Switzerland
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98-0091805
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Name of each exchange on which registered
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Common Shares, par value CHF 24.15 per share
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New York Stock Exchange
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
¨
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Documents Incorporated by Reference
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PART I
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Page
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ITEM 1.
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ITEM 1A.
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ITEM 1B.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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PART II
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ITEM 5.
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ITEM 6.
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ITEM 7.
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ITEM 7A.
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ITEM 8.
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ITEM 9.
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ITEM 9A.
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ITEM 9B.
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PART III
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ITEM 10.
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ITEM 11.
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ITEM 12.
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ITEM 13.
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ITEM 14.
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PART IV
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ITEM 15.
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Years Ended December 31
(in millions of U.S. dollars, except for percentages)
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2016 Net Premiums Earned
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% of Total
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2015 Net Premiums Earned
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% of Total
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2014 Net Premiums Earned
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% of Total
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North America Commercial P&C Insurance
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$
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12,217
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43
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%
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$
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5,634
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33
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%
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$
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5,547
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32
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%
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North America Personal P&C Insurance
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4,319
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15
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%
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948
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5
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%
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560
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3
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%
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North America Agricultural Insurance
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1,316
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5
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%
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1,364
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8
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%
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1,526
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9
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%
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Overseas General Insurance
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8,132
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28
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%
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6,471
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38
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%
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6,805
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39
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%
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Global Reinsurance
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710
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2
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%
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849
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5
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%
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1,026
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6
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%
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Life Insurance
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2,055
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7
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%
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1,947
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11
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%
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1,962
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11
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%
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Total
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$
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28,749
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100
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%
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$
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17,213
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100
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%
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$
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17,426
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100
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%
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•
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Major Accounts, a retail division focused on large institutional organizations and corporate companies
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•
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Commercial Insurance, including Small Commercial Insurance, retail divisions focused on middle market customers and small businesses
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•
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Westchester and Chubb Bermuda, our wholesale and specialty divisions
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•
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Chubb Global Casualty offers a range of customized risk management primary casualty products designed to help large insureds, including national accounts, address the significant costs of financing and managing risk for workers’ compensation, general liability and automobile liability coverages. Chubb Global Casualty also provides products which insure specific global operating risks of U.S.-based multinational companies and include deductible programs, captive programs, and paid or incurred loss retrospective plans. Within Chubb Global Casualty, Chubb Alternative Risk Solutions Group underwrites contractual indemnification policies which provides prospective coverage for loss events within the insured’s policy retention levels, and underwrites assumed loss portfolio transfer (LPT) contracts in which insured loss events have occurred prior to the inception of the contract.
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Property provides products and services including primary, quota share and excess all-risk insurance, risk management programs and services, commercial and inland marine products.
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Surety offers a wide variety of surety products and specializes in underwriting both commercial and contract bonds and has the capacity for bond issuance on an international basis.
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Accident & Health products include employee benefit plans, occupational accident, student accident, and worldwide travel accident and global medical programs. With respect to products that include supplemental medical and hospital indemnity coverages, we typically pay fixed amounts for claims and are therefore insulated from rising healthcare costs. Accident & Health also provides specialty personal lines products, including credit card enhancement programs (identity theft, rental car collision damage waiver, trip travel, and purchase protection benefits) distributed through affinity groups.
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Financial Lines provides management liability and professional liability (D&O and E&O) and cyber risk products to public companies as well as to private and not for profit organizations
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Casualty Risk provides coverages including umbrella and excess liability, environmental risk, and casualty programs for commercial construction related projects for companies and institutions.
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Medical Risk offers a wide range of specialty liability products for the healthcare industry through licensed excess and surplus lines brokers. Products include primary coverages for professional liability and general liability for selected types of medical facilities, excess/umbrella liability for medical facilities, primary and excess coverages for products liability for large biotechnology and specialty pharmaceutical companies, and liability insurance for human clinical trials.
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ESIS Inc. (ESIS), is an in-house third-party claims administrator, performs claims management and risk control services for domestic and international organizations as well as for the North America Commercial P&C Insurance segment. ESIS services include comprehensive medical managed care; integrated disability services; pre-loss control and risk management; and health, safety and environmental consulting; salvage and subrogation; and healthcare recovery services. The net results for ESIS are included in North America Commercial P&C Insurance’s administrative expenses.
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Commercial Insurance products and services offered include traditional property and casualty lines of business, including Package which combines property and general liability, Workers Compensation, Automobile, Umbrella; financial lines of business, including professional liability, management liability and Cyber risk coverage; and other lines including Environmental, Accident & Health, International coverages, and Product Recall. Commercial Insurance distributes its insurance products through a North American network of independent retail agents, regional brokers and multinational brokers. Generally, our customers purchase insurance through a single retail agent or broker, do not employ a risk management department and do not retain significant risk through self-insured retentions or cash flow programs. The majority of our customers purchase a Package or Portfolio product.
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Small Commercial Insurance products and services offered include property, professional and management liability, environmental, inland marine, umbrella, workers’ compensation, automobile liability, surety, A&H coverages, and business owner’s policy package coverage. Products are generally offered through a North American network of retail agents and brokers.
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conducts formal asset allocation modeling for each of the Chubb subsidiaries, providing formal recommendations for the portfolio's structure;
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establishes recommended investment guidelines that are appropriate to the prescribed asset allocation targets;
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provides the analysis, evaluation, and selection of our external investment advisors;
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establishes and develops investment-related analytics to enhance portfolio engineering and risk control;
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monitors and aggregates the correlated risk of the overall investment portfolio; and
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provides governance over the investment process for each of our operating companies to ensure consistency of approach and adherence to investment guidelines.
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reviews and approves asset allocation targets and investment policy to ensure that it is consistent with our overall goals, strategies, and objectives;
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reviews and approves investment guidelines to ensure that appropriate levels of portfolio liquidity, credit quality, diversification, and volatility are maintained; and
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systematically reviews the portfolio's exposures including any potential violations of investment guidelines.
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in some countries, insurers are required to prepare and file monthly and/or quarterly financial reports, and in others, only annual reports;
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some regulators require intermediaries to be involved in the sale of insurance products, whereas other regulators permit direct sales contact between the insurer and the customer;
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the extent of restrictions imposed upon an insurer's use of local and offshore reinsurance vary;
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policy form filing and rate regulation vary by country;
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the frequency of contact and periodic on-site examinations by insurance authorities differ by country; and
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regulatory requirements relating to insurer dividend policies vary by country.
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External Risks
: identify, analyze, quantify, and where possible, mitigate significant external risks that could materially hamper the financial condition of Chubb and/or the achievement of corporate business objectives over the next 36 months;
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Exposure Accumulations
: identify and quantify the accumulation of exposure to individual counterparties, products or industry sectors, particularly those that materially extend across or correlate between business units or divisions and/or the balance sheet;
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Risk Modeling
: develop and use various data-sets, analytical tools, metrics and processes (including economic capital models and advanced analytics) that help division and corporate leaders make informed underwriting, portfolio management and risk management decisions within a consistent risk/reward framework;
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Governance
: establish and coordinate risk guidelines that reflect the corporate appetite for risk, monitor exposure accumulations relative to established guidelines, and ensure effective internal risk management communication up to management and the Board, down to the various business units and legal entities, and across the firm; and
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Disclosure
: develop protocols and processes for risk-related disclosure internally as well as externally to rating agencies, regulators, shareholders and analysts.
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Name
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Age
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Position
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Evan G. Greenberg
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62
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Chairman, President, Chief Executive Officer, and Director
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John W. Keogh
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52
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Executive Vice Chairman and Chief Operating Officer
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Philip V. Bancroft
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57
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Executive Vice President and Chief Financial Officer
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John J. Lupica
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51
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Vice Chairman; President, North America Major Accounts & Specialty Insurance
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Joseph F. Wayland
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59
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Executive Vice President and General Counsel
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Sean Ringsted
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53
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Executive Vice President, Chief Digital Officer, and Chief Risk Officer
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Timothy A. Boroughs
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67
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Executive Vice President and Chief Investment Officer
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Paul J. Krump
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57
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Executive Vice President; President, North America Commercial and Personal Insurance
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Juan C. Andrade
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51
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Executive Vice President; President, Overseas General Insurance
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judgments of U.S. courts based upon the civil liability provisions of the U.S. federal securities laws obtained in actions against it or its directors and officers, who reside outside the U.S.; or
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original actions brought in Switzerland against these persons or Chubb predicated solely upon U.S. federal securities laws.
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2016
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2015
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Dividends
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Dividends
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Quarter Ending
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High
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Low
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USD
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CHF
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High
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Low
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USD
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CHF
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March 31
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$
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122.47
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$
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108.00
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$
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0.67
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0.66
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$
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115.00
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$
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107.96
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$
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0.65
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0.62
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June 30
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$
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130.71
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$
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117.19
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$
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0.69
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0.68
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$
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112.37
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$
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101.60
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$
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0.67
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0.62
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September 30
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$
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130.32
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$
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124.28
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$
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0.69
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0.67
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$
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111.13
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$
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99.72
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$
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0.67
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0.65
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December 31
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$
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133.32
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$
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121.88
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$
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0.69
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0.69
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$
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119.47
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$
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102.29
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$
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0.67
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0.67
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Period
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Total Number of Shares Purchased
(1)
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Average Price
Paid per Share
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Approximate Dollar Value of Shares that May Yet be Purchased Under Publicly Announced Plan
(2)
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October 1 through October 31
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10,125
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$
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123.87
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—
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November 1 through November 30
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52,955
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$
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126.82
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$
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1.0
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billion
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December 1 through December 31
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3,766
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$
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130.42
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$
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1.0
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billion
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(3)
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Total
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66,846
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$
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126.58
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(1)
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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.
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(2)
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In November 2016, our Board authorized a $1.0 billion share repurchase program of Chubb's Common Shares through December 31, 2017.
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(3)
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For the period January 1, 2017 through February 24, 2017, we repurchased 419,623 Common Shares for a total of $55 million in a series of open market transactions. At February 24, 2017, $945 million in share repurchase authorization remained through December 31, 2017.
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(in millions, except per share data and percentages)
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2016
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2015
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2014
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2013
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2012
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Operations data:
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Net premiums earned – excluding Life Insurance segment
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$
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26,694
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$
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15,266
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$
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15,464
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$
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14,708
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$
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13,761
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Net premiums earned – Life Insurance segment
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2,055
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1,947
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1,962
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1,905
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1,916
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Total net premiums earned
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28,749
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17,213
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17,426
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16,613
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15,677
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Net investment income
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2,865
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2,194
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2,252
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2,144
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2,181
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Losses and loss expenses
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16,052
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9,484
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9,649
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9,348
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9,653
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Policy benefits
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588
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543
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517
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515
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521
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Policy acquisition costs and administrative expenses
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8,985
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5,211
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5,320
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4,870
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4,542
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Net income
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4,135
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2,834
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2,853
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3,758
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2,706
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Weighted-average shares outstanding – diluted
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466
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329
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339
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344
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343
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Diluted earnings per share
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$
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8.87
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$
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8.62
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$
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8.42
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$
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10.92
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$
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7.89
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Balance sheet data (at end of period):
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Total investments
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$
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99,094
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$
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66,251
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$
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62,904
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$
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60,928
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$
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60,264
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Total assets
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159,786
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102,306
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98,223
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94,487
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92,527
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Net unpaid losses and loss expenses
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47,832
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26,562
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27,008
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26,831
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26,547
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Net future policy benefits
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4,854
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4,620
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|
4,537
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|
4,397
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4,229
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Long-term debt
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12,610
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9,389
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3,334
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3,786
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3,344
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Trust preferred securities
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308
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|
|
307
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|
|
307
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|
|
307
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307
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Total liabilities
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111,511
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73,171
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68,636
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65,662
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64,996
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Shareholders' equity
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48,275
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|
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29,135
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29,587
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28,825
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|
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27,531
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Book value per share
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$
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103.60
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$
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89.77
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$
|
90.02
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|
$
|
84.83
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|
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$
|
80.90
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|
Selected data:
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|
|
|
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|
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||||||||||
Loss and loss expense ratio
(1)
|
57.7
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%
|
|
58.1
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%
|
|
58.7
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%
|
|
59.6
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%
|
|
65.7
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%
|
|||||
Underwriting and administrative expense ratio
(2)
|
30.6
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%
|
|
29.2
|
%
|
|
29.4
|
%
|
|
28.4
|
%
|
|
28.2
|
%
|
|||||
Combined ratio
(3)
|
88.3
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%
|
|
87.3
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%
|
|
88.1
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%
|
|
88.0
|
%
|
|
93.9
|
%
|
|||||
Cash dividends per share
(4)
|
$
|
2.74
|
|
|
$
|
2.66
|
|
|
$
|
2.70
|
|
|
$
|
2.02
|
|
|
$
|
2.06
|
|
(1)
|
The loss and loss expense ratio is calculated by dividing Losses and loss expenses, excluding the Life Insurance segment, by Net premiums earned – excluding Life Insurance segment. Losses and loss expenses for the Life Insurance segment were $
663 million
,
$601 million
,
$589 million
,
$582 million
, and
$611 million
for the years ended December 31,
2016
,
2015
,
2014
,
2013
, and
2012
, respectively.
|
(2)
|
The underwriting and administrative expense ratio is calculated by dividing the Policy acquisition costs and administrative expenses, excluding the Life Insurance segment, by Net premiums earned – excluding Life Insurance segment. Policy acquisition costs and administrative expenses for the Life Insurance segment were $
816 million
, $
767 million
, $
763 million
, $
701 million
, and
$662 million
for the years ended December 31,
2016
,
2015
,
2014
,
2013
, and
2012
, respectively.
|
(3)
|
The combined ratio is the sum of loss and loss expense ratio and the underwriting and administrative expense ratio.
|
(4)
|
Cash dividends per share in 2014 and 2012 include a $0.12 per share increase related to the fourth quarter 2013 and 2011 dividend installments, approved by our shareholders on January 10, 2014 and January 9, 2012, respectively.
|
|
MD&A Index
|
Page
|
|
•
|
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).
|
|
•
|
All segments excluding North America Agricultural Insurance:
The Chubb Corporation (Chubb Corp) (January 14, 2016).
|
•
|
North America Personal P&C Insurance:
Fireman's Fund Insurance Company high net worth personal lines insurance business in the U.S. (April 1, 2015).
|
•
|
Overseas General Insurance:
|
•
|
The large corporate account property and casualty (P&C) insurance business of Itaú Seguros (Itaú Seguros) (October 31, 2014); and
|
•
|
The Siam Commercial Samaggi Insurance PCL (Samaggi) (we and our local partner acquired 60.86 percent ownership on April 28, 2014, and subsequently acquired an additional 32.17 percent ownership through a mandatory tender offer, which expired on June 17, 2014).
|
|
•
|
Net income was $4,135 million compared with $2,834 million last year.
|
•
|
Total company and P&C net premiums written were $28.1 billion and $26.0 billion, respectively, up 58.9 percent and 65.6 percent, respectively, reflecting the acquisition of Chubb Corp. P&C net premiums written decreased 5.1 percent, or 3.3 percent in constant dollars, when compared with last year on an "As If" basis.
|
•
|
Since the acquisition of Chubb Corp, we have entered into new reinsurance agreements with third-party reinsurers for certain legacy Chubb Corp business and have taken other merger-related underwriting actions, including exiting certain types of business that do not meet our underwriting standards or adhere to our risk diversification strategy. Merger-related underwriting actions, including the purchase of additional reinsurance, adversely impacted P&C net premiums written growth by $650 million.
|
•
|
On October 31, 2016, we harmonized and amended several U.S. retirement programs to create a unified retirement savings program. These changes reduced benefit obligations by $496 million. Net income was favorably impacted by the one-time curtailment benefit of $113 million pre-tax related to the harmonization of our U.S. pension plans, as well as a favorable recurring impact of approximately $17 million pre-tax related to harmonizing the post-retirement benefit programs. Refer to the outlook section below for the expected benefit in 2017 related to the plan changes.
|
•
|
The combined ratio was 88.3 percent, which included 0.4 percentage point impact for the $113 million curtailment benefit. P&C combined ratio was 88.7 percent, which excludes the curtailment benefit, compared with 87.4 percent in 2015. On an “As If” basis, P&C combined ratio was 88.0 percent compared with 87.5 percent in 2015.
|
•
|
Total pre-tax and after-tax catastrophe losses, including reinstatement premiums, were $1,060 million (4.0 percentage points of the combined ratio) and $844 million, respectively, compared with $322 million (2.1 percentage points of the combined ratio) and $272 million, respectively, in 2015.
|
•
|
Total pre-tax and after-tax favorable prior period development was $1,135 million (4.3 percentage points of the combined ratio) and $898 million, respectively, compared with $546 million pre-tax (3.5 percentage points of the combined ratio) and $474 million after-tax in 2015.
|
•
|
Net investment income was $2,865 million which is net of $393 million related to the amortization of the fair value adjustment on acquired invested assets of Chubb Corp. Excluding this amortization, net investment income was $3,258 million, compared with $2,194 million last year.
|
•
|
Integration expenses related to the Chubb acquisition were $492 million pre-tax in 2016, and include all internal and external costs directly related to the integration activities of the Chubb Corp acquisition, consisting primarily of personnel-related expenses, including severance and employee retention and relocation; consulting fees; and advisor fees. Chubb integration expenses were $33 million pre-tax in 2015, consisting primarily of legal and professional fees.
|
|
|
|
|
Actual
|
|
|
Expected
|
|
||||||||||||
(in millions of U.S. dollars)
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
Total
|
|
|||||
Chubb integration-related savings
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized savings
|
|
|
|
$
|
578
|
|
|
$
|
740
|
|
|
$
|
800
|
|
|
$
|
800
|
|
||
Realized savings
(2)
|
|
|
|
$
|
325
|
|
|
$
|
580
|
|
|
$
|
760
|
|
|
$
|
800
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Chubb integration and merger-related expenses
(3)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
One-time integration expenses related to savings
|
|
$
|
22
|
|
|
$
|
299
|
|
|
$
|
137
|
|
|
$
|
39
|
|
|
$
|
497
|
|
Other one-time merger-related expenses
|
|
11
|
|
|
193
|
|
|
97
|
|
|
11
|
|
|
312
|
|
|||||
Total expected integration and merger-related expenses
|
|
$
|
33
|
|
|
$
|
492
|
|
|
$
|
234
|
|
|
$
|
50
|
|
|
$
|
809
|
|
|
•
|
unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves;
|
•
|
future policy benefits reserves;
|
•
|
the valuation of value of business acquired (VOBA) and amortization of deferred policy acquisition costs and VOBA;
|
•
|
the assessment of risk transfer for certain structured insurance and reinsurance contracts;
|
•
|
reinsurance recoverable, including a provision for uncollectible reinsurance;
|
•
|
the valuation of our investment portfolio and assessment of other-than-temporary impairments (OTTI);
|
•
|
the valuation of deferred tax assets;
|
•
|
the valuation of derivative instruments related to guaranteed living benefits (GLB); and
|
•
|
the assessment of goodwill for impairment.
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
Gross
Losses
|
|
|
Reinsurance
Recoverable
(1)
|
|
|
Net
Losses
|
|
|
Gross
Losses
|
|
|
Reinsurance
Recoverable
(1)
|
|
|
Net
Losses
|
|
||||||
Balance, beginning of year
|
$
|
37,303
|
|
|
$
|
10,741
|
|
|
$
|
26,562
|
|
|
$
|
38,315
|
|
|
$
|
11,307
|
|
|
$
|
27,008
|
|
Losses and loss expenses incurred
|
20,195
|
|
|
4,143
|
|
|
16,052
|
|
|
12,541
|
|
|
3,057
|
|
|
9,484
|
|
||||||
Losses and loss expenses paid
|
(19,436
|
)
|
|
(3,721
|
)
|
|
(15,715
|
)
|
|
(12,914
|
)
|
|
(3,249
|
)
|
|
(9,665
|
)
|
||||||
Other (including foreign exchange translation)
|
(445
|
)
|
|
24
|
|
|
(469
|
)
|
|
(1,056
|
)
|
|
(374
|
)
|
|
(682
|
)
|
||||||
Losses and loss expenses acquired
|
22,923
|
|
|
1,521
|
|
|
21,402
|
|
|
417
|
|
|
—
|
|
|
417
|
|
||||||
Balance, end of year
|
$
|
60,540
|
|
|
$
|
12,708
|
|
|
$
|
47,832
|
|
|
$
|
37,303
|
|
|
$
|
10,741
|
|
|
$
|
26,562
|
|
(1)
|
Net of provision for uncollectible reinsurance.
|
•
|
The reported claims information could be inaccurate;
|
•
|
Typically, a lag exists between the reporting of a loss event to a ceding company and its reporting to us as a reinsurance claim. The use of a broker to transmit financial information from a ceding company to us increases the reporting lag. Because most of our reinsurance business is produced by brokers, ceding companies generally first submit claim and other financial information to brokers, who then report the proportionate share of such information to each reinsurer of a particular treaty. The reporting lag generally results in a longer period of time between the date a claim is incurred and the date a claim is reported compared with direct insurance operations. Therefore, the risk of delayed recognition of loss reserve development is higher for assumed reinsurance than for direct insurance lines; and
|
•
|
The historical claims data for a particular reinsurance contract can be limited relative to our insurance business in that there may be less historical information available. Further, for certain coverages or products, such as excess of loss contracts, there may be relatively few expected claims in a particular year so the actual number of claims may be susceptible to significant variability. In such cases, the actuary often relies on industry data from several recognized sources.
|
•
|
For reinsurers that maintain a financial strength rating from a major rating agency, and for which recoverable balances are considered representative of the larger population (i.e., default probabilities are consistent with similarly rated reinsurers and payment durations conform to averages), the judgment exercised by management to determine the provision for uncollectible reinsurance of each reinsurer is typically limited because the financial rating is based on a published source and the default factor we apply is based on a historical default factor of a major rating agency applicable to the particular rating class. Default factors applied for financial ratings of AAA, AA, A, BBB, BB, B, and CCC, are 0.8 percent, 1.2 percent, 1.7 percent, 4.9 percent, 19.6 percent, 34.0 percent, and 62.2 percent, respectively. Because our model is predicated on the historical default factors of a major rating agency, we do not generally consider alternative factors. However, when a recoverable is expected to be paid in a brief period of time by a highly-rated reinsurer, such as certain property catastrophe claims, a default factor may not be applied;
|
•
|
For balances recoverable from reinsurers that are both unrated by a major rating agency and for which management is unable to determine a credible rating equivalent based on a parent or affiliated company, we may determine a rating equivalent based on our analysis of the reinsurer that considers an assessment of the creditworthiness of the particular entity, industry benchmarks, or other factors as considered appropriate. We then apply the applicable default factor for that rating class. For balances recoverable from unrated reinsurers for which our ceded reserve is below a certain threshold, we generally apply a default factor of 34.0 percent;
|
•
|
For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting provision for uncollectible reinsurance based on specific facts and circumstances surrounding each company. Upon initial notification of an insolvency, we generally recognize expense for a substantial portion of all balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the provision for uncollectible reinsurance. When regulatory action is taken on a reinsurer, we generally recognize a default factor by estimating an expected recovery on all balances outstanding, net of collateral. When sufficient credible information becomes available, we adjust the provision for uncollectible reinsurance by establishing a default factor pursuant to information received; and
|
•
|
For captives and other recoverables, management determines the provision for uncollectible reinsurance based on the specific facts and circumstances.
|
|
|
Gross Reinsurance Recoverables on Losses and Loss Expenses
|
|
|
Recoverables (net of Usable Collateral)
|
|
|
|
||||
|
|
|
|
Provision for Uncollectible Reinsurance
|
|
|||||||
(in millions of U.S. dollars)
|
|
|
|
|||||||||
Type
|
|
|
|
|
|
|
||||||
Reinsurers with credit ratings
|
|
$
|
10,073
|
|
|
$
|
8,944
|
|
|
$
|
153
|
|
Reinsurers not rated
|
|
354
|
|
|
156
|
|
|
53
|
|
|||
Reinsurers under supervision and insolvent reinsurers
|
|
102
|
|
|
99
|
|
|
45
|
|
|||
Captives
|
|
2,172
|
|
|
287
|
|
|
16
|
|
|||
Other - structured settlements and pools
|
|
1,176
|
|
|
1,102
|
|
|
33
|
|
|||
Total
|
|
$
|
13,877
|
|
|
$
|
10,588
|
|
|
$
|
300
|
|
•
|
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.
|
Reinsurance program covering
|
|
% of total guaranteed value (GV)
|
|
% of GV that has additional reinsurance coverage
|
|
Additional terms
|
GMDB with an annual claim limit of 2% of account value (AV)
|
|
60% of total GMDB
|
|
2% for GLB
|
|
N/A
|
GMDB with claim limit(s) that are a function of underlying GV
(varies from 0.4% to 2.0% of GV)
|
|
30% of total GMDB
|
|
80% for GLB
|
|
• 55% of GV subject to annual claim
deductibles
(1)
of 0.1% to 0.2% of GV
• 40% of GV subject to an aggregate claim limit
of approximately $385 million
|
GMDB and GMAB
|
|
5% of total GLB
10% of total GMDB |
|
N/A
|
|
• Programs are quota-share (QS) agreements
with QS % decreasing as ratio of AV to GV
decreases:
— QS 100% for ratios between 100% - 75%
— QS 60% for ratios between 75% - 45%
— QS 30% for ratios less than 45%
• 35% of GV subject to a per policy claim
deductible of 8.8% of GV for GMAB only
(1)
|
GMIB with an annual claim limit of 10% of GV on over 95% of GV
|
|
65% of total GLB
|
|
45% for GMDB
|
|
• Annual annuitization limit range 17.5% - 30%:
— 55% subject to limit of 30%
— 45% subject to limit of 20% or under
• 43% of GV subject to minimum annuity
conversion factors that limits exposure to low
interest rates
|
GMIB with an aggregate claim limit of $2.0 billion
|
30% of total GLB
|
|
35% for GMDB
|
|
•
Annual annuitization limit of 20%
•
65% of GV subject to minimum annuity
conversion factors that limit exposure to low
interest rates
•
40% of GV subject to an aggregate claim
deductible of 2% of underlying annuity deposits
|
Year of first payment eligibility
|
Percent of living benefit
account values
|
|
2016 and prior
|
62
|
%
|
2017
|
19
|
%
|
2018
|
10
|
%
|
2019
|
2
|
%
|
2020
|
1
|
%
|
2021 and after
|
6
|
%
|
Total
|
100
|
%
|
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||||||||||||||||||||||||||
GMDB
|
|
|
GLB
|
|
|
Total
|
|
|
GMDB
|
|
|
GLB
|
|
|
Total
|
|
|
GMDB
|
|
|
GLB
|
|
|
Total
|
|
||||||||||
Premium received
|
$
|
55
|
|
|
$
|
118
|
|
|
$
|
173
|
|
|
$
|
61
|
|
|
$
|
121
|
|
|
$
|
182
|
|
|
$
|
71
|
|
|
$
|
138
|
|
|
$
|
209
|
|
Less paid claims
|
42
|
|
|
39
|
|
|
81
|
|
|
28
|
|
|
16
|
|
|
44
|
|
|
39
|
|
|
13
|
|
|
52
|
|
|||||||||
Net cash received
|
$
|
13
|
|
|
$
|
79
|
|
|
$
|
92
|
|
|
$
|
33
|
|
|
$
|
105
|
|
|
$
|
138
|
|
|
$
|
32
|
|
|
$
|
125
|
|
|
$
|
157
|
|
•
|
short-term and long-term growth rates; and
|
•
|
estimated cost of equity and changes in long-term risk-free interest rates.
|
|
|
|
|
|
|
% Change
|
|
|||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Net premiums written
(1)
|
$
|
28,145
|
|
|
$
|
17,713
|
|
|
$
|
17,799
|
|
|
58.9
|
%
|
|
(0.5
|
)%
|
Net premiums earned
(1)
|
28,749
|
|
|
17,213
|
|
|
17,426
|
|
|
67.0
|
%
|
|
(1.2
|
)%
|
|||
Net investment income
|
2,865
|
|
|
2,194
|
|
|
2,252
|
|
|
30.6
|
%
|
|
(2.6
|
)%
|
|||
Net realized gains (losses)
|
(145
|
)
|
|
(420
|
)
|
|
(507
|
)
|
|
(65.5
|
)%
|
|
(17.2
|
)%
|
|||
Total revenues
|
31,469
|
|
|
18,987
|
|
|
19,171
|
|
|
65.7
|
%
|
|
(1.0
|
)%
|
|||
Losses and loss expenses
|
16,052
|
|
|
9,484
|
|
|
9,649
|
|
|
69.3
|
%
|
|
(1.7
|
)%
|
|||
Policy benefits
|
588
|
|
|
543
|
|
|
517
|
|
|
8.3
|
%
|
|
5.0
|
%
|
|||
Policy acquisition costs
|
5,904
|
|
|
2,941
|
|
|
3,075
|
|
|
100.7
|
%
|
|
(4.4
|
)%
|
|||
Administrative expenses
|
3,081
|
|
|
2,270
|
|
|
2,245
|
|
|
35.7
|
%
|
|
1.1
|
%
|
|||
Interest expense
|
605
|
|
|
300
|
|
|
280
|
|
|
101.7
|
%
|
|
7.1
|
%
|
|||
Other (income) expense
|
(222
|
)
|
|
(51
|
)
|
|
(190
|
)
|
|
335.3
|
%
|
|
(73.2
|
)%
|
|||
Amortization of purchased intangibles
|
19
|
|
|
171
|
|
|
108
|
|
|
(88.9
|
)%
|
|
58.3
|
%
|
|||
Chubb integration expenses
|
492
|
|
|
33
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
|||
Total expenses
|
26,519
|
|
|
15,691
|
|
|
15,684
|
|
|
69.0
|
%
|
|
—
|
|
|||
Income before income tax
|
4,950
|
|
|
3,296
|
|
|
3,487
|
|
|
50.2
|
%
|
|
(5.5
|
)%
|
|||
Income tax expense
|
815
|
|
|
462
|
|
|
634
|
|
|
76.4
|
%
|
|
(27.1
|
)%
|
|||
Net income
|
$
|
4,135
|
|
|
$
|
2,834
|
|
|
$
|
2,853
|
|
|
45.9
|
%
|
|
(0.7
|
)%
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
(1)
|
On a constant-dollar basis for the years ended
December 31, 2016
and 2015, net premiums written
increased
$10.8 billion
and $860 million, respectively, and net premiums earned
increased
$11.9 billion
and $714 million, respectively. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period.
|
•
|
Net premiums written in our North America Commercial P&C Insurance segment
increased
$6,025 million
in
2016
. On an "As If" basis, net premiums written
decreased
$355
million in
2016
, principally due to merger-related underwriting actions (
$241 million
), including the purchase of additional reinsurance. In addition, net premiums decreased due to lower new business written, driven by competitive market conditions and rate declines.
|
•
|
Net premiums written in our North America Personal P&C Insurance segment
increased
$2,961 million
in
2016
. On an "As If" basis, net premiums written
decreased
$509
million in
2016
, principally driven by the purchase of additional reinsurance (
$273 million
) primarily for our homeowners and large limit valuable articles business written in the northeast United States. In addition, we experienced a decline in our Fireman’s Fund high net worth personal lines business in
2016
($298 million), primarily reflecting a benefit in the prior year from a non-recurring unearned premium reserves (UPR) transfer ($252 million) and the conversion to Chubb legal entities in the current year. Excluding these items, net premiums written were up 1.3 percent in
2016
.
|
•
|
Net premiums written in our Overseas General Insurance segment
increased
$1,490
million in
2016
, and
increased
$95
million, on an "As If" constant-dollar basis, primarily driven by growth in personal lines, property and casualty lines (P&C), and A&H lines. This increase was partially offset by declines in our business written by Chubb Global Markets and by merger-related underwriting actions (
$119 million
), including the purchase of additional reinsurance.
|
•
|
Net premiums written in our Life Insurance segment increased $
126 million
in
2016
and increased $
32
million on an "As If" basis. Growth in our international life operations and in our Combined Insurance Supplemental A&H program business was partially offset by the adverse effect of foreign exchange. Our life reinsurance business continues to decline as there is no new life reinsurance business currently being written. On a constant-dollar basis, production, which includes deposits collected on universal life and investment contracts of $1,006 million in 2016 and $997 million in 2015, increased 6.0 percent.
|
•
|
Net premiums written in our North America Agricultural Insurance segment
decreased
$18
million in
2016
, primarily due to the revision to the 2016 crop year margin estimate related to the MPCI program, which resulted in lower premium retention under the premium sharing formula with the U.S. government. This decrease was partially offset by lower cessions under existing third-party proportional reinsurance programs.
|
•
|
Net premiums written in our Global Reinsurance segment decreased
$152 million
in
2016
and decreased $
161 million
on an "As If" basis, as we maintained underwriting discipline in an environment of declining rates and increasing competition. In addition, the decline in premiums reflects increased cessions of $17 million due to the purchase of additional property catastrophe reinsurance in 2016.
|
•
|
Net premiums written in our North America Commercial P&C Insurance segment increased $30 million in 2015 due to growth in our global risk management lines, professional lines, wholesale casualty business, and small specialty division. These increases were partially offset by declines in our property and casualty businesses reflecting a more competitive market and rate decreases. Net premiums written in 2014 were favorably impacted by lower excess of loss premiums ceded under our 2014 catastrophe reinsurance program ($32 million).
|
•
|
Net premiums written in our North America Personal P&C Insurance segment increased $614 million in 2015 primarily due to the Fireman's Fund acquisition which added $561 million to premiums (including a non-recurring UPR transfer of $252 million recognized as written premiums at the acquisition date).
|
•
|
Net premiums written in our Overseas General Insurance segment increased $441 million in constant dollars reflecting organic growth across most operations. Included in the increase in net premiums written were contributions from the acquisition of Itaú Seguros in October 2014 and Samaggi in April 2014 which added $273 million of growth to premiums in constant dollars.
|
•
|
Net premiums written in our Life Insurance segment increased $71 million in constant dollars due to new business growth in our supplemental A&H businesses and our international life business, primarily in Asia, tempered by a decline in our variable annuity reinsurance business, as there is currently no new business being written.
|
•
|
Net premiums written in our Global Reinsurance segment decreased $85 million in constant dollars primarily due to lower production from competitive market conditions. The decline was partially offset by new business written, primarily in our U.S. automobile business.
|
•
|
Net premiums written in our North America Agricultural Insurance segment decreased $244 million in 2015 due to lower commodity base prices and lower premium retention as a result of the premium-sharing formulas with the U.S. government.
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
As If
2016 |
|
|
C$
(1)
As-If
2015 |
|
|
C$
(1)
As-If
2016 vs. 2015 |
|
|||||
Commercial multiple peril
(2)
|
$
|
815
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
895
|
|
|
$
|
938
|
|
|
(4.6
|
)%
|
Commercial casualty
|
3,401
|
|
|
2,171
|
|
|
2,097
|
|
|
3,519
|
|
|
3,522
|
|
|
(0.1
|
)%
|
|||||
Workers' compensation
|
2,006
|
|
|
901
|
|
|
941
|
|
|
2,145
|
|
|
2,134
|
|
|
0.5
|
%
|
|||||
Professional liability
|
3,576
|
|
|
1,516
|
|
|
1,519
|
|
|
3,712
|
|
|
3,850
|
|
|
(3.6
|
)%
|
|||||
Surety
|
584
|
|
|
323
|
|
|
295
|
|
|
593
|
|
|
621
|
|
|
(4.5
|
)%
|
|||||
Property and other short-tail lines
|
3,856
|
|
|
2,884
|
|
|
3,047
|
|
|
3,993
|
|
|
4,267
|
|
|
(6.4
|
)%
|
|||||
International other casualty
|
1,038
|
|
|
755
|
|
|
804
|
|
|
1,094
|
|
|
997
|
|
|
9.7
|
%
|
|||||
Total Commercial P&C
|
15,276
|
|
|
8,550
|
|
|
8,703
|
|
|
15,951
|
|
|
16,329
|
|
|
(2.3
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Agriculture
|
1,328
|
|
|
1,346
|
|
|
1,590
|
|
|
1,328
|
|
|
1,346
|
|
|
(1.3
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Personal automobile - North America
|
698
|
|
|
219
|
|
|
134
|
|
|
712
|
|
|
740
|
|
|
(3.8
|
)%
|
|||||
Personal automobile - International
|
673
|
|
|
700
|
|
|
688
|
|
|
673
|
|
|
633
|
|
|
6.3
|
%
|
|||||
Personal homeowners
|
3,053
|
|
|
937
|
|
|
506
|
|
|
3,119
|
|
|
3,722
|
|
|
(16.2
|
)%
|
|||||
Personal other
|
1,400
|
|
|
606
|
|
|
496
|
|
|
1,440
|
|
|
1,255
|
|
|
14.7
|
%
|
|||||
Total Personal lines
|
5,824
|
|
|
2,462
|
|
|
1,824
|
|
|
5,944
|
|
|
6,350
|
|
|
(6.4
|
)%
|
|||||
Total Property and Casualty lines
|
22,428
|
|
|
12,358
|
|
|
12,117
|
|
|
23,223
|
|
|
24,025
|
|
|
(3.3
|
)%
|
|||||
Other Lines
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Global A&H
(3)
|
3,970
|
|
|
3,548
|
|
|
3,735
|
|
|
4,009
|
|
|
3,935
|
|
|
1.9
|
%
|
|||||
Reinsurance
|
676
|
|
|
828
|
|
|
935
|
|
|
696
|
|
|
843
|
|
|
(17.5
|
)%
|
|||||
Life
|
1,071
|
|
|
979
|
|
|
1,012
|
|
|
1,072
|
|
|
1,040
|
|
|
3.1
|
%
|
|||||
Total consolidated
|
$
|
28,145
|
|
|
$
|
17,713
|
|
|
$
|
17,799
|
|
|
$
|
29,000
|
|
|
$
|
29,843
|
|
|
(2.8
|
)%
|
(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.
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Loss and loss expense ratio
|
57.7
|
%
|
|
58.1
|
%
|
|
58.7
|
%
|
Policy acquisition cost ratio
|
20.2
|
%
|
|
16.1
|
%
|
|
16.8
|
%
|
Administrative expense ratio
|
10.4
|
%
|
|
13.1
|
%
|
|
12.6
|
%
|
Combined ratio
|
88.3
|
%
|
|
87.3
|
%
|
|
88.1
|
%
|
Impact of pension curtailment benefit
(1)
|
0.4
|
%
|
|
—
|
|
|
—
|
|
Impact of (gains) and losses on crop derivatives
|
—
|
|
|
0.1
|
%
|
|
(0.4
|
)%
|
P&C combined ratio
|
88.7
|
%
|
|
87.4
|
%
|
|
87.7
|
%
|
|
|
|
As If
|
|
|
|
|
|
|||||||
(in millions of U.S dollars)
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
||||
Catastrophe losses, pre-tax
|
$
|
1,067
|
|
|
$
|
848
|
|
|
$
|
321
|
|
|
$
|
291
|
|
Favorable prior period development, pre-tax
|
$
|
1,134
|
|
|
$
|
1,170
|
|
|
$
|
546
|
|
|
$
|
527
|
|
•
|
2016
: severe weather-related events in the U.S., including Hurricane Matthew, severe weather-related events in Europe, a wildfire in Canada, and earthquakes in Ecuador and New Zealand.
|
•
|
2015: severe weather-related events in the U.S. and Asia, a chemical storage facility explosion in Tianjin, China, a hailstorm in Australia, and flooding and an earthquake in Chile
|
•
|
2014: severe weather-related events in the U.S., Japan, and Australia; flooding and hailstorms in Europe; and a hurricane in Mexico.
