☑
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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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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Trading Symbol(s)
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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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CB
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New York Stock Exchange
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Guarantee of Chubb INA Holdings Inc. 0.30% Senior Notes due 2024
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CB/24A
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New York Stock Exchange
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Guarantee of Chubb INA Holdings Inc. 0.875% Senior Notes due 2027
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CB/27
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New York Stock Exchange
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Guarantee of Chubb INA Holdings Inc. 1.55% Senior Notes due 2028
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CB/28
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New York Stock Exchange
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Guarantee of Chubb INA Holdings Inc. 0.875% Senior Notes due 2029
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CB/29A
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New York Stock Exchange
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Guarantee of Chubb INA Holdings Inc. 1.40% Senior Notes due 2031
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CB/31
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New York Stock Exchange
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Guarantee of Chubb INA Holdings Inc. 2.50% Senior Notes due 2038
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CB/38A
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New York Stock Exchange
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Large accelerated filer
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☑
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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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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ITEM 16.
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•
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Major Accounts, the retail division focused on large institutional organizations and corporate companies
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•
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Commercial Insurance, which includes the retail division 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 as well as offering casualty insurance solutions for commercial real estate. 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, inland marine, and aerospace products.
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Casualty Risk provides coverages including umbrella and excess liability, environmental risk, casualty programs for commercial construction related projects for companies and institutions, and medical risk specialty liability products for the healthcare industry.
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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 (A&H) 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. A&H 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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•
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Financial Lines provides management liability and professional liability (D&O and E&O), transactional risk and cyber risk products to public companies as well as to private and not for profit organizations.
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ESIS Inc. (ESIS) is an in-house third-party claims administrator that 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; 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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•
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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, A&H, and international coverages. Commercial Insurance distributes its insurance products through a North American network of independent retail agents, and regional, multinational and digital 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. The majority of our customers purchase a Package product or a portfolio of products, which is a collection of insurance offerings designed to cover various needs.
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Small Commercial Insurance products and services offered include property and casualty lines of business, including a business owner policy which contains property and general liability; financial lines, including professional liability, management liability, cyber risk; and other lines including workers’ compensation, automobile liability, and international coverages. Products are generally offered through a North American network of independent agents and brokers, as well as eTraditional, which are digital platforms where we electronically quote, bind, and issue for agents and brokers. An example of this is the Chubb Marketplace.
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Westchester serves the market for business risks that tend to be hard to place or not easily covered by traditional policies due to unique or complex exposures and provides specialty products for property, casualty, environmental, professional liability, inland marine, product recall, small business, binding and program coverages in the U.S., Canada, and Bermuda. Products are offered through the wholesale distribution channel.
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Chubb Bermuda provides commercial insurance products on an excess basis including excess liability, D&O, professional liability, property, and political risk, the latter being written by Sovereign Risk Insurance Ltd., a wholly-owned managing agent. Chubb Bermuda focuses on Fortune 1000 companies and targets risks that are generally low in frequency and high in severity. Products are offered primarily through the Bermuda offices of major, internationally recognized insurance brokers.
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MPCI is federally subsidized crop protection from numerous causes of loss, including drought, excessive moisture, freeze, disease and more. The MPCI program is offered in conjunction with the U.S. Department of Agriculture. MPCI products include revenue protection (defined as providing both commodity price and yield coverages), yield protection, margin protection, prevented planting coverage and replant coverage. For additional information on our MPCI program, refer to “Crop Insurance” under Item 7.
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Crop-Hail coverage provides crop protection from damage caused by hail and/or fire, with options in some markets for other perils such as wind or theft. Coverage is provided on an acre-by-acre basis and is available in the U.S. and in some parts of Canada. Crop-Hail can be used in conjunction with MPCI or other comprehensive coverages to offset the deductible and provide protection up to the actual cash value of the crop.
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Commercial Agribusiness offers specialty P&C coverages for commercial companies that manufacture, process and distribute agricultural products. Commercial products and services include property, general liability for premises/operations and product liability, commercial automobile, workers' compensation, employment practices liability coverage, built-in coverage for premises pollution, cyber and information security, and product withdrawal.
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Farm and Ranch Agribusiness offers an extensive line of coverages for farming operations from Hobby/Gentleman farms to complex corporate farms and equine services including personal use, boarding, and training. Coverages include farm and ranch structures, machinery and other equipment, automobile and other vehicle coverages, and livestock.
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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, including catastrophe models to quantify natural catastrophe risk for product pricing, risk management, capital allocation and to simulate and estimate hurricane losses) that help business and corporate leaders make informed underwriting, portfolio management and risk management decisions within a consistent risk/reward framework;
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Governance:
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◦
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establish and coordinate risk guidelines that reflect the corporate appetite for risk;
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monitor exposure accumulations relative to established guidelines; and
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ensure effective internal risk management communication up to management and the Board, (including our Risk & Finance Committee and our Nominating & Governance Committee), 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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65
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Chairman, President, Chief Executive Officer, and Director
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John W. Keogh
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55
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Executive Vice Chairman and Chief Operating Officer
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Philip V. Bancroft
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60
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Executive Vice President and Chief Financial Officer
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John J. Lupica
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54
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Vice Chairman; President, North America Major Accounts & Specialty Insurance
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Joseph F. Wayland
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62
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Executive Vice President and General Counsel
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Sean Ringsted
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57
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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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70
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Executive Vice President and Chief Investment Officer
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Paul J. Krump
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60
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Executive Vice President; President, North America Commercial and Personal Insurance
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Juan Luis Ortega
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45
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Executive Vice President; President, Overseas General Insurance
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•
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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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Period
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Total Number of Shares Purchased (1)
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Average Price
Paid per Share
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Total Number of Shares Purchased as Part of Publicly Announced Plans (2)
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Approximate Dollar Value of Shares that May Yet be Purchased Under Publicly Announced Plans (3)
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October 1 through October 31
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703,138
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$
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153.65
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700,900
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$
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151
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million
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November 1 through November 30
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677,640
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$
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151.41
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670,000
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$
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1.55
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billion
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December 1 through December 31
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654,352
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$
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153.84
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653,500
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$
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1.45
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billion
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Total
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2,035,130
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$
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152.97
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2,024,400
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(1)
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This represents open market share repurchases and 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 exercise of options by employees.
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(2)
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The aggregate value of shares purchased in the three months ended December 31, 2019 as part of the publicly announced plans was $310 million.
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(3)
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Refer to Note 11 to the Consolidated Financial Statements for more information on the Chubb Limited securities repurchase authorizations. In November 2019, the Board authorized the repurchase of up to $1.5 billion of Chubb's Common Shares from November 21, 2019 through December 31, 2020. The $1.5 billion December 2018 Board authorization remained effective through December 31, 2019, and was used in advance of the $1.5 billion share repurchase authorized in November 2019. For the period January 1, 2020 through February 26, 2020, we repurchased 947,400 Common Shares for a total of $151 million in a series of open market transactions. As of February 26, 2020, $1.30 billion in share repurchase authorization remained through December 31, 2020.
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(in millions of U.S. dollars, except per share data and ratios)
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2019
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2018
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2017
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2016
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2015
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Operations data:
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Net premiums earned – excluding Life Insurance segment
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$
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28,947
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$
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27,846
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$
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26,933
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$
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26,694
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$
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15,266
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Net premiums earned – Life Insurance segment
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2,343
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2,218
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2,101
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2,055
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1,947
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Total net premiums earned
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31,290
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30,064
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29,034
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28,749
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17,213
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Net investment income
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3,426
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3,305
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3,125
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2,865
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2,194
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Losses and loss expenses
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18,730
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18,067
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18,454
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16,052
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9,484
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Policy benefits
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740
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590
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676
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588
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543
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Policy acquisition costs and administrative expenses
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9,183
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8,798
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8,614
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8,985
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5,211
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Net income
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4,454
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|
3,962
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3,861
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4,135
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2,834
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Weighted-average shares outstanding – diluted
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459
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467
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471
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|
466
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|
329
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Diluted earnings per share
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$
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9.71
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$
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8.49
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$
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8.19
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$
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8.87
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|
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$
|
8.62
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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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109,234
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$
|
100,968
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$
|
102,444
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|
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$
|
99,094
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$
|
66,251
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Total assets
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176,943
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|
|
167,771
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|
|
167,022
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|
|
159,786
|
|
|
102,306
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Net unpaid losses and loss expenses
|
48,509
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|
48,271
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|
49,165
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|
47,832
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|
26,562
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Net future policy benefits
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5,617
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|
5,304
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|
|
5,137
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|
4,854
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4,620
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Long-term debt
|
13,559
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|
12,087
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11,556
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|
12,610
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|
9,389
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Trust preferred securities
|
308
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|
|
308
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|
|
308
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|
|
308
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|
|
307
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Total liabilities
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121,612
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|
117,459
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|
115,850
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|
111,511
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|
|
73,171
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Shareholders' equity
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55,331
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|
|
50,312
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|
51,172
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|
|
48,275
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29,135
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Book value per share
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$
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122.42
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$
|
109.56
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$
|
110.32
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$
|
103.60
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|
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$
|
89.77
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Selected data:
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Loss and loss expense ratio (1)
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62.1
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%
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|
62.1
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%
|
|
65.8
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%
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|
57.7
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%
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58.1
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%
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Underwriting and administrative expense ratio (2)
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28.5
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%
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|
28.5
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%
|
|
28.9
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%
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|
30.6
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%
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|
29.2
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%
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Combined ratio (3)
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90.6
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%
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90.6
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%
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94.7
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%
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88.3
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%
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|
87.3
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%
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Cash dividends per share
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$
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2.98
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$
|
2.90
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|
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$
|
2.82
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|
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$
|
2.74
|
|
|
$
|
2.66
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(1)
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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 $757 million, $766 million, $739 million, $663 million, and $601 million for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively.
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(2)
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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 $943 million, $867 million, $833 million, $816 million, and $767 million for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively.
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(3)
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The combined ratio is the sum of Loss and loss expense ratio and the Underwriting and administrative expense ratio.
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MD&A Index
|
Page
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•
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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:
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•
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the number of insureds and ceding companies affected;
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•
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the amount and timing of losses actually incurred and reported by insureds;
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•
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the impact of these losses on our reinsurers and the amount and timing of reinsurance recoverable actually received;
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•
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the cost of building materials and labor to reconstruct properties or to perform environmental remediation following a catastrophic event; and
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•
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complex coverage and regulatory issues such as whether losses occurred from storm surge or flooding and related lawsuits;
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•
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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;
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•
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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;
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•
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actual loss experience from insured or reinsured events and the timing of claim payments;
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•
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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;
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•
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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;
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•
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infection rates and severity of pandemics and their effects on our business operations and claims activity;
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•
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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;
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•
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general economic and business conditions resulting from volatility in the stock and credit markets and the depth and duration of potential recession;
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•
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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;
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•
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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;
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•
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judicial decisions and rulings, new theories of liability, legal tactics, and settlement terms;
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•
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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:
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•
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the capital markets;
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•
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the markets for directors and officers (D&O) and errors and omissions (E&O) insurance; and
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•
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claims and litigation arising out of such disclosures or practices by other companies;
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•
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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;
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•
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the effects of data privacy or cyber laws or regulation on our current or future business;
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•
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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;
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•
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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;
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•
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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;
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•
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risks and uncertainties relating to our planned purchases of additional interests in Huatai Insurance Group Company Limited (Huatai Group), including our ability to receive Chinese insurance regulatory approval and complete the purchases;
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•
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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;
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•
|
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;
|
•
|
the ability of our company to increase use of data analytics and technology as part of our business strategy and adapt to new technologies; and
|
•
|
management’s response to these factors and actual events (including, but not limited to, those described above).
|
|
|
•
|
Net income was $4,454 million compared with $3,962 million in 2018.
|
•
|
Net premiums written were $32.3 billion, up 5.5 percent, or 7.0 percent on a constant-dollar basis.
|
•
|
The North America Agricultural Insurance segment combined ratio was 95.1 percent compared with 75.5 percent in 2018, or a decline of $296 million in underwriting income, principally due to the downward revision in the 2019 crop year margin estimate reflecting preventive planting claims due to the impact of wet weather conditions and crop yield shortfalls resulting from poor growing conditions.
|
•
|
P&C combined ratio was 90.6 percent in both 2019 and 2018. P&C current accident year combined ratio excluding catastrophe losses was 89.2 percent compared with 88.0 percent in 2018, reflecting the increase in the North America Agricultural Insurance segment combined ratio noted above.
|
•
|
Total pre-tax and after-tax catastrophe losses, including reinstatement premiums, were $1,187 million (4.1 percentage points of the combined ratio) and $966 million, respectively, compared with $1,626 million (5.9 percentage points of the combined ratio) and $1,354 million, respectively, in 2018. Refer to the Consolidated Operating Results section for additional information on our catastrophe losses.
|
•
|
Total pre-tax and after-tax favorable prior period development were $792 million (2.7 percentage points of the combined ratio) and $624 million, respectively, compared with $896 million (3.3 percentage points of the combined ratio) and $706 million, respectively, in 2018. Pre-tax favorable prior period development in 2018 included favorable reinsurance settlements of $205 million related to legacy run-off exposures.
|
•
|
Operating cash flow was $6,342 million compared with $5,480 million in 2018, an increase of $862 million primarily due to higher underwriting cash flow. Refer to the Liquidity section for additional information on our cash flows.
|
•
|
Net investment income was $3,426 million compared with $3,305 million in 2018.
|
•
|
Share repurchases totaled $1,531 million, or approximately 10.4 million shares for the year, at an average purchase price of $146.61 per share.
|
|
•
|
unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves and non-A&E casualty exposures;
|
•
|
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 income taxes;
|
•
|
the valuation of derivative instruments related to guaranteed living benefits (GLB); and
|
•
|
the assessment of goodwill for impairment.
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
Gross Losses
|
|
|
Reinsurance Recoverable(1)
|
|
|
Net Losses
|
|
|
Gross Losses
|
|
|
Reinsurance Recoverable(1)
|
|
|
Net Losses
|
|
||||||
Balance, beginning of year
|
$
|
62,960
|
|
|
$
|
14,689
|
|
|
$
|
48,271
|
|
|
$
|
63,179
|
|
|
$
|
14,014
|
|
|
$
|
49,165
|
|
Losses and loss expenses incurred
|
23,657
|
|
|
4,927
|
|
|
18,730
|
|
|
23,645
|
|
|
5,578
|
|
|
18,067
|
|
||||||
Losses and loss expenses paid
|
(23,911
|
)
|
|
(5,438
|
)
|
|
(18,473
|
)
|
|
(23,079
|
)
|
|
(4,739
|
)
|
|
(18,340
|
)
|
||||||
Other (including foreign exchange translation)
|
(16
|
)
|
|
3
|
|
|
(19
|
)
|
|
(785
|
)
|
|
(164
|
)
|
|
(621
|
)
|
||||||
Balance, end of year
|
$
|
62,690
|
|
|
$
|
14,181
|
|
|
$
|
48,509
|
|
|
$
|
62,960
|
|
|
$
|
14,689
|
|
|
$
|
48,271
|
|
(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 (1)
|
|
|||||||
(in millions of U.S. dollars)
|
|
|
|
|||||||||
Type
|
|
|
|
|
|
|
||||||
Reinsurers with credit ratings
|
|
$
|
11,460
|
|
|
$
|
10,043
|
|
|
$
|
156
|
|
Reinsurers not rated
|
|
321
|
|
|
190
|
|
|
66
|
|
|||
Reinsurers under supervision and insolvent reinsurers
|
|
81
|
|
|
79
|
|
|
37
|
|
|||
Captives
|
|
2,647
|
|
|
378
|
|
|
20
|
|
|||
Other - structured settlements and pools
|
|
988
|
|
|
978
|
|
|
37
|
|
|||
Total
|
|
$
|
15,497
|
|
|
$
|
11,668
|
|
|
$
|
316
|
|
(1)
|
The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance recoverables, net of approximately $3.8 billion of collateral at December 31, 2019.
|
•
|
Estimates of the average modeled value of future cash outflows is recorded as incurred losses (i.e., benefit reserves). Cash inflows or revenue are reported as net premiums earned and changes in the benefit reserves are reflected as Policy benefits expense in the Consolidated statements of operations, which is included in underwriting income.
|
•
|
The incremental difference between the fair value of GLB reinsurance contracts and benefit reserves is reflected in Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets and related changes in fair value are reflected in Net realized gains (losses) in the Consolidated statements of operations.
|
Year of first payment eligibility
|
Percent of living benefit
account values
|
|
2019 and prior
|
92
|
%
|
2020
|
1
|
%
|
2021
|
2
|
%
|
2022
|
—
|
%
|
2023
|
1
|
%
|
2024 and after
|
4
|
%
|
Total
|
100
|
%
|
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||||||||||||||||||||||||||
GMDB
|
|
|
GLB
|
|
|
Total
|
|
|
GMDB
|
|
|
GLB
|
|
|
Total
|
|
|
GMDB
|
|
|
GLB
|
|
|
Total
|
|
||||||||||
Premium received
|
$
|
40
|
|
|
$
|
91
|
|
|
$
|
131
|
|
|
$
|
47
|
|
|
$
|
96
|
|
|
$
|
143
|
|
|
$
|
49
|
|
|
$
|
110
|
|
|
$
|
159
|
|
Less paid claims
|
34
|
|
|
91
|
|
|
125
|
|
|
32
|
|
|
49
|
|
|
81
|
|
|
31
|
|
|
54
|
|
|
85
|
|
|||||||||
Net cash received
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
15
|
|
|
$
|
47
|
|
|
$
|
62
|
|
|
$
|
18
|
|
|
$
|
56
|
|
|
$
|
74
|
|
•
|
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)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
|||
Net premiums written
|
$
|
32,275
|
|
|
$
|
30,579
|
|
|
$
|
29,244
|
|
|
5.5
|
%
|
|
4.6
|
%
|
Net premiums earned
|
31,290
|
|
|
30,064
|
|
|
29,034
|
|
|
4.1
|
%
|
|
3.5
|
%
|
|||
Net investment income
|
3,426
|
|
|
3,305
|
|
|
3,125
|
|
|
3.6
|
%
|
|
5.8
|
%
|
|||
Net realized gains (losses)
|
(530
|
)
|
|
(652
|
)
|
|
84
|
|
|
(18.8
|
)%
|
|
NM
|
|
|||
Total revenues
|
34,186
|
|
|
32,717
|
|
|
32,243
|
|
|
4.5
|
%
|
|
1.5
|
%
|
|||
Losses and loss expenses
|
18,730
|
|
|
18,067
|
|
|
18,454
|
|
|
3.7
|
%
|
|
(2.1
|
)%
|
|||
Policy benefits
|
740
|
|
|
590
|
|
|
676
|
|
|
25.5
|
%
|
|
(12.7
|
)%
|
|||
Policy acquisition costs
|
6,153
|
|
|
5,912
|
|
|
5,781
|
|
|
4.1
|
%
|
|
2.3
|
%
|
|||
Administrative expenses
|
3,030
|
|
|
2,886
|
|
|
2,833
|
|
|
5.0
|
%
|
|
1.9
|
%
|
|||
Interest expense
|
552
|
|
|
641
|
|
|
607
|
|
|
(13.9
|
)%
|
|
5.6
|
%
|
|||
Other (income) expense
|
(596
|
)
|
|
(434
|
)
|
|
(400
|
)
|
|
37.2
|
%
|
|
8.5
|
%
|
|||
Amortization of purchased intangibles
|
305
|
|
|
339
|
|
|
260
|
|
|
(10.2
|
)%
|
|
30.4
|
%
|
|||
Chubb integration expenses
|
23
|
|
|
59
|
|
|
310
|
|
|
(61.7
|
)%
|
|
(81.0
|
)%
|
|||
Total expenses
|
28,937
|
|
|
28,060
|
|
|
28,521
|
|
|
3.1
|
%
|
|
(1.6
|
)%
|
|||
Income before income tax
|
5,249
|
|
|
4,657
|
|
|
3,722
|
|
|
12.7
|
%
|
|
25.1
|
%
|
|||
Income tax expense (benefit)
|
795
|
|
|
695
|
|
|
(139
|
)
|
|
14.3
|
%
|
|
NM
|
|
|||
Net income
|
$
|
4,454
|
|
|
$
|
3,962
|
|
|
$
|
3,861
|
|
|
12.4
|
%
|
|
2.6
|
%
|
Net premiums written - constant dollars (1)
|
|
|
|
|
|
|
7.0
|
%
|
|
4.1
|
%
|
||||||
Net premiums earned - constant dollars (1)
|
|
|
|
|
|
|
5.5
|
%
|
|
3.1
|
%
|
||||||
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
(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.
|
•
|
Net premiums written in our North America Commercial P&C Insurance segment increased $890 million (7.1 percent) in 2019, reflecting positive rate increases, new business written and strong retention across most retail lines, including property, financial lines, excess casualty, risk management, and commercial package, as well as in our wholesale and high excess Bermuda lines, and in our small commercial businesses.
|
•
|
Net premiums written in our North America Personal P&C Insurance segment increased $113 million (2.4 percent) in 2019, primarily due to strong retention and rate and exposure increases across most lines, partially offset by a $44 million benefit in 2018 related to the harmonization of our legacy premium registration systems, which unfavorably impacted growth by approximately 0.9 percentage points.
|
•
|
Net premiums written in our North America Agricultural Insurance segment increased $233 million (14.8 percent) in 2019, primarily due to growth in our MPCI business and growth in our Chubb Agribusiness. Growth in our MPCI premium was driven primarily by higher retention as a result of the premium sharing formulas under the U.S. government, as well as the non-renewal of a quota-share treaty effective with the current crop year and an increase in current year production. Under the MPCI premium sharing formula under the U.S. government, we cede additional premiums to the government during profitable years. In 2018, the program was more profitable which resulted in higher cessions compared to 2019.
|
•
|
Net premiums written in our Overseas General Insurance segment increased $360 million (4.0 percent) in 2019, or $722 million (8.4 percent) on a constant-dollar basis, reflecting growth across all regions and most lines of business. P&C lines growth was across all regions and was principally due to positive rate increases and new business in property, casualty, and financial lines. Personal lines growth was driven by new business principally in Latin America and Europe. Accident and health (A&H) lines growth was principally in Asia and Latin America driven by new business.
|
•
|
Net premiums written in our Global Reinsurance segment decreased $22 million (3.2 percent) in 2019, or $12 million (1.7 percent) on a constant-dollar basis, as an increase in new business written in property and marine lines was more than offset by an increase in ceded retrocessions, reductions in the international motor line, and higher reinstatement premiums collected in the prior year.
|
•
|
Net premiums written in our Life Insurance segment increased $122 million (5.3 percent) in 2019, or $143 million (6.4 percent) on a constant-dollar basis, primarily reflecting growth in our Asian and Latin American international life operations and North American Combined Insurance supplemental A&H program, partially offset by our life reinsurance business, which continues to decline as no new life reinsurance business is being written.
|
•
|
Net premiums written in our North America Commercial P&C Insurance segment increased $466 million (3.9 percent) in 2018 reflecting positive rate increases, new business written, and strong renewals across a number of lines. Retail casualty and risk management, A&H, retail property, and continued growth in our small commercial business represented $339 million of the $466 million increase. In addition, the year-over-year increase in large structured transactions was $195 million. This growth was partially offset by merger-related underwriting actions of $123 million and premium reductions from planned portfolio management in our retail and wholesale brokerage financial lines ($62 million).
|
•
|
Net premiums written in our North America Personal P&C Insurance segment increased $141 million (3.1 percent) for 2018, primarily due to strong retention and new business growth in homeowners and complementary products such as automobiles and valuables. In addition, the non-renewal of a quota share treaty in the second quarter of 2017 covering the acquired Fireman's Fund homeowners and automobile businesses added $47 million of additional net premiums written in 2018. These increases were partially offset by the addition of California to the homeowners quota share reinsurance treaty, effective October 1, 2018 ($47 million), which included a non-recurring unearned premium reserves (UPR) transfer of $32 million.
|
•
|
Net premiums written in our North America Agricultural Insurance segment increased $61 million (4.0 percent) in 2018, primarily due to growth in our MPCI business and growth in our Chubb Agribusiness. The growth in MPCI premium was driven by policy count growth and the year-over-year impact of the premium sharing formulas under the U.S. government. In 2017, the program was more profitable which resulted in higher cessions compared to 2018. The increase was partially offset by lower volatility factors, which are a component of the policy pricing that measures the likelihood the commodity price will fluctuate over the crop year and reduces the premium we charge.
|
•
|
Net premiums written in our Overseas General Insurance segment increased $552 million (6.6 percent) in 2018, or $448 million (5.3 percent) on a constant-dollar basis, reflecting growth across most regions and lines of business. P&C lines growth was across all regions, principally in small commercial property and general casualty lines reflecting new business, and in middle market driven by new business and rate increases. Personal lines growth was principally in our automobile line in Mexico driven by new business, as well as in our specialty lines in Asia. A&H lines growth was principally in Asia driven by new business.
|
•
|
Net premiums written in our Global Reinsurance segment decreased $14 million (2.1 percent) in 2018, or $22 million (3.3 percent) on a constant-dollar basis, primarily due to higher reinstatement premiums collected in the prior year principally relating to the 2017 natural catastrophes ($15 million year-over-year decrease) and lower renewals, which is reflective of competitive market conditions primarily in catastrophe and catastrophe exposed lines of business, partially offset by new business written in the casualty line of business.
|
•
|
Net premiums written in our Life Insurance segment increased $129 million (6.1 percent) in 2018, or $123 million (5.7 percent) on a constant-dollar basis, primarily due to growth in our North American Combined Insurance supplemental A&H program business, and Asian and Latin American international life operations, partially offset by our life reinsurance business, which continues to decline as no new life reinsurance business is being written.
|
|
|
|
|
|
|
|
|
|
% Change
|
|
||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
C$ (1)
2018 |
|
|
C$ (1) 2019 vs. 2018
|
|
||||
Commercial casualty
|
$
|
5,654
|
|
|
$
|
5,204
|
|
|
$
|
4,721
|
|
|
$
|
5,154
|
|
|
9.7
|
%
|
Workers' compensation
|
2,098
|
|
|
2,094
|
|
|
2,067
|
|
|
2,094
|
|
|
0.1
|
%
|
||||
Professional liability
|
3,697
|
|
|
3,527
|
|
|
3,547
|
|
|
3,479
|
|
|
6.3
|
%
|
||||
Surety
|
639
|
|
|
635
|
|
|
627
|
|
|
622
|
|
|
2.7
|
%
|
||||
Commercial multiple peril (2)
|
983
|
|
|
910
|
|
|
879
|
|
|
910
|
|
|
8.0
|
%
|
||||
Property and other short-tail lines
|
4,468
|
|
|
4,016
|
|
|
3,819
|
|
|
3,930
|
|
|
13.7
|
%
|
||||
Total Commercial P&C (3)
|
17,539
|
|
|
16,386
|
|
|
15,660
|
|
|
16,189
|
|
|
8.3
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Agriculture
|
1,810
|
|
|
1,577
|
|
|
1,516
|
|
|
1,577
|
|
|
14.8
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Personal automobile
|
1,786
|
|
|
1,695
|
|
|
1,563
|
|
|
1,685
|
|
|
6.0
|
%
|
||||
Personal homeowners
|
3,513
|
|
|
3,391
|
|
|
3,302
|
|
|
3,383
|
|
|
3.9
|
%
|
||||
Personal other
|
1,514
|
|
|
1,508
|
|
|
1,441
|
|
|
1,454
|
|
|
4.0
|
%
|
||||
Total Personal lines
|
6,813
|
|
|
6,594
|
|
|
6,306
|
|
|
6,522
|
|
|
4.4
|
%
|
||||
Total Property and Casualty lines
|
26,162
|
|
|
24,557
|
|
|
23,482
|
|
|
24,288
|
|
|
7.7
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global A&H lines (4)
|
4,315
|
|
|
4,277
|
|
|
4,056
|
|
|
4,157
|
|
|
3.8
|
%
|
||||
Reinsurance lines
|
649
|
|
|
671
|
|
|
685
|
|
|
661
|
|
|
(1.7
|
)%
|
||||
Life
|
1,149
|
|
|
1,074
|
|
|
1,021
|
|
|
1,059
|
|
|
8.5
|
%
|
||||
Total consolidated
|
$
|
32,275
|
|
|
$
|
30,579
|
|
|
$
|
29,244
|
|
|
$
|
30,165
|
|
|
7.0
|
%
|
(1)
|
On a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency rates as the comparable current period.
|
(2)
|
Commercial multiple peril represents retail package business (property and general liability).
|
(3)
|
2018 included a reclassification of $56 million from Workers’ compensation and $1 million from Commercial multiple peril to Commercial casualty ($48 million) and Property and other short-tail lines ($9 million) to better align the reporting with current year. There is no impact to total Commercial P&C.
|
(4)
|
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 Global A&H lines above.
|
•
|
The growth in commercial casualty was due to new business and rate improvement in North America. In addition, commercial casualty grew internationally due to positive rate increases and new business across Europe, as well as growth in Australia.
|
•
|
Growth in workers' compensation was adversely impacted by competitive market conditions in North America.
|
•
|
The increase in professional liability was due to growth in North America and new business in Australia and Europe. Professional liability also had positive rate increases and retention in Australia.
|
•
|
Surety increased due to new business in North America.
|
•
|
Commercial multiple peril increased due to new business and higher renewal business in North America.
|
•
|
Property and other short-tail lines increased due to growth in North America. In addition, property and other short-tail lines increased internationally, primarily due to new business in Australia and across Europe, as well as positive rate increases internationally.
|
•
|
Our personal lines increased due to strong retention and rate and exposure increases in North America. Personal lines also increased due to growth in Latin America and Europe.
|
•
|
Global A&H lines increased due to growth in our North American Combined Insurance supplemental A&H program, along with new business in Asia and Latin America.
|
•
|
The increase in Life was primarily driven by growth in our Asian and Latin American international life operations.
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
Loss and loss expense ratio
|
62.1
|
%
|
|
62.1
|
%
|
|
65.8
|
%
|
Policy acquisition cost ratio
|
19.1
|
%
|
|
19.2
|
%
|
|
19.5
|
%
|
Administrative expense ratio
|
9.4
|
%
|
|
9.3
|
%
|
|
9.4
|
%
|
P&C Combined ratio
|
90.6
|
%
|
|
90.6
|
%
|
|
94.7
|
%
|
•
|
Lower catastrophe losses;
|
•
|
Integration-related claims handling expense savings;
|
•
|
Partially offset by increased frequency and severity of homeowners losses in our North America Personal P&C Insurance segment, primarily non-catastrophe water related events and large fire losses which are trending above our expectations, and higher non-catastrophe large losses in our North America Commercial P&C Insurance segment.
|
(in millions of U.S dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Catastrophe losses (excludes reinstatement premiums)
|
$
|
1,175
|
|
|
$
|
1,622
|
|
|
$
|
2,753
|
|
Favorable prior period development
|
$
|
792
|
|
|
$
|
896
|
|
|
$
|
829
|
|
|
Catastrophe Loss Charge by Event
|
|
|||||||||||||||||||||||||||||
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global
Reinsurance |
|
|
Total excluding RIPs
|
|
|
RIPs collected (expensed)
|
|
|
Total including RIPs
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Net losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. flooding, hail, tornadoes, and wind events
|
$
|
220
|
|
|
$
|
202
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
438
|
|
|
$
|
—
|
|
|
$
|
438
|
|
Tornado in Dallas, Texas
|
55
|
|
|
145
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
202
|
|
|
(11
|
)
|
|
213
|
|
||||||||
Winter-related storms
|
74
|
|
|
110
|
|
|
1
|
|
|
6
|
|
|
2
|
|
|
193
|
|
|
—
|
|
|
193
|
|
||||||||
Hurricane Dorian
|
26
|
|
|
30
|
|
|
—
|
|
|
10
|
|
|
8
|
|
|
74
|
|
|
1
|
|
|
73
|
|
||||||||
California wildfires
|
11
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||||||
Typhoon Hagibis
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
17
|
|
|
37
|
|
|
1
|
|
|
36
|
|
||||||||
Civil unrest in Hong Kong and Chile
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
|
(4
|
)
|
|
37
|
|
||||||||
International weather-related events
|
1
|
|
|
2
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||||
Tropical Storm Imelda
|
26
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
31
|
|
|
—
|
|
|
31
|
|
||||||||
Australia storms
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
1
|
|
|
28
|
|
|
—
|
|
|
28
|
|
||||||||
Typhoon Faxai
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
10
|
|
|
25
|
|
|
1
|
|
|
24
|
|
||||||||
Hurricane Barry
|
3
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||||
Australia wildfires
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||||
Other
|
5
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||||
Total
|
$
|
421
|
|
|
$
|
543
|
|
|
$
|
8
|
|
|
$
|
152
|
|
|
$
|
51
|
|
|
$
|
1,175
|
|
|
|
|
|
||||
RIPs collected (expensed)
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(4
|
)
|
|
3
|
|
|
|
|
(12
|
)
|
|
|
||||||||||
Total before income tax
|
$
|
421
|
|
|
$
|
554
|
|
|
$
|
8
|
|
|
$
|
156
|
|
|
$
|
48
|
|
|
|
|
|
|
$
|
1,187
|
|
||||
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
221
|
|
|||||||||||||||
Total after income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
966
|
|
(1)
|
This grouping comprised of 34 separate events, principally impacting the southern and northeastern regions of the U.S.
|
|
Catastrophe Loss Charge by Event
|
|
|||||||||||||||||||||||||||||
|
North America Commercial P&C Insurance
|
|
|
North America Personal P&C Insurance
|
|
|
North America Agricultural Insurance
|
|
|
Overseas General Insurance
|
|
|
Global
Reinsurance
|
|
|
Total excluding RIPs
|
|
|
RIPs collected (expensed)
|
|
|
Total including RIPs
|
|
||||||||
|
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
|||||||||||||||||||||||||||||||
Net losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
N. California wildfires
|
$
|
61
|
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
42
|
|
|
$
|
256
|
|
|
$
|
(21
|
)
|
|
$
|
277
|
|
S. California wildfires
|
23
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|
—
|
|
|
157
|
|
||||||||
Hurricane Harvey
|
391
|
|
|
175
|
|
|
1
|
|
|
40
|
|
|
48
|
|
|
655
|
|
|
5
|
|
|
650
|
|
||||||||
Hurricane Irma
|
464
|
|
|
206
|
|
|
2
|
|
|
79
|
|
|
159
|
|
|
910
|
|
|
30
|
|
|
880
|
|
||||||||
Hurricane Maria
|
50
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
55
|
|
|
194
|
|
|
(7
|
)
|
|
201
|
|
||||||||
Mexico Earthquakes
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
||||||||
Other
|
231
|
|
|
205
|
|
|
15
|
|
|
96
|
|
|
9
|
|
|
556
|
|
|
—
|
|
|
556
|
|
||||||||
Total
|
$
|
1,220
|
|
|
$
|
871
|
|
|
$
|
18
|
|
|
$
|
331
|
|
|
$
|
313
|
|
|
$
|
2,753
|
|
|
|
|
|
||||
RIPs collected (expensed)
|
(4
|
)
|
|
(22
|
)
|
|
—
|
|
|
(4
|
)
|
|
37
|
|
|
|
|
7
|
|
|
|
||||||||||
Total before income tax
|
$
|
1,224
|
|
|
$
|
893
|
|
|
$
|
18
|
|
|
$
|
335
|
|
|
$
|
276
|
|
|
|
|
|
|
$
|
2,746
|
|
||||
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
575
|
|
|||||||||||||||
Total after income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,171
|
|
•
|
Downward revision in the 2019 crop year margin estimate reflecting preventive planting claims due to the impact of wet weather conditions and crop yield shortfalls resulting from poor growing conditions;
|
•
|
Change in mix of business and earned price changes modestly below loss trends in certain classes of our business;
|
•
|
Partially offset by the adverse impact of elevated homeowners losses in the prior year.
|
•
|
Increased frequency and severity of homeowners losses in our North America Personal P&C Insurance segment, primarily non-catastrophe water related events and large fire losses;
|
•
|
Higher non-catastrophe large losses in our North America Commercial P&C Insurance segment;
|
•
|
Partially offset by integration-related claims handling expense savings realized.
