benefit Plans 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
 
 
 
143 
(153)
0 
 
 
 
 
 
Shares Issued for Chubb Corp Acquisition
 
 
0 
 
 
0 
 
 
 
 
 
Common Shares repurchased
 
 
 
(340)
 
 
 
 
 
 
 
Exercise of stock options
 
 
 
 
(18)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
 
63 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
 
0 
 
 
 
 
 
 
Net income
681 
 
 
 
 
 
681 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
 
0 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
 
0 
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax expense of $(232) and $(87)
 
 
 
 
 
 
 
354 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit (expense) of $(1) and $4
 
 
 
 
 
 
 
7 
 
 
 
Change in period, net of income tax expense of $(233) and $(83)
 
 
 
 
 
 
 
361 
 
 
 
Change in period, net of income tax benefit (expense) of $(35) and $11
 
 
 
 
 
 
 
 
(410)
 
 
Change in period, net of income tax benefit (expense) of $(1) and $(3)
 
 
 
 
 
 
 
 
 
10 
 
Balance - end of period at Mar. 31, 2015
29,702 
7,833 
 
(1,645)
5,037 
 
17,325 
2,212 
(991)
(69)
1,152 
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
 
 
 
274 
(310)
323 
 
 
 
 
 
Shares Issued for Chubb Corp Acquisition
 
 
3,288 
 
 
11,916 
 
 
 
 
 
Common Shares repurchased
 
 
 
0 
 
 
 
 
 
 
 
Exercise of stock options
 
 
 
 
(21)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
 
65 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
 
(314)
 
 
 
 
 
 
Net income
439 
 
 
 
 
 
439 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
 
314 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
 
(314)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax expense of $(232) and $(87)
 
 
 
 
 
 
 
673 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit (expense) of $(1) and $4
 
 
 
 
 
 
 
151 
 
 
 
Change in period, net of income tax expense of $(233) and $(83)
 
 
 
 
 
 
 
824 
 
 
 
Change in period, net of income tax benefit (expense) of $(35) and $11
 
 
 
 
 
 
 
 
277 
 
 
Change in period, net of income tax benefit (expense) of $(1) and $(3)
 
 
 
 
 
 
 
 
 
1 
 
Balance - end of period at Mar. 31, 2016
$ 45,897 
$ 11,121 
 
$ (1,648)
$ 16,140 
 
$ 19,917 
$ 1,698 
$ (1,262)
$ (69)
$ 367 
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit
$ (233)
$ (83)
Cumulative translation adjustment, Change in period, income tax(expense) benefit
(35)
11 
Pension liability adjustment, Change in period, income tax (expense) benefit
(1)
(3)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Accumulated Net Unrealized Investment Gain (Loss) [Member]
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax
(234)
(87)
Income tax benefit (expense) from reclassification of unrealized gains
$ 1 
$ 4 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash flows from operating activities
 
 
Net income
$ 439 
$ 681 
Adjustments to reconcile net income to net cash flows from operating activities
 
 
Net realized (gains) losses
394 
89 
Amortization of premiums/discounts on fixed maturities
174 
36 
Deferred income taxes
(42)
7 
Unpaid losses and loss expenses
(72)
(320)
Unearned premiums
(616)
212 
Future policy benefits
28 
48 
Insurance and reinsurance balances payable
(15)
158 
Accounts payable, accrued expenses, and other liabilities
(34)
(46)
Income taxes payable
143 
20 
Insurance and reinsurance balances receivable
601 
240 
Reinsurance recoverable on losses and loss expenses
194 
185 
Reinsurance recoverable on policy benefits
3 
2 
Deferred policy acquisition costs
(480)
(128)
Prepaid reinsurance premiums
14 
(32)
Other
289 
(77)
Net cash flows from operating activities
1,020 
1,075 
Cash flows from investing activities
 
 
Purchases of fixed maturities available for sale
(8,104)
(4,305)
Purchases of to be announced mortgage-backed securities
0 
(31)
Purchases of fixed maturities held to maturity
(77)
(21)
Purchases of equity securities
(33)
(39)
Sales of fixed maturities available for sale
6,329 
2,002 
Sales of equity securities
761 
28 
Maturities and redemptions of fixed maturities available for sale
1,553 
1,481 
Maturities and redemptions of fixed maturities held to maturity
249 
324 
Net change in short-term investments
11,932 
(255)
Net derivative instruments settlements
(22)
(51)
Payments to Acquire Businesses, Net of Cash Acquired
(14,262)
0 
Other
59 
(153)
Net cash flows used for investing activities
(1,615)
(1,020)
Cash flows from financing activities
 
 
Dividends paid on Common Shares
(218)
(214)
Common Shares repurchased
0 
(347)
Proceeds from issuance of long-term debt
0 
800 
Proceeds from issuance of repurchase agreements
853 
477 
Repayments of Long-term Debt
853 
 
Repayment of repurchase agreements
(853)
(477)
Proceeds from share-based compensation plans, including windfall tax benefits
51 
39 
Policyholder contract deposits
118 
101 
Policyholder contract withdrawals
(49)
(40)
Other
(4)
(6)
Net cash flows (used for) from financing activities
(102)
333 
Effect of foreign currency rate changes on cash and cash equivalents
13 
(95)
Net (decrease) increase in cash
(684)
293 
Cash – beginning of period
1,775 1 2
655 3
Cash – end of period
1,091 2 4
948 3
Supplemental cash flow information
 
 
Taxes paid
106 
96 
Interest paid
$ 71 
$ 48 
Consolidated Statements of Cash Flows (Parentheticals) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Statement of Cash Flows [Abstract]
 
 
Cash Acquired from Acquisition
$ 57 
$ 0 
General
General
General

a) Basis of presentation
On January 14, 2016, we completed the acquisition of The Chubb Corporation (Chubb Corp acquisition), 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 The Chubb Corporation (Chubb Corp). We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of its run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years and certain mass tort 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.
Acquisitions
Acquisitions
Acquisitions

The Chubb Corporation
On January 14, 2016, we completed the acquisition of The Chubb Corporation (Chubb Corp acquisition), 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 had 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 expected to be 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.  The fair values listed below are preliminary estimates and are subject to adjustment, including assessment of 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. 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
$
57

Investments
42,869

Accrued investment income
337

Insurance and reinsurance balances receivable
2,948

Reinsurance recoverable on losses and loss expenses
1,657

Indefinite lived intangible assets
2,860

Finite lived intangible assets
4,795

Prepaid reinsurance premiums
280

Other assets
989

Unpaid losses and loss expenses
(22,878
)
Unearned premium
(7,016
)
Insurance and reinsurance balances payable
(468
)
Accounts payable, accrued expenses, and other liabilities
(1,919
)
Deferred tax liabilities
(1,350
)
Long-term debt
(3,760
)
Total identifiable net assets acquired
19,401

Goodwill
10,445

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 $148 million for the three months ended March 31, 2016 and include all internal and external costs directly related to the integration activities of the Chubb Corp acquisition, primarily personnel-related expenses including severance, retention and relocation; consulting fees; and advisor fees.
We recognized goodwill of $10.4 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 other 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)
January 14, 2016 to March 31, 2016

Total revenues
$
2,487

Net income
$
255



The results of the Chubb Corp have been included in our unaudited consolidated financial statements from the acquisition date to March 31, 2016. The following table provides supplemental unaudited pro forma consolidated information for the three months ended March 31, 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
 
 
March 31
 
(in millions of U.S. dollars, except per share data)
2016

 
2015

Total revenues
$
7,322

 
$
7,695

Net income
$
534

 
$
959

Earnings per share
 
 
 
Basic earnings per share
$
1.14

 
$
2.05

Diluted earnings per share
$
1.14

 
$
2.03



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 applied the new measurement-period adjustment guidance and 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
 
March 31, 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
$
2,984

 
$
85

 
$
—

 
$
3,069

 
$
—

Foreign
20,026

 
685

 
(118
)
 
20,593

 
(16
)
Corporate securities
21,783

 
640

 
(212
)
 
22,211

 
(21
)
Mortgage-backed securities
11,766

 
289

 
(10
)
 
12,045

 
(1
)
States, municipalities, and political subdivisions
19,432

 
200

 
(12
)
 
19,620

 
—

 
$
75,991

 
$
1,899

 
$
(352
)
 
$
77,538

 
$
(38
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
700

 
$
23

 
$
—

 
$
723

 
$
—

Foreign
749

 
38

 
(4
)
 
783

 
—

Corporate securities
2,951

 
98

 
(16
)
 
3,033

 
—

Mortgage-backed securities
1,652

 
65

 
(1
)
 
1,716

 
—

States, municipalities, and political subdivisions
5,228

 
99

 
(2
)
 
5,325

 
—

 
$
11,280

 
$
323

 
$
(23
)
 
$
11,580

 
$
—


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 months ended March 31, 2016 and 2015, $23 million and $4 million, respectively, of net unrealized appreciation related to such securities is included in OCI. At March 31, 2016 and December 31, 2015, AOCI included cumulative net unrealized depreciation of $24 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 77 percent and 81 percent of the total mortgage-backed securities at March 31, 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:
 
 
 
March 31

 
 
 
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
$
3,712

 
$
3,724

 
$
1,856

 
$
1,865

Due after 1 year through 5 years
25,064

 
25,492

 
14,936

 
15,104

Due after 5 years through 10 years
25,453

 
25,887

 
12,258

 
12,173

Due after 10 years
9,996

 
10,390

 
4,272

 
4,487

 
64,225

 
65,493

 
33,322

 
33,629

Mortgage-backed securities
11,766

 
12,045

 
9,827

 
9,958

 
$
75,991

 
$
77,538

 
$
43,149

 
$
43,587

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
425

 
$
429

 
$
492

 
$
495

Due after 1 year through 5 years
2,505

 
2,597

 
2,443

 
2,517

Due after 5 years through 10 years
2,918

 
2,991

 
2,292

 
2,313

Due after 10 years
3,780

 
3,847

 
1,496

 
1,484

 
9,628

 
9,864

 
6,723

 
6,809

Mortgage-backed securities
1,652

 
1,716

 
1,707

 
1,743

 
$
11,280

 
$
11,580

 
$
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

March 31


December 31

(in millions of U.S. dollars)
2016


2015

Cost
$
841

 
$
441

Gross unrealized appreciation
84

 
74

Gross unrealized depreciation
(32
)
 
(18
)
Fair value
$
893

 
$
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 months ended March 31, 2016 and 2015, credit losses recognized in Net income for corporate securities were $17 million and $4 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 both the three months ended March 31, 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
 
 
March 31
 
(in millions of U.S. dollars)
2016

 
2015

Fixed maturities:
 
 
 
OTTI on fixed maturities, gross
$
(67
)
 
$
(13
)
OTTI on fixed maturities recognized in OCI (pre-tax)
8

 
—

OTTI on fixed maturities, net
(59
)
 
(13
)
Gross realized gains excluding OTTI
65

 
44

Gross realized losses excluding OTTI
(196
)
 
(35
)
Total fixed maturities
(190
)
 
(4
)
Equity securities:
 
 
 
OTTI on equity securities
(1
)
 
—

Gross realized gains excluding OTTI
40

 
3

Gross realized losses excluding OTTI
(1
)
 
(2
)
Total equity securities
38

 
1

OTTI on other investments
(3
)
 
—

Foreign exchange gains (losses)
39

 
(31
)
Investment and embedded derivative instruments
(39
)
 
1

Fair value adjustments on insurance derivative
(228
)
 
(45
)
S&P put options and futures
(15
)
 
(12
)
Other derivative instruments
(2
)
 
—

Other
6

 
1

Net realized gains (losses)
$
(394
)
 
$
(89
)

 
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
 
 
March 31
 
(in millions of U.S. dollars)
2016

 
2015

Balance of credit losses related to securities still held – beginning of period
$
53

 
$
28

Additions where no OTTI was previously recorded
11

 
3

Additions where an OTTI was previously recorded
6

 
1

Reductions for securities sold during the period
(13
)
 
(10
)
Balance of credit losses related to securities still held – end of period
$
57

 
$
22



d) Gross unrealized loss
At March 31, 2016, there were 5,636 fixed maturities out of a total of 30,019 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $4 million. There were 94 equity securities out of a total of 304 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 March 31, 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
 
March 31, 2016
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
Foreign
$
3,204

 
$
(69
)
 
$
486

 
$
(53
)
 
$
3,690

 
$
(122
)
Corporate securities
4,014

 
(152
)
 
651

 
(76
)
 
4,665

 
(228
)
Mortgage-backed securities
1,190

 
(4
)
 
854

 
(7
)
 
2,044

 
(11
)
States, municipalities, and political subdivisions
3,848

 
(12
)
 
73

 
(2
)
 
3,921

 
(14
)
Total fixed maturities
12,256

 
(237
)
 
2,064

 
(138
)
 
14,320

 
(375
)
Equity securities
310

 
(32
)
 
—

 
—

 
310

 
(32
)
Other investments
229

 
(18
)
 
—

 
—

 
229

 
(18
)
Total
$
12,795

 
$
(287
)
 
$
2,064

 
$
(138
)
 
$
14,859

 
$
(425
)
 
 
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 March 31, 2016 and December 31, 2015, are investments, primarily fixed maturities, totaling $18.2 billion and $16.9 billion, respectively, and cash of $119 million and $110 million, respectively.
The following table presents the components of restricted assets:
 
March 31

 
December 31

(in millions of U.S. dollars)
2016

 
2015

Trust funds
$
11,681

 
$
11,862

Deposits with non-U.S. regulatory authorities
2,260

 
2,075

Deposits with U.S. regulatory authorities
2,523

 
1,242

Assets pledged under repurchase agreements
1,473

 
1,459

Other pledged assets
400

 
392

 
$
18,337

 
$
17,030

Fair value measurements
Fair value measurements
Fair value measurements

In 2015, we retrospectively adopted new accounting guidance that no longer requires investments measured at fair value using NAV to be categorized within the fair value hierarchy. Therefore, we no longer include our investments in partially-owned investment companies, investment funds, and limited partnerships within the fair value hierarchy and the Level 3 rollforward tables disclosed below. Prior period amounts within the fair value hierarchy disclosures contained in this section have been revised to conform to the current period presentation.