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Loss and loss expense ratio, including gains and losses on crop derivatives and excluding pension curtailment benefit
|
57.8
|
%
|
|
58.2
|
%
|
|
58.3
|
%
|
Catastrophe losses and related reinstatement premiums
|
(4.0
|
)%
|
|
(2.1
|
)%
|
|
(1.9
|
)%
|
Prior period development
|
4.3
|
%
|
|
3.6
|
%
|
|
3.4
|
%
|
Loss and loss expense ratio, adjusted
|
58.1
|
%
|
|
59.7
|
%
|
|
59.8
|
%
|
|
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
Overseas General Insurance
|
|
|
Global Reinsurance
|
|
|
Life Insurance
|
|
|
Corporate
|
|
|
Consolidated
|
|
|||||||
Year Ended December 31, 2016
|
||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||||||||||||||
Losses and loss expenses
|
|
$
|
34
|
|
|
$
|
15
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60
|
|
Policy acquisition costs
|
|
19
|
|
|
6
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||||
Administrative expenses
|
|
91
|
|
|
38
|
|
|
66
|
|
|
1
|
|
|
2
|
|
|
25
|
|
|
223
|
|
|||||||
Net investment income
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|||||||
Total
|
|
$
|
146
|
|
|
$
|
61
|
|
|
$
|
89
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
26
|
|
|
$
|
325
|
|
|
Years Ended December 31
(in millions of U.S. dollars, except for percentages)
|
Long-tail
|
|
|
Short-tail
|
|
|
Total
|
|
|
% of beginning net unpaid reserves
(1)
|
|
|||
2016
|
|
|
|
|
|
|
|
|||||||
North America Commercial P&C Insurance
|
$
|
(650
|
)
|
|
$
|
(128
|
)
|
|
$
|
(778
|
)
|
|
1.6
|
%
|
North America Personal P&C Insurance
|
13
|
|
|
14
|
|
|
27
|
|
|
0.1
|
%
|
|||
North America Agricultural Insurance
|
—
|
|
|
(72
|
)
|
|
(72
|
)
|
|
0.2
|
%
|
|||
Overseas General Insurance
|
(191
|
)
|
|
(232
|
)
|
|
(423
|
)
|
|
0.9
|
%
|
|||
Global Reinsurance
|
(77
|
)
|
|
(1
|
)
|
|
(78
|
)
|
|
0.2
|
%
|
|||
Corporate
|
189
|
|
|
—
|
|
|
189
|
|
|
0.4
|
%
|
|||
Total
|
$
|
(716
|
)
|
|
$
|
(419
|
)
|
|
$
|
(1,135
|
)
|
|
2.4
|
%
|
2015
|
|
|
|
|
|
|
|
|||||||
North America Commercial P&C Insurance
|
$
|
(155
|
)
|
|
$
|
(109
|
)
|
|
$
|
(264
|
)
|
|
1.0
|
%
|
North America Personal P&C Insurance
|
10
|
|
|
15
|
|
|
25
|
|
|
0.1
|
%
|
|||
North America Agricultural Insurance
|
—
|
|
|
(45
|
)
|
|
(45
|
)
|
|
0.1
|
%
|
|||
Overseas General Insurance
|
(166
|
)
|
|
(177
|
)
|
|
(343
|
)
|
|
1.3
|
%
|
|||
Global Reinsurance
|
(106
|
)
|
|
(13
|
)
|
|
(119
|
)
|
|
0.4
|
%
|
|||
Corporate
|
200
|
|
|
—
|
|
|
200
|
|
|
0.7
|
%
|
|||
Total
|
$
|
(217
|
)
|
|
$
|
(329
|
)
|
|
$
|
(546
|
)
|
|
2.0
|
%
|
2014
|
|
|
|
|
|
|
|
|||||||
North America Commercial P&C Insurance
|
$
|
(281
|
)
|
|
$
|
(97
|
)
|
|
$
|
(378
|
)
|
|
1.4
|
%
|
North America Personal P&C Insurance
|
9
|
|
|
15
|
|
|
24
|
|
|
0.1
|
%
|
|||
North America Agricultural Insurance
|
—
|
|
|
34
|
|
|
34
|
|
|
0.1
|
%
|
|||
Overseas General Insurance
|
(181
|
)
|
|
(210
|
)
|
|
(391
|
)
|
|
1.5
|
%
|
|||
Global Reinsurance
|
(52
|
)
|
|
(11
|
)
|
|
(63
|
)
|
|
0.2
|
%
|
|||
Corporate
|
247
|
|
|
—
|
|
|
247
|
|
|
0.9
|
%
|
|||
Total
|
$
|
(258
|
)
|
|
$
|
(269
|
)
|
|
$
|
(527
|
)
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Net premiums written
|
$
|
11,740
|
|
|
$
|
5,715
|
|
|
$
|
5,685
|
|
|
105.4
|
%
|
|
0.5
|
%
|
Net premiums earned
|
12,217
|
|
|
5,634
|
|
|
5,547
|
|
|
116.9
|
%
|
|
1.6
|
%
|
|||
Losses and loss expenses
|
7,439
|
|
|
3,661
|
|
|
3,476
|
|
|
103.2
|
%
|
|
5.3
|
%
|
|||
Policy acquisition costs
|
2,023
|
|
|
531
|
|
|
518
|
|
|
281.0
|
%
|
|
2.5
|
%
|
|||
Administrative expenses
|
1,125
|
|
|
621
|
|
|
599
|
|
|
81.2
|
%
|
|
3.7
|
%
|
|||
Underwriting income
|
1,630
|
|
|
821
|
|
|
954
|
|
|
98.5
|
%
|
|
(13.9
|
)%
|
|||
Net investment income
|
1,860
|
|
|
1,032
|
|
|
1,060
|
|
|
80.2
|
%
|
|
(2.6
|
)%
|
|||
Other (income) expense
|
(2
|
)
|
|
(7
|
)
|
|
(12
|
)
|
|
(71.4
|
)%
|
|
(41.7
|
)%
|
|||
Segment income
|
$
|
3,492
|
|
|
$
|
1,860
|
|
|
$
|
2,026
|
|
|
87.7
|
%
|
|
(8.2
|
)%
|
Loss and loss expense ratio
|
60.9
|
%
|
|
65.0
|
%
|
|
62.6
|
%
|
|
|
|
|
|||||
Policy acquisition cost ratio
|
16.6
|
%
|
|
9.4
|
%
|
|
9.3
|
%
|
|
|
|
|
|||||
Administrative expense ratio
|
9.2
|
%
|
|
11.0
|
%
|
|
10.9
|
%
|
|
|
|
|
|||||
Combined ratio
|
86.7
|
%
|
|
85.4
|
%
|
|
82.8
|
%
|
|
|
|
|
|
|
|
As If
|
|
|
|
|
|
|||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
||||
Catastrophe losses, pre-tax
|
$
|
448
|
|
|
$
|
268
|
|
|
$
|
85
|
|
|
$
|
93
|
|
Favorable prior period development, pre-tax
|
$
|
778
|
|
|
$
|
783
|
|
|
$
|
264
|
|
|
$
|
378
|
|
•
|
2016: severe weather-related events in the U.S., including Hurricane Matthew, and a wildfire in Canada
|
•
|
2015: severe-weather related events in the U.S., a Mexican hurricane, and civil unrest in Baltimore, Maryland
|
•
|
2014: severe weather-related events in the U.S, Bermuda, and Australia, as well as a hurricane in Mexico
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Loss and loss expense ratio
|
60.9
|
%
|
|
65.0
|
%
|
|
62.6
|
%
|
Catastrophe losses and related reinstatement premiums
|
(3.7
|
)%
|
|
(1.5
|
)%
|
|
(1.6
|
)%
|
Prior period development
|
6.5
|
%
|
|
4.7
|
%
|
|
6.9
|
%
|
Loss and loss expense ratio, adjusted
|
63.7
|
%
|
|
68.2
|
%
|
|
67.9
|
%
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Net premiums written
|
$
|
4,153
|
|
|
$
|
1,192
|
|
|
$
|
578
|
|
|
248.4
|
%
|
|
106.4
|
%
|
Net premiums earned
|
4,319
|
|
|
948
|
|
|
560
|
|
|
355.5
|
%
|
|
69.2
|
%
|
|||
Losses and loss expenses
|
2,558
|
|
|
590
|
|
|
368
|
|
|
333.6
|
%
|
|
60.3
|
%
|
|||
Policy acquisition costs
|
966
|
|
|
69
|
|
|
116
|
|
|
NM
|
|
|
(40.5
|
)%
|
|||
Administrative expenses
|
363
|
|
|
123
|
|
|
74
|
|
|
195.1
|
%
|
|
66.2
|
%
|
|||
Underwriting income
|
432
|
|
|
166
|
|
|
2
|
|
|
160.2
|
%
|
|
NM
|
|
|||
Net investment income
|
207
|
|
|
25
|
|
|
22
|
|
|
NM
|
|
|
13.6
|
%
|
|||
Other (income) expense
|
6
|
|
|
2
|
|
|
1
|
|
|
200.0
|
%
|
|
100.0
|
%
|
|||
Amortization of purchased intangibles
|
19
|
|
|
78
|
|
|
—
|
|
|
(75.6
|
)%
|
|
NM
|
|
|||
Segment income
|
$
|
614
|
|
|
$
|
111
|
|
|
$
|
23
|
|
|
453.2
|
%
|
|
382.6
|
%
|
Loss and loss expense ratio
|
59.2
|
%
|
|
62.3
|
%
|
|
65.7
|
%
|
|
|
|
|
|||||
Policy acquisition cost ratio
|
22.4
|
%
|
|
7.3
|
%
|
|
20.8
|
%
|
|
|
|
|
|||||
Administrative expense ratio
|
8.4
|
%
|
|
13.0
|
%
|
|
13.2
|
%
|
|
|
|
|
|||||
Combined ratio
|
90.0
|
%
|
|
82.6
|
%
|
|
99.7
|
%
|
|
|
|
|
|
|
|
As if
|
|
|
|
|
|
|||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
||||
Catastrophe losses, pre-tax
|
$
|
326
|
|
|
$
|
383
|
|
|
$
|
63
|
|
|
$
|
39
|
|
Favorable (unfavorable) prior period development, pre-tax
|
$
|
(27
|
)
|
|
$
|
18
|
|
|
$
|
(25
|
)
|
|
$
|
(24
|
)
|
•
|
2016: severe weather-related events in the U.S., including Hurricane Matthew
|
•
|
2015: severe weather-related events in the U.S., including the California wildfires
|
•
|
2014: severe weather-related events in the U.S.
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Loss and loss expense ratio
|
59.2
|
%
|
|
62.3
|
%
|
|
65.7
|
%
|
Catastrophe losses and related reinstatement premiums
|
(7.5
|
)%
|
|
(6.7
|
)%
|
|
(7.0
|
)%
|
Prior period development
|
(0.7
|
)%
|
|
(2.7
|
)%
|
|
(4.2
|
)%
|
Loss and loss expense ratio, adjusted
|
51.0
|
%
|
|
52.9
|
%
|
|
54.5
|
%
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Net premiums written
|
$
|
1,328
|
|
|
$
|
1,346
|
|
|
$
|
1,590
|
|
|
(1.3
|
)%
|
|
(15.3
|
)%
|
Net premiums earned
|
1,316
|
|
|
1,364
|
|
|
1,526
|
|
|
(3.6
|
)%
|
|
(10.6
|
)%
|
|||
Losses and loss expenses
(1)
|
898
|
|
|
1,097
|
|
|
1,300
|
|
|
(18.1
|
)%
|
|
(15.6
|
)%
|
|||
Policy acquisition costs
|
83
|
|
|
69
|
|
|
81
|
|
|
20.3
|
%
|
|
(14.8
|
)%
|
|||
Administrative expenses
|
(6
|
)
|
|
1
|
|
|
9
|
|
|
NM
|
|
|
(88.9
|
)%
|
|||
Underwriting income
|
341
|
|
|
197
|
|
|
136
|
|
|
73.1%
|
|
|
44.9%
|
|
|||
Net investment income
|
20
|
|
|
23
|
|
|
26
|
|
|
(13.0
|
)%
|
|
(11.5
|
)%
|
|||
Other (income) expense
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
(50.0
|
)%
|
|||
Amortization of purchased intangibles
|
29
|
|
|
30
|
|
|
31
|
|
|
(3.3
|
)%
|
|
(3.2
|
)%
|
|||
Segment income
|
$
|
331
|
|
|
$
|
189
|
|
|
$
|
129
|
|
|
75.1
|
%
|
|
46.5
|
%
|
Loss and loss expense ratio
|
68.3
|
%
|
|
80.4
|
%
|
|
85.2
|
%
|
|
|
|
|
|||||
Policy acquisition cost ratio
|
6.3
|
%
|
|
5.1
|
%
|
|
5.3
|
%
|
|
|
|
|
|||||
Administrative expense ratio
|
(0.5
|
)%
|
|
—
|
%
|
|
0.6
|
%
|
|
|
|
|
|||||
Combined ratio
|
74.1
|
%
|
|
85.5
|
%
|
|
91.1
|
%
|
|
|
|
|
(1)
|
Gains (losses) on crop derivatives were $
(5) million
,
$(9) million, and $51 million in 2016, 2015, and 2014, respectively. These gains (losses) are included in Net realized gains (losses) in our Consolidated statements of operations but are reclassified to Losses and loss expenses for purposes of presenting North America Agricultural Insurance underwriting income.
|
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Catastrophe losses, pre-tax
|
$
|
19
|
|
|
$
|
9
|
|
|
$
|
13
|
|
Favorable (unfavorable) prior period development, pre-tax
|
$
|
72
|
|
|
$
|
45
|
|
|
$
|
(34
|
)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Loss and loss expense ratio
|
68.3
|
%
|
|
80.4
|
%
|
|
85.2
|
%
|
Catastrophe losses and related reinstatement premiums
|
(1.5
|
)%
|
|
(0.7
|
)%
|
|
(0.8
|
)%
|
Prior period development
|
5.6
|
%
|
|
3.1
|
%
|
|
(2.6
|
)%
|
Loss and loss expense ratio, adjusted
|
72.4
|
%
|
|
82.8
|
%
|
|
81.8
|
%
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Net premiums written
(1)
|
$
|
8,124
|
|
|
$
|
6,634
|
|
|
$
|
6,999
|
|
|
22.5
|
%
|
|
(5.2
|
)%
|
Net premiums earned
|
8,132
|
|
|
6,471
|
|
|
6,805
|
|
|
25.7
|
%
|
|
(4.9
|
)%
|
|||
Losses and loss expenses
|
4,005
|
|
|
3,052
|
|
|
3,189
|
|
|
31.2
|
%
|
|
(4.3
|
)%
|
|||
Policy acquisition costs
|
2,136
|
|
|
1,581
|
|
|
1,625
|
|
|
35.1
|
%
|
|
(2.7
|
)%
|
|||
Administrative expenses
|
1,057
|
|
|
997
|
|
|
1,026
|
|
|
6.0
|
%
|
|
(2.8
|
)%
|
|||
Underwriting income
(2)
|
934
|
|
|
841
|
|
|
965
|
|
|
11.1
|
%
|
|
(12.8
|
)%
|
|||
Net investment income
|
600
|
|
|
534
|
|
|
545
|
|
|
12.4
|
%
|
|
(2.0
|
)%
|
|||
Other (income) expense
|
(11
|
)
|
|
(17
|
)
|
|
(18
|
)
|
|
(35.3
|
)%
|
|
(5.6
|
)%
|
|||
Amortization of purchased intangibles
|
48
|
|
|
61
|
|
|
74
|
|
|
(21.3
|
)%
|
|
(17.6
|
)%
|
|||
Segment income
|
$
|
1,497
|
|
|
$
|
1,331
|
|
|
$
|
1,454
|
|
|
12.5
|
%
|
|
(8.5
|
)%
|
Loss and loss expense ratio
|
49.3
|
%
|
|
47.2
|
%
|
|
46.9
|
%
|
|
|
|
|
|||||
Policy acquisition cost ratio
|
26.3
|
%
|
|
24.4
|
%
|
|
23.9
|
%
|
|
|
|
|
|||||
Administrative expense ratio
|
12.9
|
%
|
|
15.4
|
%
|
|
15.0
|
%
|
|
|
|
|
|||||
Combined ratio
|
88.5
|
%
|
|
87.0
|
%
|
|
85.8
|
%
|
|
|
|
|
(1)
|
For the years ended
December 31, 2016
and 2015, net premiums written
increased
$1,792 million
or
28.3
percent, and $441 million, or 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.
|
(2)
|
For the years ended
December 31, 2016
and 2015, underwriting income
increased
$115 million
or
14.1
percent and decreased $22 million or 2.5 percent, respectively, on a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
C$
(1)
2015 |
|
|
2016 vs.
2015 |
|
C$
(1)
2016 vs.
2015 |
2015 vs.
2014 |
|
||||
Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Europe
|
$
|
3,227
|
|
|
$
|
2,508
|
|
|
$
|
2,837
|
|
|
$
|
2,406
|
|
|
28.7%
|
|
34.1%
|
(11.6
|
)%
|
Latin America
|
1,992
|
|
|
1,767
|
|
|
1,780
|
|
|
1,593
|
|
|
12.7%
|
|
25.0%
|
(0.7
|
)%
|
||||
Asia
|
2,537
|
|
|
1,963
|
|
|
1,959
|
|
|
1,961
|
|
|
29.2%
|
|
29.4%
|
0.2
|
%
|
||||
Other
(2)
|
368
|
|
|
396
|
|
|
423
|
|
|
372
|
|
|
(7.1)%
|
|
(1.1)%
|
(6.4
|
)%
|
||||
Net premiums written
|
$
|
8,124
|
|
|
$
|
6,634
|
|
|
$
|
6,999
|
|
|
$
|
6,332
|
|
|
22.5%
|
|
28.3%
|
(5.2
|
)%
|
|
2016
% of Total |
|
|
2015
% of Total |
|
|
2014
% of Total |
|
|
|
|
|
|
|
|
||||||
Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Europe
|
40%
|
|
|
38%
|
|
|
41
|
%
|
|
|
|
|
|
|
|
||||||
Latin America
|
25%
|
|
|
27%
|
|
|
25
|
%
|
|
|
|
|
|
|
|
||||||
Asia
|
31%
|
|
|
30%
|
|
|
28
|
%
|
|
|
|
|
|
|
|
||||||
Other
(2)
|
4%
|
|
|
5%
|
|
|
6
|
%
|
|
|
|
|
|
|
|
||||||
Net premiums written
|
100%
|
|
|
100%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
As If
|
|
|
|
|
|
|||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
||||
Catastrophe losses, pre-tax
|
$
|
183
|
|
|
$
|
162
|
|
|
$
|
142
|
|
|
$
|
112
|
|
Favorable prior period development, pre-tax
|
$
|
423
|
|
|
$
|
477
|
|
|
$
|
343
|
|
|
$
|
391
|
|
•
|
2016
: severe weather related events in Europe, earthquakes in Ecuador and New Zealand, and flooding in the U.K.
|
•
|
2015: a chemical storage facility explosion in Tianjin, China, a hailstorm in Australia, flooding and an earthquake in Chile, and severe storms in the U.K. and Asia
|
•
|
2014: flooding in Europe, severe storms in Japan, a hurricane in Mexico, and a hailstorm in Australia
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Loss and loss expense ratio
|
49.3
|
%
|
|
47.2
|
%
|
|
46.9
|
%
|
Catastrophe losses and related reinstatement premiums
|
(2.3
|
)%
|
|
(2.2
|
)%
|
|
(1.6
|
)%
|
Prior period development
|
5.2
|
%
|
|
5.3
|
%
|
|
5.7
|
%
|
Loss and loss expense ratio, adjusted
|
52.2
|
%
|
|
50.3
|
%
|
|
51.0
|
%
|
|
|
|
|
|
% Change
|
||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Net premiums written
|
$
|
676
|
|
|
$
|
828
|
|
|
$
|
935
|
|
|
(18.4
|
)%
|
|
(11.4
|
)%
|
Net premiums earned
|
710
|
|
|
849
|
|
|
1,026
|
|
|
(16.5
|
)%
|
|
(17.2
|
)%
|
|||
Losses and loss expenses
|
325
|
|
|
290
|
|
|
431
|
|
|
12.1
|
%
|
|
(32.7
|
)%
|
|||
Policy acquisition costs
|
187
|
|
|
214
|
|
|
257
|
|
|
(12.6
|
)%
|
|
(16.7
|
)%
|
|||
Administrative expenses
|
52
|
|
|
49
|
|
|
54
|
|
|
6.1
|
%
|
|
(9.3
|
)%
|
|||
Underwriting income
|
146
|
|
|
296
|
|
|
284
|
|
|
(50.7
|
)%
|
|
4.2
|
%
|
|||
Net investment income
|
263
|
|
|
300
|
|
|
316
|
|
|
(12.3
|
)%
|
|
(5.1
|
)%
|
|||
Other (income) expense
|
(4
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
(33.3
|
)%
|
|
50.0
|
%
|
|||
Segment income
|
$
|
413
|
|
|
$
|
602
|
|
|
$
|
604
|
|
|
(31.4
|
)%
|
|
(0.3
|
)%
|
Loss and loss expense ratio
|
45.7
|
%
|
|
34.2
|
%
|
|
42.0
|
%
|
|
|
|
|
|||||
Policy acquisition cost ratio
|
26.3
|
%
|
|
25.2
|
%
|
|
25.0
|
%
|
|
|
|
|
|||||
Administrative expense ratio
|
7.5
|
%
|
|
5.8
|
%
|
|
5.3
|
%
|
|
|
|
|
|||||
Combined ratio
|
79.5
|
%
|
|
65.2
|
%
|
|
72.3
|
%
|
|
|
|
|
|
|
|
As If
|
|
|
|
|
|
|||||||
(in millions of U.S dollars)
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
||||
Catastrophe losses, pre-tax
|
$
|
91
|
|
|
$
|
26
|
|
|
$
|
22
|
|
|
$
|
34
|
|
Favorable prior period development and related reinstatement premiums, pre-tax
|
$
|
78
|
|
|
$
|
138
|
|
|
$
|
119
|
|
|
$
|
63
|
|
•
|
2016
: Fort McMurray wildfire, Hurricane Matthew, and severe weather-related events in Europe, the U.S. and Canada
|
•
|
2015
: severe weather-related events in the U.S.
|
•
|
2014
: severe storms in Japan, European hailstorms, and severe weather-related events in the U.S.
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Loss and loss expense ratio, as reported
|
45.7
|
%
|
|
34.2
|
%
|
|
42.0
|
%
|
|||
Catastrophe losses and related reinstatement premiums
(1)
|
(12.5
|
)%
|
|
(2.6
|
)%
|
|
(3.2
|
)%
|
|||
Prior period development and related reinstatement premiums
(2)
|
11.8
|
%
|
|
14.3
|
%
|
|
6.7
|
%
|
|||
Loss and loss expense ratio, adjusted
|
45.0
|
%
|
|
45.9
|
%
|
|
45.5
|
%
|
|||
(1) Catastrophe reinstatement premiums collected - pre-tax
|
$
|
7
|
|
|
$
|
1
|
|
|
$
|
3
|
|
(2) Reinstatement premiums expensed on prior period development - pre-tax
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
10
|
|
|
|
|
|
|
% Change
|
|
|||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Net premiums written
|
$
|
2,124
|
|
|
$
|
1,998
|
|
|
$
|
2,012
|
|
|
6.3
|
%
|
|
(0.7
|
)%
|
Net premiums earned
|
2,055
|
|
|
1,947
|
|
|
1,962
|
|
|
5.6
|
%
|
|
(0.8
|
)%
|
|||
Losses and loss expenses
|
663
|
|
|
601
|
|
|
589
|
|
|
10.3
|
%
|
|
2.0
|
%
|
|||
Policy benefits
(1)
|
588
|
|
|
543
|
|
|
517
|
|
|
8.3
|
%
|
|
5.0
|
%
|
|||
(Gains) losses from fair value changes in separate account assets
(1)
|
(11
|
)
|
|
19
|
|
|
(2
|
)
|
|
NM
|
|
|
NM
|
|
|||
Policy acquisition costs
|
509
|
|
|
476
|
|
|
478
|
|
|
6.9
|
%
|
|
(0.4
|
)%
|
|||
Administrative expenses
|
307
|
|
|
291
|
|
|
285
|
|
|
5.5
|
%
|
|
2.1
|
%
|
|||
Net investment income
|
283
|
|
|
265
|
|
|
268
|
|
|
6.8
|
%
|
|
(1.1
|
)%
|
|||
Life Insurance underwriting income
|
282
|
|
|
282
|
|
|
363
|
|
|
—
|
|
|
(22.3
|
)%
|
|||
Other (income) expense
(1)
|
16
|
|
|
4
|
|
|
5
|
|
|
300.0
|
%
|
|
(20.0
|
)%
|
|||
Amortization of purchased intangibles
|
3
|
|
|
2
|
|
|
3
|
|
|
50.0
|
%
|
|
(33.3
|
)%
|
|||
Segment income
|
$
|
263
|
|
|
$
|
276
|
|
|
$
|
355
|
|
|
(4.7
|
)%
|
|
(22.3
|
)%
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
(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) for purposes of presenting Life Insurance underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits.
|
|
|
% Change
|
|
|||||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
C$
(1)
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Deposits collected on universal life and investment contracts
|
$
|
1,006
|
|
|
$
|
1,015
|
|
|
$
|
997
|
|
|
(0.9
|
)%
|
|
0.9
|
%
|
|
1.8
|
%
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016 vs. 2015
|
|
|
2015 vs. 2014
|
|
|||
Losses and loss expenses
(1)
|
$
|
169
|
|
|
$
|
202
|
|
|
$
|
245
|
|
|
(16.3
|
)%
|
|
(17.6
|
)%
|
Policy acquisition costs
|
—
|
|
|
1
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
|||
Administrative expenses
|
183
|
|
|
188
|
|
|
198
|
|
|
(2.7
|
)%
|
|
(5.1
|
)%
|
|||
Underwriting loss
|
352
|
|
|
391
|
|
|
443
|
|
|
(10.0
|
)%
|
|
(11.7
|
)%
|
|||
Net investment income (loss)
|
(368
|
)
|
|
15
|
|
|
15
|
|
|
NM
|
|
|
—
|
|
|||
Interest expense
|
605
|
|
|
300
|
|
|
280
|
|
|
101.7
|
%
|
|
7.1
|
%
|
|||
Adjusted net realized gains (losses)
|
(140
|
)
|
|
(411
|
)
|
|
(558
|
)
|
|
(65.9
|
)%
|
|
(26.3
|
)%
|
|||
Other (income) expense
|
(217
|
)
|
|
(47
|
)
|
|
(162
|
)
|
|
361.7
|
%
|
|
(71.0
|
)%
|
|||
Amortization expense (benefit) of purchased intangibles
|
(80
|
)
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
—
|
|
|||
Chubb integration expenses
|
492
|
|
|
33
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
|||
Income tax expense
|
815
|
|
|
462
|
|
|
634
|
|
|
76.4
|
%
|
|
(27.1
|
)%
|
|||
Net corporate loss
|
$
|
(2,475
|
)
|
|
$
|
(1,535
|
)
|
|
$
|
(1,738
|
)
|
|
61.2
|
%
|
|
(11.7
|
)%
|
(1)
Losses and loss expenses - As If basis
|
$
|
169
|
|
|
$
|
293
|
|
|
|
|
(42.3
|
)%
|
|
|
|||
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
(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
|
$
|
11,740
|
|
|
$
|
4,153
|
|
|
$
|
1,328
|
|
|
$
|
8,124
|
|
|
$
|
676
|
|
|
$
|
2,124
|
|
|
$
|
28,145
|
|
14 day stub period
|
519
|
|
|
100
|
|
|
—
|
|
|
215
|
|
|
20
|
|
|
1
|
|
|
855
|
|
|||||||
2016 As If
|
$
|
12,259
|
|
|
$
|
4,253
|
|
|
$
|
1,328
|
|
|
$
|
8,339
|
|
|
$
|
696
|
|
|
$
|
2,125
|
|
|
$
|
29,000
|
|
2015 As If
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums written
|
$
|
5,715
|
|
|
$
|
1,192
|
|
|
$
|
1,346
|
|
|
$
|
6,634
|
|
|
$
|
828
|
|
|
$
|
1,998
|
|
|
$
|
17,713
|
|
Legacy Chubb
|
6,899
|
|
|
3,570
|
|
|
—
|
|
|
2,099
|
|
|
29
|
|
|
36
|
|
|
12,633
|
|
|||||||
Accounting policy alignment
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
59
|
|
|
77
|
|
|||||||
2015 As If
(1)
|
$
|
12,614
|
|
|
$
|
4,762
|
|
|
$
|
1,346
|
|
|
$
|
8,751
|
|
|
$
|
857
|
|
|
$
|
2,093
|
|
|
$
|
30,423
|
|
Constant-dollar 2015 As If
|
$
|
12,605
|
|
|
$
|
4,756
|
|
|
$
|
1,346
|
|
|
$
|
8,244
|
|
|
$
|
843
|
|
|
$
|
2,049
|
|
|
$
|
29,843
|
|
Constant-dollar change As If
|
$
|
(346
|
)
|
|
$
|
(503
|
)
|
|
$
|
(18
|
)
|
|
$
|
95
|
|
|
$
|
(147
|
)
|
|
$
|
76
|
|
|
$
|
(843
|
)
|
Constant-dollar percent change As If
|
(2.8
|
)%
|
|
(10.6
|
)%
|
|
(1.3
|
)%
|
|
1.2
|
%
|
|
(17.5
|
)%
|
|
3.7
|
%
|
|
(2.8
|
)%
|
|||||||
Net premiums earned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums earned
|
$
|
12,217
|
|
|
$
|
4,319
|
|
|
$
|
1,316
|
|
|
$
|
8,132
|
|
|
$
|
710
|
|
|
$
|
2,055
|
|
|
$
|
28,749
|
|
14 day stub period
|
208
|
|
|
110
|
|
|
—
|
|
|
71
|
|
|
—
|
|
|
2
|
|
|
391
|
|
|||||||
2016 As If
|
$
|
12,425
|
|
|
$
|
4,429
|
|
|
$
|
1,316
|
|
|
$
|
8,203
|
|
|
$
|
710
|
|
|
$
|
2,057
|
|
|
$
|
29,140
|
|
2015 As If
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net premiums earned
|
$
|
5,634
|
|
|
$
|
948
|
|
|
$
|
1,364
|
|
|
$
|
6,471
|
|
|
$
|
849
|
|
|
$
|
1,947
|
|
|
$
|
17,213
|
|
Legacy Chubb
|
6,850
|
|
|
3,506
|
|
|
—
|
|
|
2,096
|
|
|
26
|
|
|
40
|
|
|
12,518
|
|
|||||||
Accounting policy alignment
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
56
|
|
|
55
|
|
|||||||
2015 As If
(1)
|
$
|
12,484
|
|
|
$
|
4,454
|
|
|
$
|
1,364
|
|
|
$
|
8,566
|
|
|
$
|
875
|
|
|
$
|
2,043
|
|
|
$
|
29,786
|
|
Constant-dollar 2015 As If
|
$
|
12,471
|
|
|
$
|
4,454
|
|
|
$
|
1,364
|
|
|
$
|
8,122
|
|
|
$
|
863
|
|
|
$
|
2,001
|
|
|
$
|
29,275
|
|
Constant-dollar change As If
|
$
|
(46
|
)
|
|
$
|
(25
|
)
|
|
$
|
(48
|
)
|
|
$
|
81
|
|
|
$
|
(153
|
)
|
|
$
|
56
|
|
|
$
|
(135
|
)
|
Constant-dollar percent change As If
|
(0.4
|
)%
|
|
(0.6
|
)%
|
|
(3.6
|
)%
|
|
1.0
|
%
|
|
(17.9
|
)%
|
|
2.8
|
%
|
|
(0.5
|
)%
|
(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
|
$
|
7,439
|
|
|
$
|
2,558
|
|
|
$
|
893
|
|
|
$
|
4,005
|
|
|
$
|
325
|
|
|
$
|
169
|
|
|
$
|
15,389
|
|
14 day stub period
|
127
|
|
|
53
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
222
|
|
|||||||
(Gain) loss on crop derivatives
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||||
Pension curtailment benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|||||||
2016 As If
|
$
|
7,566
|
|
|
$
|
2,611
|
|
|
$
|
898
|
|
|
$
|
4,047
|
|
|
$
|
325
|
|
|
$
|
192
|
|
|
$
|
15,639
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss and loss expenses
|
$
|
3,661
|
|
|
$
|
590
|
|
|
$
|
1,088
|
|
|
$
|
3,052
|
|
|
$
|
290
|
|
|
$
|
202
|
|
|
$
|
8,883
|
|
Legacy Chubb
|
3,681
|
|
|
2,079
|
|
|
—
|
|
|
1,064
|
|
|
5
|
|
|
105
|
|
|
6,934
|
|
|||||||
(Gain) loss on crop derivatives
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||||
Accounting policy alignments
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
(14
|
)
|
|
(10
|
)
|
|||||||
2015 As If
(1)
|
$
|
7,342
|
|
|
$
|
2,669
|
|
|
$
|
1,097
|
|
|
$
|
4,120
|
|
|
$
|
295
|
|
|
$
|
293
|
|
|
$
|
15,816
|
|
Policy acquisition costs
|
|||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policy acquisition costs
|
$
|
2,023
|
|
|
$
|
966
|
|
|
$
|
83
|
|
|
$
|
2,136
|
|
|
$
|
187
|
|
|
$
|
—
|
|
|
$
|
5,395
|
|
Amortization of acquired UPR intangible asset
|
(859
|
)
|
|
(492
|
)
|
|
—
|
|
|
(208
|
)
|
|
—
|
|
|
—
|
|
|
(1,559
|
)
|
|||||||
Elimination of deferred acquisition cost benefit
|
729
|
|
|
406
|
|
|
—
|
|
|
238
|
|
|
—
|
|
|
—
|
|
|
1,373
|
|
|||||||
14 day stub period
|
33
|
|
|
14
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|||||||
2016 As If
|
$
|
1,926
|
|
|
$
|
894
|
|
|
$
|
83
|
|
|
$
|
2,179
|
|
|
$
|
187
|
|
|
$
|
—
|
|
|
$
|
5,269
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policy acquisition costs
|
$
|
531
|
|
|
$
|
69
|
|
|
$
|
69
|
|
|
$
|
1,581
|
|
|
$
|
214
|
|
|
$
|
1
|
|
|
$
|
2,465
|
|
Legacy Chubb
|
1,321
|
|
|
774
|
|
|
—
|
|
|
491
|
|
|
—
|
|
|
—
|
|
|
2,586
|
|
|||||||
Accounting policy alignment
|
128
|
|
|
15
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
—
|
|
|
281
|
|
|||||||
2015 As If
|
$
|
1,980
|
|
|
$
|
858
|
|
|
$
|
69
|
|
|
$
|
2,210
|
|
|
$
|
214
|
|
|
$
|
1
|
|
|
$
|
5,332
|
|
Amortization of acquired UPR intangible asset
|
855
|
|
|
490
|
|
|
—
|
|
|
205
|
|
|
—
|
|
|
—
|
|
|
1,550
|
|
|||||||
Elimination of deferred acquisition cost benefit
|
(709
|
)
|
|
(406
|
)
|
|
—
|
|
|
(169
|
)
|
|
—
|
|
|
—
|
|
|
(1,284
|
)
|
|||||||
2015 SEC pro forma
|
$
|
2,126
|
|
|
$
|
942
|
|
|
$
|
69
|
|
|
$
|
2,246
|
|
|
$
|
214
|
|
|
$
|
1
|
|
|
$
|
5,598
|
|
Administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses
|
$
|
1,125
|
|
|
$
|
363
|
|
|
$
|
(6
|
)
|
|
$
|
1,057
|
|
|
$
|
52
|
|
|
$
|
183
|
|
|
$
|
2,774
|
|
Pension curtailment benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
90
|
|
|||||||
14 day stub period
|
35
|
|
|
13
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
3
|
|
|
63
|
|
|||||||
2016 As If
|
$
|
1,160
|
|
|
$
|
376
|
|
|
$
|
(6
|
)
|
|
$
|
1,069
|
|
|
$
|
52
|
|
|
$
|
276
|
|
|
$
|
2,927
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Administrative expenses
|
$
|
621
|
|
|
$
|
123
|
|
|
$
|
1
|
|
|
$
|
997
|
|
|
$
|
49
|
|
|
$
|
188
|
|
|
$
|
1,979
|
|
Legacy Chubb
|
694
|
|
|
271
|
|
|
—
|
|
|
343
|
|
|
6
|
|
|
45
|
|
|
1,359
|
|
|||||||
Accounting policy alignment
|
(128
|
)
|
|
(15
|
)
|
|
—
|
|
|
(142
|
)
|
|
—
|
|
|
84
|
|
|
(201
|
)
|
|||||||
2015 As If
(1)
|
$
|
1,187
|
|
|
$
|
379
|
|
|
$
|
1
|
|
|
$
|
1,198
|
|
|
$
|
55
|
|
|
$
|
317
|
|
|
$
|
3,137
|
|
(Favorable) and unfavorable PPD, pre-tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Favorable) and unfavorable PPD, pre-tax
|
$
|
(264
|
)
|
|
$
|
25
|
|
|
$
|
(45
|
)
|
|
$
|
(343
|
)
|
|
$
|
(119
|
)
|
|
$
|
200
|
|
|
$
|
(546
|
)
|
Legacy Chubb
|
(519
|
)
|
|
(43
|
)
|
|
—
|
|
|
(134
|
)
|
|
(19
|
)
|
|
91
|
|
|
(624
|
)
|
|||||||
2015 As If
(1)
|
$
|
(783
|
)
|
|
$
|
(18
|
)
|
|
$
|
(45
|
)
|
|
$
|
(477
|
)
|
|
$
|
(138
|
)
|
|
$
|
291
|
|
|
$
|
(1,170
|
)
|
Catastrophe losses, pre-tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Catastrophe losses, pre-tax
|
$
|
85
|
|
|
$
|
63
|
|
|
$
|
9
|
|
|
$
|
142
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
321
|
|
Legacy Chubb
|
183
|
|
|
320
|
|
|
—
|
|
|
20
|
|
|
4
|
|
|
—
|
|
|
527
|
|
|||||||
2015 As If
(1)
|
$
|
268
|
|
|
$
|
383
|
|
|
$
|
9
|
|
|
$
|
162
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
848
|
|
|
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Fixed maturities
|
$
|
2,779
|
|
|
$
|
2,157
|
|
|
$
|
2,199
|
|
Short-term investments
|
93
|
|
|
49
|
|
|
45
|
|
|||
Equity securities
|
36
|
|
|
16
|
|
|
33
|
|
|||
Other
|
98
|
|
|
86
|
|
|
94
|
|
|||
Gross investment income
|
3,006
|
|
|
2,308
|
|
|
2,371
|
|
|||
Investment expenses
|
(141
|
)
|
|
(114
|
)
|
|
(119
|
)
|
|||
Net investment income
|
$
|
2,865
|
|
|
$
|
2,194
|
|
|
$
|
2,252
|
|
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Average invested assets
|
$
|
96,656
|
|
|
$
|
63,252
|
|
|
$
|
60,382
|
|
Net investment income
|
$
|
2,865
|
|
|
$
|
2,194
|
|
|
$
|
2,252
|
|
Return on average invested assets
(1)
|
3.4
|
%
|
|
3.5
|
%
|
|
3.7
|
%
|
(1)
|
Excludes $393 million of amortization on the purchase accounting fair value adjustment of acquired invested assets related to the Chubb Corp acquisition in 2016.
|
|
|
Year Ended December 31, 2016
|
|
|
Year Ended December 31, 2015
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
Net
Realized
Gains
(Losses)
|
|
|
Net
Unrealized
Gains
(Losses)
|
|
|
Net
Impact
|
|
|
Net
Realized
Gains
(Losses)
|
|
|
Net
Unrealized
Gains
(Losses)
|
|
|
Net
Impact
|
|
||||||
Fixed maturities
|
$
|
(163
|
)
|
|
$
|
83
|
|
|
$
|
(80
|
)
|
|
$
|
(180
|
)
|
|
$
|
(1,076
|
)
|
|
$
|
(1,256
|
)
|
Fixed income derivatives
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|
32
|
|
|
—
|
|
|
32
|
|
||||||
Public equity
|
44
|
|
|
52
|
|
|
96
|
|
|
29
|
|
|
(17
|
)
|
|
12
|
|
||||||
Private equity
|
(4
|
)
|
|
(49
|
)
|
|
(53
|
)
|
|
13
|
|
|
(46
|
)
|
|
(33
|
)
|
||||||
Total investment portfolio
(1)
|
(156
|
)
|
|
86
|
|
|
(70
|
)
|
|
(106
|
)
|
|
(1,139
|
)
|
|
(1,245
|
)
|
||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges
|
(83
|
)
|
|
—
|
|
|
(83
|
)
|
|
(213
|
)
|
|
—
|
|
|
(213
|
)
|
||||||
Other derivatives
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
||||||
Foreign exchange
|
118
|
|
|
(154
|
)
|
|
(36
|
)
|
|
(80
|
)
|
|
(958
|
)
|
|
(1,038
|
)
|
||||||
Other
|
(14
|
)
|
|
543
|
|
|
529
|
|
|
(9
|
)
|
|
25
|
|
|
16
|
|
||||||
Net gains (losses) before tax
|
(145
|
)
|
|
475
|
|
|
330
|
|
|
(420
|
)
|
|
(2,072
|
)
|
|
(2,492
|
)
|
||||||
Income tax expense (benefit)
|
66
|
|
|
54
|
|
|
120
|
|
|
(10
|
)
|
|
(146
|
)
|
|
(156
|
)
|
||||||
Net gains (losses)
|
$
|
(211
|
)
|
|
$
|
421
|
|
|
$
|
210
|
|
|
$
|
(410
|
)
|
|
$
|
(1,926
|
)
|
|
$
|
(2,336
|
)
|
(1)
|
For the year ended
December 31, 2016
, other-than-temporary impairments in Net realized gains (losses) include
$81
million for fixed maturities,
$8
million for public equity, and
$14
million for private equity. For the year ended
December 31, 2015
, other-than-temporary impairments in Net realized gains (losses) include
$103
million for fixed maturities,
$7
million for public equity, and
$2
million for private equity.
|
|
|
|
Associated with the Chubb Corp Acquisition
|
|
|
|
|
|
|||||||||||||||||
For the Years 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
(1)
|
|
|
Other intangible assets
(2)
|
|
|
Total
Amortization of purchased intangibles
|
|
||||||
2017
|
$
|
295
|
|
|
$
|
32
|
|
|
$
|
(160
|
)
|
|
$
|
167
|
|
|
$
|
84
|
|
|
$
|
251
|
|
2018
|
323
|
|
|
32
|
|
|
(101
|
)
|
|
254
|
|
|
74
|
|
|
328
|
|
||||||
2019
|
280
|
|
|
—
|
|
|
(62
|
)
|
|
218
|
|
|
68
|
|
|
286
|
|
||||||
2020
|
239
|
|
|
—
|
|
|
(35
|
)
|
|
204
|
|
|
59
|
|
|
263
|
|
||||||
2021
|
217
|
|
|
—
|
|
|
(20
|
)
|
|
197
|
|
|
52
|
|
|
249
|
|
||||||
Total
|
$
|
1,354
|
|
|
$
|
64
|
|
|
$
|
(378
|
)
|
|
$
|
1,040
|
|
|
$
|
337
|
|
|
$
|
1,377
|
|
For the Years Ending December 31
(in millions of U.S. dollars) |
Reduction to deferred tax liability associated with intangible assets
|
|
|
2017
|
$
|
114
|
|
2018
|
124
|
|
|
2019
|
98
|
|
|
2020
|
84
|
|
|
2021
|
76
|
|
|
Total
|
$
|
496
|
|
|
|
December 31, 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
|
$
|
80,115
|
|
|
$
|
79,536
|
|
|
$
|
43,587
|
|
|
$
|
43,149
|
|
Fixed maturities held to maturity
|
10,670
|
|
|
10,644
|
|
|
8,552
|
|
|
8,430
|
|
||||
Short-term investments
|
3,002
|
|
|
3,002
|
|
|
10,446
|
|
|
10,446
|
|
||||
|
93,787
|
|
|
93,182
|
|
|
62,585
|
|
|
62,025
|
|
||||
Equity securities
|
814
|
|
|
706
|
|
|
497
|
|
|
441
|
|
||||
Other investments
|
4,519
|
|
|
4,270
|
|
|
3,291
|
|
|
2,993
|
|
||||
Total investments
|
$
|
99,120
|
|
|
$
|
98,158
|
|
|
$
|
66,373
|
|
|
$
|
65,459
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
||||||||
(in millions of U.S. dollars, except for percentages)
|
Market Value
|
|
|
% of Total
|
|
|
Market Value
|
|
|
% of Total
|
|
||
Treasury
|
$
|
2,832
|
|
|
3
|
%
|
|
$
|
2,395
|
|
|
4
|
%
|
Agency
|
699
|
|
|
1
|
%
|
|
878
|
|
|
1
|
%
|
||
Corporate and asset-backed securities
|
26,944
|
|
|
29
|
%
|
|
17,985
|
|
|
28
|
%
|
||
Mortgage-backed securities
|
15,435
|
|
|
16
|
%
|
|
11,701
|
|
|
19
|
%
|
||
Municipal
|
22,768
|
|
|
24
|
%
|
|
4,950
|
|
|
8
|
%
|
||
Non-U.S.
|
22,107
|
|
|
24
|
%
|
|
14,230
|
|
|
23
|
%
|
||
Short-term investments
|
3,002
|
|
|
3
|
%
|
|
10,446
|
|
|
17
|
%
|
||
Total
|
$
|
93,787
|
|
|
100
|
%
|
|
$
|
62,585
|
|
|
100
|
%
|
AAA
|
$
|
15,746
|
|
|
17
|
%
|
|
$
|
14,369
|
|
|
23
|
%
|
AA
|
36,235
|
|
|
39
|
%
|
|
22,141
|
|
|
36
|
%
|
||
A
|
17,519
|
|
|
19
|
%
|
|
10,163
|
|
|
16
|
%
|
||
BBB
|
12,237
|
|
|
13
|
%
|
|
8,941
|
|
|
14
|
%
|
||
BB
|
6,993
|
|
|
7
|
%
|
|
3,775
|
|
|
6
|
%
|
||
B
|
4,814
|
|
|
5
|
%
|
|
3,018
|
|
|
5
|
%
|
||
Other
|
243
|
|
|
—
|
%
|
|
178
|
|
|
—
|
%
|
||
Total
|
$
|
93,787
|
|
|
100
|
%
|
|
$
|
62,585
|
|
|
100
|
%
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
JP Morgan Chase & Co
|
$
|
575
|
|
Wells Fargo & Co
|
522
|
|
|
Goldman Sachs Group Inc
|
435
|
|
|
Anheuser-Busch InBev NV
|
426
|
|
|
General Electric Co
|
423
|
|
|
Verizon Communications Inc
|
381
|
|
|
Morgan Stanley
|
358
|
|
|
Bank of America Corp
|
356
|
|
|
AT&T Inc
|
338
|
|
|
Berkshire Hathaway Inc
|
324
|
|
|
S&P Credit Rating
|
|
|
Market Value
|
|
|
Amortized Cost
|
|
|||||||||||||||||||
December 31, 2016 (in millions of U.S. dollars)
|
AAA
|
|
|
AA
|
|
|
A
|
|
|
BBB
|
|
|
BB and
below
|
|
|
Total
|
|
|
Total
|
|
|||||||
Agency residential mortgage-backed (RMBS)
|
$
|
—
|
|
|
$
|
12,530
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,530
|
|
|
$
|
12,557
|
|
Non-agency RMBS
|
1
|
|
|
5
|
|
|
60
|
|
|
5
|
|
|
32
|
|
|
103
|
|
|
103
|
|
|||||||
Commercial mortgage-backed
|
2,763
|
|
|
38
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2,802
|
|
|
2,799
|
|
|||||||
Total mortgage-backed securities
|
$
|
2,764
|
|
|
$
|
12,573
|
|
|
$
|
61
|
|
|
$
|
5
|
|
|
$
|
32
|
|
|
$
|
15,435
|
|
|
$
|
15,459
|
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
Amortized Cost
|
|
||
United Kingdom
|
$
|
1,647
|
|
|
$
|
1,595
|
|
Canada
|
1,066
|
|
|
1,067
|
|
||
Republic of Korea
|
1,038
|
|
|
934
|
|
||
Federative Republic of Brazil
|
860
|
|
|
854
|
|
||
Province of Ontario
|
567
|
|
|
560
|
|
||
Province of Quebec
|
442
|
|
|
438
|
|
||
Germany
|
437
|
|
|
423
|
|
||
United Mexican States
|
422
|
|
|
430
|
|
||
Kingdom of Thailand
|
403
|
|
|
384
|
|
||
Australia
|
334
|
|
|
321
|
|
||
Other Non-U.S. Government Securities
(1)
|
3,952
|
|
|
3,861
|
|
||
Total
|
$
|
11,168
|
|
|
$
|
10,867
|
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
Amortized Cost
|
|
||
United Kingdom
|
$
|
2,031
|
|
|
$
|
1,960
|
|
Canada
|
1,448
|
|
|
1,427
|
|
||
United States
(1)
|
848
|
|
|
835
|
|
||
France
|
809
|
|
|
788
|
|
||
Netherlands
|
765
|
|
|
744
|
|
||
Australia
|
634
|
|
|
620
|
|
||
Germany
|
604
|
|
|
585
|
|
||
Japan
|
393
|
|
|
392
|
|
||
Switzerland
|
322
|
|
|
316
|
|
||
China
|
278
|
|
|
275
|
|
||
Other Non-U.S. Corporate Securities
|
2,807
|
|
|
2,761
|
|
||
Total
|
$
|
10,939
|
|
|
$
|
10,703
|
|
|
(in millions of U.S. dollars)
|
December 31 2016
|
|
|
December 31 2015
|
|
|||
Reinsurance recoverable on unpaid losses and loss expenses
(1)
|
$
|
12,708
|
|
|
$
|
10,741
|
|
|
Reinsurance recoverable on paid losses and loss expenses
(1)
|
869
|
|
|
645
|
|
|||
Reinsurance recoverable on losses and loss expenses
(1)
|
$
|
13,577
|
|
|
$
|
11,386
|
|
|
Reinsurance recoverable on policy benefits
(1)
|
$
|
182
|
|
|
$
|
187
|
|
(1)
|
Net of a provision for uncollectible reinsurance.
