þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Switzerland
|
98-0091805
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
þ
|
|
|
|
|
|
Accelerated filer
¨
|
Non-accelerated filer
¨
|
(Do not check if a smaller reporting company)
|
Smaller reporting company
¨
|
|
|
|
Page
|
Part I.
|
FINANCIAL INFORMATION
|
|
|
Item 1.
|
|
||
|
|||
|
|||
|
|||
|
|||
|
|
||
|
Note 1.
|
||
|
Note 2.
|
||
|
Note 3.
|
||
|
Note 4.
|
||
|
Note 5.
|
||
|
Note 6.
|
||
|
Note 7.
|
||
|
Note 8.
|
||
|
Note 9.
|
||
|
Note 10.
|
||
|
Note 11.
|
||
|
Note 12.
|
||
|
Note 13.
|
||
|
Note 14.
|
||
Item 2.
|
|||
Item 3.
|
|||
Item 4.
|
|||
|
|
|
|
Part II.
|
OTHER INFORMATION
|
|
|
Item 1.
|
|||
Item 1A.
|
|||
Item 2.
|
|||
Item 6.
|
ITEM 1. Financial Statements
|
|
June 30
|
|
|
December 31
|
|
||
(in millions of U.S. dollars, except share and per share data)
|
2016
|
|
|
2015
|
|
||
Assets
|
|
|
|
||||
Investments
|
|
|
|
||||
Fixed maturities available for sale, at fair value (amortized cost – $
77,436
and $43,149)
|
$
|
79,951
|
|
|
$
|
43,587
|
|
(includes hybrid financial instruments of $
2
and $31)
|
|||||||
Fixed maturities held to maturity, at amortized cost (fair value – $11,581 and $8,552)
|
11,090
|
|
|
8,430
|
|
||
Equity securities, at fair value (cost – $
703
and $441)
|
787
|
|
|
497
|
|
||
Short-term investments, at fair value and amortized cost
|
3,631
|
|
|
10,446
|
|
||
Other investments (cost – $
4,152
and $2,993)
|
4,387
|
|
|
3,291
|
|
||
Total investments
|
99,846
|
|
|
66,251
|
|
||
Cash
|
1,011
|
|
|
1,775
|
|
||
Securities lending collateral
|
1,142
|
|
|
1,046
|
|
||
Accrued investment income
|
919
|
|
|
513
|
|
||
Insurance and reinsurance balances receivable
|
8,532
|
|
|
5,323
|
|
||
Reinsurance recoverable on losses and loss expenses
|
13,235
|
|
|
11,386
|
|
||
Reinsurance recoverable on policy benefits
|
199
|
|
|
187
|
|
||
Deferred policy acquisition costs
|
3,948
|
|
|
2,873
|
|
||
Value of business acquired
|
381
|
|
|
395
|
|
||
Goodwill
|
15,525
|
|
|
4,796
|
|
||
Other intangible assets
|
7,398
|
|
|
887
|
|
||
Prepaid reinsurance premiums
|
2,464
|
|
|
2,082
|
|
||
Deferred tax assets
|
—
|
|
|
318
|
|
||
Investments in partially-owned insurance companies
|
658
|
|
|
653
|
|
||
Other assets
|
4,945
|
|
|
3,821
|
|
||
Total assets
|
$
|
160,203
|
|
|
$
|
102,306
|
|
Liabilities
|
|
|
|
||||
Unpaid losses and loss expenses
|
$
|
60,819
|
|
|
$
|
37,303
|
|
Unearned premiums
|
15,229
|
|
|
8,439
|
|
||
Future policy benefits
|
4,975
|
|
|
4,807
|
|
||
Insurance and reinsurance balances payable
|
4,944
|
|
|
4,270
|
|
||
Securities lending payable
|
1,143
|
|
|
1,047
|
|
||
Accounts payable, accrued expenses, and other liabilities
|
9,614
|
|
|
6,205
|
|
||
Deferred tax liabilities
|
1,409
|
|
|
—
|
|
||
Repurchase agreements
|
1,405
|
|
|
1,404
|
|
||
Short-term debt
|
500
|
|
|
—
|
|
||
Long-term debt
|
12,631
|
|
|
9,389
|
|
||
Trust preferred securities
|
308
|
|
|
307
|
|
||
Total liabilities
|
112,977
|
|
|
73,171
|
|
||
Commitments and contingencies
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Common Shares (CHF 24.15 par value; 479,783,864 and 342,832,412 shares issued; 465,012,980 and 324,563,441 shares outstanding)
|
11,121
|
|
|
7,833
|
|
||
Common Shares in treasury (
14,770,884
and 18,268,971 shares)
|
(1,577
|
)
|
|
(1,922
|
)
|
||
Additional paid-in capital
|
15,858
|
|
|
4,481
|
|
||
Retained earnings
|
20,643
|
|
|
19,478
|
|
||
Accumulated other comprehensive income (loss) (AOCI)
|
1,181
|
|
|
(735
|
)
|
||
Total shareholders’ equity
|
47,226
|
|
|
29,135
|
|
||
Total liabilities and shareholders’ equity
|
$
|
160,203
|
|
|
$
|
102,306
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars, except per share data)
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Net premiums written
|
$
|
7,639
|
|
|
$
|
4,784
|
|
|
$
|
13,634
|
|
|
$
|
8,860
|
|
Decrease (increase) in unearned premiums
|
(234
|
)
|
|
(424
|
)
|
|
368
|
|
|
(573
|
)
|
||||
Net premiums earned
|
7,405
|
|
|
4,360
|
|
|
14,002
|
|
|
8,287
|
|
||||
Net investment income
|
708
|
|
|
562
|
|
|
1,382
|
|
|
1,113
|
|
||||
Net realized gains (losses):
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment (OTTI) losses gross
|
(16
|
)
|
|
(14
|
)
|
|
(87
|
)
|
|
(27
|
)
|
||||
Portion of OTTI losses recognized in other comprehensive income (OCI)
|
—
|
|
|
6
|
|
|
8
|
|
|
6
|
|
||||
Net OTTI losses recognized in income
|
(16
|
)
|
|
(8
|
)
|
|
(79
|
)
|
|
(21
|
)
|
||||
Net realized gains (losses) excluding OTTI losses
|
(200
|
)
|
|
134
|
|
|
(531
|
)
|
|
58
|
|
||||
Total net realized gains (losses) (includes $2, $34, $(150), and $31 reclassified from AOCI)
|
(216
|
)
|
|
126
|
|
|
(610
|
)
|
|
37
|
|
||||
Total revenues
|
7,897
|
|
|
5,048
|
|
|
14,774
|
|
|
9,437
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Losses and loss expenses
|
4,254
|
|
|
2,417
|
|
|
7,928
|
|
|
4,539
|
|
||||
Policy benefits
|
146
|
|
|
153
|
|
|
272
|
|
|
295
|
|
||||
Policy acquisition costs
|
1,560
|
|
|
727
|
|
|
2,973
|
|
|
1,434
|
|
||||
Administrative expenses
|
829
|
|
|
578
|
|
|
1,601
|
|
|
1,132
|
|
||||
Interest expense
|
153
|
|
|
71
|
|
|
299
|
|
|
139
|
|
||||
Other (income) expense
|
(29
|
)
|
|
(38
|
)
|
|
(1
|
)
|
|
(73
|
)
|
||||
Amortization of purchased intangibles
|
5
|
|
|
55
|
|
|
12
|
|
|
85
|
|
||||
Chubb integration expenses
|
98
|
|
|
—
|
|
|
246
|
|
|
—
|
|
||||
Total expenses
|
7,016
|
|
|
3,963
|
|
|
13,330
|
|
|
7,551
|
|
||||
Income before income tax
|
881
|
|
|
1,085
|
|
|
1,444
|
|
|
1,886
|
|
||||
Income tax expense (includes $6, $10, $5 and $14 on reclassified unrealized gains and losses)
|
155
|
|
|
143
|
|
|
279
|
|
|
263
|
|
||||
Net income
|
$
|
726
|
|
|
$
|
942
|
|
|
$
|
1,165
|
|
|
$
|
1,623
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Unrealized appreciation (depreciation)
|
$
|
947
|
|
|
$
|
(816
|
)
|
|
$
|
1,852
|
|
|
$
|
(375
|
)
|
Reclassification adjustment for net realized (gains) losses included in net income
|
(2
|
)
|
|
(34
|
)
|
|
150
|
|
|
(31
|
)
|
||||
|
945
|
|
|
(850
|
)
|
|
2,002
|
|
|
(406
|
)
|
||||
Change in:
|
|
|
|
|
|
|
|
||||||||
Cumulative translation adjustment
|
81
|
|
|
136
|
|
|
393
|
|
|
(285
|
)
|
||||
Pension liability
|
1
|
|
|
(6
|
)
|
|
3
|
|
|
7
|
|
||||
Other comprehensive income (loss), before income tax
|
1,027
|
|
|
(720
|
)
|
|
2,398
|
|
|
(684
|
)
|
||||
Income tax (expense) benefit related to OCI items
|
(213
|
)
|
|
175
|
|
|
(482
|
)
|
|
100
|
|
||||
Other comprehensive income (loss)
|
814
|
|
|
(545
|
)
|
|
1,916
|
|
|
(584
|
)
|
||||
Comprehensive income
|
$
|
1,540
|
|
|
$
|
397
|
|
|
$
|
3,081
|
|
|
$
|
1,039
|
|
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
1.55
|
|
|
$
|
2.89
|
|
|
$
|
2.55
|
|
|
$
|
4.97
|
|
Diluted earnings per share
|
$
|
1.54
|
|
|
$
|
2.86
|
|
|
$
|
2.53
|
|
|
$
|
4.91
|
|
|
Six Months Ended
|
|
|||||
|
June 30
|
|
|||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Common Shares
|
|
|
|
||||
Balance – beginning of period
|
$
|
7,833
|
|
|
$
|
8,055
|
|
Shares issued for Chubb Corp acquisition
|
3,288
|
|
|
—
|
|
||
Dividends declared on Common Shares – par value reduction
|
—
|
|
|
(222
|
)
|
||
Balance – end of period
|
11,121
|
|
|
7,833
|
|
||
Common Shares in treasury
|
|
|
|
||||
Balance – beginning of period
|
(1,922
|
)
|
|
(1,448
|
)
|
||
Common Shares repurchased
|
—
|
|
|
(734
|
)
|
||
Net shares redeemed under employee share-based compensation plans
|
345
|
|
|
183
|
|
||
Balance – end of period
|
(1,577
|
)
|
|
(1,999
|
)
|
||
Additional paid-in capital
|
|
|
|
||||
Balance – beginning of period
|
4,481
|
|
|
5,145
|
|
||
Shares issued for Chubb Corp acquisition
|
11,916
|
|
|
—
|
|
||
Equity awards assumed in Chubb Corp acquisition
|
323
|
|
|
—
|
|
||
Net shares redeemed under employee share-based compensation plans
|
(358
|
)
|
|
(163
|
)
|
||
Exercise of stock options
|
(37
|
)
|
|
(29
|
)
|
||
Share-based compensation expense and other
|
170
|
|
|
111
|
|
||
Funding of dividends declared to Retained earnings
|
(637
|
)
|
|
(217
|
)
|
||
Balance – end of period
|
15,858
|
|
|
4,847
|
|
||
Retained earnings
|
|
|
|
||||
Balance – beginning of period
|
19,478
|
|
|
16,644
|
|
||
Net income
|
1,165
|
|
|
1,623
|
|
||
Funding of dividends declared from Additional paid-in capital
|
637
|
|
|
217
|
|
||
Dividends declared on Common Shares
|
(637
|
)
|
|
(217
|
)
|
||
Balance – end of period
|
20,643
|
|
|
18,267
|
|
||
Accumulated other comprehensive income (loss)
|
|
|
|
||||
Net unrealized appreciation on investments
|
|
|
|
||||
Balance – beginning of period
|
874
|
|
|
1,851
|
|
||
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $(477) and $81
|
1,375
|
|
|
(294
|
)
|
||
Amounts reclassified from AOCI, net of income tax benefit of $5 and $14
|
155
|
|
|
(17
|
)
|
||
Change in period, net of income tax benefit (expense) of $(472) and $95
|
1,530
|
|
|
(311
|
)
|
||
Balance – end of period
|
2,404
|
|
|
1,540
|
|
||
Cumulative translation adjustment
|
|
|
|
||||
Balance – beginning of period
|
(1,539
|
)
|
|
(581
|
)
|
||
Change in period, net of income tax benefit (expense) of $(11) and $7
|
382
|
|
|
(278
|
)
|
||
Balance – end of period
|
(1,157
|
)
|
|
(859
|
)
|
||
Pension liability adjustment
|
|
|
|
||||
Balance – beginning of period
|
(70
|
)
|
|
(79
|
)
|
||
Change in period, net of income tax benefit (expense) of $1 and $(2)
|
4
|
|
|
5
|
|
||
Balance – end of period
|
(66
|
)
|
|
(74
|
)
|
||
Accumulated other comprehensive income
|
1,181
|
|
|
607
|
|
||
Total shareholders’ equity
|
$
|
47,226
|
|
|
$
|
29,555
|
|
|
Six Months Ended June 30
|
|
|||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
1,165
|
|
|
$
|
1,623
|
|
Adjustments to reconcile net income to net cash flows from operating activities
|
|
|
|
||||
Net realized (gains) losses
|
610
|
|
|
(37
|
)
|
||
Amortization of premiums/discounts on fixed maturities
|
376
|
|
|
71
|
|
||
Amortization of UPR related to the Chubb Corp acquisition
|
1,095
|
|
|
—
|
|
||
Deferred income taxes
|
48
|
|
|
108
|
|
||
Unpaid losses and loss expenses
|
330
|
|
|
(87
|
)
|
||
Unearned premiums
|
(382
|
)
|
|
420
|
|
||
Future policy benefits
|
106
|
|
|
114
|
|
||
Insurance and reinsurance balances payable
|
193
|
|
|
532
|
|
||
Accounts payable, accrued expenses, and other liabilities
|
18
|
|
|
48
|
|
||
Income taxes payable
|
67
|
|
|
(120
|
)
|
||
Insurance and reinsurance balances receivable
|
(238
|
)
|
|
(332
|
)
|
||
Reinsurance recoverable on losses and loss expenses
|
(17
|
)
|
|
55
|
|
||
Reinsurance recoverable on policy benefits
|
(11
|
)
|
|
16
|
|
||
Deferred policy acquisition costs
|
(1,042
|
)
|
|
(236
|
)
|
||
Prepaid reinsurance premiums
|
12
|
|
|
(261
|
)
|
||
Other
|
(177
|
)
|
|
(23
|
)
|
||
Net cash flows from operating activities
|
2,153
|
|
|
1,891
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchases of fixed maturities available for sale
|
(17,077
|
)
|
|
(9,179
|
)
|
||
Purchases of to be announced mortgage-backed securities
|
—
|
|
|
(31
|
)
|
||
Purchases of fixed maturities held to maturity
|
(121
|
)
|
|
(24
|
)
|
||
Purchases of equity securities
|
(78
|
)
|
|
(70
|
)
|
||
Sales of fixed maturities available for sale
|
11,868
|
|
|
3,611
|
|
||
Sales of to be announced mortgage-backed securities
|
—
|
|
|
31
|
|
||
Sales of equity securities
|
932
|
|
|
102
|
|
||
Maturities and redemptions of fixed maturities available for sale
|
3,910
|
|
|
3,691
|
|
||
Maturities and redemptions of fixed maturities held to maturity
|
443
|
|
|
470
|
|
||
Net change in short-term investments
|
11,711
|
|
|
228
|
|
||
Net derivative instruments settlements
|
(93
|
)
|
|
(33
|
)
|
||
Acquisition of subsidiaries (net of cash acquired of $71 and $620)
|
(14,248
|
)
|
|
255
|
|
||
Other
|
81
|
|
|
(71
|
)
|
||
Net cash flows used for investing activities
|
(2,672
|
)
|
|
(1,020
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Dividends paid on Common Shares
|
(530
|
)
|
|
(427
|
)
|
||
Common Shares repurchased
|
—
|
|
|
(750
|
)
|
||
Proceeds from issuance of long-term debt
|
—
|
|
|
800
|
|
||
Proceeds from issuance of repurchase agreements
|
904
|
|
|
1,327
|
|
||
Repayment of long-term debt
|
—
|
|
|
(450
|
)
|
||
Repayment of repurchase agreements
|
(902
|
)
|
|
(1,327
|
)
|
||
Proceeds from share-based compensation plans, including windfall tax benefits
|
92
|
|
|
46
|
|
||
Policyholder contract deposits
|
274
|
|
|
235
|
|
||
Policyholder contract withdrawals
|
(103
|
)
|
|
(107
|
)
|
||
Other
|
(4
|
)
|
|
(6
|
)
|
||
Net cash flows used for financing activities
|
(269
|
)
|
|
(659
|
)
|
||
Effect of foreign currency rate changes on cash and cash equivalents
|
24
|
|
|
(77
|
)
|
||
Net (decrease) increase in cash
|
(764
|
)
|
|
135
|
|
||
Cash – beginning of period
|
1,775
|
|
|
655
|
|
||
Cash – end of period
|
$
|
1,011
|
|
|
$
|
790
|
|
Supplemental cash flow information
|
|
|
|
||||
Taxes paid
|
$
|
259
|
|
|
$
|
263
|
|
Interest paid
|
$
|
319
|
|
|
$
|
127
|
|
|
|
||
(in millions, except per share data)
|
|
||
Purchase consideration
|
|
||
Chubb Limited common shares
|
|
||
Chubb Corp common shares outstanding
|
228
|
|
|
Per share exchange ratio
|
0.6019
|
|
|
Common shares issued by Chubb Limited
|
137
|
|
|
Common share price of Chubb Limited at January 14, 2016
|
$
|
111.02
|
|
Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp
|
$
|
15,204
|
|
Cash consideration
|
|
||
Chubb Corp common shares outstanding
|
228
|
|
|
Agreed cash price per share paid to common shareholders of Chubb Corp
|
$
|
62.93
|
|
Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp
|
$
|
14,319
|
|
Stock-based awards
|
|
||
Fair value of equity awards issued
(1)
|
$
|
323
|
|
Fair value of purchase consideration
|
$
|
29,846
|
|
Preliminary estimate of assets acquired and (liabilities) assumed
|
|
||
Cash
|
$
|
71
|
|
Investments
|
42,967
|
|
|
Accrued investment income
|
337
|
|
|
Insurance and reinsurance balances receivable
|
2,981
|
|
|
Reinsurance recoverable on losses and loss expenses
|
1,650
|
|
|
Indefinite lived intangible assets
|
2,860
|
|
|
Finite lived intangible assets
|
4,795
|
|
|
Prepaid reinsurance premiums
|
280
|
|
|
Other assets
|
863
|
|
|
Unpaid losses and loss expenses
|
(22,906
|
)
|
|
Unearned premium
|
(7,033
|
)
|
|
Insurance and reinsurance balances payable
|
(511
|
)
|
|
Accounts payable, accrued expenses, and other liabilities
|
(1,935
|
)
|
|
Deferred tax liabilities
|
(1,334
|
)
|
|
Long-term debt
|
(3,765
|
)
|
|
Total identifiable net assets acquired
|
19,320
|
|
|
Goodwill
|
10,526
|
|
|
Purchase price
|
$
|
29,846
|
|
(1)
|
The estimated fair value of the replacement equity awards was $525 million, of which $323 million was attributed to service periods prior to the acquisition and was included in the purchase consideration. Refer to Note
10
for further information on these replacement equity awards.
|
(in millions of U.S. dollars)
|
Three Months Ended June 30, 2016
|
|
|
January 14, 2016 to June 30, 2016
|
|
||
Total revenues
|
$
|
2,745
|
|
|
$
|
5,232
|
|
Net income
|
$
|
326
|
|
|
$
|
581
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars, except per share data)
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||
Total revenues
|
$
|
7,915
|
|
|
$
|
8,378
|
|
|
$
|
15,237
|
|
|
$
|
16,073
|
|
Net income
|
$
|
712
|
|
|
$
|
1,199
|
|
|
$
|
1,246
|
|
|
$
|
2,158
|
|
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
1.52
|
|
|
$
|
2.57
|
|
|
$
|
2.67
|
|
|
$
|
4.62
|
|
Diluted earnings per share
|
$
|
1.51
|
|
|
$
|
2.55
|
|
|
$
|
2.65
|
|
|
$
|
4.57
|
|
June 30, 2016
|
Amortized
Cost
|
|
|
Gross
Unrealized
Appreciation
|
|
|
Gross
Unrealized
Depreciation
|
|
|
Fair
Value
|
|
|
OTTI Recognized
in AOCI
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Available for sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
2,595
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
2,698
|
|
|
$
|
—
|
|
Foreign
|
21,633
|
|
|
916
|
|
|
(69
|
)
|
|
22,480
|
|
|
(13
|
)
|
|||||
Corporate securities
|
21,714
|
|
|
846
|
|
|
(125
|
)
|
|
22,435
|
|
|
(16
|
)
|
|||||
Mortgage-backed securities
|
12,369
|
|
|
400
|
|
|
(5
|
)
|
|
12,764
|
|
|
(1
|
)
|
|||||
States, municipalities, and political subdivisions
|
19,125
|
|
|
454
|
|
|
(5
|
)
|
|
19,574
|
|
|
—
|
|
|||||
|
$
|
77,436
|
|
|
$
|
2,719
|
|
|
$
|
(204
|
)
|
|
$
|
79,951
|
|
|
$
|
(30
|
)
|
Held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
686
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
716
|
|
|
$
|
—
|
|
Foreign
|
730
|
|
|
44
|
|
|
(1
|
)
|
|
773
|
|
|
—
|
|
|||||
Corporate securities
|
2,882
|
|
|
137
|
|
|
(4
|
)
|
|
3,015
|
|
|
—
|
|
|||||
Mortgage-backed securities
|
1,600
|
|
|
77
|
|
|
(1
|
)
|
|
1,676
|
|
|
—
|
|
|||||
States, municipalities, and political subdivisions
|
5,192
|
|
|
209
|
|
|
—
|
|
|
5,401
|
|
|
—
|
|
|||||
|
$
|
11,090
|
|
|
$
|
497
|
|
|
$
|
(6
|
)
|
|
$
|
11,581
|
|
|
$
|
—
|
|
December 31, 2015
|
Amortized
Cost
|
|
|
Gross
Unrealized
Appreciation
|
|
|
Gross
Unrealized
Depreciation
|
|
|
Fair
Value
|
|
|
OTTI Recognized
in AOCI
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Available for sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
2,481
|
|
|
$
|
52
|
|
|
$
|
(5
|
)
|
|
$
|
2,528
|
|
|
$
|
—
|
|
Foreign
|
13,190
|
|
|
468
|
|
|
(213
|
)
|
|
13,445
|
|
|
(13
|
)
|
|||||
Corporate securities
|
15,028
|
|
|
355
|
|
|
(454
|
)
|
|
14,929
|
|
|
(28
|
)
|
|||||
Mortgage-backed securities
|
9,827
|
|
|
183
|
|
|
(52
|
)
|
|
9,958
|
|
|
(1
|
)
|
|||||
States, municipalities, and political subdivisions
|
2,623
|
|
|
110
|
|
|
(6
|
)
|
|
2,727
|
|
|
—
|
|
|||||
|
$
|
43,149
|
|
|
$
|
1,168
|
|
|
$
|
(730
|
)
|
|
$
|
43,587
|
|
|
$
|
(42
|
)
|
Held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
733
|
|
|
$
|
13
|
|
|
$
|
(1
|
)
|
|
$
|
745
|
|
|
$
|
—
|
|
Foreign
|
763
|
|
|
30
|
|
|
(8
|
)
|
|
785
|
|
|
—
|
|
|||||
Corporate securities
|
3,054
|
|
|
57
|
|
|
(55
|
)
|
|
3,056
|
|
|
—
|
|
|||||
Mortgage-backed securities
|
1,707
|
|
|
38
|
|
|
(2
|
)
|
|
1,743
|
|
|
—
|
|
|||||
States, municipalities, and political subdivisions
|
2,173
|
|
|
52
|
|
|
(2
|
)
|
|
2,223
|
|
|
—
|
|
|||||
|
$
|
8,430
|
|
|
$
|
190
|
|
|
$
|
(68
|
)
|
|
$
|
8,552
|
|
|
$
|
—
|
|
|
|
|
June 30
|
|
|
|
|
December 31
|
|
||||||
|
|
|
2016
|
|
|
|
|
2015
|
|
||||||
(in millions of U.S. dollars)
|
Amortized Cost
|
|
|
Fair Value
|
|
|
Amortized Cost
|
|
|
Fair Value
|
|
||||
Available for sale
|
|
|
|
|
|
|
|
||||||||
Due in 1 year or less
|
$
|
3,485
|
|
|
$
|
3,501
|
|
|
$
|
1,856
|
|
|
$
|
1,865
|
|
Due after 1 year through 5 years
|
25,540
|
|
|
26,174
|
|
|
14,936
|
|
|
15,104
|
|
||||
Due after 5 years through 10 years
|
25,905
|
|
|
26,685
|
|
|
12,258
|
|
|
12,173
|
|
||||
Due after 10 years
|
10,137
|
|
|
10,827
|
|
|
4,272
|
|
|
4,487
|
|
||||
|
65,067
|
|
|
67,187
|
|
|
33,322
|
|
|
33,629
|
|
||||
Mortgage-backed securities
|
12,369
|
|
|
12,764
|
|
|
9,827
|
|
|
9,958
|
|
||||
|
$
|
77,436
|
|
|
$
|
79,951
|
|
|
$
|
43,149
|
|
|
$
|
43,587
|
|
Held to maturity
|
|
|
|
|
|
|
|
||||||||
Due in 1 year or less
|
$
|
368
|
|
|
$
|
372
|
|
|
$
|
492
|
|
|
$
|
495
|
|
Due after 1 year through 5 years
|
2,614
|
|
|
2,716
|
|
|
2,443
|
|
|
2,517
|
|
||||
Due after 5 years through 10 years
|
2,942
|
|
|
3,063
|
|
|
2,292
|
|
|
2,313
|
|
||||
Due after 10 years
|
3,566
|
|
|
3,754
|
|
|
1,496
|
|
|
1,484
|
|
||||
|
9,490
|
|
|
9,905
|
|
|
6,723
|
|
|
6,809
|
|
||||
Mortgage-backed securities
|
1,600
|
|
|
1,676
|
|
|
1,707
|
|
|
1,743
|
|
||||
|
$
|
11,090
|
|
|
$
|
11,581
|
|
|
$
|
8,430
|
|
|
$
|
8,552
|
|
|
June 30
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Cost
|
$
|
703
|
|
|
$
|
441
|
|
Gross unrealized appreciation
|
103
|
|
|
74
|
|
||
Gross unrealized depreciation
|
(19
|
)
|
|
(18
|
)
|
||
Fair value
|
$
|
787
|
|
|
$
|
497
|
|
•
|
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.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
2016
|
|
|
2015
|
|
||||
Fixed maturities:
|
|
|
|
|
|
|
||||||||
OTTI on fixed maturities, gross
|
$
|
(11
|
)
|
|
$
|
(13
|
)
|
$
|
(78
|
)
|
|
$
|
(26
|
)
|
OTTI on fixed maturities recognized in OCI (pre-tax)
|
—
|
|
|
6
|
|
8
|
|
|
6
|
|
||||
OTTI on fixed maturities, net
|
(11
|
)
|
|
(7
|
)
|
(70
|
)
|
|
(20
|
)
|
||||
Gross realized gains excluding OTTI
|
37
|
|
|
28
|
|
102
|
|
|
72
|
|
||||
Gross realized losses excluding OTTI
|
(19
|
)
|
|
(16
|
)
|
(215
|
)
|
|
(51
|
)
|
||||
Total fixed maturities
|
7
|
|
|
5
|
|
(183
|
)
|
|
1
|
|
||||
Equity securities:
|
|
|
|
|
|
|
||||||||
OTTI on equity securities
|
(5
|
)
|
|
(1
|
)
|
(6
|
)
|
|
(1
|
)
|
||||
Gross realized gains excluding OTTI
|
4
|
|
|
30
|
|
44
|
|
|
33
|
|
||||
Gross realized losses excluding OTTI
|
(4
|
)
|
|
—
|
|
(5
|
)
|
|
(2
|
)
|
||||
Total equity securities
|
(5
|
)
|
|
29
|
|
33
|
|
|
30
|
|
||||
OTTI on other investments
|
—
|
|
|
—
|
|
(3
|
)
|
|
—
|
|
||||
Foreign exchange gains (losses)
|
(22
|
)
|
|
(40
|
)
|
17
|
|
|
(71
|
)
|
||||
Investment and embedded derivative instruments
|
(47
|
)
|
|
27
|
|
(86
|
)
|
|
28
|
|
||||
Fair value adjustments on insurance derivative
|
(131
|
)
|
|
104
|
|
(359
|
)
|
|
59
|
|
||||
S&P put options and futures
|
(28
|
)
|
|
(2
|
)
|
(43
|
)
|
|
(14
|
)
|
||||
Other derivative instruments
|
—
|
|
|
(1
|
)
|
(2
|
)
|
|
(1
|
)
|
||||
Other
|
10
|
|
|
4
|
|
16
|
|
|
5
|
|
||||
Net realized gains (losses)
|
$
|
(216
|
)
|
|
$
|
126
|
|
$
|
(610
|
)
|
|
$
|
37
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
2016
|
|
|
2015
|
|
||||
Balance of credit losses related to securities still held – beginning of period
|
$
|
57
|
|
|
$
|
22
|
|
$
|
53
|
|
|
$
|
28
|
|
Additions where no OTTI was previously recorded
|
1
|
|
|
4
|
|
12
|
|
|
7
|
|
||||
Additions where an OTTI was previously recorded
|
6
|
|
|
1
|
|
12
|
|
|
2
|
|
||||
Reductions for securities sold during the period
|
(13
|
)
|
|
(4
|
)
|
(26
|
)
|
|
(14
|
)
|
||||
Balance of credit losses related to securities still held – end of period
|
$
|
51
|
|
|
$
|
23
|
|
$
|
51
|
|
|
$
|
23
|
|
|
0 – 12 Months
|
|
|
Over 12 Months
|
|
|
Total
|
|
|||||||||||||||
June 30, 2016
|
Fair Value
|
|
|
Gross
Unrealized
Loss
|
|
|
Fair Value
|
|
|
Gross
Unrealized
Loss
|
|
|
Fair Value
|
|
|
Gross
Unrealized
Loss
|
|
||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||
Foreign
|
$
|
2,266
|
|
|
$
|
(27
|
)
|
|
$
|
673
|
|
|
$
|
(43
|
)
|
|
$
|
2,939
|
|
|
$
|
(70
|
)
|
Corporate securities
|
2,855
|
|
|
(61
|
)
|
|
1,047
|
|
|
(68
|
)
|
|
3,902
|
|
|
(129
|
)
|
||||||
Mortgage-backed securities
|
481
|
|
|
(3
|
)
|
|
414
|
|
|
(3
|
)
|
|
895
|
|
|
(6
|
)
|
||||||
States, municipalities, and political subdivisions
|
1,308
|
|
|
(4
|
)
|
|
60
|
|
|
(1
|
)
|
|
1,368
|
|
|
(5
|
)
|
||||||
Total fixed maturities
|
6,910
|
|
|
(95
|
)
|
|
2,194
|
|
|
(115
|
)
|
|
9,104
|
|
|
(210
|
)
|
||||||
Equity securities
|
186
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
186
|
|
|
(19
|
)
|
||||||
Other investments
|
280
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
280
|
|
|
(27
|
)
|
||||||
Total
|
$
|
7,376
|
|
|
$
|
(141
|
)
|
|
$
|
2,194
|
|
|
$
|
(115
|
)
|
|
$
|
9,570
|
|
|
$
|
(256
|
)
|
|
0 – 12 Months
|
|
|
Over 12 Months
|
|
|
Total
|
|
|||||||||||||||
December 31, 2015
|
Fair Value
|
|
|
Gross
Unrealized
Loss
|
|
|
Fair Value
|
|
|
Gross
Unrealized
Loss
|
|
|
Fair Value
|
|
|
Gross
Unrealized
Loss
|
|
||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and agency
|
$
|
996
|
|
|
$
|
(5
|
)
|
|
$
|
153
|
|
|
$
|
(1
|
)
|
|
$
|
1,149
|
|
|
$
|
(6
|
)
|
Foreign
|
3,953
|
|
|
(148
|
)
|
|
436
|
|
|
(73
|
)
|
|
4,389
|
|
|
(221
|
)
|
||||||
Corporate securities
|
7,518
|
|
|
(371
|
)
|
|
738
|
|
|
(138
|
)
|
|
8,256
|
|
|
(509
|
)
|
||||||
Mortgage-backed securities
|
3,399
|
|
|
(42
|
)
|
|
516
|
|
|
(12
|
)
|
|
3,915
|
|
|
(54
|
)
|
||||||
States, municipalities, and political subdivisions
|
556
|
|
|
(6
|
)
|
|
42
|
|
|
(2
|
)
|
|
598
|
|
|
(8
|
)
|
||||||
Total fixed maturities
|
16,422
|
|
|
(572
|
)
|
|
1,885
|
|
|
(226
|
)
|
|
18,307
|
|
|
(798
|
)
|
||||||
Equity securities
|
131
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
131
|
|
|
(18
|
)
|
||||||
Other investments
|
210
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
210
|
|
|
(11
|
)
|
||||||
Total
|
$
|
16,763
|
|
|
$
|
(601
|
)
|
|
$
|
1,885
|
|
|
$
|
(226
|
)
|
|
$
|
18,648
|
|
|
$
|
(827
|
)
|
|
June 30
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Trust funds
|
$
|
12,271
|
|
|
$
|
11,862
|
|
Deposits with non-U.S. regulatory authorities
|
2,340
|
|
|
2,075
|
|
||
Deposits with U.S. regulatory authorities
|
2,241
|
|
|
1,242
|
|
||
Assets pledged under repurchase agreements
|
1,457
|
|
|
1,459
|
|
||
Other pledged assets
|
409
|
|
|
392
|
|
||
|
$
|
18,718
|
|
|
$
|
17,030
|
|
•
|
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
|
June 30, 2016
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
(in millions of U.S. dollars)
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities available for sale
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency
|
$
|
2,155
|
|
|
$
|
543
|
|
|
$
|
—
|
|
|
$
|
2,698
|
|
Foreign
|
—
|
|
|
22,393
|
|
|
87
|
|
|
22,480
|
|
||||
Corporate securities
|
—
|
|
|
22,154
|
|
|
281
|
|
|
22,435
|
|
||||
Mortgage-backed securities
|
—
|
|
|
12,715
|
|
|
49
|
|
|
12,764
|
|
||||
States, municipalities, and political subdivisions
|
—
|
|
|
19,574
|
|
|
—
|
|
|
19,574
|
|
||||
|
2,155
|
|
|
77,379
|
|
|
417
|
|
|
79,951
|
|
||||
Equity securities
|
750
|
|
|
—
|
|
|
37
|
|
|
787
|
|
||||
Short-term investments
|
2,321
|
|
|
1,260
|
|
|
50
|
|
|
3,631
|
|
||||
Other investments
(1)
|
369
|
|
|
240
|
|
|
216
|
|
|
825
|
|
||||
Securities lending collateral
|
—
|
|
|
1,142
|
|
|
—
|
|
|
1,142
|
|
||||
Investment derivative instruments
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Other derivative instruments
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Separate account assets
|
1,592
|
|
|
95
|
|
|
—
|
|
|
1,687
|
|
||||
Total assets measured at fair value
(1)
|
$
|
7,212
|
|
|
$
|
80,116
|
|
|
$
|
720
|
|
|
$
|
88,048
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Investment derivative instruments
|
$
|
71
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
71
|
|
Other derivative instruments
|
4
|
|
|
—
|
|
|
10
|
|
|
14
|
|
||||
GLB
(2)
|
—
|
|
|
—
|
|
|
971
|
|
|
971
|
|
||||
Total liabilities measured at fair value
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
981
|
|
|
$
|
1,056
|
|
(1)
|
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $
3,537 million
and other investments of $
25 million
at June 30, 2016 measured using NAV as a practical expedient.
