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• | unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves; |
• | future policy benefits reserves; |
• | the valuation of value of business acquired (VOBA) and amortization of deferred policy acquisition costs and VOBA; |
• | reinsurance recoverable, including a provision for uncollectible reinsurance; |
• | the assessment of risk transfer for certain structured insurance and reinsurance contracts; |
• | the valuation of the investment portfolio and assessment of OTTI; |
• | the valuation of deferred tax assets; |
• | the valuation of derivative instruments related to guaranteed living benefits (GLB); |
• | the valuation and amortization of purchased intangibles; and |
• | the assessment of goodwill for impairment. |
• | For reinsurers that maintain a financial strength rating from a major rating agency, and for which recoverable balances are considered representative of the larger population (i.e., default probabilities are consistent with similarly rated reinsurers and payment durations conform to averages), the financial rating is based on a published source and the default factor is based on published default statistics of a major rating agency applicable to the reinsurer's particular rating class. When a recoverable is expected to be paid in a brief period of time by a highly rated reinsurer, such as certain property catastrophe claims, a default factor may not be applied; |
• | For balances recoverable from reinsurers that are both unrated by a major rating agency and for which management is unable to determine a credible rating equivalent based on a parent, affiliate, or peer company, we determine a rating equivalent based on an analysis of the reinsurer that considers an assessment of the creditworthiness of the particular entity, industry benchmarks, or other factors as considered appropriate. We then apply the applicable default factor for that rating class. For balances recoverable from unrated reinsurers for which the ceded reserve is below a certain threshold, we generally apply a default factor of 34 percent, consistent with published statistics of a major rating agency; |
• | For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting provision for uncollectible reinsurance based on reinsurer-specific facts and circumstances. Upon initial notification of an insolvency, we generally recognize an expense for a substantial portion of all balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the provision for uncollectible reinsurance. When regulatory action is taken on a reinsurer, we generally recognize a default factor by estimating an expected recovery on all balances outstanding, net of collateral. When sufficient credible information becomes available, we adjust the provision for uncollectible reinsurance by establishing a default factor pursuant to information received; and |
• | For other recoverables, management determines the provision for uncollectible reinsurance based on the specific facts and circumstances. |
• | Life insurance policies are carried at policy cash surrender value and income is recorded in Other income (expense). |
• | Policy loans are carried at outstanding balance and interest income is recorded to Net investment income. |
• | Trading securities are recorded on a trade date basis and carried at fair value. Unrealized gains and losses on trading securities are reflected in Other (income) expense. |
• | Other investments over which Chubb can exercise significant influence are accounted for using the equity method and income is recorded in Other (income) expense. |
• | All other investments over which Chubb cannot exercise significant influence are carried at fair value with changes in fair value recognized through OCI. For these investments, investment income is recognized in Net investment income and realized gains are recognized as related distributions are received. |
• | Partially-owned investment companies comprise entities in which we hold an ownership interest in excess of three percent. These investments as well as Chubb's investments in investment funds where our ownership interest is in excess of three percent are accounted for under the equity method because Chubb exerts significant influence. These investments apply investment company accounting to determine operating results, and Chubb retains the investment company accounting in applying the equity method. This means that investment income, realized gains or losses, and unrealized gains or losses are included in the portion of equity earnings reflected in Other (income) expense. As a result of the timing of the receipt of valuation data from the investment managers, these investments are generally reported on a three month lag. |
|
(in millions, except per share data) | |||
Purchase consideration | |||
Chubb Limited common shares | |||
Chubb Corp common shares outstanding | 228 | ||
Per share exchange ratio | 0.6019 | ||
Common shares issued by Chubb Limited | 137 | ||
Common share price of Chubb Limited at January 14, 2016 | $ | 111.02 | |
Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp | $ | 15,204 | |
Cash consideration | |||
Chubb Corp common shares outstanding | 228 | ||
Agreed cash price per share paid to common shareholders of Chubb Corp | $ | 62.93 | |
Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp | $ | 14,319 | |
Stock-based awards | |||
Fair value of equity awards issued (1) | $ | 323 | |
Fair value of purchase consideration | $ | 29,846 | |
Assets acquired and (liabilities) assumed | |||
Cash | $ | 71 | |
Investments | 42,967 | ||
Accrued investment income | 359 | ||
Insurance and reinsurance balances receivable | 3,095 | ||
Reinsurance recoverable on losses and loss expenses | 1,676 | ||
Indefinite lived intangible assets | 2,860 | ||
Finite lived intangible assets | 4,795 | ||
Prepaid reinsurance premiums | 280 | ||
Other assets | 853 | ||
Unpaid losses and loss expenses | (22,923 | ) | |
Unearned premiums | (7,011 | ) | |
Insurance and reinsurance balances payable | (603 | ) | |
Accounts payable, accrued expenses, and other liabilities | (2,030 | ) | |
Deferred tax liabilities | (1,292 | ) | |
Long-term debt | (3,765 | ) | |
Total identifiable net assets acquired | 19,332 | ||
Goodwill | 10,514 | ||
Purchase price | $ | 29,846 |
(1) | The fair value of the replacement equity awards was $525 million, of which $323 million was attributed to service periods prior to the acquisition and was included in the purchase consideration. Refer to Note 12 for further information on these replacement equity awards. |
(in millions of U.S. dollars) | January 14, 2016 to December 31, 2016 | ||
Total revenues | $ | 12,376 | |
Net income | $ | 1,756 |
Year Ended December 31 | |||||||
(in millions of U.S. dollars, except per share data) | 2016 | 2015 | |||||
Total revenues | $ | 31,937 | $ | 32,622 | |||
Net income | $ | 4,183 | $ | 4,478 | |||
Earnings per share | |||||||
Basic earnings per share | $ | 8.95 | $ | 9.61 | |||
Diluted earnings per share | $ | 8.88 | $ | 9.52 |
|
December 31, 2016 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 2,883 | $ | 32 | $ | (45 | ) | $ | 2,870 | $ | — | ||||||||
Foreign | 20,929 | 636 | (125 | ) | 21,440 | (5 | ) | ||||||||||||
Corporate securities | 23,736 | 580 | (167 | ) | 24,149 | (8 | ) | ||||||||||||
Mortgage-backed securities | 14,066 | 135 | (194 | ) | 14,007 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 17,922 | 72 | (345 | ) | 17,649 | — | |||||||||||||
$ | 79,536 | $ | 1,455 | $ | (876 | ) | $ | 80,115 | $ | (14 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 655 | $ | 9 | $ | (3 | ) | $ | 661 | $ | — | ||||||||
Foreign | 640 | 28 | (1 | ) | 667 | — | |||||||||||||
Corporate securities | 2,771 | 50 | (26 | ) | 2,795 | — | |||||||||||||
Mortgage-backed securities | 1,393 | 35 | — | 1,428 | — | ||||||||||||||
States, municipalities, and political subdivisions | 5,185 | 26 | (92 | ) | 5,119 | — | |||||||||||||
$ | 10,644 | $ | 148 | $ | (122 | ) | $ | 10,670 | $ | — |
December 31, 2015 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 2,481 | $ | 52 | $ | (5 | ) | $ | 2,528 | $ | — | ||||||||
Foreign | 13,190 | 468 | (213 | ) | 13,445 | (13 | ) | ||||||||||||
Corporate securities | 15,028 | 355 | (454 | ) | 14,929 | (28 | ) | ||||||||||||
Mortgage-backed securities | 9,827 | 183 | (52 | ) | 9,958 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 2,623 | 110 | (6 | ) | 2,727 | — | |||||||||||||
$ | 43,149 | $ | 1,168 | $ | (730 | ) | $ | 43,587 | $ | (42 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 733 | $ | 13 | $ | (1 | ) | $ | 745 | $ | — | ||||||||
Foreign | 763 | 30 | (8 | ) | 785 | — | |||||||||||||
Corporate securities | 3,054 | 57 | (55 | ) | 3,056 | — | |||||||||||||
Mortgage-backed securities | 1,707 | 38 | (2 | ) | 1,743 | — | |||||||||||||
States, municipalities, and political subdivisions | 2,173 | 52 | (2 | ) | 2,223 | — | |||||||||||||
$ | 8,430 | $ | 190 | $ | (68 | ) | $ | 8,552 | $ | — |
December 31 | December 31 | ||||||||||||||
2016 | 2015 | ||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Available for sale | |||||||||||||||
Due in 1 year or less | $ | 3,892 | $ | 3,913 | $ | 1,856 | $ | 1,865 | |||||||
Due after 1 year through 5 years | 24,027 | 24,429 | 14,936 | 15,104 | |||||||||||
Due after 5 years through 10 years | 27,262 | 27,379 | 12,258 | 12,173 | |||||||||||
Due after 10 years | 10,289 | 10,387 | 4,272 | 4,487 | |||||||||||
65,470 | 66,108 | 33,322 | 33,629 | ||||||||||||
Mortgage-backed securities | 14,066 | 14,007 | 9,827 | 9,958 | |||||||||||
$ | 79,536 | $ | 80,115 | $ | 43,149 | $ | 43,587 | ||||||||
Held to maturity | |||||||||||||||
Due in 1 year or less | $ | 430 | $ | 435 | $ | 492 | $ | 495 | |||||||
Due after 1 year through 5 years | 2,646 | 2,691 | 2,443 | 2,517 | |||||||||||
Due after 5 years through 10 years | 2,969 | 2,944 | 2,292 | 2,313 | |||||||||||
Due after 10 years | 3,206 | 3,172 | 1,496 | 1,484 | |||||||||||
9,251 | 9,242 | 6,723 | 6,809 | ||||||||||||
Mortgage-backed securities | 1,393 | 1,428 | 1,707 | 1,743 | |||||||||||
$ | 10,644 | $ | 10,670 | $ | 8,430 | $ | 8,552 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Cost | $ | 706 | $ | 441 | |||
Gross unrealized appreciation | 129 | 74 | |||||
Gross unrealized depreciation | (21 | ) | (18 | ) | |||
Fair value | $ | 814 | $ | 497 |
• | the amount of time a security has been in a loss position and the magnitude of the loss position; |
• | the period in which cost is expected to be recovered, if at all, based on various criteria including economic conditions and other issuer-specific developments; and |
• | our ability and intent to hold the security to the expected recovery period. |
Moody's Rating Category | 1-in-100 Year Default Rate | Historical Mean Default Rate | |||
Investment Grade: | |||||
Aaa-Baa | 0.0–1.3% | 0.0–0.3% | |||
Below Investment Grade: | |||||
Ba | 4.8 | % | 1.0 | % | |
B | 12.1 | % | 3.2 | % | |
Caa-C | 36.7 | % | 10.5 | % |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Fixed maturities: | |||||||||||
OTTI on fixed maturities, gross | $ | (89 | ) | $ | (142 | ) | $ | (64 | ) | ||
OTTI on fixed maturities recognized in OCI (pre-tax) | 8 | 39 | 7 | ||||||||
OTTI on fixed maturities, net | (81 | ) | (103 | ) | (57 | ) | |||||
Gross realized gains excluding OTTI | 183 | 158 | 213 | ||||||||
Gross realized losses excluding OTTI | (265 | ) | (235 | ) | (133 | ) | |||||
Total fixed maturities | (163 | ) | (180 | ) | 23 | ||||||
Equity securities: | |||||||||||
OTTI on equity securities | (8 | ) | (7 | ) | (8 | ) | |||||
Gross realized gains excluding OTTI | 65 | 47 | 22 | ||||||||
Gross realized losses excluding OTTI | (13 | ) | (11 | ) | (61 | ) | |||||
Total equity securities | 44 | 29 | (47 | ) | |||||||
OTTI on other investments | (14 | ) | (2 | ) | (3 | ) | |||||
Foreign exchange gains (losses) | 118 | (80 | ) | (40 | ) | ||||||
Investment and embedded derivative instruments | (33 | ) | 32 | (107 | ) | ||||||
Fair value adjustments on insurance derivative | 53 | (203 | ) | (217 | ) | ||||||
S&P put options and futures | (136 | ) | (10 | ) | (168 | ) | |||||
Other derivative instruments | (10 | ) | (12 | ) | 50 | ||||||
Other | (4 | ) | 6 | 2 | |||||||
Net realized gains (losses) | (145 | ) | (420 | ) | (507 | ) | |||||
Change in net unrealized appreciation (depreciation) on investments: | |||||||||||
Fixed maturities available for sale | 142 | (1,119 | ) | 734 | |||||||
Fixed maturities held to maturity | (59 | ) | 43 | (2 | ) | ||||||
Equity securities | 52 | (17 | ) | 77 | |||||||
Other | (51 | ) | (36 | ) | 35 | ||||||
Income tax (expense) benefit | 100 | 152 | (167 | ) | |||||||
Change in net unrealized appreciation (depreciation) on investments | 184 | (977 | ) | 677 | |||||||
Total net realized gains (losses) and change in net unrealized appreciation (depreciation) on investments | $ | 39 | $ | (1,397 | ) | $ | 170 |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Balance of credit losses related to securities still held – beginning of year | $ | 53 | $ | 28 | $ | 37 | |||||
Additions where no OTTI was previously recorded | 17 | 41 | 22 | ||||||||
Additions where an OTTI was previously recorded | 14 | 9 | 5 | ||||||||
Reductions for securities sold during the period | (49 | ) | (25 | ) | (36 | ) | |||||
Balance of credit losses related to securities still held – end of year | $ | 35 | $ | 53 | $ | 28 |
December 31 | December 31 | ||||||||||||||
2016 | 2015 | ||||||||||||||
(in millions of U.S. dollars) | Fair Value | Cost | Fair Value | Cost | |||||||||||
Investment funds | $ | 251 | $ | 126 | $ | 269 | $ | 138 | |||||||
Limited partnerships | 730 | 607 | 709 | 542 | |||||||||||
Partially-owned investment companies | 2,645 | 2,645 | 1,498 | 1,498 | |||||||||||
Life insurance policies | 248 | 248 | 222 | 222 | |||||||||||
Policy loans | 209 | 209 | 184 | 184 | |||||||||||
Trading securities | 296 | 295 | 284 | 284 | |||||||||||
Other | 140 | 140 | 125 | 125 | |||||||||||
Total | $ | 4,519 | $ | 4,270 | $ | 3,291 | $ | 2,993 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Carrying Value | Issued Share Capital | Ownership Percentage | Carrying Value | Issued Share Capital | Ownership Percentage | Domicile | ||||||||||||||||
Huatai Group | $ | 447 | $ | 624 | 20 | % | $ | 430 | $ | 624 | 20 | % | China | ||||||||||
Huatai Life Insurance Company | 99 | 428 | 20 | % | 107 | 428 | 20 | % | China | ||||||||||||||
Freisenbruch-Meyer | 8 | 5 | 40 | % | 9 | 5 | 40 | % | Bermuda | ||||||||||||||
Chubb Arabia Cooperative Insurance Company | 13 | 27 | 30 | % | 11 | 27 | 30 | % | Saudi Arabia | ||||||||||||||
Russian Reinsurance Company | 2 | 4 | 23 | % | 2 | 4 | 23 | % | Russia | ||||||||||||||
ABR Reinsurance Ltd. | 97 | 800 | 11 | % | 94 | 800 | 11 | % | Bermuda | ||||||||||||||
Total | $ | 666 | $ | 1,888 | $ | 653 | $ | 1,888 |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 2016 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 2,216 | $ | (48 | ) | $ | — | $ | — | $ | 2,216 | $ | (48 | ) | |||||||||
Foreign | 5,918 | (99 | ) | 386 | (27 | ) | 6,304 | (126 | ) | ||||||||||||||
Corporate securities | 7,021 | (149 | ) | 641 | (44 | ) | 7,662 | (193 | ) | ||||||||||||||
Mortgage-backed securities | 8,638 | (189 | ) | 234 | (5 | ) | 8,872 | (194 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 19,448 | (435 | ) | 49 | (2 | ) | 19,497 | (437 | ) | ||||||||||||||
Total fixed maturities | 43,241 | (920 | ) | 1,310 | (78 | ) | 44,551 | (998 | ) | ||||||||||||||
Equity securities | 199 | (21 | ) | — | — | 199 | (21 | ) | |||||||||||||||
Other investments | 201 | (18 | ) | — | — | 201 | (18 | ) | |||||||||||||||
Total | $ | 43,641 | $ | (959 | ) | $ | 1,310 | $ | (78 | ) | $ | 44,951 | $ | (1,037 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 2015 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 996 | $ | (5 | ) | $ | 153 | $ | (1 | ) | $ | 1,149 | $ | (6 | ) | ||||||||
Foreign | 3,953 | (148 | ) | 436 | (73 | ) | 4,389 | (221 | ) | ||||||||||||||
Corporate securities | 7,518 | (371 | ) | 738 | (138 | ) | 8,256 | (509 | ) | ||||||||||||||
Mortgage-backed securities | 3,399 | (42 | ) | 516 | (12 | ) | 3,915 | (54 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 556 | (6 | ) | 42 | (2 | ) | 598 | (8 | ) | ||||||||||||||
Total fixed maturities | 16,422 | (572 | ) | 1,885 | (226 | ) | 18,307 | (798 | ) | ||||||||||||||
Equity securities | 131 | (18 | ) | — | — | 131 | (18 | ) | |||||||||||||||
Other investments | 210 | (11 | ) | — | — | 210 | (11 | ) | |||||||||||||||
Total | $ | 16,763 | $ | (601 | ) | $ | 1,885 | $ | (226 | ) | $ | 18,648 | $ | (827 | ) |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Fixed maturities | $ | 2,779 | $ | 2,157 | $ | 2,199 | |||||
Short-term investments | 93 | 49 | 45 | ||||||||
Equity securities | 36 | 16 | 33 | ||||||||
Other | 98 | 86 | 94 | ||||||||
Gross investment income | 3,006 | 2,308 | 2,371 | ||||||||
Investment expenses | (141 | ) | (114 | ) | (119 | ) | |||||
Net investment income | $ | 2,865 | $ | 2,194 | $ | 2,252 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Trust funds | $ | 13,880 | $ | 11,862 | |||
Deposits with U.S. regulatory authorities | 2,203 | 1,242 | |||||
Deposits with non-U.S. regulatory authorities | 2,191 | 2,075 | |||||
Assets pledged under repurchase agreements | 1,461 | 1,459 | |||||
Other pledged assets | 435 | 392 | |||||
$ | 20,170 | $ | 17,030 |
|
• | Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets; |
• | Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as |
• | Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants |
% of total GMIB guaranteed value | Year of GMIB eligibility | Maximum annuitization rate(s) (per year) | Maximum annuitization rates based on | ||
67% | First year | 2% - 41% | Actual Experience | ||
Subsequent years | 1% - 78% | ||||
4% | First year | N/A | N/A (1) | ||
Subsequent years | 12%, 78% | Weighted average(2) | |||
29% | First year | 19%, 44% | Weighted average(2) | ||
Subsequent years | 12%, 31% |
• | Reinsured policies allow for policyholders to make periodic withdrawals from their account values without lapsing the policy. The partial withdrawal results in a reduction to the associated guaranteed value that is either equal or proportional to the amount of the reduction in account value. Based on continued emerging experience including age-based behavior, we refined our assumptions around the types of partial withdrawals according to their impact on guaranteed value. This resulted in an increase to the fair value of GLB liabilities generating a realized loss of approximately $167 million. |
• | As lapse experience continued to emerge, we were able to expand our analysis and further refine our assumptions which resulted in a net increase to the fair value of GLB liabilities generating a realized loss of approximately $4 million. |
• | Because of a greater degree of reported experience related to behavior in years subsequent to the first year of annuitization eligibility, we also made several adjustments to our annuitization assumptions, which generally lowered the annuitization rate. In addition, we refined our assumptions to better account for age-based annuitization behavior. The change in annuitization assumptions decreased the fair value of GLB liabilities and generated a realized gain of approximately $221 million. |
December 31, 2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 2,175 | $ | 695 | $ | — | $ | 2,870 | |||||||
Foreign | — | 21,366 | 74 | 21,440 | |||||||||||
Corporate securities | — | 23,468 | 681 | 24,149 | |||||||||||
Mortgage-backed securities | — | 13,962 | 45 | 14,007 | |||||||||||
States, municipalities, and political subdivisions | — | 17,649 | — | 17,649 | |||||||||||
2,175 | 77,140 | 800 | 80,115 | ||||||||||||
Equity securities | 773 | — | 41 | 814 | |||||||||||
Short-term investments | 1,757 | 1,220 | 25 | 3,002 | |||||||||||
Other investments (1) | 384 | 259 | 225 | 868 | |||||||||||
Securities lending collateral | — | 1,092 | — | 1,092 | |||||||||||
Investment derivative instruments | 31 | — | — | 31 | |||||||||||
Other derivative instruments | 3 | — | — | 3 | |||||||||||
Separate account assets | 1,784 | 95 | — | 1,879 | |||||||||||
Total assets measured at fair value (1) | $ | 6,907 | $ | 79,806 | $ | 1,091 | $ | 87,804 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 54 | $ | — | $ | — | $ | 54 | |||||||
Other derivative instruments | — | — | 13 | 13 | |||||||||||
GLB (2) | — | — | 559 | 559 | |||||||||||
Total liabilities measured at fair value | $ | 54 | $ | — | $ | 572 | $ | 626 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,626 million and other investments of $25 million at December 31, 2016 measured using NAV as a practical expedient. |
(2) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. Refer to Note 5 c) for additional information. |
December 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 1,712 | $ | 816 | $ | — | $ | 2,528 | |||||||
Foreign | — | 13,388 | 57 | 13,445 | |||||||||||
Corporate securities | — | 14,755 | 174 | 14,929 | |||||||||||
Mortgage-backed securities | — | 9,905 | 53 | 9,958 | |||||||||||
States, municipalities, and political subdivisions | — | 2,727 | — | 2,727 | |||||||||||
1,712 | 41,591 | 284 | 43,587 | ||||||||||||
Equity securities | 481 | — | 16 | 497 | |||||||||||
Short-term investments | 7,171 | 3,275 | — | 10,446 | |||||||||||
Other investments (1) | 347 | 230 | 212 | 789 | |||||||||||
Securities lending collateral | — | 1,046 | — | 1,046 | |||||||||||
Investment derivative instruments | 12 | — | — | 12 | |||||||||||
Separate account assets | 1,464 | 88 | — | 1,552 | |||||||||||
Total assets measured at fair value (1) | $ | 11,187 | $ | 46,230 | $ | 512 | $ | 57,929 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 13 | $ | — | $ | — | $ | 13 | |||||||
Other derivative instruments | 4 | — | 6 | 10 | |||||||||||
GLB (2) | — | — | 609 | 609 | |||||||||||
Total liabilities measured at fair value | $ | 17 | $ | — | $ | 615 | $ | 632 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,477 million and other investments of $25 million at December 31, 2015 measured using NAV as a practical expedient. |