|
|
|
Asbestos (by causative agent)
|
|
|
Environmental (by account)
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
(1)
|
|
Open at beginning of year
|
1,145
|
|
|
1,127
|
|
|
1,011
|
|
|
1,060
|
|
Newly reported
|
81
|
|
|
64
|
|
|
76
|
|
|
8
|
|
Closed or otherwise disposed
|
23
|
|
|
46
|
|
|
18
|
|
|
57
|
|
Acquired
|
563
|
|
|
—
|
|
|
326
|
|
|
—
|
|
Open at end of year
|
1,766
|
|
|
1,145
|
|
|
1,395
|
|
|
1,011
|
|
|
|
|
Modeled Annual Aggregate Net PML
|
||||||||||||||||||||||||||
|
|
U.S. Hurricane
|
|
California Earthquake
|
||||||||||||||||||||||||
|
|
December 31
|
|
|
December 31
|
|
|
December 31
|
|
|
December 31
|
|
||||||||||||||||
|
|
2016
|
|
|
2015
(1)
|
|
|
2016
|
|
|
2015
(1)
|
|
||||||||||||||||
(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
|
|
$
|
3,071
|
|
|
6.4
|
%
|
|
2.1
|
%
|
|
$
|
1,700
|
|
|
$
|
1,487
|
|
|
3.1
|
%
|
|
3.8
|
%
|
|
$
|
718
|
|
1-in-250
|
|
$
|
5,229
|
|
|
10.8
|
%
|
|
2.5
|
%
|
|
$
|
2,346
|
|
|
$
|
1,980
|
|
|
4.1
|
%
|
|
3.3
|
%
|
|
$
|
988
|
|
|
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
|
|
|
(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 percent placed with Reinsurers.
|
(c)
These coverages are both part of the same Second layer within the Global Catastrophe Program and are 100 percent 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 percent placed with Reinsurers. As such, it may be exhausted in one region and not available in the other.
|
|
|
|
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
||
Short-term debt
|
$
|
500
|
|
|
$
|
—
|
|
Long-term debt
|
12,610
|
|
|
9,389
|
|
||
Total financial debt
|
13,110
|
|
|
9,389
|
|
||
Trust preferred securities
|
308
|
|
|
307
|
|
||
Total shareholders’ equity
|
48,275
|
|
|
29,135
|
|
||
Total capitalization
|
$
|
61,693
|
|
|
$
|
38,831
|
|
Ratio of financial debt to total capitalization
|
21.3
|
%
|
|
24.2
|
%
|
||
Ratio of financial debt plus trust preferred securities to total capitalization
|
21.8
|
%
|
|
25.0
|
%
|
•
|
$2.0 billion of Chubb Common Shares from November 21, 2013 through December 31, 2014
|
•
|
$1.5 billion of Chubb Common Shares from January 1, 2015 through December 31, 2015
|
•
|
$1.0 billion of Chubb Common Shares from November 17, 2016 through December 31, 2017
|
|
|
Payments Due By Period
|
|
|||||||||||||||||
|
|
|
|
|
2018
|
|
|
2020
|
|
|
|
||||||||
(in millions of U.S. dollars)
|
Total
|
|
2017
|
|
and 2019
|
|
and 2021
|
|
Thereafter
|
|
|||||||||
Payment amounts determinable from the respective contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
(1)
|
$
|
1,559
|
|
|
$
|
18
|
|
|
$
|
37
|
|
|
$
|
37
|
|
|
$
|
1,467
|
|
Purchase obligations
(2)
|
626
|
|
|
198
|
|
|
205
|
|
|
151
|
|
|
72
|
|
|||||
Investments, including Limited Partnerships
(3)
|
2,756
|
|
|
1,319
|
|
|
1,031
|
|
|
406
|
|
|
—
|
|
|||||
Operating leases
|
797
|
|
|
173
|
|
|
267
|
|
|
171
|
|
|
186
|
|
|||||
Repurchase agreements
|
1,403
|
|
|
1,403
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Short-term debt
|
500
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt
|
12,261
|
|
|
—
|
|
|
1,500
|
|
|
1,311
|
|
|
9,450
|
|
|||||
Trust preferred securities
|
309
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|||||
Interest on debt obligations
(4)
|
7,458
|
|
|
565
|
|
|
973
|
|
|
865
|
|
|
5,055
|
|
|||||
Total obligations in which payment amounts are determinable from the respective contracts
|
27,669
|
|
|
4,176
|
|
|
4,013
|
|
|
2,941
|
|
|
16,539
|
|
|||||
Payment amounts not determinable from the respective contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Estimated gross loss payments under insurance and reinsurance contracts
|
60,571
|
|
|
15,418
|
|
|
16,626
|
|
|
8,641
|
|
|
19,886
|
|
|||||
Estimated payments for future policy benefits
|
20,549
|
|
|
905
|
|
|
1,767
|
|
|
1,544
|
|
|
16,333
|
|
|||||
Total contractual obligations and commitments
|
$
|
108,789
|
|
|
$
|
20,499
|
|
|
$
|
22,406
|
|
|
$
|
13,126
|
|
|
$
|
52,758
|
|
(1)
|
Refer to Note 1 k) to the Consolidated Financial Statements.
|
(2)
|
Primarily comprises audit fees and agreements with vendors to purchase system software administration and maintenance services.
|
(3)
|
Funding commitment primarily related to limited partnerships. The timing of the payments of these commitments is uncertain and may differ from the estimated timing in the table.
|
(4)
|
Junior subordinated capital securities of $1.0 billion bear interest at a fixed rate of 6.375 percent through April 14, 2017 and at a rate equal to the three-month LIBOR rate plus 2.25 percent thereafter. For purposes of the above table, interest after April 14, 2017 was calculated using the three-month LIBOR rate as of December 31, 2016. The table includes future interest payments through the scheduled maturity date, April 15, 2037. Interest payments for the period from the scheduled maturity date through the final maturity date, March 29, 2067, would increase the contractual obligation by $974 million.
|
•
|
Pension obligations: Minimum funding requirements for our pension obligations are immaterial. Subsequent funding commitments are apt to vary due to many factors and are difficult to estimate at this time. Refer to Note
13
to the Consolidated Financial Statements for additional information.
|
•
|
Liabilities for unrecognized tax benefits: The liability for unrecognized tax benefits, excluding interest, was
$17 million
at
December 31, 2016
. We recognize accruals for interest and penalties, if any, related to unrecognized tax benefits in Income tax expense in the Consolidated statements of operations. At
December 31, 2016
, we had
$4 million
in liabilities for income tax-related interest and penalties in our Consolidated balance sheets. We are unable to make a reasonably reliable estimate for the timing of cash settlement with respect to these liabilities. Refer to Note
8
to the Consolidated Financial Statements for additional information.
|
|
(i)
|
Maintenance of a minimum consolidated net worth in an amount not less than the “Minimum Amount”. For the purpose of this calculation, the Minimum Amount is an amount equal to the sum of the base amount (currently $20.4 billion) plus 25 percent of consolidated net income for each fiscal quarter, ending after the date on which the current base amount became effective, plus 50 percent of any increase in consolidated net worth during the same period, attributable to the issuance of Common and Preferred Shares. The Minimum Amount is subject to an annual reset provision.
|
(ii)
|
Maintenance of a maximum debt to total capitalization ratio of not greater than 0.35 to 1. Under this covenant, debt does not include repurchase agreements, trust preferred securities or mezzanine equity, except where the ratio of the sum of trust preferred securities and mezzanine equity to total capitalization is greater than 15 percent. In this circumstance, the amount greater than 15 percent would be included in the debt to total capitalization ratio. This covenant also excludes the purchase accounting fair value adjustment of the debt acquired through the Chubb Corp acquisition.
|
|
|
(in billions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|||
Fair value of fixed income portfolio
|
$
|
93.8
|
|
|
$
|
62.6
|
|
|
Pre-tax impact of 100 bps increase in interest rates:
|
|
|
|
|||||
|
Decrease in dollars
|
$
|
3.9
|
|
|
$
|
2.2
|
|
|
As a percentage of total fixed income portfolio at fair value
|
4.2
|
%
|
|
3.5
|
%
|
(in millions of U.S. dollars, except for percentages)
|
2016
|
|
|
2015
|
|
|||
Fair value of debt obligations, including repurchase agreements
|
$
|
15,360
|
|
|
$
|
11,528
|
|
|
Impact of 100 bps decrease in interest rates:
|
|
|
|
|||||
|
Increase in dollars
|
$
|
1,154
|
|
|
$
|
921
|
|
|
As a percentage of total debt obligations at fair value
|
7.5
|
%
|
|
8.0
|
%
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
2016 vs. 2015 % change in exchange rate per USD
|
|
||||
|
|
Value of
|
|
|
Exchange rate
|
|
|
Value of
|
|
|
Exchange
rate
|
|
|
||||
(in millions of U.S. dollars, except for percentages)
|
|
Net Assets
|
|
|
per USD
|
|
|
Net Assets
|
|
|
per USD
|
|
|
||||
British pound sterling (GBP)
|
|
$
|
2,643
|
|
|
1.2340
|
|
$
|
1,200
|
|
|
1.4736
|
|
|
(16.3
|
)%
|
|
Canadian dollar (CAD)
|
|
2,508
|
|
|
0.7440
|
|
507
|
|
|
0.7226
|
|
|
3.0
|
%
|
|||
Euro (EUR)
|
|
1,871
|
|
|
1.0517
|
|
749
|
|
|
1.0862
|
|
|
(3.2
|
)%
|
|||
Australian dollar (AUD)
|
|
1,327
|
|
|
0.7208
|
|
373
|
|
|
0.7286
|
|
|
(1.1
|
)%
|
|||
Brazilian real (BRL)
|
|
1,194
|
|
|
0.3072
|
|
682
|
|
|
0.2525
|
|
|
21.7
|
%
|
|||
Mexican peso (MXN)
|
|
687
|
|
|
0.0483
|
|
683
|
|
|
0.0581
|
|
|
(16.9
|
)%
|
|||
Thai baht (THB)
|
|
429
|
|
|
0.0279
|
|
377
|
|
|
0.0278
|
|
|
0.4
|
%
|
|||
Japanese yen (JPY)
|
|
391
|
|
|
0.0086
|
|
493
|
|
|
0.0083
|
|
|
3.6
|
%
|
|||
Hong Kong dollar (HKD)
|
|
370
|
|
|
0.1289
|
|
82
|
|
|
0.1290
|
|
|
(0.1
|
)%
|
|||
Korean won (KRW) (x100)
|
|
316
|
|
|
0.0829
|
|
613
|
|
|
0.0851
|
|
|
(2.6
|
)%
|
|||
Other foreign currencies
|
|
1,191
|
|
|
various
|
|
|
1,107
|
|
|
various
|
|
|
NM
|
|
||
Value of net assets denominated in foreign currencies
|
|
$
|
12,927
|
|
|
|
|
$
|
6,866
|
|
|
|
|
|
|||
As a percentage of total net assets
|
|
26.8
|
%
|
|
|
|
23.6
|
%
|
|
|
|
|
|||||
Pre-tax decrease to Shareholders' equity of a hypothetical 10 percent strengthening of the U.S. dollar
|
|
$
|
1,175
|
|
|
|
|
$
|
624
|
|
|
|
|
|
•
|
No changes to the benefit ratio used to establish benefit reserves at
December 31, 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),
15
percent—
25
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
December 31, 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
62
percent of that population has become eligible to annuitize and generate a claim (since approximately 38 percent of policies are not eligible to annuitize until after
December 31, 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 first quarter 2017 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 Insurance 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
|
$
|
410
|
|
|
$
|
264
|
|
|
$
|
38
|
|
|
$
|
(242
|
)
|
|
$
|
(577
|
)
|
|
$
|
(958
|
)
|
|
Increase/(decrease) in hedge value
|
(132
|
)
|
|
—
|
|
|
132
|
|
|
263
|
|
|
395
|
|
|
526
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
278
|
|
|
$
|
264
|
|
|
$
|
170
|
|
|
$
|
21
|
|
|
$
|
(182
|
)
|
|
$
|
(432
|
)
|
Flat
|
(Increase)/decrease in Gross FVL
|
$
|
207
|
|
|
$
|
—
|
|
|
$
|
(260
|
)
|
|
$
|
(576
|
)
|
|
$
|
(943
|
)
|
|
$
|
(1,347
|
)
|
|
Increase/(decrease) in hedge value
|
(132
|
)
|
|
—
|
|
|
132
|
|
|
263
|
|
|
395
|
|
|
526
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
(128
|
)
|
|
$
|
(313
|
)
|
|
$
|
(548
|
)
|
|
$
|
(821
|
)
|
-100 bps
|
(Increase)/decrease in Gross FVL
|
$
|
(78
|
)
|
|
$
|
(318
|
)
|
|
$
|
(613
|
)
|
|
$
|
(960
|
)
|
|
$
|
(1,352
|
)
|
|
$
|
(1,768
|
)
|
|
Increase/(decrease) in hedge value
|
(132
|
)
|
|
—
|
|
|
132
|
|
|
263
|
|
|
395
|
|
|
526
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
(210
|
)
|
|
$
|
(318
|
)
|
|
$
|
(481
|
)
|
|
$
|
(697
|
)
|
|
$
|
(957
|
)
|
|
$
|
(1,242
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
$
|
65
|
|
|
$
|
(73
|
)
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(9
|
)
|
|
$
|
8
|
|
|
Increase/(decrease) in hedge value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Increase/(decrease) in net income
|
$
|
65
|
|
|
$
|
(73
|
)
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(9
|
)
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sensitivities to Actuarial Assumptions
|
|
|
|
|
Mortality
|
|||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+20
|
%
|
|
+10
|
%
|
|
-10
|
%
|
|
-20
|
%
|
|||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
33
|
|
|
$
|
17
|
|
|
$
|
(17
|
)
|
|
$
|
(35
|
)
|
|||||
Increase/(decrease) in hedge value
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
33
|
|
|
$
|
17
|
|
|
$
|
(17
|
)
|
|
$
|
(35
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Lapses
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+50
|
%
|
|
+25
|
%
|
|
-25
|
%
|
|
-50
|
%
|
|||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
144
|
|
|
$
|
76
|
|
|
$
|
(84
|
)
|
|
$
|
(178
|
)
|
|||||
Increase/(decrease) in hedge value
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
144
|
|
|
$
|
76
|
|
|
$
|
(84
|
)
|
|
$
|
(178
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Annuitization
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+50
|
%
|
|
+25
|
%
|
|
-25
|
%
|
|
-50
|
%
|
|||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
(452
|
)
|
|
$
|
(246
|
)
|
|
$
|
287
|
|
|
$
|
514
|
|
|||||
Increase/(decrease) in hedge value
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
(452
|
)
|
|
$
|
(246
|
)
|
|
$
|
287
|
|
|
$
|
514
|
|
|
Equity Shock
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
+20
|
%
|
|
Flat
|
|
|
-20
|
%
|
|
-40
|
%
|
|
-60
|
%
|
|
-80
|
%
|
||||||
GMDB net amount at risk
|
$
|
305
|
|
|
$
|
341
|
|
|
$
|
725
|
|
|
$
|
1,089
|
|
|
$
|
1,071
|
|
|
$
|
910
|
|
Claims at 100% immediate mortality
|
196
|
|
|
202
|
|
|
226
|
|
|
235
|
|
|
233
|
|
|
219
|
|
|
Equity Shock
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
+20
|
%
|
|
Flat
|
|
|
-20
|
%
|
|
-40
|
%
|
|
-60
|
%
|
|
-80
|
%
|
||||||
GLB net amount at risk
|
$
|
444
|
|
|
$
|
800
|
|
|
$
|
1,400
|
|
|
$
|
2,227
|
|
|
$
|
2,722
|
|
|
$
|
2,968
|
|
|
Equity Shock
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
+20
|
%
|
|
Flat
|
|
|
-20
|
%
|
|
-40
|
%
|
|
-60
|
%
|
|
-80
|
%
|
||||||
GMDB net amount at risk
|
$
|
69
|
|
|
$
|
88
|
|
|
$
|
110
|
|
|
$
|
127
|
|
|
$
|
139
|
|
|
$
|
145
|
|
GLB net amount at risk
|
287
|
|
|
464
|
|
|
772
|
|
|
1,228
|
|
|
1,661
|
|
|
2,026
|
|
||||||
Claims at 100% immediate mortality
|
19
|
|
|
22
|
|
|
206
|
|
|
370
|
|
|
469
|
|
|
561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page
|
1.
|
Consolidated Financial Statements
|
|
–
|
||
–
|
||
–
|
||
–
|
||
–
|
||
–
|
||
–
|
||
2.
|
Financial Statement Schedules
|
|
–
|
||
–
|
||
–
|
||
–
|
Other schedules have been omitted as they are not applicable to Chubb, or the required information has been included in the Consolidated Financial Statements and related notes.
|
||||
3.
|
Exhibits
|
|
|
|
|
|
|
|
|
|
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 and restated
|
|
8-K
|
|
3.1
|
|
May 20, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
Organizational Regulations of the Company as amended
|
|
8-K
|
|
3.1
|
|
November 21, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
Articles of Association of the Company, as amended and restated
|
|
8-K
|
|
4.1
|
|
May 20, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
Organizational Regulations of the Company as amended
|
|
8-K
|
|
3.1
|
|
November 21, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.3
|
|
Specimen share certificate representing Common Shares
|
|
8-K
|
|
4.3
|
|
July 18, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.4
|
|
Form of 2.6 percent Senior Notes due 2015
|
|
8-K
|
|
4.1
|
|
November 23, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.5
|
|
Indenture, dated March 15, 2002, between ACE Limited and Bank One Trust Company, N.A.
|
|
8-K
|
|
4.1
|
|
March 22, 2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.6
|
|
Senior Indenture, dated August 1, 1999, among ACE INA Holdings, Inc., ACE Limited and Bank of New York Mellon Trust Company, N.A. (as successor), as trustee
|
|
S-3
ASR
|
|
4.4
|
|
December 10, 2014
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
|
|
|
|
|
|
|
|
|
|
|
4.7
|
|
Indenture, dated November 30, 1999, among ACE INA Holdings, Inc. and Bank One Trust Company, N.A., as trustee
|
|
10-K
|
|
10.38
|
|
March 29, 2000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.8
|
|
Indenture, dated December 1, 1999, among ACE INA Holdings, Inc., ACE Limited and Bank One Trust Company, National Association, as trustee
|
|
10-K
|
|
10.41
|
|
March 29, 2000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.9
|
|
Amended and Restated Trust Agreement, dated March 31, 2000, among ACE INA Holdings, Inc., Bank One Trust Company, National Association, as property trustee, Bank One Delaware Inc., as Delaware trustee and the administrative trustees named therein
|
|
10-K
|
|
4.17
|
|
March 16, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.10
|
|
Common Securities Guarantee Agreement, dated March 31, 2000
|
|
10-K
|
|
4.18
|
|
March 16, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.11
|
|
Capital Securities Guarantee Agreement, dated March 31, 2000
|
|
10-K
|
|
4.19
|
|
March 16, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.12
|
|
Form of 2.70 percent Senior Notes due 2023
|
|
8-K
|
|
4.1
|
|
March 13, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.13
|
|
Form of 4.15 percent Senior Notes due 2043
|
|
8-K
|
|
4.2
|
|
March 13, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.14
|
|
First Supplemental Indenture dated as of March 13, 2013 to the Indenture dated as of August 1, 1999 among ACE INA Holdings, Inc., as Issuer, ACE Limited, as Guarantor, and The Bank of New York Mellon Trust Company, N.A., as Successor Trustee
|
|
8-K
|
|
4.3
|
|
March 13, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.15
|
|
Form of 3.35 percent Senior Notes due 2024
|
|
8-K
|
|
4.1
|
|
May 27, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.16
|
|
Form of 3.150 percent Senior Notes due 2025
|
|
8-K
|
|
4.1
|
|
March 16, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.17
|
|
Form of 2.30 percent Senior Notes due 2020
|
|
8-K
|
|
4.1
|
|
November 3, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.18
|
|
Form of 2.875 percent Senior Notes due 2022
|
|
8-K
|
|
4.2
|
|
November 3, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.19
|
|
Form of 3.35 percent Senior Notes due 2026
|
|
8-K
|
|
4.3
|
|
November 3, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.20
|
|
Form of 4.35 percent Senior Notes due 2045
|
|
8-K
|
|
4.4
|
|
November 3, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.21
|
|
First Supplemental Indenture to the Chubb Corp Senior Indenture dated as of January 15, 2016 to the Indenture dated as of October 25, 1989 among ACE INA Holdings, Inc., as Successor Issuer, ACE Limited, as Guarantor, and The Bank of New York Mellon Trust Company, N.A., as Trustee
|
|
8-K
|
|
4.1
|
|
January 15, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.22
|
|
Second Supplemental Indenture to the Chubb Corp Junior Subordinated Indenture dated as of January 15, 2016 to the Indenture dated as of March 29, 2007 among ACE INA Holdings, Inc., as Successor Issuer, ACE Limited, as Guarantor, and The Bank of New York Mellon Trust Company, N.A., as Trustee
|
|
8-K
|
|
4.2
|
|
January 15, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.23
|
|
Chubb Corp Senior Indenture (incorporated by reference to Exhibit 4(a) to Chubb Corp's Registration Statement on Form S-3 filed on October 27, 1989) (File No. 33-31796)
|
|
S-3
|
|
4(a)
|
|
October 27, 1989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.24
|
|
Chubb Corp Junior Subordinated Indenture (incorporated by reference to Exhibit 4.1 to Chubb Corp's Current Report on Form 8-K filed on March 30, 2007) (File No. 001-08661)
|
|
8-K
|
|
4.1
|
|
March 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
4.25
|
|
First Supplemental Indenture to the Chubb Corp Junior Subordinated Indenture dated as of March 29, 2007 between the Chubb Corporation and The Bank of New York Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.2 to Chubb Corp's Current Report on Form 8-K filed on March 30, 2007) (File No. 001-08661)
|
|
8-K
|
|
4.2
|
|
March 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.26
|
|
Form of 5.75 percent Chubb Corp Senior Notes due 2018 (incorporated by reference to Exhibit 4.1 to Chubb Corp's Current Report on Form 8-K filed on May 6, 2008) (File No. 001-08661)
|
|
8-K
|
|
4.1
|
|
May 6, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.27
|
|
Form of 6.60 percent Chubb Corp Debentures due 2018 (incorporated by reference to Exhibit 4(a) to Chubb Corp's Registration Statement on Form S-3 filed on October 27, 1989) (File No. 33-31796)
|
|
S-3
|
|
4(a)
|
|
October 27, 1989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.28
|
|
Form of 6.80 percent Chubb Corp Debentures due 2031 (incorporated by reference to Exhibit 4(a) to Chubb Corp's Registration Statement on Form S-3 filed on October 27, 1989) (File No. 33-31796)
|
|
S-3
|
|
4(a)
|
|
October 27, 1989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.29
|
|
Form of 6.00 percent Chubb Corp Senior Notes due 2037 (incorporated by reference to Exhibit 4.1 to Chubb Corp's Current Report on Form 8-K filed on May 11, 2007) (File No. 001-08661)
|
|
8-K
|
|
4.1
|
|
May 11, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.30
|
|
Form of 6.50 percent Chubb Corp Senior Notes due 2038 (incorporated by reference to Exhibit 4.2 to Chubb Corp's Current Report on Form 8-K filed on May 6, 2008) (File No. 001-08661)
|
|
8-K
|
|
4.2
|
|
May 6, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.31
|
|
Form of debenture for the 6.375 percent Chubb Corp DISCs (incorporated by reference to Exhibit 4.3 to Chubb Corp's Current Report on Form 8-K filed on March 30, 2007) (File No. 001-08661)
|
|
8-K
|
|
4.3
|
|
March 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.32
|
|
Procedures regarding the registration of shareholders in the share register of Chubb Limited
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.1*
|
|
Form of Indemnification Agreement between the Company and the directors of the Company, dated August 13, 2015
|
|
10-K
|
|
10.1
|
|
February 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
Credit Agreement for $1,000,000,000 Senior Unsecured Letter of Credit Facility, dated as of November 6, 2012, among ACE Limited, and certain subsidiaries and Wells Fargo Bank, National Association as Administrative Agent, the Swingline Bank and an Issuing Bank
|
|
10-K
|
|
10.13
|
|
February 28, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3*
|
|
Employment Terms dated October 29, 2001, between ACE Limited and Evan Greenberg
|
|
10-K
|
|
10.64
|
|
March 27, 2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.4*
|
|
Employment Terms dated November 2, 2001, between ACE Limited and Philip V. Bancroft
|
|
10-K
|
|
10.65
|
|
March 27, 2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.5*
|
|
Executive Severance Agreement between ACE Limited and Philip Bancroft, effective January 2, 2002
|
|
10-Q
|
|
10.1
|
|
May 10, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.6*
|
|
Letter Regarding Executive Severance between ACE Limited and Philip V. Bancroft
|
|
10-K
|
|
10.17
|
|
February 25, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.7*
|
|
Employment Terms dated April 10, 2006, between ACE and John Keogh
|
|
10-K
|
|
10.29
|
|
February 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
10.8*
|
|
Executive Severance Agreement between ACE and John Keogh
|
|
10-K
|
|
10.30
|
|
February 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.9*
|
|
ACE Limited Executive Severance Plan as amended effective May 18, 2011
|
|
10-K
|
|
10.21
|
|
February 24, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.10*
|
|
Form of employment agreement between the Company (or subsidiaries of the Company) and executive officers of the Company to allocate a percentage of aggregate salary to the Company (or subsidiaries of the Company)
|
|
8-K
|
|
10.1
|
|
July 16, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.11*
|
|
Description of Executive Officer Cash Compensation for 2011
|
|
10-Q
|
|
10.1
|
|
November 3, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.12*
|
|
Outside Directors Compensation Parameters
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.13*
|
|
ACE Limited Annual Performance Incentive Plan
|
|
S-1
|
|
10.13
|
|
January 21, 1993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.14*
|
|
ACE Limited Elective Deferred Compensation Plan (as amended and restated effective January 1, 2005)
|
|
10-K
|
|
10.24
|
|
March 16, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.15*
|
|
ACE USA Officer Deferred Compensation Plan (as amended through January 1, 2001)
|
|
10-K
|
|
10.25
|
|
March 16, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16*
|
|
ACE USA Officer Deferred Compensation Plan (as amended and restated effective January 1, 2011)
|
|
10-Q
|
|
10.7
|
|
October 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17*
|
|
ACE USA Officer Deferred Compensation Plan (as amended and restated effective January 1, 2009)
|
|
10-K
|
|
10.36
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18*
|
|
First Amendment to the Amended and Restated ACE USA Officers Deferred Compensation Plan
|
|
10-K
|
|
10.28
|
|
February 25, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19*
|
|
Form of Swiss Mandatory Retirement Benefit Agreement (for Swiss-employed named executive officers)
|
|
10-Q
|
|
10.2
|
|
May 7, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.20*
|
|
ACE Limited Supplemental Retirement Plan (as amended and restated effective July 1, 2001)
|
|
10-Q
|
|
10.1
|
|
November 14, 2001
|
|
|
|
|
|
|
|
|
|
|
|
||
10.21*
|
|
ACE Limited Supplemental Retirement Plan (as amended and restated effective January 1, 2011)
|
|
10-Q
|
|
10.6
|
|
October 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.22*
|
|
Amendments to the ACE Limited Supplemental Retirement Plan and the ACE Limited Elective Deferred Compensation Plan
|
|
10-K
|
|
10.38
|
|
February 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23*
|
|
ACE Limited Elective Deferred Compensation Plan (as amended and restated effective January 1, 2009)
|
|
10-K
|
|
10.39
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24*
|
|
ACE Limited Elective Deferred Compensation Plan (as amended and restated effective January 1, 2011)
|
|
10-Q
|
|
10.5
|
|
October 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.25*
|
|
Deferred Compensation Plan amendments, effective January 1, 2009
|
|
10-K
|
|
10.40
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26*
|
|
Amendment to the ACE Limited Supplemental Retirement Plan
|
|
10-K
|
|
10.39
|
|
February 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27*
|
|
Amendment and restated ACE Limited Supplemental Retirement Plan, effective January 1, 2009
|
|
10-K
|
|
10.42
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.28*
|
|
ACE USA Supplemental Employee Retirement Savings Plan
|
|
10-Q
|
|
10.6
|
|
May 15, 2000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
10.29*
|
|
ACE USA Supplemental Employee Retirement Savings Plan (as amended through the Second Amendment)
|
|
10-K
|
|
10.30
|
|
March 1, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.30*
|
|
ACE USA Supplemental Employee Retirement Savings Plan (as amended through the Third Amendment)
|
|
10-K
|
|
10.31
|
|
March 1, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.31*
|
|
ACE USA Supplemental Employee Retirement Savings Plan (as amended and restated)
|
|
10-K
|
|
10.46
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.32*
|
|
First Amendment to the Amended and Restated ACE USA Supplemental Employee Retirement Savings Plan
|
|
10-K
|
|
10.39
|
|
February 25, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.33*
|
|
The ACE Limited 1995 Outside Directors Plan (as amended through the Seventh Amendment)
|
|
10-Q
|
|
10.1
|
|
August 14, 2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.34*
|
|
ACE Limited 1998 Long-Term Incentive Plan (as amended through the Fourth Amendment)
|
|
10-K
|
|
10.34
|
|
March 1, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.35*
|
|
ACE Limited 2004 Long-Term Incentive Plan (as amended through the Fifth Amendment)
|
|
8-K
|
|
10
|
|
May 21, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.36*
|
|
ACE Limited 2004 Long-Term Incentive Plan (as amended through the Sixth Amendment)
|
|
8-K
|
|
10.1
|
|
May 20, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.37*
|
|
ACE Limited Rules of the Approved U.K. Stock Option Program
|
|
10-Q
|
|
10.2
|
|
February 13, 1998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.38*
|
|
Form of Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-K
|
|
10.54
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.39*
|
|
Form of Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-K
|
|
10.55
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.40*
|
|
Director Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.1
|
|
November 9, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.41*
|
|
Form of Restricted Stock Unit Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.1
|
|
May 8, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.42*
|
|
Form of Restricted Stock Unit Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.2
|
|
May 8, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.43*
|
|
Form of Restricted Stock Unit Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-K
|
|
10.60
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.44*
|
|
Form of Restricted Stock Unit Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.2
|
|
October 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.45*
|
|
Form of Restricted Stock Unit Award Terms under the ACE Limited 2004 Long-Term Incentive Plan for Chief Executive Officer, Chief Financial Officer and the General Counsel
|
|
10-K
|
|
10.56
|
|
February 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.46*
|
|
Form of Incentive Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
8-K
|
|
10.4
|
|
September 13, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.47*
|
|
Form of Incentive Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.4
|
|
May 8, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.48*
|
|
Form of Incentive Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-K
|
|
10.63
|
|
February 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
10.49*
|
|
Form of Incentive Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.3
|
|
October 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.50*
|
|
Form of Non-Qualified Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
8-K
|
|
10.5
|
|
September 13, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.51*
|
|
Form of Non-Qualified Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.3
|
|
May 8, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.52*
|
|
Form of Non-Qualified Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.4
|
|
October 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.53*
|
|
Form of Performance Based Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan, as updated through May 4, 2006
|
|
10-Q
|
|
10.3
|
|
May 5, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.54*
|
|
Revised Form of Performance Based Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.2
|
|
November 8, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.55*
|
|
Revised Form of Performance Based Restricted Stock Award Terms under The ACE Limited 2004 Long-Term Incentive Plan
|
|
10-K
|
|
10.65
|
|
February 25, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.56*
|
|
Form of Performance Based Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-K
|
|
10.67
|
|
February 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.57*
|
|
Form of Performance Based Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan for Chief Executive Officer, Chief Financial Officer and the General Counsel
|
|
10-K
|
|
10.68
|
|
February 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.58*
|
|
Form of Restricted Stock Unit Award Terms (for outside directors) under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.2
|
|
November 7, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.59*
|
|
Form of Restricted Stock Unit Award Terms (for outside directors) under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-Q
|
|
10.2
|
|
August 7, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.60*
|
|
Form of Incentive Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan for Messrs. Greenberg and Cusumano
|
|
10-Q
|
|
10.1
|
|
August 4, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.61*
|
|
Form of Non-Qualified Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan for Messrs. Greenberg and Cusumano
|
|
10-Q
|
|
10.2
|
|
August 4, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.62*
|
|
Form of Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan for Messrs. Greenberg and Cusumano
|
|
10-Q
|
|
10.3
|
|
August 4, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.63*
|
|
ACE Limited Employee Stock Purchase Plan, as amended
|
|
8-K
|
|
10.1
|
|
May 22, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.64*
|
|
Form of Performance Based Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan for Messrs. Greenberg and Cusumano
|
|
10-K
|
|
10.72
|
|
February 24, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.65*
|
|
Separation and Release Agreement between the Company and Robert Cusumano, dated July 24, 2013
|
|
10-Q
|
|
10.8
|
|
October 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.66*
|
|
Form of Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-K
|
|
10.68
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
10.67*
|
|
Form of Performance Based Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-K
|
|
10.69
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.68*
|
|
Form of Restricted Stock Unit Award Terms under the ACE Limited 2004 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-K
|
|
10.70
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.69*
|
|
Form of Incentive Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-K
|
|
10.71
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.70*
|
|
Form of Non-Qualified Stock Option Terms under the ACE Limited 2004 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-K
|
|
10.72
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.71*
|
|
Form of Executive Management Non-Competition Agreement
|
|
8-K
|
|
10.1
|
|
May 22, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.72
|
|
Commitment Increase Agreement to increase the credit capacity under the Credit Agreement originally entered into on November 6, 2012 to $1,500,000,000 under the Senior Unsecured Letter of Credit Facility, dated as of December 11, 2015, among ACE Limited, and certain subsidiaries, and Wells Fargo Bank, National Association as Administrative Agent, the Swingline Bank and an Issuing Bank
|
|
10-K
|
|
10.72
|
|
February 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.73*
|
|
Form of Performance Based Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan
|
|
10-K
|
|
10.73
|
|
February 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.74*
|
|
Form of Performance Based Restricted Stock Award Terms under the ACE Limited 2004 Long-Term Incentive Plan for Special Award for Messrs. Greenberg and Keogh
|
|
10-K
|
|
10.74
|
|
February 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.75*
|
|
Chubb Limited 2016 Long-Term Incentive Plan
|
|
S-8
|
|
4.4
|
|
May 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.76*
|
|
Form of Incentive Stock Option Terms under the Chubb Limited 2016 Long-Term Incentive Plan
|
|
10-Q
|
|
10.2
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.77*
|
|
Form of Restricted Stock Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan
|
|
10-Q
|
|
10.3
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.78*
|
|
Form of Restricted Stock Unit Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan
|
|
10-Q
|
|
10.4
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.79*
|
|
Form of Non-Qualified Stock Option Terms under the Chubb Limited 2016 Long-Term Incentive Plan
|
|
10-Q
|
|
10.5
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.80*
|
|
Form of Incentive Stock Option Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-Q
|
|
10.6
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.81*
|
|
Form of Restricted Stock Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-Q
|
|
10.7
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.82*
|
|
Form of Restricted Stock Unit Award Terms under the Chubb Limited 206 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-Q
|
|
10.8
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.83*
|
|
Form of Non-Qualified Stock Option Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Swiss Executive Management
|
|
10-Q
|
|
10.9
|
|
August 5, 2016
|
|
|
|
By:
|
/s/ Philip V. Bancroft
|
|
Philip V. Bancroft
Executive Vice President and Chief Financial Officer
|
Signature
|
|
Title
|
Date
|
|
|
|
|
/s/ Evan G. Greenberg
|
|
Chairman, President, Chief Executive Officer, and Director
|
February 27, 2017
|
Evan G. Greenberg
|
|
|
|
|
|
|
|
/s/ Philip V. Bancroft
|
|
Executive Vice President and Chief Financial Officer
|
February 27, 2017
|
Philip V. Bancroft
|
|
(Principal Financial Officer)
|
|
|
|
|
|
/s/ Paul B. Medini
|
|
Chief Accounting Officer
|
February 27, 2017
|
Paul B. Medini
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
/s/ Michael G. Atieh
|
|
Director
|
February 27, 2017
|
Michael G. Atieh
|
|
|
|
|
|
|
|
/s/ Sheila P. Burke
|
|
Director
|
February 27, 2017
|
Sheila P. Burke
|
|
|
|
|
|
|
|
/s/ James I. Cash
|
|
Director
|
February 27, 2017
|
James I. Cash
|
|
|
|
|
|
|
|
/s/ Mary A. Cirillo
|
|
Director
|
February 27, 2017
|
Mary A. Cirillo
|
|
|
|
|
|
|
|
/s/ Michael P. Connors
|
|
Director
|
February 27, 2017
|
Michael P. Connors
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
Date
|
|
|
|
|
/s/ John Edwardson
|
|
Director
|
February 27, 2017
|
John Edwardson
|
|
|
|
|
|
|
|
/s/ Robert M. Hernandez
|
|
Director
|
February 27, 2017
|
Robert M. Hernandez
|
|
|
|
|
|
|
|
/s/ Leo F. Mullin
|
|
Director
|
February 27, 2017
|
Leo F. Mullin
|
|
|
|
|
|
|
|
/s/ Kimberly Ross
|
|
Director
|
February 27, 2017
|
Kimberly Ross
|
|
|
|
|
|
|
|
/s/ Robert Scully
|
|
Director
|
February 27, 2017
|
Robert Scully
|
|
|
|
|
|
|
|
/s/ Eugene B. Shanks, Jr.
|
|
Director
|
February 27, 2017
|
Eugene B. Shanks, Jr.
|
|
|
|
|
|
|
|
/s/ Theodore E. Shasta
|
|
Director
|
February 27, 2017
|
Theodore E. Shasta
|
|
|
|
|
|
|
|
/s/ David Sidwell
|
|
Director
|
February 27, 2017
|
David Sidwell
|
|
|
|
|
|
|
|
/s/ Olivier Steimer
|
|
Director
|
February 27, 2017
|
Olivier Steimer
|
|
|
|
|
|
|
|
/s/ James M. Zimmerman
|
|
Director
|
February 27, 2017
|
James M. Zimmerman
|
|
|
|
|
|
Page
|
Consolidated Financial Statements
|
|
|
|
||
Note 1.
|
||
Note 2.
|
||
Note 3.
|
||
Note 4.
|
||
Note 5.
|
||
Note 6.
|
Goodwill and i
ntangible assets
|
|
Note 7.
|
||
Note 8.
|
||
Note 9.
|
||
Note 10.
|
||
Note 11.
|
||
Note 12.
|
||
Note 13.
|
||
Note 14.
|
||
Note 15.
|
||
Note 16.
|
||
Note 17.
|
||
Note 18.
|
||
Note 19.
|
||
Note 20.