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
CAY Loss and loss expense ratio ex CATs
|
60.8
|
%
|
|
59.6
|
%
|
|
58.8
|
%
|
CAY Policy acquisition cost ratio ex CATs
|
19.1
|
%
|
|
19.2
|
%
|
|
19.4
|
%
|
CAY Administrative expense ratio ex CATs
|
9.3
|
%
|
|
9.2
|
%
|
|
9.4
|
%
|
CAY P&C combined ratio ex CATs
|
89.2
|
%
|
|
88.0
|
%
|
|
87.6
|
%
|
|
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Net premiums fully earned when written
|
$
|
391
|
|
|
$
|
342
|
|
|
$
|
160
|
|
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Catastrophe losses (excludes reinstatement premiums)
|
$
|
421
|
|
|
$
|
579
|
|
|
$
|
1,220
|
|
Favorable prior period development
|
$
|
649
|
|
|
$
|
610
|
|
|
$
|
746
|
|
•
|
2019: Winter-related storms and other severe weather-related events in the U.S., including tornadoes in Texas, Hurricane Dorian, and Tropical Storm Imelda
|
•
|
2018: Hurricanes Florence and Michael, and severe weather-related events in the U.S., including California wildfires
|
•
|
2017: Hurricanes Harvey, Irma and Maria and severe weather-related events in the U.S., including California wildfires
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
|||||||
Net premiums written
|
$
|
4,787
|
|
|
$
|
4,674
|
|
|
$
|
4,533
|
|
|
2.4
|
%
|
|
3.1
|
%
|
||||
Net premiums earned
|
4,694
|
|
|
4,593
|
|
|
4,399
|
|
|
2.2
|
%
|
|
4.4
|
%
|
|||||||
Losses and loss expenses
|
3,043
|
|
|
3,229
|
|
|
3,265
|
|
|
(5.8
|
)%
|
|
(1.1
|
)%
|
|||||||
Policy acquisition costs
|
948
|
|
|
939
|
|
|
899
|
|
|
1.0
|
%
|
|
4.4
|
%
|
|||||||
Administrative expenses
|
286
|
|
|
269
|
|
|
264
|
|
|
6.0
|
%
|
|
1.9
|
%
|
|||||||
Underwriting income (loss)
|
417
|
|
|
156
|
|
|
(29
|
)
|
|
167.2
|
%
|
|
NM
|
|
|||||||
Net investment income
|
258
|
|
|
236
|
|
|
226
|
|
|
9.2
|
%
|
|
4.4
|
%
|
|||||||
Other (income) expense
|
3
|
|
|
1
|
|
|
4
|
|
|
117.1
|
%
|
|
(75.0
|
)%
|
|||||||
Amortization of purchased intangibles
|
12
|
|
|
13
|
|
|
16
|
|
|
(11.1
|
)%
|
|
(18.8
|
)%
|
|||||||
Segment income
|
$
|
660
|
|
|
$
|
378
|
|
|
$
|
177
|
|
|
74.7
|
%
|
|
113.6
|
%
|
||||
Loss and loss expense ratio
|
64.8
|
%
|
|
70.3
|
%
|
|
74.2
|
%
|
|
(5.5
|
)
|
pts
|
|
|
(3.9
|
)
|
pts
|
|
|||
Policy acquisition cost ratio
|
20.2
|
%
|
|
20.4
|
%
|
|
20.4
|
%
|
|
(0.2
|
)
|
pts
|
|
|
—
|
|
|
||||
Administrative expense ratio
|
6.1
|
%
|
|
5.9
|
%
|
|
6.1
|
%
|
|
0.2
|
|
pts
|
|
|
(0.2
|
)
|
pts
|
|
|||
Combined ratio
|
91.1
|
%
|
|
96.6
|
%
|
|
100.7
|
%
|
|
(5.5
|
)
|
pts
|
|
|
(4.1
|
)
|
pts
|
|
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Catastrophe losses (excludes reinstatement premiums)
|
$
|
543
|
|
|
$
|
611
|
|
|
$
|
871
|
|
Favorable (unfavorable) prior period development
|
$
|
95
|
|
|
$
|
(41
|
)
|
|
$
|
(69
|
)
|
•
|
2019: Winter-related storms and other severe weather-related events in the U.S., including tornadoes in Texas, California wildfires and Hurricane Dorian
|
•
|
2018: Colorado rain and hailstorms, Hurricanes Florence and Michael, California mudslides, and other severe weather-related events in the U.S., including California wildfires
|
•
|
2017: Hurricanes Harvey and Irma and severe weather-related events in the U.S., including California wildfires
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
Loss and loss expense ratio
|
64.8
|
%
|
|
70.3
|
%
|
|
74.2
|
%
|
Catastrophe losses
|
(11.6
|
)%
|
|
(13.6
|
)%
|
|
(20.1
|
)%
|
Favorable (unfavorable) prior period development
|
1.9
|
%
|
|
(0.9
|
)%
|
|
(1.5
|
)%
|
CAY loss ratio excluding catastrophe losses
|
55.1
|
%
|
|
55.8
|
%
|
|
52.6
|
%
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
|||||||
Net premiums written
|
$
|
1,810
|
|
|
$
|
1,577
|
|
|
$
|
1,516
|
|
|
14.8
|
%
|
|
4.0
|
%
|
||||
Net premiums earned
|
1,795
|
|
|
1,569
|
|
|
1,508
|
|
|
14.4
|
%
|
|
4.1
|
%
|
|||||||
Adjusted losses and loss expenses
|
1,616
|
|
|
1,114
|
|
|
1,043
|
|
|
45.1
|
%
|
|
6.8
|
%
|
|||||||
Policy acquisition costs
|
84
|
|
|
79
|
|
|
81
|
|
|
6.8
|
%
|
|
(2.5
|
)%
|
|||||||
Administrative expenses
|
6
|
|
|
(9
|
)
|
|
(8
|
)
|
|
NM
|
|
|
12.5
|
%
|
|||||||
Underwriting income
|
89
|
|
|
385
|
|
|
392
|
|
|
(77.0
|
)%
|
|
(1.8
|
)%
|
|||||||
Net investment income
|
30
|
|
|
28
|
|
|
25
|
|
|
5.0
|
%
|
|
12.0
|
%
|
|||||||
Other (income) expense
|
1
|
|
|
2
|
|
|
2
|
|
|
(33.6
|
)%
|
|
—
|
|
|||||||
Amortization of purchased intangibles
|
28
|
|
|
28
|
|
|
29
|
|
|
(2.0
|
)%
|
|
(3.4
|
)%
|
|||||||
Segment income
|
$
|
90
|
|
|
$
|
383
|
|
|
$
|
386
|
|
|
(76.6
|
)%
|
|
(0.8
|
)%
|
||||
Loss and loss expense ratio
|
90.1
|
%
|
|
71.0
|
%
|
|
69.2
|
%
|
|
19.1
|
|
pts
|
|
|
1.8
|
|
pts
|
|
|||
Policy acquisition cost ratio
|
4.7
|
%
|
|
5.0
|
%
|
|
5.4
|
%
|
|
(0.3
|
)
|
pts
|
|
|
(0.4
|
)
|
pts
|
|
|||
Administrative expense ratio
|
0.3
|
%
|
|
(0.5
|
)%
|
|
(0.6
|
)%
|
|
0.8
|
|
pts
|
|
|
0.1
|
|
pts
|
|
|||
Combined ratio
|
95.1
|
%
|
|
75.5
|
%
|
|
74.0
|
%
|
|
19.6
|
|
pts
|
|
|
1.5
|
|
pts
|
|
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Catastrophe losses (excludes reinstatement premiums)
|
$
|
8
|
|
|
$
|
21
|
|
|
$
|
18
|
|
Favorable prior period development
|
$
|
80
|
|
|
$
|
110
|
|
|
$
|
119
|
|
|
|
|
|
|
|
|
% Change
|
|
|||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
|||||||
Net premiums written
|
$
|
9,262
|
|
|
$
|
8,902
|
|
|
$
|
8,350
|
|
|
4.0
|
%
|
|
6.6
|
%
|
||||
Net premiums earned
|
8,882
|
|
|
8,612
|
|
|
8,131
|
|
|
3.1
|
%
|
|
5.9
|
%
|
|||||||
Losses and loss expenses
|
4,606
|
|
|
4,429
|
|
|
4,281
|
|
|
4.0
|
%
|
|
3.5
|
%
|
|||||||
Policy acquisition costs
|
2,501
|
|
|
2,346
|
|
|
2,221
|
|
|
6.6
|
%
|
|
5.6
|
%
|
|||||||
Administrative expenses
|
1,033
|
|
|
1,014
|
|
|
982
|
|
|
1.9
|
%
|
|
3.3
|
%
|
|||||||
Underwriting income
|
742
|
|
|
823
|
|
|
647
|
|
|
(9.8
|
)%
|
|
27.2
|
%
|
|||||||
Net investment income
|
588
|
|
|
619
|
|
|
610
|
|
|
(5.1
|
)%
|
|
1.5
|
%
|
|||||||
Other (income) expense
|
12
|
|
|
—
|
|
|
(4
|
)
|
|
NM
|
|
|
NM
|
|
|||||||
Amortization of purchased intangibles
|
45
|
|
|
41
|
|
|
45
|
|
|
8.3
|
%
|
|
(8.9
|
)%
|
|||||||
Segment income
|
$
|
1,273
|
|
|
$
|
1,401
|
|
|
$
|
1,216
|
|
|
(9.2
|
)%
|
|
15.2
|
%
|
||||
Net premiums written - constant dollars (1)
|
|
|
|
|
|
|
8.4
|
%
|
|
5.3
|
%
|
||||||||||
Net premiums earned - constant dollars (1)
|
|
|
|
|
|
|
7.6
|
%
|
|
4.7
|
%
|
||||||||||
Underwriting income - constant dollars (1)
|
|
|
|
|
|
|
(3.7
|
)%
|
|
24.1
|
%
|
||||||||||
Loss and loss expense ratio
|
51.9
|
%
|
|
51.4
|
%
|
|
52.6
|
%
|
|
0.5
|
|
pts
|
|
(1.2
|
)
|
pts
|
|||||
Policy acquisition cost ratio
|
28.1
|
%
|
|
27.2
|
%
|
|
27.3
|
%
|
|
0.9
|
|
pts
|
|
(0.1
|
)
|
pts
|
|||||
Administrative expense ratio
|
11.6
|
%
|
|
11.8
|
%
|
|
12.1
|
%
|
|
(0.2
|
)
|
pts
|
|
(0.3
|
)
|
pts
|
|||||
Combined ratio
|
91.6
|
%
|
|
90.4
|
%
|
|
92.0
|
%
|
|
1.2
|
|
pts
|
|
(1.6
|
)
|
pts
|
|
|
|
|
|
|
|
|
|
% Change
|
|
||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
C$ (1)
2018 |
|
|
2019 vs. 2018
|
|
|
C$ (1) 2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
||||
Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Europe
|
$
|
3,631
|
|
|
$
|
3,508
|
|
|
$
|
3,281
|
|
|
$
|
3,357
|
|
|
3.5
|
%
|
|
8.2
|
%
|
|
6.9
|
%
|
Latin America
|
2,277
|
|
|
2,181
|
|
|
2,108
|
|
|
2,059
|
|
|
4.4
|
%
|
|
10.6
|
%
|
|
3.5
|
%
|
||||
Asia
|
3,021
|
|
|
2,884
|
|
|
2,596
|
|
|
2,806
|
|
|
4.7
|
%
|
|
7.6
|
%
|
|
11.1
|
%
|
||||
Other (2)
|
333
|
|
|
329
|
|
|
365
|
|
|
318
|
|
|
1.1
|
%
|
|
4.8
|
%
|
|
(9.9
|
)%
|
||||
Net premiums written
|
$
|
9,262
|
|
|
$
|
8,902
|
|
|
$
|
8,350
|
|
|
$
|
8,540
|
|
|
4.0
|
%
|
|
8.4
|
%
|
|
6.6
|
%
|
|
2019
% of Total
|
|
|
2018
% of Total
|
|
|
2017
% of Total
|
|
|
|
|
|
|
|
|
|
||||||||
Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Europe
|
38
|
%
|
|
39
|
%
|
|
40
|
%
|
|
|
|
|
|
|
|
|
||||||||
Latin America
|
25
|
%
|
|
25
|
%
|
|
25
|
%
|
|
|
|
|
|
|
|
|
||||||||
Asia
|
33
|
%
|
|
32
|
%
|
|
31
|
%
|
|
|
|
|
|
|
|
|
||||||||
Other (2)
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
||||||||
Net premiums written
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
(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)
|
Comprises Combined International, Eurasia and Africa region, and other international.
|
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Catastrophe losses (excludes reinstatement premiums)
|
$
|
152
|
|
|
$
|
206
|
|
|
$
|
331
|
|
Favorable prior period development
|
$
|
92
|
|
|
$
|
212
|
|
|
$
|
252
|
|
•
|
2019: Typhoons Faxai and Hagibis; Hurricane Dorian; storms in Australia; civil unrest in Hong Kong and Chile; and other international weather-related events
|
•
|
2018: Typhoons Jebi, Mangkhut and Trami; Hurricane Florence and storms in Australia
|
•
|
2017: Hurricanes Harvey, Irma and Maria; Earthquakes in Mexico, Cyclone Debbie in Australia, and flooding in Latin America
|
|
|
|
|
|
% Change
|
|
|||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
|||||||
Net premiums written
|
$
|
649
|
|
|
$
|
671
|
|
|
$
|
685
|
|
|
(3.2
|
)%
|
|
(2.1
|
)%
|
||||
Net premiums earned
|
654
|
|
|
670
|
|
|
704
|
|
|
(2.3
|
)%
|
|
(4.9
|
)%
|
|||||||
Losses and loss expenses
|
352
|
|
|
479
|
|
|
561
|
|
|
(26.5
|
)%
|
|
(14.7
|
)%
|
|||||||
Policy acquisition costs
|
169
|
|
|
162
|
|
|
177
|
|
|
4.2
|
%
|
|
(8.4
|
)%
|
|||||||
Administrative expenses
|
35
|
|
|
41
|
|
|
44
|
|
|
(12.7
|
)%
|
|
(8.4
|
)%
|
|||||||
Underwriting income (loss)
|
98
|
|
|
(12
|
)
|
|
(78
|
)
|
|
NM
|
|
|
84.8
|
%
|
|||||||
Net investment income
|
220
|
|
|
257
|
|
|
273
|
|
|
(14.4
|
)%
|
|
(6.1
|
)%
|
|||||||
Other (income) expense
|
(58
|
)
|
|
(32
|
)
|
|
(1
|
)
|
|
80.6
|
%
|
|
NM
|
|
|||||||
Segment income
|
$
|
376
|
|
|
$
|
277
|
|
|
$
|
196
|
|
|
35.7
|
%
|
|
41.3
|
%
|
||||
Net premiums written - constant dollars (1)
|
|
|
|
|
|
|
(1.7
|
)%
|
|
(3.3
|
)%
|
||||||||||
Net premiums earned - constant dollars (1)
|
|
|
|
|
|
|
(0.8
|
)%
|
|
(6.0
|
)%
|
||||||||||
Underwriting income - constant dollars (1)
|
|
|
|
|
|
|
NM
|
|
|
84.0
|
%
|
||||||||||
Loss and loss expense ratio
|
53.9
|
%
|
|
71.6
|
%
|
|
79.8
|
%
|
|
(17.7
|
)
|
pts
|
|
|
(8.2
|
)
|
pts
|
|
|||
Policy acquisition cost ratio
|
25.7
|
%
|
|
24.2
|
%
|
|
25.1
|
%
|
|
1.5
|
|
pts
|
|
|
(0.9
|
)
|
pts
|
|
|||
Administrative expense ratio
|
5.4
|
%
|
|
6.0
|
%
|
|
6.3
|
%
|
|
(0.6
|
)
|
pts
|
|
|
(0.3
|
)
|
pts
|
|
|||
Combined ratio
|
85.0
|
%
|
|
101.8
|
%
|
|
111.2
|
%
|
|
(16.8
|
)
|
pts
|
|
|
(9.4
|
)
|
pts
|
|
(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.
|
(in millions of U.S dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Catastrophe losses (excludes reinstatement premiums)
|
$
|
51
|
|
|
$
|
205
|
|
|
$
|
313
|
|
Favorable prior period development
|
$
|
29
|
|
|
$
|
50
|
|
|
$
|
59
|
|
•
|
2019: Typhoons Hagibis and Faxai; Hurricane Dorian, and other severe weather-related events primarily in the U.S.
|
•
|
2018: Hurricanes Florence and Michael; Typhoons Jebi and Trami; Windstorm Friederike, California Wildfires, and severe weather-related events in the U.S., Canada and Japan
|
•
|
2017: Hurricanes Harvey, Irma and Maria; Northern California Wildfires, and severe weather-related events in the U.S.
|
|
|
|
|
|
% Change
|
|
|||||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
|||
Net premiums written
|
$
|
2,392
|
|
|
$
|
2,270
|
|
|
$
|
2,141
|
|
|
5.3
|
%
|
|
6.1
|
%
|
Net premiums earned
|
2,343
|
|
|
2,218
|
|
|
2,101
|
|
|
5.6
|
%
|
|
5.6
|
%
|
|||
Losses and loss expenses
|
757
|
|
|
766
|
|
|
739
|
|
|
(1.1
|
)%
|
|
3.7
|
%
|
|||
Adjusted policy benefits
|
696
|
|
|
628
|
|
|
579
|
|
|
10.8
|
%
|
|
8.5
|
%
|
|||
Policy acquisition costs
|
620
|
|
|
557
|
|
|
530
|
|
|
11.2
|
%
|
|
5.1
|
%
|
|||
Administrative expenses
|
323
|
|
|
310
|
|
|
303
|
|
|
4.5
|
%
|
|
2.3
|
%
|
|||
Net investment income
|
373
|
|
|
341
|
|
|
313
|
|
|
9.2
|
%
|
|
8.9
|
%
|
|||
Life Insurance underwriting income
|
320
|
|
|
298
|
|
|
263
|
|
|
6.9
|
%
|
|
13.3
|
%
|
|||
Other (income) expense
|
(48
|
)
|
|
(12
|
)
|
|
13
|
|
|
NM
|
|
|
NM
|
|
|||
Amortization of purchased intangibles
|
2
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||
Segment income
|
$
|
366
|
|
|
$
|
308
|
|
|
$
|
248
|
|
|
18.6
|
%
|
|
24.2
|
%
|
Net premiums written - constant dollars (1)
|
|
|
|
|
|
|
6.4
|
%
|
|
5.7
|
%
|
||||||
Net premiums earned - constant dollars (1)
|
|
|
|
|
|
|
6.6
|
%
|
|
5.3
|
%
|
||||||
Life Insurance underwriting income - constant dollars (1)
|
|
|
|
|
|
|
8.1
|
%
|
|
13.9
|
%
|
||||||
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
% Change
|
|
|||||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019 vs. 2018
|
|
|
C$ (1) 2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
|||
Deposits collected on universal life and investment contracts
|
$
|
1,463
|
|
|
$
|
1,538
|
|
|
$
|
1,436
|
|
|
(4.9
|
)%
|
|
(2.3
|
)%
|
|
7.1
|
%
|
(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.
|
|
|
|
% Change
|
|
|||||||||||||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019 vs. 2018
|
|
|
2018 vs. 2017
|
|
|||
Losses and loss expenses
|
$
|
158
|
|
|
$
|
53
|
|
|
$
|
285
|
|
|
203.0
|
%
|
|
(81.4
|
)%
|
Administrative expenses
|
319
|
|
|
295
|
|
|
267
|
|
|
8.1
|
%
|
|
10.5
|
%
|
|||
Underwriting loss
|
477
|
|
|
348
|
|
|
552
|
|
|
36.6
|
%
|
|
(37.0
|
)%
|
|||
Net investment income (loss)
|
(125
|
)
|
|
(209
|
)
|
|
(283
|
)
|
|
(40.5
|
)%
|
|
(26.1
|
)%
|
|||
Interest expense
|
552
|
|
|
641
|
|
|
607
|
|
|
(13.9
|
)%
|
|
5.6
|
%
|
|||
Adjusted net realized gains (losses)
|
(522
|
)
|
|
(649
|
)
|
|
91
|
|
|
(19.7
|
)%
|
|
NM
|
|
|||
Other (income) expense
|
(459
|
)
|
|
(406
|
)
|
|
(318
|
)
|
|
12.6
|
%
|
|
27.7
|
%
|
|||
Amortization of purchased intangibles
|
218
|
|
|
255
|
|
|
168
|
|
|
(14.3
|
)%
|
|
51.8
|
%
|
|||
Chubb integration expenses
|
23
|
|
|
59
|
|
|
310
|
|
|
(61.7
|
)%
|
|
(81.0
|
)%
|
|||
Income tax expense (benefit)
|
795
|
|
|
695
|
|
|
(139
|
)
|
|
14.4
|
%
|
|
NM
|
|
|||
Net loss
|
$
|
(2,253
|
)
|
|
$
|
(2,450
|
)
|
|
$
|
(1,372
|
)
|
|
(8.1
|
)%
|
|
78.6
|
%
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|||||||||
|
December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Policy benefits
|
$
|
740
|
|
|
$
|
590
|
|
|
$
|
676
|
|
Add: (Gains) losses from fair value changes in separate account assets
|
(44
|
)
|
|
38
|
|
|
(97
|
)
|
|||
Adjusted policy benefits
|
$
|
696
|
|
|
$
|
628
|
|
|
$
|
579
|
|
|
Year Ended
|
|
|||||||||
|
December 31
|
|
|||||||||
(in millions of U.S. dollars, except for percentage points)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Actual level of CATs - pre-tax
|
$
|
1,187
|
|
|
$
|
1,626
|
|
|
$
|
2,746
|
|
Less: Expected level of CATs - pre-tax
|
969
|
|
|
937
|
|
|
908
|
|
|||
CATs above expected level - pre-tax
|
$
|
218
|
|
|
$
|
689
|
|
|
$
|
1,838
|
|
Adverse impact of CATs above an expected level on combined ratio
|
0.7
|
%
|
|
2.5
|
%
|
|
6.8
|
%
|
|
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Average invested assets
|
$
|
104,074
|
|
|
$
|
101,453
|
|
|
$
|
99,675
|
|
Net investment income (1)
|
$
|
3,426
|
|
|
$
|
3,305
|
|
|
$
|
3,125
|
|
Yield on average invested assets
|
3.3
|
%
|
|
3.3
|
%
|
|
3.1
|
%
|
|||
Market yield on fixed maturities
|
2.7
|
%
|
|
3.7
|
%
|
|
2.9
|
%
|
(1)
|
Includes $161 million, $248 million and $332 million of amortization expense related to the fair value adjustment of acquired invested assets related to the Chubb Corp acquisition in 2019, 2018 and 2017, respectively.
|
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
||
Total mark-to-market gain on private equity, pre-tax
|
$
|
449
|
|
|
$
|
298
|
|
|
|
|
|
|
|
Estimated Interest Expense
|
|
|
Actual Interest Expense
|
|
||||||||||||||||||
|
First Quarter
|
|
|
Second Quarter
|
|
|
Third Quarter
|
|
|
Fourth Quarter
|
|
|
Full Year
|
|
|
Full Year
|
|
|
Full Year
|
|
|||||||
(in millions of U.S. dollars)
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|||||||
Fixed interest expense based on outstanding debt
|
$
|
123
|
|
|
$
|
123
|
|
|
$
|
122
|
|
|
$
|
118
|
|
|
$
|
486
|
|
|
$
|
488
|
|
|
$
|
520
|
|
Variable interest expense based on expected usage
|
18
|
|
|
18
|
|
|
18
|
|
|
18
|
|
|
72
|
|
|
85
|
|
|
154
|
|
|||||||
Adjusted interest expense
|
$
|
141
|
|
|
$
|
141
|
|
|
$
|
140
|
|
|
$
|
136
|
|
|
$
|
558
|
|
|
$
|
573
|
|
|
$
|
674
|
|
Amortization of the fair value of debt assumed in the Chubb Corp acquisition
|
(5
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
(21
|
)
|
|
(21
|
)
|
|
(33
|
)
|
|||||||
Total interest expense, including amortization of the fair value of debt
|
$
|
136
|
|
|
$
|
136
|
|
|
$
|
135
|
|
|
$
|
130
|
|
|
$
|
537
|
|
|
$
|
552
|
|
|
$
|
641
|
|
|
|
Year Ended December 31
|
|
|||||||||||||||||||||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||||||||||||||||||
(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
|
|
|
Net
Realized
Gains
(Losses)
|
|
|||||||
Fixed maturities
|
$
|
(31
|
)
|
|
$
|
3,738
|
|
|
$
|
3,707
|
|
|
$
|
(302
|
)
|
|
$
|
(1,996
|
)
|
|
$
|
(2,298
|
)
|
|
$
|
(31
|
)
|
Fixed income and equity derivatives
|
(435
|
)
|
|
—
|
|
|
(435
|
)
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
|
(11
|
)
|
|||||||
Public equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales
|
58
|
|
|
—
|
|
|
58
|
|
|
70
|
|
|
—
|
|
|
70
|
|
|
16
|
|
|||||||
Mark-to-market
|
46
|
|
|
—
|
|
|
46
|
|
|
(129
|
)
|
|
—
|
|
|
(129
|
)
|
|
—
|
|
|||||||
Private equity (less than 3 percent ownership)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
121
|
|
|
—
|
|
|
121
|
|
|
(11
|
)
|
|||||||
Mark-to-market
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
|
(126
|
)
|
|
—
|
|
|
(126
|
)
|
|
—
|
|
|||||||
Total investment portfolio
|
(382
|
)
|
|
3,738
|
|
|
3,356
|
|
|
(441
|
)
|
|
(1,996
|
)
|
|
(2,437
|
)
|
|
(37
|
)
|
|||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges
|
(142
|
)
|
|
—
|
|
|
(142
|
)
|
|
(252
|
)
|
|
—
|
|
|
(252
|
)
|
|
103
|
|
|||||||
Other derivatives
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
(5
|
)
|
|||||||
Foreign exchange
|
7
|
|
|
13
|
|
|
20
|
|
|
131
|
|
|
(802
|
)
|
|
(671
|
)
|
|
36
|
|
|||||||
Other (1)
|
(5
|
)
|
|
(79
|
)
|
|
(84
|
)
|
|
(87
|
)
|
|
(321
|
)
|
|
(408
|
)
|
|
(13
|
)
|
|||||||
Net gains (losses), pre-tax
|
$
|
(530
|
)
|
|
$
|
3,672
|
|
|
$
|
3,142
|
|
|
$
|
(652
|
)
|
|
$
|
(3,119
|
)
|
|
$
|
(3,771
|
)
|
|
$
|
84
|
|
(1)
|
Net unrealized gains (losses) includes our postretirement programs of $(76) million, $(321) million, and $(16) million for the years ended December 31, 2019, 2018, and 2017, respectively.
|
|
For the Years Ending December 31
(in millions of U.S. dollars) |
Reduction to deferred tax liability associated with intangible assets
|
|
|
2020
|
$
|
72
|
|
2021
|
67
|
|
|
2022
|
64
|
|
|
2023
|
60
|
|
|
2024
|
55
|
|
|
Total
|
$
|
318
|
|
|
Amortization (expense) benefit of the fair value adjustment on
|
|
|||||
For the Years Ending December 31
(in millions of U.S. dollars) |
Acquired invested assets (1)
|
|
|
Assumed long-term debt (2)
|
|
||
2020
|
$
|
(130
|
)
|
|
$
|
21
|
|
2021
|
(110
|
)
|
|
21
|
|
||
2022
|
(92
|
)
|
|
21
|
|
||
2023
|
—
|
|
|
21
|
|
||
2024
|
—
|
|
|
21
|
|
||
Total
|
$
|
(332
|
)
|
|
$
|
105
|
|
(1)
|
Recorded as a reduction to Net investment income in the Consolidated statements of operations.
|
(2)
|
Recorded as a reduction to Interest expense in the Consolidated statements of operations.
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||
(in millions of U.S. dollars)
|
Fair
Value
|
|
|
Cost/
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Cost/
Amortized
Cost
|
|
||||
Fixed maturities available for sale
|
$
|
85,488
|
|
|
$
|
82,580
|
|
|
$
|
78,470
|
|
|
$
|
79,323
|
|
Fixed maturities held to maturity
|
13,005
|
|
|
12,581
|
|
|
13,259
|
|
|
13,435
|
|
||||
Short-term investments
|
4,291
|
|
|
4,291
|
|
|
3,016
|
|
|
3,016
|
|
||||
|
102,784
|
|
|
99,452
|
|
|
94,745
|
|
|
95,774
|
|
||||
Equity securities
|
812
|
|
|
812
|
|
|
770
|
|
|
770
|
|
||||
Other investments
|
6,062
|
|
|
6,062
|
|
|
5,277
|
|
|
5,277
|
|
||||
Total investments
|
$
|
109,658
|
|
|
$
|
106,326
|
|
|
$
|
100,792
|
|
|
$
|
101,821
|
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
Wells Fargo & Co
|
$
|
637
|
|
Bank of America Corp
|
575
|
|
|
JP Morgan Chase & Co
|
568
|
|
|
Comcast Corp
|
461
|
|
|
HSBC Holdings Plc
|
396
|
|
|
AT&T Inc
|
392
|
|
|
Citigroup Inc
|
392
|
|
|
Verizon Communications Inc
|
381
|
|
|
Goldman Sachs Group Inc
|
369
|
|
|
Morgan Stanley
|
358
|
|
|
S&P Credit Rating
|
|
|
Market Value
|
|
|
Amortized Cost
|
|
|||||||||||||||||||
December 31, 2019 (in millions of U.S. dollars)
|
AAA
|
|
|
AA
|
|
|
A
|
|
|
BBB
|
|
|
BB and
below
|
|
|
Total
|
|
|
Total
|
|
|||||||
Agency residential mortgage-backed (RMBS)
|
$
|
187
|
|
|
$
|
17,722
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,909
|
|
|
$
|
17,436
|
|
Non-agency RMBS
|
184
|
|
|
32
|
|
|
75
|
|
|
18
|
|
|
10
|
|
|
319
|
|
|
317
|
|
|||||||
Commercial mortgage-backed
|
2,946
|
|
|
272
|
|
|
136
|
|
|
6
|
|
|
—
|
|
|
3,360
|
|
|
3,290
|
|
|||||||
Total mortgage-backed securities
|
$
|
3,317
|
|
|
$
|
18,026
|
|
|
$
|
211
|
|
|
$
|
24
|
|
|
$
|
10
|
|
|
$
|
21,588
|
|
|
$
|
21,043
|
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
Amortized Cost
|
|
||
Republic of Korea
|
$
|
1,032
|
|
|
$
|
920
|
|
United Kingdom
|
924
|
|
|
903
|
|
||
Canada
|
835
|
|
|
830
|
|
||
Federative Republic of Brazil
|
688
|
|
|
669
|
|
||
Kingdom of Thailand
|
652
|
|
|
558
|
|
||
Province of Ontario
|
644
|
|
|
634
|
|
||
United Mexican States
|
567
|
|
|
554
|
|
||
Province of Quebec
|
496
|
|
|
484
|
|
||
Commonwealth of Australia
|
365
|
|
|
324
|
|
||
Socialist Republic of Vietnam
|
362
|
|
|
277
|
|
||
Other Non-U.S. Government Securities
|
4,890
|
|
|
4,706
|
|
||
Total
|
$
|
11,455
|
|
|
$
|
10,859
|
|
(in millions of U.S. dollars)
|
Market Value
|
|
|
Amortized Cost
|
|
||
United Kingdom
|
$
|
2,316
|
|
|
$
|
2,224
|
|
Canada
|
1,781
|
|
|
1,735
|
|
||
United States (1)
|
1,156
|
|
|
1,111
|
|
||
France
|
1,136
|
|
|
1,088
|
|
||
Australia
|
813
|
|
|
781
|
|
||
Netherlands
|
685
|
|
|
656
|
|
||
Japan
|
587
|
|
|
576
|
|
||
Germany
|
560
|
|
|
538
|
|
||
Switzerland
|
511
|
|
|
490
|
|
||
China
|
371
|
|
|
362
|
|
||
Other Non-U.S. Corporate Securities
|
3,821
|
|
|
3,673
|
|
||
Total
|
$
|
13,737
|
|
|
$
|
13,234
|
|
(1)
|
The countries that are listed in the non-U.S. corporate fixed income portfolio above represent the ultimate parent company's country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.
|
|
|
Asbestos (by causative agent)
|
|
|
Environmental (by account)
|
|
||||||
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Open at beginning of year
|
1,838
|
|
|
1,789
|
|
|
1,361
|
|
|
1,349
|
|
Newly reported/reopened
|
173
|
|
|
188
|
|
|
140
|
|
|
149
|
|
Closed or otherwise disposed
|
287
|
|
|
139
|
|
|
284
|
|
|
137
|
|
Open at end of year
|
1,724
|
|
|
1,838
|
|
|
1,217
|
|
|
1,361
|
|
|
|
Modeled Net Probable Maximum Loss (PML) Pre-tax
|
|||||||||||||||||||
|
Worldwide (1)
|
|
U.S. Hurricane (2)
|
|
California Earthquake (3)
|
|||||||||||||||
|
Annual Aggregate
|
|
Annual Aggregate
|
|
Single Occurrence
|
|||||||||||||||
(in millions of U.S. dollars, except for percentages)
|
Chubb
|
|
% of Total
Shareholders’ Equity |
|
Chubb
|
|
% of Total
Shareholders’ Equity |
|
Chubb
|
|
% of Total
Shareholders’ Equity |
|||||||||
1-in-10
|
$
|
1,873
|
|
|
3.4
|
%
|
|
$
|
1,089
|
|
|
2.0
|
%
|
|
$
|
129
|
|
|
0.2
|
%
|
1-in-100
|
$
|
3,804
|
|
|
6.9
|
%
|
|
$
|
2,685
|
|
|
4.9
|
%
|
|
$
|
1,338
|
|
|
2.4
|
%
|
1-in-250
|
$
|
6,227
|
|
|
11.3
|
%
|
|
$
|
4,698
|
|
|
8.5
|
%
|
|
$
|
1,513
|
|
|
2.7
|
%
|
(1)
|
Worldwide losses are comprised of losses arising only from hurricanes, typhoons, convective storms and earthquakes and do not include “non-modeled” perils such as wildfire and flood.
|
(2)
|
U.S. Hurricane losses include losses from wind and storm-surge and exclude rainfall.
|
(3)
|
California earthquakes include fire-following perils.
|
•
|
While the use of third-party catastrophe modeling packages to simulate potential hurricane and earthquake losses is prevalent within the insurance industry, the models are reliant upon significant meteorology, seismology, and engineering assumptions to estimate catastrophe losses. In particular, modeled catastrophe events are not always a representation of actual events and ensuing additional loss potential;
|
•
|
There is no universal standard in the preparation of insured data for use in the models, the running of the modeling software and interpretation of loss output. These loss estimates do not represent our potential maximum exposures and it is highly likely that our actual incurred losses would vary materially from the modeled estimates; and
|
•
|
The potential effects of climate change add to modeling complexity.
|
|
(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 partially placed with Reinsurers.
|
(c)
|
These coverages are both part of the same Second layer within the Global Catastrophe Program and are fully placed with Reinsurers.
|
(d)
|
These coverages are both part of the same Third layer within the Global Catastrophe Program and are fully placed with Reinsurers.
|
|
|
|
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
||
Short-term debt
|
$
|
1,299
|
|
|
$
|
509
|
|
Long-term debt
|
13,559
|
|
|
12,087
|
|
||
Total financial debt
|
14,858
|
|
|
12,596
|
|
||
Trust preferred securities
|
308
|
|
|
308
|
|
||
Total shareholders’ equity
|
55,331
|
|
|
50,312
|
|
||
Total capitalization
|
$
|
70,497
|
|
|
$
|
63,216
|
|
Ratio of financial debt to total capitalization
|
21.1
|
%
|
|
19.9
|
%
|
||
Ratio of financial debt plus trust preferred securities to total capitalization
|
21.5
|
%
|
|
20.4
|
%
|
•
|
$1.0 billion of Chubb Common Shares from November 17, 2016 through December 31, 2017
|
•
|
$1.0 billion of Chubb Common Shares from January 1, 2018 through December 31, 2018
|
•
|
$1.5 billion of Chubb Common Shares from December 1, 2018 through December 31, 2019
|
•
|
$1.5 billion of Chubb Common Shares from November 21, 2019 through December 31, 2020
|
|
|
Payments Due By Period
|
|
|||||||||||||||||
|
|
|
|
|
2021
|
|
|
2023
|
|
|
|
||||||||
(in millions of U.S. dollars)
|
Total
|
|
2020
|
|
and 2022
|
|
and 2024
|
|
Thereafter
|
|
|||||||||
Payment amounts determinable from the respective contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities (1)
|
$
|
2,092
|
|
|
$
|
21
|
|
|
$
|
51
|
|
|
$
|
131
|
|
|
$
|
1,889
|
|
Purchase obligations (2)
|
411
|
|
|
159
|
|
|
223
|
|
|
29
|
|
|
—
|
|
|||||
Investments, including Limited Partnerships (3)
|
3,994
|
|
|
1,328
|
|
|
1,721
|
|
|
895
|
|
|
50
|
|
|||||
Huatai share acquisition deposits (4)
|
1,550
|
|
|
1,550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Operating leases
|
660
|
|
|
158
|
|
|
243
|
|
|
154
|
|
|
105
|
|
|||||
Repurchase agreements
|
1,416
|
|
|
1,416
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Short-term debt
|
1,301
|
|
|
1,301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt (5)
|
13,292
|
|
|
—
|
|
|
1,000
|
|
|
1,954
|
|
|
10,338
|
|
|||||
Trust preferred securities
|
309
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|||||
Interest on debt obligations (5)
|
6,199
|
|
|
479
|
|
|
898
|
|
|
810
|
|
|
4,012
|
|
|||||
Total obligations in which payment amounts are determinable from the respective contracts
|
31,224
|
|
|
6,412
|
|
|
4,136
|
|
|
3,973
|
|
|
16,703
|
|
|||||
Payment amounts not determinable from the respective contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Estimated gross loss payments under insurance and reinsurance contracts
|
62,713
|
|
|
17,601
|
|
|
17,200
|
|
|
8,731
|
|
|
19,181
|
|
|||||
Estimated payments for future policy benefits
|
20,645
|
|
|
916
|
|
|
1,885
|
|
|
1,541
|
|
|
16,303
|
|
|||||
Total contractual obligations and commitments
|
$
|
114,582
|
|
|
$
|
24,929
|
|
|
$
|
23,221
|
|
|
$
|
14,245
|
|
|
$
|
52,187
|
|
(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)
|
Chubb entered into agreements to purchase incremental ownership interests in Huatai Insurance Group Company Limited through two separate purchases, a 15.3 percent ownership interest for approximately $1.1 billion and a 7.1 percent ownership interest for approximately $493 million. The purchases are contingent upon obtaining regulatory approvals and other important conditions, which are expected to be obtained by the end of 2021. The 7.1 percent purchase is also contingent upon receipt of Chinese insurance regulatory approval of the 15.3 percent purchase. In connection with these purchase agreements, in January 2020, we paid collateralized deposits totaling $1.550 billion to the selling shareholders, which are accounted for as loans.
|
(5)
|
Subject to foreign exchange fluctuations on interest expense and principal.
|
•
|
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 and offsetting tax credits, was $47 million at December 31, 2019. At December 31, 2019, we had accrued $8 million in liabilities for income tax-related interest and penalties in our Consolidated balance sheet. 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)
|
a minimum consolidated net worth of not less than $34.985 billion; and
|
(ii)
|
a ratio of consolidated debt to total capitalization of not greater than 0.35 to 1.
|
|
|
(in billions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|||
Fair value of fixed income portfolio
|
$
|
102.8
|
|
|
$
|
94.7
|
|
|
Pre-tax impact of 100 bps increase in interest rates:
|
|
|
|
|||||
|
Decrease in dollars
|
$
|
3.9
|
|
|
$
|
3.5
|
|
|
As a percentage of total fixed income portfolio at fair value
|
3.8
|
%
|
|
3.7
|
%
|
(in millions of U.S. dollars, except for percentages)
|
2019
|
|
|
2018
|
|
|||
Fair value of debt obligations, including repurchase agreements
|
$
|
18,238
|
|
|
$
|
14,524
|
|
|
Pre-tax impact of 100 bps decrease in interest rates:
|
|
|
|
|||||
|
Increase in dollars
|
$
|
1,570
|
|
|
$
|
1,201
|
|
|
As a percentage of total debt obligations at fair value
|
8.6
|
%
|
|
8.3
|
%
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
2019 vs. 2018 % change in exchange rate per USD
|
|
||||
(in millions of U.S. dollars, except for percentages)
|
|
Value of
Net Assets
|
|
|
Exchange
rate
per USD
|
|
|
Value of
Net Assets |
|
|
Exchange
rate per USD |
|
|
||||
Canadian dollar (CAD)
|
|
$
|
2,220
|
|
|
0.7698
|
|
$
|
2,114
|
|
|
0.7333
|
|
|
5.0
|
%
|
|
British pound sterling (GBP)
|
|
2,024
|
|
|
1.3257
|
|
1,901
|
|
|
1.2754
|
|
|
3.9
|
%
|
|||
Euro (EUR)
|
|
1,675
|
|
|
1.1213
|
|
1,896
|
|
|
1.1467
|
|
|
(2.2
|
)%
|
|||
Australian dollar (AUD)
|
|
1,100
|
|
|
0.7021
|
|
1,149
|
|
|
0.7049
|
|
|
(0.4
|
)%
|
|||
Brazilian real (BRL)
|
|
990
|
|
|
0.2485
|
|
938
|
|
|
0.2577
|
|
|
(3.6
|
)%
|
|||
Mexican peso (MXN)
|
|
942
|
|
|
0.0528
|
|
729
|
|
|
0.0509
|
|
|
3.7
|
%
|
|||
Korean won (KRW) (x100)
|
|
788
|
|
|
0.0865
|
|
726
|
|
|
0.0900
|
|
|
(3.9
|
)%
|
|||
Hong Kong dollar (HKD)
|
|
653
|
|
|
0.1284
|
|
362
|
|
|
0.1277
|
|
|
0.5
|
%
|
|||
Thai baht (THB)
|
|
606
|
|
|
0.0337
|
|
459
|
|
|
0.0309
|
|
|
9.1
|
%
|
|||
Chilean peso (CLP) (x100)
|
|
489
|
|
|
0.1328
|
|
28
|
|
|
0.1441
|
|
|
(7.8
|
)%
|
|||
Euro denominated debt (1)
|
|
(4,804
|
)
|
|
1.1213
|
|
|
(2,016
|
)
|
|
1.1467
|
|
|
(2.2
|
)%
|
||
Other foreign currencies
|
|
2,474
|
|
|
various
|
|
|
2,106
|
|
|
various
|
|
|
NM
|
|
||
Value of net assets denominated in foreign currencies (2)
|
|
$
|
9,157
|
|
|
|
|
$
|
10,392
|
|
|
|
|
|
|||
As a percentage of total net assets
|
|
16.6
|
%
|
|
|
|
20.7
|
%
|
|
|
|
|
|||||
Pre-tax decrease to Shareholders' equity of a hypothetical 10 percent strengthening of the U.S. dollar
|
|
$
|
832
|
|
|
|
|
$
|
945
|
|
|
|
|
|
(1)
|
Refer to Note 9 to the Consolidated Financial Statements for additional information.
|
(2)
|
At December 31, 2019, net assets denominated in foreign currencies comprised approximately 6 percent tangible assets and 94 percent intangible assets, primarily goodwill.
|
•
|
No changes to the benefit ratio used to establish benefit reserves at December 31, 2019.
|
•
|
Equity shocks impact all global equity markets equally
|
•
|
Our liabilities are sensitive to global equity markets in the following proportions: 75 percent—85 percent U.S. equity, and 15 percent—25 percent international equity.
|
•
|
Our current hedge portfolio is sensitive only to U.S. equity markets.
|
•
|
We would suggest using the S&P 500 index as a proxy for U.S. equity, and the MSCI EAFE index as a proxy for international 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: 5 percent—15 percent short-term rates (maturing in less than 5 years), 25 percent—35 percent medium-term rates (maturing between 5 years and 10 years, inclusive), and 55 percent—65 percent long-term rates (maturing beyond 10 years).