(2) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. Refer to Note 5 c) for additional information. |
December 31 | December 31 | ||||||||||||||||
2016 | 2015 | ||||||||||||||||
(in millions of U.S. dollars) | Expected Liquidation Period of Underlying Assets | Fair Value | Maximum Future Funding Commitments | Fair Value | Maximum Future Funding Commitments | ||||||||||||
Financial | 5 to 9 Years | $ | 548 | $ | 428 | $ | 300 | $ | 105 | ||||||||
Real Assets | 3 to 7 Years | 536 | 230 | 474 | 140 | ||||||||||||
Distressed | 5 to 9 Years | 485 | 179 | 261 | 218 | ||||||||||||
Private Credit | 3 to 7 Years | 236 | 259 | 265 | 209 | ||||||||||||
Traditional | 3 to 9 Years | 1,550 | 930 | 895 | 152 | ||||||||||||
Vintage | 1 to 2 Years | 21 | 14 | 13 | — | ||||||||||||
Investment funds | Not Applicable | 251 | — | 269 | — | ||||||||||||
$ | 3,627 | $ | 2,040 | $ | 2,477 | $ | 824 |
Investment Category | Consists of investments in private equity funds: | |
Financial | targeting financial services companies such as financial institutions and insurance services worldwide | |
Real Assets | targeting investments related to hard physical assets such as real estate, infrastructure, and natural resources | |
Distressed | targeting distressed corporate debt/credit and equity opportunities in the U.S. | |
Private Credit | targeting privately originated corporate debt investments including senior secured loans and subordinated bonds | |
Traditional | employing traditional private equity investment strategies such as buyout and growth equity globally | |
Vintage | made before 2002 and where the funds’ commitment periods had already expired |
(in millions of U.S. dollars, except for percentages) | Fair Value at December 31, 2016 | Valuation Technique | Significant Unobservable Inputs | Ranges | ||||||
GLB(1) | $ | 559 | Actuarial model | Lapse rate | 3% – 34% | |||||
Annuitization rate | 0% – 78% |
(1) | Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits. |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | ||||||||||||||||||||||||||
Year Ended December 31, 2016 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | — | $ | 212 | $ | 6 | $ | 609 | |||||||||||||||
Transfers into Level 3 | 9 | 53 | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | (24 | ) | (10 | ) | — | — | (50 | ) | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | 1 | 15 | (1 | ) | 2 | — | (2 | ) | — | — | |||||||||||||||||||||
Net Realized Gains/Losses | (6 | ) | (13 | ) | — | 1 | — | 1 | 5 | (50 | ) | ||||||||||||||||||||
Purchases (2) | 70 | 566 | 1 | 27 | 75 | 33 | 2 | — | |||||||||||||||||||||||
Sales | (17 | ) | (59 | ) | (8 | ) | (5 | ) | — | — | — | — | |||||||||||||||||||
Settlements | (16 | ) | (45 | ) | — | — | — | (19 | ) | — | — | ||||||||||||||||||||
Balance, end of year | $ | 74 | $ | 681 | $ | 45 | $ | 41 | $ | 25 | $ | 225 | $ | 13 | $ | 559 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (5 | ) | $ | (11 | ) | $ | — | $ | — | $ | — | $ | 1 | $ | 5 | $ | (50 | ) |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. Refer to Note 5 c) for additional information. |
(2) | Includes acquired invested assets as a result of the Chubb Corp acquisition. |
Assets | Liabilities | ||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Other investments | Other derivative instruments | GLB(1) | |||||||||||||||||||||||
Year Ended December 31, 2015 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||
Balance, beginning of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | 204 | $ | 4 | $ | 406 | |||||||||||||
Transfers into Level 3 | 34 | 16 | — | — | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (2 | ) | (1 | ) | — | 3 | (6 | ) | — | — | |||||||||||||||||
Net Realized Gains/Losses | (1 | ) | (4 | ) | — | (2 | ) | — | 2 | 203 | |||||||||||||||||
Purchases | 15 | 52 | 41 | 13 | 33 | — | — | ||||||||||||||||||||
Sales | (3 | ) | (28 | ) | (2 | ) | — | — | — | — | |||||||||||||||||
Settlements | (8 | ) | (48 | ) | (1 | ) | — | (19 | ) | — | — | ||||||||||||||||
Balance, end of year | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | 212 | $ | 6 | $ | 609 | |||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (1 | ) | $ | (2 | ) | $ | — | $ | (2 | ) | $ | — | $ | 2 | $ | 203 |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $888 million at December 31, 2015 and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $609 million and $406 million, respectively. |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Other derivative instruments | GLB(1) | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Foreign | Corporate securities | MBS | Equity securities | Short-term investments | Other investments | |||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 196 | $ | — | $ | 193 | |||||||||||||||
Transfers into Level 3 | 10 | 37 | — | — | — | — | 2 | — | |||||||||||||||||||||||
Transfers out of Level 3 | (34 | ) | (23 | ) | — | (2 | ) | (7 | ) | — | — | — | |||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (1 | ) | (1 | ) | — | — | — | (1 | ) | — | — | ||||||||||||||||||||
Net Realized Gains/Losses | (3 | ) | (5 | ) | — | — | — | — | 2 | 213 | |||||||||||||||||||||
Purchases | 15 | 73 | 8 | 2 | — | 20 | — | — | |||||||||||||||||||||||
Sales | (4 | ) | (38 | ) | — | (2 | ) | — | — | — | — | ||||||||||||||||||||
Settlements | (5 | ) | (22 | ) | (1 | ) | — | — | (11 | ) | — | — | |||||||||||||||||||
Balance, end of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | — | $ | 204 | $ | 4 | $ | 406 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (4 | ) | $ | (5 | ) | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | 213 |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $663 million at December 31, 2014 and $427 million at December 31, 2013, which includes a fair value derivative adjustment of $406 million and $193 million, respectively. |
December 31, 2016 | Fair Value | Carrying Value | |||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 555 | $ | 106 | $ | — | $ | 661 | $ | 655 | |||||||||
Foreign | — | 667 | — | 667 | 640 | ||||||||||||||
Corporate securities | — | 2,782 | 13 | 2,795 | 2,771 | ||||||||||||||
Mortgage-backed securities | — | 1,428 | — | 1,428 | 1,393 | ||||||||||||||
States, municipalities, and political subdivisions | — | 5,119 | — | 5,119 | 5,185 | ||||||||||||||
Total assets | $ | 555 | $ | 10,102 | $ | 13 | $ | 10,670 | $ | 10,644 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,403 | $ | — | $ | 1,403 | $ | 1,403 | |||||||||
Short-term debt | — | 503 | — | 503 | 500 | ||||||||||||||
Long-term debt | — | 12,998 | — | 12,998 | 12,610 | ||||||||||||||
Trust preferred securities | — | 456 | — | 456 | 308 | ||||||||||||||
Total liabilities | $ | — | $ | 15,360 | $ | — | $ | 15,360 | $ | 14,821 |
December 31, 2015 | Fair Value | Carrying Value | |||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 583 | $ | 162 | $ | — | $ | 745 | $ | 733 | |||||||||
Foreign | — | 785 | — | 785 | 763 | ||||||||||||||
Corporate securities | — | 3,042 | 14 | 3,056 | 3,054 | ||||||||||||||
Mortgage-backed securities | — | 1,743 | — | 1,743 | 1,707 | ||||||||||||||
States, municipalities, and political subdivisions | — | 2,223 | — | 2,223 | 2,173 | ||||||||||||||
Total assets | $ | 583 | $ | 7,955 | $ | 14 | $ | 8,552 | $ | 8,430 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,404 | $ | — | $ | 1,404 | $ | 1,404 | |||||||||
Long-term debt | — | 9,678 | — | 9,678 | 9,389 | ||||||||||||||
Trust preferred securities | — | 446 | — | 446 | 307 | ||||||||||||||
Total liabilities | $ | — | $ | 11,528 | $ | — | $ | 11,528 | $ | 11,100 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Premiums written | |||||||||||
Direct | $ | 31,543 | $ | 19,879 | $ | 20,069 | |||||
Assumed | 3,440 | 3,932 | 3,321 | ||||||||
Ceded | (6,838 | ) | (6,098 | ) | (5,591 | ) | |||||
Net | $ | 28,145 | $ | 17,713 | $ | 17,799 | |||||
Premiums earned | |||||||||||
Direct | $ | 31,811 | $ | 19,355 | $ | 19,555 | |||||
Assumed | 3,744 | 3,676 | 3,336 | ||||||||
Ceded | (6,806 | ) | (5,818 | ) | (5,465 | ) | |||||
Net | $ | 28,749 | $ | 17,213 | $ | 17,426 |
December 31 | December 31 | |||||||
(in millions of U.S. dollars) | 2016 | 2015 | ||||||
Reinsurance recoverable on unpaid losses and loss expenses (1) | $ | 12,708 | $ | 10,741 | ||||
Reinsurance recoverable on paid losses and loss expenses (1) | 869 | 645 | ||||||
Reinsurance recoverable on losses and loss expenses (1) | $ | 13,577 | $ | 11,386 |
(1) | Net of a provision for uncollectible reinsurance. |
December 31, 2016 | Gross Reinsurance Recoverable on Loss and Loss Expenses | Provision for Uncollectible Reinsurance | % of Gross Reinsurance Recoverable | |||||||
(in millions of U.S. dollars, except for percentages) | ||||||||||
Categories | ||||||||||
Largest reinsurers | $ | 5,064 | $ | 59 | 1.2 | % | ||||
Other reinsurers rated A- or better | 4,699 | 52 | 1.1 | % | ||||||
Other reinsurers with ratings lower than A- or not rated | 586 | 70 | 11.9 | % | ||||||
Pools | 577 | 11 | 1.9 | % | ||||||
Structured settlements | 557 | 14 | 2.5 | % | ||||||
Captives | 2,172 | 16 | 0.7 | % | ||||||
Other | 222 | 78 | 35.1 | % | ||||||
Total | $ | 13,877 | $ | 300 | 2.2 | % |
Largest Reinsurers | ||
Alleghany Corp | HDI Group (Hannover Re) | Munich Re Group |
Berkshire Hathaway Insurance Group | Lloyd's of London | Swiss Re Group |
Categories of Chubb's reinsurers | Comprises: | |
Largest reinsurers | • All groups of reinsurers or captives where the gross recoverable exceeds one percent of Chubb's total shareholders' equity. | |
Other reinsurers rated A- or better | • All reinsurers rated A- or better that were not included in the largest reinsurer category. | |
Other reinsurers rated lower than A- or not rated | • All reinsurers rated lower than A- or not rated that were not included in the largest reinsurer category. | |
Pools | • Related to Chubb's voluntary pool participation and Chubb's mandatory pool participation required by law in certain states. | |
Structured settlements | • Annuities purchased from life insurance companies to settle claims. Since we retain ultimate liability in the event that the life company fails to pay, we reflect the amounts as both a liability and a recoverable/receivable for GAAP purposes. | |
Captives | • Companies established and owned by our insurance clients to assume a significant portion of their direct insurance risk from Chubb; structured to allow clients to self-insure a portion of their reinsurance risk. It generally is our policy to obtain collateral equal to expected losses. Where appropriate, exceptions are granted but only with review and approval at a senior officer level. Excludes captives included in the largest reinsurer category. | |
Other | • Amounts recoverable that are in dispute or are from companies that are in supervision, rehabilitation, or liquidation. |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
GMDB | |||||||||||
Net premiums earned | $ | 55 | $ | 61 | $ | 71 | |||||
Policy benefits and other reserve adjustments | $ | 45 | $ | 34 | $ | 50 | |||||
GLB | |||||||||||
Net premiums earned | $ | 118 | $ | 121 | $ | 138 | |||||
Policy benefits and other reserve adjustments | 52 | 45 | 36 | ||||||||
Net realized gains (losses) | 48 | (203 | ) | (213 | ) | ||||||
Gain (loss) recognized in Net income | $ | 114 | $ | (127 | ) | $ | (111 | ) | |||
Net cash received | 79 | 98 | 125 | ||||||||
Net decrease (increase) in liability | $ | 35 | $ | (225 | ) | $ | (236 | ) |
(in millions of U.S. dollars, except for percentages) | Net amount at risk | |||||||||||
Reinsurance covering | 2016 | 2015 | 2016 Future claims discount rate | Other assumptions | Total claims at 100% mortality at December 31, 2016(1) | |||||||
GMDB Risk Only | $ | 341 | $ | 364 | 3.3% - 3.8% | No lapses or withdrawals | $ | 202 | ||||
Mortality according to 100% of the Annuity 2000 mortality table | ||||||||||||
GLB Risk Only | $ | 800 | $ | 733 | 4.3% - 4.8% | No deaths, lapses or withdrawals | N/A | |||||
Annuitization at a frequency most disadvantageous to Chubb(2) | ||||||||||||
Claim calculated using interest rates in line with rates used to calculate reserve | ||||||||||||
Both Risks: (3) | GMDB | $ | 88 | $ | 89 | 4.3% - 4.8% | No lapses or withdrawals | $ | 22 | |||
Mortality according to 100% of the Annuity 2000 mortality table | ||||||||||||
GLB | $ | 464 | $ | 422 | 4.3% - 4.8% | Annuitization at a frequency most disadvantageous to Chubb(2) | N/A | |||||
Claim calculated using interest rates in line with rates used to calculate reserve |
|
(in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Chubb Consolidated | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,211 | $ | — | $ | 134 | $ | 2,366 | $ | 365 | $ | 828 | $ | 4,904 | |||||||||||||
Purchase price allocation adjustment | — | — | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||||
Acquisition of Fireman's Fund | — | 196 | — | — | — | — | 196 | ||||||||||||||||||||
Foreign exchange revaluation and other | (8 | ) | — | — | (284 | ) | — | (8 | ) | (300 | ) | ||||||||||||||||
Balance at December 31, 2015 | $ | 1,203 | $ | 196 | $ | 134 | $ | 2,078 | $ | 365 | $ | 820 | $ | 4,796 | |||||||||||||
Acquisition of Chubb Corp | 5,714 | 2,025 | — | 2,775 | — | — | 10,514 | ||||||||||||||||||||
Foreign exchange revaluation and other | 44 | 14 | — | (36 | ) | — | — | 22 | |||||||||||||||||||
Balance at December 31, 2016 | $ | 6,961 | $ | 2,235 | $ | 134 | $ | 4,817 | $ | 365 | $ | 820 | $ | 15,332 |
(in millions of U.S. dollars) | Purchase price allocation | Estimated useful life | |||
Definite life | |||||
Unearned premium reserves (UPR) intangible asset | $ | 1,550 | 1 year | ||
Agency distribution relationships and renewal rights | 3,150 | 24 years | |||
Internally developed technology | 95 | 3 years | |||
Indefinite life | |||||
Trademarks | 2,800 | Indefinite | |||
Licenses | 50 | Indefinite | |||
Syndicate capacity | 10 | Indefinite | |||
Total identified intangible assets | $ | 7,655 |
Associated with the Chubb Corp Acquisition | |||||||||||||||||||||||
For the Years Ending December 31 (in millions of U.S. dollars) | Agency distribution relationships and renewal rights | Internally developed technology | Fair value adjustment to Unpaid losses and loss expense (1) | Total | Other intangible assets | Total Amortization of purchased intangibles | |||||||||||||||||
2017 | $ | 295 | $ | 32 | $ | (160 | ) | $ | 167 | $ | 84 | $ | 251 | ||||||||||
2018 | 323 | 32 | (101 | ) | 254 | 74 | 328 | ||||||||||||||||
2019 | 280 | — | (62 | ) | 218 | 68 | 286 | ||||||||||||||||
2020 | 239 | — | (35 | ) | 204 | 59 | 263 | ||||||||||||||||
2021 | 217 | — | (20 | ) | 197 | 52 | 249 | ||||||||||||||||
Total | $ | 1,354 | $ | 64 | $ | (378 | ) | $ | 1,040 | $ | 337 | $ | 1,377 |
(1) | In connection with the Chubb Corp acquisition, we recorded an increase to Unpaid losses and loss expenses acquired as part of Chubb Corp of $715 million to adjust the carrying value of Chubb Corp's historical unpaid losses and loss expenses to fair value as of the acquisition date. This fair value adjustment amortizes through Amortization of purchased intangibles on the Consolidated statements of operations over a range of 5 to 17 years. The balance of the fair value adjustment on Unpaid losses and loss expense at December 31, 2016 was $470 million. Refer to Note 1(h) for additional information. |
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Balance, beginning of year | $ | 395 | $ | 466 | $ | 536 | |||||
Amortization of VOBA (1) | (41 | ) | (42 | ) | (51 | ) | |||||
Foreign exchange revaluation | 1 | (29 | ) | (19 | ) | ||||||
Balance, end of year | $ | 355 | $ | 395 | $ | 466 |
(1) | Recognized in Policy acquisition costs in the Consolidated statements of operations. |
For the Year Ending December 31 | VOBA | ||
(in millions of U.S. dollars) | |||
2017 | $ | 35 | |
2018 | 31 | ||
2019 | 27 | ||
2020 | 23 | ||
2021 | 20 | ||
Total | $ | 136 |
|
• | nature and complexity of underlying coverage provided and net limits of exposure provided; |
• | segmentation of data to provide sufficient homogeneity and credibility for loss projection methods; |
• | extent of credible internal historical loss data and reliance upon industry information as required; |
• | historical variability of actual loss emergence compared with expected loss emergence; |
• | extent of emerged loss experience relative to the remaining expected period of loss emergence; |
• | rate monitor information for new and renewal business; |
• | facts and circumstances of large claims; |
• | impact of applicable reinsurance recoveries; and |
• | nature and extent of underlying assumptions. |
• | The nature and complexity of underlying coverage provided and net limits of exposure provided; |
• | Our historical loss data and experience is sometimes too immature and lacking in credibility to rely upon for reserving purposes. Where this is the case, in our reserve analysis we may utilize industry loss ratios or industry benchmark development patterns that we believe reflect the nature and coverage of the underwritten business and its future development, where available. For such product lines, actual loss experience may differ from industry loss statistics as well as loss experience for previous underwriting years; |
• | The difficulty in estimating loss trends, claims inflation (e.g., medical and judicial) and underlying economic conditions; |
• | The need for professional judgment to estimate loss development patterns beyond that represented by historical data using supplemental internal or industry data, extrapolation, or a blend of both; |
• | The need to address shifts in mix over time when applying historical paid and reported loss development patterns from older origin years to more recent origin years. For example, changes over time in the processes and procedures for establishing case reserves can distort reported loss development patterns or changes in ceded reinsurance structures by origin year can alter the development of paid and reported losses; |
• | Loss reserve analyses typically require loss or other data be grouped by common characteristics in some manner. If data from two combined lines of business exhibit different characteristics, such as loss payment patterns, the credibility of the reserve estimate could be affected. Additionally, since casualty lines of business can have significant intricacies in the terms and conditions afforded to the insured, there is an inherent risk as to the homogeneity of the underlying data used in performing reserve analyses; and |
• | The applicability of the price change data used to estimate ultimate loss ratios for most recent origin years. |
• | The incurred loss triangle includes both reported case reserves and IBNR liabilities. |
• | Both the incurred and paid loss triangles include allocated loss adjustment expense (i.e., defense and investigative costs particular to individual claims) but exclude unallocated loss adjustment expense (i.e., the costs associated with internal claims staff and third party administrators). |
• | The amounts in both triangles for the years ended December 31, 2007, to December 31, 2015 and average historical claim duration as of December 31, 2016, are presented as supplementary information. |
• | All data presented in the triangles is net of reinsurance recoveries. |
• | The IBNR reserves shown to the right of each incurred loss development exhibit reflect the net IBNR recorded as of December 31, 2016. |
• | North America Commercial P&C Insurance segment loss experience is presented within four triangular tables: Workers' Compensation, Liability, Other Casualty, and non-Casualty lines. |
• | North America Personal P&C Insurance segment loss experience is presented within one table, since most products are short- tail. |
• | Overseas General Insurance segment loss experience is presented within two tables: Casualty and non-Casualty. |
• | Global Reinsurance segment loss experience is presented within two tables: Property and non-Property. |
• | We underwrite loss portfolio transfers at various times; by convention, all premium and losses associated with these transactions are recorded to the policy period of the transaction, even though the accident dates of the claims covered may be a decade or more in the past. |
• | We underwrite certain high attachment, high limit, multiple-line and excess of aggregate coverages for large commercial clients. Changes in incurred loss and cash flow patterns are volatile and sufficiently different from those of typical insureds. |
• | Reinsurance recoverable bad debt. |
• | Purchase accounting adjustments related to unpaid losses and loss expenses for the Chubb Corp. |
• | High deductible workers' compensation claim counts include claims below the applicable policy deductible. |
• | Professional liability and certain other lines have a high proportion of claims reported which will be closed without any payment; shifts in total reported counts may not meaningfully impact reported and ultimate loss experience. |
• | Claims for certain events and/or product lines, such as portions of assumed reinsurance and A&H business, are not reported on an individual basis, but rather in bulk and thus not available for inclusion in this disclosure. For certain A&H business, where bulk reporting affected only the oldest few accident years, presented claim counts for these years were estimated. |
• | Each of the segments below typically has a mixture of primary and excess experience which has shifted over time. |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,068 | $ | 1,042 | $ | 1,026 | $ | 1,018 | $ | 976 | $ | 943 | $ | 944 | $ | 934 | $ | 933 | $ | 913 | $ | 171 | |||||||||||||||||||||
2008 | 1,018 | 993 | 997 | 991 | 966 | 952 | 952 | 948 | 932 | 185 | |||||||||||||||||||||||||||||||||
2009 | 960 | 933 | 933 | 928 | 908 | 902 | 889 | 877 | 220 | ||||||||||||||||||||||||||||||||||
2010 | 985 | 988 | 1,003 | 1,008 | 1,004 | 994 | 972 | 254 | |||||||||||||||||||||||||||||||||||