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 March 31, 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 months ended March 31, 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
March 31, 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
$
2,444

 
$
625

 
$
—

 
$
3,069

Foreign
—

 
20,531

 
62

 
20,593

Corporate securities
—

 
21,950

 
261

 
22,211

Mortgage-backed securities
—

 
11,997

 
48

 
12,045

States, municipalities, and political subdivisions
—

 
19,620

 
—

 
19,620

 
2,444

 
74,723

 
371

 
77,538

Equity securities
864

 
—

 
29

 
893

Short-term investments
1,405

 
1,977

 
—

 
3,382

Other investments (1)
362

 
237

 
211

 
810

Securities lending collateral
—

 
1,003

 
—

 
1,003

Investment derivative instruments
11

 
—

 
—

 
11

Other derivative instruments
—

 
—

 
—

 
—

Separate account assets
1,499

 
90

 
—

 
1,589

Total assets measured at fair value (1)
$
6,585

 
$
78,030

 
$
611

 
$
85,226

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
23

 
$
—

 
$
—

 
$
23

Other derivative instruments
36

 
—

 
10

 
46

GLB (2)
—

 
—

 
839

 
839

Total liabilities measured at fair value
$
59

 
$
—

 
$
849

 
$
908

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,658 million and other investments of $25 million at March 31, 2016 measured using NAV.
(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.
(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 months ended March 31, 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:
 
 
 
 
 
March 31

 
 
 
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
 
$
580

 
$
210

 
$
300

 
$
105

Real Assets
3 to 7 Years
 
577

 
321

 
474

 
140

Distressed
5 to 9 Years
 
451

 
217

 
261

 
218

Private Credit
3 to 7 Years
 
272

 
349

 
265

 
209

Traditional
3 to 9 Years
 
1,498

 
1,001

 
895

 
152

Vintage
1 to 2 Years
 
36

 
14

 
13

 
—

Investment funds
Not Applicable
 
244

 
—

 
269

 
—

 
 
 
$
3,658

 
$
2,112

 
$
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
March 31, 2016

 
December 31, 2015

 
 
 
GLB(1)
$
839

 
$
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

 
Other
investments

 
Other
derivative
instruments

 
GLB(1)

March 31, 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
6

 
16

 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
(2
)
 
—

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
6

 
2

 
—

 
—

 
—

 
—

 
—

Net Realized Gains/Losses
(5
)
 
(6
)
 
—

 
—

 
—

 
2

 
230

Purchases (2)
5

 
93

 
—

 
13

 
6

 
2

 
—

Sales
(1
)
 
(14
)
 
(5
)
 
—

 
—

 
—

 
—

Settlements
(4
)
 
(4
)
 
—

 
—

 
(7
)
 
—

 
—

Balance–End of Period
$
62

 
$
261

 
$
48

 
$
29

 
$
211

 
$
10

 
$
839

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(4
)
 
$
(7
)
 
$
—

 
$
—

 
$
—

 
$
2

 
$
230

(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

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

 
Other
investments

 
Other derivative instruments

 
GLB(1)

March 31, 2015
Foreign

 
Corporate
securities

 
MBS

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

 
$
187

 
$
15

 
$
2

 
$
204

 
$
4

 
$
406

Transfers into Level 3
—

 
1

 
—

 
—

 
—

 
—

 
—

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

 
3

 
—

 
—

 
(2
)
 
—

 
—

Net Realized Gains/Losses
—

 
(3
)
 
—

 
—

 
—

 
—

 
45

Purchases
1

 
8

 
18

 
—

 
9

 
—

 
—

Sales
(1
)
 
(3
)
 
—

 
—

 
—

 
—

 
—

Settlements
—

 
(26
)
 
—

 
—

 
(3
)
 
—

 
—

Balance–End of Period
$
22

 
$
167

 
$
33

 
$
2

 
$
208

 
$
4

 
$
451

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

 
$
(2
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
45

(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 $716 million at March 31, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $451 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:
March 31, 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
$
598

 
$
125

 
$
—

 
$
723

 
$
700

Foreign
—

 
783

 
—

 
783

 
749

Corporate securities
—

 
3,020

 
13

 
3,033

 
2,951

Mortgage-backed securities
—

 
1,716

 
—

 
1,716

 
1,652

States, municipalities, and political subdivisions
—

 
5,325

 
—

 
5,325

 
5,228

Total assets
$
598

 
$
10,969

 
$
13

 
$
11,580

 
$
11,280

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,403

 
$
—

 
$
1,403

 
$
1,403

Short-term debt
—

 
519

 
—

 
519

 
500

Long-term debt
—

 
13,317

 
—

 
13,317

 
12,636

Trust preferred securities
—

 
433

 
—

 
433

 
308

Total liabilities
$
—

 
$
15,672

 
$
—

 
$
15,672

 
$
14,847


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
 
 
March 31
 
(in millions of U.S. dollars)
2016

 
2015

GMDB
 
 
 
Net premiums earned
$
14

 
$
16

Policy benefits and other reserve adjustments
$
8

 
$
9

GLB
 
 
 
Net premiums earned
$
29

 
$
32

Policy benefits and other reserve adjustments
11

 
12

Net realized gains (losses)
(234
)
 
(45
)
Loss recognized in Net income
$
(216
)
 
$
(25
)
Less: Net cash received
18

 
28

Net increase in liability
$
(234
)
 
$
(53
)


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 $115 million and $117 million at March 31, 2016 and December 31, 2015, respectively. At March 31, 2016 and December 31, 2015, the reported liability for GLB reinsurance was $1.1 billion and $888 million, respectively, which includes a fair value derivative adjustment of $839 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 March 31, 2016 and December 31, 2015, goodwill was $15.4 billion and $4.8 billion, respectively, and Other intangible assets were $8.0 billion and $887 million, respectively. The increase in goodwill and Other intangible assets reflects the goodwill and intangible assets recorded in connection with the Chubb Corp acquisition. 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)
Amount

 
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

 
 


At the date of acquisition, we recorded a deferred tax liability of $2,679 million associated with intangible assets in the table above. At March 31, 2016, the deferred tax liability balance was $2,465 million.

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 March 31, 2016, the expected estimated pre-tax amortization expense related to purchased intangibles as well as the amortization of the fair value adjustment to loss reserve 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

Second quarter of 2016
$
33

$
8

$
(61
)
$
(20
)
$
21

$
1

Third quarter of 2016
33

8

(61
)
(20
)
21

1

Fourth quarter of 2016
33

8

(61
)
(20
)
21

1

2017
293

32

(160
)
165

79

244

2018
320

32

(101
)
251

70

321

2019
279

—

(62
)
217

64

281

2020
239

—

(35
)
204

58

262

2021
216

—

(20
)
196

52

248

Total
$
1,446

$
88

$
(561
)
$
973

$
386

$
1,359



As noted above, the deferred tax liability balance at March 31, 2016 was $2,465 million. The following table presents the expected reduction to the deferred tax liability, which assumed an expected 35 percent tax rate, associated with the amortization of the Chubb Corp purchased intangible assets. In addition, the table presents the expected amortization pattern of the UPR intangible asset.
 
Chubb Corp acquisition
 
For the Year Ending December 31
(in millions of U.S. dollars)
Reduction to deferred tax liability associated with other intangibles

Amortization of UPR intangible asset to be recorded through Policy acquisition costs on the income statement

Second quarter of 2016
$
(196
)
$
518

Third quarter of 2016
(126
)
319

Fourth quarter of 2016
(65
)
143

2017
(114
)
—

2018
(123
)
—

2019
(98
)
—

2020
(84
)
—

2021
(75
)
—

Total
$
(881
)
$
980




The following table presents a roll-forward of Goodwill by segment:
(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
5,667

 
2,025

 
—

 
2,753

 
—

 
—

 
10,445

Foreign exchange revaluation and other
40

 
13

 
—

 
109

 
—

 
1

 
163

Balance at March 31, 2016
$
6,910

 
$
2,234

 
$
134

 
$
4,940

 
$
365

 
$
821

 
$
15,404

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. Chubb INA Holdings 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. 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.

 
March 31

 
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)
$
1,403

 
$
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
299

 
299

 
Make-whole premium plus 0.35%
$600 million 5.75% due May 2018
654

 
—

 
Make-whole premium plus 0.30%
$100 million 6.6% due August 2018
111

 
—

 
None
$500 million 5.9% due June 2019
497

 
497

 
Make-whole premium plus 0.40%
$1,300 million 2.3% due November 2020
1,293

 
1,294

 
Make-whole premium plus 0.15%
$1,000 million 2.875% due November 2022
993

 
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
260

 
—

 
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
992

 
—

 
Make-whole premium plus 0.20%
$600 million 6.5% due May 2038
784

 
—

 
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
948

 
—

 
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
$
12,636

 
$
9,389

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

 
$
307

 
Redemption price(1)
(1) 
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.

All of Chubb INA's senior notes 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 are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law. The debentures, subject to certain exceptions, are not redeemable before maturity.
We had outstanding $1.0 billion of unsecured junior subordinated capital securities at March 31, 2016, which were assumed by Chubb INA Holdings Inc. 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 schedule 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 capital securities may be redeemed, in whole or in part, at any time on or after April 15, 2017 at a redemption price equal to the principal amount plus any accrued interest or prior to April 15, 2017 at a redemption price equal to the greater of (i) the principal amount or (ii) 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 March 31, 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:
 
 
 
 
 
March 31, 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)
 
$
6

 
$
(19
)
 
$
903

 
$
7

 
$
(11
)
 
$
1,029

Cross-currency swaps
OA / (AP)
 
—

 
—

 
95

 
—

 
—

 
95

Options/Futures contracts on notes and bonds
OA / (AP)
 
5

 
(4
)
 
1,235

 
5

 
(2
)
 
751

Convertible securities(1)
FM AFS / ES
 
3

 
—

 
7

 
31

 
—

 
40

 
 
 
$
14

 
$
(23
)
 
$
2,240

 
$
43

 
$
(13
)
 
$
1,915

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

 
$
(36
)
 
$
1,171

 
$
—

 
$
(4
)
 
$
1,197

Other
OA / (AP)
 
—

 
(10
)
 
71

 
—

 
(6
)
 
15

 
 
 
$
—

 
$
(46
)
 
$
1,242

 
$
—

 
$
(10
)
 
$
1,212

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(1,122
)
 
$
1,377

 
$
—

 
$
(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 March 31, 2016 and December 31, 2015, derivative liabilities of $44 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 March 31, 2016 and December 31, 2015, our securities lending collateral was $1,003 million and $1,046 million, respectively, and our securities lending payable, reflecting our obligation to return the collateral plus interest, was $1,004 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

March 31, 2016
 
Overnight and Continuous

(in millions of U.S. dollars)
 
Collateral held under securities lending agreements:
 
 
Cash
 
$
434

U.S. Treasury and agency
 
89

Foreign
 
212

Corporate securities
 
2

Equity securities
 
266

 
 
$
1,003

Gross amount of recognized liability for securities lending payable
 
$
1,004

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 March 31, 2016 and December 31, 2015, our repurchase agreement obligations of $1,403 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

March 31, 2016
Greater than 90 Days

(in millions of U.S. dollars)
Collateral pledged under repurchase agreements:
 
U.S. Treasury and agency
$
238

Mortgage-backed securities
1,235

 
$
1,473

Gross amount of recognized liabilities for repurchase agreements
$
1,403

Difference(1)
$
70

(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
 
 
March 31
 
(in millions of U.S. dollars)
2016

 
2015

Investment and embedded derivative instruments
 
 
 
Foreign currency forward contracts
$
(10
)
 
$
25

All other futures contracts and options
(34
)
 
(29
)
Convertible securities(1)
5

 
5

Total investment and embedded derivative instruments
$
(39
)
 
$
1

GLB and other derivative instruments
 
 
 
GLB(2)
$
(228
)
 
$
(45
)
Futures contracts on equities(3)
(15
)
 
(11
)
Options on equity market indices(3)
—

 
(1
)
Other
(2
)
 
—

Total GLB and other derivative instruments
$
(245
)
 
$
(57
)
 
$
(284
)
 
$
(56
)
(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 March 31, 2016, we have commitments to purchase fixed income securities of $243 million over the next several years.

e) Other investments
At March 31, 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 $3.4 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 March 31, 2016, $19 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 March 31, 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.

The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
 
Three Months Ended
 
 
March 31
 
 
2016
 
 
2015
 
CHF

 
USD

 
CHF

 
USD

Dividends – par value reduction
—

 
$


 
0.62

 
$
0.65

Dividends – distributed from capital contribution reserves
0.66

 
0.67

 
—

 
—

Total dividend distributions per common share
0.66

 
$
0.67

 
0.62

 
$
0.65



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 March 31, 2016, 15,500,344 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 announced authorization of a share repurchase program of $1.5 billion of Chubb's Common Shares for the period January 1, 2015 through December 31, 2015 to replace the previous authorization when it expired on December 31, 2014. There are no outstanding repurchase authorizations subsequent to December 31, 2015.

The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorization:
(in millions of U.S. dollars, except share data)
Three Months Ended
March 31
 
2016

 
2015

Number of shares repurchased
—

 
3,027,463

Cost of shares repurchased
$
—

 
$
340

Repurchase authorization remaining at end of period
$
—

 
$
1,160

Share-based compensation
Share-based compensation
Share-based compensation

The ACE Limited 2004 Long-Term Incentive Plan (the 2004 LTIP) permits 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 permits 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.
Postretirement benefits Postretirement benefits
Compensation and Employee Benefit Plans [Text Block]
Postretirement benefits

We maintain non-contributory defined pension benefit 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 pension 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 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 Chubb Corp to the accounting policy of Chubb to select 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
 
 
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 obligation
(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 months ended March 31, 2016, we contributed $27 million to our U.S. and non-U.S. pension and other postretirement benefits plans, and we estimate that we will contribute an additional $38 million for the remainder of 2016. These estimates are subject to change due to contribution decisions which are affected by various factors including our liquidity, market performance and management discretion.

The following table summarizes the components of net periodic benefit costs for our pension and postretirement benefit plans recognized in the consolidated statements of operations:
 
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

Three months ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
17

 
$
5

 
$
22

 
$
2

 
$
—

 
$
2

     Interest cost
27

 
8

 
35

 
5

 
—

 
5

     Expected return on plan assets
(37
)
 
(10
)
 
(47
)
 
(2
)
 
—

 
(2
)
     Amortization of unrecognized:
 
 
 
 
 
 
 
 
 
 
 
         Net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

             Net periodic benefit cost
$
7

 
$
4

 
$
11

 
$
5

 
$
—

 
$
5

Three months ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
2

 
$
2

 
 
 
 
 
 
     Interest cost
—

 
5

 
5

 
 
 
 
 
 
     Expected return on plan assets
—

 
(7
)
 
(7
)
 
 
 
 
 
 
     Amortization of unrecognized:


 
 
 
 
 
 
 
 
 
 
         Net actuarial loss
—

 
1

 
1

 
 
 
 
 
 
             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

As of March 31, 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

As of 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 mass tort 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.  The divisions included in this segment are North America Major Accounts, North America Commercial Insurance, Westchester and North America Small Commercial.

•
The North America Personal P&C Insurance segment includes the business written by Chubb’s North America Personal Risk Services division, which 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 continues to include 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.

•
There were no material changes to the Life Insurance segment, which continues to include the business written by Chubb Life, Chubb Tempest Life Re and Combined Insurance’s North America operations. The legacy Chubb life insurance business in Latin America was also included in this segment.

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 mass tort exposures.

In addition, effective the first quarter of 2016, revenue and expenses managed at the corporate level, including realized gains and losses, interest expense, other income and expenses, 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 and net investment income. The prior period has been revised 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. For the North America Agricultural segment, management includes gains and losses on crop derivatives as a component of underwriting income. For the Life Insurance segment, management includes (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life Insurance segment income. For example, for the three months ended March 31, 2016, Life segment income of $64 million includes losses from fair value changes in separate account assets of $3 million (reported within Other (income) expense in the Corporate column below).

The following tables present the Statement of Operations by segment:
For the Three Months Ended
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

March 31, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
2,302

 
$
871

 
$
64

 
$
2,041

 
$
201

 
$
516

 
$
—

 
$
5,995

Net premiums earned
2,896

 
1,024

 
23

 
1,955

 
202

 
497

 
—

 
6,597

Losses and loss expenses
1,747

 
661

 
(30
)
 
1,021

 
89

 
177

 
9

 
3,674

Policy benefits
—

 
—

 
—

 
—

 
—

 
126

 
—

 
126

Policy acquisition costs
482

 
249

 
4

 
503

 
53

 
122

 
—

 
1,413

Administrative expenses
266

 
88

 
(4
)
 
263

 
14

 
72

 
73

 
772

Underwriting income (loss)
401

 
26

 
53

 
168

 
46

 
—

 
(82
)
 
612

Net investment income (loss)
426

 
47

 
5

 
146

 
67

 
67

 
(84
)
 
674

Segment income (loss)
827

 
73

 
58

 
314

 
113

 
67

 
(166
)
 
1,286

Net realized gains (losses) including OTTI


 
 
 
 
 
 
 
 
 
 
 
(394
)
 
(394
)
Interest expense


 
 
 
 
 
 
 
 
 
 
 
146

 
146

Other (income) expense:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) losses from fair value changes in separate account assets


 
 
 
 
 
 
 
 
 
 
 
3

 
3

Other


 
 
 
 
 
 
 
 
 
 
 
25

 
25

Amortization of purchased intangibles


 
 
 
 
 
 
 
 
 
 
 
7

 
7

Chubb integration expenses


 
 
 
 
 
 
 
 
 
 
 
148

 
148

Income tax expense


 
 
 
 
 
 
 
 
 
 
 
124

 
124

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(1,013
)
 
$
439


For the Three Months Ended
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

March 31, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
1,297

 
$
133

 
$
88

 
$
1,794

 
$
273

 
$
491

 
$
—

 
$
4,076

Net premiums earned
1,380

 
146

 
64

 
1,637

 
226

 
474

 
—

 
3,927

Losses and loss expenses
915

 
111

 
22

 
814

 
99

 
152

 
9

 
2,122

Policy benefits
—

 
—

 
—

 
—

 
—

 
142

 
—

 
142

Policy acquisition costs
130

 
31

 
(4
)
 
389

 
54

 
107

 
—

 
707

Administrative expenses
151

 
19

 
(1
)
 
256

 
12

 
73

 
44

 
554

Underwriting income (loss)
184

 
(15
)
 
47

 
178

 
61

 
—

 
(53
)
 
402

Net investment income
258

 
5

 
6

 
138

 
75

 
66

 
3

 
551

Segment income (loss)
442

 
(10
)
 
