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• | unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves; |
• | future policy benefits reserves; |
• | the valuation of value of business acquired (VOBA) and amortization of deferred policy acquisition costs and VOBA; |
• | reinsurance recoverable, including a provision for uncollectible reinsurance; |
• | the assessment of risk transfer for certain structured insurance and reinsurance contracts; |
• | the valuation of the investment portfolio and assessment of OTTI; |
• | the valuation of deferred tax assets; |
• | the valuation of derivative instruments related to guaranteed living benefits (GLB); and |
• | the assessment of goodwill for impairment. |
• | For reinsurers that maintain a financial strength rating from a major rating agency, and for which recoverable balances are considered representative of the larger population (i.e., default probabilities are consistent with similarly rated reinsurers and payment durations conform to averages), the financial rating is based on a published source and the default factor is based on published default statistics of a major rating agency applicable to the reinsurer's particular rating class. When a recoverable is expected to be paid in a brief period of time by a highly rated reinsurer, such as certain property catastrophe claims, a default factor may not be applied; |
• | For balances recoverable from reinsurers that are both unrated by a major rating agency and for which management is unable to determine a credible rating equivalent based on a parent, affiliate, or peer company, we determine a rating equivalent based on an analysis of the reinsurer that considers an assessment of the creditworthiness of the particular entity, industry benchmarks, or other factors as considered appropriate. We then apply the applicable default factor for that rating class. For balances recoverable from unrated reinsurers for which the ceded reserve is below a certain threshold, we generally apply a default factor of 34 percent, consistent with published statistics of a major rating agency; |
• | For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting provision for uncollectible reinsurance based on reinsurer-specific facts and circumstances. Upon initial notification of an insolvency, we generally recognize an expense for a substantial portion of all balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the provision for uncollectible reinsurance. When regulatory action is taken on a reinsurer, we generally recognize a default factor by estimating an expected recovery on all balances outstanding, net of collateral. When sufficient credible information becomes available, we adjust the provision for uncollectible reinsurance by establishing a default factor pursuant to information received; and |
• | For other recoverables, management determines the provision for uncollectible reinsurance based on the specific facts and circumstances. |
• | Life insurance policies are carried at policy cash surrender value and income is recorded in other income (expense). |
• | Policy loans are carried at outstanding balance and interest income is recorded to net investment income. |
• | Trading securities are recorded on a trade date basis and carried at fair value. Unrealized gains and losses on trading securities are reflected in Other (income) expense. |
• | Other investments over which Chubb can exercise significant influence are accounted for using the equity method and income is recorded in Other (income) expense. |
• | All other investments over which Chubb cannot exercise significant influence are carried at fair value with changes in fair value recognized through OCI. For these investments, investment income is recognized in net investment income and realized gains are recognized as related distributions are received. |
• | Partially-owned investment companies comprise entities in which we hold an ownership interest in excess of three percent. These investments as well as Chubb's investments in investment funds where our ownership interest is in excess of three percent are accounted for under the equity method because Chubb exerts significant influence. These investments apply investment company accounting to determine operating results, and Chubb retains the investment company accounting in applying the equity method. This means that investment income, realized gains or losses, and unrealized gains or losses are included in the portion of equity earnings reflected in Other (income) expense. |
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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 | $ | — |
December 31, 2014 | 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 | $ | 2,741 | $ | 87 | $ | (8 | ) | $ | 2,820 | $ | — | ||||||||
Foreign | 14,703 | 629 | (90 | ) | 15,242 | — | |||||||||||||
Corporate securities | 16,897 | 704 | (170 | ) | 17,431 | (7 | ) | ||||||||||||
Mortgage-backed securities | 10,011 | 304 | (29 | ) | 10,286 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 3,474 | 147 | (5 | ) | 3,616 | — | |||||||||||||
$ | 47,826 | $ | 1,871 | $ | (302 | ) | $ | 49,395 | $ | (8 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 832 | $ | 20 | $ | (2 | ) | $ | 850 | $ | — | ||||||||
Foreign | 916 | 47 | — | 963 | — | ||||||||||||||
Corporate securities | 2,323 | 102 | (2 | ) | 2,423 | — | |||||||||||||
Mortgage-backed securities | 1,983 | 57 | (1 | ) | 2,039 | — | |||||||||||||
States, municipalities, and political subdivisions | 1,277 | 40 | (3 | ) | 1,314 | — | |||||||||||||
$ | 7,331 | $ | 266 | $ | (8 | ) | $ | 7,589 | $ | — |
December 31 | December 31 | ||||||||||||||
2015 | 2014 | ||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Available for sale | |||||||||||||||
Due in 1 year or less | $ | 1,856 | $ | 1,865 | $ | 2,187 | $ | 2,206 | |||||||
Due after 1 year through 5 years | 14,936 | 15,104 | 15,444 | 15,857 | |||||||||||
Due after 5 years through 10 years | 12,258 | 12,173 | 15,663 | 16,089 | |||||||||||
Due after 10 years | 4,272 | 4,487 | 4,521 | 4,957 | |||||||||||
33,322 | 33,629 | 37,815 | 39,109 | ||||||||||||
Mortgage-backed securities | 9,827 | 9,958 | 10,011 | 10,286 | |||||||||||
$ | 43,149 | $ | 43,587 | $ | 47,826 | $ | 49,395 | ||||||||
Held to maturity | |||||||||||||||
Due in 1 year or less | $ | 492 | $ | 495 | $ | 353 | $ | 355 | |||||||
Due after 1 year through 5 years | 2,443 | 2,517 | 2,603 | 2,693 | |||||||||||
Due after 5 years through 10 years | 2,292 | 2,313 | 1,439 | 1,489 | |||||||||||
Due after 10 years | 1,496 | 1,484 | 953 | 1,013 | |||||||||||
6,723 | 6,809 | 5,348 | 5,550 | ||||||||||||
Mortgage-backed securities | 1,707 | 1,743 | 1,983 | 2,039 | |||||||||||
$ | 8,430 | $ | 8,552 | $ | 7,331 | $ | 7,589 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Cost | $ | 441 | $ | 440 | |||
Gross unrealized appreciation | 74 | 83 | |||||
Gross unrealized depreciation | (18 | ) | (13 | ) | |||
Fair value | $ | 497 | $ | 510 |
• | 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. |
Moody's Rating Category | 1-in-100 Year Default Rate | Historical Mean Default Rate | |||
Investment Grade: | |||||
Aaa-Baa | 0.0-1.3% | 0.0-0.3% | |||
Below Investment Grade: | |||||
Ba | 4.9 | % | 1.1 | % | |
B | 12.7 | % | 3.4 | % | |
Caa-C | 50.2 | % | 13.1 | % |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Fixed maturities: | |||||||||||
OTTI on fixed maturities, gross | $ | (142 | ) | $ | (64 | ) | $ | (18 | ) | ||
OTTI on fixed maturities recognized in OCI (pre-tax) | 39 | 7 | — | ||||||||
OTTI on fixed maturities, net | (103 | ) | (57 | ) | (18 | ) | |||||
Gross realized gains excluding OTTI | 158 | 213 | 237 | ||||||||
Gross realized losses excluding OTTI | (235 | ) | (133 | ) | (129 | ) | |||||
Total fixed maturities | (180 | ) | 23 | 90 | |||||||
Equity securities: | |||||||||||
OTTI on equity securities | (7 | ) | (8 | ) | (2 | ) | |||||
Gross realized gains excluding OTTI | 47 | 22 | 21 | ||||||||
Gross realized losses excluding OTTI | (11 | ) | (61 | ) | (4 | ) | |||||
Total equity securities | 29 | (47 | ) | 15 | |||||||
OTTI on other investments | (2 | ) | (3 | ) | (2 | ) | |||||
Foreign exchange gains (losses) | (80 | ) | (40 | ) | 29 | ||||||
Investment and embedded derivative instruments | 32 | (107 | ) | 78 | |||||||
Fair value adjustments on insurance derivative | (203 | ) | (217 | ) | 878 | ||||||
S&P put options and futures | (10 | ) | (168 | ) | (579 | ) | |||||
Other derivative instruments | (12 | ) | 50 | (2 | ) | ||||||
Other | 6 | 2 | (3 | ) | |||||||
Net realized gains (losses) | (420 | ) | (507 | ) | 504 | ||||||
Change in net unrealized appreciation (depreciation) on investments: | |||||||||||
Fixed maturities available for sale | (1,119 | ) | 734 | (1,798 | ) | ||||||
Fixed maturities held to maturity | 43 | (2 | ) | (82 | ) | ||||||
Equity securities | (17 | ) | 77 | (41 | ) | ||||||
Other | (36 | ) | 35 | 54 | |||||||
Income tax (expense) benefit | 152 | (167 | ) | 408 | |||||||
Change in net unrealized appreciation (depreciation) on investments | (977 | ) | 677 | (1,459 | ) | ||||||
Total net realized gains (losses) and change in net unrealized appreciation (depreciation) on investments | $ | (1,397 | ) | $ | 170 | $ | (955 | ) |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Balance of credit losses related to securities still held – beginning of year | $ | 28 | $ | 37 | $ | 43 | |||||
Additions where no OTTI was previously recorded | 41 | 22 | 9 | ||||||||
Additions where an OTTI was previously recorded | 9 | 5 | 3 | ||||||||
Reductions for securities sold during the period | (25 | ) | (36 | ) | (18 | ) | |||||
Balance of credit losses related to securities still held – end of year | $ | 53 | $ | 28 | $ | 37 |
December 31 | December 31 | ||||||||||||||
2015 | 2014 | ||||||||||||||
(in millions of U.S. dollars) | Fair Value | Cost | Fair Value | Cost | |||||||||||
Investment funds | $ | 269 | $ | 138 | $ | 378 | $ | 228 | |||||||
Limited partnerships | 709 | 542 | 691 | 497 | |||||||||||
Partially-owned investment companies | 1,498 | 1,498 | 1,492 | 1,492 | |||||||||||
Life insurance policies | 222 | 222 | 205 | 205 | |||||||||||
Policy loans | 184 | 184 | 187 | 187 | |||||||||||
Trading securities | 284 | 284 | 290 | 287 | |||||||||||
Other | 125 | 125 | 103 | 103 | |||||||||||
Total | $ | 3,291 | $ | 2,993 | $ | 3,346 | $ | 2,999 |
December 31 | December 31 | ||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Carrying Value | Issued Share Capital | Ownership Percentage | Carrying Value | Issued Share Capital | Ownership Percentage | Domicile | ||||||||||||||||
Huatai Group | $ | 430 | $ | 624 | 20.0 | % | $ | 397 | $ | 638 | 20.0 | % | China | ||||||||||
Huatai Life Insurance Company | 107 | 428 | 20.0 | % | 86 | 438 | 20.0 | % | China | ||||||||||||||
Freisenbruch-Meyer | 9 | 5 | 40.0 | % | 9 | 5 | 40.0 | % | Bermuda | ||||||||||||||
ACE Cooperative Insurance Co. – Saudi Arabia | 11 | 27 | 30.0 | % | 10 | 27 | 30.0 | % | Saudi Arabia | ||||||||||||||
Russian Reinsurance Company | 2 | 4 | 23.3 | % | 2 | 4 | 23.3 | % | Russia | ||||||||||||||
ABR Reinsurance Ltd. | 94 | 800 | 11.3 | % | — | — | — | Bermuda | |||||||||||||||
Total | $ | 653 | $ | 1,888 | $ | 504 | $ | 1,112 |
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 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 2014 | 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 | $ | 350 | $ | (1 | ) | $ | 666 | $ | (9 | ) | $ | 1,016 | $ | (10 | ) | ||||||||
Foreign | 2,262 | (75 | ) | 375 | (15 | ) | 2,637 | (90 | ) | ||||||||||||||
Corporate securities | 4,684 | (150 | ) | 738 | (22 | ) | 5,422 | (172 | ) | ||||||||||||||
Mortgage-backed securities | 704 | (2 | ) | 1,663 | (28 | ) | 2,367 | (30 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 458 | (3 | ) | 490 | (5 | ) | 948 | (8 | ) | ||||||||||||||
Total fixed maturities | 8,458 | (231 | ) | 3,932 | (79 | ) | 12,390 | (310 | ) | ||||||||||||||
Equity securities | 101 | (13 | ) | — | — | 101 | (13 | ) | |||||||||||||||
Total | $ | 8,559 | $ | (244 | ) | $ | 3,932 | $ | (79 | ) | $ | 12,491 | $ | (323 | ) |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Fixed maturities | $ | 2,157 | $ | 2,199 | $ | 2,093 | |||||
Short-term investments | 49 | 45 | 29 | ||||||||
Equity securities | 16 | 33 | 37 | ||||||||
Other | 86 | 94 | 105 | ||||||||
Gross investment income | 2,308 | 2,371 | 2,264 | ||||||||
Investment expenses | (114 | ) | (119 | ) | (120 | ) | |||||
Net investment income | $ | 2,194 | $ | 2,252 | $ | 2,144 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Trust funds | $ | 11,862 | $ | 10,838 | |||
Deposits with non-U.S. regulatory authorities | 2,075 | 2,305 | |||||
Assets pledged under repurchase agreements | 1,459 | 1,431 | |||||
Deposits with U.S. regulatory authorities | 1,242 | 1,345 | |||||
Other pledged assets | 392 | 457 | |||||
$ | 17,030 | $ | 16,376 |
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• | 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 |
• | Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants |
% of total GMIB guaranteed value | Year of GMIB eligibility | Maximum annuitization rate(s) (per year) | Maximum annuitization rates based on | ||
68% | First year | 7% - 55% | Actual Experience | ||
Subsequent years | 5% - 27% | ||||
4% | First year | 18% | Actual Experience | ||
Subsequent years | 5%, 10%, 27% | Weighted average(1) | |||
28% | First year | 7%, 15%, 55% | Weighted average(1) | ||
Subsequent years | 5%, 10%, 27% |
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. Based on new accounting guidance adopted in 2015, these investments are excluded from the hierarchy table. |
(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 c) for additional information. |
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 1,680 | $ | 1,140 | $ | — | $ | 2,820 | |||||||
Foreign | — | 15,220 | 22 | 15,242 | |||||||||||
Corporate securities | — | 17,244 | 187 | 17,431 | |||||||||||
Mortgage-backed securities | — | 10,271 | 15 | 10,286 | |||||||||||
States, municipalities, and political subdivisions | — | 3,616 | — | 3,616 | |||||||||||
1,680 | 47,491 | 224 | 49,395 | ||||||||||||
Equity securities | 492 | 16 | 2 | 510 | |||||||||||
Short-term investments | 1,183 | 1,139 | — | 2,322 | |||||||||||
Other investments(1) | 370 | 211 | 204 | 785 | |||||||||||
Securities lending collateral | — | 1,330 | — | 1,330 | |||||||||||
Investment derivative instruments | 18 | — | — | 18 | |||||||||||
Other derivative instruments | — | 2 | — | 2 | |||||||||||
Separate account assets | 1,400 | 90 | — | 1,490 | |||||||||||
Total assets measured at fair value(1) | $ | 5,143 | $ | 50,279 | $ | 430 | $ | 55,852 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 36 | $ | — | $ | — | $ | 36 | |||||||
Other derivative instruments | 21 | — | 4 | 25 | |||||||||||
GLB(2) | — | — | 406 | 406 | |||||||||||
Total liabilities measured at fair value | $ | 57 | $ | — | $ | 410 | $ | 467 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,561 million at December 31, 2014 measured using NAV. Based on new accounting guidance adopted in 2015, these investments are excluded from the hierarchy table. |
(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 c) for additional information. |
Year Ended December 31 | |||||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||||
Transfers from Level 1 to Level 2 | $ | — | $ | 189 | $ | 19 | |||||||
Transfers from Level 2 to Level 1 | $ | — | $ | — | $ | — |
December 31 | December 31 | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions of U.S. dollars) | Expected Liquidation Period of Underlying Assets | Fair Value | Maximum Future Funding Commitments | Fair Value | Maximum Future Funding Commitments | ||||||||||||
Financial | 5 to 9 Years | $ | 300 | $ | 105 | $ | 282 | $ | 145 | ||||||||
Real Assets | 3 to 7 Years | 474 | 140 | 451 | 210 | ||||||||||||
Distressed | 5 to 9 Years | 261 | 218 | 232 | 175 | ||||||||||||
Private Credit | 3 to 7 Years | 265 | 209 | 299 | 190 | ||||||||||||
Traditional | 3 to 9 Years | 895 | 152 | 895 | 285 | ||||||||||||
Vintage | 1 to 2 Years | 13 | — | 24 | 5 | ||||||||||||
Investment funds | Not Applicable | 269 | — | 378 | — | ||||||||||||
$ | 2,477 | $ | 824 | $ | 2,561 | $ | 1,010 |
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 |
(in millions of U.S. dollars, except for percentages) | Fair Value at December 31, 2015 | Valuation Technique | Significant Unobservable Inputs | Ranges | ||||||
GLB(1) | $ | 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. |
Assets | Liabilities | ||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Other investments | Other derivative instruments | GLB(1) | |||||||||||||||||||||||
Year Ended December 31, 2015 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||
Balance, beginning of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | 204 | $ | 4 | $ | 406 | |||||||||||||
Transfers into Level 3 | 34 | 16 | — | — | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (2 | ) | (1 | ) | — | 3 | (6 | ) | — | — | |||||||||||||||||
Net Realized Gains/Losses | (1 | ) | (4 | ) | — | (2 | ) | — | 2 | 203 | |||||||||||||||||
Purchases | 15 | 52 | 41 | 13 | 33 | — | — | ||||||||||||||||||||
Sales | (3 | ) | (28 | ) | (2 | ) | — | — | — | — | |||||||||||||||||
Settlements | (8 | ) | (48 | ) | (1 | ) | — | (19 | ) | — | — | ||||||||||||||||
Balance, end of year | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | 212 | $ | 6 | $ | 609 | |||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (1 | ) | $ | (2 | ) | $ | — | $ | (2 | ) | $ | — | $ | 2 | $ | 203 |
(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 c) for additional information. |