2011 | 957 | 963 | 978 | 982 | 984 | 954 | 276 | ||||||||||||||||||||||||||||||||||||
2012 | 956 | 940 | 957 | 967 | 932 | 321 | |||||||||||||||||||||||||||||||||||||
2013 | 1,013 | 1,031 | 1,043 | 1,047 | 374 | ||||||||||||||||||||||||||||||||||||||
2014 | 1,106 | 1,111 | 1,129 | 526 | |||||||||||||||||||||||||||||||||||||||
2015 | 1,179 | 1,157 | 588 | ||||||||||||||||||||||||||||||||||||||||
2016 | 1,259 | 905 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 10,172 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 121 | $ | 281 | $ | 386 | $ | 451 | $ | 502 | $ | 550 | $ | 580 | $ | 606 | $ | 625 | $ | 641 | 351 | |||||||||||||||||||||
2008 | 125 | 276 | 370 | 436 | 500 | 542 | 574 | 602 | 627 | 333 | ||||||||||||||||||||||||||||||||
2009 | 108 | 260 | 347 | 412 | 463 | 506 | 535 | 559 | 283 | |||||||||||||||||||||||||||||||||
2010 | 125 | 303 | 414 | 495 | 548 | 587 | 612 | 304 | ||||||||||||||||||||||||||||||||||
2011 | 119 | 294 | 410 | 480 | 529 | 560 | 287 | |||||||||||||||||||||||||||||||||||
2012 | 111 | 272 | 365 | 435 | 483 | 288 | ||||||||||||||||||||||||||||||||||||
2013 | 107 | 286 | 415 | 499 | 301 | |||||||||||||||||||||||||||||||||||||
2014 | 113 | 296 | 408 | 338 | ||||||||||||||||||||||||||||||||||||||
2015 | 117 | 302 | 338 | |||||||||||||||||||||||||||||||||||||||
2016 | 123 | 275 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,814 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 2,226 | ||
All Accident years | $ | 7,584 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 12 | % | 17 | % | 11 | % | 8 | % | 6 | % | 4 | % | 3 | % | 3 | % | 2 | % | 2 | % |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 3,682 | $ | 3,760 | $ | 3,719 | $ | 3,755 | $ | 3,692 | $ | 3,447 | $ | 3,318 | $ | 3,300 | $ | 3,253 | $ | 3,105 | $ | 249 | |||||||||||||||||||||
2008 | 3,716 | 3,719 | 3,708 | 3,682 | 3,551 | 3,290 | 3,217 | 3,142 | 3,036 | 335 | |||||||||||||||||||||||||||||||||
2009 | 3,682 | 3,630 | 3,599 | 3,556 | 3,454 | 3,205 | 3,130 | 3,060 | 447 | ||||||||||||||||||||||||||||||||||
2010 | 3,507 | 3,468 | 3,495 | 3,474 | 3,334 | 3,169 | 3,045 | 559 | |||||||||||||||||||||||||||||||||||
2011 | 3,437 | 3,498 | 3,525 | 3,539 | 3,472 | 3,360 | 856 | ||||||||||||||||||||||||||||||||||||
2012 | 3,489 | 3,529 | 3,519 | 3,480 | 3,441 | 1,168 | |||||||||||||||||||||||||||||||||||||
2013 | 3,490 | 3,479 | 3,481 | 3,477 | 1,588 | ||||||||||||||||||||||||||||||||||||||
2014 | 3,460 | 3,501 | 3,585 | 1,969 | |||||||||||||||||||||||||||||||||||||||
2015 | 3,502 | 3,668 | 2,639 | ||||||||||||||||||||||||||||||||||||||||
2016 | 3,474 | 3,082 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 33,251 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 76 | $ | 447 | $ | 922 | $ | 1,488 | $ | 1,980 | $ | 2,301 | $ | 2,497 | $ | 2,618 | $ | 2,700 | $ | 2,757 | 21 | |||||||||||||||||||||
2008 | 115 | 471 | 987 | 1,500 | 1,837 | 2,169 | 2,394 | 2,496 | 2,591 | 21 | ||||||||||||||||||||||||||||||||
2009 | 86 | 425 | 979 | 1,460 | 1,813 | 2,118 | 2,307 | 2,461 | 21 | |||||||||||||||||||||||||||||||||
2010 | 97 | 501 | 981 | 1,421 | 1,757 | 2,125 | 2,294 | 20 | ||||||||||||||||||||||||||||||||||
2011 | 111 | 538 | 1,069 | 1,638 | 2,045 | 2,310 | 21 | |||||||||||||||||||||||||||||||||||
2012 | 114 | 532 | 1,028 | 1,535 | 1,953 | 21 | ||||||||||||||||||||||||||||||||||||
2013 | 101 | 468 | 1,089 | 1,489 | 22 | |||||||||||||||||||||||||||||||||||||
2014 | 116 | 576 | 1,124 | 23 | ||||||||||||||||||||||||||||||||||||||
2015 | 117 | 544 | 26 | |||||||||||||||||||||||||||||||||||||||
2016 | 142 | 19 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 17,665 |
North America Commercial P&C Insurance — Liability (continued) | ||||
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 1,726 | ||
All Accident years | $ | 17,312 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 3 | % | 12 | % | 16 | % | 15 | % | 12 | % | 10 | % | 6 | % | 4 | % | 3 | % | 2 | % |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 726 | $ | 682 | $ | 659 | $ | 630 | $ | 611 | $ | 611 | $ | 599 | $ | 591 | $ | 597 | $ | 596 | $ | 24 | |||||||||||||||||||||
2008 | 903 | 942 | 910 | 879 | 856 | 856 | 849 | 853 | 847 | 18 | |||||||||||||||||||||||||||||||||
2009 | 718 | 710 | 665 | 640 | 593 | 557 | 548 | 546 | 16 | ||||||||||||||||||||||||||||||||||
2010 | 737 | 736 | 727 | 668 | 639 | 606 | 608 | 27 | |||||||||||||||||||||||||||||||||||
2011 | 696 | 717 | 703 | 675 | 659 | 651 | 40 | ||||||||||||||||||||||||||||||||||||
2012 | 748 | 714 | 682 | 668 | 633 | 60 | |||||||||||||||||||||||||||||||||||||
2013 | 619 | 640 | 632 | 621 | 121 | ||||||||||||||||||||||||||||||||||||||
2014 | 655 | 658 | 651 | 176 | |||||||||||||||||||||||||||||||||||||||
2015 | 538 | 525 | 211 | ||||||||||||||||||||||||||||||||||||||||
2016 | 563 | 408 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,241 |
North America Commercial P&C Insurance — Other Casualty (continued) | ||||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 112 | $ | 274 | $ | 379 | $ | 452 | $ | 489 | $ | 527 | $ | 540 | $ | 547 | $ | 558 | $ | 564 | 24 | |||||||||||||||||||||
2008 | 210 | 464 | 604 | 690 | 748 | 777 | 798 | 807 | 815 | 25 | ||||||||||||||||||||||||||||||||
2009 | 106 | 281 | 378 | 432 | 471 | 500 | 511 | 520 | 20 | |||||||||||||||||||||||||||||||||
2010 | 144 | 334 | 430 | 481 | 517 | 560 | 571 | 21 | ||||||||||||||||||||||||||||||||||
2011 | 131 | 335 | 455 | 522 | 561 | 585 | 23 | |||||||||||||||||||||||||||||||||||
2012 | 108 | 307 | 413 | 484 | 538 | 24 | ||||||||||||||||||||||||||||||||||||
2013 | 115 | 292 | 372 | 452 | 21 | |||||||||||||||||||||||||||||||||||||
2014 | 113 | 289 | 387 | 22 | ||||||||||||||||||||||||||||||||||||||
2015 | 80 | 205 | 20 | |||||||||||||||||||||||||||||||||||||||
2016 | 74 | 17 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,711 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 241 | ||
All Accident years | $ | 1,771 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 19 | % | 29 | % | 16 | % | 11 | % | 7 | % | 5 | % | 2 | % | 1 | % | 1 | % | 1 | % |
North America Commercial P&C Insurance — Non-Casualty (continued) | |||||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,271 | $ | 1,190 | $ | 1,181 | $ | 1,168 | $ | 1,151 | $ | 1,137 | $ | 1,138 | $ | 1,139 | $ | 1,138 | $ | 1,139 | $ | — | |||||||||||||||||||||
2008 | 1,927 | 1,880 | 1,852 | 1,836 | 1,845 | 1,849 | 1,859 | 1,846 | 1,845 | 29 | |||||||||||||||||||||||||||||||||
2009 | 1,366 | 1,395 | 1,367 | 1,357 | 1,356 | 1,353 | 1,355 | 1,369 | 28 | ||||||||||||||||||||||||||||||||||
2010 | 1,509 | 1,568 | 1,486 | 1,442 | 1,432 | 1,424 | 1,420 | 15 | |||||||||||||||||||||||||||||||||||
2011 | 1,985 | 1,957 | 1,922 | 1,916 | 1,895 | 1,915 | 43 | ||||||||||||||||||||||||||||||||||||
2012 | 2,069 | 1,971 | 1,938 | 1,909 | 1,901 | 53 | |||||||||||||||||||||||||||||||||||||
2013 | 1,487 | 1,446 | 1,359 | 1,383 | 73 | ||||||||||||||||||||||||||||||||||||||
2014 | 1,755 | 1,755 | 1,681 | 103 | |||||||||||||||||||||||||||||||||||||||
2015 | 1,839 | 1,828 | 281 | ||||||||||||||||||||||||||||||||||||||||
2016 | 2,012 | 828 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 16,493 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 563 | $ | 987 | $ | 1,076 | $ | 1,117 | $ | 1,124 | $ | 1,126 | $ | 1,130 | $ | 1,133 | $ | 1,134 | $ | 1,135 | 906 | |||||||||||||||||||||
2008 | 929 | 1,607 | 1,708 | 1,766 | 1,797 | 1,800 | 1,807 | 1,813 | 1,813 | 995 | ||||||||||||||||||||||||||||||||
2009 | 630 | 1,118 | 1,213 | 1,268 | 1,280 | 1,322 | 1,332 | 1,335 | 1,067 | |||||||||||||||||||||||||||||||||
2010 | 703 | 1,231 | 1,335 | 1,374 | 1,394 | 1,400 | 1,401 | 1,054 | ||||||||||||||||||||||||||||||||||
2011 | 942 | 1,585 | 1,742 | 1,822 | 1,832 | 1,856 | 1,045 | |||||||||||||||||||||||||||||||||||
2012 | 727 | 1,612 | 1,745 | 1,810 | 1,830 | 1,027 | ||||||||||||||||||||||||||||||||||||
2013 | 630 | 1,119 | 1,241 | 1,291 | 1,068 | |||||||||||||||||||||||||||||||||||||
2014 | 833 | 1,405 | 1,539 | 1,095 | ||||||||||||||||||||||||||||||||||||||
2015 | 712 | 1,334 | 1,164 | |||||||||||||||||||||||||||||||||||||||
2016 | 852 | 1,098 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 14,386 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 143 | ||
All Accident years | $ | 2,250 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 46 | % | 37 | % | 7 | % | 4 | % | 1 | % | 1 | % | — | % | — | % | — | % | — | % |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,549 | $ | 1,538 | $ | 1,460 | $ | 1,431 | $ | 1,416 | $ | 1,411 | $ | 1,402 | $ | 1,400 | $ | 1,398 | $ | 1,398 | $ | 6 | |||||||||||||||||||||
2008 | 1,777 | 1,777 | 1,746 | 1,722 | 1,693 | 1,675 | 1,667 | 1,659 | 1,659 | 6 | |||||||||||||||||||||||||||||||||
2009 | 1,608 | 1,595 | 1,565 | 1,551 | 1,543 | 1,536 | 1,536 | 1,532 | 9 | ||||||||||||||||||||||||||||||||||
2010 | 1,868 | 1,876 | 1,853 | 1,836 | 1,832 | 1,828 | 1,823 | 11 | |||||||||||||||||||||||||||||||||||
2011 | 2,205 | 2,207 | 2,183 | 2,171 | 2,162 | 2,158 | 17 | ||||||||||||||||||||||||||||||||||||
2012 | 2,183 | 2,181 | 2,181 | 2,189 | 2,183 | 25 | |||||||||||||||||||||||||||||||||||||
2013 | 1,855 | 1,883 | 1,891 | 1,894 | 29 | ||||||||||||||||||||||||||||||||||||||
2014 | 2,202 | 2,203 | 2,189 | 141 | |||||||||||||||||||||||||||||||||||||||
2015 | 2,491 | 2,546 | 213 | ||||||||||||||||||||||||||||||||||||||||
2016 | 2,437 | 609 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 19,819 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 843 | $ | 1,182 | $ | 1,267 | $ | 1,328 | $ | 1,353 | $ | 1,370 | $ | 1,377 | $ | 1,384 | $ | 1,387 | $ | 1,387 | 127 | |||||||||||||||||||||
2008 | 974 | 1,406 | 1,518 | 1,584 | 1,620 | 1,636 | 1,642 | 1,644 | 1,648 | 139 | ||||||||||||||||||||||||||||||||
2009 | 886 | 1,234 | 1,345 | 1,437 | 1,484 | 1,501 | 1,511 | 1,519 | 125 | |||||||||||||||||||||||||||||||||
2010 | 1,152 | 1,521 | 1,669 | 1,727 | 1,770 | 1,792 | 1,803 | 149 | ||||||||||||||||||||||||||||||||||
2011 | 1,358 | 1,833 | 1,969 | 2,049 | 2,103 | 2,127 | 168 | |||||||||||||||||||||||||||||||||||
2012 | 1,175 | 1,804 | 1,955 | 2,061 | 2,115 | 173 | ||||||||||||||||||||||||||||||||||||
2013 | 1,040 | 1,500 | 1,683 | 1,782 | 126 | |||||||||||||||||||||||||||||||||||||
2014 | 1,308 | 1,762 | 1,923 | 134 | ||||||||||||||||||||||||||||||||||||||
2015 | 1,497 | 2,081 | 137 | |||||||||||||||||||||||||||||||||||||||
2016 | 1,452 | 120 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 17,837 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 39 | ||
All Accident years | $ | 2,021 |
North America Personal P&C Insurance (continued) | |||||||||||||||||||||||||||||
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 59 | % | 24 | % | 7 | % | 4 | % | 2 | % | 1 | % | 1 | % | — | % | — | % | — | % |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,136 | $ | 1,174 | $ | 1,180 | $ | 1,163 | $ | 1,080 | $ | 1,021 | $ | 932 | $ | 888 | $ | 867 | $ | 848 | $ | 21 | |||||||||||||||||||||
2008 | 1,189 | 1,301 | 1,386 | 1,389 | 1,398 | 1,360 | 1,290 | 1,273 | 1,267 | 105 | |||||||||||||||||||||||||||||||||
2009 | 1,214 | 1,357 | 1,400 | 1,414 | 1,411 | 1,300 | 1,195 | 1,191 | 124 | ||||||||||||||||||||||||||||||||||
2010 | 1,170 | 1,203 | 1,280 | 1,349 | 1,284 | 1,239 | 1,118 | 162 | |||||||||||||||||||||||||||||||||||
2011 | 1,239 | 1,232 | 1,222 | 1,217 | 1,140 | 1,062 | 240 | ||||||||||||||||||||||||||||||||||||
2012 | 1,253 | 1,196 | 1,257 | 1,278 | 1,269 | 373 | |||||||||||||||||||||||||||||||||||||
2013 | 1,229 | 1,219 | 1,231 | 1,274 | 537 | ||||||||||||||||||||||||||||||||||||||
2014 | 1,242 | 1,286 | 1,285 | 626 | |||||||||||||||||||||||||||||||||||||||
2015 | 1,186 | 1,252 | 719 | ||||||||||||||||||||||||||||||||||||||||
2016 | 1,181 | 914 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,747 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 95 | $ | 287 | $ | 425 | $ | 550 | $ | 631 | $ | 680 | $ | 715 | $ | 743 | $ | 776 | $ | 787 | 37 | |||||||||||||||||||||
2008 | 120 | 295 | 455 | 618 | 759 | 859 | 931 | 986 | 1,036 | 37 | ||||||||||||||||||||||||||||||||
2009 | 119 | 330 | 505 | 642 | 734 | 791 | 860 | 950 | 36 | |||||||||||||||||||||||||||||||||
2010 | 106 | 266 | 461 | 602 | 707 | 794 | 843 | 38 | ||||||||||||||||||||||||||||||||||
2011 | 88 | 240 | 382 | 511 | 610 | 686 | 39 | |||||||||||||||||||||||||||||||||||
2012 | 74 | 243 | 422 | 569 | 677 | 40 | ||||||||||||||||||||||||||||||||||||
2013 | 87 | 260 | 413 | 555 | 41 | |||||||||||||||||||||||||||||||||||||
2014 | 114 | 289 | 459 | 41 | ||||||||||||||||||||||||||||||||||||||
2015 | 93 | 283 | 41 | |||||||||||||||||||||||||||||||||||||||
2016 | 129 | 29 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,405 |
Overseas General Insurance — Casualty (continued) | ||||
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 339 | ||
All Accident years | $ | 5,681 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 9 | % | 15 | % | 14 | % | 12 | % | 9 | % | 7 | % | 5 | % | 5 | % | 4 | % | 1 | % |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,224 | $ | 1,214 | $ | 1,209 | $ | 1,191 | $ | 1,189 | $ | 1,165 | $ | 1,181 | $ | 1,178 | $ | 1,177 | $ | 1,184 | $ | 5 | |||||||||||||||||||||
2008 | 1,364 | 1,360 | 1,318 | 1,294 | 1,302 | 1,287 | 1,284 | 1,280 | 1,269 | 14 | |||||||||||||||||||||||||||||||||
2009 | 1,315 | 1,288 | 1,203 | 1,176 | 1,160 | 1,143 | 1,143 | 1,137 | 8 | ||||||||||||||||||||||||||||||||||
2010 | 1,434 | 1,449 | 1,424 | 1,424 | 1,413 | 1,400 | 1,392 | 30 | |||||||||||||||||||||||||||||||||||
2011 | 1,665 | 1,728 | 1,677 | 1,644 | 1,631 | 1,620 | 1 | ||||||||||||||||||||||||||||||||||||
2012 | 1,472 | 1,473 | 1,442 | 1,401 | 1,400 | 43 | |||||||||||||||||||||||||||||||||||||
2013 | 1,530 | 1,521 | 1,474 | 1,436 | 59 | ||||||||||||||||||||||||||||||||||||||
2014 | 1,601 | 1,664 | 1,622 | 63 | |||||||||||||||||||||||||||||||||||||||
2015 | 1,705 | 1,812 | 192 | ||||||||||||||||||||||||||||||||||||||||
2016 | 1,685 | 424 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 14,557 |
Overseas General Insurance — Non-Casualty (continued) | ||||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 426 | $ | 861 | $ | 1,032 | $ | 1,091 | $ | 1,124 | $ | 1,140 | $ | 1,147 | $ | 1,152 | $ | 1,159 | $ | 1,164 | 183 | |||||||||||||||||||||
2008 | 479 | 985 | 1,120 | 1,183 | 1,206 | 1,215 | 1,225 | 1,233 | 1,233 | 206 | ||||||||||||||||||||||||||||||||
2009 | 449 | 882 | 1,010 | 1,073 | 1,096 | 1,106 | 1,113 | 1,116 | 234 | |||||||||||||||||||||||||||||||||
2010 | 523 | 1,028 | 1,218 | 1,278 | 1,316 | 1,328 | 1,334 | 252 | ||||||||||||||||||||||||||||||||||
2011 | 631 | 1,272 | 1,465 | 1,519 | 1,549 | 1,563 | 268 | |||||||||||||||||||||||||||||||||||
2012 | 553 | 1,050 | 1,233 | 1,290 | 1,311 | 283 | ||||||||||||||||||||||||||||||||||||
2013 | 569 | 1,088 | 1,272 | 1,301 | 281 | |||||||||||||||||||||||||||||||||||||
2014 | 622 | 1,209 | 1,394 | 269 | ||||||||||||||||||||||||||||||||||||||
2015 | 692 | 1,315 | 256 | |||||||||||||||||||||||||||||||||||||||
2016 | 789 | 191 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,520 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 65 | ||
All Accident years | $ | 2,102 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 39 | % | 37 | % | 12 | % | 4 | % | 2 | % | 1 | % | 1 | % | — | % | — | % | — | % |
Global Reinsurance — Property (continued) | |||||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 107 | $ | 106 | $ | 97 | $ | 91 | $ | 90 | $ | 88 | $ | 87 | $ | 87 | $ | 87 | $ | 86 | $ | 2 | |||||||||||||||||||||
2008 | 223 | 214 | 206 | 206 | 206 | 208 | 210 | 209 | 208 | — | |||||||||||||||||||||||||||||||||
2009 | 99 | 113 | 105 | 105 | 103 | 100 | 100 | 100 | — | ||||||||||||||||||||||||||||||||||
2010 | 155 | 179 | 173 | 172 | 178 | 179 | 180 | 6 | |||||||||||||||||||||||||||||||||||
2011 | 227 | 224 | 224 | 220 | 221 | 222 | 1 | ||||||||||||||||||||||||||||||||||||
2012 | 175 | 154 | 149 | 142 | 141 | 4 | |||||||||||||||||||||||||||||||||||||
2013 | 117 | 117 | 109 | 105 | (2 | ) | |||||||||||||||||||||||||||||||||||||
2014 | 125 | 142 | 142 | 6 | |||||||||||||||||||||||||||||||||||||||
2015 | 98 | 105 | 9 | ||||||||||||||||||||||||||||||||||||||||
2016 | 143 | 29 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,432 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 23 | $ | 65 | $ | 77 | $ | 81 | $ | 84 | $ | 85 | $ | 85 | $ | 86 | $ | 86 | $ | 86 | 0.215 | |||||||||||||||||||||
2008 | 65 | 139 | 169 | 194 | 205 | 207 | 208 | 208 | 208 | 0.157 | ||||||||||||||||||||||||||||||||
2009 | 41 | 79 | 90 | 95 | 96 | 98 | 98 | 98 | 0.107 | |||||||||||||||||||||||||||||||||
2010 | 40 | 137 | 157 | 167 | 171 | 173 | 173 | 0.095 | ||||||||||||||||||||||||||||||||||
2011 | 75 | 151 | 175 | 198 | 214 | 217 | 0.103 | |||||||||||||||||||||||||||||||||||
2012 | 29 | 95 | 117 | 125 | 129 | 0.084 | ||||||||||||||||||||||||||||||||||||
2013 | 38 | 85 | 98 | 103 | 0.097 | |||||||||||||||||||||||||||||||||||||
2014 | 56 | 112 | 127 | 0.081 | ||||||||||||||||||||||||||||||||||||||
2015 | 50 | 87 | 0.086 | |||||||||||||||||||||||||||||||||||||||
2016 | 50 | 0.087 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,278 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | — | ||
All Accident years | $ | 154 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 33 | % | 41 | % | 12 | % | 8 | % | 4 | % | 1 | % | — | % | — | % | — | % | — | % |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 655 | $ | 670 | $ | 670 | $ | 641 | $ | 620 | $ | 606 | $ | 581 | $ | 570 | $ | 564 | $ | 558 | $ | 70 | |||||||||||||||||||||
2008 | 488 | 512 | 528 | 513 | 503 | 480 | 480 | 475 | 474 | 55 | |||||||||||||||||||||||||||||||||
2009 | 356 | 404 | 404 | 409 | 401 | 383 | 365 | 354 | 35 | ||||||||||||||||||||||||||||||||||
2010 | 442 | 472 | 479 | 485 | 472 | 467 | 457 | 84 | |||||||||||||||||||||||||||||||||||
2011 | 449 | 461 | 474 | 472 | 467 | 458 | 67 | ||||||||||||||||||||||||||||||||||||
2012 | 440 | 437 | 440 | 440 | 425 | 30 | |||||||||||||||||||||||||||||||||||||
2013 | 359 | 363 | 362 | 361 | 54 | ||||||||||||||||||||||||||||||||||||||
2014 | 367 | 367 | 373 | 69 | |||||||||||||||||||||||||||||||||||||||
2015 | 328 | 333 | 87 | ||||||||||||||||||||||||||||||||||||||||
2016 | 256 | 141 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,049 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 52 | $ | 122 | $ | 200 | $ | 267 | $ | 318 | $ | 363 | $ | 393 | $ | 417 | $ | 437 | $ | 445 | 1.470 | |||||||||||||||||||||
2008 | 46 | 113 | 187 | 239 | 286 | 319 | 343 | 362 | 373 | 1.292 | ||||||||||||||||||||||||||||||||
2009 | 49 | 109 | 151 | 191 | 224 | 246 | 265 | 278 | 0.921 | |||||||||||||||||||||||||||||||||
2010 | 71 | 149 | 209 | 253 | 283 | 315 | 331 | 0.877 | ||||||||||||||||||||||||||||||||||
2011 | 80 | 171 | 227 | 270 | 304 | 330 | 0.796 | |||||||||||||||||||||||||||||||||||
2012 | 93 | 202 | 260 | 301 | 334 | 0.677 | ||||||||||||||||||||||||||||||||||||
2013 | 72 | 158 | 206 | 247 | 0.417 | |||||||||||||||||||||||||||||||||||||
2014 | 99 | 199 | 240 | 0.428 | ||||||||||||||||||||||||||||||||||||||
2015 | 95 | 173 | 0.370 | |||||||||||||||||||||||||||||||||||||||
2016 | 63 | 0.118 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,814 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 357 | ||
All Accident years | $ | 1,592 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 18 | % | 19 | % | 13 | % | 11 | % | 8 | % | 7 | % | 5 | % | 4 | % | 3 | % | 2 | % |
Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Net unpaid loss and allocated loss adjustment expense: | ||||
North America Commercial P&C Insurance — Workers' Compensation | $ | 7,584 | ||
North America Commercial P&C Insurance — Liability | 17,312 | |||
North America Commercial P&C Insurance — Other Casualty | 1,771 | |||
North America Commercial P&C Insurance — Non-Casualty | 2,250 | |||
North America Personal P&C Insurance | 2,021 | |||
Overseas General Insurance — Casualty | 5,681 | |||
Overseas General Insurance — Non-Casualty | 2,102 | |||
Global Reinsurance — Property | 154 | |||
Global Reinsurance — Non-Property | 1,592 | |||
Other (1) | 4,837 | |||
Net unpaid loss and allocated loss adjustment expense | 45,304 | |||
Ceded unpaid loss and allocated loss adjustment expense: | ||||
North America Commercial P&C Insurance — Workers' Compensation | $ | 1,872 | ||
North America Commercial P&C Insurance — Liability | 4,273 | |||
North America Commercial P&C Insurance — Other Casualty | 437 | |||
North America Commercial P&C Insurance — Non-Casualty | 555 | |||
North America Personal P&C Insurance | 168 | |||
Overseas General Insurance — Casualty | 2,617 | |||
Overseas General Insurance — Non-Casualty | 968 | |||
Global Reinsurance — Property | 11 | |||
Global Reinsurance — Non-Property | 114 | |||
Other (1) | 1,825 | |||
Ceded unpaid loss and allocated loss adjustment expense | 12,840 | |||
Net unpaid loss and loss expense on other than short-duration contracts (2) | 741 | |||
Unpaid unallocated loss adjustment expenses | 1,655 | |||
Unpaid losses and loss expenses | $ | 60,540 |
Year Ended December 31 | ||||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | |||||||||
Gross unpaid losses and loss expenses, beginning of year | $ | 37,303 | $ | 38,315 | $ | 37,443 | ||||||
Reinsurance recoverable on unpaid losses (1) | (10,741 | ) | (11,307 | ) | (10,612 | ) | ||||||
Net unpaid losses and loss expenses, beginning of year | 26,562 | 27,008 | 26,831 | |||||||||
Acquisition of subsidiaries | 21,402 | 417 | 320 | |||||||||
Total | 47,964 | 27,425 | 27,151 | |||||||||
Net losses and loss expenses incurred in respect of losses occurring in: | ||||||||||||
Current year | 17,256 | 10,030 | 10,176 | |||||||||
Prior years (2) | (1,204 | ) | (546 | ) | (527 | ) | ||||||
Total | 16,052 | 9,484 | 9,649 | |||||||||
Net losses and loss expenses paid in respect of losses occurring in: | ||||||||||||
Current year | 5,899 | 4,053 | 3,975 | |||||||||
Prior years | 9,816 | 5,612 | 5,260 | |||||||||
Total | 15,715 | 9,665 | 9,235 | |||||||||
Foreign currency revaluation and other | (469 | ) | (682 | ) | (557 | ) | ||||||