|
(2)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note
5
for additional information.
|
December 31, 2015
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
(in millions of U.S. dollars)
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities available for sale
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency
|
$
|
1,712
|
|
|
$
|
816
|
|
|
$
|
—
|
|
|
$
|
2,528
|
|
Foreign
|
—
|
|
|
13,388
|
|
|
57
|
|
|
13,445
|
|
||||
Corporate securities
|
—
|
|
|
14,755
|
|
|
174
|
|
|
14,929
|
|
||||
Mortgage-backed securities
|
—
|
|
|
9,905
|
|
|
53
|
|
|
9,958
|
|
||||
States, municipalities, and political subdivisions
|
—
|
|
|
2,727
|
|
|
—
|
|
|
2,727
|
|
||||
|
1,712
|
|
|
41,591
|
|
|
284
|
|
|
43,587
|
|
||||
Equity securities
|
481
|
|
|
—
|
|
|
16
|
|
|
497
|
|
||||
Short-term investments
|
7,171
|
|
|
3,275
|
|
|
—
|
|
|
10,446
|
|
||||
Other investments
(1)
|
347
|
|
|
230
|
|
|
212
|
|
|
789
|
|
||||
Securities lending collateral
|
—
|
|
|
1,046
|
|
|
—
|
|
|
1,046
|
|
||||
Investment derivative instruments
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||
Separate account assets
|
1,464
|
|
|
88
|
|
|
—
|
|
|
1,552
|
|
||||
Total assets measured at fair value
(1)
|
$
|
11,187
|
|
|
$
|
46,230
|
|
|
$
|
512
|
|
|
$
|
57,929
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Investment derivative instruments
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
Other derivative instruments
|
4
|
|
|
—
|
|
|
6
|
|
|
10
|
|
||||
GLB
(2)
|
—
|
|
|
—
|
|
|
609
|
|
|
609
|
|
||||
Total liabilities measured at fair value
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
615
|
|
|
$
|
632
|
|
(1)
|
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of
$2,477 million
and other investments of
$25 million
at December 31, 2015 measured using NAV as a practical expedient.
|
(2)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note
5
for additional information.
|
|
|
|
|
|
June 30
|
|
|
|
|
December 31
|
|
||||||
|
Expected
Liquidation
Period of Underlying Assets
|
|
|
|
2016
|
|
|
|
|
2015
|
|
||||||
(in millions of U.S. dollars)
|
Fair
Value
|
|
|
Maximum
Future Funding
Commitments
|
|
|
Fair
Value
|
|
|
Maximum
Future Funding
Commitments
|
|
||||||
Financial
|
5 to 9 Years
|
|
$
|
571
|
|
|
$
|
201
|
|
|
$
|
300
|
|
|
$
|
105
|
|
Real Assets
|
3 to 7 Years
|
|
520
|
|
|
304
|
|
|
474
|
|
|
140
|
|
||||
Distressed
|
5 to 9 Years
|
|
456
|
|
|
200
|
|
|
261
|
|
|
218
|
|
||||
Private Credit
|
3 to 7 Years
|
|
262
|
|
|
335
|
|
|
265
|
|
|
209
|
|
||||
Traditional
|
3 to 9 Years
|
|
1,451
|
|
|
1,054
|
|
|
895
|
|
|
152
|
|
||||
Vintage
|
1 to 2 Years
|
|
34
|
|
|
14
|
|
|
13
|
|
|
—
|
|
||||
Investment funds
|
Not Applicable
|
|
243
|
|
|
—
|
|
|
269
|
|
|
—
|
|
||||
|
|
|
$
|
3,537
|
|
|
$
|
2,108
|
|
|
$
|
2,477
|
|
|
$
|
824
|
|
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
|
|
|
Valuation
Technique
|
|
Significant
Unobservable Inputs
|
|
Ranges
|
|||||
June 30, 2016
|
|
|
December 31, 2015
|
|
|
|
|
||||||
GLB
(1)
|
$
|
971
|
|
|
$
|
609
|
|
|
Actuarial model
|
|
Lapse rate
|
|
1% – 30%
|
|
|
|
|
|
|
|
Annuitization rate
|
|
0% – 55%
|
(1)
|
Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note
4
a) Guaranteed living benefits.
|
|
Assets
|
|
|
|
Liabilities
|
|
|||||||||||||||||||||||
Three Months Ended
|
|
Available-for-Sale Debt Securities
|
|
|
Equity
securities
|
|
Short-term investments
|
|
Other
investments
|
|
|
Other
derivative
instruments
|
|
GLB
(1)
|
|
||||||||||||||
June 30, 2016
|
|
Foreign
|
|
|
Corporate
securities
|
|
|
MBS
|
|
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||||||||
Balance–Beginning of Period
|
|
$
|
62
|
|
|
$
|
261
|
|
|
$
|
48
|
|
|
$
|
29
|
|
$
|
—
|
|
$
|
211
|
|
|
$
|
10
|
|
$
|
839
|
|
Transfers into Level 3
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Change in Net Unrealized Gains (Losses) included in OCI
|
|
3
|
|
|
9
|
|
|
—
|
|
|
(1
|
)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Net Realized Gains/Losses
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
1
|
|
—
|
|
—
|
|
|
—
|
|
132
|
|
||||||||
Purchases
|
|
27
|
|
|
31
|
|
|
1
|
|
|
10
|
|
50
|
|
8
|
|
|
—
|
|
—
|
|
||||||||
Sales
|
|
(7
|
)
|
|
(16
|
)
|
|
—
|
|
|
(2
|
)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Settlements
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
—
|
|
(3
|
)
|
|
—
|
|
—
|
|
||||||||
Balance–End of Period
|
|
$
|
87
|
|
|
$
|
281
|
|
|
$
|
49
|
|
|
$
|
37
|
|
$
|
50
|
|
$
|
216
|
|
|
$
|
10
|
|
$
|
971
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
132
|
|
(1)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note
5
for additional information.
|
|
|
Assets
|
|
|
|
|
Liabilities
|
|
||||||||||||||||||||
Three Months Ended
|
|
Available-for-Sale Debt Securities
|
|
|
Equity
securities |
|
|
Other
investments |
|
|
Other derivative instruments
|
|
|
GLB
(1)
|
|
|||||||||||||
June 30, 2015
|
|
Foreign
|
|
|
Corporate
securities |
|
|
MBS
|
|
|
|
|
||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
||||||||||||||||||||||
Balance–Beginning of Period
|
|
$
|
22
|
|
|
$
|
167
|
|
|
$
|
33
|
|
|
$
|
2
|
|
|
$
|
208
|
|
|
$
|
4
|
|
|
$
|
451
|
|
Transfers into Level 3
|
|
28
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Change in Net Unrealized Gains (Losses) included in OCI
|
|
(2
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||||||
Net Realized Gains/Losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(104
|
)
|
|||||||
Purchases
|
|
8
|
|
|
8
|
|
|
23
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||||||
Sales
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Settlements
|
|
—
|
|
|
(15
|
)
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||||||
Balance–End of Period
|
|
$
|
56
|
|
|
$
|
167
|
|
|
$
|
55
|
|
|
$
|
2
|
|
|
$
|
214
|
|
|
$
|
3
|
|
|
$
|
347
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(104
|
)
|
(1)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was
$615
million at
June 30, 2015
, and
$716
million at March 31, 2015, which includes a fair value derivative adjustment of
$347
million and
$451
million, respectively.
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
Liabilities
|
|
||||||||||||||
Six Months Ended
|
Available-for-Sale Debt Securities
|
|
|
Equity
securities |
|
Short-term investments
|
|
Other
investments |
|
|
Other
derivative instruments |
|
GLB
(1)
|
|
||||||||||||||
June 30, 2016
|
Foreign
|
|
|
Corporate
securities |
|
|
MBS
|
|
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
||||||||||||||||||||||||
Balance–Beginning of Period
|
$
|
57
|
|
|
$
|
174
|
|
|
$
|
53
|
|
|
$
|
16
|
|
$
|
—
|
|
$
|
212
|
|
|
$
|
6
|
|
$
|
609
|
|
Transfers into Level 3
|
9
|
|
|
18
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Transfers out of Level 3
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Change in Net Unrealized Gains (Losses) included in OCI
|
9
|
|
|
11
|
|
|
—
|
|
|
(1
|
)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Net Realized Gains/Losses
|
(6
|
)
|
|
(8
|
)
|
|
—
|
|
|
1
|
|
—
|
|
—
|
|
|
2
|
|
362
|
|
||||||||
Purchases
(2)
|
32
|
|
|
124
|
|
|
1
|
|
|
23
|
|
50
|
|
14
|
|
|
2
|
|
—
|
|
||||||||
Sales
|
(8
|
)
|
|
(30
|
)
|
|
(5
|
)
|
|
(2
|
)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Settlements
|
(4
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
—
|
|
(10
|
)
|
|
—
|
|
—
|
|
||||||||
Balance–End of Period
|
$
|
87
|
|
|
$
|
281
|
|
|
$
|
49
|
|
|
$
|
37
|
|
$
|
50
|
|
$
|
216
|
|
|
$
|
10
|
|
$
|
971
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
$
|
(5
|
)
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
2
|
|
$
|
362
|
|
(1)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note
5
for additional information.
|
(2)
|
Includes acquired invested assets as a result of the Chubb Corp acquisition.
|
|
|
Assets
|
|
|
|
Liabilities
|
|
||||||||||||||||||||
Six Months Ended
|
|
Available-for-Sale Debt Securities
|
|
|
|
|
Other investments
|
|
|
Other
derivative instruments |
|
GLB
(1)
|
|
||||||||||||||
June 30, 2015
|
|
Foreign
|
|
|
Corporate
securities |
|
|
MBS
|
|
|
Equity
securities |
|
|
|
|||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance–Beginning of Period
|
|
$
|
22
|
|
|
$
|
187
|
|
|
$
|
15
|
|
|
$
|
2
|
|
|
$
|
204
|
|
|
$
|
4
|
|
$
|
406
|
|
Transfers into Level 3
|
|
28
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||||
Change in Net Unrealized Gains (Losses) included in OCI
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||||
Net Realized Gains/Losses
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
(59
|
)
|
|||||||
Purchases
|
|
9
|
|
|
16
|
|
|
41
|
|
|
1
|
|
|
16
|
|
|
—
|
|
—
|
|
|||||||
Sales
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||||
Settlements
|
|
—
|
|
|
(41
|
)
|
|
(1
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
—
|
|
|||||||
Balance–End of Period
|
|
$
|
56
|
|
|
$
|
167
|
|
|
$
|
55
|
|
|
$
|
2
|
|
|
$
|
214
|
|
|
$
|
3
|
|
$
|
347
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
$
|
(59
|
)
|
(1)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was
$615
million at
June 30, 2015
, and $
663 million
at December 31, 2014, which includes a fair value derivative adjustment of
$347
million and $
406 million
, respectively.
|
June 30, 2016
|
Fair Value
|
|
|
Carrying Value
|
|
||||||||||||||
(in millions of U.S. dollars)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
605
|
|
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
716
|
|
|
$
|
686
|
|
Foreign
|
—
|
|
|
773
|
|
|
—
|
|
|
773
|
|
|
730
|
|
|||||
Corporate securities
|
—
|
|
|
3,002
|
|
|
13
|
|
|
3,015
|
|
|
2,882
|
|
|||||
Mortgage-backed securities
|
—
|
|
|
1,676
|
|
|
—
|
|
|
1,676
|
|
|
1,600
|
|
|||||
States, municipalities, and political subdivisions
|
—
|
|
|
5,401
|
|
|
—
|
|
|
5,401
|
|
|
5,192
|
|
|||||
Total assets
|
$
|
605
|
|
|
$
|
10,963
|
|
|
$
|
13
|
|
|
$
|
11,581
|
|
|
$
|
11,090
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
$
|
—
|
|
|
$
|
1,405
|
|
|
$
|
—
|
|
|
$
|
1,405
|
|
|
$
|
1,405
|
|
Short-term debt
|
—
|
|
|
514
|
|
|
—
|
|
|
514
|
|
|
500
|
|
|||||
Long-term debt
|
—
|
|
|
13,633
|
|
|
—
|
|
|
13,633
|
|
|
12,631
|
|
|||||
Trust preferred securities
|
—
|
|
|
451
|
|
|
—
|
|
|
451
|
|
|
308
|
|
|||||
Total liabilities
|
$
|
—
|
|
|
$
|
16,003
|
|
|
$
|
—
|
|
|
$
|
16,003
|
|
|
$
|
14,844
|
|
December 31, 2015
|
Fair Value
|
|
|
Carrying Value
|
|
||||||||||||||
(in millions of U.S. dollars)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
583
|
|
|
$
|
162
|
|
|
$
|
—
|
|
|
$
|
745
|
|
|
$
|
733
|
|
Foreign
|
—
|
|
|
785
|
|
|
—
|
|
|
785
|
|
|
763
|
|
|||||
Corporate securities
|
—
|
|
|
3,042
|
|
|
14
|
|
|
3,056
|
|
|
3,054
|
|
|||||
Mortgage-backed securities
|
—
|
|
|
1,743
|
|
|
—
|
|
|
1,743
|
|
|
1,707
|
|
|||||
States, municipalities, and political subdivisions
|
—
|
|
|
2,223
|
|
|
—
|
|
|
2,223
|
|
|
2,173
|
|
|||||
Total assets
|
$
|
583
|
|
|
$
|
7,955
|
|
|
$
|
14
|
|
|
$
|
8,552
|
|
|
$
|
8,430
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
$
|
—
|
|
|
$
|
1,404
|
|
|
$
|
—
|
|
|
$
|
1,404
|
|
|
$
|
1,404
|
|
Long-term debt
|
—
|
|
|
9,678
|
|
|
—
|
|
|
9,678
|
|
|
9,389
|
|
|||||
Trust preferred securities
|
—
|
|
|
446
|
|
|
—
|
|
|
446
|
|
|
307
|
|
|||||
Total liabilities
|
$
|
—
|
|
|
$
|
11,528
|
|
|
$
|
—
|
|
|
$
|
11,528
|
|
|
$
|
11,100
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||
GMDB
|
|
|
|
|
|
|
|
||||||||
Net premiums earned
|
$
|
13
|
|
|
$
|
16
|
|
|
$
|
27
|
|
|
$
|
32
|
|
Policy benefits and other reserve adjustments
|
$
|
15
|
|
|
$
|
11
|
|
|
$
|
23
|
|
|
$
|
20
|
|
GLB
|
|
|
|
|
|
|
|
||||||||
Net premiums earned
|
$
|
31
|
|
|
$
|
30
|
|
|
$
|
60
|
|
|
$
|
62
|
|
Policy benefits and other reserve adjustments
|
4
|
|
|
7
|
|
|
15
|
|
|
19
|
|
||||
Net realized gains (losses)
|
(137
|
)
|
|
104
|
|
|
(371
|
)
|
|
59
|
|
||||
Loss recognized in Net income
|
$
|
(110
|
)
|
|
$
|
127
|
|
|
$
|
(326
|
)
|
|
$
|
102
|
|
Less: Net cash received
|
24
|
|
|
26
|
|
|
42
|
|
|
54
|
|
||||
Net (increase) decrease in liability
|
$
|
(134
|
)
|
|
$
|
101
|
|
|
$
|
(368
|
)
|
|
$
|
48
|
|
(in millions of U.S. dollars)
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global Reinsurance
|
|
|
Life Insurance
|
|
|
Chubb Consolidated
|
|
|||||||
Balance at December 31, 2015
|
$
|
1,203
|
|
|
$
|
196
|
|
|
$
|
134
|
|
|
$
|
2,078
|
|
|
$
|
365
|
|
|
$
|
820
|
|
|
$
|
4,796
|
|
Acquisition of Chubb Corp
|
5,712
|
|
|
2,025
|
|
|
—
|
|
|
2,789
|
|
|
—
|
|
|
—
|
|
|
10,526
|
|
|||||||
Foreign exchange revaluation
|
58
|
|
|
18
|
|
|
—
|
|
|
126
|
|
|
—
|
|
|
1
|
|
|
203
|
|
|||||||
Balance at June 30, 2016
|
$
|
6,973
|
|
|
$
|
2,239
|
|
|
$
|
134
|
|
|
$
|
4,993
|
|
|
$
|
365
|
|
|
$
|
821
|
|
|
$
|
15,525
|
|
(in millions of U.S. dollars)
|
Preliminary purchase price allocation
|
|
|
Estimated useful life
|
|
Definite life
|
|
|
|
||
Unearned premium reserves (UPR) intangible asset
|
$
|
1,550
|
|
|
1 year
|
Agency distribution relationships and renewal rights
|
3,150
|
|
|
24 years
|
|
Internally developed technology
|
95
|
|
|
3 years
|
|
Indefinite life
|
|
|
|
||
Trademarks
|
2,800
|
|
|
Indefinite
|
|
Licenses
|
50
|
|
|
Indefinite
|
|
Syndicate capacity
|
10
|
|
|
Indefinite
|
|
Total identified intangible assets
|
$
|
7,655
|
|
|
|
|
Associated with the Chubb Corp Acquisition
|
|
|
|
||||||||||||||
For the Year Ending December 31
(in millions of U.S. dollars)
|
Agency distribution relationships and renewal rights
|
|
Internally developed technology
|
|
Fair value adjustment to Unpaid losses and loss expense
|
|
Total
|
|
Other intangible assets
|
|
Total Amortization of purchased intangibles
|
|
||||||
Third quarter of 2016
|
$
|
33
|
|
$
|
8
|
|
$
|
(61
|
)
|
$
|
(20
|
)
|
$
|
23
|
|
$
|
3
|
|
Fourth quarter of 2016
|
33
|
|
8
|
|
(61
|
)
|
(20
|
)
|
23
|
|
3
|
|
||||||
2017
|
296
|
|
32
|
|
(160
|
)
|
168
|
|
85
|
|
253
|
|
||||||
2018
|
324
|
|
32
|
|
(101
|
)
|
255
|
|
74
|
|
329
|
|
||||||
2019
|
281
|
|
—
|
|
(62
|
)
|
219
|
|
66
|
|
285
|
|
||||||
2020
|
240
|
|
—
|
|
(35
|
)
|
205
|
|
59
|
|
264
|
|
||||||
2021
|
217
|
|
—
|
|
(20
|
)
|
197
|
|
53
|
|
250
|
|
||||||
Total
|
$
|
1,424
|
|
$
|
80
|
|
$
|
(500
|
)
|
$
|
1,004
|
|
$
|
383
|
|
$
|
1,387
|
|
|
Associated with the Chubb Corp Acquisition
|
|
|
For the Year Ending December 31, 2016
(in millions of U.S. dollars) |
Amortization of UPR intangible asset
|
|
|
Third quarter of 2016
|
$
|
320
|
|
Fourth quarter of 2016
|
144
|
|
|
Total
|
$
|
464
|
|
|
June 30
|
|
|
December 31
|
|
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
Early Redemption Option
|
||
Repurchase agreements (weighted average interest rate of 0.8% in 2016 and 0.6% in 2015)
|
$
|
1,405
|
|
|
$
|
1,404
|
|
|
None
|
Short-term debt
|
|
|
|
|
|
||||
Chubb INA senior notes:
|
|
|
|
|
|
||||
$500 million 5.7% due February 2017
|
$
|
500
|
|
|
$
|
—
|
|
|
Make-whole premium plus 0.20%
|
Total short-term debt
|
$
|
500
|
|
|
$
|
—
|
|
|
|
Long-term debt
|
|
|
|
|
|
||||
Chubb INA senior notes:
|
|
|
|
|
|
||||
$500 million 5.7% due February 2017
|
$
|
—
|
|
|
$
|
500
|
|
|
Make-whole premium plus 0.20%
|
$300 million 5.8% due March 2018
|
300
|
|
|
299
|
|
|
Make-whole premium plus 0.35%
|
||
$600 million 5.75% due May 2018
|
648
|
|
|
—
|
|
|
Make-whole premium plus 0.30%
|
||
$100 million 6.6% due August 2018
|
109
|
|
|
—
|
|
|
None
|
||
$500 million 5.9% due June 2019
|
497
|
|
|
497
|
|
|
Make-whole premium plus 0.40%
|
||
$1,300 million 2.3% due November 2020
|
1,294
|
|
|
1,294
|
|
|
Make-whole premium plus 0.15%
|
||
$1,000 million 2.875% due November 2022
|
994
|
|
|
994
|
|
|
Make-whole premium plus 0.20%
|
||
$475 million 2.7% due March 2023
|
471
|
|
|
471
|
|
|
Make-whole premium plus 0.10%
|
||
$700 million 3.35% due May 2024
|
694
|
|
|
694
|
|
|
Make-whole premium plus 0.15%
|
||
$800 million 3.15% due March 2025
|
794
|
|
|
794
|
|
|
Make-whole premium plus 0.15%
|
||
$1,500 million 3.35% due May 2026
|
1,487
|
|
|
1,487
|
|
|
Make-whole premium plus 0.20%
|
||
$100 million 8.875% due August 2029
|
100
|
|
|
100
|
|
|
None
|
||
$200 million 6.8% due November 2031
|
259
|
|
|
—
|
|
|
Make-whole premium plus 0.25%
|
||
$300 million 6.7% due May 2036
|
297
|
|
|
297
|
|
|
Make-whole premium plus 0.20%
|
||
$800 million 6.0% due May 2037
|
984
|
|
|
—
|
|
|
Make-whole premium plus 0.20%
|
||
$600 million 6.5% due May 2038
|
780
|
|
|
—
|
|
|
Make-whole premium plus 0.30%
|
||
$475 million 4.15% due March 2043
|
469
|
|
|
469
|
|
|
Make-whole premium plus 0.15%
|
||
$1,500 million 4.35% due November 2045
|
1,482
|
|
|
1,482
|
|
|
Make-whole premium plus 0.25%
|
||
Chubb INA $1,000 million 6.375% capital securities due March 2067
(1)
|
961
|
|
|
—
|
|
|
Make-whole premium plus 0.25%-0.50%
|
||
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020)
|
11
|
|
|
11
|
|
|
None
|
||
Total long-term debt
|
$
|
12,631
|
|
|
$
|
9,389
|
|
|
|
Trust preferred securities
|
|
|
|
|
|
||||
Chubb INA capital securities due April 2030
|
$
|
308
|
|
|
$
|
307
|
|
|
Redemption prices
(2)
|
(1)
|
6.375% interest rate through April 14, 2017; interest rate equal to three month LIBOR rate plus 2.25% thereafter.
|
(2)
|
Redemption price is equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the debentures from the redemption date to April 1, 2030.