53

 
316

 
136

 
66

 
(50
)
 
953

Net realized gains (losses) including OTTI


 


 


 


 


 


 
(89
)
 
(89
)
Interest expense


 


 


 


 


 


 
68

 
68

Other (income) expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) losses from fair value changes in separate account assets


 


 


 


 


 


 
(11
)
 
(11
)
Other


 


 


 


 


 


 
(24
)
 
(24
)
Amortization of purchased intangibles


 


 


 


 


 


 
30

 
30

Income tax expense


 


 


 


 


 


 
120

 
120

Net income (loss)


 


 


 


 


 

 
$
(322
)
 
$
681


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
 
 
March 31
 
(in millions of U.S. dollars, except share and per share data)
2016

 
2015

Numerator:
 
 
 
Net income
$
439

 
$
681

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Weighted-average shares outstanding
446,739,586

 
328,212,376

Denominator for diluted earnings per share:
 
 
 
Share-based compensation plans
3,270,156

 
3,480,344

Weighted-average shares outstanding and assumed conversions
450,009,742

 
331,692,720

Basic earnings per share
$
0.98

 
$
2.08

Diluted earnings per share
$
0.97

 
$
2.05

Potential anti-dilutive share conversions
2,074,308

 
715,148



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. 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 March 31, 2016 and December 31, 2015, and for the three months ended March 31, 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 March 31, 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
$
29

 
$
643

 
$
96,914

 
$
—

 
$
97,586

Cash (1)
2

 
3

 
2,406

 
(1,320
)
 
1,091

Insurance and reinsurance balances receivable
—

 
—

 
10,884

 
(3,192
)
 
7,692

Reinsurance recoverable on losses and loss expenses
—

 
—

 
22,065

 
(9,174
)
 
12,891

Reinsurance recoverable on policy benefits
—

 
—

 
1,144

 
(959
)
 
185

Value of business acquired
—

 
—

 
390

 
—

 
390

Goodwill and other intangible assets
—

 
—

 
23,359

 
—

 
23,359

Investments in subsidiaries
35,426

 
49,240

 
—

 
(84,666
)
 
—

Due from subsidiaries and affiliates, net
11,267

 
—

 
—

 
(11,267
)
 
—

Other assets
4

 
503

 
17,291

 
(4,348
)
 
13,450

Total assets
$
46,728

 
$
50,389

 
$
174,453

 
$
(114,926
)
 
$
156,644

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
68,917

 
$
(8,711
)
 
$
60,206

Unearned premiums
—

 
—

 
18,522

 
(3,626
)
 
14,896

Future policy benefits
—

 
—

 
5,828

 
(959
)
 
4,869

Due to subsidiaries and affiliates, net
—

 
11,199

 
68

 
(11,267
)
 
—

Affiliated notional cash pooling programs (1)
521

 
799

 
—

 
(1,320
)
 
—

Repurchase agreements
—

 
—

 
1,403

 
—

 
1,403

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,625

 
11

 
—

 
12,636

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
310

 
1,575

 
18,421

 
(4,377
)
 
15,929

Total liabilities
831

 
27,006

 
113,170

 
(30,260
)
 
110,747

Total shareholders’ equity
45,897

 
23,383

 
61,283

 
(84,666
)
 
45,897

Total liabilities and shareholders’ equity
$
46,728

 
$
50,389

 
$
174,453

 
$
(114,926
)
 
$
156,644


(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 March 31, 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 March 31, 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
$
—

 
$
—

 
$
5,995

 
$
—

 
$
5,995

Net premiums earned
—

 
—

 
6,597

 
—

 
6,597

Net investment income
1

 
4

 
669

 
—

 
674

Equity in earnings of subsidiaries
375

 
506

 
—

 
(881
)
 
—

Net realized gains (losses) including OTTI
—

 
—

 
(394
)
 
—

 
(394
)
Losses and loss expenses
—

 
—

 
3,674

 
—

 
3,674

Policy benefits
—

 
—

 
126

 
—

 
126

Policy acquisition costs and administrative expenses
17

 
36

 
2,132

 
—

 
2,185

Interest (income) expense
(80
)
 
215

 
11

 
—

 
146

Other (income) expense
(9
)
 
10

 
27

 
—

 
28

Amortization of purchased intangibles
—

 
—

 
7

 
—

 
7

Chubb integration expenses
3

 
137

 
8

 
—

 
148

Income tax expense (benefit)
6

 
(150
)
 
268

 
—

 
124

Net income
$
439

 
$
262

 
$
619

 
$
(881
)
 
$
439

Comprehensive income (loss)
$
1,541

 
$
1,056

 
$
1,721

 
$
(2,777
)
 
$
1,541


Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended March 31, 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
$
—

 
$
—

 
$
4,076

 
$
—

 
$
4,076

Net premiums earned
—

 
—

 
3,927

 
—

 
3,927

Net investment income
1

 
1

 
549

 
—

 
551

Equity in earnings of subsidiaries
648

 
204

 
—

 
(852
)
 
—

Net realized gains (losses) including OTTI
—

 
—

 
(89
)
 
—

 
(89
)
Losses and loss expenses
—

 
—

 
2,122

 
—

 
2,122

Policy benefits
—

 
—

 
142

 
—

 
142

Policy acquisition costs and administrative expenses
14

 
6

 
1,241

 
—

 
1,261

Interest (income) expense
(8
)
 
69

 
7

 
—

 
68

Other (income) expense
(41
)
 
(3
)
 
9

 
—

 
(35
)
Amortization of purchased intangibles
—

 
—

 
30

 
—

 
30

Income tax expense (benefit)
3

 
(26
)
 
143

 
—

 
120

Net income
$
681

 
$
159

 
$
693

 
$
(852
)
 
$
681

Comprehensive income
$
642

 
$
24

 
$
654

 
$
(678
)
 
$
642




Condensed Consolidating Statement of Cash Flows
For the Three Months Ended March 31, 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
$
3,272

 
$
3,109

 
$
1,011

 
$
(6,372
)
 
$
1,020

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

 
—

 
(8,104
)
 
—

 
(8,104
)
Purchases of fixed maturities held to maturity
—

 
—

 
(77
)
 
—

 
(77
)
Purchases of equity securities
—

 
—

 
(33
)
 
—

 
(33
)
Sales of fixed maturities available for sale
—

 
—

 
6,329

 
—

 
6,329

Sales of equity securities
—

 
—

 
761

 
—

 
761

Maturities and redemptions of fixed maturities available for sale
—

 
—

 
1,553

 
—

 
1,553

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
249

 
—

 
249

Net change in short-term investments
—

 
7,788

 
4,144

 
—

 
11,932

Net derivative instruments settlements
—

 
—

 
(22
)
 
—

 
(22
)
Acquisition of subsidiaries (net of cash acquired of $57)
—

 
(14,282
)
 
20

 
—

 
(14,262
)
Capital contribution
(2,330
)
 
—

 
(2,330
)
 
4,660

 
—

Other
—

 
—

 
59

 
—

 
59

Net cash flows (used for) from investing activities
(2,330
)
 
(6,494
)
 
2,549

 
4,660

 
(1,615
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(218
)
 
—

 
—

 
—

 
(218
)
Proceeds from issuance of repurchase agreements
—

 
—

 
853

 
—

 
853

Repayment of repurchase agreements
—

 
—

 
(853
)
 
—

 
(853
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
51

 
—

 
51

Dividend to parent company
—

 
—

 
(6,372
)
 
6,372

 
—

Advances (to) from affiliates
(362
)
 
350

 
12

 
—

 
—

Capital contribution
—

 
2,330

 
2,330

 
(4,660
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(361
)
 
710

 
—

 
(349
)
 
—

Policyholder contract deposits
—

 
—

 
118

 
—

 
118

Policyholder contract withdrawals
—

 
—

 
(49
)
 
—

 
(49
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows (used for) from financing activities
(941
)
 
3,386

 
(3,910
)
 
1,363

 
(102
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
13

 
—

 
13

Net increase (decrease) in cash
1

 
1

 
(337
)
 
(349
)
 
(684
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
2

 
$
3

 
$
2,406

 
$
(1,320
)
 
$
1,091

(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 March 31, 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
For the Three Months Ended March 31, 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 operating activities
$
48

 
$
4

 
$
1,023

 
$
—

 
$
1,075

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

 
—

 
(4,336
)
 
—

 
(4,336
)
Purchases of fixed maturities held to maturity
—

 
—

 
(21
)
 
—

 
(21
)
Purchases of equity securities
—

 
—

 
(39
)
 
—

 
(39
)
Sales of fixed maturities available for sale
—

 
—

 
2,002

 
—

 
2,002

Sales of equity securities
—

 
—

 
28

 
—

 
28

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
1,481

 
—

 
1,481

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
324

 
—

 
324

Net change in short-term investments
—

 
216

 
(471
)
 
—

 
(255
)
Net derivative instruments settlements
—

 
—

 
(51
)
 
—

 
(51
)
Other
—

 
—

 
(153
)
 
—

 
(153
)
Net cash flows from (used for) investing activities
—

 
216

 
(1,236
)
 
—

 
(1,020
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(214
)
 
—

 
—

 
—

 
(214
)
Common Shares repurchased
—

 
—

 
(347
)
 
—

 
(347
)
Proceeds from issuance of long-term debt
—

 
800

 
—

 
—

 
800

Proceeds from issuance of short-term debt
—

 
—

 
477

 
—

 
477

Repayment of short-term debt
—

 
—

 
(477
)
 
—

 
(477
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
39

 
—

 
39

Advances (to) from affiliates
336

 
(340
)
 
4

 
—

 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(168
)
 
(309
)
 
—

 
477

 
—

Policyholder contract deposits


 


 
101

 


 
101

Policyholder contract withdrawals
—

 
—

 
(40
)
 
—

 
(40
)
Other
—

 
(6
)
 
—

 
—

 
(6
)
Net cash flows (used for) from financing activities
(46
)
 
145

 
(243
)
 
477

 
333

Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
(95
)
 
—

 
(95
)
Net increase (decrease) in cash
2

 
365

 
(551
)
 
477

 
293

Cash – beginning of period(1)
—

 
1

 
1,209

 
(555
)
 
655

Cash – end of period(1)
$
2

 
$
366

 
$
658

 
$
(78
)
 
$
948


(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 March 31, 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 acquisition), 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 The Chubb Corporation (Chubb Corp). We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of its run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years and certain mass tort 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 2015 
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.
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
$
57

Investments
42,869

Accrued investment income
337

Insurance and reinsurance balances receivable
2,948

Reinsurance recoverable on losses and loss expenses
1,657

Indefinite lived intangible assets
2,860

Finite lived intangible assets
4,795

Prepaid reinsurance premiums
280

Other assets
989

Unpaid losses and loss expenses
(22,878
)
Unearned premium
(7,016
)
Insurance and reinsurance balances payable
(468
)
Accounts payable, accrued expenses, and other liabilities
(1,919
)
Deferred tax liabilities
(1,350
)
Long-term debt
(3,760
)
Total identifiable net assets acquired
19,401

Goodwill
10,445

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] 
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)
January 14, 2016 to March 31, 2016

Total revenues
$
2,487

Net income
$
255

Pro Forma Financial Information for the Chubb Corp Acquisition [Table Text Block] 
rience after the transaction.
 
Three Months Ended
 
 
March 31
 
(in millions of U.S. dollars, except per share data)
2016

 
2015

Total revenues
$
7,322

 
$
7,695

Net income
$
534

 
$
959

Earnings per share
 
 
 
Basic earnings per share
$
1.14

 
$
2.05

Diluted earnings per share
$
1.14

 
$
2.03

Investments (Tables)
Schedule Of Amortized Cost And Fair Value Of Fixed Maturities And Related OTTI Recognized In AOCI 
March 31, 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
$
2,984

 
$
85

 
$
—

 
$
3,069

 
$
—

Foreign
20,026

 
685

 
(118
)
 
20,593

 
(16
)
Corporate securities
21,783

 
640

 
(212
)
 
22,211

 
(21
)
Mortgage-backed securities
11,766

 
289

 
(10
)
 
12,045

 
(1
)
States, municipalities, and political subdivisions
19,432

 
200

 
(12
)
 
19,620

 
—

 
$
75,991

 
$
1,899

 
$
(352
)
 
$
77,538

 
$
(38
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
700

 
$
23

 
$
—

 
$
723

 
$
—

Foreign
749

 
38

 
(4
)
 
783

 
—

Corporate securities
2,951

 
98

 
(16
)
 
3,033

 
—

Mortgage-backed securities
1,652

 
65

 
(1
)
 
1,716

 
—

States, municipalities, and political subdivisions
5,228

 
99

 
(2
)
 
5,325

 
—

 
$
11,280

 
$
323

 
$
(23
)
 
$
11,580

 
$
—


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 
 
 
 
March 31

 
 
 
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
$
3,712

 
$
3,724

 
$
1,856

 
$
1,865

Due after 1 year through 5 years
25,064

 
25,492

 
14,936

 
15,104

Due after 5 years through 10 years
25,453

 
25,887

 
12,258

 
12,173

Due after 10 years
9,996

 
10,390

 
4,272

 
4,487

 
64,225

 
65,493

 
33,322

 
33,629

Mortgage-backed securities
11,766

 
12,045

 
9,827

 
9,958

 
$
75,991

 
$
77,538

 
$
43,149

 
$
43,587

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
425

 
$
429

 
$
492

 
$
495

Due after 1 year through 5 years
2,505

 
2,597

 
2,443

 
2,517

Due after 5 years through 10 years
2,918

 
2,991

 
2,292

 
2,313

Due after 10 years
3,780

 
3,847

 
1,496

 
1,484

 
9,628

 
9,864

 
6,723

 
6,809

Mortgage-backed securities
1,652

 
1,716

 
1,707

 
1,743

 
$
11,280

 
$
11,580

 
$
8,430

 
$
8,552

Schedule Of Cost And Fair Value Of Equity Securities 

March 31


December 31

(in millions of U.S. dollars)
2016


2015

Cost
$
841

 
$
441

Gross unrealized appreciation
84

 
74

Gross unrealized depreciation
(32
)
 
(18
)
Fair value
$
893

 
$
497

Schedule Of Net Realized Gains (Losses) And The Losses Included In Net Realized Gains (Losses) And OCI 
 
Three Months Ended
 
 
March 31
 
(in millions of U.S. dollars)
2016

 
2015

Fixed maturities:
 
 
 
OTTI on fixed maturities, gross
$
(67
)
 
$
(13
)
OTTI on fixed maturities recognized in OCI (pre-tax)
8

 
—

OTTI on fixed maturities, net
(59
)
 
(13
)
Gross realized gains excluding OTTI
65

 
44

Gross realized losses excluding OTTI
(196
)
 
(35
)
Total fixed maturities
(190
)
 
(4
)
Equity securities:
 
 
 
OTTI on equity securities
(1
)
 
—

Gross realized gains excluding OTTI
40

 
3

Gross realized losses excluding OTTI
(1
)
 
(2
)
Total equity securities
38

 
1

OTTI on other investments
(3
)
 
—

Foreign exchange gains (losses)
39

 
(31
)
Investment and embedded derivative instruments
(39
)
 
1

Fair value adjustments on insurance derivative
(228
)
 
(45
)
S&P put options and futures
(15
)
 
(12
)
Other derivative instruments
(2
)
 
—

Other
6

 
1

Net realized gains (losses)
$
(394
)
 
$
(89
)
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
 
 
March 31
 
(in millions of U.S. dollars)
2016

 
2015

Balance of credit losses related to securities still held – beginning of period
$
53

 
$
28

Additions where no OTTI was previously recorded
11

 
3

Additions where an OTTI was previously recorded
6

 
1

Reductions for securities sold during the period
(13
)
 
(10
)
Balance of credit losses related to securities still held – end of period
$
57

 
$
22

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
 
March 31, 2016
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
Foreign
$
3,204

 
$
(69
)
 
$
486

 
$
(53
)
 
$
3,690

 
$
(122
)
Corporate securities
4,014

 
(152
)
 
651

 
(76
)
 
4,665

 
(228
)
Mortgage-backed securities
1,190

 
(4
)
 
854

 
(7
)
 
2,044

 
(11
)
States, municipalities, and political subdivisions
3,848

 
(12
)
 
73

 
(2
)
 
3,921

 
(14
)
Total fixed maturities
12,256

 
(237
)
 
2,064

 
(138
)
 