Net unpaid losses and loss expenses, end of year | 47,832 | 26,562 | 27,008 | |||||||||
Reinsurance recoverable on unpaid losses (1) | 12,708 | 10,741 | 11,307 | |||||||||
Gross unpaid losses and loss expenses, end of year | $ | 60,540 | $ | 37,303 | $ | 38,315 | ||||||
(1) Net of provision for uncollectible reinsurance. | ||||||||||||
(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums. |
• | Net favorable development of $650 million in long-tail business, primarily from: |
• | Net favorable development of $264 million in our commercial excess and umbrella portfolios, primarily in accident years 2010 and prior, driven by lower than expected reported loss activity and an increase in weighting towards experience-based methods; in general, the severity of claims has been less than expected; |
• | Net favorable development of $220 million in our management liability portfolios, where paid and reported loss activity was lower than expected. The majority of this favorable activity impacted accident years 2011 and prior. Partially offsetting this were smaller amounts of adverse development in the more recent accident years, mostly as a result of higher severity claim costs compared to prior expectations in some lines; |
• | Net favorable development of $141 million in our workers’ compensation lines with favorable development of $40 million in the 2015 accident year related to our annual assessment of multi-claimant events including industrial accidents. Favorable development of $92 million driven by accident years 2012 and prior was principally due to lower than expected loss experience and revision to the basis for selecting development patterns used in our loss projection methods for select portfolios; and |
• | Favorable development of $58 million in our professional Errors & Omission (E&O) portfolios, primarily impacting the 2012 and prior accident years and arising from both lower than expected reported loss activity and re-assessments of remaining claim-specific liabilities for the older accident years. |
• | Net favorable development of $128 million in short-tail business, primarily from: |
• | Net favorable development of $79 million in our property and inland marine portfolios, primarily impacting the 2014 and 2015 accident years, resulting from lower than expected loss emergence; and |
• | Net favorable development of $39 million in our credit-related businesses, including surety, trade credit and political risk, mainly due to favorable claim emergence in the 2012 and 2014 accident years. |
• | Net favorable development of $155 million in long-tail business, primarily from: |
• | Net favorable development of $108 million in our management and professional liability portfolios, primarily impacting accident years 2010 and prior. Lower than expected paid and reported loss activity led to reductions in our estimates of ultimate loss for these accident years; |
• | Favorable development of $32 million in our auto liability excess lines and $26 million in our general liability product lines primarily impacting the 2010 accident year, resulting from lower than expected loss emergence and an increase in weighting applied to experience-based methods; |
• | Net favorable development of $21 million in our workers’ compensation lines with favorable development of $52 million in the 2014 accident year related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the end of the accident year to allow for late reporting or identification of significant losses. Adverse development of $29 million was experienced on the 2009 and prior accident years due to a combination of claim-specific deteriorations and higher than expected loss emergence. There was also adverse development on the 2014 accident year due to revised account-level estimates, which were higher than our original aggregate expectations; and |
• | Net adverse development of $33 million in our commercial umbrella and excess portfolios, primarily impacting accident years 2010 and 2011. Higher than expected reported loss activity, combined with an increase in weighting applied to experience-based methods, led to increased provisions in accident years 2010 and 2011, which was partly offset by the recognition of favorable emergence in the 2009 and prior accident years. |
• | Net favorable development of $109 million in short-tail business, primarily from: |
• | Favorable development of $34 million in our excess property business primarily impacting the 2013 accident year. Paid and reported loss activity was lower than expected leading to reductions in our estimate of ultimate loss; and |
• | Favorable development of $37 million in our credit-related business due to lower than expected claims emergence primarily in the 2013 accident year. |
• | Net favorable development of $191 million in long-tail business, primarily from: |
• | Net favorable development of $165 million, primarily in casualty and financial lines, with favorable development of $257 million in accident years 2012 and prior, resulting from lower than expected loss emergence, and adverse development of $92 million in accident years 2013 to 2015, primarily due to large loss experience in our D&O portfolio in Asia and financial lines in Europe; and |
• | Favorable development of $25 million on an individual legacy liability case reserve take-down. This release follows a legal analysis completed in 2016, based on court opinion in the year and discussions with defense counsel, which concluded that these reserves were no longer required. |
• | Net favorable development of $232 million in short-tail business, primarily from: |
• | Favorable development of $97 million in property (including technical lines), primarily from favorable Continental Europe loss emergence in accident years 2012 through 2014; |
• | Favorable development of $43 million in energy lines, driven by favorable loss emergence in accident years 2010 through 2014, primarily in offshore where experience on multi-year construction accounts has been better than expected, as well as a claims review of catastrophe impacts on underwriting years 2004 through 2008; |
• | Favorable development of $28 million in accident & health (A&H) lines, due to lower than expected loss emergence, primarily in Asia Pacific and Continental Europe in accident years 2013 through 2015; and |
• | Favorable development of $28 million in aviation lines due to lower than expected loss emergence and case-specific reserve reductions impacting accident years 2012 and prior. |
• | Net favorable development of $166 million in long-tail business, primarily from: |
• | Net favorable development of $140 million, primarily in casualty and financial lines with favorable development of $175 million in accident years 2011 and prior, resulting from lower than expected loss emergence, and adverse development of $35 million in accident years 2012 to 2014, primarily due to large loss experience in the U.K. and Europe; and |
• | Favorable development of $26 million on an individual legacy liability case reserve take-down. This release follows a legal analysis completed in 2015, based on court opinion in the year and discussions with defense counsel, which concluded that these reserves were no longer required. |
• | Favorable development of $177 million in short-tail business primarily from: |
• | Favorable development of $90 million in property, technical, energy and marine lines from specific claims and additional credibility assigned to accident years 2013 and prior favorable indications; |
• | Favorable development of $34 million in A&H business primarily in accident year 2013 and 2014 across all regions and products, none of which was individually significant; and |
• | Favorable development of $26 million in consumer business primarily in Latin America and Asia Pacific, resulting from favorable development and additional credibility assigned to accident years 2012 and 2013. |
• | Net favorable development of $42 million in casualty lines primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence; and |
• | Net favorable development of $30 million in professional liability lines primarily impacting treaty years 2011 and prior due to lower than expected loss emergence. |
• | Favorable development of $54 million comprising $42 million in long-tail lines and $12 million in short-tail lines, on an individual legacy liability case reserve take-down. This release follows a legal analysis completed in 2015, based on court opinion and discussions with defense counsel, which concluded that these reserves were no longer required; |
• | Favorable development of $33 million in professional liability lines, including medical malpractice business, primarily in treaty years 2010 and prior reflecting favorable paid and incurred loss trends and an increase in weighting applied to experience-based methods; and |
• | Favorable development of $23 million in casualty lines, principally in treaty years 2009 and prior reflecting favorable paid and incurred loss trends and an increase in weighting applied to experience-based methods. |
• | Adverse development of $141 million in asbestos, environmental, and other run-off liabilities primarily arose as a result of the annual review of individual accounts and case specific exposures, with account changes driven by recent frequency and severity trends, certain case specific settlements and higher than expected defense spending; and |
• | Adverse development of $48 million on unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in 2016. |
• | Adverse development of $170 million in our Westchester and Brandywine run-off operations, related to the completion of reserve reviews during 2015, impacting accident years 1996 and prior. The development primarily arose from case specific settlements and higher than expected remediation expense and defense costs for environmental claims and increases in indemnity and defense costs on a select number of modeled accounts for asbestos. Further, we experienced higher than expected loss emergence on certain portfolios in our assumed reinsurance book and in other run-off lines; and |
• | Adverse development of $30 million on unallocated loss adjustment expenses due to run-off operating expenses paid and incurred during 2015. |
Asbestos | Environmental | Total | |||||||||||||||||||||||
(in millions of U.S. dollars) | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
Balance at December 31, 2015 | $ | 1,351 | $ | 831 | $ | 199 | $ | 149 | $ | 1,550 | $ | 980 | |||||||||||||
Acquired reserves | 488 | 468 | 371 | 354 | 859 | 822 | |||||||||||||||||||
Incurred activity | 311 | 95 | 104 | 69 | 415 | 164 | (1) | ||||||||||||||||||
Paid activity | (424 | ) | (275 | ) | (97 | ) | (82 | ) | (521 | ) | (357 | ) | |||||||||||||
Balance at December 31, 2016 | $ | 1,726 | $ | 1,119 | $ | 577 | $ | 490 | $ | 2,303 | $ | 1,609 |
December 31 | |||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Brandywine operations | $ | 760 | $ | 782 | |||
Westchester Specialty | 112 | 115 | |||||
Chubb Corp | 657 | — | |||||
Other, mainly Overseas General Insurance | 80 | 83 | |||||
Total | $ | 1,609 | $ | 980 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Pre-tax income: | |||||||||||
Switzerland | $ | 766 | $ | 469 | $ | 404 | |||||
Outside Switzerland | 4,184 | 2,827 | 3,083 | ||||||||
Total pre-tax income | $ | 4,950 | $ | 3,296 | $ | 3,487 | |||||
Provision for income taxes: | |||||||||||
Current tax expense: | |||||||||||
Switzerland | $ | 97 | $ | 38 | $ | 31 | |||||
Outside Switzerland | 727 | 266 | 450 | ||||||||
Total current tax expense | 824 | 304 | 481 | ||||||||
Deferred tax expense: | |||||||||||
Switzerland | (27 | ) | 4 | 9 | |||||||
Outside Switzerland | 18 | 154 | 144 | ||||||||
Total deferred tax expense | (9 | ) | 158 | 153 | |||||||
Provision for income taxes | $ | 815 | $ | 462 | $ | 634 |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Expected tax provision at Swiss statutory tax rate | $ | 388 | $ | 258 | $ | 273 | |||||
Permanent differences: | |||||||||||
Taxes on earnings subject to rate other than Swiss statutory rate | 582 | 193 | 224 | ||||||||
Change to deferred taxes related to unrealized foreign exchange losses(1) | — | — | 139 | ||||||||
Tax-exempt interest and dividends received deduction, net of proration | (200 | ) | (32 | ) | (33 | ) | |||||
Net withholding taxes | 20 | 35 | 33 | ||||||||
Change in valuation allowance(1) | (1 | ) | 2 | (20 | ) | ||||||
Other | 26 | 6 | 18 | ||||||||
Total provision for income taxes | $ | 815 | $ | 462 | $ | 634 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 (1) | |||||
Deferred tax assets: | |||||||
Loss reserve discount | $ | 1,269 | $ | 663 | |||
Unearned premiums reserve | 498 | 190 | |||||
Foreign tax credits | 2,115 | 969 | |||||
Provision for uncollectible balances | 72 | 65 | |||||
Loss carry-forwards | 92 | 72 | |||||
Debt related amounts | 219 | 3 | |||||
Compensation related amounts | 449 | 189 | |||||
Cumulative translation adjustments | 59 | 17 | |||||
Other, net | 69 | 80 | |||||
Total deferred tax assets | 4,842 | 2,248 | |||||
Deferred tax liabilities: | |||||||
Deferred policy acquisition costs | 842 | 412 | |||||
Other intangible assets, including VOBA | 2,352 | 384 | |||||
Un-remitted foreign earnings | 2,001 | 827 | |||||
Investments | 406 | 6 | |||||
Unrealized appreciation on investments | 60 | 195 | |||||
Depreciation | 91 | 68 | |||||
Total deferred tax liabilities | 5,752 | 1,892 | |||||
Valuation allowance | 78 | 38 | |||||
Net deferred tax assets (liabilities) | $ | (988 | ) | $ | 318 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Balance, beginning of year | $ | 16 | $ | 23 | |||
Additions based on tax positions related to the current year | 3 | 1 | |||||
Additions based on tax positions related to prior years (1) | 2 | — | |||||
Reductions for tax positions of prior years | (4 | ) | (7 | ) | |||
Reductions for the lapse of the applicable statutes of limitations | — | (1 | ) | ||||
Balance, end of year | $ | 17 | $ | 16 |
|
December 31 | December 31 | ||||||||
(in millions of U.S. dollars) | 2016 | 2015 | Early Redemption Option | ||||||
Repurchase agreements (weighted average interest rate of 0.8% in 2016 and 0.6% in 2015) | $ | 1,403 | $ | 1,404 | None | ||||
Short-term debt | |||||||||
Chubb INA senior notes: | |||||||||
$500 million 5.7% due February 2017 | $ | 500 | $ | — | Make-whole premium plus 0.20% | ||||
Long-term debt | |||||||||
Chubb INA senior notes: | |||||||||
$500 million 5.7% due February 2017 | $ | — | $ | 500 | Make-whole premium plus 0.20% | ||||
$300 million 5.8% due March 2018 | 300 | 299 | Make-whole premium plus 0.35% | ||||||
$600 million 5.75% due May 2018 | 635 | — | Make-whole premium plus 0.30% | ||||||
$100 million 6.6% due August 2018 | 107 | — | None | ||||||
$500 million 5.9% due June 2019 | 498 | 497 | Make-whole premium plus 0.40% | ||||||
$1,300 million 2.3% due November 2020 | 1,294 | 1,294 | Make-whole premium plus 0.15% | ||||||
$1,000 million 2.875% due November 2022 | 994 | 994 | Make-whole premium plus 0.20% | ||||||
$475 million 2.7% due March 2023 | 471 | 471 | Make-whole premium plus 0.10% | ||||||
$700 million 3.35% due May 2024 | 695 | 694 | Make-whole premium plus 0.15% | ||||||
$800 million 3.15% due March 2025 | 794 | 794 | Make-whole premium plus 0.15% | ||||||
$1,500 million 3.35% due May 2026 | 1,488 | 1,487 | Make-whole premium plus 0.20% | ||||||
$100 million 8.875% due August 2029 | 100 | 100 | None | ||||||
$200 million 6.8% due November 2031 | 257 | — | Make-whole premium plus 0.25% | ||||||
$300 million 6.7% due May 2036 | 297 | 297 | Make-whole premium plus 0.20% | ||||||
$800 million 6.0% due May 2037 | 980 | — | Make-whole premium plus 0.20% | ||||||
$600 million 6.5% due May 2038 | 776 | — | Make-whole premium plus 0.30% | ||||||
$475 million 4.15% due March 2043 | 469 | 469 | Make-whole premium plus 0.15% | ||||||
$1,500 million 4.35% due November 2045 | 1,482 | 1,482 | Make-whole premium plus 0.25% | ||||||
Chubb INA $1,000 million 6.375% capital securities due March 2067(1) | 962 | — | Make-whole premium plus 0.25%-0.50% | ||||||
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020) | 11 | 11 | None | ||||||
Total long-term debt | $ | 12,610 | $ | 9,389 | |||||
Trust preferred securities | |||||||||
Chubb INA capital securities due April 2030 | $ | 308 | $ | 307 | Redemption prices(2) |
(1) | 6.375% interest rate through April 14, 2017; interest rate equal to three-month LIBOR rate plus 2.25% thereafter. |
(2) | Redemption prices are equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the capital securities from the redemption date to April 1, 2030. |
|
December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||
Consolidated Balance Sheet Location | Fair Value | Notional Value/ Payment Provision | Fair Value | Notional Value/ Payment Provision | ||||||||||||||||||||||
Derivative Asset | Derivative (Liability) | Derivative Asset | Derivative (Liability) | |||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||
Investment and embedded derivative instruments | ||||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 25 | $ | (50 | ) | $ | 2,220 | $ | 7 | $ | (11 | ) | $ | 1,029 | |||||||||||
Cross-currency swaps | OA / (AP) | — | — | 95 | — | — | 95 | |||||||||||||||||||
Options/Futures contracts on notes and bonds | OA / (AP) | 6 | (4 | ) | 2,344 | 5 | (2 | ) | 751 | |||||||||||||||||
Convertible securities(1) | FM AFS/ES | 2 | — | 7 | 31 | — | 40 | |||||||||||||||||||
$ | 33 | $ | (54 | ) | $ | 4,666 | $ | 43 | $ | (13 | ) | $ | 1,915 | |||||||||||||
Other derivative instruments | ||||||||||||||||||||||||||
Futures contracts on equities(2) | OA / (AP) | $ | 1 | $ | — | $ | 1,316 | $ | — | $ | (4 | ) | $ | 1,197 | ||||||||||||
Other | OA / (AP) | 2 | (13 | ) | 214 | — | (6 | ) | 15 | |||||||||||||||||
$ | 3 | $ | (13 | ) | $ | 1,530 | $ | — | $ | (10 | ) | $ | 1,212 | |||||||||||||
GLB(3) | (AP) / (FPB) | $ | — | $ | (853 | ) | $ | 1,264 | $ | — | $ | (888 | ) | $ | 1,155 |
(1) | Includes fair value of embedded derivatives. |
(2) | Related to GMDB and GLB blocks of business. |
(3) | Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 c) for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts. |
Remaining contractual maturity | |||||||
Overnight and Continuous | |||||||
(in millions of U.S. dollars) | December 31 2016 | December 31 2015 | |||||
Collateral held under securities lending agreements: | |||||||
Cash | $ | 423 | $ | 424 | |||
U.S. Treasury and agency | 54 | 67 | |||||
Foreign | 578 | 296 | |||||
Corporate securities | 37 | 2 | |||||
Equity securities | — | 257 | |||||
$ | 1,092 | $ | 1,046 | ||||
Gross amount of recognized liability for securities lending payable | $ | 1,093 | $ | 1,047 | |||
Difference(1) | $ | (1 | ) | $ | (1 | ) |
(1) | The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable due to accrued interest recorded in the securities lending payable. |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||
Remaining contractual maturity | Remaining contractual maturity | ||||||||||||||||||||||||||
Up to 30 Days | Greater than 90 Days | Up to 30 Days | 30 - 90 Days | Greater than 90 Days | Total | ||||||||||||||||||||||
(in millions of U.S. dollars) | Total | ||||||||||||||||||||||||||
Collateral pledged under repurchase agreements: | |||||||||||||||||||||||||||
Cash | $ | — | $ | 1 | $ | 1 | $ | 34 | $ | — | $ | — | $ | 34 | |||||||||||||
U.S. Treasury and agency | 230 | 10 | 240 | 6 | — | 231 | 237 | ||||||||||||||||||||
Mortgage-backed securities | 339 | 881 | 1,220 | 365 | 480 | 343 | 1,188 | ||||||||||||||||||||
$ | 569 | $ | 892 | $ | 1,461 | $ | 405 | $ | 480 | $ | 574 | $ | 1,459 | ||||||||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,403 | $ | 1,404 | |||||||||||||||||||||||
Difference(1) | $ | 58 | $ | 55 |
(1) | Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Investment and embedded derivative instruments | |||||||||||
Foreign currency forward contracts | $ | (31 | ) | $ | 31 | $ | 29 | ||||
All other futures contracts and options | (10 | ) | 9 | (118 | ) | ||||||
Convertible securities(1) | 8 | (8 | ) | (18 | ) | ||||||
Total investment and embedded derivative instruments | $ | (33 | ) | $ | 32 | $ | (107 | ) | |||
GLB and other derivative instruments | |||||||||||
GLB(2) | $ | 53 | $ | (203 | ) | $ | (217 | ) | |||
Futures contracts on equities(3) | (136 | ) | (8 | ) | (164 | ) | |||||
Options on equity market indices(3) | — | (2 | ) | (4 | ) | ||||||
Other | (10 | ) | (12 | ) | 50 | ||||||
Total GLB and other derivative instruments | $ | (93 | ) | $ | (225 | ) | $ | (335 | ) | ||
$ | (126 | ) | $ | (193 | ) | $ | (442 | ) |
(1) | Includes embedded derivatives. |
(2) | Excludes foreign exchange gains (losses) related to GLB. |
(3) | Related to GMDB and GLB blocks of business. |
For the years ending December 31 | |||
(in millions of U.S. dollars) | |||
2017 | $ | 173 | |
2018 | 149 | ||
2019 | 118 | ||
2020 | 93 | ||
2021 | 78 | ||
Thereafter | 186 | ||
Total minimum future lease commitments | $ | 797 |
|
• | The amendment of the pension plan and excess pension plan resulted in a pre-tax curtailment gain of $113 million immediately recognized in income during the fourth quarter of 2016 as it reduced expected years of future service of active plan participants. |
• | The amendment of the retiree healthcare plan resulted in a reduction in the obligation of $383 million, of which $15 million pre-tax was recognized in income during the fourth quarter of 2016 and the remaining balance will be amortized as a reduction to expense over the next 4.5 years as it relates to benefits already accrued. |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 10 | $ | 559 | $ | 10 | $ | 584 | $ | 16 | $ | — | $ | 16 | $ | — | |||||||||||||||
Acquisition of Chubb Corp | 3,153 | 372 | — | — | 491 | 15 | — | — | |||||||||||||||||||||||
Service cost | 75 | 18 | — | 6 | 9 | 1 | 1 | — | |||||||||||||||||||||||
Interest cost | 103 | 30 | — | 21 | 16 | 1 | — | — | |||||||||||||||||||||||
Actuarial loss | 131 | 204 | — | 13 | 33 | 3 | (1 | ) | — | ||||||||||||||||||||||