|
||
Financial Statement Schedules
|
|
|
Schedule I
|
||
Schedule II
|
||
Schedule IV
|
||
Schedule VI
|
|
|
/s/ Evan G. Greenberg
|
|
/s/ Philip V. Bancroft
|
Evan G. Greenberg
|
|
Philip V. Bancroft
|
Chairman, President and Chief Executive Officer
|
|
Executive Vice President and Chief Financial Officer
|
/s/ PricewaterhouseCoopers LLP
|
PricewaterhouseCoopers LLP
|
Philadelphia, Pennsylvania
|
February 28, 2017
|
|
|
|
December 31
|
|
|
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 –
$79,536
and
$43,149
)
|
$
|
80,115
|
|
|
$
|
43,587
|
|
|
|
(includes hybrid financial instruments of
$2
and
$31
)
|
||||||||
|
Fixed maturities held to maturity, at amortized cost (fair value –
$10,670
and
$8,552
)
|
10,644
|
|
|
8,430
|
|
|||
|
Equity securities, at fair value (cost –
$706
and
$441
)
|
814
|
|
|
497
|
|
|||
|
Short-term investments, at fair value and amortized cost
|
3,002
|
|
|
10,446
|
|
|||
|
Other investments (cost –
$4,270
and
$2,993
)
|
4,519
|
|
|
3,291
|
|
|||
|
|
Total investments
|
99,094
|
|
|
66,251
|
|
||
Cash
|
985
|
|
|
1,775
|
|
||||
Securities lending collateral
|
1,092
|
|
|
1,046
|
|
||||
Accrued investment income
|
918
|
|
|
513
|
|
||||
Insurance and reinsurance balances receivable
|
8,970
|
|
|
5,323
|
|
||||
Reinsurance recoverable on losses and loss expenses
|
13,577
|
|
|
11,386
|
|
||||
Reinsurance recoverable on policy benefits
|
182
|
|
|
187
|
|
||||
Deferred policy acquisition costs
|
4,314
|
|
|
2,873
|
|
||||
Value of business acquired
|
355
|
|
|
395
|
|
||||
Goodwill
|
15,332
|
|
|
4,796
|
|
||||
Other intangible assets
|
6,763
|
|
|
887
|
|
||||
Prepaid reinsurance premiums
|
2,448
|
|
|
2,082
|
|
||||
Deferred tax assets
|
—
|
|
|
318
|
|
||||
Investments in partially-owned insurance companies
|
666
|
|
|
653
|
|
||||
Other assets
|
5,090
|
|
|
3,821
|
|
||||
Total assets
|
$
|
159,786
|
|
|
$
|
102,306
|
|
||
Liabilities
|
|
|
|
||||||
Unpaid losses and loss expenses
|
$
|
60,540
|
|
|
$
|
37,303
|
|
||
Unearned premiums
|
14,779
|
|
|
8,439
|
|
||||
Future policy benefits
|
5,036
|
|
|
4,807
|
|
||||
Insurance and reinsurance balances payable
|
5,637
|
|
|
4,270
|
|
||||
Securities lending payable
|
1,093
|
|
|
1,047
|
|
||||
Accounts payable, accrued expenses, and other liabilities
|
8,617
|
|
|
6,205
|
|
||||
Deferred tax liabilities
|
988
|
|
|
—
|
|
||||
Repurchase agreements
|
1,403
|
|
|
1,404
|
|
||||
Short-term debt
|
500
|
|
|
—
|
|
||||
Long-term debt
|
12,610
|
|
|
9,389
|
|
||||
Trust preferred securities
|
308
|
|
|
307
|
|
||||
Total liabilities
|
111,511
|
|
|
73,171
|
|
||||
Commitments and contingencies
|
|
|
|
||||||
Shareholders’ equity
|
|
|
|
||||||
Common Shares (CHF
24.15
par value;
479,783,864
and
342,832,412
shares issued;
465,968,716
and
324,563,441
shares outstanding)
|
11,121
|
|
|
7,833
|
|
||||
Common Shares in treasury (
13,815,148
and
18,268,971
shares)
|
(1,480
|
)
|
|
(1,922
|
)
|
||||
Additional paid-in capital
|
15,335
|
|
|
4,481
|
|
||||
Retained earnings
|
23,613
|
|
|
19,478
|
|
||||
Accumulated other comprehensive income (loss) (AOCI)
|
(314
|
)
|
|
(735
|
)
|
||||
Total shareholders’ equity
|
48,275
|
|
|
29,135
|
|
||||
Total liabilities and shareholders’ equity
|
$
|
159,786
|
|
|
$
|
102,306
|
|
For the years ended December 31, 2016, 2015 and 2014
|
|
||||||||||
(in millions of U.S. dollars, except per share data)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Revenues
|
|
|
|
|
|
||||||
Net premiums written
|
$
|
28,145
|
|
|
$
|
17,713
|
|
|
$
|
17,799
|
|
Decrease (increase) in unearned premiums
|
604
|
|
|
(500
|
)
|
|
(373
|
)
|
|||
Net premiums earned
|
28,749
|
|
|
17,213
|
|
|
17,426
|
|
|||
Net investment income
|
2,865
|
|
|
2,194
|
|
|
2,252
|
|
|||
Net realized gains (losses):
|
|
|
|
|
|
||||||
Other-than-temporary impairment (OTTI) losses gross
|
(111
|
)
|
|
(151
|
)
|
|
(75
|
)
|
|||
Portion of OTTI losses recognized in other comprehensive income (OCI)
|
8
|
|
|
39
|
|
|
7
|
|
|||
Net OTTI losses recognized in income
|
(103
|
)
|
|
(112
|
)
|
|
(68
|
)
|
|||
Net realized gains (losses) excluding OTTI losses
|
(42
|
)
|
|
(308
|
)
|
|
(439
|
)
|
|||
Total net realized gains (losses) (includes
$(119)
,
$(151)
, and
$(24)
reclassified from AOCI)
|
(145
|
)
|
|
(420
|
)
|
|
(507
|
)
|
|||
Total revenues
|
31,469
|
|
|
18,987
|
|
|
19,171
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Losses and loss expenses
|
16,052
|
|
|
9,484
|
|
|
9,649
|
|
|||
Policy benefits
|
588
|
|
|
543
|
|
|
517
|
|
|||
Policy acquisition costs
|
5,904
|
|
|
2,941
|
|
|
3,075
|
|
|||
Administrative expenses
|
3,081
|
|
|
2,270
|
|
|
2,245
|
|
|||
Interest expense
|
605
|
|
|
300
|
|
|
280
|
|
|||
Other (income) expense
|
(222
|
)
|
|
(51
|
)
|
|
(190
|
)
|
|||
Amortization of purchased intangibles
|
19
|
|
|
171
|
|
|
108
|
|
|||
Chubb integration expenses
|
492
|
|
|
33
|
|
|
—
|
|
|||
Total expenses
|
26,519
|
|
|
15,691
|
|
|
15,684
|
|
|||
Income before income tax
|
4,950
|
|
|
3,296
|
|
|
3,487
|
|
|||
Income tax expense (includes
$28
,
$(2)
, and
$9
on reclassified unrealized gains and losses)
|
815
|
|
|
462
|
|
|
634
|
|
|||
Net income
|
$
|
4,135
|
|
|
$
|
2,834
|
|
|
$
|
2,853
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
||||||
Unrealized appreciation (depreciation)
|
$
|
(35
|
)
|
|
$
|
(1,280
|
)
|
|
$
|
820
|
|
Reclassification adjustment for net realized (gains) losses included in net income
|
119
|
|
|
151
|
|
|
24
|
|
|||
|
84
|
|
|
(1,129
|
)
|
|
844
|
|
|||
Change in:
|
|
|
|
|
|
||||||
Cumulative foreign currency translation adjustment
|
(154
|
)
|
|
(958
|
)
|
|
(632
|
)
|
|||
Postretirement benefit liability adjustment
|
545
|
|
|
15
|
|
|
2
|
|
|||
Other comprehensive income (loss), before income tax
|
475
|
|
|
(2,072
|
)
|
|
214
|
|
|||
Income tax (expense) benefit related to OCI items
|
(54
|
)
|
|
146
|
|
|
(175
|
)
|
|||
Other comprehensive income (loss)
|
421
|
|
|
(1,926
|
)
|
|
39
|
|
|||
Comprehensive income
|
$
|
4,556
|
|
|
$
|
908
|
|
|
$
|
2,892
|
|
Earnings per share
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
8.94
|
|
|
$
|
8.71
|
|
|
$
|
8.50
|
|
Diluted earnings per share
|
$
|
8.87
|
|
|
$
|
8.62
|
|
|
$
|
8.42
|
|
For the years ended December 31, 2016, 2015 and 2014
|
|
||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Common Shares
|
|
|
|
|
|
||||||
Balance – beginning of year
|
$
|
7,833
|
|
|
$
|
8,055
|
|
|
$
|
8,899
|
|
Shares issued for Chubb Corp acquisition
|
3,288
|
|
|
—
|
|
|
—
|
|
|||
Dividends declared on Common Shares – par value reduction
|
—
|
|
|
(222
|
)
|
|
(844
|
)
|
|||
Balance – end of year
|
11,121
|
|
|
7,833
|
|
|
8,055
|
|
|||
Common Shares in treasury
|
|
|
|
|
|
||||||
Balance – beginning of year
|
(1,922
|
)
|
|
(1,448
|
)
|
|
(255
|
)
|
|||
Common Shares repurchased
|
—
|
|
|
(734
|
)
|
|
(1,449
|
)
|
|||
Net shares redeemed under employee share-based compensation plans
|
442
|
|
|
260
|
|
|
256
|
|
|||
Balance – end of year
|
(1,480
|
)
|
|
(1,922
|
)
|
|
(1,448
|
)
|
|||
Additional paid-in capital
|
|
|
|
|
|
||||||
Balance – beginning of year
|
4,481
|
|
|
5,145
|
|
|
5,238
|
|
|||
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
|
(382
|
)
|
|
(160
|
)
|
|
(167
|
)
|
|||
Exercise of stock options
|
(64
|
)
|
|
(61
|
)
|
|
(58
|
)
|
|||
Share-based compensation expense and other
|
313
|
|
|
184
|
|
|
185
|
|
|||
Funding of dividends declared to Retained earnings
|
(1,284
|
)
|
|
(653
|
)
|
|
(81
|
)
|
|||
Tax benefit on share-based compensation expense
|
32
|
|
|
26
|
|
|
28
|
|
|||
Balance – end of year
|
15,335
|
|
|
4,481
|
|
|
5,145
|
|
|||
Retained earnings
|
|
|
|
|
|
||||||
Balance – beginning of year
|
19,478
|
|
|
16,644
|
|
|
13,791
|
|
|||
Net income
|
4,135
|
|
|
2,834
|
|
|
2,853
|
|
|||
Funding of dividends declared from Additional paid-in capital
|
1,284
|
|
|
653
|
|
|
81
|
|
|||
Dividends declared on Common Shares
|
(1,284
|
)
|
|
(653
|
)
|
|
(81
|
)
|
|||
Balance – end of year
|
23,613
|
|
|
19,478
|
|
|
16,644
|
|
|||
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
||||||
Net unrealized appreciation on investments
|
|
|
|
|
|
||||||
Balance – beginning of year
|
874
|
|
|
1,851
|
|
|
1,174
|
|
|||
Change in year, before reclassification from AOCI, net of income tax benefit (expense) of
$72
,
$154
, and
$(176)
|
37
|
|
|
(1,126
|
)
|
|
644
|
|
|||
Amounts reclassified from AOCI, net of income tax benefit (expense) of
$28
,
$(2)
, and
$9
|
147
|
|
|
149
|
|
|
33
|
|
|||
Change in year, net of income tax benefit (expense) of
$100
,
$152
, and
$(167)
|
184
|
|
|
(977
|
)
|
|
677
|
|
|||
Balance – end of year
|
1,058
|
|
|
874
|
|
|
1,851
|
|
|||
Cumulative foreign currency translation adjustment
|
|
|
|
|
|
||||||
Balance – beginning of year
|
(1,539
|
)
|
|
(581
|
)
|
|
63
|
|
|||
Change in year, net of income tax benefit (expense) of
$30
, nil, and
$(12)
|
(124
|
)
|
|
(958
|
)
|
|
(644
|
)
|
|||
Balance – end of year
|
(1,663
|
)
|
|
(1,539
|
)
|
|
(581
|
)
|
|||
Postretirement benefit liability adjustment
|
|
|
|
|
|
||||||
Balance – beginning of year
|
(70
|
)
|
|
(79
|
)
|
|
(85
|
)
|
|||
Change in year, net of income tax benefit (expense) of
$(184)
,
$(6)
, and
$4
|
361
|
|
|
9
|
|
|
6
|
|
|||
Balance – end of year
|
291
|
|
|
(70
|
)
|
|
(79
|
)
|
|||
Accumulated other comprehensive income (loss)
|
(314
|
)
|
|
(735
|
)
|
|
1,191
|
|
|||
Total shareholders’ equity
|
$
|
48,275
|
|
|
$
|
29,135
|
|
|
$
|
29,587
|
|
For the years ended December 31, 2016, 2015, and 2014
|
|
||||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
4,135
|
|
|
$
|
2,834
|
|
|
$
|
2,853
|
|
Adjustments to reconcile net income to net cash flows from operating activities
|
|
|
|
|
|
||||||
Net realized (gains) losses
|
145
|
|
|
420
|
|
|
507
|
|
|||
Amortization of premiums/discounts on fixed maturities
|
737
|
|
|
158
|
|
|
188
|
|
|||
Amortization of UPR related to the Chubb Corp acquisition
|
1,559
|
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes
|
96
|
|
|
113
|
|
|
145
|
|
|||
Unpaid losses and loss expenses
|
332
|
|
|
(375
|
)
|
|
317
|
|
|||
Unearned premiums
|
(680
|
)
|
|
335
|
|
|
441
|
|
|||
Future policy benefits
|
188
|
|
|
216
|
|
|
236
|
|
|||
Insurance and reinsurance balances payable
|
848
|
|
|
268
|
|
|
376
|
|
|||
Accounts payable, accrued expenses, and other liabilities
|
(97
|
)
|
|
179
|
|
|
13
|
|
|||
Income taxes payable
|
147
|
|
|
(148
|
)
|
|
103
|
|
|||
Insurance and reinsurance balances receivable
|
(616
|
)
|
|
(53
|
)
|
|
(469
|
)
|
|||
Reinsurance recoverable on losses and loss expenses
|
(365
|
)
|
|
218
|
|
|
119
|
|
|||
Reinsurance recoverable on policy benefits
|
7
|
|
|
33
|
|
|
4
|
|
|||
Deferred policy acquisition costs
|
(1,449
|
)
|
|
(435
|
)
|
|
(397
|
)
|
|||
Prepaid reinsurance premiums
|
18
|
|
|
(212
|
)
|
|
(89
|
)
|
|||
Other
|
287
|
|
|
313
|
|
|
149
|
|
|||
Net cash flows from operating activities
|
5,292
|
|
|
3,864
|
|
|
4,496
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Purchases of fixed maturities available for sale
|
(30,759
|
)
|
|
(16,040
|
)
|
|
(15,553
|
)
|
|||
Purchases of to be announced mortgage-backed securities
|
(56
|
)
|
|
(31
|
)
|
|
—
|
|
|||
Purchases of fixed maturities held to maturity
|
(282
|
)
|
|
(62
|
)
|
|
(267
|
)
|
|||
Purchases of equity securities
|
(146
|
)
|
|
(158
|
)
|
|
(251
|
)
|
|||
Sales of fixed maturities available for sale
|
16,621
|
|
|
10,783
|
|
|
7,482
|
|
|||
Sales of to be announced mortgage-backed securities
|
56
|
|
|
31
|
|
|
—
|
|
|||
Sales of equity securities
|
1,000
|
|
|
183
|
|
|
670
|
|
|||
Maturities and redemptions of fixed maturities available for sale
|
9,349
|
|
|
6,567
|
|
|
6,413
|
|
|||
Maturities and redemptions of fixed maturities held to maturity
|
958
|
|
|
669
|
|
|
875
|
|
|||
Net change in short-term investments
|
12,350
|
|
|
(8,216
|
)
|
|
(603
|
)
|
|||
Net derivative instruments settlements
|
(168
|
)
|
|
(21
|
)
|
|
(230
|
)
|
|||
Acquisition of subsidiaries (net of cash acquired of
$71
,
$629
, and
$20
)
|
(14,248
|
)
|
|
264
|
|
|
(766
|
)
|
|||
Other
|
10
|
|
|
(263
|
)
|
|
(274
|
)
|
|||
Net cash flows used for investing activities
|
(5,315
|
)
|
|
(6,294
|
)
|
|
(2,504
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Dividends paid on Common Shares
|
(1,173
|
)
|
|
(862
|
)
|
|
(862
|
)
|
|||
Common Shares repurchased
|
—
|
|
|
(758
|
)
|
|
(1,429
|
)
|
|||
Proceeds from issuance of long-term debt
|
—
|
|
|
6,090
|
|
|
699
|
|
|||
Proceeds from issuance of repurchase agreements
|
2,310
|
|
|
2,029
|
|
|
1,978
|
|
|||
Repayment of long-term debt
|
—
|
|
|
(1,150
|
)
|
|
(501
|
)
|
|||
Repayment of repurchase agreements
|
(2,311
|
)
|
|
(2,027
|
)
|
|
(1,977
|
)
|
|||
Proceeds from share-based compensation plans, including windfall tax benefits
|
167
|
|
|
131
|
|
|
127
|
|
|||
Policyholder contract deposits
|
522
|
|
|
503
|
|
|
366
|
|
|||
Policyholder contract withdrawals
|
(253
|
)
|
|
(221
|
)
|
|
(172
|
)
|
|||
Other
|
(4
|
)
|
|
(40
|
)
|
|
(6
|
)
|
|||
Net cash flows (used for) from financing activities
|
(742
|
)
|
|
3,695
|
|
|
(1,777
|
)
|
|||
Effect of foreign currency rate changes on cash and cash equivalents
|
(25
|
)
|
|
(145
|
)
|
|
(139
|
)
|
|||
Net (decrease) increase in cash
|
(790
|
)
|
|
1,120
|
|
|
76
|
|
|||
Cash – beginning of year
|
1,775
|
|
|
655
|
|
|
579
|
|
|||
Cash – end of year
|
$
|
985
|
|
|
$
|
1,775
|
|
|
$
|
655
|
|
Supplemental cash flow information
|
|
|
|
|
|
||||||
Taxes paid
|
$
|
662
|
|
|
$
|
469
|
|
|
$
|
349
|
|
Interest paid
|
$
|
642
|
|
|
$
|
259
|
|
|
$
|
264
|
|
•
|
unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves;
|
•
|
future policy benefits reserves;
|
•
|
the valuation of value of business acquired (VOBA) and amortization of deferred policy acquisition costs and VOBA;
|
•
|
reinsurance recoverable, including a provision for uncollectible reinsurance;
|
•
|
the assessment of risk transfer for certain structured insurance and reinsurance contracts;
|
•
|
the valuation of the investment portfolio and assessment of OTTI;
|
•
|
the valuation of deferred tax assets;
|
•
|
the valuation of derivative instruments related to guaranteed living benefits (GLB);
|
•
|
the valuation and amortization of purchased intangibles; and
|
•
|
the assessment of goodwill for impairment.
|
•
|
For reinsurers that maintain a financial strength rating from a major rating agency, and for which recoverable balances are considered representative of the larger population (i.e., default probabilities are consistent with similarly rated reinsurers and payment durations conform to averages), the financial rating is based on a published source and the default factor is based on published default statistics of a major rating agency applicable to the reinsurer's particular rating class. When a recoverable is expected to be paid in a brief period of time by a highly rated reinsurer, such as certain property catastrophe claims, a default factor may not be applied;
|
•
|
For balances recoverable from reinsurers that are both unrated by a major rating agency and for which management is unable to determine a credible rating equivalent based on a parent, affiliate, or peer company, we determine a rating equivalent based on an analysis of the reinsurer that considers an assessment of the creditworthiness of the particular entity, industry benchmarks, or other factors as considered appropriate. We then apply the applicable default factor for that rating class. For balances recoverable from unrated reinsurers for which the ceded reserve is below a certain threshold, we generally apply a default factor of
34
percent, consistent with published statistics of a major rating agency;
|
•
|
For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting provision for uncollectible reinsurance based on reinsurer-specific facts and circumstances. Upon initial notification of an insolvency, we generally recognize an expense for a substantial portion of all balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the provision for uncollectible reinsurance. When regulatory action is taken on a reinsurer, we generally recognize a default factor by estimating an expected recovery on all balances outstanding, net of collateral. When sufficient credible information becomes available, we adjust the provision for uncollectible reinsurance by establishing a default factor pursuant to information received; and
|
•
|
For other recoverables, management determines the provision for uncollectible reinsurance based on the specific facts and circumstances.
|
•
|
Life insurance policies are carried at policy cash surrender value and income is recorded in Other income (expense).
|
•
|
Policy loans are carried at outstanding balance and interest income is recorded to Net investment income.
|
•
|
Trading securities are recorded on a trade date basis and carried at fair value. Unrealized gains and losses on trading securities are reflected in Other (income) expense.
|
•
|
Other investments over which Chubb can exercise significant influence are accounted for using the equity method and income is recorded in Other (income) expense.
|
•
|
All other investments over which Chubb cannot exercise significant influence are carried at fair value with changes in fair value recognized through OCI. For these investments, investment income is recognized in Net investment income and realized gains are recognized as related distributions are received.
|
•
|
Partially-owned investment companies comprise entities in which we hold an ownership interest in excess of three percent. These investments as well as Chubb's investments in investment funds where our ownership interest is in excess of three percent are accounted for under the equity method because Chubb exerts significant influence. These investments apply investment company accounting to determine operating results, and Chubb retains the investment company accounting in applying the equity method. This means that investment income, realized gains or losses, and unrealized gains or losses are included in the portion of equity earnings reflected in Other (income) expense. As a result of the timing of the receipt of valuation data from the investment managers, these investments are generally reported on a three month lag.
|
|
|
||
(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
|
|
Assets acquired and (liabilities) assumed
|
|
||
Cash
|
$
|
71
|
|
Investments
|
42,967
|
|
|
Accrued investment income
|
359
|
|
|
Insurance and reinsurance balances receivable
|
3,095
|
|
|
Reinsurance recoverable on losses and loss expenses
|
1,676
|
|
|
Indefinite lived intangible assets
|
2,860
|
|
|
Finite lived intangible assets
|
4,795
|
|
|
Prepaid reinsurance premiums
|
280
|
|
|
Other assets
|
853
|
|
|
Unpaid losses and loss expenses
|
(22,923
|
)
|
|
Unearned premiums
|
(7,011
|
)
|
|
Insurance and reinsurance balances payable
|
(603
|
)
|
|
Accounts payable, accrued expenses, and other liabilities
|
(2,030
|
)
|
|
Deferred tax liabilities
|
(1,292
|
)
|
|
Long-term debt
|
(3,765
|
)
|
|
Total identifiable net assets acquired
|
19,332
|
|
|
Goodwill
|
10,514
|
|
|
Purchase price
|
$
|
29,846
|
|
(1)
|
The 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 12 for further information on these replacement equity awards.
|
(in millions of U.S. dollars)
|
January 14, 2016 to December 31, 2016
|
|
|
Total revenues
|
$
|
12,376
|
|
Net income
|
$
|
1,756
|
|
|
Year Ended December 31
|
|
|||||
(in millions of U.S. dollars, except per share data)
|
2016
|
|
|
2015
|
|
||
Total revenues
|
$
|
31,937
|
|
|
$
|
32,622
|
|
Net income
|
$
|
4,183
|
|
|
$
|
4,478
|
|
Earnings per share
|
|
|
|
||||
Basic earnings per share
|
$
|
8.95
|
|
|
$
|
9.61
|
|
Diluted earnings per share
|
$
|
8.88
|
|
|
$
|
9.52
|
|
December 31, 2016
|
Amortized
Cost
|
|
|
Gross
Unrealized
Appreciation
|
|
|
Gross
Unrealized
Depreciation
|
|
|
Fair
Value
|
|
|
OTTI Recognized
in AOCI
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Available for sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
2,883
|
|
|
$
|
32
|
|
|
$
|
(45
|
)
|
|
$
|
2,870
|
|
|
$
|
—
|
|
Foreign
|
20,929
|
|
|
636
|
|
|
(125
|
)
|
|
21,440
|
|
|
(5
|
)
|
|||||
Corporate securities
|
23,736
|
|
|
580
|
|
|
(167
|
)
|
|
24,149
|
|
|
(8
|
)
|
|||||
Mortgage-backed securities
|
14,066
|
|
|
135
|
|
|
(194
|
)
|
|
14,007
|
|
|
(1
|
)
|
|||||
States, municipalities, and political subdivisions
|
17,922
|
|
|
72
|
|
|
(345
|
)
|
|
17,649
|
|
|
—
|
|
|||||
|
$
|
79,536
|
|
|
$
|
1,455
|
|
|
$
|
(876
|
)
|
|
$
|
80,115
|
|
|
$
|
(14
|
)
|
Held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
655
|
|
|
$
|
9
|
|
|
$
|
(3
|
)
|
|
$
|
661
|
|
|
$
|
—
|
|
Foreign
|
640
|
|
|
28
|
|
|
(1
|
)
|
|
667
|
|
|
—
|
|
|||||
Corporate securities
|
2,771
|
|
|
50
|
|
|
(26
|
)
|
|
2,795
|
|
|
—
|
|
|||||
Mortgage-backed securities
|
1,393
|
|
|
35
|
|
|
—
|
|
|
1,428
|
|
|
—
|
|
|||||
States, municipalities, and political subdivisions
|
5,185
|
|
|
26
|
|
|
(92
|
)
|
|
5,119
|
|
|
—
|
|
|||||
|
$
|
10,644
|
|
|
$
|
148
|
|
|
$
|
(122
|
)
|
|
$
|
10,670
|
|
|
$
|
—
|
|
December 31, 2015
|
Amortized
Cost |
|
|
Gross
Unrealized Appreciation |
|
|
Gross
Unrealized Depreciation |
|
|
Fair
Value |
|
|
OTTI Recognized
in AOCI |
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Available for sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
2,481
|
|
|
$
|
52
|
|
|
$
|
(5
|
)
|
|
$
|
2,528
|
|
|
$
|
—
|
|
Foreign
|
13,190
|
|
|
468
|
|
|
(213
|
)
|
|
13,445
|
|
|
(13
|
)
|
|||||
Corporate securities
|
15,028
|
|
|
355
|
|
|
(454
|
)
|
|
14,929
|
|
|
(28
|
)
|
|||||
Mortgage-backed securities
|
9,827
|
|
|
183
|
|
|
(52
|
)
|
|
9,958
|
|
|
(1
|
)
|
|||||
States, municipalities, and political subdivisions
|
2,623
|
|
|
110
|
|
|
(6
|
)
|
|
2,727
|
|
|
—
|
|
|||||
|
$
|
43,149
|
|
|
$
|
1,168
|
|
|
$
|
(730
|
)
|
|
$
|
43,587
|
|
|
$
|
(42
|
)
|
Held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
733
|
|
|
$
|
13
|
|
|
$
|
(1
|
)
|
|
$
|
745
|
|
|
$
|
—
|
|
Foreign
|
763
|
|
|
30
|
|
|
(8
|
)
|
|
785
|
|
|
—
|
|
|||||
Corporate securities
|
3,054
|
|
|
57
|
|
|
(55
|
)
|
|
3,056
|
|
|
—
|
|
|||||
Mortgage-backed securities
|
1,707
|
|
|
38
|
|
|
(2
|
)
|
|
1,743
|
|
|
—
|
|
|||||
States, municipalities, and political subdivisions
|
2,173
|
|
|
52
|
|
|
(2
|
)
|
|
2,223
|
|
|
—
|
|
|||||
|
$
|
8,430
|
|
|
$
|
190
|
|
|
$
|
(68
|
)
|
|
$
|
8,552
|
|
|
$
|
—
|
|
|
December 31
|
|
|
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
|
$
|
3,892
|
|
|
$
|
3,913
|
|
|
$
|
1,856
|
|
|
$
|
1,865
|
|
Due after 1 year through 5 years
|
24,027
|
|
|
24,429
|
|
|
14,936
|
|
|
15,104
|
|
||||
Due after 5 years through 10 years
|
27,262
|
|
|
27,379
|
|
|
12,258
|
|
|
12,173
|
|
||||
Due after 10 years
|
10,289
|
|
|
10,387
|
|
|
4,272
|
|
|
4,487
|
|
||||
|
65,470
|
|
|
66,108
|
|
|
33,322
|
|
|
33,629
|
|
||||
Mortgage-backed securities
|
14,066
|
|
|
14,007
|
|
|
9,827
|
|
|
9,958
|
|
||||
|
$
|
79,536
|
|
|
$
|
80,115
|
|
|
$
|
43,149
|
|
|
$
|
43,587
|
|
Held to maturity
|
|
|
|
|
|
|
|
||||||||
Due in 1 year or less
|
$
|
430
|
|
|
$
|
435
|
|
|
$
|
492
|
|
|
$
|
495
|
|
Due after 1 year through 5 years
|
2,646
|
|
|
2,691
|
|
|
2,443
|
|
|
2,517
|
|
||||
Due after 5 years through 10 years
|
2,969
|
|
|
2,944
|
|
|
2,292
|
|
|
2,313
|
|
||||
Due after 10 years
|
3,206
|
|
|
3,172
|
|
|
1,496
|
|
|
1,484
|
|
||||
|
9,251
|
|
|
9,242
|
|
|
6,723
|
|
|
6,809
|
|
||||
Mortgage-backed securities
|
1,393
|
|
|
1,428
|
|
|
1,707
|
|
|
1,743
|
|
||||
|
$
|
10,644
|
|
|
$
|
10,670
|
|
|
$
|
8,430
|
|
|
$
|
8,552
|
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Cost
|
$
|
706
|
|
|
$
|
441
|
|
Gross unrealized appreciation
|
129
|
|
|
74
|
|
||
Gross unrealized depreciation
|
(21
|
)
|
|
(18
|
)
|
||
Fair value
|
$
|
814
|
|
|
$
|
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.
|
Moody's Rating Category
|
1-in-100 Year Default Rate
|
|
|
Historical Mean Default Rate
|
|
Investment Grade:
|
|
|
|
||
Aaa-Baa
|
0.0–1.3%
|
|
|
0.0–0.3%
|
|
Below Investment Grade:
|
|
|
|
||
Ba
|
4.8
|
%
|
|
1.0
|
%
|
B
|
12.1
|
%
|
|
3.2
|
%
|
Caa-C
|
36.7
|
%
|
|
10.5
|
%
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Fixed maturities:
|
|
|
|
|
|
||||||
OTTI on fixed maturities, gross
|
$
|
(89
|
)
|
|
$
|
(142
|
)
|
|
$
|
(64
|
)
|
OTTI on fixed maturities recognized in OCI (pre-tax)
|
8
|
|
|
39
|
|
|
7
|
|
|||
OTTI on fixed maturities, net
|
(81
|
)
|
|
(103
|
)
|
|
(57
|
)
|
|||
Gross realized gains excluding OTTI
|
183
|
|
|
158
|
|
|
213
|
|
|||
Gross realized losses excluding OTTI
|
(265
|
)
|
|
(235
|
)
|
|
(133
|
)
|
|||
Total fixed maturities
|
(163
|
)
|
|
(180
|
)
|
|
23
|
|
|||
Equity securities:
|
|
|
|
|
|
||||||
OTTI on equity securities
|
(8
|
)
|
|
(7
|
)
|
|
(8
|
)
|
|||
Gross realized gains excluding OTTI
|
65
|
|
|
47
|
|
|
22
|
|
|||
Gross realized losses excluding OTTI
|
(13
|
)
|
|
(11
|
)
|
|
(61
|
)
|
|||
Total equity securities
|
44
|
|
|
29
|
|
|
(47
|
)
|
|||
OTTI on other investments
|
(14
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||
Foreign exchange gains (losses)
|
118
|
|
|
(80
|
)
|
|
(40
|
)
|
|||
Investment and embedded derivative instruments
|
(33
|
)
|
|
32
|
|
|
(107
|
)
|
|||
Fair value adjustments on insurance derivative
|
53
|
|
|
(203
|
)
|
|
(217
|
)
|
|||
S&P put options and futures
|
(136
|
)
|
|
(10
|
)
|
|
(168
|
)
|
|||
Other derivative instruments
|
(10
|
)
|
|
(12
|
)
|
|
50
|
|
|||
Other
|
(4
|
)
|
|
6
|
|
|
2
|
|
|||
Net realized gains (losses)
|
(145
|
)
|
|
(420
|
)
|
|
(507
|
)
|
|||
Change in net unrealized appreciation (depreciation) on investments:
|
|
|
|
|
|
||||||
Fixed maturities available for sale
|
142
|
|
|
(1,119
|
)
|
|
734
|
|
|||
Fixed maturities held to maturity
|
(59
|
)
|
|
43
|
|
|
(2
|
)
|
|||
Equity securities
|
52
|
|
|
(17
|
)
|
|
77
|
|
|||
Other
|
(51
|
)
|
|
(36
|
)
|
|
35
|
|
|||
Income tax (expense) benefit
|
100
|
|
|
152
|
|
|
(167
|
)
|
|||
Change in net unrealized appreciation (depreciation) on investments
|
184
|
|
|
(977
|
)
|
|
677
|
|
|||
Total net realized gains (losses) and change in net unrealized appreciation (depreciation) on investments
|
$
|
39
|
|
|
$
|
(1,397
|
)
|
|
$
|
170
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Balance of credit losses related to securities still held – beginning of year
|
$
|
53
|
|
|
$
|
28
|
|
|
$
|
37
|
|
Additions where no OTTI was previously recorded
|
17
|
|
|
41
|
|
|
22
|
|
|||
Additions where an OTTI was previously recorded
|
14
|
|
|
9
|
|
|
5
|
|
|||
Reductions for securities sold during the period
|
(49
|
)
|
|
(25
|
)
|
|
(36
|
)
|
|||
Balance of credit losses related to securities still held – end of year
|
$
|
35
|
|
|
$
|
53
|
|
|
$
|
28
|
|
|
|
|
December 31
|
|
|
|
|
December 31
|
|
||||||
|
|
|
2016
|
|
|
|
|
2015
|
|
||||||
(in millions of U.S. dollars)
|
Fair Value
|
|
|
Cost
|
|
|
Fair Value
|
|
|
Cost
|
|
||||
Investment funds
|
$
|
251
|
|
|
$
|
126
|
|
|
$
|
269
|
|
|
$
|
138
|
|
Limited partnerships
|
730
|
|
|
607
|
|
|
709
|
|
|
542
|
|
||||
Partially-owned investment companies
|
2,645
|
|
|
2,645
|
|
|
1,498
|
|
|
1,498
|
|
||||
Life insurance policies
|
248
|
|
|
248
|
|
|
222
|
|
|
222
|
|
||||
Policy loans
|
209
|
|
|
209
|
|
|
184
|
|
|
184
|
|
||||
Trading securities
|
296
|
|
|
295
|
|
|
284
|
|
|
284
|
|
||||
Other
|
140
|
|
|
140
|
|
|
125
|
|
|
125
|
|
||||
Total
|
$
|
4,519
|
|
|
$
|
4,270
|
|
|
$
|
3,291
|
|
|
$
|
2,993
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
||||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
Carrying Value
|
|
|
Issued
Share
Capital
|
|
|
Ownership Percentage
|
|
|
Carrying Value
|
|
|
Issued Share Capital
|
|
|
Ownership Percentage
|
|
|
Domicile
|
||||
Huatai Group
|
$
|
447
|
|
|
$
|
624
|
|
|
20
|
%
|
|
$
|
430
|
|
|
$
|
624
|
|
|
20
|
%
|
|
China
|
Huatai Life Insurance Company
|
99
|
|
|
428
|
|
|
20
|
%
|
|
107
|
|
|
428
|
|
|
20
|
%
|
|
China
|
||||
Freisenbruch-Meyer
|
8
|
|
|
5
|
|
|
40
|
%
|
|
9
|
|
|
5
|
|
|
40
|
%
|
|
Bermuda
|
||||
Chubb Arabia Cooperative Insurance Company
|
13
|
|
|
27
|
|
|
30
|
%
|
|
11
|
|
|
27
|
|
|
30
|
%
|
|
Saudi Arabia
|
||||
Russian Reinsurance Company
|
2
|
|
|
4
|
|
|
23
|
%
|
|
2
|
|
|
4
|
|
|
23
|
%
|
|
Russia
|
||||
ABR Reinsurance Ltd.
|
97
|
|
|
800
|
|
|
11
|
%
|
|
94
|
|
|
800
|
|
|
11
|
%
|
|
Bermuda
|
||||
Total
|
$
|
666
|
|
|
$
|
1,888
|
|
|
|
|
$
|
653
|
|
|
$
|
1,888
|
|
|
|
|
|
|
0 – 12 Months
|
|
|
Over 12 Months
|
|
|
Total
|
|
|||||||||||||||
December 31, 2016
|
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
|
$
|
2,216
|
|
|
$
|
(48
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,216
|
|
|
$
|
(48
|
)
|
Foreign
|
5,918
|
|
|
(99
|
)
|
|
386
|
|
|
(27
|
)
|
|
6,304
|
|
|
(126
|
)
|
||||||
Corporate securities
|
7,021
|
|
|
(149
|
)
|
|
641
|
|
|
(44
|
)
|
|
7,662
|
|
|
(193
|
)
|
||||||
Mortgage-backed securities
|
8,638
|
|
|
(189
|
)
|
|
234
|
|
|
(5
|
)
|
|
8,872
|
|
|
(194
|
)
|
||||||
States, municipalities, and political subdivisions
|
19,448
|
|
|
(435
|
)
|
|
49
|
|
|
(2
|
)
|
|
19,497
|
|
|
(437
|
)
|
||||||
Total fixed maturities
|
43,241
|
|
|
(920
|
)
|
|
1,310
|
|
|
(78
|
)
|
|
44,551
|
|
|
(998
|
)
|
||||||
Equity securities
|
199
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
199
|
|
|
(21
|
)
|
||||||
Other investments
|
201
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
201
|
|
|
(18
|
)
|
||||||
Total
|
$
|
43,641
|
|
|
$
|
(959
|
)
|
|
$
|
1,310
|
|
|
$
|
(78
|
)
|
|
$
|
44,951
|
|
|
$
|
(1,037
|
)
|
|
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
|
)
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Fixed maturities
|
$
|
2,779
|
|
|
$
|
2,157
|
|
|
$
|
2,199
|
|
Short-term investments
|
93
|
|
|
49
|
|
|
45
|
|
|||
Equity securities
|
36
|
|
|
16
|
|
|
33
|
|
|||
Other
|
98
|
|
|
86
|
|
|
94
|
|
|||
Gross investment income
|
3,006
|
|
|
2,308
|
|
|
2,371
|
|
|||
Investment expenses
|
(141
|
)
|
|
(114
|
)
|
|
(119
|
)
|
|||
Net investment income
|
$
|
2,865
|
|
|
$
|
2,194
|
|
|
$
|
2,252
|
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Trust funds
|
$
|
13,880
|
|
|
$
|
11,862
|
|
Deposits with U.S. regulatory authorities
|
2,203
|
|
|
1,242
|
|
||
Deposits with non-U.S. regulatory authorities
|
2,191
|
|
|
2,075
|
|
||
Assets pledged under repurchase agreements
|
1,461
|
|
|
1,459
|
|
||
Other pledged assets
|
435
|
|
|
392
|
|
||
|
$
|
20,170
|
|
|
$
|
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
|
% of total GMIB guaranteed value
|
Year of GMIB eligibility
|
|
Maximum annuitization rate(s) (per year)
|
|
Maximum annuitization rates based on
|
67%
|
First year
|
|
2% - 41%
|
|
Actual Experience
|
Subsequent years
|
|
1% - 78%
|
|
||
4%
|
First year
|
|
N/A
|
|
N/A
(1)
|
Subsequent years
|
|
12%, 78%
|
|
Weighted average
(2)
|
|
29%
|
First year
|
|
19%, 44%
|
|
Weighted average
(2)
|
Subsequent years
|
|
12%, 31%
|
|
•
|
Reinsured policies allow for policyholders to make periodic withdrawals from their account values without lapsing the policy. The partial withdrawal results in a reduction to the associated guaranteed value that is either equal or proportional to the amount of the reduction in account value. Based on continued emerging experience including age-based behavior, we refined our assumptions around the types of partial withdrawals according to their impact on guaranteed value. This resulted in an increase to the fair value of GLB liabilities generating a realized loss of approximately
$167 million
.
|
•
|
As lapse experience continued to emerge, we were able to expand our analysis and further refine our assumptions which resulted in a net increase to the fair value of GLB liabilities generating a realized loss of approximately
$4 million
.
|
•
|
Because of a greater degree of reported experience related to behavior in years subsequent to the first year of annuitization eligibility, we also made several adjustments to our annuitization assumptions, which generally lowered the annuitization rate. In addition, we refined our assumptions to better account for age-based annuitization behavior. The change in annuitization assumptions decreased the fair value of GLB liabilities and generated a realized gain of approximately
$221 million
.
|
December 31, 2016
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
(in millions of U.S. dollars)
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities available for sale
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency
|
$
|
2,175
|
|
|
$
|
695
|
|
|
$
|
—
|
|
|
$
|
2,870
|
|
Foreign
|
—
|
|
|
21,366
|
|
|
74
|
|
|
21,440
|
|
||||
Corporate securities
|
—
|
|
|
23,468
|
|
|
681
|
|
|
24,149
|
|
||||
Mortgage-backed securities
|
—
|
|
|
13,962
|
|
|
45
|
|
|
14,007
|
|
||||
States, municipalities, and political subdivisions
|
—
|
|
|
17,649
|
|
|
—
|
|
|
17,649
|
|
||||
|
2,175
|
|
|
77,140
|
|
|
800
|
|
|
80,115
|
|
||||
Equity securities
|
773
|
|
|
—
|
|
|
41
|
|
|
814
|
|
||||
Short-term investments
|
1,757
|
|
|
1,220
|
|
|
25
|
|
|
3,002
|
|
||||
Other investments
(1)
|
384
|
|
|
259
|
|
|
225
|
|
|
868
|
|
||||
Securities lending collateral
|
—
|
|
|
1,092
|
|
|
—
|
|
|
1,092
|
|
||||
Investment derivative instruments
|
31
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||||
Other derivative instruments
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Separate account assets
|
1,784
|
|
|
95
|
|
|
—
|
|
|
1,879
|
|
||||
Total assets measured at fair value
(1)
|
$
|
6,907
|
|
|
$
|
79,806
|
|
|
$
|
1,091
|
|
|
$
|
87,804
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Investment derivative instruments
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
54
|
|
Other derivative instruments
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
||||
GLB
(2)
|
—
|
|
|
—
|
|
|
559
|
|
|
559
|
|
||||
Total liabilities measured at fair value
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
572
|
|
|
$
|
626
|
|
(1)
|
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of
$3,626 million
and other investments of
$25 million
at
December 31, 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
c
) 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
c
) for additional information.
|
|
|
|
December 31
|
|
|
December 31
|
|
||||||||||
|
|
|
2016
|
|
|
2015
|
|
||||||||||
(in millions of U.S. dollars)
|
Expected
Liquidation
Period of Underlying Assets
|
|
Fair Value
|
|
|
Maximum
Future Funding
Commitments
|
|
|
Fair Value
|
|
|
Maximum
Future Funding
Commitments
|
|
||||
Financial
|
5 to 9 Years
|
|
$
|
548
|
|
|
$
|
428
|
|
|
$
|
300
|
|
|
$
|
105
|
|
Real Assets
|
3 to 7 Years
|
|
536
|
|
|
230
|
|
|
474
|
|
|
140
|
|
||||
Distressed
|
5 to 9 Years
|
|
485
|
|
|
179
|
|
|
261
|
|
|
218
|
|
||||
Private Credit
|
3 to 7 Years
|
|
236
|
|
|
259
|
|
|
265
|
|
|
209
|
|
||||
Traditional
|
3 to 9 Years
|
|
1,550
|
|
|
930
|
|
|
895
|
|
|
152
|
|
||||
Vintage
|
1 to 2 Years
|
|
21
|
|
|
14
|
|
|
13
|
|
|
—
|
|
||||
Investment funds
|
Not Applicable
|
|
251
|
|
|
—
|
|
|
269
|
|
|
—
|
|
||||
|
|
|
$
|
3,627
|
|
|
$
|
2,040
|
|
|
$
|
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 at
December 31, 2016
|
|
|
Valuation
Technique
|
|
Significant
Unobservable Inputs
|
|
Ranges
|
||
GLB
(1)
|
$
|
559
|
|
|
Actuarial model
|
|
Lapse rate
|
|
3% – 34%
|
|
|
|
|
|
|
Annuitization rate
|
|
0% – 78%
|
(1)
|
Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note
4
a) Guaranteed living benefits.