14,320

 
(375
)
Equity securities
310

 
(32
)
 
—

 
—

 
310

 
(32
)
Other investments
229

 
(18
)
 
—

 
—

 
229

 
(18
)
Total
$
12,795

 
$
(287
)
 
$
2,064

 
$
(138
)
 
$
14,859

 
$
(425
)
 
 
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 
 
March 31

 
December 31

(in millions of U.S. dollars)
2016

 
2015

Trust funds
$
11,681

 
$
11,862

Deposits with non-U.S. regulatory authorities
2,260

 
2,075

Deposits with U.S. regulatory authorities
2,523

 
1,242

Assets pledged under repurchase agreements
1,473

 
1,459

Other pledged assets
400

 
392

 
$
18,337

 
$
17,030

Fair value measurements (Tables)
Financial Instruments Measured At Fair Value On A Recurring Basis 
March 31, 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
$
2,444

 
$
625

 
$
—

 
$
3,069

Foreign
—

 
20,531

 
62

 
20,593

Corporate securities
—

 
21,950

 
261

 
22,211

Mortgage-backed securities
—

 
11,997

 
48

 
12,045

States, municipalities, and political subdivisions
—

 
19,620

 
—

 
19,620

 
2,444

 
74,723

 
371

 
77,538

Equity securities
864

 
—

 
29

 
893

Short-term investments
1,405

 
1,977

 
—

 
3,382

Other investments (1)
362

 
237

 
211

 
810

Securities lending collateral
—

 
1,003

 
—

 
1,003

Investment derivative instruments
11

 
—

 
—

 
11

Other derivative instruments
—

 
—

 
—

 
—

Separate account assets
1,499

 
90

 
—

 
1,589

Total assets measured at fair value (1)
$
6,585

 
$
78,030

 
$
611

 
$
85,226

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
23

 
$
—

 
$
—

 
$
23

Other derivative instruments
36

 
—

 
10

 
46

GLB (2)
—

 
—

 
839

 
839

Total liabilities measured at fair value
$
59

 
$
—

 
$
849

 
$
908

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,658 million and other investments of $25 million at March 31, 2016 measured using NAV.
(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.
(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 
 
 
 
 
 
March 31

 
 
 
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
 
$
580

 
$
210

 
$
300

 
$
105

Real Assets
3 to 7 Years
 
577

 
321

 
474

 
140

Distressed
5 to 9 Years
 
451

 
217

 
261

 
218

Private Credit
3 to 7 Years
 
272

 
349

 
265

 
209

Traditional
3 to 9 Years
 
1,498

 
1,001

 
895

 
152

Vintage
1 to 2 Years
 
36

 
14

 
13

 
—

Investment funds
Not Applicable
 
244

 
—

 
269

 
—

 
 
 
$
3,658

 
$
2,112

 
$
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
March 31, 2016

 
December 31, 2015

 
 
 
GLB(1)
$
839

 
$
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

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

 
Other
investments

 
Other
derivative
instruments

 
GLB(1)

March 31, 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
6

 
16

 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
(2
)
 
—

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
6

 
2

 
—

 
—

 
—

 
—

 
—

Net Realized Gains/Losses
(5
)
 
(6
)
 
—

 
—

 
—

 
2

 
230

Purchases (2)
5

 
93

 
—

 
13

 
6

 
2

 
—

Sales
(1
)
 
(14
)
 
(5
)
 
—

 
—

 
—

 
—

Settlements
(4
)
 
(4
)
 
—

 
—

 
(7
)
 
—

 
—

Balance–End of Period
$
62

 
$
261

 
$
48

 
$
29

 
$
211

 
$
10

 
$
839

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(4
)
 
$
(7
)
 
$
—

 
$
—

 
$
—

 
$
2

 
$
230

(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

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

 
Other
investments

 
Other derivative instruments

 
GLB(1)

March 31, 2015
Foreign

 
Corporate
securities

 
MBS

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

 
$
187

 
$
15

 
$
2

 
$
204

 
$
4

 
$
406

Transfers into Level 3
—

 
1

 
—

 
—

 
—

 
—

 
—

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

 
3

 
—

 
—

 
(2
)
 
—

 
—

Net Realized Gains/Losses
—

 
(3
)
 
—

 
—

 
—

 
—

 
45

Purchases
1

 
8

 
18

 
—

 
9

 
—

 
—

Sales
(1
)
 
(3
)
 
—

 
—

 
—

 
—

 
—

Settlements
—

 
(26
)
 
—

 
—

 
(3
)
 
—

 
—

Balance–End of Period
$
22

 
$
167

 
$
33

 
$
2

 
$
208

 
$
4

 
$
451

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

 
$
(2
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
45

(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 $716 million at March 31, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $451 million and $406 million, respectively.
Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value 
March 31, 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
$
598

 
$
125

 
$
—

 
$
723

 
$
700

Foreign
—

 
783

 
—

 
783

 
749

Corporate securities
—

 
3,020

 
13

 
3,033

 
2,951

Mortgage-backed securities
—

 
1,716

 
—

 
1,716

 
1,652

States, municipalities, and political subdivisions
—

 
5,325

 
—

 
5,325

 
5,228

Total assets
$
598

 
$
10,969

 
$
13

 
$
11,580

 
$
11,280

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,403

 
$
—

 
$
1,403

 
$
1,403

Short-term debt
—

 
519

 
—

 
519

 
500

Long-term debt
—

 
13,317

 
—

 
13,317

 
12,636

Trust preferred securities
—

 
433

 
—

 
433

 
308

Total liabilities
$
—

 
$
15,672

 
$
—

 
$
15,672

 
$
14,847


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
 
 
March 31
 
(in millions of U.S. dollars)
2016

 
2015

GMDB
 
 
 
Net premiums earned
$
14

 
$
16

Policy benefits and other reserve adjustments
$
8

 
$
9

GLB
 
 
 
Net premiums earned
$
29

 
$
32

Policy benefits and other reserve adjustments
11

 
12

Net realized gains (losses)
(234
)
 
(45
)
Loss recognized in Net income
$
(216
)
 
$
(25
)
Less: Net cash received
18

 
28

Net increase in liability
$
(234
)
 
$
(53
)
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:
(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
5,667

 
2,025

 
—

 
2,753

 
—

 
—

 
10,445

Foreign exchange revaluation and other
40

 
13

 
—

 
109

 
—

 
1

 
163

Balance at March 31, 2016
$
6,910

 
$
2,234

 
$
134

 
$
4,940

 
$
365

 
$
821

 
$
15,404

Intangible assets acquired as part of Chubb Corp acquisition 
(in millions of U.S. dollars)
Amount

 
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

Second quarter of 2016
$
33

$
8

$
(61
)
$
(20
)
$
21

$
1

Third quarter of 2016
33

8

(61
)
(20
)
21

1

Fourth quarter of 2016
33

8

(61
)
(20
)
21

1

2017
293

32

(160
)
165

79

244

2018
320

32

(101
)
251

70

321

2019
279

—

(62
)
217

64

281

2020
239

—

(35
)
204

58

262

2021
216

—

(20
)
196

52

248

Total
$
1,446

$
88

$
(561
)
$
973

$
386

$
1,359

Future Changes in Deferred Tax Liabilities Resulting From Amortization of Intangible Assets [Table Text Block] 
 
Chubb Corp acquisition
 
For the Year Ending December 31
(in millions of U.S. dollars)
Reduction to deferred tax liability associated with other intangibles

Amortization of UPR intangible asset to be recorded through Policy acquisition costs on the income statement

Second quarter of 2016
$
(196
)
$
518

Third quarter of 2016
(126
)
319

Fourth quarter of 2016
(65
)
143

2017
(114
)
—

2018
(123
)
—

2019
(98
)
—

2020
(84
)
—

2021
(75
)
—

Total
$
(881
)
$
980

Debt (Tables)
Schedule of Debt [Table Text Block]
 
March 31

 
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)
$
1,403

 
$
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
299

 
299

 
Make-whole premium plus 0.35%
$600 million 5.75% due May 2018
654

 
—

 
Make-whole premium plus 0.30%
$100 million 6.6% due August 2018
111

 
—

 
None
$500 million 5.9% due June 2019
497

 
497

 
Make-whole premium plus 0.40%
$1,300 million 2.3% due November 2020
1,293

 
1,294

 
Make-whole premium plus 0.15%
$1,000 million 2.875% due November 2022
993

 
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
260

 
—

 
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
992

 
—

 
Make-whole premium plus 0.20%
$600 million 6.5% due May 2038
784

 
—

 
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
948

 
—

 
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
$
12,636

 
$
9,389

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

 
$
307

 
Redemption price(1)
(1) 
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 
 
 
 
 
 
March 31, 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)
 
$
6

 
$
(19
)
 
$
903

 
$
7

 
$
(11
)
 
$
1,029

Cross-currency swaps
OA / (AP)
 
—

 
—

 
95

 
—

 
—

 
95

Options/Futures contracts on notes and bonds
OA / (AP)
 
5

 
(4
)
 
1,235

 
5

 
(2
)
 
751

Convertible securities(1)
FM AFS / ES
 
3

 
—

 
7

 
31

 
—

 
40

 
 
 
$
14

 
$
(23
)
 
$
2,240

 
$
43

 
$
(13
)
 
$
1,915

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

 
$
(36
)
 
$
1,171

 
$
—

 
$
(4
)
 
$
1,197

Other
OA / (AP)
 
—

 
(10
)
 
71

 
—

 
(6
)
 
15

 
 
 
$
—

 
$
(46
)
 
$
1,242

 
$
—

 
$
(10
)
 
$
1,212

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(1,122
)
 
$
1,377

 
$
—

 
$
(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
 
 
March 31
 
(in millions of U.S. dollars)
2016

 
2015

Investment and embedded derivative instruments
 
 
 
Foreign currency forward contracts
$
(10
)
 
$
25

All other futures contracts and options
(34
)
 
(29
)
Convertible securities(1)
5

 
5

Total investment and embedded derivative instruments
$
(39
)
 
$
1

GLB and other derivative instruments
 
 
 
GLB(2)
$
(228
)
 
$
(45
)
Futures contracts on equities(3)
(15
)
 
(11
)
Options on equity market indices(3)
—

 
(1
)
Other
(2
)
 
—

Total GLB and other derivative instruments
$
(245
)
 
$
(57
)
 
$
(284
)
 
$
(56
)
(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

March 31, 2016
 
Overnight and Continuous

(in millions of U.S. dollars)
 
Collateral held under securities lending agreements:
 
 
Cash
 
$
434

U.S. Treasury and agency
 
89

Foreign
 
212

Corporate securities
 
2

Equity securities
 
266

 
 
$
1,003

Gross amount of recognized liability for securities lending payable
 
$
1,004

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

March 31, 2016
Greater than 90 Days

(in millions of U.S. dollars)
Collateral pledged under repurchase agreements:
 
U.S. Treasury and agency
$
238

Mortgage-backed securities
1,235

 
$
1,473

Gross amount of recognized liabilities for repurchase agreements
$
1,403

Difference(1)
$
70

(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
 
 
March 31
 
 
2016
 
 
2015
 
CHF

 
USD

 
CHF

 
USD

Dividends – par value reduction
—

 
$


 
0.62

 
$
0.65

Dividends – distributed from capital contribution reserves
0.66

 
0.67

 
—

 
—

Total dividend distributions per common share
0.66

 
$
0.67

 
0.62

 
$
0.65

Share Repurchase Program [Table Text Block] 
The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorization:
(in millions of U.S. dollars, except share data)
Three Months Ended
March 31
 
2016

 
2015

Number of shares repurchased
—

 
3,027,463

Cost of shares repurchased
$
—

 
$
340

Repurchase authorization remaining at end of period
$
—

 
$
1,160

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

As of March 31, 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

As of 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
 
 
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 obligation
(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 table summarizes the components of net periodic benefit costs for our pension and postretirement benefit plans recognized in the consolidated statements of operations:
 
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

Three months ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
17

 
$
5

 
$
22

 
$
2

 
$
—

 
$
2

     Interest cost
27

 
8

 
35

 
5

 
—

 
5

     Expected return on plan assets
(37
)
 
(10
)
 
(47
)
 
(2
)
 
—

 
(2
)
     Amortization of unrecognized:
 
 
 
 
 
 
 
 
 
 
 
         Net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

             Net periodic benefit cost
$
7

 
$
4

 
$
11

 
$
5

 
$
—

 
$
5

Three months ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
2

 
$
2

 
 
 
 
 
 
     Interest cost
—

 
5

 
5

 
 
 
 
 
 
     Expected return on plan assets
—

 
(7
)
 
(7
)
 
 
 
 
 
 
     Amortization of unrecognized:


 
 
 
 
 
 
 
 
 
 
         Net actuarial loss
—

 
1

 
1

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
1

 
$
1

 
 
 
 
 
 
Segment information (Tables)
Operations By Segment
For the Three Months Ended
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

March 31, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
2,302

 
$
871

 
$
64

 
$
2,041

 
$
201

 
$
516

 
$
—

 
$
5,995

Net premiums earned
2,896

 
1,024

 
23

 
1,955

 
202

 
497

 
—

 
6,597

Losses and loss expenses
1,747

 
661

 
(30
)
 
1,021

 
89

 
177

 
9

 
3,674

Policy benefits
—

 
—

 
—

 
—

 
—

 
126

 
—

 
126

Policy acquisition costs
482

 
249

 
4

 
503

 
53

 
122

 
—

 
1,413

Administrative expenses
266

 
88

 
(4
)
 
263

 
14

 
72

 
73

 
772

Underwriting income (loss)
401

 
26

 
53

 
168

 
46

 
—

 
(82
)
 
612

Net investment income (loss)
426

 
47

 
5

 
146

 
67

 
67

 
(84
)
 
674

Segment income (loss)
827

 
73

 
58

 
314

 
113

 
67

 
(166
)
 
1,286

Net realized gains (losses) including OTTI


 
 
 
 
 
 
 
 
 
 
 
(394
)
 
(394
)
Interest expense


 
 
 
 
 
 
 
 
 
 
 
146

 
146

Other (income) expense:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) losses from fair value changes in separate account assets


 
 
 
 
 
 
 
 
 
 
 
3

 
3

Other


 
 
 
 
 
 
 
 
 
 
 
25

 
25

Amortization of purchased intangibles


 
 
 
 
 
 
 
 
 
 
 
7

 
7

Chubb integration expenses


 
 
 
 
 
 
 
 
 
 
 
148

 
148

Income tax expense


 
 
 
 
 
 
 
 
 
 
 
124

 
124

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(1,013
)
 
$
439


For the Three Months Ended
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

March 31, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
1,297

 
$
133

 
$
88

 
$
1,794

 
$
273

 
$
491

 
$
—

 
$
4,076

Net premiums earned
1,380

 
146

 
64

 
1,637

 
226

 
474

 
—

 
3,927

Losses and loss expenses
915

 
111

 
22

 
814

 
99

 
152

 
9

 
2,122

Policy benefits
—

 
—

 
—

 
—

 
—

 
142

 
—

 
142

Policy acquisition costs
130

 
31

 
(4
)
 
389

 
54

 
107

 
—

 
707

Administrative expenses
151

 
19

 
(1
)
 
256

 
12

 
73

 
44

 
554

Underwriting income (loss)
184

 
(15
)
 
47

 
178

 
61

 
—

 
(53
)
 
402

Net investment income
258

 
5

 
6

 
138

 
75

 
66

 
3

 
551

Segment income (loss)
442

 
(10
)
 
53

 
316

 
136

 
66

 
(50
)
 
953

Net realized gains (losses) including OTTI


 


 


 


 


 


 
(89
)
 
(89
)
Interest expense


 


 


 


 


 


 
68

 
68

Other (income) expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) losses from fair value changes in separate account assets


 


 


 


 


 


 
(11
)
 
(11
)
Other


 


 


 


 


 


 
(24
)
 
(24
)
Amortization of purchased intangibles


 


 


 


 


 


 
30

 
30

Income tax expense


 


 


 


 


 


 
120

 
120

Net income (loss)


 


 


 


 


 

 
$
(322
)
 
$
681


Earnings per share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
 
Three Months Ended
 
 
March 31
 
(in millions of U.S. dollars, except share and per share data)
2016

 
2015

Numerator:
 
 
 
Net income
$
439

 
$
681

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Weighted-average shares outstanding
446,739,586

 
328,212,376

Denominator for diluted earnings per share:
 
 
 