Benefits paid | (79 | ) | (22 | ) | — | (22 | ) | (11 | ) | — | — | — | |||||||||||||||||||
Amendments | — | (9 | ) | — | 1 | (410 | ) | — | — | — | |||||||||||||||||||||
Curtailments | (259 | ) | (7 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Settlements | (99 | ) | (7 | ) | — | (7 | ) | — | — | — | — | ||||||||||||||||||||
Foreign currency revaluation | — | (113 | ) | — | (37 | ) | — | 1 | — | — | |||||||||||||||||||||
Benefit obligation, end of year | $ | 3,035 | $ | 1,025 | $ | 10 | $ | 559 | $ | 144 | $ | 21 | $ | 16 | $ | — | |||||||||||||||
Plan assets at fair value, beginning of year | $ | 9 | $ | 564 | $ | 9 | $ | 579 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Acquisition of Chubb Corp | 2,473 | 315 | — | — | 138 | — | — | — | |||||||||||||||||||||||
Actual return on plan assets | 359 | 168 | — | 40 | 29 | — | — | — | |||||||||||||||||||||||
Employer contributions | 98 | 67 | — | 10 | 3 | — | — | — | |||||||||||||||||||||||
Benefits paid | (79 | ) | (22 | ) | — | (22 | ) | (11 | ) | — | — | — | |||||||||||||||||||
Settlements | (95 | ) | (7 | ) | — | (7 | ) | — | — | — | — | ||||||||||||||||||||
Foreign currency revaluation | — | (123 | ) | — | (36 | ) | — | — | — | — | |||||||||||||||||||||
Plan assets at fair value, end of year | $ | 2,765 | $ | 962 | $ | 9 | $ | 564 | $ | 159 | $ | — | $ | — | $ | — | |||||||||||||||
Funded status at end of year | $ | (270 | ) | $ | (63 | ) | $ | (1 | ) | $ | 5 | $ | 15 | $ | (21 | ) | $ | (16 | ) | $ | — |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
2016 | 2015 | 2016 | |||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | (207 | ) | $ | 156 | $ | — | $ | 107 | $ | 14 | $ | 3 | ||||||||||
Prior service cost | — | (2 | ) | — | 7 | (395 | ) | — | |||||||||||||||
Total | $ | (207 | ) | $ | 154 | $ | — | $ | 114 | $ | (381 | ) | $ | 3 |
Pension Benefits | Other Postretirement Benefits | ||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||
December 31, 2016 | |||||||||||
Discount rate | 4.14 | % | 2.83 | % | 2.86 | % | 3.73 | % | |||
Rate of compensation increase | 4.00 | % | 3.57 | % | N/A | N/A | |||||
December 31, 2015 | |||||||||||
Discount rate | NM | 3.61 | % | NM | |||||||
Rate of compensation increase | NM | 3.05 | % | NM | |||||||
NM – not meaningful |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Year Ended December 31, 2016 | U.S. Plans | Non-U.S. Plans | Total | U.S. Plans | Non-U.S. Plans | Total | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | 75 | $ | 18 | $ | 93 | $ | 9 | $ | 1 | $ | 10 | |||||||||||
Interest cost | 103 | 30 | 133 | 16 | 1 | 17 | |||||||||||||||||
Expected return on plan assets | (165 | ) | (39 | ) | (204 | ) | (8 | ) | — | (8 | ) | ||||||||||||
Amortization of net actuarial loss (gain) | — | 2 | 2 | (1 | ) | — | (1 | ) | |||||||||||||||
Amortization of prior service cost | — | (1 | ) | (1 | ) | (15 | ) | — | (15 | ) | |||||||||||||
Curtailments | (117 | ) | — | (117 | ) | — | — | — | |||||||||||||||
Settlements | (2 | ) | 1 | (1 | ) | — | — | — | |||||||||||||||
Net periodic (benefit) cost | $ | (106 | ) | $ | 11 | $ | (95 | ) | $ | 1 | $ | 2 | $ | 3 | |||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | (326 | ) | $ | 49 | $ | (277 | ) | $ | 14 | $ | 3 | $ | 17 | |||||||||
Prior service benefit | — | (8 | ) | (8 | ) | (395 | ) | — | (395 | ) | |||||||||||||
Curtailments | 117 | — | 117 | — | — | — | |||||||||||||||||
Settlements | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Total (increase) decrease in other comprehensive income | $ | (207 | ) | $ | 40 | $ | (167 | ) | $ | (381 | ) | $ | 3 | $ | (378 | ) | |||||||
Year Ended December 31, 2015 | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | — | $ | 6 | $ | 6 | $ | 1 | $ | — | $ | 1 | |||||||||||
Interest cost | — | 21 | 21 | — | — | — | |||||||||||||||||
Expected return on plan assets | — | (29 | ) | (29 | ) | — | — | — | |||||||||||||||
Amortization of net actuarial loss | — | 2 | 2 | (1 | ) | — | (1 | ) | |||||||||||||||
Settlements | — | 1 | 1 | — | — | — | |||||||||||||||||
Net periodic benefit cost | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | — | $ | (16 | ) | $ | (16 | ) | $ | — | $ | — | $ | — | |||||||||
Prior service cost | — | 1 | 1 | — | — | — | |||||||||||||||||
Total increase in other comprehensive income | $ | — | $ | (15 | ) | $ | (15 | ) | $ | — | $ | — | $ | — | |||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | — | $ | 6 | $ | 6 | $ | 1 | $ | — | $ | 1 | |||||||||||
Interest cost | — | 25 | 25 | — | — | — | |||||||||||||||||
Expected return on plan assets | — | (30 | ) | (30 | ) | — | — | — | |||||||||||||||
Amortization of net actuarial loss | — | 2 | 2 | 1 | — | 1 | |||||||||||||||||
Net periodic benefit cost | $ | — | $ | 3 | $ | 3 | $ | 2 | $ | — | $ | 2 | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | — | $ | (10 | ) | $ | (10 | ) | $ | — | $ | — | $ | — | |||||||||
Prior service cost | — | 8 | 8 | — | — | — | |||||||||||||||||
Total increase in other comprehensive income | $ | — | $ | (2 | ) | $ | (2 | ) | $ | — | $ | — | $ | — |
Pension Benefits | Other Postretirement Benefits | ||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||
Year Ended December 31 | |||||||||||
2016 | |||||||||||
Discount rate in effect for determining service cost | 4.38 | % | 3.85 | % | 4.56 | % | 4.30 | % | |||
Discount rate in effect for determining interest cost | 3.59 | % | 3.44 | % | 3.82 | % | 4.30 | % | |||
Rate of compensation increase | 4.00 | % | 3.33 | % | N/A | N/A | |||||
Expected long-term rate of return on plan assets | 7.00 | % | 4.79 | % | 6.34 | % | N/A | ||||
2015 | |||||||||||
Discount rate | NM | 3.51 | % | NM | |||||||
Rate of compensation increase | NM | 3.09 | % | NM | |||||||
Expected long-term rate of return on plan assets | NM | 4.81 | % | NM | |||||||
2014 | |||||||||||
Discount rate | NM | 4.21 | % | NM | |||||||
Rate of compensation increase | NM | 3.43 | % | NM | |||||||
Expected long-term rate of return on plan assets | NM | 5.34 | % | NM | |||||||
NM – not meaningful |
U.S. Plans | Non-U.S. Plans | ||||||||||
2016 | 2015 | 2014 | 2016 | ||||||||
Healthcare cost trend rate | 7.28 | % | 6.50 | % | 6.50 | % | 6.61 | % | |||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % | |||
Year that the rate reaches the ultimate trend rate | 2038 | 2026 | 2026 | 2029 |
December 31, 2016 | Pension Benefits | ||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
U.S. Plans | |||||||||||||||
Short-term investments | $ | — | $ | 43 | $ | — | $ | 43 | |||||||
U.S. Treasury and agency | 206 | 112 | — | 318 | |||||||||||
Foreign and corporate bonds | — | 482 | 5 | 487 | |||||||||||
Equity securities | 728 | — | — | 728 | |||||||||||
Derivative instruments | 3 | — | — | 3 | |||||||||||
Total U.S. Plan assets (1) | $ | 937 | $ | 637 | $ | 5 | $ | 1,579 | |||||||
Non-U.S. Plans | |||||||||||||||
Short-term investments | $ | 2 | $ | — | $ | — | $ | 2 | |||||||
Foreign and corporate bonds | — | 435 | — | 435 | |||||||||||
Equity securities | 100 | 412 | — | 512 | |||||||||||
Total Non-U.S. Plan assets (1) | $ | 102 | $ | 847 | $ | — | $ | 949 |
(1) | Excluded from the table above are $1.2 billion and $13 million of investments measured using NAV as a practical expedient related to the U.S. Plans and Non-U.S. Plans, respectively. |
For the years ending December 31 | U.S. Plans | Non-U.S. Plans | |||||
(in millions of U.S. dollars) | |||||||
2017 | $ | 132 | $ | 20 | |||
2018 | 143 | 23 | |||||
2019 | 158 | 25 | |||||
2020 | 167 | 26 | |||||
2021 | 177 | 27 | |||||
2022–2026 | 931 | 147 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Equity in net (income) loss of partially-owned entities | $ | (264 | ) | $ | (113 | ) | $ | (231 | ) | ||
(Gains) losses from fair value changes in separate account assets (1) | (11 | ) | 19 | (2 | ) | ||||||
Federal excise and capital taxes | 19 | 19 | 20 | ||||||||
Acquisition-related costs (2) | 2 | 9 | 15 | ||||||||
Other | 32 | 15 | 8 | ||||||||
Other (income) expense | $ | (222 | ) | $ | (51 | ) | $ | (190 | ) |
|
• | The North America Commercial P&C Insurance segment includes the business written by Chubb divisions that provide property and casualty (P&C) insurance and services to large, middle market and small commercial businesses in the U.S., Canada, and Bermuda. This segment includes our retail divisions: Major Accounts, Commercial Insurance, including Small Commercial Insurance; and our wholesale and specialty divisions: Westchester and Chubb Bermuda. These divisions write a variety of coverages, including traditional commercial property, marine, general casualty, workers’ compensation, package policies, and risk management; specialty categories such as professional lines, marine and construction risk, environmental and cyber risk, excess casualty, as well as group accident and health (A&H) insurance. |
• | The North America Personal P&C Insurance segment includes the business written by Chubb Personal Risk Services division, which comprises Chubb high net worth personal lines business and ACE Private Risk Services, with operations in the U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles (including fine arts), personal and excess liability, travel insurance, and recreational marine insurance and services. |
• | The North America Agricultural Insurance segment includes the business written by Rain and Hail Insurance Service, Inc. which provides comprehensive multiple peril crop insurance (MPCI) and crop-hail insurance, and Chubb Agribusiness, which offers farm and ranch property as well as specialty P&C coverages, including commercial agriculture products. |
• | The Overseas General Insurance segment includes the business written by two Chubb divisions that provide P&C insurance and services in the 51 countries outside of North America where the company operates. Chubb International provides commercial P&C traditional and specialty lines serving large corporations, middle market and small customers, A&H and traditional and specialty personal lines through retail brokers, agents and other channels locally around the world. Chubb 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 risk, as well as group A&H and traditional and specialty personal lines. The reinsurance operations of CGM are included in the Global Reinsurance segment. |
• | The Global Reinsurance segment primarily includes the reinsurance business written by Chubb Tempest Re. The Global Reinsurance segment also includes CGM's reinsurance operations. Chubb Tempest Re provides a broad range of traditional and specialty reinsurance coverages to a diverse array of primary P&C companies. |
• | The Life Insurance segment includes Chubb's international life operations written by Chubb Life, Chubb Tempest Life Re and the North American supplemental A&H and life business of Combined Insurance. |
For the Year Ended December 31, 2016 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | |||||||||||||||||||||||
Net premiums written | $ | 11,740 | $ | 4,153 | $ | 1,328 | $ | 8,124 | $ | 676 | $ | 2,124 | $ | — | $ | 28,145 | |||||||||||||||
Net premiums earned | 12,217 | 4,319 | 1,316 | 8,132 | 710 | 2,055 | — | 28,749 | |||||||||||||||||||||||
Losses and loss expenses | 7,439 | 2,558 | 893 | 4,005 | 325 | 663 | 169 | 16,052 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 588 | — | 588 | |||||||||||||||||||||||
Policy acquisition costs | 2,023 | 966 | 83 | 2,136 | 187 | 509 | — | 5,904 | |||||||||||||||||||||||
Administrative expenses | 1,125 | 363 | (6 | ) | 1,057 | 52 | 307 | 183 | 3,081 | ||||||||||||||||||||||
Underwriting income (loss) | 1,630 | 432 | 346 | 934 | 146 | (12 | ) | (352 | ) | 3,124 | |||||||||||||||||||||
Net investment income | 1,860 | 207 | 20 | 600 | 263 | 283 | (368 | ) | 2,865 | ||||||||||||||||||||||
Other (income) expense | (2 | ) | 6 | 1 | (11 | ) | (4 | ) | 5 | (217 | ) | (222 | ) | ||||||||||||||||||
Amortization expense (benefit) of purchased intangibles | — | 19 | 29 | 48 | — | 3 | (80 | ) | 19 | ||||||||||||||||||||||
Segment income (loss) | 3,492 | 614 | 336 | 1,497 | 413 | 263 | (423 | ) | 6,192 | ||||||||||||||||||||||
Net realized gains (losses) including OTTI | (145 | ) | (145 | ) | |||||||||||||||||||||||||||
Interest expense | 605 | 605 | |||||||||||||||||||||||||||||
Chubb integration expenses | 492 | 492 | |||||||||||||||||||||||||||||
Income tax expense | 815 | 815 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (2,480 | ) | $ | 4,135 |
For the Year Ended December 31, 2015 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | |||||||||||||||||||||||
Net premiums written | $ | 5,715 | $ | 1,192 | $ | 1,346 | $ | 6,634 | $ | 828 | $ | 1,998 | $ | — | $ | 17,713 | |||||||||||||||
Net premiums earned | 5,634 | 948 | 1,364 | 6,471 | 849 | 1,947 | — | 17,213 | |||||||||||||||||||||||
Losses and loss expenses | 3,661 | 590 | 1,088 | 3,052 | 290 | 601 | 202 | 9,484 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 543 | — | 543 | |||||||||||||||||||||||
Policy acquisition costs | 531 | 69 | 69 | 1,581 | 214 | 476 | 1 | 2,941 | |||||||||||||||||||||||
Administrative expenses | 621 | 123 | 1 | 997 | 49 | 291 | 188 | 2,270 | |||||||||||||||||||||||
Underwriting income (loss) | 821 | 166 | 206 | 841 | 296 | 36 | (391 | ) | 1,975 | ||||||||||||||||||||||
Net investment income | 1,032 | 25 | 23 | 534 | 300 | 265 | 15 | 2,194 | |||||||||||||||||||||||
Other (income) expense | (7 | ) | 2 | 1 | (17 | ) | (6 | ) | 23 | (47 | ) | (51 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | 78 | 30 | 61 | — | 2 | — | 171 | |||||||||||||||||||||||
Segment income (loss) | 1,860 | 111 | 198 | 1,331 | 602 | 276 | (329 | ) | 4,049 | ||||||||||||||||||||||
Net realized gains (losses) including OTTI | (420 | ) | (420 | ) | |||||||||||||||||||||||||||
Interest expense | 300 | 300 | |||||||||||||||||||||||||||||
Chubb integration expense | 33 | 33 | |||||||||||||||||||||||||||||
Income tax expense | 462 | 462 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (1,544 | ) | $ | 2,834 |
For the Year Ended December 31, 2014 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | |||||||||||||||||||||||
Net premiums written | $ | 5,685 | $ | 578 | $ | 1,590 | $ | 6,999 | $ | 935 | $ | 2,012 | $ | — | $ | 17,799 | |||||||||||||||
Net premiums earned | 5,547 | 560 | 1,526 | 6,805 | 1,026 | 1,962 | — | 17,426 | |||||||||||||||||||||||
Losses and loss expenses | 3,476 | 368 | 1,351 | 3,189 | 431 | 589 | 245 | 9,649 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 517 | — | 517 | |||||||||||||||||||||||
Policy acquisition costs | 518 | 116 | 81 | 1,625 | 257 | 478 | — | 3,075 | |||||||||||||||||||||||
Administrative expenses | 599 | 74 | 9 | 1,026 | 54 | 285 | 198 | 2,245 | |||||||||||||||||||||||
Underwriting income (loss) | 954 | 2 | 85 | 965 | 284 | 93 | (443 | ) | 1,940 | ||||||||||||||||||||||
Net investment income | 1,060 | 22 | 26 | 545 | 316 | 268 | 15 | 2,252 | |||||||||||||||||||||||
Other (income) expense | (12 | ) | 1 | 2 | (18 | ) | (4 | ) | 3 | (162 | ) | (190 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | — | 31 | 74 | — | 3 | — | 108 | |||||||||||||||||||||||
Segment income (loss) | 2,026 | 23 | 78 | 1,454 | 604 | 355 | (266 | ) | 4,274 | ||||||||||||||||||||||
Net realized gains (losses) including OTTI | (507 | ) | (507 | ) | |||||||||||||||||||||||||||
Interest expense | 280 | 280 | |||||||||||||||||||||||||||||
Income tax expense | 634 | 634 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (1,687 | ) | $ | 2,853 |
For the Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
North America Commercial P&C Insurance | |||||||||||
Property & other short-tail lines | $ | 1,963 | $ | 1,040 | $ | 1,113 | |||||
Casualty & all other | 9,552 | 4,175 | 4,021 | ||||||||
A&H | 702 | 419 | 413 | ||||||||
Total North America Commercial P&C Insurance | 12,217 | 5,634 | 5,547 | ||||||||
North America Personal P&C Insurance | |||||||||||
Personal automobile | 699 | 186 | 130 | ||||||||
Personal homeowners | 3,007 | 579 | 309 | ||||||||
Personal other | 613 | 183 | 121 | ||||||||
Total North America Personal P&C Insurance | 4,319 | 948 | 560 | ||||||||
North America Agricultural Insurance | 1,316 | 1,364 | 1,526 | ||||||||
Overseas General Insurance | |||||||||||
Property & other short-tail lines | 2,133 | 1,833 | 1,892 | ||||||||
Casualty & all other | 2,177 | 1,361 | 1,425 | ||||||||
Personal lines | 1,626 | 1,211 | 1,204 | ||||||||
A&H | 2,196 | 2,066 | 2,284 | ||||||||
Total Overseas General Insurance | 8,132 | 6,471 | 6,805 | ||||||||
Global Reinsurance | |||||||||||
Property & other short-tail lines | 118 | 155 | 246 | ||||||||
Property catastrophe | 185 | 219 | 253 | ||||||||
Casualty & all other | 407 | 475 | 527 | ||||||||
Total Global Reinsurance | 710 | 849 | 1,026 | ||||||||
Life Insurance | |||||||||||
Life | 1,002 | 931 | 981 | ||||||||
A&H | 1,053 | 1,016 | 981 | ||||||||
Total Life Insurance | 2,055 | 1,947 | 1,962 | ||||||||
Total net premiums earned | $ | 28,749 | $ | 17,213 | $ | 17,426 |
North America | Europe(1) | Asia Pacific/Far East | Latin America | ||||||||
2016 | 70 | % | 12 | % | 11 | % | 7 | % | |||
2015 | 60 | % | 15 | % | 15 | % | 10 | % | |||
2014 | 58 | % | 16 | % | 16 | % | 10 | % |
|
|
December 31 | |||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Statutory capital and surplus | |||||||
Property and casualty | $ | 37,946 | $ | 19,680 | |||
Life | $ | 1,294 | $ | 1,207 |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Statutory net income (loss) | |||||||||||
Property and casualty | $ | 7,042 | $ | 2,712 | $ | 3,378 | |||||
Life | $ | 46 | $ | (148 | ) | $ | (248 | ) |
|
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Investments | $ | 27 | $ | 485 | $ | 98,582 | $ | — | $ | 99,094 | |||||||||
Cash(1) | 1 | 1 | 1,965 | (982 | ) | 985 | |||||||||||||
Insurance and reinsurance balances receivable | — | — | 10,498 | (1,528 | ) | 8,970 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 24,496 | (10,919 | ) | 13,577 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,153 | (971 | ) | 182 | |||||||||||||
Value of business acquired | — | — | 355 | — | 355 | ||||||||||||||
Goodwill and other intangible assets | — | — | 22,095 | — | 22,095 | ||||||||||||||
Investments in subsidiaries | 38,408 | 49,509 | — | (87,917 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 10,482 | — | — | (10,482 | ) | — | |||||||||||||
Other assets | 3 | 436 | 18,442 | (4,353 | ) | 14,528 | |||||||||||||
Total assets | $ | 48,921 | $ | 50,431 | $ | 177,586 | $ | (117,152 | ) | $ | 159,786 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 70,683 | $ | (10,143 | ) | $ | 60,540 | ||||||||
Unearned premiums | — | — | 18,538 | (3,759 | ) | 14,779 | |||||||||||||
Future policy benefits | — | — | 6,007 | (971 | ) | 5,036 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 10,209 | 273 | (10,482 | ) | — | |||||||||||||
Affiliated notional cash pooling programs(1) | 363 | 619 | — | (982 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,403 | — | 1,403 | ||||||||||||||
Short-term debt | — | 500 | — | — | 500 | ||||||||||||||
Long-term debt | — | 12,599 | 11 | — | 12,610 | ||||||||||||||
Trust preferred securities | — | 308 | — | — | 308 | ||||||||||||||
Other liabilities | 283 | 1,582 | 17,368 | (2,898 | ) | 16,335 | |||||||||||||
Total liabilities | 646 | 25,817 | 114,283 | (29,235 | ) | 111,511 | |||||||||||||
Total shareholders’ equity | 48,275 | 24,614 | 63,303 | (87,917 | ) | 48,275 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 48,921 | $ | 50,431 | $ | 177,586 | $ | (117,152 | ) | $ | 159,786 |
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Investments | $ | 28 | $ | 7,839 | $ | 58,384 | $ | — | $ | 66,251 | |||||||||
Cash(1) | 1 | 2 | 2,743 | (971 | ) | 1,775 | |||||||||||||
Insurance and reinsurance balances receivable | — | — | 6,075 | (752 | ) | 5,323 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 20,124 | (8,738 | ) | 11,386 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,129 | (942 | ) | 187 | |||||||||||||
Value of business acquired | — | — | 395 | — | 395 | ||||||||||||||
Goodwill and other intangible assets | — | — | 5,683 | — | 5,683 | ||||||||||||||
Investments in subsidiaries | 29,612 | 18,386 | — | (47,998 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 644 | 1,800 | — | (2,444 | ) | — | |||||||||||||
Other assets | 8 | 457 | 14,434 | (3,593 | ) | 11,306 | |||||||||||||
Total assets | $ | 30,293 | $ | 28,484 | $ | 108,967 | $ | (65,438 | ) | $ | 102,306 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 45,490 | $ | (8,187 | ) | $ | 37,303 | ||||||||
Unearned premiums | — | — | 10,243 | (1,804 | ) | 8,439 | |||||||||||||
Future policy benefits | — | — | 5,749 | (942 | ) | 4,807 | |||||||||||||
Due to subsidiaries and affiliates, net | — | — | 2,444 | (2,444 | ) | — | |||||||||||||
Affiliated notional cash pooling programs(1) | 882 | 89 | — | (971 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,404 | — | 1,404 | ||||||||||||||
Long-term debt | — | 9,378 | 11 | — | 9,389 | ||||||||||||||
Trust preferred securities | — | 307 | — | — | 307 | ||||||||||||||
Other liabilities | 276 | 1,422 | 12,916 | (3,092 | ) | 11,522 | |||||||||||||
Total liabilities | 1,158 | 11,196 | 78,257 | (17,440 | ) | 73,171 | |||||||||||||
Total shareholders’ equity | 29,135 | 17,288 | 30,710 | (47,998 | ) | 29,135 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 30,293 | $ | 28,484 | $ | 108,967 | $ | (65,438 | ) | $ | 102,306 |
(1) | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2016 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 28,145 | $ | — | $ | 28,145 | |||||||||
Net premiums earned | — | — | 28,749 | — | 28,749 | ||||||||||||||
Net investment income | 3 | 11 | 2,851 | — | 2,865 | ||||||||||||||
Equity in earnings of subsidiaries | 3,901 | 2,555 | — | (6,456 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | 3 | (148 | ) | — | (145 | ) | ||||||||||||
Losses and loss expenses | — | — | 16,052 | — | 16,052 | ||||||||||||||
Policy benefits | — | — | 588 | — | 588 | ||||||||||||||
Policy acquisition costs and administrative expenses | 64 | 82 | 8,839 | — | 8,985 | ||||||||||||||