Assets | Liabilities | |||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | |||||||||||||||||||||||||||
Year ended December 31, 2014 | Foreign | Corporate securities | MBS | |||||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 196 | $ | — | $ | 193 | ||||||||||||||||
Transfers into Level 3 | 10 | 37 | — | — | — | — | 2 | — | ||||||||||||||||||||||||
Transfers out of Level 3 | (34 | ) | (23 | ) | — | (2 | ) | (7 | ) | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (1 | ) | (1 | ) | — | — | — | (1 | ) | — | — | |||||||||||||||||||||
Net Realized Gains/Losses | (3 | ) | (5 | ) | — | — | — | — | 2 | 213 | ||||||||||||||||||||||
Purchases | 15 | 73 | 8 | 2 | — | 20 | — | — | ||||||||||||||||||||||||
Sales | (4 | ) | (38 | ) | — | (2 | ) | — | — | — | — | |||||||||||||||||||||
Settlements | (5 | ) | (22 | ) | (1 | ) | — | — | (11 | ) | — | — | ||||||||||||||||||||
Balance, end of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | — | $ | 204 | $ | 4 | $ | 406 | ||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (4 | ) | $ | (5 | ) | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | 213 |
(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 $663 million at December 31, 2014 and $427 million at December 31, 2013, which includes a fair value derivative adjustment of $406 million and $193 million, respectively. |
Assets | Liabilities | |||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | GLB(1) | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | Foreign | Corporate securities | MBS | Equity securities | Short term investments | Other investments | ||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 60 | $ | 102 | $ | 13 | $ | 3 | $ | — | $ | 180 | $ | 1,119 | ||||||||||||||||
Transfers into Level 3 | 36 | 47 | — | 8 | 8 | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | (54 | ) | (31 | ) | — | (1 | ) | (2 | ) | — | — | |||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | — | — | — | (6 | ) | — | (2 | ) | — | |||||||||||||||||||||
Net Realized Gains/Losses | 1 | (2 | ) | — | 4 | — | — | (926 | ) | |||||||||||||||||||||
Purchases | 24 | 75 | — | 2 | 3 | 29 | — | |||||||||||||||||||||||
Sales | (21 | ) | (7 | ) | (3 | ) | (6 | ) | (1 | ) | — | — | ||||||||||||||||||
Settlements | (2 | ) | (18 | ) | (2 | ) | — | (1 | ) | (11 | ) | — | ||||||||||||||||||
Balance, end of year | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 196 | $ | 193 | ||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | (926 | ) |
(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 $427 million at December 31, 2013 and $1.4 billion at December 31, 2012, which includes a fair value derivative adjustment of $193 million and $1.1 billion, respectively. |
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 | 9,447 | |||||||||||||
Trust preferred securities | — | 446 | — | 446 | 309 | |||||||||||||
Total liabilities | $ | — | $ | 11,528 | $ | — | $ | 11,528 | $ | 11,160 |
December 31, 2014 | 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 | $ | 659 | $ | 191 | $ | — | $ | 850 | $ | 832 | ||||||||
Foreign | — | 963 | — | 963 | 916 | |||||||||||||
Corporate securities | — | 2,408 | 15 | 2,423 | 2,323 | |||||||||||||
Mortgage-backed securities | — | 2,039 | — | 2,039 | 1,983 | |||||||||||||
States, municipalities, and political subdivisions | — | 1,314 | — | 1,314 | 1,277 | |||||||||||||
Total assets | $ | 659 | $ | 6,915 | $ | 15 | $ | 7,589 | $ | 7,331 | ||||||||
Liabilities: | ||||||||||||||||||
Repurchase Agreements | $ | — | $ | 1,402 | $ | — | $ | 1,402 | $ | 1,402 | ||||||||
Short-term debt | — | 1,169 | — | 1,169 | 1,150 | |||||||||||||
Long-term debt | — | 3,690 | — | 3,690 | 3,357 | |||||||||||||
Trust preferred securities | — | 462 | — | 462 | 309 | |||||||||||||
Total liabilities | $ | — | $ | 6,723 | $ | — | $ | 6,723 | $ | 6,218 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Premiums written | |||||||||||
Direct | $ | 19,879 | $ | 20,069 | $ | 19,212 | |||||
Assumed | 3,932 | 3,321 | 3,616 | ||||||||
Ceded | (6,098 | ) | (5,591 | ) | (5,803 | ) | |||||
Net | $ | 17,713 | $ | 17,799 | $ | 17,025 | |||||
Premiums earned | |||||||||||
Direct | $ | 19,355 | $ | 19,555 | $ | 18,856 | |||||
Assumed | 3,676 | 3,336 | 3,479 | ||||||||
Ceded | (5,818 | ) | (5,465 | ) | (5,722 | ) | |||||
Net | $ | 17,213 | $ | 17,426 | $ | 16,613 |
December 31 | December 31 | |||||||||
(in millions of U.S. dollars) | 2015 | 2014 | ||||||||
Reinsurance recoverable on unpaid losses and loss expenses (1) | $ | 10,741 | $ | 11,307 | ||||||
Reinsurance recoverable on paid losses and loss expenses (1) | 645 | 685 | ||||||||
Net reinsurance recoverable on losses and loss expenses | $ | 11,386 | $ | 11,992 |
(1) | Net of a provision for uncollectible reinsurance. |
December 31, 2015 | Gross Reinsurance Recoverable on Loss and Loss Expenses | Provision for Uncollectible Reinsurance | % of Gross Reinsurance Recoverable | |||||||
(in millions of U.S. dollars, except for percentages) | ||||||||||
Categories | ||||||||||
Largest reinsurers | $ | 5,335 | $ | 69 | 1.3 | % | ||||
Other reinsurers rated A- or better | 3,078 | 44 | 1.4 | % | ||||||
Other reinsurers with ratings lower than A- or not rated | 378 | 68 | 18.0 | % | ||||||
Pools | 347 | 14 | 4.0 | % | ||||||
Structured settlements | 546 | 10 | 1.8 | % | ||||||
Captives | 1,786 | 23 | 1.3 | % | ||||||
Other | 244 | 100 | 41.0 | % | ||||||
Total | $ | 11,714 | $ | 328 | 2.8 | % |
Largest Reinsurers | ||
Alleghany Corp | HDI Group (Hannover Re) | Munich Re Group |
Atlantic Indemnity | IRB Brasil Resseguros S.A. Group | Partner Re Group |
Berkshire Hathaway Insurance Group | Lloyd's of London | Swiss Re Group |
Categories of Chubb's reinsurers | Comprises: | |
Largest reinsurers | • All groups of reinsurers or captives where the gross recoverable exceeds one percent of Chubb's total shareholders' equity. | |
Other reinsurers rated A- or better | • All reinsurers rated A- or better that were not included in the largest reinsurer category. | |
Other reinsurers rated lower than A- or not rated | • All reinsurers rated lower than A- or not rated that were not included in the largest reinsurer category. | |
Pools | • Related to Chubb's voluntary pool participation and Chubb's mandatory pool participation required by law in certain states. | |
Structured settlements | • Annuities purchased from life insurance companies to settle claims. Since we retain ultimate liability in the event that the life company fails to pay, we reflect the amounts as both a liability and a recoverable/receivable for GAAP purposes. | |
Captives | • Companies established and owned by our insurance clients to assume a significant portion of their direct insurance risk from Chubb; structured to allow clients to self-insure a portion of their reinsurance risk. It generally is our policy to obtain collateral equal to expected losses. Where appropriate, exceptions are granted but only with review and approval at a senior officer level. Excludes captives included in the largest reinsurer category. | |
Other | • Recoverables that are in dispute or are from companies that are in supervision, rehabilitation, or liquidation. |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
GMDB | |||||||||||
Net premiums earned | $ | 61 | $ | 71 | $ | 77 | |||||
Policy benefits and other reserve adjustments | $ | 34 | $ | 50 | $ | 73 | |||||
GLB | |||||||||||
Net premiums earned | $ | 121 | $ | 138 | $ | 149 | |||||
Policy benefits and other reserve adjustments | 45 | 36 | 27 | ||||||||
Net realized gains (losses) | (203 | ) | (213 | ) | 929 | ||||||
Gain (loss) recognized in Net income | $ | (127 | ) | $ | (111 | ) | $ | 1,051 | |||
Net cash received | $ | 98 | $ | 125 | $ | 126 | |||||
Net (increase) decrease in liability | $ | (225 | ) | $ | (236 | ) | $ | 925 |
(in millions of U.S. dollars, except for percentages) | Net amount at risk | |||||||||||
Reinsurance covering | 2015 | 2014 | 2015 Future claims discount rate | Other assumptions | Total claims at 100% mortality at December 31, 2015(1) | |||||||
GMDB Risk Only | $ | 364 | $ | 418 | 3.8% - 4.3% | No lapses or withdrawals | $ | 229 | ||||
Mortality according to 100% of the Annuity 2000 mortality table | ||||||||||||
GLB Risk Only | $ | 733 | $ | 440 | 4.5% - 5.0% | No deaths, lapses or withdrawals | N/A | |||||
Annuitization at a frequency most disadvantageous to Chubb(2) | ||||||||||||
Claim calculated using interest rates in line with rates used to calculate reserve | ||||||||||||
Both Risks: (3) | GMDB | $ | 89 | $ | 76 | 4.5% - 5.0% | No lapses or withdrawals | $ | 56 | |||
Mortality according to 100% of the Annuity 2000 mortality table | ||||||||||||
GLB | $ | 422 | $ | 235 | 4.5% - 5.0% | Annuitization at a frequency most disadvantageous to Chubb(2) | $ | — | ||||
Claim calculated using interest rates in line with rates used to calculate reserve |
|
(in millions of U.S. dollars) | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – Overseas General | Global Reinsurance | Life | ACE Consolidated | |||||||||||||||||
Balance at December 31, 2013 | $ | 1,215 | $ | 134 | $ | 2,054 | $ | 365 | $ | 835 | $ | 4,603 | |||||||||||
Purchase price allocation adjustment | — | — | 4 | — | — | 4 | |||||||||||||||||
Acquisition of Samaggi | — | — | 46 | — | — | 46 | |||||||||||||||||
Acquisition of Itaú Seguros | — | — | 449 | — | — | 449 | |||||||||||||||||
Foreign exchange revaluation and other | (4 | ) | — | (187 | ) | — | (7 | ) | (198 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 1,211 | $ | 134 | $ | 2,366 | $ | 365 | $ | 828 | $ | 4,904 | |||||||||||
Purchase price allocation adjustment | — | — | (4 | ) | — | — | (4 | ) | |||||||||||||||
Acquisition of Fireman's Fund | 196 | — | — | — | — | 196 | |||||||||||||||||
Foreign exchange revaluation and other | (8 | ) | — | (284 | ) | — | (8 | ) | (300 | ) | |||||||||||||
Balance at December 31, 2015 | $ | 1,399 | $ | 134 | $ | 2,078 | $ | 365 | $ | 820 | $ | 4,796 |
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Balance, beginning of year | $ | 466 | $ | 536 | $ | 614 | |||||
Amortization expense | (42 | ) | (51 | ) | (64 | ) | |||||
Foreign exchange revaluation | (29 | ) | (19 | ) | (14 | ) | |||||
Balance, end of year | $ | 395 | $ | 466 | $ | 536 |
For the Year Ending December 31 | Other intangible assets | VOBA | |||||
(in millions of U.S. dollars) | |||||||
2016 | $ | 88 | $ | 39 | |||
2017 | 78 | 35 | |||||
2018 | 70 | 32 | |||||
2019 | 63 | 27 | |||||
2020 | 58 | 24 | |||||
Total | $ | 357 | $ | 157 |
|
Years Ended December 31 | ||||||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | |||||||||||
Gross unpaid losses and loss expenses, beginning of year | $ | 38,315 | $ | 37,443 | $ | 37,946 | ||||||||
Reinsurance recoverable on unpaid losses(1) | (11,307 | ) | (10,612 | ) | (11,399 | ) | ||||||||
Net unpaid losses and loss expenses, beginning of year | 27,008 | 26,831 | 26,547 | |||||||||||
Acquisition of subsidiaries | 417 | 320 | 86 | |||||||||||
Total | 27,425 | 27,151 | 26,633 | |||||||||||
Net losses and loss expenses incurred in respect of losses occurring in: | ||||||||||||||
Current year | 10,030 | 10,176 | 9,878 | |||||||||||
Prior years | (546 | ) | (527 | ) | (530 | ) | ||||||||
Total | 9,484 | 9,649 | 9,348 | |||||||||||
Net losses and loss expenses paid in respect of losses occurring in: | ||||||||||||||
Current year | 4,053 | 3,975 | 3,942 | |||||||||||
Prior years | 5,612 | 5,260 | 5,035 | |||||||||||
Total | 9,665 | 9,235 | 8,977 | |||||||||||
Foreign currency revaluation and other | (682 | ) | (557 | ) | (173 | ) | ||||||||
Net unpaid losses and loss expenses, end of year | 26,562 | 27,008 | 26,831 | |||||||||||
Reinsurance recoverable on unpaid losses(1) | 10,741 | 11,307 | 10,612 | |||||||||||
Gross unpaid losses and loss expenses, end of year | $ | 37,303 | $ | 38,315 | $ | 37,443 | ||||||||
(1) Net of provision for uncollectible reinsurance. |
• | Net favorable development of $169 million in long-tail business, primarily from: |
• | Net favorable development of $108 million in our management and professional liability portfolios, primarily impacting accident years 2010 and prior. Lower than expected paid and reported loss activity led to reductions in our estimates of ultimate loss for these accident years; |
• | Favorable development of $32 million in our auto liability excess lines and $26 million in our general liability product lines primarily impacting the 2010 accident year, resulting from lower than expected loss emergence and an increase in weighting applied to experience-based methods; |
• | Net favorable development of $21 million in our workers’ compensation lines with favorable development of $52 million in the 2014 accident year related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the end of the accident year to allow for late reporting or identification of significant losses. Adverse development of $29 million was experienced on the 2009 and prior accident years due to a combination of claim-specific deteriorations and higher than expected loss emergence. There was also adverse development on the 2014 accident year due to revised account-level estimates, which were higher than our original aggregate expectations; |
• | Favorable development of $24 million in our surety business due to lower than expected claims emergence primarily in the 2013 accident year; and |
• | Net adverse development of $33 million in our commercial umbrella and excess portfolios, primarily impacting accident years 2010 and 2011. Higher than expected reported loss activity, combined with an increase in weighting applied to experience-based methods, led to increased provisions in accident years 2010 and 2011, which was partly offset by the recognition of favorable emergence in the 2009 and prior accident years. |
• | Favorable development of $70 million in short-tail business, primarily driven by favorable development of $34 million in our excess property business primarily impacting the 2013 accident year. Paid and reported loss activity was lower than expected leading to reductions in our estimate of ultimate loss. |
• | Adverse development of $170 million related to the completion of reserve reviews during 2015. The development primarily arose from case specific settlements and higher than expected remediation expense and defense costs for environmental claims and increases in indemnity and defense costs on a select number of modeled accounts for asbestos. Further, we experienced higher than expected loss emergence on certain portfolios in our assumed reinsurance book and in other run-off lines; and |
• | Adverse development of $30 million on unallocated loss adjustment expenses due to run-off operating expenses paid and incurred during 2015. |
• | Net favorable development of $298 million in long-tail business, primarily from: |
• | Favorable development of $104 million in our D&O portfolios, primarily impacting the 2009 and prior accident years. Case incurred loss emergence that was lower than expected combined with an increase in weighting applied to experience-based methods led to a reduction in the estimates of ultimate loss for those years; |
• | Favorable development of $55 million in our excess casualty and umbrella businesses. Resolution of a disputed matter on an individual claim led to a release of $42 million in the 2003 accident year, and lower than expected reported activity across a number of accident years drove the remaining improvement; |
• | Favorable development of $48 million on an older claim following recent legal developments, after which it was determined that the reserves were no longer required; |
• | Favorable development of $40 million in our medical risk operations, primarily impacting the 2009 and 2010 accident years. Paid and case incurred loss emergence that was lower than expected combined with an increase in weighting applied to experience-based methods led to a reduction in the estimate of ultimate loss for those years; |
• | Favorable development of $35 million in our financial solutions business, primarily in the 2010 and prior accident years. Net favorable development principally resulted from the recognition of lower than expected loss activity on two large excess liability transactions; |
• | Favorable development of $27 million in our surety business, primarily from favorable claims emergence in the 2012 accident year; |
• | Net adverse development of $32 million in our workers’ compensation lines, with adverse development in the 2013 accident year and mainly favorable development in accident years 2009 and 2010. Adverse development in the 2013 accident year is being driven by one large account which is experiencing higher than expected claims frequency and severity; and |
• | Net favorable development of $21 million in our auto liability excess lines primarily impacting the 2009 accident year. Reported activity on loss and allocated loss expenses was lower than expected based on estimates from our prior review and original pricing assumptions. |
• | Favorable development of $56 million in short-tail business, primarily driven by net favorable development of $20 million in our energy and technical risk property business, primarily impacting the 2012 and 2013 accident years. Across most lines, paid and reported loss activity was lower than expected. |
• | Adverse development of $215 million related to the completion of reserve reviews during 2014. The development primarily arose from case specific asbestos and environmental claims related to increased payment activity and the costs associated with certain case settlements in 2014. Further, we experienced higher than expected case incurred activity in our assumed reinsurance portfolio; and |