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
December 31, 2015
|
|
||||||||||||||
|
Consolidated
Balance Sheet
Location
|
|
Fair Value
|
|
|
Notional
Value/
Payment
Provision
|
|
|
Fair Value
|
|
|
Notional
Value/
Payment
Provision
|
|
||||||||||||
(in millions of U.S. dollars)
|
|
Derivative Asset
|
|
|
Derivative (Liability)
|
|
|
|
Derivative Asset
|
|
|
Derivative (Liability)
|
|
|
|||||||||||
Investment and embedded derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forward contracts
|
OA / (AP)
|
|
$
|
10
|
|
|
$
|
(27
|
)
|
|
$
|
1,258
|
|
|
$
|
7
|
|
|
$
|
(11
|
)
|
|
$
|
1,029
|
|
Cross-currency swaps
|
OA / (AP)
|
|
—
|
|
|
—
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
95
|
|
||||||
Options/Futures contracts on notes and bonds
|
OA / (AP)
|
|
8
|
|
|
(44
|
)
|
|
1,249
|
|
|
5
|
|
|
(2
|
)
|
|
751
|
|
||||||
Convertible securities
(1)
|
FM AFS / ES
|
|
2
|
|
|
—
|
|
|
6
|
|
|
31
|
|
|
—
|
|
|
40
|
|
||||||
|
|
|
$
|
20
|
|
|
$
|
(71
|
)
|
|
$
|
2,608
|
|
|
$
|
43
|
|
|
$
|
(13
|
)
|
|
$
|
1,915
|
|
Other derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Futures contracts on equities
(2)
|
OA / (AP)
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
1,225
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
1,197
|
|
Other
|
OA / (AP)
|
|
7
|
|
|
(10
|
)
|
|
277
|
|
|
—
|
|
|
(6
|
)
|
|
15
|
|
||||||
|
|
|
$
|
7
|
|
|
$
|
(14
|
)
|
|
$
|
1,502
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
1,212
|
|
GLB
(3)
|
(AP) / (FPB)
|
|
$
|
—
|
|
|
$
|
(1,256
|
)
|
|
$
|
1,511
|
|
|
$
|
—
|
|
|
$
|
(888
|
)
|
|
$
|
1,155
|
|
(1)
|
Includes fair value of embedded derivatives.
|
(2)
|
Related to GMDB and GLB blocks of business.
|
(3)
|
Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note
5
for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.
|
|
|
Remaining contractual maturity
|
|
|
June 30, 2016
|
|
Overnight and Continuous
|
|
|
(in millions of U.S. dollars)
|
|
|||
Collateral held under securities lending agreements:
|
|
|
||
Cash
|
|
$
|
447
|
|
U.S. Treasury and agency
|
|
71
|
|
|
Foreign
|
|
262
|
|
|
Corporate securities
|
|
11
|
|
|
Equity securities
|
|
351
|
|
|
|
|
$
|
1,142
|
|
Gross amount of recognized liability for securities lending payable
|
|
$
|
1,143
|
|
Difference
(1)
|
|
$
|
(1
|
)
|
(1)
|
The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable due to accrued interest recorded in the securities lending payable.
|
|
Remaining contractual maturity
|
|
|||||||||
June 30, 2016
|
Up to 30 Days
|
|
|
Greater than
90 Days
|
|
|
Total
|
|
|||
(in millions of U.S. dollars)
|
|
|
|||||||||
Collateral pledged under repurchase agreements:
|
|
|
|
|
|
||||||
U.S. Treasury and agency
|
$
|
234
|
|
|
$
|
5
|
|
|
$
|
239
|
|
Mortgage-backed securities
|
329
|
|
|
889
|
|
|
1,218
|
|
|||
|
$
|
563
|
|
|
$
|
894
|
|
|
$
|
1,457
|
|
Gross amount of recognized liabilities for repurchase agreements
|
|
|
|
|
$
|
1,405
|
|
||||
Difference
(1)
|
|
|
|
|
$
|
52
|
|
(1)
|
Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
2016
|
|
|
2015
|
|
||||
Investment and embedded derivative instruments
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts
|
$
|
(10
|
)
|
|
$
|
(10
|
)
|
$
|
(20
|
)
|
|
$
|
15
|
|
All other futures contracts and options
|
(37
|
)
|
|
42
|
|
(71
|
)
|
|
13
|
|
||||
Convertible securities
(1)
|
—
|
|
|
(5
|
)
|
5
|
|
|
—
|
|
||||
Total investment and embedded derivative instruments
|
$
|
(47
|
)
|
|
$
|
27
|
|
$
|
(86
|
)
|
|
$
|
28
|
|
GLB and other derivative instruments
|
|
|
|
|
|
|
||||||||
GLB
(2)
|
$
|
(131
|
)
|
|
$
|
104
|
|
$
|
(359
|
)
|
|
$
|
59
|
|
Futures contracts on equities
(3)
|
(28
|
)
|
|
(2
|
)
|
(43
|
)
|
|
(13
|
)
|
||||
Options on equity market indices
(3)
|
—
|
|
|
—
|
|
—
|
|
|
(1
|
)
|
||||
Other
|
—
|
|
|
(1
|
)
|
(2
|
)
|
|
(1
|
)
|
||||
Total GLB and other derivative instruments
|
$
|
(159
|
)
|
|
$
|
101
|
|
$
|
(404
|
)
|
|
$
|
44
|
|
|
$
|
(206
|
)
|
|
$
|
128
|
|
$
|
(490
|
)
|
|
$
|
72
|
|
(1)
|
Includes embedded derivatives.
|
(2)
|
Excludes foreign exchange gains (losses) related to GLB.
|
(3)
|
Related to GMDB and GLB blocks of business.
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||||||||||||||
|
June 30
|
|
|
June 30
|
|
||||||||||||||||||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||||||||||||||
CHF
|
|
|
USD
|
|
|
CHF
|
|
|
USD
|
|
|
CHF
|
|
|
USD
|
|
|
CHF
|
|
|
USD
|
|
|||||
Dividends – par value reduction
|
—
|
|
|
$
|
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
|
|
|
0.62
|
|
|
$
|
0.65
|
|
Dividends
–
distributed from capital contribution reserves
|
0.68
|
|
|
0.69
|
|
|
0.62
|
|
|
0.67
|
|
|
1.34
|
|
|
1.36
|
|
|
0.62
|
|
|
0.67
|
|
||||
Total dividend distributions per common share
|
0.68
|
|
|
$
|
0.69
|
|
|
0.62
|
|
|
$
|
0.67
|
|
|
1.34
|
|
|
$
|
1.36
|
|
|
1.24
|
|
|
$
|
1.32
|
|
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||||||||||||||
January 14, 2016
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Total
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Total
|
|
||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||
Fair value of plan assets
|
$
|
2,473
|
|
|
$
|
315
|
|
|
$
|
2,788
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
$
|
138
|
|
Benefit obligations
|
(3,153
|
)
|
|
(372
|
)
|
|
(3,525
|
)
|
|
(491
|
)
|
|
(15
|
)
|
|
(506
|
)
|
||||||
Funded status
|
$
|
(680
|
)
|
|
$
|
(57
|
)
|
|
$
|
(737
|
)
|
|
$
|
(353
|
)
|
|
$
|
(15
|
)
|
|
$
|
(368
|
)
|
Three Months Ended June 30
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Total
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Total
|
|
||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
20
|
|
|
$
|
4
|
|
|
$
|
24
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
3
|
|
Interest cost
|
27
|
|
|
8
|
|
|
35
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Expected return on plan assets
|
(42
|
)
|
|
(10
|
)
|
|
(52
|
)
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Amortization of net actuarial loss
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
5
|
|
|
$
|
3
|
|
|
$
|
8
|
|
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
5
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
|
|
|
|
|
||||||
Interest cost
|
—
|
|
|
5
|
|
|
5
|
|
|
|
|
|
|
|
|||||||||
Expected return on plan assets
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|
|
|
|
|
|
|||||||||
Amortization of net actuarial loss
|
—
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|||||||||
Net periodic benefit cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
Six Months Ended June 30
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Total
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Total
|
|
||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
37
|
|
|
$
|
9
|
|
|
$
|
46
|
|
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
5
|
|
Interest cost
|
54
|
|
|
16
|
|
|
70
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||
Expected return on plan assets
|
(79
|
)
|
|
(20
|
)
|
|
(99
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Amortization of net actuarial loss
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
12
|
|
|
$
|
7
|
|
|
$
|
19
|
|
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
10
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
|
|
|
|
|
||||||
Interest cost
|
—
|
|
|
10
|
|
|
10
|
|
|
|
|
|
|
|
|||||||||
Expected return on plan assets
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
|
|
|
|
|
|
|||||||||
Amortization of net actuarial loss
|
—
|
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|||||||||
Net periodic benefit cost
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
June 30, 2016
|
|
|
|
|
|
|
|
||||
Discount rate
|
4.28
|
%
|
|
3.74
|
%
|
|
4.41
|
%
|
|
4.30
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
3.40
|
%
|
|
N/A
|
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
7.00
|
%
|
|
4.90
|
%
|
|
7.00
|
%
|
|
N/A
|
|
December 31, 2015
|
|
|
|
|
|
|
|
||||
Discount rate
|
N/A
|
|
|
3.51
|
%
|
|
N/A
|
|
|
N/A
|
|
Rate of compensation increase
|
N/A
|
|
|
3.09
|
%
|
|
N/A
|
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
N/A
|
|
|
4.81
|
%
|
|
N/A
|
|
|
N/A
|
|
•
|
The North America Commercial P&C Insurance segment includes the business written by Chubb divisions that provide property and casualty (P&C) insurance and services to large, middle market and small commercial businesses in the U.S., Bermuda and Canada. These divisions write a variety of coverages, including traditional commercial property, marine, general casualty, workers’ compensation, package policies, and risk management; specialty categories such as professional lines, marine and construction risk, environmental and cyber risk, excess casualty, as well as group accident and health (A&H) insurance. This segment includes our North American Major Accounts and Specialty Insurance (principally large
|
•
|
The North America Personal P&C Insurance segment includes the business written by Chubb’s North America Personal Risk Services division, which comprises Chubb high net worth personal lines business and ACE Private Risk Services, with operations in U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, automobile, valuables, umbrella and recreational marine insurance and services.
|
•
|
The North America Agricultural Insurance segment includes the business written by Rain and Hail Service, Inc. which provides comprehensive multiple peril crop and crop-hail insurance, and Chubb Agribusiness, which offers farm and ranch property as well as specialty P&C coverages, including commercial agriculture products.
|
•
|
The Overseas General Insurance segment includes the business written by two Chubb divisions that provide P&C insurance and services in the 51 countries outside of North America where the company operates. Chubb International provides commercial P&C traditional and specialty lines serving large corporations, middle market and small customers, A&H and traditional and specialty personal lines through retail brokers, agents and other channels locally around the world. Chubb Global Markets provides commercial P&C excess and surplus lines and A&H through wholesale brokers in the London market and through Lloyd’s. These divisions write a variety of coverages, including traditional commercial property and casualty, specialty categories such as financial lines, marine, energy, aviation, political risk and construction risk, as well as group A&H and traditional and specialty personal lines.
|
•
|
The Global Reinsurance segment primarily includes the reinsurance business written by Chubb Tempest Re as well as the legacy Chubb U.K. Assumed Reinsurance business, which is active, and the legacy Chubb run-off Reinsurance business.
|
•
|
The Life Insurance segment includes the business written by Chubb Life, Chubb Tempest Life Re and Combined Insurance’s North America operations.
|
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global
Reinsurance
|
|
|
Life Insurance
|
|
|
Corporate
|
|
|
Chubb
Consolidated
|
|
||||||||
For the Three Months Ended
|
|
|
|
|
|
||||||||||||||||||||||||||
June 30, 2015
|
|
|
|
|
|
||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||||||||||
Net premiums written
|
$
|
1,428
|
|
|
$
|
547
|
|
|
$
|
379
|
|
|
$
|
1,669
|
|
|
$
|
261
|
|
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
4,784
|
|
Net premiums earned
|
1,419
|
|
|
269
|
|
|
321
|
|
|
1,644
|
|
|
220
|
|
|
487
|
|
|
—
|
|
|
4,360
|
|
||||||||
Losses and loss expenses
|
916
|
|
|
156
|
|
|
271
|
|
|
816
|
|
|
72
|
|
|
137
|
|
|
49
|
|
|
2,417
|
|
||||||||
Policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|
153
|
|
||||||||
Policy acquisition costs
|
131
|
|
|
(1
|
)
|
|
23
|
|
|
396
|
|
|
60
|
|
|
118
|
|
|
—
|
|
|
727
|
|
||||||||
Administrative expenses
|
154
|
|
|
34
|
|
|
4
|
|
|
254
|
|
|
13
|
|
|
74
|
|
|
45
|
|
|
578
|
|
||||||||
Underwriting income (loss)
|
218
|
|
|
80
|
|
|
23
|
|
|
178
|
|
|
75
|
|
|
5
|
|
|
(94
|
)
|
|
485
|
|
||||||||
Net investment income
|
262
|
|
|
7
|
|
|
6
|
|
|
139
|
|
|
79
|
|
|
66
|
|
|
3
|
|
|
562
|
|
||||||||
Other (income) expense
|
1
|
|
|
—
|
|
|
1
|
|
|
(4
|
)
|
|
—
|
|
|
(7
|
)
|
|
(29
|
)
|
|
(38
|
)
|
||||||||
Segment income (loss)
|
479
|
|
|
87
|
|
|
28
|
|
|
321
|
|
|
154
|
|
|
78
|
|
|
(62
|
)
|
|
1,085
|
|
||||||||
Net realized gains (losses) including OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
126
|
|
|
126
|
|
|||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71
|
|
|
71
|
|
|||||||||||||
Amortization of purchased intangibles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55
|
|
|
55
|
|
|||||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
143
|
|
|
143
|
|
|||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(205
|
)
|
|
$
|
942
|
|
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global
Reinsurance
|
|
|
Life Insurance
|
|
|
Corporate
|
|
|
Chubb
Consolidated
|
|
||||||||
For the Six Months Ended
|
|
|
|
|
|
||||||||||||||||||||||||||
June 30, 2015
|
|
|
|
|
|
||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||||||||||
Net premiums written
|
$
|
2,725
|
|
|
$
|
680
|
|
|
$
|
467
|
|
|
$
|
3,463
|
|
|
$
|
534
|
|
|
$
|
991
|
|
|
$
|
—
|
|
|
$
|
8,860
|
|
Net premiums earned
|
2,799
|
|
|
415
|
|
|
385
|
|
|
3,281
|
|
|
446
|
|
|
961
|
|
|
—
|
|
|
8,287
|
|
||||||||
Losses and loss expenses
|
1,831
|
|
|
267
|
|
|
293
|
|
|
1,630
|
|
|
171
|
|
|
289
|
|
|
58
|
|
|
4,539
|
|
||||||||
Policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
295
|
|
|
—
|
|
|
295
|
|
||||||||
Policy acquisition costs
|
261
|
|
|
30
|
|
|
19
|
|
|
785
|
|
|
114
|
|
|
225
|
|
|
—
|
|
|
1,434
|
|
||||||||
Administrative expenses
|
305
|
|
|
53
|
|
|
3
|
|
|
510
|
|
|
25
|
|
|
147
|
|
|
89
|
|
|
1,132
|
|
||||||||
Underwriting income (loss)
|
402
|
|
|
65
|
|
|
70
|
|
|
356
|
|
|
136
|
|
|
5
|
|
|
(147
|
)
|
|
887
|
|
||||||||
Net investment income
|
520
|
|
|
12
|
|
|
12
|
|
|
277
|
|
|
154
|
|
|
132
|
|
|
6
|
|
|
1,113
|
|
||||||||
Other (income) expense
|
(2
|
)
|
|
—
|
|
|
2
|
|
|
(6
|
)
|
|
(1
|
)
|
|
(16
|
)
|
|
(50
|
)
|
|
(73
|
)
|
||||||||
Segment income (loss)
|
924
|
|
|
77
|
|
|
80
|
|
|
639
|
|
|
291
|
|
|
153
|
|
|
(91
|
)
|
|
2,073
|
|
||||||||
Net realized gains (losses) including OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
37
|
|
|
37
|
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
139
|
|
|
139
|
|
||||||||||||||
Amortization of purchased intangibles
|
|
|
|
|
|
|
|
|
|
|
|
|
85
|
|
|
85
|
|
||||||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
263
|
|
|
263
|
|
||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(541
|
)
|
|
$
|
1,623
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars, except share and per share data)
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
726
|
|
|
$
|
942
|
|
|
$
|
1,165
|
|
|
$
|
1,623
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Denominator for basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding
|
467,701,328
|
|
|
325,463,196
|
|
|
457,102,802
|
|
|
326,795,838
|
|
||||
Denominator for diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
Share-based compensation plans
|
3,455,969
|
|
|
3,222,562
|
|
|
3,379,559
|
|
|
3,373,809
|
|
||||
Weighted-average shares outstanding and assumed conversions
|
471,157,297
|
|
|
328,685,758
|
|
|
460,482,361
|
|
|
330,169,647
|
|
||||
Basic earnings per share
|
$
|
1.55
|
|
|
$
|
2.89
|
|
|
$
|
2.55
|
|
|
$
|
4.97
|
|
Diluted earnings per share
|
$
|
1.54
|
|
|
$
|
2.86
|
|
|
$
|
2.53
|
|
|
$
|
4.91
|
|
Potential anti-dilutive share conversions
|
2,103,281
|
|
|
1,934,454
|
|
|
2,056,018
|
|
|
1,306,817
|
|
(in millions of U.S. dollars)
|
Chubb
Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb Limited
Consolidated
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments
|
$
|
27
|
|
|
$
|
618
|
|
|
$
|
99,201
|
|
|
$
|
—
|
|
|
$
|
99,846
|
|
Cash
(1)
|
1
|
|
|
207
|
|
|
1,825
|
|
|
(1,022
|
)
|
|
1,011
|
|
|||||
Insurance and reinsurance balances receivable
|
—
|
|
|
—
|
|
|
12,095
|
|
|
(3,563
|
)
|
|
8,532
|
|
|||||
Reinsurance recoverable on losses and loss expenses
|
—
|
|
|
—
|
|
|
23,071
|
|
|
(9,836
|
)
|
|
13,235
|
|
|||||
Reinsurance recoverable on policy benefits
|
—
|
|
|
—
|
|
|
1,185
|
|
|
(986
|
)
|
|
199
|
|
|||||
Value of business acquired
|
—
|
|
|
—
|
|
|
381
|
|
|
—
|
|
|
381
|
|
|||||
Goodwill and other intangible assets
|
—
|
|
|
—
|
|
|
22,923
|
|
|
—
|
|
|
22,923
|
|
|||||
Investments in subsidiaries
|
37,011
|
|
|
49,412
|
|
|
—
|
|
|
(86,423
|
)
|
|
—
|
|
|||||
Due from subsidiaries and affiliates, net
|
11,179
|
|
|
—
|
|
|
—
|
|
|
(11,179
|
)
|
|
—
|
|
|||||
Other assets
|
7
|
|
|
522
|
|
|
17,962
|
|
|
(4,415
|
)
|
|
14,076
|
|
|||||
Total assets
|
$
|
48,225
|
|
|
$
|
50,759
|
|
|
$
|
178,643
|
|
|
$
|
(117,424
|
)
|
|
$
|
160,203
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Unpaid losses and loss expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,026
|
|
|
$
|
(9,207
|
)
|
|
$
|
60,819
|
|
Unearned premiums
|
—
|
|
|
—
|
|
|
18,999
|
|
|
(3,770
|
)
|
|
15,229
|
|
|||||
Future policy benefits
|
—
|
|
|
—
|
|
|
5,961
|
|
|
(986
|
)
|
|
4,975
|
|
|||||
Due to subsidiaries and affiliates, net
|
—
|
|
|
11,036
|
|
|
143
|
|
|
(11,179
|
)
|
|
—
|
|
|||||
Affiliated notional cash pooling programs
(1)
|
776
|
|
|
246
|
|
|
—
|
|
|
(1,022
|
)
|
|
—
|
|
|||||
Repurchase agreements
|
—
|
|
|
—
|
|
|
1,405
|
|
|
—
|
|
|
1,405
|
|
|||||
Short-term debt
|
—
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|||||
Long-term debt
|
—
|
|
|
12,620
|
|
|
11
|
|
|
—
|
|
|
12,631
|
|
|||||
Trust preferred securities
|
—
|
|
|
308
|
|
|
—
|
|
|
—
|
|
|
308
|
|
|||||
Other liabilities
|
223
|
|
|
1,608
|
|
|
20,116
|
|
|
(4,837
|
)
|
|
17,110
|
|
|||||
Total liabilities
|
999
|
|
|
26,318
|
|
|
116,661
|
|
|
(31,001
|
)
|
|
112,977
|
|
|||||
Total shareholders’ equity
|
47,226
|
|
|
24,441
|
|
|
61,982
|
|
|
(86,423
|
)
|
|
47,226
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
48,225
|
|
|
$
|
50,759
|
|
|
$
|
178,643
|
|
|
$
|
(117,424
|
)
|
|
$
|
160,203
|
|
(1)
|
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At
June 30, 2016
, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
|
|||||||||||||||||||
(in millions of U.S. dollars)
|
Chubb
Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb Limited
Consolidated
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments
|
$
|
28
|
|
|
$
|
7,839
|
|
|
$
|
58,384
|
|
|
$
|
—
|
|
|
$
|
66,251
|
|
Cash
(1)
|
1
|
|
|
2
|
|
|
2,743
|
|
|
(971
|
)
|
|
1,775
|
|
|||||
Insurance and reinsurance balances receivable
|
—
|
|
|
—
|
|
|
6,075
|
|
|
(752
|
)
|
|
5,323
|
|
|||||
Reinsurance recoverable on losses and loss expenses
|
—
|
|
|
—
|
|
|
20,124
|
|
|
(8,738
|
)
|
|
11,386
|
|
|||||
Reinsurance recoverable on policy benefits
|
—
|
|
|
—
|
|
|
1,129
|
|
|
(942
|
)
|
|
187
|
|
|||||
Value of business acquired
|
—
|
|
|
—
|
|
|
395
|
|
|
—
|
|
|
395
|
|
|||||
Goodwill and other intangible assets
|
—
|
|
|
—
|
|
|
5,683
|
|
|
—
|
|
|
5,683
|
|
|||||
Investments in subsidiaries
|
29,612
|
|
|
18,386
|
|
|
—
|
|
|
(47,998
|
)
|
|
—
|
|
|||||
Due from subsidiaries and affiliates, net
|
644
|
|
|
1,800
|
|
|
—
|
|
|
(2,444
|
)
|
|
—
|
|
|||||
Other assets
|
8
|
|
|
457
|
|
|
14,434
|
|
|
(3,593
|
)
|
|
11,306
|
|
|||||
Total assets
|
$
|
30,293
|
|
|
$
|
28,484
|
|
|
$
|
108,967
|
|
|
$
|
(65,438
|
)
|
|
$
|
102,306
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Unpaid losses and loss expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45,490
|
|
|
$
|
(8,187
|
)
|
|
$
|
37,303
|
|
Unearned premiums
|
—
|
|
|
—
|
|
|
10,243
|
|
|
(1,804
|
)
|
|
8,439
|
|
|||||
Future policy benefits
|
—
|
|
|
—
|
|
|
5,749
|
|
|
(942
|
)
|
|
4,807
|
|
|||||
Due to subsidiaries and affiliates, net
|
—
|
|
|
—
|
|
|
2,444
|
|
|
(2,444
|
)
|
|
—
|
|
|||||
Affiliated notional cash pooling programs
(1)
|
882
|
|
|
89
|
|
|
—
|
|
|
(971
|
)
|
|
—
|
|
|||||
Repurchase agreements
|
—
|
|
|
—
|
|
|
1,404
|
|
|
—
|
|
|
1,404
|
|
|||||
Long-term debt
|
—
|
|
|
9,378
|
|
|
11
|
|
|
—
|
|
|
9,389
|
|
|||||
Trust preferred securities
|
—
|
|
|
307
|
|
|
—
|
|
|
—
|
|
|
307
|
|
|||||
Other liabilities
|
276
|
|
|
1,422
|
|
|
12,916
|
|
|
(3,092
|
)
|
|
11,522
|
|
|||||
Total liabilities
|
1,158
|
|
|
11,196
|
|
|
78,257
|
|
|
(17,440
|
)
|
|
73,171
|
|
|||||
Total shareholders’ equity
|
29,135
|
|
|
17,288
|
|
|
30,710
|
|
|
(47,998
|
)
|
|
29,135
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
30,293
|
|
|
$
|
28,484
|
|
|
$
|
108,967
|
|
|
$
|
(65,438
|
)
|
|
$
|
102,306
|
|
(1)
|
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At
December 31, 2015
, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
For the Three Months Ended June 30, 2016
|
Chubb
Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb
Limited
Consolidated
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Net premiums written
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,639
|
|
|
$
|
—
|
|
|
$
|
7,639
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
7,405
|
|
|
—
|
|
|
7,405
|
|
|||||
Net investment income
|
1
|
|
|
3
|
|
|
704
|
|
|
—
|
|
|
708
|
|
|||||
Equity in earnings of subsidiaries
|
664
|
|
|
549
|
|
|
—
|
|
|
(1,213
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
(1
|
)
|
|
(1
|
)
|
|
(214
|
)
|
|
—
|
|
|
(216
|
)
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
4,254
|
|
|
—
|
|
|
4,254
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
146
|
|
|
—
|
|
|
146
|
|
|||||
Policy acquisition costs and administrative expenses
|
16
|
|
|
96
|
|
|
2,277
|
|
|
—
|
|
|
2,389
|
|
|||||
Interest (income) expense
|
(93
|
)
|
|
233
|
|
|
13
|
|
|
—
|
|
|
153
|
|
|||||
Other (income) expense
|
(4
|
)
|
|
10
|
|
|
(35
|
)
|
|
—
|
|
|
(29
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Chubb integration expenses
|
14
|
|
|
(97
|
)
|
|
181
|
|
|
—
|
|
|
98
|
|
|||||
Income tax expense (benefit)
|
5
|
|
|
(37
|
)
|
|
187
|
|
|
—
|
|
|
155
|
|
|||||
Net income
|
$
|
726
|
|
|
$
|
346
|
|
|
$
|
867
|
|
|
$
|
(1,213
|
)
|
|
$
|
726
|
|
Comprehensive income
|
$
|
1,540
|
|
|
$
|
1,004
|
|
|
$
|
1,681
|
|
|
$
|
(2,685
|
)
|
|
$
|
1,540
|
|
For the Three Months Ended June 30, 2015
|
Chubb
Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb
Limited
Consolidated
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Net premiums written
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,784
|
|
|
$
|
—
|
|
|
$
|
4,784
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
4,360
|
|
|
—
|
|
|
4,360
|
|
|||||
Net investment income
|
—
|
|
|
—
|
|
|
562
|
|
|
—
|
|
|
562
|
|
|||||
Equity in earnings of subsidiaries
|
901
|
|
|
296
|
|
|
—
|
|
|
(1,197
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
—
|
|
|
(2
|
)
|
|
128
|
|
|
—
|
|
|
126
|
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
2,417
|
|
|
—
|
|
|
2,417
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|
153
|
|
|||||
Policy acquisition costs and administrative expenses
|
18
|
|
|
7
|
|
|
1,280
|
|
|
—
|
|
|
1,305
|
|
|||||
Interest (income) expense
|
(7
|
)
|
|
69
|
|
|
9
|
|
|
—
|
|
|
71
|
|
|||||
Other (income) expense
|
(57
|
)
|
|
(4
|
)
|
|
23
|
|
|
—
|
|
|
(38
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|||||
Income tax expense (benefit)
|
5
|
|
|
(27
|
)
|
|
165
|
|
|
—
|
|
|
143
|
|
|||||
Net income
|
$
|
942
|
|
|
$
|
249
|
|
|
$
|
948
|
|
|
$
|
(1,197
|
)
|
|
$
|
942
|
|
Comprehensive income (loss)
|
$
|
397
|
|
|
$
|
(91
|
)
|
|
$
|
403
|
|
|
$
|
(312
|
)
|
|
$
|
397
|
|
Six Months Ended June 30, 2016
|
Chubb
Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb
Limited
Consolidated
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Net premiums written
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,634
|
|
|
$
|
—
|
|
|
$
|
13,634
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
14,002
|
|
|
—
|
|
|
14,002
|
|
|||||
Net investment income
|
2
|
|
|
7
|
|
|
1,373
|
|
|
—
|
|
|
1,382
|
|
|||||
Equity in earnings of subsidiaries
|
1,039
|
|
|
1,055
|
|
|
—
|
|
|
(2,094
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
(1
|
)
|
|
(1
|
)
|
|
(608
|
)
|
|
—
|
|
|
(610
|
)
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
7,928
|
|
|
—
|
|
|
7,928
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
272
|
|
|||||
Policy acquisition costs and administrative expenses
|
33
|
|
|
132
|
|
|
4,409
|
|
|
—
|
|
|
4,574
|
|
|||||
Interest (income) expense
|
(173
|
)
|
|
448
|
|
|
24
|
|
|
—
|
|
|
299
|
|
|||||
Other (income) expense
|
(13
|
)
|
|
20
|
|
|
(8
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|||||
Chubb integration expenses
|
17
|
|
|
40
|
|
|
189
|
|
|
—
|
|
|
246
|
|
|||||
Income tax expense (benefit)
|
11
|
|
|
(187
|
)
|
|
455
|
|
|
—
|
|
|
279
|
|
|||||
Net income
|
$
|
1,165
|
|
|
$
|
608
|
|
|
$
|
1,486
|
|
|
$
|
(2,094
|
)
|
|
$
|
1,165
|
|
Comprehensive income
|
$
|
3,081
|
|
|
$
|
2,060
|
|
|
$
|
3,402
|
|
|
$
|
(5,462
|
)
|
|
$
|
3,081
|
|
Six Months Ended June 30, 2015
|
Chubb
Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb
Limited
Consolidated
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Net premiums written
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,860
|
|
|
$
|
—
|
|
|
$
|
8,860
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
8,287
|
|
|
—
|
|
|
8,287
|
|
|||||
Net investment income
|
1
|
|
|
1
|
|
|
1,111
|
|
|
—
|
|
|
1,113
|
|
|||||
Equity in earnings of subsidiaries
|
1,549
|
|
|
500
|
|
|
—
|
|
|
(2,049
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
—
|
|
|
(2
|
)
|
|
39
|
|
|
—
|
|
|
37
|
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
4,539
|
|
|
—
|
|
|
4,539
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
295
|
|
|
—
|
|
|
295
|
|
|||||
Policy acquisition costs and administrative expenses
|
32
|
|
|
13
|
|
|
2,521
|
|
|
—
|
|
|
2,566
|
|
|||||
Interest (income) expense
|
(15
|
)
|
|
138
|
|
|
16
|
|
|
—
|
|
|
139
|
|
|||||
Other (income) expense
|
(98
|
)
|
|
(7
|
)
|
|
32
|
|
|
—
|
|
|
(73
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
85
|
|
|||||
Income tax expense (benefit)
|
8
|
|
|
(53
|
)
|
|
308
|
|
|
—
|
|
|
263
|
|
|||||
Net income
|
$
|
1,623
|
|
|
$
|
408
|
|
|
$
|
1,641
|
|
|
$
|
(2,049
|
)
|
|
$
|
1,623
|
|
Comprehensive income (loss)
|
$
|
1,039
|
|
|
$
|
(67
|
)
|
|
$
|
1,057
|
|
|
$
|
(990
|
)
|
|
$
|
1,039
|
|
Six Months Ended June 30, 2016
|
Chubb
Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited Subsidiaries |
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb
Limited
Consolidated
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Net cash flows from operating activities
|
$
|
3,213
|
|
|
$
|
4,050
|
|
|
$
|
2,262
|
|
|
$
|
(7,372
|
)
|
|
$
|
2,153
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of fixed maturities available for sale
|
—
|
|
|
(83
|
)
|
|
(16,994
|
)
|
|
—
|
|
|
(17,077
|
)
|
|||||
Purchases of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
(121
|
)
|
|
—
|
|
|
(121
|
)
|
|||||
Purchases of equity securities
|
—
|
|
|
—
|
|
|
(78
|
)
|
|
—
|
|
|
(78
|
)
|
|||||
Sales of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
11,868
|
|
|
—
|
|
|
11,868
|
|
|||||
Sales of equity securities
|
—
|
|
|
—
|
|
|
932
|
|
|
—
|
|
|
932
|
|
|||||
Maturities and redemptions of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
3,910
|
|
|
—
|
|
|
3,910
|
|
|||||
Maturities and redemptions of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
443
|
|
|
—
|
|
|
443
|
|
|||||
Net change in short-term investments
|
—
|
|
|
7,829
|
|
|
3,882
|
|
|
—
|
|
|
11,711
|
|
|||||
Net derivative instruments settlements
|
—
|
|
|
(10
|
)
|
|
(83
|
)
|
|
—
|
|
|
(93
|
)
|
|||||
Acquisition of subsidiaries (net of cash acquired of $71)
|
—
|
|
|
(14,282
|
)
|
|
34
|
|
|
—
|
|
|
(14,248
|
)
|
|||||
Capital contribution
|
(2,330
|
)
|
|
—
|
|
|
(2,330
|
)
|
|
4,660
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
(3
|
)
|
|
84
|
|
|
—
|
|
|
81
|
|
|||||