Interest (income) expense | (353 | ) | 908 | 50 | — | 605 | |||||||||||||
Other (income) expense | (25 | ) | 35 | (232 | ) | — | (222 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 19 | — | 19 | ||||||||||||||
Chubb integration expenses | 62 | 126 | 304 | — | 492 | ||||||||||||||
Income tax expense (benefit) | 21 | (416 | ) | 1,210 | — | 815 | |||||||||||||
Net income | $ | 4,135 | $ | 1,834 | $ | 4,622 | $ | (6,456 | ) | $ | 4,135 | ||||||||
Comprehensive income | $ | 4,556 | $ | 2,001 | $ | 5,045 | $ | (7,046 | ) | $ | 4,556 |
For the Year Ended December 31, 2015 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 17,713 | $ | — | $ | 17,713 | |||||||||
Net premiums earned | — | — | 17,213 | — | 17,213 | ||||||||||||||
Net investment income | 3 | 4 | 2,187 | — | 2,194 | ||||||||||||||
Equity in earnings of subsidiaries | 2,673 | 1,038 | — | (3,711 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | (9 | ) | (411 | ) | — | (420 | ) | |||||||||||
Losses and loss expenses | — | — | 9,484 | — | 9,484 | ||||||||||||||
Policy benefits | — | — | 543 | — | 543 | ||||||||||||||
Policy acquisition costs and administrative expenses | 63 | 28 | 5,120 | — | 5,211 | ||||||||||||||
Interest (income) expense | (32 | ) | 302 | 30 | — | 300 | |||||||||||||
Other (income) expense | (208 | ) | (4 | ) | 161 | — | (51 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 171 | — | 171 | ||||||||||||||
Chubb integration expenses | 3 | 29 | 1 | — | 33 | ||||||||||||||
Income tax expense (benefit) | 16 | (349 | ) | 795 | — | 462 | |||||||||||||
Net income | $ | 2,834 | $ | 1,027 | $ | 2,684 | $ | (3,711 | ) | $ | 2,834 | ||||||||
Comprehensive income (loss) | $ | 908 | $ | (192 | ) | $ | 757 | $ | (565 | ) | $ | 908 |
For the Year Ended December 31, 2014 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 17,799 | $ | — | $ | 17,799 | |||||||||
Net premiums earned | — | — | 17,426 | — | 17,426 | ||||||||||||||
Net investment income | 2 | 2 | 2,248 | — | 2,252 | ||||||||||||||
Equity in earnings of subsidiaries | 2,707 | 791 | — | (3,498 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | 53 | (560 | ) | — | (507 | ) | ||||||||||||
Losses and loss expenses | — | — | 9,649 | — | 9,649 | ||||||||||||||
Policy benefits | — | — | 517 | — | 517 | ||||||||||||||
Policy acquisition costs and administrative expenses | 78 | 26 | 5,216 | — | 5,320 | ||||||||||||||
Interest (income) expense | (35 | ) | 277 | 38 | — | 280 | |||||||||||||
Other (income) expense | (201 | ) | 27 | (16 | ) | — | (190 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 108 | — | 108 | ||||||||||||||
Income tax expense (benefit) | 14 | (94 | ) | 714 | — | 634 | |||||||||||||
Net income | $ | 2,853 | $ | 610 | $ | 2,888 | $ | (3,498 | ) | $ | 2,853 | ||||||||
Comprehensive income | $ | 2,892 | $ | 583 | $ | 2,926 | $ | (3,509 | ) | $ | 2,892 |
For the Year Ended December 31, 2016 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from operating activities | $ | 3,618 | $ | 4,305 | $ | 5,536 | $ | (8,167 | ) | $ | 5,292 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | (156 | ) | (30,659 | ) | — | (30,815 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (282 | ) | — | (282 | ) | ||||||||||||
Purchases of equity securities | — | — | (146 | ) | — | (146 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | 66 | 16,611 | — | 16,677 | ||||||||||||||
Sales of equity securities | — | — | 1,000 | — | 1,000 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | 66 | 9,283 | — | 9,349 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 958 | — | 958 | ||||||||||||||
Net change in short-term investments | — | 7,943 | 4,407 | — | 12,350 | ||||||||||||||
Net derivative instruments settlements | — | (9 | ) | (159 | ) | — | (168 | ) | |||||||||||
Acquisition of subsidiaries (net of cash acquired of $71) | — | (14,282 | ) | 34 | — | (14,248 | ) | ||||||||||||
Capital contribution | (2,330 | ) | (215 | ) | (2,330 | ) | 4,875 | — | |||||||||||
Other | — | (3 | ) | 13 | — | 10 | |||||||||||||
Net cash flows used for investing activities | (2,330 | ) | (6,590 | ) | (1,270 | ) | 4,875 | (5,315 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (1,173 | ) | — | — | — | (1,173 | ) | ||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,310 | — | 2,310 | ||||||||||||||
Repayment of repurchase agreements | — | — | (2,311 | ) | — | (2,311 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 167 | — | 167 | ||||||||||||||
Advances (to) from affiliates | 404 | (572 | ) | 168 | — | — | |||||||||||||
Dividends to parent company | — | — | (8,167 | ) | 8,167 | — | |||||||||||||
Capital contribution | — | 2,330 | 2,545 | (4,875 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | (519 | ) | 530 | — | (11 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 522 | — | 522 | ||||||||||||||
Policyholder contract withdrawals | — | — | (253 | ) | — | (253 | ) | ||||||||||||
Other | — | (4 | ) | — | — | (4 | ) | ||||||||||||
Net cash flows (used for) from financing activities | (1,288 | ) | 2,284 | (5,019 | ) | 3,281 | (742 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (25 | ) | — | (25 | ) | ||||||||||||
Net decrease in cash | — | (1 | ) | (778 | ) | (11 | ) | (790 | ) | ||||||||||
Cash – beginning of year(1) | 1 | 2 | 2,743 | (971 | ) | 1,775 | |||||||||||||
Cash – end of year(1) | $ | 1 | $ | 1 | $ | 1,965 | $ | (982 | ) | $ | 985 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2016 and 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2015 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from operating activities | $ | 3,125 | $ | 682 | $ | 3,836 | $ | (3,779 | ) | $ | 3,864 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (16,053 | ) | (18 | ) | (16,071 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (62 | ) | — | (62 | ) | ||||||||||||
Purchases of equity securities | — | — | (158 | ) | — | (158 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 10,814 | — | 10,814 | ||||||||||||||
Sales of equity securities | — | — | 183 | — | 183 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,567 | — | 6,567 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 669 | — | 669 | ||||||||||||||
Net change in short-term investments | — | (7,588 | ) | (628 | ) | — | (8,216 | ) | |||||||||||
Net derivative instruments settlements | — | (9 | ) | (12 | ) | — | (21 | ) | |||||||||||
Acquisition of subsidiaries (net of cash acquired of $629) | — | — | 264 | — | 264 | ||||||||||||||
Capital contribution | (2,670 | ) | (625 | ) | (2,791 | ) | 6,086 | — | |||||||||||
Other | — | (25 | ) | (256 | ) | 18 | (263 | ) | |||||||||||
Net cash flows used for investing activities | (2,670 | ) | (8,247 | ) | (1,463 | ) | 6,086 | (6,294 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (862 | ) | — | — | — | (862 | ) | ||||||||||||
Common Shares repurchased | — | — | (758 | ) | — | (758 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 6,090 | — | — | 6,090 | ||||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,029 | — | 2,029 | ||||||||||||||
Repayment of long-term debt | — | (1,150 | ) | — | — | (1,150 | ) | ||||||||||||
Repayment of repurchase agreements | — | — | (2,027 | ) | — | (2,027 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 131 | — | 131 | ||||||||||||||
Advances (to) from affiliates | (228 | ) | 95 | 133 | — | — | |||||||||||||
Dividends to parent company | — | — | (3,779 | ) | 3,779 | — | |||||||||||||
Capital contribution | — | 2,791 | 3,295 | (6,086 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | 636 | (220 | ) | — | (416 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 503 | — | 503 | ||||||||||||||
Policyholder contract withdrawals | — | — | (221 | ) | — | (221 | ) | ||||||||||||
Other | — | (40 | ) | — | — | (40 | ) | ||||||||||||
Net cash flows (used for) from financing activities | (454 | ) | 7,566 | (694 | ) | (2,723 | ) | 3,695 | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (145 | ) | — | (145 | ) | ||||||||||||
Net increase in cash | 1 | 1 | 1,534 | (416 | ) | 1,120 | |||||||||||||
Cash – beginning of year(1) | — | 1 | 1,209 | (555 | ) | 655 | |||||||||||||
Cash – end of year(1) | $ | 1 | $ | 2 | $ | 2,743 | $ | (971 | ) | $ | 1,775 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015 and 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2014 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from operating activities | $ | 541 | $ | 210 | $ | 4,419 | $ | (674 | ) | $ | 4,496 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (15,816 | ) | 263 | (15,553 | ) | ||||||||||||
Purchases of fixed maturities held to maturity | — | — | (267 | ) | — | (267 | ) | ||||||||||||
Purchases of equity securities | — | — | (251 | ) | — | (251 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 7,750 | (268 | ) | 7,482 | |||||||||||||
Sales of equity securities | — | — | 670 | — | 670 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,413 | — | 6,413 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 875 | — | 875 | ||||||||||||||
Net change in short-term investments | — | (216 | ) | (392 | ) | 5 | (603 | ) | |||||||||||
Net derivative instruments settlements | — | 53 | (283 | ) | — | (230 | ) | ||||||||||||
Acquisition of subsidiaries (net of cash acquired of $20) | — | — | (766 | ) | — | (766 | ) | ||||||||||||
Capital contribution | — | (258 | ) | — | 258 | — | |||||||||||||
Other | — | (8 | ) | (266 | ) | — | (274 | ) | |||||||||||
Net cash flows used for investing activities | — | (429 | ) | (2,333 | ) | 258 | (2,504 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (862 | ) | — | — | — | (862 | ) | ||||||||||||
Common Shares repurchased | — | — | (1,429 | ) | — | (1,429 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 699 | — | — | 699 | ||||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 1,978 | — | 1,978 | ||||||||||||||
Repayment of long-term debt | — | (500 | ) | (1 | ) | — | (501 | ) | |||||||||||
Repayment of repurchase agreements | — | — | (1,977 | ) | — | (1,977 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 127 | — | 127 | ||||||||||||||
Advances (to) from affiliates | 260 | (298 | ) | 38 | — | — | |||||||||||||
Dividends to parent company | — | — | (674 | ) | 674 | — | |||||||||||||
Capital contribution | — | — | 258 | (258 | ) | — | |||||||||||||
Net proceeds from affiliated notional cash pooling programs(1) | 61 | 309 | — | (370 | ) | — | |||||||||||||
Policyholder contract deposits | — | — | 366 | — | 366 | ||||||||||||||
Policyholder contract withdrawals | — | — | (172 | ) | — | (172 | ) | ||||||||||||
Other | (6 | ) | — | — | (6 | ) | |||||||||||||
Net cash flows (used for) from financing activities | (541 | ) | 204 | (1,486 | ) | 46 | (1,777 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (139 | ) | — | (139 | ) | ||||||||||||
Net (decrease) increase in cash | — | (15 | ) | 461 | (370 | ) | 76 | ||||||||||||
Cash – beginning of year(1) | — | 16 | 748 | (185 | ) | 579 | |||||||||||||
Cash – end of year(1) | $ | — | $ | 1 | $ | 1,209 | $ | (555 | ) | $ | 655 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014 and 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
|
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(in millions of U.S. dollars, except per share data) | 2016 | 2016 | 2016 | 2016 | |||||||||||
Net premiums earned | $ | 6,597 | $ | 7,405 | $ | 7,688 | $ | 7,059 | |||||||
Net investment income | 674 | 708 | 739 | 744 | |||||||||||
Net realized gains (losses) including OTTI | (394 | ) | (216 | ) | 100 | 365 | |||||||||
Total revenues | $ | 6,877 | $ | 7,897 | $ | 8,527 | $ | 8,168 | |||||||
Losses and loss expenses | $ | 3,674 | $ | 4,254 | $ | 4,269 | $ | 3,855 | |||||||
Policy benefits | $ | 126 | $ | 146 | $ | 155 | $ | 161 | |||||||
Net income | $ | 439 | $ | 726 | $ | 1,360 | $ | 1,610 | |||||||
Basic earnings per share | $ | 0.98 | $ | 1.55 | $ | 2.90 | $ | 3.44 | |||||||
Diluted earnings per share | $ | 0.97 | $ | 1.54 | $ | 2.88 | $ | 3.41 |
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(in millions of U.S. dollars, except per share data) | 2015 | 2015 | 2015 | 2015 | |||||||||||
Net premiums earned | $ | 3,927 | $ | 4,360 | $ | 4,719 | $ | 4,207 | |||||||
Net investment income | 551 | 562 | 549 | 532 | |||||||||||
Net realized gains (losses) including OTTI | (89 | ) | 126 | (397 | ) | (60 | ) | ||||||||
Total revenues | $ | 4,389 | $ | 5,048 | $ | 4,871 | $ | 4,679 | |||||||
Losses and loss expenses | $ | 2,122 | $ | 2,417 | $ | 2,643 | $ | 2,302 | |||||||
Policy benefits | $ | 142 | $ | 153 | $ | 89 | $ | 159 | |||||||
Net income | $ | 681 | $ | 942 | $ | 528 | $ | 683 | |||||||
Basic earnings per share | $ | 2.08 | $ | 2.89 | $ | 1.63 | $ | 2.10 | |||||||
Diluted earnings per share | $ | 2.05 | $ | 2.86 | $ | 1.62 | $ | 2.08 |
|
December 31, 2016 (in millions of U.S. dollars) | Cost or Amortized Cost | Fair Value | Amount at Which Shown in the Balance Sheet | ||||||||
Fixed maturities available for sale | |||||||||||
U.S. Treasury and agency | $ | 2,883 | $ | 2,870 | $ | 2,870 | |||||
Foreign | 20,929 | 21,440 | 21,440 | ||||||||
Corporate securities | 23,736 | 24,149 | 24,149 | ||||||||
Mortgage-backed securities | 14,066 | 14,007 | 14,007 | ||||||||
States, municipalities, and political subdivisions | 17,922 | 17,649 | 17,649 | ||||||||
Total fixed maturities available for sale | 79,536 | 80,115 | 80,115 | ||||||||
Fixed maturities held to maturity | |||||||||||
U.S. Treasury and agency | 655 | 661 | 655 | ||||||||
Foreign | 640 | 667 | 640 | ||||||||
Corporate securities | 2,771 | 2,795 | 2,771 | ||||||||
Mortgage-backed securities | 1,393 | 1,428 | 1,393 | ||||||||
States, municipalities, and political subdivisions | 5,185 | 5,119 | 5,185 | ||||||||
Total fixed maturities held to maturity | 10,644 | 10,670 | 10,644 | ||||||||
Equity securities | |||||||||||
Industrial, miscellaneous, and all other | 706 | 814 | 814 | ||||||||
Short-term investments | 3,002 | 3,002 | 3,002 | ||||||||
Other investments | 4,270 | 4,519 | 4,519 | ||||||||
Total investments - other than investments in related parties | $ | 98,158 | $ | 99,120 | $ | 99,094 |
|
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Assets | |||||||
Investments in subsidiaries and affiliates on equity basis | $ | 38,408 | $ | 29,612 | |||
Short-term investments | 2 | 1 | |||||
Other investments, at cost | 25 | 27 | |||||
Total investments | 38,435 | 29,640 | |||||
Cash | 1 | 1 | |||||
Due from subsidiaries and affiliates, net | 10,482 | 644 | |||||
Other assets | 3 | 8 | |||||
Total assets | $ | 48,921 | $ | 30,293 | |||
Liabilities | |||||||
Affiliated notional cash pooling programs(1) | $ | 363 | $ | 882 | |||
Accounts payable, accrued expenses, and other liabilities | 283 | 276 | |||||
Total liabilities | 646 | 1,158 | |||||
Shareholders' equity | |||||||
Common Shares | 11,121 | 7,833 | |||||
Common Shares in treasury | (1,480 | ) | (1,922 | ) | |||
Additional paid-in capital | 15,335 | 4,481 | |||||
Retained earnings | 23,613 | 19,478 | |||||
Accumulated other comprehensive income (loss) | (314 | ) | (735 | ) | |||
Total shareholders' equity | 48,275 | 29,135 | |||||
Total liabilities and shareholders' equity | $ | 48,921 | $ | 30,293 | |||
(1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. | |||||||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto. |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Revenues | |||||||||||
Investment income, including interest income | $ | 356 | $ | 35 | $ | 37 | |||||
Equity in net income of subsidiaries and affiliates | 3,901 | 2,673 | 2,707 | ||||||||
4,257 | 2,708 | 2,744 | |||||||||
Expenses | |||||||||||
Administrative and other (income) expense | 101 | (142 | ) | (123 | ) | ||||||
Income tax expense | 21 | 16 | 14 | ||||||||
122 | (126 | ) | (109 | ) | |||||||
Net income | $ | 4,135 | $ | 2,834 | $ | 2,853 | |||||
Comprehensive income | $ | 4,556 | $ | 908 | $ | 2,892 | |||||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto. |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Net cash flows from operating activities(1) | $ | 3,618 | $ | 3,125 | $ | 541 | |||||
Cash flows from investing activities | |||||||||||
Capital contribution | (2,330 | ) | (2,670 | ) | — | ||||||
Net cash flows used for investing activities | (2,330 | ) | (2,670 | ) | — | ||||||
Cash flows from financing activities | |||||||||||
Dividends paid on Common Shares | (1,173 | ) | (862 | ) | (862 | ) | |||||
Advances (to) from affiliates | 404 | (228 | ) | 260 | |||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(2) | (519 | ) | 636 | 61 | |||||||
Net cash flows used for financing activities | (1,288 | ) | (454 | ) | (541 | ) | |||||
Net increase in cash | — | 1 | — | ||||||||
Cash – beginning of year | 1 | — | — | ||||||||
Cash – end of year | $ | 1 | $ | 1 | $ | — | |||||
(1) Includes cash dividends received from subsidiaries of $3.4 billion, $2.9 billion, and $300 million in 2016, 2015, and 2014, respectively. | |||||||||||
(2) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. | |||||||||||
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto. |
|
Premiums Earned | |||||||||||||||||||
For the years ended December 31, 2016, 2015, and 2014 (in millions of U.S. dollars, except for percentages) | Direct Amount | Ceded To Other Companies | Assumed From Other Companies | Net Amount | Percentage of Amount Assumed to Net | ||||||||||||||
2016 | |||||||||||||||||||
Property and Casualty | $ | 26,919 | $ | 6,407 | $ | 3,284 | $ | 23,796 | 14 | % | |||||||||
Accident and Health | 4,047 | 315 | 219 | 3,951 | 6 | % | |||||||||||||
Life | 845 | 84 | 241 | 1,002 | 24 | % | |||||||||||||
Total | $ | 31,811 | $ | 6,806 | $ | 3,744 | $ | 28,749 | 13 | % | |||||||||
2015 | |||||||||||||||||||
Property and Casualty | $ | 14,895 | $ | 5,373 | $ | 3,259 | $ | 12,781 | 25 | % | |||||||||
Accident and Health | 3,684 | 351 | 168 | 3,501 | 5 | % | |||||||||||||
Life | 776 | 94 | 249 | 931 | 27 | % | |||||||||||||
Total | $ | 19,355 | $ | 5,818 | $ | 3,676 | $ | 17,213 | 21 | % | |||||||||
2014 | |||||||||||||||||||
Property and Casualty | $ | 14,784 | $ | 4,940 | $ | 2,923 | $ | 12,767 | 23 | % | |||||||||
Accident and Health | 3,971 | 434 | 141 | 3,678 | 4 | % | |||||||||||||
Life | 800 | 91 | 272 | 981 | 28 | % | |||||||||||||
Total | $ | 19,555 | $ | 5,465 | $ | 3,336 | $ | 17,426 | 19 | % |
|
As of and for the years ended December 31, 2016, 2015, and 2014 (in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | Net Reserves for Unpaid Losses and Loss Expenses | Unearned Premiums | Net Premiums Earned | Net Investment Income | Net Losses and Loss Expenses Incurred Related to | Amortization of Deferred Policy Acquisition Costs (1) | Net Paid Losses and Loss Expenses | Net Premiums Written | |||||||||||||||||||||||||||||||||
Current Year | Prior Year | ||||||||||||||||||||||||||||||||||||||||
2016 | $ | 3,537 | $ | 47,832 | $ | 14,779 | $ | 27,747 | $ | 2,656 | $ | 17,256 | $ | (1,204 | ) | $ | 5,654 | $ | 15,715 | $ | 27,074 | ||||||||||||||||||||
2015 | $ | 2,219 | $ | 26,562 | $ | 8,439 | $ | 16,282 | $ | 2,007 | $ | 10,030 | $ | (546 | ) | $ | 2,692 | $ | 9,665 | $ | 16,734 | ||||||||||||||||||||
2014 | $ | 2,057 | $ | 27,008 | $ | 8,222 | $ | 16,445 | $ | 2,071 | $ | 10,176 | $ | (527 | ) | $ | 2,805 | $ | 9,235 | $ | 16,787 |
|
• | unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves; |
• | future policy benefits reserves; |
• | the valuation of value of business acquired (VOBA) and amortization of deferred policy acquisition costs and VOBA; |
• | reinsurance recoverable, including a provision for uncollectible reinsurance; |
• | the assessment of risk transfer for certain structured insurance and reinsurance contracts; |
• | the valuation of the investment portfolio and assessment of OTTI; |
• | the valuation of deferred tax assets; |
• | the valuation of derivative instruments related to guaranteed living benefits (GLB); |
• | the valuation and amortization of purchased intangibles; and |
• | the assessment of goodwill for impairment. |
• | For reinsurers that maintain a financial strength rating from a major rating agency, and for which recoverable balances are considered representative of the larger population (i.e., default probabilities are consistent with similarly rated reinsurers and payment durations conform to averages), the financial rating is based on a published source and the default factor is based on published default statistics of a major rating agency applicable to the reinsurer's particular rating class. When a recoverable is expected to be paid in a brief period of time by a highly rated reinsurer, such as certain property catastrophe claims, a default factor may not be applied; |
• | For balances recoverable from reinsurers that are both unrated by a major rating agency and for which management is unable to determine a credible rating equivalent based on a parent, affiliate, or peer company, we determine a rating equivalent based on an analysis of the reinsurer that considers an assessment of the creditworthiness of the particular entity, industry benchmarks, or other factors as considered appropriate. We then apply the applicable default factor for that rating class. For balances recoverable from unrated reinsurers for which the ceded reserve is below a certain threshold, we generally apply a default factor of 34 percent, consistent with published statistics of a major rating agency; |
• | For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting provision for uncollectible reinsurance based on reinsurer-specific facts and circumstances. Upon initial notification of an insolvency, we generally recognize an expense for a substantial portion of all balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the provision for uncollectible reinsurance. When regulatory action is taken on a reinsurer, we generally recognize a default factor by estimating an expected recovery on all balances outstanding, net of collateral. When sufficient credible information becomes available, we adjust the provision for uncollectible reinsurance by establishing a default factor pursuant to information received; and |