Share-based compensation plans
3,270,156

 
3,480,344

Weighted-average shares outstanding and assumed conversions
450,009,742

 
331,692,720

Basic earnings per share
$
0.98

 
$
2.08

Diluted earnings per share
$
0.97

 
$
2.05

Potential anti-dilutive share conversions
2,074,308

 
715,148

Information provided in connection with outstanding debt of subsidiaries (Tables)
Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet at March 31, 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
$
29

 
$
643

 
$
96,914

 
$
—

 
$
97,586

Cash (1)
2

 
3

 
2,406

 
(1,320
)
 
1,091

Insurance and reinsurance balances receivable
—

 
—

 
10,884

 
(3,192
)
 
7,692

Reinsurance recoverable on losses and loss expenses
—

 
—

 
22,065

 
(9,174
)
 
12,891

Reinsurance recoverable on policy benefits
—

 
—

 
1,144

 
(959
)
 
185

Value of business acquired
—

 
—

 
390

 
—

 
390

Goodwill and other intangible assets
—

 
—

 
23,359

 
—

 
23,359

Investments in subsidiaries
35,426

 
49,240

 
—

 
(84,666
)
 
—

Due from subsidiaries and affiliates, net
11,267

 
—

 
—

 
(11,267
)
 
—

Other assets
4

 
503

 
17,291

 
(4,348
)
 
13,450

Total assets
$
46,728

 
$
50,389

 
$
174,453

 
$
(114,926
)
 
$
156,644

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
68,917

 
$
(8,711
)
 
$
60,206

Unearned premiums
—

 
—

 
18,522

 
(3,626
)
 
14,896

Future policy benefits
—

 
—

 
5,828

 
(959
)
 
4,869

Due to subsidiaries and affiliates, net
—

 
11,199

 
68

 
(11,267
)
 
—

Affiliated notional cash pooling programs (1)
521

 
799

 
—

 
(1,320
)
 
—

Repurchase agreements
—

 
—

 
1,403

 
—

 
1,403

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,625

 
11

 
—

 
12,636

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
310

 
1,575

 
18,421

 
(4,377
)
 
15,929

Total liabilities
831

 
27,006

 
113,170

 
(30,260
)
 
110,747

Total shareholders’ equity
45,897

 
23,383

 
61,283

 
(84,666
)
 
45,897

Total liabilities and shareholders’ equity
$
46,728

 
$
50,389

 
$
174,453

 
$
(114,926
)
 
$
156,644


(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 March 31, 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 March 31, 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
$
—

 
$
—

 
$
5,995

 
$
—

 
$
5,995

Net premiums earned
—

 
—

 
6,597

 
—

 
6,597

Net investment income
1

 
4

 
669

 
—

 
674

Equity in earnings of subsidiaries
375

 
506

 
—

 
(881
)
 
—

Net realized gains (losses) including OTTI
—

 
—

 
(394
)
 
—

 
(394
)
Losses and loss expenses
—

 
—

 
3,674

 
—

 
3,674

Policy benefits
—

 
—

 
126

 
—

 
126

Policy acquisition costs and administrative expenses
17

 
36

 
2,132

 
—

 
2,185

Interest (income) expense
(80
)
 
215

 
11

 
—

 
146

Other (income) expense
(9
)
 
10

 
27

 
—

 
28

Amortization of purchased intangibles
—

 
—

 
7

 
—

 
7

Chubb integration expenses
3

 
137

 
8

 
—

 
148

Income tax expense (benefit)
6

 
(150
)
 
268

 
—

 
124

Net income
$
439

 
$
262

 
$
619

 
$
(881
)
 
$
439

Comprehensive income (loss)
$
1,541

 
$
1,056

 
$
1,721

 
$
(2,777
)
 
$
1,541


Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended March 31, 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
$
—

 
$
—

 
$
4,076

 
$
—

 
$
4,076

Net premiums earned
—

 
—

 
3,927

 
—

 
3,927

Net investment income
1

 
1

 
549

 
—

 
551

Equity in earnings of subsidiaries
648

 
204

 
—

 
(852
)
 
—

Net realized gains (losses) including OTTI
—

 
—

 
(89
)
 
—

 
(89
)
Losses and loss expenses
—

 
—

 
2,122

 
—

 
2,122

Policy benefits
—

 
—

 
142

 
—

 
142

Policy acquisition costs and administrative expenses
14

 
6

 
1,241

 
—

 
1,261

Interest (income) expense
(8
)
 
69

 
7

 
—

 
68

Other (income) expense
(41
)
 
(3
)
 
9

 
—

 
(35
)
Amortization of purchased intangibles
—

 
—

 
30

 
—

 
30

Income tax expense (benefit)
3

 
(26
)
 
143

 
—

 
120

Net income
$
681

 
$
159

 
$
693

 
$
(852
)
 
$
681

Comprehensive income
$
642

 
$
24

 
$
654

 
$
(678
)
 
$
642




Condensed Consolidating Statement of Cash Flows 
Condensed Consolidating Statement of Cash Flows
For the Three Months Ended March 31, 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
$
3,272

 
$
3,109

 
$
1,011

 
$
(6,372
)
 
$
1,020

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

 
—

 
(8,104
)
 
—

 
(8,104
)
Purchases of fixed maturities held to maturity
—

 
—

 
(77
)
 
—

 
(77
)
Purchases of equity securities
—

 
—

 
(33
)
 
—

 
(33
)
Sales of fixed maturities available for sale
—

 
—

 
6,329

 
—

 
6,329

Sales of equity securities
—

 
—

 
761

 
—

 
761

Maturities and redemptions of fixed maturities available for sale
—

 
—

 
1,553

 
—

 
1,553

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
249

 
—

 
249

Net change in short-term investments
—

 
7,788

 
4,144

 
—

 
11,932

Net derivative instruments settlements
—

 
—

 
(22
)
 
—

 
(22
)
Acquisition of subsidiaries (net of cash acquired of $57)
—

 
(14,282
)
 
20

 
—

 
(14,262
)
Capital contribution
(2,330
)
 
—

 
(2,330
)
 
4,660

 
—

Other
—

 
—

 
59

 
—

 
59

Net cash flows (used for) from investing activities
(2,330
)
 
(6,494
)
 
2,549

 
4,660

 
(1,615
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(218
)
 
—

 
—

 
—

 
(218
)
Proceeds from issuance of repurchase agreements
—

 
—

 
853

 
—

 
853

Repayment of repurchase agreements
—

 
—

 
(853
)
 
—

 
(853
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
51

 
—

 
51

Dividend to parent company
—

 
—

 
(6,372
)
 
6,372

 
—

Advances (to) from affiliates
(362
)
 
350

 
12

 
—

 
—

Capital contribution
—

 
2,330

 
2,330

 
(4,660
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(361
)
 
710

 
—

 
(349
)
 
—

Policyholder contract deposits
—

 
—

 
118

 
—

 
118

Policyholder contract withdrawals
—

 
—

 
(49
)
 
—

 
(49
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows (used for) from financing activities
(941
)
 
3,386

 
(3,910
)
 
1,363

 
(102
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
13

 
—

 
13

Net increase (decrease) in cash
1

 
1

 
(337
)
 
(349
)
 
(684
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
2

 
$
3

 
$
2,406

 
$
(1,320
)
 
$
1,091

(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 March 31, 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
For the Three Months Ended March 31, 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 operating activities
$
48

 
$
4

 
$
1,023

 
$
—

 
$
1,075

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

 
—

 
(4,336
)
 
—

 
(4,336
)
Purchases of fixed maturities held to maturity
—

 
—

 
(21
)
 
—

 
(21
)
Purchases of equity securities
—

 
—

 
(39
)
 
—

 
(39
)
Sales of fixed maturities available for sale
—

 
—

 
2,002

 
—

 
2,002

Sales of equity securities
—

 
—

 
28

 
—

 
28

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
1,481

 
—

 
1,481

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
324

 
—

 
324

Net change in short-term investments
—

 
216

 
(471
)
 
—

 
(255
)
Net derivative instruments settlements
—

 
—

 
(51
)
 
—

 
(51
)
Other
—

 
—

 
(153
)
 
—

 
(153
)
Net cash flows from (used for) investing activities
—

 
216

 
(1,236
)
 
—

 
(1,020
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(214
)
 
—

 
—

 
—

 
(214
)
Common Shares repurchased
—

 
—

 
(347
)
 
—

 
(347
)
Proceeds from issuance of long-term debt
—

 
800

 
—

 
—

 
800

Proceeds from issuance of short-term debt
—

 
—

 
477

 
—

 
477

Repayment of short-term debt
—

 
—

 
(477
)
 
—

 
(477
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
39

 
—

 
39

Advances (to) from affiliates
336

 
(340
)
 
4

 
—

 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(168
)
 
(309
)
 
—

 
477

 
—

Policyholder contract deposits


 


 
101

 


 
101

Policyholder contract withdrawals
—

 
—

 
(40
)
 
—

 
(40
)
Other
—

 
(6
)
 
—

 
—

 
(6
)
Net cash flows (used for) from financing activities
(46
)
 
145

 
(243
)
 
477

 
333

Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
(95
)
 
—

 
(95
)
Net increase (decrease) in cash
2

 
365

 
(551
)
 
477

 
293

Cash – beginning of period(1)
—

 
1

 
1,209

 
(555
)
 
655

Cash – end of period(1)
$
2

 
$
366

 
$
658

 
$
(78
)
 
$
948


(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 March 31, 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 0 Months Ended
Mar. 31, 2016
Mar. 31, 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]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Other intangible assets
$ 7,955,000,000 
 
$ 887,000,000 
 
 
 
$ 278,000,000 
Chubb integration expenses
148,000,000 
0 
 
 
 
 
 
Weighted-average shares outstanding
446,739,586 
328,212,376 
 
 
228,000,000 
 
 
Business Acquisition, Expected Financing Of Acquisition With Cash
 
 
 
 
9,000,000,000 
 
 
Goodwill
15,404,000,000 
 
4,796,000,000 
 
10,445,000,000 
 
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
60,206,000,000 
 
37,303,000,000 
 
(22,878,000,000)
 
417,000,000 
Unearned premiums
14,896,000,000 
 
8,439,000,000 
 
(7,016,000,000)
 
428,000,000 
Insurance and reinsurance balances receivable
7,692,000,000 
 
5,323,000,000 
 
2,948,000,000 
 
124,000,000 
Cash
1,091,000,000 1 2
948,000,000 3
1,775,000,000 1 4
655,000,000 3
57,000,000 
 
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; 464,283,520 and 324,563,441 shares outstanding)
11,121,000,000 
 
7,833,000,000 
 
 
 
 
Payments to Acquire Businesses, Gross
 
 
 
 
14,319,000,000 
 
 
Investments
97,586,000,000 
 
66,251,000,000 
 
42,869,000,000 
 
 
Accrued investment income
891,000,000 
 
513,000,000 
 
337,000,000 
 
 
Reinsurance recoverable on losses and loss expenses
12,891,000,000 
 
11,386,000,000 
 
1,657,000,000 
 
 
Indefinite-Lived Intangible Assets
 
 
 
 
2,860,000,000 
 
 
Finite-Lived Intangible Assets
 
 
 
 
4,795,000,000 
 
 
Prepaid reinsurance premiums
2,376,000,000 
 
2,082,000,000 
 
280,000,000 
 
 
Other assets
5,150,000,000 
 
3,821,000,000 
 
989,000,000 
 
 
Insurance and reinsurance balances payable
4,733,000,000 
 
4,270,000,000 
 
(468,000,000)
 
 
Accounts payable, accrued expenses, and other liabilities
9,050,000,000 
 
6,205,000,000 
 
(1,919,000,000)
 
 
Deferred Tax Liabilities, Net
(1,142,000,000)
 
0 
 
(1,350,000,000)
 
 
Long-term debt
(12,636,000,000)
 
(9,389,000,000)
 
(3,760,000,000)
 
 
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
 
 
 
 
$ 19,401,000,000 
 
 
Shares Conversion Ratio in Acquisition
 
 
 
 
0.6019 
 
 
Supplemental FInancial Information for Acquisition (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2015
Business Acquisition [Line Items]
 
 
 
Actual Revenue of Chubb Corp since Acquisition Date
$ 2,487 
 
 
Actual Net Income of Chubb Corp since Acquisition Date
255 
 
 
Pro Forma Total Revenues
 
7,322 
7,695 
Pro Forma Net Income
 
$ 534 
$ 959 
Pro Forma Earnings Per Share, Basic
 
$ 1.14 
$ 2.05 
Pro Forma Earnings Per Share, Diluted
 
$ 1.14 
$ 2.03 
Investments (Narrative) (Detail) (USD $)
3 Months Ended
Mar. 31, 2016
Security
Mar. 31, 2015
Dec. 31, 2015
Investment [Line Items]
 
 
 
Document Period End Date
Mar. 31, 2016 
 
 
Total number of fixed maturities
30,019 
 
 
Number of equity securities in an unrealized loss position
94 
 
 
Total number of equity securities
304 
 
 
Largest single unrealized loss in the equity securities
$ 2,000,000 
 
 
Restricted assets in fixed maturities and short-term investments
18,200,000,000 
 
16,900,000,000 
Restricted assets in cash
119,000,000 
 
110,000,000 
Moodys Historical Mean Recovery Rate
42.00% 
 
 
Company Assumed Recovery Rate
32.00% 
 
 
Net unrealized depreciation included in AOCI
24,000,000 
 
35,000,000 
Investments in partially-owned insurance companies
654,000,000 
 
653,000,000 
Net unrealized appreciation (depreciation) included in OCI
23,000,000 
4,000,000 
 
Number of fixed maturities in an unrealized loss position
5,636 
 
 
Credit losses recognized in net income for mortgage-backed securities
0 
0 
 
Credit losses recognized in net income for corporate securities
17,000,000 
4,000,000 
 
Percentage of mortgage-backed securities represented by investments in US government agency bonds
77.00% 
 
81.00% 
Reinsurance recoverable on losses and loss expenses
12,891,000,000 
 
11,386,000,000 
Insurance and reinsurance balances payable
4,733,000,000 
 
4,270,000,000 
Unearned premiums
14,896,000,000 
 
8,439,000,000 
Largest single unrealized loss in the fixed maturities
$ 4,000,000 
 
 
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Available for sale, Due in 1 year or less, Amortized Cost
$ 3,712 
$ 1,856 
Available for sale, Due after 1 year through 5 years, Amortized Cost
25,064 
14,936 
Available for sale, Due after 5 years though 10 years, Amortized Cost
25,453 
12,258 
Available for sale, Due after 10 years, Amortized Cost
9,996 
4,272 
Available for sale, Subtotal, Amortized Cost
64,225 
33,322 
Available for sale, Mortgage-backed securities, Amortized Cost
11,766 
9,827 
Available for sale, Amortized Cost
75,991 
43,149 
Available for sale, Fair Value
77,538 
43,587 
Held to maturity, Due in 1 year or less, Amortized Cost
425 
492 
Held to maturity, Due after 1 year through 5 years, Amortized Cost
2,505 
2,443 
Held to maturity, Due after 5 years through 10 years, Amortized Cost
2,918 
2,292 
Held to maturity, Due after 10 years, Amortized Cost
3,780 
1,496 
Held to maturity, Subtotal, Amortized Cost
9,628 
6,723 
Held to maturity, Mortgage backed securities, Amortized Cost
1,652 
1,707 
Available for sale, Due in 1 year or less, Fair Value
3,724 
1,865 
Available for sale, Due after 1 year through 5 years, Fair Value
25,492 
15,104 
Available for sale, Due after 5 years through 10 years, Fair Value
25,887 
12,173 
Available for sale, Due after 10 years, Fair Value
10,390 
4,487 
Available for sale, Subtotal, Fair Value
65,493 
33,629 
Available for sale, Mortgage backed securities, Fair Value
12,045 
9,958 
Held to maturity, Due in 1 year or less, Fair Value
429 
495 
Held to maturity, Due after 1 year through 5, Fair Value
2,597 
2,517 
Held to maturity, Due after 5 years through 10 years, Fair Value
2,991 
2,313 
Held to maturity, Due after 10 years, Fair Value
3,847 
1,484 
Held to maturity, Subtotal, Fair Value
9,864 
6,809 
Held to maturity, Mortgage backed securities, Fair Value
1,716 
1,743 
Held to maturity, Amortized Cost
11,280 
8,430 
Held to maturity, Fair Value
$ 11,580 
$ 8,552 
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Cost
$ 841 
$ 441 
Gross unrealized appreciation
84 
74 
Gross unrealized depreciation
(32)
(18)
Fair value
$ 893 
$ 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
Mar. 31, 2016
Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
OTTI on fixed maturities, gross
$ (67)
$ (13)
OTTI on fixed maturities recognized in OCI (pre-tax)
8 
0 
OTTI on fixed maturities, net
(59)
(13)
Fixed maturities, Gross realized gains excluding OTTI
65 
44 
Fixed maturities, Gross realized losses excluding OTTI
(196)
(35)
Total fixed maturities
(190)
(4)
OTTI on equity securities
(1)
0 
Equity securities, Gross realized gains excluding OTTI
40 
3 
Equity securities, Gross realized losses excluding OTTI
(1)
(2)
Total equity securities
38 
1 
OTTI on other investments
(3)
0 
Foreign exchange gains (losses)
39 
(31)
Investment and embedded derivative instruments
(39)
1 
Fair value adjustments on insurance derivative
(228)
(45)
S&P put options and futures
(15)
(12)
Other derivative instruments
(2)
0 
Other
6 
1 
Total net realized gains (losses) (includes $(152) and $(3) reclassified from AOCI)
$ (394)
$ (89)
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
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Investment [Line Items]
 