Net cash flows (used for) from investing activities
|
(2,330
|
)
|
|
(6,549
|
)
|
|
1,547
|
|
|
4,660
|
|
|
(2,672
|
)
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid on Common Shares
|
(530
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(530
|
)
|
|||||
Proceeds from issuance of repurchase agreements
|
—
|
|
|
—
|
|
|
904
|
|
|
—
|
|
|
904
|
|
|||||
Repayment of repurchase agreements
|
—
|
|
|
—
|
|
|
(902
|
)
|
|
—
|
|
|
(902
|
)
|
|||||
Proceeds from share-based compensation plans, including windfall tax benefits
|
—
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
92
|
|
|||||
Dividend to parent company
|
—
|
|
|
—
|
|
|
(7,372
|
)
|
|
7,372
|
|
|
—
|
|
|||||
Advances (to) from affiliates
|
(247
|
)
|
|
221
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|||||
Capital contribution
|
—
|
|
|
2,330
|
|
|
2,330
|
|
|
(4,660
|
)
|
|
—
|
|
|||||
Net proceeds from (payments to) affiliated notional cash pooling programs
(1)
|
(106
|
)
|
|
157
|
|
|
—
|
|
|
(51
|
)
|
|
—
|
|
|||||
Policyholder contract deposits
|
—
|
|
|
—
|
|
|
274
|
|
|
—
|
|
|
274
|
|
|||||
Policyholder contract withdrawals
|
—
|
|
|
—
|
|
|
(103
|
)
|
|
—
|
|
|
(103
|
)
|
|||||
Other
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Net cash flows (used for) from financing activities
|
(883
|
)
|
|
2,704
|
|
|
(4,751
|
)
|
|
2,661
|
|
|
(269
|
)
|
|||||
Effect of foreign currency rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||
Net increase (decrease) in cash
|
—
|
|
|
205
|
|
|
(918
|
)
|
|
(51
|
)
|
|
(764
|
)
|
|||||
Cash – beginning of period
(1)
|
1
|
|
|
2
|
|
|
2,743
|
|
|
(971
|
)
|
|
1,775
|
|
|||||
Cash – end of period
(1)
|
$
|
1
|
|
|
$
|
207
|
|
|
$
|
1,825
|
|
|
$
|
(1,022
|
)
|
|
$
|
1,011
|
|
(1)
|
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At
June 30, 2016
and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
Six Months Ended June 30, 2015
|
Chubb
Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb
Limited
Consolidated
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Net cash flows from (used for) operating activities
|
$
|
65
|
|
|
$
|
(35
|
)
|
|
$
|
1,861
|
|
|
$
|
—
|
|
|
$
|
1,891
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
(9,210
|
)
|
|
—
|
|
|
(9,210
|
)
|
|||||
Purchases of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|||||
Purchases of equity securities
|
—
|
|
|
—
|
|
|
(70
|
)
|
|
—
|
|
|
(70
|
)
|
|||||
Sales of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
3,642
|
|
|
—
|
|
|
3,642
|
|
|||||
Sales of equity securities
|
—
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
102
|
|
|||||
Maturities and redemptions of fixed maturities
available for sale
|
—
|
|
|
—
|
|
|
3,691
|
|
|
—
|
|
|
3,691
|
|
|||||
Maturities and redemptions of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
470
|
|
|
—
|
|
|
470
|
|
|||||
Net change in short-term investments
|
—
|
|
|
190
|
|
|
38
|
|
|
—
|
|
|
228
|
|
|||||
Net derivative instruments settlements
|
—
|
|
|
(9
|
)
|
|
(24
|
)
|
|
—
|
|
|
(33
|
)
|
|||||
Acquisition of subsidiaries (net of cash acquired of $620)
|
—
|
|
|
—
|
|
|
255
|
|
|
—
|
|
|
255
|
|
|||||
Other
|
—
|
|
|
(2
|
)
|
|
(69
|
)
|
|
—
|
|
|
(71
|
)
|
|||||
Net cash flows from (used for) investing activities
|
—
|
|
|
179
|
|
|
(1,199
|
)
|
|
—
|
|
|
(1,020
|
)
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid on Common Shares
|
(427
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(427
|
)
|
|||||
Common Shares repurchased
|
—
|
|
|
—
|
|
|
(750
|
)
|
|
—
|
|
|
(750
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
800
|
|
|
—
|
|
|
—
|
|
|
800
|
|
|||||
Proceeds from issuance of repurchase agreements
|
—
|
|
|
—
|
|
|
1,327
|
|
|
—
|
|
|
1,327
|
|
|||||
Repayment of long-term debt
|
—
|
|
|
(450
|
)
|
|
—
|
|
|
—
|
|
|
(450
|
)
|
|||||
Repayment of repurchase agreements
|
—
|
|
|
—
|
|
|
(1,327
|
)
|
|
—
|
|
|
(1,327
|
)
|
|||||
Proceeds from share-based compensation plans, including windfall tax benefits
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
46
|
|
|||||
Advances (to) from affiliates
|
223
|
|
|
(214
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||||
Net proceeds from (payments to) affiliated notional cash pooling programs
(1)
|
140
|
|
|
(272
|
)
|
|
—
|
|
|
132
|
|
|
—
|
|
|||||
Policyholder contract deposits
|
—
|
|
|
—
|
|
|
235
|
|
|
—
|
|
|
235
|
|
|||||
Policyholder contract withdrawals
|
—
|
|
|
—
|
|
|
(107
|
)
|
|
—
|
|
|
(107
|
)
|
|||||
Other
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Net cash flows used for financing activities
|
(64
|
)
|
|
(142
|
)
|
|
(585
|
)
|
|
132
|
|
|
(659
|
)
|
|||||
Effect of foreign currency rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
—
|
|
|
(77
|
)
|
|||||
Net increase in cash
|
1
|
|
|
2
|
|
|
—
|
|
|
132
|
|
|
135
|
|
|||||
Cash – beginning of period
(1)
|
—
|
|
|
1
|
|
|
1,209
|
|
|
(555
|
)
|
|
655
|
|
|||||
Cash – end of period
(1)
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
1,209
|
|
|
$
|
(423
|
)
|
|
$
|
790
|
|
(1)
|
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At
June 30, 2015
and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
MD&A Index
|
Page
|
Forward-Looking Statements
|
•
|
losses arising out of natural or man-made catastrophes such as hurricanes, typhoons, earthquakes, floods, climate change (including effects on weather patterns; greenhouse gases; sea; land and air temperatures; sea levels; and rain and snow), nuclear accidents, or terrorism which could be affected by:
|
•
|
the number of insureds and ceding companies affected;
|
•
|
the amount and timing of losses actually incurred and reported by insureds;
|
•
|
the impact of these losses on our reinsurers and the amount and timing of reinsurance recoverable actually received;
|
•
|
the cost of building materials and labor to reconstruct properties or to perform environmental remediation following a catastrophic event; and
|
•
|
complex coverage and regulatory issues such as whether losses occurred from storm surge or flooding and related lawsuits;
|
•
|
actions that rating agencies may take from time to time, such as financial strength or credit ratings downgrades or placing these ratings on credit watch negative or the equivalent;
|
•
|
the ability to collect reinsurance recoverable, credit developments of reinsurers, and any delays with respect thereto and changes in the cost, quality, or availability of reinsurance;
|
•
|
actual loss experience from insured or reinsured events and the timing of claim payments;
|
•
|
the uncertainties of the loss-reserving and claims-settlement processes, including the difficulties associated with assessing environmental damage and asbestos-related latent injuries, the impact of aggregate-policy-coverage limits, the impact of bankruptcy protection sought by various asbestos producers and other related businesses, and the timing of loss payments;
|
•
|
changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available for sale fixed maturity investments before their anticipated recovery;
|
•
|
infection rates and severity of pandemics and their effects on our business operations and claims activity;
|
•
|
developments in global financial markets, including changes in interest rates, stock markets, and other financial markets, increased government involvement or intervention in the financial services industry, the cost and availability of financing, and foreign currency exchange rate fluctuations (which we refer to in this report as foreign exchange and foreign currency exchange), which could affect our statement of operations, investment portfolio, financial condition, and financing plans;
|
•
|
general economic and business conditions resulting from volatility in the stock and credit markets and the depth and duration of potential recession;
|
•
|
global political conditions, the occurrence of any terrorist attacks, including any nuclear, radiological, biological, or chemical events, or the outbreak and effects of war, and possible business disruption or economic contraction that may result from such events;
|
•
|
the potential impact of the United Kingdom’s vote to withdraw from the European Union, including political, regulatory, social and economic uncertainty and market and exchange rate volatility;
|
•
|
judicial decisions and rulings, new theories of liability, legal tactics, and settlement terms;
|
•
|
the effects of public company bankruptcies and/or accounting restatements, as well as disclosures by and investigations of public companies relating to possible accounting irregularities, and other corporate governance issues, including the effects of such events on:
|
•
|
the capital markets;
|
•
|
the markets for directors and officers (D&O) and errors and omissions (E&O) insurance; and
|
•
|
claims and litigation arising out of such disclosures or practices by other companies;
|
•
|
uncertainties relating to governmental, legislative and regulatory policies, developments, actions, investigations, and treaties, which, among other things, could subject us to insurance regulation or taxation in additional jurisdictions or affect our current operations;
|
•
|
the actual amount of new and renewal business, market acceptance of our products, and risks associated with the introduction of new products and services and entering new markets, including regulatory constraints on exit strategies;
|
•
|
the competitive environment in which we operate, including trends in pricing or in policy terms and conditions, which may differ from our projections and changes in market conditions that could render our business strategies ineffective or obsolete;
|
•
|
acquisitions made by us performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, or announced acquisitions not closing;
|
•
|
risks and uncertainties relating to our acquisition of The Chubb Corporation (Chubb Corp acquisition) including our ability to successfully integrate the acquired company;
|
•
|
risks associated with being a Swiss corporation, including reduced flexibility with respect to certain aspects of capital management and the potential for additional regulatory burdens;
|
•
|
the potential impact from government-mandated insurance coverage for acts of terrorism;
|
•
|
the availability of borrowings and letters of credit under our credit facilities;
|
•
|
the adequacy of collateral supporting funded high deductible programs;
|
•
|
changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers;
|
•
|
material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements;
|
•
|
the effects of investigations into market practices in the property and casualty (P&C) industry;
|
•
|
changing rates of inflation and other economic conditions, for example, recession;
|
•
|
the amount of dividends received from subsidiaries;
|
•
|
loss of the services of any of our executive officers without suitable replacements being recruited in a reasonable time frame;
|
•
|
the ability of our technology resources, including information systems and security, to perform as anticipated such as with respect to preventing material information technology failures or third-party infiltrations or hacking resulting in consequences adverse to Chubb or its customers or partners; and
|
•
|
management’s response to these factors and actual events (including, but not limited to, those described above).
|
Overview
|
•
|
We are a global leader in traditional and specialty P&C coverage for industrial, commercial and mid-market companies with claims and risk engineering capabilities to serve companies of all sizes. Our commercial P&C business is focused on large corporate customers that are served by retail brokers, middle market and small commercial companies served by retail independent agents and brokers, and specialty excess and surplus lines (E&S) distributed through wholesale brokers.
|
•
|
On the consumer insurance side, we have a broad range of products for individual consumers and their families that include automobile, homeowners, fine art, planes and boats, personal liability, cell phones, accident, travel, supplemental health and life insurance. The consumer insurance product area where the Chubb Corp acquisition makes the greatest impact is property and casualty personal lines, primarily in the U.S. where the new Chubb remains the premier provider of personal lines to high net worth individuals and families. The balance of our global personal lines business is written outside the U.S. and ranges from general-market auto in Malaysia, Thailand and in Mexico, where we have over one million customers, to specialty mobile phone replacement coverage in Europe.
|
•
|
A&H business comprises personal accident and supplemental health coverage typically sold as either a group benefit via employer plans or as special insurance protection offerings from a sponsoring organization for its members and customers. We sell our A&H products through a variety of channels including independent agents, brokers, tied agents, direct marketing and bank branches.
|
•
|
Chubb Life is focused on Asia and primarily uses exclusive agency and bancassurance distribution.
|
•
|
Chubb Tempest Re, our global reinsurance business, provides a broad range of traditional reinsurance coverage to a diverse array of primary P&C companies. This business is offered worldwide through major business units in Bermuda, North America, Europe, and Asia, with expertise in property catastrophe reinsurance and other diversified lines. This business has been shrinking for several years in the face of declining reinsurance rates and increasing competition.
|
•
|
The North America Commercial P&C Insurance segment includes the business written by Chubb divisions that provide property and casualty (P&C) insurance and services to large, middle market and small commercial businesses in the U.S., Bermuda and Canada. These divisions write a variety of coverages, including traditional commercial property, marine, general casualty, workers’ compensation, package policies, and risk management; specialty categories such as professional lines, marine and construction risk, environmental and cyber risk, excess casualty, as well as group accident and health (A&H) insurance. The divisions included in this segment are North America Major Accounts, North America Commercial Insurance, Westchester and North America Small Commercial.
|
•
|
The North America Personal P&C Insurance segment includes the business written by Chubb’s North America Personal Risk Services division, which provides affluent and high net worth individuals and families with homeowners, automobile, valuables, umbrella and recreational marine insurance and services.
|
•
|
The North America Agricultural Insurance segment continues to include the business written by Rain and Hail Service, Inc. which provides comprehensive multiple peril crop and crop-hail insurance, and Chubb Agribusiness, which offers farm and ranch property as well as specialty P&C coverages, including commercial agriculture products.
|
•
|
The Overseas General Insurance segment includes the business written by two Chubb divisions that provide P&C insurance and services in the 51 countries outside of North America where the company operates. Chubb International provides commercial P&C traditional and specialty lines serving large corporations, middle market and small customers. In addition, Chubb International provides A&H and traditional and specialty personal lines through retail brokers, agents and other channels locally around the world. Chubb Global Markets provides commercial P&C excess and surplus lines and A&H through wholesale brokers in the London market and through Lloyd’s. These divisions write a variety of coverages, including traditional commercial property and casualty, specialty categories such as financial lines, marine, energy, aviation, political risk and construction risk, as well as group A&H and traditional and specialty personal lines.
|
•
|
The Global Reinsurance segment primarily includes the reinsurance business written by Chubb Tempest Re as well as the legacy Chubb U.K. Assumed Reinsurance business, which is active, and the legacy Chubb run-off Reinsurance business.
|
•
|
There were no material changes to the Life Insurance segment, which continues to include the business written by Chubb Life, Chubb Tempest Life Re and Combined Insurance’s North America operations. The legacy Chubb life insurance business in Latin America is also included in this segment.
|
Financial Highlights for the Three Months Ended June 30, 2016
|
•
|
Net income was $726 million compared with $942 million in the prior year period.
|
•
|
Total company and P&C net premiums written of $7.6 billion and $7.1 billion, respectively, up 59.7 percent and 66.0 percent reflecting the acquisition of Chubb Corp. P&C net premiums written decreased 6.2 percent or 4.7 percent in constant dollars when compared with prior year as if legacy ACE and legacy Chubb were one company in 2015 ("As If" basis). The prior year net premiums written included $252 million from the transfer of the Fireman’s Fund in-force business at the time of the transaction which was non-recurring in 2016.
|
•
|
Total company net premiums earned increased 69.8 percent, or 73.0 percent in constant dollars, reflecting the acquisition of Chubb Corp. On an "As If" basis, total company net premiums earned decreased 1.3 percent, or increased 0.3 percent in constant dollars.
|
•
|
P&C combined ratio was 91.2 percent compared with 87.7 percent in the prior year period. On an “As If” basis, P&C combined ratio was 90.2 percent compared with 87.1 percent in the prior year period. On and "As If" basis, current accident year P&C combined ratio excluding catastrophe losses was 88.9 percent compared with 88.0 percent in the prior year period.
|
•
|
The P&C expense ratio was 31.6 percent, compared with 28.8 percent in the prior year period reflecting the purchase accounting adjustments related to the Chubb Corp acquisition in the current year as well as the Fireman’s Fund non-recurring transfer which benefited the prior year ratio by 1.3 percentage points. On an "As If" basis, the P&C expense ratio was 30.6 percent, compared with 30.3 percent in the prior year which included a 0.7 percentage points benefit from the non-recurring Fireman’s Fund transfer.
|
•
|
Total pre-tax and after-tax catastrophe losses were $390 million (5.7 percentage points of the combined ratio) and $311 million, respectively, compared with $124 million (3.2 percentage points of the combined ratio) and $106 million, respectively, in the prior year period. On an "As If" basis, total pre-tax catastrophe losses for the second quarter of 2015 were $274 million (3.9 percentage points of the combined ratio).
|
•
|
Total pre-tax and after-tax favorable prior period development were $301 million (4.4 percentage points of the combined ratio) and $241 million, respectively, compared with $153 million pre-tax (3.9 percentage points of the combined ratio) and $128 million after-tax in the prior year period. On an "As If" basis, total pre-tax favorable prior period development for second quarter of 2015 was $336 million (4.8 percentage points of the combined ratio).
|
•
|
Net investment income was $708 million which is net of $108 million related to the amortization of the fair value adjustment on acquired invested assets of Chubb Corp. Excluding this amortization, net investment income was $816 million, compared with $562 million last year.
|
•
|
The North America Personal P&C Insurance segment included $252 million of net premiums written and $49 million of underwriting income in the prior year period related to the transfer of Fireman’s Fund in-force business in April 2015 that were non-recurring in 2016.
|
Consolidated Operating Results – Three and Six Months Ended June 30, 2016 and 2015
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
YTD-16 vs.
YTD-15 |
|
||||
Net premiums written
(1)
|
$
|
7,639
|
|
|
$
|
4,784
|
|
|
59.7
|
%
|
|
$
|
13,634
|
|
|
$
|
8,860
|
|
|
53.9
|
%
|
Net premiums earned
(1)
|
7,405
|
|
|
4,360
|
|
|
69.8
|
%
|
|
14,002
|
|
|
8,287
|
|
|
69.0
|
%
|
||||
Net investment income
|
708
|
|
|
562
|
|
|
26.0
|
%
|
|
1,382
|
|
|
1,113
|
|
|
24.2
|
%
|
||||
Net realized gains (losses)
|
(216
|
)
|
|
126
|
|
|
NM
|
|
|
(610
|
)
|
|
37
|
|
|
NM
|
|
||||
Total revenues
|
7,897
|
|
|
5,048
|
|
|
56.4
|
%
|
|
14,774
|
|
|
9,437
|
|
|
56.6
|
%
|
||||
Losses and loss expenses
|
4,254
|
|
|
2,417
|
|
|
76.0
|
%
|
|
7,928
|
|
|
4,539
|
|
|
74.7
|
%
|
||||
Policy benefits
(2)
|
146
|
|
|
153
|
|
|
(4.6
|
)%
|
|
272
|
|
|
295
|
|
|
(7.8
|
)%
|
||||
Policy acquisition costs
|
1,560
|
|
|
727
|
|
|
114.6
|
%
|
|
2,973
|
|
|
1,434
|
|
|
107.3
|
%
|
||||
Administrative expenses
|
829
|
|
|
578
|
|
|
43.4
|
%
|
|
1,601
|
|
|
1,132
|
|
|
41.4
|
%
|
||||
Interest expense
|
153
|
|
|
71
|
|
|
115.5
|
%
|
|
299
|
|
|
139
|
|
|
115.1
|
%
|
||||
Other (income) expense
(2)
|
(29
|
)
|
|
(38
|
)
|
|
(23.7
|
)%
|
|
(1
|
)
|
|
(73
|
)
|
|
(98.6
|
)%
|
||||
Amortization of purchased intangibles
|
5
|
|
|
55
|
|
|
(90.9
|
)%
|
|
12
|
|
|
85
|
|
|
(85.9
|
)%
|
||||
Chubb integration expenses
|
98
|
|
|
—
|
|
|
NM
|
|
|
246
|
|
|
—
|
|
|
NM
|
|
||||
Total expenses
|
7,016
|
|
|
3,963
|
|
|
77.0
|
%
|
|
13,330
|
|
|
7,551
|
|
|
76.5
|
%
|
||||
Income before income tax
|
881
|
|
|
1,085
|
|
|
(18.8
|
)%
|
|
1,444
|
|
|
1,886
|
|
|
(23.4
|
)%
|
||||
Income tax expense
|
155
|
|
|
143
|
|
|
8.4
|
%
|
|
279
|
|
|
263
|
|
|
6.1
|
%
|
||||
Net income
|
$
|
726
|
|
|
$
|
942
|
|
|
(22.8
|
)%
|
|
$
|
1,165
|
|
|
$
|
1,623
|
|
|
(28.2
|
)%
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
On a constant-dollar basis for the three and
six months ended
June 30, 2016
, net premiums written increased
$2,938
million and
$5,068
million, respectively, and net premiums earned increased
$3,125
million and
$5,977
million, respectively. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period.
|
(2)
|
Other (income) expense includes (gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. For the three and six months ended June 30 2016, these (gains) losses were
$(3)
million and nil, respectively, compared with
$(6)
million and $
(17)
million in the prior year periods. The offsetting movement in the separate account liabilities is included in Policy benefits.
|
•
|
Net premiums written in our North America Commercial P&C Insurance segment
increased
$1,817
million and
$2,822
million for the
three
and
six months ended
June 30, 2016
, respectively. On an "As If" basis, net premiums written were relatively flat for the three months ended
June 30, 2016
, as slight increases in our North America Commercial Insurance (NACI) and Wholesale businesses were offset by a slight decrease in our Major Accounts business.
|
•
|
Net premiums written in our North America Personal P&C Insurance segment
increased
$684
million and
$1,422
million for the three and
six months ended
June 30, 2016
, respectively. On an "As If" basis, net premiums written decreased
$319
million and
$257
million for the three and
six months ended
June 30, 2016
, respectively. The prior year included $252 million of non-recurring unearned premium reserves (UPR) related to the Fireman’s Fund high net worth personal lines business acquired in April 2015 recognized as written premiums at the date of acquisition. Excluding the non-recurring written premiums, on an "As If" basis, net premiums written decreased 5.2 percent for the
|
•
|
Net premiums written in our Overseas General Insurance segment
increased
$362
million and
$609
million for the three and
six months ended
June 30, 2016
, respectively. For the three and
six months ended
June 30, 2016
, on an "As If" constant-dollar basis, net premiums written increased by
$11
million and
$48
million, respectively, driven by growth in new personal residential business, property and casualty lines (P&C) and A&H lines, partially offset by declines in our excess and surplus lines.
|
•
|
Net premiums written in our Life Insurance segment increased $
27
million and $
52
million for the three and six months ended June 30, 2016, respectively and increased $3 million and $4 million, respectively, on an "As If" basis. Growth in our Life insurance business was partially offset by the adverse foreign exchange impact. Our life reinsurance business continues to decline as there is no new life reinsurance business currently being written.
|
•
|
Net premiums written in our Global Reinsurance segment decreased $
31
million and $
103
million for the three and
six months ended
June 30, 2016
, respectively, and declined $
36
million and $
110
million, respectively, on an "As If" basis as we maintained underwriting discipline in an environment of flat to declining rates and increasing competition.
|
•
|
Net premiums written in our North America Agricultural Insurance segment
decreased
$4
million and
$28
million for the
three
and six months ended
June 30, 2016
, respectively, due to lower base prices used in our 2016 policy pricing.
|
|
|
|
|
|
Three Months Ended
|
|
||||||||||||||||||
|
|
|
|
|
|
|
June 30
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
C$
(1)
Impact of Total FF and One-Time Item on Growth
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
% Change Q-16 vs.
Q-15 |
|
|
As If 2015
|
|
|
C$
(1)
As If Q-15
|
|
|
% Change C$
(1)
Q-16 vs. As If Q-15
|
|
|
||||||
Commercial multiple peril
(2)
|
$
|
236
|
|
|
$
|
—
|
|
|
NM
|
|
|
$
|
239
|
|
|
$
|
239
|
|
|
(1.3
|
)%
|
|
|
|
Commercial casualty
|
893
|
|
|
471
|
|
|
89.6
|
%
|
|
848
|
|
|
848
|
|
|
5.3
|
%
|
|
|
|||||
Workers' compensation
|
548
|
|
|
194
|
|
|
182.5
|
%
|
|
503
|
|
|
503
|
|
|
8.9
|
%
|
|
|
|||||
Professional liability
|
927
|
|
|
369
|
|
|
151.2
|
%
|
|
954
|
|
|
945
|
|
|
(1.9
|
)%
|
|
|
|||||
Surety
|
149
|
|
|
80
|
|
|
86.3
|
%
|
|
163
|
|
|
158
|
|
|
(5.7
|
)%
|
|
|
|||||
Property and other short-tail lines
|
1,097
|
|
|
818
|
|
|
34.1
|
%
|
|
1,241
|
|
|
1,202
|
|
|
(8.7
|
)%
|
|
|
|||||
International other casualty
|
247
|
|
|
182
|
|
|
35.7
|
%
|
|
227
|
|
|
224
|
|
|
10.3
|
%
|
|
|
|||||
Total Commercial P&C
|
4,097
|
|
|
2,114
|
|
|
93.8
|
%
|
|
4,175
|
|
|
4,119
|
|
|
(0.5
|
)%
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Agriculture
|
375
|
|
|
379
|
|
|
(1.2
|
)%
|
|
379
|
|
|
379
|
|
|
(1.2
|
)%
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Personal automobile
|
344
|
|
|
274
|
|
|
25.5
|
%
|
|
416
|
|
|
397
|
|
|
(13.4
|
)%
|
|
(9.6
|
)%
|
||||
Personal homeowners
|
898
|
|
|
325
|
|
|
176.3
|
%
|
|
1,076
|
|
|
1,075
|
|
|
(16.5
|
)%
|
|
(17.4
|
)%
|
||||
Personal other
|
405
|
|
|
276
|
|
|
46.7
|
%
|
|
502
|
|
|
483
|
|
|
(16.1
|
)%
|
|
(21.5
|
)%
|
||||
Total Personal lines
|
1,647
|
|
|
875
|
|
|
88.2
|
%
|
|
1,994
|
|
|
1,955
|
|
|
(15.8
|
)%
|
|
(16.8
|
)%
|
||||
Total Property and Casualty lines
|
6,119
|
|
|
3,368
|
|
|
81.7
|
%
|
|
6,548
|
|
|
6,453
|
|
|
(5.2
|
)%
|
|
(5.0
|
)%
|
||||
Other Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Global A&H
(3)
|
1,029
|
|
|
910
|
|
|
13.1
|
%
|
|
1,025
|
|
|
997
|
|
|
3.2
|
%
|
|
|
|||||
Reinsurance
|
230
|
|
|
261
|
|
|
(11.9
|
)%
|
|
266
|
|
|
265
|
|
|
(13.0
|
)%
|
|
|
|||||
Life
|
261
|
|
|
245
|
|
|
6.5
|
%
|
|
269
|
|
|
257
|
|
|
1.6
|
%
|
|
|
|||||
Total consolidated
|
$
|
7,639
|
|
|
$
|
4,784
|
|
|
59.7
|
%
|
|
$
|
8,108
|
|
|
$
|
7,972
|
|
|
(4.2
|
)%
|
|
(4.0
|
)%
|
(1)
|
On a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period.
|
(2)
|
Commercial multiple peril represents retail package business (property and general liability).
|
(3)
|
For purposes of this schedule only, A&H results from our Combined North America and International businesses, normally included in the Life Insurance and Overseas General Insurance segments, respectively, as well as the A&H results of our North America Commercial P&C segment, are included in the Global A&H line item above.