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Liabilities
|
|
||||||||||||||
|
Available-for-Sale Debt Securities
|
|
|
Equity
securities
|
|
|
Short-term investments
|
|
|
Other
investments
|
|
|
Other derivative instruments
|
|
|
GLB
(1)
|
|
||||||||||||||
Year Ended December 31, 2016
|
Foreign
|
|
|
Corporate
securities
|
|
|
MBS
|
|
|
|
|||||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||||||||||||||
Balance, beginning of year
|
$
|
57
|
|
|
$
|
174
|
|
|
$
|
53
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
212
|
|
|
$
|
6
|
|
|
$
|
609
|
|
Transfers into Level 3
|
9
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Transfers out of Level 3
|
(24
|
)
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Change in Net Unrealized Gains (Losses) included in OCI
|
1
|
|
|
15
|
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||||
Net Realized Gains/Losses
|
(6
|
)
|
|
(13
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
(50
|
)
|
||||||||
Purchases
(2)
|
70
|
|
|
566
|
|
|
1
|
|
|
27
|
|
|
75
|
|
|
33
|
|
|
2
|
|
|
—
|
|
||||||||
Sales
|
(17
|
)
|
|
(59
|
)
|
|
(8
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements
|
(16
|
)
|
|
(45
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
||||||||
Balance, end of year
|
$
|
74
|
|
|
$
|
681
|
|
|
$
|
45
|
|
|
$
|
41
|
|
|
$
|
25
|
|
|
$
|
225
|
|
|
$
|
13
|
|
|
$
|
559
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
$
|
(5
|
)
|
|
$
|
(11
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
(50
|
)
|
(1)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. Refer to Note
5
c
) for additional information.
|
(2)
|
Includes acquired invested assets as a result of the Chubb Corp acquisition.
|
|
Assets
|
|
|
|
|
Liabilities
|
|
||||||||||||||||||||
|
Available-for-Sale Debt Securities
|
|
|
Equity
securities
|
|
|
Other
investments |
|
|
Other derivative instruments
|
|
|
GLB
(1)
|
|
|||||||||||||
Year Ended December 31, 2015
|
Foreign
|
|
|
Corporate
securities
|
|
|
MBS
|
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||||||
Balance, beginning of year
|
$
|
22
|
|
|
$
|
187
|
|
|
$
|
15
|
|
|
$
|
2
|
|
|
$
|
204
|
|
|
$
|
4
|
|
|
$
|
406
|
|
Transfers into Level 3
|
34
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Change in Net Unrealized Gains (Losses) included in OCI
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|||||||
Net Realized Gains/Losses
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
2
|
|
|
203
|
|
|||||||
Purchases
|
15
|
|
|
52
|
|
|
41
|
|
|
13
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|||||||
Sales
|
(3
|
)
|
|
(28
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Settlements
|
(8
|
)
|
|
(48
|
)
|
|
(1
|
)
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|||||||
Balance, end of year
|
$
|
57
|
|
|
$
|
174
|
|
|
$
|
53
|
|
|
$
|
16
|
|
|
$
|
212
|
|
|
$
|
6
|
|
|
$
|
609
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
203
|
|
(1)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was
$888 million
at
December 31, 2015
and
$663 million
at
December 31, 2014
, which includes a fair value derivative adjustment of
$609 million
and
$406 million
, respectively.
|
|
Assets
|
|
|
Liabilities
|
|
||||||||||||||||||||||||||
|
Available-for-Sale Debt Securities
|
|
|
|
|
|
|
|
|
Other
derivative
instruments
|
|
|
GLB
(1)
|
|
|||||||||||||||||
Year Ended December 31, 2014
|
Foreign
|
|
|
Corporate
securities
|
|
|
MBS
|
|
|
Equity
securities
|
|
Short-term investments
|
|
|
Other
investments
|
|
|||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance, beginning of year
|
$
|
44
|
|
|
$
|
166
|
|
|
$
|
8
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
196
|
|
|
$
|
—
|
|
|
$
|
193
|
|
Transfers into Level 3
|
10
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||||
Transfers out of Level 3
|
(34
|
)
|
|
(23
|
)
|
|
—
|
|
|
(2
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Change in Net Unrealized Gains (Losses) included in OCI
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||||
Net Realized Gains/Losses
|
(3
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
213
|
|
||||||||
Purchases
|
15
|
|
|
73
|
|
|
8
|
|
|
2
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
||||||||
Sales
|
(4
|
)
|
|
(38
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements
|
(5
|
)
|
|
(22
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
||||||||
Balance, end of year
|
$
|
22
|
|
|
$
|
187
|
|
|
$
|
15
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
204
|
|
|
$
|
4
|
|
|
$
|
406
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
$
|
(4
|
)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
213
|
|
(1)
|
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was
$663 million
at December 31,
2014
and
$427 million
at December 31, 2013, which includes a fair value derivative adjustment of
$406 million
and $
193 million
, respectively.
|
December 31, 2016
|
Fair Value
|
|
|
Carrying Value
|
|
||||||||||||||
(in millions of U.S. dollars)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
555
|
|
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
661
|
|
|
$
|
655
|
|
Foreign
|
—
|
|
|
667
|
|
|
—
|
|
|
667
|
|
|
640
|
|
|||||
Corporate securities
|
—
|
|
|
2,782
|
|
|
13
|
|
|
2,795
|
|
|
2,771
|
|
|||||
Mortgage-backed securities
|
—
|
|
|
1,428
|
|
|
—
|
|
|
1,428
|
|
|
1,393
|
|
|||||
States, municipalities, and political subdivisions
|
—
|
|
|
5,119
|
|
|
—
|
|
|
5,119
|
|
|
5,185
|
|
|||||
Total assets
|
$
|
555
|
|
|
$
|
10,102
|
|
|
$
|
13
|
|
|
$
|
10,670
|
|
|
$
|
10,644
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
$
|
—
|
|
|
$
|
1,403
|
|
|
$
|
—
|
|
|
$
|
1,403
|
|
|
$
|
1,403
|
|
Short-term debt
|
—
|
|
|
503
|
|
|
—
|
|
|
503
|
|
|
500
|
|
|||||
Long-term debt
|
—
|
|
|
12,998
|
|
|
—
|
|
|
12,998
|
|
|
12,610
|
|
|||||
Trust preferred securities
|
—
|
|
|
456
|
|
|
—
|
|
|
456
|
|
|
308
|
|
|||||
Total liabilities
|
$
|
—
|
|
|
$
|
15,360
|
|
|
$
|
—
|
|
|
$
|
15,360
|
|
|
$
|
14,821
|
|
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
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
2015
|
|
2014
|
|
|||||
Premiums written
|
|
|
|
|
|||||||
Direct
|
$
|
31,543
|
|
|
$
|
19,879
|
|
|
$
|
20,069
|
|
Assumed
|
3,440
|
|
|
3,932
|
|
|
3,321
|
|
|||
Ceded
|
(6,838
|
)
|
|
(6,098
|
)
|
|
(5,591
|
)
|
|||
Net
|
$
|
28,145
|
|
|
$
|
17,713
|
|
|
$
|
17,799
|
|
Premiums earned
|
|
|
|
|
|
||||||
Direct
|
$
|
31,811
|
|
|
$
|
19,355
|
|
|
$
|
19,555
|
|
Assumed
|
3,744
|
|
|
3,676
|
|
|
3,336
|
|
|||
Ceded
|
(6,806
|
)
|
|
(5,818
|
)
|
|
(5,465
|
)
|
|||
Net
|
$
|
28,749
|
|
|
$
|
17,213
|
|
|
$
|
17,426
|
|
|
|
December 31
|
|
December 31
|
|
|||
(in millions of U.S. dollars)
|
2016
|
|
2015
|
|
||||
Reinsurance recoverable on unpaid losses and loss expenses
(1)
|
$
|
12,708
|
|
|
$
|
10,741
|
|
|
Reinsurance recoverable on paid losses and loss expenses
(1)
|
869
|
|
|
645
|
|
|||
Reinsurance recoverable on losses and loss expenses
(1)
|
$
|
13,577
|
|
|
$
|
11,386
|
|
(1)
|
Net of a provision for uncollectible reinsurance.
|
December 31, 2016
|
Gross Reinsurance Recoverable on Loss and Loss Expenses
|
|
|
Provision for Uncollectible Reinsurance
|
|
|
% of Gross Reinsurance Recoverable
|
|
||
(in millions of U.S. dollars, except for percentages)
|
|
|
||||||||
Categories
|
|
|||||||||
Largest reinsurers
|
$
|
5,064
|
|
|
$
|
59
|
|
|
1.2
|
%
|
Other reinsurers rated A- or better
|
4,699
|
|
|
52
|
|
|
1.1
|
%
|
||
Other reinsurers with ratings lower than A- or not rated
|
586
|
|
|
70
|
|
|
11.9
|
%
|
||
Pools
|
577
|
|
|
11
|
|
|
1.9
|
%
|
||
Structured settlements
|
557
|
|
|
14
|
|
|
2.5
|
%
|
||
Captives
|
2,172
|
|
|
16
|
|
|
0.7
|
%
|
||
Other
|
222
|
|
|
78
|
|
|
35.1
|
%
|
||
Total
|
$
|
13,877
|
|
|
$
|
300
|
|
|
2.2
|
%
|
Largest Reinsurers
|
|
|
Alleghany Corp
|
HDI Group (Hannover Re)
|
Munich Re Group
|
Berkshire Hathaway Insurance Group
|
Lloyd's of London
|
Swiss Re Group
|
Categories of Chubb's reinsurers
|
|
Comprises:
|
Largest reinsurers
|
|
• All groups of reinsurers or captives where the gross recoverable exceeds one percent of Chubb's total shareholders' equity.
|
Other reinsurers rated A- or better
|
|
• All reinsurers rated A- or better that were not included in the largest reinsurer category.
|
Other reinsurers rated lower than A- or not rated
|
|
• All reinsurers rated lower than A- or not rated that were not included in the largest reinsurer category.
|
Pools
|
|
• Related to Chubb's voluntary pool participation and Chubb's mandatory pool participation required by law in certain states.
|
Structured settlements
|
|
• Annuities purchased from life insurance companies to settle claims. Since we retain ultimate liability in the event that the life company fails to pay, we reflect the amounts as both a liability and a recoverable/receivable for GAAP purposes.
|
Captives
|
|
• Companies established and owned by our insurance clients to assume a significant portion of their direct insurance risk from Chubb; structured to allow clients to self-insure a portion of their reinsurance risk. It generally is our policy to obtain collateral equal to expected losses. Where appropriate, exceptions are granted but only with review and approval at a senior officer level. Excludes captives included in the largest reinsurer category.
|
Other
|
|
• Amounts recoverable that are in dispute or are from companies that are in supervision, rehabilitation, or liquidation.
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
GMDB
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
55
|
|
|
$
|
61
|
|
|
$
|
71
|
|
Policy benefits and other reserve adjustments
|
$
|
45
|
|
|
$
|
34
|
|
|
$
|
50
|
|
GLB
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
118
|
|
|
$
|
121
|
|
|
$
|
138
|
|
Policy benefits and other reserve adjustments
|
52
|
|
|
45
|
|
|
36
|
|
|||
Net realized gains (losses)
|
48
|
|
|
(203
|
)
|
|
(213
|
)
|
|||
Gain (loss) recognized in Net income
|
$
|
114
|
|
|
$
|
(127
|
)
|
|
$
|
(111
|
)
|
Net cash received
|
79
|
|
|
98
|
|
|
125
|
|
|||
Net decrease (increase) in liability
|
$
|
35
|
|
|
$
|
(225
|
)
|
|
$
|
(236
|
)
|
(in millions of U.S. dollars, except for percentages)
|
|
Net amount at risk
|
|
|
|
|||||||
Reinsurance covering
|
|
2016
|
|
2015
|
|
2016
Future claims discount rate
|
Other assumptions
|
Total claims at
100% mortality at
December 31, 2016
(1)
|
|
|||
GMDB Risk Only
|
|
$
|
341
|
|
$
|
364
|
|
3.3% - 3.8%
|
No lapses or withdrawals
|
$
|
202
|
|
|
|
|
|
|
Mortality according to 100% of the Annuity 2000 mortality table
|
|
||||||
GLB Risk Only
|
|
$
|
800
|
|
$
|
733
|
|
4.3% - 4.8%
|
No deaths, lapses or withdrawals
|
N/A
|
|
|
|
|
|
|
|
Annuitization at a frequency most disadvantageous to Chubb
(2)
|
|
||||||
|
|
|
|
|
Claim calculated using interest rates in line with rates used to calculate reserve
|
|
||||||
Both Risks:
(3)
|
GMDB
|
$
|
88
|
|
$
|
89
|
|
4.3% - 4.8%
|
No lapses or withdrawals
|
$
|
22
|
|
|
|
|
|
|
Mortality according to 100% of the Annuity 2000 mortality table
|
|
||||||
|
GLB
|
$
|
464
|
|
$
|
422
|
|
4.3% - 4.8%
|
Annuitization at a frequency most disadvantageous to Chubb
(2)
|
N/A
|
|
|
|
|
|
|
|
Claim calculated using interest rates in line with rates used to calculate reserve
|
|
(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, 2014
|
$
|
1,211
|
|
|
$
|
—
|
|
|
$
|
134
|
|
|
$
|
2,366
|
|
|
$
|
365
|
|
|
$
|
828
|
|
|
$
|
4,904
|
|
Purchase price allocation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||||
Acquisition of Fireman's Fund
|
—
|
|
|
196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
196
|
|
|||||||
Foreign exchange revaluation and other
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(284
|
)
|
|
—
|
|
|
(8
|
)
|
|
(300
|
)
|
|||||||
Balance at December 31, 2015
|
$
|
1,203
|
|
|
$
|
196
|
|
|
$
|
134
|
|
|
$
|
2,078
|
|
|
$
|
365
|
|
|
$
|
820
|
|
|
$
|
4,796
|
|
Acquisition of Chubb Corp
|
5,714
|
|
|
2,025
|
|
|
—
|
|
|
2,775
|
|
|
—
|
|
|
—
|
|
|
10,514
|
|
|||||||
Foreign exchange revaluation and other
|
44
|
|
|
14
|
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||||
Balance at December 31, 2016
|
$
|
6,961
|
|
|
$
|
2,235
|
|
|
$
|
134
|
|
|
$
|
4,817
|
|
|
$
|
365
|
|
|
$
|
820
|
|
|
$
|
15,332
|
|
(in millions of U.S. dollars)
|
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 Years 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
(1)
|
|
|
Total
|
|
|
Other intangible assets
|
|
|
Total Amortization of purchased intangibles
|
|
||||||
2017
|
$
|
295
|
|
|
$
|
32
|
|
|
$
|
(160
|
)
|
|
$
|
167
|
|
|
$
|
84
|
|
|
$
|
251
|
|
2018
|
323
|
|
|
32
|
|
|
(101
|
)
|
|
254
|
|
|
74
|
|
|
328
|
|
||||||
2019
|
280
|
|
|
—
|
|
|
(62
|
)
|
|
218
|
|
|
68
|
|
|
286
|
|
||||||
2020
|
239
|
|
|
—
|
|
|
(35
|
)
|
|
204
|
|
|
59
|
|
|
263
|
|
||||||
2021
|
217
|
|
|
—
|
|
|
(20
|
)
|
|
197
|
|
|
52
|
|
|
249
|
|
||||||
Total
|
$
|
1,354
|
|
|
$
|
64
|
|
|
$
|
(378
|
)
|
|
$
|
1,040
|
|
|
$
|
337
|
|
|
$
|
1,377
|
|
(1)
|
In connection with the Chubb Corp acquisition, we recorded an increase to Unpaid losses and loss expenses acquired as part of Chubb Corp of $
715 million
to adjust the carrying value of Chubb Corp's historical unpaid losses and loss expenses to fair value as of the acquisition date. This fair value adjustment amortizes through Amortization of purchased intangibles on the Consolidated statements of operations over a range of
5
to
17
years. The balance of the fair value adjustment on Unpaid losses and loss expense at December 31, 2016 was
$470 million
. Refer to Note 1(h) for additional information.
|
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Balance, beginning of year
|
$
|
395
|
|
|
$
|
466
|
|
|
$
|
536
|
|
Amortization of VOBA
(1)
|
(41
|
)
|
|
(42
|
)
|
|
(51
|
)
|
|||
Foreign exchange revaluation
|
1
|
|
|
(29
|
)
|
|
(19
|
)
|
|||
Balance, end of year
|
$
|
355
|
|
|
$
|
395
|
|
|
$
|
466
|
|
(1)
|
Recognized in Policy acquisition costs in the Consolidated statements of operations.
|
For the Year Ending December 31
|
VOBA
|
|
|
(in millions of U.S. dollars)
|
|||
2017
|
$
|
35
|
|
2018
|
31
|
|
|
2019
|
27
|
|
|
2020
|
23
|
|
|
2021
|
20
|
|
|
Total
|
$
|
136
|
|
•
|
nature and complexity of underlying coverage provided and net limits of exposure provided;
|
•
|
segmentation of data to provide sufficient homogeneity and credibility for loss projection methods;
|
•
|
extent of credible internal historical loss data and reliance upon industry information as required;
|
•
|
historical variability of actual loss emergence compared with expected loss emergence;
|
•
|
extent of emerged loss experience relative to the remaining expected period of loss emergence;
|
•
|
rate monitor information for new and renewal business;
|
•
|
facts and circumstances of large claims;
|
•
|
impact of applicable reinsurance recoveries; and
|
•
|
nature and extent of underlying assumptions.
|
•
|
The nature and complexity of underlying coverage provided and net limits of exposure provided;
|
•
|
Our historical loss data and experience is sometimes too immature and lacking in credibility to rely upon for reserving purposes. Where this is the case, in our reserve analysis we may utilize industry loss ratios or industry benchmark development patterns that we believe reflect the nature and coverage of the underwritten business and its future development, where available. For such product lines, actual loss experience may differ from industry loss statistics as well as loss experience for previous underwriting years;
|
•
|
The difficulty in estimating loss trends, claims inflation (e.g., medical and judicial) and underlying economic conditions;
|
•
|
The need for professional judgment to estimate loss development patterns beyond that represented by historical data using supplemental internal or industry data, extrapolation, or a blend of both;
|
•
|
The need to address shifts in mix over time when applying historical paid and reported loss development patterns from older origin years to more recent origin years. For example, changes over time in the processes and procedures for establishing case reserves can distort reported loss development patterns or changes in ceded reinsurance structures by origin year can alter the development of paid and reported losses;
|
•
|
Loss reserve analyses typically require loss or other data be grouped by common characteristics in some manner. If data from two combined lines of business exhibit different characteristics, such as loss payment patterns, the credibility of the reserve estimate could be affected. Additionally, since casualty lines of business can have significant intricacies in the terms and conditions afforded to the insured, there is an inherent risk as to the homogeneity of the underlying data used in performing reserve analyses; and
|
•
|
The applicability of the price change data used to estimate ultimate loss ratios for most recent origin years.
|
•
|
The incurred loss triangle includes both reported case reserves and IBNR liabilities.
|
•
|
Both the incurred and paid loss triangles include allocated loss adjustment expense (i.e., defense and investigative costs particular to individual claims) but exclude unallocated loss adjustment expense (i.e., the costs associated with internal claims staff and third party administrators).
|
•
|
The amounts in both triangles for the years ended
December 31, 2007
, to
December 31, 2015
and average historical claim duration as of
December 31, 2016
, are presented as supplementary information.
|
•
|
All data presented in the triangles is net of reinsurance recoveries.
|
•
|
The IBNR reserves shown to the right of each incurred loss development exhibit reflect the net IBNR recorded as of
December 31, 2016
.
|
•
|
North America Commercial P&C Insurance segment loss experience is presented within four triangular tables: Workers' Compensation, Liability, Other Casualty, and non-Casualty lines.
|
•
|
North America Personal P&C Insurance segment loss experience is presented within one table, since most products are short- tail.
|
•
|
Overseas General Insurance segment loss experience is presented within two tables: Casualty and non-Casualty.
|
•
|
Global Reinsurance segment loss experience is presented within two tables: Property and non-Property.
|
•
|
We underwrite loss portfolio transfers at various times; by convention, all premium and losses associated with these transactions are recorded to the policy period of the transaction, even though the accident dates of the claims covered may be a decade or more in the past.
|
•
|
We underwrite certain high attachment, high limit, multiple-line and excess of aggregate coverages for large commercial clients. Changes in incurred loss and cash flow patterns are volatile and sufficiently different from those of typical insureds.
|
•
|
Reinsurance recoverable bad debt.
|
•
|
Purchase accounting adjustments related to unpaid losses and loss expenses for the Chubb Corp.
|
•
|
High deductible workers' compensation claim counts include claims below the applicable policy deductible.
|
•
|
Professional liability and certain other lines have a high proportion of claims reported which will be closed without any payment; shifts in total reported counts may not meaningfully impact reported and ultimate loss experience.
|
•
|
Claims for certain events and/or product lines, such as portions of assumed reinsurance and A&H business, are not reported on an individual basis, but rather in bulk and thus not available for inclusion in this disclosure. For certain A&H business, where bulk reporting affected only the oldest few accident years, presented claim counts for these years were estimated.
|
•
|
Each of the segments below typically has a mixture of primary and excess experience which has shifted over time.
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31
2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
121
|
|
|
$
|
281
|
|
|
$
|
386
|
|
|
$
|
451
|
|
|
$
|
502
|
|
|
$
|
550
|
|
|
$
|
580
|
|
|
$
|
606
|
|
|
$
|
625
|
|
|
$
|
641
|
|
|
351
|
|
2008
|
|
|
125
|
|
|
276
|
|
|
370
|
|
|
436
|
|
|
500
|
|
|
542
|
|
|
574
|
|
|
602
|
|
|
627
|
|
|
333
|
|
|||||||||||
2009
|
|
|
|
|
108
|
|
|
260
|
|
|
347
|
|
|
412
|
|
|
463
|
|
|
506
|
|
|
535
|
|
|
559
|
|
|
283
|
|
||||||||||||
2010
|
|
|
|
|
|
|
125
|
|
|
303
|
|
|
414
|
|
|
495
|
|
|
548
|
|
|
587
|
|
|
612
|
|
|
304
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
119
|
|
|
294
|
|
|
410
|
|
|
480
|
|
|
529
|
|
|
560
|
|
|
287
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
111
|
|
|
272
|
|
|
365
|
|
|
435
|
|
|
483
|
|
|
288
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
107
|
|
|
286
|
|
|
415
|
|
|
499
|
|
|
301
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113
|
|
|
296
|
|
|
408
|
|
|
338
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117
|
|
|
302
|
|
|
338
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123
|
|
|
275
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,814
|
|
|
|
Supplementary Information:
Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
12
|
%
|
|
17
|
%
|
|
11
|
%
|
|
8
|
%
|
|
6
|
%
|
|
4
|
%
|
|
3
|
%
|
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
76
|
|
|
$
|
447
|
|
|
$
|
922
|
|
|
$
|
1,488
|
|
|
$
|
1,980
|
|
|
$
|
2,301
|
|
|
$
|
2,497
|
|
|
$
|
2,618
|
|
|
$
|
2,700
|
|
|
$
|
2,757
|
|
|
21
|
|
2008
|
|
|
115
|
|
|
471
|
|
|
987
|
|
|
1,500
|
|
|
1,837
|
|
|
2,169
|
|
|
2,394
|
|
|
2,496
|
|
|
2,591
|
|
|
21
|
|
|||||||||||
2009
|
|
|
|
|
86
|
|
|
425
|
|
|
979
|
|
|
1,460
|
|
|
1,813
|
|
|
2,118
|
|
|
2,307
|
|
|
2,461
|
|
|
21
|
|
||||||||||||
2010
|
|
|
|
|
|
|
97
|
|
|
501
|
|
|
981
|
|
|
1,421
|
|
|
1,757
|
|
|
2,125
|
|
|
2,294
|
|
|
20
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
111
|
|
|
538
|
|
|
1,069
|
|
|
1,638
|
|
|
2,045
|
|
|
2,310
|
|
|
21
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
114
|
|
|
532
|
|
|
1,028
|
|
|
1,535
|
|
|
1,953
|
|
|
21
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
|
|
468
|
|
|
1,089
|
|
|
1,489
|
|
|
22
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
116
|
|
|
576
|
|
|
1,124
|
|
|
23
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117
|
|
|
544
|
|
|
26
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142
|
|
|
19
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
17,665
|
|
|
|
North America Commercial P&C Insurance — Liability (continued)
|
||||
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2016
|
|
|
Accident years prior to 2007
|
|
$
|
1,726
|
|
All Accident years
|
|
$
|
17,312
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
3
|
%
|
|
12
|
%
|
|
16
|
%
|
|
15
|
%
|
|
12
|
%
|
|
10
|
%
|
|
6
|
%
|
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
North America Commercial P&C Insurance — Other Casualty (continued)
|
|
|
||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
112
|
|
|
$
|
274
|
|
|
$
|
379
|
|
|
$
|
452
|
|
|
$
|
489
|
|
|
$
|
527
|
|
|
$
|
540
|
|
|
$
|
547
|
|
|
$
|
558
|
|
|
$
|
564
|
|
|
24
|
|
2008
|
|
|
210
|
|
|
464
|
|
|
604
|
|
|
690
|
|
|
748
|
|
|
777
|
|
|
798
|
|
|
807
|
|
|
815
|
|
|
25
|
|
|||||||||||
2009
|
|
|
|
|
106
|
|
|
281
|
|
|
378
|
|
|
432
|
|
|
471
|
|
|
500
|
|
|
511
|
|
|
520
|
|
|
20
|
|
||||||||||||
2010
|
|
|
|
|
|
|
144
|
|
|
334
|
|
|
430
|
|
|
481
|
|
|
517
|
|
|
560
|
|
|
571
|
|
|
21
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
131
|
|
|
335
|
|
|
455
|
|
|
522
|
|
|
561
|
|
|
585
|
|
|
23
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
108
|
|
|
307
|
|
|
413
|
|
|
484
|
|
|
538
|
|
|
24
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
115
|
|
|
292
|
|
|
372
|
|
|
452
|
|
|
21
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113
|
|
|
289
|
|
|
387
|
|
|
22
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
205
|
|
|
20
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74
|
|
|
17
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,711
|
|
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
19
|
%
|
|
29
|
%
|
|
16
|
%
|
|
11
|
%
|
|
7
|
%
|
|
5
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
North America Commercial P&C Insurance — Non-Casualty (continued)
|
|
|
|||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
|||||||||||
2007
|
$
|
1,271
|
|
|
$
|
1,190
|
|
|
$
|
1,181
|
|
|
$
|
1,168
|
|
|
$
|
1,151
|
|
|
$
|
1,137
|
|
|
$
|
1,138
|
|
|
$
|
1,139
|
|
|
$
|
1,138
|
|
|
$
|
1,139
|
|
|
$
|
—
|
|
2008
|
|
|
1,927
|
|
|
1,880
|
|
|
1,852
|
|
|
1,836
|
|
|
1,845
|
|
|
1,849
|
|
|
1,859
|
|
|
1,846
|
|
|
1,845
|
|
|
29
|
|
||||||||||||
2009
|
|
|
|
|
1,366
|
|
|
1,395
|
|
|
1,367
|
|
|
1,357
|
|
|
1,356
|
|
|
1,353
|
|
|
1,355
|
|
|
1,369
|
|
|
28
|
|
|||||||||||||
2010
|
|
|
|
|
|
|
1,509
|
|
|
1,568
|
|
|
1,486
|
|
|
1,442
|
|
|
1,432
|
|
|
1,424
|
|
|
1,420
|
|
|
15
|
|
||||||||||||||
2011
|
|
|
|
|
|
|
|
|
1,985
|
|
|
1,957
|
|
|
1,922
|
|
|
1,916
|
|
|
1,895
|
|
|
1,915
|
|
|
43
|
|
|||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
2,069
|
|
|
1,971
|
|
|
1,938
|
|
|
1,909
|
|
|
1,901
|
|
|
53
|
|
||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
1,487
|
|
|
1,446
|
|
|
1,359
|
|
|
1,383
|
|
|
73
|
|
|||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,755
|
|
|
1,755
|
|
|
1,681
|
|
|
103
|
|
||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,839
|
|
|
1,828
|
|
|
281
|
|
|||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,012
|
|
|
828
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,493
|
|
|
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
563
|
|
|
$
|
987
|
|
|
$
|
1,076
|
|
|
$
|
1,117
|
|
|
$
|
1,124
|
|
|
$
|
1,126
|
|
|
$
|
1,130
|
|
|
$
|
1,133
|
|
|
$
|
1,134
|
|
|
$
|
1,135
|
|
|
906
|
|
2008
|
|
|
929
|
|
|
1,607
|
|
|
1,708
|
|
|
1,766
|
|
|
1,797
|
|
|
1,800
|
|
|
1,807
|
|
|
1,813
|
|
|
1,813
|
|
|
995
|
|
|||||||||||
2009
|
|
|
|
|
630
|
|
|
1,118
|
|
|
1,213
|
|
|
1,268
|
|
|
1,280
|
|
|
1,322
|
|
|
1,332
|
|
|
1,335
|
|
|
1,067
|
|
||||||||||||
2010
|
|
|
|
|
|
|
703
|
|
|
1,231
|
|
|
1,335
|
|
|
1,374
|
|
|
1,394
|
|
|
1,400
|
|
|
1,401
|
|
|
1,054
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
942
|
|
|
1,585
|
|
|
1,742
|
|
|
1,822
|
|
|
1,832
|
|
|
1,856
|
|
|
1,045
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
727
|
|
|
1,612
|
|
|
1,745
|
|
|
1,810
|
|
|
1,830
|
|
|
1,027
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
630
|
|
|
1,119
|
|
|
1,241
|
|
|
1,291
|
|
|
1,068
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
833
|
|
|
1,405
|
|
|
1,539
|
|
|
1,095
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
712
|
|
|
1,334
|
|
|
1,164
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
852
|
|
|
1,098
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,386
|
|
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
46
|
%
|
|
37
|
%
|
|
7
|
%
|
|
4
|
%
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
843
|
|
|
$
|
1,182
|
|
|
$
|
1,267
|
|
|
$
|
1,328
|
|
|
$
|
1,353
|
|
|
$
|
1,370
|
|
|
$
|
1,377
|
|
|
$
|
1,384
|
|
|
$
|
1,387
|
|
|
$
|
1,387
|
|
|
127
|
|
2008
|
|
|
974
|
|
|
1,406
|
|
|
1,518
|
|
|
1,584
|
|
|
1,620
|
|
|
1,636
|
|
|
1,642
|
|
|
1,644
|
|
|
1,648
|
|
|
139
|
|
|||||||||||
2009
|
|
|
|
|
886
|
|
|
1,234
|
|
|
1,345
|
|
|
1,437
|
|
|
1,484
|
|
|
1,501
|
|
|
1,511
|
|
|
1,519
|
|
|
125
|
|
||||||||||||
2010
|
|
|
|
|
|
|
1,152
|
|
|
1,521
|
|
|
1,669
|
|
|
1,727
|
|
|
1,770
|
|
|
1,792
|
|
|
1,803
|
|
|
149
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
1,358
|
|
|
1,833
|
|
|
1,969
|
|
|
2,049
|
|
|
2,103
|
|
|
2,127
|
|
|
168
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
1,175
|
|
|
1,804
|
|
|
1,955
|
|
|
2,061
|
|
|
2,115
|
|
|
173
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
1,040
|
|
|
1,500
|
|
|
1,683
|
|
|
1,782
|
|
|
126
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,308
|
|
|
1,762
|
|
|
1,923
|
|
|
134
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,497
|
|
|
2,081
|
|
|
137
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,452
|
|
|
120
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
17,837
|
|
|
|
North America Personal P&C Insurance (continued)
|
|||||||||||||||||||||||||||||
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
59
|
%
|
|
24
|
%
|
|
7
|
%
|
|
4
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
95
|
|
|
$
|
287
|
|
|
$
|
425
|
|
|
$
|
550
|
|
|
$
|
631
|
|
|
$
|
680
|
|
|
$
|
715
|
|
|
$
|
743
|
|
|
$
|
776
|
|
|
$
|
787
|
|
|
37
|
|
2008
|
|
|
120
|
|
|
295
|
|
|
455
|
|
|
618
|
|
|
759
|
|
|
859
|
|
|
931
|
|
|
986
|
|
|
1,036
|
|
|
37
|
|
|||||||||||
2009
|
|
|
|
|
119
|
|
|
330
|
|
|
505
|
|
|
642
|
|
|
734
|
|
|
791
|
|
|
860
|
|
|
950
|
|
|
36
|
|
||||||||||||
2010
|
|
|
|
|
|
|
106
|
|
|
266
|
|
|
461
|
|
|
602
|
|
|
707
|
|
|
794
|
|
|
843
|
|
|
38
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
88
|
|
|
240
|
|
|
382
|
|
|
511
|
|
|
610
|
|
|
686
|
|
|
39
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
74
|
|
|
243
|
|
|
422
|
|
|
569
|
|
|
677
|
|
|
40
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
87
|
|
|
260
|
|
|
413
|
|
|
555
|
|
|
41
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114
|
|
|
289
|
|
|
459
|
|
|
41
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93
|
|
|
283
|
|
|
41
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
129
|
|
|
29
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,405
|
|
|
|
Overseas General Insurance — Casualty (continued)
|
||||
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2016
|
|
|
Accident years prior to 2007
|
|
$
|
339
|
|
All Accident years
|
|
$
|
5,681
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
9
|
%
|
|
15
|
%
|
|
14
|
%
|
|
12
|
%
|
|
9
|
%
|
|
7
|
%
|
|
5
|
%
|
|
5
|
%
|
|
4
|
%
|
|
1
|
%
|
Overseas General Insurance — Non-Casualty (continued)
|
|
|
||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
426
|
|
|
$
|
861
|
|
|
$
|
1,032
|
|
|
$
|
1,091
|
|
|
$
|
1,124
|
|
|
$
|
1,140
|
|
|
$
|
1,147
|
|
|
$
|
1,152
|
|
|
$
|
1,159
|
|
|
$
|
1,164
|
|
|
183
|
|
2008
|
|
|
479
|
|
|
985
|
|
|
1,120
|
|
|
1,183
|
|
|
1,206
|
|
|
1,215
|
|
|
1,225
|
|
|
1,233
|
|
|
1,233
|
|
|
206
|
|
|||||||||||
2009
|
|
|
|
|
449
|
|
|
882
|
|
|
1,010
|
|
|
1,073
|
|
|
1,096
|
|
|
1,106
|
|
|
1,113
|
|
|
1,116
|
|
|
234
|
|
||||||||||||
2010
|
|
|
|
|
|
|
523
|
|
|
1,028
|
|
|
1,218
|
|
|
1,278
|
|
|
1,316
|
|
|
1,328
|
|
|
1,334
|
|
|
252
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
631
|
|
|
1,272
|
|
|
1,465
|
|
|
1,519
|
|
|
1,549
|
|
|
1,563
|
|
|
268
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
553
|
|
|
1,050
|
|
|
1,233
|
|
|
1,290
|
|
|
1,311
|
|
|
283
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
569
|
|
|
1,088
|
|
|
1,272
|
|
|
1,301
|
|
|
281
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
622
|
|
|
1,209
|
|
|
1,394
|
|
|
269
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
692
|
|
|
1,315
|
|
|
256
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
789
|
|
|
191
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,520
|
|
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
39
|
%
|
|
37
|
%
|
|
12
|
%
|
|
4
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Global Reinsurance — Property (continued)
|
|
|
|||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
|||||||||||
2007
|
$
|
107
|
|
|
$
|
106
|
|
|
$
|
97
|
|
|
$
|
91
|
|
|
$
|
90
|
|
|
$
|
88
|
|
|
$
|
87
|
|
|
$
|
87
|
|
|
$
|
87
|
|
|
$
|
86
|
|
|
$
|
2
|
|
2008
|
|
|
223
|
|
|
214
|
|
|
206
|
|
|
206
|
|
|
206
|
|
|
208
|
|
|
210
|
|
|
209
|
|
|
208
|
|
|
—
|
|
||||||||||||
2009
|
|
|
|
|
99
|
|
|
113
|
|
|
105
|
|
|
105
|
|
|
103
|
|
|
100
|
|
|
100
|
|
|
100
|
|
|
—
|
|
|||||||||||||
2010
|
|
|
|
|
|
|
155
|
|
|
179
|
|
|
173
|
|
|
172
|
|
|
178
|
|
|
179
|
|
|
180
|
|
|
6
|
|
||||||||||||||
2011
|
|
|
|
|
|
|
|
|
227
|
|
|
224
|
|
|
224
|
|
|
220
|
|
|
221
|
|
|
222
|
|
|
1
|
|
|||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
175
|
|
|
154
|
|
|
149
|
|
|
142
|
|
|
141
|
|
|
4
|
|
||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
117
|
|
|
117
|
|
|
109
|
|
|
105
|
|
|
(2
|
)
|
|||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125
|
|
|
142
|
|
|
142
|
|
|
6
|
|
||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
98
|
|
|
105
|
|
|
9
|
|
|||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
143
|
|
|
29
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,432
|
|
|
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
23
|
|
|
$
|
65
|
|
|
$
|
77
|
|
|
$
|
81
|
|
|
$
|
84
|
|
|
$
|
85
|
|
|
$
|
85
|
|
|
$
|
86
|
|
|
$
|
86
|
|
|
$
|
86
|
|
|
0.215
|
|
2008
|
|
|
65
|
|
|
139
|
|
|
169
|
|
|
194
|
|
|
205
|
|
|
207
|
|
|
208
|
|
|
208
|
|
|
208
|
|
|
0.157
|
|
|||||||||||
2009
|
|
|
|
|
41
|
|
|
79
|
|
|
90
|
|
|
95
|
|
|
96
|
|
|
98
|
|
|
98
|
|
|
98
|
|
|
0.107
|
|
||||||||||||
2010
|
|
|
|
|
|
|
40
|
|
|
137
|
|
|
157
|
|
|
167
|
|
|
171
|
|
|
173
|
|
|
173
|
|
|
0.095
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
75
|
|
|
151
|
|
|
175
|
|
|
198
|
|
|
214
|
|
|
217
|
|
|
0.103
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|
95
|
|
|
117
|
|
|
125
|
|
|
129
|
|
|
0.084
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
38
|
|
|
85
|
|
|
98
|
|
|
103
|
|
|
0.097
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56
|
|
|
112
|
|
|
127
|
|
|
0.081
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50
|
|
|
87
|
|
|
0.086
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50
|
|
|
0.087
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,278
|
|
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
33
|
%
|
|
41
|
%
|
|
12
|
%
|
|
8
|
%
|
|
4
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
|||||||||||
2007
|
$
|
655
|
|
|
$
|
670
|
|
|
$
|
670
|
|
|
$
|
641
|
|
|
$
|
620
|
|
|
$
|
606
|
|
|
$
|
581
|
|
|
$
|
570
|
|
|
$
|
564
|
|
|
$
|
558
|
|
|
$
|
70
|
|
2008
|
|
|
488
|
|
|
512
|
|
|
528
|
|
|
513
|
|
|
503
|
|
|
480
|
|
|
480
|
|
|
475
|
|
|
474
|
|
|
55
|
|
||||||||||||
2009
|
|
|
|
|
356
|
|
|
404
|
|
|
404
|
|
|
409
|
|
|
401
|
|
|
383
|
|
|
365
|
|
|
354
|
|
|
35
|
|
|||||||||||||
2010
|
|
|
|
|
|
|
442
|
|
|
472
|
|
|
479
|
|
|
485
|
|
|
472
|
|
|
467
|
|
|
457
|
|
|
84
|
|
||||||||||||||
2011
|
|
|
|
|
|
|
|
|
449
|
|
|
461
|
|
|
474
|
|
|
472
|
|
|
467
|
|
|
458
|
|
|
67
|
|
|||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
440
|
|
|
437
|
|
|
440
|
|
|
440
|
|
|
425
|
|
|
30
|
|
||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
359
|
|
|
363
|
|
|
362
|
|
|
361
|
|
|
54
|
|
|||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
367
|
|
|
367
|
|
|
373
|
|
|
69
|
|
||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
328
|
|
|
333
|
|
|
87
|
|
|||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
256
|
|
|
141
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,049
|
|
|
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
December 31 2016
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Reported Claims
(in thousands)
|
|
|||||||||||||||||||||||||||||||||||
Accident Year
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
||||||||||
2007
|
$
|
52
|
|
|
$
|
122
|
|
|
$
|
200
|
|
|
$
|
267
|
|
|
$
|
318
|
|
|
$
|
363
|
|
|
$
|
393
|
|
|
$
|
417
|
|
|
$
|
437
|
|
|
$
|
445
|
|
|
1.470
|
|
2008
|
|
|
46
|
|
|
113
|
|
|
187
|
|
|
239
|
|
|
286
|
|
|
319
|
|
|
343
|
|
|
362
|
|
|
373
|
|
|
1.292
|
|
|||||||||||
2009
|
|
|
|
|
49
|
|
|
109
|
|
|
151
|
|
|
191
|
|
|
224
|
|
|
246
|
|
|
265
|
|
|
278
|
|
|
0.921
|
|
||||||||||||
2010
|
|
|
|
|
|
|
71
|
|
|
149
|
|
|
209
|
|
|
253
|
|
|
283
|
|
|
315
|
|
|
331
|
|
|
0.877
|
|
|||||||||||||
2011
|
|
|
|
|
|
|
|
|
80
|
|
|
171
|
|
|
227
|
|
|
270
|
|
|
304
|
|
|
330
|
|
|
0.796
|
|
||||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
93
|
|
|
202
|
|
|
260
|
|
|
301
|
|
|
334
|
|
|
0.677
|
|
|||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
72
|
|
|
158
|
|
|
206
|
|
|
247
|
|
|
0.417
|
|
||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99
|
|
|
199
|
|
|
240
|
|
|
0.428
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95
|
|
|
173
|
|
|
0.370
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63
|
|
|
0.118
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,814
|
|
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
18
|
%
|
|
19
|
%
|
|
13
|
%
|
|
11
|
%
|
|
8
|
%
|
|
7
|
%
|
|
5
|
%
|
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2016
|
|
|
Net unpaid loss and allocated loss adjustment expense:
|
|
|
||
North America Commercial P&C Insurance — Workers' Compensation
|
|
$
|
7,584
|
|
North America Commercial P&C Insurance — Liability
|
|
17,312
|
|
|
North America Commercial P&C Insurance — Other Casualty
|
|
1,771
|
|
|
North America Commercial P&C Insurance — Non-Casualty
|
|
2,250
|
|
|
North America Personal P&C Insurance
|
|
2,021
|
|
|
Overseas General Insurance — Casualty
|
|
5,681
|
|
|
Overseas General Insurance — Non-Casualty
|
|
2,102
|
|
|
Global Reinsurance — Property
|
|
154
|
|
|
Global Reinsurance — Non-Property
|
|
1,592
|
|
|
Other
(1)
|
|
4,837
|
|
|
Net unpaid loss and allocated loss adjustment expense
|
|
45,304
|
|
|
Ceded unpaid loss and allocated loss adjustment expense:
|
|
|
||
North America Commercial P&C Insurance — Workers' Compensation
|
|
$
|
1,872
|
|
North America Commercial P&C Insurance — Liability
|
|
4,273
|
|
|
North America Commercial P&C Insurance — Other Casualty
|
|
437
|
|
|
North America Commercial P&C Insurance — Non-Casualty
|
|
555
|
|
|
North America Personal P&C Insurance
|
|
168
|
|
|
Overseas General Insurance — Casualty
|
|
2,617
|
|
|
Overseas General Insurance — Non-Casualty
|
|
968
|
|
|
Global Reinsurance — Property
|
|
11
|
|
|
Global Reinsurance — Non-Property
|
|
114
|
|
|
Other
(1)
|
|
1,825
|
|
|
Ceded unpaid loss and allocated loss adjustment expense
|
|
12,840
|
|
|
Net unpaid loss and loss expense on other than short-duration contracts
(2)
|
|
741
|
|
|
Unpaid unallocated loss adjustment expenses
|
|
1,655
|
|
|
Unpaid losses and loss expenses
|
|
$
|
60,540
|
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
2015
|
|
2014
|
|
||||||
Gross unpaid losses and loss expenses, beginning of year
|
|
$
|
37,303
|
|
|
$
|
38,315
|
|
|
$
|
37,443
|
|
Reinsurance recoverable on unpaid losses
(1)
|
|
(10,741
|
)
|
|
(11,307
|
)
|
|
(10,612
|
)
|
|||
Net unpaid losses and loss expenses, beginning of year
|
|
26,562
|
|
|
27,008
|
|
|
26,831
|
|
|||
Acquisition of subsidiaries
|
|
21,402
|
|
|
417
|
|
|
320
|
|
|||
Total
|
|
47,964
|
|
|
27,425
|
|
|
27,151
|
|
|||
Net losses and loss expenses incurred in respect of losses occurring in:
|
|
|
|
|
|
|
||||||
Current year
|
|
17,256
|
|
|
10,030
|
|
|
10,176
|
|
|||
Prior years
(2)
|
|
(1,204
|
)
|
|
(546
|
)
|
|
(527
|
)
|
|||
Total
|
|
16,052
|
|
|
9,484
|
|
|
9,649
|
|
|||
Net losses and loss expenses paid in respect of losses occurring in:
|
|
|
|
|
|
|
||||||
Current year
|
|
5,899
|
|
|
4,053
|
|
|
3,975
|
|
|||
Prior years
|
|
9,816
|
|
|
5,612
|
|
|
5,260
|
|
|||
Total
|
|
15,715
|
|
|
9,665
|
|
|
9,235
|
|
|||
Foreign currency revaluation and other
|
|
(469
|
)
|
|
(682
|
)
|
|
(557
|
)
|
|||
Net unpaid losses and loss expenses, end of year
|
|
47,832
|
|
|
26,562
|
|
|
27,008
|
|
|||
Reinsurance recoverable on unpaid losses
(1)
|
|
12,708
|
|
|
10,741
|
|
|
11,307
|
|
|||
Gross unpaid losses and loss expenses, end of year
|
|
$
|
60,540
|
|
|
$
|
37,303
|
|
|
$
|
38,315
|
|
(1)
Net of provision for uncollectible reinsurance.
|
||||||||||||
(2)
Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums.
|
•
|
Net favorable development of
$650 million
in long-tail business, primarily from:
|
•
|
Net favorable development of
$264 million
in our commercial excess and umbrella portfolios, primarily in accident years 2010 and prior, driven by lower than expected reported loss activity and an increase in weighting towards experience-based methods; in general, the severity of claims has been less than expected;
|
•
|
Net favorable development of
$220 million
in our management liability portfolios, where paid and reported loss activity was lower than expected. The majority of this favorable activity impacted accident years 2011 and prior. Partially offsetting this were smaller amounts of adverse development in the more recent accident years, mostly as a result of higher severity claim costs compared to prior expectations in some lines;
|
•
|
Net favorable development of
$141 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
|
•
|
Favorable development of
$58 million
in our professional Errors & Omission (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.
|
•
|
Net favorable development of
$128 million
in short-tail business, primarily from:
|
•
|
Net favorable development of
$79 million
in our property and inland marine portfolios, primarily impacting the 2014 and 2015 accident years, resulting from lower than expected loss emergence; and
|
•
|
Net favorable development of
$39 million
in our credit-related businesses, including surety, trade credit and political risk, mainly due to favorable claim emergence in the 2012 and 2014 accident years.