 
Document Period End Date
Mar. 31, 2016 
 
Fair Value, 0-12 Months
$ 12,795 
$ 16,763 
Gross Unrealized Loss, 0-12 Months
(287)
(601)
Fair Value, Over 12 Months
2,064 
1,885 
Gross Unrealized Loss, Over 12 Months
(138)
(226)
Total Fair Value
14,859 
18,648 
Total Gross Unrealized Loss
(425)
(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
3,204 
3,953 
Gross Unrealized Loss, 0-12 Months
(69)
(148)
Fair Value, Over 12 Months
486 
436 
Gross Unrealized Loss, Over 12 Months
(53)
(73)
Total Fair Value
3,690 
4,389 
Total Gross Unrealized Loss
(122)
(221)
Corporate [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
4,014 
7,518 
Gross Unrealized Loss, 0-12 Months
(152)
(371)
Fair Value, Over 12 Months
651 
738 
Gross Unrealized Loss, Over 12 Months
(76)
(138)
Total Fair Value
4,665 
8,256 
Total Gross Unrealized Loss
(228)
(509)
Collateralized Mortgage Backed Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
1,190 
3,399 
Gross Unrealized Loss, 0-12 Months
(4)
(42)
Fair Value, Over 12 Months
854 
516 
Gross Unrealized Loss, Over 12 Months
(7)
(12)
Total Fair Value
2,044 
3,915 
Total Gross Unrealized Loss
(11)
(54)
US States and Political Subdivisions Debt Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
3,848 
556 
Gross Unrealized Loss, 0-12 Months
(12)
(6)
Fair Value, Over 12 Months
73 
42 
Gross Unrealized Loss, Over 12 Months
(2)
(2)
Total Fair Value
3,921 
598 
Total Gross Unrealized Loss
(14)
(8)
Fixed Maturities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
12,256 
16,422 
Gross Unrealized Loss, 0-12 Months
(237)
(572)
Fair Value, Over 12 Months
2,064 
1,885 
Gross Unrealized Loss, Over 12 Months
(138)
(226)
Total Fair Value
14,320 
18,307 
Total Gross Unrealized Loss
(375)
(798)
Equity Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
310 
131 
Gross Unrealized Loss, 0-12 Months
(32)
(18)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
310 
131 
Total Gross Unrealized Loss
(32)
(18)
Other Long-term Investments [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
229 
210 
Gross Unrealized Loss, 0-12 Months
(18)
(11)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
229 
210 
Total Gross Unrealized Loss
$ (18)
$ (11)
Investments (Schedule Of Components Of Restricted Assets) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Trust funds
$ 11,681 
$ 11,862 
Deposits with non-U.S. regulatory authorities
2,260 
2,075 
Assets pledged under repurchase agreements
1,473 
1,459 
Deposits with U.S. regulatory authorities
2,523 
1,242 
Other pledged assets
400 
392 
Total restricted assets
$ 18,337 
$ 17,030 
Fair Value Measurements (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 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]
Mar. 31, 2016
Minimum [Member]
Mar. 31, 2016
Maximum [Member]
Mar. 31, 2016
Financial Instruments Fair Value [Member]
Dec. 31, 2015
Financial Instruments Fair Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
 
 
 
 
 
 
 
 
Total Liabilities Not Carried At Fair Value Not Carried At Fair Value
 
$ 11,100 
 
 
 
 
$ 15,672 
$ 11,528 
Notice Period For Redemption For Alternative Investments Investment Funds
 
 
 
 
5 days 
120 days 
 
 
Fair Value
$ 3,658 
$ 2,477 
$ 3,658 
$ 2,477 
 
 
 
 
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Fair Value
$ 3,658 
$ 2,477 
Available for sale, Fair Value
77,538 
43,587 
Equity securities, at fair value
893 
497 
Short-term investments
3,382 
10,446 
Other investments (cost – $4,233 and $2,993)
4,493 
3,291 
Securities lending collateral
1,003 
1,046 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
2,444 
1,712 
Equity securities, at fair value
864 
481 
Short-term investments
1,405 
7,171 
Other investments (cost – $4,233 and $2,993)
362 
347 
Investment derivative instruments, assets
11 
12 
Separate account assets
1,499 
1,464 
Total assets measured at fair value
6,585 
11,187 
Investment derivative instruments, liabilities
23 
13 
Other derivative instruments, liability
36 
4 
Total liabilities measured at fair value
59 
17 
Fair Value, Inputs, Level 1 [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
2,444 
1,712 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
74,723 
41,591 
Short-term investments
1,977 
3,275 
Other investments (cost – $4,233 and $2,993)
237 
230 
Securities lending collateral
1,003 
1,046 
Separate account assets
90 
88 
Total assets measured at fair value
78,030 
46,230 
Fair Value, Inputs, Level 2 [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
625 
816 
Fair Value, Inputs, Level 2 [Member] |
Foreign [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
20,531 
13,388 
Fair Value, Inputs, Level 2 [Member] |
Corporate [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
21,950 
14,755 
Fair Value, Inputs, Level 2 [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
11,997 
9,905 
Fair Value, Inputs, Level 2 [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
19,620 
2,727 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
371 
284 
Equity securities, at fair value
29 
16 
Other investments (cost – $4,233 and $2,993)
211 
212 
Total assets measured at fair value
611 
512 
Other derivative instruments, liability
10 
6 
GLB
839 
609 
Total liabilities measured at fair value
849 
615 
Fair Value, Inputs, Level 3 [Member] |
Foreign [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
62 
57 
Fair Value, Inputs, Level 3 [Member] |
Corporate [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
261 
174 
Fair Value, Inputs, Level 3 [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
48 
53 
Fair Value [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
77,538 
43,587 
Equity securities, at fair value
893 
497 
Short-term investments
3,382 
10,446 
Other investments (cost – $4,233 and $2,993)
810 
789 
Securities lending collateral
1,003 
1,046 
Investment derivative instruments, assets
11 
12 
Separate account assets
1,589 
1,552 
Total assets measured at fair value
85,226 
57,929 
Investment derivative instruments, liabilities
23 
13 
Other derivative instruments, liability
46 
10 
GLB
839 
609 
Total liabilities measured at fair value
908 
632 
Fair Value [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
3,069 
2,528 
Fair Value [Member] |
Foreign [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
20,593 
13,445 
Fair Value [Member] |
Corporate [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
22,211 
14,929 
Fair Value [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
12,045 
9,958 
Fair Value [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Available for sale, Fair Value
$ 19,620 
$ 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
Mar. 31, 2016
Mar. 31, 2016
Minimum [Member]
Mar. 31, 2016
Maximum [Member]
Dec. 31, 2015
Guaranteed Living Benefit [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Document Period End Date
Mar. 31, 2016 
 
 
 
Fair Value
 
 
 
$ 609 1
Valuation Technique
Actuarial model 1
 
 
 
Significant Unobservable Inputs Lapse rate
 
1.00% 1
30.00% 1
 
Significant Unobservable Inputs Annuitization rate
 
0.00% 1
55.00% 1
 
Fair Value Measurements (Financial Instruments Measured At Fair Value Using Significant Unobservable Inputs) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Document Period End Date
Mar. 31, 2016 
 
 
 
Equity Securities [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
$ 0 
$ 0 
 
 
Balance- Beginning of Period, Assets
16 
2 
 
 
Transfers out of Level 3, Assets
0 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
0 
 
 
Purchases, Assets
13 
0 
 
 
Sales, Assets
0 
0 
 
 
Settlements, Assets
0 
0 
 
 
Balance-End of Period, Assets
29 
2 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
0 
 
 
Equity Securities [Member] |
Gain (Loss) on Investments [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Net Realized Gains/Losses, Assets
0 
0 
 
 
Other Long-term Investments [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
0 
 
 
Balance- Beginning of Period, Assets
212 
204 
 
 
Transfers out of Level 3, Assets
0 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
(2)
 
 
Purchases, Assets
6 
9 
 
 
Sales, Assets
0 
0 
 
 
Settlements, Assets
(7)
(3)
 
 
Balance-End of Period, Assets
211 
208 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
0 
 
 
Other Long-term Investments [Member] |
Gain (Loss) on Investments [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Net Realized Gains/Losses, Assets
0 
0 
 
 
Other Derivative Instruments Fair Value [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Balance - Beginning of Period, Liabilities
6 
4 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
 
0 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
0 
 
 
Purchases, Assets
 
0 
 
 
Sales, Assets
 
0 
 
 
Settlements, Assets
0 
0 
 
 
Balance-End of Period, Assets
10 
4 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities
2 
0 
 
 
Other Derivative Instruments Fair Value [Member] |
Gain (Loss) on Investments [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Net Realized Gains/Losses, Liabilities
2 
0 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases
2 
 
 
 
Available-for-sale Securities [Member] |
Foreign [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
6 
0 
 
 
Balance- Beginning of Period, Assets
57 
22 
 
 
Transfers out of Level 3, Assets
(2)
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
6 
0 
 
 
Purchases, Assets
5 
1 
 
 
Sales, Assets
(1)
(1)
 
 
Settlements, Assets
(4)
0 
 
 
Balance-End of Period, Assets
62 
22 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
(4)
0 
 
 
Available-for-sale Securities [Member] |
Foreign [Member] |
Gain (Loss) on Investments [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Net Realized Gains/Losses, Assets
(5)
0 
 
 
Available-for-sale Securities [Member] |
Corporate [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
16 
1 
 
 
Balance- Beginning of Period, Assets
174 
187 
 
 
Transfers out of Level 3, Assets
0 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
2 
3 
 
 
Purchases, Assets
93 
8 
 
 
Sales, Assets
(14)
(3)
 
 
Settlements, Assets
(4)
(26)
 
 
Balance-End of Period, Assets
261 
167 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
(7)
(2)
 
 
Available-for-sale Securities [Member] |
Corporate [Member] |
Gain (Loss) on Investments [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Net Realized Gains/Losses, Assets
(6)
(3)
 
 
Available-for-sale Securities [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
0 
 
 
Balance- Beginning of Period, Assets
53 
15 
 
 
Transfers out of Level 3, Assets
0 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
0 
 
 
Purchases, Assets
0 
18 
 
 
Sales, Assets
(5)
0 
 
 
Settlements, Assets
0 
0 
 
 
Balance-End of Period, Assets
48 
33 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
0 
 
 
Available-for-sale Securities [Member] |
Collateralized Mortgage Backed Securities [Member] |
Gain (Loss) on Investments [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Net Realized Gains/Losses, Assets
0 
0 
 
 
Guaranteed Living Benefit [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Balance - Beginning of Period, Liabilities
609 1
406 2
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
 
 
 
Transfers out of Level 3, Assets
0 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
 
 
 
Purchases, Assets
0 
 
 
 
Sales, Assets
0 
 
 
 
Settlements, Assets
0 
 
 
 
Balance - End of Period, Liabilities
839 1
451 2
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities
230 
45 2
 
 
Reported liabilities
1,100 
716 
888 
663 
Guaranteed Living Benefit [Member] |
Gain (Loss) on Investments [Member]
 
 
 
 
Schedule Of Fair Value Measurements [Line Items]
 
 
 
 
Net Realized Gains/Losses, Liabilities
$ 230 
$ 45 
 
 
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Document Period End Date
Mar. 31, 2016 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
$ 11,280 
$ 8,430 
Unearned Premium Reserves Amortization, Next Three Months
11,580 
8,552 
Investments in partially-owned insurance companies
654 
653 
Repurchase Agreements
1,403 
1,404 
Short-term debt
500 
0 
Long-term debt
12,636 
9,389 
Trust preferred securities
308 
307 
Trust Preferred Securities Not Carried At Fair Value
 
307 
Total liabilities
110,747 
73,171 
Total Liabilities Not Carried At Fair Value Not Carried At Fair Value
 
11,100 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Unearned Premium Reserves Amortization, Next Three Months
598 
583 
Short-term debt
0 
 
Long-term debt
0 
0 
Trust preferred securities
0 
0 
Total liabilities
0 
0 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Unearned Premium Reserves Amortization, Next Three Months
10,969 
7,955 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Unearned Premium Reserves Amortization, Next Three Months
13 
14 
Short-term debt
0 
 
Long-term debt
0 
0 
Trust preferred securities
0 
0 
Total liabilities
0 
0 
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Unearned Premium Reserves Amortization, Next Three Months
11,280 
8,430 
Repurchase Agreements
1,403 
 
Short-term debt
500 
 
Long-term debt
12,636 
 
Trust Preferred Securities Not Carried At Fair Value
308 
 
Total Liabilities Not Carried At Fair Value Not Carried At Fair Value
14,847 
 
U.S. Treasury And Agency [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
723 
745 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
598 
583 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
125 
162 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
0 
0 
U.S. Treasury And Agency [Member] |
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
700 
733 
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
783 
785 
Foreign [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
0 
0 
Foreign [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
783 
785 
Foreign [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
0 
0 
Foreign [Member] |
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
749 
763 
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
3,033 
3,056 
Corporate [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
0 
0 
Corporate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
3,020 
3,042 
Corporate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
13 
14 
Corporate [Member] |
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
2,951 
3,054 
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
1,716 
1,743 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
0 
0 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
1,716 
1,743 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
0 
0 
Collateralized Mortgage Backed Securities [Member] |
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
1,652 
1,707 
US States and Political Subdivisions Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
5,325 
2,223 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
0 
0 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
5,325 
2,223 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
0 
0 
US States and Political Subdivisions Debt Securities [Member] |
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $11,580 and $8,552)
5,228 
2,173 
Financial Instruments Fair Value [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Repurchase Agreements
1,403 
1,404 
Short-term Debt, Fair Value
519 
 
Long-term debt
 
9,678 
Long-term Debt, Fair Value
13,317 
 
Trust Preferred Securities Not Carried At Fair Value
433 
446 
Total Liabilities Not Carried At Fair Value Not Carried At Fair Value
15,672 
11,528 
Financial Instruments Fair Value [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Repurchase Agreements
1,403 
1,404 
Short-term Debt, Fair Value
519 
 
Long-term Debt, Fair Value
13,317 
9,678 
Trust Preferred Securities Not Carried At Fair Value
433 
446 
Total Liabilities Not Carried At Fair Value Not Carried At Fair Value
$ 15,672 
$ 11,528 
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
Mar. 31, 2016
Mar. 31, 2015
Guaranteed Minimum Benefits [Line Items]
 
 
Net premiums earned
$ 6,597 
$ 3,927 
Policy benefits and other reserve adjustments
126 
142 
Net realized gains (losses)
(394)
(89)
Guaranteed Minimum Death Benefit [Member]
 
 
Guaranteed Minimum Benefits [Line Items]
 
 
Net premiums earned
14 
16 
Policy benefits and other reserve adjustments
8 
9 
Guaranteed Living Benefit [Member]
 
 
Guaranteed Minimum Benefits [Line Items]
 
 
Net premiums earned
29 
32 
Policy benefits and other reserve adjustments
11 
12 
Net realized gains (losses)
(234)
(45)
Loss recognized in Net income
(216)
(25)
Less: Net cash received
18 
28 
Net increase in liability
$ (234)
$ (53)
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Guaranteed Minimum Death Benefit [Member]
 
 
 