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||
|
June 30
|
|
|
June 30
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Loss and loss expense ratio
|
59.6
|
%
|
|
58.9
|
%
|
|
58.5
|
%
|
|
58.0
|
%
|
Policy acquisition cost ratio
|
20.6
|
%
|
|
15.7
|
%
|
|
20.9
|
%
|
|
16.5
|
%
|
Administrative expense ratio
|
11.0
|
%
|
|
13.1
|
%
|
|
11.2
|
%
|
|
13.5
|
%
|
P&C combined ratio
|
91.2
|
%
|
|
87.7
|
%
|
|
90.6
|
%
|
|
88.0
|
%
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|||||||||||||||||||
|
|
|
As If
|
|
|
|
|
As If
|
||||||||||||||||
(in millions of U.S dollars)
|
2016
|
|
2015
|
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|||||||
Catastrophe losses, pre-tax
|
$
|
396
|
|
$
|
124
|
|
|
$
|
274
|
|
|
$
|
654
|
|
$
|
175
|
|
|
$
|
654
|
|
$
|
589
|
|
Favorable prior period development, pre-tax
|
$
|
301
|
|
$
|
153
|
|
|
$
|
336
|
|
|
$
|
548
|
|
$
|
236
|
|
|
$
|
548
|
|
$
|
528
|
|
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global
Reinsurance
|
|
|
Chubb
Consolidated
|
|
||||||
For the Three Months Ended
|
|
|
|
|
|||||||||||||||||||
June 30, 2016
|
|
|
|
|
|||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||||||
Catastrophe Loss Charge by Event - Gross
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Texas storms
|
$
|
64
|
|
|
$
|
32
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
103
|
|
Other U.S. flooding, tornadoes, hail, wind
|
86
|
|
|
60
|
|
|
11
|
|
|
1
|
|
|
—
|
|
|
158
|
|
||||||
Japan & Ecuador earthquakes
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
38
|
|
||||||
Other international events
|
—
|
|
|
—
|
|
|
—
|
|
|
97
|
|
|
—
|
|
|
97
|
|
||||||
Fort McMurray wildfire
|
20
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
78
|
|
||||||
Other
|
19
|
|
|
4
|
|
|
2
|
|
|
4
|
|
|
—
|
|
|
29
|
|
||||||
Total
|
$
|
189
|
|
|
$
|
97
|
|
|
$
|
14
|
|
|
$
|
143
|
|
|
$
|
60
|
|
|
$
|
503
|
|
Catastrophe Loss Charge by Event - Net
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Texas storms
|
$
|
56
|
|
|
$
|
32
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
95
|
|
Other U.S. flooding, tornadoes, hail, wind
|
77
|
|
|
60
|
|
|
11
|
|
|
1
|
|
|
—
|
|
|
149
|
|
||||||
Japan & Ecuador earthquakes
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
||||||
Other international events
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
||||||
Fort McMurray wildfire
|
20
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
70
|
|
||||||
Other
|
7
|
|
|
4
|
|
|
2
|
|
|
4
|
|
|
—
|
|
|
17
|
|
||||||
Total
|
$
|
160
|
|
|
$
|
97
|
|
|
$
|
14
|
|
|
$
|
73
|
|
|
$
|
52
|
|
|
$
|
396
|
|
Reinstatement premium collected
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
6
|
|
Total impact before income tax
|
$
|
160
|
|
|
$
|
97
|
|
|
$
|
14
|
|
|
$
|
73
|
|
|
$
|
46
|
|
|
$
|
390
|
|
Total impact after income tax
|
$
|
118
|
|
|
$
|
71
|
|
|
$
|
10
|
|
|
$
|
66
|
|
|
$
|
46
|
|
|
$
|
311
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||
|
June 30
|
|
|
June 30
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Loss and loss expense ratio
|
59.6
|
%
|
|
58.9
|
%
|
|
58.5
|
%
|
|
58.0
|
%
|
Catastrophe losses and related reinstatement premiums
|
(5.7
|
)%
|
|
(3.2
|
)%
|
|
(5.0
|
)%
|
|
(2.4
|
)%
|
Prior period development
|
4.5
|
%
|
|
4.0
|
%
|
|
4.4
|
%
|
|
3.3
|
%
|
Loss and loss expense ratio, adjusted
|
58.4
|
%
|
|
59.7
|
%
|
|
57.9
|
%
|
|
58.9
|
%
|
(in millions of U.S. dollars)
|
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
Overseas General Insurance
|
|
|
Corporate
|
|
|
Consolidated
|
|
|||||
|
||||||||||||||||||||
For the Three Months Ended
|
||||||||||||||||||||
June 30, 2016
|
||||||||||||||||||||
Losses and loss expenses
|
|
$
|
9
|
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
18
|
|
Policy acquisition costs
|
|
4
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
6
|
|
|||||
Administrative expenses
|
|
18
|
|
|
10
|
|
|
11
|
|
|
7
|
|
|
46
|
|
|||||
Net investment income
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total
|
|
$
|
32
|
|
|
$
|
17
|
|
|
$
|
16
|
|
|
$
|
7
|
|
|
$
|
72
|
|
For the Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss expenses
|
|
$
|
9
|
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
18
|
|
Policy acquisition costs
|
|
4
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
6
|
|
|||||
Administrative expenses
|
|
32
|
|
|
15
|
|
|
17
|
|
|
10
|
|
|
74
|
|
|||||
Net investment income
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total
|
|
$
|
46
|
|
|
$
|
22
|
|
|
$
|
22
|
|
|
$
|
10
|
|
|
$
|
100
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
Long-tail
|
|
|
Short-tail
|
|
|
Total
|
|
|
Long-tail
|
|
|
Short-tail
|
|
|
Total
|
|
||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
North America Commercial P&C Insurance
|
$
|
(167
|
)
|
|
$
|
(1
|
)
|
|
$
|
(168
|
)
|
|
$
|
(309
|
)
|
|
$
|
(37
|
)
|
|
$
|
(346
|
)
|
North America Personal P&C Insurance
|
(4
|
)
|
|
(11
|
)
|
|
(15
|
)
|
|
(4
|
)
|
|
(14
|
)
|
|
(18
|
)
|
||||||
North America Agricultural Insurance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(41
|
)
|
||||||
Overseas General Insurance
|
(1
|
)
|
|
(84
|
)
|
|
(85
|
)
|
|
(1
|
)
|
|
(114
|
)
|
|
(115
|
)
|
||||||
Global Reinsurance
|
(47
|
)
|
|
—
|
|
|
(47
|
)
|
|
(49
|
)
|
|
(1
|
)
|
|
(50
|
)
|
||||||
Corporate
|
14
|
|
|
—
|
|
|
14
|
|
|
22
|
|
|
—
|
|
|
22
|
|
||||||
Total
|
$
|
(205
|
)
|
|
$
|
(96
|
)
|
|
$
|
(301
|
)
|
|
$
|
(341
|
)
|
|
$
|
(207
|
)
|
|
$
|
(548
|
)
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
North America Commercial P&C Insurance
|
$
|
(84
|
)
|
|
$
|
(12
|
)
|
|
$
|
(96
|
)
|
|
$
|
(86
|
)
|
|
$
|
(40
|
)
|
|
$
|
(126
|
)
|
North America Personal P&C Insurance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
North America Agricultural Insurance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
(33
|
)
|
||||||
Overseas General Insurance
|
1
|
|
|
(69
|
)
|
|
(68
|
)
|
|
1
|
|
|
(93
|
)
|
|
(92
|
)
|
||||||
Global Reinsurance
|
(39
|
)
|
|
3
|
|
|
(36
|
)
|
|
(40
|
)
|
|
(1
|
)
|
|
(41
|
)
|
||||||
Corporate
|
47
|
|
|
—
|
|
|
47
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||||
Total
|
$
|
(75
|
)
|
|
$
|
(78
|
)
|
|
$
|
(153
|
)
|
|
$
|
(69
|
)
|
|
$
|
(167
|
)
|
|
$
|
(236
|
)
|
•
|
Net favorable development of $167 million in long-tail business, primarily from:
|
•
|
Net favorable development of $114 million in our workers’ compensation lines with favorable development of $40 million in the 2015 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 close of the accident year to allow for late reporting or identification of significant losses. Favorable development of $59 million driven by accident years 2011 and prior was principally due to lower than expected loss experience and revision to the basis for selecting development patterns used in our loss projection methods. Adverse development in accident years 2012 through 2015 was due to a small number of large claims in our excess business;
|
•
|
Net favorable development of $50 million in our commercial-multi peril (CMP) and monoline general liability lines, driven by favorable paid and reported loss activity relative to prior expectations, principally in accident years 2007 through 2014; and
|
•
|
Net favorable development of $20 million in our professional E&O portfolios, in the 2003 accident year due to a favorable development on a specific claim.
|
•
|
Net favorable development of $309 million in long-tail business, primarily from:
|
•
|
Favorable development of $145 million in our commercial excess and umbrella portfolios, driven by continued lower than expected reported loss activity in accident years 2010 and prior; in general, the severity of claims has been less than previously expected;
|
•
|
Net favorable development of $114 million on our workers’ compensation lines as described above;
|
•
|
Favorable development of $63 million in our professional E&O portfolios, primarily impacting the 2012 and prior accident years and arising from both lower than expected reported loss activity and re-assessments of remaining claim-specific liabilities for the older accident years; and
|
•
|
Net favorable development of $24 million in our primary casualty and general liability portfolios was driven by $50 million favorable development in our CMP and monoline general liability lines as described above, and $26 million adverse development due to higher than expected reported loss activity, mainly associated with construction defect coverages.
|
•
|
Net favorable development of $37 million in short-tail business, primarily from favorable development of $24 million in our surety business, due to favorable claim emergence in the 2013 accident year.
|
•
|
Net favorable development of $84 million in long-tail business, primarily from our national accounts portfolios which consist of commercial auto, general liability and workers' compensation lines of business. This favorable movement was the net impact of favorable and adverse movements, including:
|
•
|
Favorable development of $32 million in our auto liability excess lines primarily impacting the 2010 accident year, resulting from lower than expected loss emergence and an increase in weighting applied to experience-based methods;
|
•
|
Favorable development of $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; and
|
•
|
Net favorable development of $22 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 close of the accident year to allow for late reporting or identification of significant losses. Adverse development of $30 million impacting the 2009 and prior accident years, was due to a combination of claim-specific deteriorations and higher than expected loss emergence. There was additional adverse development in the 2014 accident year due to revised account-level estimates, which proved to be higher than our original aggregate book expectations.
|
•
|
Net favorable development of $86 million in long-tail business, primarily from favorable development of $84 million in our national accounts portfolios as described above.
|
•
|
Net favorable development of $40 million in short-tail business, primarily from favorable development of $24 million in our surety business due to lower than expected claims emergence primarily in the 2013 accident year.
|
•
|
Net favorable development of $84 million in short-tail business, primarily from:
|
•
|
Favorable development of $38 million in property (excluding technical lines), primarily from favorable Continental Europe loss emergence in accident years 2013 through 2015; and
|
•
|
Favorable development of $32 million in energy lines, primarily from a claims review of catastrophe impacts on underwriting years 2004 through 2008, as well as favorable loss emergence in accident years 2010 through 2013, primarily in offshore where experience has been better than expected.
|
•
|
Net favorable development of $69 million in short-tail business, primarily from property and marine lines. Favorable development on specific claims and an increase in weighting applied to experience-based methods in accident years 2013 and prior led to an $88 million reduction. Unfavorable large loss experience in accident year 2014 led to a $19 million increase.
|
•
|
Net favorable development of $93 million in short-tail business, primarily from:
|
•
|
Favorable development of $73 million primarily in property and marine lines due to the same factors experienced for the three months ended June 30, 2015 as described above; and
|
•
|
Favorable development of $20 million in consumer business mainly in Latin America and Asia Pacific, resulting from lower than expected loss emergence and an increase in weighting applied to experience-based methods in accident years 2012 and 2013.
|
•
|
Favorable development of $41 million in casualty lines primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence.
|
•
|
Favorable development of $23 million in casualty lines primarily impacting treaty years 2009 and prior, principally resulting from lower than expected loss emergence combined with an increase in weighting applied to experience-based methods.
|
Segment Operating Results – Three and Six Months Ended June 31, 2016 and 2015
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
YTD-16 vs.
YTD-15 |
|
||||
Net premiums written
|
$
|
3,245
|
|
|
$
|
1,428
|
|
|
127.4
|
%
|
|
$
|
5,547
|
|
|
$
|
2,725
|
|
|
103.6
|
%
|
Net premiums earned
|
3,148
|
|
|
1,419
|
|
|
121.8
|
%
|
|
6,044
|
|
|
2,799
|
|
|
115.9
|
%
|
||||
Losses and loss expenses
|
1,971
|
|
|
916
|
|
|
115.2
|
%
|
|
3,718
|
|
|
1,831
|
|
|
103.1
|
%
|
||||
Policy acquisition costs
|
545
|
|
|
131
|
|
|
NM
|
|
|
1,027
|
|
|
261
|
|
|
293.5
|
%
|
||||
Administrative expenses
|
299
|
|
|
154
|
|
|
94.2
|
%
|
|
565
|
|
|
305
|
|
|
85.2
|
%
|
||||
Underwriting income
|
333
|
|
|
218
|
|
|
52.8
|
%
|
|
734
|
|
|
402
|
|
|
82.6
|
%
|
||||
Net investment income
|
468
|
|
|
262
|
|
|
78.6
|
%
|
|
894
|
|
|
520
|
|
|
71.9
|
%
|
||||
Other (income) expense
|
(9
|
)
|
|
1
|
|
|
NM
|
|
|
(9
|
)
|
|
(2
|
)
|
|
NM
|
|
||||
Segment income
|
$
|
810
|
|
|
$
|
479
|
|
|
69.1
|
%
|
|
$
|
1,637
|
|
|
$
|
924
|
|
|
77.2
|
%
|
Loss and loss expense ratio
|
62.6
|
%
|
|
64.5
|
%
|
|
|
|
61.5
|
%
|
|
65.4
|
%
|
|
|
||||||
Policy acquisition cost ratio
|
17.3
|
%
|
|
9.2
|
%
|
|
|
|
17.0
|
%
|
|
9.3
|
%
|
|
|
||||||
Administrative expense ratio
|
9.6
|
%
|
|
10.9
|
%
|
|
|
|
9.4
|
%
|
|
10.9
|
%
|
|
|
||||||
Combined ratio
|
89.5
|
%
|
|
84.6
|
%
|
|
|
|
87.9
|
%
|
|
85.6
|
%
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|||||||||||||||||||
|
|
|
As If
|
|
|
|
|
As If
|
||||||||||||||||
(in millions of U.S. dollars)
|
2016
|
|
2015
|
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|||||||
Catastrophe losses, pre-tax
|
$
|
160
|
|
$
|
41
|
|
|
$
|
100
|
|
|
$
|
241
|
|
$
|
50
|
|
|
$
|
241
|
|
$
|
166
|
|
Favorable prior period development, pre-tax
|
$
|
168
|
|
$
|
96
|
|
|
$
|
246
|
|
|
$
|
346
|
|
$
|
126
|
|
|
$
|
346
|
|
$
|
361
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||
|
June 30
|
|
|
June 30
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Loss and loss expense ratio
|
62.6
|
%
|
|
64.5
|
%
|
|
61.5
|
%
|
|
65.4
|
%
|
Catastrophe losses and related reinstatement premiums
|
(5.1
|
)%
|
|
(2.8
|
)%
|
|
(4.0
|
)%
|
|
(1.8
|
)%
|
Prior period development
|
5.4
|
%
|
|
6.9
|
%
|
|
5.8
|
%
|
|
4.6
|
%
|
Loss and loss expense ratio, adjusted
|
62.9
|
%
|
|
68.6
|
%
|
|
63.3
|
%
|
|
68.2
|
%
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
YTD-16 vs.
YTD-15 |
|
||||
Net premiums written
|
$
|
1,231
|
|
|
$
|
547
|
|
|
125.1
|
%
|
|
$
|
2,102
|
|
|
$
|
680
|
|
|
209.2
|
%
|
Net premiums earned
|
1,140
|
|
|
269
|
|
|
NM
|
|
|
2,164
|
|
|
415
|
|
|
NM
|
|
||||
Losses and loss expenses
|
661
|
|
|
156
|
|
|
NM
|
|
|
1,322
|
|
|
267
|
|
|
NM
|
|
||||
Policy acquisition costs
|
269
|
|
|
(1
|
)
|
|
NM
|
|
|
518
|
|
|
30
|
|
|
NM
|
|
||||
Administrative expenses
|
98
|
|
|
34
|
|
|
188.2
|
%
|
|
186
|
|
|
53
|
|
|
250.9
|
%
|
||||
Underwriting income
|
112
|
|
|
80
|
|
|
40.0
|
%
|
|
138
|
|
|
65
|
|
|
112.3
|
%
|
||||
Net investment income
|
55
|
|
|
7
|
|
|
NM
|
|
|
102
|
|
|
12
|
|
|
NM
|
|
||||
Other (income) expense
|
3
|
|
|
—
|
|
|
NM
|
|
|
4
|
|
|
—
|
|
|
NM
|
|
||||
Segment income
|
$
|
164
|
|
|
$
|
87
|
|
|
88.5
|
%
|
|
$
|
236
|
|
|
$
|
77
|
|
|
206.5
|
%
|
Loss and loss expense ratio
|
58.0
|
%
|
|
57.9
|
%
|
|
|
|
|
61.1
|
%
|
|
64.3
|
%
|
|
|
|||||
Policy acquisition cost ratio
|
23.6
|
%
|
|
(0.3
|
)%
|
|
|
|
|
23.9
|
%
|
|
7.2
|
%
|
|
|
|
||||
Administrative expense ratio
|
8.5
|
%
|
|
13.0
|
%
|
|
|
|
|
8.6
|
%
|
|
12.9
|
%
|
|
|
|
||||
Combined ratio
|
90.1
|
%
|
|
70.6
|
%
|
|
|
|
93.6
|
%
|
|
84.4
|
%
|
|
|
||||||
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|||||||||||||||||||
|
|
|
As If
|
|
|
|
|
As If
|
|
|||||||||||||||
(in millions of U.S. dollars)
|
2016
|
|
2015
|
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|||||||
Catastrophe losses, pre-tax
|
$
|
97
|
|
$
|
13
|
|
|
$
|
95
|
|
|
$
|
253
|
|
$
|
49
|
|
|
$
|
253
|
|
$
|
338
|
|
Favorable prior period development, pre-tax
|
$
|
15
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
18
|
|
$
|
—
|
|
|
$
|
18
|
|
$
|
22
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||
|
June 30
|
|
|
June 30
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Loss and loss expense ratio
|
58.0
|
%
|
|
57.9
|
%
|
|
61.1
|
%
|
|
64.3
|
%
|
Catastrophe losses and related reinstatement premiums
|
(8.5
|
)%
|
|
(5.2
|
)%
|
|
(11.7
|
)%
|
|
(12.0
|
)%
|
Prior period development
|
1.4
|
%
|
|
—
|
|
|
0.9
|
%
|
|
—
|
|
Loss and loss expense ratio, adjusted
|
50.9
|
%
|
|
52.7
|
%
|
|
50.3
|
%
|
|
52.3
|
%
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
YTD-16 vs.
YTD-15 |
|
||||
Net premiums written
|
$
|
375
|
|
|
$
|
379
|
|
|
(1.2
|
)%
|
|
$
|
439
|
|
|
$
|
467
|
|
|
(6.1
|
)%
|
Net premiums earned
|
327
|
|
|
321
|
|
|
1.6
|
%
|
|
350
|
|
|
385
|
|
|
(9.3
|
)%
|
||||
Losses and loss expenses
(1)
|
286
|
|
|
273
|
|
|
4.8
|
%
|
|
256
|
|
|
295
|
|
|
(13.2
|
)%
|
||||
Policy acquisition costs
|
25
|
|
|
23
|
|
|
8.7
|
%
|
|
29
|
|
|
19
|
|
|
52.6
|
%
|
||||
Administrative expenses
|
2
|
|
|
4
|
|
|
(50.0
|
)%
|
|
(2
|
)
|
|
3
|
|
|
NM
|
|
||||
Underwriting income
|
14
|
|
|
21
|
|
|
(33.3
|
)%
|
|
67
|
|
|
68
|
|
|
(1.5
|
)%
|
||||
Net investment income
|
5
|
|
|
6
|
|
|
(16.7
|
)%
|
|
10
|
|
|
12
|
|
|
(16.7
|
)%
|
||||
Other (income) expense
|
—
|
|
|
1
|
|
|
NM
|
|
|
—
|
|
|
2
|
|
|
NM
|
|
||||
Segment income
|
$
|
19
|
|
|
$
|
26
|
|
|
(26.9
|
)%
|
|
$
|
77
|
|
|
$
|
78
|
|
|
(1.3
|
)%
|
Loss and loss expense ratio
|
87.5
|
%
|
|
85.3
|
%
|
|
|
|
73.3
|
%
|
|
76.6
|
%
|
|
|
||||||
Policy acquisition cost ratio
|
7.7
|
%
|
|
7.2
|
%
|
|
|
|
|
8.2
|
%
|
|
5.0
|
%
|
|
|
|
||||
Administrative expense ratio
|
0.7
|
%
|
|
1.1
|
%
|
|
|
|
|
(0.5
|
)%
|
|
0.7
|
%
|
|
|
|
||||
Combined ratio
|
95.9
|
%
|
|
93.6
|
%
|
|
|
|
81.0
|
%
|
|
82.3
|
%
|
|
|
(1)
|
Losses on crop derivatives were $2 million for both the three and six months ended June 30, 2016 and 2015, respectively. These losses are reclassified from Net realized gains (losses) to Losses and loss expenses for purposes of presenting North America Agricultural Insurance underwriting income.
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||
|
June 30
|
|
|
June 30
|
|
||||||||
(in millions of U.S. dollars)
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||
Catastrophe losses, pre-tax
|
$
|
14
|
|
$
|
7
|
|
|
$
|
16
|
|
$
|
8
|
|
Favorable prior period development, pre-tax
|
$
|
—
|
|
$
|
—
|
|
|
$
|
41
|
|
$
|
33
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||
|
June 30
|
|
|
June 30
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Loss and loss expense ratio
|
87.5
|
%
|
|
85.3
|
%
|
|
73.3
|
%
|
|
76.6
|
%
|
Catastrophe losses and related reinstatement premiums
|
(4.2
|
)%
|
|
(2.2
|
)%
|
|
(4.5
|
)%
|
|
(2.0
|
)%
|
Prior period development
|
—
|
|
|
—
|
|
|
13.0
|
%
|
|
8.5
|
%
|
Loss and loss expense ratio, adjusted
|
83.3
|
%
|
|
83.1
|
%
|
|
81.8
|
%
|
|
83.1
|
%
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
YTD-16 vs.
YTD-15 |
|
||||
Net premiums written
(1)
|
$
|
2,031
|
|
|
$
|
1,669
|
|
|
21.6
|
%
|
|
$
|
4,072
|
|
|
$
|
3,463
|
|
|
17.6
|
%
|
Net premiums earned
|
2,093
|
|
|
1,644
|
|
|
27.3
|
%
|
|
4,048
|
|
|
3,281
|
|
|
23.4
|
%
|
||||
Losses and loss expenses
|
1,089
|
|
|
816
|
|
|
33.5
|
%
|
|
2,110
|
|
|
1,630
|
|
|
29.4
|
%
|
||||
Policy acquisition costs
|
537
|
|
|
396
|
|
|
35.6
|
%
|
|
1,040
|
|
|
785
|
|
|
32.5
|
%
|
||||
Administrative expenses
|
277
|
|
|
254
|
|
|
9.1
|
%
|
|
540
|
|
|
510
|
|
|
5.9
|
%
|
||||
Underwriting income
(2)
|
190
|
|
|
178
|
|
|
6.7
|
%
|
|
358
|
|
|
356
|
|
|
0.6
|
%
|
||||
Net investment income
|
147
|
|
|
139
|
|
|
5.8
|
%
|
|
293
|
|
|
277
|
|
|
5.8
|
%
|
||||
Other (income) expense
|
(5
|
)
|
|
(4
|
)
|
|
25.0
|
%
|
|
(10
|
)
|
|
(6
|
)
|
|
66.7
|
%
|
||||
Segment income
|
$
|
342
|
|
|
$
|
321
|
|
|
6.5
|
%
|
|
$
|
661
|
|
|
$
|
639
|
|
|
3.4
|
%
|
Loss and loss expense ratio
|
52.1
|
%
|
|
49.7
|
%
|
|
|
|
52.1
|
%
|
|
49.7
|
%
|
|
|
||||||
Policy acquisition cost ratio
|
25.6
|
%
|
|
24.1
|
%
|
|
|
|
|
25.7
|
%
|
|
23.9
|
%
|
|
|
|
||||
Administrative expense ratio
|
13.2
|
%
|
|
15.4
|
%
|
|
|
|
|
13.3
|
%
|
|
15.5
|
%
|
|
|
|
||||
Combined ratio
|
90.9
|
%
|
|
89.2
|
%
|
|
|
|
91.1
|
%
|
|
89.1
|
%
|
|
|
(1)
|
For the three and
six months ended
June 30, 2016
, net premiums written increased $
429
million and
$850
million, or
26.7
percent and
26.4
percent, respectively, on a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period.
|
(2)
|
For the three and
six months ended
June 30, 2016
, underwriting income increased
$18
million and
$24
million, or 10.6 percent and 7.1 percent, respectively, on a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period
|
|
Three Months Ended June 30
|
|
|
% Change
|
|
||||||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2016
% of Total |
|
|
2015
|
|
|
2015
% of Total
|
|
|
C$
(1)
2015 |
|
|
Q-16 vs.
Q-15 |
|
|
C$
(1)
Q-16 vs.
Q-15 |
|
|||
Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe
(2)
|
$
|
807
|
|
|
40
|
%
|
|
$
|
596
|
|
|
36
|
%
|
|
$
|
595
|
|
|
35.4
|
%
|
|
35.6
|
%
|
Latin America
|
483
|
|
|
24
|
%
|
|
454
|
|
|
27
|
%
|
|
402
|
|
|
6.4
|
%
|
|
20.1
|
%
|
|||
Asia
|
641
|
|
|
31
|
%
|
|
521
|
|
|
31
|
%
|
|
512
|
|
|
23.0
|
%
|
|
25.2
|
%
|
|||
Other
(3)
|
100
|
|
|
5
|
%
|
|
98
|
|
|
6
|
%
|
|
93
|
|
|
2.0
|
%
|
|
7.5
|
%
|
|||
Net premiums written
|
$
|
2,031
|
|
|
100
|
%
|
|
$
|
1,669
|
|
|
100
|
%
|
|
$
|
1,602
|
|
|
21.6
|
%
|
|
26.7
|
%
|
|
Six Months Ended June 30
|
|
|
% Change
|
|
||||||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2016
% of Total |
|
|
2015
|
|
|
2015
% of Total |
|
|
C$
(1)
2015 |
|
|
YTD-16 vs.
YTD-15 |
|
|
C$
(1)
YTD-16 vs.
YTD-15 |
|
|||
Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe
(2)
|
$
|
1,706
|
|
|
42
|
%
|
|
$
|
1,376
|
|
|
40
|
%
|
|
$
|
1,329
|
|
|
24.0
|
%
|
|
28.4
|
%
|
Latin America
|
965
|
|
|
24
|
%
|
|
913
|
|
|
26
|
%
|
|
774
|
|
|
5.7
|
%
|
|
24.7
|
%
|
|||
Asia
|
1,211
|
|
|
30
|
%
|
|
973
|
|
|
28
|
%
|
|
933
|
|
|
24.5
|
%
|
|
29.8
|
%
|
|||
Other
(3)
|
190
|
|
|
4
|
%
|
|
201
|
|
|
6
|
%
|
|
186
|
|
|
(5.5
|
)%
|
|
2.2
|
%
|
|||
Net premiums written
|
$
|
4,072
|
|
|
100
|
%
|
|
$
|
3,463
|
|
|
100
|
%
|
|
$
|
3,222
|
|
|
17.6
|
%
|
|
26.4
|
%
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|||||||||||||||||||
|
|
|
As If
|
|
|
|
|
As If
|
||||||||||||||||
(in millions of U.S. dollars)
|
2016
|
|
2015
|
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|||||||
Catastrophe losses, pre-tax
|
$
|
73
|
|
$
|
58
|
|
|
$
|
66
|
|
|
$
|
91
|
|
$
|
63
|
|
|
$
|
91
|
|
$
|
71
|
|
Favorable prior period development, pre-tax
|
$
|
85
|
|
$
|
68
|
|
|
$
|
90
|
|
|
$
|
115
|
|
$
|
92
|
|
|
$
|
115
|
|
$
|
140
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||
|
June 30
|
|
|
June 30
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Loss and loss expense ratio
|
52.1
|
%
|
|
49.7
|
%
|
|
52.1
|
%
|
|
49.7
|
%
|
Catastrophe losses and related reinstatement premiums
|
(3.5
|
)%
|
|
(3.5
|
)%
|
|
(2.2
|
)%
|
|
(1.9
|
)%
|
Prior period development
|
4.1
|
%
|
|
4.1
|
%
|
|
2.9
|
%
|
|
2.8
|
%
|
Loss and loss expense ratio, adjusted
|
52.7
|
%
|
|
50.3
|
%
|
|
52.8
|
%
|
|
50.6
|
%
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
YTD-16 vs.
YTD-15 |
|
||||
Net premiums written
|
$
|
230
|
|
|
$
|
261
|
|
|
(11.9
|
)%
|
|
$
|
431
|
|
|
$
|
534
|
|
|
(19.3
|
)%
|
Net premiums earned
|
185
|
|
|
220
|
|
|
(15.7
|
)%
|
|
387
|
|
|
446
|
|
|
(13.2
|
)%
|
||||
Losses and loss expenses
|
87
|
|
|
72
|
|
|
20.8
|
%
|
|
176
|
|
|
171
|
|
|
2.9
|
%
|
||||
Policy acquisition costs
|
47
|
|
|
60
|
|
|
(21.7
|
)%
|
|
100
|
|
|
114
|
|
|
(12.3
|
)%
|
||||
Administrative expenses
|
14
|
|
|
13
|
|
|
7.7
|
%
|
|
28
|
|
|
25
|
|
|
12.0
|
%
|
||||
Underwriting income
|
37
|
|
|
75
|
|
|
(50.7
|
)%
|
|
83
|
|
|
136
|
|
|
(39.0
|
)%
|
||||
Net investment income
|
65
|
|
|
79
|
|
|
(17.7
|
)%
|
|
132
|
|
|
154
|
|
|
(14.3
|
)%
|
||||
Other (income) expense
|
(2
|
)
|
|
—
|
|
|
NM
|
|
|
(3
|
)
|
|
(1
|
)
|
|
200.0
|
%
|
||||
Segment income
|
$
|
104
|
|
|
$
|
154
|
|
|
(32.5
|
)%
|
|
$
|
218
|
|
|
$
|
291
|
|
|
(25.1
|
)%
|
Loss and loss expense ratio
|
46.9
|
%
|
|
32.9
|
%
|
|
|
|
45.5
|
%
|
|
38.3
|
%
|
|
|
||||||
Policy acquisition cost ratio
|
25.5
|
%
|
|
27.2
|
%
|
|
|
|
25.9
|
%
|
|
25.6
|
%
|
|
|
||||||
Administrative expense ratio
|
7.4
|
%
|
|
5.6
|
%
|
|
|
|
7.1
|
%
|
|
5.6
|
%
|
|
|
||||||
Combined ratio
|
79.8
|
%
|
|
65.7
|
%
|
|
|
|
78.5
|
%
|
|
69.5
|
%
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
||||||||||||||||||||||
|
|
|
As If
|
|
|
|
|
As If
|
|
||||||||||||||||||
(in millions of U.S dollars)
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|||||||
Catastrophe losses, pre-tax
|
$
|
52
|
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
53
|
|
|
$
|
5
|
|
|
$
|
53
|
|
|
$
|
6
|
|
Favorable prior period development, pre-tax
|
$
|
47
|
|
|
$
|
36
|
|
|
$
|
41
|
|
|
$
|
50
|
|
|
$
|
41
|
|
|
$
|
50
|
|
|
$
|
47
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||
|
June 30
|
|
|
June 30
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Loss and loss expense ratio
|
46.9
|
%
|
|
32.9
|
%
|
|
45.5
|
%
|
|
38.3
|
%
|
Catastrophe losses and related reinstatement premiums
|
(27.8
|
)%
|
|
(2.3
|
)%
|
|
(13.3
|
)%
|
|
(1.1
|
)%
|
Prior period development
|
26.9
|
%
|
|
16.1
|
%
|
|
13.6
|
%
|
|
9.1
|
%
|
Loss and loss expense ratio, adjusted
|
46.0
|
%
|
|
46.7
|
%
|
|
45.8
|
%
|
|
46.3
|
%
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
YTD-16 vs.