|
•
|
A change in AA-rated credit spreads impacts the rate used to discount cash flows in the fair value model. AA-rated credit spreads are a proxy for both our own credit spreads and the credit spreads of the ceding insurers.
|
•
|
The hedge sensitivity is from December 31, 2019 market levels and only applicable to the equity and interest rate sensitivities table below.
|
•
|
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.
|
•
|
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. This realized loss occurs primarily because the guarantees provided in the underlying contracts continue to become more valuable even when markets remain unchanged. 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 2020 to various changes, it is necessary to assume an additional $5 million to $45 million increase in Gross FVL and realized losses. The impact to Net income is partially mitigated because this realized loss is partially 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 Insurance underwriting income change over time as the book ages.
|
Sensitivities to equity and interest rate movements
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(in millions of U.S. dollars)
|
Worldwide Equity Shock
|
|||||||||||||||||||||||
Interest Rate Shock
|
+10
|
%
|
|
Flat
|
|
|
-10
|
%
|
|
-20
|
%
|
|
-30
|
%
|
|
-40
|
%
|
|||||||
+100 bps
|
(Increase)/decrease in Gross FVL
|
$
|
343
|
|
|
$
|
207
|
|
|
$
|
49
|
|
|
$
|
(138
|
)
|
|
$
|
(357
|
)
|
|
$
|
(604
|
)
|
|
Increase/(decrease) in hedge value
|
(63
|
)
|
|
—
|
|
|
63
|
|
|
125
|
|
|
188
|
|
|
250
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
280
|
|
|
$
|
207
|
|
|
$
|
112
|
|
|
$
|
(13
|
)
|
|
$
|
(169
|
)
|
|
$
|
(354
|
)
|
Flat
|
(Increase)/decrease in Gross FVL
|
$
|
156
|
|
|
$
|
—
|
|
|
$
|
(182
|
)
|
|
$
|
(394
|
)
|
|
$
|
(636
|
)
|
|
$
|
(904
|
)
|
|
Increase/(decrease) in hedge value
|
(63
|
)
|
|
—
|
|
|
63
|
|
|
125
|
|
|
188
|
|
|
250
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
(119
|
)
|
|
$
|
(269
|
)
|
|
$
|
(448
|
)
|
|
$
|
(654
|
)
|
-100 bps
|
(Increase)/decrease in Gross FVL
|
$
|
(74
|
)
|
|
$
|
(249
|
)
|
|
$
|
(451
|
)
|
|
$
|
(681
|
)
|
|
$
|
(936
|
)
|
|
$
|
(1,215
|
)
|
|
Increase/(decrease) in hedge value
|
(63
|
)
|
|
—
|
|
|
63
|
|
|
125
|
|
|
188
|
|
|
250
|
|
||||||
|
Increase/(decrease) in net income
|
$
|
(137
|
)
|
|
$
|
(249
|
)
|
|
$
|
(388
|
)
|
|
$
|
(556
|
)
|
|
$
|
(748
|
)
|
|
$
|
(965
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
$
|
73
|
|
|
$
|
(81
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(9
|
)
|
|
$
|
9
|
|
|
Increase/(decrease) in net income
|
$
|
73
|
|
|
$
|
(81
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(9
|
)
|
|
$
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sensitivities to Actuarial Assumptions
|
|
|
|
|
Mortality
|
|||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+20
|
%
|
|
+10
|
%
|
|
-10
|
%
|
|
-20
|
%
|
|||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
18
|
|
|
$
|
9
|
|
|
$
|
(9
|
)
|
|
$
|
(19
|
)
|
|||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
18
|
|
|
$
|
9
|
|
|
$
|
(9
|
)
|
|
$
|
(19
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Lapses
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+50
|
%
|
|
+25
|
%
|
|
-25
|
%
|
|
-50
|
%
|
|||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
101
|
|
|
$
|
52
|
|
|
$
|
(57
|
)
|
|
$
|
(120
|
)
|
|||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
101
|
|
|
$
|
52
|
|
|
$
|
(57
|
)
|
|
$
|
(120
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Annuitization
|
||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
+50
|
%
|
|
+25
|
%
|
|
-25
|
%
|
|
-50
|
%
|
|||||||||
(Increase)/decrease in Gross FVL
|
|
|
|
|
$
|
(498
|
)
|
|
$
|
(264
|
)
|
|
$
|
298
|
|
|
$
|
585
|
|
|||||
Increase/(decrease) in net income
|
|
|
|
|
$
|
(498
|
)
|
|
$
|
(264
|
)
|
|
$
|
298
|
|
|
$
|
585
|
|
|
Equity Shock
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
+20
|
%
|
|
Flat
|
|
|
-20
|
%
|
|
-40
|
%
|
|
-60
|
%
|
|
-80
|
%
|
||||||
GMDB net amount at risk
|
$
|
271
|
|
|
$
|
256
|
|
|
$
|
442
|
|
|
$
|
797
|
|
|
$
|
817
|
|
|
$
|
696
|
|
Claims at 100% immediate mortality
|
160
|
|
|
167
|
|
|
166
|
|
|
156
|
|
|
138
|
|
|
122
|
|
|
Equity Shock
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
+20
|
%
|
|
Flat
|
|
|
-20
|
%
|
|
-40
|
%
|
|
-60
|
%
|
|
-80
|
%
|
||||||
GLB net amount at risk
|
$
|
724
|
|
|
$
|
1,095
|
|
|
$
|
1,738
|
|
|
$
|
2,516
|
|
|
$
|
3,021
|
|
|
$
|
3,387
|
|
|
Equity Shock
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
+20
|
%
|
|
Flat
|
|
|
-20
|
%
|
|
-40
|
%
|
|
-60
|
%
|
|
-80
|
%
|
||||||
GMDB net amount at risk
|
$
|
76
|
|
|
$
|
91
|
|
|
$
|
105
|
|
|
$
|
117
|
|
|
$
|
123
|
|
|
$
|
123
|
|
GLB net amount at risk
|
305
|
|
|
415
|
|
|
560
|
|
|
723
|
|
|
888
|
|
|
985
|
|
||||||
Claims at 100% immediate mortality
|
16
|
|
|
16
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
|
|
|
|
|
|
Plan category
|
|
Number of securities to be issued upon exercise of outstanding options, warrants, and rights
|
|
Weighted-average exercise price of outstanding options, warrants, and rights (3)
|
|
Number of securities remaining available for future issuance under equity compensation plans
|
||||
Equity compensation plans approved by security holders (1)
|
|
11,801,420
|
|
|
$
|
116.79
|
|
|
12,575,263
|
|
Equity compensation plans not approved by security holders (2)
|
|
27,914
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
8-K
|
|
3.1
|
|
May 18, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
3.1
|
|
November 21, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
May 18, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
3.1
|
|
November 21, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.3
|
|
July 18, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
March 22, 2002
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
S-3
ASR
|
|
4.4
|
|
December 10, 2014
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
|
|
10-K
|
|
10.38
|
|
March 29, 2000
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.41
|
|
March 29, 2000
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
4.17
|
|
March 16, 2006
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
4.18
|
|
March 16, 2006
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
4.19
|
|
March 16, 2006
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
March 13, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.2
|
|
March 13, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.3
|
|
March 13, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
May 27, 2014
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
March 16, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
November 3, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.2
|
|
November 3, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.3
|
|
November 3, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.4
|
|
November 3, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
January 15, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.2
|
|
January 15, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.22
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
March 30, 2007
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
|
|
8-K
|
|
4.2
|
|
March 30, 2007
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
May 6, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.26
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.27
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
May 11, 2007
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.2
|
|
May 6, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.3
|
|
March 30, 2007
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
4.32
|
|
February 28, 2017
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
March 6, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.2
|
|
March 6, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.3
|
|
March 6, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
June 17, 2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.2
|
|
June 17, 2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.3
|
|
June 17, 2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.1
|
|
December 5, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.2
|
|
December 5, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
4.3
|
|
December 5, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
10.1*
|
|
|
10-K
|
|
10.1
|
|
February 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.13
|
|
February 28, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
10.3*
|
|
|
10-K
|
|
10.64
|
|
March 27, 2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.4*
|
|
|
10-K
|
|
10.65
|
|
March 27, 2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.5*
|
|
|
10-Q
|
|
10.1
|
|
May 10, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.6*
|
|
|
10-K
|
|
10.17
|
|
February 25, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.7*
|
|
|
10-K
|
|
10.29
|
|
February 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8*
|
|
|
10-K
|
|
10.30
|
|
February 29, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.9*
|
|
|
10-K
|
|
10.21
|
|
February 24, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
10.1
|
|
July 16, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.24
|
|
March 16, 2006
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.25
|
|
March 16, 2006
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.7
|
|
October 30, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.36
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.28
|
|
February 25, 2010
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
May 7, 2010
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.1
|
|
November 14, 2001
|
|
|
||
|
|
|
|
|
|
|
|
|
||
|
|
10-Q
|
|
10.6
|
|
October 30, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
|
|
10-K
|
|
10.38
|
|
February 29, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.39
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.5
|
|
October 30, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.40
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.39
|
|
February 29, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.42
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.6
|
|
May 15, 2000
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.30
|
|
March 1, 2007
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.31
|
|
March 1, 2007
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.46
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.39
|
|
February 25, 2010
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.1
|
|
August 14, 2003
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.34
|
|
March 1, 2007
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
10
|
|
May 21, 2010
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
10.1
|
|
May 20, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
February 13, 1998
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.54
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.55
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.1
|
|
November 9, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.1
|
|
May 8, 2008
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
May 8, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.60
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
October 30, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.56
|
|
February 28, 2014
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
10.4
|
|
September 13, 2004
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.4
|
|
May 8, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.63
|
|
February 27, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.3
|
|
October 30, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
10.5
|
|
September 13, 2004
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.3
|
|
May 8, 2008
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.4
|
|
October 30, 2013
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.3
|
|
May 5, 2006
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
November 8, 2006
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.65
|
|
February 25, 2011
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.67
|
|
February 28, 2014
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.68
|
|
February 28, 2014
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
November 7, 2007
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
August 7, 2009
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
|
|
10-Q
|
|
10.1
|
|
August 4, 2011
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
August 4, 2011
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.3
|
|
August 4, 2011
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
10.1
|
|
May 22, 2012
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.72
|
|
February 24, 2012
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.68
|
|
February 27, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.69
|
|
February 27, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.70
|
|
February 27, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.71
|
|
February 27, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.72
|
|
February 27, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
10.1
|
|
May 22, 2015
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.72
|
|
February 26, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.73
|
|
February 26, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.74
|
|
February 26, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
S-8
|
|
4.4
|
|
May 26, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.2
|
|
August 5, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.3
|
|
August 5, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Original Number
|
|
Date Filed
|
|
Filed Herewith
|
|
|
10-Q
|
|
10.4
|
|
August 5, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.5
|
|
August 5, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.6
|
|
August 5, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.7
|
|
August 5, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.8
|
|
August 5, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.9
|
|
August 5, 2016
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.84
|
|
February 28, 2017
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.85
|
|
February 28, 2017
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
S-8
|
|
4.4
|
|
May 25, 2017
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
10.1
|
|
August 3, 2017
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.88
|
|
February 23, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.89
|
|
February 23, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.90
|
|
February 23, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.91
|
|
February 23, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.92
|
|
February 23, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.93
|
|
February 23, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.94
|
|
February 23, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
10.95
|
|
February 23, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2020
|
Evan G. Greenberg
|
|
|
|
|
|
|
|
/s/ Philip V. Bancroft
|
|
Executive Vice President and Chief Financial Officer
|
February 27, 2020
|
Philip V. Bancroft
|
|
(Principal Financial Officer)
|
|
|
|
|
|
/s/ Paul B. Medini
|
|
Chief Accounting Officer
|
February 27, 2020
|
Paul B. Medini
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
/s/ Michael G. Atieh
|
|
Director
|
February 27, 2020
|
Michael G. Atieh
|
|
|
|
|
|
|
|
/s/ Sheila P. Burke
|
|
Director
|
February 27, 2020
|
Sheila P. Burke
|
|
|
|
|
|
|
|
/s/ James I. Cash
|
|
Director
|
February 27, 2020
|
James I. Cash
|
|
|
|
|
|
|
|
/s/ Mary A. Cirillo
|
|
Director
|
February 27, 2020
|
Mary A. Cirillo
|
|
|
|
|
|
|
|
/s/ Michael P. Connors
|
|
Director
|
February 27, 2020
|
Michael P. Connors
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
Date
|
|
|
|
|
/s/ John Edwardson
|
|
Director
|
February 27, 2020
|
John Edwardson
|
|
|
|
|
|
|
|
/s/ Robert M. Hernandez
|
|
Director
|
February 27, 2020
|
Robert M. Hernandez
|
|
|
|
|
|
|
|
/s/ Kimberly Ross
|
|
Director
|
February 27, 2020
|
Kimberly Ross
|
|
|
|
|
|
|
|
/s/ Robert W. Scully
|
|
Director
|
February 27, 2020
|
Robert W. Scully
|
|
|
|
|
|
|
|
/s/ Eugene B. Shanks, Jr.
|
|
Director
|
February 27, 2020
|
Eugene B. Shanks, Jr.
|
|
|
|
|
|
|
|
/s/ Theodore E. Shasta
|
|
Director
|
February 27, 2020
|
Theodore E. Shasta
|
|
|
|
|
|
|
|
/s/ David Sidwell
|
|
Director
|
February 27, 2020
|
David Sidwell
|
|
|
|
|
|
|
|
/s/ Olivier Steimer
|
|
Director
|
February 27, 2020
|
Olivier Steimer
|
|
|
|
|
|
|
|
|
|
/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, PA
|
February 27, 2020
|
|
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars, except share and per share data)
|
2019
|
|
|
2018
|
|
||||
Assets
|
|
|
|
||||||
Investments
|
|
|
|
||||||
|
Fixed maturities available for sale, at fair value (amortized cost – $82,580 and $79,323)
|
$
|
85,488
|
|
|
$
|
78,470
|
|
|
|
Fixed maturities held to maturity, at amortized cost (fair value – $13,005 and $13,259)
|
12,581
|
|
|
13,435
|
|
|||
|
Equity securities, at fair value
|
812
|
|
|
770
|
|
|||
|
Short-term investments, at fair value and amortized cost
|
4,291
|
|
|
3,016
|
|
|||
|
Other investments, at fair value
|
6,062
|
|
|
5,277
|
|
|||
|
|
Total investments
|
109,234
|
|
|
100,968
|
|
||
Cash
|
1,537
|
|
|
1,247
|
|
||||
Restricted cash
|
109
|
|
|
93
|
|
||||
Securities lending collateral
|
994
|
|
|
1,926
|
|
||||
Accrued investment income
|
867
|
|
|
883
|
|
||||
Insurance and reinsurance balances receivable
|
10,357
|
|
|
10,075
|
|
||||
Reinsurance recoverable on losses and loss expenses
|
15,181
|
|
|
15,993
|
|
||||
Reinsurance recoverable on policy benefits
|
197
|
|
|
202
|
|
||||
Deferred policy acquisition costs
|
5,242
|
|
|
4,922
|
|
||||
Value of business acquired
|
306
|
|
|
295
|
|
||||
Goodwill
|
15,296
|
|
|
15,271
|
|
||||
Other intangible assets
|
6,063
|
|
|
6,143
|
|
||||
Prepaid reinsurance premiums
|
2,647
|
|
|
2,544
|
|
||||
Investments in partially-owned insurance companies
|
1,332
|
|
|
678
|
|
||||
Other assets
|
7,581
|
|
|
6,531
|
|
||||
Total assets
|
$
|
176,943
|
|
|
$
|
167,771
|
|
||
Liabilities
|
|
|
|
||||||
Unpaid losses and loss expenses
|
$
|
62,690
|
|
|
$
|
62,960
|
|
||
Unearned premiums
|
16,771
|
|
|
15,532
|
|
||||
Future policy benefits
|
5,814
|
|
|
5,506
|
|
||||
Insurance and reinsurance balances payable
|
6,184
|
|
|
6,437
|
|
||||
Securities lending payable
|
994
|
|
|
1,926
|
|
||||
Accounts payable, accrued expenses, and other liabilities
|
11,773
|
|
|
10,472
|
|
||||
Deferred tax liabilities
|
804
|
|
|
304
|
|
||||
Repurchase agreements
|
1,416
|
|
|
1,418
|
|
||||
Short-term debt
|
1,299
|
|
|
509
|
|
||||
Long-term debt
|
13,559
|
|
|
12,087
|
|
||||
Trust preferred securities
|
308
|
|
|
308
|
|
||||
Total liabilities
|
121,612
|
|
|
117,459
|
|
||||
Commitments and contingencies (refer to Note 10)
|
|
|
|
||||||
Shareholders’ equity
|
|
|
|
||||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 451,971,567 and 459,203,378 shares outstanding)
|
11,121
|
|
|
11,121
|
|
||||
Common Shares in treasury (27,812,297 and 20,580,486 shares)
|
(3,754
|
)
|
|
(2,618
|
)
|
||||
Additional paid-in capital
|
11,203
|
|
|
12,557
|
|
||||
Retained earnings
|
36,142
|
|
|
31,700
|
|
||||
Accumulated other comprehensive income (loss) (AOCI)
|
619
|
|
|
(2,448
|
)
|
||||
Total shareholders’ equity
|
55,331
|
|
|
50,312
|
|
||||
Total liabilities and shareholders’ equity
|
$
|
176,943
|
|
|
$
|
167,771
|
|
For the years ended December 31, 2019, 2018, and 2017
|
|
||||||||||
(in millions of U.S. dollars, except per share data)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Revenues
|
|
|
|
|
|
||||||
Net premiums written
|
$
|
32,275
|
|
|
$
|
30,579
|
|
|
$
|
29,244
|
|
Increase in unearned premiums
|
(985
|
)
|
|
(515
|
)
|
|
(210
|
)
|
|||
Net premiums earned
|
31,290
|
|
|
30,064
|
|
|
29,034
|
|
|||
Net investment income
|
3,426
|
|
|
3,305
|
|
|
3,125
|
|
|||
Net realized gains (losses):
|
|
|
|
|
|
||||||
Other-than-temporary impairment (OTTI) losses gross
|
(90
|
)
|
|
(52
|
)
|
|
(46
|
)
|
|||
Portion of OTTI losses recognized in other comprehensive income (OCI)
|
32
|
|
|
3
|
|
|
1
|
|
|||
Net OTTI losses recognized in income
|
(58
|
)
|
|
(49
|
)
|
|
(45
|
)
|
|||
Net realized gains (losses) excluding OTTI losses
|
(472
|
)
|
|
(603
|
)
|
|
129
|
|
|||
Total net realized gains (losses) (includes $(31), $(302), and $(15) reclassified from AOCI)
|
(530
|
)
|
|
(652
|
)
|
|
84
|
|
|||
Total revenues
|
34,186
|
|
|
32,717
|
|
|
32,243
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Losses and loss expenses
|
18,730
|
|
|
18,067
|
|
|
18,454
|
|
|||
Policy benefits
|
740
|
|
|
590
|
|
|
676
|
|
|||
Policy acquisition costs
|
6,153
|
|
|
5,912
|
|
|
5,781
|
|
|||
Administrative expenses
|
3,030
|
|
|
2,886
|
|
|
2,833
|
|
|||
Interest expense
|
552
|
|
|
641
|
|
|
607
|
|
|||
Other (income) expense
|
(596
|
)
|
|
(434
|
)
|
|
(400
|
)
|
|||
Amortization of purchased intangibles
|
305
|
|
|
339
|
|
|
260
|
|
|||
Chubb integration expenses
|
23
|
|
|
59
|
|
|
310
|
|
|||
Total expenses
|
28,937
|
|
|
28,060
|
|
|
28,521
|
|
|||
Income before income tax
|
5,249
|
|
|
4,657
|
|
|
3,722
|
|
|||
Income tax expense (benefit) (includes nil, $(41), and $(13) on reclassified unrealized gains and losses)
|
795
|
|
|
695
|
|
|
(139
|
)
|
|||
Net income
|
$
|
4,454
|
|
|
$
|
3,962
|
|
|
$
|
3,861
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
||||||
Unrealized appreciation (depreciation)
|
$
|
3,704
|
|
|
$
|
(2,298
|
)
|
|
$
|
618
|
|
Reclassification adjustment for net realized (gains) losses included in net income
|
31
|
|
|
302
|
|
|
15
|
|
|||
|
3,735
|
|
|
(1,996
|
)
|
|
633
|
|
|||
Change in:
|
|
|
|
|
|
||||||
Cumulative foreign currency translation adjustment
|
13
|
|
|
(802
|
)
|
|
471
|
|
|||
Postretirement benefit liability adjustment
|
(76
|
)
|
|
(321
|
)
|
|
(16
|
)
|
|||
Other comprehensive income (loss), before income tax
|
3,672
|
|
|
(3,119
|
)
|
|
1,088
|
|
|||
Income tax (expense) benefit related to OCI items
|
(605
|
)
|
|
399
|
|
|
(231
|
)
|
|||
Other comprehensive income (loss)
|
3,067
|
|
|
(2,720
|
)
|
|
857
|
|
|||
Comprehensive income
|
$
|
7,521
|
|
|
$
|
1,242
|
|
|
$
|
4,718
|
|
Earnings per share
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
9.77
|
|
|
$
|
8.55
|
|
|
$
|
8.26
|
|
Diluted earnings per share
|
$
|
9.71
|
|
|
$
|
8.49
|
|
|
$
|
8.19
|
|
For the years ended December 31, 2019, 2018, and 2017
|
|
||||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Common Shares
|
|
|
|
|
|
||||||
Balance – beginning and end of year
|
$
|
11,121
|
|
|
$
|
11,121
|
|
|
$
|
11,121
|
|
Common Shares in treasury
|
|
|
|
|
|
||||||
Balance – beginning of year
|
(2,618
|
)
|
|
(1,944
|
)
|
|
(1,480
|
)
|
|||
Common Shares repurchased
|
(1,531
|
)
|
|
(1,021
|
)
|
|
(830
|
)
|
|||
Net shares issued under employee share-based compensation plans
|
395
|
|
|
347
|
|
|
366
|
|
|||
Balance – end of year
|
(3,754
|
)
|
|
(2,618
|
)
|
|
(1,944
|
)
|
|||
Additional paid-in capital
|
|
|
|
|
|
||||||
Balance – beginning of year
|
12,557
|
|
|
13,978
|
|
|
15,335
|
|
|||
Net shares issued under employee share-based compensation plans
|
(178
|
)
|
|
(313
|
)
|
|
(313
|
)
|
|||
Exercise of stock options
|
(82
|
)
|
|
(49
|
)
|
|
(58
|
)
|
|||
Share-based compensation expense
|
266
|
|
|
285
|
|
|
331
|
|
|||
Funding of dividends declared to Retained earnings
|
(1,360
|
)
|
|
(1,344
|
)
|
|
(1,317
|
)
|
|||
Balance – end of year
|
11,203
|
|
|
12,557
|
|
|
13,978
|
|
|||
Retained earnings
|
|
|
|
|
|
||||||
Balance – beginning of year
|
31,700
|
|
|
27,474
|
|
|
23,613
|
|
|||
Cumulative effect of adoption of accounting standards (refer to Note 1)
|
(12
|
)
|
|
264
|
|
|
—
|
|
|||
Balance – beginning of year, as adjusted
|
31,688
|
|
|
27,738
|
|
|
23,613
|
|
|||
Net income
|
4,454
|
|
|
3,962
|
|
|
3,861
|
|
|||
Funding of dividends declared from Additional paid-in capital
|
1,360
|
|
|
1,344
|
|
|
1,317
|
|
|||
Dividends declared on Common Shares
|
(1,360
|
)
|
|
(1,344
|
)
|
|
(1,317
|
)
|
|||
Balance – end of year
|
36,142
|
|
|
31,700
|
|
|
27,474
|
|
|||
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
||||||
Net unrealized appreciation (depreciation) on investments
|
|
|
|
|
|
||||||
Balance – beginning of year
|
(545
|
)
|
|
1,450
|
|
|
1,058
|
|
|||
Cumulative effect of adoption of accounting standards
|
—
|
|
|
(296
|
)
|
|
—
|
|
|||
Balance – beginning of year, as adjusted
|
(545
|
)
|
|
1,154
|
|
|
1,058
|
|
|||
Change in year, before reclassification from AOCI, net of income tax (expense) benefit of $(647), $338, and $(228)
|
3,057
|
|
|
(1,960
|
)
|
|
390
|
|
|||
Amounts reclassified from AOCI, net of income tax (expense) benefit of nil, $(41), and $(13)
|
31
|
|
|
261
|
|
|
2
|
|
|||
Change in year, net of income tax (expense) benefit of $(647), $297, and $(241)
|
3,088
|
|
|
(1,699
|
)
|
|
392
|
|
|||
Balance – end of year
|
2,543
|
|
|
(545
|
)
|
|
1,450
|
|
|||
Cumulative foreign currency translation adjustment
|
|
|
|
|
|
||||||
Balance – beginning of year
|
(1,976
|
)
|
|
(1,187
|
)
|
|
(1,663
|
)
|
|||
Cumulative effect of adoption of accounting standards
|
—
|
|
|
(22
|
)
|
|
—
|
|
|||
Balance – beginning of year, as adjusted
|
(1,976
|
)
|
|
(1,209
|
)
|
|
(1,663
|
)
|
|||
Change in year, net of income tax benefit of $24, $35, and $5
|
37
|
|
|
(767
|
)
|
|
476
|
|
|||
Balance – end of year
|
(1,939
|
)
|
|
(1,976
|
)
|
|
(1,187
|
)
|
|||
Postretirement benefit liability adjustment
|
|
|
|
|
|
||||||
Balance – beginning of year
|
73
|
|
|
280
|
|
|
291
|
|
|||
Cumulative effect of adoption of accounting standards
|
—
|
|
|
47
|
|
|
—
|
|
|||
Balance – beginning of year, as adjusted
|
73
|
|
|
327
|
|
|
291
|
|
|||
Change in year, net of income tax benefit of $18, $67, and $5
|
(58
|
)
|
|
(254
|
)
|
|
(11
|
)
|
|||
Balance – end of year
|
15
|
|
|
73
|
|
|
280
|
|
|||
Accumulated other comprehensive income (loss)
|
619
|
|
|
(2,448
|
)
|
|
543
|
|
|||
Total shareholders’ equity
|
$
|
55,331
|
|
|
$
|
50,312
|
|
|
$
|
51,172
|
|
For the years ended December 31, 2019, 2018, and 2017
|
|
||||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
4,454
|
|
|
$
|
3,962
|
|
|
$
|
3,861
|
|
Adjustments to reconcile net income to net cash flows from operating activities
|
|
|
|
|
|
||||||
Net realized (gains) losses
|
530
|
|
|
652
|
|
|
(84
|
)
|
|||
Amortization of premiums/discounts on fixed maturities
|
395
|
|
|
592
|
|
|
694
|
|
|||
Amortization of purchased intangibles
|
305
|
|
|
339
|
|
|
260
|
|
|||
Deferred income taxes
|
(97
|
)
|
|
16
|
|
|
(527
|
)
|
|||
Unpaid losses and loss expenses
|
(257
|
)
|
|
570
|
|
|
2,137
|
|
|||
Unearned premiums
|
1,051
|
|
|
654
|
|
|
264
|
|
|||
Future policy benefits
|
215
|
|
|
235
|
|
|
217
|
|
|||
Insurance and reinsurance balances payable
|
(302
|
)
|
|
722
|
|
|
271
|
|
|||
Accounts payable, accrued expenses, and other liabilities
|
(207
|
)
|
|
375
|
|
|
(517
|
)
|
|||
Income taxes payable
|
(7
|
)
|
|
161
|
|
|
(365
|
)
|
|||
Insurance and reinsurance balances receivable
|
(270
|
)
|
|
(981
|
)
|
|
(243
|
)
|
|||
Reinsurance recoverable
|
838
|
|
|
(1,165
|
)
|
|
(1,248
|
)
|
|||
Deferred policy acquisition costs
|
(344
|
)
|
|
(301
|
)
|
|
(317
|
)
|
|||
Other
|
38
|
|
|
(351
|
)
|
|
100
|
|
|||
Net cash flows from operating activities
|
6,342
|
|
|
5,480
|
|
|
4,503
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Purchases of fixed maturities available for sale
|
(25,846
|
)
|
|
(24,700
|
)
|
|
(25,720
|
)
|
|||
Purchases of to be announced mortgage-backed securities
|
—
|
|
|
(35
|
)
|
|
(27
|
)
|
|||
Purchases of fixed maturities held to maturity
|
(229
|
)
|
|
(456
|
)
|
|
(352
|
)
|
|||
Purchases of equity securities
|
(531
|
)
|
|
(207
|
)
|
|
(173
|
)
|
|||
Sales of fixed maturities available for sale
|
13,110
|
|
|
14,001
|
|
|
13,228
|
|
|||
Sales of to be announced mortgage-backed securities
|
6
|
|
|
29
|
|
|
27
|
|
|||
Sales of equity securities
|
611
|
|
|
315
|
|
|
187
|
|
|||
Maturities and redemptions of fixed maturities available for sale
|
9,039
|
|
|
7,352
|
|
|
10,425
|
|
|||
Maturities and redemptions of fixed maturities held to maturity
|
946
|
|
|
1,124
|
|
|
879
|
|
|||
Net change in short-term investments
|
(1,117
|
)
|
|
516
|
|
|
(537
|
)
|
|||
Net derivative instruments settlements
|
(703
|
)
|
|
16
|
|
|
(265
|
)
|
|||
Private equity contributions
|
(1,315
|
)
|
|
(1,337
|
)
|
|
(648
|
)
|
|||
Private equity distributions
|
1,390
|
|
|
980
|
|
|
1,084
|
|
|||
Acquisition of subsidiaries (net of cash acquired of $45, nil, and nil)
|
(29
|
)
|
|
—
|
|
|
—
|
|
|||
Other
|
(1,237
|
)
|
|
(533
|
)
|
|
(530
|
)
|
|||
Net cash flows used for investing activities
|
(5,905
|
)
|
|
(2,935
|
)
|
|
(2,422
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Dividends paid on Common Shares
|
(1,354
|
)
|
|
(1,337
|
)
|
|
(1,308
|
)
|
|||
Common Shares repurchased
|
(1,530
|
)
|
|
(1,044
|
)
|
|
(801
|
)
|
|||
Proceeds from issuance of long-term debt
|
2,828
|
|
|
2,171
|
|
|
—
|
|
|||
Proceeds from issuance of repurchase agreements
|
2,817
|
|
|
2,029
|
|
|
2,353
|
|
|||
Repayment of long-term debt
|
(510
|
)
|
|
(2,001
|
)
|
|
(501
|
)
|
|||
Repayment of repurchase agreements
|
(2,817
|
)
|
|
(2,019
|
)
|
|
(2,348
|
)
|
|||
Proceeds from share-based compensation plans
|
204
|
|
|
115
|
|
|
151
|
|
|||
Policyholder contract deposits
|
514
|
|
|
453
|
|
|
442
|
|
|||
Policyholder contract withdrawals
|
(303
|
)
|
|
(358
|
)
|
|
(307
|
)
|
|||
Net cash flows used for financing activities
|
(151
|
)
|
|
(1,991
|
)
|
|
(2,319
|
)
|
|||
Effect of foreign currency rate changes on cash and restricted cash
|
20
|
|
|
(65
|
)
|
|
1
|
|
|||
Net increase (decrease) in cash and restricted cash
|
306
|
|
|
489
|
|
|
(237
|
)
|
|||
Cash and restricted cash – beginning of year
|
1,340
|
|
|
851
|
|
|
1,088
|
|
|||
Cash and restricted cash – end of year
|
$
|
1,646
|
|
|
$
|
1,340
|
|
|
$
|
851
|
|
Supplemental cash flow information
|
|
|
|
|
|
||||||
Taxes paid
|
$
|
912
|
|
|
$
|
503
|
|
|
$
|
736
|
|
Interest paid
|
$
|
512
|
|
|
$
|
621
|
|
|
$
|
644
|
|
•
|
unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves and non-A&E casualty exposures;
|
•
|
future policy benefits reserves;
|
•
|
amortization of deferred policy acquisition costs and value of business acquired (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 other than temporary impairment (OTTI);
|
•
|
the valuation of deferred income taxes;
|
•
|
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.
|
•
|
Available for sale (AFS) portfolio is reported at fair value with changes in fair value recorded as a separate component of AOCI in Shareholders' equity.
|
•
|
Held to maturity (HTM) portfolio includes securities for which we have the ability and intent to hold to maturity or redemption and is reported at amortized cost.
|
•
|
Income and expenses from these funds are reported within Net investment income.
|
•
|
These funds are carried at net asset value, which approximates fair value with changes in fair value recorded in net realized gains (losses) on the Consolidated statement of operations. Refer to Note 4 for a further discussion on net asset value. Prior to January 1, 2018, changes in fair value were recorded as a separate component of AOCI in Shareholders' equity.
|
•
|
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.
|
•
|
Sales of these investments are reported within Net realized gains (losses).
|
•
|
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.
|
•
|
Policy loans are carried at outstanding balance and interest income is reflected in Net investment income.
|
•
|
Life insurance policies are carried at policy cash surrender value and income is reflected in Other (income) expense.
|
•
|
Non-qualified separate account assets are supported by assets that do not qualify for separate accounting reporting under GAAP. The underlying securities are recorded on a trade date basis and carried at fair value. Unrealized gains and losses on non-qualified separate account assets are reflected in Other (income) expense.
|
|
December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Cash
|
$
|
1,537
|
|
|
$
|
1,247
|
|
|
$
|
728
|
|
Restricted cash
|
109
|
|
|
93
|
|
|
123
|
|
|||
Total cash and restricted cash shown in the Consolidated statements of cash flows
|
$
|
1,646
|
|
|
$
|
1,340
|
|
|
$
|
851
|
|
December 31, 2019
|
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
|
$
|
3,188
|
|
|
$
|
96
|
|
|
$
|
(1
|
)
|
|
$
|
3,283
|
|
|
$
|
—
|
|
Foreign
|
22,670
|
|
|
1,099
|
|
|
(62
|
)
|
|
23,707
|
|
|
(25
|
)
|
|||||
Corporate securities
|
30,689
|
|
|
1,180
|
|
|
(78
|
)
|
|
31,791
|
|
|
(5
|
)
|
|||||
Mortgage-backed securities
|
18,712
|
|
|
494
|
|
|
(14
|
)
|
|
19,192
|
|
|
—
|
|
|||||
States, municipalities, and political subdivisions
|
7,321
|
|
|
205
|
|
|
(11
|
)
|
|
7,515
|
|
|
—
|
|
|||||
|
$
|
82,580
|
|
|
$
|
3,074
|
|
|
$
|
(166
|
)
|
|
$
|
85,488
|
|
|
$
|
(30
|
)
|
Held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
1,318
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
1,347
|
|
|
$
|
—
|
|
Foreign
|
1,423
|
|
|
62
|
|
|
—
|
|
|
1,485
|
|
|
—
|
|
|||||
Corporate securities
|
2,349
|
|
|
121
|
|
|
(2
|
)
|
|
2,468
|
|
|
—
|
|
|||||
Mortgage-backed securities
|
2,331
|
|
|
65
|
|
|
—
|
|
|
2,396
|
|
|
—
|
|
|||||
States, municipalities, and political subdivisions
|
5,160
|
|
|
150
|
|
|
(1
|
)
|
|
5,309
|
|
|
—
|
|
|||||
|
$
|
12,581
|
|
|
$
|
427
|
|
|
$
|
(3
|
)
|
|
$
|
13,005
|
|
|
$
|
—
|
|
December 31, 2018
|
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
|
$
|
4,158
|
|
|
$
|
30
|
|
|
$
|
(43
|
)
|
|
$
|
4,145
|
|
|
$
|
—
|
|
Foreign
|
21,370
|
|
|
395
|
|
|
(349
|
)
|
|
21,416
|
|
|
—
|
|
|||||
Corporate securities
|
27,183
|
|
|
150
|
|
|
(750
|
)
|
|
26,583
|
|
|
(6
|
)
|
|||||
Mortgage-backed securities
|
15,758
|
|
|
66
|
|
|
(284
|
)
|
|
15,540
|
|
|
(1
|
)
|
|||||
States, municipalities, and political subdivisions
|
10,854
|
|
|
49
|
|
|
(117
|
)
|
|
10,786
|
|
|
—
|
|
|||||
|
$
|
79,323
|
|
|
$
|
690
|
|
|
$
|
(1,543
|
)
|
|
$
|
78,470
|
|
|
$
|
(7
|
)
|
Held to maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency
|
$
|
1,185
|
|
|
$
|
8
|
|
|
$
|
(11
|
)
|
|
$
|
1,182
|
|
|
$
|
—
|
|
Foreign
|
1,549
|
|
|
11
|
|
|
(18
|
)
|
|
1,542
|
|
|
—
|
|
|||||
Corporate securities
|
2,601
|
|
|
11
|
|
|
(104
|
)
|
|
2,508
|
|
|
—
|
|
|||||
Mortgage-backed securities
|
2,524
|
|
|
5
|
|
|
(43
|
)
|
|
2,486
|
|
|
—
|
|
|||||
States, municipalities, and political subdivisions
|
5,576
|
|
|
16
|
|
|
(51
|
)
|
|
5,541
|
|
|
—
|
|
|||||
|
$
|
13,435
|
|
|
$
|
51
|
|
|
$
|
(227
|
)
|
|
$
|
13,259
|
|
|
$
|
—
|
|
|
December 31
|
|
|
December 31
|
|
||||||||||
|
|
|
2019
|
|
|
|
|
2018
|
|
||||||
(in millions of U.S. dollars)
|
Amortized Cost
|
|
|
Fair Value
|
|
|
Amortized Cost
|
|
|
Fair Value
|
|
||||
Available for sale
|
|
|
|
|
|
|
|
||||||||
Due in 1 year or less
|
$
|
3,951
|
|
|
$
|
3,973
|
|
|
$
|
3,569
|
|
|
$
|
3,568
|
|
Due after 1 year through 5 years
|
27,142
|
|
|
27,720
|
|
|
27,134
|
|
|
27,005
|
|
||||
Due after 5 years through 10 years
|
23,901
|
|
|
24,874
|
|
|
24,095
|
|
|
23,543
|
|
||||
Due after 10 years
|
8,874
|
|
|
9,729
|
|
|
8,767
|
|
|
8,814
|
|
||||
|
63,868
|
|
|
66,296
|
|
|
63,565
|
|
|
62,930
|
|
||||
Mortgage-backed securities
|
18,712
|
|
|
19,192
|
|
|
15,758
|
|
|
15,540
|
|
||||
|
$
|
82,580
|
|
|
$
|
85,488
|
|
|
$
|
79,323
|
|
|
$
|
78,470
|
|
Held to maturity
|
|
|
|
|
|
|
|
||||||||
Due in 1 year or less
|
$
|
478
|
|
|
$
|
479
|
|
|
$
|
536
|
|
|
$
|
537
|
|
Due after 1 year through 5 years
|
3,869
|
|
|
3,940
|
|
|
3,122
|
|
|
3,106
|
|
||||
Due after 5 years through 10 years
|
3,756
|
|
|
3,883
|
|
|
4,468
|
|
|
4,407
|
|
||||
Due after 10 years
|
2,147
|
|
|
2,307
|
|
|
2,785
|
|
|
2,723
|
|
||||
|
10,250
|
|
|
10,609
|
|
|
10,911
|
|
|
10,773
|
|
||||
Mortgage-backed securities
|
2,331
|
|
|
2,396
|
|
|
2,524
|
|
|
2,486
|
|
||||
|
$
|
12,581
|
|
|
$
|
13,005
|
|
|
$
|
13,435
|
|
|
$
|
13,259
|
|
|
0 – 12 Months
|
|
|
Over 12 Months
|
|
|
Total
|
|
|||||||||||||||
December 31, 2019
|
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
|
$
|
234
|
|
|
$
|
(1
|
)
|
|
$
|
339
|
|
|
$
|
—
|
|
|
$
|
573
|
|
|
$
|
(1
|
)
|
Foreign
|
1,846
|
|
|
(34
|
)
|
|
802
|
|
|
(28
|
)
|
|
2,648
|
|
|
(62
|
)
|
||||||
Corporate securities
|
2,121
|
|
|
(40
|
)
|
|
988
|
|
|
(40
|
)
|
|
3,109
|
|
|
(80
|
)
|
||||||
Mortgage-backed securities
|
1,174
|
|
|
(6
|
)
|
|
932
|
|
|
(8
|
)
|
|
2,106
|
|
|
(14
|
)
|
||||||
States, municipalities, and political subdivisions
|
188
|
|
|
—
|
|
|
276
|
|
|
(12
|
)
|
|
464
|
|
|
(12
|
)
|
||||||
Total fixed maturities
|
$
|
5,563
|
|
|
$
|
(81
|
)
|
|
$
|
3,337
|
|
|
$
|
(88
|
)
|
|
$
|
8,900
|
|
|
$
|
(169
|
)
|
|
0 – 12 Months
|
|
|
Over 12 Months
|
|
|
Total
|
|
|||||||||||||||
December 31, 2018
|
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
|
$
|
523
|
|
|
$
|
(4
|
)
|
|
$
|
2,859
|
|
|
$
|
(50
|
)
|
|
$
|
3,382
|
|
|
$
|
(54
|
)
|
Foreign
|
6,764
|
|
|
(208
|
)
|
|
5,349
|
|
|
(159
|
)
|
|
12,113
|
|
|
(367
|
)
|
||||||
Corporate securities
|
16,538
|
|
|
(599
|
)
|
|
4,873
|
|
|
(255
|
)
|
|
21,411
|
|
|
(854
|
)
|
||||||
Mortgage-backed securities
|
6,103
|
|
|
(98
|
)
|
|
6,913
|
|
|
(229
|
)
|
|
13,016
|
|
|
(327
|
)
|
||||||
States, municipalities, and political subdivisions
|
5,024
|
|
|
(44
|
)
|
|
7,768
|
|
|
(124
|
)
|
|
12,792
|
|
|
(168
|
)
|
||||||
Total fixed maturities
|
$
|
34,952
|
|
|
$
|
(953
|
)
|
|
$
|
27,762
|
|
|
$
|
(817
|
)
|
|
$
|
62,714
|
|
|
$
|
(1,770
|
)
|
|
Investment Grade
|
|
Below Investment Grade
|
|
||||||
|
Aaa-Baa
|
|
Ba
|
|
|
B
|
|
|
Caa-C
|
|
1-in-100 Year Default Rate
|
0.0 - 1.3%
|
|
4.8
|
%
|
|
12.0
|
%
|
|
36.3
|
%
|
Historical Mean Default Rate
|
0.0 - 0.3%
|
|
1.0
|
%
|
|
3.1
|
%
|
|
10.4
|
%
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Balance of credit losses related to securities still held – beginning of year
|
$
|
34
|
|
|
$
|
22
|
|
|
$
|
35
|
|
Additions where no OTTI was previously recorded
|
33
|
|
|
20
|
|
|
4
|
|
|||
Additions where an OTTI was previously recorded
|
4
|
|
|
5
|
|
|
2
|
|
|||
Reductions for securities sold during the period
|
(41
|
)
|
|
(13
|
)
|
|
(19
|
)
|
|||
Balance of credit losses related to securities still held – end of year
|
$
|
30
|
|
|
$
|
34
|
|
|
$
|
22
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Fixed maturities:
|
|
|
|
|
|
||||||
OTTI on fixed maturities, gross
|
$
|
(90
|
)
|
|
$
|
(52
|
)
|
|
$
|
(24
|
)
|
OTTI on fixed maturities recognized in OCI (pre-tax)
|
32
|
|
|
3
|
|
|
1
|
|
|||
OTTI on fixed maturities, net
|
(58
|
)
|
|
(49
|
)
|
|
(23
|
)
|
|||
Gross realized gains excluding OTTI
|
203
|
|
|
334
|
|
|
149
|
|
|||
Gross realized losses excluding OTTI
|
(176
|
)
|
|
(587
|
)
|
|
(157
|
)
|
|||
Total fixed maturities
|
(31
|
)
|
|
(302
|
)
|
|
(31
|
)
|
|||
Equity securities (1)
|
104
|
|
|
(59
|
)
|
|
16
|
|
|||
OTTI on other investments
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||
Other investments
|
(20
|
)
|
|
(5
|
)
|
|
—
|
|
|||
Foreign exchange gains
|
7
|
|
|
131
|
|
|
36
|
|
|||
Investment and embedded derivative instruments
|
(435
|
)
|
|
(75
|
)
|
|
(11
|
)
|
|||
Fair value adjustments on insurance derivative
|
(4
|
)
|
|
(248
|
)
|
|
364
|
|
|||
S&P futures
|
(138
|
)
|
|
(4
|
)
|
|
(261
|
)
|
|||
Other derivative instruments
|
(8
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|||
Other
|
(5
|
)
|
|
(87
|
)
|
|
(12
|
)
|
|||
Net realized gains (losses) (pre-tax)
|
$
|
(530
|
)
|
|
$
|
(652
|
)
|
|
$
|
84
|
|
|
|
|
|
|
|
||||||
Change in net unrealized appreciation (depreciation) on investments (pre-tax):
|
|
|
|
|
|
||||||
Fixed maturities available for sale
|
$
|
3,769
|
|
|
$
|
(1,958
|
)
|
|
$
|
519
|
|
Fixed maturities held to maturity
|
(31
|
)
|
|
(38
|
)
|
|
18
|
|
|||
Equity securities
|
—
|
|
|
—
|
|
|
88
|
|
|||
Other
|
(3
|
)
|
|
—
|
|
|
8
|
|
|||
Income tax (expense) benefit
|
(647
|
)
|
|
297
|
|
|
(241
|
)
|
|||
Change in net unrealized appreciation (depreciation) on investments (after-tax)
|
$
|
3,088
|
|
|
$
|
(1,699
|
)
|
|
$
|
392
|
|
(1)
|
2017 included gross realized gains of $28 million and gross realized losses of $2 million on sales, and OTTI of $10 million.