• | Adverse development of $32 million on unallocated loss adjustment expenses due to run-off operating expenses paid and incurred during 2014. |
• | Net favorable development of $166 million in long-tail business, primarily from: |
• | Net favorable development of $140 million, primarily in casualty and financial lines with favorable development of $175 million in accident years 2011 and prior, resulting from lower than expected loss emergence, and adverse development of $35 million in accident years 2012 to 2014, primarily due to large loss experience in the U.K. and Europe; and |
• | Favorable development of $26 million on an individual legacy liability case reserve take-down. This release follows a legal analysis completed in 2015, based on court opinion in the year and discussions with defense counsel, which concluded that these reserves were no longer required. |
• | Favorable development of $177 million in short-tail business primarily from: |
• | Favorable development of $90 million in property, technical, energy and marine lines from specific claims and additional credibility assigned to accident years 2013 and prior favorable indications; |
• | Favorable development of $34 million in accident and health business primarily in accident year 2013 and 2014 across all regions and products, none of which was individually significant; and |
• | Favorable development of $26 million in consumer business primarily in Latin America and Asia Pacific, resulting from favorable development and additional credibility assigned to accident years 2012 and 2013. |
• | Net favorable development of $181 million in long-tail business, primarily from: |
• | Net favorable development of $102 million primarily in casualty lines with favorable development of $148 million in accident years 2010 and prior, predominantly due to favorable loss experience in European primary and excess lines, and adverse development of $46 million in accident years 2011 to 2013, predominantly due to large loss experience in the U.K. primary and excess lines; |
• | Favorable development of $52 million on an individual liability case reserve take-down. This release follows discussions with defense counsel, a review of key legal briefing, and a coverage analysis, all of which was completed in the third quarter of 2014 and after which it was concluded that the reserves were no longer required; and |
• | Net favorable development of $27 million in financial lines with favorable development of $98 million in accident years 2010 and prior due to favorable loss experience and adverse development of $71 million in accident years 2011 to 2013. The adverse development was primarily due to large loss experience in D&O and financial institutions. |
• | Favorable development of $210 million in short-tail business, primarily from: |
• | Favorable development of $136 million across property, technical and marine lines with favorable development of $44 million in accident year 2013 due to favorable large loss experience, and favorable development of $92 million in accident years 2012 and prior due to favorable development on specific claims and an increase in weighting applied to experience-based methods; |
• | Favorable development of $30 million in aviation lines primarily in accident years 2010 and prior in the aviation products, airlines and airport liability lines; and |
• | Favorable development of $25 million in personal lines primarily in accident years 2011 to 2013 across all Latin America personal lines and Asia Pacific personal automobile lines. |
• | Favorable development of $54 million comprising $42 million in long-tail lines and $12 million in short-tail lines, on an individual legacy liability case reserve take-down. This release follows a legal analysis completed in 2015, based on court opinion and discussions with defense counsel, which concluded that these reserves were no longer required; |
• | Favorable development of $33 million in professional liability lines, including medical malpractice business, primarily in treaty years 2010 and prior reflecting favorable paid and incurred loss trends and an increase in weighting applied to experience-based methods; and |
• | Favorable development of $23 million in casualty lines, principally in treaty years 2009 and prior reflecting favorable paid and incurred loss trends and an increase in weighting applied to experience-based methods. |
• | Net favorable development of $52 million in long-tail business, primarily from: |
• | Favorable development of $34 million in professional liability lines, including medical malpractice business, primarily in treaty years 2009 and prior reflecting favorable paid and incurred loss trends and an increase in weighting applied to experience-based methods; and |
• | Favorable development of $25 million in casualty lines, principally in treaty years 2009 and prior reflecting favorable paid and incurred loss trends and an increase in weighting applied to experience-based methods. |
Asbestos | Environmental | Total | |||||||||||||||||||||||
(in millions of U.S. dollars) | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
Balance at December 31, 2014 | $ | 1,500 | $ | 892 | $ | 199 | $ | 149 | $ | 1,699 | $ | 1,041 | |||||||||||||
Incurred activity | 125 | 76 | 118 | 86 | 243 | 162 | (1) | ||||||||||||||||||
Paid activity | (274 | ) | (137 | ) | (118 | ) | (86 | ) | (392 | ) | (223 | ) | |||||||||||||
Balance at December 31, 2015 | $ | 1,351 | $ | 831 | $ | 199 | $ | 149 | $ | 1,550 | $ | 980 |
(1) | Excludes unallocated loss expenses and the net activity reflects third-party reinsurance other than the aggregate excess of loss reinsurance provided by National Indemnity Company (NICO) to Westchester Specialty (see Westchester Specialty section below). |
|
Years Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Current tax expense | $ | 304 | $ | 481 | $ | 231 | |||||
Deferred tax expense | 158 | 153 | 249 | ||||||||
Provision for income taxes | $ | 462 | $ | 634 | $ | 480 |
Years Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Expected tax provision at Swiss statutory tax rate | $ | 258 | $ | 273 | $ | 331 | |||||
Permanent differences: | |||||||||||
Taxes on earnings subject to rate other than Swiss statutory rate | 193 | 224 | 124 | ||||||||
Change to deferred taxes related to unrealized foreign exchange losses (1) | — | 139 | — | ||||||||
Tax-exempt interest and dividends received deduction, net of proration | (32 | ) | (33 | ) | (27 | ) | |||||
Net withholding taxes | 35 | 33 | 27 | ||||||||
Change in valuation allowance (1) | 2 | (20 | ) | 4 | |||||||
Other | 6 | 18 | 21 | ||||||||
Total provision for income taxes | $ | 462 | $ | 634 | $ | 480 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Deferred tax assets: | |||||||
Loss reserve discount | $ | 663 | $ | 794 | |||
Unearned premiums reserve | 190 | 99 | |||||
Foreign tax credits | 969 | 1,103 | |||||
Investments | 29 | 9 | |||||
Provision for uncollectible balances | 65 | 81 | |||||
Loss carry-forwards | 72 | 40 | |||||
Compensation related amounts | 189 | 185 | |||||
Other | 65 | — | |||||
Total deferred tax assets | 2,242 | 2,311 | |||||
Deferred tax liabilities: | |||||||
Deferred policy acquisition costs | 412 | 213 | |||||
VOBA and other intangible assets | 384 | 321 | |||||
Un-remitted foreign earnings | 827 | 939 | |||||
Unrealized appreciation on investments | 195 | 406 | |||||
Depreciation | 68 | 77 | |||||
Other | — | 43 | |||||
Total deferred tax liabilities | 1,886 | 1,999 | |||||
Valuation allowance | 38 | 17 | |||||
Net deferred tax assets | $ | 318 | $ | 295 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Balance, beginning of year | $ | 23 | $ | 27 | |||
Additions based on tax provisions related to the current year | 1 | 2 | |||||
Reductions for tax positions of prior years | (7 | ) | — | ||||
Reductions for the lapse of the applicable statutes of limitations | (1 | ) | (6 | ) | |||
Balance, end of year | $ | 16 | $ | 23 |
|
December 31 | December 31 | ||||||||
(in millions of U.S. dollars) | 2015 | 2014 | Early Redemption Option | ||||||
Repurchase agreements (weighted average interest rate of 0.6% in 2015 and 0.3% in 2014) | $ | 1,404 | $ | 1,402 | None | ||||
Short-term debt | |||||||||
ACE INA senior notes: | |||||||||
$450 million 5.6% due May 2015 | $ | — | $ | 450 | Make-whole premium plus 0.35% | ||||
$700 million 2.6% due November 2015 | — | 700 | Make-whole premium plus 0.20% | ||||||
Total short-term debt | $ | — | $ | 1,150 | |||||
Long-term debt | |||||||||
ACE INA senior notes: | |||||||||
$500 million 5.7% due February 2017 | $ | 500 | $ | 500 | Make-whole premium plus 0.20% | ||||
$300 million 5.8% due March 2018 | 300 | 300 | Make-whole premium plus 0.35% | ||||||
$500 million 5.9% due June 2019 | 500 | 500 | Make-whole premium plus 0.40% | ||||||
$1,300 million 2.3% due November 2020 | 1,299 | — | Make-whole premium plus 0.15% | ||||||
$1,000 million 2.875% due November 2022 | 999 | — | Make-whole premium plus 0.20% | ||||||
$475 million 2.7% due March 2023 | 474 | 474 | Make-whole premium plus 0.10% | ||||||
$700 million 3.35% due May 2024 | 699 | 699 | Make-whole premium plus 0.15% | ||||||
$800 million 3.15% due March 2025 | 800 | — | Make-whole premium plus 0.15% | ||||||
$1,500 million 3.35% due May 2026 | 1,496 | — | Make-whole premium plus 0.20% | ||||||
$300 million 6.7% due May 2036 | 299 | 299 | Make-whole premium plus 0.20% | ||||||
$475 million 4.15% due March 2043 | 474 | 474 | Make-whole premium plus 0.15% | ||||||
$1,500 million 4.35% due November 2045 | 1,496 | — | Make-whole premium plus 0.25% | ||||||
ACE INA $100 million 8.875% debentures due August 2029 | 100 | 100 | None | ||||||
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020) | 11 | 11 | None | ||||||
Total long-term debt | $ | 9,447 | $ | 3,357 | |||||
Trust preferred securities | |||||||||
ACE INA capital securities due April 2030 | $ | 309 | $ | 309 | 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. |
|
December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||
Consolidated Balance Sheet Location | Fair Value | Notional Value/ Payment Provision | Fair Value | Notional Value/ Payment Provision | ||||||||||||||||||||||
Derivative Asset | Derivative (Liability) | Derivative Asset | Derivative (Liability) | |||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||
Investment and embedded derivative instruments | ||||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 7 | $ | (11 | ) | $ | 1,029 | $ | 12 | $ | (7 | ) | $ | 1,329 | |||||||||||
Cross-currency swaps | OA / (AP) | — | — | 95 | — | — | 95 | |||||||||||||||||||
Futures contracts on money market instruments | OA / (AP) | — | — | — | — | — | 2,467 | |||||||||||||||||||
Options/Futures contracts on notes and bonds | OA / (AP) | 5 | (2 | ) | 751 | 6 | (29 | ) | 1,636 | |||||||||||||||||
Convertible securities(1) | FM AFS/ES | 31 | — | 40 | 291 | — | 267 | |||||||||||||||||||
$ | 43 | $ | (13 | ) | $ | 1,915 | $ | 309 | $ | (36 | ) | $ | 5,794 | |||||||||||||
Other derivative instruments | ||||||||||||||||||||||||||
Futures contracts on equities(2) | OA / (AP) | $ | — | $ | (4 | ) | $ | 1,197 | $ | — | $ | (21 | ) | $ | 1,384 | |||||||||||
Options on equity market indices(2) | OA / (AP) | — | — | — | 2 | — | 250 | |||||||||||||||||||
Other | OA / (AP) | — | (6 | ) | 15 | — | (4 | ) | 10 | |||||||||||||||||
$ | — | $ | (10 | ) | $ | 1,212 | $ | 2 | $ | (25 | ) | $ | 1,644 | |||||||||||||
GLB(3) | (AP) / (FPB) | $ | — | $ | (888 | ) | $ | 1,155 | $ | — | $ | (663 | ) | $ | 675 |
(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 c) 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. |
Remaining contractual maturity | |||||
December 31, 2015 | Overnight and Continuous | ||||
(in millions of U.S. dollars) | |||||
Collateral held under securities lending agreements: | |||||
Cash | $ | 424 | |||
U.S. Treasury and agency | 67 | ||||
Foreign | 296 | ||||
Corporate securities | 2 | ||||
Equity securities | 257 | ||||
$ | 1,046 | ||||
Gross amount of recognized liability for securities lending payable | $ | 1,047 | |||
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. |
Remaining contractual maturity | ||||||||||||||||
December 31, 2015 | Up to 30 Days | 30 - 90 Days | Greater than 90 Days | Total | ||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||
Collateral pledged under repurchase agreements: | ||||||||||||||||
Cash | $ | 34 | $ | — | $ | — | $ | 34 | ||||||||
U.S. Treasury and agency | 6 | — | 231 | 237 | ||||||||||||
Mortgage-backed securities | 365 | 480 | 343 | 1,188 | ||||||||||||
$ | 405 | $ | 480 | $ | 574 | $ | 1,459 | |||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,404 | ||||||||||||||
Difference (1) | $ | 55 |
(1) | Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. |
Years Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Investment and embedded derivative instruments | |||||||||||
Foreign currency forward contracts | $ | 31 | $ | 29 | $ | 11 | |||||
All other futures contracts and options | 9 | (118 | ) | 61 | |||||||
Convertible securities(1) | (8 | ) | (18 | ) | 6 | ||||||
Total investment and embedded derivative instruments | $ | 32 | $ | (107 | ) | $ | 78 | ||||
GLB and other derivative instruments | |||||||||||
GLB(2) | $ | (203 | ) | $ | (217 | ) | $ | 878 | |||
Futures contracts on equities(3) | (8 | ) | (164 | ) | (555 | ) | |||||
Options on equity market indices(3) | (2 | ) | (4 | ) | (24 | ) | |||||
Other | (12 | ) | 50 | (2 | ) | ||||||
Total GLB and other derivative instruments | $ | (225 | ) | $ | (335 | ) | $ | 297 | |||
$ | (193 | ) | $ | (442 | ) | $ | 375 |
(1) | Includes embedded derivatives. |
(2) | Excludes foreign exchange gains (losses) related to GLB. |
(3) | Related to GMDB and GLB blocks of business. |
For the year ending December 31 | |||
(in millions of U.S. dollars) | |||
2016 | $ | 111 | |
2017 | 93 | ||
2018 | 72 | ||
2019 | 54 | ||
2020 | 43 | ||
Thereafter | 86 | ||
Total minimum future lease commitments | $ | 459 |
|
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Fair value of plan assets | $ | 573 | $ | 588 | |||
Projected benefit obligation | 569 | 594 | |||||
Funded status, end of year | $ | 4 | $ | (6 | ) |
For the year ending December 31 | |||
(in millions of U.S. dollars) | |||
2016 | $ | 20 | |
2017 | 20 | ||
2018 | 23 | ||
2019 | 24 | ||
2020 | 24 | ||
2021–2025 | 126 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Equity in net (income) loss of partially-owned entities | $ | (113 | ) | $ | (231 | ) | $ | (119 | ) | ||
(Gains) losses from fair value changes in separate account assets | 19 | (2 | ) | (16 | ) | ||||||
Federal excise and capital taxes | 19 | 20 | 24 | ||||||||
Acquisition-related costs (1) | 9 | 15 | 4 | ||||||||
Other | 15 | 8 | 27 | ||||||||
Other (income) expense | $ | (51 | ) | $ | (190 | ) | $ | (80 | ) |
|
|
For the Year Ended December 31, 2015 (in millions of U.S. dollars) | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – Overseas General | Global Reinsurance | Life | Corporate | Chubb Consolidated | ||||||||||||||||||||
Net premiums written | $ | 6,907 | $ | 1,346 | $ | 6,634 | $ | 828 | $ | 1,998 | $ | — | $ | 17,713 | |||||||||||||
Net premiums earned | 6,582 | 1,364 | 6,471 | 849 | 1,947 | — | 17,213 | ||||||||||||||||||||
Losses and loss expenses | 4,450 | 1,088 | 3,052 | 290 | 601 | 3 | 9,484 | ||||||||||||||||||||
Policy benefits | — | — | — | — | 543 | — | 543 | ||||||||||||||||||||
Policy acquisition costs | 600 | 69 | 1,581 | 214 | 476 | 1 | 2,941 | ||||||||||||||||||||
Administrative expenses | 748 | 1 | 997 | 49 | 291 | 184 | 2,270 | ||||||||||||||||||||
Underwriting income (loss) | 784 | 206 | 841 | 296 | 36 | (188 | ) | 1,975 | |||||||||||||||||||
Net investment income | 1,056 | 23 | 534 | 300 | 265 | 16 | 2,194 | ||||||||||||||||||||
Net realized gains (losses) including OTTI | (108 | ) | (8 | ) | (38 | ) | (32 | ) | (229 | ) | (5 | ) | (420 | ) | |||||||||||||
Interest expense | 2 | — | 8 | 5 | 5 | 280 | 300 | ||||||||||||||||||||
Other (income) expense: | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | 19 | — | 19 | ||||||||||||||||||||
Other | (29 | ) | 1 | (16 | ) | (6 | ) | (39 | ) | 19 | (70 | ) | |||||||||||||||
Amortization of intangible assets | 78 | 30 | 61 | — | 2 | — | 171 | ||||||||||||||||||||
Chubb integration expenses | — | — | — | — | — | 33 | 33 | ||||||||||||||||||||
Income tax expense (benefit) | 316 | 40 | 232 | 26 | 30 | (182 | ) | 462 | |||||||||||||||||||
Net income (loss) | $ | 1,365 | $ | 150 | $ | 1,052 | $ | 539 | $ | 55 | $ | (327 | ) | $ | 2,834 |
For the Year Ended December 31, 2014 (in millions of U.S. dollars) | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – Overseas General | Global Reinsurance | Life | Corporate | Chubb Consolidated | ||||||||||||||||||||
Net premiums written | $ | 6,263 | $ | 1,590 | $ | 6,999 | $ | 935 | $ | 2,012 | $ | — | $ | 17,799 | |||||||||||||
Net premiums earned | 6,107 | 1,526 | 6,805 | 1,026 | 1,962 | — | 17,426 | ||||||||||||||||||||
Losses and loss expenses | 4,086 | 1,351 | 3,189 | 431 | 589 | 3 | 9,649 | ||||||||||||||||||||
Policy benefits | — | — | — | — | 517 | — | 517 | ||||||||||||||||||||
Policy acquisition costs | 634 | 81 | 1,625 | 257 | 478 | — | 3,075 | ||||||||||||||||||||
Administrative expenses | 678 | 9 | 1,026 | 54 | 285 | 193 | 2,245 | ||||||||||||||||||||
Underwriting income (loss) | 709 | 85 | 965 | 284 | 93 | (196 | ) | 1,940 | |||||||||||||||||||
Net investment income | 1,085 | 26 | 545 | 316 | 268 | 12 | 2,252 | ||||||||||||||||||||
Net realized gains (losses) including OTTI | (67 | ) | 54 | (78 | ) | (29 | ) | (383 | ) | (4 | ) | (507 | ) | ||||||||||||||
Interest expense | 9 | — | 6 | 4 | 11 | 250 | 280 | ||||||||||||||||||||
Other (income) expense: | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||