YTD-15 |
|
||||
Net premiums written
|
$
|
527
|
|
|
$
|
500
|
|
|
5.5
|
%
|
|
$
|
1,043
|
|
|
$
|
991
|
|
|
5.3
|
%
|
Net premiums earned
|
512
|
|
|
487
|
|
|
5.1
|
%
|
|
1,009
|
|
|
961
|
|
|
5.0
|
%
|
||||
Losses and loss expenses
|
147
|
|
|
137
|
|
|
7.3
|
%
|
|
324
|
|
|
289
|
|
|
12.1
|
%
|
||||
Policy benefits
(1)
|
146
|
|
|
153
|
|
|
(4.6
|
)%
|
|
272
|
|
|
295
|
|
|
(7.8
|
)%
|
||||
(Gains) losses from fair value changes in separate account assets
(1)
|
(3
|
)
|
|
(6
|
)
|
|
(50.0
|
)%
|
|
—
|
|
|
(17
|
)
|
|
NM
|
|
||||
Policy acquisition costs
|
137
|
|
|
118
|
|
|
16.1
|
%
|
|
259
|
|
|
225
|
|
|
15.1
|
%
|
||||
Administrative expenses
|
77
|
|
|
74
|
|
|
4.1
|
%
|
|
149
|
|
|
147
|
|
|
1.4
|
%
|
||||
Net investment income
|
69
|
|
|
66
|
|
|
4.5
|
%
|
|
136
|
|
|
132
|
|
|
3.0
|
%
|
||||
Other (income) expense
(1)
|
3
|
|
|
(1
|
)
|
|
NM
|
|
|
6
|
|
|
1
|
|
|
NM
|
|
||||
Segment income
|
$
|
74
|
|
|
$
|
78
|
|
|
(5.1
|
)%
|
|
$
|
135
|
|
|
$
|
153
|
|
|
(11.8
|
)%
|
(1)
|
(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified from Other income (expense). The offsetting movement in the separate account liabilities is included in Policy benefits.
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
||||||||||||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
C$
(1)
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
C$
(1)
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
C$
(1)
2015
|
|
|
Y-16 vs. Y-15
|
|
|
C$
(1)
Y-16 vs. Y-15
|
|
||||||
Deposits collected on Universal life and investment contracts
|
$
|
262
|
|
|
$
|
263
|
|
|
$
|
251
|
|
|
(0.4
|
)%
|
|
4.2
|
%
|
|
$
|
475
|
|
|
$
|
516
|
|
|
$
|
492
|
|
|
(7.9
|
)%
|
|
(3.5
|
)%
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||
|
June 30
|
|
|
% Change
|
|
|
June 30
|
|
|
% Change
|
|
||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
Q-16 vs.
Q-15 |
|
|
2016
|
|
|
2015
|
|
|
YTD-16 vs.
YTD-15
|
|
||||
Losses and loss expenses
|
$
|
15
|
|
|
$
|
49
|
|
|
(69.4
|
)%
|
|
$
|
24
|
|
|
$
|
58
|
|
|
(58.6
|
)%
|
Administrative expenses
|
62
|
|
|
45
|
|
|
37.8
|
%
|
|
135
|
|
|
89
|
|
|
51.7
|
%
|
||||
Underwriting loss
|
77
|
|
|
94
|
|
|
(18.1
|
)%
|
|
159
|
|
|
147
|
|
|
8.2
|
%
|
||||
Net investment income (loss)
|
(101
|
)
|
|
3
|
|
|
NM
|
|
|
(185
|
)
|
|
6
|
|
|
NM
|
|
||||
Interest expense
|
153
|
|
|
71
|
|
|
115.5
|
%
|
|
299
|
|
|
139
|
|
|
115.1
|
%
|
||||
Net realized gains (losses)
|
(214
|
)
|
|
128
|
|
|
NM
|
|
|
(608
|
)
|
|
39
|
|
|
NM
|
|
||||
Other (income) expense
|
(16
|
)
|
|
(29
|
)
|
|
(44.8
|
)%
|
|
11
|
|
|
(50
|
)
|
|
NM
|
|
||||
Amortization of purchased intangibles
|
5
|
|
|
55
|
|
|
(90.9
|
)%
|
|
12
|
|
|
85
|
|
|
(85.9
|
)%
|
||||
Chubb integration expenses
|
98
|
|
|
—
|
|
|
NM
|
|
|
246
|
|
|
—
|
|
|
NM
|
|
||||
Income tax expense
|
155
|
|
|
143
|
|
|
8.4
|
%
|
|
279
|
|
|
263
|
|
|
6.1
|
%
|
||||
Net loss
|
$
|
(787
|
)
|
|
$
|
(203
|
)
|
|
287.7
|
%
|
|
$
|
(1,799
|
)
|
|
$
|
(539
|
)
|
|
233.8
|
%
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|||||||||||||||||||||||||
|
June 30
|
|
|||||||||||||||||||||||||
(in millions of U.S. dollars, except percentages)
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global Reinsurance
|
|
|
Life Insurance
|
|
|
Consolidated
|
|
|||||||
Net premiums written
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums written
|
$
|
3,245
|
|
|
$
|
1,231
|
|
|
$
|
375
|
|
|
$
|
2,031
|
|
|
$
|
230
|
|
|
$
|
527
|
|
|
$
|
7,639
|
|
2015 As If
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums written
|
$
|
1,428
|
|
|
$
|
547
|
|
|
$
|
379
|
|
|
$
|
1,669
|
|
|
$
|
261
|
|
|
$
|
500
|
|
|
$
|
4,784
|
|
Legacy Chubb
|
1,825
|
|
|
1,003
|
|
|
—
|
|
|
467
|
|
|
5
|
|
|
9
|
|
|
3,309
|
|
|||||||
Accounting policy alignment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|||||||
2015 As If
(1)
|
$
|
3,253
|
|
|
$
|
1,550
|
|
|
$
|
379
|
|
|
$
|
2,136
|
|
|
$
|
266
|
|
|
$
|
524
|
|
|
$
|
8,108
|
|
Constant-dollar 2015 As If
|
$
|
3,249
|
|
|
$
|
1,550
|
|
|
$
|
379
|
|
|
$
|
2,020
|
|
|
$
|
265
|
|
|
$
|
509
|
|
|
$
|
7,972
|
|
Constant-dollar change As If
|
$
|
(4
|
)
|
|
$
|
(319
|
)
|
|
(4
|
)
|
|
$
|
11
|
|
|
$
|
(35
|
)
|
|
18
|
|
|
$
|
(333
|
)
|
||
Constant-dollar percent change As If
|
(0.1
|
)%
|
|
(20.6
|
)%
|
|
(1.2
|
)%
|
|
0.5
|
%
|
|
(13.0
|
)%
|
|
3.5
|
%
|
|
(4.2
|
)%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Six Months Ended
|
|
|||||||||||||||||||||||||
|
June 30
|
|
|||||||||||||||||||||||||
Net premiums written
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2016 As If
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums written
|
$
|
5,547
|
|
|
$
|
2,102
|
|
|
$
|
439
|
|
|
$
|
4,072
|
|
|
$
|
431
|
|
|
$
|
1,043
|
|
|
$
|
13,634
|
|
14 day stub period
|
519
|
|
|
100
|
|
|
—
|
|
|
215
|
|
|
20
|
|
|
1
|
|
|
855
|
|
|||||||
2016 As If
|
$
|
6,066
|
|
|
$
|
2,202
|
|
|
$
|
439
|
|
|
$
|
4,287
|
|
|
$
|
451
|
|
|
$
|
1,044
|
|
|
$
|
14,489
|
|
2015 As If
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums written
|
$
|
2,725
|
|
|
$
|
680
|
|
|
$
|
467
|
|
|
$
|
3,463
|
|
|
$
|
534
|
|
|
$
|
991
|
|
|
$
|
8,860
|
|
Legacy Chubb
|
3,456
|
|
|
1,779
|
|
|
—
|
|
|
1,134
|
|
|
27
|
|
|
19
|
|
|
6,415
|
|
|||||||
Accounting policy alignment
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
30
|
|
|
49
|
|
|||||||
2015 As If
(1)
|
$
|
6,181
|
|
|
$
|
2,459
|
|
|
$
|
467
|
|
|
$
|
4,616
|
|
|
$
|
561
|
|
|
$
|
1,040
|
|
|
$
|
15,324
|
|
Constant-dollar 2015 As If
|
$
|
6,172
|
|
|
$
|
2,454
|
|
|
$
|
467
|
|
|
$
|
4,239
|
|
|
$
|
553
|
|
|
$
|
1,003
|
|
|
$
|
14,888
|
|
Constant-dollar change As If
|
$
|
(106
|
)
|
|
$
|
(252
|
)
|
|
$
|
(28
|
)
|
|
$
|
48
|
|
|
$
|
(102
|
)
|
|
$
|
41
|
|
|
$
|
(399
|
)
|
Constant-dollar percent change As If
|
(1.7
|
)%
|
|
(10.3
|
)%
|
|
(6.1
|
)%
|
|
1.1
|
%
|
|
(18.4
|
)%
|
|
4.0
|
%
|
|
(2.7
|
)%
|
|
Three Months Ended
|
|
|||||||||||||||||||||||||
|
June 30
|
|
|||||||||||||||||||||||||
(in millions of U.S. dollars, except percentages)
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global Reinsurance
|
|
|
Life Insurance
|
|
|
Consolidated
|
|
|||||||
Net premiums earned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums earned
|
$
|
3,148
|
|
|
$
|
1,140
|
|
|
$
|
327
|
|
|
$
|
2,093
|
|
|
$
|
185
|
|
|
$
|
512
|
|
|
$
|
7,405
|
|
2015 As If
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums earned
|
$
|
1,419
|
|
|
$
|
269
|
|
|
$
|
321
|
|
|
$
|
1,644
|
|
|
$
|
220
|
|
|
$
|
487
|
|
|
$
|
4,360
|
|
Legacy Chubb
|
1,695
|
|
|
891
|
|
|
—
|
|
|
530
|
|
|
7
|
|
|
10
|
|
|
3,133
|
|
|||||||
Accounting policy alignment
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
14
|
|
|
10
|
|
|||||||
2015 As If
(1)
|
$
|
3,114
|
|
|
$
|
1,160
|
|
|
$
|
321
|
|
|
$
|
2,170
|
|
|
$
|
227
|
|
|
$
|
511
|
|
|
$
|
7,503
|
|
Constant-dollar 2015 As If
|
$
|
3,112
|
|
|
$
|
1,160
|
|
|
$
|
321
|
|
|
$
|
2,067
|
|
|
$
|
226
|
|
|
$
|
497
|
|
|
$
|
7,383
|
|
Constant-dollar change As If
|
$
|
36
|
|
|
$
|
(20
|
)
|
|
6
|
|
|
$
|
26
|
|
|
$
|
(41
|
)
|
|
15
|
|
|
$
|
22
|
|
||
Constant-dollar percent change As If
|
1.2
|
%
|
|
(1.8
|
)%
|
|
1.6
|
%
|
|
1.2
|
%
|
|
(17.6
|
)%
|
|
2.9
|
%
|
|
0.3
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Six Months Ended
|
|
|||||||||||||||||||||||||
|
June 30
|
|
|||||||||||||||||||||||||
Net premiums earned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums earned
|
$
|
6,044
|
|
|
$
|
2,164
|
|
|
$
|
350
|
|
|
$
|
4,048
|
|
|
$
|
387
|
|
|
$
|
1,009
|
|
|
$
|
14,002
|
|
14 day stub period
|
208
|
|
|
110
|
|
|
—
|
|
|
71
|
|
|
—
|
|
|
2
|
|
|
391
|
|
|||||||
2016 As If
|
$
|
6,252
|
|
|
$
|
2,274
|
|
|
$
|
350
|
|
|
$
|
4,119
|
|
|
$
|
387
|
|
|
$
|
1,011
|
|
|
$
|
14,393
|
|
2015 As If
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums earned
|
$
|
2,799
|
|
|
$
|
415
|
|
|
$
|
385
|
|
|
$
|
3,281
|
|
|
$
|
446
|
|
|
$
|
961
|
|
|
$
|
8,287
|
|
Legacy Chubb
|
3,389
|
|
|
1,751
|
|
|
—
|
|
|
1,068
|
|
|
9
|
|
|
20
|
|
|
6,238
|
|
|||||||
Accounting policy alignment
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
28
|
|
|
15
|
|
|||||||
2015 As If
(1)
|
$
|
6,188
|
|
|
$
|
2,167
|
|
|
$
|
385
|
|
|
$
|
4,336
|
|
|
$
|
455
|
|
|
$
|
1,009
|
|
|
$
|
14,540
|
|
Constant-dollar 2015 As If
|
$
|
6,177
|
|
|
$
|
2,166
|
|
|
$
|
385
|
|
|
$
|
4,016
|
|
|
$
|
450
|
|
|
$
|
974
|
|
|
$
|
14,168
|
|
Constant-dollar change As If
|
$
|
75
|
|
|
$
|
108
|
|
|
$
|
(35
|
)
|
|
$
|
103
|
|
|
$
|
(63
|
)
|
|
$
|
38
|
|
|
$
|
225
|
|
Constant-dollar percent change As If
|
1.2
|
%
|
|
4.9
|
%
|
|
(9.3
|
)%
|
|
2.6
|
%
|
|
(13.8
|
)%
|
|
3.8
|
%
|
|
1.6
|
%
|
|
Three Months Ended June 30
|
|
|||||||||||||||||||||||||
(in millions of U.S. dollars)
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global Reinsurance
|
|
|
Corporate
|
|
|
Total P&C
|
|
|||||||
Loss and loss expenses
|
|||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss and loss expenses
|
$
|
1,971
|
|
|
$
|
661
|
|
|
$
|
286
|
|
|
$
|
1,089
|
|
|
$
|
87
|
|
|
$
|
15
|
|
|
$
|
4,109
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss and loss expenses
|
$
|
916
|
|
|
$
|
156
|
|
|
$
|
273
|
|
|
$
|
816
|
|
|
$
|
72
|
|
|
$
|
49
|
|
|
$
|
2,282
|
|
Legacy Chubb
|
892
|
|
|
520
|
|
|
—
|
|
|
278
|
|
|
1
|
|
|
12
|
|
|
1,703
|
|
|||||||
Accounting policy alignments
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(1
|
)
|
|
(15
|
)
|
|||||||
2015 As If
(1)
|
$
|
1,808
|
|
|
$
|
676
|
|
|
$
|
273
|
|
|
$
|
1,080
|
|
|
$
|
73
|
|
|
$
|
60
|
|
|
$
|
3,970
|
|
Policy acquisition costs
|
|||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policy acquisition costs
|
$
|
545
|
|
|
$
|
269
|
|
|
$
|
25
|
|
|
$
|
537
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
1,423
|
|
Amortization of acquired unearned premium reserves intangible asset
|
(290
|
)
|
|
(165
|
)
|
|
—
|
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
(525
|
)
|
|||||||
Elimination of deferred acquisition cost benefit
|
244
|
|
|
136
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
459
|
|
|||||||
2016 As If
|
$
|
499
|
|
|
$
|
240
|
|
|
$
|
25
|
|
|
$
|
546
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
1,357
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policy acquisition costs
|
$
|
131
|
|
|
$
|
(1
|
)
|
|
$
|
23
|
|
|
$
|
396
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
609
|
|
Legacy Chubb
|
330
|
|
|
197
|
|
|
—
|
|
|
123
|
|
|
1
|
|
|
—
|
|
|
651
|
|
|||||||
Accounting policy alignment
|
31
|
|
|
3
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|||||||
2015 As If
|
$
|
492
|
|
|
$
|
199
|
|
|
$
|
23
|
|
|
$
|
558
|
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
1,333
|
|
Amortization of acquired unearned premium reserves intangible asset
|
271
|
|
|
155
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
489
|
|
|||||||
Elimination of deferred acquisition cost benefit
|
(219
|
)
|
|
(126
|
)
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
(395
|
)
|
|||||||
2015 SEC pro forma
|
$
|
544
|
|
|
$
|
228
|
|
|
$
|
23
|
|
|
$
|
571
|
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
1,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses
|
$
|
299
|
|
|
$
|
98
|
|
|
$
|
2
|
|
|
$
|
277
|
|
|
$
|
14
|
|
|
$
|
62
|
|
|
$
|
752
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses
|
$
|
154
|
|
|
$
|
34
|
|
|
$
|
4
|
|
|
$
|
254
|
|
|
$
|
13
|
|
|
$
|
45
|
|
|
$
|
504
|
|
Legacy Chubb
|
174
|
|
|
71
|
|
|
—
|
|
|
87
|
|
|
2
|
|
|
6
|
|
|
340
|
|
|||||||
Accounting policy alignment
|
(31
|
)
|
|
(3
|
)
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
17
|
|
|
(53
|
)
|
|||||||
2015 As If
(1)
|
$
|
297
|
|
|
$
|
102
|
|
|
$
|
4
|
|
|
$
|
305
|
|
|
$
|
15
|
|
|
$
|
68
|
|
|
$
|
791
|
|
(Favorable) and unfavorable PPD, pre-tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Favorable) and unfavorable PPD, pre-tax
|
$
|
(96
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(68
|
)
|
|
$
|
(36
|
)
|
|
$
|
47
|
|
|
$
|
(153
|
)
|
Legacy Chubb
|
(150
|
)
|
|
(17
|
)
|
|
—
|
|
|
(22
|
)
|
|
(5
|
)
|
|
11
|
|
|
(183
|
)
|
|||||||
2015 As If
(1)
|
$
|
(246
|
)
|
|
$
|
(17
|
)
|
|
$
|
—
|
|
|
$
|
(90
|
)
|
|
$
|
(41
|
)
|
|
$
|
58
|
|
|
$
|
(336
|
)
|
Catastrophe losses, pre-tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Catastrophe losses, pre-tax
|
$
|
41
|
|
|
$
|
13
|
|
|
$
|
7
|
|
|
$
|
58
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
124
|
|
Legacy Chubb
|
59
|
|
|
82
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
150
|
|
|||||||
2015 As If
(1)
|
$
|
100
|
|
|
$
|
95
|
|
|
$
|
7
|
|
|
$
|
66
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
274
|
|
|
Six Months Ended June 30
|
|
|||||||||||||||||||||||||
(in millions of U.S. dollars)
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global Reinsurance
|
|
|
Corporate
|
|
|
Total P&C
|
|
|||||||
Loss and loss expenses
|
|||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss and loss expenses
|
$
|
3,718
|
|
|
$
|
1,322
|
|
|
$
|
256
|
|
|
$
|
2,110
|
|
|
$
|
176
|
|
|
$
|
24
|
|
|
$
|
7,606
|
|
14 day stub period
|
127
|
|
|
53
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
222
|
|
|||||||
2016 As If
|
$
|
3,845
|
|
|
$
|
1,375
|
|
|
$
|
256
|
|
|
$
|
2,152
|
|
|
$
|
176
|
|
|
$
|
24
|
|
|
$
|
7,828
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss and loss expenses
|
$
|
1,831
|
|
|
$
|
267
|
|
|
$
|
295
|
|
|
$
|
1,630
|
|
|
$
|
171
|
|
|
$
|
58
|
|
|
$
|
4,252
|
|
Legacy Chubb
|
1,869
|
|
|
1,176
|
|
|
—
|
|
|
546
|
|
|
—
|
|
|
26
|
|
|
3,617
|
|
|||||||
Accounting policy alignments
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(7
|
)
|
|
(22
|
)
|
|||||||
2015 As If
(1)
|
$
|
3,700
|
|
|
$
|
1,443
|
|
|
$
|
295
|
|
|
$
|
2,161
|
|
|
$
|
171
|
|
|
$
|
77
|
|
|
$
|
7,847
|
|
Policy acquisition costs
|
|||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policy acquisition costs
|
$
|
1,027
|
|
|
$
|
518
|
|
|
$
|
29
|
|
|
$
|
1,040
|
|
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
2,714
|
|
Amortization of acquired unearned premium reserves intangible asset
|
(605
|
)
|
|
(346
|
)
|
|
—
|
|
|
(144
|
)
|
|
—
|
|
|
—
|
|
|
(1,095
|
)
|
|||||||
Elimination of deferred acquisition cost benefit
|
513
|
|
|
286
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
—
|
|
|
965
|
|
|||||||
14 day stub period
|
33
|
|
|
14
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|||||||
2016 As If
|
$
|
968
|
|
|
$
|
472
|
|
|
$
|
29
|
|
|
$
|
1,075
|
|
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
2,644
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policy acquisition costs
|
$
|
261
|
|
|
$
|
30
|
|
|
$
|
19
|
|
|
$
|
785
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
1,209
|
|
Legacy Chubb
|
641
|
|
|
383
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
1,274
|
|
|||||||
Accounting policy alignment
|
63
|
|
|
6
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
|
|
|
134
|
|
|||||||
2015 As If
|
$
|
965
|
|
|
$
|
419
|
|
|
$
|
19
|
|
|
$
|
1,100
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
2,617
|
|
Amortization of acquired unearned premium reserves intangible asset
|
644
|
|
|
369
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
1,163
|
|
|||||||
Elimination of deferred acquisition cost benefit
|
(520
|
)
|
|
(299
|
)
|
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
(938
|
)
|
|||||||
2015 SEC pro forma
|
$
|
1,089
|
|
|
$
|
489
|
|
|
$
|
19
|
|
|
$
|
1,131
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
2,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses
|
$
|
565
|
|
|
$
|
186
|
|
|
$
|
(2
|
)
|
|
$
|
540
|
|
|
$
|
28
|
|
|
$
|
135
|
|
|
$
|
1,452
|
|
14 day stub period
|
35
|
|
|
13
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
3
|
|
|
63
|
|
|||||||
2016 As If
|
$
|
600
|
|
|
$
|
199
|
|
|
$
|
(2
|
)
|
|
$
|
552
|
|
|
$
|
28
|
|
|
$
|
138
|
|
|
$
|
1,515
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses
|
$
|
305
|
|
|
$
|
53
|
|
|
$
|
3
|
|
|
$
|
510
|
|
|
$
|
25
|
|
|
$
|
89
|
|
|
$
|
985
|
|
Legacy Chubb
|
353
|
|
|
138
|
|
|
—
|
|
|
173
|
|
|
5
|
|
|
21
|
|
|
690
|
|
|||||||
Accounting policy alignment
|
(63
|
)
|
|
(6
|
)
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
40
|
|
|
(91
|
)
|
|||||||
2015 As If
(1)
|
$
|
595
|
|
|
$
|
185
|
|
|
$
|
3
|
|
|
$
|
621
|
|
|
$
|
30
|
|
|
$
|
150
|
|
|
$
|
1,584
|
|
(Favorable) and unfavorable PPD, pre-tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2015 SEC pro forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Favorable) and unfavorable PPD, pre-tax
|
$
|
(126
|
)
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
|
$
|
(92
|
)
|
|
$
|
(41
|
)
|
|
$
|
56
|
|
|
$
|
(236
|
)
|
Legacy Chubb
|
(235
|
)
|
|
(22
|
)
|
|
—
|
|
|
(48
|
)
|
|
(6
|
)
|
|
19
|
|
|
(292
|
)
|
|||||||
2015 As If
(1)
|
$
|
(361
|
)
|
|
$
|
(22
|
)
|
|
$
|
(33
|
)
|
|
$
|
(140
|
)
|
|
$
|
(47
|
)
|
|
$
|
75
|
|
|
$
|
(528
|
)
|
Catastrophe losses, pre-tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2015 SEC pro forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Catastrophe losses, pre-tax
|
$
|
50
|
|
|
$
|
49
|
|
|
$
|
8
|
|
|
$
|
63
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
175
|
|
Legacy Chubb
|
116
|
|
|
289
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
414
|
|
|||||||
2015 As If
(1)
|
$
|
166
|
|
|
$
|
338
|
|
|
$
|
8
|
|
|
$
|
71
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
589
|
|
Other Income and Expense Items
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||
Equity in net (income) loss of partially-owned entities
|
$
|
(31
|
)
|
|
$
|
(40
|
)
|
|
$
|
(16
|
)
|
|
$
|
(73
|
)
|
(Gains) losses from fair value changes in separate account assets
(1)
|
(3
|
)
|
|
(6
|
)
|
|
—
|
|
|
(17
|
)
|
||||
Federal excise and capital taxes
|
5
|
|
|
5
|
|
|
6
|
|
|
8
|
|
||||
Acquisition-related costs
(2)
|
1
|
|
|
1
|
|
|
2
|
|
|
3
|
|
||||
Other
|
(1
|
)
|
|
2
|
|
|
7
|
|
|
6
|
|
||||
Other (income) expense
|
$
|
(29
|
)
|
|
$
|
(38
|
)
|
|
$
|
(1
|
)
|
|
$
|
(73
|
)
|
(1)
|
Related to (gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
|
(2)
|
Excludes integration costs related to the Chubb Corp acquisition.
|
Amortization of Purchased Intangibles and Other Amortization
|
|
Associated with the Chubb Corp Acquisition
|
|
|
|
||||||||||||||
For the Year Ending December 31
(in millions of U.S. dollars) |
Agency distribution relationships and renewal rights
|
|
Internally developed technology
|
|
Fair value adjustment to Unpaid losses and loss expense
|
|
Total
|
|
Other intangible assets
|
|
Total
Amortization of purchased intangibles
|
|
||||||
Third quarter of 2016
|
$
|
33
|
|
$
|
8
|
|
$
|
(61
|
)
|
$
|
(20
|
)
|
$
|
23
|
|
$
|
3
|
|
Fourth quarter of 2016
|
33
|
|
8
|
|
(61
|
)
|
(20
|
)
|
23
|
|
3
|
|
||||||
2017
|
296
|
|
32
|
|
(160
|
)
|
168
|
|
85
|
|
253
|
|
||||||
2018
|
324
|
|
32
|
|
(101
|
)
|
255
|
|
74
|
|
329
|
|
||||||
2019
|
281
|
|
—
|
|
(62
|
)
|
219
|
|
66
|
|
285
|
|
||||||
2020
|
240
|
|
—
|
|
(35
|
)
|
205
|
|
59
|
|
264
|
|
||||||
2021
|
217
|
|
—
|
|
(20
|
)
|
197
|
|
53
|
|
250
|
|
||||||
Total
|
$
|
1,424
|
|
$
|
80
|
|
$
|
(500
|
)
|
$
|
1,004
|
|
$
|
383
|
|
$
|
1,387
|
|
|
Associated with the Chubb Corp Acquisition
|
|
|||||||||
(in millions of U.S. dollars)
|
Amortization of UPR intangible asset
|
|
|
Benefit related to DAC elimination
|
|
|
Net increase to Policy acquisition costs
|
|
|||
Third quarter of 2016
|
$
|
320
|
|
|
$
|
(283
|
)
|
|
$
|
37
|
|
Fourth quarter of 2016
|
144
|
|
|
(127
|
)
|
|
17
|
|
|||
Total
|
$
|
464
|
|
|
$
|
(410
|
)
|
|
$
|
54
|
|
|
|
||
For the Year Ending December 31
(in millions of U.S. dollars) |
Reduction to deferred tax liability associated with intangible assets
|
|
|
Third quarter of 2016
|
$
|
(126
|
)
|
Fourth quarter of 2016
|
(65
|
)
|
|
2017
|
(115
|
)
|
|
2018
|
(125
|
)
|
|
2019
|
(98
|
)
|
|
2020
|
(84
|
)
|
|
2021
|
(76
|
)
|
|
Total
|
$
|
(689
|
)
|
Net Investment Income
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||
|
June 30
|
|
June 30
|
|
||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
2016
|
|
|
2015
|
|
||||
Fixed maturities
|
$
|
686
|
|
|
$
|
550
|
|
$
|
1,329
|
|
|
$
|
1,092
|
|
Short-term investments
|
22
|
|
|
10
|
|
45
|
|
|
23
|
|
||||
Equity securities
|
9
|
|
|
5
|
|
21
|
|
|
9
|
|
||||
Other investments
|
26
|
|
|
28
|
|
53
|
|
|
49
|
|
||||
Gross investment income
|
743
|
|
|
593
|
|
1,448
|
|
|
1,173
|
|
||||
Investment expenses
|
(35
|
)
|
|
(31
|
)
|
(66
|
)
|
|
(60
|
)
|
||||
Net investment income
|
$
|
708
|
|
|
$
|
562
|
|
$
|
1,382
|
|
|
$
|
1,113
|
|
Net Realized and Unrealized Gains (Losses)
|
|
Three Months Ended June 30, 2016
|
|
|
Three Months Ended June 30, 2015
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
Net
Realized
Gains
(Losses)
(1)
|
|
|
Net
Unrealized
Gains
(Losses)
|
|
|
Net
Impact
|
|
|
Net
Realized
Gains
(Losses)
(1)
|
|
|
Net
Unrealized
Gains
(Losses)
|
|
|
Net
Impact
|
|
||||||
Fixed maturities
|
$
|
7
|
|
|
$
|
954
|
|
|
$
|
961
|
|
|
$
|
5
|
|
|
$
|
(832
|
)
|
|
$
|
(827
|
)
|
Fixed income derivatives
|
(47
|
)
|
|
—
|
|
|
(47
|
)
|
|
27
|
|
|
—
|
|
|
27
|
|
||||||
Public equity
|
(5
|
)
|
|
33
|
|
|
28
|
|
|
29
|
|
|
(23
|
)
|
|
6
|
|
||||||
Private equity
|
13
|
|
|
(42
|
)
|
|
(29
|
)
|
|
11
|
|
|
5
|
|
|
16
|
|
||||||
Total investment portfolio
|
(32
|
)
|
|
945
|
|
|
913
|
|
|
72
|
|
|
(850
|
)
|
|
(778
|
)
|
||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges
|
(159
|
)
|
|
—
|
|
|
(159
|
)
|
|
102
|
|
|
—
|
|
|
102
|
|
||||||
Other derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Foreign exchange
|
(22
|
)
|
|
81
|
|
|
59
|
|
|
(40
|
)
|
|
136
|
|
|
96
|
|
||||||
Other
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
(13
|
)
|
||||||
Net gains (losses) before tax
|
(216
|
)
|
|
1,027
|
|
|
811
|
|
|
126
|
|
|
(720
|
)
|
|
(594
|
)
|
||||||
Income tax expense (benefit)
|
(1
|
)
|
|
213
|
|
|
212
|
|
|
7
|
|
|
(175
|
)
|
|
(168
|
)
|
||||||
Net gains (losses)
|
$
|
(215
|
)
|
|
$
|
814
|
|
|
$
|
599
|
|
|
$
|
119
|
|
|
$
|
(545
|
)
|
|
$
|
(426
|
)
|
(1)
|
For the three months ended
June 30, 2016
, other-than-temporary impairments included
$11 million
for fixed maturities and
$5 million
for public equity. For the three months ended
June 30, 2015
, other-than-temporary impairments included
$7 million
for fixed maturities and
$1 million
for public equity.