|
|
Year Ended December 31, 2019
|
|
|
Year Ended December 31, 2018
|
|
||||||||||||||||||
(in millions of U.S. dollars)
|
Equity Securities
|
|
|
Other Investments
|
|
|
Total
|
|
|
Equity Securities
|
|
|
Other Investments
|
|
|
Total
|
|
||||||
Net gains (losses) recognized during the period
|
$
|
104
|
|
|
$
|
(20
|
)
|
|
$
|
84
|
|
|
$
|
(59
|
)
|
|
$
|
(5
|
)
|
|
$
|
(64
|
)
|
Less: Net gains (losses) recognized from sales of securities
|
58
|
|
|
(5
|
)
|
|
53
|
|
|
70
|
|
|
121
|
|
|
191
|
|
||||||
Unrealized gains (losses) recognized for securities still held at reporting date
|
$
|
46
|
|
|
$
|
(15
|
)
|
|
$
|
31
|
|
|
$
|
(129
|
)
|
|
$
|
(126
|
)
|
|
$
|
(255
|
)
|
|
December 31
|
|
|||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
||
Alternative investments:
|
|
|
|
||||
Partially-owned investment companies
|
$
|
4,142
|
|
|
$
|
3,623
|
|
Limited partnerships
|
508
|
|
|
538
|
|
||
Investment funds
|
271
|
|
|
83
|
|
||
Alternative investments
|
4,921
|
|
|
4,244
|
|
||
Life insurance policies
|
377
|
|
|
304
|
|
||
Policy loans
|
247
|
|
|
243
|
|
||
Non-qualified separate account assets (1)
|
283
|
|
|
252
|
|
||
Other
|
234
|
|
|
234
|
|
||
Total
|
$
|
6,062
|
|
|
$
|
5,277
|
|
(1)
|
Non-qualified separate account assets are comprised of mutual funds, supported by assets that do not qualify for separate account reporting under GAAP.
|
|
|
|
December 31
|
|
|
December 31
|
|
||||||||||
|
|
|
2019
|
|
|
2018
|
|
||||||||||
(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
|
2 to 10 Years
|
|
$
|
611
|
|
|
$
|
329
|
|
|
$
|
596
|
|
|
$
|
193
|
|
Real Assets
|
2 to 11 Years
|
|
712
|
|
|
422
|
|
|
704
|
|
|
362
|
|
||||
Distressed
|
2 to 7 Years
|
|
263
|
|
|
80
|
|
|
296
|
|
|
105
|
|
||||
Private Credit
|
3 to 8 Years
|
|
104
|
|
|
272
|
|
|
147
|
|
|
310
|
|
||||
Traditional
|
2 to 14 Years
|
|
2,844
|
|
|
2,160
|
|
|
2,362
|
|
|
2,735
|
|
||||
Vintage
|
1 to 2 Years
|
|
116
|
|
|
—
|
|
|
56
|
|
|
—
|
|
||||
Investment funds
|
Not Applicable
|
|
271
|
|
|
—
|
|
|
83
|
|
|
—
|
|
||||
|
|
|
$
|
4,921
|
|
|
$
|
3,263
|
|
|
$
|
4,244
|
|
|
$
|
3,705
|
|
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
|
|
funds where the initial fund term has expired
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
|
||||||||
(in millions of U.S. dollars, except for percentages)
|
Carrying Value
|
|
|
Direct Ownership Percentage
|
|
|
Carrying Value
|
|
|
Direct Ownership Percentage
|
|
|
Domicile
|
||
Huatai Group
|
$
|
1,053
|
|
|
31
|
%
|
|
$
|
452
|
|
|
20
|
%
|
|
China
|
Huatai Life Insurance Company
|
147
|
|
|
20
|
%
|
|
106
|
|
|
20
|
%
|
|
China
|
||
Freisenbruch-Meyer
|
10
|
|
|
40
|
%
|
|
9
|
|
|
40
|
%
|
|
Bermuda
|
||
Chubb Arabia Cooperative Insurance Company
|
20
|
|
|
30
|
%
|
|
18
|
|
|
30
|
%
|
|
Saudi Arabia
|
||
Russian Reinsurance Company
|
2
|
|
|
23
|
%
|
|
2
|
|
|
23
|
%
|
|
Russia
|
||
ABR Reinsurance Ltd.
|
100
|
|
|
12
|
%
|
|
91
|
|
|
12
|
%
|
|
Bermuda
|
||
Total
|
$
|
1,332
|
|
|
|
|
$
|
678
|
|
|
|
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Fixed maturities
|
$
|
3,385
|
|
|
$
|
3,128
|
|
|
$
|
2,987
|
|
Short-term investments
|
84
|
|
|
90
|
|
|
56
|
|
|||
Other interest income
|
25
|
|
|
118
|
|
|
75
|
|
|||
Equity securities
|
26
|
|
|
33
|
|
|
38
|
|
|||
Other investments
|
78
|
|
|
104
|
|
|
133
|
|
|||
Gross investment income (1)
|
3,598
|
|
|
3,473
|
|
|
3,289
|
|
|||
Investment expenses
|
(172
|
)
|
|
(168
|
)
|
|
(164
|
)
|
|||
Net investment income (1)
|
$
|
3,426
|
|
|
$
|
3,305
|
|
|
$
|
3,125
|
|
(1) Includes amortization expense related to fair value adjustment of acquired invested assets
related to the Chubb Corp acquisition
|
$
|
(161
|
)
|
|
$
|
(248
|
)
|
|
$
|
(332
|
)
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
||
Trust funds
|
$
|
14,004
|
|
|
$
|
13,988
|
|
Deposits with U.S. regulatory authorities
|
2,466
|
|
|
2,405
|
|
||
Deposits with non-U.S. regulatory authorities
|
2,709
|
|
|
2,531
|
|
||
Assets pledged under repurchase agreements
|
1,464
|
|
|
1,468
|
|
||
Other pledged assets
|
490
|
|
|
692
|
|
||
Total
|
$
|
21,133
|
|
|
$
|
21,084
|
|
•
|
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
|
December 31, 2019
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
(in millions of U.S. dollars)
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities available for sale
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency
|
$
|
2,664
|
|
|
$
|
619
|
|
|
$
|
—
|
|
|
$
|
3,283
|
|
Foreign
|
—
|
|
|
23,258
|
|
|
449
|
|
|
23,707
|
|
||||
Corporate securities
|
—
|
|
|
30,340
|
|
|
1,451
|
|
|
31,791
|
|
||||
Mortgage-backed securities
|
—
|
|
|
19,132
|
|
|
60
|
|
|
19,192
|
|
||||
States, municipalities, and political subdivisions
|
—
|
|
|
7,515
|
|
|
—
|
|
|
7,515
|
|
||||
|
2,664
|
|
|
80,864
|
|
|
1,960
|
|
|
85,488
|
|
||||
Equity securities
|
728
|
|
|
15
|
|
|
69
|
|
|
812
|
|
||||
Short-term investments
|
2,803
|
|
|
1,482
|
|
|
6
|
|
|
4,291
|
|
||||
Other investments (1)
|
412
|
|
|
377
|
|
|
10
|
|
|
799
|
|
||||
Securities lending collateral
|
—
|
|
|
994
|
|
|
—
|
|
|
994
|
|
||||
Investment derivative instruments
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||
Other derivative instruments
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Separate account assets
|
3,437
|
|
|
136
|
|
|
—
|
|
|
3,573
|
|
||||
Total assets measured at fair value (1)
|
$
|
10,070
|
|
|
$
|
83,868
|
|
|
$
|
2,045
|
|
|
$
|
95,983
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Investment derivative instruments
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
93
|
|
Other derivative instruments
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||
GLB (2)
|
—
|
|
|
—
|
|
|
456
|
|
|
456
|
|
||||
Total liabilities measured at fair value
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
456
|
|
|
$
|
562
|
|
(1)
|
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $4,921 million and other investments of $95 million at December 31, 2019 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, 2018
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
(in millions of U.S. dollars)
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities available for sale
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency
|
$
|
3,400
|
|
|
$
|
745
|
|
|
$
|
—
|
|
|
$
|
4,145
|
|
Foreign
|
—
|
|
|
21,071
|
|
|
345
|
|
|
21,416
|
|
||||
Corporate securities
|
—
|
|
|
25,284
|
|
|
1,299
|
|
|
26,583
|
|
||||
Mortgage-backed securities
|
—
|
|
|
15,479
|
|
|
61
|
|
|
15,540
|
|
||||
States, municipalities, and political subdivisions
|
—
|
|
|
10,786
|
|
|
—
|
|
|
10,786
|
|
||||
|
3,400
|
|
|
73,365
|
|
|
1,705
|
|
|
78,470
|
|
||||
Equity securities
|
713
|
|
|
—
|
|
|
57
|
|
|
770
|
|
||||
Short-term investments
|
1,575
|
|
|
1,440
|
|
|
1
|
|
|
3,016
|
|
||||
Other investments (1)
|
381
|
|
|
303
|
|
|
11
|
|
|
695
|
|
||||
Securities lending collateral
|
—
|
|
|
1,926
|
|
|
—
|
|
|
1,926
|
|
||||
Investment derivative instruments
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
||||
Other derivative instruments
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
Separate account assets
|
2,686
|
|
|
137
|
|
|
—
|
|
|
2,823
|
|
||||
Total assets measured at fair value (1)
|
$
|
8,808
|
|
|
$
|
77,171
|
|
|
$
|
1,774
|
|
|
$
|
87,753
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Investment derivative instruments
|
$
|
38
|
|
|
$
|
115
|
|
|
$
|
—
|
|
|
$
|
153
|
|
GLB (2)
|
—
|
|
|
—
|
|
|
452
|
|
|
452
|
|
||||
Total liabilities measured at fair value
|
$
|
38
|
|
|
$
|
115
|
|
|
$
|
452
|
|
|
$
|
605
|
|
(1)
|
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $4,244 million and other investments of $95 million at December 31, 2018 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.
|
(in millions of U.S. dollars, except for percentages)
|
Fair Value at December 31 2019
|
|
|
Valuation
Technique
|
|
Significant
Unobservable Inputs
|
|
Ranges
|
|
Weighted Average (1)
|
|
||
GLB (1)
|
$
|
456
|
|
|
Actuarial model
|
|
Lapse rate
|
|
3% – 34%
|
|
4.3
|
%
|
|
|
|
|
|
|
Annuitization rate
|
|
0% – 52%
|
|
3.2
|
%
|
(1)
|
The weighted average lapse and annuitization rates are determined by weighting each treaty's rates by the GLB contracts fair value.
|
•
|
As annuitization experience continued to emerge, we refined our annuitization assumptions including age-based behavior. Additionally, for policies with highly valuable guarantees we increased our annuitization assumptions to reflect recent trends. These refinements resulted in a net increase to the fair value of GLB liabilities generating a realized loss of approximately $91 million.
|
•
|
We refined our mortality assumptions based on additional emerging experience. We also updated our reference mortality table to a more recent industry table. The updated mortality rates increased the fair value of GLB liabilities generating a realized loss of approximately $11 million.
|
•
|
Lapse and partial withdrawal assumptions were also refined based on additional emerging experience. The change in lapse and partial withdrawal assumptions had an insignificant impact on the fair value of GLB liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Liabilities
|
|
||||||||||||
|
Available-for-Sale Debt Securities
|
|
|
Equity
securities
|
|
|
Short-term investments
|
|
|
Other
investments
|
|
|
GLB (1)
|
|
|||||||||||||
Year Ended December 31, 2019
|
Foreign
|
|
|
Corporate
securities
|
|
|
MBS
|
|
|
|
|||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|||||||||||||||||||||||
Balance, beginning of year
|
$
|
345
|
|
|
$
|
1,299
|
|
|
$
|
61
|
|
|
$
|
57
|
|
|
$
|
1
|
|
|
$
|
11
|
|
|
$
|
452
|
|
Transfers into Level 3
|
11
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Transfers out of Level 3
|
(24
|
)
|
|
(38
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Change in Net Unrealized Gains/Losses in OCI
|
13
|
|
|
(2
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Net Realized Gains/Losses
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||||
Purchases
|
228
|
|
|
577
|
|
|
19
|
|
|
34
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|||||||
Sales
|
(70
|
)
|
|
(125
|
)
|
|
(1
|
)
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Settlements
|
(53
|
)
|
|
(279
|
)
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||||||
Balance, end of year
|
$
|
449
|
|
|
$
|
1,451
|
|
|
$
|
60
|
|
|
$
|
69
|
|
|
$
|
6
|
|
|
$
|
10
|
|
|
$
|
456
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet Date
|
$
|
7
|
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits. Refer to Note 5 c) for additional information.
|
|
Assets
|
|
|
|
|
Liabilities
|
|
||||||||||||||||||||||||
|
Available-for-Sale Debt Securities
|
|
|
Equity
securities
|
|
|
Short-term investments
|
|
|
Other
investments |
|
|
Other derivative instruments
|
|
|
GLB (1)
|
|
||||||||||||||
Year Ended December 31, 2018
|
Foreign
|
|
|
Corporate
securities
|
|
|
MBS
|
|
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance, beginning of year
|
$
|
93
|
|
|
$
|
1,037
|
|
|
$
|
78
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
263
|
|
|
$
|
2
|
|
|
$
|
204
|
|
Transfers into Level 3
|
13
|
|
|
24
|
|
|
1
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Transfers out of Level 3
|
(2
|
)
|
|
(31
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(252
|
)
|
|
—
|
|
|
—
|
|
||||||||
Change in Net Unrealized Gains/Losses in OCI
|
(12
|
)
|
|
(4
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||||
Net Realized Gains/Losses
|
(3
|
)
|
|
(5
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
248
|
|
||||||||
Purchases
|
334
|
|
|
672
|
|
|
5
|
|
|
37
|
|
|
9
|
|
|
50
|
|
|
—
|
|
|
—
|
|
||||||||
Sales
|
(69
|
)
|
|
(164
|
)
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements
|
(9
|
)
|
|
(230
|
)
|
|
(20
|
)
|
|
—
|
|
|
(13
|
)
|
|
(49
|
)
|
|
—
|
|
|
—
|
|
||||||||
Balance, end of year
|
$
|
345
|
|
|
$
|
1,299
|
|
|
$
|
61
|
|
|
$
|
57
|
|
|
$
|
1
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
452
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
$
|
(1
|
)
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
248
|
|
(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 $861 million at December 31, 2018 and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $452 million and $204 million, respectively.
|
|
Assets
|
|
|
Liabilities
|
|
||||||||||||||||||||||||||
|
Available-for-Sale Debt Securities
|
|
|
|
|
Short-term investments
|
|
|
|
|
Other
derivative
instruments
|
|
|
GLB (2)
|
|
||||||||||||||||
Year Ended December 31, 2017
|
Foreign
|
|
|
Corporate
securities (1)
|
|
|
MBS
|
|
|
Equity
securities
|
|
|
|
Other
investments
|
|
||||||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
||||||||||||||||||||||||||
Balance, beginning of year
|
$
|
74
|
|
|
$
|
681
|
|
|
$
|
45
|
|
|
$
|
41
|
|
|
$
|
25
|
|
|
$
|
225
|
|
|
$
|
13
|
|
|
$
|
559
|
|
Transfers into Level 3
|
—
|
|
|
231
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||||
Transfers out of Level 3
|
(3
|
)
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
||||||||
Change in Net Unrealized Gains/Losses in OCI
|
3
|
|
|
(12
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||||||
Net Realized Gains/Losses
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(364
|
)
|
||||||||
Purchases
|
84
|
|
|
521
|
|
|
8
|
|
|
24
|
|
|
16
|
|
|
56
|
|
|
—
|
|
|
—
|
|
||||||||
Sales
|
(59
|
)
|
|
(111
|
)
|
|
(1
|
)
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements
|
(6
|
)
|
|
(180
|
)
|
|
(24
|
)
|
|
—
|
|
|
(41
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
||||||||
Balance, end of year
|
$
|
93
|
|
|
$
|
1,037
|
|
|
$
|
78
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
263
|
|
|
$
|
2
|
|
|
$
|
204
|
|
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
(364
|
)
|
(1)
|
Transfers into and Purchases in Level 3 primarily consist of privately-placed fixed income securities.
|
(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. The liability for GLB reinsurance was $550 million at December 31, 2017 and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $204 million and $559 million, respectively.
|
December 31, 2019
|
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
|
$
|
1,292
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
1,347
|
|
|
$
|
1,318
|
|
Foreign
|
—
|
|
|
1,485
|
|
|
—
|
|
|
1,485
|
|
|
1,423
|
|
|||||
Corporate securities
|
—
|
|
|
2,436
|
|
|
32
|
|
|
2,468
|
|
|
2,349
|
|
|||||
Mortgage-backed securities
|
—
|
|
|
2,396
|
|
|
—
|
|
|
2,396
|
|
|
2,331
|
|
|||||
States, municipalities, and political subdivisions
|
—
|
|
|
5,309
|
|
|
—
|
|
|
5,309
|
|
|
5,160
|
|
|||||
Total assets
|
$
|
1,292
|
|
|
$
|
11,681
|
|
|
$
|
32
|
|
|
$
|
13,005
|
|
|
$
|
12,581
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
$
|
—
|
|
|
$
|
1,416
|
|
|
$
|
—
|
|
|
$
|
1,416
|
|
|
$
|
1,416
|
|
Short-term debt
|
—
|
|
|
1,307
|
|
|
—
|
|
|
1,307
|
|
|
1,299
|
|
|||||
Long-term debt
|
—
|
|
|
15,048
|
|
|
—
|
|
|
15,048
|
|
|
13,559
|
|
|||||
Trust preferred securities
|
—
|
|
|
467
|
|
|
—
|
|
|
467
|
|
|
308
|
|
|||||
Total liabilities
|
$
|
—
|
|
|
$
|
18,238
|
|
|
$
|
—
|
|
|
$
|
18,238
|
|
|
$
|
16,582
|
|
December 31, 2018
|
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
|
$
|
1,128
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
1,182
|
|
|
$
|
1,185
|
|
Foreign
|
—
|
|
|
1,542
|
|
|
—
|
|
|
1,542
|
|
|
1,549
|
|
|||||
Corporate securities
|
—
|
|
|
2,477
|
|
|
31
|
|
|
2,508
|
|
|
2,601
|
|
|||||
Mortgage-backed securities
|
—
|
|
|
2,486
|
|
|
—
|
|
|
2,486
|
|
|
2,524
|
|
|||||
States, municipalities, and political subdivisions
|
—
|
|
|
5,541
|
|
|
—
|
|
|
5,541
|
|
|
5,576
|
|
|||||
Total assets
|
$
|
1,128
|
|
|
$
|
12,100
|
|
|
$
|
31
|
|
|
$
|
13,259
|
|
|
$
|
13,435
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
$
|
—
|
|
|
$
|
1,418
|
|
|
$
|
—
|
|
|
$
|
1,418
|
|
|
$
|
1,418
|
|
Short-term debt
|
—
|
|
|
516
|
|
|
—
|
|
|
516
|
|
|
509
|
|
|||||
Long-term debt
|
—
|
|
|
12,181
|
|
|
—
|
|
|
12,181
|
|
|
12,087
|
|
|||||
Trust preferred securities
|
—
|
|
|
409
|
|
|
—
|
|
|
409
|
|
|
308
|
|
|||||
Total liabilities
|
$
|
—
|
|
|
$
|
14,524
|
|
|
$
|
—
|
|
|
$
|
14,524
|
|
|
$
|
14,322
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Premiums written
|
|
|
|
|
|||||||
Direct
|
$
|
36,848
|
|
|
$
|
34,782
|
|
|
$
|
33,137
|
|
Assumed
|
3,276
|
|
|
3,186
|
|
|
3,239
|
|
|||
Ceded
|
(7,849
|
)
|
|
(7,389
|
)
|
|
(7,132
|
)
|
|||
Net
|
$
|
32,275
|
|
|
$
|
30,579
|
|
|
$
|
29,244
|
|
Premiums earned
|
|
|
|
|
|
||||||
Direct
|
$
|
35,876
|
|
|
$
|
34,108
|
|
|
$
|
32,782
|
|
Assumed
|
3,107
|
|
|
3,175
|
|
|
3,332
|
|
|||
Ceded
|
(7,693
|
)
|
|
(7,219
|
)
|
|
(7,080
|
)
|
|||
Net
|
$
|
31,290
|
|
|
$
|
30,064
|
|
|
$
|
29,034
|
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||
(in millions of U.S. dollars)
|
Net Reinsurance Recoverable (1)
|
|
|
Provision for Uncollectible
|
|
|
Net Reinsurance Recoverable (1)
|
|
|
Provision for Uncollectible
|
|
|||||
Reinsurance recoverable on unpaid losses and loss expenses
|
$
|
14,181
|
|
|
$
|
240
|
|
|
$
|
14,689
|
|
|
$
|
251
|
|
|
Reinsurance recoverable on paid losses and loss expenses
|
1,000
|
|
|
76
|
|
|
1,304
|
|
|
72
|
|
|||||
Reinsurance recoverable on losses and loss expenses
|
$
|
15,181
|
|
|
$
|
316
|
|
|
$
|
15,993
|
|
|
$
|
323
|
|
|
Reinsurance recoverable on policy benefits
|
$
|
197
|
|
|
$
|
4
|
|
|
$
|
202
|
|
|
$
|
4
|
|
(1)
|
Net of provision for uncollectible reinsurance.
|
December 31, 2019
|
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
|
$
|
6,594
|
|
|
$
|
72
|
|
|
1.1
|
%
|
Other reinsurers rated A- or better
|
4,624
|
|
|
55
|
|
|
1.2
|
%
|
||
Other reinsurers with ratings lower than A- or not rated
|
478
|
|
|
70
|
|
|
14.6
|
%
|
||
Pools
|
379
|
|
|
15
|
|
|
4.0
|
%
|
||
Structured settlements
|
535
|
|
|
15
|
|
|
2.8
|
%
|
||
Captives
|
2,647
|
|
|
20
|
|
|
0.8
|
%
|
||
Other
|
240
|
|
|
69
|
|
|
28.8
|
%
|
||
Total
|
$
|
15,497
|
|
|
$
|
316
|
|
|
2.0
|
%
|
Largest Reinsurers
|
|
|
|
ABR Reinsurance Capital Holdings
|
HDI Group (Hannover Re)
|
Munich Re Group
|
Swiss Re Group
|
Berkshire Hathaway Insurance Group
|
Lloyd's of London
|
Partner 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)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
GMDB
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
41
|
|
|
$
|
47
|
|
|
$
|
49
|
|
Policy benefits and other reserve adjustments
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
40
|
|
GLB
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
92
|
|
|
$
|
96
|
|
|
$
|
110
|
|
Policy benefits and other reserve adjustments
|
122
|
|
|
110
|
|
|
105
|
|
|||
Net realized gains (losses)
|
(6
|
)
|
|
(250
|
)
|
|
363
|
|
|||
Gain (loss) recognized in Net income
|
$
|
(36
|
)
|
|
$
|
(264
|
)
|
|
$
|
368
|
|
Net cash received and other
|
—
|
|
|
47
|
|
|
65
|
|
|||
Net decrease (increase) in liability
|
$
|
(36
|
)
|
|
$
|
(311
|
)
|
|
$
|
303
|
|
(in millions of U.S. dollars, except for percentages)
|
|
Net amount at risk
|
|
|
|
|||||||
Reinsurance covering
|
|
December 31 2019
|
|
December 31 2018
|
|
2019 Future claims discount rate
|
Other assumptions
|
Total claims at
100% mortality at December 31, 2019(1) |
|
|||
GMDB Risk Only
|
|
$
|
256
|
|
$
|
408
|
|
3.8% - 4.0%
|
No lapses or withdrawals
|
$
|
167
|
|
|
|
|
|
|
Mortality according to 100% of the Annuity 2000 mortality table
|
|
||||||
GLB Risk Only
|
|
$
|
1,095
|
|
$
|
1,233
|
|
4.0% - 4.3%
|
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
|
$
|
91
|
|
$
|
103
|
|
4.0% - 4.3%
|
No lapses or withdrawals
|
$
|
16
|
|
|
|
|
|
|
Mortality according to 100% of the Annuity 2000 mortality table
|
|
||||||
|
GLB
|
$
|
415
|
|
$
|
517
|
|
4.0% - 4.3%
|
Annuitization at a frequency most disadvantageous to Chubb(2)
|
N/A
|
|
|
|
|
|
|
|
Claim calculated using interest rates in line with rates used to calculate reserve
|
|
(1)
|
Takes into account all applicable reinsurance treaty claim limits.
|
(2)
|
Annuitization at a level that maximizes claims taking into account the treaty limits.
|
(3)
|
Covering both the GMDB and GLB risks on the same underlying policyholders.
|
(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, 2017
|
$
|
6,976
|
|
|
$
|
2,240
|
|
|
$
|
134
|
|
|
$
|
5,004
|
|
|
$
|
365
|
|
|
$
|
822
|
|
|
$
|
15,541
|
|
Foreign exchange revaluation and other
|
(30
|
)
|
|
(10
|
)
|
|
—
|
|
|
(234
|
)
|
|
6
|
|
|
(2
|
)
|
|
(270
|
)
|
|||||||
Balance at December 31, 2018
|
$
|
6,946
|
|
|
$
|
2,230
|
|
|
$
|
134
|
|
|
$
|
4,770
|
|
|
$
|
371
|
|
|
$
|
820
|
|
|
$
|
15,271
|
|
Foreign exchange revaluation and other
|
9
|
|
|
4
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
(3
|
)
|
|
25
|
|
|||||||
Balance at December 31, 2019
|
$
|
6,955
|
|
|
$
|
2,234
|
|
|
$
|
134
|
|
|
$
|
4,785
|
|
|
$
|
371
|
|
|
$
|
817
|
|
|
$
|
15,296
|
|
|
Associated with the Chubb Corp Acquisition
|
|
|
|
|
|
|||||||||||||
For the Years Ending December 31 (in millions of U.S. dollars)
|
Agency distribution relationships and renewal rights
|
|
|
Fair value adjustment on Unpaid losses and loss expense (1)
|
|
|
Total
|
|
|
Other
intangible assets
|
|
|
Total Amortization of purchased intangibles
|
|
|||||
2020
|
$
|
239
|
|
|
$
|
(35
|
)
|
|
$
|
204
|
|
|
$
|
86
|
|
|
$
|
290
|
|
2021
|
216
|
|
|
(20
|
)
|
|
196
|
|
|
84
|
|
|
280
|
|
|||||
2022
|
196
|
|
|
(14
|
)
|
|
182
|
|
|
93
|
|
|
275
|
|
|||||
2023
|
177
|
|
|
(7
|
)
|
|
170
|
|
|
91
|
|
|
261
|
|
|||||
2024
|
159
|
|
|
(5
|
)
|
|
154
|
|
|
85
|
|
|
239
|
|
|||||
Total
|
$
|
987
|
|
|
$
|
(81
|
)
|
|
$
|
906
|
|
|
$
|
439
|
|
|
$
|
1,345
|
|
(1)
|
In connection with the Chubb Corp acquisition, we recorded an increase to Unpaid losses and loss expenses acquired 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 through the year 2032. The balance of the fair value adjustment on Unpaid losses and loss expense was $145 million and $207 million at December 31, 2019 and 2018, respectively. Refer to Note 1(h) for additional information.
|
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Balance, beginning of year
|
$
|
295
|
|
|
$
|
326
|
|
|
$
|
355
|
|
Acquisition of Banchile Seguros de Vida
|
35
|
|
|
—
|
|
|
—
|
|
|||
Amortization of VOBA (1)
|
(24
|
)
|
|
(25
|
)
|
|
(35
|
)
|
|||
Foreign exchange revaluation
|
—
|
|
|
(6
|
)
|
|
6
|
|
|||
Balance, end of year
|
$
|
306
|
|
|
$
|
295
|
|
|
$
|
326
|
|
(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)
|
|||
2020
|
$
|
26
|
|
2021
|
24
|
|
|
2022
|
22
|
|
|
2023
|
21
|
|
|
2024
|
19
|
|
|
Total
|
$
|
112
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Gross unpaid losses and loss expenses, beginning of year
|
$
|
62,960
|
|
|
$
|
63,179
|
|
|
$
|
60,540
|
|
Reinsurance recoverable on unpaid losses (1)
|
(14,689
|
)
|
|
(14,014
|
)
|
|
(12,708
|
)
|
|||
Net unpaid losses and loss expenses, beginning of year
|
48,271
|
|
|
49,165
|
|
|
47,832
|
|
|||
Net losses and loss expenses incurred in respect of losses occurring in:
|
|
|
|
|
|
||||||
Current year
|
19,575
|
|
|
19,048
|
|
|
19,391
|
|
|||
Prior years (2)
|
(845
|
)
|
|
(981
|
)
|
|
(937
|
)
|
|||
Total
|
18,730
|
|
|
18,067
|
|
|
18,454
|
|
|||
Net losses and loss expenses paid in respect of losses occurring in:
|
|
|
|
|
|
||||||
Current year
|
7,894
|
|
|
7,544
|
|
|
6,575
|
|
|||
Prior years
|
10,579
|
|
|
10,796
|
|
|
10,873
|
|
|||
Total
|
18,473
|
|
|
18,340
|
|
|
17,448
|
|
|||
Foreign currency revaluation and other
|
(19
|
)
|
|
(621
|
)
|
|
327
|
|
|||
Net unpaid losses and loss expenses, end of year
|
48,509
|
|
|
48,271
|
|
|
49,165
|
|
|||
Reinsurance recoverable on unpaid losses (1)
|
14,181
|
|
|
14,689
|
|
|
14,014
|
|
|||
Gross unpaid losses and loss expenses, end of year
|
$
|
62,690
|
|
|
$
|
62,960
|
|
|
$
|
63,179
|
|
(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 totaling $53 million, $85 million and $108 million for 2019, 2018, and 2017, respectively.
|
Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Presented in the loss development tables:
|
|
|
||
North America Commercial P&C Insurance — Workers' Compensation
|
|
$
|
9,414
|
|
North America Commercial P&C Insurance — Liability
|
|
16,447
|
|
|
North America Commercial P&C Insurance — Other Casualty
|
|
1,913
|
|
|
North America Commercial P&C Insurance — Non-Casualty
|
|
1,759
|
|
|
North America Personal P&C Insurance
|
|
2,525
|
|
|
Overseas General Insurance — Casualty
|
|
5,977
|
|
|
Overseas General Insurance — Non-Casualty
|
|
2,377
|
|
|
Global Reinsurance — Casualty
|
|
1,177
|
|
|
Global Reinsurance — Non-Casualty
|
|
255
|
|
|
Excluded from the loss development tables:
|
|
|
||
Other
|
|
4,218
|
|
|
Net unpaid loss and allocated loss adjustment expense
|
|
46,062
|
|
|
Ceded unpaid loss and allocated loss adjustment expense:
|
|
|
||
North America Commercial P&C Insurance — Workers' Compensation
|
|
$
|
1,657
|
|
North America Commercial P&C Insurance — Liability
|
|
5,400
|
|
|
North America Commercial P&C Insurance — Other Casualty
|
|
546
|
|
|
North America Commercial P&C Insurance — Non-Casualty
|
|
1,150
|
|
|
North America Personal P&C Insurance
|
|
603
|
|
|
Overseas General Insurance — Casualty
|
|
2,113
|
|
|
Overseas General Insurance — Non-Casualty
|
|
1,263
|
|
|
Global Reinsurance — Casualty
|
|
35
|
|
|
Global Reinsurance — Non-Casualty
|
|
107
|
|
|
Other
|
|
1,457
|
|
|
Ceded unpaid loss and allocated loss adjustment expense
|
|
14,331
|
|
|
Unpaid loss and loss expense on other than short-duration contracts (1)
|
|
873
|
|
|
Unpaid unallocated loss adjustment expenses
|
|
1,424
|
|
|
Unpaid losses and loss expenses
|
|
$
|
62,690
|
|
(1)
|
Primarily includes the claims reserve of our International A&H business and Life Insurance segment reserves.
|
•
|
North America Agricultural Insurance segment business, which is short-tailed with the majority of the liabilities expected to be resolved in the ensuing twelve months;
|
•
|
Corporate segment business, which includes run-off liabilities such as asbestos and environmental and other mass tort exposures and which impact accident years older than those shown in the exhibits below;
|
•
|
Life Insurance segment business, which is generally written using long-duration contracts; and
|
•
|
Certain subsets of our business due to data limitations or unsuitability to the development table presentation, including:
|
◦
|
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 also 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. This category includes the loss portfolio transfer of Fireman’s Fund personal lines run-off liabilities and Alternative Risk Solutions business within the North America Commercial P&C segment;
|
◦
|
2015 and prior paid history on a subset of previously acquired international businesses, within the Overseas General Insurance segment, due to limitations on the data prior to the acquisition;
|
◦
|
Reinsurance recoverable bad debt;
|
◦
|
Purchase accounting adjustments related to unpaid losses and loss expenses for Chubb Corp.
|
•
|
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;
|
•
|
reported and projected loss trends;
|
•
|
extent of emerged loss experience relative to the remaining expected period of loss emergence;
|
•
|
rate monitor information for new and renewal business;
|
•
|
changes in claims handling practice;
|
•
|
inflation;
|
•
|
the legal environment;
|
•
|
facts and circumstances of large claims;
|
•
|
terms and conditions of the contracts sold to our insured parties;
|
•
|
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 business mix or volume 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, 2010, to December 31, 2018 and average historical claim duration as of December 31, 2019, are presented as supplementary information.
|
•
|
All data presented in the triangles is net of reinsurance recoverables.
|
•
|
The IBNR reserves shown to the right of each incurred loss development exhibit reflect the net IBNR recorded as of December 31, 2019.
|
•
|
The tables are presented retrospectively with respect to acquisitions where these are material and doing so is practicable. Most notably, the Chubb Corp acquisition is presented retrospectively. The unaudited consolidated data is presented solely for informational purposes and is not necessarily indicative of the consolidated data that might have been observed had the transactions been completed prior to the date indicated.
|
•
|
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.
|
•
|
Each of the segments below typically has a mixture of primary and excess experience which has shifted over time.