Other | (101 | ) | 2 | (63 | ) | (54 | ) | (1 | ) | 29 | (188 | ) | |||||||||||||||
Amortization of intangible assets | — | 31 | 74 | — | 3 | — | 108 | ||||||||||||||||||||
Income tax expense (benefit) | 306 | 33 | 378 | 38 | 46 | (167 | ) | 634 | |||||||||||||||||||
Net income (loss) | $ | 1,513 | $ | 99 | $ | 1,037 | $ | 583 | $ | (79 | ) | $ | (300 | ) | $ | 2,853 |
For the Year Ended December 31, 2013 (in millions of U.S. dollars) | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – Overseas General | Global Reinsurance | Life | Corporate | Chubb Consolidated | ||||||||||||||||||||
Net premiums written | $ | 5,915 | $ | 1,627 | $ | 6,520 | $ | 991 | $ | 1,972 | $ | — | $ | 17,025 | |||||||||||||
Net premiums earned | 5,721 | 1,678 | 6,333 | 976 | 1,905 | — | 16,613 | ||||||||||||||||||||
Losses and loss expenses | 3,776 | 1,524 | 3,062 | 396 | 582 | 8 | 9,348 | ||||||||||||||||||||
Policy benefits | — | — | — | — | 515 | — | 515 | ||||||||||||||||||||
Policy acquisition costs | 597 | 53 | 1,453 | 197 | 358 | 1 | 2,659 | ||||||||||||||||||||
Administrative expenses | 601 | 11 | 1,008 | 50 | 343 | 198 | 2,211 | ||||||||||||||||||||
Underwriting income (loss) | 747 | 90 | 810 | 333 | 107 | (207 | ) | 1,880 | |||||||||||||||||||
Net investment income | 1,021 | 26 | 539 | 280 | 251 | 27 | 2,144 | ||||||||||||||||||||
Net realized gains (losses) including OTTI | 72 | 1 | 18 | 53 | 360 | — | 504 | ||||||||||||||||||||
Interest expense | 5 | 1 | 5 | 5 | 15 | 244 | 275 | ||||||||||||||||||||
Other (income) expense: | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | (16 | ) | — | (16 | ) | ||||||||||||||||||
Other | (58 | ) | — | (21 | ) | (19 | ) | 10 | 24 | (64 | ) | ||||||||||||||||
Amortization of intangible assets | — | 32 | 60 | — | 3 | — | 95 | ||||||||||||||||||||
Income tax expense (benefit) | 347 | 20 | 222 | 36 | 34 | (179) | 480 | ||||||||||||||||||||
Net income (loss) | $ | 1,546 | $ | 64 | $ | 1,101 | $ | 644 | $ | 672 | $ | (269 | ) | $ | 3,758 |
(in millions of U.S. dollars) | Property & All Other | Casualty | Life, Accident & Health | Chubb Consolidated | |||||||||||
For the Year Ended December 31, 2015 | |||||||||||||||
Insurance – North American P&C | $ | 1,931 | $ | 4,232 | $ | 419 | $ | 6,582 | |||||||
Insurance – North American Agriculture | 1,364 | — | — | 1,364 | |||||||||||
Insurance – Overseas General | 2,868 | 1,537 | 2,066 | 6,471 | |||||||||||
Global Reinsurance | 423 | 426 | — | 849 | |||||||||||
Life | — | — | 1,947 | 1,947 | |||||||||||
$ | 6,586 | $ | 6,195 | $ | 4,432 | $ | 17,213 | ||||||||
For the Year Ended December 31, 2014 | |||||||||||||||
Insurance – North American P&C | $ | 1,662 | $ | 4,032 | $ | 413 | $ | 6,107 | |||||||
Insurance – North American Agriculture | 1,526 | — | — | 1,526 | |||||||||||
Insurance – Overseas General | 2,948 | 1,573 | 2,284 | 6,805 | |||||||||||
Global Reinsurance | 551 | 475 | — | 1,026 | |||||||||||
Life | — | — | 1,962 | 1,962 | |||||||||||
$ | 6,687 | $ | 6,080 | $ | 4,659 | $ | 17,426 | ||||||||
For the Year Ended December 31, 2013 | |||||||||||||||
Insurance – North American P&C | $ | 1,489 | $ | 3,847 | $ | 385 | $ | 5,721 | |||||||
Insurance – North American Agriculture | 1,678 | — | — | 1,678 | |||||||||||
Insurance – Overseas General | 2,672 | 1,479 | 2,182 | 6,333 | |||||||||||
Global Reinsurance | 543 | 433 | — | 976 | |||||||||||
Life | — | — | 1,905 | 1,905 | |||||||||||
$ | 6,382 | $ | 5,759 | $ | 4,472 | $ | 16,613 |
North America | Asia Pacific/Far East | Latin America | ||||||||||
Years Ended December 31 | Europe(1) | |||||||||||
2015 | 60 | % | 15 | % | 15 | % | 10 | % | ||||
2014 | 58 | % | 16 | % | 16 | % | 10 | % | ||||
2013 | 58 | % | 17 | % | 16 | % | 9 | % |
|
|
December 31 | |||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Statutory capital and surplus | |||||||
Property and casualty | $ | 20,072 | $ | 25,805 | |||
Life | $ | 1,216 | $ | 1,463 |
Year Ended December 31 | |||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||
Statutory net income (loss) | |||||||||
Property and casualty | $ | 2,770 | $ | 3,378 | $ | 3,333 | |||
Life | $ | (148 | ) | $ | (248 | ) | $ | 409 |
|
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | ACE 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 | 517 | 14,434 | (3,593 | ) | 11,366 | |||||||||||||
Total assets | $ | 30,293 | $ | 28,544 | $ | 108,967 | $ | (65,438 | ) | $ | 102,366 | ||||||||
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 | — | 9,436 | 11 | — | 9,447 | ||||||||||||||
Trust preferred securities | — | 309 | — | — | 309 | ||||||||||||||
Other liabilities | 276 | 1,422 | 12,916 | (3,092 | ) | 11,522 | |||||||||||||
Total liabilities | 1,158 | 11,256 | 78,257 | (17,440 | ) | 73,231 | |||||||||||||
Total shareholders’ equity | 29,135 | 17,288 | 30,710 | (47,998 | ) | 29,135 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 30,293 | $ | 28,544 | $ | 108,967 | $ | (65,438 | ) | $ | 102,366 |
(1) | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | ACE INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Investments | $ | 30 | $ | 225 | $ | 62,649 | $ | — | $ | 62,904 | |||||||||
Cash(1) | — | 1 | 1,209 | (555 | ) | 655 | |||||||||||||
Insurance and reinsurance balances receivable | — | — | 6,178 | (752 | ) | 5,426 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 20,992 | (9,000 | ) | 11,992 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,194 | (977 | ) | 217 | |||||||||||||
Value of business acquired | — | — | 466 | — | 466 | ||||||||||||||
Goodwill and other intangible assets | — | — | 5,724 | — | 5,724 | ||||||||||||||
Investments in subsidiaries | 29,497 | 18,762 | — | (48,259 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 583 | — | — | (583 | ) | — | |||||||||||||
Other assets | 4 | 295 | 14,196 | (3,631 | ) | 10,864 | |||||||||||||
Total assets | $ | 30,114 | $ | 19,283 | $ | 112,608 | $ | (63,757 | ) | $ | 98,248 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 46,770 | $ | (8,455 | ) | $ | 38,315 | ||||||||
Unearned premiums | — | — | 9,958 | (1,736 | ) | 8,222 | |||||||||||||
Future policy benefits | — | — | 5,731 | (977 | ) | 4,754 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 422 | 161 | (583 | ) | — | |||||||||||||
Affiliated notional cash pooling programs(1) | 246 | 309 | — | (555 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,402 | — | 1,402 | ||||||||||||||
Short-term debt | — | 1,150 | — | — | 1,150 | ||||||||||||||
Long-term debt | — | 3,345 | 12 | — | 3,357 | ||||||||||||||
Trust preferred securities | — | 309 | — | — | 309 | ||||||||||||||
Other liabilities | 281 | 1,404 | 12,659 | (3,192 | ) | 11,152 | |||||||||||||
Total liabilities | 527 | 6,939 | 76,693 | (15,498 | ) | 68,661 | |||||||||||||
Total shareholders’ equity | 29,587 | 12,344 | 35,915 | (48,259 | ) | 29,587 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 30,114 | $ | 19,283 | $ | 112,608 | $ | (63,757 | ) | $ | 98,248 |
(1) | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2015 | Chubb Limited (Parent Guarantor) | ACE 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 | $ | — | $ | — | $ | 17,713 | $ | — | $ | 17,713 | |||||||||
Net premiums earned | — | — | 17,213 | — | 17,213 | ||||||||||||||
Net investment income | 3 | 4 | 2,187 | — | 2,194 | ||||||||||||||
Equity in earnings of subsidiaries | 2,673 | 1,038 | — | (3,711 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | (9 | ) | (411 | ) | — | (420 | ) | |||||||||||
Losses and loss expenses | — | — | 9,484 | — | 9,484 | ||||||||||||||
Policy benefits | — | — | 543 | — | 543 | ||||||||||||||
Policy acquisition costs and administrative expenses | 63 | 28 | 5,120 | — | 5,211 | ||||||||||||||
Interest (income) expense | (32 | ) | 302 | 30 | — | 300 | |||||||||||||
Other (income) expense | (208 | ) | (4 | ) | 161 | — | (51 | ) | |||||||||||
Amortization of intangible assets | — | — | 171 | — | 171 | ||||||||||||||
Chubb integration expenses | 3 | 29 | 1 | — | 33 | ||||||||||||||
Income tax expense (benefit) | 16 | (349 | ) | 795 | — | 462 | |||||||||||||
Net income | $ | 2,834 | $ | 1,027 | $ | 2,684 | $ | (3,711 | ) | $ | 2,834 | ||||||||
Comprehensive income (loss) | $ | 908 | $ | (192 | ) | $ | 757 | $ | (565 | ) | $ | 908 |
For the Year Ended December 31, 2014 | Chubb Limited (Parent Guarantor) | ACE 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 | $ | — | $ | — | $ | 17,799 | $ | — | $ | 17,799 | |||||||||
Net premiums earned | — | — | 17,426 | — | 17,426 | ||||||||||||||
Net investment income | 2 | 2 | 2,248 | — | 2,252 | ||||||||||||||
Equity in earnings of subsidiaries | 2,707 | 791 | — | (3,498 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | 53 | (560 | ) | — | (507 | ) | ||||||||||||
Losses and loss expenses | — | — | 9,649 | — | 9,649 | ||||||||||||||
Policy benefits | — | — | 517 | — | 517 | ||||||||||||||
Policy acquisition costs and administrative expenses | 78 | 26 | 5,216 | — | 5,320 | ||||||||||||||
Interest (income) expense | (35 | ) | 277 | 38 | — | 280 | |||||||||||||
Other (income) expense | (201 | ) | 27 | (16 | ) | — | (190 | ) | |||||||||||
Amortization of intangible assets | — | — | 108 | — | 108 | ||||||||||||||
Income tax expense (benefit) | 14 | (94 | ) | 714 | — | 634 | |||||||||||||
Net income | $ | 2,853 | $ | 610 | $ | 2,888 | $ | (3,498 | ) | $ | 2,853 | ||||||||
Comprehensive income | $ | 2,892 | $ | 583 | $ | 2,926 | $ | (3,509 | ) | $ | 2,892 |
For the Year Ended December 31, 2013 | Chubb Limited (Parent Guarantor) | ACE 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 | $ | — | $ | — | $ | 17,025 | $ | — | $ | 17,025 | |||||||||
Net premiums earned | — | — | 16,613 | — | 16,613 | ||||||||||||||
Net investment income | 2 | 3 | 2,139 | — | 2,144 | ||||||||||||||
Equity in earnings of subsidiaries | 3,580 | 942 | — | (4,522 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | (2 | ) | 506 | — | 504 | |||||||||||||
Losses and loss expenses | — | — | 9,348 | — | 9,348 | ||||||||||||||
Policy benefits | — | — | 515 | — | 515 | ||||||||||||||
Policy acquisition costs and administrative expenses | 60 | 19 | 4,791 | — | 4,870 | ||||||||||||||
Interest (income) expense | (32 | ) | 270 | 37 | — | 275 | |||||||||||||
Other (income) expense | (221 | ) | 27 | 114 | — | (80 | ) | ||||||||||||
Amortization of intangible assets | — | — | 95 | — | 95 | ||||||||||||||
Income tax expense (benefit) | 17 | (108 | ) | 571 | — | 480 | |||||||||||||
Net income | $ | 3,758 | $ | 735 | $ | 3,787 | $ | (4,522 | ) | $ | 3,758 | ||||||||
Comprehensive income (loss) | $ | 2,023 | $ | (230 | ) | $ | 2,051 | $ | (1,821 | ) | $ | 2,023 |
For the Year Ended December 31, 2015 | Chubb Limited (Parent Guarantor) | ACE 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 | $ | 3,125 | $ | 682 | $ | 3,836 | $ | (3,779 | ) | $ | 3,864 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (16,053 | ) | (18 | ) | (16,071 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (62 | ) | — | (62 | ) | ||||||||||||
Purchases of equity securities | — | — | (158 | ) | — | (158 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 10,814 | — | 10,814 | ||||||||||||||
Sales of equity securities | — | — | 183 | — | 183 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,567 | — | 6,567 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 669 | — | 669 | ||||||||||||||
Net change in short-term investments | — | (7,588 | ) | (628 | ) | — | (8,216 | ) | |||||||||||
Net derivative instruments settlements | — | (9 | ) | (12 | ) | — | (21 | ) | |||||||||||
Acquisition of subsidiaries (net of cash acquired of $629) | — | — | 264 | — | 264 | ||||||||||||||
Capital contribution | (2,670 | ) | (625 | ) | (2,791 | ) | 6,086 | — | |||||||||||
Other | — | (25 | ) | (256 | ) | 18 | (263 | ) | |||||||||||
Net cash flows used for investing activities | (2,670 | ) | (8,247 | ) | (1,463 | ) | 6,086 | (6,294 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (862 | ) | — | — | — | (862 | ) | ||||||||||||
Common Shares repurchased | — | — | (758 | ) | — | (758 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 6,090 | — | — | 6,090 | ||||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,029 | — | 2,029 | ||||||||||||||
Repayment of long-term debt | — | (1,150 | ) | — | — | (1,150 | ) | ||||||||||||
Repayment of repurchase agreements | — | — | (2,027 | ) | — | (2,027 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 131 | — | 131 | ||||||||||||||
Advances (to) from affiliates | (228 | ) | 95 | 133 | — | — | |||||||||||||
Dividends to parent company | — | — | (3,779 | ) | 3,779 | — | |||||||||||||
Capital contribution | — | 2,791 | 3,295 | (6,086 | ) | — | |||||||||||||
Net proceeds from affiliated notional cash pooling programs(1) | 636 | (220 | ) | — | (416 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 503 | — | 503 | ||||||||||||||
Policyholder contract withdrawals | — | — | (221 | ) | — | (221 | ) | ||||||||||||
Other | — | (40 | ) | — | — | (40 | ) | ||||||||||||
Net cash flows (used for) from financing activities | (454 | ) | 7,566 | (694 | ) | (2,723 | ) | 3,695 | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (145 | ) | — | (145 | ) | ||||||||||||
Net (decrease) increase in cash | 1 | 1 | 1,534 | (416 | ) | 1,120 | |||||||||||||
Cash – beginning of year(1) | — | 1 | 1,209 | (555 | ) | 655 | |||||||||||||
Cash – end of year(1) | $ | 1 | $ | 2 | $ | 2,743 | $ | (971 | ) | $ | 1,775 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015 and 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2014 | Chubb Limited (Parent Guarantor) | ACE INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 541 | $ | 210 | $ | 4,419 | $ | (674 | ) | $ | 4,496 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (15,816 | ) | 263 | (15,553 | ) | ||||||||||||
Purchases of fixed maturities held to maturity | — | — | (267 | ) | — | (267 | ) | ||||||||||||
Purchases of equity securities | — | — | (251 | ) | — | (251 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 7,750 | (268 | ) | 7,482 | |||||||||||||
Sales of equity securities | — | — | 670 | — | 670 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,413 | — | 6,413 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 875 | — | 875 | ||||||||||||||
Net change in short-term investments | — | (216 | ) | (392 | ) | 5 | (603 | ) | |||||||||||
Net derivative instruments settlements | — | 53 | (283 | ) | — | (230 | ) | ||||||||||||
Acquisition of subsidiaries (net of cash acquired of $20) | — | — | (766 | ) | — | (766 | ) | ||||||||||||
Capital contribution | — | (258 | ) | — | 258 | — | |||||||||||||
Other | — | (8 | ) | (266 | ) | — | (274 | ) | |||||||||||
Net cash flows used for investing activities | — | (429 | ) | (2,333 | ) | 258 | (2,504 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (862 | ) | — | — | — | (862 | ) | ||||||||||||
Common Shares repurchased | — | — | (1,429 | ) | — | (1,429 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 699 | — | — | 699 | ||||||||||||||
Proceeds from the issuance of repurchase agreements | — | — | 1,978 | — | 1,978 | ||||||||||||||
Repayment of long-term debt | — | (500 | ) | (1 | ) | — | (501 | ) | |||||||||||
Repayment of repurchase agreements | — | — | (1,977 | ) | — | (1,977 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 127 | — | 127 | ||||||||||||||
Advances (to) from affiliates | 260 | (298 | ) | 38 | — | — | |||||||||||||
Dividends to parent company | — | — | (674 | ) | 674 | — | |||||||||||||
Capital contribution | — | — | 258 | (258 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | 61 | 309 | — | (370 | ) | — | |||||||||||||
Policyholder contract deposits | — | — | 366 | — | 366 | ||||||||||||||
Policyholder contract withdrawals | — | — | (172 | ) | — | (172 | ) | ||||||||||||
Other | — | (6 | ) | — | — | (6 | ) | ||||||||||||
Net cash flows (used for) from financing activities | (541 | ) | 204 | (1,486 | ) | 46 | (1,777 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (139 | ) | — | (139 | ) | ||||||||||||
Net (decrease) increase in cash | — | (15 | ) | 461 | (370 | ) | 76 | ||||||||||||
Cash – beginning of year(1) | — | 16 | 748 | (185 | ) | 579 | |||||||||||||
Cash – end of year(1) | $ | — | $ | 1 | $ | 1,209 | $ | (555 | ) | $ | 655 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014 and 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2013 | Chubb Limited (Parent Guarantor) | ACE INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 970 | $ | (107 | ) | $ | 3,984 | $ | (825 | ) | $ | 4,022 | |||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (21,504 | ) | 106 | (21,398 | ) | ||||||||||||
Purchases of fixed maturities held to maturity | — | — | (447 | ) | — | (447 | ) | ||||||||||||
Purchases of equity securities | — | — | (264 | ) | — | (264 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 10,519 | (106 | ) | 10,413 | |||||||||||||
Sales of equity securities | — | — | 142 | — | 142 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,941 | — | 6,941 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 1,488 | — | 1,488 | ||||||||||||||
Net change in short-term investments | (1 | ) | 4 | 521 | — | 524 | |||||||||||||
Net derivative instruments settlements | — | (1 | ) | (470 | ) | — | (471 | ) | |||||||||||
Capital contribution | (133 | ) | (1,097 | ) | — | 1,230 | — | ||||||||||||
Acquisition of subsidiaries (net of cash acquired of $38) | — | — | (977 | ) | — | (977 | ) | ||||||||||||
Other | — | (4 | ) | (389 | ) | — | (393 | ) | |||||||||||
Net cash flows used for investing activities | (134 | ) | (1,098 | ) | (4,440 | ) | 1,230 | (4,442 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (517 | ) | — | — | — | (517 | ) | ||||||||||||