 
Guaranteed Minimum Benefits [Line Items]
 
 
 
 
Reported liabilities
$ 115 
$ 117 
 
 
Guaranteed Living Benefit [Member]
 
 
 
 
Guaranteed Minimum Benefits [Line Items]
 
 
 
 
Reported liabilities
1,100 
888 
716 
663 
Fair value derivative adjustment in liability
$ 839 
$ 609 
 
 
Goodwill and other intangible assets Goodwill Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2016
North America Commercial P&C Insurance [Member]
Mar. 31, 2016
North America Personal P&C Insurance [Member]
Mar. 31, 2016
North America Agricultural Insurance [Member]
Mar. 31, 2016
Overseas General Insurance [Member]
Mar. 31, 2016
Global Reinsurance [Member]
Mar. 31, 2016
Life Insurance [Member]
Mar. 31, 2016
The Chubb Corporation [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Mar. 31, 2016
The Chubb Corporation [Member]
Minimum [Member]
Mar. 31, 2016
The Chubb Corporation [Member]
Maximum [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Other Intangible Assets, Net
$ 8,000 
$ 887 
 
 
 
 
 
 
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, beginning of period
4,796 
 
1,203 
196 
134 
2,078 
365 
820 
 
10,445 
 
 
Goodwill, Acquired During Period
10,445 
 
5,667 
2,025 
0 
2,753 
0 
0 
 
 
 
 
Goodwill, Translation Adjustments
163 
 
40 
13 
0 
109 
0 
1 
 
 
 
 
Goodwill, end of period
15,404 
 
6,910 
2,234 
134 
4,940 
365 
821 
 
10,445 
 
 
Deferred Tax Liabilities, Intangible Assets
 
 
 
 
 
 
 
 
2,465 
2,679 
 
 
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 
Goodwill and other intangible assets Schedule of finite-lived intangible assets acquired (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended
Jan. 14, 2016
Mar. 31, 2016
Unearned premium reserves [Member]
Mar. 31, 2016
Agency distribution relationships and renewal rights [Member]
Mar. 31, 2016
Internally Developed Technology [Member]
Mar. 31, 2016
Trademarks [Member]
Mar. 31, 2016
Syndicate capacity [Member]
Mar. 31, 2016
Licenses [Member]
Acquired Finite-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 
3 years 
 
 
 
Debt (Details) (USD $)
Mar. 31, 2016
Dec. 31, 2015
Jan. 14, 2016
The Chubb Corporation [Member]
Mar. 31, 2016
Chubb INA Senior Notes Due 2067 [Member]
Mar. 31, 2016
Junior Subordinated Debt [Member]
Chubb INA Senior Notes Due 2067 [Member]
Mar. 31, 2016
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
Long-term debt
$ 12,636,000,000 
$ 9,389,000,000 
$ 3,760,000,000 
 
 
$ 948,000,000 
Face amount of debt
 
 
3,300,000,000 
1,000,000,000 
 
 
Interest Rate
 
 
 
 
6.375% 
6.375% 
Repurchase Agreements
$ 1,403,000,000 
$ 1,404,000,000 
 
 
 
 
Debt (Schedule of Debt Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Repurchase Agreements
$ 1,403 
$ 1,404 
Short-term debt
500 
0 
Long-term debt
12,636 
9,389 
Trust preferred securities
308 
307 
Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
12,636 
9,389 
Senior Notes [Member] |
ACE INA Senior Notes Due February 2017 [Member]
 
 
Debt Instrument [Line Items]
 
 
Short-term debt
500 
0 
Interest Rate
5.70% 
 
Long-term debt
0 
500 
Make Whole Premium Additional Percent
0.20% 
 
Senior Notes [Member] |
ACE INA Senior Notes Due March 2018 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
5.80% 
 
Long-term debt
299 
299 
Make Whole Premium Additional Percent
0.35% 
 
Senior Notes [Member] |
Chubb INA Senior Notes Due May 2018 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
5.75% 
 
Long-term debt
654 
0 
Make Whole Premium Additional Percent
0.30% 
 
Senior Notes [Member] |
ACE INA Senior Notes Due June 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
5.90% 
 
Long-term debt
497 
497 
Make Whole Premium Additional Percent
0.40% 
 
Senior Notes [Member] |
ACE INA senior notes due 2020 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
2.30% 
 
Long-term debt
1,293 
1,294 
Make Whole Premium Additional Percent
0.15% 
 
Senior Notes [Member] |
ACE INA senior notes due 2022 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
2.875% 
 
Long-term debt
993 
994 
Make Whole Premium Additional Percent
0.20% 
 
Senior Notes [Member] |
ACE INA Senior Notes Due March 2023 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
2.70% 
 
Long-term debt
471 
471 
Make Whole Premium Additional Percent
0.10% 
 
Senior Notes [Member] |
ACE INA Senior Notes Due May 2024 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
3.35% 
 
Long-term debt
694 
694 
Make Whole Premium Additional Percent
0.15% 
 
Senior Notes [Member] |
ACE INA senior notes due 2025 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
3.15% 
 
Long-term debt
794 
794 
Make Whole Premium Additional Percent
0.15% 
 
Senior Notes [Member] |
ACE INA senior notes due 2026 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
3.35% 
 
Long-term debt
1,487 
1,487 
Make Whole Premium Additional Percent
0.20% 
 
Senior Notes [Member] |
ACE INA Senior Notes Due May 2036 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
6.70% 
 
Long-term debt
297 
297 
Make Whole Premium Additional Percent
0.20% 
 
Senior Notes [Member] |
Chubb INA Senior Notes Due 2037 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
6.00% 
 
Long-term debt
992 
0 
Make Whole Premium Additional Percent
0.20% 
 
Senior Notes [Member] |
Chubb INA Senior Notes Due 2038 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
6.50% 
 
Long-term debt
784 
0 
Make Whole Premium Additional Percent
0.30% 
 
Senior Notes [Member] |
ACE INA Senior Notes Due March 2043 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
4.15% 
 
Long-term debt
469 
469 
Make Whole Premium Additional Percent
0.15% 
 
Senior Notes [Member] |
ACE INA senior notes due 2045 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
4.35% 
 
Long-term debt
1,482 
1,482 
Make Whole Premium Additional Percent
0.25% 
 
Senior Notes [Member] |
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
11 
11 
Junior Subordinated Debt [Member] |
Chubb INA Capital Securities Due 2067 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
6.375% 
 
Long-term debt
948 
 
Debentures Subject to Mandatory Redemption [Member] |
Chubb INA Senior Notes Due August 2018 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
6.60% 
 
Long-term debt
111 
 
Debentures Subject to Mandatory Redemption [Member] |
ACE INA Senior Notes Due August 2029 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
8.875% 
 
Long-term debt
100 
100 
Unsecured Debt [Member] |
Chubb INA Senior Notes Due 2031 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
6.80% 
 
Long-term debt
260 
 
Make Whole Premium Additional Percent
0.25% 
 
Trust Preferred Securities [Member] |
ACE INA Capital Securities Due 2030 [Member]
 
 
Debt Instrument [Line Items]
 
 
Trust preferred securities
308 
307 
Repurchase Agreements [Member]
 
 
Debt Instrument [Line Items]
 
 
Repurchase Agreements
$ 1,403 
$ 1,404 
Short-term Debt, Weighted Average Interest Rate
0.80% 
0.60% 
Minimum [Member] |
Senior Notes [Member] |
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
2.75% 
 
Minimum [Member] |
Junior Subordinated Debt [Member] |
Chubb INA Capital Securities Due 2067 [Member]
 
 
Debt Instrument [Line Items]
 
 
Make Whole Premium Additional Percent
0.25% 
 
Maximum [Member] |
Senior Notes [Member] |
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest Rate
7.10% 
 
Maximum [Member] |
Junior Subordinated Debt [Member] |
Chubb INA Capital Securities Due 2067 [Member]
 
 
Debt Instrument [Line Items]
 
 
Make Whole Premium Additional Percent
0.50% 
 
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
Mar. 31, 2016
Dec. 31, 2015
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
$ 903 
$ 1,029 
Cross Currency Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
95 
95 
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,235 
751 
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
7 1
40 1
Investment And Embedded Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
14 
43 
Notional Value/Payment Provision
2,240 
1,915 
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,171 2
1,197 2
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
71 
15 
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,242 
1,212 
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,377 3
1,155 3
Other Assets [Member] |
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
6 
7 
Other Assets [Member] |
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
5 
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
0 
0 
Other Assets [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
0 
0 
Other Assets [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
 
0 3
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(19)
(11)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(4)
(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
(23)
(13)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(36)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
(46)
(10)
Fixed Maturities Available For Sale [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
3 1
31 1
Accounts Payable Future Policy Benefits [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
$ (1,122)3
$ (888)3
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Document Period End Date
Mar. 31, 2016 
 
Repurchase Agreements
$ 1,403 
$ 1,404 
Assets pledged under repurchase agreements
1,473 
1,459 
Securities lending collateral
1,003 
1,046 
Securities lending payable
1,004 
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
238 
 
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
1,235 
 
Repurchase Agreements [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
70 
 
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
434 
 
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
$ 89 
 
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
Mar. 31, 2016
Mar. 31, 2015
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
$ (284)
$ (56)
Foreign Exchange Future [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
(10)
25 
All Other Futures Contracts And Options [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
(34)
(29)
Convertibles and Bonds with Warrants Attached [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
5 1
5 1
Investment And Embedded Derivative Instruments [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
(39)
1 
Guaranteed Living Benefits [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
(228)2
(45)2
Single-Stock Future [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
(15)3
(11)3
Options On Equity Market Indices [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
0 3
(1)3
Guaranteed Living Benefit And Other Derivative Instruments [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
(245)
(57)
Other Derivatives [Member]
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
Net realized gains (losses)
$ (2)
$ 0 
Commitments, Contingencies, And Guarantees (Narrative) (Detail) (USD $)
Mar. 31, 2016
Dec. 31, 2015
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
$ 1,003,000,000 
$ 1,046,000,000 
Carrying value of limited partnerships and partially-owned investment companies included in other investments
3,400,000,000 
 
Funding commitments relating to limited partnerships and partially-owned investment companies
2,100,000,000 
 
Unrecognized tax benefits
19,000,000 
 
Derivative liability subject to a master netting agreement
(44,000,000)
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
434,000,000 
 
U.S. Treasury And Agency [Member] |
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
89,000,000 
 
Corporate [Member] |
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
$ 2,000,000 
 
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 1,003 
$ 1,046 
Securities lending payable
1,004 
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
434 
 
Equity Securities [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
266 
 
Corporate [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
2 
 
Foreign Government Debt [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
212 
 
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
$ 89 
 
Shareholders' equity Shareholders' equity (Details)
3 Months Ended 3 Months Ended
Mar. 31, 2016
USD ($)
Mar. 31, 2016
CHF
Mar. 31, 2015
USD ($)
Mar. 31, 2015
CHF
Dec. 31, 2015
CHF
May 31, 2015
USD ($)
May 31, 2014
USD ($)
Mar. 31, 2016
2015 Stock Repurchase Plan [Member]
USD ($)
Mar. 31, 2015
2015 Stock Repurchase Plan [Member]
USD ($)
Jan. 1, 2015
2015 Stock Repurchase Plan [Member]
USD ($)
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
Common Shares repurchased
 
 
 
 
 
 
 
$ 0 
$ 340,000,000 
 
Repurchase of outstanding common shares, shares
 
 
 
 
 
 
 
0 
3,027,463 
 
Share repurchase authorization remains
 
 
 
 
 
 
 
0 
1,160,000,000 
 
Common Shares in treasury, shares
15,500,344 
15,500,344 
 
 
18,268,971 
 
 
 
 
 
Stock repurchase program, authorized amount
 
 
 
 
 
 
 
 
 
$ 1,500,000,000 
Par Value Reduction
$ 0 
 0 
$ 0.65 
 0.62 
 
 
 
 
 
 
Dividends Declared From Additional Paid In Capital
$ 0.67 
 0.66 
$ 0.00 
 0 
 
 
 
 
 
 
Annual dividend per share approved by shareholders
 
 
 
 
 
$ 2.68 
$ 2.60 
 
 
 
Dividends declared per common share
$ 0.67 
 0.66 
$ 0.65 
 0.62 
 
 
 
 
 
 
Common Stock, Dividend Rate, Per-Dollar-Amount
$ 0.67 
 
$ 0.65 
 
 
 
 
 
 
 
Common Shares, par value
 
 24.15 
 
 
 24.15 
 
 
 
 
 
Share-Based Compensation (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Mar. 31, 2016
Jan. 14, 2016
The Chubb Corporation [Member]
Mar. 31, 2016
The Chubb Corporation [Member]
Feb. 25, 2016
Stock Options [Member]
Feb. 25, 2016
Restricted Stock [Member]
Mar. 31, 2016
Restricted Stock [Member]
Feb. 25, 2016
Restricted Stock Units (RSUs) [Member]
Feb. 25, 2016
Performance Shares [Member]
Mar. 31, 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 
 
 
 
 
 
 
 
Postretirement benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Pension Plan [Member]
Jan. 14, 2016
Pension Plan [Member]
The Chubb Corporation [Member]
Mar. 31, 2016
Pension Plan [Member]
U.S. [Member]
Mar. 31, 2015
Pension Plan [Member]
U.S. [Member]
Jan. 14, 2016
Pension Plan [Member]
U.S. [Member]
The Chubb Corporation [Member]
Mar. 31, 2016
Pension Plan [Member]
Non-US [Member]
Mar. 31, 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]
Mar. 31, 2016
Other Postretirement Benefit Plan [Member]
Jan. 14, 2016
Other Postretirement Benefit Plan [Member]
The Chubb Corporation [Member]
Mar. 31, 2016
Other Postretirement Benefit Plan [Member]
U.S. [Member]
Jan. 14, 2016
Other Postretirement Benefit Plan [Member]
U.S. [Member]
The Chubb Corporation [Member]
Mar. 31, 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
$ 27 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected Contribution For Remainder of Year
38 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Cost
 
2 
22 
 
17 
0 
 
5 
2 
 
 
2 
 
2 
 
0 
 
Interest Cost
 
5 
35 
 
27 
0 
 
8 
5 
 
 
5 
 
5 
 
0 
 
Expected Return on Plan Assets
 
(7)
(47)
 
(37)
0 
 
(10)
(7)
 
 
(2)
 
(2)
 
0 
 
Amortization of Actuarial (Gain) Loss
 
1 
1 
 
0 
0 
 
1 
1 
 
 
0 
 
0 
 
0 
 
Net Periodic Benefit Cost
 
1 
11 
 
7 
0 
 
4 
1 
 
 
5 
 
5 
 
0 
 
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
Mar. 31, 2016
Mar. 31, 2015
Segment Reporting Information [Line Items]
 
 
Net premiums written
$ 5,995 
$ 4,076 
Net premiums earned
6,597 
3,927 
Losses and loss expenses
3,674 
2,122 
Policy benefits
126 
142 
Policy acquisition costs
1,413 
707 
Administrative expenses
772 
554 
Underwriting income (loss)
612 
402 
Net investment income
674 
551 
Segment Income (loss)
1,286 
953 
Net realized gains (losses) including OTTI
(394)
(89)
Interest expense
146 
68 
(Gains) losses from fair value changes in separate account assets
3 
(11)
Other
25 
(24)
Other (income) expense
28 
(35)
Amortization of purchased intangibles
7 
30 
Chubb integration expenses
148 
0 
Income tax expense
124 
120 
Net income (loss)
439 
681 
North America Commercial P&C Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
2,302 
1,297 
Net premiums earned
2,896 
1,380 
Losses and loss expenses
1,747 
915 
Policy acquisition costs
482 
130 
Administrative expenses
266 
151 
Underwriting income (loss)
401 
184 
Net investment income
426 
258 
Segment Income (loss)
827 
442 
North America Personal P&C Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
871 
133 
Net premiums earned
1,024 
146 
Losses and loss expenses
661 
111 
Policy acquisition costs
249 
31 
Administrative expenses
88 
19 
Underwriting income (loss)
26 
(15)
Net investment income
47 
5 
Segment Income (loss)
73 
(10)
Net realized gains (losses) including OTTI
 
   
Interest expense
 
   
Other
 
   
Amortization of purchased intangibles
 
   
Income tax expense
 
   
Net income (loss)
 