|
North America Commercial P&C Insurance — Workers' Compensation — Long-tail (continued)
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
|||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
1,049
|
|
|
$
|
1,037
|
|
|
$
|
1,050
|
|
|
$
|
1,065
|
|
|
$
|
1,064
|
|
|
$
|
1,052
|
|
|
$
|
1,028
|
|
|
$
|
1,020
|
|
|
$
|
1,018
|
|
|
$
|
999
|
|
|
$
|
223
|
|
|
303
|
|
2011
|
|
|
1,037
|
|
|
1,030
|
|
|
1,046
|
|
|
1,049
|
|
|
1,053
|
|
|
1,022
|
|
|
1,012
|
|
|
1,009
|
|
|
988
|
|
|
233
|
|
|
286
|
|
||||||||||||
2012
|
|
|
|
|
1,050
|
|
|
1,011
|
|
|
1,030
|
|
|
1,040
|
|
|
1,011
|
|
|
989
|
|
|
986
|
|
|
977
|
|
|
275
|
|
|
287
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
1,109
|
|
|
1,108
|
|
|
1,122
|
|
|
1,127
|
|
|
1,086
|
|
|
1,073
|
|
|
1,037
|
|
|
309
|
|
|
299
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
1,207
|
|
|
1,201
|
|
|
1,217
|
|
|
1,215
|
|
|
1,163
|
|
|
1,100
|
|
|
395
|
|
|
336
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
1,282
|
|
|
1,259
|
|
|
1,276
|
|
|
1,279
|
|
|
1,217
|
|
|
500
|
|
|
334
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
1,366
|
|
|
1,361
|
|
|
1,383
|
|
|
1,378
|
|
|
673
|
|
|
304
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,412
|
|
|
1,380
|
|
|
1,399
|
|
|
783
|
|
|
339
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,359
|
|
|
1,360
|
|
|
788
|
|
|
362
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,391
|
|
|
997
|
|
|
246
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,846
|
|
|
|
|
|
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
|
|
||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
2,668
|
|
All Accident years
|
|
$
|
9,414
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
|
|
||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
(93
|
)
|
All Accident years
|
|
$
|
(288
|
)
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
10
|
%
|
|
16
|
%
|
|
10
|
%
|
|
7
|
%
|
|
5
|
%
|
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
|||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
3,574
|
|
|
$
|
3,579
|
|
|
$
|
3,597
|
|
|
$
|
3,556
|
|
|
$
|
3,416
|
|
|
$
|
3,247
|
|
|
$
|
3,125
|
|
|
$
|
3,105
|
|
|
$
|
2,993
|
|
|
$
|
2,983
|
|
|
$
|
202
|
|
|
18
|
|
2011
|
|
|
3,496
|
|
|
3,582
|
|
|
3,626
|
|
|
3,660
|
|
|
3,590
|
|
|
3,494
|
|
|
3,380
|
|
|
3,312
|
|
|
3,190
|
|
|
299
|
|
|
18
|
|
||||||||||||
2012
|
|
|
|
|
3,548
|
|
|
3,624
|
|
|
3,609
|
|
|
3,560
|
|
|
3,520
|
|
|
3,422
|
|
|
3,326
|
|
|
3,231
|
|
|
430
|
|
|
18
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
3,543
|
|
|
3,538
|
|
|
3,538
|
|
|
3,528
|
|
|
3,426
|
|
|
3,212
|
|
|
3,118
|
|
|
500
|
|
|
17
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
3,532
|
|
|
3,582
|
|
|
3,671
|
|
|
3,713
|
|
|
3,652
|
|
|
3,467
|
|
|
792
|
|
|
17
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
3,556
|
|
|
3,705
|
|
|
3,814
|
|
|
3,971
|
|
|
3,939
|
|
|
1,232
|
|
|
19
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
3,530
|
|
|
3,591
|
|
|
3,688
|
|
|
3,801
|
|
|
1,279
|
|
|
20
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,319
|
|
|
3,495
|
|
|
3,577
|
|
|
1,818
|
|
|
21
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,371
|
|
|
3,490
|
|
|
2,170
|
|
|
24
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,449
|
|
|
3,005
|
|
|
25
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
34,245
|
|
|
|
|
|
North America Commercial P&C Insurance — Liability — Long-tail (continued)
|
||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
||||||||||||||||||||||||||||||||||||||||
|
|
Years Ended December 31
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
||||||||||
2010
|
|
$
|
126
|
|
|
$
|
611
|
|
|
$
|
1,108
|
|
|
$
|
1,558
|
|
|
$
|
1,892
|
|
|
$
|
2,257
|
|
|
$
|
2,424
|
|
|
$
|
2,525
|
|
|
$
|
2,659
|
|
|
$
|
2,716
|
|
2011
|
|
|
|
160
|
|
|
651
|
|
|
1,208
|
|
|
1,803
|
|
|
2,212
|
|
|
2,474
|
|
|
2,657
|
|
|
2,738
|
|
|
2,824
|
|
|||||||||||
2012
|
|
|
|
|
|
166
|
|
|
655
|
|
|
1,171
|
|
|
1,678
|
|
|
2,090
|
|
|
2,324
|
|
|
2,499
|
|
|
2,615
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
130
|
|
|
547
|
|
|
1,191
|
|
|
1,595
|
|
|
2,005
|
|
|
2,230
|
|
|
2,371
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
164
|
|
|
679
|
|
|
1,249
|
|
|
1,802
|
|
|
2,200
|
|
|
2,440
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
138
|
|
|
605
|
|
|
1,205
|
|
|
1,854
|
|
|
2,289
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
171
|
|
|
662
|
|
|
1,335
|
|
|
1,974
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
161
|
|
|
616
|
|
|
1,161
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
189
|
|
|
754
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
176
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,320
|
|
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
1,522
|
|
All Accident years
|
|
$
|
16,447
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
(49
|
)
|
All Accident years
|
|
$
|
(273
|
)
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
5
|
%
|
|
14
|
%
|
|
17
|
%
|
|
16
|
%
|
|
12
|
%
|
|
8
|
%
|
|
5
|
%
|
|
3
|
%
|
|
4
|
%
|
|
2
|
%
|
North America Commercial P&C Insurance — Other-Casualty — Long-tail (continued)
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
|||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
613
|
|
|
$
|
607
|
|
|
$
|
601
|
|
|
$
|
546
|
|
|
$
|
506
|
|
|
$
|
478
|
|
|
$
|
480
|
|
|
$
|
493
|
|
|
$
|
484
|
|
|
$
|
481
|
|
|
$
|
16
|
|
|
15
|
|
2011
|
|
|
580
|
|
|
589
|
|
|
581
|
|
|
548
|
|
|
533
|
|
|
524
|
|
|
516
|
|
|
510
|
|
|
512
|
|
|
24
|
|
|
15
|
|
||||||||||||
2012
|
|
|
|
|
633
|
|
|
605
|
|
|
577
|
|
|
560
|
|
|
520
|
|
|
519
|
|
|
508
|
|
|
507
|
|
|
3
|
|
|
15
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
526
|
|
|
530
|
|
|
522
|
|
|
515
|
|
|
468
|
|
|
462
|
|
|
461
|
|
|
29
|
|
|
17
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
594
|
|
|
583
|
|
|
581
|
|
|
596
|
|
|
555
|
|
|
538
|
|
|
45
|
|
|
17
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
486
|
|
|
470
|
|
|
501
|
|
|
515
|
|
|
458
|
|
|
51
|
|
|
15
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
504
|
|
|
502
|
|
|
527
|
|
|
524
|
|
|
136
|
|
|
15
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
531
|
|
|
566
|
|
|
577
|
|
|
174
|
|
|
16
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
535
|
|
|
563
|
|
|
298
|
|
|
15
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
606
|
|
|
428
|
|
|
14
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,227
|
|
|
|
|
|
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
252
|
|
All Accident years
|
|
$
|
1,913
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
5
|
|
All Accident years
|
|
$
|
(36
|
)
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
14
|
%
|
|
24
|
%
|
|
19
|
%
|
|
14
|
%
|
|
9
|
%
|
|
6
|
%
|
|
2
|
%
|
|
2
|
%
|
|
1
|
%
|
|
—
|
%
|
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
|||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
1,501
|
|
|
$
|
1,537
|
|
|
$
|
1,461
|
|
|
$
|
1,424
|
|
|
$
|
1,422
|
|
|
$
|
1,415
|
|
|
$
|
1,410
|
|
|
$
|
1,404
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
$
|
1
|
|
|
1,057
|
|
2011
|
|
|
1,958
|
|
|
1,932
|
|
|
1,875
|
|
|
1,853
|
|
|
1,833
|
|
|
1,837
|
|
|
1,832
|
|
|
1,832
|
|
|
1,833
|
|
|
10
|
|
|
1,051
|
|
||||||||||||
2012
|
|
|
|
|
2,030
|
|
|
1,913
|
|
|
1,880
|
|
|
1,861
|
|
|
1,856
|
|
|
1,844
|
|
|
1,841
|
|
|
1,847
|
|
|
3
|
|
|
1,035
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
1,430
|
|
|
1,420
|
|
|
1,333
|
|
|
1,356
|
|
|
1,337
|
|
|
1,337
|
|
|
1,334
|
|
|
3
|
|
|
1,072
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
1,642
|
|
|
1,658
|
|
|
1,576
|
|
|
1,555
|
|
|
1,546
|
|
|
1,547
|
|
|
7
|
|
|
1,100
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
1,733
|
|
|
1,742
|
|
|
1,647
|
|
|
1,635
|
|
|
1,602
|
|
|
17
|
|
|
1,170
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
1,907
|
|
|
1,887
|
|
|
1,797
|
|
|
1,778
|
|
|
16
|
|
|
1,291
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,701
|
|
|
2,605
|
|
|
2,503
|
|
|
71
|
|
|
1,374
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,050
|
|
|
2,237
|
|
|
182
|
|
|
1,551
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,049
|
|
|
587
|
|
|
1,446
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18,124
|
|
|
|
|
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
||||||||||||||||||||||||||||||||||||||||
|
|
Years Ended December 31
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
||||||||||
2010
|
|
$
|
723
|
|
|
$
|
1,222
|
|
|
$
|
1,320
|
|
|
$
|
1,357
|
|
|
$
|
1,382
|
|
|
$
|
1,391
|
|
|
$
|
1,394
|
|
|
$
|
1,395
|
|
|
$
|
1,391
|
|
|
$
|
1,391
|
|
2011
|
|
|
|
938
|
|
|
1,571
|
|
|
1,715
|
|
|
1,775
|
|
|
1,785
|
|
|
1,808
|
|
|
1,813
|
|
|
1,819
|
|
|
1,822
|
|
|||||||||||
2012
|
|
|
|
|
|
713
|
|
|
1,575
|
|
|
1,696
|
|
|
1,764
|
|
|
1,792
|
|
|
1,819
|
|
|
1,813
|
|
|
1,839
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
649
|
|
|
1,135
|
|
|
1,234
|
|
|
1,282
|
|
|
1,308
|
|
|
1,321
|
|
|
1,329
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
818
|
|
|
1,370
|
|
|
1,481
|
|
|
1,502
|
|
|
1,528
|
|
|
1,543
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
725
|
|
|
1,341
|
|
|
1,486
|
|
|
1,554
|
|
|
1,570
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
845
|
|
|
1,502
|
|
|
1,653
|
|
|
1,729
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
978
|
|
|
2,085
|
|
|
2,301
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,026
|
|
|
1,823
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,029
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,376
|
|
North America Commercial P&C Insurance — Non-Casualty — Short-tail (continued)
|
|
|
||
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
|
|
||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
11
|
|
All Accident years
|
|
$
|
1,759
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
|
|
||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
(6
|
)
|
All Accident years
|
|
$
|
32
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
47
|
%
|
|
39
|
%
|
|
8
|
%
|
|
3
|
%
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
|||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
1,868
|
|
|
$
|
1,876
|
|
|
$
|
1,853
|
|
|
$
|
1,835
|
|
|
$
|
1,832
|
|
|
$
|
1,828
|
|
|
$
|
1,823
|
|
|
$
|
1,820
|
|
|
$
|
1,821
|
|
|
$
|
1,820
|
|
|
$
|
6
|
|
|
146
|
|
2011
|
|
|
2,205
|
|
|
2,207
|
|
|
2,182
|
|
|
2,170
|
|
|
2,162
|
|
|
2,158
|
|
|
2,157
|
|
|
2,156
|
|
|
2,156
|
|
|
8
|
|
|
166
|
|
||||||||||||
2012
|
|
|
|
|
2,183
|
|
|
2,181
|
|
|
2,181
|
|
|
2,189
|
|
|
2,183
|
|
|
2,184
|
|
|
2,186
|
|
|
2,192
|
|
|
20
|
|
|
170
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
1,854
|
|
|
1,882
|
|
|
1,890
|
|
|
1,894
|
|
|
1,918
|
|
|
1,931
|
|
|
1,938
|
|
|
26
|
|
|
122
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
2,202
|
|
|
2,203
|
|
|
2,189
|
|
|
2,142
|
|
|
2,156
|
|
|
2,143
|
|
|
19
|
|
|
132
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
2,491
|
|
|
2,546
|
|
|
2,557
|
|
|
2,540
|
|
|
2,559
|
|
|
30
|
|
|
135
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
2,436
|
|
|
2,532
|
|
|
2,541
|
|
|
2,479
|
|
|
78
|
|
|
138
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,031
|
|
|
3,066
|
|
|
2,998
|
|
|
171
|
|
|
142
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,006
|
|
|
3,033
|
|
|
295
|
|
|
148
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,953
|
|
|
725
|
|
|
116
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
24,271
|
|
|
|
|
|
North America Personal P&C Insurance — Short-tail (continued)
|
||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
||||||||||||||||||||||||||||||||||||||||
|
|
Years Ended December 31
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
||||||||||
2010
|
|
$
|
1,151
|
|
|
$
|
1,521
|
|
|
$
|
1,668
|
|
|
$
|
1,727
|
|
|
$
|
1,770
|
|
|
$
|
1,791
|
|
|
$
|
1,803
|
|
|
$
|
1,809
|
|
|
$
|
1,810
|
|
|
$
|
1,812
|
|
2011
|
|
|
|
1,358
|
|
|
1,833
|
|
|
1,969
|
|
|
2,049
|
|
|
2,103
|
|
|
2,126
|
|
|
2,136
|
|
|
2,143
|
|
|
2,146
|
|
|||||||||||
2012
|
|
|
|
|
|
1,175
|
|
|
1,804
|
|
|
1,955
|
|
|
2,061
|
|
|
2,115
|
|
|
2,147
|
|
|
2,161
|
|
|
2,161
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
1,040
|
|
|
1,499
|
|
|
1,682
|
|
|
1,781
|
|
|
1,837
|
|
|
1,879
|
|
|
1,890
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
1,308
|
|
|
1,762
|
|
|
1,922
|
|
|
2,031
|
|
|
2,076
|
|
|
2,103
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
1,497
|
|
|
2,081
|
|
|
2,267
|
|
|
2,388
|
|
|
2,475
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,451
|
|
|
2,049
|
|
|
2,208
|
|
|
2,311
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,696
|
|
|
2,517
|
|
|
2,664
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,924
|
|
|
2,545
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,666
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
21,773
|
|
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
|
|
||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
27
|
|
All Accident years
|
|
$
|
2,525
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
(1
|
)
|
All Accident years
|
|
$
|
(86
|
)
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
59
|
%
|
|
23
|
%
|
|
7
|
%
|
|
4
|
%
|
|
3
|
%
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Overseas General Insurance — Casualty — Long-tail (continued)
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
|||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
1,183
|
|
|
$
|
1,263
|
|
|
$
|
1,308
|
|
|
$
|
1,379
|
|
|
$
|
1,316
|
|
|
$
|
1,265
|
|
|
$
|
1,141
|
|
|
$
|
1,136
|
|
|
$
|
1,142
|
|
|
$
|
1,149
|
|
|
$
|
68
|
|
|
37
|
|
2011
|
|
|
1,211
|
|
|
1,218
|
|
|
1,210
|
|
|
1,200
|
|
|
1,117
|
|
|
1,054
|
|
|
1,042
|
|
|
991
|
|
|
988
|
|
|
35
|
|
|
37
|
|
||||||||||||
2012
|
|
|
|
|
1,246
|
|
|
1,217
|
|
|
1,279
|
|
|
1,297
|
|
|
1,294
|
|
|
1,285
|
|
|
1,265
|
|
|
1,255
|
|
|
137
|
|
|
38
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
1,237
|
|
|
1,233
|
|
|
1,229
|
|
|
1,272
|
|
|
1,226
|
|
|
1,193
|
|
|
1,136
|
|
|
139
|
|
|
38
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
1,238
|
|
|
1,308
|
|
|
1,317
|
|
|
1,333
|
|
|
1,249
|
|
|
1,167
|
|
|
208
|
|
|
39
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
1,164
|
|
|
1,259
|
|
|
1,288
|
|
|
1,311
|
|
|
1,286
|
|
|
287
|
|
|
41
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
1,191
|
|
|
1,291
|
|
|
1,357
|
|
|
1,385
|
|
|
428
|
|
|
42
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,185
|
|
|
1,286
|
|
|
1,335
|
|
|
495
|
|
|
41
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,283
|
|
|
1,333
|
|
|
789
|
|
|
40
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,346
|
|
|
1,011
|
|
|
32
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,380
|
|
|
|
|
|
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
432
|
|
All Accident years
|
|
$
|
5,977
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
(18
|
)
|
All Accident years
|
|
$
|
(61
|
)
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
8
|
%
|
|
15
|
%
|
|
15
|
%
|
|
12
|
%
|
|
10
|
%
|
|
9
|
%
|
|
6
|
%
|
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
|||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
1,647
|
|
|
$
|
1,669
|
|
|
$
|
1,643
|
|
|
$
|
1,632
|
|
|
$
|
1,626
|
|
|
$
|
1,612
|
|
|
$
|
1,599
|
|
|
$
|
1,582
|
|
|
$
|
1,584
|
|
|
$
|
1,582
|
|
|
$
|
6
|
|
|
518
|
|
2011
|
|
|
1,871
|
|
|
1,956
|
|
|
1,900
|
|
|
1,861
|
|
|
1,843
|
|
|
1,832
|
|
|
1,824
|
|
|
1,814
|
|
|
1,810
|
|
|
3
|
|
|
544
|
|
||||||||||||
2012
|
|
|
|
|
1,696
|
|
|
1,686
|
|
|
1,646
|
|
|
1,591
|
|
|
1,585
|
|
|
1,577
|
|
|
1,561
|
|
|
1,556
|
|
|
14
|
|
|
556
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
1,778
|
|
|
1,770
|
|
|
1,703
|
|
|
1,656
|
|
|
1,651
|
|
|
1,621
|
|
|
1,609
|
|
|
27
|
|
|
574
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
1,852
|
|
|
1,920
|
|
|
1,862
|
|
|
1,851
|
|
|
1,814
|
|
|
1,804
|
|
|
15
|
|
|
549
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
1,952
|
|
|
2,075
|
|
|
2,051
|
|
|
2,017
|
|
|
1,999
|
|
|
38
|
|
|
571
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
2,050
|
|
|
2,052
|
|
|
2,040
|
|
|
2,018
|
|
|
17
|
|
|
567
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,198
|
|
|
2,238
|
|
|
2,220
|
|
|
46
|
|
|
577
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,153
|
|
|
2,244
|
|
|
124
|
|
|
622
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,181
|
|
|
376
|
|
|
608
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,023
|
|
|
|
|
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
||||||||||||||||||||||||||||||||||||||||
|
|
Years Ended December 31
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
||||||||||
2010
|
|
$
|
671
|
|
|
$
|
1,226
|
|
|
$
|
1,424
|
|
|
$
|
1,486
|
|
|
$
|
1,524
|
|
|
$
|
1,537
|
|
|
$
|
1,544
|
|
|
$
|
1,545
|
|
|
$
|
1,550
|
|
|
$
|
1,562
|
|
2011
|
|
|
|
758
|
|
|
1,460
|
|
|
1,660
|
|
|
1,716
|
|
|
1,746
|
|
|
1,761
|
|
|
1,769
|
|
|
1,773
|
|
|
1,773
|
|
|||||||||||
2012
|
|
|
|
|
|
681
|
|
|
1,226
|
|
|
1,412
|
|
|
1,470
|
|
|
1,493
|
|
|
1,502
|
|
|
1,515
|
|
|
1,517
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
698
|
|
|
1,273
|
|
|
1,466
|
|
|
1,497
|
|
|
1,534
|
|
|
1,553
|
|
|
1,562
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
758
|
|
|
1,423
|
|
|
1,632
|
|
|
1,696
|
|
|
1,727
|
|
|
1,741
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
852
|
|
|
1,546
|
|
|
1,778
|
|
|
1,858
|
|
|
1,881
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,015
|
|
|
1,670
|
|
|
1,865
|
|
|
1,938
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,046
|
|
|
1,830
|
|
|
2,005
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
994
|
|
|
1,726
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,038
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,743
|
|
Overseas General Insurance — Non-Casualty — Short-tail (continued)
|
|
|
||
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
97
|
|
All Accident years
|
|
$
|
2,377
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
1
|
|
All Accident years
|
|
$
|
1
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
45
|
%
|
|
35
|
%
|
|
11
|
%
|
|
3
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1
|
%
|
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
|||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
399
|
|
|
$
|
419
|
|
|
$
|
430
|
|
|
$
|
441
|
|
|
$
|
430
|
|
|
$
|
424
|
|
|
$
|
414
|
|
|
$
|
400
|
|
|
$
|
387
|
|
|
$
|
373
|
|
|
$
|
23
|
|
|
0.802
|
|
2011
|
|
|
407
|
|
|
414
|
|
|
428
|
|
|
432
|
|
|
427
|
|
|
417
|
|
|
413
|
|
|
407
|
|
|
401
|
|
|
27
|
|
|
0.659
|
|
||||||||||||
2012
|
|
|
|
|
385
|
|
|
382
|
|
|
390
|
|
|
393
|
|
|
378
|
|
|
371
|
|
|
370
|
|
|
372
|
|
|
10
|
|
|
0.457
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
320
|
|
|
326
|
|
|
328
|
|
|
329
|
|
|
330
|
|
|
323
|
|
|
316
|
|
|
20
|
|
|
0.341
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
332
|
|
|
333
|
|
|
338
|
|
|
341
|
|
|
343
|
|
|
346
|
|
|
39
|
|
|
0.382
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
284
|
|
|
288
|
|
|
299
|
|
|
300
|
|
|
308
|
|
|
33
|
|
|
0.298
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
222
|
|
|
226
|
|
|
234
|
|
|
233
|
|
|
30
|
|
|
0.341
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
213
|
|
|
214
|
|
|
219
|
|
|
45
|
|
|
0.529
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
244
|
|
|
246
|
|
|
65
|
|
|
0.589
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
238
|
|
|
130
|
|
|
0.219
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,052
|
|
|
|
|
|
Global Reinsurance — Casualty — Long-tail (continued)
|
||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
||||||||||||||||||||||||||||||||||||||||
|
|
Years Ended December 31
|
|
|||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
||||||||||
2010
|
|
$
|
56
|
|
|
$
|
125
|
|
|
$
|
179
|
|
|
$
|
220
|
|
|
$
|
249
|
|
|
$
|
274
|
|
|
$
|
291
|
|
|
$
|
306
|
|
|
$
|
315
|
|
|
$
|
320
|
|
2011
|
|
|
|
70
|
|
|
146
|
|
|
195
|
|
|
236
|
|
|
267
|
|
|
291
|
|
|
311
|
|
|
324
|
|
|
331
|
|
|||||||||||
2012
|
|
|
|
|
|
77
|
|
|
167
|
|
|
221
|
|
|
260
|
|
|
292
|
|
|
307
|
|
|
322
|
|
|
334
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
65
|
|
|
143
|
|
|
186
|
|
|
222
|
|
|
241
|
|
|
259
|
|
|
268
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
91
|
|
|
184
|
|
|
217
|
|
|
248
|
|
|
264
|
|
|
276
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
90
|
|
|
159
|
|
|
191
|
|
|
217
|
|
|
232
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
|
|
|
113
|
|
|
142
|
|
|
159
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46
|
|
|
100
|
|
|
122
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41
|
|
|
96
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,178
|
|
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
303
|
|
All Accident years
|
|
$
|
1,177
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
(50
|
)
|
All Accident years
|
|
$
|
(58
|
)
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
21
|
%
|
|
23
|
%
|
|
12
|
%
|
|
10
|
%
|
|
7
|
%
|
|
5
|
%
|
|
4
|
%
|
|
4
|
%
|
|
2
|
%
|
|
2
|
%
|
Global Reinsurance — Non-Casualty — Short-tail (continued)
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
Years Ended December 31
|
|
|
As of December 31 2019
|
|
||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
|
Net IBNR Reserves
|
|
|
Reported Claims (in thousands)
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
||||||||||||||||
2010
|
$
|
194
|
|
|
$
|
228
|
|
|
$
|
218
|
|
|
$
|
212
|
|
|
$
|
216
|
|
|
$
|
218
|
|
|
$
|
218
|
|
|
$
|
219
|
|
|
$
|
218
|
|
|
$
|
217
|
|
|
$
|
—
|
|
|
0.102
|
|
2011
|
|
|
269
|
|
|
270
|
|
|
268
|
|
|
258
|
|
|
258
|
|
|
260
|
|
|
259
|
|
|
259
|
|
|
259
|
|
|
1
|
|
|
0.132
|
|
||||||||||||
2012
|
|
|
|
|
230
|
|
|
210
|
|
|
200
|
|
|
191
|
|
|
189
|
|
|
187
|
|
|
184
|
|
|
184
|
|
|
1
|
|
|
0.113
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
161
|
|
|
159
|
|
|
147
|
|
|
142
|
|
|
143
|
|
|
140
|
|
|
140
|
|
|
—
|
|
|
0.121
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
164
|
|
|
180
|
|
|
180
|
|
|
183
|
|
|
181
|
|
|
180
|
|
|
3
|
|
|
0.101
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
146
|
|
|
154
|
|
|
161
|
|
|
161
|
|
|
153
|
|
|
3
|
|
|
0.115
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
180
|
|
|
186
|
|
|
188
|
|
|
190
|
|
|
12
|
|
|
0.182
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
396
|
|
|
423
|
|
|
453
|
|
|
10
|
|
|
0.309
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
285
|
|
|
297
|
|
|
(6
|
)
|
|
0.212
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
141
|
|
|
73
|
|
|
0.032
|
|
||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,214
|
|
|
|
|
|
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
Years Ended December 31
|
|
||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
||||||||||
2010
|
|
$
|
55
|
|
|
$
|
156
|
|
|
$
|
182
|
|
|
$
|
193
|
|
|
$
|
199
|
|
|
$
|
209
|
|
|
$
|
207
|
|
|
$
|
210
|
|
|
$
|
210
|
|
|
$
|
214
|
|
2011
|
|
|
|
85
|
|
|
174
|
|
|
204
|
|
|
228
|
|
|
246
|
|
|
251
|
|
|
253
|
|
|
254
|
|
|
256
|
|
|||||||||||
2012
|
|
|
|
|
|
45
|
|
|
130
|
|
|
156
|
|
|
166
|
|
|
172
|
|
|
177
|
|
|
179
|
|
|
180
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
46
|
|
|
102
|
|
|
120
|
|
|
129
|
|
|
132
|
|
|
135
|
|
|
135
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
65
|
|
|
129
|
|
|
152
|
|
|
163
|
|
|
169
|
|
|
171
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
56
|
|
|
103
|
|
|
132
|
|
|
142
|
|
|
146
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56
|
|
|
131
|
|
|
158
|
|
|
169
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
191
|
|
|
322
|
|
|
402
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94
|
|
|
257
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,965
|
|
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
6
|
|
All Accident years
|
|
$
|
255
|
|
Supplementary Information: (Favorable)/ Adverse Prior Period Development
|
||||
(in millions of U.S. dollars)
|
|
December 31, 2019
|
|
|
Accident years prior to 2010
|
|
$
|
(4
|
)
|
All Accident years
|
|
$
|
30
|
|
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2019 (Unaudited)
|
|||||||||||||||||||||||||||||
Age in Years
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
Percentage
|
33
|
%
|
|
36
|
%
|
|
15
|
%
|
|
6
|
%
|
|
3
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
Components of PPD
|
|
|||||||||||||||||||||
Year Ended December 31, 2019 (in millions of U.S. dollars)
(favorable)/unfavorable |
2010 - 2018 accident years (implied PPD per loss triangles)
|
|
|
Accident years prior to 2010
|
|
|
Other (1)
|
|
|
PPD on loss reserves
|
|
|
RIPs, Expense adjustments, and earned premiums
|
|
|
Total
|
|
||||||
North America Commercial P&C Insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-tail
|
$
|
(460
|
)
|
|
$
|
(137
|
)
|
|
$
|
(110
|
)
|
|
$
|
(707
|
)
|
|
$
|
39
|
|
|
$
|
(668
|
)
|
Short-tail
|
38
|
|
|
(6
|
)
|
|
(8
|
)
|
|
24
|
|
|
(5
|
)
|
|
19
|
|
||||||
|
(422
|
)
|
|
(143
|
)
|
|
(118
|
)
|
(2)
|
(683
|
)
|
|
34
|
|
|
(649
|
)
|
||||||
North America Personal P&C Insurance (Short-tail)
|
(85
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(91
|
)
|
|
(4
|
)
|
|
(95
|
)
|
||||||
Overseas General Insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-tail
|
(43
|
)
|
|
(18
|
)
|
|
(7
|
)
|
|
(68
|
)
|
|
—
|
|
|
(68
|
)
|
||||||
Short-tail
|
—
|
|
|
1
|
|
|
(26
|
)
|
|
(25
|
)
|
|
1
|
|
|
(24
|
)
|
||||||
|
(43
|
)
|
|
(17
|
)
|
|
(33
|
)
|
(3)
|
(93
|
)
|
|
1
|
|
|
(92
|
)
|
||||||
Global Reinsurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-tail
|
(8
|
)
|
|
(50
|
)
|
|
(1
|
)
|
|
(59
|
)
|
|
—
|
|
|
(59
|
)
|
||||||
Short-tail
|
34
|
|
|
(4
|
)
|
|
1
|
|
|
31
|
|
|
(1
|
)
|
|
30
|
|
||||||
|
26
|
|
|
(54
|
)
|
|
—
|
|
|
(28
|
)
|
|
(1
|
)
|
|
(29
|
)
|
||||||
Subtotal
|
$
|
(524
|
)
|
|
$
|
(215
|
)
|
|
$
|
(156
|
)
|
|
$
|
(895
|
)
|
|
$
|
30
|
|
|
$
|
(865
|
)
|
North America Agricultural Insurance (Short-tail)
|
|
|
|
|
|
|
$
|
(103
|
)
|
|
$
|
23
|
|
|
$
|
(80
|
)
|
||||||
Corporate (Long-tail)
|
|
|
|
|
|
|
153
|
|
|
—
|
|
|
153
|
|
|||||||||
Consolidated PPD
|
|
|
|
|
|
|
|
|
|
$
|
(845
|
)
|
|
$
|
53
|
|
|
$
|
(792
|
)
|
(1)
|
Other includes the impact of foreign exchange.
|
(2)
|
Includes favorable development of $82 million related to our Alternative Risk Solutions business (U.S. and Bermuda) and an adjustment to exclude $22 million in unfavorable development in the workers' compensation line, associated with an increase in exposure for which additional premiums were collected; the remaining difference relates to a number of other items, none of which are individually material.
|
(3)
|
Includes favorable development of $37 million related to International A&H business; the remaining difference relates to a number of other items, none of which are individually material.
|
Years Ended December 31
(in millions of U.S. dollars, except for percentages)
|
Long-tail
|
|
|
Short-tail
|
|
|
Total
|
|
|
% of beginning net unpaid reserves (1)
|
|
|||
2019
|
|
|
|
|
|
|
|
|||||||
North America Commercial P&C Insurance
|
$
|
(668
|
)
|
|
$
|
19
|
|
|
$
|
(649
|
)
|
|
1.3
|
%
|
North America Personal P&C Insurance
|
—
|
|
|
(95
|
)
|
|
(95
|
)
|
|
0.2
|
%
|
|||
North America Agricultural Insurance
|
—
|
|
|
(80
|
)
|
|
(80
|
)
|
|
0.2
|
%
|
|||
Overseas General Insurance
|
(68
|
)
|
|
(24
|
)
|
|
(92
|
)
|
|
0.2
|
%
|
|||
Global Reinsurance
|
(59
|
)
|
|
30
|
|
|
(29
|
)
|
|
0.1
|
%
|
|||
Corporate
|
153
|
|
|
—
|
|
|
153
|
|
|
0.3
|
%
|
|||
Total
|
$
|
(642
|
)
|
|
$
|
(150
|
)
|
|
$
|
(792
|
)
|
|
1.6
|
%
|
2018
|
|
|
|
|
|
|
|
|||||||
North America Commercial P&C Insurance
|
$
|
(395
|
)
|
|
$
|
(215
|
)
|
|
$
|
(610
|
)
|
|
1.2
|
%
|
North America Personal P&C Insurance
|
—
|
|
|
41
|
|
|
41
|
|
|
0.1
|
%
|
|||
North America Agricultural Insurance
|
—
|
|
|
(110
|
)
|
|
(110
|
)
|
|
0.2
|
%
|
|||
Overseas General Insurance
|
(67
|
)
|
|
(145
|
)
|
|
(212
|
)
|
|
0.4
|
%
|
|||
Global Reinsurance
|
(69
|
)
|
|
19
|
|
|
(50
|
)
|
|
0.1
|
%
|
|||
Corporate
|
45
|
|
|
—
|
|
|
45
|
|
|
0.1
|
%
|
|||
Total
|
$
|
(486
|
)
|
|
$
|
(410
|
)
|
|
$
|
(896
|
)
|
|
1.8
|
%
|
2017
|
|
|
|
|
|
|
|
|||||||
North America Commercial P&C Insurance
|
$
|
(562
|
)
|
|
$
|
(184
|
)
|
|
$
|
(746
|
)
|
|
1.6
|
%
|
North America Personal P&C Insurance
|
—
|
|
|
69
|
|
|
69
|
|
|
0.1
|
%
|
|||
North America Agricultural Insurance
|
—
|
|
|
(119
|
)
|
|
(119
|
)
|
|
0.2
|
%
|
|||
Overseas General Insurance
|
(71
|
)
|
|
(181
|
)
|
|
(252
|
)
|
|
0.5
|
%
|
|||
Global Reinsurance
|
(68
|
)
|
|
9
|
|
|
(59
|
)
|
|
0.1
|
%
|
|||
Corporate
|
278
|
|
|
—
|
|
|
278
|
|
|
0.6
|
%
|
|||
Total
|
$
|
(423
|
)
|
|
$
|
(406
|
)
|
|
$
|
(829
|
)
|
|
1.7
|
%
|
(1)
|
Calculated based on the beginning of period consolidated net unpaid losses and loss expenses.
|
•
|
Net favorable development of $668 million in long-tail business, primarily from:
|
•
|
Net favorable development of $303 million in workers’ compensation lines. This included favorable development of $61 million related to our annual assessment of multi-claimant events including industrial accidents, in the 2018 accident year. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. This development in accident year 2018 was partially offset by some higher than expected activity from other claims and from involuntary pools. The remaining overall
|
•
|
Net favorable development of $217 million in management liability portfolios, favorably impacting accident years 2015 and prior where paid and reported loss activity was lower than expected, partially offset by adverse development in the 2016 through 2018 accident years, mostly as a result of higher severity claim costs compared to prior expectations in certain lines or coverages, particularly in our Directors and Officers (D&O) portfolios;
|
•
|
Net favorable development of $60 million in professional liability (errors & omissions and cyber), mainly in the 2015 and prior accident years where case activity was less than expected, partially offset by adverse development in the 2016 accident year, which was driven by several large adverse claim developments;
|
•
|
Net favorable development of $41 million in commercial excess and umbrella portfolios, mainly in accident years 2013 and prior, driven by lower paid and reported loss activity relative to prior expectations as well as an increase in weighting towards experience-based methods, partly offset by modestly adverse development in more recent accident years, mainly in 2017 and 2018, due to higher than expected large loss activity;
|
•
|
Net favorable development of $39 million in foreign casualty business, impacting accident years 2015 and prior, driven by reported loss activity that was generally lower than expected;
|
•
|
Net favorable development of $36 million on large multi-line prospective deals in the 2015 and prior accident years, due to lower than expected reported loss activity. These structured deals typically cover large clients for multiple product lines and with varying loss limitations; this development is net of premium returns of $34 million tied to the loss performance of the particular deals;
|
•
|
Net favorable development of $24 million in medical and life sciences businesses, mainly impacting accident years 2015 and prior, primarily due to favorable reported experience and an increase in weighting towards experience-based methods;
|
•
|
Favorable development of $23 million in political risk and trade credit portfolios, mainly impacting the 2015 accident year, primarily due to favorable reported experience and an increase in weighting towards experience-based methods;
|
•
|
Net adverse development of $26 million mainly in products and general liability portfolios, including adverse movements within construction, partly offset by commercial-multi peril (CMP) liability, with older accident years generally experiencing favorable run-off, while more recent accident years developing adversely; and
|
•
|
Net adverse development of $38 million in automobile liability, driven by adverse paid and reported loss experience mainly in accident years 2014 through 2018.
|
•
|
Net adverse development of $19 million in short-tail business, primarily from:
|
•
|
Net adverse development, excluding catastrophes, of $108 million in property and marine portfolios with adverse development of $152 million across our retail, wholesale, and program distribution channels in accident year 2018, primarily due to a higher than expected severity of non-catastrophe claims, partly offset by favorable development of $44 million in 2017 and prior accident years on non-catastrophe claims;
|
•
|
Net favorable catastrophe development in property and marine portfolios of $36 million. There was $41 million of favorable development on the 2017 and 2018 natural catastrophes, mostly in 2017, partly offset by some adverse development on older catastrophe events; and
|
•
|
Favorable development of $49 million in surety businesses, mainly in accident year 2017, driven by lower than expected reported loss activity.
|
•
|
Net favorable development of $395 million in long-tail business, primarily from:
|
•
|
Net favorable development of $199 million in our management liability portfolios, favorably impacting accident years 2013 and prior where paid and reported loss activity was lower than expected, partially offset by adverse development in the 2014 through 2017 accident years, mostly as a result of higher severity claim costs compared to prior expectations in certain lines or coverages, particularly in our Directors and Officers (D&O) portfolio;
|
•
|
Net favorable development of $194 million in workers’ compensation lines with favorable development of $56 million in the 2017 accident year mainly related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. The net remaining favorable development of $138 million was principally due to lower than expected loss experience, mainly impacting accident years 2014 and prior;
|
•
|
Net favorable development of $100 million in our commercial excess and umbrella portfolios, primarily in accident years 2012 and prior. This was driven by lower than expected reported loss activity, and an increase in weighting towards experience-based methods, partly offset by higher than expected claim activity in the 2014, 2015 and 2017 accident years which led to reserve strengthening in those years;
|
•
|
Favorable development of $33 million in a runoff professional liability portfolio, impacting accident years 2002 and prior, owing mainly to the favorable disposition of a specific claim;
|
•
|
Net favorable development of $28 million in our foreign casualty lines, primarily impacting accident years 2014 and prior, driven by reported loss activity that was generally lower than expected;
|
•
|
Favorable development of $23 million in our political risk and trade credit portfolios, mainly impacting the 2014 accident year, primarily due to favorable reported experience and an increased in weighting towards experience-based methods;
|
•
|
Net adverse development of $91 million in our medical portfolios, mainly impacting accident years 2015, 2016 and 2017. The increase was driven by a combination of several large claims and generally higher than expected paid and reported case incurred activity; and
|
•
|
Net adverse development of $109 million, mainly in our automobile liability, commercial-multi peril (CMP) liability, products and general liability lines, driven by adverse paid and reported loss activity relative to prior expectations in accident years 2015 through 2017, partly offset by favorable emergence in older accident years.
|
•
|
Net favorable development of $215 million in short-tail business, primarily from:
|
•
|
Net favorable development of $155 million in our commercial property and marine businesses due to favorable claim development, including $129 million net favorable development on the 2017 natural catastrophes; and
|
•
|
Net favorable development of $60 million in other short-tail business, including $19 million in surety and also including several smaller net favorable movements from lower than expected case activity in other classes, such as accident and commercial automobile physical damage, none of which were significant individually or in the aggregate.
|
•
|
Net favorable claim development of $132 million on the 2017 and 2018 natural catastrophes for all lines;
|
•
|
Net favorable development of $26 million in our personal excess lines primarily impacting the 2016 accident year, due to lower than expected loss emergence and an increase in weighting towards experience-based methods, partly offset by adverse emergence in accident year 2015;
|
•
|
Net favorable development of $16 million, which was the net result of several underlying favorable and adverse movements predominantly in the automobile and recreational marine lines; and
|
•
|
Net adverse development of $82 million in our homeowners lines, including valuables, arising from non-catastrophe loss emergence, mainly in the 2018 accident year.