Common Shares repurchased | — | — | (287 | ) | — | (287 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 947 | — | 947 | |||||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,572 | — | 2,572 | ||||||||||||||
Repayment of repurchase agreements | — | — | (2,572 | ) | — | (2,572 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | 14 | — | 121 | — | 135 | ||||||||||||||
Advances from (to) affiliates | (621 | ) | 621 | — | — | — | |||||||||||||
Dividends to parent company | — | — | (825 | ) | 825 | — | |||||||||||||
Capital contribution | — | — | 1,230 | (1,230 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | 185 | (349 | ) | — | 164 | — | |||||||||||||
Policyholder contract deposits | — | — | 233 | — | 233 | ||||||||||||||
Policyholder contract withdrawals | — | — | (120 | ) | — | (120 | ) | ||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Net cash flows (used for) from financing activities | (939 | ) | 1,219 | 352 | (241 | ) | 391 | ||||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (7 | ) | — | (7 | ) | ||||||||||||
Net increase (decrease) in cash | (103 | ) | 14 | (111 | ) | 164 | (36 | ) | |||||||||||
Cash – beginning of year(1) | 103 | 2 | 859 | (349 | ) | 615 | |||||||||||||
Cash – end of year(1) | $ | — | $ | 16 | $ | 748 | $ | (185 | ) | $ | 579 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2013 and 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
|
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(in millions of U.S. dollars, except per share data) | 2015 | 2015 | 2015 | 2015 | |||||||||||
Net premiums earned | $ | 3,927 | $ | 4,360 | $ | 4,719 | $ | 4,207 | |||||||
Net investment income | 551 | 562 | 549 | 532 | |||||||||||
Net realized gains (losses) including OTTI | (89 | ) | 126 | (397 | ) | (60 | ) | ||||||||
Total revenues | $ | 4,389 | $ | 5,048 | $ | 4,871 | $ | 4,679 | |||||||
Losses and loss expenses | $ | 2,122 | $ | 2,417 | $ | 2,643 | $ | 2,302 | |||||||
Policy benefits | $ | 142 | $ | 153 | $ | 89 | $ | 159 | |||||||
Net income | $ | 681 | $ | 942 | $ | 528 | $ | 683 | |||||||
Basic earnings per share | $ | 2.08 | $ | 2.89 | $ | 1.63 | $ | 2.10 | |||||||
Diluted earnings per share | $ | 2.05 | $ | 2.86 | $ | 1.62 | $ | 2.08 |
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(in millions of U.S. dollars, except per share data) | 2014 | 2014 | 2014 | 2014 | |||||||||||
Net premiums earned | $ | 3,970 | $ | 4,332 | $ | 4,754 | $ | 4,370 | |||||||
Net investment income | 553 | 556 | 566 | 577 | |||||||||||
Net realized gains (losses) including OTTI | (104 | ) | (73 | ) | (120 | ) | (210 | ) | |||||||
Total revenues | $ | 4,419 | $ | 4,815 | $ | 5,200 | $ | 4,737 | |||||||
Losses and loss expenses | $ | 2,161 | $ | 2,388 | $ | 2,684 | $ | 2,416 | |||||||
Policy benefits | $ | 114 | $ | 144 | $ | 125 | $ | 134 | |||||||
Net income (1) | $ | 734 | $ | 779 | $ | 785 | $ | 555 | |||||||
Basic earnings per share | $ | 2.16 | $ | 2.30 | $ | 2.35 | $ | 1.68 | |||||||
Diluted earnings per share | $ | 2.14 | $ | 2.28 | $ | 2.32 | $ | 1.66 |
|
December 31, 2015 (in millions of U.S. dollars) | Cost or Amortized Cost | Fair Value | Amount at Which Shown in the Balance Sheet | ||||||||
Fixed maturities available for sale | |||||||||||
U.S. Treasury and agency | $ | 2,481 | $ | 2,528 | $ | 2,528 | |||||
Foreign | 13,190 | 13,445 | 13,445 | ||||||||
Corporate securities | 15,028 | 14,929 | 14,929 | ||||||||
Mortgage-backed securities | 9,827 | 9,958 | 9,958 | ||||||||
States, municipalities, and political subdivisions | 2,623 | 2,727 | 2,727 | ||||||||
Total fixed maturities available for sale | 43,149 | 43,587 | 43,587 | ||||||||
Fixed maturities held to maturity | |||||||||||
U.S. Treasury and agency | 733 | 745 | 733 | ||||||||
Foreign | 763 | 785 | 763 | ||||||||
Corporate securities | 3,054 | 3,056 | 3,054 | ||||||||
Mortgage-backed securities | 1,707 | 1,743 | 1,707 | ||||||||
States, municipalities, and political subdivisions | 2,173 | 2,223 | 2,173 | ||||||||
Total fixed maturities held to maturity | 8,430 | 8,552 | 8,430 | ||||||||
Equity securities | |||||||||||
Industrial, miscellaneous, and all other | 441 | 497 | 497 | ||||||||
Short-term investments | 10,446 | 10,446 | 10,446 | ||||||||
Other investments | 2,993 | 3,291 | 3,291 | ||||||||
Total investments - other than investments in related parties | $ | 65,459 | $ | 66,373 | $ | 66,251 |
|
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Assets | |||||||
Investments in subsidiaries and affiliates on equity basis | $ | 29,612 | $ | 29,497 | |||
Short-term investments | 1 | 1 | |||||
Other investments, at cost | 27 | 29 | |||||
Total investments | 29,640 | 29,527 | |||||
Cash | 1 | — | |||||
Due from subsidiaries and affiliates, net | 644 | 583 | |||||
Other assets | 8 | 4 | |||||
Total assets | $ | 30,293 | $ | 30,114 | |||
Liabilities | |||||||
Affiliated notional cash pooling programs(1) | $ | 882 | $ | 246 | |||
Accounts payable, accrued expenses, and other liabilities | 276 | 281 | |||||
Total liabilities | 1,158 | 527 | |||||
Shareholders' equity | |||||||
Common Shares | 7,833 | 8,055 | |||||
Common Shares in treasury | (1,922 | ) | (1,448 | ) | |||
Additional paid-in capital | 4,481 | 5,145 | |||||
Retained earnings | 19,478 | 16,644 | |||||
Accumulated other comprehensive income (loss) | (735 | ) | 1,191 | ||||
Total shareholders' equity | 29,135 | 29,587 | |||||
Total liabilities and shareholders' equity | $ | 30,293 | $ | 30,114 | |||
(1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. | |||||||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto. |
Years Ended December 31 | |||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||
Revenues | |||||||||
Investment income, including interest income | $ | 35 | $ | 37 | $ | 34 | |||
Equity in net income of subsidiaries and affiliates | 2,673 | 2,707 | 3,580 | ||||||
Net realized gains (losses) | — | — | — | ||||||
2,708 | 2,744 | 3,614 | |||||||
Expenses | |||||||||
Administrative and other (income) expense | (142 | ) | (123 | ) | (161 | ) | |||
Income tax expense | 16 | 14 | 17 | ||||||
(126 | ) | (109 | ) | (144 | ) | ||||
Net income | $ | 2,834 | $ | 2,853 | $ | 3,758 | |||
Comprehensive income | $ | 908 | $ | 2,892 | $ | 2,023 | |||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto. |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Net cash flows from operating activities(1) | $ | 3,125 | $ | 541 | $ | 970 | |||||
Cash flows from investing activities | |||||||||||
Net change in short-term investments | — | — | (1 | ) | |||||||
Net derivative instruments settlements | — | — | — | ||||||||
Capital contribution | (2,670 | ) | — | (133 | ) | ||||||
Net cash flows used for investing activities | (2,670 | ) | — | (134 | ) | ||||||
Cash flows from financing activities | |||||||||||
Dividends paid on Common Shares | (862 | ) | (862 | ) | (517 | ) | |||||
Proceeds from issuance of short-term debt | — | — | — | ||||||||
Repayment of short-term debt | — | — | — | ||||||||
Proceeds from share-based compensation plans | — | — | 14 | ||||||||
Advances (to) from affiliates | (228 | ) | 260 | (621 | ) | ||||||
Net proceeds from affiliated notional cash pooling programs(2) | 636 | 61 | 185 | ||||||||
Net cash flows used for financing activities | (454 | ) | (541 | ) | (939 | ) | |||||
Net decrease in cash | 1 | — | (103 | ) | |||||||
Cash – beginning of year | — | — | 103 | ||||||||
Cash – end of year | $ | 1 | $ | — | $ | — | |||||
(1) Includes cash dividends received from subsidiaries of $2.9 billion, $300 million, and $825 million in 2015, 2014, and 2013, respectively. | |||||||||||
(2) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. | |||||||||||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto. |
|
Premiums Earned | |||||||||||||||||||
For the years ended December 31, 2015, 2014, and 2013 (in millions of U.S. dollars, except for percentages) | Direct Amount | Ceded To Other Companies | Assumed From Other Companies | Net Amount | Percentage of Amount Assumed to Net | ||||||||||||||
2015 | |||||||||||||||||||
Property and Casualty | $ | 14,895 | $ | 5,373 | $ | 3,259 | $ | 12,781 | 25 | % | |||||||||
Accident and Health | 3,684 | 351 | 168 | 3,501 | 5 | % | |||||||||||||
Life | 776 | 94 | 249 | 931 | 27 | % | |||||||||||||
Total | $ | 19,355 | $ | 5,818 | $ | 3,676 | $ | 17,213 | 21 | % | |||||||||
2014 | |||||||||||||||||||
Property and Casualty | $ | 14,784 | $ | 4,940 | $ | 2,923 | $ | 12,767 | 23 | % | |||||||||
Accident and Health | 3,971 | 434 | 141 | 3,678 | 4 | % | |||||||||||||
Life | 800 | 91 | 272 | 981 | 28 | % | |||||||||||||
Total | $ | 19,555 | $ | 5,465 | $ | 3,336 | $ | 17,426 | 19 | % | |||||||||
2013 | |||||||||||||||||||
Property and Casualty | $ | 14,286 | $ | 5,160 | $ | 3,015 | $ | 12,141 | 25 | % | |||||||||
Accident and Health | 3,885 | 486 | 168 | 3,567 | 5 | % | |||||||||||||
Life | 685 | 76 | 296 | 905 | 33 | % | |||||||||||||
Total | $ | 18,856 | $ | 5,722 | $ | 3,479 | $ | 16,613 | 21 | % |
|
As of and for the years ended December 31, 2015, 2014, and 2013 (in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | Net Reserves for Unpaid Losses and Loss Expenses | Unearned Premiums | Net Premiums Earned | Net Investment Income | Net Losses and Loss Expenses Incurred Related to | Amortization of Deferred Policy Acquisition Costs | Net Paid Losses and Loss Expenses | Net Premiums Written | |||||||||||||||||||||||||||||||||
Current Year | Prior Year | ||||||||||||||||||||||||||||||||||||||||
2015 | $ | 2,219 | $ | 26,562 | $ | 8,439 | $ | 16,282 | $ | 2,007 | $ | 10,030 | $ | (546 | ) | $ | 2,692 | $ | 9,665 | $ | 16,734 | ||||||||||||||||||||
2014 | $ | 2,057 | $ | 27,008 | $ | 8,222 | $ | 16,445 | $ | 2,071 | $ | 10,176 | $ | (527 | ) | $ | 2,805 | $ | 9,235 | $ | 16,787 | ||||||||||||||||||||
2013 | $ | 1,865 | $ | 26,831 | $ | 7,539 | $ | 15,708 | $ | 1,977 | $ | 9,878 | $ | (530 | ) | $ | 2,447 | $ | 8,977 | $ | 16,069 |
|
• | unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves; |
• | future policy benefits reserves; |
• | the valuation of value of business acquired (VOBA) and amortization of deferred policy acquisition costs and VOBA; |
• | reinsurance recoverable, including a provision for uncollectible reinsurance; |
• | the assessment of risk transfer for certain structured insurance and reinsurance contracts; |
• | the valuation of the investment portfolio and assessment of OTTI; |
• | the valuation of deferred tax assets; |
• | the valuation of derivative instruments related to guaranteed living benefits (GLB); and |
• | the assessment of goodwill for impairment. |
• | For reinsurers that maintain a financial strength rating from a major rating agency, and for which recoverable balances are considered representative of the larger population (i.e., default probabilities are consistent with similarly rated reinsurers and payment durations conform to averages), the financial rating is based on a published source and the default factor is based on published default statistics of a major rating agency applicable to the reinsurer's particular rating class. When a recoverable is expected to be paid in a brief period of time by a highly rated reinsurer, such as certain property catastrophe claims, a default factor may not be applied; |
• | For balances recoverable from reinsurers that are both unrated by a major rating agency and for which management is unable to determine a credible rating equivalent based on a parent, affiliate, or peer company, we determine a rating equivalent based on an analysis of the reinsurer that considers an assessment of the creditworthiness of the particular entity, industry benchmarks, or other factors as considered appropriate. We then apply the applicable default factor for that rating class. For balances recoverable from unrated reinsurers for which the ceded reserve is below a certain threshold, we generally apply a default factor of 34 percent, consistent with published statistics of a major rating agency; |
• | For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting provision for uncollectible reinsurance based on reinsurer-specific facts and circumstances. Upon initial notification of an insolvency, we generally recognize an expense for a substantial portion of all balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the provision for uncollectible reinsurance. When regulatory action is taken on a reinsurer, we generally recognize a default factor by estimating an expected recovery on all balances outstanding, net of collateral. When sufficient credible information becomes available, we adjust the provision for uncollectible reinsurance by establishing a default factor pursuant to information received; and |
• | For other recoverables, management determines the provision for uncollectible reinsurance based on the specific facts and circumstances. |
• | Life insurance policies are carried at policy cash surrender value and income is recorded in other income (expense). |
• | Policy loans are carried at outstanding balance and interest income is recorded to net investment income. |
• | Trading securities are recorded on a trade date basis and carried at fair value. Unrealized gains and losses on trading securities are reflected in Other (income) expense. |
• | Other investments over which Chubb can exercise significant influence are accounted for using the equity method and income is recorded in Other (income) expense. |
• | All other investments over which Chubb cannot exercise significant influence are carried at fair value with changes in fair value recognized through OCI. For these investments, investment income is recognized in net investment income and realized gains are recognized as related distributions are received. |
• | Partially-owned investment companies comprise entities in which we hold an ownership interest in excess of three percent. These investments as well as Chubb's investments in investment funds where our ownership interest is in excess of three percent are accounted for under the equity method because Chubb exerts significant influence. These investments apply investment company accounting to determine operating results, and Chubb retains the investment company accounting in applying the equity method. This means that investment income, realized gains or losses, and unrealized gains or losses are included in the portion of equity earnings reflected in Other (income) expense. |
|
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 | $ | — |
December 31, 2014 | 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 | $ | 2,741 | $ | 87 | $ | (8 | ) | $ | 2,820 | $ | — | ||||||||
Foreign | 14,703 | 629 | (90 | ) | 15,242 | — | |||||||||||||
Corporate securities | 16,897 | 704 | (170 | ) | 17,431 | (7 | ) | ||||||||||||
Mortgage-backed securities | 10,011 | 304 | (29 | ) | 10,286 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 3,474 | 147 | (5 | ) | 3,616 | — | |||||||||||||
$ | 47,826 | $ | 1,871 | $ | (302 | ) | $ | 49,395 | $ | (8 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 832 | $ | 20 | $ | (2 | ) | $ | 850 | $ | — | ||||||||
Foreign | 916 | 47 | — | 963 | — | ||||||||||||||
Corporate securities | 2,323 | 102 | (2 | ) | 2,423 | — | |||||||||||||
Mortgage-backed securities | 1,983 | 57 | (1 | ) | 2,039 | — | |||||||||||||
States, municipalities, and political subdivisions | 1,277 | 40 | (3 | ) | 1,314 | — | |||||||||||||
$ | 7,331 | $ | 266 | $ | (8 | ) | $ | 7,589 | $ | — |
December 31 | December 31 | ||||||||||||||
2015 | 2014 | ||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Available for sale | |||||||||||||||
Due in 1 year or less | $ | 1,856 | $ | 1,865 | $ | 2,187 | $ | 2,206 | |||||||
Due after 1 year through 5 years | 14,936 | 15,104 | 15,444 | 15,857 | |||||||||||
Due after 5 years through 10 years | 12,258 | 12,173 | 15,663 | 16,089 | |||||||||||
Due after 10 years | 4,272 | 4,487 | 4,521 | 4,957 | |||||||||||
33,322 | 33,629 | 37,815 | 39,109 | ||||||||||||
Mortgage-backed securities | 9,827 | 9,958 | 10,011 | 10,286 | |||||||||||
$ | 43,149 | $ | 43,587 | $ | 47,826 | $ | 49,395 | ||||||||
Held to maturity | |||||||||||||||
Due in 1 year or less | $ | 492 | $ | 495 | $ | 353 | $ | 355 | |||||||
Due after 1 year through 5 years | 2,443 | 2,517 | 2,603 | 2,693 | |||||||||||
Due after 5 years through 10 years | 2,292 | 2,313 | 1,439 | 1,489 | |||||||||||
Due after 10 years | 1,496 | 1,484 | 953 | 1,013 | |||||||||||
6,723 | 6,809 | 5,348 | 5,550 | ||||||||||||
Mortgage-backed securities | 1,707 | 1,743 | 1,983 | 2,039 | |||||||||||
$ | 8,430 | $ | 8,552 | $ | 7,331 | $ | 7,589 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Cost | $ | 441 | $ | 440 | |||
Gross unrealized appreciation | 74 | 83 | |||||
Gross unrealized depreciation | (18 | ) | (13 | ) | |||
Fair value | $ | 497 | $ | 510 |
Moody's Rating Category | 1-in-100 Year Default Rate | Historical Mean Default Rate | |||
Investment Grade: | |||||
Aaa-Baa | 0.0-1.3% | 0.0-0.3% | |||
Below Investment Grade: | |||||
Ba | 4.9 | % | 1.1 | % | |
B | 12.7 | % | 3.4 | % | |
Caa-C | 50.2 | % | 13.1 | % |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Fixed maturities: | |||||||||||
OTTI on fixed maturities, gross | $ | (142 | ) | $ | (64 | ) | $ | (18 | ) | ||
OTTI on fixed maturities recognized in OCI (pre-tax) | 39 | 7 | — | ||||||||
OTTI on fixed maturities, net | (103 | ) | (57 | ) | (18 | ) | |||||
Gross realized gains excluding OTTI | 158 | 213 | 237 | ||||||||
Gross realized losses excluding OTTI | (235 | ) | (133 | ) | (129 | ) | |||||
Total fixed maturities | (180 | ) | 23 | 90 | |||||||
Equity securities: | |||||||||||
OTTI on equity securities | (7 | ) | (8 | ) | (2 | ) | |||||
Gross realized gains excluding OTTI | 47 | 22 | 21 | ||||||||
Gross realized losses excluding OTTI | (11 | ) | (61 | ) | (4 | ) | |||||