|
|
Six Months Ended June 30, 2016
|
|
|
Six Months Ended June 30, 2015
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
Net
Realized Gains (Losses) (1) |
|
|
Net
Unrealized Gains (Losses) |
|
|
Net
Impact |
|
|
Net
Realized Gains (Losses) (1) |
|
|
Net
Unrealized Gains (Losses) |
|
|
Net
Impact |
|
||||||
Fixed maturities
|
$
|
(183
|
)
|
|
$
|
2,042
|
|
|
$
|
1,859
|
|
|
$
|
1
|
|
|
$
|
(393
|
)
|
|
$
|
(392
|
)
|
Fixed income derivatives
|
(86
|
)
|
|
—
|
|
|
(86
|
)
|
|
28
|
|
|
—
|
|
|
28
|
|
||||||
Public equity
|
33
|
|
|
29
|
|
|
62
|
|
|
30
|
|
|
(6
|
)
|
|
24
|
|
||||||
Private equity
|
16
|
|
|
(69
|
)
|
|
(53
|
)
|
|
11
|
|
|
(7
|
)
|
|
4
|
|
||||||
Total investment portfolio
|
(220
|
)
|
|
2,002
|
|
|
1,782
|
|
|
70
|
|
|
(406
|
)
|
|
(336
|
)
|
||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges
|
(402
|
)
|
|
—
|
|
|
(402
|
)
|
|
45
|
|
|
—
|
|
|
45
|
|
||||||
Other derivatives
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Foreign exchange
|
17
|
|
|
393
|
|
|
410
|
|
|
(71
|
)
|
|
(285
|
)
|
|
(356
|
)
|
||||||
Other
|
(3
|
)
|
|
3
|
|
|
—
|
|
|
(6
|
)
|
|
7
|
|
|
1
|
|
||||||
Net gains (losses) before tax
|
(610
|
)
|
|
2,398
|
|
|
1,788
|
|
|
37
|
|
|
(684
|
)
|
|
(647
|
)
|
||||||
Income tax expense (benefit)
|
(5
|
)
|
|
482
|
|
|
477
|
|
|
8
|
|
|
(100
|
)
|
|
(92
|
)
|
||||||
Net gains (losses)
|
$
|
(605
|
)
|
|
$
|
1,916
|
|
|
$
|
1,311
|
|
|
$
|
29
|
|
|
$
|
(584
|
)
|
|
$
|
(555
|
)
|
(1)
|
For the six months ended
June 30, 2016
, other-than-temporary impairments included
$70 million
for fixed maturities,
$6 million
for public equity and
$3 million
for private equity. For the six months ended
June 30, 2015
, other-than-temporary impairments included
$20 million
for fixed maturities and
$1 million
for public equity.
|
Investments
|
|
June 30, 2016
|
|
|
December 31, 2015
|
|
||||||||||
(in millions of U.S. dollars)
|
Fair
Value
|
|
|
Cost/
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Cost/
Amortized
Cost
|
|
||||
Fixed maturities available for sale
|
$
|
79,951
|
|
|
$
|
77,436
|
|
|
$
|
43,587
|
|
|
$
|
43,149
|
|
Fixed maturities held to maturity
|
11,581
|
|
|
11,090
|
|
|
8,552
|
|
|
8,430
|
|
||||
Short-term investments
|
3,631
|
|
|
3,631
|
|
|
10,446
|
|
|
10,446
|
|
||||
|
95,163
|
|
|
92,157
|
|
|
62,585
|
|
|
62,025
|
|
||||
Equity securities
|
787
|
|
|
703
|
|
|
497
|
|
|
441
|
|
||||
Other investments
|
4,387
|
|
|
4,152
|
|
|
3,291
|
|
|
2,993
|
|
||||
Total investments
|
$
|
100,337
|
|
|
$
|
97,012
|
|
|
$
|
66,373
|
|
|
$
|
65,459
|
|
|
June 30, 2016
|
|
|
December 31, 2015
|
|
||||||||
(in millions of U.S. dollars, except for percentages)
|
Market
Value
|
|
|
% of Total
|
|
|
Market
Value
|
|
|
% of Total
|
|
||
Treasury
|
$
|
2,864
|
|
|
3
|
%
|
|
$
|
2,395
|
|
|
4
|
%
|
Agency
|
550
|
|
|
1
|
%
|
|
878
|
|
|
1
|
%
|
||
Corporate and asset-backed securities
|
25,450
|
|
|
27
|
%
|
|
17,985
|
|
|
28
|
%
|
||
Mortgage-backed securities
|
14,440
|
|
|
15
|
%
|
|
11,701
|
|
|
19
|
%
|
||
Municipal
|
24,975
|
|
|
26
|
%
|
|
4,950
|
|
|
8
|
%
|
||
Non-U.S.
|
23,253
|
|
|
24
|
%
|
|
14,230
|
|
|
23
|
%
|
||
Short-term investments
|
3,631
|
|
|
4
|
%
|
|
10,446
|
|
|
17
|
%
|
||
Total
|
$
|
95,163
|
|
|
100
|
%
|
|
$
|
62,585
|
|
|
100
|
%
|
AAA
|
$
|
17,412
|
|
|
18
|
%
|
|
$
|
14,369
|
|
|
23
|
%
|
AA
|
36,802
|
|
|
39
|
%
|
|
22,141
|
|
|
36
|
%
|
||
A
|
18,016
|
|
|
19
|
%
|
|
10,163
|
|
|
16
|
%
|
||
BBB
|
12,148
|
|
|
13
|
%
|
|
8,941
|
|
|
14
|
%
|
||
BB
|
6,465
|
|
|
7
|
%
|
|
3,775
|
|
|
6
|
%
|
||
B
|
4,061
|
|
|
4
|
%
|
|
3,018
|
|
|
5
|
%
|
||
Other
|
259
|
|
|
—
|
%
|
|
178
|
|
|
—
|
%
|
||
Total
|
$
|
95,163
|
|
|
100
|
%
|
|
$
|
62,585
|
|
|
100
|
%
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
JP Morgan Chase & Co
|
$
|
546
|
|
Wells Fargo & Co
|
468
|
|
|
General Electric Co
|
444
|
|
|
Goldman Sachs Group Inc
|
416
|
|
|
Bank of America Corp
|
385
|
|
|
Anheuser-Busch InBev NV
|
356
|
|
|
Verizon Communications Inc
|
355
|
|
|
AT&T Inc
|
334
|
|
|
Berkshire Hathaway Inc
|
321
|
|
|
Rabobank Nederland NV
|
310
|
|
|
S&P Credit Rating
|
|
|
Market
Value
|
|
|
Amortized Cost
|
|
|||||||||||||||||||
June 30, 2016 (in millions of U.S. dollars)
|
AAA
|
|
|
AA
|
|
|
A
|
|
|
BBB
|
|
|
BB and
below
|
|
|
Total
|
|
|
Total
|
|
|||||||
Agency residential mortgage-backed (RMBS)
|
$
|
—
|
|
|
$
|
11,360
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,360
|
|
|
$
|
10,976
|
|
Non-agency RMBS
|
4
|
|
|
6
|
|
|
10
|
|
|
8
|
|
|
35
|
|
|
63
|
|
|
62
|
|
|||||||
Commercial mortgage-backed
|
2,978
|
|
|
33
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
3,017
|
|
|
2,931
|
|
|||||||
Total mortgage-backed securities
|
$
|
2,982
|
|
|
$
|
11,399
|
|
|
$
|
16
|
|
|
$
|
8
|
|
|
$
|
35
|
|
|
$
|
14,440
|
|
|
$
|
13,969
|
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
Amortized Cost
|
|
||
United Kingdom
|
$
|
1,848
|
|
|
$
|
1,771
|
|
Canada
|
1,204
|
|
|
1,181
|
|
||
Republic of Korea
|
1,046
|
|
|
889
|
|
||
Federative Republic of Brazil
|
833
|
|
|
827
|
|
||
Germany
|
622
|
|
|
599
|
|
||
Province of Ontario
|
513
|
|
|
492
|
|
||
United Mexican States
|
489
|
|
|
481
|
|
||
Kingdom of Thailand
|
424
|
|
|
380
|
|
||
Province of Quebec
|
385
|
|
|
368
|
|
||
Australia
|
320
|
|
|
301
|
|
||
Other Non-U.S. Government Securities
(1)
|
4,303
|
|
|
4,138
|
|
||
Total
|
$
|
11,987
|
|
|
$
|
11,427
|
|
(1)
|
There are no investments in Portugal, Ireland, Italy, Greece or Spain.
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
Amortized Cost
|
|
||
United Kingdom
|
$
|
2,178
|
|
|
$
|
2,103
|
|
Canada
|
1,341
|
|
|
1,312
|
|
||
United States
(1)
|
906
|
|
|
882
|
|
||
France
|
870
|
|
|
835
|
|
||
Netherlands
|
805
|
|
|
776
|
|
||
Australia
|
660
|
|
|
639
|
|
||
Germany
|
541
|
|
|
518
|
|
||
Japan
|
429
|
|
|
424
|
|
||
Switzerland
|
347
|
|
|
339
|
|
||
China
|
279
|
|
|
267
|
|
||
Other Non-U.S. Corporate Securities
|
2,910
|
|
|
2,840
|
|
||
Total
|
$
|
11,266
|
|
|
$
|
10,935
|
|
Critical Accounting Estimates
|
|
June 30
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Reinsurance recoverable on unpaid losses and loss expenses
(1)
|
$
|
12,396
|
|
|
$
|
10,741
|
|
Reinsurance recoverable on paid losses and loss expenses
(1)
|
839
|
|
|
645
|
|
||
Reinsurance recoverable on losses and loss expenses
(1)
|
$
|
13,235
|
|
|
$
|
11,386
|
|
Reinsurance recoverable on policy benefits
(1)
|
$
|
199
|
|
|
$
|
187
|
|
(1)
|
Net of provision for uncollectible reinsurance
|
(in millions of U.S. dollars)
|
Gross
Losses
|
|
|
Reinsurance
Recoverable
(1)
|
|
|
Net
Losses
|
|
|||
Balance at December 31, 2015
|
$
|
37,303
|
|
|
$
|
10,741
|
|
|
$
|
26,562
|
|
Losses and loss expenses incurred
|
9,902
|
|
|
1,974
|
|
|
7,928
|
|
|||
Losses and loss expenses paid
|
(9,400
|
)
|
|
(1,895
|
)
|
|
(7,505
|
)
|
|||
Other (including foreign exchange translation)
|
108
|
|
|
68
|
|
|
40
|
|
|||
Losses and loss expenses acquired from Chubb Corp
|
22,906
|
|
|
1,508
|
|
|
21,398
|
|
|||
Balance at June 30, 2016
|
$
|
60,819
|
|
|
$
|
12,396
|
|
|
$
|
48,423
|
|
(1)
|
Net of provision for uncollectible reinsurance
|
|
June 30, 2016
|
|
|
December 31, 2015
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
Gross
|
|
|
Ceded
|
|
|
Net
|
|
|
Gross
|
|
|
Ceded
|
|
|
Net
|
|
||||||
Case reserves
|
$
|
22,533
|
|
|
$
|
5,758
|
|
|
$
|
16,775
|
|
|
$
|
16,647
|
|
|
$
|
5,291
|
|
|
$
|
11,356
|
|
IBNR reserves
|
38,286
|
|
|
6,638
|
|
|
31,648
|
|
|
20,656
|
|
|
5,450
|
|
|
15,206
|
|
||||||
Total
|
$
|
60,819
|
|
|
$
|
12,396
|
|
|
$
|
48,423
|
|
|
$
|
37,303
|
|
|
$
|
10,741
|
|
|
$
|
26,562
|
|
•
|
Estimates of the average modeled value of future cash outflows is recorded as incurred losses (i.e., benefit reserves). Cash inflows or revenue are reported as net premiums earned and changes in the benefit reserves are reflected as Policy benefits expense in the Consolidated statements of operations, which is included in underwriting income.
|
•
|
The incremental difference between the fair value of GLB reinsurance contracts and benefit reserves is reflected in Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets and related changes in fair value are reflected in Net realized gains (losses) in the Consolidated statements of operations.
|
Year of first payment eligibility
|
Percent of living benefit
account values
|
|
June 30, 2016 and prior
|
58
|
%
|
Remainder of 2016
|
4
|
%
|
2017
|
19
|
%
|
2018
|
11
|
%
|
2019
|
2
|
%
|
2020
|
1
|
%
|
2021 and after
|
5
|
%
|
Total
|
100
|
%
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||||||||||||||||||||||||||||||||||
GMDB
|
|
|
GLB
|
|
|
Total
|
|
|
GMDB
|
|
|
GLB
|
|
|
Total
|
|
|
GMDB
|
|
|
GLB
|
|
|
Total
|
|
|
GMDB
|
|
|
GLB
|
|
|
Total
|
|
|||||||||||||
Premium received
|
$
|
14
|
|
|
$
|
30
|
|
|
$
|
44
|
|
|
$
|
16
|
|
|
$
|
30
|
|
|
$
|
46
|
|
|
$
|
28
|
|
|
$
|
59
|
|
|
$
|
87
|
|
|
$
|
32
|
|
|
$
|
61
|
|
|
$
|
93
|
|
Less paid claims
|
13
|
|
|
6
|
|
|
19
|
|
|
9
|
|
|
4
|
|
|
13
|
|
|
23
|
|
|
17
|
|
|
40
|
|
|
17
|
|
|
7
|
|
|
24
|
|
||||||||||||
Net cash received
|
$
|
1
|
|
|
$
|
24
|
|
|
$
|
25
|
|
|
$
|
7
|
|
|
$
|
26
|
|
|
$
|
33
|
|
|
$
|
5
|
|
|
$
|
42
|
|
|
$
|
47
|
|
|
$
|
15
|
|
|
$
|
54
|
|
|
$
|
69
|
|
Catastrophe management
|
|
|
Modeled Annual Aggregate Net PML
|
||||||||||||||||||||||||||
|
|
U.S. Hurricane
|
|
California Earthquake
|
||||||||||||||||||||||||
|
|
June 30
|
|
|
June 30
|
|
|
June 30
|
|
|
June 30
|
|
||||||||||||||||
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
|
Chubb
|
|
% of Total
Shareholders’
Equity
|
|
% of
Industry
|
|
Chubb
|
|
Chubb
|
|
% of Total
Shareholders’
Equity
|
|
% of
Industry
|
|
Chubb
|
||||||||||||
1-in-100
|
|
$
|
3,310
|
|
|
7.0
|
%
|
|
2.1
|
%
|
|
$
|
1,766
|
|
|
$
|
1,504
|
|
|
3.2
|
%
|
|
3.8
|
%
|
|
$
|
769
|
|
1-in-250
|
|
$
|
5,717
|
|
|
12.1
|
%
|
|
2.7
|
%
|
|
$
|
2,452
|
|
|
$
|
2,114
|
|
|
4.5
|
%
|
|
3.5
|
%
|
|
$
|
1,063
|
|
Natural Catastrophe Property Reinsurance Program
|
Loss Location
|
|
Layer of Loss
|
|
Comments
|
Notes
|
United States
(excluding Alaska and Hawaii) |
|
$0 million
–
$1.0 billion
|
|
Losses retained by Chubb
|
(a)
|
United States
(excluding Alaska and Hawaii) |
|
$1.0 billion
–
$1.25 billion
|
|
All natural perils, and terrorism
|
(b)
|
United States
(excluding Alaska and Hawaii) |
|
$1.25 billion
–
$2.0 billion
|
|
All natural perils, and terrorism
|
(c)
|
United States
(excluding Alaska and Hawaii) |
|
$2.0 billion
–
$3.5 billion
|
|
All natural perils, and terrorism
|
(d)
|
International
(including Alaska and Hawaii) |
|
$0 million
–
$175 million
|
|
Losses retained by Chubb
|
(a)
|
International
(including Alaska and Hawaii) |
|
$175 million
–
$925 million
|
|
All natural perils, and terrorism
|
(c)
|
Alaska, Hawaii, and Canada
|
|
$925 million
–
$2.425 billion
|
|
All natural perils, and terrorism
|
(d)
|
(a)
Ultimate retention will depend upon the nature of the loss and the interplay between the underlying per risk programs and certain other catastrophe programs purchased by individual business units. These other catastrophe programs have the potential to reduce our effective retention below the stated levels.
|
(b)
These coverages are 20% placed with Reinsurers.
|
(c)
These coverages are both part of the same Second layer within the Global Catastrophe Program and are 100% placed with Reinsurers. As such, it may be exhausted in one region and not available in the other.
|
(d)
These coverages are both part of the same Third layer within the Global Catastrophe Program and are 100% placed with Reinsurers. As such, it may be exhausted in one region and not available in the other.
|
Crop Insurance
|
Liquidity
|
Capital Resources
|
|
June 30
|
|
|
December 31
|
|
||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
||
Short-term debt
|
$
|
500
|
|
|
$
|
—
|
|
Long-term debt
|
12,631
|
|
|
9,389
|
|
||
Total debt
|
13,131
|
|
|
9,389
|
|
||
Trust preferred securities
|
308
|
|
|
307
|
|
||
Total shareholders’ equity
|
47,226
|
|
|
29,135
|
|
||
Total capitalization
|
$
|
60,665
|
|
|
$
|
38,831
|
|
Ratio of debt to total capitalization
|
21.6
|
%
|
|
24.2
|
%
|
||
Ratio of debt plus trust preferred securities to total capitalization
|
22.1
|
%
|
|
25.0
|
%
|
Shareholders of record as of:
|
|
Dividends paid as of:
|
|
|
December 31, 2015
|
|
January 21, 2016
|
|
$0.67 (CHF 0.67)
|
March 31, 2016
|
|
April 21, 2016
|
|
$0.67 (CHF 0.66)
|
June 30, 2016
|
|
July 21, 2016
|
|
$0.69 (CHF 0.68)
|
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
|
(in billions of U.S. dollars, except for percentages)
|
June 30 2016
|
|
|
December 31 2015
|
|
|||
Fair value of fixed income portfolio
|
$
|
95.2
|
|
|
$
|
62.6
|
|
|
Pre-tax impact of 100 bps increase in interest rates:
|
|
|
|
|||||
|
In dollars
|
$
|
3.7
|
|
|
$
|
2.2
|
|
|
As a percentage of total fixed income portfolio at fair value
|
3.9
|
%
|
|
3.5
|
%
|
(in millions of U.S. dollars, except for percentages)
|
June 30 2016
|
|
|
December 31 2015
|
|
|||
Fair value of debt obligations, including repurchase agreements
|
$
|
16,003
|
|
|
$
|
11,528
|
|
|
Impact of 100 bps decrease in interest rates:
|
|
|
|
|
||||
In dollars
|
|
$
|
1,366
|
|
|
$
|
921
|
|
As a percentage of total debt obligations at fair value
|
|
8.5
|
%
|
|
8.0
|
%
|
|
|
June 30, 2016
|
|
December 31, 2015
|
|
|
2016 vs. 2015 % change in exchange rate per USD
|
|
||||||||
|
|
|
|
Exchange rate
|
|
|
|
Exchange rate
|
|
|
||||||
(in millions of U.S. dollars, except for percentages)
|
|
Net Assets
|
|
|
per USD
|
|
Net Assets
|
|
|
per USD
|
|
|
||||
British pound sterling (GBP)
|
|
$
|
2,900
|
|
|
1.3311
|
|
$
|
1,200
|
|
|
1.4736
|
|
|
(9.7
|
)%
|
Canadian dollar (CAD)
|
|
2,367
|
|
|
0.7737
|
|
507
|
|
|
0.7226
|
|
|
7.1
|
%
|
||
Euro (EUR)
|
|
1,778
|
|
|
1.1106
|
|
749
|
|
|
1.0862
|
|
|
2.2
|
%
|
||
Australian dollar (AUD)
|
|
1,340
|
|
|
0.7451
|
|
373
|
|
|
0.7286
|
|
|
2.3
|
%
|
||
Brazilian real (BRL)
|
|
1,197
|
|
|
0.3112
|
|
682
|
|
|
0.2525
|
|
|
23.2
|
%
|
||
Korean Won (KRW) (x100)
|
|
683
|
|
|
0.0868
|
|
613
|
|
|
0.0851
|
|
|
2.0
|
%
|
||
Mexican peso (MXN)
|
|
655
|
|
|
0.0547
|
|
683
|
|
|
0.0581
|
|
|
(5.9
|
)%
|
||
Japanese yen (JPY)
|
|
511
|
|
|
0.0097
|
|
493
|
|
|
0.0083
|
|
|
16.9
|
%
|
||
Thailand Baht (THB)
|
|
434
|
|
|
0.0285
|
|
377
|
|
|
0.0278
|
|
|
2.5
|
%
|
||
Other foreign currencies
|
|
1,742
|
|
|
various
|
|
1,189
|
|
|
various
|
|
|
NM
|
|
||
Net assets denominated in foreign currencies
|
|
$
|
13,607
|
|
|
|
|
$
|
6,866
|
|
|
|
|
|
||
As a percentage of total net assets
|
|
28.8
|
%
|
|
|
|
23.6
|
%
|
|
|
|
|
||||
Pre-tax impact on Shareholders' equity of a hypothetical 10 percent strengthening of the U.S. dollar
|
|
$
|
1,235
|
|
|
|
|
$
|
624
|
|
|
|
|
|
•
|
No changes to the benefit ratio used to establish benefit reserves at
June 30, 2016
|
•
|
Equity shocks impact all global equity markets equally
|
•
|
Our liabilities are sensitive to global equity markets in the following proportions:
70
percent—
80
percent U.S. equity,
10
percent—
20
percent international equity ex-Japan, up to
10
percent Japan equity.
|
•
|
Our current hedge portfolio is sensitive to global equity markets in the following proportions:
100 percent
U.S. equity.
|
•
|
We would suggest using the S&P 500 index as a proxy for U.S. equity, the MSCI EAFE index as a proxy for international equity, and the TOPIX as a proxy for Japan equity.
|
•
|
Interest rate shocks assume a parallel shift in the U.S. yield curve
|
•
|
Our liabilities are also sensitive to global interest rates at various points on the yield curve, mainly the U.S. Treasury curve in the following proportions: up to
10
percent short-term rates (maturing in less than 5 years),
20
percent—
30
percent medium-term rates (maturing between 5 years and 10 years, inclusive), and
70
percent—
80
percent long-term rates (maturing beyond 10 years).
|
•
|
A change in AA-rated credit spreads (AA-rated credit spreads are a proxy for both our own credit spreads and the credit spreads of the ceding insurers) impacts the rate used to discount cash flows in the fair value model.
|
•
|
The hedge sensitivity is from
June 30, 2016
market levels.
|
•
|
The sensitivities are not directly additive because changes in one factor will affect the sensitivity to changes in other factors. The sensitivities do not scale linearly and may be proportionally greater for larger movements in the market factors. The sensitivities may also vary due to foreign exchange rate fluctuations. The calculation of the FVL is based on internal models that include assumptions regarding future policyholder behavior, including lapse, annuitization, and asset allocation. These assumptions impact both the absolute level of the FVL as well as the sensitivities to changes in market factors shown below. Actual sensitivity of our net income may differ from those disclosed in the tables below due to differences between short-term market movements and management judgment regarding the long-term assumptions implicit in our benefit ratios. Furthermore, the sensitivities below could vary by multiples of the sensitivities in the tables below.
|
•
|
In addition, the tables below do not reflect the expected quarterly run rate of net income generated by the variable annuity guarantee reinsurance portfolio if markets remain unchanged during the period. All else equal, if markets remain unchanged during the period, the Gross FVL will increase, resulting in a realized loss. The realized loss occurs primarily because, during the period, we will collect premium on the full population while only
58
percent of that population has become eligible to annuitize and generate a claim (since approximately
42
percent of policies are not eligible to annuitize until after
June 30, 2016
). This increases the Gross FVL because future premiums are lower by the amount collected in the quarter, and also because future claims are discounted for a shorter period. We refer to this increase in Gross FVL as “timing effect”. The unfavorable impact of timing effect on our Gross FVL in a quarter is not reflected in the sensitivity tables below. For this reason, when using the tables below to estimate the sensitivity of Gross FVL in the third quarter to various changes, it is necessary to assume an additional
$5
million to
$45
million increase in Gross FVL and realized losses. However, the impact to Net income is substantially mitigated because the majority of this realized loss is offset by the positive quarterly run rate of Life underwriting income generated by the variable annuity guarantee reinsurance portfolio if markets remain unchanged during the period. Note that both the timing effect and the quarterly run rate of Life underwriting income change over time as the book ages.
|
Interest Rate Shock
|
Worldwide Equity Shock
|
|||||||||||||||||||||||
(in millions of U.S. dollars)
|
+10%
|
|
Flat
|
|
-10%
|
|
-20%
|
|
-30%
|
|
-40%
|
|||||||||||||
+100 bps
|
(Increase)/decrease in Gross FVL
|
$
|
599
|
|
|
$
|
357
|
|
|
$
|
53
|
|
|
$
|
(306
|
)
|
|
$
|
(718
|
)
|
|
$
|
(1,176
|
)
|
|
Increase/(decrease) in hedge value
|
(123
|
)
|
|
—
|
|
|
123
|
|
|
246
|
|
|
369
|
|
|
492
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
476
|
|
|
$
|
357
|
|
|
$
|
176
|
|
|
$
|
(60
|
)
|
|
$
|
(349
|
)
|
|
$
|
(684
|
)
|
Flat
|
(Increase)/decrease in Gross FVL
|
$
|
284
|
|
|
$
|
—
|
|
|
$
|
(345
|
)
|
|
$
|
(745
|
)
|
|
$
|
(1,193
|
)
|
|
$
|
(1,676
|
)
|
|
Increase/(decrease) in hedge value
|
(123
|
)
|
|
—
|
|
|
123
|
|
|
246
|
|
|
369
|
|
|
492
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
161
|
|
|
$
|
—
|
|
|
$
|
(222
|
)
|
|
$
|
(499
|
)
|
|
$
|
(824
|
)
|
|
$
|
(1,184
|
)
|
-100 bps
|
(Increase)/decrease in Gross FVL
|
$
|
(87
|
)
|
|
$
|
(408
|
)
|
|
$
|
(791
|
)
|
|
$
|
(1,225
|
)
|
|
$
|
(1,700
|
)
|
|
$
|
(2,194
|
)
|
|
Increase/(decrease) in hedge value
|
(123
|
)
|
|
—
|
|
|
123
|
|
|
246
|
|
|
369
|
|
|
492
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
(210
|
)
|
|
$
|
(408
|
)
|
|
$
|
(668
|
)
|
|
$
|
(979
|
)
|
|
$
|
(1,331
|
)
|
|
$
|
(1,702
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sensitivities to Other Economic Variables
|
AA-rated Credit Spreads
|
|
Interest Rate Volatility
|
|
Equity Volatility
|
|||||||||||||||||||
(in millions of U.S. dollars)
|
+100 bps
|
|
|
-100 bps
|
|
+2%
|
|
-2%
|
|
+2%
|
|
-2%
|
||||||||||||
(Increase)/decrease in Gross FVL
|
$
|
89
|
|
|
$
|
(103
|
)
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
(13
|
)
|
|
$
|
12
|
|
|
Increase/(decrease) in hedge value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Increase/(decrease) in net income
|
$
|
89
|
|
|
$
|
(103
|
)
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
(13
|
)
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sensitivities to Actuarial Assumptions
|
|
|
|
|
Mortality
|
|||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+20%
|
|
+10%
|
|
-10%
|
|
-20%
|
|||||||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
32
|
|
|
$
|
16
|
|
|
$
|
(17
|
)
|
|
$
|
(33
|
)
|
|||||
Increase/(decrease) in hedge value
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
32
|
|
|
$
|
16
|
|
|
$
|
(17
|
)
|
|
$
|
(33
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Lapses
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+50%
|
|
+25%
|
|
-25%
|
|
-50%
|
|||||||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
317
|
|
|
$
|
173
|
|
|
$
|
(211
|
)
|
|
$
|
(452
|
)
|
|||||
Increase/(decrease) in hedge value
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
317
|
|
|
$
|
173
|
|
|
$
|
(211
|
)
|
|
$
|
(452
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Annuitization
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+50%
|
|
+25%
|
|
-25%
|
|
-50%
|
|||||||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
(407
|
)
|
|
$
|
(224
|
)
|
|
$
|
290
|
|
|
$
|
643
|
|
|||||
Increase/(decrease) in hedge value
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
(407
|
)
|
|
$
|
(224
|
)
|
|
$
|
290
|
|
|
$
|
643
|
|
ITEM 4. Controls and Procedures
|
ITEM 1. Legal Proceedings
|
ITEM 1A. Risk Factors
|
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities
|
Period
|
Total
Number of
Shares
Purchased
(1)
|
|
|
Average Price
Paid per Share
|
|
|
April 1 through April 30
|
76,828
|
|
|
$
|
120.17
|
|
May 1 through May 31
|
115,408
|
|
|
$
|
123.61
|
|
June 1 through June 30
|
41,399
|
|
|
$
|
125.00
|
|
Total
|
233,635
|
|
|
$
|
122.73
|
|
(1)
|
This column includes activity related to the surrender to Chubb of common shares to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees and the exercising of options by employees.