|
•
|
Net adverse development of $63 million in our homeowners and valuables lines, primarily impacting the 2017 accident year. Overall, non-catastrophe losses were $136 million higher than expected, partially offset by favorable claim development of $73 million on the 2017 natural catastrophes. The higher than expected non-catastrophe homeowners losses were primarily severity driven and included water-related claims, large fire losses, and non-catastrophe weather claims; and
|
•
|
Net favorable development of $24 million in our personal excess lines primarily impacting the 2015 accident year, due to lower than expected loss emergence and an increase in weighting towards experience-based methods.
|
•
|
Net favorable development of $68 million in long-tail business, primarily from:
|
•
|
Net favorable development of $101 million in casualty lines, including favorable development of $123 million in accident years 2015 and prior, due to lower than expected loss emergence mainly across primary lines in Continental Europe, U.K., and Asia Pacific, partially offset by adverse development of $22 million in accident years 2016 through 2018, primarily due to adverse attritional and large loss experience in Continental Europe; and
|
•
|
Net adverse development of $52 million in financial lines, including adverse development of $127 million in accident years 2016 through 2018, primarily due to adverse large loss experience in D&O in the U.K. and Asia Pacific, offset by favorable development of $75 million in accident years 2015 and prior, due to lower than expected loss emergence across most regions in D&O and Professional Indemnity.
|
•
|
Net favorable of $24 million in short-tail business, primarily from:
|
•
|
Net favorable development of $45 million in A&H, driven by favorable development across Continental Europe, Latin America and Asia Pacific primarily in accident years 2017 and 2018;
|
•
|
Net favorable development of $36 million in marine, driven by favorable loss emergence and claim-specific loss settlements across most regions and several accident years, including favorable liability emergence and litigation settlements in accident years 2016 and prior;
|
•
|
Net adverse development of $23 million in construction, driven by adverse large loss experience in accident year 2018 for U.K. and Asia Pacific; and
|
•
|
Net adverse development of $27 million in Surety, driven by adverse large loss experience across Continental Europe and Latin America in accident years 2017 and 2018.
|
•
|
Net favorable development of $67 million in long-tail business, primarily from:
|
•
|
Net favorable development of $70 million in casualty lines, with net favorable development of $107 million in accident years 2014 and prior, resulting from lower than expected loss emergence across primary and excess lines, partially offset by adverse development of $38 million in accident years 2015 through 2017, primarily due to large loss experience in U.K. excess lines and wholesale business;
|
•
|
Favorable development of $32 million, primarily including $12 million in political risks, $10 million in aviation and $10 million in environmental; and
|
•
|
Net adverse development of $38 million in financial lines, with net favorable development of $93 million in accident years 2014 and prior, resulting from lower than expected loss emergence including favorable development due to specific large claim reductions in Asia financial institutions including wholesale bankers D&O and bankers professional indemnity, and adverse development of $131 million in accident years 2015 through 2017, primarily due to adverse large loss experience in specific D&O and financial institutions portfolios in Australia, Continental Europe and the U.K.
|
•
|
Net favorable development of $145 million in short-tail business, primarily from:
|
•
|
Net favorable development of $99 million in property and marine (excluding technical lines), primarily in accident years 2013 through 2016, driven mainly by favorable loss emergence across all regions, including favorable claim-specific loss settlements and salvage/subrogation recoveries;
|
•
|
Net favorable development of $33 million in A&H, primarily in accident years 2015 through 2017, driven by favorable development across Asia Pacific direct marketing and Continental Europe corporate lines.
|
•
|
Net favorable development of $59 million in long-tail business, primarily in our auto, casualty, professional liability, medical malpractice, and workers’ compensation lines primarily from treaty years 2013 and prior principally due to lower than expected loss emergence; and
|
•
|
Net adverse development of $30 million in short-tail business, which included $44 million of adverse development on 2017 and 2018 natural catastrophe events.
|
•
|
Net favorable development of $69 million in long-tail business, primarily in our casualty, professional liability, medical malpractice, and workers' compensation lines primarily from treaty years 2013 and prior principally resulting from lower than expected loss emergence; and
|
•
|
Net adverse development of $19 million in short-tail business, which included $18 million of net adverse claim development on the 2017 natural catastrophes.
|
•
|
Adverse development of $116 million driven principally by adverse development in asbestos and environmental liabilities due to the emergence of a limited number of excess accounts and somewhat greater than expected defense and indemnity costs (generally impacting larger modeled accounts); and
|
•
|
Adverse development of $37 million on unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in 2019.
|
•
|
Adverse development of $216 million in run-off liabilities, driven primarily by increased exposure on a limited number of direct asbestos claims and environmental sites, somewhat greater than expected defense cost spending and increases in reported claims and settlements with respect to molestation exposures;
|
•
|
Adverse development of $35 million on unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in 2018; and
|
•
|
Favorable development of $205 million as a result of the settlements of certain previously disputed reinsurance balances.
|
|
|
Asbestos
|
|
|
Environmental
|
|
|
Total
|
|
|
|||||||||||||||
(in millions of U.S. dollars)
|
|
Gross
|
|
|
Net
|
|
|
Gross
|
|
|
Net
|
|
|
Gross
|
|
|
Net
|
|
|
||||||
Balance at December 31, 2016
|
|
$
|
1,726
|
|
|
$
|
1,119
|
|
|
$
|
577
|
|
|
$
|
490
|
|
|
$
|
2,303
|
|
|
$
|
1,609
|
|
|
Incurred activity
|
|
228
|
|
|
104
|
|
|
199
|
|
|
113
|
|
|
427
|
|
|
217
|
|
(1)
|
||||||
Paid activity
|
|
(333
|
)
|
|
(172
|
)
|
|
(169
|
)
|
|
(127
|
)
|
|
(502
|
)
|
|
(299
|
)
|
|
||||||
Balance at December 31, 2017
|
|
1,621
|
|
|
1,051
|
|
|
607
|
|
|
476
|
|
|
2,228
|
|
|
1,527
|
|
|
||||||
Incurred activity
|
|
136
|
|
|
75
|
|
|
101
|
|
|
(97
|
)
|
|
237
|
|
|
(22
|
)
|
(1)
|
||||||
Paid activity
|
|
(265
|
)
|
|
(162
|
)
|
|
(83
|
)
|
|
104
|
|
|
(348
|
)
|
|
(58
|
)
|
|
||||||
Balance at December 31, 2018
|
|
1,492
|
|
|
964
|
|
|
625
|
|
|
483
|
|
|
2,117
|
|
|
1,447
|
|
|
||||||
Incurred activity
|
|
129
|
|
|
70
|
|
|
46
|
|
|
28
|
|
|
175
|
|
|
98
|
|
(1)
|
||||||
Paid activity
|
|
(162
|
)
|
|
(118
|
)
|
|
(142
|
)
|
|
(101
|
)
|
|
(304
|
)
|
|
(219
|
)
|
|
||||||
Balance at December 31, 2019
|
|
$
|
1,459
|
|
|
$
|
916
|
|
|
$
|
529
|
|
|
$
|
410
|
|
|
$
|
1,988
|
|
|
$
|
1,326
|
|
|
(1)
|
Excludes unallocated loss expenses and the net activity reflects third-party reinsurance other than the aggregate excess of loss reinsurance provided by National Indemnity Company (NICO) to Westchester Specialty (see Westchester Specialty section below).
|
|
December 31
|
|
|||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
||
Brandywine operations
|
$
|
754
|
|
|
$
|
807
|
|
Westchester Specialty
|
117
|
|
|
120
|
|
||
Chubb Corp
|
381
|
|
|
442
|
|
||
Other, mainly Overseas General Insurance
|
74
|
|
|
78
|
|
||
Total
|
$
|
1,326
|
|
|
$
|
1,447
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Pre-tax income:
|
|
|
|
|
|
||||||
Switzerland
|
$
|
440
|
|
|
$
|
950
|
|
|
$
|
527
|
|
Outside Switzerland
|
4,809
|
|
|
3,707
|
|
|
3,195
|
|
|||
Total pre-tax income
|
$
|
5,249
|
|
|
$
|
4,657
|
|
|
$
|
3,722
|
|
Provision for income taxes
|
|
|
|
|
|
||||||
Current tax expense:
|
|
|
|
|
|
||||||
Switzerland
|
$
|
29
|
|
|
$
|
89
|
|
|
$
|
46
|
|
Outside Switzerland
|
879
|
|
|
563
|
|
|
313
|
|
|||
Total current tax expense
|
908
|
|
|
652
|
|
|
359
|
|
|||
Deferred tax expense (benefit):
|
|
|
|
|
|
||||||
Switzerland
|
11
|
|
|
3
|
|
|
2
|
|
|||
Outside Switzerland
|
(124
|
)
|
|
40
|
|
|
(500
|
)
|
|||
Total deferred tax expense (benefit)
|
(113
|
)
|
|
43
|
|
|
(498
|
)
|
|||
Provision for income taxes
|
$
|
795
|
|
|
$
|
695
|
|
|
$
|
(139
|
)
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Expected tax provision at Swiss statutory tax rate
|
$
|
411
|
|
|
$
|
365
|
|
|
$
|
291
|
|
Permanent differences:
|
|
|
|
|
|
||||||
Taxes on earnings subject to rate other than Swiss statutory rate
|
376
|
|
|
372
|
|
|
263
|
|
|||
Tax-exempt interest and dividends received deduction, net of proration
|
(49
|
)
|
|
(75
|
)
|
|
(199
|
)
|
|||
Net withholding taxes
|
40
|
|
|
33
|
|
|
30
|
|
|||
Excess tax benefit on share-based compensation
|
(12
|
)
|
|
(19
|
)
|
|
(48
|
)
|
|||
Impact of 2017 Tax Act
|
—
|
|
|
(25
|
)
|
|
(450
|
)
|
|||
Corporate owned life insurance
|
(13
|
)
|
|
2
|
|
|
(37
|
)
|
|||
Other
|
42
|
|
|
42
|
|
|
11
|
|
|||
Provision for income taxes
|
$
|
795
|
|
|
$
|
695
|
|
|
$
|
(139
|
)
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
||
Deferred tax assets:
|
|
|
|
||||
Loss reserve discount
|
$
|
826
|
|
|
$
|
584
|
|
Unearned premiums reserve
|
519
|
|
|
471
|
|
||
Foreign tax credits
|
247
|
|
|
262
|
|
||
Provision for uncollectible balances
|
37
|
|
|
37
|
|
||
Loss carry-forwards
|
143
|
|
|
137
|
|
||
Debt related amounts
|
74
|
|
|
71
|
|
||
Compensation related amounts
|
261
|
|
|
263
|
|
||
Cumulative translation adjustments
|
33
|
|
|
43
|
|
||
Unrealized depreciation on investments
|
—
|
|
|
102
|
|
||
Lease liability
|
140
|
|
|
—
|
|
||
Other, net
|
—
|
|
|
95
|
|
||
Total deferred tax assets
|
2,280
|
|
|
2,065
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Deferred policy acquisition costs
|
588
|
|
|
621
|
|
||
Other intangible assets, including VOBA
|
1,468
|
|
|
1,440
|
|
||
Un-remitted foreign earnings
|
73
|
|
|
47
|
|
||
Investments
|
40
|
|
|
59
|
|
||
Unrealized appreciation on investments
|
470
|
|
|
—
|
|
||
Depreciation
|
157
|
|
|
123
|
|
||
Lease right-of-use asset
|
129
|
|
|
—
|
|
||
Other, net
|
45
|
|
|
—
|
|
||
Total deferred tax liabilities
|
2,970
|
|
|
2,290
|
|
||
Valuation allowance
|
114
|
|
|
79
|
|
||
Net deferred tax liabilities
|
$
|
(804
|
)
|
|
$
|
(304
|
)
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
||
Balance, beginning of year
|
$
|
14
|
|
|
$
|
13
|
|
Additions based on tax positions related to the current year
|
12
|
|
|
1
|
|
||
Additions based on tax positions related to prior years
|
23
|
|
|
—
|
|
||
Reductions for tax positions of prior years
|
—
|
|
|
—
|
|
||
Reductions for the lapse of the applicable statutes of limitations
|
(2
|
)
|
|
—
|
|
||
Balance, end of year
|
$
|
47
|
|
|
$
|
14
|
|
|
December 31
|
|
|
December 31
|
|
|
|
||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
Early Redemption Option
|
||
Repurchase agreements (weighted average interest rate of 2.2% in 2019 and 2.5% in 2018)
|
$
|
1,416
|
|
|
$
|
1,418
|
|
|
None
|
Short-term debt
|
|
|
|
|
|
||||
Chubb INA senior notes:
|
|
|
|
|
|
||||
$500 million 5.9% due June 2019
|
$
|
—
|
|
|
$
|
500
|
|
|
Make-whole premium plus 0.40%
|
$1,300 million 2.3% due November 2020
|
1,298
|
|
|
—
|
|
|
Make-whole premium plus 0.15%
|
||
Other short-term debt (2.75% to 7.1% due December 2019 to September 2020)
|
1
|
|
|
9
|
|
|
None
|
||
Total short-term debt
|
$
|
1,299
|
|
|
$
|
509
|
|
|
|
Long-term debt
|
|
|
|
|
|
||||
Chubb INA senior notes:
|
|
|
|
|
|
||||
$1,300 million 2.3% due November 2020
|
$
|
—
|
|
|
$
|
1,297
|
|
|
Make-whole premium plus 0.15%
|
$1,000 million 2.875% due November 2022
|
997
|
|
|
996
|
|
|
Make-whole premium plus 0.20%
|
||
$475 million 2.7% due March 2023
|
473
|
|
|
473
|
|
|
Make-whole premium plus 0.10%
|
||
$700 million 3.35% due May 2024
|
697
|
|
|
696
|
|
|
Make-whole premium plus 0.15%
|
||
€700 million 0.3% due December 2024
|
776
|
|
|
—
|
|
|
Make-whole premium plus 0.15%
|
||
$800 million 3.15% due March 2025
|
796
|
|
|
796
|
|
|
Make-whole premium plus 0.15%
|
||
$1,500 million 3.35% due May 2026
|
1,492
|
|
|
1,491
|
|
|
Make-whole premium plus 0.20%
|
||
€575 million 0.875% due June 2027
|
635
|
|
|
—
|
|
|
Make-whole premium plus 0.20%
|
||
€900 million 1.55% due March 2028
|
993
|
|
|
1,008
|
|
|
Make-whole premium plus 0.15%
|
||
$100 million 8.875% due August 2029
|
100
|
|
|
100
|
|
|
None
|
||
€700 million 0.875% due December 2029
|
775
|
|
|
—
|
|
|
Make-whole premium plus 0.20%
|
||
€575 million 1.4% due June 2031
|
633
|
|
|
—
|
|
|
Make-whole premium plus 0.25%
|
||
$200 million 6.8% due November 2031
|
246
|
|
|
250
|
|
|
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
|
953
|
|
|
962
|
|
|
Make-whole premium plus 0.20%
|
||
€900 million 2.5% due March 2038
|
992
|
|
|
1,008
|
|
|
Make-whole premium plus 0.25%
|
||
$600 million 6.5% due May 2038
|
751
|
|
|
759
|
|
|
Make-whole premium plus 0.30%
|
||
$475 million 4.15% due March 2043
|
470
|
|
|
470
|
|
|
Make-whole premium plus 0.15%
|
||
$1,500 million 4.35% due November 2045
|
1,483
|
|
|
1,483
|
|
|
Make-whole premium plus 0.25%
|
||
Other long-term debt (2.75% due September 2020)
|
—
|
|
|
1
|
|
|
None
|
||
Total long-term debt
|
$
|
13,559
|
|
|
$
|
12,087
|
|
|
|
Trust preferred securities
|
|
|
|
|
|
||||
Chubb INA capital securities due April 2030
|
$
|
308
|
|
|
$
|
308
|
|
|
Redemption prices(1)
|
(1)
|
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, 2019
|
|
|
|
December 31, 2018
|
|
||||||||||||||||||
|
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)
|
|
$
|
11
|
|
|
$
|
(78
|
)
|
|
$
|
2,579
|
|
|
|
$
|
15
|
|
|
$
|
(19
|
)
|
|
$
|
2,185
|
|
Cross-currency swaps
|
OA / (AP)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
45
|
|
||||||
Interest rate swaps
|
OA / (AP)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(115
|
)
|
|
5,250
|
|
||||||
Options/Futures contracts on notes, bonds, and equities
|
OA / (AP)
|
|
13
|
|
|
(15
|
)
|
|
1,615
|
|
|
|
13
|
|
|
(19
|
)
|
|
1,046
|
|
||||||
Convertible securities (1)
|
FM AFS / ES
|
|
4
|
|
|
—
|
|
|
5
|
|
|
|
9
|
|
|
—
|
|
|
11
|
|
||||||
TBAs
|
FM AFS
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||
|
|
|
$
|
28
|
|
|
$
|
(93
|
)
|
|
$
|
4,199
|
|
|
|
$
|
43
|
|
|
$
|
(153
|
)
|
|
$
|
8,543
|
|
Other derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Futures contracts on equities (2)
|
OA / (AP)
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
|
$
|
613
|
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
507
|
|
Other
|
OA / (AP)
|
|
2
|
|
|
—
|
|
|
63
|
|
|
|
2
|
|
|
—
|
|
|
74
|
|
||||||
|
|
|
$
|
2
|
|
|
$
|
(13
|
)
|
|
$
|
676
|
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
581
|
|
GLB (3)
|
(AP) / (FPB)
|
|
$
|
—
|
|
|
$
|
(897
|
)
|
|
$
|
1,510
|
|
|
|
$
|
—
|
|
|
$
|
(861
|
)
|
|
$
|
1,750
|
|
(1)
|
Includes fair value of embedded derivatives.
|
(2)
|
Related to GMDB and GLB book of business.
|
(3)
|
Includes both future policy benefits reserves of $441 million and $409 million and fair value derivative adjustment of $456 million and $452 million at December 31, 2019 and 2018, respectively. Refer to Note 5 c) for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.
|
|
Remaining contractual maturity
|
|
|||||
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||
(in millions of U.S. dollars)
|
Overnight and Continuous
|
|
|||||
Collateral held under securities lending agreements:
|
|
|
|
||||
Cash
|
$
|
346
|
|
|
$
|
756
|
|
U.S. Treasury and agency
|
6
|
|
|
64
|
|
||
Foreign
|
595
|
|
|
795
|
|
||
Corporate securities
|
5
|
|
|
15
|
|
||
Mortgage-backed securities
|
18
|
|
|
45
|
|
||
Equity securities
|
24
|
|
|
251
|
|
||
|
$
|
994
|
|
|
$
|
1,926
|
|
Gross amount of recognized liability for securities lending payable
|
$
|
994
|
|
|
$
|
1,926
|
|
|
|
|
Remaining contractual maturity
|
|
|||||||||||||||||||||||
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||||||||||||
|
Up to 30 Days
|
|
|
30-90 Days
|
|
|
Greater than 90 Days
|
|
|
|
|
30-90 Days
|
|
|
Greater than 90 Days
|
|
|
Total
|
|
||||||||
(in millions of U.S. dollars)
|
|
|
Total
|
|
|
|
|
||||||||||||||||||||
Collateral pledged under repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Treasury and agency
|
107
|
|
|
—
|
|
|
—
|
|
|
107
|
|
|
—
|
|
|
259
|
|
|
259
|
|
|||||||
Mortgage-backed securities
|
399
|
|
|
476
|
|
|
480
|
|
|
1,355
|
|
|
496
|
|
|
713
|
|
|
1,209
|
|
|||||||
|
$
|
508
|
|
|
$
|
476
|
|
|
$
|
480
|
|
|
$
|
1,464
|
|
|
$
|
496
|
|
|
$
|
972
|
|
|
$
|
1,468
|
|
Gross amount of recognized liabilities for repurchase agreements
|
|
|
|
|
|
|
$
|
1,416
|
|
|
|
|
|
|
$
|
1,418
|
|
||||||||||
Difference (1)
|
|
|
|
|
|
|
$
|
48
|
|
|
|
|
|
|
$
|
50
|
|
(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)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Investment and embedded derivative instruments:
|
|
|
|
|
|
||||||
Foreign currency forward contracts
|
$
|
(79
|
)
|
|
$
|
3
|
|
|
$
|
9
|
|
Interest rate swaps
|
(270
|
)
|
|
(115
|
)
|
|
—
|
|
|||
All other futures contracts, options, and equities
|
(88
|
)
|
|
39
|
|
|
(21
|
)
|
|||
Convertible securities (1)
|
2
|
|
|
(2
|
)
|
|
1
|
|
|||
Total investment and embedded derivative instruments
|
$
|
(435
|
)
|
|
$
|
(75
|
)
|
|
$
|
(11
|
)
|
GLB and other derivative instruments:
|
|
|
|
|
|
||||||
GLB (2)
|
$
|
(4
|
)
|
|
$
|
(248
|
)
|
|
$
|
364
|
|
Futures contracts on equities (3)
|
(138
|
)
|
|
(4
|
)
|
|
(261
|
)
|
|||
Other
|
(8
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|||
Total GLB and other derivative instruments
|
$
|
(150
|
)
|
|
$
|
(255
|
)
|
|
$
|
98
|
|
|
$
|
(585
|
)
|
|
$
|
(330
|
)
|
|
$
|
87
|
|
(1)
|
Includes embedded derivatives.
|
(2)
|
Excludes foreign exchange gains (losses) related to GLB.
|
(3)
|
Related to GMDB and GLB book of business.
|
For the years ending December 31
|
|||
(in millions of U.S. dollars)
|
|||
Undiscounted cash flows:
|
|
||
2020
|
$
|
158
|
|
2021
|
136
|
|
|
2022
|
107
|
|
|
2023
|
88
|
|
|
2024
|
66
|
|
|
Thereafter
|
105
|
|
|
Total undiscounted lease payments
|
$
|
660
|
|
Less: Present value adjustment
|
57
|
|
|
Net lease liabilities reported as of December 31, 2019
|
$
|
603
|
|
|
Year Ended December 31
|
|
||||||||||||||||||
|
|
|
2019
|
|
|
|
|
2018
|
|
|
|
|
2017
|
|
||||||
|
CHF
|
|
|
USD
|
|
|
CHF
|
|
|
USD
|
|
|
CHF
|
|
|
USD
|
|
|||
Total dividend distributions per common share
|
2.94
|
|
|
$
|
2.98
|
|
|
2.84
|
|
|
$
|
2.90
|
|
|
2.76
|
|
|
$
|
2.82
|
|
|
Year Ended December 31
|
|
||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
Shares issued, beginning and end of year
|
479,783,864
|
|
|
479,783,864
|
|
|
479,783,864
|
|
Common Shares in treasury, beginning of year (at cost)
|
(20,580,486
|
)
|
|
(15,950,685
|
)
|
|
(13,815,148
|
)
|
Net shares issued under employee share-based compensation plans
|
3,210,427
|
|
|
3,089,234
|
|
|
3,731,075
|
|
Shares repurchased
|
(10,442,238
|
)
|
|
(7,719,035
|
)
|
|
(5,866,612
|
)
|
Common Shares in treasury, end of year (at cost)
|
(27,812,297
|
)
|
|
(20,580,486
|
)
|
|
(15,950,685
|
)
|
Shares issued and outstanding, end of year
|
451,971,567
|
|
|
459,203,378
|
|
|
463,833,179
|
|
•
|
$1.0 billion of Chubb Common Shares from November 17, 2016 through December 31, 2017
|
•
|
$1.0 billion of Chubb Common Shares from January 1, 2018 through December 31, 2018
|
•
|
$1.5 billion of Chubb Common Shares from December 1, 2018 through December 31, 2019
|
•
|
$1.5 billion of Chubb Common Shares from November 21, 2019 through December 31, 2020
|
|
Year Ended December 31
|
|
|
January 1, 2020 through
|
|
||||||||||
(in millions of U.S. dollars, except share data)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
February 26, 2020
|
|
||||
Number of shares repurchased
|
10,442,238
|
|
|
7,719,035
|
|
|
5,866,612
|
|
|
947,400
|
|
||||
Cost of shares repurchased
|
$
|
1,531
|
|
|
$
|
1,021
|
|
|
$
|
830
|
|
|
$
|
151
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Stock options and shares issued under ESPP:
|
|
|
|
|
|
||||||
Pre-tax
|
$
|
42
|
|
|
$
|
50
|
|
|
$
|
41
|
|
After-tax (1)
|
$
|
39
|
|
|
$
|
40
|
|
|
$
|
26
|
|
Restricted stock:
|
|
|
|
|
|
||||||
Pre-tax
|
$
|
224
|
|
|
$
|
235
|
|
|
$
|
259
|
|
After-tax
|
$
|
180
|
|
|
$
|
178
|
|
|
$
|
151
|
|
(1)
|
The windfall tax benefit recorded to Income tax expense in the Consolidated statement of operations was $12 million, $19 million, and $48 million for the years ended December 31, 2019, 2018, and 2017, respectively.
|
|
Year Ended December 31
|
|
||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
Dividend yield
|
2.2
|
%
|
|
2.0
|
%
|
|
2.0
|
%
|
Expected volatility
|
16.0
|
%
|
|
23.2
|
%
|
|
19.7
|
%
|
Risk-free interest rate
|
2.6
|
%
|
|
2.7
|
%
|
|
2.0
|
%
|
Expected life
|
5.7 years
|
|
|
5.7 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, 2016
|
10,180,720
|
|
|
$
|
87.29
|
|
|
|
|
|
||||
Granted
|
2,079,522
|
|
|
$
|
139.00
|
|
|
$
|
22.97
|
|
|
|
||
Exercised
|
(1,632,629
|
)
|
|
$
|
73.53
|
|
|
|
|
$
|
111
|
|
||
Forfeited
|
(194,297
|
)
|
|
$
|
119.44
|
|
|
|
|
|
||||
Options outstanding, December 31, 2017
|
10,433,316
|
|
|
$
|
99.20
|
|
|
|
|
|
||||
Granted
|
1,842,690
|
|
|
$
|
143.07
|
|
|
$
|
29.71
|
|
|
|
||
Exercised
|
(1,065,384
|
)
|
|
$
|
73.57
|
|
|
|
|
$
|
71
|
|
||
Forfeited
|
(202,900
|
)
|
|
$
|
133.92
|
|
|
|
|
|
||||
Options outstanding, December 31, 2018
|
11,007,722
|
|
|
$
|
108.25
|
|
|
|
|
|
||||
Granted
|
2,073,940
|
|
|
$
|
133.90
|
|
|
$
|
18.76
|
|
|
|
||
Exercised
|
(1,944,604
|
)
|
|
$
|
84.13
|
|
|
|
|
$
|
122
|
|
||
Forfeited
|
(251,801
|
)
|
|
$
|
136.87
|
|
|
|
|
|
||||
Options outstanding, December 31, 2019
|
10,885,257
|
|
|
$
|
116.79
|
|
|
|
|
$
|
423
|
|
||
Options exercisable, December 31, 2019
|
7,213,685
|
|
|
$
|
106.26
|
|
|
|
|
$
|
356
|
|
|
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, 2016
|
5,805,126
|
|
|
$
|
109.39
|
|
|
931,169
|
|
|
$
|
111.17
|
|
Granted
|
1,707,094
|
|
|
$
|
139.18
|
|
|
267,282
|
|
|
$
|
138.90
|
|
Vested
|
(2,646,084
|
)
|
|
$
|
107.73
|
|
|
(222,954
|
)
|
|
$
|
113.30
|
|
Forfeited
|
(156,694
|
)
|
|
$
|
114.54
|
|
|
—
|
|
|
$
|
—
|
|
Unvested restricted stock, December 31, 2017
|
4,709,442
|
|
|
$
|
121.16
|
|
|
975,497
|
|
|
$
|
118.28
|
|
Granted
|
1,326,979
|
|
|
$
|
142.76
|
|
|
180,065
|
|
|
$
|
143.07
|
|
Vested
|
(2,545,090
|
)
|
|
$
|
114.83
|
|
|
(244,332
|
)
|
|
$
|
103.03
|
|
Forfeited
|
(196,482
|
)
|
|
$
|
131.06
|
|
|
—
|
|
|
$
|
—
|
|
Unvested restricted stock, December 31, 2018
|
3,294,849
|
|
|
$
|
134.17
|
|
|
911,230
|
|
|
$
|
127.27
|
|
Granted
|
1,492,900
|
|
|
$
|
134.38
|
|
|
212,059
|
|
|
$
|
133.90
|
|
Vested
|
(1,292,864
|
)
|
|
$
|
129.18
|
|
|
(196,640
|
)
|
|
$
|
115.62
|
|
Forfeited
|
(200,875
|
)
|
|
$
|
135.98
|
|
|
(50,437
|
)
|
|
$
|
132.36
|
|
Unvested restricted stock, December 31, 2019
|
3,294,010
|
|
|
$
|
136.20
|
|
|
876,212
|
|
|
$
|
131.16
|
|
|
Pension Benefit Plans
|
|
|
Other Postretirement Benefit Plans
|
|
||||||||||||||||||
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|||||||||||||
|
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
|
$
|
3,092
|
|
|
$
|
942
|
|
|
$
|
3,285
|
|
|
$
|
1,077
|
|
|
$
|
113
|
|
|
$
|
137
|
|
Service cost
|
49
|
|
|
11
|
|
|
57
|
|
|
12
|
|
|
—
|
|
|
1
|
|
||||||
Interest cost
|
118
|
|
|
27
|
|
|
105
|
|
|
27
|
|
|
4
|
|
|
3
|
|
||||||
Actuarial loss (gain)
|
443
|
|
|
124
|
|
|
(214
|
)
|
|
(71
|
)
|
|
3
|
|
|
(20
|
)
|
||||||
Benefits paid
|
(121
|
)
|
|
(39
|
)
|
|
(108
|
)
|
|
(26
|
)
|
|
(17
|
)
|
|
(15
|
)
|
||||||
Amendments
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Curtailments
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
(12
|
)
|
|
(61
|
)
|
|
(33
|
)
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
||||||
Foreign currency revaluation and other
|
—
|
|
|
42
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
7
|
|
||||||
Benefit obligation, end of year
|
$
|
3,569
|
|
|
$
|
1,042
|
|
|
$
|
3,092
|
|
|
$
|
942
|
|
|
$
|
103
|
|
|
$
|
113
|
|
Plan assets at fair value, beginning of year
|
$
|
2,784
|
|
|
$
|
1,008
|
|
|
$
|
3,109
|
|
|
$
|
1,172
|
|
|
$
|
143
|
|
|
$
|
157
|
|
Actual return on plan assets
|
636
|
|
|
169
|
|
|
(218
|
)
|
|
(63
|
)
|
|
9
|
|
|
1
|
|
||||||
Employer contributions
|
14
|
|
|
16
|
|
|
34
|
|
|
14
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(121
|
)
|
|
(39
|
)
|
|
(108
|
)
|
|
(26
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
Settlements
|
(12
|
)
|
|
(61
|
)
|
|
(33
|
)
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
||||||
Foreign currency revaluation and other
|
—
|
|
|
48
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
||||||
Plan assets at fair value, end of year
|
$
|
3,301
|
|
|
$
|
1,141
|
|
|
$
|
2,784
|
|
|
$
|
1,008
|
|
|
$
|
152
|
|
|
$
|
143
|
|
Funded status at end of year
|
$
|
(268
|
)
|
|
$
|
99
|
|
|
$
|
(308
|
)
|
|
$
|
66
|
|
|
$
|
49
|
|
|
$
|
30
|
|
Amounts recognized in Accumulated other comprehensive
income, not yet recognized in net periodic cost (benefit):
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net actuarial loss (gain)
|
$
|
(21
|
)
|
|
$
|
110
|
|
|
$
|
(15
|
)
|
|
$
|
112
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
Prior service cost (benefit)
|
—
|
|
|
10
|
|
|
—
|
|
|
9
|
|
|
(114
|
)
|
|
(200
|
)
|
||||||
Total
|
$
|
(21
|
)
|
|
$
|
120
|
|
|
$
|
(15
|
)
|
|
$
|
121
|
|
|
$
|
(117
|
)
|
|
$
|
(200
|
)
|
|
2019
|
|
|
2018
|
|
||||||||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
||||
(in millions of U.S. dollars)
|
|
|
|||||||||||||
Plans with projected benefit obligation in excess of plan assets:
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligation
|
$
|
3,569
|
|
|
$
|
236
|
|
|
$
|
3,092
|
|
|
$
|
222
|
|
Fair value of plan assets
|
3,301
|
|
|
175
|
|
|
2,784
|
|
|
170
|
|
||||
Net funded status
|
$
|
(268
|
)
|
|
$
|
(61
|
)
|
|
$
|
(308
|
)
|
|
$
|
(52
|
)
|
Plans with accumulated benefit obligation in excess of plan assets:
|
|
|
|
|
|
|
|
||||||||
Accumulated benefit obligation
|
$
|
3,569
|
|
|
$
|
173
|
|
|
$
|
3,066
|
|
|
$
|
115
|
|
Fair value of plan assets
|
$
|
3,301
|
|
|
$
|
140
|
|
|
$
|
2,784
|
|
|
$
|
86
|
|
|
Pension Benefit Plans
|
|
|
|
||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Other Postretirement Benefit Plans
|
|
|
|
|
||||||
December 31, 2019
|
|
|
|
|
|
|||
Discount rate
|
3.20
|
%
|
|
2.39
|
%
|
|
2.70
|
%
|
Rate of compensation increase (1)
|
N/A
|
|
|
3.26
|
%
|
|
N/A
|
|
Interest crediting rate
|
4.10
|
%
|
|
|
|
|
||
December 31, 2018
|
|
|
|
|
|
|||
Discount rate
|
4.20
|
%
|
|
3.10
|
%
|
|
3.78
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
3.37
|
%
|
|
N/A
|
|
Interest crediting rate
|
4.10
|
%
|
|
|
|
|
|
Pension Benefit Plans
|
|
|
Other Postretirement Benefit Plans
|
|
||||||||||||||||||||||||||||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
|||||||||||||||||||||||||||||
Year Ended December 31
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Costs reflected in Net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Service cost
|
$
|
49
|
|
|
$
|
57
|
|
|
$
|
63
|
|
|
$
|
11
|
|
|
$
|
12
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
2
|
|
Non-service cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest cost
|
118
|
|
|
105
|
|
|
105
|
|
|
27
|
|
|
27
|
|
|
27
|
|
|
4
|
|
|
3
|
|
|
4
|
|
|||||||||
Expected return on plan assets
|
(189
|
)
|
|
(212
|
)
|
|
(189
|
)
|
|
(45
|
)
|
|
(50
|
)
|
|
(42
|
)
|
|
(4
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|||||||||
Amortization of net actuarial loss
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(84
|
)
|
|
(85
|
)
|
|
(89
|
)
|
|||||||||
Curtailments
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(2
|
)
|
|
(37
|
)
|
|||||||||
Settlements
|
2
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total non-service benefit
|
(69
|
)
|
|
(105
|
)
|
|
(84
|
)
|
|
(15
|
)
|
|
(19
|
)
|
|
(39
|
)
|
|
(84
|
)
|
|
(89
|
)
|
|
(127
|
)
|
|||||||||
Net periodic benefit
|
$
|
(20
|
)
|
|
$
|
(48
|
)
|
|
$
|
(21
|
)
|
|
$
|
(4
|
)
|
|
$
|
(7
|
)
|
|
$
|
(22
|
)
|
|
$
|
(84
|
)
|
|
$
|
(88
|
)
|
|
$
|
(125
|
)
|
Changes in plan assets and benefit obligations recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net actuarial loss (gain)
|
$
|
(4
|
)
|
|
$
|
214
|
|
|
$
|
(21
|
)
|
|
$
|
6
|
|
|
$
|
34
|
|
|
$
|
(57
|
)
|
|
$
|
(2
|
)
|
|
$
|
(11
|
)
|
|
$
|
(3
|
)
|
Prior service cost (benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|||||||||
Amortization of net actuarial loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||||||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
85
|
|
|
89
|
|
|||||||||
Curtailments
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
3
|
|
|
39
|
|
|||||||||
Settlements
|
(2
|
)
|
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total decrease (increase) in other comprehensive income
|
$
|
(6
|
)
|
|
$
|
212
|
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
(66
|
)
|
|
$
|
82
|
|
|
$
|
76
|
|
|
$
|
102
|
|
|
|
Pension Benefit Plans
|
|
|
Other Postretirement Benefit Plans
|
|
||||||||||||||||||
Year Ended December 31
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
(in millions of U.S. dollars)
|
|
|
|
|
|
|
||||||||||||||||||
Service Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Losses and loss expenses
|
|
$
|
6
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Administrative expenses
|
|
54
|
|
|
62
|
|
|
73
|
|
|
—
|
|
|
1
|
|
|
2
|
|
||||||
Total service cost
|
|
60
|
|
|
69
|
|
|
80
|
|
|
—
|
|
|
1
|
|
|
2
|
|
||||||
Non-Service Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Losses and loss expenses
|
|
(7
|
)
|
|
(10
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
(9
|
)
|
|
(13
|
)
|
||||||
Administrative expenses
|
|
(77
|
)
|
|
(114
|
)
|
|
(115
|
)
|
|
(76
|
)
|
|
(80
|
)
|
|
(114
|
)
|
||||||
Total non-service benefit
|
|
(84
|
)
|
|
(124
|
)
|
|
(123
|
)
|
|
(84
|
)
|
|
(89
|
)
|
|
(127
|
)
|
||||||
Net periodic benefit
|
|
$
|
(24
|
)
|
|
$
|
(55
|
)
|
|
$
|
(43
|
)
|
|
$
|
(84
|
)
|
|
$
|
(88
|
)
|
|
$
|
(125
|
)
|
|
Pension Benefit Plans
|
|
|
|
||||
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
|
Other Postretirement Benefit Plans
|
|
Year Ended December 31
|
|
|
||||||
2019
|
|
|
|
|
|
|||
Discount rate in effect for determining service cost
|
4.23
|
%
|
|
4.48
|
%
|
|
4.04
|
%
|
Discount rate in effect for determining interest cost
|
3.94
|
%
|
|
2.88
|
%
|
|
3.69
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
3.37
|
%
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
7.00
|
%
|
|
4.40
|
%
|
|
3.00
|
%
|
Interest crediting rate
|
4.10
|
%
|
|
N/A
|
|
|
N/A
|
|
2018
|
|
|
|
|
|
|||
Discount rate in effect for determining service cost
|
3.62
|
%
|
|
3.97
|
%
|
|
2.84
|
%
|
Discount rate in effect for determining interest cost
|
3.27
|
%
|
|
2.55
|
%
|
|
2.62
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
3.46
|
%
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
7.00
|
%
|
|
4.32
|
%
|
|
2.59
|
%
|
Interest crediting rate
|
4.10
|
%
|
|
N/A
|
|
|
N/A
|
|
2017
|
|
|
|
|
|
|||
Discount rate in effect for determining service cost
|
4.20
|
%
|
|
3.55
|
%
|
|
2.84
|
%
|
Discount rate in effect for determining interest cost
|
3.53
|
%
|
|
2.61
|
%
|
|
2.44
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
3.57
|
%
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
7.00
|
%
|
|
4.23
|
%
|
|
3.00
|
%
|
Interest crediting rate
|
4.10
|
%
|
|
N/A
|
|
|
N/A
|
|
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
||||||||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
Healthcare cost trend rate
|
6.32
|
%
|
|
6.68
|
%
|
|
7.01
|
%
|
|
5.24
|
%
|
|
6.29
|
%
|
|
6.61
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
4.50
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
|
4.00
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
Year that the rate reaches the ultimate trend rate
|
2038
|
|
|
2038
|
|
|
2038
|
|
|
2040
|
|
|
2029
|
|
|
2029
|
|
December 31, 2019
|
Pension Benefit Plans
|
|
|||||||||||||
(in millions of U.S. dollars)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
U.S. Plans:
|
|
|
|
|
|
|
|
||||||||
Short-term investments
|
$
|
18
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
55
|
|
U.S. Treasury and agency
|
466
|
|
|
134
|
|
|
—
|
|
|
600
|
|
||||
Foreign and corporate bonds
|
—
|
|
|
749
|
|
|
—
|
|
|
749
|
|
||||
States, municipalities, and political subdivisions
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Equity securities
|
1,467
|
|
|
—
|
|
|
—
|
|
|
1,467
|
|
||||
Total U.S. Plan assets (1)
|
$
|
1,951
|
|
|
$
|
922
|
|
|
$
|
—
|
|
|
$
|
2,873
|
|
Non-U.S. Plans:
|
|
|
|
|
|
|
|
||||||||
Short-term investments
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Foreign and corporate bonds
|
—
|
|
|
598
|
|
|
—
|
|
|
598
|
|
||||
Equity securities
|
112
|
|
|
318
|
|
|
—
|
|
|
430
|
|
||||
Total Non-U.S. Plan assets (1)
|
$
|
114
|
|
|
$
|
916
|
|
|
$
|
—
|
|
|
$
|
1,030
|
|
(1)
|
Excluded from the table above are $428 million and $107 million of other investments measured using NAV as a practical expedient related to the U.S. Plans and Non-U.S. Plans, respectively, and limited partnerships of $4 million in Non-U.S. Plans.