• | For other recoverables, management determines the provision for uncollectible reinsurance based on the specific facts and circumstances. |
• | Life insurance policies are carried at policy cash surrender value and income is recorded in Other income (expense). |
• | Policy loans are carried at outstanding balance and interest income is recorded to Net investment income. |
• | Trading securities are recorded on a trade date basis and carried at fair value. Unrealized gains and losses on trading securities are reflected in Other (income) expense. |
• | Other investments over which Chubb can exercise significant influence are accounted for using the equity method and income is recorded in Other (income) expense. |
• | All other investments over which Chubb cannot exercise significant influence are carried at fair value with changes in fair value recognized through OCI. For these investments, investment income is recognized in Net investment income and realized gains are recognized as related distributions are received. |
• | Partially-owned investment companies comprise entities in which we hold an ownership interest in excess of three percent. These investments as well as Chubb's investments in investment funds where our ownership interest is in excess of three percent are accounted for under the equity method because Chubb exerts significant influence. These investments apply investment company accounting to determine operating results, and Chubb retains the investment company accounting in applying the equity method. This means that investment income, realized gains or losses, and unrealized gains or losses are included in the portion of equity earnings reflected in Other (income) expense. As a result of the timing of the receipt of valuation data from the investment managers, these investments are generally reported on a three month lag. |
|
(in millions, except per share data) | |||
Purchase consideration | |||
Chubb Limited common shares | |||
Chubb Corp common shares outstanding | 228 | ||
Per share exchange ratio | 0.6019 | ||
Common shares issued by Chubb Limited | 137 | ||
Common share price of Chubb Limited at January 14, 2016 | $ | 111.02 | |
Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp | $ | 15,204 | |
Cash consideration | |||
Chubb Corp common shares outstanding | 228 | ||
Agreed cash price per share paid to common shareholders of Chubb Corp | $ | 62.93 | |
Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp | $ | 14,319 | |
Stock-based awards | |||
Fair value of equity awards issued (1) | $ | 323 | |
Fair value of purchase consideration | $ | 29,846 | |
Assets acquired and (liabilities) assumed | |||
Cash | $ | 71 | |
Investments | 42,967 | ||
Accrued investment income | 359 | ||
Insurance and reinsurance balances receivable | 3,095 | ||
Reinsurance recoverable on losses and loss expenses | 1,676 | ||
Indefinite lived intangible assets | 2,860 | ||
Finite lived intangible assets | 4,795 | ||
Prepaid reinsurance premiums | 280 | ||
Other assets | 853 | ||
Unpaid losses and loss expenses | (22,923 | ) | |
Unearned premiums | (7,011 | ) | |
Insurance and reinsurance balances payable | (603 | ) | |
Accounts payable, accrued expenses, and other liabilities | (2,030 | ) | |
Deferred tax liabilities | (1,292 | ) | |
Long-term debt | (3,765 | ) | |
Total identifiable net assets acquired | 19,332 | ||
Goodwill | 10,514 | ||
Purchase price | $ | 29,846 |
(1) | The fair value of the replacement equity awards was $525 million, of which $323 million was attributed to service periods prior to the acquisition and was included in the purchase consideration. Refer to Note 12 for further information on these replacement equity awards. |
(in millions of U.S. dollars) | January 14, 2016 to December 31, 2016 | ||
Total revenues | $ | 12,376 | |
Net income | $ | 1,756 |
Year Ended December 31 | |||||||
(in millions of U.S. dollars, except per share data) | 2016 | 2015 | |||||
Total revenues | $ | 31,937 | $ | 32,622 | |||
Net income | $ | 4,183 | $ | 4,478 | |||
Earnings per share | |||||||
Basic earnings per share | $ | 8.95 | $ | 9.61 | |||
Diluted earnings per share | $ | 8.88 | $ | 9.52 |
|
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Cost | $ | 706 | $ | 441 | |||
Gross unrealized appreciation | 129 | 74 | |||||
Gross unrealized depreciation | (21 | ) | (18 | ) | |||
Fair value | $ | 814 | $ | 497 |
December 31, 2016 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 2,883 | $ | 32 | $ | (45 | ) | $ | 2,870 | $ | — | ||||||||
Foreign | 20,929 | 636 | (125 | ) | 21,440 | (5 | ) | ||||||||||||
Corporate securities | 23,736 | 580 | (167 | ) | 24,149 | (8 | ) | ||||||||||||
Mortgage-backed securities | 14,066 | 135 | (194 | ) | 14,007 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 17,922 | 72 | (345 | ) | 17,649 | — | |||||||||||||
$ | 79,536 | $ | 1,455 | $ | (876 | ) | $ | 80,115 | $ | (14 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 655 | $ | 9 | $ | (3 | ) | $ | 661 | $ | — | ||||||||
Foreign | 640 | 28 | (1 | ) | 667 | — | |||||||||||||
Corporate securities | 2,771 | 50 | (26 | ) | 2,795 | — | |||||||||||||
Mortgage-backed securities | 1,393 | 35 | — | 1,428 | — | ||||||||||||||
States, municipalities, and political subdivisions | 5,185 | 26 | (92 | ) | 5,119 | — | |||||||||||||
$ | 10,644 | $ | 148 | $ | (122 | ) | $ | 10,670 | $ | — |
December 31, 2015 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 2,481 | $ | 52 | $ | (5 | ) | $ | 2,528 | $ | — | ||||||||
Foreign | 13,190 | 468 | (213 | ) | 13,445 | (13 | ) | ||||||||||||
Corporate securities | 15,028 | 355 | (454 | ) | 14,929 | (28 | ) | ||||||||||||
Mortgage-backed securities | 9,827 | 183 | (52 | ) | 9,958 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 2,623 | 110 | (6 | ) | 2,727 | — | |||||||||||||
$ | 43,149 | $ | 1,168 | $ | (730 | ) | $ | 43,587 | $ | (42 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 733 | $ | 13 | $ | (1 | ) | $ | 745 | $ | — | ||||||||
Foreign | 763 | 30 | (8 | ) | 785 | — | |||||||||||||
Corporate securities | 3,054 | 57 | (55 | ) | 3,056 | — | |||||||||||||
Mortgage-backed securities | 1,707 | 38 | (2 | ) | 1,743 | — | |||||||||||||
States, municipalities, and political subdivisions | 2,173 | 52 | (2 | ) | 2,223 | — | |||||||||||||
$ | 8,430 | $ | 190 | $ | (68 | ) | $ | 8,552 | $ | — |
December 31, 2016 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 2,883 | $ | 32 | $ | (45 | ) | $ | 2,870 | $ | — | ||||||||
Foreign | 20,929 | 636 | (125 | ) | 21,440 | (5 | ) | ||||||||||||
Corporate securities | 23,736 | 580 | (167 | ) | 24,149 | (8 | ) | ||||||||||||
Mortgage-backed securities | 14,066 | 135 | (194 | ) | 14,007 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 17,922 | 72 | (345 | ) | 17,649 | — | |||||||||||||
$ | 79,536 | $ | 1,455 | $ | (876 | ) | $ | 80,115 | $ | (14 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 655 | $ | 9 | $ | (3 | ) | $ | 661 | $ | — | ||||||||
Foreign | 640 | 28 | (1 | ) | 667 | — | |||||||||||||
Corporate securities | 2,771 | 50 | (26 | ) | 2,795 | — | |||||||||||||
Mortgage-backed securities | 1,393 | 35 | — | 1,428 | — | ||||||||||||||
States, municipalities, and political subdivisions | 5,185 | 26 | (92 | ) | 5,119 | — | |||||||||||||
$ | 10,644 | $ | 148 | $ | (122 | ) | $ | 10,670 | $ | — |
December 31, 2015 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 2,481 | $ | 52 | $ | (5 | ) | $ | 2,528 | $ | — | ||||||||
Foreign | 13,190 | 468 | (213 | ) | 13,445 | (13 | ) | ||||||||||||
Corporate securities | 15,028 | 355 | (454 | ) | 14,929 | (28 | ) | ||||||||||||
Mortgage-backed securities | 9,827 | 183 | (52 | ) | 9,958 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 2,623 | 110 | (6 | ) | 2,727 | — | |||||||||||||
$ | 43,149 | $ | 1,168 | $ | (730 | ) | $ | 43,587 | $ | (42 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 733 | $ | 13 | $ | (1 | ) | $ | 745 | $ | — | ||||||||
Foreign | 763 | 30 | (8 | ) | 785 | — | |||||||||||||
Corporate securities | 3,054 | 57 | (55 | ) | 3,056 | — | |||||||||||||
Mortgage-backed securities | 1,707 | 38 | (2 | ) | 1,743 | — | |||||||||||||
States, municipalities, and political subdivisions | 2,173 | 52 | (2 | ) | 2,223 | — | |||||||||||||
$ | 8,430 | $ | 190 | $ | (68 | ) | $ | 8,552 | $ | — |
December 31 | December 31 | ||||||||||||||
2016 | 2015 | ||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Available for sale | |||||||||||||||
Due in 1 year or less | $ | 3,892 | $ | 3,913 | $ | 1,856 | $ | 1,865 | |||||||
Due after 1 year through 5 years | 24,027 | 24,429 | 14,936 | 15,104 | |||||||||||
Due after 5 years through 10 years | 27,262 | 27,379 | 12,258 | 12,173 | |||||||||||
Due after 10 years | 10,289 | 10,387 | 4,272 | 4,487 | |||||||||||
65,470 | 66,108 | 33,322 | 33,629 | ||||||||||||
Mortgage-backed securities | 14,066 | 14,007 | 9,827 | 9,958 | |||||||||||
$ | 79,536 | $ | 80,115 | $ | 43,149 | $ | 43,587 | ||||||||
Held to maturity | |||||||||||||||
Due in 1 year or less | $ | 430 | $ | 435 | $ | 492 | $ | 495 | |||||||
Due after 1 year through 5 years | 2,646 | 2,691 | 2,443 | 2,517 | |||||||||||
Due after 5 years through 10 years | 2,969 | 2,944 | 2,292 | 2,313 | |||||||||||
Due after 10 years | 3,206 | 3,172 | 1,496 | 1,484 | |||||||||||
9,251 | 9,242 | 6,723 | 6,809 | ||||||||||||
Mortgage-backed securities | 1,393 | 1,428 | 1,707 | 1,743 | |||||||||||
$ | 10,644 | $ | 10,670 | $ | 8,430 | $ | 8,552 |
Moody's Rating Category | 1-in-100 Year Default Rate | Historical Mean Default Rate | |||
Investment Grade: | |||||
Aaa-Baa | 0.0–1.3% | 0.0–0.3% | |||
Below Investment Grade: | |||||
Ba | 4.8 | % | 1.0 | % | |
B | 12.1 | % | 3.2 | % | |
Caa-C | 36.7 | % | 10.5 | % |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Fixed maturities: | |||||||||||
OTTI on fixed maturities, gross | $ | (89 | ) | $ | (142 | ) | $ | (64 | ) | ||
OTTI on fixed maturities recognized in OCI (pre-tax) | 8 | 39 | 7 | ||||||||
OTTI on fixed maturities, net | (81 | ) | (103 | ) | (57 | ) | |||||
Gross realized gains excluding OTTI | 183 | 158 | 213 | ||||||||
Gross realized losses excluding OTTI | (265 | ) | (235 | ) | (133 | ) | |||||
Total fixed maturities | (163 | ) | (180 | ) | 23 | ||||||
Equity securities: | |||||||||||
OTTI on equity securities | (8 | ) | (7 | ) | (8 | ) | |||||
Gross realized gains excluding OTTI | 65 | 47 | 22 | ||||||||
Gross realized losses excluding OTTI | (13 | ) | (11 | ) | (61 | ) | |||||
Total equity securities | 44 | 29 | (47 | ) | |||||||
OTTI on other investments | (14 | ) | (2 | ) | (3 | ) | |||||
Foreign exchange gains (losses) | 118 | (80 | ) | (40 | ) | ||||||
Investment and embedded derivative instruments | (33 | ) | 32 | (107 | ) | ||||||
Fair value adjustments on insurance derivative | 53 | (203 | ) | (217 | ) | ||||||
S&P put options and futures | (136 | ) | (10 | ) | (168 | ) | |||||
Other derivative instruments | (10 | ) | (12 | ) | 50 | ||||||
Other | (4 | ) | 6 | 2 | |||||||
Net realized gains (losses) | (145 | ) | (420 | ) | (507 | ) | |||||
Change in net unrealized appreciation (depreciation) on investments: | |||||||||||
Fixed maturities available for sale | 142 | (1,119 | ) | 734 | |||||||
Fixed maturities held to maturity | (59 | ) | 43 | (2 | ) | ||||||
Equity securities | 52 | (17 | ) | 77 | |||||||
Other | (51 | ) | (36 | ) | 35 | ||||||
Income tax (expense) benefit | 100 | 152 | (167 | ) | |||||||
Change in net unrealized appreciation (depreciation) on investments | 184 | (977 | ) | 677 | |||||||
Total net realized gains (losses) and change in net unrealized appreciation (depreciation) on investments | $ | 39 | $ | (1,397 | ) | $ | 170 |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Balance of credit losses related to securities still held – beginning of year | $ | 53 | $ | 28 | $ | 37 | |||||
Additions where no OTTI was previously recorded | 17 | 41 | 22 | ||||||||
Additions where an OTTI was previously recorded | 14 | 9 | 5 | ||||||||
Reductions for securities sold during the period | (49 | ) | (25 | ) | (36 | ) | |||||
Balance of credit losses related to securities still held – end of year | $ | 35 | $ | 53 | $ | 28 |
December 31 | December 31 | ||||||||||||||
2016 | 2015 | ||||||||||||||
(in millions of U.S. dollars) | Fair Value | Cost | Fair Value | Cost | |||||||||||
Investment funds | $ | 251 | $ | 126 | $ | 269 | $ | 138 | |||||||
Limited partnerships | 730 | 607 | 709 | 542 | |||||||||||
Partially-owned investment companies | 2,645 | 2,645 | 1,498 | 1,498 | |||||||||||
Life insurance policies | 248 | 248 | 222 | 222 | |||||||||||
Policy loans | 209 | 209 | 184 | 184 | |||||||||||
Trading securities | 296 | 295 | 284 | 284 | |||||||||||
Other | 140 | 140 | 125 | 125 | |||||||||||
Total | $ | 4,519 | $ | 4,270 | $ | 3,291 | $ | 2,993 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Carrying Value | Issued Share Capital | Ownership Percentage | Carrying Value | Issued Share Capital | Ownership Percentage | Domicile | ||||||||||||||||
Huatai Group | $ | 447 | $ | 624 | 20 | % | $ | 430 | $ | 624 | 20 | % | China | ||||||||||
Huatai Life Insurance Company | 99 | 428 | 20 | % | 107 | 428 | 20 | % | China | ||||||||||||||
Freisenbruch-Meyer | 8 | 5 | 40 | % | 9 | 5 | 40 | % | Bermuda | ||||||||||||||
Chubb Arabia Cooperative Insurance Company | 13 | 27 | 30 | % | 11 | 27 | 30 | % | Saudi Arabia | ||||||||||||||
Russian Reinsurance Company | 2 | 4 | 23 | % | 2 | 4 | 23 | % | Russia | ||||||||||||||
ABR Reinsurance Ltd. | 97 | 800 | 11 | % | 94 | 800 | 11 | % | Bermuda | ||||||||||||||
Total | $ | 666 | $ | 1,888 | $ | 653 | $ | 1,888 |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 2016 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 2,216 | $ | (48 | ) | $ | — | $ | — | $ | 2,216 | $ | (48 | ) | |||||||||
Foreign | 5,918 | (99 | ) | 386 | (27 | ) | 6,304 | (126 | ) | ||||||||||||||
Corporate securities | 7,021 | (149 | ) | 641 | (44 | ) | 7,662 | (193 | ) | ||||||||||||||
Mortgage-backed securities | 8,638 | (189 | ) | 234 | (5 | ) | 8,872 | (194 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 19,448 | (435 | ) | 49 | (2 | ) | 19,497 | (437 | ) | ||||||||||||||
Total fixed maturities | 43,241 | (920 | ) | 1,310 | (78 | ) | 44,551 | (998 | ) | ||||||||||||||
Equity securities | 199 | (21 | ) | — | — | 199 | (21 | ) | |||||||||||||||
Other investments | 201 | (18 | ) | — | — | 201 | (18 | ) | |||||||||||||||
Total | $ | 43,641 | $ | (959 | ) | $ | 1,310 | $ | (78 | ) | $ | 44,951 | $ | (1,037 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 2015 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 996 | $ | (5 | ) | $ | 153 | $ | (1 | ) | $ | 1,149 | $ | (6 | ) | ||||||||
Foreign | 3,953 | (148 | ) | 436 | (73 | ) | 4,389 | (221 | ) | ||||||||||||||
Corporate securities | 7,518 | (371 | ) | 738 | (138 | ) | 8,256 | (509 | ) | ||||||||||||||
Mortgage-backed securities | 3,399 | (42 | ) | 516 | (12 | ) | 3,915 | (54 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 556 | (6 | ) | 42 | (2 | ) | 598 | (8 | ) | ||||||||||||||
Total fixed maturities | 16,422 | (572 | ) | 1,885 | (226 | ) | 18,307 | (798 | ) | ||||||||||||||
Equity securities | 131 | (18 | ) | — | — | 131 | (18 | ) | |||||||||||||||
Other investments | 210 | (11 | ) | — | — | 210 | (11 | ) | |||||||||||||||
Total | $ | 16,763 | $ | (601 | ) | $ | 1,885 | $ | (226 | ) | $ | 18,648 | $ | (827 | ) |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Fixed maturities | $ | 2,779 | $ | 2,157 | $ | 2,199 | |||||
Short-term investments | 93 | 49 | 45 | ||||||||
Equity securities | 36 | 16 | 33 | ||||||||
Other | 98 | 86 | 94 | ||||||||
Gross investment income | 3,006 | 2,308 | 2,371 | ||||||||
Investment expenses | (141 | ) | (114 | ) | (119 | ) | |||||
Net investment income | $ | 2,865 | $ | 2,194 | $ | 2,252 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Trust funds | $ | 13,880 | $ | 11,862 | |||
Deposits with U.S. regulatory authorities | 2,203 | 1,242 | |||||
Deposits with non-U.S. regulatory authorities | 2,191 | 2,075 | |||||
Assets pledged under repurchase agreements | 1,461 | 1,459 | |||||
Other pledged assets | 435 | 392 | |||||
$ | 20,170 | $ | 17,030 |
|
% of total GMIB guaranteed value | Year of GMIB eligibility | Maximum annuitization rate(s) (per year) | Maximum annuitization rates based on | ||
67% | First year | 2% - 41% | Actual Experience | ||
Subsequent years | 1% - 78% | ||||
4% | First year | N/A | N/A (1) | ||
Subsequent years | 12%, 78% | Weighted average(2) | |||
29% | First year | 19%, 44% | Weighted average(2) | ||
Subsequent years | 12%, 31% |
December 31, 2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 2,175 | $ | 695 | $ | — | $ | 2,870 | |||||||
Foreign | — | 21,366 | 74 | 21,440 | |||||||||||
Corporate securities | — | 23,468 | 681 | 24,149 | |||||||||||
Mortgage-backed securities | — | 13,962 | 45 | 14,007 | |||||||||||
States, municipalities, and political subdivisions | — | 17,649 | — | 17,649 | |||||||||||
2,175 | 77,140 | 800 | 80,115 | ||||||||||||
Equity securities | 773 | — | 41 | 814 | |||||||||||
Short-term investments | 1,757 | 1,220 | 25 | 3,002 | |||||||||||
Other investments (1) | 384 | 259 | 225 | 868 | |||||||||||
Securities lending collateral | — | 1,092 | — | 1,092 | |||||||||||
Investment derivative instruments | 31 | — | — | 31 | |||||||||||
Other derivative instruments | 3 | — | — | 3 | |||||||||||
Separate account assets | 1,784 | 95 | — | 1,879 | |||||||||||
Total assets measured at fair value (1) | $ | 6,907 | $ | 79,806 | $ | 1,091 | $ | 87,804 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 54 | $ | — | $ | — | $ | 54 | |||||||
Other derivative instruments | — | — | 13 | 13 | |||||||||||
GLB (2) | — | — | 559 | 559 | |||||||||||
Total liabilities measured at fair value | $ | 54 | $ | — | $ | 572 | $ | 626 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,626 million and other investments of $25 million at December 31, 2016 measured using NAV as a practical expedient. |
(2) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. Refer to Note 5 c) for additional information. |
December 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 1,712 | $ | 816 | $ | — | $ | 2,528 | |||||||
Foreign | — | 13,388 | 57 | 13,445 | |||||||||||
Corporate securities | — | 14,755 | 174 | 14,929 | |||||||||||
Mortgage-backed securities | — | 9,905 | 53 | 9,958 | |||||||||||
States, municipalities, and political subdivisions | — | 2,727 | — | 2,727 | |||||||||||
1,712 | 41,591 | 284 | 43,587 | ||||||||||||
Equity securities | 481 | — | 16 | 497 | |||||||||||
Short-term investments | 7,171 | 3,275 | — | 10,446 | |||||||||||
Other investments (1) | 347 | 230 | 212 | 789 | |||||||||||
Securities lending collateral | — | 1,046 | — | 1,046 | |||||||||||
Investment derivative instruments | 12 | — | — | 12 | |||||||||||
Separate account assets | 1,464 | 88 | — | 1,552 | |||||||||||
Total assets measured at fair value (1) | $ | 11,187 | $ | 46,230 | $ | 512 | $ | 57,929 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 13 | $ | — | $ | — | $ | 13 | |||||||
Other derivative instruments | 4 | — | 6 | 10 | |||||||||||
GLB (2) | — | — | 609 | 609 | |||||||||||
Total liabilities measured at fair value | $ | 17 | $ | — | $ | 615 | $ | 632 |
(1) | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,477 million and other investments of $25 million at December 31, 2015 measured using NAV as a practical expedient. |
(2) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. Refer to Note 5 c) for additional information. |
December 31 | December 31 | ||||||||||||||||
2016 | 2015 | ||||||||||||||||
(in millions of U.S. dollars) | Expected Liquidation Period of Underlying Assets | Fair Value | Maximum Future Funding Commitments | Fair Value | Maximum Future Funding Commitments | ||||||||||||
Financial | 5 to 9 Years | $ | 548 | $ | 428 | $ | 300 | $ | 105 | ||||||||
Real Assets | 3 to 7 Years | 536 | 230 | 474 | 140 | ||||||||||||
Distressed | 5 to 9 Years | 485 | 179 | 261 | 218 | ||||||||||||
Private Credit | 3 to 7 Years | 236 | 259 | 265 | 209 | ||||||||||||
Traditional | 3 to 9 Years | 1,550 | 930 | 895 | 152 | ||||||||||||
Vintage | 1 to 2 Years | 21 | 14 | 13 | — | ||||||||||||
Investment funds | Not Applicable | 251 | — | 269 | — | ||||||||||||
$ | 3,627 | $ | 2,040 | $ | 2,477 | $ | 824 |
(in millions of U.S. dollars, except for percentages) | Fair Value at December 31, 2016 | Valuation Technique | Significant Unobservable Inputs | Ranges | ||||||
GLB(1) | $ | 559 | Actuarial model | Lapse rate | 3% – 34% | |||||
Annuitization rate | 0% – 78% |
(1) | Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits. |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | ||||||||||||||||||||||||||
Year Ended December 31, 2016 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | — | $ | 212 | $ | 6 | $ | 609 | |||||||||||||||
Transfers into Level 3 | 9 | 53 | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | (24 | ) | (10 | ) | — | — | (50 | ) | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | 1 | 15 | (1 | ) | 2 | — | (2 | ) | — | — | |||||||||||||||||||||
Net Realized Gains/Losses | (6 | ) | (13 | ) | — | 1 | — | 1 | 5 | (50 | ) | ||||||||||||||||||||
Purchases (2) | 70 | 566 | 1 | 27 | 75 | 33 | 2 | — | |||||||||||||||||||||||
Sales | (17 | ) | (59 | ) | (8 | ) | (5 | ) | — | — | — | — | |||||||||||||||||||
Settlements | (16 | ) | (45 | ) | — | — | — | (19 | ) | — | — | ||||||||||||||||||||
Balance, end of year | $ | 74 | $ | 681 | $ | 45 | $ | 41 | $ | 25 | $ | 225 | $ | 13 | $ | 559 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (5 | ) | $ | (11 | ) | $ | — | $ | — | $ | — | $ | 1 | $ | 5 | $ | (50 | ) |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. Refer to Note 5 c) for additional information. |
(2) | Includes acquired invested assets as a result of the Chubb Corp acquisition. |
Assets | Liabilities | ||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Other investments | Other derivative instruments | GLB(1) | |||||||||||||||||||||||
Year Ended December 31, 2015 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||
Balance, beginning of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | 204 | $ | 4 | $ | 406 | |||||||||||||