|
•
|
Net favorable development of
$155 million
in long-tail business, primarily from:
|
•
|
Net favorable development of
$108 million
in our management and professional liability portfolios, primarily impacting accident years 2010 and prior. Lower than expected paid and reported loss activity led to reductions in our estimates of ultimate loss for these accident years;
|
•
|
Favorable development of
$32 million
in our auto liability excess lines and
$26 million
in our general liability product lines primarily impacting the 2010 accident year, resulting from lower than expected loss emergence and an increase in weighting applied to experience-based methods;
|
•
|
Net favorable development of
$21 million
in our workers’ compensation lines with favorable development of
$52 million
in the 2014 accident year related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the end of the accident year to allow for late reporting or identification of significant losses. Adverse development of
$29 million
was experienced on the 2009 and prior accident years due to a combination of claim-specific deteriorations and higher than expected loss emergence. There was also adverse development on the 2014 accident year due to revised account-level estimates, which were higher than our original aggregate expectations; and
|
•
|
Net adverse development of
$33 million
in our commercial umbrella and excess portfolios, primarily impacting accident years 2010 and 2011. Higher than expected reported loss activity, combined with an increase in weighting applied to experience-based methods, led to increased provisions in accident years 2010 and 2011, which was partly offset by the recognition of favorable emergence in the 2009 and prior accident years.
|
•
|
Net favorable development of
$109 million
in short-tail business, primarily from:
|
•
|
Favorable development of
$34 million
in our excess property business primarily impacting the 2013 accident year. Paid and reported loss activity was lower than expected leading to reductions in our estimate of ultimate loss; and
|
•
|
Favorable development of
$37 million
in our credit-related business due to lower than expected claims emergence primarily in the 2013 accident year.
|
•
|
Net favorable development of
$191 million
in long-tail business, primarily from:
|
•
|
Net favorable development of
$165 million
, primarily in casualty and financial lines, with favorable development of
$257 million
in accident years 2012 and prior, resulting from lower than expected loss emergence, and adverse development of
$92 million
in accident years 2013 to 2015, primarily due to large loss experience in our D&O portfolio in Asia and financial lines in Europe; and
|
•
|
Favorable development of
$25 million
on an individual legacy liability case reserve take-down. This release follows a legal analysis completed in 2016, based on court opinion in the year and discussions with defense counsel, which concluded that these reserves were no longer required.
|
•
|
Net favorable development of
$232 million
in short-tail business, primarily from:
|
•
|
Favorable development of
$97 million
in property (including technical lines), primarily from favorable Continental Europe loss emergence in accident years 2012 through 2014;
|
•
|
Favorable development of
$43 million
in energy lines, driven by favorable loss emergence in accident years 2010 through 2014, primarily in offshore where experience on multi-year construction accounts has been better than expected, as well as a claims review of catastrophe impacts on underwriting years 2004 through 2008;
|
•
|
Favorable development of
$28 million
in accident & health (A&H) lines, due to lower than expected loss emergence, primarily in Asia Pacific and Continental Europe in accident years 2013 through 2015; and
|
•
|
Favorable development of
$28 million
in aviation lines due to lower than expected loss emergence and case-specific reserve reductions impacting accident years 2012 and prior.
|
•
|
Net favorable development of
$166 million
in long-tail business, primarily from:
|
•
|
Net favorable development of
$140 million
, primarily in casualty and financial lines with favorable development of
$175 million
in accident years 2011 and prior, resulting from lower than expected loss emergence, and adverse development of
$35 million
in accident years 2012 to 2014, primarily due to large loss experience in the U.K. and Europe; and
|
•
|
Favorable development of
$26 million
on an individual legacy liability case reserve take-down. This release follows a legal analysis completed in 2015, based on court opinion in the year and discussions with defense counsel, which concluded that these reserves were no longer required.
|
•
|
Favorable development of
$177 million
in short-tail business primarily from:
|
•
|
Favorable development of
$90 million
in property, technical, energy and marine lines from specific claims and additional credibility assigned to accident years 2013 and prior favorable indications;
|
•
|
Favorable development of
$34 million
in A&H business primarily in accident year 2013 and 2014 across all regions and products, none of which was individually significant; and
|
•
|
Favorable development of
$26 million
in consumer business primarily in Latin America and Asia Pacific, resulting from favorable development and additional credibility assigned to accident years 2012 and 2013.
|
•
|
Net favorable development of
$42 million
in casualty lines primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence; and
|
•
|
Net favorable development of
$30 million
in professional liability lines primarily impacting treaty years 2011 and prior due to lower than expected loss emergence.
|
•
|
Favorable development of
$54 million
comprising
$42 million
in long-tail lines and
$12 million
in short-tail lines, on an individual legacy liability case reserve take-down. This release follows a legal analysis completed in 2015, based on court opinion and discussions with defense counsel, which concluded that these reserves were no longer required;
|
•
|
Favorable development of
$33 million
in professional liability lines, including medical malpractice business, primarily in treaty years 2010 and prior reflecting favorable paid and incurred loss trends and an increase in weighting applied to experience-based methods; and
|
•
|
Favorable development of
$23 million
in casualty lines, principally in treaty years 2009 and prior reflecting favorable paid and incurred loss trends and an increase in weighting applied to experience-based methods.
|
•
|
Adverse development of
$141 million
in asbestos, environmental, and other run-off liabilities primarily arose as a result of the annual review of individual accounts and case specific exposures, with account changes driven by recent frequency and severity trends, certain case specific settlements and higher than expected defense spending; and
|
•
|
Adverse development of
$48 million
on unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in 2016.
|
•
|
Adverse development of
$170 million
in our Westchester and Brandywine run-off operations, related to the completion of reserve reviews during 2015, impacting accident years 1996 and prior. The development primarily arose from case specific settlements and higher than expected remediation expense and defense costs for environmental claims and increases in indemnity and defense costs on a select number of modeled accounts for asbestos. Further, we experienced higher than expected loss emergence on certain portfolios in our assumed reinsurance book and in other run-off lines; and
|
•
|
Adverse development of
$30 million
on unallocated loss adjustment expenses due to run-off operating expenses paid and incurred during 2015.
|
|
|
Asbestos
|
|
|
Environmental
|
|
|
Total
|
|
|
|||||||||||||||
(in millions of U.S. dollars)
|
|
Gross
|
|
|
Net
|
|
|
Gross
|
|
|
Net
|
|
|
Gross
|
|
|
Net
|
|
|
||||||
Balance at December 31, 2015
|
|
$
|
1,351
|
|
|
$
|
831
|
|
|
$
|
199
|
|
|
$
|
149
|
|
|
$
|
1,550
|
|
|
$
|
980
|
|
|
Acquired reserves
|
|
488
|
|
|
468
|
|
|
371
|
|
|
354
|
|
|
859
|
|
|
822
|
|
|
||||||
Incurred activity
|
|
311
|
|
|
95
|
|
|
104
|
|
|
69
|
|
|
415
|
|
|
164
|
|
(1)
|
||||||
Paid activity
|
|
(424
|
)
|
|
(275
|
)
|
|
(97
|
)
|
|
(82
|
)
|
|
(521
|
)
|
|
(357
|
)
|
|
||||||
Balance at December 31, 2016
|
|
$
|
1,726
|
|
|
$
|
1,119
|
|
|
$
|
577
|
|
|
$
|
490
|
|
|
$
|
2,303
|
|
|
$
|
1,609
|
|
|
|
December 31
|
|
|||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Brandywine operations
|
$
|
760
|
|
|
$
|
782
|
|
Westchester Specialty
|
112
|
|
|
115
|
|
||
Chubb Corp
|
657
|
|
|
—
|
|
||
Other, mainly Overseas General Insurance
|
80
|
|
|
83
|
|
||
Total
|
$
|
1,609
|
|
|
$
|
980
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Pre-tax income:
|
|
|
|
|
|
||||||
Switzerland
|
$
|
766
|
|
|
$
|
469
|
|
|
$
|
404
|
|
Outside Switzerland
|
4,184
|
|
|
2,827
|
|
|
3,083
|
|
|||
Total pre-tax income
|
$
|
4,950
|
|
|
$
|
3,296
|
|
|
$
|
3,487
|
|
Provision for income taxes:
|
|
|
|
|
|
||||||
Current tax expense:
|
|
|
|
|
|
||||||
Switzerland
|
$
|
97
|
|
|
$
|
38
|
|
|
$
|
31
|
|
Outside Switzerland
|
727
|
|
|
266
|
|
|
450
|
|
|||
Total current tax expense
|
824
|
|
|
304
|
|
|
481
|
|
|||
Deferred tax expense:
|
|
|
|
|
|
||||||
Switzerland
|
(27
|
)
|
|
4
|
|
|
9
|
|
|||
Outside Switzerland
|
18
|
|
|
154
|
|
|
144
|
|
|||
Total deferred tax expense
|
(9
|
)
|
|
158
|
|
|
153
|
|
|||
Provision for income taxes
|
$
|
815
|
|
|
$
|
462
|
|
|
$
|
634
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Expected tax provision at Swiss statutory tax rate
|
$
|
388
|
|
|
$
|
258
|
|
|
$
|
273
|
|
Permanent differences:
|
|
|
|
|
|
||||||
Taxes on earnings subject to rate other than Swiss statutory rate
|
582
|
|
|
193
|
|
|
224
|
|
|||
Change to deferred taxes related to unrealized foreign exchange losses
(1)
|
—
|
|
|
—
|
|
|
139
|
|
|||
Tax-exempt interest and dividends received deduction, net of proration
|
(200
|
)
|
|
(32
|
)
|
|
(33
|
)
|
|||
Net withholding taxes
|
20
|
|
|
35
|
|
|
33
|
|
|||
Change in valuation allowance
(1)
|
(1
|
)
|
|
2
|
|
|
(20
|
)
|
|||
Other
|
26
|
|
|
6
|
|
|
18
|
|
|||
Total provision for income taxes
|
$
|
815
|
|
|
$
|
462
|
|
|
$
|
634
|
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
(1)
|
|
||
Deferred tax assets:
|
|
|
|
||||
Loss reserve discount
|
$
|
1,269
|
|
|
$
|
663
|
|
Unearned premiums reserve
|
498
|
|
|
190
|
|
||
Foreign tax credits
|
2,115
|
|
|
969
|
|
||
Provision for uncollectible balances
|
72
|
|
|
65
|
|
||
Loss carry-forwards
|
92
|
|
|
72
|
|
||
Debt related amounts
|
219
|
|
|
3
|
|
||
Compensation related amounts
|
449
|
|
|
189
|
|
||
Cumulative translation adjustments
|
59
|
|
|
17
|
|
||
Other, net
|
69
|
|
|
80
|
|
||
Total deferred tax assets
|
4,842
|
|
|
2,248
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Deferred policy acquisition costs
|
842
|
|
|
412
|
|
||
Other intangible assets, including VOBA
|
2,352
|
|
|
384
|
|
||
Un-remitted foreign earnings
|
2,001
|
|
|
827
|
|
||
Investments
|
406
|
|
|
6
|
|
||
Unrealized appreciation on investments
|
60
|
|
|
195
|
|
||
Depreciation
|
91
|
|
|
68
|
|
||
Total deferred tax liabilities
|
5,752
|
|
|
1,892
|
|
||
Valuation allowance
|
78
|
|
|
38
|
|
||
Net deferred tax assets (liabilities)
|
$
|
(988
|
)
|
|
$
|
318
|
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Balance, beginning of year
|
$
|
16
|
|
|
$
|
23
|
|
Additions based on tax positions related to the current year
|
3
|
|
|
1
|
|
||
Additions based on tax positions related to prior years
(1)
|
2
|
|
|
—
|
|
||
Reductions for tax positions of prior years
|
(4
|
)
|
|
(7
|
)
|
||
Reductions for the lapse of the applicable statutes of limitations
|
—
|
|
|
(1
|
)
|
||
Balance, end of year
|
$
|
17
|
|
|
$
|
16
|
|
|
December 31
|
|
|
December 31
|
|
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
Early Redemption Option
|
||
Repurchase agreements
(weighted average interest rate of 0.8% in 2016 and 0.6% in 2015)
|
$
|
1,403
|
|
|
$
|
1,404
|
|
|
None
|
Short-term debt
|
|
|
|
|
|
||||
Chubb INA senior notes:
|
|
|
|
|
|
||||
$500 million 5.7% due February 2017
|
$
|
500
|
|
|
$
|
—
|
|
|
Make-whole premium plus 0.20%
|
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
|
635
|
|
|
—
|
|
|
Make-whole premium plus 0.30%
|
||
$100 million 6.6% due August 2018
|
107
|
|
|
—
|
|
|
None
|
||
$500 million 5.9% due June 2019
|
498
|
|
|
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
|
695
|
|
|
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
|
1,488
|
|
|
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
|
257
|
|
|
—
|
|
|
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
|
980
|
|
|
—
|
|
|
Make-whole premium plus 0.20%
|
||
$600 million 6.5% due May 2038
|
776
|
|
|
—
|
|
|
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)
|
962
|
|
|
—
|
|
|
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
|
$
|
12,610
|
|
|
$
|
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 prices are 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 capital securities from the redemption date to April 1, 2030.
|
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
|
||||||||||||||||||
|
Consolidated
Balance Sheet Location |
|
Fair Value
|
|
|
Notional
Value/ Payment Provision |
|
|
|
Fair Value
|
|
|
Notional
Value/ Payment Provision |
|
||||||||||||
|
|
Derivative Asset
|
|
|
Derivative (Liability)
|
|
|
|
|
Derivative Asset
|
|
|
Derivative (Liability)
|
|
|
|||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
|
|||||||||||||||||||
Investment and embedded derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forward contracts
|
OA / (AP)
|
|
$
|
25
|
|
|
$
|
(50
|
)
|
|
$
|
2,220
|
|
|
|
$
|
7
|
|
|
$
|
(11
|
)
|
|
$
|
1,029
|
|
Cross-currency swaps
|
OA / (AP)
|
|
—
|
|
|
—
|
|
|
95
|
|
|
|
—
|
|
|
—
|
|
|
95
|
|
||||||
Options/Futures contracts on notes and bonds
|
OA / (AP)
|
|
6
|
|
|
(4
|
)
|
|
2,344
|
|
|
|
5
|
|
|
(2
|
)
|
|
751
|
|
||||||
Convertible securities
(1)
|
FM AFS/ES
|
|
2
|
|
|
—
|
|
|
7
|
|
|
|
31
|
|
|
—
|
|
|
40
|
|
||||||
|
|
|
$
|
33
|
|
|
$
|
(54
|
)
|
|
$
|
4,666
|
|
|
|
$
|
43
|
|
|
$
|
(13
|
)
|
|
$
|
1,915
|
|
Other derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Futures contracts on equities
(2)
|
OA / (AP)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1,316
|
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
1,197
|
|
Other
|
OA / (AP)
|
|
2
|
|
|
(13
|
)
|
|
214
|
|
|
|
—
|
|
|
(6
|
)
|
|
15
|
|
||||||
|
|
|
$
|
3
|
|
|
$
|
(13
|
)
|
|
$
|
1,530
|
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
1,212
|
|
GLB
(3)
|
(AP) / (FPB)
|
|
$
|
—
|
|
|
$
|
(853
|
)
|
|
$
|
1,264
|
|
|
|
$
|
—
|
|
|
$
|
(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
c
) for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.
|
|
Remaining contractual maturity
|
|
|||||
|
Overnight and Continuous
|
|
|||||
(in millions of U.S. dollars)
|
December 31
2016
|
|
|
December 31
2015
|
|
||
Collateral held under securities lending agreements:
|
|
|
|
||||
Cash
|
$
|
423
|
|
|
$
|
424
|
|
U.S. Treasury and agency
|
54
|
|
|
67
|
|
||
Foreign
|
578
|
|
|
296
|
|
||
Corporate securities
|
37
|
|
|
2
|
|
||
Equity securities
|
—
|
|
|
257
|
|
||
|
$
|
1,092
|
|
|
$
|
1,046
|
|
Gross amount of recognized liability for securities lending payable
|
$
|
1,093
|
|
|
$
|
1,047
|
|
Difference
(1)
|
$
|
(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.
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
||||||||||||||||||||||
|
Remaining contractual maturity
|
|
|
|
|
Remaining contractual
maturity
|
|
|
|
||||||||||||||||||
|
Up to 30 Days
|
|
|
Greater than 90 Days
|
|
|
|
|
Up to 30 Days
|
|
|
30 - 90 Days
|
|
|
Greater than 90 Days
|
|
|
Total
|
|
||||||||
(in millions of U.S. dollars)
|
|
Total
|
|
|
|
|
|||||||||||||||||||||
Collateral pledged under repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34
|
|
U.S. Treasury and agency
|
230
|
|
|
10
|
|
|
240
|
|
|
6
|
|
|
—
|
|
|
231
|
|
|
237
|
|
|||||||
Mortgage-backed securities
|
339
|
|
|
881
|
|
|
1,220
|
|
|
365
|
|
|
480
|
|
|
343
|
|
|
1,188
|
|
|||||||
|
$
|
569
|
|
|
$
|
892
|
|
|
$
|
1,461
|
|
|
$
|
405
|
|
|
$
|
480
|
|
|
$
|
574
|
|
|
$
|
1,459
|
|
Gross amount of recognized liabilities for repurchase agreements
|
|
|
|
|
$
|
1,403
|
|
|
|
|
|
|
|
|
$
|
1,404
|
|
||||||||||
Difference
(1)
|
|
|
|
|
$
|
58
|
|
|
|
|
|
|
|
|
$
|
55
|
|
(1)
|
Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability.
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Investment and embedded derivative instruments
|
|
|
|
|
|
||||||
Foreign currency forward contracts
|
$
|
(31
|
)
|
|
$
|
31
|
|
|
$
|
29
|
|
All other futures contracts and options
|
(10
|
)
|
|
9
|
|
|
(118
|
)
|
|||
Convertible securities
(1)
|
8
|
|
|
(8
|
)
|
|
(18
|
)
|
|||
Total investment and embedded derivative instruments
|
$
|
(33
|
)
|
|
$
|
32
|
|
|
$
|
(107
|
)
|
GLB and other derivative instruments
|
|
|
|
|
|
||||||
GLB
(2)
|
$
|
53
|
|
|
$
|
(203
|
)
|
|
$
|
(217
|
)
|
Futures contracts on equities
(3)
|
(136
|
)
|
|
(8
|
)
|
|
(164
|
)
|
|||
Options on equity market indices
(3)
|
—
|
|
|
(2
|
)
|
|
(4
|
)
|
|||
Other
|
(10
|
)
|
|
(12
|
)
|
|
50
|
|
|||
Total GLB and other derivative instruments
|
$
|
(93
|
)
|
|
$
|
(225
|
)
|
|
$
|
(335
|
)
|
|
$
|
(126
|
)
|
|
$
|
(193
|
)
|
|
$
|
(442
|
)
|
(1)
|
Includes embedded derivatives.
|
(2)
|
Excludes foreign exchange gains (losses) related to GLB.
|
(3)
|
Related to GMDB and GLB blocks of business.
|
For the years ending December 31
|
|||
(in millions of U.S. dollars)
|
|||
2017
|
$
|
173
|
|
2018
|
149
|
|
|
2019
|
118
|
|
|
2020
|
93
|
|
|
2021
|
78
|
|
|
Thereafter
|
186
|
|
|
Total minimum future lease commitments
|
$
|
797
|
|
|
Year Ended December 31
|
|
||||||||||||||||||
|
|
|
2016
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
||||||
|
CHF
|
|
|
USD
|
|
|
CHF
|
|
|
USD
|
|
|
CHF
|
|
|
USD
|
|
|||
Dividends - par value reduction
|
—
|
|
|
$
|
—
|
|
|
0.62
|
|
|
$
|
0.65
|
|
|
2.27
|
|
|
$
|
2.46
|
|
Dividends - distributed from capital contribution reserves
|
2.70
|
|
|
2.74
|
|
|
1.94
|
|
|
2.01
|
|
|
0.20
|
|
|
0.24
|
|
|||
Total dividend distributions per common share
|
2.70
|
|
|
$
|
2.74
|
|
|
2.56
|
|
|
$
|
2.66
|
|
|
2.47
|
|
|
$
|
2.70
|
|
|
Year Ended December 31
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2014
|
|
Shares issued, beginning of year
|
342,832,412
|
|
|
342,832,412
|
|
|
342,832,412
|
|
Shares issued for Chubb Corp acquisition
|
136,951,452
|
|
|
—
|
|
|
—
|
|
Common Shares in treasury, end of year (at cost)
|
(13,815,148
|
)
|
|
(18,268,971
|
)
|
|
(14,172,726
|
)
|
Shares issued and outstanding, end of year
|
465,968,716
|
|
|
324,563,441
|
|
|
328,659,686
|
|
Common Shares issued to employee trust
|
|
|
|
|
|
|||
Balance, beginning of year
|
(5,800
|
)
|
|
(9,467
|
)
|
|
(9,467
|
)
|
Shares redeemed
|
3,000
|
|
|
3,667
|
|
|
—
|
|
Balance, end of year
|
(2,800
|
)
|
|
(5,800
|
)
|
|
(9,467
|
)
|
•
|
$2.0 billion
of Chubb Common Shares from November 21, 2013 through December 31, 2014
|
•
|
$
1.5 billion
of Chubb Common Shares from January 1, 2015 through December 31, 2015
|
•
|
$
1.0 billion
of Chubb Common Shares from November 17, 2016 through December 31, 2017
|
|
Year Ended December 31
|
|
|
January 1, 2017 through
|
|
||||||||||
(in millions of U.S. dollars, except share data)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
February 24, 2017
|
|
||||
Number of shares repurchased
|
—
|
|
|
6,677,663
|
|
|
13,982,358
|
|
|
419,623
|
|
||||
Cost of shares repurchased
|
$
|
—
|
|
|
$
|
734
|
|
|
$
|
1,449
|
|
|
$
|
55
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Stock options and shares issued under ESPP:
|
|
|
|
|
|
||||||
Pre-tax
|
$
|
33
|
|
|
$
|
31
|
|
|
$
|
28
|
|
After-tax
(1)
|
$
|
20
|
|
|
$
|
21
|
|
|
$
|
19
|
|
Restricted stock:
|
|
|
|
|
|
||||||
Pre-tax
|
$
|
268
|
|
|
$
|
143
|
|
|
$
|
128
|
|
After-tax
|
$
|
167
|
|
|
$
|
84
|
|
|
$
|
75
|
|
(1)
|
Excludes windfall tax benefit for share-based compensation recognized as a direct adjustment to Additional paid-in capital of
$32 million
,
$26 million
and
$28 million
for the years ended December 31, 2016, 2015 and 2014, respectively.
|
|
Year Ended December 31
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2014
|
|
Dividend yield
|
2.3
|
%
|
|
2.3
|
%
|
|
2.7
|
%
|
Expected volatility
|
23.2
|
%
|
|
21.0
|
%
|
|
25.2
|
%
|
Risk-free interest rate
|
1.3
|
%
|
|
1.7
|
%
|
|
1.7
|
%
|
Expected life
|
5.6 years
|
|
|
5.8 years
|
|
|
5.8 years
|
|
(Intrinsic Value in millions of U.S. dollars)
|
Number of Options
|
|
|
Weighted-Average Exercise Price
|
|
|
Weighted-Average Fair Value
|
|
|
Total Intrinsic Value
|
|
|||
Options outstanding, December 31, 2013
|
9,496,856
|
|
|
$
|
61.84
|
|
|
|
|
|
||||
Granted
|
1,782,903
|
|
|
$
|
96.77
|
|
|
$
|
18.00
|
|
|
|
||
Exercised
|
(1,511,948
|
)
|
|
$
|
54.84
|
|
|
|
|
$
|
73
|
|
||
Forfeited
|
(143,825
|
)
|
|
$
|
84.52
|
|
|
|
|
|
||||
Options outstanding, December 31, 2014
|
9,623,986
|
|
|
$
|
69.06
|
|
|
|
|
|
||||
Granted
|
1,892,641
|
|
|
$
|
114.78
|
|
|
$
|
18.49
|
|
|
|
||
Exercised
|
(1,457,580
|
)
|
|
$
|
60.88
|
|
|
|
|
$
|
72
|
|
||
Forfeited
|
(205,551
|
)
|
|
$
|
100.25
|
|
|
|
|
|
||||
Options outstanding, December 31, 2015
|
9,853,496
|
|
|
$
|
78.40
|
|
|
|
|
|
||||
Assumed in Chubb Corp Acquisition
|
339,896
|
|
|
$
|
77.83
|
|
|
$
|
36.07
|
|
|
|
||
Granted
|
1,929,616
|
|
|
$
|
118.39
|
|
|
$
|
21.52
|
|
|
|
||
Exercised
|
(1,728,949
|
)
|
|
$
|
66.65
|
|
|
|
|
$
|
99
|
|
||
Forfeited
|
(213,339
|
)
|
|
$
|
110.01
|
|
|
|
|
|
||||
Options outstanding, December 31, 2016
|
10,180,720
|
|
|
$
|
87.29
|
|
|
|
|
$
|
456
|
|
||
Options exercisable, December 31, 2016
|
6,562,884
|
|
|
$
|
72.90
|
|
|
|
|
$
|
389
|
|
|
Service-based
Restricted Stock Awards and Restricted Stock Units
|
|
|
Performance-based
Restricted Stock Awards
and Restricted Stock Units
|
|
||||||||
|
Number of Shares
|
|
|
Weighted-Average Grant-Date Fair Value
|
|
|
Number of Shares
|
|
|
Weighted-Average Grant-Date Fair Value
|
|
||
Unvested restricted stock, December 31, 2013
|
4,129,583
|
|
|
$
|
71.85
|
|
|
196,497
|
|
|
$
|
71.35
|
|
Granted
|
1,596,245
|
|
|
$
|
97.16
|
|
|
374,202
|
|
|
$
|
98.31
|
|
Vested
|
(1,500,949
|
)
|
|
$
|
68.33
|
|
|
(192,009
|
)
|
|
$
|
85.39
|
|
Forfeited
|
(387,782
|
)
|
|
$
|
73.21
|
|
|
—
|
|
|
$
|
—
|
|
Unvested restricted stock, December 31, 2014
|
3,837,097
|
|
|
$
|
83.60
|
|
|
378,690
|
|
|
$
|
90.87
|
|
Granted
|
1,417,965
|
|
|
$
|
114.37
|
|
|
326,860
|
|
|
$
|
113.29
|
|
Vested
|
(1,341,358
|
)
|
|
$
|
80.05
|
|
|
(110,340
|
)
|
|
$
|
98.70
|
|
Forfeited
|
(424,535
|
)
|
|
$
|
87.36
|
|
|
—
|
|
|
$
|
—
|
|
Unvested restricted stock, December 31, 2015
|
3,489,169
|
|
|
$
|
97.01
|
|
|
595,210
|
|
|
$
|
101.73
|
|
Assumed in Chubb Corp Acquisition
|
3,706,639
|
|
|
$
|
111.02
|
|
|
—
|
|
|
$
|
—
|
|
Granted
|
1,622,065
|
|
|
$
|
118.70
|
|
|
517,507
|
|
|
$
|
118.96
|
|
Vested
|
(2,592,622
|
)
|
|
$
|
100.87
|
|
|
(181,548
|
)
|
|
$
|
102.43
|
|
Forfeited
|
(420,125
|
)
|
|
$
|
109.42
|
|
|
—
|
|
|
$
|
—
|
|
Unvested restricted stock, December 31, 2016
|
5,805,126
|
|
|
$
|
109.39
|
|
|
931,169
|
|
|
$
|
111.17
|
|
•
|
The amendment of the pension plan and excess pension plan resulted in a pre-tax curtailment gain of
$113 million
immediately recognized in income during the fourth quarter of 2016 as it reduced expected years of future service of active plan participants.
|
•
|
The amendment of the retiree healthcare plan resulted in a reduction in the obligation of
$383 million
, of which $
15 million
pre-tax was recognized in income during the fourth quarter of 2016 and the remaining balance will be amortized as a reduction to expense over the next
4.5
years as it relates to benefits already accrued.
|
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||||||||||||||||||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||||||||||||||||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Benefit obligation, beginning of year
|
$
|
10
|
|
|
$
|
559
|
|
|
$
|
10
|
|
|
$
|
584
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
—
|
|
Acquisition of Chubb Corp
|
3,153
|
|
|
372
|
|
|
—
|
|
|
—
|
|
|
491
|
|
|
15
|
|
|
—
|
|
|
—
|
|
||||||||
Service cost
|
75
|
|
|
18
|
|
|
—
|
|
|
6
|
|
|
9
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||||
Interest cost
|
103
|
|
|
30
|
|
|
—
|
|
|
21
|
|
|
16
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||||
Actuarial loss
|
131
|
|
|
204
|
|
|
—
|
|
|
13
|
|
|
33
|
|
|
3
|
|
|
(1
|
)
|
|
—
|
|
||||||||
Benefits paid
|
(79
|
)
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amendments
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
1
|
|
|
(410
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Curtailments
|
(259
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements
|
(99
|
)
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Foreign currency revaluation
|
—
|
|
|
(113
|
)
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||||
Benefit obligation, end of year
|
$
|
3,035
|
|
|
$
|
1,025
|
|
|
$
|
10
|
|
|
$
|
559
|
|
|
$
|
144
|
|
|
$
|
21
|
|
|
$
|
16
|
|
|
$
|
—
|
|
Plan assets at fair value, beginning of year
|
$
|
9
|
|
|
$
|
564
|
|
|
$
|
9
|
|
|
$
|
579
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Acquisition of Chubb Corp
|
2,473
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Actual return on plan assets
|
359
|
|
|
168
|
|
|
—
|
|
|
40
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Employer contributions
|
98
|
|
|
67
|
|
|
—
|
|
|
10
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Benefits paid
|
(79
|
)
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements
|
(95
|
)
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Foreign currency revaluation
|
—
|
|
|
(123
|
)
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Plan assets at fair value, end of year
|
$
|
2,765
|
|
|
$
|
962
|
|
|
$
|
9
|
|
|
$
|
564
|
|
|
$
|
159
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Funded status at end of year
|
$
|
(270
|
)
|
|
$
|
(63
|
)
|
|
$
|
(1
|
)
|
|
$
|
5
|
|
|
$
|
15
|
|
|
$
|
(21
|
)
|
|
$
|
(16
|
)
|
|
$
|
—
|
|
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||||||||||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|||||||||||||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
||||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||||||
Net actuarial loss (gain)
|
$
|
(207
|
)
|
|
$
|
156
|
|
|
$
|
—
|
|
|
$
|
107
|
|
|
$
|
14
|
|
|
$
|
3
|
|
Prior service cost
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
7
|
|
|
(395
|
)
|
|
—
|
|
||||||
Total
|
$
|
(207
|
)
|
|
$
|
154
|
|
|
$
|
—
|
|
|
$
|
114
|
|
|
$
|
(381
|
)
|
|
$
|
3
|
|
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||
Discount rate
|
4.14
|
%
|
|
2.83
|
%
|
|
2.86
|
%
|
|
3.73
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
3.57
|
%
|
|
N/A
|
|
|
N/A
|
|
December 31, 2015
|
|
|
|
|
|
|
|
||||
Discount rate
|
NM
|
|
|
3.61
|
%
|
|
NM
|
|
|
|
|
Rate of compensation increase
|
NM
|
|
|
3.05
|
%
|
|
NM
|
|
|
|
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||||||||||||||
Year Ended December 31, 2016
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Total
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Total
|
|
||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||
Costs reflected in Net income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
75
|
|
|
$
|
18
|
|
|
$
|
93
|
|
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
10
|
|
Interest cost
|
103
|
|
|
30
|
|
|
133
|
|
|
16
|
|
|
1
|
|
|
17
|
|
||||||
Expected return on plan assets
|
(165
|
)
|
|
(39
|
)
|
|
(204
|
)
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Amortization of net actuarial loss (gain)
|
—
|
|
|
2
|
|
|
2
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Amortization of prior service cost
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
Curtailments
|
(117
|
)
|
|
—
|
|
|
(117
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic (benefit) cost
|
$
|
(106
|
)
|
|
$
|
11
|
|
|
$
|
(95
|
)
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
3
|
|
Changes in plan assets and benefit obligations recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial loss (gain)
|
$
|
(326
|
)
|
|
$
|
49
|
|
|
$
|
(277
|
)
|
|
$
|
14
|
|
|
$
|
3
|
|
|
$
|
17
|
|
Prior service benefit
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|
(395
|
)
|
|
—
|
|
|
(395
|
)
|
||||||
Curtailments
|
117
|
|
|
—
|
|
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
2
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total (increase) decrease in other comprehensive income
|
$
|
(207
|
)
|
|
$
|
40
|
|
|
$
|
(167
|
)
|
|
$
|
(381
|
)
|
|
$
|
3
|
|
|
$
|
(378
|
)
|
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs reflected in Net income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest cost
|
—
|
|
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Expected return on plan assets
|
—
|
|
|
(29
|
)
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net actuarial loss
|
—
|
|
|
2
|
|
|
2
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Settlements
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Changes in plan assets and benefit obligations recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial loss (gain)
|
$
|
—
|
|
|
$
|
(16
|
)
|
|
$
|
(16
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Prior service cost
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total increase in other comprehensive income
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
(15
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs reflected in Net income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest cost
|
—
|
|
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Expected return on plan assets
|
—
|
|
|
(30
|
)
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net actuarial loss
|
—
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Net periodic benefit cost
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Changes in plan assets and benefit obligations recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial loss (gain)
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Prior service cost
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total increase in other comprehensive income
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pension Benefits
|
|
|
Other Postretirement Benefits
|
|
||||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
Year Ended December 31
|
|
|
|
||||||||
2016
|
|
|
|
|
|
|
|
||||
Discount rate in effect for determining service cost
|
4.38
|
%
|
|
3.85
|
%
|
|
4.56
|
%
|
|
4.30
|
%
|
Discount rate in effect for determining interest cost
|
3.59
|
%
|
|
3.44
|
%
|
|
3.82
|
%
|
|
4.30
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
3.33
|
%
|
|
N/A
|
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
7.00
|
%
|
|
4.79
|
%
|
|
6.34
|
%
|
|
N/A
|
|
2015
|
|
|
|
|
|
|
|
||||
Discount rate
|
NM
|
|
|
3.51
|
%
|
|
NM
|
|
|
|
|
Rate of compensation increase
|
NM
|
|
|
3.09
|
%
|
|
NM
|
|
|
|
|
Expected long-term rate of return on plan assets
|
NM
|
|
|
4.81
|
%
|
|
NM
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
||||
Discount rate
|
NM
|
|
|
4.21
|
%
|
|
NM
|
|
|
|
|
Rate of compensation increase
|
NM
|
|
|
3.43
|
%
|
|
NM
|
|
|
|
|
Expected long-term rate of return on plan assets
|
NM
|
|
|
5.34
|
%
|
|
NM
|
|
|
|
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
||||||
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2016
|
|
Healthcare cost trend rate
|
7.28
|
%
|
|
6.50
|
%
|
|
6.50
|
%
|
|
6.61
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
4.50
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
Year that the rate reaches the ultimate trend rate
|
2038
|
|
|
2026
|
|
|
2026
|
|
|
2029
|
|
December 31, 2016
|
Pension Benefits
|
|
|||||||||||||
(in millions of U.S. dollars)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
U.S. Plans
|
|
|
|
|
|
|
|
||||||||
Short-term investments
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
43
|
|
U.S. Treasury and agency
|
206
|
|
|
112
|
|
|
—
|
|
|
318
|
|
||||
Foreign and corporate bonds
|
—
|
|
|
482
|
|
|
5
|
|
|
487
|
|
||||
Equity securities
|
728
|
|
|
—
|
|
|
—
|
|
|
728
|
|
||||
Derivative instruments
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Total U.S. Plan assets
(1)
|
$
|
937
|
|
|
$
|
637
|
|
|
$
|
5
|
|
|
$
|
1,579
|
|
Non-U.S. Plans
|
|
|
|
|
|
|
|
||||||||
Short-term investments
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Foreign and corporate bonds
|
—
|
|
|
435
|
|
|
—
|
|
|
435
|
|
||||
Equity securities
|
100
|
|
|
412
|
|
|
—
|
|
|
512
|
|
||||
Total Non-U.S. Plan assets
(1)
|
$
|
102
|
|
|
$
|
847
|
|
|
$
|
—
|
|
|
$
|
949
|
|
(1)
|
Excluded from the table above are $
1.2 billion
and $
13 million
of investments measured using NAV as a practical expedient related to the U.S. Plans and Non-U.S. Plans, respectively.
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Equity in net (income) loss of partially-owned entities
|
$
|
(264
|
)
|
|
$
|
(113
|
)
|
|
$
|
(231
|
)
|
(Gains) losses from fair value changes in separate account assets
(1)
|
(11
|
)
|
|
19
|
|
|
(2
|
)
|
|||
Federal excise and capital taxes
|
19
|
|
|
19
|
|
|
20
|
|
|||
Acquisition-related costs
(2)
|
2
|
|
|
9
|
|
|
15
|
|
|||
Other
|
32
|
|
|
15
|
|
|
8
|
|
|||
Other (income) expense
|
$
|
(222
|
)
|
|
$
|
(51
|
)
|
|
$
|
(190
|
)
|
•
|
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., Canada, and Bermuda. This segment includes our retail divisions: Major Accounts, Commercial Insurance, including Small Commercial Insurance; and our wholesale and specialty divisions: Westchester and Chubb Bermuda. 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 North America Personal P&C Insurance segment includes the business written by Chubb Personal Risk Services division, which comprises Chubb high net worth personal lines business and ACE Private Risk Services, with operations in the U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles (including fine arts), personal and excess liability, travel insurance, and recreational marine insurance and services.
|
•
|
The North America Agricultural Insurance segment includes the business written by Rain and Hail Insurance Service, Inc. which provides comprehensive multiple peril crop insurance (MPCI) 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
|
•
|
The Global Reinsurance segment primarily includes the reinsurance business written by Chubb Tempest Re. The Global Reinsurance segment also includes CGM's reinsurance operations. Chubb Tempest Re provides a broad range of traditional and specialty reinsurance coverages to a diverse array of primary P&C companies.
|
•
|
The Life Insurance segment includes Chubb's international life operations written by Chubb Life, Chubb Tempest Life Re and the North American supplemental A&H and life business of Combined Insurance.