|
December 31, 2018
|
Pension Benefit Plans
|
|
|||||||||||||
(in millions of U.S. dollars)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
U.S. Plans:
|
|
|
|
|
|
|
|
||||||||
Short-term investments
|
$
|
10
|
|
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
84
|
|
U.S. Treasury and agency
|
433
|
|
|
82
|
|
|
—
|
|
|
515
|
|
||||
Foreign and corporate bonds
|
—
|
|
|
641
|
|
|
—
|
|
|
641
|
|
||||
Equity securities
|
1,050
|
|
|
—
|
|
|
—
|
|
|
1,050
|
|
||||
Total U.S. Plan assets (1)
|
$
|
1,493
|
|
|
$
|
797
|
|
|
$
|
—
|
|
|
$
|
2,290
|
|
Non-U.S. Plans:
|
|
|
|
|
|
|
|
||||||||
Short-term investments
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Foreign and corporate bonds
|
—
|
|
|
418
|
|
|
—
|
|
|
418
|
|
||||
Equity securities
|
103
|
|
|
371
|
|
|
—
|
|
|
474
|
|
||||
Total Non-U.S. Plan assets (1)
|
$
|
110
|
|
|
$
|
789
|
|
|
$
|
—
|
|
|
$
|
899
|
|
(1)
|
Excluded from the table above are $494 million and $109 million of other investments measured using NAV as a practical expedient related to the U.S. Plans and Non-U.S. Plans, respectively.
|
|
Pension Benefit Plans
|
|
|
Other Postretirement Benefit Plans
|
|
||||||
For the years ending December 31
|
U.S. Plans
|
|
|
Non-U.S. Plans
|
|
||||||
(in millions of U.S. dollars)
|
|
||||||||||
2020
|
$
|
151
|
|
|
$
|
27
|
|
|
$
|
19
|
|
2021
|
157
|
|
|
28
|
|
|
21
|
|
|||
2022
|
164
|
|
|
27
|
|
|
22
|
|
|||
2023
|
169
|
|
|
29
|
|
|
18
|
|
|||
2024
|
174
|
|
|
29
|
|
|
13
|
|
|||
2025-2029
|
931
|
|
|
171
|
|
|
11
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Equity in net income of partially-owned entities (1)
|
$
|
617
|
|
|
$
|
514
|
|
|
$
|
418
|
|
Gains (losses) from fair value changes in separate account assets (2)
|
44
|
|
|
(38
|
)
|
|
97
|
|
|||
One-time contribution to the Chubb Charitable Foundation
|
—
|
|
|
—
|
|
|
(50
|
)
|
|||
Federal excise and capital taxes
|
(23
|
)
|
|
(12
|
)
|
|
(35
|
)
|
|||
Other
|
(42
|
)
|
|
(30
|
)
|
|
(30
|
)
|
|||
Total
|
$
|
596
|
|
|
$
|
434
|
|
|
$
|
400
|
|
(1)
|
Equity in net income of partially-owned entities includes $74 million, $43 million, and $3 million attributable to our investments in Huatai (Huatai Group, Huatai P&C, and Huatai Life) for the years ended December 31, 2019, 2018, and 2017, respectively.
|
(2)
|
Related to gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
|
•
|
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 property, casualty, workers’ compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and 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 includes high net worth personal lines business, 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. in the U.S. and Canada, 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 and territories outside of North America where the company operates. Chubb International provides commercial P&C, A&H and traditional and specialty personal lines for large corporations, middle markets and small customers through retail brokers, agents and other channels locally around the world. Chubb Global Markets (CGM) provides commercial P&C excess and surplus lines and A&H through wholesale brokers in the London market and through Lloyd’s. These divisions write a variety of coverages, including traditional commercial P&C, specialty categories such as financial lines, marine, energy, aviation, political risk and construction, as well as group A&H and traditional and specialty personal lines.
|
•
|
The Global Reinsurance segment includes the reinsurance business written by Chubb Tempest Re, comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. Chubb Tempest Re provides a broad range of traditional and specialty reinsurance coverages to a diverse array of primary P&C companies, including small, mid-sized, and multinational ceding 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, 2019 (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
|
$
|
13,375
|
|
|
$
|
4,787
|
|
|
$
|
1,810
|
|
|
$
|
9,262
|
|
|
$
|
649
|
|
|
$
|
2,392
|
|
|
$
|
—
|
|
|
$
|
32,275
|
|
Net premiums earned
|
12,922
|
|
|
4,694
|
|
|
1,795
|
|
|
8,882
|
|
|
654
|
|
|
2,343
|
|
|
—
|
|
|
31,290
|
|
||||||||
Losses and loss expenses
|
8,206
|
|
|
3,043
|
|
|
1,608
|
|
|
4,606
|
|
|
352
|
|
|
757
|
|
|
158
|
|
|
18,730
|
|
||||||||
Policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
740
|
|
|
—
|
|
|
740
|
|
||||||||
Policy acquisition costs
|
1,831
|
|
|
948
|
|
|
84
|
|
|
2,501
|
|
|
169
|
|
|
620
|
|
|
—
|
|
|
6,153
|
|
||||||||
Administrative expenses
|
1,028
|
|
|
286
|
|
|
6
|
|
|
1,033
|
|
|
35
|
|
|
323
|
|
|
319
|
|
|
3,030
|
|
||||||||
Underwriting income (loss)
|
1,857
|
|
|
417
|
|
|
97
|
|
|
742
|
|
|
98
|
|
|
(97
|
)
|
|
(477
|
)
|
|
2,637
|
|
||||||||
Net investment income (loss)
|
2,082
|
|
|
258
|
|
|
30
|
|
|
588
|
|
|
220
|
|
|
373
|
|
|
(125
|
)
|
|
3,426
|
|
||||||||
Other (income) expense
|
(3
|
)
|
|
3
|
|
|
1
|
|
|
12
|
|
|
(58
|
)
|
|
(92
|
)
|
|
(459
|
)
|
|
(596
|
)
|
||||||||
Amortization expense of purchased intangibles
|
—
|
|
|
12
|
|
|
28
|
|
|
45
|
|
|
—
|
|
|
2
|
|
|
218
|
|
|
305
|
|
||||||||
Segment income (loss)
|
$
|
3,942
|
|
|
$
|
660
|
|
|
$
|
98
|
|
|
$
|
1,273
|
|
|
$
|
376
|
|
|
$
|
366
|
|
|
$
|
(361
|
)
|
|
$
|
6,354
|
|
Net realized gains (losses) including OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
(530
|
)
|
|
(530
|
)
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
552
|
|
|
552
|
|
||||||||||||||
Chubb integration expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
23
|
|
|
23
|
|
||||||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
795
|
|
|
795
|
|
||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,261
|
)
|
|
$
|
4,454
|
|
For the Year Ended December 31, 2018 (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
|
$
|
12,485
|
|
|
$
|
4,674
|
|
|
$
|
1,577
|
|
|
$
|
8,902
|
|
|
$
|
671
|
|
|
$
|
2,270
|
|
|
$
|
—
|
|
|
$
|
30,579
|
|
Net premiums earned
|
12,402
|
|
|
4,593
|
|
|
1,569
|
|
|
8,612
|
|
|
670
|
|
|
2,218
|
|
|
—
|
|
|
30,064
|
|
||||||||
Losses and loss expenses
|
8,000
|
|
|
3,229
|
|
|
1,111
|
|
|
4,429
|
|
|
479
|
|
|
766
|
|
|
53
|
|
|
18,067
|
|
||||||||
Policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
590
|
|
|
—
|
|
|
590
|
|
||||||||
Policy acquisition costs
|
1,829
|
|
|
939
|
|
|
79
|
|
|
2,346
|
|
|
162
|
|
|
557
|
|
|
—
|
|
|
5,912
|
|
||||||||
Administrative expenses
|
966
|
|
|
269
|
|
|
(9
|
)
|
|
1,014
|
|
|
41
|
|
|
310
|
|
|
295
|
|
|
2,886
|
|
||||||||
Underwriting income (loss)
|
1,607
|
|
|
156
|
|
|
388
|
|
|
823
|
|
|
(12
|
)
|
|
(5
|
)
|
|
(348
|
)
|
|
2,609
|
|
||||||||
Net investment income (loss)
|
2,033
|
|
|
236
|
|
|
28
|
|
|
619
|
|
|
257
|
|
|
341
|
|
|
(209
|
)
|
|
3,305
|
|
||||||||
Other (income) expense
|
(25
|
)
|
|
1
|
|
|
2
|
|
|
—
|
|
|
(32
|
)
|
|
26
|
|
|
(406
|
)
|
|
(434
|
)
|
||||||||
Amortization expense of purchased intangibles
|
—
|
|
|
13
|
|
|
28
|
|
|
41
|
|
|
—
|
|
|
2
|
|
|
255
|
|
|
339
|
|
||||||||
Segment income (loss)
|
$
|
3,665
|
|
|
$
|
378
|
|
|
$
|
386
|
|
|
$
|
1,401
|
|
|
$
|
277
|
|
|
$
|
308
|
|
|
$
|
(406
|
)
|
|
$
|
6,009
|
|
Net realized gains (losses) including OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(652
|
)
|
|
(652
|
)
|
|||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
641
|
|
|
641
|
|
||||||||||||||
Chubb integration expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
59
|
|
|
59
|
|
||||||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
695
|
|
|
695
|
|
||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,453
|
)
|
|
$
|
3,962
|
|
For the Year Ended December 31, 2017 (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
|
$
|
12,019
|
|
|
$
|
4,533
|
|
|
$
|
1,516
|
|
|
$
|
8,350
|
|
|
$
|
685
|
|
|
$
|
2,141
|
|
|
$
|
—
|
|
|
$
|
29,244
|
|
Net premiums earned
|
12,191
|
|
|
4,399
|
|
|
1,508
|
|
|
8,131
|
|
|
704
|
|
|
2,101
|
|
|
—
|
|
|
29,034
|
|
||||||||
Losses and loss expenses
|
8,287
|
|
|
3,265
|
|
|
1,036
|
|
|
4,281
|
|
|
561
|
|
|
739
|
|
|
285
|
|
|
18,454
|
|
||||||||
Policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
676
|
|
|
—
|
|
|
676
|
|
||||||||
Policy acquisition costs
|
1,873
|
|
|
899
|
|
|
81
|
|
|
2,221
|
|
|
177
|
|
|
530
|
|
|
—
|
|
|
5,781
|
|
||||||||
Administrative expenses
|
981
|
|
|
264
|
|
|
(8
|
)
|
|
982
|
|
|
44
|
|
|
303
|
|
|
267
|
|
|
2,833
|
|
||||||||
Underwriting income (loss)
|
1,050
|
|
|
(29
|
)
|
|
399
|
|
|
647
|
|
|
(78
|
)
|
|
(147
|
)
|
|
(552
|
)
|
|
1,290
|
|
||||||||
Net investment income (loss)
|
1,961
|
|
|
226
|
|
|
25
|
|
|
610
|
|
|
273
|
|
|
313
|
|
|
(283
|
)
|
|
3,125
|
|
||||||||
Other (income) expense
|
1
|
|
|
4
|
|
|
2
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(84
|
)
|
|
(318
|
)
|
|
(400
|
)
|
||||||||
Amortization expense of purchased intangibles
|
—
|
|
|
16
|
|
|
29
|
|
|
45
|
|
|
—
|
|
|
2
|
|
|
168
|
|
|
260
|
|
||||||||
Segment income (loss)
|
$
|
3,010
|
|
|
$
|
177
|
|
|
$
|
393
|
|
|
$
|
1,216
|
|
|
$
|
196
|
|
|
$
|
248
|
|
|
$
|
(685
|
)
|
|
$
|
4,555
|
|
Net realized gains (losses) including OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
84
|
|
|
84
|
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
607
|
|
|
607
|
|
||||||||||||||
Chubb integration expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
310
|
|
|
310
|
|
||||||||||||||
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
(139
|
)
|
|
(139
|
)
|
||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(1,379
|
)
|
|
$
|
3,861
|
|
|
|
|
|
|
|
||||||
|
For the Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
North America Commercial P&C Insurance
|
|
|
|
|
|
||||||
Property & other short-tail lines
|
$
|
1,987
|
|
|
$
|
1,861
|
|
|
$
|
1,899
|
|
Casualty & all other
|
10,136
|
|
|
9,773
|
|
|
9,554
|
|
|||
A&H
|
799
|
|
|
768
|
|
|
738
|
|
|||
Total North America Commercial P&C Insurance
|
12,922
|
|
|
12,402
|
|
|
12,191
|
|
|||
North America Personal P&C Insurance
|
|
|
|
|
|
||||||
Personal automobile
|
829
|
|
|
803
|
|
|
742
|
|
|||
Personal homeowners
|
3,183
|
|
|
3,127
|
|
|
3,014
|
|
|||
Personal other
|
682
|
|
|
663
|
|
|
643
|
|
|||
Total North America Personal P&C Insurance
|
4,694
|
|
|
4,593
|
|
|
4,399
|
|
|||
North America Agricultural Insurance
|
1,795
|
|
|
1,569
|
|
|
1,508
|
|
|||
Overseas General Insurance
|
|
|
|
|
|
||||||
Property & other short-tail lines
|
2,244
|
|
|
2,134
|
|
|
2,076
|
|
|||
Casualty & all other
|
2,494
|
|
|
2,429
|
|
|
2,266
|
|
|||
Personal lines
|
1,896
|
|
|
1,784
|
|
|
1,609
|
|
|||
A&H
|
2,248
|
|
|
2,265
|
|
|
2,180
|
|
|||
Total Overseas General Insurance
|
8,882
|
|
|
8,612
|
|
|
8,131
|
|
|||
Global Reinsurance
|
|
|
|
|
|
||||||
Property & other short-tail lines
|
131
|
|
|
123
|
|
|
132
|
|
|||
Property catastrophe
|
142
|
|
|
170
|
|
|
198
|
|
|||
Casualty & all other
|
381
|
|
|
377
|
|
|
374
|
|
|||
Total Global Reinsurance
|
654
|
|
|
670
|
|
|
704
|
|
|||
Life Insurance
|
|
|
|
|
|
||||||
Life
|
1,101
|
|
|
1,022
|
|
|
980
|
|
|||
A&H
|
1,242
|
|
|
1,196
|
|
|
1,121
|
|
|||
Total Life Insurance
|
2,343
|
|
|
2,218
|
|
|
2,101
|
|
|||
Total net premiums earned
|
$
|
31,290
|
|
|
$
|
30,064
|
|
|
$
|
29,034
|
|
|
North America
|
|
|
Europe (1)
|
|
|
Asia Pacific / Far East
|
|
|
Latin America
|
|
2019
|
70
|
%
|
|
11
|
%
|
|
12
|
%
|
|
7
|
%
|
2018
|
70
|
%
|
|
11
|
%
|
|
12
|
%
|
|
7
|
%
|
2017
|
70
|
%
|
|
11
|
%
|
|
12
|
%
|
|
7
|
%
|
(1)
|
Europe includes Eurasia and Africa regions.
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars, except share and per share data)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
4,454
|
|
|
$
|
3,962
|
|
|
$
|
3,861
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per share:
|
|
|
|
|
|
||||||
Weighted-average shares outstanding
|
455,910,463
|
|
|
463,629,203
|
|
|
467,145,716
|
|
|||
Denominator for diluted earnings per share:
|
|
|
|
|
|
||||||
Share-based compensation plans
|
3,004,200
|
|
|
3,173,145
|
|
|
4,051,185
|
|
|||
Weighted-average shares outstanding
and assumed conversions
|
458,914,663
|
|
|
466,802,348
|
|
|
471,196,901
|
|
|||
Basic earnings per share
|
$
|
9.77
|
|
|
$
|
8.55
|
|
|
$
|
8.26
|
|
Diluted earnings per share
|
$
|
9.71
|
|
|
$
|
8.49
|
|
|
$
|
8.19
|
|
Potential anti-dilutive share conversions
|
2,410,337
|
|
|
3,543,188
|
|
|
1,776,025
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
||||
Consolidated statement of operations
|
|
|
|
|
|
||||||
Gross premiums written
|
$
|
394
|
|
|
$
|
411
|
|
|
$
|
464
|
|
Ceded premiums written
|
$
|
207
|
|
|
$
|
188
|
|
|
$
|
175
|
|
Commissions paid
|
$
|
77
|
|
|
$
|
84
|
|
|
$
|
101
|
|
Commissions received
|
$
|
46
|
|
|
$
|
42
|
|
|
$
|
37
|
|
Losses and loss expenses incurred
|
$
|
185
|
|
|
$
|
188
|
|
|
$
|
438
|
|
Consolidated balance sheets
|
|
|
|
|
|
||||||
Reinsurance recoverable on losses and loss expenses
|
$
|
440
|
|
|
$
|
514
|
|
|
|
||
Ceded reinsurance premium payable
|
$
|
56
|
|
|
$
|
75
|
|
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
||||
Consolidated statement of operations
|
|
|
|
|
|
||||||
Ceded premiums written
|
$
|
321
|
|
|
$
|
329
|
|
|
$
|
342
|
|
Commissions received
|
$
|
92
|
|
|
$
|
96
|
|
|
$
|
94
|
|
Consolidated balance sheets
|
|
|
|
|
|
||||||
Reinsurance recoverable on losses and loss expenses
|
$
|
674
|
|
|
$
|
557
|
|
|
|
||
Ceded reinsurance premium payable
|
$
|
62
|
|
|
$
|
47
|
|
|
|
|
December 31
|
|
|||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
||
Statutory capital and surplus
|
|
|
|
||||
Property and casualty
|
$
|
43,684
|
|
|
$
|
40,780
|
|
Life
|
$
|
1,900
|
|
|
$
|
1,279
|
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Statutory net income (loss)
|
|
|
|
|
|
||||||
Property and casualty
|
$
|
5,931
|
|
|
$
|
7,521
|
|
|
$
|
8,178
|
|
Life
|
$
|
(227
|
)
|
|
$
|
(102
|
)
|
|
$
|
49
|
|
(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
|
$
|
—
|
|
|
$
|
1,013
|
|
|
$
|
108,221
|
|
|
$
|
—
|
|
|
$
|
109,234
|
|
Cash (1)
|
2
|
|
|
442
|
|
|
1,093
|
|
|
—
|
|
|
1,537
|
|
|||||
Restricted Cash
|
—
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
109
|
|
|||||
Insurance and reinsurance balances receivable
|
—
|
|
|
—
|
|
|
12,920
|
|
|
(2,563
|
)
|
|
10,357
|
|
|||||
Reinsurance recoverable on losses and loss expenses
|
—
|
|
|
—
|
|
|
24,780
|
|
|
(9,599
|
)
|
|
15,181
|
|
|||||
Reinsurance recoverable on policy benefits
|
—
|
|
|
—
|
|
|
292
|
|
|
(95
|
)
|
|
197
|
|
|||||
Value of business acquired
|
—
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
306
|
|
|||||
Goodwill and other intangible assets
|
—
|
|
|
—
|
|
|
21,359
|
|
|
—
|
|
|
21,359
|
|
|||||
Investments in subsidiaries
|
50,853
|
|
|
52,076
|
|
|
—
|
|
|
(102,929
|
)
|
|
—
|
|
|||||
Due from subsidiaries and affiliates, net
|
4,776
|
|
|
—
|
|
|
—
|
|
|
(4,776
|
)
|
|
—
|
|
|||||
Other assets
|
12
|
|
|
408
|
|
|
20,072
|
|
|
(1,829
|
)
|
|
18,663
|
|
|||||
Total assets
|
$
|
55,643
|
|
|
$
|
53,939
|
|
|
$
|
189,152
|
|
|
$
|
(121,791
|
)
|
|
$
|
176,943
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Unpaid losses and loss expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
71,916
|
|
|
$
|
(9,226
|
)
|
|
$
|
62,690
|
|
Unearned premiums
|
—
|
|
|
—
|
|
|
17,978
|
|
|
(1,207
|
)
|
|
16,771
|
|
|||||
Future policy benefits
|
—
|
|
|
—
|
|
|
5,909
|
|
|
(95
|
)
|
|
5,814
|
|
|||||
Due to subsidiaries and affiliates, net
|
—
|
|
|
4,446
|
|
|
330
|
|
|
(4,776
|
)
|
|
—
|
|
|||||
Repurchase agreements
|
—
|
|
|
—
|
|
|
1,416
|
|
|
—
|
|
|
1,416
|
|
|||||
Short-term debt
|
—
|
|
|
1,298
|
|
|
1
|
|
|
—
|
|
|
1,299
|
|
|||||
Long-term debt
|
—
|
|
|
13,559
|
|
|
—
|
|
|
—
|
|
|
13,559
|
|
|||||
Trust preferred securities
|
—
|
|
|
308
|
|
|
—
|
|
|
—
|
|
|
308
|
|
|||||
Other liabilities
|
312
|
|
|
1,649
|
|
|
21,352
|
|
|
(3,558
|
)
|
|
19,755
|
|
|||||
Total liabilities
|
312
|
|
|
21,260
|
|
|
118,902
|
|
|
(18,862
|
)
|
|
121,612
|
|
|||||
Total shareholders’ equity
|
55,331
|
|
|
32,679
|
|
|
70,250
|
|
|
(102,929
|
)
|
|
55,331
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
55,643
|
|
|
$
|
53,939
|
|
|
$
|
189,152
|
|
|
$
|
(121,791
|
)
|
|
$
|
176,943
|
|
(1)
|
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information.
|
(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
|
$
|
—
|
|
|
$
|
214
|
|
|
$
|
100,754
|
|
|
$
|
—
|
|
|
$
|
100,968
|
|
Cash (1)
|
1
|
|
|
2
|
|
|
1,896
|
|
|
(652
|
)
|
|
1,247
|
|
|||||
Restricted Cash
|
—
|
|
|
—
|
|
|
93
|
|
|
—
|
|
|
93
|
|
|||||
Insurance and reinsurance balances receivable
|
—
|
|
|
—
|
|
|
11,861
|
|
|
(1,786
|
)
|
|
10,075
|
|
|||||
Reinsurance recoverable on losses and loss expenses
|
—
|
|
|
—
|
|
|
26,422
|
|
|
(10,429
|
)
|
|
15,993
|
|
|||||
Reinsurance recoverable on policy benefits
|
—
|
|
|
—
|
|
|
306
|
|
|
(104
|
)
|
|
202
|
|
|||||
Value of business acquired
|
—
|
|
|
—
|
|
|
295
|
|
|
—
|
|
|
295
|
|
|||||
Goodwill and other intangible assets
|
—
|
|
|
—
|
|
|
21,414
|
|
|
—
|
|
|
21,414
|
|
|||||
Investments in subsidiaries
|
43,531
|
|
|
50,209
|
|
|
—
|
|
|
(93,740
|
)
|
|
—
|
|
|||||
Due from subsidiaries and affiliates, net
|
7,074
|
|
|
—
|
|
|
598
|
|
|
(7,672
|
)
|
|
—
|
|
|||||
Other assets
|
3
|
|
|
1,007
|
|
|
18,102
|
|
|
(1,628
|
)
|
|
17,484
|
|
|||||
Total assets
|
$
|
50,609
|
|
|
$
|
51,432
|
|
|
$
|
181,741
|
|
|
$
|
(116,011
|
)
|
|
$
|
167,771
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Unpaid losses and loss expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
72,857
|
|
|
$
|
(9,897
|
)
|
|
$
|
62,960
|
|
Unearned premiums
|
—
|
|
|
—
|
|
|
16,611
|
|
|
(1,079
|
)
|
|
15,532
|
|
|||||
Future policy benefits
|
—
|
|
|
—
|
|
|
5,610
|
|
|
(104
|
)
|
|
5,506
|
|
|||||
Due to subsidiaries and affiliates, net
|
—
|
|
|
7,672
|
|
|
—
|
|
|
(7,672
|
)
|
|
—
|
|
|||||
Affiliated notional cash pooling programs (1)
|
35
|
|
|
617
|
|
|
—
|
|
|
(652
|
)
|
|
—
|
|
|||||
Repurchase agreements
|
—
|
|
|
—
|
|
|
1,418
|
|
|
—
|
|
|
1,418
|
|
|||||
Short-term debt
|
—
|
|
|
500
|
|
|
9
|
|
|
—
|
|
|
509
|
|
|||||
Long-term debt
|
—
|
|
|
12,086
|
|
|
1
|
|
|
—
|
|
|
12,087
|
|
|||||
Trust preferred securities
|
—
|
|
|
308
|
|
|
—
|
|
|
—
|
|
|
308
|
|
|||||
Other liabilities
|
262
|
|
|
2,545
|
|
|
19,199
|
|
|
(2,867
|
)
|
|
19,139
|
|
|||||
Total liabilities
|
297
|
|
|
23,728
|
|
|
115,705
|
|
|
(22,271
|
)
|
|
117,459
|
|
|||||
Total shareholders’ equity
|
50,312
|
|
|
27,704
|
|
|
66,036
|
|
|
(93,740
|
)
|
|
50,312
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
50,609
|
|
|
$
|
51,432
|
|
|
$
|
181,741
|
|
|
$
|
(116,011
|
)
|
|
$
|
167,771
|
|
(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, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
For the Year Ended December 31, 2019
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,275
|
|
|
$
|
—
|
|
|
$
|
32,275
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
31,290
|
|
|
—
|
|
|
31,290
|
|
|||||
Net investment income
|
1
|
|
|
(15
|
)
|
|
3,440
|
|
|
—
|
|
|
3,426
|
|
|||||
Equity in earnings of subsidiaries
|
4,307
|
|
|
3,022
|
|
|
—
|
|
|
(7,329
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
(17
|
)
|
|
(31
|
)
|
|
(482
|
)
|
|
—
|
|
|
(530
|
)
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
18,730
|
|
|
—
|
|
|
18,730
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
740
|
|
|
—
|
|
|
740
|
|
|||||
Policy acquisition costs and administrative expenses
|
92
|
|
|
(26
|
)
|
|
9,117
|
|
|
—
|
|
|
9,183
|
|
|||||
Interest (income) expense
|
(243
|
)
|
|
705
|
|
|
90
|
|
|
—
|
|
|
552
|
|
|||||
Other (income) expense
|
(27
|
)
|
|
6
|
|
|
(575
|
)
|
|
—
|
|
|
(596
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
305
|
|
|
—
|
|
|
305
|
|
|||||
Chubb integration expenses
|
1
|
|
|
2
|
|
|
20
|
|
|
—
|
|
|
23
|
|
|||||
Income tax expense (benefit)
|
14
|
|
|
(175
|
)
|
|
956
|
|
|
—
|
|
|
795
|
|
|||||
Net income
|
$
|
4,454
|
|
|
$
|
2,464
|
|
|
$
|
4,865
|
|
|
$
|
(7,329
|
)
|
|
$
|
4,454
|
|
Comprehensive income
|
$
|
7,521
|
|
|
$
|
4,988
|
|
|
$
|
7,922
|
|
|
$
|
(12,910
|
)
|
|
$
|
7,521
|
|
For the Year Ended December 31, 2018
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,579
|
|
|
$
|
—
|
|
|
$
|
30,579
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
30,064
|
|
|
—
|
|
|
30,064
|
|
|||||
Net investment income
|
6
|
|
|
13
|
|
|
3,286
|
|
|
—
|
|
|
3,305
|
|
|||||
Equity in earnings of subsidiaries
|
3,753
|
|
|
2,578
|
|
|
—
|
|
|
(6,331
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
—
|
|
|
117
|
|
|
(769
|
)
|
|
—
|
|
|
(652
|
)
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
18,067
|
|
|
—
|
|
|
18,067
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
590
|
|
|
—
|
|
|
590
|
|
|||||
Policy acquisition costs and administrative expenses
|
87
|
|
|
(58
|
)
|
|
8,769
|
|
|
—
|
|
|
8,798
|
|
|||||
Interest (income) expense
|
(299
|
)
|
|
806
|
|
|
134
|
|
|
—
|
|
|
641
|
|
|||||
Other (income) expense
|
(24
|
)
|
|
26
|
|
|
(436
|
)
|
|
—
|
|
|
(434
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
339
|
|
|
—
|
|
|
339
|
|
|||||
Chubb integration expenses
|
14
|
|
|
1
|
|
|
44
|
|
|
—
|
|
|
59
|
|
|||||
Income tax expense (benefit)
|
19
|
|
|
(148
|
)
|
|
824
|
|
|
—
|
|
|
695
|
|
|||||
Net income
|
$
|
3,962
|
|
|
$
|
2,081
|
|
|
$
|
4,250
|
|
|
$
|
(6,331
|
)
|
|
$
|
3,962
|
|
Comprehensive income (loss)
|
$
|
1,242
|
|
|
$
|
(27
|
)
|
|
$
|
1,808
|
|
|
$
|
(1,781
|
)
|
|
$
|
1,242
|
|
For the Year Ended December 31, 2017
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29,244
|
|
|
$
|
—
|
|
|
$
|
29,244
|
|
Net premiums earned
|
—
|
|
|
—
|
|
|
29,034
|
|
|
—
|
|
|
29,034
|
|
|||||
Net investment income
|
4
|
|
|
14
|
|
|
3,107
|
|
|
—
|
|
|
3,125
|
|
|||||
Equity in earnings of subsidiaries
|
3,640
|
|
|
2,424
|
|
|
—
|
|
|
(6,064
|
)
|
|
—
|
|
|||||
Net realized gains (losses) including OTTI
|
—
|
|
|
(25
|
)
|
|
109
|
|
|
—
|
|
|
84
|
|
|||||
Losses and loss expenses
|
—
|
|
|
—
|
|
|
18,454
|
|
|
—
|
|
|
18,454
|
|
|||||
Policy benefits
|
—
|
|
|
—
|
|
|
676
|
|
|
—
|
|
|
676
|
|
|||||
Policy acquisition costs and administrative expenses
|
75
|
|
|
40
|
|
|
8,499
|
|
|
—
|
|
|
8,614
|
|
|||||
Interest (income) expense
|
(332
|
)
|
|
847
|
|
|
92
|
|
|
—
|
|
|
607
|
|
|||||
Other (income) expense
|
(12
|
)
|
|
93
|
|
|
(481
|
)
|
|
—
|
|
|
(400
|
)
|
|||||
Amortization of purchased intangibles
|
—
|
|
|
—
|
|
|
260
|
|
|
—
|
|
|
260
|
|
|||||
Chubb integration expenses
|
32
|
|
|
69
|
|
|
209
|
|
|
—
|
|
|
310
|
|
|||||
Income tax expense (benefit)
|
20
|
|
|
(742
|
)
|
|
583
|
|
|
—
|
|
|
(139
|
)
|
|||||
Net income
|
$
|
3,861
|
|
|
$
|
2,106
|
|
|
$
|
3,958
|
|
|
$
|
(6,064
|
)
|
|
$
|
3,861
|
|
Comprehensive income
|
$
|
4,718
|
|
|
$
|
3,075
|
|
|
$
|
4,430
|
|
|
$
|
(7,505
|
)
|
|
$
|
4,718
|
|
For the Year Ended December 31, 2019
|
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
|
$
|
412
|
|
|
$
|
2,926
|
|
|
$
|
6,878
|
|
|
$
|
(3,874
|
)
|
|
$
|
6,342
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of fixed maturities available for sale
|
—
|
|
|
(21
|
)
|
|
(25,825
|
)
|
|
—
|
|
|
(25,846
|
)
|
|||||
Purchases of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
(229
|
)
|
|
—
|
|
|
(229
|
)
|
|||||
Purchases of equity securities
|
—
|
|
|
—
|
|
|
(531
|
)
|
|
—
|
|
|
(531
|
)
|
|||||
Sales of fixed maturities available for sale
|
—
|
|
|
1
|
|
|
13,115
|
|
|
—
|
|
|
13,116
|
|
|||||
Sales of equity securities
|
—
|
|
|
—
|
|
|
611
|
|
|
—
|
|
|
611
|
|
|||||
Maturities and redemptions of fixed maturities available for sale
|
—
|
|
|
41
|
|
|
8,998
|
|
|
—
|
|
|
9,039
|
|
|||||
Maturities and redemptions of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
946
|
|
|
—
|
|
|
946
|
|
|||||
Net change in short-term investments
|
—
|
|
|
(808
|
)
|
|
(309
|
)
|
|
—
|
|
|
(1,117
|
)
|
|||||
Net derivative instruments settlements
|
—
|
|
|
(74
|
)
|
|
(629
|
)
|
|
—
|
|
|
(703
|
)
|
|||||
Private equity contribution
|
—
|
|
|
—
|
|
|
(1,315
|
)
|
|
—
|
|
|
(1,315
|
)
|
|||||
Private equity distribution
|
—
|
|
|
—
|
|
|
1,390
|
|
|
—
|
|
|
1,390
|
|
|||||
Capital contribution
|
(1,000
|
)
|
|
(110
|
)
|
|
—
|
|
|
1,110
|
|
|
—
|
|
|||||
Acquisition of subsidiaries (net of cash acquired of $45)
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
|||||
Other
|
—
|
|
|
(4
|
)
|
|
(1,233
|
)
|
|
—
|
|
|
(1,237
|
)
|
|||||
Net cash flows used for investing activities
|
(1,000
|
)
|
|
(975
|
)
|
|
(5,040
|
)
|
|
1,110
|
|
|
(5,905
|
)
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid on Common Shares
|
(1,354
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,354
|
)
|
|||||
Common Shares repurchased
|
(327
|
)
|
|
—
|
|
|
(1,203
|
)
|
|
—
|
|
|
(1,530
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
2,828
|
|
|
—
|
|
|
—
|
|
|
2,828
|
|
|||||
Proceeds from issuance of repurchase agreements
|
—
|
|
|
—
|
|
|
2,817
|
|
|
—
|
|
|
2,817
|
|
|||||
Repayment of long-term debt
|
—
|
|
|
(500
|
)
|
|
(10
|
)
|
|
—
|
|
|
(510
|
)
|
|||||
Repayment of repurchase agreements
|
—
|
|
|
—
|
|
|
(2,817
|
)
|
|
—
|
|
|
(2,817
|
)
|
|||||
Proceeds from share-based compensation plans
|
—
|
|
|
—
|
|
|
204
|
|
|
—
|
|
|
204
|
|
|||||
Advances (to) from affiliates
|
2,301
|
|
|
(3,223
|
)
|
|
922
|
|
|
—
|
|
|
—
|
|
|||||
Dividends to parent company
|
—
|
|
|
—
|
|
|
(3,874
|
)
|
|
3,874
|
|
|
—
|
|
|||||
Capital contribution
|
—
|
|
|
—
|
|
|
1,110
|
|
|
(1,110
|
)
|
|
—
|
|
|||||
Net payments to affiliated notional cash pooling programs(1)
|
(35
|
)
|
|
(617
|
)
|
|
—
|
|
|
652
|
|
|
—
|
|
|||||
Policyholder contract deposits
|
—
|
|
|
—
|
|
|
514
|
|
|
—
|
|
|
514
|
|
|||||
Policyholder contract withdrawals
|
—
|
|
|
—
|
|
|
(303
|
)
|
|
—
|
|
|
(303
|
)
|
|||||
Net cash flows from (used for) financing activities
|
585
|
|
|
(1,512
|
)
|
|
(2,640
|
)
|
|
3,416
|
|
|
(151
|
)
|
|||||
Effect of foreign currency rate changes on cash and restricted cash
|
4
|
|
|
1
|
|
|
15
|
|
|
—
|
|
|
20
|
|
|||||
Net increase (decrease) in cash and restricted cash
|
1
|
|
|
440
|
|
|
(787
|
)
|
|
652
|
|
|
306
|
|
|||||
Cash and restricted cash – beginning of year (1)
|
1
|
|
|
2
|
|
|
1,989
|
|
|
(652
|
)
|
|
1,340
|
|
|||||
Cash and restricted cash – end of year (1)
|
$
|
2
|
|
|
$
|
442
|
|
|
$
|
1,202
|
|
|
$
|
—
|
|
|
$
|
1,646
|
|
(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, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
For the Year Ended December 31, 2018
|
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
|
$
|
256
|
|
|
$
|
4,654
|
|
|
$
|
5,878
|
|
|
$
|
(5,308
|
)
|
|
$
|
5,480
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of fixed maturities available for sale
|
—
|
|
|
(38
|
)
|
|
(24,697
|
)
|
|
—
|
|
|
(24,735
|
)
|
|||||
Purchases of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
(456
|
)
|
|
—
|
|
|
(456
|
)
|
|||||
Purchases of equity securities
|
—
|
|
|
—
|
|
|
(207
|
)
|
|
—
|
|
|
(207
|
)
|
|||||
Sales of fixed maturities available for sale
|
—
|
|
|
11
|
|
|
14,019
|
|
|
—
|
|
|
14,030
|
|
|||||
Sales of equity securities
|
—
|
|
|
—
|
|
|
315
|
|
|
—
|
|
|
315
|
|
|||||
Maturities and redemptions of fixed maturities available for sale
|
—
|
|
|
17
|
|
|
7,335
|
|
|
—
|
|
|
7,352
|
|
|||||
Maturities and redemptions of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
1,124
|
|
|
—
|
|
|
1,124
|
|
|||||
Net change in short-term investments
|
—
|
|
|
3
|
|
|
513
|
|
|
—
|
|
|
516
|
|
|||||
Net derivative instruments settlements
|
—
|
|
|
(7
|
)
|
|
23
|
|
|
—
|
|
|
16
|
|
|||||
Private equity contributions
|
—
|
|
|
—
|
|
|
(1,337
|
)
|
|
—
|
|
|
(1,337
|
)
|
|||||
Private equity distributions
|
—
|
|
|
—
|
|
|
980
|
|
|
—
|
|
|
980
|
|
|||||
Capital contribution
|
(1,475
|
)
|
|
(3,550
|
)
|
|
—
|
|
|
5,025
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
(18
|
)
|
|
(515
|
)
|
|
—
|
|
|
(533
|
)
|
|||||
Net cash flows used for investing activities
|
(1,475
|
)
|
|
(3,582
|
)
|
|
(2,903
|
)
|
|
5,025
|
|
|
(2,935
|
)
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid on Common Shares
|
(1,337
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,337
|
)
|
|||||
Common Shares repurchased
|
—
|
|
|
—
|
|
|
(1,044
|
)
|
|
—
|
|
|
(1,044
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
2,171
|
|
|
—
|
|
|
—
|
|
|
2,171
|
|
|||||
Proceeds from issuance of repurchase agreements
|
—
|
|
|
—
|
|
|
2,029
|
|
|
—
|
|
|
2,029
|
|
|||||
Repayment of long-term debt
|
—
|
|
|
(2,000
|
)
|
|
(1
|
)
|
|
—
|
|
|
(2,001
|
)
|
|||||
Repayment of repurchase agreements
|
—
|
|
|
—
|
|
|
(2,019
|
)
|
|
—
|
|
|
(2,019
|
)
|
|||||
Proceeds from share-based compensation plans
|
—
|
|
|
—
|
|
|
115
|
|
|
—
|
|
|
115
|
|
|||||
Advances (to) from affiliates
|
2,519
|
|
|
(1,744
|
)
|
|
(775
|
)
|
|
—
|
|
|
—
|
|
|||||
Dividends to parent company
|
—
|
|
|
—
|
|
|
(5,308
|
)
|
|
5,308
|
|
|
—
|
|
|||||
Capital contribution
|
—
|
|
|
—
|
|
|
5,025
|
|
|
(5,025
|
)
|
|
—
|
|
|||||
Net payments to affiliated notional cash pooling programs(1)
|
35
|
|
|
502
|
|
|
—
|
|
|
(537
|
)
|
|
—
|
|
|||||
Policyholder contract deposits
|
—
|
|
|
—
|
|
|
453
|
|
|
—
|
|
|
453
|
|
|||||
Policyholder contract withdrawals
|
—
|
|
|
—
|
|
|
(358
|
)
|
|
—
|
|
|
(358
|
)
|
|||||
Net cash flows from (used for) financing activities
|
1,217
|
|
|
(1,071
|
)
|
|
(1,883
|
)
|
|
(254
|
)
|
|
(1,991
|
)
|
|||||
Effect of foreign currency rate changes on cash and restricted cash
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|||||
Net increase (decrease) in cash and restricted cash
|
(2
|
)
|
|
1
|
|
|
1,027
|
|
|
(537
|
)
|
|
489
|
|
|||||
Cash and restricted cash – beginning of year (1)
|
3
|
|
|
1
|
|
|
962
|
|
|
(115
|
)
|
|
851
|
|
|||||
Cash and restricted cash – end of year (1)
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
1,989
|
|
|
$
|
(652
|
)
|
|
$
|
1,340
|
|
(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, 2018 and 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
|
For the Year Ended December 31, 2017
|
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
|
$
|
781
|
|
|
$
|
1,648
|
|
|
$
|
4,598
|
|
|
$
|
(2,524
|
)
|
|
$
|
4,503
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of fixed maturities available for sale
|
—
|
|
|
(9
|
)
|
|
(25,738
|
)
|
|
—
|
|
|
(25,747
|
)
|
|||||
Purchases of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
(352
|
)
|
|
—
|
|
|
(352
|
)
|
|||||
Purchases of equity securities
|
—
|
|
|
—
|
|
|
(173
|
)
|
|
—
|
|
|
(173
|
)
|
|||||
Sales of fixed maturities available for sale
|
—
|
|
|
99
|
|
|
13,156
|
|
|
—
|
|
|
13,255
|
|
|||||
Sales of equity securities
|
—
|
|
|
—
|
|
|
187
|
|
|
—
|
|
|
187
|
|
|||||
Maturities and redemptions of fixed maturities available for sale
|
—
|
|
|
29
|
|
|
10,396
|
|
|
—
|
|
|
10,425
|
|
|||||
Maturities and redemptions of fixed maturities held to maturity
|
—
|
|
|
—
|
|
|
879
|
|
|
—
|
|
|
879
|
|
|||||
Net change in short-term investments
|
—
|
|
|
189
|
|
|
(726
|
)
|
|
—
|
|
|
(537
|
)
|
|||||
Net derivative instruments settlements
|
—
|
|
|
(15
|
)
|
|
(250
|
)
|
|
—
|
|
|
(265
|
)
|
|||||
Private equity contributions
|
—
|
|
|
—
|
|
|
(648
|
)
|
|
—
|
|
|
(648
|
)
|
|||||
Private equity distributions
|
—
|
|
|
—
|
|
|
1,084
|
|
|
—
|
|
|
1,084
|
|
|||||
Other
|
—
|
|
|
(10
|
)
|
|
(520
|
)
|
|
—
|
|
|
(530
|
)
|
|||||
Net cash flows from (used for) investing activities
|
—
|
|
|
283
|
|
|
(2,705
|
)
|
|
—
|
|
|
(2,422
|
)
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid on Common Shares
|
(1,308
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,308
|
)
|
|||||
Common Shares repurchased
|
—
|
|
|
—
|
|
|
(801
|
)
|
|
—
|
|
|
(801
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Proceeds from issuance of repurchase agreements
|
—
|
|
|
—
|
|
|
2,353
|
|
|
—
|
|
|
2,353
|
|
|||||
Repayment of long-term debt
|
—
|
|
|
(500
|
)
|
|
(1
|
)
|
|
—
|
|
|
(501
|
)
|
|||||
Repayment of repurchase agreements
|
—
|
|
|
—
|
|
|
(2,348
|
)
|
|
—
|
|
|
(2,348
|
)
|
|||||
Proceeds from share-based compensation plans
|
—
|
|
|
—
|
|
|
151
|
|
|
—
|
|
|
151
|
|
|||||
Advances (to) from affiliates
|
892
|
|
|
(927
|
)
|
|
35
|
|
|
—
|
|
|
—
|
|
|||||
Dividends to parent company
|
—
|
|
|
—
|
|
|
(2,524
|
)
|
|
2,524
|
|
|
—
|
|
|||||
Net payments to affiliated notional cash pooling programs(1)
|
(363
|
)
|
|
(504
|
)
|
|
—
|
|
|
867
|
|
|
—
|
|
|||||
Policyholder contract deposits
|
—
|
|
|
—
|
|
|
442
|
|
|
—
|
|
|
442
|
|
|||||
Policyholder contract withdrawals
|
—
|
|
|
—
|
|
|
(307
|
)
|
|
—
|
|
|
(307
|
)
|
|||||
Net cash flows used for financing activities
|
(779
|
)
|
|
(1,931
|
)
|
|
(3,000
|
)
|
|
3,391
|
|
|
(2,319
|
)
|
|||||
Effect of foreign currency rate changes on cash and restricted cash
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Net increase (decrease) in cash and restricted cash
|
2
|
|
|
—
|
|
|
(1,106
|
)
|
|
867
|
|
|
(237
|
)
|
|||||
Cash and restricted cash – beginning of year (1)
|
1
|
|
|
1
|
|
|
2,068
|
|
|
(982
|
)
|
|
1,088
|
|
|||||
Cash and restricted cash – end of year (1)
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
962
|
|
|
$
|
(115
|
)
|
|
$
|
851
|
|
(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, 2017 and 2016, 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)
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
2019
|
|
||||
Net premiums earned
|
$
|
7,137
|
|
|
$
|
7,891
|
|
|
$
|
8,327
|
|
|
$
|
7,935
|
|
Net investment income
|
836
|
|
|
859
|
|
|
873
|
|
|
858
|
|
||||
Net realized gains (losses) including OTTI losses
|
(97
|
)
|
|
(223
|
)
|
|
(155
|
)
|
|
(55
|
)
|
||||
Total revenues
|
$
|
7,876
|
|
|
$
|
8,527
|
|
|
$
|
9,045
|
|
|
$
|
8,738
|
|
Losses and loss expenses
|
$
|
4,098
|
|
|
$
|
4,715
|
|
|
$
|
5,052
|
|
|
$
|
4,865
|
|
Policy benefits
|
$
|
196
|
|
|
$
|
161
|
|
|
$
|
158
|
|
|
$
|
225
|
|
Net income
|
$
|
1,040
|
|
|
$
|
1,150
|
|
|
$
|
1,091
|
|
|
$
|
1,173
|
|
Basic earnings per share
|
$
|
2.27
|
|
|
$
|
2.52
|
|
|
$
|
2.40
|
|
|
$
|
2.59
|
|
Diluted earnings per share
|
$
|
2.25
|
|
|
$
|
2.50
|
|
|
$
|
2.38
|
|
|
$
|
2.57
|
|
|
Three Months Ended
|
|
|||||||||||||
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
||||
(in millions of U.S. dollars, except per share data)
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
||||
Net premiums earned
|
$
|
7,027
|
|
|
$
|
7,664
|
|
|
$
|
7,908
|
|
|
$
|
7,465
|
|
Net investment income
|
806
|
|
|
828
|
|
|
823
|
|
|
848
|
|
||||
Net realized gains (losses) including OTTI losses
|
(2
|
)
|
|
18
|
|
|
19
|
|
|
(687
|
)
|
||||
Total revenues
|
$
|
7,831
|
|
|
$
|
8,510
|
|
|
$
|
8,750
|
|
|
$
|
7,626
|
|
Losses and loss expenses
|
$
|
4,102
|
|
|
$
|
4,487
|
|
|
$
|
4,868
|
|
|
$
|
4,610
|
|
Policy benefits
|
$
|
151
|
|
|
$
|
150
|
|
|
$
|
127
|
|
|
$
|
162
|
|
Net income
|
$
|
1,082
|
|
|
$
|
1,294
|
|
|
$
|
1,231
|
|
|
$
|
355
|
|
Basic earnings per share
|
$
|
2.32
|
|
|
$
|
2.78
|
|
|
$
|
2.66
|
|
|
$
|
0.77
|
|
Diluted earnings per share
|
$
|
2.30
|
|
|
$
|
2.76
|
|
|
$
|
2.64
|
|
|
$
|
0.76
|
|
December 31, 2019
(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
|
$
|
3,188
|
|
|
$
|
3,283
|
|
|
$
|
3,283
|
|
Foreign
|
22,670
|
|
|
23,707
|
|
|
23,707
|
|
|||
Corporate securities
|
30,689
|
|
|
31,791
|
|
|
31,791
|
|
|||
Mortgage-backed securities
|
18,712
|
|
|
19,192
|
|
|
19,192
|
|
|||
States, municipalities, and political subdivisions
|
7,321
|
|
|
7,515
|
|
|
7,515
|
|
|||
Total fixed maturities available for sale
|
82,580
|
|
|
85,488
|
|
|
85,488
|
|
|||
Fixed maturities held to maturity
|
|
|
|
|
|
||||||
U.S. Treasury and agency
|
1,318
|
|
|
1,347
|
|
|
1,318
|
|
|||
Foreign
|
1,423
|
|
|
1,485
|
|
|
1,423
|
|
|||
Corporate securities
|
2,349
|
|
|
2,468
|
|
|
2,349
|
|
|||
Mortgage-backed securities
|
2,331
|
|
|
2,396
|
|
|
2,331
|
|
|||
States, municipalities, and political subdivisions
|
5,160
|
|
|
5,309
|
|
|
5,160
|
|
|||
Total fixed maturities held to maturity
|
12,581
|
|
|
13,005
|
|
|
12,581
|
|
|||
Equity securities
|
|
|
|
|
|
||||||
Industrial, miscellaneous, and all other
|
812
|
|
|
812
|
|
|
812
|
|
|||
Short-term investments
|
4,291
|
|
|
4,291
|
|
|
4,291
|
|
|||
Other investments (1)
|
5,915
|
|
|
5,915
|
|
|
5,915
|
|
|||
Total investments - other than investments in related parties
|
$
|
106,179
|
|
|
$
|
109,511
|
|
|
$
|
109,087
|
|
(1)
|
Excludes $147 million of related party investments.