|
ITEM 6. Exhibits
|
SIGNATURES
|
|
CHUBB LIMITED
|
|
(Registrant)
|
|
|
August 5, 2016
|
/s/ Evan G. Greenberg
|
|
Evan G. Greenberg
|
|
Chairman, President and Chief Executive Officer
|
|
|
August 5, 2016
|
/s/ Philip V. Bancroft
|
|
Philip V. Bancroft
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
Incorporated by Reference
|
|
|
||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Original
Number
|
|
Date Filed
|
|
Filed
Herewith
|
2.1
|
|
Agreement and Plan of Merger, by and among ACE Limited, William Investment Holdings Corporation and The Chubb Corporation, dated as of June 30, 2015
|
|
8-K
|
|
2.1
|
|
July 7, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1
|
|
Articles of Association of the Company, as amended
|
|
8-K
|
|
3.1
|
|
May 20, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
Organizational Regulations of the Company, as amended
|
|
8-K
|
|
3.1
|
|
March 2, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
Articles of Association of the Company, as amended
|
|
8-K
|
|
4.1
|
|
May 20, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
Organizational Regulations of the Company, as amended
|
|
8-K
|
|
3.1
|
|
March 2, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1*
|
|
Chubb Limited 2016 Long-Term Incentive Plan
|
|
S-8
|
|
4.4
|
|
May 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2*
|
|
Form of Incentive Stock Option Terms under the Chubb Limited 2016 Long-Term Incentive Plan
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.3*
|
|
Form of Restricted Stock Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.4*
|
|
Form of Restricted Stock Unit Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.5*
|
|
Form of Non-Qualified Stock Option Terms under the Chubb Limited 2016 Long-Term Incentive Plan
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.6*
|
|
Form of Incentive Stock Option Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Swiss Executive Management
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.7*
|
|
Form of Restricted Stock Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Swiss Executive Management
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.8*
|
|
Form of Restricted Stock Unit Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Swiss Executive Management
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.9*
|
|
Form of Non-Qualified Stock Option Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Swiss Executive Management
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
Certification Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
Certification Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
32.1
|
|
Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
32.2
|
|
Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
101.1
|
|
The following financial information from Chubb Limited’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 formatted in XBRL: (i) Consolidated Balance Sheets at June 30, 2016, and December 31, 2015; (ii) Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2016 and 2015; (iii) Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2016 and 2015; (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015; and (v) Notes to Consolidated Financial Statements
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The Option shall become fully exercisable upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s death or Long-Term Disability.
|
(b)
|
The Option shall become fully exercisable upon a Change in Control that occurs on or before the Date of Termination.
|
(c)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Retirement, vesting shall continue pursuant to the foregoing schedule following the Date of Termination. Following the Date of Termination the Restricted Period shall end in accordance with the above schedule.
|
(a)
|
the ten‑year anniversary of the Grant Date;
|
(b)
|
if the Participant's Date of Termination occurs by reason of death or Long-Term Disability, the one-year anniversary of such Date of Termination;
|
(c)
|
if the Participant's Date of Termination occurs by reason of Retirement, the date on which the Expiration Date would occur if the Participant's Date of Termination occurred on the ten-year anniversary of the Grant Date, or if earlier, the date of the Participant's death; or
|
(d)
|
if the Participant's Date of Termination occurs for any reason other than those listed in subparagraph (b) or (c) of this paragraph 4, the three-month anniversary of such Date of Termination.
|
(a)
|
Change in Control
. The term "Change in Control" shall be defined as set forth in the Plan.
|
(b)
|
Date of Termination
. A Participant's "Date of Termination" means, with respect to an employee, the date on which the Participant's employment with the Company and Subsidiaries terminates for any reason, and with respect to a Director, the date immediately following the last day on which the Participant serves as a Director; provided that a Date of Termination shall not be deemed to occur by reason of a Participant's transfer of employment between the Company and a Subsidiary or between two Subsidiaries; further provided that a Date of Termination shall not be deemed to occur by reason of a Participant's cessation of service as a Director if immediately following such cessation of service the Participant becomes or continues to be employed by the Company or a Subsidiary, nor by reason of a Participant's termination of employment with the Company or a Subsidiary if immediately following such termination of employment the Participant becomes or continues to be a Director; and further provided that a Participant's employment shall not be considered terminated while the Participant is on a leave of absence from the Company or a Subsidiary approved by the Participant's employer.
|
(a)
|
The “Participant” is the individual recipient of the Restricted Stock Award on the specified Grant Date.
|
(b)
|
The “Grant Date” is (
Insert Date
)
|
(c)
|
The number of “Covered Shares” shall be that number of shares of Stock awarded to the Participant on the Grant Date as reflected in the corporate records and shown in the Record-Keeping System in the Participant’s individual account records.
|
(a)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, the Restricted Period for such Installments shall end upon the Participant’s Date of Termination, if the Date of Termination occurs by reason of the Participant’s death.
|
(b)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, the Restricted Period for such Installments shall end upon the Participant’s Date of Termination, if the Date of Termination occurs by reason of the Participant’s Long-Term Disability.
|
(c)
|
For Installments as to which the Restricted Period has not ended prior to the date of a Change in Control, the Restricted Period for such Installments shall end upon a Change in Control, provided that such Change in Control occurs on or before the Date of Termination.
|
(a)
|
Change in Control
. The term “Change in Control” shall be defined as set forth in the Plan.
|
(b)
|
Date of Termination
. A Participant’s “Date of Termination” means, with respect to an employee, the date on which the Participant’s employment with the Company and Related Companies terminates for any reason, and with respect to a Director, the date immediately following the last day on which the Participant serves as a Director; provided that a Date of Termination shall not be
|
(c)
|
Director
. The term “Director” means a member of the Board, who may or may not be an employee of the Company or a Related Company.
|
(d)
|
Long-Term Disability
. A Participant shall be considered to have a “Long-Term Disability” if the Participant is determined to be eligible for long-term disability benefits under the long-term disability plan in which the Participant participates and which is sponsored by the Company or a Related Company; or if the Participant does not participate in a long-term disability plan sponsored by the Company or a Related Company, then the Participant shall be considered to have a “Long-Term Disability” if the Committee determines, under standards comparable to those of the Company’s long-term disability plan, that the Participant would be eligible for long-term disability benefits if he or she participated in such plan.
|
(e)
|
Plan Definitions
. Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan is similarly used in these Restricted Stock Award Terms.
|
(a)
|
The Option shall become fully exercisable upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s death or Long-Term Disability.
|
(b)
|
The Option shall become fully exercisable upon a Change in Control that occurs on or before the Date of Termination.
|
(c)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Retirement, vesting shall continue pursuant to the foregoing schedule following the Date of Termination. Following the Date of Termination the Restricted Period shall end in accordance with the above schedule.
|
(a)
|
the ten year anniversary of the Grant Date;
|
(b)
|
if the Participant's Date of Termination occurs by reason of death or Long-Term Disability, the one-year anniversary of such Date of Termination;
|
(c)
|
if the Participant's Date of Termination occurs by reason of Retirement, the date on which the Expiration Date would occur if the Participant's Date of Termination occurred on the ten-year anniversary of the Grant Date, or if earlier, the date of the Participant's death; or
|
(d)
|
if the Participant's Date of Termination occurs for any reason other than those listed in subparagraph (b) or (c) of this paragraph 4, the three-month anniversary of such Date of Termination.
|
(a)
|
Change in Control
. The term "Change in Control" shall be defined as set forth in the Plan.
|
(b)
|
Date of Termination
. A Participant's "Date of Termination" means, with respect to an employee, the date on which the Participant's employment with the Company and Subsidiaries terminates for any reason, and with respect to a Director, the date immediately following the last day on which the Participant serves as a Director; provided that a Date of Termination shall not be deemed to occur by reason of a Participant's transfer of employment between the Company and a Subsidiary or between two Subsidiaries; further provided that a Date of Termination shall not be deemed to occur by reason of a Participant's cessation of service as a Director if immediately following such cessation of service the Participant becomes or continues to be employed by the Company or a Subsidiary, nor by reason of a Participant's termination of employment with the Company or a Subsidiary if immediately following such termination of employment the Participant becomes or continues to be a Director; and further provided that a Participant's employment shall not be considered terminated while the Participant is on a leave of absence from the Company or a Subsidiary approved by the Participant's employer.
|
(c)
|
Director
. The term "Director" means a member of the Board, who may or may not be an employee of the Company or a Subsidiary.
|
(d)
|
Long-Term Disability
. A Participant shall be considered to have a “Long-Term Disability” if the Participant is determined to be eligible for long-term disability benefits under the long-term disability plan in which the Participant participates and which is sponsored by the Company or a Related Company; or if the Participant does not participate in a long-term disability plan sponsored by the Company or a Related Company, then the Participant shall be considered to have a “Long-Term Disability” if the Committee determines, under standards comparable to those of the Company’s long-term disability plan, that the Participant would be eligible for long-term disability benefits if he or she participated in such plan.
|
(e)
|
Retirement
. The term “Retirement” means an employee who’s Date of Termination occurs after satisfying all of the following: (i) the employee has provided at least ten years of service with the Company or a Related Company; (ii) the employee has attained at least age 62; and (iii) the employee terminates employment in good standing with the Company or a Related Company, and
|
(f)
|
Plan Definitions
. Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan is similarly used in these Option Terms.
|
(a)
|
The Option shall become fully exercisable upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s death or Long-Term Disability.
|
(b)
|
If the Participant’s Date of Termination is a Change in Control Date of Termination, then, for Installments, if any, as to which the Restricted Period has not ended prior to the Participant’s Date of Termination, the Restricted Period will end and such Installments will become exercisable on the Change in Control Date of Termination; provided that if the Participant’s Change in Control Date of Termination occurs within the 180-day period immediately preceding the date of a Change in Control, then all unvested Installments held by the Participant on the Date of Termination will become exercisable on the date of the Change in Control. If the originally scheduled expiration date for the Option occurs before the date of the Change in Control, then the Option will not become exercisable under this paragraph (b).
|
(c)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Retirement, vesting shall continue pursuant to the foregoing schedule following the Date of Termination. Following the Date of Termination the Restricted Period shall end in accordance with the above schedule.
|
(d)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Qualifying Termination, vesting shall continue pursuant to the vesting schedule in this paragraph 3 following the Date of Termination as though the Participant continued to be employed through the two-year anniversary of the Participant’s Date of Termination, subject to the Participant not engaging in any Competitive Activity during such two-year period and subject to the Participant signing and not revoking a general release and waiver of all claims against the Company and such release becomes effective no later than the sixty-day anniversary of the Date of Termination. If such release is not effective within such sixty-day period or in the event that the Participant engages in a Competitive Activity prior to the last day of the Restricted Period for any Installment, the Participant shall immediately forfeit any unvested Installments.
|
(a)
|
the ten‑year anniversary of the Grant Date;
|
(b)
|
if the Participant's Date of Termination occurs by reason of death or Long-Term Disability, the one-year anniversary of such Date of Termination;
|
(c)
|
if the Participant's Date of Termination occurs by reason of Retirement, the ten-year anniversary of the Grant Date, or if earlier, the date of the Participant's death;
|
(d)
|
if the Participant’s Date of Termination occurs by reason of the Participant’s Qualifying Termination or the Participant’s Change in Control Date of Termination, the three-year anniversary of the Participant’s Date of Termination; or
|
(e)
|
if the Participant's Date of Termination occurs for any reason other than those listed in subparagraph (b), (c) or (d) of this paragraph 4, then subject to paragraph 3(b), the three-month anniversary of such Date of Termination.
|
(a)
|
Cause
. The term “Cause” shall mean - unless otherwise defined in an employment agreement between the Participant and the Company or Subsidiary - the occurrence of any of the following:
|
(b)
|
Change in Control
. The term "Change in Control" shall be defined as set forth in the Plan.
|
(c)
|
Change in Control Date of Termination
. The term “Change in Control Date of Termination” means the Participant’s Date of Termination occurs because the Company and/or any of the Related Companies terminates the Participant’s employment with the Company and/or the Related Companies without Cause (other than due to death, a Long-Term Disability or a Retirement) or because the Participant terminates his or her employment for Good Reason, provided that such termination in accordance with this paragraph 8(c) occurs during the period commencing on the 180
th
day immediately preceding a Change in Control date and ending on the two-year anniversary of such Change in Control date.
|
(d)
|
Competitive Activity
. The term “Competitive Activity” means the Participant’s: (i) engagement in an activity - whether as an employee, consultant, principal, member, agent, officer, director, partner or shareholder (except as a less than 1% shareholder of a publicly traded company) - that is competitive with any business of the Company or any Subsidiary conducted by the Company or such Subsidiary during the Participant’s employment with the Company or the two-year period following the Date of Termination; (ii) solicitation of any client and/or customer of the Company or any affiliate with respect to an activity prohibited by subparagraph (c)(i); (iii) solicitation or employment of any employee of the Company or any affiliate for the purpose of causing such employee to terminate his or her employment with the Company or such affiliate; or (iv) failure to keep confidential all Company trade secrets, proprietary and confidential information.
|
(e)
|
Date of Termination
. A Participant's "Date of Termination" means, with respect to an employee, the date on which the Participant's employment with the Company and Subsidiaries terminates for any reason, and with respect to a Director, the date immediately following the last day on which the Participant serves as a Director; provided that a Date of Termination shall not be deemed to occur by reason of a Participant's transfer of employment between the Company and a Subsidiary or between two Subsidiaries; further provided that a Date of Termination shall not be deemed to occur by reason of a Participant's cessation of service as a Director if immediately following such cessation of service the Participant becomes or continues to be employed by the Company or a Subsidiary, nor by reason of a Participant's termination of employment with the Company or a
|
(f)
|
Director
. The term "Director" means a member of the Board, who may or may not be an employee of the Company or a Subsidiary.
|
(g)
|
Forfeiture Payment
. The term “Forfeiture Payment” means the amount of any gain on any Options exercised by the Participant during the Restrictive Covenant Period pursuant to this Agreement equal to the amount included in the Participant’s income for such exercise.
|
(h)
|
Good Reason
. The term “Good Reason” shall mean - unless otherwise defined in an employment agreement between the Participant and the Company or Subsidiary - the occurrence of any of the following within the sixty-day period preceding a Date of Termination without the Participant’s prior written consent:
|
(i)
|
Long-Term Disability
. A Participant shall be considered to have a “Long-Term Disability” if the Participant is determined to be eligible for long-term disability benefits under the long-term disability plan in which the Participant participates and which is sponsored by the Company or a Related Company; or if the Participant does not participate in a long-term disability plan sponsored by the Company or a Related Company, then the Participant shall be considered to have a “Long-Term Disability” if the Committee determines, under standards comparable to those of the Company’s long-term disability plan, that the Participant would be eligible for long-term disability benefits if he or she participated in such plan.
|
(j)
|
Qualifying Termination
. The term “Qualifying Termination” means the Participant’s Date of Termination that occurs because the Company and/or any of the Related Companies terminates the Participant’s employment with the Company and/or the Related Companies without Cause. For the avoidance of doubt, the termination of the Participant’s employment due to death or Long-Term Disability, or a voluntary termination of the Participant’s employment by the Participant for any reason (including Good Reason or Retirement) shall not constitute a Qualifying Termination for the purposes of this Agreement.
|
(k)
|
Restrictive Covenant Period
. The term “Restrictive Covenant Period” means the twenty-four month period following a Date of Termination due to a Qualifying Termination or a Retirement.
|
(l)
|
Retirement
. The term “Retirement” means an employee who’s Date of Termination occurs after satisfying all of the following: (i) the employee has provided at least ten years of service with the
|
(m)
|
Plan Definitions
. Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan is similarly used in these Option Terms.
|
(a)
|
The “Participant” is the individual recipient of the Restricted Stock Award on the specified Grant Date.
|
(b)
|
The “Grant Date” is (
Insert Date
).
|
(c)
|
The number of “Covered Shares” shall be that number of shares of Stock awarded to the Participant on the Grant Date as reflected in the corporate records and shown in the Record-Keeping System in the Participant’s individual account records.
|
(a)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, the Restricted Period for such Installments shall end upon the Participant’s Date of Termination, if the Date of Termination occurs by reason of the Participant’s death.
|
(b)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, the Restricted Period for such Installments shall end upon the Participant’s Date of Termination, if the Date of Termination occurs by reason of the Participant’s Long-Term Disability.
|
(c)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Qualifying Termination, vesting shall continue pursuant to the Vesting Schedule following the Date of Termination as though the
|
(d)
|
If the Participant’s Date of Termination is a Change in Control Date of Termination, then, for Installments, if any, as to which the Restricted Period has not ended prior to the Participant’s Date of Termination, the Restricted Period will end on the Change in Control Date of Termination; provided that if the Participant’s Change in Control Date of Termination occurs within the 180-day period immediately preceding the date of a Change in Control, then the Restricted Period for all unvested Installments held by the Participant on the Date of Termination will end, and those Installments will vest on the date of a Change in Control.
|
(a)
|
Cause
. The term “Cause” shall mean - unless otherwise defined in an employment agreement between the Participant and the Company or Subsidiary - the occurrence of any of the following:
|
(b)
|
Change in Control
. The term “Change in Control” shall be defined as set forth in the Plan.
|
(c)
|
Change in Control Date of Termination
. The term “Change in Control Date of Termination” means the Participant’s Date of Termination that occurs because the Company and/or any of the Related Companies terminates the Participant’s employment with the Company and/or the Related Companies without Cause (other than due to death, a Long-Term Disability or a retirement) or because the Participant terminates his or her employment for Good Reason, provided that such termination in accordance with this subparagraph (9)(c) occurs during the period commencing on the 180th day immediately preceding a Change in Control date and ending on the two year anniversary of such Change in Control date.
|
(d)
|
Competitive Activity
. The term “Competitive Activity” means the Participant’s: (i) engagement in an activity - whether as an employee, consultant, principal, member, agent, officer, director, partner or shareholder (except as a less than 1% shareholder of a publicly traded company) - that is competitive with any business of the Company or any Subsidiary conducted by the Company or such Subsidiary during the Participant’s employment with the Company or the two-year period following the Date of Termination; (ii) solicitation of any client and/or customer of the Company or any affiliate with respect to an activity prohibited by subparagraph (c)(i); (iii) solicitation or employment of any employee of the Company or any affiliate for the purpose of causing such employee to terminate his or her employment with the Company or such affiliate; or (iv) failure to keep confidential all Company trade secrets, proprietary and confidential information.
|
(e)
|
Date of Termination
. A Participant’s “Date of Termination” means, with respect to an employee, the date on which the Participant’s employment with the Company and Related Companies terminates for any reason, and with respect to a Director, the date immediately following the last day on which the Participant serves as a Director; provided that a Date of Termination shall not be deemed to occur by reason of a Participant’s transfer of employment between the Company and a Related Company or between two Related Companies; further provided that a Date of Termination shall not be deemed to occur by reason of a Participant’s cessation of service as a Director if immediately following such cessation of service the Participant becomes or continues to be employed by the Company or a Related Company, nor by reason of a Participant’s termination of employment with the Company or a Related Company if immediately following such termination of employment the Participant becomes or continues to be a Director; and further provided that a Participant’s employment shall not be considered terminated while the Participant is on a leave of absence from the Company or a Related Company approved by the Participant’s employer.
|
(f)
|
Director
. The term “Director” means a member of the Board, who may or may not be an employee of the Company or a Related Company.
|
(g)
|
Forfeiture Payment
. The term “Forfeiture Payment” means the pre-tax proceeds from sales or other transfers, if any, of the number of shares of Stock that became vested on the Date of
|
(h)
|
Forfeiture Shares
. The term “Forfeiture Shares” means the number of shares of Stock that became vested on the Date of Termination or during the Restrictive Covenant Period pursuant to this Agreement and that remain held by the Participant as of the date of repayment required pursuant to subparagraph 15(b). It is the Participant’s responsibility to ensure that the shares of Stock delivered as Forfeiture Shares are the shares of Stock delivered previously pursuant to this Agreement. In the absence of Company records or written documentation from Participant’s broker demonstrating this fact, the Participant must deliver to the Company the Forfeiture Payment determined as of the date that such shares of Stock delivered pursuant to this Agreement are transferred from Participant’s stock account or otherwise become indistinguishable from other shares of Stock that the Participant may hold.
|
(a)
|
Good Reason
. The term “Good Reason”
shall mean - unless otherwise defined in an in-force employment agreement between the Participant and the Company or Subsidiary - the occurrence of any of the following within the 60-day period preceding a Date of Termination without the Participant’s prior written consent:
|
(i)
|
Long-Term Disability
. A Participant shall be considered to have a “Long-Term Disability” if the Participant is determined to be eligible for long-term disability benefits under the long-term disability plan in which the Participant participates and which is sponsored by the Company or a Related Company; or if the Participant does not participate in a long-term disability plan sponsored by the Company or a Related Company, then the Participant shall be considered to have a “Long-Term Disability” if the Committee determines, under standards comparable to those of the Company’s long-term disability plan, that the Participant would be eligible for long-term disability benefits if he or she participated in such plan.
|
(j)
|
Plan Definitions
. Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan is similarly used in these Restricted Stock Award Terms.
|
(k)
|
Qualifying Termination
. The term “Qualifying Termination” means the Participant’s Date of Termination that occurs because the Company and/or any of the Related Companies terminates the Participant’s employment with the Company and/or the Related Companies without Cause. For the avoidance of doubt, the termination of the Participant’s employment due to death or Long-Term Disability, or a voluntary termination of the Participant’s employment by the Participant for any reason (including Good Reason or retirement) shall not constitute a Qualifying Termination for purposes of this Agreement.
|
(l)
|
Restrictive Covenant Period
. The term “Restrictive Covenant Period” means the twenty-four month period following a Date of Termination due to a Qualifying Termination.
|
(a)
|
The “Participant” is the individual recipient of the Non-Qualified Stock Option Award on the specified Grant Date.
|
(b)
|
The “Grant Date” is
[Insert Date]
.
|
(c)
|
The number of “Covered Shares” shall be that number of shares of Stock awarded to the Participant on the Grant Date as reflected in the corporate records and shown in the Record-Keeping System in the Participant’s individual account records.
|
(d)
|
The “Exercise Price” is $
[Insert Price]
per share.
|
INSTALLMENT
|
VESTING DATE
APPLICABLE TO
INSTALLMENT
|
1/3 of Covered Shares
|
One-year anniversary of the Grant Date
|
1/3 of Covered Shares
|
Two-year anniversary of the Grant Date
|
1/3 of Covered Shares
|
Three-year anniversary of the Grant Date
|
(a)
|
The Option shall become fully exercisable upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s death or Long-Term Disability.
|
(b)
|
If the Participant’s Date of Termination is a Change in Control Date of Termination, then, for Installments, if any, as to which the Restricted Period has not ended prior to the Participant’s Date of Termination, the Restricted Period will end and such Installments will become exercisable on the Change in Control Date of Termination; provided that if the Participant’s Change in Control Date of Termination occurs within the 180-day period immediately preceding the date of a Change
|
(c)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Retirement, vesting shall continue pursuant to the foregoing schedule following the Date of Termination. Following the Date of Termination the Restricted Period shall end in accordance with the above schedule.
|
(d)
|
For Installments as to which the Restricted Period has not ended prior to the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Qualifying Termination, vesting shall continue pursuant to the vesting schedule in this paragraph 3 following the Date of Termination as though the Participant continued to be employed through the two-year anniversary of the Participant’s Date of Termination, subject to the Participant not engaging in any Competitive Activity during such two-year period and subject to the Participant signing and not revoking a general release and waiver of all claims against the Company and such release becomes effective no later than the sixty-day anniversary of the Date of Termination. If such release is not effective within such sixty-day period or in the event that the Participant engages in a Competitive Activity prior to the last day of the Restricted Period for any Installment, the Participant shall immediately forfeit any unvested Installments.
|
(a)
|
the ten-year anniversary of the Grant Date;
|
(b)
|
if the Participant’s Date of Termination occurs by reason of death or Long-Term Disability, the one-year anniversary of such Date of Termination;
|
(c)
|
if the Participant’s Date of Termination occurs by reason of Retirement, the ten-year anniversary of the Grant Date
[, or if earlier, the date of the Participant’s death]
;
|
(d)
|
if the Participant’s Date of Termination occurs by reason of the Participant’s Qualifying Termination or the Participant’s Change in Control Date of Termination, the three-year anniversary of the Participant’s Date of Termination; or
|
(e)
|
if the Participant’s Date of Termination occurs for any reason other than those listed in subparagraph (b), (c) or (d) of this paragraph 4, then subject to paragraph 3(b), the three-month anniversary of such Date of Termination.
|
(a)
|
Cause
. The term “Cause” shall mean - unless otherwise defined in an employment agreement between the Participant and the Company or Subsidiary - the occurrence of any of the following:
|
(b)
|
Change in Control
. The term “Change in Control” shall be defined as set forth in the Plan.
|
(c)
|
Change in Control Date of Termination
. The term “Change in Control Date of Termination” means the Participant’s Date of Termination occurs because the Company and/or any of the Related Companies terminates the Participant’s employment with the Company and/or the Related Companies without Cause (other than due to death, a Long-Term Disability or a Retirement) or because the Participant terminates his or her employment for Good Reason, provided that such termination in accordance with this paragraph 8(c) occurs during the period commencing on the 180th day immediately preceding a Change in Control date and ending on the two-year anniversary of such Change in Control date.
|
(d)
|
Competitive Activity
. The term “Competitive Activity” means the Participant’s: (i) engagement in an activity - whether as an employee, consultant, principal, member, agent, officer, director, partner or shareholder (except as a less than 1% shareholder of a publicly traded company) - that is competitive with any business of the Company or any Subsidiary conducted by the Company or such Subsidiary during the Participant’s employment with the Company or the two-year period following the Date of Termination; (ii) solicitation of any client and/or customer of the Company or any affiliate with respect to an activity prohibited by subparagraph (c)(i); (iii) solicitation or employment of any employee of the Company or any affiliate for the purpose of causing such employee to terminate his or her employment with the Company or such affiliate; or (iv) failure to keep confidential all Company trade secrets, proprietary and confidential information.
|
(e)
|
Date of Termination
. A Participant’s “Date of Termination” means, with respect to an employee, the date on which the Participant’s employment with the Company and Subsidiaries terminates for any reason, and with respect to a Director, the date immediately following the last day on which the Participant serves as a Director; provided that a Date of Termination shall not be deemed to occur by reason of a Participant’s transfer of employment between the Company and a Subsidiary or between two Subsidiaries; further provided that a Date of Termination shall not be deemed to occur by reason of a Participant’s cessation of service as a Director if immediately following such cessation of service the Participant becomes or continues to be employed by the Company or a Subsidiary, nor by reason of a Participant’s termination of employment with the Company or a Subsidiary if immediately following such termination of employment the Participant becomes or continues to be a Director; and further provided that a Participant’s employment shall not be considered terminated while the Participant is on a leave of absence from the Company or a Subsidiary approved by the Participant’s employer.
|
(f)
|
Director
. The term “Director” means a member of the Board, who may or may not be an employee of the Company or a Subsidiary.
|
(g)
|
Forfeiture Payment
. The term “Forfeiture Payment” means the amount of any gain on any Options exercised by the Participant during the Restrictive Covenant Period pursuant to this Agreement equal to the amount included in the Participant’s income for such exercise.
|
(h)
|
Good Reason
. The term “Good Reason”
shall mean - unless otherwise defined in an employment agreement between the Participant and the Company or Subsidiary - the occurrence of any of the following within the sixty-day period preceding a Date of Termination without the Participant’s prior written consent:
|
(i)
|
Long-Term Disability
. A Participant shall be considered to have a “Long-Term Disability” if the Participant is determined to be eligible for long-term disability benefits under the long-term disability plan in which the Participant participates and which is sponsored by the Company or a Related Company; or if the Participant does not participate in a long-term disability plan sponsored by the Company or a Related Company, then the Participant shall be considered to have a “Long-Term Disability” if the Committee determines, under standards comparable to those of the Company’s long-term disability plan, that the Participant would be eligible for long-term disability benefits if he or she participated in such plan.
|
(j)
|
Qualifying Termination
. The term “Qualifying Termination” means the Participant’s Date of Termination that occurs because the Company and/or any of the Related Companies terminates the Participant’s employment with the Company and/or the Related Companies without Cause. For the avoidance of doubt, the termination of the Participant’s employment due to death or Long-Term Disability, or a voluntary termination of the Participant’s employment by the Participant for any reason (including Good Reason or Retirement) shall not constitute a Qualifying Termination for the purposes of this Agreement.
|
(k)
|
Restrictive Covenant Period
. The term “Restrictive Covenant Period” means the twenty-four month period following a Date of Termination due to a Qualifying Termination or a Retirement.
|
(l)
|
Retirement
. The term “Retirement” means an employee who’s Date of Termination occurs after satisfying all of the following: (i) the employee has provided at least ten years of service with the Company or a Related Company; (ii) the employee has attained at least age 62; (iii) the employee terminates employment in good standing with the Company or a Related Company; and (iv) the employee executes an agreement and release as required by the Company which will include, without limitation, a general release, and non-competition and non-solicitation provisions. However, with respect to exercising vested options pursuant to 4(c), above, “Retirement” shall mean the occurrence of a Participant’s Date of Termination with the consent of the Participant’s employer after the Participant is eligible for early retirement or normal retirement under a retirement plan maintained by the Company or the Subsidiaries.
|
(m)
|
Plan Definitions
. Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan is similarly used in these Option Terms.
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Chubb Limited;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5)
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
/s/ Evan G. Greenberg
|
Evan G. Greenberg
|
Chairman, President and Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Chubb Limited;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5)
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
/s/ Philip V. Bancroft
|
Philip V. Bancroft
|
Executive Vice President and Chief Financial Officer
|
Dated: August 5, 2016
|
/s/ Evan G. Greenberg
|
|
Evan G. Greenberg
|
|
Chairman, President and Chief Executive Officer
|
Dated: August 5, 2016
|
/s/ Philip V. Bancroft
|
|
Philip V. Bancroft
|
|
Executive Vice President and Chief Financial Officer
|