|
For the Year Ended December 31, 2016 (in millions of U.S. dollars)
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global
Reinsurance
|
|
|
Life Insurance
|
|
|
Corporate
|
|
|
Chubb
Consolidated
|
|
||||||||
Net premiums written
|
$
|
11,740
|
|
|
$
|
4,153
|
|
|
$
|
1,328
|
|
|
$
|
8,124
|
|
|
$
|
676
|
|
|
$
|
2,124
|
|
|
$
|
—
|
|
|
$
|
28,145
|
|
Net premiums earned
|
12,217
|
|
|
4,319
|
|
|
1,316
|
|
|
8,132
|
|
|
710
|
|
|
2,055
|
|
|
—
|
|
|
28,749
|
|
||||||||
Losses and loss expenses
|
7,439
|
|
|
2,558
|
|
|
893
|
|
|
4,005
|
|
|
325
|
|
|
663
|
|
|
169
|
|
|
16,052
|
|
||||||||
Policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
588
|
|
|
—
|
|
|
588
|
|
||||||||
Policy acquisition costs
|
2,023
|
|
|
966
|
|
|
83
|
|
|
2,136
|
|
|
187
|
|
|
509
|
|
|
—
|
|
|
5,904
|
|
||||||||
Administrative expenses
|
1,125
|
|
|
363
|
|
|
(6
|
)
|
|
1,057
|
|
|
52
|
|
|
307
|
|
|
183
|
|
|
3,081
|
|
||||||||
Underwriting income (loss)
|
1,630
|
|
|
432
|
|
|
346
|
|
|
934
|
|
|
146
|
|
|
(12
|
)
|
|
(352
|
)
|
|
3,124
|
|
||||||||
Net investment income
|
1,860
|
|
|
207
|
|
|
20
|
|
|
600
|
|
|
263
|
|
|
283
|
|
|
(368
|
)
|
|
2,865
|
|
||||||||
Other (income) expense
|
(2
|
)
|
|
6
|
|
|
1
|
|
|
(11
|
)
|
|
(4
|
)
|
|
5
|
|
|
(217
|
)
|
|
(222
|
)
|
||||||||
Amortization expense (benefit) of purchased intangibles
|
—
|
|
|
19
|
|
|
29
|
|
|
48
|
|
|
—
|
|
|
3
|
|
|
(80
|
)
|
|
19
|
|
||||||||
Segment income (loss)
|
3,492
|
|
|
614
|
|
|
336
|
|
|
1,497
|
|
|
413
|
|
|
263
|
|
|
(423
|
)
|
|
6,192
|
|
||||||||
Net realized gains (losses) including OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
(145
|
)
|
|
(145
|
)
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
605
|
|
|
605
|
|
||||||||||||||
Chubb integration expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
492
|
|
|
492
|
|
||||||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
815
|
|
|
815
|
|
||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,480
|
)
|
|
$
|
4,135
|
|
For the Year Ended December 31, 2015
(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
|
|
|
Corporate
|
|
|
Chubb
Consolidated |
|
||||||||
Net premiums written
|
$
|
5,715
|
|
|
$
|
1,192
|
|
|
$
|
1,346
|
|
|
$
|
6,634
|
|
|
$
|
828
|
|
|
$
|
1,998
|
|
|
$
|
—
|
|
|
$
|
17,713
|
|
Net premiums earned
|
5,634
|
|
|
948
|
|
|
1,364
|
|
|
6,471
|
|
|
849
|
|
|
1,947
|
|
|
—
|
|
|
17,213
|
|
||||||||
Losses and loss expenses
|
3,661
|
|
|
590
|
|
|
1,088
|
|
|
3,052
|
|
|
290
|
|
|
601
|
|
|
202
|
|
|
9,484
|
|
||||||||
Policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
543
|
|
|
—
|
|
|
543
|
|
||||||||
Policy acquisition costs
|
531
|
|
|
69
|
|
|
69
|
|
|
1,581
|
|
|
214
|
|
|
476
|
|
|
1
|
|
|
2,941
|
|
||||||||
Administrative expenses
|
621
|
|
|
123
|
|
|
1
|
|
|
997
|
|
|
49
|
|
|
291
|
|
|
188
|
|
|
2,270
|
|
||||||||
Underwriting income (loss)
|
821
|
|
|
166
|
|
|
206
|
|
|
841
|
|
|
296
|
|
|
36
|
|
|
(391
|
)
|
|
1,975
|
|
||||||||
Net investment income
|
1,032
|
|
|
25
|
|
|
23
|
|
|
534
|
|
|
300
|
|
|
265
|
|
|
15
|
|
|
2,194
|
|
||||||||
Other (income) expense
|
(7
|
)
|
|
2
|
|
|
1
|
|
|
(17
|
)
|
|
(6
|
)
|
|
23
|
|
|
(47
|
)
|
|
(51
|
)
|
||||||||
Amortization expense of purchased intangibles
|
—
|
|
|
78
|
|
|
30
|
|
|
61
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
171
|
|
||||||||
Segment income (loss)
|
1,860
|
|
|
111
|
|
|
198
|
|
|
1,331
|
|
|
602
|
|
|
276
|
|
|
(329
|
)
|
|
4,049
|
|
||||||||
Net realized gains (losses) including OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(420
|
)
|
|
(420
|
)
|
|||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
300
|
|
|
300
|
|
||||||||||||||
Chubb integration expense
|
|
|
|
|
|
|
|
|
|
|
|
|
33
|
|
|
33
|
|
||||||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
462
|
|
|
462
|
|
||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(1,544
|
)
|
|
$
|
2,834
|
|
For the Year Ended December 31, 2014
(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
|
|
|
Corporate
|
|
|
Chubb
Consolidated
|
|
||||||||
Net premiums written
|
$
|
5,685
|
|
|
$
|
578
|
|
|
$
|
1,590
|
|
|
$
|
6,999
|
|
|
$
|
935
|
|
|
$
|
2,012
|
|
|
$
|
—
|
|
|
$
|
17,799
|
|
Net premiums earned
|
5,547
|
|
|
560
|
|
|
1,526
|
|
|
6,805
|
|
|
1,026
|
|
|
1,962
|
|
|
—
|
|
|
17,426
|
|
||||||||
Losses and loss expenses
|
3,476
|
|
|
368
|
|
|
1,351
|
|
|
3,189
|
|
|
431
|
|
|
589
|
|
|
245
|
|
|
9,649
|
|
||||||||
Policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
517
|
|
||||||||
Policy acquisition costs
|
518
|
|
|
116
|
|
|
81
|
|
|
1,625
|
|
|
257
|
|
|
478
|
|
|
—
|
|
|
3,075
|
|
||||||||
Administrative expenses
|
599
|
|
|
74
|
|
|
9
|
|
|
1,026
|
|
|
54
|
|
|
285
|
|
|
198
|
|
|
2,245
|
|
||||||||
Underwriting income (loss)
|
954
|
|
|
2
|
|
|
85
|
|
|
965
|
|
|
284
|
|
|
93
|
|
|
(443
|
)
|
|
1,940
|
|
||||||||
Net investment income
|
1,060
|
|
|
22
|
|
|
26
|
|
|
545
|
|
|
316
|
|
|
268
|
|
|
15
|
|
|
2,252
|
|
||||||||
Other (income) expense
|
(12
|
)
|
|
1
|
|
|
2
|
|
|
(18
|
)
|
|
(4
|
)
|
|
3
|
|
|
(162
|
)
|
|
(190
|
)
|
||||||||
Amortization expense of purchased intangibles
|
—
|
|
|
—
|
|
|
31
|
|
|
74
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
108
|
|
||||||||
Segment income (loss)
|
2,026
|
|
|
23
|
|
|
78
|
|
|
1,454
|
|
|
604
|
|
|
355
|
|
|
(266
|
)
|
|
4,274
|
|
||||||||
Net realized gains (losses) including OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(507
|
)
|
|
(507
|
)
|
|||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
280
|
|
|
280
|
|
|||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
634
|
|
|
634
|
|
||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(1,687
|
)
|
|
$
|
2,853
|
|
|
|
|
|
|
|
||||||
|
For the Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
North America Commercial P&C Insurance
|
|
|
|
|
|
||||||
Property & other short-tail lines
|
$
|
1,963
|
|
|
$
|
1,040
|
|
|
$
|
1,113
|
|
Casualty & all other
|
9,552
|
|
|
4,175
|
|
|
4,021
|
|
|||
A&H
|
702
|
|
|
419
|
|
|
413
|
|
|||
Total North America Commercial P&C Insurance
|
12,217
|
|
|
5,634
|
|
|
5,547
|
|
|||
North America Personal P&C Insurance
|
|
|
|
|
|
||||||
Personal automobile
|
699
|
|
|
186
|
|
|
130
|
|
|||
Personal homeowners
|
3,007
|
|
|
579
|
|
|
309
|
|
|||
Personal other
|
613
|
|
|
183
|
|
|
121
|
|
|||
Total North America Personal P&C Insurance
|
4,319
|
|
|
948
|
|
|
560
|
|
|||
North America Agricultural Insurance
|
1,316
|
|
|
1,364
|
|
|
1,526
|
|
|||
Overseas General Insurance
|
|
|
|
|
|
||||||
Property & other short-tail lines
|
2,133
|
|
|
1,833
|
|
|
1,892
|
|
|||
Casualty & all other
|
2,177
|
|
|
1,361
|
|
|
1,425
|
|
|||
Personal lines
|
1,626
|
|
|
1,211
|
|
|
1,204
|
|
|||
A&H
|
2,196
|
|
|
2,066
|
|
|
2,284
|
|
|||
Total Overseas General Insurance
|
8,132
|
|
|
6,471
|
|
|
6,805
|
|
|||
Global Reinsurance
|
|
|
|
|
|
||||||
Property & other short-tail lines
|
118
|
|
|
155
|
|
|
246
|
|
|||
Property catastrophe
|
185
|
|
|
219
|
|
|
253
|
|
|||
Casualty & all other
|
407
|
|
|
475
|
|
|
527
|
|
|||
Total Global Reinsurance
|
710
|
|
|
849
|
|
|
1,026
|
|
|||
Life Insurance
|
|
|
|
|
|
||||||
Life
|
1,002
|
|
|
931
|
|
|
981
|
|
|||
A&H
|
1,053
|
|
|
1,016
|
|
|
981
|
|
|||
Total Life Insurance
|
2,055
|
|
|
1,947
|
|
|
1,962
|
|
|||
Total net premiums earned
|
$
|
28,749
|
|
|
$
|
17,213
|
|
|
$
|
17,426
|
|
|
North America
|
|
|
Europe
(1)
|
|
|
Asia
Pacific/Far East
|
|
|
Latin America
|
|
2016
|
70
|
%
|
|
12
|
%
|
|
11
|
%
|
|
7
|
%
|
2015
|
60
|
%
|
|
15
|
%
|
|
15
|
%
|
|
10
|
%
|
2014
|
58
|
%
|
|
16
|
%
|
|
16
|
%
|
|
10
|
%
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars, except share and per share data)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
4,135
|
|
|
$
|
2,834
|
|
|
$
|
2,853
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per share:
|
|
|
|
|
|
||||||
Weighted-average shares outstanding
|
462,519,789
|
|
|
325,589,361
|
|
|
335,609,899
|
|
|||
Denominator for diluted earnings per share:
|
|
|
|
|
|
||||||
Share-based compensation plans
|
3,429,610
|
|
|
3,246,017
|
|
|
3,376,388
|
|
|||
Weighted-average shares outstanding
and assumed conversions
|
465,949,399
|
|
|
328,835,378
|
|
|
338,986,287
|
|
|||
Basic earnings per share
|
$
|
8.94
|
|
|
$
|
8.71
|
|
|
$
|
8.50
|
|
Diluted earnings per share
|
$
|
8.87
|
|
|
$
|
8.62
|
|
|
$
|
8.42
|
|
Potential anti-dilutive share conversions
|
1,206,828
|
|
|
1,601,668
|
|
|
1,024,788
|
|
|
December 31
|
|
|||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Statutory capital and surplus
|
|
|
|
||||
Property and casualty
|
$
|
37,946
|
|
|
$
|
19,680
|
|
Life
|
$
|
1,294
|
|
|
$
|
1,207
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Statutory net income (loss)
|
|
|
|
|
|
||||||
Property and casualty
|
$
|
7,042
|
|
|
$
|
2,712
|
|
|
$
|
3,378
|
|
Life
|
$
|
46
|
|
|
$
|
(148
|
)
|
|
$
|
(248
|
)
|
(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
|
|
|
$
|
485
|
|
|
$
|
98,582
|
|
|
$
|
—
|
|
|
$
|
99,094
|
|
Cash
(1)
|
1
|
|
|
1
|
|
|
1,965
|
|
|
(982
|
)
|
|
985
|
|
|||||
Insurance and reinsurance balances receivable
|
—
|
|
|
—
|
|
|
10,498
|
|
|
(1,528
|
)
|
|
8,970
|
|
|||||
Reinsurance recoverable on losses and loss expenses
|
—
|
|
|
—
|
|
|
24,496
|
|
|
(10,919
|
)
|
|
13,577
|
|
|||||
Reinsurance recoverable on policy benefits
|
—
|
|
|
—
|
|
|
1,153
|
|
|
(971
|
)
|
|
182
|
|
|||||
Value of business acquired
|
—
|
|
|
—
|
|
|
355
|
|
|
—
|
|
|
355
|
|
|||||
Goodwill and other intangible assets
|
—
|
|
|
—
|
|
|
22,095
|
|
|
—
|
|
|
22,095
|
|
|||||
Investments in subsidiaries
|
38,408
|
|
|
49,509
|
|
|
—
|
|
|
(87,917
|
)
|
|
—
|
|
|||||
Due from subsidiaries and affiliates, net
|
10,482
|
|
|
—
|
|
|
—
|
|
|
(10,482
|
)
|
|
—
|
|
|||||
Other assets
|
3
|
|
|
436
|
|
|
18,442
|
|
|
(4,353
|
)
|
|
14,528
|
|
|||||
Total assets
|
$
|
48,921
|
|
|
$
|
50,431
|
|
|
$
|
177,586
|
|
|
$
|
(117,152
|
)
|
|
$
|
159,786
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Unpaid losses and loss expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,683
|
|
|
$
|
(10,143
|
)
|
|
$
|
60,540
|
|
Unearned premiums
|
—
|
|
|
—
|
|
|
18,538
|
|
|
(3,759
|
)
|
|
14,779
|
|
|||||
Future policy benefits
|
—
|
|
|
—
|
|
|
6,007
|
|
|
(971
|
)
|
|
5,036
|
|
|||||
Due to subsidiaries and affiliates, net
|
—
|
|
|
10,209
|
|
|
273
|
|
|
(10,482
|
)
|
|
—
|
|
|||||
Affiliated notional cash pooling programs
(1)
|
363
|
|
|
619
|
|
|
—
|
|
|
(982
|
)
|
|
—
|
|
|||||
Repurchase agreements
|
—
|
|
|
—
|
|
|
1,403
|
|
|
—
|
|
|
1,403
|
|
|||||
Short-term debt
|
—
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|||||
Long-term debt
|
—
|
|
|
12,599
|
|
|
11
|
|
|
—
|
|
|
12,610
|
|
|||||
Trust preferred securities
|
—
|
|
|
308
|
|
|
—
|
|
|
—
|
|
|
308
|
|
|||||
Other liabilities
|
283
|
|
|
1,582
|
|
|
17,368
|
|
|
(2,898
|
)
|
|
16,335
|
|
|||||
Total liabilities
|
646
|
|
|
25,817
|
|
|
114,283
|
|
|
(29,235
|
)
|
|
111,511
|
|
|||||
Total shareholders’ equity
|
48,275
|
|
|
24,614
|
|
|
63,303
|
|
|
(87,917
|
)
|
|
48,275
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
48,921
|
|
|
$
|
50,431
|
|
|
$
|
177,586
|
|
|
$
|
(117,152
|
)
|
|
$
|
159,786
|
|
(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. Refer to Note 1 f) for additional information. At
December 31, 2015
, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
For the Year Ended December 31, 2016
|
Chubb Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb Limited
Consolidated
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Net premiums written
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,145
|
|
|
$
|
—
|
|
|
$
|
28,145
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
28,749
|
|
|
—
|
|
|
28,749
|
|
|||||
Net investment income
|
3
|
|
|
11
|
|
|
2,851
|
|
|
—
|
|
|
2,865
|
|
|||||
Equity in earnings of subsidiaries
|
3,901
|
|
|
2,555
|
|
|
—
|
|
|
(6,456
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
—
|
|
|
3
|
|
|
(148
|
)
|
|
—
|
|
|
(145
|
)
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
16,052
|
|
|
—
|
|
|
16,052
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
588
|
|
|
—
|
|
|
588
|
|
|||||
Policy acquisition costs and administrative expenses
|
64
|
|
|
82
|
|
|
8,839
|
|
|
—
|
|
|
8,985
|
|
|||||
Interest (income) expense
|
(353
|
)
|
|
908
|
|
|
50
|
|
|
—
|
|
|
605
|
|
|||||
Other (income) expense
|
(25
|
)
|
|
35
|
|
|
(232
|
)
|
|
—
|
|
|
(222
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|||||
Chubb integration expenses
|
62
|
|
|
126
|
|
|
304
|
|
|
—
|
|
|
492
|
|
|||||
Income tax expense (benefit)
|
21
|
|
|
(416
|
)
|
|
1,210
|
|
|
—
|
|
|
815
|
|
|||||
Net income
|
$
|
4,135
|
|
|
$
|
1,834
|
|
|
$
|
4,622
|
|
|
$
|
(6,456
|
)
|
|
$
|
4,135
|
|
Comprehensive income
|
$
|
4,556
|
|
|
$
|
2,001
|
|
|
$
|
5,045
|
|
|
$
|
(7,046
|
)
|
|
$
|
4,556
|
|
For the Year Ended December 31, 2015
|
Chubb Limited
(Parent
Guarantor)
|
|
|
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)
|
|
|
Other Chubb
Limited
Subsidiaries
|
|
|
Consolidating
Adjustments and Eliminations
|
|
|
Chubb Limited
Consolidated
|
|
|||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||
Net premiums written
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,713
|
|
|
$
|
—
|
|
|
$
|
17,713
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
17,213
|
|
|
—
|
|
|
17,213
|
|
|||||
Net investment income
|
3
|
|
|
4
|
|
|
2,187
|
|
|
—
|
|
|
2,194
|
|
|||||
Equity in earnings of subsidiaries
|
2,673
|
|
|
1,038
|
|
|
—
|
|
|
(3,711
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
—
|
|
|
(9
|
)
|
|
(411
|
)
|
|
—
|
|
|
(420
|
)
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
9,484
|
|
|
—
|
|
|
9,484
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
543
|
|
|
—
|
|
|
543
|
|
|||||
Policy acquisition costs and administrative expenses
|
63
|
|
|
28
|
|
|
5,120
|
|
|
—
|
|
|
5,211
|
|
|||||
Interest (income) expense
|
(32
|
)
|
|
302
|
|
|
30
|
|
|
—
|
|
|
300
|
|
|||||
Other (income) expense
|
(208
|
)
|
|
(4
|
)
|
|
161
|
|
|
—
|
|
|
(51
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
171
|
|
|
—
|
|
|
171
|
|
|||||
Chubb integration expenses
|
3
|
|
|
29
|
|
|
1
|
|
|
—
|
|
|
33
|
|
|||||
Income tax expense (benefit)
|
16
|
|
|
(349
|
)
|
|
795
|
|
|
—
|
|
|
462
|
|
|||||
Net income
|
$
|
2,834
|
|
|
$
|
1,027
|
|
|
$
|
2,684
|
|
|
$
|
(3,711
|
)
|
|
$
|
2,834
|
|
Comprehensive income (loss)
|
$
|
908
|
|
|
$
|
(192
|
)
|
|
$
|
757
|
|
|
$
|
(565
|
)
|
|
$
|
908
|
|
For the Year Ended December 31, 2014
|
Chubb Limited
(Parent
Guarantor)
|
|
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,799
|
|
|
$
|
—
|
|
|
$
|
17,799
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
17,426
|
|
|
—
|
|
|
17,426
|
|
|||||
Net investment income
|
2
|
|
|
2
|
|
|
2,248
|
|
|
—
|
|
|
2,252
|
|
|||||
Equity in earnings of subsidiaries
|
2,707
|
|
|
791
|
|
|
—
|
|
|
(3,498
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
—
|
|
|
53
|
|
|
(560
|
)
|
|
—
|
|
|
(507
|
)
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
9,649
|
|
|
—
|
|
|
9,649
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
517
|
|
|||||
Policy acquisition costs and administrative expenses
|
78
|
|
|
26
|
|
|
5,216
|
|
|
—
|
|
|
5,320
|
|
|||||
Interest (income) expense
|
(35
|
)
|
|
277
|
|
|
38
|
|
|
—
|
|
|
280
|
|
|||||
Other (income) expense
|
(201
|
)
|
|
27
|
|
|
(16
|
)
|
|
—
|
|
|
(190
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
108
|
|
|
—
|
|
|
108
|
|
|||||
Income tax expense (benefit)
|
14
|
|
|
(94
|
)
|
|
714
|
|
|
—
|
|
|
634
|
|
|||||
Net income
|
$
|
2,853
|
|
|
$
|
610
|
|
|
$
|
2,888
|
|
|
$
|
(3,498
|
)
|
|
$
|
2,853
|
|
Comprehensive income
|
$
|
2,892
|
|
|
$
|
583
|
|
|
$
|
2,926
|
|
|
$
|
(3,509
|
)
|
|
$
|
2,892
|
|
For the Year Ended December 31, 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
|
$
|
3,618
|
|
|
$
|
4,305
|
|
|
$
|
5,536
|
|
|
$
|
(8,167
|
)
|
|
$
|
5,292
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of fixed maturities available for sale
|
—
|
|
|
(156
|
)
|
|
(30,659
|
)
|
|
—
|
|
|
(30,815
|
)
|
|||||
Purchases of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
(282
|
)
|
|
—
|
|
|
(282
|
)
|
|||||
Purchases of equity securities
|
—
|
|
|
—
|
|
|
(146
|
)
|
|
—
|
|
|
(146
|
)
|
|||||
Sales of fixed maturities available for sale
|
—
|
|
|
66
|
|
|
16,611
|
|
|
—
|
|
|
16,677
|
|
|||||
Sales of equity securities
|
—
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
|
1,000
|
|
|||||
Maturities and redemptions of fixed maturities available for sale
|
—
|
|
|
66
|
|
|
9,283
|
|
|
—
|
|
|
9,349
|
|
|||||
Maturities and redemptions of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
958
|
|
|
—
|
|
|
958
|
|
|||||
Net change in short-term investments
|
—
|
|
|
7,943
|
|
|
4,407
|
|
|
—
|
|
|
12,350
|
|
|||||
Net derivative instruments settlements
|
—
|
|
|
(9
|
)
|
|
(159
|
)
|
|
—
|
|
|
(168
|
)
|
|||||
Acquisition of subsidiaries (net of cash acquired of $71)
|
—
|
|
|
(14,282
|
)
|
|
34
|
|
|
—
|
|
|
(14,248
|
)
|
|||||
Capital contribution
|
(2,330
|
)
|
|
(215
|
)
|
|
(2,330
|
)
|
|
4,875
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
(3
|
)
|
|
13
|
|
|
—
|
|
|
10
|
|
|||||
Net cash flows used for investing activities
|
(2,330
|
)
|
|
(6,590
|
)
|
|
(1,270
|
)
|
|
4,875
|
|
|
(5,315
|
)
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid on Common Shares
|
(1,173
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,173
|
)
|
|||||
Proceeds from issuance of repurchase agreements
|
—
|
|
|
—
|
|
|
2,310
|
|
|
—
|
|
|
2,310
|
|
|||||
Repayment of repurchase agreements
|
—
|
|
|
—
|
|
|
(2,311
|
)
|
|
—
|
|
|
(2,311
|
)
|
|||||
Proceeds from share-based compensation plans, including windfall tax benefits
|
—
|
|
|
—
|
|
|
167
|
|
|
—
|
|
|
167
|
|
|||||
Advances (to) from affiliates
|
404
|
|
|
(572
|
)
|
|
168
|
|
|
—
|
|
|
—
|
|
|||||
Dividends to parent company
|
—
|
|
|
—
|
|
|
(8,167
|
)
|
|
8,167
|
|
|
—
|
|
|||||
Capital contribution
|
—
|
|
|
2,330
|
|
|
2,545
|
|
|
(4,875
|
)
|
|
—
|
|
|||||
Net proceeds from (payments to) affiliated notional cash pooling programs
(1)
|
(519
|
)
|
|
530
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|||||
Policyholder contract deposits
|
—
|
|
|
—
|
|
|
522
|
|
|
—
|
|
|
522
|
|
|||||
Policyholder contract withdrawals
|
—
|
|
|
—
|
|
|
(253
|
)
|
|
—
|
|
|
(253
|
)
|
|||||
Other
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Net cash flows (used for) from financing activities
|
(1,288
|
)
|
|
2,284
|
|
|
(5,019
|
)
|
|
3,281
|
|
|
(742
|
)
|
|||||
Effect of foreign currency rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
|||||
Net decrease in cash
|
—
|
|
|
(1
|
)
|
|
(778
|
)
|
|
(11
|
)
|
|
(790
|
)
|
|||||
Cash – beginning of year
(1)
|
1
|
|
|
2
|
|
|
2,743
|
|
|
(971
|
)
|
|
1,775
|
|
|||||
Cash – end of year
(1)
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1,965
|
|
|
$
|
(982
|
)
|
|
$
|
985
|
|
(1)
|
Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note
1
f) for additional information. At
December 31, 2016
and
2015
, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
For the Year Ended December 31, 2015
|
Chubb Limited
(Parent
Guarantor)
|
|
|
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
|
$
|
3,125
|
|
|
$
|
682
|
|
|
$
|
3,836
|
|
|
$
|
(3,779
|
)
|
|
$
|
3,864
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
(16,053
|
)
|
|
(18
|
)
|
|
(16,071
|
)
|
|||||
Purchases of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(62
|
)
|
|||||
Purchases of equity securities
|
—
|
|
|
—
|
|
|
(158
|
)
|
|
—
|
|
|
(158
|
)
|
|||||
Sales of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
10,814
|
|
|
—
|
|
|
10,814
|
|
|||||
Sales of equity securities
|
—
|
|
|
—
|
|
|
183
|
|
|
—
|
|
|
183
|
|
|||||
Maturities and redemptions of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
6,567
|
|
|
—
|
|
|
6,567
|
|
|||||
Maturities and redemptions of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
669
|
|
|
—
|
|
|
669
|
|
|||||
Net change in short-term investments
|
—
|
|
|
(7,588
|
)
|
|
(628
|
)
|
|
—
|
|
|
(8,216
|
)
|
|||||
Net derivative instruments settlements
|
—
|
|
|
(9
|
)
|
|
(12
|
)
|
|
—
|
|
|
(21
|
)
|
|||||
Acquisition of subsidiaries (net of cash acquired of $629)
|
—
|
|
|
—
|
|
|
264
|
|
|
—
|
|
|
264
|
|
|||||
Capital contribution
|
(2,670
|
)
|
|
(625
|
)
|
|
(2,791
|
)
|
|
6,086
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
(25
|
)
|
|
(256
|
)
|
|
18
|
|
|
(263
|
)
|
|||||
Net cash flows used for investing activities
|
(2,670
|
)
|
|
(8,247
|
)
|
|
(1,463
|
)
|
|
6,086
|
|
|
(6,294
|
)
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid on Common Shares
|
(862
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(862
|
)
|
|||||
Common Shares repurchased
|
—
|
|
|
—
|
|
|
(758
|
)
|
|
—
|
|
|
(758
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
6,090
|
|
|
—
|
|
|
—
|
|
|
6,090
|
|
|||||
Proceeds from issuance of repurchase agreements
|
—
|
|
|
—
|
|
|
2,029
|
|
|
—
|
|
|
2,029
|
|
|||||
Repayment of long-term debt
|
—
|
|
|
(1,150
|
)
|
|
—
|
|
|
—
|
|
|
(1,150
|
)
|
|||||
Repayment of repurchase agreements
|
—
|
|
|
—
|
|
|
(2,027
|
)
|
|
—
|
|
|
(2,027
|
)
|
|||||
Proceeds from share-based compensation plans, including windfall tax benefits
|
—
|
|
|
—
|
|
|
131
|
|
|
—
|
|
|
131
|
|
|||||
Advances (to) from affiliates
|
(228
|
)
|
|
95
|
|
|
133
|
|
|
—
|
|
|
—
|
|
|||||
Dividends to parent company
|
—
|
|
|
—
|
|
|
(3,779
|
)
|
|
3,779
|
|
|
—
|
|
|||||
Capital contribution
|
—
|
|
|
2,791
|
|
|
3,295
|
|
|
(6,086
|
)
|
|
—
|
|
|||||
Net proceeds from (payments to) affiliated notional cash pooling programs
(1)
|
636
|
|
|
(220
|
)
|
|
—
|
|
|
(416
|
)
|
|
—
|
|
|||||
Policyholder contract deposits
|
—
|
|
|
—
|
|
|
503
|
|
|
—
|
|
|
503
|
|
|||||
Policyholder contract withdrawals
|
—
|
|
|
—
|
|
|
(221
|
)
|
|
—
|
|
|
(221
|
)
|
|||||
Other
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
|||||
Net cash flows (used for) from financing activities
|
(454
|
)
|
|
7,566
|
|
|
(694
|
)
|
|
(2,723
|
)
|
|
3,695
|
|
|||||
Effect of foreign currency rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
—
|
|
|
(145
|
)
|
|||||
Net increase in cash
|
1
|
|
|
1
|
|
|
1,534
|
|
|
(416
|
)
|
|
1,120
|
|
|||||
Cash – beginning of year
(1)
|
—
|
|
|
1
|
|
|
1,209
|
|
|
(555
|
)
|
|
655
|
|
|||||
Cash – end of year
(1)
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2,743
|
|
|
$
|
(971
|
)
|
|
$
|
1,775
|
|
(1)
|
Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note
1
f) for additional information. At
December 31, 2015
and
2014
, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
For the Year Ended December 31, 2014
|
Chubb Limited
(Parent
Guarantor)
|
|
|
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
|
$
|
541
|
|
|
$
|
210
|
|
|
$
|
4,419
|
|
|
$
|
(674
|
)
|
|
$
|
4,496
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
(15,816
|
)
|
|
263
|
|
|
(15,553
|
)
|
|||||
Purchases of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
(267
|
)
|
|
—
|
|
|
(267
|
)
|
|||||
Purchases of equity securities
|
—
|
|
|
—
|
|
|
(251
|
)
|
|
—
|
|
|
(251
|
)
|
|||||
Sales of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
7,750
|
|
|
(268
|
)
|
|
7,482
|
|
|||||
Sales of equity securities
|
—
|
|
|
—
|
|
|
670
|
|
|
—
|
|
|
670
|
|
|||||
Maturities and redemptions of fixed maturities available for sale
|
—
|
|
|
—
|
|
|
6,413
|
|
|
—
|
|
|
6,413
|
|
|||||
Maturities and redemptions of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
875
|
|
|
—
|
|
|
875
|
|
|||||
Net change in short-term investments
|
—
|
|
|
(216
|
)
|
|
(392
|
)
|
|
5
|
|
|
(603
|
)
|
|||||
Net derivative instruments settlements
|
—
|
|
|
53
|
|
|
(283
|
)
|
|
—
|
|
|
(230
|
)
|
|||||
Acquisition of subsidiaries (net of cash acquired of $20)
|
—
|
|
|
—
|
|
|
(766
|
)
|
|
—
|
|
|
(766
|
)
|
|||||
Capital contribution
|
—
|
|
|
(258
|
)
|
|
—
|
|
|
258
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
(8
|
)
|
|
(266
|
)
|
|
—
|
|
|
(274
|
)
|
|||||
Net cash flows used for investing activities
|
—
|
|
|
(429
|
)
|
|
(2,333
|
)
|
|
258
|
|
|
(2,504
|
)
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid on Common Shares
|
(862
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(862
|
)
|
|||||
Common Shares repurchased
|
—
|
|
|
—
|
|
|
(1,429
|
)
|
|
—
|
|
|
(1,429
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
699
|
|
|
—
|
|
|
—
|
|
|
699
|
|
|||||
Proceeds from issuance of repurchase agreements
|
—
|
|
|
—
|
|
|
1,978
|
|
|
—
|
|
|
1,978
|
|
|||||
Repayment of long-term debt
|
—
|
|
|
(500
|
)
|
|
(1
|
)
|
|
—
|
|
|
(501
|
)
|
|||||
Repayment of repurchase agreements
|
—
|
|
|
—
|
|
|
(1,977
|
)
|
|
—
|
|
|
(1,977
|
)
|
|||||
Proceeds from share-based compensation plans, including windfall tax benefits
|
—
|
|
|
—
|
|
|
127
|
|
|
—
|
|
|
127
|
|
|||||
Advances (to) from affiliates
|
260
|
|
|
(298
|
)
|
|
38
|
|
|
—
|
|
|
—
|
|
|||||
Dividends to parent company
|
—
|
|
|
—
|
|
|
(674
|
)
|
|
674
|
|
|
—
|
|
|||||
Capital contribution
|
—
|
|
|
—
|
|
|
258
|
|
|
(258
|
)
|
|
—
|
|
|||||
Net proceeds from affiliated notional cash pooling programs
(1)
|
61
|
|
|
309
|
|
|
—
|
|
|
(370
|
)
|
|
—
|
|
|||||
Policyholder contract deposits
|
—
|
|
|
—
|
|
|
366
|
|
|
—
|
|
|
366
|
|
|||||
Policyholder contract withdrawals
|
—
|
|
|
—
|
|
|
(172
|
)
|
|
—
|
|
|
(172
|
)
|
|||||
Other
|
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Net cash flows (used for) from financing activities
|
(541
|
)
|
|
204
|
|
|
(1,486
|
)
|
|
46
|
|
|
(1,777
|
)
|
|||||
Effect of foreign currency rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(139
|
)
|
|
—
|
|
|
(139
|
)
|
|||||
Net (decrease) increase in cash
|
—
|
|
|
(15
|
)
|
|
461
|
|
|
(370
|
)
|
|
76
|
|
|||||
Cash – beginning of year
(1)
|
—
|
|
|
16
|
|
|
748
|
|
|
(185
|
)
|
|
579
|
|
|||||
Cash – end of year
(1)
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1,209
|
|
|
$
|
(555
|
)
|
|
$
|
655
|
|
(1)
|
Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note
1
f) for additional information. At December 31, 2014 and 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
|
Three Months Ended
|
|
|||||||||||||
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
||||
(in millions of U.S. dollars, except per share data)
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
||||
Net premiums earned
|
$
|
6,597
|
|
|
$
|
7,405
|
|
|
$
|
7,688
|
|
|
$
|
7,059
|
|
Net investment income
|
674
|
|
|
708
|
|
|
739
|
|
|
744
|
|
||||
Net realized gains (losses) including OTTI
|
(394
|
)
|
|
(216
|
)
|
|
100
|
|
|
365
|
|
||||
Total revenues
|
$
|
6,877
|
|
|
$
|
7,897
|
|
|
$
|
8,527
|
|
|
$
|
8,168
|
|
Losses and loss expenses
|
$
|
3,674
|
|
|
$
|
4,254
|
|
|
$
|
4,269
|
|
|
$
|
3,855
|
|
Policy benefits
|
$
|
126
|
|
|
$
|
146
|
|
|
$
|
155
|
|
|
$
|
161
|
|
Net income
|
$
|
439
|
|
|
$
|
726
|
|
|
$
|
1,360
|
|
|
$
|
1,610
|
|
Basic earnings per share
|
$
|
0.98
|
|
|
$
|
1.55
|
|
|
$
|
2.90
|
|
|
$
|
3.44
|
|
Diluted earnings per share
|
$
|
0.97
|
|
|
$
|
1.54
|
|
|
$
|
2.88
|
|
|
$
|
3.41
|
|
|
Three Months Ended
|
|
|||||||||||||
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
||||
(in millions of U.S. dollars, except per share data)
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
||||
Net premiums earned
|
$
|
3,927
|
|
|
$
|
4,360
|
|
|
$
|
4,719
|
|
|
$
|
4,207
|
|
Net investment income
|
551
|
|
|
562
|
|
|
549
|
|
|
532
|
|
||||
Net realized gains (losses) including OTTI
|
(89
|
)
|
|
126
|
|
|
(397
|
)
|
|
(60
|
)
|
||||
Total revenues
|
$
|
4,389
|
|
|
$
|
5,048
|
|
|
$
|
4,871
|
|
|
$
|
4,679
|
|
Losses and loss expenses
|
$
|
2,122
|
|
|
$
|
2,417
|
|
|
$
|
2,643
|
|
|
$
|
2,302
|
|
Policy benefits
|
$
|
142
|
|
|
$
|
153
|
|
|
$
|
89
|
|
|
$
|
159
|
|
Net income
|
$
|
681
|
|
|
$
|
942
|
|
|
$
|
528
|
|
|
$
|
683
|
|
Basic earnings per share
|
$
|
2.08
|
|
|
$
|
2.89
|
|
|
$
|
1.63
|
|
|
$
|
2.10
|
|
Diluted earnings per share
|
$
|
2.05
|
|
|
$
|
2.86
|
|
|
$
|
1.62
|
|
|
$
|
2.08
|
|
December 31, 2016
(in millions of U.S. dollars)
|
Cost or
Amortized Cost
|
|
|
Fair Value
|
|
|
Amount at Which Shown in the Balance Sheet
|
|
|||
Fixed maturities available for sale
|
|
|
|
|
|
||||||
U.S. Treasury and agency
|
$
|
2,883
|
|
|
$
|
2,870
|
|
|
$
|
2,870
|
|
Foreign
|
20,929
|
|
|
21,440
|
|
|
21,440
|
|
|||
Corporate securities
|
23,736
|
|
|
24,149
|
|
|
24,149
|
|
|||
Mortgage-backed securities
|
14,066
|
|
|
14,007
|
|
|
14,007
|
|
|||
States, municipalities, and political subdivisions
|
17,922
|
|
|
17,649
|
|
|
17,649
|
|
|||
Total fixed maturities available for sale
|
79,536
|
|
|
80,115
|
|
|
80,115
|
|
|||
Fixed maturities held to maturity
|
|
|
|
|
|
||||||
U.S. Treasury and agency
|
655
|
|
|
661
|
|
|
655
|
|
|||
Foreign
|
640
|
|
|
667
|
|
|
640
|
|
|||
Corporate securities
|
2,771
|
|
|
2,795
|
|
|
2,771
|
|
|||
Mortgage-backed securities
|
1,393
|
|
|
1,428
|
|
|
1,393
|
|
|||
States, municipalities, and political subdivisions
|
5,185
|
|
|
5,119
|
|
|
5,185
|
|
|||
Total fixed maturities held to maturity
|
10,644
|
|
|
10,670
|
|
|
10,644
|
|
|||
Equity securities
|
|
|
|
|
|
||||||
Industrial, miscellaneous, and all other
|
706
|
|
|
814
|
|
|
814
|
|
|||
Short-term investments
|
3,002
|
|
|
3,002
|
|
|
3,002
|
|
|||
Other investments
|
4,270
|
|
|
4,519
|
|
|
4,519
|
|
|||
Total investments - other than investments in related parties
|
$
|
98,158
|
|
|
$
|
99,120
|
|
|
$
|
99,094
|
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
||
Assets
|
|
|
|
||||
Investments in subsidiaries and affiliates on equity basis
|
$
|
38,408
|
|
|
$
|
29,612
|
|
Short-term investments
|
2
|
|
|
1
|
|
||
Other investments, at cost
|
25
|
|
|
27
|
|
||
Total investments
|
38,435
|
|
|
29,640
|
|
||
Cash
|
1
|
|
|
1
|
|
||
Due from subsidiaries and affiliates, net
|
10,482
|
|
|
644
|
|
||
Other assets
|
3
|
|
|
8
|
|
||
Total assets
|
$
|
48,921
|
|
|
$
|
30,293
|
|
Liabilities
|
|
|
|
||||
Affiliated notional cash pooling programs
(1)
|
$
|
363
|
|
|
$
|
882
|
|
Accounts payable, accrued expenses, and other liabilities
|
283
|
|
|
276
|
|
||
Total liabilities
|
646
|
|
|
1,158
|
|
||
Shareholders' equity
|
|
|
|
||||
Common Shares
|
11,121
|
|
|
7,833
|
|
||
Common Shares in treasury
|
(1,480
|
)
|
|
(1,922
|
)
|
||
Additional paid-in capital
|
15,335
|
|
|
4,481
|
|
||
Retained earnings
|
23,613
|
|
|
19,478
|
|
||
Accumulated other comprehensive income (loss)
|
(314
|
)
|
|
(735
|
)
|
||
Total shareholders' equity
|
48,275
|
|
|
29,135
|
|
||
Total liabilities and shareholders' equity
|
$
|
48,921
|
|
|
$
|
30,293
|
|
|
|
|
|
||||
(1)
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information.
|
|||||||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Revenues
|
|
|
|
|
|
||||||
Investment income, including interest income
|
$
|
356
|
|
|
$
|
35
|
|
|
$
|
37
|
|
Equity in net income of subsidiaries and affiliates
|
3,901
|
|
|
2,673
|
|
|
2,707
|
|
|||
|
4,257
|
|
|
2,708
|
|
|
2,744
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Administrative and other (income) expense
|
101
|
|
|
(142
|
)
|
|
(123
|
)
|
|||
Income tax expense
|
21
|
|
|
16
|
|
|
14
|
|
|||
|
122
|
|
|
(126
|
)
|
|
(109
|
)
|
|||
Net income
|
$
|
4,135
|
|
|
$
|
2,834
|
|
|
$
|
2,853
|
|
Comprehensive income
|
$
|
4,556
|
|
|
$
|
908
|
|
|
$
|
2,892
|
|
|
|
|
|
|
|
||||||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||
Net cash flows from operating activities
(1)
|
$
|
3,618
|
|
|
$
|
3,125
|
|
|
$
|
541
|
|
Cash flows from investing activities
|
|
|
|
|
|
||||||
Capital contribution
|
(2,330
|
)
|
|
(2,670
|
)
|
|
—
|
|
|||
Net cash flows used for investing activities
|
(2,330
|
)
|
|
(2,670
|
)
|
|
—
|
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Dividends paid on Common Shares
|
(1,173
|
)
|
|
(862
|
)
|
|
(862
|
)
|
|||
Advances (to) from affiliates
|
404
|
|
|
(228
|
)
|
|
260
|
|
|||
Net proceeds from (payments to) affiliated notional cash pooling programs
(2)
|
(519
|
)
|
|
636
|
|
|
61
|
|
|||
Net cash flows used for financing activities
|
(1,288
|
)
|
|
(454
|
)
|
|
(541
|
)
|
|||
Net increase in cash
|
—
|
|
|
1
|
|
|
—
|
|
|||
Cash – beginning of year
|
1
|
|
|
—
|
|
|
—
|
|
|||
Cash – end of year
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
(1)
Includes cash dividends received from subsidiaries of $3.4 billion, $2.9 billion, and $300 million in 2016, 2015, and 2014, respectively.
|
|||||||||||
(2)
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information.
|
|||||||||||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.
|
Premiums Earned
|
|
|
|
|
|
|
|
||||||||||||
For the years ended December 31, 2016, 2015, and 2014 (in millions of U.S. dollars, except for percentages)
|
|
Direct Amount
|
|
|
Ceded To Other Companies
|
|
|
Assumed From Other Companies
|
|
|
Net Amount
|
|
|
Percentage of Amount Assumed to Net
|
|
||||
2016
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and Casualty
|
|
$
|
26,919
|
|
|
$
|
6,407
|
|
|
$
|
3,284
|
|
|
$
|
23,796
|
|
|
14
|
%
|
Accident and Health
|
|
4,047
|
|
|
315
|
|
|
219
|
|
|
3,951
|
|
|
6
|
%
|
||||
Life
|
|
845
|
|
|
84
|
|
|
241
|
|
|
1,002
|
|
|
24
|
%
|
||||
Total
|
|
$
|
31,811
|
|
|
$
|
6,806
|
|
|
$
|
3,744
|
|
|
$
|
28,749
|
|
|
13
|
%
|
2015
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and Casualty
|
|
$
|
14,895
|
|
|
$
|
5,373
|
|
|
$
|
3,259
|
|
|
$
|
12,781
|
|
|
25
|
%
|
Accident and Health
|
|
3,684
|
|
|
351
|
|
|
168
|
|
|
3,501
|
|
|
5
|
%
|
||||
Life
|
|
776
|
|
|
94
|
|
|
249
|
|
|
931
|
|
|
27
|
%
|
||||
Total
|
|
$
|
19,355
|
|
|
$
|
5,818
|
|
|
$
|
3,676
|
|
|
$
|
17,213
|
|
|
21
|
%
|
2014
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and Casualty
|
|
$
|
14,784
|
|
|
$
|
4,940
|
|
|
$
|
2,923
|
|
|
$
|
12,767
|
|
|
23
|
%
|
Accident and Health
|
|
3,971
|
|
|
434
|
|
|
141
|
|
|
3,678
|
|
|
4
|
%
|
||||
Life
|
|
800
|
|
|
91
|
|
|
272
|
|
|
981
|
|
|
28
|
%
|
||||
Total
|
|
$
|
19,555
|
|
|
$
|
5,465
|
|
|
$
|
3,336
|
|
|
$
|
17,426
|
|
|
19
|
%
|
As of and for the years ended December 31, 2016, 2015, and 2014 (in millions of U.S. dollars)
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
|
Deferred Policy Acquisition Costs
|
|
|
Net Reserves for Unpaid Losses and Loss Expenses
|
|
|
Unearned Premiums
|
|
|
Net Premiums Earned
|
|
|
Net Investment Income
|
|
Net Losses and Loss Expenses Incurred Related to
|
|
|
Amortization of Deferred Policy Acquisition Costs
(1)
|
|
|
Net Paid Losses and Loss Expenses
|
|
|
Net Premiums Written
|
|
|||||||||||||||
|
|
|
|
|
|
|
Current Year
|
|
|
Prior Year
|
|
|
|
|
|||||||||||||||||||||||||||
2016
|
|
$
|
3,537
|
|
|
$
|
47,832
|
|
|
$
|
14,779
|
|
|
$
|
27,747
|
|
|
$
|
2,656
|
|
|
$
|
17,256
|
|
|
$
|
(1,204
|
)
|
|
$
|
5,654
|
|
|
$
|
15,715
|
|
|
$
|
27,074
|
|
|
2015
|
|
$
|
2,219
|
|
|
$
|
26,562
|
|
|
$
|
8,439
|
|
|
$
|
16,282
|
|
|
$
|
2,007
|
|
|
$
|
10,030
|
|
|
$
|
(546
|
)
|
|
$
|
2,692
|
|
|
$
|
9,665
|
|
|
$
|
16,734
|
|
|
2014
|
|
$
|
2,057
|
|
|
$
|
27,008
|
|
|
$
|
8,222
|
|
|
$
|
16,445
|
|
|
$
|
2,071
|
|
|
$
|
10,176
|
|
|
$
|
(527
|
)
|
|
$
|
2,805
|
|
|
$
|
9,235
|
|
|
$
|
16,787
|
|
•
|
No individual or legal entity may control voting rights with respect to 10% or more of the Company’s registered share capital (see article 8(c) and (d) articles of association of the Company).
|
•
|
Registered Shares exceeding the limit of 10% shall be entered in the Share Register as shares without voting rights (see article 8(c) and (d) Articles of Association).
|
•
|
When a shareholder does not agree to confirm, upon request, that it holds the shares in its own name and its own account, the Board of Directors shall cancel relevant Registered Shares or register them without voting rights, (see article 8(e) Articles of Association). Also, the registration of nominees is subject to disclosure of certain information about beneficial owners (see article 8(f) Articles of Association) (such confirmations and disclosures collectively the "
Beneficial Ownership Confirmations
").
|
•
|
The Board of Directors may in special cases approve exceptions to the above considerations (see article 8(g) Articles of Association).
|
•
|
The Company is listed on the New York Stock Exchange. US securities laws provide for extensive disclosure obligations for beneficial owners of 5% or more of the Company's shares. These disclosure obligations enable the Board of Directors to monitor the 10% voting rights limit in the Company's Articles of Association.
|
•
|
To the benefit of shareholders and the market for the Company’s stock, services operated by clearing organizations minimize the physical handling of securities certificates and foster efficient securities trading and settlement by effecting transfer of interests by means of computerized book entries. In order to provide such services, the securities subject to the services are transferred to, and held by, nominees of such clearing organizations ("
Clearing Nominees
") (e.g. Cede & Co. as nominee for DTC, which facilitates the vast majority of our stock market trading).
|
i)
|
The entry into the Share Register as shareholder with or without voting rights generally requires that the relevant shareholder duly submits an application when it first acquires Registered Shares ("
Initial Application
"). Unless revoked or otherwise required by the Board of Directors, the Initial Application will also be valid for subsequent acquisitions of Registered Shares by the same shareholder; and
|
ii)
|
The entry in the Share Register of Registered Shares with voting rights requires the approval of the Board of Directors (article 8(b) Articles of Association). Non-recognized acquirers shall be entered in the Share Register as shareholders without voting rights. The corresponding shares shall be considered as not represented at the general meeting of shareholders.
|
(i)
|
directs that all acquirers of shares (the transfer of which have been duly recorded on the books of the Company's transfer agent) shall be registered as shareholders with voting rights without requiring an additional application, provided that the Registered Shares held (or, to the extent known, otherwise controlled) by such acquirers (or, to the extent known, the respective beneficial owners) do not exceed 10% of the registered share capital recorded in the Commercial Register; and
|
(ii)
|
exempts applicants that seek registration as shareholders with voting rights from the requirement to declare that they have acquired their Registered Shares in their own name and their own account, unless specifically requested in which case the shareholder shall submit an application with the details set out in article 8(a) Articles of Association.