Total equity securities | 29 | (47 | ) | 15 | |||||||
OTTI on other investments | (2 | ) | (3 | ) | (2 | ) | |||||
Foreign exchange gains (losses) | (80 | ) | (40 | ) | 29 | ||||||
Investment and embedded derivative instruments | 32 | (107 | ) | 78 | |||||||
Fair value adjustments on insurance derivative | (203 | ) | (217 | ) | 878 | ||||||
S&P put options and futures | (10 | ) | (168 | ) | (579 | ) | |||||
Other derivative instruments | (12 | ) | 50 | (2 | ) | ||||||
Other | 6 | 2 | (3 | ) | |||||||
Net realized gains (losses) | (420 | ) | (507 | ) | 504 | ||||||
Change in net unrealized appreciation (depreciation) on investments: | |||||||||||
Fixed maturities available for sale | (1,119 | ) | 734 | (1,798 | ) | ||||||
Fixed maturities held to maturity | 43 | (2 | ) | (82 | ) | ||||||
Equity securities | (17 | ) | 77 | (41 | ) | ||||||
Other | (36 | ) | 35 | 54 | |||||||
Income tax (expense) benefit | 152 | (167 | ) | 408 | |||||||
Change in net unrealized appreciation (depreciation) on investments | (977 | ) | 677 | (1,459 | ) | ||||||
Total net realized gains (losses) and change in net unrealized appreciation (depreciation) on investments | $ | (1,397 | ) | $ | 170 | $ | (955 | ) |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Balance of credit losses related to securities still held – beginning of year | $ | 28 | $ | 37 | $ | 43 | |||||
Additions where no OTTI was previously recorded | 41 | 22 | 9 | ||||||||
Additions where an OTTI was previously recorded | 9 | 5 | 3 | ||||||||
Reductions for securities sold during the period | (25 | ) | (36 | ) | (18 | ) | |||||
Balance of credit losses related to securities still held – end of year | $ | 53 | $ | 28 | $ | 37 |
December 31 | December 31 | ||||||||||||||
2015 | 2014 | ||||||||||||||
(in millions of U.S. dollars) | Fair Value | Cost | Fair Value | Cost | |||||||||||
Investment funds | $ | 269 | $ | 138 | $ | 378 | $ | 228 | |||||||
Limited partnerships | 709 | 542 | 691 | 497 | |||||||||||
Partially-owned investment companies | 1,498 | 1,498 | 1,492 | 1,492 | |||||||||||
Life insurance policies | 222 | 222 | 205 | 205 | |||||||||||
Policy loans | 184 | 184 | 187 | 187 | |||||||||||
Trading securities | 284 | 284 | 290 | 287 | |||||||||||
Other | 125 | 125 | 103 | 103 | |||||||||||
Total | $ | 3,291 | $ | 2,993 | $ | 3,346 | $ | 2,999 |
December 31 | December 31 | ||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Carrying Value | Issued Share Capital | Ownership Percentage | Carrying Value | Issued Share Capital | Ownership Percentage | Domicile | ||||||||||||||||
Huatai Group | $ | 430 | $ | 624 | 20.0 | % | $ | 397 | $ | 638 | 20.0 | % | China | ||||||||||
Huatai Life Insurance Company | 107 | 428 | 20.0 | % | 86 | 438 | 20.0 | % | China | ||||||||||||||
Freisenbruch-Meyer | 9 | 5 | 40.0 | % | 9 | 5 | 40.0 | % | Bermuda | ||||||||||||||
ACE Cooperative Insurance Co. – Saudi Arabia | 11 | 27 | 30.0 | % | 10 | 27 | 30.0 | % | Saudi Arabia | ||||||||||||||
Russian Reinsurance Company | 2 | 4 | 23.3 | % | 2 | 4 | 23.3 | % | Russia | ||||||||||||||
ABR Reinsurance Ltd. | 94 | 800 | 11.3 | % | — | — | — | Bermuda | |||||||||||||||
Total | $ | 653 | $ | 1,888 | $ | 504 | $ | 1,112 |
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 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 2014 | 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 | $ | 350 | $ | (1 | ) | $ | 666 | $ | (9 | ) | $ | 1,016 | $ | (10 | ) | ||||||||
Foreign | 2,262 | (75 | ) | 375 | (15 | ) | 2,637 | (90 | ) | ||||||||||||||
Corporate securities | 4,684 | (150 | ) | 738 | (22 | ) | 5,422 | (172 | ) | ||||||||||||||
Mortgage-backed securities | 704 | (2 | ) | 1,663 | (28 | ) | 2,367 | (30 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 458 | (3 | ) | 490 | (5 | ) | 948 | (8 | ) | ||||||||||||||
Total fixed maturities | 8,458 | (231 | ) | 3,932 | (79 | ) | 12,390 | (310 | ) | ||||||||||||||
Equity securities | 101 | (13 | ) | — | — | 101 | (13 | ) | |||||||||||||||
Total | $ | 8,559 | $ | (244 | ) | $ | 3,932 | $ | (79 | ) | $ | 12,491 | $ | (323 | ) |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Fixed maturities | $ | 2,157 | $ | 2,199 | $ | 2,093 | |||||
Short-term investments | 49 | 45 | 29 | ||||||||
Equity securities | 16 | 33 | 37 | ||||||||
Other | 86 | 94 | 105 | ||||||||
Gross investment income | 2,308 | 2,371 | 2,264 | ||||||||
Investment expenses | (114 | ) | (119 | ) | (120 | ) | |||||
Net investment income | $ | 2,194 | $ | 2,252 | $ | 2,144 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Trust funds | $ | 11,862 | $ | 10,838 | |||
Deposits with non-U.S. regulatory authorities | 2,075 | 2,305 | |||||
Assets pledged under repurchase agreements | 1,459 | 1,431 | |||||
Deposits with U.S. regulatory authorities | 1,242 | 1,345 | |||||
Other pledged assets | 392 | 457 | |||||
$ | 17,030 | $ | 16,376 |
|
% of total GMIB guaranteed value | Year of GMIB eligibility | Maximum annuitization rate(s) (per year) | Maximum annuitization rates based on | ||
68% | First year | 7% - 55% | Actual Experience | ||
Subsequent years | 5% - 27% | ||||
4% | First year | 18% | Actual Experience | ||
Subsequent years | 5%, 10%, 27% | Weighted average(1) | |||
28% | First year | 7%, 15%, 55% | Weighted average(1) | ||
Subsequent years | 5%, 10%, 27% |
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. Based on new accounting guidance adopted in 2015, these investments are excluded from the hierarchy table. |
(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 c) for additional information. |
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 1,680 | $ | 1,140 | $ | — | $ | 2,820 | |||||||
Foreign | — | 15,220 | 22 | 15,242 | |||||||||||
Corporate securities | — | 17,244 | 187 | 17,431 | |||||||||||
Mortgage-backed securities | — | 10,271 | 15 | 10,286 | |||||||||||
States, municipalities, and political subdivisions | — | 3,616 | — | 3,616 | |||||||||||
1,680 | 47,491 | 224 | 49,395 | ||||||||||||
Equity securities | 492 | 16 | 2 | 510 | |||||||||||
Short-term investments | 1,183 | 1,139 | — | 2,322 | |||||||||||
Other investments(1) | 370 | 211 | 204 | 785 | |||||||||||
Securities lending collateral | — | 1,330 | — | 1,330 | |||||||||||
Investment derivative instruments | 18 | — | — | 18 | |||||||||||
Other derivative instruments | — | 2 | — | 2 | |||||||||||
Separate account assets | 1,400 | 90 | — | 1,490 | |||||||||||
Total assets measured at fair value(1) | $ | 5,143 | $ | 50,279 | $ | 430 | $ | 55,852 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 36 | $ | — | $ | — | $ | 36 | |||||||
Other derivative instruments | 21 | — | 4 | 25 | |||||||||||
GLB(2) | — | — | 406 | 406 | |||||||||||
Total liabilities measured at fair value | $ | 57 | $ | — | $ | 410 | $ | 467 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,561 million at December 31, 2014 measured using NAV. Based on new accounting guidance adopted in 2015, these investments are excluded from the hierarchy table. |
(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 c) for additional information. |
December 31 | December 31 | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions of U.S. dollars) | Expected Liquidation Period of Underlying Assets | Fair Value | Maximum Future Funding Commitments | Fair Value | Maximum Future Funding Commitments | ||||||||||||
Financial | 5 to 9 Years | $ | 300 | $ | 105 | $ | 282 | $ | 145 | ||||||||
Real Assets | 3 to 7 Years | 474 | 140 | 451 | 210 | ||||||||||||
Distressed | 5 to 9 Years | 261 | 218 | 232 | 175 | ||||||||||||
Private Credit | 3 to 7 Years | 265 | 209 | 299 | 190 | ||||||||||||
Traditional | 3 to 9 Years | 895 | 152 | 895 | 285 | ||||||||||||
Vintage | 1 to 2 Years | 13 | — | 24 | 5 | ||||||||||||
Investment funds | Not Applicable | 269 | — | 378 | — | ||||||||||||
$ | 2,477 | $ | 824 | $ | 2,561 | $ | 1,010 |
(in millions of U.S. dollars, except for percentages) | Fair Value at December 31, 2015 | Valuation Technique | Significant Unobservable Inputs | Ranges | ||||||
GLB(1) | $ | 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. |
Assets | Liabilities | ||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Other investments | Other derivative instruments | GLB(1) | |||||||||||||||||||||||
Year Ended December 31, 2015 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||
Balance, beginning of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | 204 | $ | 4 | $ | 406 | |||||||||||||
Transfers into Level 3 | 34 | 16 | — | — | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (2 | ) | (1 | ) | — | 3 | (6 | ) | — | — | |||||||||||||||||
Net Realized Gains/Losses | (1 | ) | (4 | ) | — | (2 | ) | — | 2 | 203 | |||||||||||||||||
Purchases | 15 | 52 | 41 | 13 | 33 | — | — | ||||||||||||||||||||
Sales | (3 | ) | (28 | ) | (2 | ) | — | — | — | — | |||||||||||||||||
Settlements | (8 | ) | (48 | ) | (1 | ) | — | (19 | ) | — | — | ||||||||||||||||
Balance, end of year | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | 212 | $ | 6 | $ | 609 | |||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (1 | ) | $ | (2 | ) | $ | — | $ | (2 | ) | $ | — | $ | 2 | $ | 203 |
(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 c) for additional information. |
Assets | Liabilities | |||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | |||||||||||||||||||||||||||
Year ended December 31, 2014 | Foreign | Corporate securities | MBS | |||||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 196 | $ | — | $ | 193 | ||||||||||||||||
Transfers into Level 3 | 10 | 37 | — | — | — | — | 2 | — | ||||||||||||||||||||||||
Transfers out of Level 3 | (34 | ) | (23 | ) | — | (2 | ) | (7 | ) | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (1 | ) | (1 | ) | — | — | — | (1 | ) | — | — | |||||||||||||||||||||
Net Realized Gains/Losses | (3 | ) | (5 | ) | — | — | — | — | 2 | 213 | ||||||||||||||||||||||
Purchases | 15 | 73 | 8 | 2 | — | 20 | — | — | ||||||||||||||||||||||||
Sales | (4 | ) | (38 | ) | — | (2 | ) | — | — | — | — | |||||||||||||||||||||
Settlements | (5 | ) | (22 | ) | (1 | ) | — | — | (11 | ) | — | — | ||||||||||||||||||||
Balance, end of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | — | $ | 204 | $ | 4 | $ | 406 | ||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (4 | ) | $ | (5 | ) | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | 213 |
(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 $663 million at December 31, 2014 and $427 million at December 31, 2013, which includes a fair value derivative adjustment of $406 million and $193 million, respectively. |
Assets | Liabilities | |||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | GLB(1) | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | Foreign | Corporate securities | MBS | Equity securities | Short term investments | Other investments | ||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 60 | $ | 102 | $ | 13 | $ | 3 | $ | — | $ | 180 | $ | 1,119 | ||||||||||||||||
Transfers into Level 3 | 36 | 47 | — | 8 | 8 | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | (54 | ) | (31 | ) | — | (1 | ) | (2 | ) | — | — | |||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | — | — | — | (6 | ) | — | (2 | ) | — | |||||||||||||||||||||
Net Realized Gains/Losses | 1 | (2 | ) | — | 4 | — | — | (926 | ) | |||||||||||||||||||||
Purchases | 24 | 75 | — | 2 | 3 | 29 | — | |||||||||||||||||||||||
Sales | (21 | ) | (7 | ) | (3 | ) | (6 | ) | (1 | ) | — | — | ||||||||||||||||||
Settlements | (2 | ) | (18 | ) | (2 | ) | — | (1 | ) | (11 | ) | — | ||||||||||||||||||
Balance, end of year | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 196 | $ | 193 | ||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | (926 | ) |
(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 $427 million at December 31, 2013 and $1.4 billion at December 31, 2012, which includes a fair value derivative adjustment of $193 million and $1.1 billion, respectively. |
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 | 9,447 | |||||||||||||
Trust preferred securities | — | 446 | — | 446 | 309 | |||||||||||||
Total liabilities | $ | — | $ | 11,528 | $ | — | $ | 11,528 | $ | 11,160 |
December 31, 2014 | 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 | $ | 659 | $ | 191 | $ | — | $ | 850 | $ | 832 | ||||||||
Foreign | — | 963 | — | 963 | 916 | |||||||||||||
Corporate securities | — | 2,408 | 15 | 2,423 | 2,323 | |||||||||||||
Mortgage-backed securities | — | 2,039 | — | 2,039 | 1,983 | |||||||||||||
States, municipalities, and political subdivisions | — | 1,314 | — | 1,314 | 1,277 | |||||||||||||
Total assets | $ | 659 | $ | 6,915 | $ | 15 | $ | 7,589 | $ | 7,331 | ||||||||
Liabilities: | ||||||||||||||||||
Repurchase Agreements | $ | — | $ | 1,402 | $ | — | $ | 1,402 | $ | 1,402 | ||||||||
Short-term debt | — | 1,169 | — | 1,169 | 1,150 | |||||||||||||
Long-term debt | — | 3,690 | — | 3,690 | 3,357 | |||||||||||||
Trust preferred securities | — | 462 | — | 462 | 309 | |||||||||||||
Total liabilities | $ | — | $ | 6,723 | $ | — | $ | 6,723 | $ | 6,218 |
Year Ended December 31 | |||||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||||
Transfers from Level 1 to Level 2 | $ | — | $ | 189 | $ | 19 | |||||||
Transfers from Level 2 to Level 1 | $ | — | $ | — | $ | — |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Premiums written | |||||||||||
Direct | $ | 19,879 | $ | 20,069 | $ | 19,212 | |||||
Assumed | 3,932 | 3,321 | 3,616 | ||||||||
Ceded | (6,098 | ) | (5,591 | ) | (5,803 | ) | |||||
Net | $ | 17,713 | $ | 17,799 | $ | 17,025 | |||||
Premiums earned | |||||||||||
Direct | $ | 19,355 | $ | 19,555 | $ | 18,856 | |||||
Assumed | 3,676 | 3,336 | 3,479 | ||||||||
Ceded | (5,818 | ) | (5,465 | ) | (5,722 | ) | |||||
Net | $ | 17,213 | $ | 17,426 | $ | 16,613 |
December 31 | December 31 | |||||||||
(in millions of U.S. dollars) | 2015 | 2014 | ||||||||
Reinsurance recoverable on unpaid losses and loss expenses (1) | $ | 10,741 | $ | 11,307 | ||||||
Reinsurance recoverable on paid losses and loss expenses (1) | 645 | 685 | ||||||||
Net reinsurance recoverable on losses and loss expenses | $ | 11,386 | $ | 11,992 |
December 31, 2015 | Gross Reinsurance Recoverable on Loss and Loss Expenses | Provision for Uncollectible Reinsurance | % of Gross Reinsurance Recoverable | |||||||
(in millions of U.S. dollars, except for percentages) | ||||||||||
Categories | ||||||||||
Largest reinsurers | $ | 5,335 | $ | 69 | 1.3 | % | ||||
Other reinsurers rated A- or better | 3,078 | 44 | 1.4 | % | ||||||
Other reinsurers with ratings lower than A- or not rated | 378 | 68 | 18.0 | % | ||||||
Pools | 347 | 14 | 4.0 | % | ||||||
Structured settlements | 546 | 10 | 1.8 | % | ||||||
Captives | 1,786 | 23 | 1.3 | % | ||||||
Other | 244 | 100 | 41.0 | % | ||||||
Total | $ | 11,714 | $ | 328 | 2.8 | % |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
GMDB | |||||||||||
Net premiums earned | $ | 61 | $ | 71 | $ | 77 | |||||
Policy benefits and other reserve adjustments | $ | 34 | $ | 50 | $ | 73 | |||||
GLB | |||||||||||
Net premiums earned | $ | 121 | $ | 138 | $ | 149 | |||||
Policy benefits and other reserve adjustments | 45 | 36 | 27 | ||||||||
Net realized gains (losses) | (203 | ) | (213 | ) | 929 | ||||||
Gain (loss) recognized in Net income | $ | (127 | ) | $ | (111 | ) | $ | 1,051 | |||
Net cash received | $ | 98 | $ | 125 | $ | 126 | |||||
Net (increase) decrease in liability | $ | (225 | ) | $ | (236 | ) | $ | 925 |
(in millions of U.S. dollars, except for percentages) | Net amount at risk | |||||||||||
Reinsurance covering | 2015 | 2014 | 2015 Future claims discount rate | Other assumptions | Total claims at 100% mortality at December 31, 2015(1) | |||||||
GMDB Risk Only | $ | 364 | $ | 418 | 3.8% - 4.3% | No lapses or withdrawals | $ | 229 | ||||
Mortality according to 100% of the Annuity 2000 mortality table | ||||||||||||
GLB Risk Only | $ | 733 | $ | 440 | 4.5% - 5.0% | No deaths, lapses or withdrawals | N/A | |||||
Annuitization at a frequency most disadvantageous to Chubb(2) | ||||||||||||
Claim calculated using interest rates in line with rates used to calculate reserve | ||||||||||||
Both Risks: (3) | GMDB | $ | 89 | $ | 76 | 4.5% - 5.0% | No lapses or withdrawals | $ | 56 | |||
Mortality according to 100% of the Annuity 2000 mortality table | ||||||||||||
GLB | $ | 422 | $ | 235 | 4.5% - 5.0% | Annuitization at a frequency most disadvantageous to Chubb(2) | $ | — | ||||
Claim calculated using interest rates in line with rates used to calculate reserve |
|
(in millions of U.S. dollars) | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – Overseas General | Global Reinsurance | Life | ACE Consolidated | |||||||||||||||||
Balance at December 31, 2013 | $ | 1,215 | $ | 134 | $ | 2,054 | $ | 365 | $ | 835 | $ | 4,603 | |||||||||||
Purchase price allocation adjustment | — | — | 4 | — | — | 4 | |||||||||||||||||
Acquisition of Samaggi | — | — | 46 | — | — | 46 | |||||||||||||||||
Acquisition of Itaú Seguros | — | — | 449 | — | — | 449 | |||||||||||||||||
Foreign exchange revaluation and other | (4 | ) | — | (187 | ) | — | (7 | ) | (198 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 1,211 | $ | 134 | $ | 2,366 | $ | 365 | $ | 828 | $ | 4,904 | |||||||||||
Purchase price allocation adjustment | — | — | (4 | ) | — | — | (4 | ) | |||||||||||||||
Acquisition of Fireman's Fund | 196 | — | — | — | — | 196 | |||||||||||||||||
Foreign exchange revaluation and other | (8 | ) | — | (284 | ) | — | (8 | ) | (300 | ) | |||||||||||||
Balance at December 31, 2015 | $ | 1,399 | $ | 134 | $ | 2,078 | $ | 365 | $ | 820 | $ | 4,796 |
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Balance, beginning of year | $ | 466 | $ | 536 | $ | 614 | |||||
Amortization expense | (42 | ) | (51 | ) | (64 | ) | |||||