|
|
December 31
|
|
|
December 31
|
|
||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
||
Assets
|
|
|
|
||||
Investments in subsidiaries and affiliates on equity basis
|
$
|
50,853
|
|
|
$
|
43,531
|
|
Total investments
|
50,853
|
|
|
43,531
|
|
||
Cash
|
2
|
|
|
1
|
|
||
Due from subsidiaries and affiliates, net
|
4,776
|
|
|
7,074
|
|
||
Other assets
|
12
|
|
|
3
|
|
||
Total assets
|
$
|
55,643
|
|
|
$
|
50,609
|
|
Liabilities
|
|
|
|
||||
Affiliated notional cash pooling programs (1)
|
$
|
—
|
|
|
$
|
35
|
|
Accounts payable, accrued expenses, and other liabilities
|
312
|
|
|
262
|
|
||
Total liabilities
|
312
|
|
|
297
|
|
||
Shareholders' equity
|
|
|
|
||||
Common Shares
|
11,121
|
|
|
11,121
|
|
||
Common Shares in treasury
|
(3,754
|
)
|
|
(2,618
|
)
|
||
Additional paid-in capital
|
11,203
|
|
|
12,557
|
|
||
Retained earnings
|
36,142
|
|
|
31,700
|
|
||
Accumulated other comprehensive income (loss)
|
619
|
|
|
(2,448
|
)
|
||
Total shareholders' equity
|
55,331
|
|
|
50,312
|
|
||
Total liabilities and shareholders' equity
|
$
|
55,643
|
|
|
$
|
50,609
|
|
(1)
|
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information.
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Revenues
|
|
|
|
|
|
||||||
Investment income (1)
|
$
|
227
|
|
|
$
|
305
|
|
|
$
|
336
|
|
Equity in net income of subsidiaries and affiliates
|
4,307
|
|
|
3,753
|
|
|
3,640
|
|
|||
|
4,534
|
|
|
4,058
|
|
|
3,976
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Administrative and other (income) expense
|
65
|
|
|
63
|
|
|
63
|
|
|||
Chubb integration expenses
|
1
|
|
|
14
|
|
|
32
|
|
|||
Income tax expense
|
14
|
|
|
19
|
|
|
20
|
|
|||
|
80
|
|
|
96
|
|
|
115
|
|
|||
Net income
|
$
|
4,454
|
|
|
$
|
3,962
|
|
|
$
|
3,861
|
|
Comprehensive income
|
$
|
7,521
|
|
|
$
|
1,242
|
|
|
$
|
4,718
|
|
(1)
|
Includes net investment income, interest income, and net realized gains (losses).
|
|
Year Ended December 31
|
|
|||||||||
(in millions of U.S. dollars)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Net cash flows from operating activities (1)
|
$
|
412
|
|
|
$
|
256
|
|
|
$
|
781
|
|
Cash flows from investing activities
|
|
|
|
|
|
||||||
Capital contribution
|
(1,000
|
)
|
|
(1,475
|
)
|
|
—
|
|
|||
Net cash flows used for investing activities
|
(1,000
|
)
|
|
(1,475
|
)
|
|
—
|
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Dividends paid on Common Shares
|
(1,354
|
)
|
|
(1,337
|
)
|
|
(1,308
|
)
|
|||
Common Shares repurchased
|
(327
|
)
|
|
—
|
|
|
—
|
|
|||
Advances from affiliates
|
2,301
|
|
|
2,519
|
|
|
892
|
|
|||
Net proceeds from (payments to) affiliated notional cash pooling programs (2)
|
(35
|
)
|
|
35
|
|
|
(363
|
)
|
|||
Net cash flows from (used for) financing activities
|
585
|
|
|
1,217
|
|
|
(779
|
)
|
|||
Effect of foreign currency rate changes on cash and restricted cash
|
4
|
|
|
—
|
|
|
—
|
|
|||
Net increase (decrease) in cash and restricted cash
|
1
|
|
|
(2
|
)
|
|
2
|
|
|||
Cash and restricted cash – beginning of year
|
1
|
|
|
3
|
|
|
1
|
|
|||
Cash and restricted cash – end of year
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
3
|
|
(1)
|
Includes cash dividends received from subsidiaries of $200 million, $75 million, and $450 million in 2019, 2018, and 2017, respectively.
|
(2)
|
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information.
|
Premiums Earned
|
|
|
|
|
|
|
|
||||||||||||
For the years ended December 31, 2019, 2018, and 2017 (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
|
|
||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Property and Casualty
|
|
$
|
30,339
|
|
|
$
|
7,236
|
|
|
$
|
2,797
|
|
|
$
|
25,900
|
|
|
11
|
%
|
Accident and Health
|
|
4,546
|
|
|
376
|
|
|
119
|
|
|
4,289
|
|
|
3
|
%
|
||||
Life
|
|
991
|
|
|
81
|
|
|
191
|
|
|
1,101
|
|
|
17
|
%
|
||||
Total
|
|
$
|
35,876
|
|
|
$
|
7,693
|
|
|
$
|
3,107
|
|
|
$
|
31,290
|
|
|
10
|
%
|
2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and Casualty
|
|
$
|
28,793
|
|
|
$
|
6,792
|
|
|
$
|
2,812
|
|
|
$
|
24,813
|
|
|
11
|
%
|
Accident and Health
|
|
4,409
|
|
|
342
|
|
|
162
|
|
|
4,229
|
|
|
4
|
%
|
||||
Life
|
|
906
|
|
|
85
|
|
|
201
|
|
|
1,022
|
|
|
20
|
%
|
||||
Total
|
|
$
|
34,108
|
|
|
$
|
7,219
|
|
|
$
|
3,175
|
|
|
$
|
30,064
|
|
|
11
|
%
|
2017
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and Casualty
|
|
$
|
27,774
|
|
|
$
|
6,650
|
|
|
$
|
2,891
|
|
|
$
|
24,015
|
|
|
12
|
%
|
Accident and Health
|
|
4,167
|
|
|
349
|
|
|
221
|
|
|
4,039
|
|
|
5
|
%
|
||||
Life
|
|
841
|
|
|
81
|
|
|
220
|
|
|
980
|
|
|
22
|
%
|
||||
Total
|
|
$
|
32,782
|
|
|
$
|
7,080
|
|
|
$
|
3,332
|
|
|
$
|
29,034
|
|
|
11
|
%
|
As of and for the years ended December 31, 2019, 2018, and 2017 (in millions of U.S. dollars)
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
|
Deferred Policy Acquisition Costs
|
|
|
Net Reserves for Unpaid Losses and Loss Expenses
|
|
|
Unearned Premiums
|
|
|
Net Premiums Earned
|
|
|
Net Investment Income
|
|
Net Losses and Loss Expenses Incurred Related to
|
|
|
Amortization of Deferred Policy Acquisition Costs
|
|
|
Net Paid Losses and Loss Expenses
|
|
|
Net Premiums Written
|
|
|||||||||||||||
|
|
|
|
|
|
|
Current Year
|
|
|
Prior Year
|
|
|
|
|
|||||||||||||||||||||||||||
2019
|
|
$
|
4,161
|
|
|
$
|
48,509
|
|
|
$
|
16,771
|
|
|
$
|
30,189
|
|
|
$
|
3,141
|
|
|
$
|
19,575
|
|
|
$
|
(845
|
)
|
|
$
|
5,831
|
|
|
$
|
18,473
|
|
|
$
|
31,126
|
|
|
2018
|
|
$
|
3,926
|
|
|
$
|
48,271
|
|
|
$
|
15,532
|
|
|
$
|
29,042
|
|
|
$
|
3,047
|
|
|
$
|
19,048
|
|
|
$
|
(981
|
)
|
|
$
|
5,630
|
|
|
$
|
18,340
|
|
|
$
|
29,505
|
|
|
2017
|
|
$
|
3,805
|
|
|
$
|
49,165
|
|
|
$
|
15,216
|
|
|
$
|
28,054
|
|
|
$
|
2,890
|
|
|
$
|
19,391
|
|
|
$
|
(937
|
)
|
|
$
|
5,519
|
|
|
$
|
17,448
|
|
|
$
|
28,225
|
|
•
|
a modification of the purpose of Chubb;
|
•
|
creation of privileged voting shares;
|
•
|
restrictions on the transfer of registered shares and the removal of such restrictions;
|
•
|
restrictions on the exercise of the right to vote and the removal of such restrictions;
|
•
|
an authorized or conditional increase in share capital;
|
•
|
an increase in share capital through the conversions of capital surplus, through a contribution in kind or in exchange for an acquisition of assets, or a grant of special benefits upon a capital increase;
|
•
|
restriction or denial of pre-emptive rights;
|
•
|
a change of the place of incorporation of Chubb;
|
•
|
conversion of registered shares into bearer shares and vice versa;
|
•
|
dissolution of Chubb followed liquidation;
|
•
|
the dismissal of the members of the Board of Directors according to art. 705 para. 1 of the Swiss Code of Obligations;
|
•
|
the amendment or elimination of the provisions of article 8 (shareholder's register, transfer restrictions), article 14 (voting rights and shareholder proxies) and article 15 (resolutions of general meeting) of the Articles of Association; and
|
•
|
any changes to the two-thirds voting requirement to the extent permitted by mandatory law.
|
•
|
the instruments are to be placed at market conditions,
|
•
|
the exercise period is not to exceed ten years from the date of issue for warrants and twenty years for conversion rights, and
|
•
|
the conversion or exercise price for the new shares is to be set at least in line with the market conditions prevailing at the date on which the instruments are issued.
|
•
|
No individual or legal entity may, directly or indirectly, formally, constructively or beneficially own (as defined in Article 14 of Chubb’s Articles of Association) or otherwise control voting rights with respect to 10 percent or more of the registered share capital recorded in the commercial register. Those associated through capital, voting power, joint management or in any other way, or joining for the acquisition of shares, shall be regarded as one person. Persons holding registered shares exceeding the limit of 10 percent shall be entered in the share register, with respect to such excess shares only, as shareholders without voting rights;
|
•
|
The limit of 10 percent of the registered share capital also applies to the subscription for, or acquisition of, registered shares by exercising option or convertible rights arising from registered or bearer securities or any other securities issued by Chubb or third parties, as well as by means of exercising purchased pre-emptive rights arising from either registered or bearer shares. Persons holding registered shares exceeding the limit of 10 percent shall be entered in the share register with respect to such excess shares only as shareholders without voting rights;
|
•
|
The Board of Directors shall reject entry of holders of registered shares as shareholders with voting rights in the share register or shall decide on their deregistration as shareholders with voting rights when the acquirer or shareholder upon request does not expressly state that she/he has acquired or holds the shares in her/his own name and for her/his own account.
|
•
|
0.300 percent Senior Notes due 2024 initially issued in the aggregate principal amount of
|
•
|
0.875 percent Senior Notes due 2027 initially issued in the aggregate principal amount of
|
•
|
1.550 percent Senior Notes due 2028 initially issued in the aggregate principal amount of
|
•
|
0.875 percent Senior Notes due 2029 initially issued in the aggregate principal amount of
|
•
|
1.400 percent Senior Notes due 2031 initially issued in the aggregate principal amount of
|
•
|
2.500 percent Senior Notes due 2038 initially issued in the aggregate principal amount of
|
•
|
Chubb INA’s senior unsecured obligations;
|
•
|
Equal in right of payment with all of Chubb INA’s other unsecured and unsubordinated indebtedness from time to time outstanding; and
|
•
|
Structurally subordinated to all obligations of Chubb INA’s subsidiaries, including claims with respect to trade payables.
|
•
|
Chubb’s senior unsecured obligation;
|
•
|
Equal in right of payment with all of Chubb’s other unsecured and unsubordinated indebtedness from time to time outstanding; and
|
•
|
Structurally subordinated to all obligations of Chubb’s subsidiaries, including claims with respect to trade payables.
|
•
|
100 percent of the principal amount of the Notes being redeemed; and
|
•
|
The sum of the present value of the remaining scheduled payments of principal and interest on the Notes being redeemed that would be due if the Notes to be redeemed matured on the applicable Par Call Date (not including any portion of such payments of interest accrued as of the redemption date) discounted to the redemption date on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate, plus
|
o
|
15 basis points, in the case of the 2024 Notes and 2028 Notes
|
o
|
20 basis points, in the case of the 2027 Notes and 2029 Notes
|
o
|
25 basis points, in the case of the 2031 Notes and 2038 Notes
|
o
|
Plus, in each case, accrued and unpaid interest on the Notes to be redeemed to, but excluding, the redemption date.
|
•
|
default in the payment of any interest on, or any additional amounts payable with respect to, any Chubb INA debt security when the interest or additional amounts become due and payable, and continuance of this default for a period of 30 days;
|
•
|
default in the payment of the principal of or any premium on, or any additional amounts payable with respect to, any Chubb INA debt security when the principal, premium or additional amounts become due and payable either at maturity, upon any redemption, by declaration of acceleration or otherwise;
|
•
|
default in the deposit of any sinking fund payment, when due;
|
•
|
default in the performance, or breach, of any covenant or warranty of Chubb INA or Chubb for the benefit of the holders of the Chubb INA debt securities, and the continuance of this default or breach for a period of 60 days after Chubb INA has received written notice from the holders;
|
•
|
if any event of default under a mortgage, indenture or instrument under which Chubb or Chubb INA may issue, or by which Chubb or Chubb INA may secure or evidence, any indebtedness, including an event of default under any other series of Chubb INA debt securities, whether the indebtedness now exists or is later created or incurred, happens and consists of default in the payment of more than $50,000,000 in principal amount of indebtedness at the maturity of the indebtedness, after giving effect to any applicable grace period, or results in the indebtedness in principal amount in excess of $50,000,000 becoming or being declared due and payable prior to the date on which it would otherwise become due and payable, and this default is not cured or the acceleration is not rescinded or annulled within a period of 30 days after Chubb INA has received written notice;
|
•
|
Chubb INA or Chubb shall fail within 60 days to pay, bond or otherwise discharge any uninsured judgment or court order for the payment of money in excess of $50,000,000, which is not stayed on appeal or is not otherwise being appropriately contested in good faith;
|
•
|
events in bankruptcy, insolvency or reorganization of Chubb INA or Chubb; and
|
•
|
any other event of default, as described in the applicable prospectus supplement. (Section 5.1)
|
|
|
•
|
Annual Retainer Fee of $305,000. Paid $180,000 in restricted stock and $125,000 cash or, at the election of the director, $305,000 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.
|
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, 2019. 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%
|
Scarborough Property Holdings Ltd.
|
Bermuda
|
40%
|
Sovereign Risk Insurance Limited
|
Bermuda
|
100%
|
Chubb Realty Holdings Limited
|
Bermuda
|
100%
|
Freisenbruch Meyer Insurance Ltd.
|
Bermuda
|
40%
|
Freisenbruch-Meyer Insurance Services Ltd.
|
Bermuda
|
40%
|
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%
|
Chubb Underwriting Agencies 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 Capital VI 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 London Aviation Limited
|
England & Wales
|
100%
|
Chubb London Limited
|
England & Wales
|
100%
|
Chubb Company Services Limited
|
England & Wales
|
100%
|
Chubb London Services Limited
|
England & Wales
|
100%
|
Chubb London Group 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%
|
Chubb Tempest Reinsurance Ltd.
|
Bermuda
|
100%
|
ACE Europe Life SE
|
France
|
99.99%
0.01% (Chubb Group Management and Holdings Ltd.) |
Chubb Tempest Reinsurance Ltd. Escritório de Representação No Brasil Ltda.
|
Brazil
|
99.999999%
0.000001% (Chubb Tempest Life Reinsurance Ltd.)
|
ABR Reinsurance Capital Holdings Ltd.
|
Bermuda
|
11.26%
|
Chubb Life Insurance Myanmar Limited
|
Myanmar
|
100%
|
Oasis Investments Ltd.
|
Bermuda
|
66.66%
33.33% (Chubb Bermuda Insurance Ltd.) |
Oasis Investments 2 Ltd.
|
Bermuda
|
66.66%
33.33% (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%
|
Chubb Business Services India LLP
|
India
|
99.9%
0.1% (Chubb India Holdings LLC)
|
DHC Corporation
|
USA (Delaware)
|
100%
|
Pacific Indemnity Company
|
USA (Wisconsin)
|
100%
|
Executive Risk Indemnity Inc.
|
USA (Delaware)
|
100%
|
Executive Risk Specialty Insurance Company
|
USA (Connecticut)
|
100%
|
Chubb Custom Insurance Company
|
USA (New Jersey)
|
100%
|
Chubb India Holdings LLC
|
USA (Delaware)
|
100%
|
Chubb Global Financial Services Corporation
|
USA (Delaware)
|
100%
|
Harbor Island Indemnity Ltd.
|
Bermuda
|
100%
|
Chubb Investment Holdings (Hong Kong) Ltd.
|
China (Hong Kong)
|
100%
|
Chubb Investment Services Limited
|
UK
|
100%
|
Chubb Custom Market Inc.
|
USA (New Jersey)
|
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%
|
Great Northern Insurance Company
|
USA (Indiana)
|
100%
|
Vigilant Insurance Company
|
USA
(New York) |
100%
|
Chubb Financial Solutions (Bermuda) Ltd.
|
Bermuda
|
100%
|
Chubb Insurance Company Limited
|
China
|
100%
|
Chubb European Investment Holdings, SLP
|
Scotland
|
100%
|
Chubb Europe Finance Ltd.
|
England & Wales
|
100%
|
Federal Insurance Company Escritório de Representação no Brasil Ltda.
|
Brazil
|
99.99%
0.01% (Chubb & Son Inc.) |
Chubb Direct Marketing Company Ltd.
|
Korea
|
100%
|
Chubb Life Insurance Korea Company Ltd.
|
Korea
|
100%
|
Combined Insurance Company of America
|
USA (Illinois)
|
100%
|
Combined Life Insurance Company of New York
|
USA (New York)
|
100%
|
Chiewchanwit Company Limited
|
Thailand
|
49%
|
CoverHound, Inc.
|
USA (Delaware)
|
44.72%
55.28% (non-affiliates)
|
Huatai Insurance Group Co., Ltd.
|
China
|
30.931%
(Chubb Group)
5.8293%
(Chubb INA Holdings Inc.)
9.7755% (Chubb Tempest Reinsurance Ltd.) 4.3952% (Chubb US Holdings Inc.)
10.931%
(Chubb Bermuda Insurance Ltd.)
|
Huatai Property & Casualty Insurance Co., Ltd
|
China
|
100%
|
Huatai Life Insurance Co., Ltd.
|
China
|
79.64%
20% (Chubb INA Holdings Inc.)
0.36% (non-Chubb shareholders)
|
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%
|
ESIS, Inc.
|
USA (Pennsylvania)
|
100%
|
Chubb Risk Consulting Group Limited
|
Ireland
|
100%
|
ESIS Canada Inc.
|
Canada (Ontario)
|
100%
|
ESIS Environmental Health and Safety Consulting (Shanghai) Company Limited
|
China (Shanghai)
|
100%
|
ESIS Asia Pacific PTE. Ltd.
|
Singapore
|
100%
|
ESIS Academy PTE. Ltd.
|
Singapore
|
100%
|
Proclaim America, Inc.
|
USA (Texas)
|
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%
|
ACE American Insurance Company
|
USA (Pennsylvania)
|
100%
|
Bankers Standard Insurance Company
|
USA (Pennsylvania)
|
100%
|
Indemnity Insurance Company of North America
|
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, Inc.
|
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%
|
Insurance Company of North America
|
USA (Pennsylvania)
|
100%
|
Chubb & Son Inc.
|
USA
(New York) |
100%
|
Chubb Insurance Solutions Agency Inc.
|
USA
(Delaware) |
100%
|
Chubb Services Corporation
|
USA (Illinois)
|
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%
|
Inversiones Vita S.A.
|
Chile
|
99%
1% (AFIA Finance Corporations, Agencia en Chile)
|
Banchile Seguros de Vida S.A.
|
Chile
|
99.7%
0.3% (AFIA Finance Corporation, Agencia en Chile)
|
SegChile Seguros Generales S.A.
|
Chile
|
99.99%
0.01% (AFIA Finance Corporation, Agencia en Chile)
|
Chubb Fianzas Holdings Inc.
|
USA (Delaware)
|
100%
|
FM Holdco LLC
|
USA (Delaware)
|
100%
|
Chubb Fianzas Monterrey, Aseguradora de
Caución, S.A. |
Mexico
|
99.90%
0.05% (AFIA Finance Corporation) 0.05% (Chubb Global Financial Services Corp.) |
Operadora FMA, S.A. de C.V.
|
Mexico
|
99.99%
0.01% (AFIA Finance Corporation)
|
Chubb Seguros Mexico Holdings Inc.
|
USA (Delaware)
|
100%
|
Ally Insurance Holdings LLC
|
USA (Delaware)
|
100%
|
ABA Mexico Holdings LLC
|
USA (Delaware)
|
100%
|
ABA Garantías S.A. de C.V.
|
Mexico
|
99.99%
0.01% (AFIA Finance Corporation) |
Chubb Seguros México S.A.
|
Mexico
|
99.9999996%
0.0000003% (AFIA Finance Corporation) 0.0000001%
(Chubb Global Financial Services Corporation)
|
ABA Asistencias, S.A. de C.V.
|
Mexico
|
99.998%
0.002% (ABA Garantías S.A. de C.V.) |
Chubb Life Insurance Company Ltd.
|
Bermuda
|
100%
|
Chubb Insurance Malaysia Berhad
|
Malaysia
|
100%
|
INACOMB S.A. de C.V.
|
Mexico
|
99.998%
0.002% (AFIA Finance Corporation)
|
Chubb Holdings Australia Pty Limited
|
Australia
|
100%
|
Chubb Insurance Australia Limited
|
Australia
|
100%
|
PT Chubb Life Insurance Indonesia
|
Indonesia
|
98.21%
|
Chubb Life Insurance Vietnam Company Limited
|
Vietnam
|
100%
|
Chubb Life Fund Management Company Limited
|
Vietnam
|
100%
|
Chubb Insurance Vietnam Company Limited
|
Vietnam
|
100%
|
Chubb Seguros Holdings Chile Inc.
|
USA (Delaware)
|
100%
|
Chubb Seguros Holdings Chile Inc. Agencia en Chile
|
Chile
|
100%
|
Chubb Seguros Chile S.A.
|
Chile
|
3.82437% (Chubb Seguros Holdings Chile Inc. Agencia en Chile)
94.48776% (Chubb INA International Holdings Ltd. Agencia en Chile)
1.01888% (AFIA Finance Corporation Agencia en Chile) 0.64427% (AFIA Finance Corporation Chile Limitada) 0.00109% (Chubb INA Holdings Inc.) 0.02363% (Non-Chubb shareholders) |
Chubb Seguros Brasil S.A.
|
Brazil
|
83.17% 16.82% (DHC Corporation) 0.01% (Chubb Brazil Holdings Ltd.)
|
Chubb Serviços Brasil Ltda
|
Brazil
|
99%
1% (AFIA Finance Corporation) |
Chubb Servicios México, S.A. de C.V.
|
Mexico
|
99.9%
0.1% (AFIA Finance Corporation) |
Chubb Seguros Argentina S.A.
|
Argentina
|
23.4741%
75.7651% (Federal Insurance Company)
0.7561% (AFIA Finance Corporation) 0.0047% (non-Chubb Owners)
|
Chubb INA International Holdings Ltd., Agencia en Chile
|
Chile
|
100%
|
Chubb Seguros de Vida Chile S.A.
|
Chile
|
99.86%
0.14% (AFIA Finance Corporation, Agencia en Chile) |
Ventas Personales Limitada
|
Chile
|
99%
1% (AFIA Finance Corporation Agencia en Chile) |
Chubb Servicios Chile Limitada
|
Chile
|
99%
1.00%(AFIA Finance Corporation Agencia en Chile)
|
PT Chubb General Insurance Indonesia
|
Indonesia
|
80%
20% (PT Adi Citra Mandiri) |
PT Asuransi Chubb Syariah Indonesia
|
Indonesia
|
75%
25% (PT Mitrajaya Amanah Cemerlang)
|
PT Jaya Prima Auto Center
|
Indonesia
|
75%
25%
(non-Chubb affiliates)
|
Chubb INA Overseas Holdings Inc.
|
USA (Delaware)
|
100%
|
Chubb European Holdings Limited
|
UK
|
100%
|
Chubb Underwriting (DIFC) Limited
|
Dubai
|
100%
|
ACE European Holdings No 2 Limited
|
UK
|
100%
|
Chubb Insurance Investment Holdings Limited
|
UK
|
100%
|
Chubb European Group SE
|
France
|
99.99%
0.01% (Chubb EU Holdings Limited)
|
Chubb EU Holdings Limited
|
UK
|
100%
|
Chubb Pension Trustee Limited
|
UK
|
100%
|
Chubb Russia Investments Limited
|
UK
|
99.999999995%
0.000000005%
(Chubb INA Intl. Holdings Ltd.)
|
JSC Russian Reinsurance Company
|
Russia
|
23.34%
|
LLC Chubb Life Insurance Company
|
Russia
|
100%
|
LLC Chubb Insurance Company
|
Russia
|
100%
|
Chubb Seguradora Macau S.A.
|
China (Macau)
|
99.94%
|
Chubb Holdings Limited
|
Cayman Islands
|
100%
|
Chubb Insurance Egypt S.A.E.
|
Egypt
|
98.014%
0.551% (Chubb Services UK Ltd) 0.551% (Chubb European Holdings Ltd) |
Chubb Life Insurance - Egypt 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
|
17.0140717%
|
Chubb Seguros Ecuador S.A.
|
Ecuador
|
99.99%
0.01% (AFIA Finance Corporation)
|
Chubb Seguros Panama S.A.
|
Panama
|
100%
|
Chubb Seguros Péru S.A.
|
Peru
|
99.99%
0.01% (AFIA Finance Corporation)
|
Nam Ek Company Limited
|
Thailand
|
49%
|
Eksupsiri Company Limited
|
Thailand
|
50.99%
49% (Chubb INA International Holdings Ltd) |
Chubb Life Assurance Public Company Limited
|
Thailand
|
75.01%
24.99% (Oriental Equity Holdings) |
Chubb Samaggi Insurance Public Company Limited
|
Thailand
|
99.2868% 0.7132% (non-affiliates)
|
Siam Marketing & Analytics Company Limited
|
Thailand
|
50.99%
49% (Chubb Asia Pacific Services Pte. Limited) |
Siam Liberty Insurance Broker Co., Ltd.
|
Thailand
|
74.8%
24.99% (AFIA Finance Corporation) |
Chubb Insurance South Africa Limited
|
South Africa
|
100%
|
Chubb Insurance New Zealand Limited
|
New Zealand
|
100%
|
Chubb Brazil Holdings Ltd.
|
USA (Delaware)
|
100%
|
Crafts Corretora de Seguros Ltda.
|
Brazil
|
99%
1% (Chubb INA International Holdings Ltd.)
|
Chubb Resseguradora Brasil S.A.
|
Brazil
|
99.99%
0.01% (Chubb INA International Holdings Ltd.)
|
Chubb International Management Corporation
|
USA (Pennsylvania)
|
100%
|
Cover Direct, Inc.
|
USA (Delaware)
|
100%
|
PT Adi Citra Mandiri
|
Indonesia
|
100%
|
Chubb INA G.B. Holdings Ltd
|
USA (Delaware)
|
100%
|
Chubb Services U.K. Limited
|
UK
|
100%
|
Polaris U.K Ltd
|
UK
|
0.451%
|
Century Inversiones, S.A.
|
Panama
|
100%
|
Chubb Insurance Pakistan Limited
|
Pakistan
|
100%
|
ACE INA Overseas Insurance Company Ltd.
|
Bermuda
|
100%
|
Chubb INA Overseas Insurance Company Ltd.
|
Bermuda
|
100%
|
Chubb Insurance Singapore Limited
|
Singapore
|
100%
|
Chubb Insurance Japan
|
Japan
|
100%
|
Chubb SSI Japan
|
Japan
|
100%
|
ACE Marketing Group, C.A.
|
Venezuela
|
100%
|
Chubb Canada Holdings Inc.
|
USA (Delaware)
|
68.47%
31.53%
(ACE INA Overseas Insurance Company Ltd.)
|
Chubb Holdings Canada Ltd.
|
Canada (Ontario)
|
100%
|
Chubb Insurance Company of Canada
|
Canada
|
100%
|
Chubb Life Insurance Company of Canada
|
Canada
|
100%
|
Chubb Tempest Re Canada Inc.
|
Canada
|
100%
|
Chubb Insurance Company of Puerto Rico
|
Puerto Rico
|
100%
|
Chubb Insurance Agency Inc.
|
Puerto Rico
|
100%
|
Chubb Insurance Hong Kong Limited
|
China
(Hong Kong) |
99.99%
0.01% (ACE INA Overseas Insurance Company Ltd.)
|
Chubb Alternative Risk Ltd.
|
Bermuda
|
100%
|
DELPANAMA S.A.
|
Panama
|
100%
|
INAMEX S.A.
|
Mexico
|
100%
|
Oriental Equity Holdings Limited
|
British Virgin Islands
|
100%
|
AFIA Finance Corporation
|
USA (Delaware)
|
100%
|
AFIA Finance Corporation Agencia en Chile
|
Chile
|
100%
|
Inversiones Continental S.A de C.V.
|
Honduras
|
1.29%
|
AFIA Venezolana C.A.
|
Venezuela
|
100%
|
Chubb Servicios S.A.
|
Argentina
|
95%
5% (Chubb INA Int'l Holdings Ltd.)
|
AFIA Finance Corp. Chile Limitada
|
Chile
|
98%
2% (Chubb INA Int'l Holdings Ltd. Agencia Chile) |
Pembroke Reinsurance, Inc.
|
USA (Delaware)
|
100%
|
RIYAD Insurance Co. Ltd.
|
Bermuda
|
80%
|
Chubb Asia Pacific 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
|
100%
|
Chubb US Holdings Inc.
|
USA (Delaware)
|
100%
|
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
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Date: February 27, 2020
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/s/ Evan G. Greenberg
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Evan G. Greenberg
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Chairman, President and Chief Executive Officer
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Date: February 27, 2020
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/s/ Philip V. Bancroft
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Philip V. Bancroft
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Executive Vice President and Chief Financial Officer
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