|
(i)
|
directs that eligible Clearing Nominees are exempted from the registration limits according to articles 8(c) and (d) Articles of Association as well as from the 10% limit required under section B.1 so long as no beneficial owner holding through an eligible Clearing Nominee exceeds the 10% limit as defined. If the Board of Directors has a reasonable basis to believe a beneficial owner holding through such Clearing Nominee exceeds the 10% limit, then it may require the beneficial owner and its nominees (other than the Clearing Nominee) to submit an application with the details set out in article 8(a) Articles of Association and take the actions permitted in article 8(c)-(g);
|
(ii)
|
directs that eligible Clearing Nominees shall be registered as shareholders with voting rights with regard to shares acquired in their capacity as Clearing Nominee without being required to file an application for voting rights nor disclose to the Company the names, addresses and share holdings of each person for whom it is holding shares, and further being entitled to rely on the exemptions under section B.1; and
|
(iii)
|
determines that Cede & Co., the nominee of the Depository Trust Company, and any successor, is an eligible Clearing Nominee, and authorizes the Company's General Counsel to determine, in his or her discretion, the eligibility of other Clearing Nominees for purposes of this section.
|
•
|
Annual Retainer Fee of $290,000. Paid $170,000 in restricted stock and $120,000 cash or, at the election of the director, $290,000 in restricted stock. Includes expectation of service on up to two committees (not counting service on Executive Committee). No fees are payable for regular board or committee meetings.
|
•
|
Annual premiums for committee chairs and lead director:
|
•
|
Annual premiums for selected committee service (non-chair): None.
|
•
|
Committee chair and lead director service premiums are payable in cash quarterly or, at the election of the director, in restricted stock annually.
|
•
|
Meeting fees for “special” meetings (required to consider transactions or other special circumstances, as determined jointly by the Lead Director and Chairman): $2,000 per telephone meeting, $3,000 for ‘in person’ meetings. Payable in cash quarterly. Meeting fees as described in this paragraph shall be payable as determined by the Nominating & Governance Committee, but in all cases subject to availability, taking into account paid and allocable Retainer Fees and premiums described above, within the annual compensation cap approved by shareholders.
|
•
|
Restricted stock will be awarded at beginning of the plan year (i.e. the date of the Annual General Meeting) and become non-forfeitable at end of the plan year, provided that the grantee has remained a Chubb director continuously during that plan year. Increases shall be paid on a pro-rated basis, based on date of award.
|
(a)
|
The “Participant” is [
Insert Name]
, who is the individual recipient of the Performance Based Restricted Stock Award on the specified Grant Date.
|
(b)
|
The “Grant Date” is [
Insert Date
].
|
(c)
|
The “Commencement Date” is [
Insert Date
].
|
(d)
|
The number of “Covered Performance Shares” is
[Insert Number]
, which is 60%
[75% for Chief Executive Officer][66% for Vice Chairman and COO]
of that portion of the Participant’s annual Long-Term Incentive Award which is granted in the form of restricted shares for the year in which the Grant Date occurs, as reflected in the corporate records and shown in the Record-Keeping System in the Participant’s individual account records.
|
(e)
|
The number of Premium Performance Shares is [
Insert number equal to 65% of the number of Covered Performance Shares]
.
|
(a)
|
If the Cumulative Performance of the Company during the Performance Period is 50 percent or greater than 50 percent, the Restricted Period shall end for any Covered Performance Shares on the later of the three-year anniversary of the Grant Date and the date the Committee certifies that the requisite Cumulative Performance has been achieved during the Performance Period (the date of certification is referred to as the “Certification Date” and the later of the three-year anniversary of the Grant Date and the Certification Date referred to as the “Vesting Date”). If the Cumulative Performance of the Company during the Performance Period is less than 50 percent, the Restricted Period shall end with respect to a number of the Covered Performance Shares determined by multiplying the total number of Covered Performance Shares by the Performance Percentage (as determined below) on the Vesting Date.
|
(b)
|
The term “Performance Percentage” shall mean the applicable Performance Percentage determined based on the achievement of the Cumulative Performance over the Performance Period by Chubb Limited:
|
(c)
|
For the avoidance of doubt, the Restricted Period shall end only on or after the Committee’s certification that the Cumulative Performance for the Performance Period has been satisfied. Any Covered Performance Shares that have not vested as of the end of the Restricted Period shall be forfeited by the Participant as of the Vesting Date.
|
(a)
|
For Covered Performance Shares as to which the Restricted Period has not ended prior to the Date of Termination, the Restricted Period for such Covered Performance Shares shall end upon the Participant’s Date of Termination, and the Covered Performance Shares shall fully vest upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s death.
|
(b)
|
For Covered Performance Shares as to which the Restricted Period has not ended prior to the Date of Termination, the Restricted Period for such Covered Performance Shares shall end upon the Participant’s Date of Termination, and the Covered Performance Shares shall fully vest upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Long-Term Disability.
|
(c)
|
If the Participant's Date of Termination is a Change in Control Date of Termination, then, for Covered Performance Shares, if any, as to which the Restricted Period has not ended prior to the Participant’s Date of Termination, the Restricted Period for such Covered Performance Shares will end on the Change in Control Date of Termination and the Covered Performance Shares shall fully vest upon the 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
|
(a)
|
Except as provided in paragraphs 3, 4 and 5 above, the Participant will be vested in any Covered Performance Shares if the Date of Termination has not occurred prior to the last day of the Restricted Period with respect to those shares and the requirements of paragraph 2 have been satisfied. Upon vesting at the end of such Restricted Period, those shares will be delivered to the Participant free of all restrictions.
|
(b)
|
Except as otherwise determined by the Committee and as provided in paragraphs 3, 4 and 5 above, the Participant shall forfeit any Covered Performance Shares as of the Date of Termination, if such Date of Termination occurs prior to the Vesting Date.
|
(c)
|
Notwithstanding anything to the contrary in any agreement between the Participant and the Company or a Subsidiary, the Participant acknowledges and agrees that the Covered Performance Shares and Premium Performance Shares shall vest (and the Restricted Period shall end) only as provided by, and subject to the terms of, this Performance Based Restricted Stock Award.
|
(a)
|
The Restricted Period shall end on the Vesting Date for the number of the Premium Performance Shares determined by multiplying the number of Premium Performance Shares by the Premium Award Performance Percentage (as determined below).
|
(b)
|
The Premium Award Performance Percentage will be determined in accordance with the following schedule:
|
If the Cumulative Performance of
Chubb Limited during the Performance
Period:
|
The Premium Award
Performance Percentage will be:
|
Does not meet or exceed 50%
|
0%
|
Meets or exceeds 50%, but does not exceed
the 75%
|
0%, as increased to the extent, if any, provided pursuant to the following provisions of this paragraph (b) up to 77%
|
Exceeds 75% and the Total Shareholder Return of Chubb Limited during the Performance Period meets or exceeds the 55
th
percentile of the Total Shareholder Return of the Peer Companies.
|
100%
|
(c)
|
Upon vesting at the end of such Restricted Period, those shares will be delivered to the Participant free of all restrictions. Except as provided in paragraph 3 for a Date of Termination that occurs because of Retirement, the Participant shall not be entitled to vesting of any Premium Performance Shares if the Date of Termination occurs before the Vesting Date for any reason.
|
(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 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 paragraph 13(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)
|
Combined Ratio
. The “Combined Ratio” for a given period is determined as the sum of the loss and loss expense ratio, the policy acquisition cost ratio and the administrative expense ratio in relation to the P& C insurance business. For Chubb the Combined Ratio is determined as the P&C combined ratio disclosed in the 10-K for such period (or the average of the disclosed combined ratios for each year if the period is longer than one year). For Peer Group Companies for purposes of this Agreement, the Combined Ratio is determined as the combined ratio publicly disclosed for such company, on a comparable basis, for such period (or the average of the disclosed combined ratios for each year if the period is longer than one year).
|
(e)
|
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 (d)(i); (iii) solicitation or
|
(f)
|
Cumulative Performance
. The term “Cumulative Performance” means, as to
Chubb
Limited, a percentage equal to the sum of (A) and (B) where (A) equals the First Performance Goal multiplied by seven-tenths (0.70) and where (B) equals the Second Performance Goal multiplied by three-tenths (0.30). For example, if the First Performance Goal equals eighty percent (80%) and the Second Performance goal Equals fifty percent (50%), then the Cumulative Performance would equal seventy-one percent (71%) determined as the sum of (80%*.7) and (50% *.3). The determination of the Cumulative Performance and its parameters is subject to rules established by the Committee within 90 days of the beginning of the Performance Period.
|
(g)
|
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 the 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.
|
(h)
|
Director
. The term “Director” means a member of the Board, who may or may not be an employee of the Company or a Subsidiary.
|
(i)
|
First Performance Goal
. The term “First Performance Goal” for the Performance Period means the achievement by Chubb Limited of growth in tangible book value per common shares outstanding as reported under GAAP during the Performance Period, as compared to the growth in tangible book value per common shares outstanding as reported under GAAP during the same Performance Period by the Peer Companies expressed as a percentile rank as compared to the Peer Group. The determination of the First Performance Goal and its parameters is subject to rules established by the Committee within 90 days of the beginning of the applicable Performance Period. The Committee, in its discretion, may adjust the reported tangible book value for Chubb Limited or the Peer Companies for the Performance Period; provided, however, that no such adjustment may result in an increase in the number of Covered Performance Shares and Premium Performance Shares which are earned and vested at the end of the Performance Period over the number of Covered Performance Shares and Premium Performance Shares that would have been earned and vested had the reported tangible book value for either Chubb Limited or the Peer Companies not been adjusted.
|
(j)
|
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 during the Restrictive Covenant Period pursuant to this Agreement and that the Participant has sold or otherwise transferred prior to the date of repayment required pursuant to subparagraph 21(b). For purposes of this definition, pre-tax proceeds for any shares of Stock that were transferred by the Participant in a transaction other than a sale on the New York Stock Exchange means the Fair Market Value of such shares on the New York Stock Exchange as of the date of such transaction.
|
(k)
|
Forfeiture Shares
. The term “Forfeiture Shares” means the number of shares of Stock that became vested during the Restrictive Covenant Period pursuant to this Agreement and that remain held by
|
(l)
|
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:
|
(m)
|
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 Subsidiary; or if the Participant does not participate in a long-term disability plan sponsored by the Company or a Subsidiary, 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.
|
(n)
|
Peer Companies
. The term “Peer Companies” means the companies which are in the
Chubb
Financial Performance Peer Group as determined by the Committee within 90 days of the beginning of the Performance Period and for which financial information is available for all year(s) in the Performance Period.
|
(o)
|
Performance Period
. The term “Performance Period” shall mean the three-year period beginning on th
e Com
mencement Date and ending on the third anniversary of the Commencement Date.
|
(p)
|
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.
|
(q)
|
Restrictive Covenant Perio
d
. T
he term “Restrictive Covenant Period” means the twenty-four month period following a Date of Termination due to a Qualifying Termination or a Retirement.
|
(r)
|
Retirement
. The term “Retirement” means the Participant’s Date of Termination that occurs on or after the Participant has both completed at least ten years of service with the Company or a Subsidiary and attained at least age 62; provided, however, that a Date of Termination will
not b
e treated as a Retirement unless the Participant
(i) has terminated
employment in good standing with the Company or a Subsidiary, and (ii) executes an agreement and release as required by the Company which will include, without limitation, a general release, and non-competition and non-
|
(s)
|
Second Performance Goal
. The term “Second Performance Goal” for the Performance Period means the achievement by Chubb Limited of its Combined Ratio during the Performance Period, as compared to the Combined Ratio reported publicly during the same Performance Period by the Peer Companies expressed as a percentile rank as compared to the Peer Group. The determination of the Second Performance Goal and its parameters is subject to rules established by the Committee within 90 days of the beginning of the applicable Performance Period. The Committee, in its discretion, may adjust the Combined Ratio for Chubb Limited or the combined ratio reported publicly for the Peer Companies for the Performance Period; provided, however, that no such adjustment may result in an increase in the number of Covered Performance Shares and Premium Performance Shares which are earned and vested at the end of the Performance Period over the number of Covered Performance Shares and Premium Performance Shares that would have been earned and vested had the Combined Ratio for either Chubb Limited or the Peer Companies not been adjusted.
|
(t)
|
Total Shareholder Return
. The term “Total Shareholder Return” means
the total return per share of stock to the Company’s shareholders or the shareholders of the applicable Peer Company, inclusive of dividends paid (regardless of whether paid in cash or property, which dividends shall be deemed reinvested in the stock), during the Performance Period. The value of the applicable company’s stock at the beginning and end of the Performance Period shall be established based on the average of the averages of the high and low trading prices of the applicable stock on the principal exchange on which the stock trades for the 15 trading days occurring immediately prior to the beginning or end of the Performance Period, as the case may be. The Committee shall make or shall cause to be made such appropriate adjustments to the calculation of total shareholder return for such entity (including adjusting the average at the beginning of the Performance Period) as shall be necessary or appropriate to avoid an artificial increase or decrease in such return as a result of a stock split (including a reverse stock split), recapitalization, or other similar event affecting the capital structure of such entity that does not involve the issuance of the entity’s securities in exchange for money, property, or other consideration.
|
(a)
|
The “Participant” is [
Insert Name]
, who is the individual recipient of the Performance Based Restricted Stock Award on the specified Grant Date.
|
(b)
|
The “Grant Date” is [
Insert Date
].
|
(c)
|
The “Commencement Date” is [
Insert Date
].
|
(d)
|
The number of “Covered Performance Shares” is
[Insert Number]
, which is 60% of that portion of the Participant’s annual Long-Term Incentive Award which is granted in the form of restricted shares for the year in which the Grant Date occurs, as reflected in the corporate records and shown in the Record-Keeping System in the Participant’s individual account records.
|
(e)
|
The number of Premium Performance Shares is [
Insert number equal to 65% of the number of Covered Performance Shares]
.
|
(a)
|
If the Cumulative Performance of the Company during the Performance Period is 50 percent or greater than 50 percent, the Restricted Period shall end for any Covered Performance Shares on the later of the three-year anniversary of the Grant Date and the date the Committee certifies that the requisite Cumulative Performance has been achieved during the Performance Period (the date of certification is referred to as the “Certification Date” and the later of the three-year anniversary of the Grant Date and the Certification Date referred to as the “Vesting Date”). If the Cumulative Performance of the Company during the Performance Period is less than 50 percent, the Restricted Period shall end with respect to a number of the Covered Performance Shares determined by multiplying the total number of Covered Performance Shares by the Performance Percentage (as determined below) on the Vesting Date.
|
(b)
|
The term “Performance Percentage” shall mean the applicable Performance Percentage determined based on the achievement of the Cumulative Performance over the Performance Period by Chubb Limited:
|
(c)
|
For the avoidance of doubt, the Restricted Period shall end only on or after the Committee’s certification that the Cumulative Performance for the Performance Period has been satisfied. Any Covered Performance Shares that have not vested as of the end of the Restricted Period shall be forfeited by the Participant as of the Vesting Date.
|
(a)
|
For Covered Performance Shares as to which the Restricted Period has not ended prior to the Date of Termination, the Restricted Period for such Covered Performance Shares shall end upon the Participant’s Date of Termination, and the Covered Performance Shares shall fully vest upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s death.
|
(b)
|
For Covered Performance Shares as to which the Restricted Period has not ended prior to the Date of Termination, the Restricted Period for such Covered Performance Shares shall end upon the Participant’s Date of Termination, and the Covered Performance Shares shall fully vest upon the Date of Termination, if the Date of Termination occurs by reason of the Participant’s Long-Term Disability.
|
(c)
|
For Covered Performance Shares as to which the Restricted Period has not ended prior to the date of a Change in Control, the Restricted Period for such Covered Performance Shares shall end upon a Change in Control, and the Covered Performance Shares shall vest upon the Change in Control, provided that such Change in Control occurs on or before the Date of Termination.
|
(a)
|
Except as provided in paragraphs 3 and 4 above, the Participant will be vested in any Covered Performance Shares if the Date of Termination has not occurred prior to the last day of the Restricted Period with respect to those shares and the requirements of paragraph 2 have been satisfied. Upon vesting at the end of such Restricted Period, those shares will be delivered to the Participant free of all restrictions.
|
(b)
|
Except as otherwise determined by the Committee and as provided in paragraphs 3 and 4 above, the Participant shall forfeit any Covered Performance Shares as of the Date of Termination, if such Date of Termination occurs prior to the Vesting Date.
|
(c)
|
Notwithstanding anything to the contrary in any employment agreement between the Participant and the Company or a Subsidiary or any severance plan maintained by the Company or a Subsidiary in which the Participant participates, the Participate acknowledges and agrees that the Covered Performance Shares and Premium Performance Shares shall vest (and the Restricted Period shall end) only as provided by, and subject to the terms of, this Performance Based Restricted Stock Award.
|
(a)
|
The Restricted Period shall end on the Vesting Date for the number of the Premium Performance Shares determined by multiplying the number of Premium Performance Shares by the Premium Award Performance Percentage (as determined below).
|
(b)
|
The Premium Award Performance Percentage will be determined in accordance with the following schedule:
|
If the Cumulative Performance of
Chubb Limited during the Performance
Period:
|
The Premium Award
Performance Percentage will be:
|
Does not meet or exceed 50%
|
0%
|
Meets or exceeds 50%, but does not exceed
the 75%
|
0%, as increased to the extent, if any, provided pursuant to the following provisions of this paragraph (b) up to 77%
|
Exceeds 75% and the Total Shareholder Return of Chubb Limited during the Performance Period meets or exceeds the 55
th
percentile of the Total Shareholder Return of the Peer Companies.
|
100%
|
(c)
|
Upon vesting at the end of such Restricted Period, those shares will be delivered to the Participant free of all restrictions. Except as provided in paragraph 3 for a Date of Termination that occurs
|
(a)
|
Change in Control
. The term “Change in Control” shall be defined as set forth in the Plan.
|
(b)
|
Combined Ratio
. The “Combined Ratio” for a given period is determined as the sum of the loss and loss expense ratio, the policy acquisition cost ratio and the administrative expense ratio in relation to the P& C insurance business. For Chubb the Combined Ratio is determined as the P&C combined ratio disclosed in the 10-K for such period (or the average of the disclosed combined ratios for each year if the period is longer than one year). For Peer Group Companies for purposes of this Agreement, the Combined Ratio is determined as the combined ratio publicly disclosed for such company, on a comparable basis, for such period (or the average of the disclosed combined ratios for each year if the period is longer than one year).
|
(c)
|
Cumulative Performance
. The term “Cumulative Performance” means, as to
Chubb
Limited, a percentage equal to the sum of (A) and (B) where (A) equals the First Performance Goal multiplied by seven-tenths (0.70) and where (B) equals the Second Performance Goal multiplied by three-tenths (0.30). For example, if the First Performance Goal equals eighty percent (80%) and the Second Performance goal Equals fifty percent (50%), then the Cumulative Performance would equal seventy-one percent (71%) determined as the sum of (80%*.7) and (50% *.3). The determination of the Cumulative Performance and its parameters is subject to rules established by the Committee within 90 days of the beginning of the Performance Period.
|
(d)
|
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 the 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.
|
(e)
|
Director
. The term “Director” means a member of the Board, who may or may not be an employee of the Company or a Subsidiary.
|
(f)
|
First Performance Goal
. The term “First Performance Goal” for the Performance Period means the achievement by Chubb Limited of growth in tangible book value per common shares outstanding as reported under GAAP during the Performance Period, as compared to the growth in tangible book value per common shares outstanding as reported under GAAP during the same Performance Period by the Peer Companies expressed as a percentile rank as compared to the Peer Group. The determination of the First Performance Goal and its parameters is subject to rules established by the Committee within 90 days of the beginning of the applicable Performance Period. The Committee, in its discretion, may adjust the reported tangible book value for Chubb Limited or the Peer Companies for the Performance Period; provided, however, that no such adjustment may result in an increase in the number of Covered Performance Shares and Premium Performance Shares which are earned and vested at the end of the Performance Period over the number of Covered Performance Shares and Premium Performance Shares that would have been earned and vested had the reported tangible book value for either Chubb Limited or the Peer Companies not been adjusted.
|
(g)
|
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
|
(h)
|
Peer Companies
. The term “Peer Companies” means the companies which are in the
Chubb
Financial Performance Peer Group as determined by the Committee within 90 days of the beginning of the Performance Period and for which financial information is available for all year(s) in the Performance Period.
|
(i)
|
Performance Period
. The term “Performance Period” shall mean the three-year period beginning on th
e Com
mencement Date and ending on the third anniversary of the Commencement Date.
|
(j)
|
Retirement
. The term “Retirement” means the Participant’s Date of Termination that occurs on or after the Participant has both completed at least ten years of service with the Company or a Subsidiary and attained at least age 62; provided, however, that a Date of Termination will
not b
e treated as a Retirement unless the Participant (i) has terminated employment in good standing with the Company or a Subsidiary, and (ii) 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. A Participant shall be deemed to have executed a release as described in clause (ii) above only if such release is returned by such time as is established by the Company; provided that to the extent benefits provided pursuant to the Plan would be considered to be provided under a nonqualified deferred compensation plan as that term is defined in Treas. Reg. §1.409A-1, such benefits shall be paid to the Participant only if the release is returned in time to permit the distribution of the benefits to satisfy the requirements of Section 409A of the Internal Revenue Code with respect to the time of payment.
|
(k)
|
Second Performance Goal
. The term “Second Performance Goal” for the Performance Period means the achievement by Chubb Limited of its Combined Ratio during the Performance Period, as compared to the Combined Ratio reported publicly during the same Performance Period by the Peer Companies expressed as a percentile rank as compared to the Peer Group. The determination of the Second Performance Goal and its parameters is subject to rules established by the Committee within 90 days of the beginning of the applicable Performance Period. The Committee, in its discretion, may adjust the Combined Ratio for Chubb Limited or the combined ratio reported publicly for the Peer Companies for the Performance Period; provided, however, that no such adjustment may result in an increase in the number of Covered Performance Shares and Premium Performance Shares which are earned and vested at the end of the Performance Period over the number of Covered Performance Shares and Premium Performance Shares that would have been earned and vested had the Combined Ratio for either Chubb Limited or the Peer Companies not been adjusted.
|
(l)
|
Total Shareholder Return
. The term “Total Shareholder Return” means
the total return per share of stock to the Company’s shareholders or the shareholders of the applicable Peer Company, inclusive of dividends paid (regardless of whether paid in cash or property, which dividends shall be deemed reinvested in the stock), during the Performance Period. The value of the applicable company’s stock at the beginning and end of the Performance Period shall be established based on the average of the averages of the high and low trading prices of the applicable stock on the principal exchange on which the stock trades for the 15 trading days occurring immediately prior to the beginning or end of the Performance Period, as the case may be. The Committee shall make or shall cause to be made such appropriate adjustments to the calculation of total shareholder return for such entity (including adjusting the average at the beginning of the Performance Period) as shall be necessary or appropriate to avoid an artificial increase or decrease in such return as a result of a stock split (including a reverse stock split), recapitalization, or other similar event
|
|
Years Ended December 31
|
||||||||||||||||||
(in millions of U.S. dollars, except ratios)
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|||||
Net income
|
$
|
4,135
|
|
|
$
|
2,834
|
|
|
$
|
2,853
|
|
|
$
|
3,758
|
|
|
$
|
2,706
|
|
Add:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for income taxes
(1)
|
815
|
|
|
462
|
|
|
634
|
|
|
480
|
|
|
270
|
|
|||||
Fixed charges
|
675
|
|
|
342
|
|
|
322
|
|
|
318
|
|
|
287
|
|
|||||
Earnings for computation
|
$
|
5,625
|
|
|
$
|
3,638
|
|
|
$
|
3,809
|
|
|
$
|
4,556
|
|
|
$
|
3,263
|
|
Fixed charges
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
(1) (2)
|
$
|
605
|
|
|
$
|
300
|
|
|
$
|
280
|
|
|
$
|
275
|
|
|
$
|
250
|
|
Portion of rental expense deemed to be interest
|
70
|
|
|
42
|
|
|
42
|
|
|
43
|
|
|
37
|
|
|||||
Total fixed charges
|
$
|
675
|
|
|
$
|
342
|
|
|
$
|
322
|
|
|
$
|
318
|
|
|
$
|
287
|
|
Ratio of earnings to fixed charges
|
8.3
|
|
|
10.6
|
|
|
11.8
|
|
|
14.4
|
|
|
11.4
|
|
(1)
|
Chubb Limited recognizes accruals for interest and penalties, if any, related to unrecognized tax benefits in income tax expense (i.e., excluded from interest expense).
|
(2)
|
2016 includes a $48 million benefit related to amortization of the purchase accounting fair value adjustment to long-term debt assumed in connection with the Chubb Corp acquisition.
|
Exhibit 21.1
|
|
Set forth below are subsidiaries of Chubb and their respective jurisdiction of ownership and percentage ownership, in each case as of December 31, 2016. Any legal entity name changes occurring subsequent to December 31, 2016 through the date of this filing have been reflected below. Each of the named subsidiaries is not necessarily a significant subsidiary as defined in Rule 1-02(w) of Regulation S-X, and Chubb has several additional subsidiaries not named below. The unnamed subsidiaries, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary at the end of the year covered by this report.
|
Name
|
Jurisdiction of Organization
|
Percentage
Ownership
|
Chubb Limited
|
Switzerland
|
Publicly held
|
Chubb Insurance (Switzerland) Limited
|
Switzerland
|
100%
|
Chubb Reinsurance (Switzerland) Limited
|
Switzerland
|
100%
|
Chubb Group Management and Holdings Ltd.
|
Bermuda
|
100%
|
Chubb Bermuda Insurance Ltd.
|
Bermuda
|
100%
|
Paget Reinsurance Ltd.
|
Bermuda
|
100%
|
ACE Capital Title Reinsurance Company
|
USA
(New York) |
100%
|
Green & Grey Financial Solutions International, Ltd.
|
Bermuda
|
100%
|
Corporate Officers & Directors Assurance Ltd.
|
Bermuda
|
100%
|
Oasis Real Estate Company Ltd.
|
Bermuda
|
100%
|
Sovereign Risk Insurance Limited
|
Bermuda
|
100%
|
Sovereign Risk Insurance (Dubai) Limited
|
UAE (Dubai)
|
100%
|
Chubb Realty Holdings Limited
|
Bermuda
|
100%
|
Chubb Market Company Limited
|
England & Wales
|
100%
|
Chubb Group Holdings Limited
|
England & Wales
|
100%
|
Chubb Tarquin
|
England & Wales
|
100%
|
Chubb Capital V Limited
|
England & Wales
|
100%
|
Chubb Leadenhall Limited
|
England & Wales
|
100%
|
ACE Underwriting Agencies Limited
|
England & Wales
|
100%
|
Chubb London Group Limited
|
England & Wales
|
100%
|
Chubb Capital I Limited
|
England & Wales
|
100%
|
Chubb Capital III Limited
|
England & Wales
|
100%
|
Chubb Capital IV Limited
|
England & Wales
|
100%
|
Chubb London Holdings Limited
|
England & Wales
|
100%
|
Chubb Capital II Limited
|
England & Wales
|
100%
|
Chubb London Investments Limited
|
England & Wales
|
100%
|
Chubb European Group Limited
|
England & Wales
|
100%
|
Chubb London Limited
|
England & Wales
|
100%
|
Chubb Underwriting Agencies Limited
|
England & Wales
|
100%
|
Chubb London Services Limited
|
England & Wales
|
100%
|
Chubb Capital VI Limited
|
England & Wales
|
100%
|
Chubb Intermediaries Bermuda Ltd
|
Bermuda
|
100%
|
Chubb Services Limited
|
Cayman Islands
|
100%
|
Oasis Insurance Services Ltd.
|
Bermuda
|
100%
|
Chubb Tempest Life Reinsurance Ltd
|
Bermuda
|
100%
|
ACE Europe Life Limited
|
England & Wales
|
100%
|
Chubb Tempest Reinsurance Ltd
|
Bermuda
|
100%
|
ACE Tempest Re Escritório de Representação no Brasil Ltda.
|
Brazil
|
100%
|
ABR Reinsurance Capital Holdings Ltd.
|
Bermuda
|
11.26%
|
Oasis Investments Limited
|
Bermuda
|
67%
33% (Chubb Bermuda Insurance Ltd.) |
Oasis Investments 2 Ltd.
|
Bermuda
|
67%
33% (Chubb Bermuda Insurance Ltd.) |
Chubb Group Holdings Inc.
|
USA (Delaware)
|
100%
|
Chubb (CR) Holdings
|
England & Wales
|
100%
|
Chubb Capital VII Limited
|
England & Wales
|
100%
|
Chubb (RGB) Holdings Limited
|
England & Wales
|
100%
|
Chubb (CIDR) Limited
|
England & Wales
|
100%
|
Ridge Underwriting Agencies Limited
|
England & Wales
|
100%
|
Chubb Asset Management Inc.
|
USA (Delaware)
|
100%
|
ACE Life Insurance Company
|
USA (Connecticut)
|
100%
|
Chubb INA Holdings Inc.
|
USA (Delaware)
|
80%
20% (Chubb Limited) |
Chubb Atlantic Indemnity Ltd.
|
Bermuda
|
100%
|
DHC Corporation
|
USA (Delaware)
|
100%
|
Chubb do Brasil Companhia de Seguros
|
Brazil
|
99.999%
|
Chubb & Son Inc.
|
USA
(New York) |
100%
|
Chubb Services Corporation
|
USA (Illinois)
|
100%
|
Chubb Insurance Solutions Agency, Inc.
|
USA
(New Jersey) |
100%
|
Chubb Global Financial Services Corporation
|
USA (Delaware)
|
100%
|
Harbor Island Indemnity Ltd.
|
Bermuda
|
100%
|
Chubb Investment Holdings (Hong Kong) Ltd.
|
Hong Kong
|
100%
|
MI Insurance Brokers Ltd.
|
Hong Kong
|
49%
|
Chubb Investment Services Limited
|
UK
|
100%
|
Chubb Custom Market Inc.
|
USA
(New Jersey) |
100%
|
Chubb Financial Solutions, Inc.
|
USA (Delaware)
|
100%
|
Transit Air Services, Inc.
|
USA
(New Jersey) |
100%
|
Chubb Multinational Manager Inc.
|
USA
(New York) |
100%
|
Chubb Computer Services, Inc.
|
USA
(New Jersey) |
100%
|
Chubb Re, Inc.
|
USA
(New Jersey) |
100%
|
Chubb Executive Risk Inc.
|
USA (Delaware)
|
100%
|
Executive Risk Management Associates
|
USA (Connecticut)
|
70%
30% (Sullivan Kelly, Inc.) |
Sullivan Kelly, Inc.
|
USA (California)
|
100%
|
Bellemead Development Corporation
|
USA (Delaware)
|
100%
|
Bellemead/Marina Del Rey Corp.
|
USA (Delaware)
|
100%
|
Halifax Plantation Golf Management, Inc.
|
USA (Florida)
|
100%
|
Halifax Plantation, Inc.
|
USA (Florida)
|
100%
|
Halifax Plantation Golf, Inc.
|
USA (Florida)
|
100%
|
Halifax Plantation Realty, Inc.
|
USA (Florida)
|
100%
|
1717 Naperville Corp.
|
USA (Illinois)
|
100%
|
1250 Diehl Corp.
|
USA (Illinois)
|
100%
|
Federal Insurance Company
|
USA (Indiana)
|
100%
|
Chubb Indemnity Insurance Company
|
USA
(New York) |
100%
|
Chubb National Insurance Company
|
USA (Indiana)
|
100%
|
Chubb Insurance Company of New Jersey
|
USA
(New Jersey) |
100%
|
Chubb Lloyds Insurance Company of Texas
|
USA (Texas)
|
100%
|
Chubb Custom Insurance Company
|
USA
(New Jersey) |
100%
|
Great Northern Insurance Company
|
USA (Indiana)
|
100%
|
Pacific Indemnity Company
|
USA (Wisconsin)
|
100%
|
Texas Pacific Indemnity Company
|
USA (Texas)
|
100%
|
Executive Risk Indemnity Inc.
|
USA (Delaware)
|
100%
|
Executive Risk Specialty Insurance Company
|
USA (Connecticut)
|
100%
|
Vigilant Insurance Company
|
USA
(New York) |
100%
|
Chubb Financial Solutions (Bermuda) Ltd.
|
Bermuda
|
100%
|
Chubb Investment Holdings Inc.
|
USA
(New Jersey) |
100%
|
Chubb Seguros Mexico Holdings Inc.
|
USA (Delaware)
|
100%
|
Chubb Fianzas Holdings Inc.
|
USA (Delaware)
|
100%
|
Chubb Argentina de Seguros, S.A.
|
Argentina
|
99.99%
|
PT Asuransi Chubb Indonesia
|
Indonesia
|
80%
0.03% (Chubb INA Holdings Inc.) |
Chubb Insurance Company Limited
|
China
|
100%
|
Chubb de Mexico Compania Afianzadora, S.A. de C.V.
|
Mexico
|
99.99%
0.01% (Chubb Global Financial Services Corporation) |
Chubb European Investment Holdings, SLP
|
UK
|
100%
|
Chubb Europe Finance Ltd.
|
UK
|
100%
|
Chubb de Chile Compania de Seguros Generales, S.A.
|
Chile
|
99.97%
0.03% (Chubb INA Holdings Inc.) |
Federal Insurance Company Escritorio de Representacao No Brasil Ltd.
|
Brazil
|
99.99%
0.01% (Chubb & Son, Inc.) |
Chubb de Mexico Compania de Seguros, S.A. de C.V.
|
Mexico
|
99.9429%
|
Chubb Direct Marketing Company Ltd.
|
Korea
|
100%
|
Chubb Life Insurance Korea Company Ltd.
|
Korea
|
100%
|
Combined Insurance Company of America
|
USA
(Illinois) |
100%
|
Combined Insurance Company of Europe Limited
|
Ireland
|
100%
|
Combined Life Insurance Company of New York
|
USA
(New York) |
100%
|
CoverHound, Inc.
|
USA (Delaware)
|
24.5%
|
Huatai Insurance Group Company, Limited
|
China
|
5.8293%
9.7755% (Chubb Tempest Reinsurance Ltd.) 4.3952% (Chubb US Holdings, Inc.) |
Huatai Property & Casualty Insurance Co., Ltd
|
China
|
100%
|
Huatai Life Insurance Company, Limited
|
China
|
79.5746%
20% (Chubb INA Holdings Inc.) |
INA Corporation
|
USA (Pennsylvania)
|
100%
|
INA Tax Benefits Reporting, Inc.
|
USA (Delaware)
|
100%
|
INA Financial Corporation
|
USA (Delaware)
|
100%
|
Brandywine Holdings Corporation
|
USA (Delaware)
|
100%
|
Cravens, Dargan & Company, Pacific Coast
|
USA (Delaware)
|
100%
|
Century Indemnity Company
|
USA (Pennsylvania)
|
100%
|
Century International Reinsurance Company Ltd.
|
Bermuda
|
100%
|
INA Holdings Corporation
|
USA (Delaware)
|
100%
|
INA International Holdings, LLC
|
USA (Delaware)
|
100%
|
Chubb INA Properties, Inc.
|
USA (Delaware)
|
100%
|
Conference Facilities, Inc.
|
USA (Pennsylvania)
|
100%
|
Chubb INA Financial Institution Solutions Inc.
|
USA (Delaware)
|
100%
|
American Lenders Facilities, Inc.
|
USA (California)
|
100%
|
ESIS, Inc.
|
USA (Pennsylvania)
|
100%
|
ESIS Canada Inc.
|
Canada (Ontario)
|
100%
|
ESIS Environmental Health and Safety Consulting (Shanghai) Company Limited
|
China
|
100%
|
ESIS Asia Pacific PTE. Ltd.
|
Singapore
|
100%
|
ESIS Academy PTE. Ltd.
|
Singapore
|
100%
|
Proclaim America, Inc.
|
USA (Texas)
|
100%
|
NewMarkets Insurance Agency, Inc.
|
USA (Delaware)
|
100%
|
Chubb INA Excess and Surplus Insurance Services, Inc.
|
USA (Pennsylvania)
|
100%
|
Chubb Excess and Surplus Insurance Services Inc.
|
USA (California)
|
100%
|
Chubb Alternative Risk Solutions Inc.
|
USA (Delaware)
|
100%
|
Indemnity Insurance Company of North America
|
USA (Pennsylvania)
|
100%
|
ACE American Insurance Company
|
USA (Pennsylvania)
|
100%
|
Penn Millers Holding Corporation
|
USA
(Pennsylvania) |
100%
|
PMMHC Corp.
|
USA
(Pennsylvania) |
100%
|
Penn Millers Insurance Company
|
USA
(Pennsylvania) |
100%
|
Penn Millers Agency, Inc.
|
USA
(Pennsylvania) |
100%
|
Pacific Employers Insurance Company
|
USA (Pennsylvania)
|
100%
|
Illinois Union Insurance Company
|
USA (Illinois)
|
100%
|
Rain and Hail Insurance Service Incorporated
|
USA (Iowa)
|
100%
|
Agri General Insurance Company
|
USA (Iowa)
|
100%
|
Rain and Hail L.L.C.
|
USA (Iowa)
|
100%
|
Agri General Insurance Service, Inc.
|
USA (Iowa)
|
100%
|
Rain and Hail Insurance Service International, Inc.
|
USA (Iowa)
|
100%
|
Rain and Hail Insurance Service, Ltd.
|
Canada
|
100%
|
Rain and Hail Insurance Service de Mexico, S.A. de C.V.
|
Mexico
|
100%
|
Rain and Hail Financial, Inc.
|
USA (Iowa)
|
100%
|
INAMAR Insurance Underwriting Agency, Inc.
|
USA (New Jersey)
|
100%
|
INAMAR Insurance Underwriting Agency, Inc. of
Texas
|
USA (Texas)
|
100%
|
Insurance Company of North America
|
USA (Pennsylvania)
|
100%
|
Bankers Standard Insurance Company
|
USA (Pennsylvania)
|
100%
|
ACE Property and Casualty Insurance Company
|
USA (Pennsylvania)
|
100%
|
ACE Fire Underwriters Insurance Company
|
USA (Pennsylvania)
|
100%
|
Atlantic Employers Insurance Company
|
USA
(New Jersey) |
100%
|
ACE Insurance Company of the Midwest
|
USA (Indiana)
|
100%
|
Chubb Tempest Re USA LLC
|
USA (Connecticut)
|
100%
|
Chubb Structured Products Inc.
|
USA (Delaware)
|
100%
|
Recovery Services International, Inc.
|
USA (Delaware)
|
100%
|
Chubb INA International Holdings, Ltd.
|
USA (Delaware)
|
100%
|
Chubb Europe Services Ltd.
|
UK
|
100%
|
Chubb Managing Agent Ltd.
|
UK
|
100%
|
Chubb Insurance Service Company Ltd.
|
UK
|
100%
|
Chubb Capital Ltd.
|
UK
|
100%
|
Combined Life Insurance Company of Australia, Ltd.
|
Australia
|
100%
|
Chubb Arabia Cooperative Insurance Company
|
Saudi Arabia
|
30%
|
Chubb Servicios Panama S.A.
|
Panama
|
100%
|
Chubb Life Insurance Company Ltd.
|
Bermuda
|
100%
|
Chubb Insurance Malaysia Berhad
|
Malaysia
|
100%
|
FM HoldCo LLC
|
USA (Delaware)
|
100%
|
ACE Fianzas Monterrey, S.A.
|
Mexico
|
99.95%
0.05% (AFIA Finance Corporation)
|
Operadora FMA, S.A. de C.V.
|
Mexico
|
100%
|
INACOMB S.A. de C.V.
|
Mexico
|
100%
|
Chubb Holdings Australia Pty Limited
|
Australia
|
100%
|
Chubb Insurance Australia Limited
|
Australia
|
100%
|
Chubb Insurance Company of Australia Limited
|
Australia
|
100%
|
PT. Chubb Life Insurance Indonesia
|
Indonesia
|
98.21%
|
Chubb Life Insurance Vietnam Company Limited
|
Vietnam
|
100%
|
Chubb Insurance Investment Holdings Ltd.
|
UK
|
100%
|
Chubb Insurance Company of Europe SE
|
UK
|
99.999298%
0.000702% (ACE European Holdings No 2 Limited)
|
Masterpiece Netherlands B.V.
|
Netherlands
|
100%
|
Symmetry Private Insurance Limited
|
England & Wales
|
19.35%
|
Chubb Insurance S.A.-N.V.
|
Belgium
|
99.94923%
0.05076% (Chubb INA International Holdings, Ltd.) |
ACE European Group Limited
|
England & Wales
|
69.1277%
30.8723% (ACE European Holdings Ltd.) |
Chubb Pension Trustee Limited
|
England & Wales
|
100%
|
Chubb Russia Investments Limited
|
England & Wales
|
100%
|
Russian Reinsurance Company
|
Russia
|
23.34%
|
LLC Chubb Life Insurance Company
|
Russia
|
100%
|
LLC Chubb Insurance Company
|
Russia
|
100%
|
ACE Seguradora S.A.
|
Macau
|
99.9897%
|
Chubb Holdings Limited
|
Cayman Islands
|
100%
|
ACE Insurance Company Egypt S.A.E.
|
Egypt
|
98.014%
0.551% (ACE INA Services UK Ltd) 0.551% (ACE European Holdings Ltd) |
Chubb Life Insurance - Egypt Ltd. S.A.E.
|
Egypt
|
98.35%
0.98% (Chubb Holdings Limited) 0.67% (AFIA Finance Corporation) |
ACE INA Berhad
|
Malaysia
|
100%
|
Chubb Seguros Colombia S.A.
|
Colombia
|
100%
|
Chubb Seguros Ecuador S.A.
|
Ecuador
|
100%
|
ACE Seguros S.A.
|
Mexico
|
100%
|
Chubb Seguros Panama S.A.
|
Panama
|
100%
|
Chubb Peru S.A. Compania de Seguros y Reaseguros
|
Peru
|
100%
|
Nam Ek Company Limited
|
Thailand
|
49%
|
Eksupsiri Company Limited
|
Thailand
|
50.99%
49% (Chubb International Holdings Ltd) |
Chubb Life Assurance Public Company Limited
|
Thailand
|
75.01%
24.99% (Oriental Equity Holdings) |
Chubb Samaggi Insurance Public Company Limited
|
Thailand
|
99.212%
|
AFIA Venezolana C.A.
|
Venezuela
|
100%
|
ACE Servicios S.A.
|
Argentina
|
95%
5% (ACE INA Int'l Holdings) |
AFIA Finance Corp. Chile Limitada
|
Chile
|
98%
2% (ACE INA Int'l Holdings) |
Pembroke Reinsurance, Inc.
|
USA (Delaware)
|
100%
|
RIYAD Insurance Co. Ltd.
|
Bermuda
|
80%
|
Chubb Asia Pacific Services Pte. Ltd.
|
Singapore
|
100%
|
Chubb IT Development Center Sdn. Bhd
|
Malaysia
|
100%
|
AFIA (INA) Corporation Limited
|
USA (Delaware)
|
100%
|
AFIA
|
Unincorporated
Association |
60%
40% AFIA (Chubb) |
AFIA (Chubb) Corporation, Limited
|
USA (Delaware)
|
100%
|
INAVEN, C.A. "Venezuela"
|
Venezuela
|
100%
|
Ally Insurance Holdings LLC
|
USA (Delaware)
|
100%
|
ABA Seguros, S.A. de C.V.
|
Mexico
|
100%
|
ABA Servicios Corporativos, S.A. de C.V.
|
Mexico
|
100%
|
ABA Mexico Holdings LLC
|
USA (Delaware)
|
100%
|
ABA Garantias S.A. de C.V.
|
Mexico
|
100%
|
Chubb US Holdings Inc.
|
USA (Delaware)
|
100%
|
Rhea International Marketing (L), Inc.
|
Malaysia
|
60%
|
Westchester Fire Insurance Company (F/K/A ACE Indemnity Insurance Company)
|
USA
(Pennsylvania) |
100%
|
Westchester Surplus Lines Insurance Company
|
USA (Georgia)
|
100%
|
Westchester Specialty Insurance Services, Inc.
|
USA (Nevada)
|
100%
|
1)
|
I have reviewed this annual report on Form 10-K 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 annual report on Form 10-K 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: February 27, 2017
|
/s/ Evan G. Greenberg
|
|
Evan G. Greenberg
Chairman, President and Chief Executive Officer
|
Dated: February 27, 2017
|
/s/ Philip V. Bancroft
|
|
Philip V. Bancroft
|
|
Executive Vice President and Chief Financial Officer
|