Foreign exchange revaluation | (29 | ) | (19 | ) | (14 | ) | |||||
Balance, end of year | $ | 395 | $ | 466 | $ | 536 |
For the Year Ending December 31 | Other intangible assets | VOBA | |||||
(in millions of U.S. dollars) | |||||||
2016 | $ | 88 | $ | 39 | |||
2017 | 78 | 35 | |||||
2018 | 70 | 32 | |||||
2019 | 63 | 27 | |||||
2020 | 58 | 24 | |||||
Total | $ | 357 | $ | 157 |
|
Years Ended December 31 | ||||||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | |||||||||||
Gross unpaid losses and loss expenses, beginning of year | $ | 38,315 | $ | 37,443 | $ | 37,946 | ||||||||
Reinsurance recoverable on unpaid losses(1) | (11,307 | ) | (10,612 | ) | (11,399 | ) | ||||||||
Net unpaid losses and loss expenses, beginning of year | 27,008 | 26,831 | 26,547 | |||||||||||
Acquisition of subsidiaries | 417 | 320 | 86 | |||||||||||
Total | 27,425 | 27,151 | 26,633 | |||||||||||
Net losses and loss expenses incurred in respect of losses occurring in: | ||||||||||||||
Current year | 10,030 | 10,176 | 9,878 | |||||||||||
Prior years | (546 | ) | (527 | ) | (530 | ) | ||||||||
Total | 9,484 | 9,649 | 9,348 | |||||||||||
Net losses and loss expenses paid in respect of losses occurring in: | ||||||||||||||
Current year | 4,053 | 3,975 | 3,942 | |||||||||||
Prior years | 5,612 | 5,260 | 5,035 | |||||||||||
Total | 9,665 | 9,235 | 8,977 | |||||||||||
Foreign currency revaluation and other | (682 | ) | (557 | ) | (173 | ) | ||||||||
Net unpaid losses and loss expenses, end of year | 26,562 | 27,008 | 26,831 | |||||||||||
Reinsurance recoverable on unpaid losses(1) | 10,741 | 11,307 | 10,612 | |||||||||||
Gross unpaid losses and loss expenses, end of year | $ | 37,303 | $ | 38,315 | $ | 37,443 | ||||||||
(1) Net of provision for uncollectible reinsurance. |
Asbestos | Environmental | Total | |||||||||||||||||||||||
(in millions of U.S. dollars) | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
Balance at December 31, 2014 | $ | 1,500 | $ | 892 | $ | 199 | $ | 149 | $ | 1,699 | $ | 1,041 | |||||||||||||
Incurred activity | 125 | 76 | 118 | 86 | 243 | 162 | (1) | ||||||||||||||||||
Paid activity | (274 | ) | (137 | ) | (118 | ) | (86 | ) | (392 | ) | (223 | ) | |||||||||||||
Balance at December 31, 2015 | $ | 1,351 | $ | 831 | $ | 199 | $ | 149 | $ | 1,550 | $ | 980 |
(1) | Excludes unallocated loss expenses and the net activity reflects third-party reinsurance other than the aggregate excess of loss reinsurance provided by National Indemnity Company (NICO) to Westchester Specialty (see Westchester Specialty section below). |
|
Years Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Current tax expense | $ | 304 | $ | 481 | $ | 231 | |||||
Deferred tax expense | 158 | 153 | 249 | ||||||||
Provision for income taxes | $ | 462 | $ | 634 | $ | 480 |
Years Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Expected tax provision at Swiss statutory tax rate | $ | 258 | $ | 273 | $ | 331 | |||||
Permanent differences: | |||||||||||
Taxes on earnings subject to rate other than Swiss statutory rate | 193 | 224 | 124 | ||||||||
Change to deferred taxes related to unrealized foreign exchange losses (1) | — | 139 | — | ||||||||
Tax-exempt interest and dividends received deduction, net of proration | (32 | ) | (33 | ) | (27 | ) | |||||
Net withholding taxes | 35 | 33 | 27 | ||||||||
Change in valuation allowance (1) | 2 | (20 | ) | 4 | |||||||
Other | 6 | 18 | 21 | ||||||||
Total provision for income taxes | $ | 462 | $ | 634 | $ | 480 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Deferred tax assets: | |||||||
Loss reserve discount | $ | 663 | $ | 794 | |||
Unearned premiums reserve | 190 | 99 | |||||
Foreign tax credits | 969 | 1,103 | |||||
Investments | 29 | 9 | |||||
Provision for uncollectible balances | 65 | 81 | |||||
Loss carry-forwards | 72 | 40 | |||||
Compensation related amounts | 189 | 185 | |||||
Other | 65 | — | |||||
Total deferred tax assets | 2,242 | 2,311 | |||||
Deferred tax liabilities: | |||||||
Deferred policy acquisition costs | 412 | 213 | |||||
VOBA and other intangible assets | 384 | 321 | |||||
Un-remitted foreign earnings | 827 | 939 | |||||
Unrealized appreciation on investments | 195 | 406 | |||||
Depreciation | 68 | 77 | |||||
Other | — | 43 | |||||
Total deferred tax liabilities | 1,886 | 1,999 | |||||
Valuation allowance | 38 | 17 | |||||
Net deferred tax assets | $ | 318 | $ | 295 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Balance, beginning of year | $ | 23 | $ | 27 | |||
Additions based on tax provisions related to the current year | 1 | 2 | |||||
Reductions for tax positions of prior years | (7 | ) | — | ||||
Reductions for the lapse of the applicable statutes of limitations | (1 | ) | (6 | ) | |||
Balance, end of year | $ | 16 | $ | 23 |
|
December 31 | December 31 | ||||||||
(in millions of U.S. dollars) | 2015 | 2014 | Early Redemption Option | ||||||
Repurchase agreements (weighted average interest rate of 0.6% in 2015 and 0.3% in 2014) | $ | 1,404 | $ | 1,402 | None | ||||
Short-term debt | |||||||||
ACE INA senior notes: | |||||||||
$450 million 5.6% due May 2015 | $ | — | $ | 450 | Make-whole premium plus 0.35% | ||||
$700 million 2.6% due November 2015 | — | 700 | Make-whole premium plus 0.20% | ||||||
Total short-term debt | $ | — | $ | 1,150 | |||||
Long-term debt | |||||||||
ACE INA senior notes: | |||||||||
$500 million 5.7% due February 2017 | $ | 500 | $ | 500 | Make-whole premium plus 0.20% | ||||
$300 million 5.8% due March 2018 | 300 | 300 | Make-whole premium plus 0.35% | ||||||
$500 million 5.9% due June 2019 | 500 | 500 | Make-whole premium plus 0.40% | ||||||
$1,300 million 2.3% due November 2020 | 1,299 | — | Make-whole premium plus 0.15% | ||||||
$1,000 million 2.875% due November 2022 | 999 | — | Make-whole premium plus 0.20% | ||||||
$475 million 2.7% due March 2023 | 474 | 474 | Make-whole premium plus 0.10% | ||||||
$700 million 3.35% due May 2024 | 699 | 699 | Make-whole premium plus 0.15% | ||||||
$800 million 3.15% due March 2025 | 800 | — | Make-whole premium plus 0.15% | ||||||
$1,500 million 3.35% due May 2026 | 1,496 | — | Make-whole premium plus 0.20% | ||||||
$300 million 6.7% due May 2036 | 299 | 299 | Make-whole premium plus 0.20% | ||||||
$475 million 4.15% due March 2043 | 474 | 474 | Make-whole premium plus 0.15% | ||||||
$1,500 million 4.35% due November 2045 | 1,496 | — | Make-whole premium plus 0.25% | ||||||
ACE INA $100 million 8.875% debentures due August 2029 | 100 | 100 | None | ||||||
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020) | 11 | 11 | None | ||||||
Total long-term debt | $ | 9,447 | $ | 3,357 | |||||
Trust preferred securities | |||||||||
ACE INA capital securities due April 2030 | $ | 309 | $ | 309 | 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. |
|
December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||
Consolidated Balance Sheet Location | Fair Value | Notional Value/ Payment Provision | Fair Value | Notional Value/ Payment Provision | ||||||||||||||||||||||
Derivative Asset | Derivative (Liability) | Derivative Asset | Derivative (Liability) | |||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||
Investment and embedded derivative instruments | ||||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 7 | $ | (11 | ) | $ | 1,029 | $ | 12 | $ | (7 | ) | $ | 1,329 | |||||||||||
Cross-currency swaps | OA / (AP) | — | — | 95 | — | — | 95 | |||||||||||||||||||
Futures contracts on money market instruments | OA / (AP) | — | — | — | — | — | 2,467 | |||||||||||||||||||
Options/Futures contracts on notes and bonds | OA / (AP) | 5 | (2 | ) | 751 | 6 | (29 | ) | 1,636 | |||||||||||||||||
Convertible securities(1) | FM AFS/ES | 31 | — | 40 | 291 | — | 267 | |||||||||||||||||||
$ | 43 | $ | (13 | ) | $ | 1,915 | $ | 309 | $ | (36 | ) | $ | 5,794 | |||||||||||||
Other derivative instruments | ||||||||||||||||||||||||||
Futures contracts on equities(2) | OA / (AP) | $ | — | $ | (4 | ) | $ | 1,197 | $ | — | $ | (21 | ) | $ | 1,384 | |||||||||||
Options on equity market indices(2) | OA / (AP) | — | — | — | 2 | — | 250 | |||||||||||||||||||
Other | OA / (AP) | — | (6 | ) | 15 | — | (4 | ) | 10 | |||||||||||||||||
$ | — | $ | (10 | ) | $ | 1,212 | $ | 2 | $ | (25 | ) | $ | 1,644 | |||||||||||||
GLB(3) | (AP) / (FPB) | $ | — | $ | (888 | ) | $ | 1,155 | $ | — | $ | (663 | ) | $ | 675 |
(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 c) 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. |
Years Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Investment and embedded derivative instruments | |||||||||||
Foreign currency forward contracts | $ | 31 | $ | 29 | $ | 11 | |||||
All other futures contracts and options | 9 | (118 | ) | 61 | |||||||
Convertible securities(1) | (8 | ) | (18 | ) | 6 | ||||||
Total investment and embedded derivative instruments | $ | 32 | $ | (107 | ) | $ | 78 | ||||
GLB and other derivative instruments | |||||||||||
GLB(2) | $ | (203 | ) | $ | (217 | ) | $ | 878 | |||
Futures contracts on equities(3) | (8 | ) | (164 | ) | (555 | ) | |||||
Options on equity market indices(3) | (2 | ) | (4 | ) | (24 | ) | |||||
Other | (12 | ) | 50 | (2 | ) | ||||||
Total GLB and other derivative instruments | $ | (225 | ) | $ | (335 | ) | $ | 297 | |||
$ | (193 | ) | $ | (442 | ) | $ | 375 |
(1) | Includes embedded derivatives. |
(2) |
For the year ending December 31 | |||
(in millions of U.S. dollars) | |||
2016 | $ | 111 | |
2017 | 93 | ||
2018 | 72 | ||
2019 | 54 | ||
2020 | 43 | ||
Thereafter | 86 | ||
Total minimum future lease commitments | $ | 459 |
Remaining contractual maturity | |||||
December 31, 2015 | Overnight and Continuous | ||||
(in millions of U.S. dollars) | |||||
Collateral held under securities lending agreements: | |||||
Cash | $ | 424 | |||
U.S. Treasury and agency | 67 | ||||
Foreign | 296 | ||||
Corporate securities | 2 | ||||
Equity securities | 257 | ||||
$ | 1,046 | ||||
Gross amount of recognized liability for securities lending payable | $ | 1,047 | |||
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. |
Remaining contractual maturity | ||||||||||||||||
December 31, 2015 | Up to 30 Days | 30 - 90 Days | Greater than 90 Days | Total | ||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||
Collateral pledged under repurchase agreements: | ||||||||||||||||
Cash | $ | 34 | $ | — | $ | — | $ | 34 | ||||||||
U.S. Treasury and agency | 6 | — | 231 | 237 | ||||||||||||
Mortgage-backed securities | 365 | 480 | 343 | 1,188 | ||||||||||||
$ | 405 | $ | 480 | $ | 574 | $ | 1,459 | |||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,404 | ||||||||||||||
Difference (1) | $ | 55 |
|
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Fair value of plan assets | $ | 573 | $ | 588 | |||
Projected benefit obligation | 569 | 594 | |||||
Funded status, end of year | $ | 4 | $ | (6 | ) |
For the year ending December 31 | |||
(in millions of U.S. dollars) | |||
2016 | $ | 20 | |
2017 | 20 | ||
2018 | 23 | ||
2019 | 24 | ||
2020 | 24 | ||
2021–2025 | 126 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||||
Equity in net (income) loss of partially-owned entities | $ | (113 | ) | $ | (231 | ) | $ | (119 | ) | ||
(Gains) losses from fair value changes in separate account assets | 19 | (2 | ) | (16 | ) | ||||||
Federal excise and capital taxes | 19 | 20 | 24 | ||||||||
Acquisition-related costs (1) | 9 | 15 | 4 | ||||||||
Other | 15 | 8 | 27 | ||||||||
Other (income) expense | $ | (51 | ) | $ | (190 | ) | $ | (80 | ) |
|
For the Year Ended December 31, 2015 (in millions of U.S. dollars) | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – Overseas General | Global Reinsurance | Life | Corporate | Chubb Consolidated | ||||||||||||||||||||
Net premiums written | $ | 6,907 | $ | 1,346 | $ | 6,634 | $ | 828 | $ | 1,998 | $ | — | $ | 17,713 | |||||||||||||
Net premiums earned | 6,582 | 1,364 | 6,471 | 849 | 1,947 | — | 17,213 | ||||||||||||||||||||
Losses and loss expenses | 4,450 | 1,088 | 3,052 | 290 | 601 | 3 | 9,484 | ||||||||||||||||||||
Policy benefits | — | — | — | — | 543 | — | 543 | ||||||||||||||||||||
Policy acquisition costs | 600 | 69 | 1,581 | 214 | 476 | 1 | 2,941 | ||||||||||||||||||||
Administrative expenses | 748 | 1 | 997 | 49 | 291 | 184 | 2,270 | ||||||||||||||||||||
Underwriting income (loss) | 784 | 206 | 841 | 296 | 36 | (188 | ) | 1,975 | |||||||||||||||||||
Net investment income | 1,056 | 23 | 534 | 300 | 265 | 16 | 2,194 | ||||||||||||||||||||
Net realized gains (losses) including OTTI | (108 | ) | (8 | ) | (38 | ) | (32 | ) | (229 | ) | (5 | ) | (420 | ) | |||||||||||||
Interest expense | 2 | — | 8 | 5 | 5 | 280 | 300 | ||||||||||||||||||||
Other (income) expense: | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | 19 | — | 19 | ||||||||||||||||||||
Other | (29 | ) | 1 | (16 | ) | (6 | ) | (39 | ) | 19 | (70 | ) | |||||||||||||||
Amortization of intangible assets | 78 | 30 | 61 | — | 2 | — | 171 | ||||||||||||||||||||
Chubb integration expenses | — | — | — | — | — | 33 | 33 | ||||||||||||||||||||
Income tax expense (benefit) | 316 | 40 | 232 | 26 | 30 | (182 | ) | 462 | |||||||||||||||||||
Net income (loss) | $ | 1,365 | $ | 150 | $ | 1,052 | $ | 539 | $ | 55 | $ | (327 | ) | $ | 2,834 |
For the Year Ended December 31, 2014 (in millions of U.S. dollars) | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – Overseas General | Global Reinsurance | Life | Corporate | Chubb Consolidated | ||||||||||||||||||||
Net premiums written | $ | 6,263 | $ | 1,590 | $ | 6,999 | $ | 935 | $ | 2,012 | $ | — | $ | 17,799 | |||||||||||||
Net premiums earned | 6,107 | 1,526 | 6,805 | 1,026 | 1,962 | — | 17,426 | ||||||||||||||||||||
Losses and loss expenses | 4,086 | 1,351 | 3,189 | 431 | 589 | 3 | 9,649 | ||||||||||||||||||||
Policy benefits | — | — | — | — | 517 | — | 517 | ||||||||||||||||||||
Policy acquisition costs | 634 | 81 | 1,625 | 257 | 478 | — | 3,075 | ||||||||||||||||||||
Administrative expenses | 678 | 9 | 1,026 | 54 | 285 | 193 | 2,245 | ||||||||||||||||||||
Underwriting income (loss) | 709 | 85 | 965 | 284 | 93 | (196 | ) | 1,940 | |||||||||||||||||||
Net investment income | 1,085 | 26 | 545 | 316 | 268 | 12 | 2,252 | ||||||||||||||||||||
Net realized gains (losses) including OTTI | (67 | ) | 54 | (78 | ) | (29 | ) | (383 | ) | (4 | ) | (507 | ) | ||||||||||||||
Interest expense | 9 | — | 6 | 4 | 11 | 250 | 280 | ||||||||||||||||||||
Other (income) expense: | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||
Other | (101 | ) | 2 | (63 | ) | (54 | ) | (1 | ) | 29 | (188 | ) | |||||||||||||||
Amortization of intangible assets | — | 31 | 74 | — | 3 | — | 108 | ||||||||||||||||||||
Income tax expense (benefit) | 306 | 33 | 378 | 38 | 46 | (167 | ) | 634 | |||||||||||||||||||
Net income (loss) | $ | 1,513 | $ | 99 | $ | 1,037 | $ | 583 | $ | (79 | ) | $ | (300 | ) | $ | 2,853 |
For the Year Ended December 31, 2013 (in millions of U.S. dollars) | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – Overseas General | Global Reinsurance | Life | Corporate | Chubb Consolidated | ||||||||||||||||||||
Net premiums written | $ | 5,915 | $ | 1,627 | $ | 6,520 | $ | 991 | $ | 1,972 | $ | — | $ | 17,025 | |||||||||||||
Net premiums earned | 5,721 | 1,678 | 6,333 | 976 | 1,905 | — | 16,613 | ||||||||||||||||||||
Losses and loss expenses | 3,776 | 1,524 | 3,062 | 396 | 582 | 8 | 9,348 | ||||||||||||||||||||
Policy benefits | — | — | — | — | 515 | — | 515 | ||||||||||||||||||||
Policy acquisition costs | 597 | 53 | 1,453 | 197 | 358 | 1 | 2,659 | ||||||||||||||||||||
Administrative expenses | 601 | 11 | 1,008 | 50 | 343 | 198 | 2,211 | ||||||||||||||||||||
Underwriting income (loss) | 747 | 90 | 810 | 333 | 107 | (207 | ) | 1,880 | |||||||||||||||||||
Net investment income | 1,021 | 26 | 539 | 280 | 251 | 27 | 2,144 | ||||||||||||||||||||
Net realized gains (losses) including OTTI | 72 | 1 | 18 | 53 | 360 | — | 504 | ||||||||||||||||||||
Interest expense | 5 | 1 | 5 | 5 | 15 | 244 | 275 | ||||||||||||||||||||
Other (income) expense: | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | (16 | ) | — | (16 | ) | ||||||||||||||||||
Other | (58 | ) | — | (21 | ) | (19 | ) | 10 | 24 | (64 | ) | ||||||||||||||||
Amortization of intangible assets | — | 32 | 60 | — | 3 | — | 95 | ||||||||||||||||||||
Income tax expense (benefit) | 347 | 20 | 222 | 36 | 34 | (179) | 480 | ||||||||||||||||||||
Net income (loss) | $ | 1,546 | $ | 64 | $ | 1,101 | $ | 644 | $ | 672 | $ | (269 | ) | $ | 3,758 |
(in millions of U.S. dollars) | Property & All Other | Casualty | Life, Accident & Health | Chubb Consolidated | |||||||||||
For the Year Ended December 31, 2015 | |||||||||||||||
Insurance – North American P&C | $ | 1,931 | $ | 4,232 | $ | 419 | $ | 6,582 | |||||||
Insurance – North American Agriculture | 1,364 | — | — | 1,364 | |||||||||||
Insurance – Overseas General | 2,868 | 1,537 | 2,066 | 6,471 | |||||||||||
Global Reinsurance | 423 | 426 | — | 849 | |||||||||||
Life | — | — | 1,947 | 1,947 | |||||||||||
$ | 6,586 | $ | 6,195 | $ | 4,432 | $ | 17,213 | ||||||||
For the Year Ended December 31, 2014 | |||||||||||||||
Insurance – North American P&C | $ | 1,662 | $ | 4,032 | $ | 413 | $ | 6,107 | |||||||
Insurance – North American Agriculture | 1,526 | — | — | 1,526 | |||||||||||
Insurance – Overseas General | 2,948 | 1,573 | 2,284 | 6,805 | |||||||||||
Global Reinsurance | 551 | 475 | — | 1,026 | |||||||||||
Life | — | — | 1,962 | 1,962 | |||||||||||
$ | 6,687 | $ | 6,080 | $ | 4,659 | $ | 17,426 | ||||||||
For the Year Ended December 31, 2013 | |||||||||||||||
Insurance – North American P&C | $ | 1,489 | $ | 3,847 | $ | 385 | $ | 5,721 | |||||||
Insurance – North American Agriculture | 1,678 | — | — | 1,678 | |||||||||||
Insurance – Overseas General | 2,672 | 1,479 | 2,182 | 6,333 | |||||||||||