   
North America Agricultural Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
64 
88 
Net premiums earned
23 
64 
Losses and loss expenses
(30)
22 
Policy acquisition costs
4 
(4)
Administrative expenses
(4)
(1)
Underwriting income (loss)
53 
47 
Net investment income
5 
6 
Segment Income (loss)
58 
53 
Net realized gains (losses) including OTTI
 
   
Interest expense
 
   
Other
 
   
Amortization of purchased intangibles
 
   
Income tax expense
 
   
Net income (loss)
 
   
Overseas General Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
2,041 
1,794 
Net premiums earned
1,955 
1,637 
Losses and loss expenses
1,021 
814 
Policy acquisition costs
503 
389 
Administrative expenses
263 
256 
Underwriting income (loss)
168 
178 
Net investment income
146 
138 
Segment Income (loss)
314 
316 
Net realized gains (losses) including OTTI
 
   
Interest expense
 
   
Other
 
   
Amortization of purchased intangibles
 
   
Income tax expense
 
   
Net income (loss)
 
   
Global Reinsurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
201 
273 
Net premiums earned
202 
226 
Losses and loss expenses
89 
99 
Policy acquisition costs
53 
54 
Administrative expenses
14 
12 
Underwriting income (loss)
46 
61 
Net investment income
67 
75 
Segment Income (loss)
113 
136 
Net realized gains (losses) including OTTI
 
   
Interest expense
 
   
Other
 
   
Amortization of purchased intangibles
 
   
Income tax expense
 
   
Net income (loss)
 
   
Life Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Life underwriting income
64 
 
Net premiums written
516 
491 
Net premiums earned
497 
474 
Losses and loss expenses
177 
152 
Policy benefits
126 
142 
Policy acquisition costs
122 
107 
Administrative expenses
72 
73 
Underwriting income (loss)
0 
0 
Net investment income
67 
66 
Segment Income (loss)
67 
66 
Net realized gains (losses) including OTTI
 
   
Interest expense
 
   
(Gains) losses from fair value changes in separate account assets
3 
   
Other
 
   
Amortization of purchased intangibles
 
   
Income tax expense
 
   
Net income (loss)
 
   
Corporate And Other [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Losses and loss expenses
9 
9 
Policy acquisition costs
 
0 
Administrative expenses
73 
44 
Underwriting income (loss)
(82)
(53)
Net investment income
(84)
3 
Segment Income (loss)
(166)
(50)
Net realized gains (losses) including OTTI
(394)
(89)
Interest expense
146 
68 
(Gains) losses from fair value changes in separate account assets
3 
(11)
Other
25 
(24)
Amortization of purchased intangibles
7 
30 
Chubb integration expenses
148 
 
Income tax expense
124 
120 
Net income (loss)
$ (1,013)
$ (322)
Earnings Per Share (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Earnings Per Share [Abstract]
 
 
Net income
$ 439 
$ 681 
Weighted-average shares outstanding
446,739,586 
328,212,376 
Share-based compensation plans
3,270,156 
3,480,344 
Weighted-average shares outstanding and assumed conversions
450,009,742 
331,692,720 
Basic earnings per share (US$ per share)
$ 0.98 
$ 2.08 
Diluted earnings per share (US$ per share)
$ 0.97 
$ 2.05 
Potential anti-dilutive share conversions
2,074,308 
715,148 
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details) (USD $)
Mar. 31, 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
 
 
$ 10,000,000,000 
 
 
Interest Rate
 
 
 
2.30% 
4.35% 
Par value of debt
 
 
3,300,000,000 
 
 
Long-term debt
$ 12,636,000,000 
$ 9,389,000,000 
$ 3,760,000,000 
 
 
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
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
$ 97,586 
$ 66,251 
 
 
Cash
1,091 1 2
1,775 1 3
948 4
655 4
Insurance and reinsurance balances receivable
7,692 
5,323 
 
 
Reinsurance recoverable on losses and loss expenses
12,891 
11,386 
 
 
Reinsurance recoverable on policy benefits
185 
187 
 
 
Value of business acquired
390 
395 
 
 
Goodwill
23,359 
5,683 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
13,450 
11,306 
 
 
Total assets
156,644 
102,306 
 
 
Unpaid losses and loss expenses
60,206 
37,303 
 
 
Unearned premiums
14,896 
8,439 
 
 
Future policy benefits
4,869 
4,807 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Repurchase Agreements
1,403 
1,404 
 
 
Short-term debt
500 
0 
 
 
Affiliated notional cash pooling programs
0 
0 
 
 
Long-term debt
12,636 
9,389 
 
 
Trust preferred securities
308 
307 
 
 
Other liabilities
15,929 
11,522 
 
 
Total liabilities
110,747 
73,171 
 
 
Total shareholders' equity
45,897 
29,135 
29,702 
 
Total liabilities and shareholders’ equity
156,644 
102,306 
 
 
Chubb Limited (Parent Guarantor)
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
29 
28 
 
 
Cash
2 1 2
1 1 3
2 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
0 
0 
 
 
Investments in subsidiaries
35,426 
29,612 
 
 
Due from subsidiaries and affiliates, net
11,267 
644 
 
 
Other assets
4 
8 
 
 
Total assets
46,728 
30,293 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
 
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
521 2
882 3
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
310 
276 
 
 
Total liabilities
831 
1,158 
 
 
Total shareholders' equity
45,897 
29,135 
 
 
Total liabilities and shareholders’ equity
46,728 
30,293 
 
 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
643 
7,839 
 
 
Cash
3 1 2
2 1 3
366 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
0 
0 
 
 
Investments in subsidiaries
49,240 
18,386 
 
 
Due from subsidiaries and affiliates, net
0 
1,800 
 
 
Other assets
503 
457 
 
 
Total assets
50,389 
28,484 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
11,199 
0 
 
 
Repurchase Agreements
0 
0 
 
 
Short-term debt
500 
 
 
 
Affiliated notional cash pooling programs
799 2
89 3
 
 
Long-term debt
12,625 
9,378 
 
 
Trust preferred securities
308 
307 
 
 
Other liabilities
1,575 
1,422 
 
 
Total liabilities
27,006 
11,196 
 
 
Total shareholders' equity
23,383 
17,288 
 
 
Total liabilities and shareholders’ equity
50,389 
28,484 
 
 
Other Chubb Limited Subsidiaries
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
96,914 
58,384 
 
 
Cash
2,406 1 2
2,743 1 3
658 4
1,209 4
Insurance and reinsurance balances receivable
10,884 
6,075 
 
 
Reinsurance recoverable on losses and loss expenses
22,065 
20,124 
 
 
Reinsurance recoverable on policy benefits
1,144 
1,129 
 
 
Value of business acquired
390 
395 
 
 
Goodwill
23,359 
5,683 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
17,291 
14,434 
 
 
Total assets
174,453 
108,967 
 
 
Unpaid losses and loss expenses
68,917 
45,490 
 
 
Unearned premiums
18,522 
10,243 
 
 
Future policy benefits
5,828 
5,749 
 
 
Due to subsidiaries and affiliates, net
68 
2,444 
 
 
Repurchase Agreements
1,403 
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
18,421 
12,916 
 
 
Total liabilities
113,170 
78,257 
 
 
Total shareholders' equity
61,283 
30,710 
 
 
Total liabilities and shareholders’ equity
174,453 
108,967 
 
 
Consolidating Adjustments and Eliminations
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
0 
0 
 
 
Cash
(1,320)1 2
(971)1 3
(78)4
(555)4
Insurance and reinsurance balances receivable
(3,192)
(752)
 
 
Reinsurance recoverable on losses and loss expenses
(9,174)
(8,738)
 
 
Reinsurance recoverable on policy benefits
(959)
(942)
 
 
Value of business acquired
0 
0 
 
 
Goodwill
0 
0 
 
 
Investments in subsidiaries
(84,666)
(47,998)
 
 
Due from subsidiaries and affiliates, net
(11,267)
(2,444)
 
 
Other assets
(4,348)
(3,593)
 
 
Total assets
(114,926)
(65,438)
 
 
Unpaid losses and loss expenses
(8,711)
(8,187)
 
 
Unearned premiums
(3,626)
(1,804)
 
 
Future policy benefits
(959)
(942)
 
 
Due to subsidiaries and affiliates, net
(11,267)
(2,444)
 
 
Repurchase Agreements
0 
0 
 
 
Short-term debt
0 
 
 
 
Affiliated notional cash pooling programs
(1,320)2
(971)3
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
(4,377)
(3,092)
 
 
Total liabilities
(30,260)
(17,440)
 
 
Total shareholders' equity
(84,666)
(47,998)
 
 
Total liabilities and shareholders’ equity
$ (114,926)
$ (65,438)
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
Net premiums written
$ 5,995 
$ 4,076 
Net premiums earned
6,597 
3,927 
Net investment income
674 
551 
Equity in earnings of subsidiaries
0 
0 
Net realized gains (losses) including OTTI
(394)
(89)
Losses and loss expenses
3,674 
2,122 
Policy benefits
126 
142 
Policy acquisition costs and administrative expenses
2,185 
1,261 
Interest (income) expense
146 
68 
Other (income) expense
28 
(35)
Amortization of purchased intangibles
7 
30 
Chubb integration expenses
148 
0 
Income tax expense
124 
120 
Net income (loss)
439 
681 
Comprehensive income (loss)
1,541 
642 
Chubb Limited (Parent Guarantor)
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
Net premiums written
0 
0 
Net premiums earned
0 
0 
Net investment income
1 
1 
Equity in earnings of subsidiaries
375 
648 
Net realized gains (losses) including OTTI
0 
0 
Losses and loss expenses
0 
0 
Policy benefits
0 
0 
Policy acquisition costs and administrative expenses
17 
14 
Interest (income) expense
(80)
(8)
Other (income) expense
(9)
(41)
Amortization of purchased intangibles
0 
0 
Chubb integration expenses
3 
 
Income tax expense
6 
3 
Net income (loss)
439 
681 
Comprehensive income (loss)
1,541 
642 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
Net premiums written
0 
0 
Net premiums earned
0 
0 
Net investment income
4 
1 
Equity in earnings of subsidiaries
506 
204 
Net realized gains (losses) including OTTI
0 
0 
Losses and loss expenses
0 
0 
Policy benefits
0 
0 
Policy acquisition costs and administrative expenses
36 
6 
Interest (income) expense
215 
69 
Other (income) expense
10 
(3)
Amortization of purchased intangibles
0 
0 
Chubb integration expenses
137 
 
Income tax expense
(150)
(26)
Net income (loss)
262 
159 
Comprehensive income (loss)
1,056 
24 
Other Chubb Limited Subsidiaries
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
Net premiums written
5,995 
4,076 
Net premiums earned
6,597 
3,927 
Net investment income
669 
549 
Equity in earnings of subsidiaries
0 
0 
Net realized gains (losses) including OTTI
(394)
(89)
Losses and loss expenses
3,674 
2,122 
Policy benefits
126 
142 
Policy acquisition costs and administrative expenses
2,132 
1,241 
Interest (income) expense
11 
7 
Other (income) expense
27 
9 
Amortization of purchased intangibles
7 
30 
Chubb integration expenses
8 
 
Income tax expense
268 
143 
Net income (loss)
619 
693 
Comprehensive income (loss)
1,721 
654 
Consolidating Adjustments and Eliminations
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
Net premiums written
0 
0 
Net premiums earned
0 
0 
Net investment income
0 
0 
Equity in earnings of subsidiaries
(881)
(852)
Net realized gains (losses) including OTTI
0 
0 
Losses and loss expenses
0 
0 
Policy benefits
0 
0 
Policy acquisition costs and administrative expenses
0 
0 
Interest (income) expense
0 
0 
Other (income) expense
0 
0 
Amortization of purchased intangibles
0 
0 
Chubb integration expenses
0 
 
Income tax expense
0 
0 
Net income (loss)
(881)
(852)
Comprehensive income (loss)
$ (2,777)
$ (678)
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Chubb Limited (Parent Guarantor)
Mar. 31, 2015
Chubb Limited (Parent Guarantor)
Mar. 31, 2016
Chubb INA Holdings Inc (Subsidiary Issuer)
Mar. 31, 2015
Chubb INA Holdings Inc (Subsidiary Issuer)
Mar. 31, 2016
Other Chubb Limited Subsidiaries
Mar. 31, 2015
Other Chubb Limited Subsidiaries
Mar. 31, 2016
Consolidating Adjustments and Eliminations
Mar. 31, 2015
Consolidating Adjustments and Eliminations
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
Net cash flows from operating activities
$ 1,020 
$ 1,075 
$ 3,272 
$ 48 
$ 3,109 
$ 4 
$ 1,011 
$ 1,023 
$ (6,372)
$ 0 
Purchases of fixed maturities available for sale
(8,104)
(4,336)
0 
0 
0 
0 
(8,104)
(4,336)
0 
0 
Purchases of fixed maturities held to maturity
(77)
(21)
0 
0 
0 
0 
(77)
(21)
0 
0 
Purchases of equity securities
(33)
(39)
0 
0 
0 
0 
(33)
(39)
0 
0 
Sales of fixed maturities available for sale
6,329 
2,002 
0 
0 
0 
0 
6,329 
2,002 
0 
0 
Sales of equity securities
761 
28 
0 
0 
0 
0 
761 
28 
0 
0 
Maturities and redemptions of fixed maturities available for sale
1,553 
1,481 
0 
0 
0 
0 
1,553 
1,481 
0 
0 
Maturities and redemptions of fixed maturities held to maturity
249 
324 
0 
0 
0 
0 
249 
324 
0 
0 
Net change in short-term investments
11,932 
(255)
0 
0 
7,788 
216 
4,144 
(471)
0 
0 
Net derivative instruments settlements
(22)
(51)
0 
0 
0 
0 
(22)
(51)
0 
0 
Cash Acquired from Acquisition
57 
0 
 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Net of Cash Acquired
(14,262)
0 
 
 
(14,282)
 
20 
 
0 
 
Capital contribution
0 
 
(2,330)
 
0 
 
(2,330)
 
4,660 
 
Other
59 
(153)
0 
0 
0 
0 
59 
(153)
0 
0 
Net cash flows used for investing activities
(1,615)
(1,020)
(2,330)
0 
(6,494)
216 
2,549 
(1,236)
4,660 
0 
Dividends paid on Common Shares
(218)
(214)
(218)
(214)
0 
0 
0 
0 
0 
0 
Common Shares repurchased
0 
(347)
 
0 
 
0 
 
(347)
 
0 
Proceeds from issuance of long-term debt
0 
800 
 
 
 
800 
 
 
 
 
Proceeds from issuance of repurchase agreements
853 
477 
 
0 
 
0 
 
477 
 
0 
Repayments of Long-term Debt
853 
 
 
 
0 
 
(853)
 
 
 
Repayments of Short-term Debt
(853)
(477)
0 
0 
0 
0 
(853)
(477)
0 
0 
Proceeds from share-based compensation plans, including windfall tax benefits
51 
39 
0 
0 
0 
0 
51 
39 
0 
0 
Dividend to Parent Company
0 
 
0 
 
0 
 
(6,372)
 
6,372 
 
Capital contribution
0 
 
0 
 
2,330 
 
2,330 
 
(4,660)
 
Advances To From Affiliates Financing Activities
0 
0 
(362)
336 
350 
(340)
12 
4 
0 
0 
Net proceeds from (payments to) affiliated notional cash pooling program
0 
0 
(361)1
(168)2
710 1
(309)2
0 1
0 2
(349)1
477 2
Policyholder contract deposits
118 
101 
0 
   
0 
   
118 
101 
0 
   
Policyholder contract withdrawals
(49)
(40)
0 
0 
0 
0 
(49)
(40)
0 
0 
Other
(4)
(6)
0 
0 
(4)
(6)
0 
0 
0 
0 
Net cash flows (used for) from financing activities
(102)
333 
(941)
(46)
3,386 
145 
(3,910)
(243)
1,363 
477 
Effect of foreign currency rate changes on cash and cash equivalents
13 
(95)
0 
0 
0 
0 
13 
(95)
0 
0 
Net increase in cash
(684)
293 
1 
2 
1 
365 
(337)
(551)
(349)
477 
Cash – beginning of period
1,775 1 3
655 2
1 1 3
0 2
2 1 3
1 2
2,743 1 3
1,209 2
(971)1 3
(555)2
Cash – end of period
$ 1,091 1 4
$ 948 2
$ 2 1 4
$ 2 2
$ 3 1 4
$ 366 2
$ 2,406 1 4
$ 658 2
$ (1,320)1 4
$ (78)2