Global Reinsurance | 543 | 433 | — | 976 | |||||||||||
Life | — | — | 1,905 | 1,905 | |||||||||||
$ | 6,382 | $ | 5,759 | $ | 4,472 | $ | 16,613 |
North America | Asia Pacific/Far East | Latin America | ||||||||||
Years Ended December 31 | Europe(1) | |||||||||||
2015 | 60 | % | 15 | % | 15 | % | 10 | % | ||||
2014 | 58 | % | 16 | % | 16 | % | 10 | % | ||||
2013 | 58 | % | 17 | % | 16 | % | 9 | % |
|
December 31 | |||||||
(in millions of U.S. dollars) | 2015 | 2014 | |||||
Statutory capital and surplus | |||||||
Property and casualty | $ | 20,072 | $ | 25,805 | |||
Life | $ | 1,216 | $ | 1,463 |
Year Ended December 31 | |||||||||
(in millions of U.S. dollars) | 2015 | 2014 | 2013 | ||||||
Statutory net income (loss) | |||||||||
Property and casualty | $ | 2,770 | $ | 3,378 | $ | 3,333 | |||
Life | $ | (148 | ) | $ | (248 | ) | $ | 409 |
|
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | ACE 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 | 517 | 14,434 | (3,593 | ) | 11,366 | |||||||||||||
Total assets | $ | 30,293 | $ | 28,544 | $ | 108,967 | $ | (65,438 | ) | $ | 102,366 | ||||||||
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 | — | 9,436 | 11 | — | 9,447 | ||||||||||||||
Trust preferred securities | — | 309 | — | — | 309 | ||||||||||||||
Other liabilities | 276 | 1,422 | 12,916 | (3,092 | ) | 11,522 | |||||||||||||
Total liabilities | 1,158 | 11,256 | 78,257 | (17,440 | ) | 73,231 | |||||||||||||
Total shareholders’ equity | 29,135 | 17,288 | 30,710 | (47,998 | ) | 29,135 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 30,293 | $ | 28,544 | $ | 108,967 | $ | (65,438 | ) | $ | 102,366 |
(1) | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | ACE INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Investments | $ | 30 | $ | 225 | $ | 62,649 | $ | — | $ | 62,904 | |||||||||
Cash(1) | — | 1 | 1,209 | (555 | ) | 655 | |||||||||||||
Insurance and reinsurance balances receivable | — | — | 6,178 | (752 | ) | 5,426 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 20,992 | (9,000 | ) | 11,992 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,194 | (977 | ) | 217 | |||||||||||||
Value of business acquired | — | — | 466 | — | 466 | ||||||||||||||
Goodwill and other intangible assets | — | — | 5,724 | — | 5,724 | ||||||||||||||
Investments in subsidiaries | 29,497 | 18,762 | — | (48,259 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 583 | — | — | (583 | ) | — | |||||||||||||
Other assets | 4 | 295 | 14,196 | (3,631 | ) | 10,864 | |||||||||||||
Total assets | $ | 30,114 | $ | 19,283 | $ | 112,608 | $ | (63,757 | ) | $ | 98,248 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 46,770 | $ | (8,455 | ) | $ | 38,315 | ||||||||
Unearned premiums | — | — | 9,958 | (1,736 | ) | 8,222 | |||||||||||||
Future policy benefits | — | — | 5,731 | (977 | ) | 4,754 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 422 | 161 | (583 | ) | — | |||||||||||||
Affiliated notional cash pooling programs(1) | 246 | 309 | — | (555 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,402 | — | 1,402 | ||||||||||||||
Short-term debt | — | 1,150 | — | — | 1,150 | ||||||||||||||
Long-term debt | — | 3,345 | 12 | — | 3,357 | ||||||||||||||
Trust preferred securities | — | 309 | — | — | 309 | ||||||||||||||
Other liabilities | 281 | 1,404 | 12,659 | (3,192 | ) | 11,152 | |||||||||||||
Total liabilities | 527 | 6,939 | 76,693 | (15,498 | ) | 68,661 | |||||||||||||
Total shareholders’ equity | 29,587 | 12,344 | 35,915 | (48,259 | ) | 29,587 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 30,114 | $ | 19,283 | $ | 112,608 | $ | (63,757 | ) | $ | 98,248 |
(1) | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2015 | Chubb Limited (Parent Guarantor) | ACE 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 | $ | — | $ | — | $ | 17,713 | $ | — | $ | 17,713 | |||||||||
Net premiums earned | — | — | 17,213 | — | 17,213 | ||||||||||||||
Net investment income | 3 | 4 | 2,187 | — | 2,194 | ||||||||||||||
Equity in earnings of subsidiaries | 2,673 | 1,038 | — | (3,711 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | (9 | ) | (411 | ) | — | (420 | ) | |||||||||||
Losses and loss expenses | — | — | 9,484 | — | 9,484 | ||||||||||||||
Policy benefits | — | — | 543 | — | 543 | ||||||||||||||
Policy acquisition costs and administrative expenses | 63 | 28 | 5,120 | — | 5,211 | ||||||||||||||
Interest (income) expense | (32 | ) | 302 | 30 | — | 300 | |||||||||||||
Other (income) expense | (208 | ) | (4 | ) | 161 | — | (51 | ) | |||||||||||
Amortization of intangible assets | — | — | 171 | — | 171 | ||||||||||||||
Chubb integration expenses | 3 | 29 | 1 | — | 33 | ||||||||||||||
Income tax expense (benefit) | 16 | (349 | ) | 795 | — | 462 | |||||||||||||
Net income | $ | 2,834 | $ | 1,027 | $ | 2,684 | $ | (3,711 | ) | $ | 2,834 | ||||||||
Comprehensive income (loss) | $ | 908 | $ | (192 | ) | $ | 757 | $ | (565 | ) | $ | 908 |
For the Year Ended December 31, 2014 | Chubb Limited (Parent Guarantor) | ACE 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 | $ | — | $ | — | $ | 17,799 | $ | — | $ | 17,799 | |||||||||
Net premiums earned | — | — | 17,426 | — | 17,426 | ||||||||||||||
Net investment income | 2 | 2 | 2,248 | — | 2,252 | ||||||||||||||
Equity in earnings of subsidiaries | 2,707 | 791 | — | (3,498 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | 53 | (560 | ) | — | (507 | ) | ||||||||||||
Losses and loss expenses | — | — | 9,649 | — | 9,649 | ||||||||||||||
Policy benefits | — | — | 517 | — | 517 | ||||||||||||||
Policy acquisition costs and administrative expenses | 78 | 26 | 5,216 | — | 5,320 | ||||||||||||||
Interest (income) expense | (35 | ) | 277 | 38 | — | 280 | |||||||||||||
Other (income) expense | (201 | ) | 27 | (16 | ) | — | (190 | ) | |||||||||||
Amortization of intangible assets | — | — | 108 | — | 108 | ||||||||||||||
Income tax expense (benefit) | 14 | (94 | ) | 714 | — | 634 | |||||||||||||
Net income | $ | 2,853 | $ | 610 | $ | 2,888 | $ | (3,498 | ) | $ | 2,853 | ||||||||
Comprehensive income | $ | 2,892 | $ | 583 | $ | 2,926 | $ | (3,509 | ) | $ | 2,892 |
For the Year Ended December 31, 2013 | Chubb Limited (Parent Guarantor) | ACE 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 | $ | — | $ | — | $ | 17,025 | $ | — | $ | 17,025 | |||||||||
Net premiums earned | — | — | 16,613 | — | 16,613 | ||||||||||||||
Net investment income | 2 | 3 | 2,139 | — | 2,144 | ||||||||||||||
Equity in earnings of subsidiaries | 3,580 | 942 | — | (4,522 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | (2 | ) | 506 | — | 504 | |||||||||||||
Losses and loss expenses | — | — | 9,348 | — | 9,348 | ||||||||||||||
Policy benefits | — | — | 515 | — | 515 | ||||||||||||||
Policy acquisition costs and administrative expenses | 60 | 19 | 4,791 | — | 4,870 | ||||||||||||||
Interest (income) expense | (32 | ) | 270 | 37 | — | 275 | |||||||||||||
Other (income) expense | (221 | ) | 27 | 114 | — | (80 | ) | ||||||||||||
Amortization of intangible assets | — | — | 95 | — | 95 | ||||||||||||||
Income tax expense (benefit) | 17 | (108 | ) | 571 | — | 480 | |||||||||||||
Net income | $ | 3,758 | $ | 735 | $ | 3,787 | $ | (4,522 | ) | $ | 3,758 | ||||||||
Comprehensive income (loss) | $ | 2,023 | $ | (230 | ) | $ | 2,051 | $ | (1,821 | ) | $ | 2,023 |
For the Year Ended December 31, 2015 | Chubb Limited (Parent Guarantor) | ACE 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 | $ | 3,125 | $ | 682 | $ | 3,836 | $ | (3,779 | ) | $ | 3,864 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (16,053 | ) | (18 | ) | (16,071 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (62 | ) | — | (62 | ) | ||||||||||||
Purchases of equity securities | — | — | (158 | ) | — | (158 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 10,814 | — | 10,814 | ||||||||||||||
Sales of equity securities | — | — | 183 | — | 183 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,567 | — | 6,567 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 669 | — | 669 | ||||||||||||||
Net change in short-term investments | — | (7,588 | ) | (628 | ) | — | (8,216 | ) | |||||||||||
Net derivative instruments settlements | — | (9 | ) | (12 | ) | — | (21 | ) | |||||||||||
Acquisition of subsidiaries (net of cash acquired of $629) | — | — | 264 | — | 264 | ||||||||||||||
Capital contribution | (2,670 | ) | (625 | ) | (2,791 | ) | 6,086 | — | |||||||||||
Other | — | (25 | ) | (256 | ) | 18 | (263 | ) | |||||||||||
Net cash flows used for investing activities | (2,670 | ) | (8,247 | ) | (1,463 | ) | 6,086 | (6,294 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (862 | ) | — | — | — | (862 | ) | ||||||||||||
Common Shares repurchased | — | — | (758 | ) | — | (758 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 6,090 | — | — | 6,090 | ||||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,029 | — | 2,029 | ||||||||||||||
Repayment of long-term debt | — | (1,150 | ) | — | — | (1,150 | ) | ||||||||||||
Repayment of repurchase agreements | — | — | (2,027 | ) | — | (2,027 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 131 | — | 131 | ||||||||||||||
Advances (to) from affiliates | (228 | ) | 95 | 133 | — | — | |||||||||||||
Dividends to parent company | — | — | (3,779 | ) | 3,779 | — | |||||||||||||
Capital contribution | — | 2,791 | 3,295 | (6,086 | ) | — | |||||||||||||
Net proceeds from affiliated notional cash pooling programs(1) | 636 | (220 | ) | — | (416 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 503 | — | 503 | ||||||||||||||
Policyholder contract withdrawals | — | — | (221 | ) | — | (221 | ) | ||||||||||||
Other | — | (40 | ) | — | — | (40 | ) | ||||||||||||
Net cash flows (used for) from financing activities | (454 | ) | 7,566 | (694 | ) | (2,723 | ) | 3,695 | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (145 | ) | — | (145 | ) | ||||||||||||
Net (decrease) increase in cash | 1 | 1 | 1,534 | (416 | ) | 1,120 | |||||||||||||
Cash – beginning of year(1) | — | 1 | 1,209 | (555 | ) | 655 | |||||||||||||
Cash – end of year(1) | $ | 1 | $ | 2 | $ | 2,743 | $ | (971 | ) | $ | 1,775 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015 and 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2014 | Chubb Limited (Parent Guarantor) | ACE INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 541 | $ | 210 | $ | 4,419 | $ | (674 | ) | $ | 4,496 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (15,816 | ) | 263 | (15,553 | ) | ||||||||||||
Purchases of fixed maturities held to maturity | — | — | (267 | ) | — | (267 | ) | ||||||||||||
Purchases of equity securities | — | — | (251 | ) | — | (251 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 7,750 | (268 | ) | 7,482 | |||||||||||||
Sales of equity securities | — | — | 670 | — | 670 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,413 | — | 6,413 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 875 | — | 875 | ||||||||||||||
Net change in short-term investments | — | (216 | ) | (392 | ) | 5 | (603 | ) | |||||||||||
Net derivative instruments settlements | — | 53 | (283 | ) | — | (230 | ) | ||||||||||||
Acquisition of subsidiaries (net of cash acquired of $20) | — | — | (766 | ) | — | (766 | ) | ||||||||||||
Capital contribution | — | (258 | ) | — | 258 | — | |||||||||||||
Other | — | (8 | ) | (266 | ) | — | (274 | ) | |||||||||||
Net cash flows used for investing activities | — | (429 | ) | (2,333 | ) | 258 | (2,504 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (862 | ) | — | — | — | (862 | ) | ||||||||||||
Common Shares repurchased | — | — | (1,429 | ) | — | (1,429 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 699 | — | — | 699 | ||||||||||||||
Proceeds from the issuance of repurchase agreements | — | — | 1,978 | — | 1,978 | ||||||||||||||
Repayment of long-term debt | — | (500 | ) | (1 | ) | — | (501 | ) | |||||||||||
Repayment of repurchase agreements | — | — | (1,977 | ) | — | (1,977 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 127 | — | 127 | ||||||||||||||
Advances (to) from affiliates | 260 | (298 | ) | 38 | — | — | |||||||||||||
Dividends to parent company | — | — | (674 | ) | 674 | — | |||||||||||||
Capital contribution | — | — | 258 | (258 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | 61 | 309 | — | (370 | ) | — | |||||||||||||
Policyholder contract deposits | — | — | 366 | — | 366 | ||||||||||||||
Policyholder contract withdrawals | — | — | (172 | ) | — | (172 | ) | ||||||||||||
Other | — | (6 | ) | — | — | (6 | ) | ||||||||||||
Net cash flows (used for) from financing activities | (541 | ) | 204 | (1,486 | ) | 46 | (1,777 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (139 | ) | — | (139 | ) | ||||||||||||
Net (decrease) increase in cash | — | (15 | ) | 461 | (370 | ) | 76 | ||||||||||||
Cash – beginning of year(1) | — | 16 | 748 | (185 | ) | 579 | |||||||||||||
Cash – end of year(1) | $ | — | $ | 1 | $ | 1,209 | $ | (555 | ) | $ | 655 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014 and 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2013 | Chubb Limited (Parent Guarantor) | ACE INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 970 | $ | (107 | ) | $ | 3,984 | $ | (825 | ) | $ | 4,022 | |||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (21,504 | ) | 106 | (21,398 | ) | ||||||||||||
Purchases of fixed maturities held to maturity | — | — | (447 | ) | — | (447 | ) | ||||||||||||
Purchases of equity securities | — | — | (264 | ) | — | (264 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 10,519 | (106 | ) | 10,413 | |||||||||||||
Sales of equity securities | — | — | 142 | — | 142 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,941 | — | 6,941 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 1,488 | — | 1,488 | ||||||||||||||
Net change in short-term investments | (1 | ) | 4 | 521 | — | 524 | |||||||||||||
Net derivative instruments settlements | — | (1 | ) | (470 | ) | — | (471 | ) | |||||||||||
Capital contribution | (133 | ) | (1,097 | ) | — | 1,230 | — | ||||||||||||
Acquisition of subsidiaries (net of cash acquired of $38) | — | — | (977 | ) | — | (977 | ) | ||||||||||||
Other | — | (4 | ) | (389 | ) | — | (393 | ) | |||||||||||
Net cash flows used for investing activities | (134 | ) | (1,098 | ) | (4,440 | ) | 1,230 | (4,442 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (517 | ) | — | — | — | (517 | ) | ||||||||||||
Common Shares repurchased | — | — | (287 | ) | — | (287 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 947 | — | 947 | |||||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,572 | — | 2,572 | ||||||||||||||
Repayment of repurchase agreements | — | — | (2,572 | ) | — | (2,572 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | 14 | — | 121 | — | 135 | ||||||||||||||
Advances from (to) affiliates | (621 | ) | 621 | — | — | — | |||||||||||||
Dividends to parent company | — | — | (825 | ) | 825 | — | |||||||||||||
Capital contribution | — | — | 1,230 | (1,230 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | 185 | (349 | ) | — | 164 | — | |||||||||||||
Policyholder contract deposits | — | — | 233 | — | 233 | ||||||||||||||
Policyholder contract withdrawals | — | — | (120 | ) | — | (120 | ) | ||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Net cash flows (used for) from financing activities | (939 | ) | 1,219 | 352 | (241 | ) | 391 | ||||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (7 | ) | — | (7 | ) | ||||||||||||
Net increase (decrease) in cash | (103 | ) | 14 | (111 | ) | 164 | (36 | ) | |||||||||||
Cash – beginning of year(1) | 103 | 2 | 859 | (349 | ) | 615 | |||||||||||||
Cash – end of year(1) | $ | — | $ | 16 | $ | 748 | $ | (185 | ) | $ | 579 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2013 and 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
|
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(in millions of U.S. dollars, except per share data) | 2015 | 2015 | 2015 | 2015 | |||||||||||
Net premiums earned | $ | 3,927 | $ | 4,360 | $ | 4,719 | $ | 4,207 | |||||||
Net investment income | 551 | 562 | 549 | 532 | |||||||||||
Net realized gains (losses) including OTTI | (89 | ) | 126 | (397 | ) | (60 | ) | ||||||||
Total revenues | $ | 4,389 | $ | 5,048 | $ | 4,871 | $ | 4,679 | |||||||
Losses and loss expenses | $ | 2,122 | $ | 2,417 | $ | 2,643 | $ | 2,302 | |||||||
Policy benefits | $ | 142 | $ | 153 | $ | 89 | $ | 159 | |||||||
Net income | $ | 681 | $ | 942 | $ | 528 | $ | 683 | |||||||
Basic earnings per share | $ | 2.08 | $ | 2.89 | $ | 1.63 | $ | 2.10 | |||||||
Diluted earnings per share | $ | 2.05 | $ | 2.86 | $ | 1.62 | $ | 2.08 |
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(in millions of U.S. dollars, except per share data) | 2014 | 2014 | 2014 | 2014 | |||||||||||
Net premiums earned | $ | 3,970 | $ | 4,332 | $ | 4,754 | $ | 4,370 | |||||||
Net investment income | 553 | 556 | 566 | 577 | |||||||||||
Net realized gains (losses) including OTTI | (104 | ) | (73 | ) | (120 | ) | (210 | ) | |||||||
Total revenues | $ | 4,419 | $ | 4,815 | $ | 5,200 | $ | 4,737 | |||||||
Losses and loss expenses | $ | 2,161 | $ | 2,388 | $ | 2,684 | $ | 2,416 | |||||||
Policy benefits | $ | 114 | $ | 144 | $ | 125 | $ | 134 | |||||||
Net income (1) | $ | 734 | $ | 779 | $ | 785 | $ | 555 | |||||||
Basic earnings per share | $ | 2.16 | $ | 2.30 | $ | 2.35 | $ | 1.68 | |||||||
Diluted earnings per share | $ | 2.14 | $ | 2.28 | $ | 2.32 | $ | 1.66 |
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North America | Asia Pacific/Far East | Latin America | ||||||||||
Years Ended December 31 | Europe(1) | |||||||||||
2015 | 60 | % | 15 | % | 15 | % | 10 | % | ||||
2014 | 58 | % | 16 | % | 16 | % | 10 | % | ||||
2013 | 58 | % | 17 | % | 16 | % | 9 | % |
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