Transfers into Level 3 | 34 | 16 | — | — | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (2 | ) | (1 | ) | — | 3 | (6 | ) | — | — | |||||||||||||||||
Net Realized Gains/Losses | (1 | ) | (4 | ) | — | (2 | ) | — | 2 | 203 | |||||||||||||||||
Purchases | 15 | 52 | 41 | 13 | 33 | — | — | ||||||||||||||||||||
Sales | (3 | ) | (28 | ) | (2 | ) | — | — | — | — | |||||||||||||||||
Settlements | (8 | ) | (48 | ) | (1 | ) | — | (19 | ) | — | — | ||||||||||||||||
Balance, end of year | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | 212 | $ | 6 | $ | 609 | |||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (1 | ) | $ | (2 | ) | $ | — | $ | (2 | ) | $ | — | $ | 2 | $ | 203 |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $888 million at December 31, 2015 and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $609 million and $406 million, respectively. |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Other derivative instruments | GLB(1) | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Foreign | Corporate securities | MBS | Equity securities | Short-term investments | Other investments | |||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 196 | $ | — | $ | 193 | |||||||||||||||
Transfers into Level 3 | 10 | 37 | — | — | — | — | 2 | — | |||||||||||||||||||||||
Transfers out of Level 3 | (34 | ) | (23 | ) | — | (2 | ) | (7 | ) | — | — | — | |||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (1 | ) | (1 | ) | — | — | — | (1 | ) | — | — | ||||||||||||||||||||
Net Realized Gains/Losses | (3 | ) | (5 | ) | — | — | — | — | 2 | 213 | |||||||||||||||||||||
Purchases | 15 | 73 | 8 | 2 | — | 20 | — | — | |||||||||||||||||||||||
Sales | (4 | ) | (38 | ) | — | (2 | ) | — | — | — | — | ||||||||||||||||||||
Settlements | (5 | ) | (22 | ) | (1 | ) | — | — | (11 | ) | — | — | |||||||||||||||||||
Balance, end of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | — | $ | 204 | $ | 4 | $ | 406 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (4 | ) | $ | (5 | ) | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | 213 |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $663 million at December 31, 2014 and $427 million at December 31, 2013, which includes a fair value derivative adjustment of $406 million and $193 million, respectively. |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB(1) | ||||||||||||||||||||||||||
Year Ended December 31, 2016 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | — | $ | 212 | $ | 6 | $ | 609 | |||||||||||||||
Transfers into Level 3 | 9 | 53 | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | (24 | ) | (10 | ) | — | — | (50 | ) | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | 1 | 15 | (1 | ) | 2 | — | (2 | ) | — | — | |||||||||||||||||||||
Net Realized Gains/Losses | (6 | ) | (13 | ) | — | 1 | — | 1 | 5 | (50 | ) | ||||||||||||||||||||
Purchases (2) | 70 | 566 | 1 | 27 | 75 | 33 | 2 | — | |||||||||||||||||||||||
Sales | (17 | ) | (59 | ) | (8 | ) | (5 | ) | — | — | — | — | |||||||||||||||||||
Settlements | (16 | ) | (45 | ) | — | — | — | (19 | ) | — | — | ||||||||||||||||||||
Balance, end of year | $ | 74 | $ | 681 | $ | 45 | $ | 41 | $ | 25 | $ | 225 | $ | 13 | $ | 559 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (5 | ) | $ | (11 | ) | $ | — | $ | — | $ | — | $ | 1 | $ | 5 | $ | (50 | ) |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. Refer to Note 5 c) for additional information. |
(2) | Includes acquired invested assets as a result of the Chubb Corp acquisition. |
Assets | Liabilities | ||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Other investments | Other derivative instruments | GLB(1) | |||||||||||||||||||||||
Year Ended December 31, 2015 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||
Balance, beginning of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | 204 | $ | 4 | $ | 406 | |||||||||||||
Transfers into Level 3 | 34 | 16 | — | — | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (2 | ) | (1 | ) | — | 3 | (6 | ) | — | — | |||||||||||||||||
Net Realized Gains/Losses | (1 | ) | (4 | ) | — | (2 | ) | — | 2 | 203 | |||||||||||||||||
Purchases | 15 | 52 | 41 | 13 | 33 | — | — | ||||||||||||||||||||
Sales | (3 | ) | (28 | ) | (2 | ) | — | — | — | — | |||||||||||||||||
Settlements | (8 | ) | (48 | ) | (1 | ) | — | (19 | ) | — | — | ||||||||||||||||
Balance, end of year | $ | 57 | $ | 174 | $ | 53 | $ | 16 | $ | 212 | $ | 6 | $ | 609 | |||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (1 | ) | $ | (2 | ) | $ | — | $ | (2 | ) | $ | — | $ | 2 | $ | 203 |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $888 million at December 31, 2015 and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $609 million and $406 million, respectively. |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Other derivative instruments | GLB(1) | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Foreign | Corporate securities | MBS | Equity securities | Short-term investments | Other investments | |||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 196 | $ | — | $ | 193 | |||||||||||||||
Transfers into Level 3 | 10 | 37 | — | — | — | — | 2 | — | |||||||||||||||||||||||
Transfers out of Level 3 | (34 | ) | (23 | ) | — | (2 | ) | (7 | ) | — | — | — | |||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (1 | ) | (1 | ) | — | — | — | (1 | ) | — | — | ||||||||||||||||||||
Net Realized Gains/Losses | (3 | ) | (5 | ) | — | — | — | — | 2 | 213 | |||||||||||||||||||||
Purchases | 15 | 73 | 8 | 2 | — | 20 | — | — | |||||||||||||||||||||||
Sales | (4 | ) | (38 | ) | — | (2 | ) | — | — | — | — | ||||||||||||||||||||
Settlements | (5 | ) | (22 | ) | (1 | ) | — | — | (11 | ) | — | — | |||||||||||||||||||
Balance, end of year | $ | 22 | $ | 187 | $ | 15 | $ | 2 | $ | — | $ | 204 | $ | 4 | $ | 406 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (4 | ) | $ | (5 | ) | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | 213 |
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $663 million at December 31, 2014 and $427 million at December 31, 2013, which includes a fair value derivative adjustment of $406 million and $193 million, respectively. |
December 31, 2016 | Fair Value | Carrying Value | |||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 555 | $ | 106 | $ | — | $ | 661 | $ | 655 | |||||||||
Foreign | — | 667 | — | 667 | 640 | ||||||||||||||
Corporate securities | — | 2,782 | 13 | 2,795 | 2,771 | ||||||||||||||
Mortgage-backed securities | — | 1,428 | — | 1,428 | 1,393 | ||||||||||||||
States, municipalities, and political subdivisions | — | 5,119 | — | 5,119 | 5,185 | ||||||||||||||
Total assets | $ | 555 | $ | 10,102 | $ | 13 | $ | 10,670 | $ | 10,644 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,403 | $ | — | $ | 1,403 | $ | 1,403 | |||||||||
Short-term debt | — | 503 | — | 503 | 500 | ||||||||||||||
Long-term debt | — | 12,998 | — | 12,998 | 12,610 | ||||||||||||||
Trust preferred securities | — | 456 | — | 456 | 308 | ||||||||||||||
Total liabilities | $ | — | $ | 15,360 | $ | — | $ | 15,360 | $ | 14,821 |
December 31, 2015 | Fair Value | Carrying Value | |||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 583 | $ | 162 | $ | — | $ | 745 | $ | 733 | |||||||||
Foreign | — | 785 | — | 785 | 763 | ||||||||||||||
Corporate securities | — | 3,042 | 14 | 3,056 | 3,054 | ||||||||||||||
Mortgage-backed securities | — | 1,743 | — | 1,743 | 1,707 | ||||||||||||||
States, municipalities, and political subdivisions | — | 2,223 | — | 2,223 | 2,173 | ||||||||||||||
Total assets | $ | 583 | $ | 7,955 | $ | 14 | $ | 8,552 | $ | 8,430 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,404 | $ | — | $ | 1,404 | $ | 1,404 | |||||||||
Long-term debt | — | 9,678 | — | 9,678 | 9,389 | ||||||||||||||
Trust preferred securities | — | 446 | — | 446 | 307 | ||||||||||||||
Total liabilities | $ | — | $ | 11,528 | $ | — | $ | 11,528 | $ | 11,100 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Premiums written | |||||||||||
Direct | $ | 31,543 | $ | 19,879 | $ | 20,069 | |||||
Assumed | 3,440 | 3,932 | 3,321 | ||||||||
Ceded | (6,838 | ) | (6,098 | ) | (5,591 | ) | |||||
Net | $ | 28,145 | $ | 17,713 | $ | 17,799 | |||||
Premiums earned | |||||||||||
Direct | $ | 31,811 | $ | 19,355 | $ | 19,555 | |||||
Assumed | 3,744 | 3,676 | 3,336 | ||||||||
Ceded | (6,806 | ) | (5,818 | ) | (5,465 | ) | |||||
Net | $ | 28,749 | $ | 17,213 | $ | 17,426 |
December 31 | December 31 | |||||||
(in millions of U.S. dollars) | 2016 | 2015 | ||||||
Reinsurance recoverable on unpaid losses and loss expenses (1) | $ | 12,708 | $ | 10,741 | ||||
Reinsurance recoverable on paid losses and loss expenses (1) | 869 | 645 | ||||||
Reinsurance recoverable on losses and loss expenses (1) | $ | 13,577 | $ | 11,386 |
(1) | Net of a provision for uncollectible reinsurance. |
December 31, 2016 | Gross Reinsurance Recoverable on Loss and Loss Expenses | Provision for Uncollectible Reinsurance | % of Gross Reinsurance Recoverable | |||||||
(in millions of U.S. dollars, except for percentages) | ||||||||||
Categories | ||||||||||
Largest reinsurers | $ | 5,064 | $ | 59 | 1.2 | % | ||||
Other reinsurers rated A- or better | 4,699 | 52 | 1.1 | % | ||||||
Other reinsurers with ratings lower than A- or not rated | 586 | 70 | 11.9 | % | ||||||
Pools | 577 | 11 | 1.9 | % | ||||||
Structured settlements | 557 | 14 | 2.5 | % | ||||||
Captives | 2,172 | 16 | 0.7 | % | ||||||
Other | 222 | 78 | 35.1 | % | ||||||
Total | $ | 13,877 | $ | 300 | 2.2 | % |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
GMDB | |||||||||||
Net premiums earned | $ | 55 | $ | 61 | $ | 71 | |||||
Policy benefits and other reserve adjustments | $ | 45 | $ | 34 | $ | 50 | |||||
GLB | |||||||||||
Net premiums earned | $ | 118 | $ | 121 | $ | 138 | |||||
Policy benefits and other reserve adjustments | 52 | 45 | 36 | ||||||||
Net realized gains (losses) | 48 | (203 | ) | (213 | ) | ||||||
Gain (loss) recognized in Net income | $ | 114 | $ | (127 | ) | $ | (111 | ) | |||
Net cash received | 79 | 98 | 125 | ||||||||
Net decrease (increase) in liability | $ | 35 | $ | (225 | ) | $ | (236 | ) |
(in millions of U.S. dollars, except for percentages) | Net amount at risk | |||||||||||
Reinsurance covering | 2016 | 2015 | 2016 Future claims discount rate | Other assumptions | Total claims at 100% mortality at December 31, 2016(1) | |||||||
GMDB Risk Only | $ | 341 | $ | 364 | 3.3% - 3.8% | No lapses or withdrawals | $ | 202 | ||||
Mortality according to 100% of the Annuity 2000 mortality table | ||||||||||||
GLB Risk Only | $ | 800 | $ | 733 | 4.3% - 4.8% | No deaths, lapses or withdrawals | N/A | |||||
Annuitization at a frequency most disadvantageous to Chubb(2) | ||||||||||||
Claim calculated using interest rates in line with rates used to calculate reserve | ||||||||||||
Both Risks: (3) | GMDB | $ | 88 | $ | 89 | 4.3% - 4.8% | No lapses or withdrawals | $ | 22 | |||
Mortality according to 100% of the Annuity 2000 mortality table | ||||||||||||
GLB | $ | 464 | $ | 422 | 4.3% - 4.8% | Annuitization at a frequency most disadvantageous to Chubb(2) | N/A | |||||
Claim calculated using interest rates in line with rates used to calculate reserve |
|
(in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Chubb Consolidated | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,211 | $ | — | $ | 134 | $ | 2,366 | $ | 365 | $ | 828 | $ | 4,904 | |||||||||||||
Purchase price allocation adjustment | — | — | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||||
Acquisition of Fireman's Fund | — | 196 | — | — | — | — | 196 | ||||||||||||||||||||
Foreign exchange revaluation and other | (8 | ) | — | — | (284 | ) | — | (8 | ) | (300 | ) | ||||||||||||||||
Balance at December 31, 2015 | $ | 1,203 | $ | 196 | $ | 134 | $ | 2,078 | $ | 365 | $ | 820 | $ | 4,796 | |||||||||||||
Acquisition of Chubb Corp | 5,714 | 2,025 | — | 2,775 | — | — | 10,514 | ||||||||||||||||||||
Foreign exchange revaluation and other | 44 | 14 | — | (36 | ) | — | — | 22 | |||||||||||||||||||
Balance at December 31, 2016 | $ | 6,961 | $ | 2,235 | $ | 134 | $ | 4,817 | $ | 365 | $ | 820 | $ | 15,332 |
(in millions of U.S. dollars) | Purchase price allocation | Estimated useful life | |||
Definite life | |||||
Unearned premium reserves (UPR) intangible asset | $ | 1,550 | 1 year | ||
Agency distribution relationships and renewal rights | 3,150 | 24 years | |||
Internally developed technology | 95 | 3 years | |||
Indefinite life | |||||
Trademarks | 2,800 | Indefinite | |||
Licenses | 50 | Indefinite | |||
Syndicate capacity | 10 | Indefinite | |||
Total identified intangible assets | $ | 7,655 |
Associated with the Chubb Corp Acquisition | |||||||||||||||||||||||
For the Years Ending December 31 (in millions of U.S. dollars) | Agency distribution relationships and renewal rights | Internally developed technology | Fair value adjustment to Unpaid losses and loss expense (1) | Total | Other intangible assets | Total Amortization of purchased intangibles | |||||||||||||||||
2017 | $ | 295 | $ | 32 | $ | (160 | ) | $ | 167 | $ | 84 | $ | 251 | ||||||||||
2018 | 323 | 32 | (101 | ) | 254 | 74 | 328 | ||||||||||||||||
2019 | 280 | — | (62 | ) | 218 | 68 | 286 | ||||||||||||||||
2020 | 239 | — | (35 | ) | 204 | 59 | 263 | ||||||||||||||||
2021 | 217 | — | (20 | ) | 197 | 52 | 249 | ||||||||||||||||
Total | $ | 1,354 | $ | 64 | $ | (378 | ) | $ | 1,040 | $ | 337 | $ | 1,377 |
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Balance, beginning of year | $ | 395 | $ | 466 | $ | 536 | |||||
Amortization of VOBA (1) | (41 | ) | (42 | ) | (51 | ) | |||||
Foreign exchange revaluation | 1 | (29 | ) | (19 | ) | ||||||
Balance, end of year | $ | 355 | $ | 395 | $ | 466 |
(1) | Recognized in Policy acquisition costs in the Consolidated statements of operations. |
For the Year Ending December 31 | VOBA | ||
(in millions of U.S. dollars) | |||
2017 | $ | 35 | |
2018 | 31 | ||
2019 | 27 | ||
2020 | 23 | ||
2021 | 20 | ||
Total | $ | 136 |
|
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 3,682 | $ | 3,760 | $ | 3,719 | $ | 3,755 | $ | 3,692 | $ | 3,447 | $ | 3,318 | $ | 3,300 | $ | 3,253 | $ | 3,105 | $ | 249 | |||||||||||||||||||||
2008 | 3,716 | 3,719 | 3,708 | 3,682 | 3,551 | 3,290 | 3,217 | 3,142 | 3,036 | 335 | |||||||||||||||||||||||||||||||||
2009 | 3,682 | 3,630 | 3,599 | 3,556 | 3,454 | 3,205 | 3,130 | 3,060 | 447 | ||||||||||||||||||||||||||||||||||
2010 | 3,507 | 3,468 | 3,495 | 3,474 | 3,334 | 3,169 | 3,045 | 559 | |||||||||||||||||||||||||||||||||||
2011 | 3,437 | 3,498 | 3,525 | 3,539 | 3,472 | 3,360 | 856 | ||||||||||||||||||||||||||||||||||||
2012 | 3,489 | 3,529 | 3,519 | 3,480 | 3,441 | 1,168 | |||||||||||||||||||||||||||||||||||||
2013 | 3,490 | 3,479 | 3,481 | 3,477 | 1,588 | ||||||||||||||||||||||||||||||||||||||
2014 | 3,460 | 3,501 | 3,585 | 1,969 | |||||||||||||||||||||||||||||||||||||||
2015 | 3,502 | 3,668 | 2,639 | ||||||||||||||||||||||||||||||||||||||||
2016 | 3,474 | 3,082 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 33,251 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 76 | $ | 447 | $ | 922 | $ | 1,488 | $ | 1,980 | $ | 2,301 | $ | 2,497 | $ | 2,618 | $ | 2,700 | $ | 2,757 | 21 | |||||||||||||||||||||
2008 | 115 | 471 | 987 | 1,500 | 1,837 | 2,169 | 2,394 | 2,496 | 2,591 | 21 | ||||||||||||||||||||||||||||||||
2009 | 86 | 425 | 979 | 1,460 | 1,813 | 2,118 | 2,307 | 2,461 | 21 | |||||||||||||||||||||||||||||||||
2010 | 97 | 501 | 981 | 1,421 | 1,757 | 2,125 | 2,294 | 20 | ||||||||||||||||||||||||||||||||||
2011 | 111 | 538 | 1,069 | 1,638 | 2,045 | 2,310 | 21 | |||||||||||||||||||||||||||||||||||
2012 | 114 | 532 | 1,028 | 1,535 | 1,953 | 21 | ||||||||||||||||||||||||||||||||||||
2013 | 101 | 468 | 1,089 | 1,489 | 22 | |||||||||||||||||||||||||||||||||||||
2014 | 116 | 576 | 1,124 | 23 | ||||||||||||||||||||||||||||||||||||||
2015 | 117 | 544 | 26 | |||||||||||||||||||||||||||||||||||||||
2016 | 142 | 19 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 17,665 |
North America Commercial P&C Insurance — Liability (continued) | ||||
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 1,726 | ||
All Accident years | $ | 17,312 |
North America Commercial P&C Insurance — Non-Casualty (continued) | |||||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,271 | $ | 1,190 | $ | 1,181 | $ | 1,168 | $ | 1,151 | $ | 1,137 | $ | 1,138 | $ | 1,139 | $ | 1,138 | $ | 1,139 | $ | — | |||||||||||||||||||||
2008 | 1,927 | 1,880 | 1,852 | 1,836 | 1,845 | 1,849 | 1,859 | 1,846 | 1,845 | 29 | |||||||||||||||||||||||||||||||||
2009 | 1,366 | 1,395 | 1,367 | 1,357 | 1,356 | 1,353 | 1,355 | 1,369 | 28 | ||||||||||||||||||||||||||||||||||
2010 | 1,509 | 1,568 | 1,486 | 1,442 | 1,432 | 1,424 | 1,420 | 15 | |||||||||||||||||||||||||||||||||||
2011 | 1,985 | 1,957 | 1,922 | 1,916 | 1,895 | 1,915 | 43 | ||||||||||||||||||||||||||||||||||||
2012 | 2,069 | 1,971 | 1,938 | 1,909 | 1,901 | 53 | |||||||||||||||||||||||||||||||||||||
2013 | 1,487 | 1,446 | 1,359 | 1,383 | 73 | ||||||||||||||||||||||||||||||||||||||
2014 | 1,755 | 1,755 | 1,681 | 103 | |||||||||||||||||||||||||||||||||||||||
2015 | 1,839 | 1,828 | 281 | ||||||||||||||||||||||||||||||||||||||||
2016 | 2,012 | 828 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 16,493 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 563 | $ | 987 | $ | 1,076 | $ | 1,117 | $ | 1,124 | $ | 1,126 | $ | 1,130 | $ | 1,133 | $ | 1,134 | $ | 1,135 | 906 | |||||||||||||||||||||
2008 | 929 | 1,607 | 1,708 | 1,766 | 1,797 | 1,800 | 1,807 | 1,813 | 1,813 | 995 | ||||||||||||||||||||||||||||||||
2009 | 630 | 1,118 | 1,213 | 1,268 | 1,280 | 1,322 | 1,332 | 1,335 | 1,067 | |||||||||||||||||||||||||||||||||
2010 | 703 | 1,231 | 1,335 | 1,374 | 1,394 | 1,400 | 1,401 | 1,054 | ||||||||||||||||||||||||||||||||||
2011 | 942 | 1,585 | 1,742 | 1,822 | 1,832 | 1,856 | 1,045 | |||||||||||||||||||||||||||||||||||
2012 | 727 | 1,612 | 1,745 | 1,810 | 1,830 | 1,027 | ||||||||||||||||||||||||||||||||||||
2013 | 630 | 1,119 | 1,241 | 1,291 | 1,068 | |||||||||||||||||||||||||||||||||||||
2014 | 833 | 1,405 | 1,539 | 1,095 | ||||||||||||||||||||||||||||||||||||||
2015 | 712 | 1,334 | 1,164 | |||||||||||||||||||||||||||||||||||||||
2016 | 852 | 1,098 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 14,386 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 143 | ||
All Accident years | $ | 2,250 |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,549 | $ | 1,538 | $ | 1,460 | $ | 1,431 | $ | 1,416 | $ | 1,411 | $ | 1,402 | $ | 1,400 | $ | 1,398 | $ | 1,398 | $ | 6 | |||||||||||||||||||||
2008 | 1,777 | 1,777 | 1,746 | 1,722 | 1,693 | 1,675 | 1,667 | 1,659 | 1,659 | 6 | |||||||||||||||||||||||||||||||||
2009 | 1,608 | 1,595 | 1,565 | 1,551 | 1,543 | 1,536 | 1,536 | 1,532 | 9 | ||||||||||||||||||||||||||||||||||
2010 | 1,868 | 1,876 | 1,853 | 1,836 | 1,832 | 1,828 | 1,823 | 11 | |||||||||||||||||||||||||||||||||||
2011 | 2,205 | 2,207 | 2,183 | 2,171 | 2,162 | 2,158 | 17 | ||||||||||||||||||||||||||||||||||||
2012 | 2,183 | 2,181 | 2,181 | 2,189 | 2,183 | 25 | |||||||||||||||||||||||||||||||||||||
2013 | 1,855 | 1,883 | 1,891 | 1,894 | 29 | ||||||||||||||||||||||||||||||||||||||
2014 | 2,202 | 2,203 | 2,189 | 141 | |||||||||||||||||||||||||||||||||||||||
2015 | 2,491 | 2,546 | 213 | ||||||||||||||||||||||||||||||||||||||||
2016 | 2,437 | 609 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 19,819 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 843 | $ | 1,182 | $ | 1,267 | $ | 1,328 | $ | 1,353 | $ | 1,370 | $ | 1,377 | $ | 1,384 | $ | 1,387 | $ | 1,387 | 127 | |||||||||||||||||||||
2008 | 974 | 1,406 | 1,518 | 1,584 | 1,620 | 1,636 | 1,642 | 1,644 | 1,648 | 139 | ||||||||||||||||||||||||||||||||
2009 | 886 | 1,234 | 1,345 | 1,437 | 1,484 | 1,501 | 1,511 | 1,519 | 125 | |||||||||||||||||||||||||||||||||
2010 | 1,152 | 1,521 | 1,669 | 1,727 | 1,770 | 1,792 | 1,803 | 149 | ||||||||||||||||||||||||||||||||||
2011 | 1,358 | 1,833 | 1,969 | 2,049 | 2,103 | 2,127 | 168 | |||||||||||||||||||||||||||||||||||
2012 | 1,175 | 1,804 | 1,955 | 2,061 | 2,115 | 173 | ||||||||||||||||||||||||||||||||||||
2013 | 1,040 | 1,500 | 1,683 | 1,782 | 126 | |||||||||||||||||||||||||||||||||||||
2014 | 1,308 | 1,762 | 1,923 | 134 | ||||||||||||||||||||||||||||||||||||||
2015 | 1,497 | 2,081 | 137 | |||||||||||||||||||||||||||||||||||||||
2016 | 1,452 | 120 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 17,837 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 39 | ||
All Accident years | $ | 2,021 |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 726 | $ | 682 | $ | 659 | $ | 630 | $ | 611 | $ | 611 | $ | 599 | $ | 591 | $ | 597 | $ | 596 | $ | 24 | |||||||||||||||||||||
2008 | 903 | 942 | 910 | 879 | 856 | 856 | 849 | 853 | 847 | 18 | |||||||||||||||||||||||||||||||||
2009 | 718 | 710 | 665 | 640 | 593 | 557 | 548 | 546 | 16 | ||||||||||||||||||||||||||||||||||
2010 | 737 | 736 | 727 | 668 | 639 | 606 | 608 | 27 | |||||||||||||||||||||||||||||||||||
2011 | 696 | 717 | 703 | 675 | 659 | 651 | 40 | ||||||||||||||||||||||||||||||||||||
2012 | 748 | 714 | 682 | 668 | 633 | 60 | |||||||||||||||||||||||||||||||||||||
2013 | 619 | 640 | 632 | 621 | 121 | ||||||||||||||||||||||||||||||||||||||
2014 | 655 | 658 | 651 | 176 | |||||||||||||||||||||||||||||||||||||||
2015 | 538 | 525 | 211 | ||||||||||||||||||||||||||||||||||||||||
2016 | 563 | 408 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,241 |
North America Commercial P&C Insurance — Other Casualty (continued) | ||||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 112 | $ | 274 | $ | 379 | $ | 452 | $ | 489 | $ | 527 | $ | 540 | $ | 547 | $ | 558 | $ | 564 | 24 | |||||||||||||||||||||
2008 | 210 | 464 | 604 | 690 | 748 | 777 | 798 | 807 | 815 | 25 | ||||||||||||||||||||||||||||||||
2009 | 106 | 281 | 378 | 432 | 471 | 500 | 511 | 520 | 20 | |||||||||||||||||||||||||||||||||
2010 | 144 | 334 | 430 | 481 | 517 | 560 | 571 | 21 | ||||||||||||||||||||||||||||||||||
2011 | 131 | 335 | 455 | 522 | 561 | 585 | 23 | |||||||||||||||||||||||||||||||||||
2012 | 108 | 307 | 413 | 484 | 538 | 24 | ||||||||||||||||||||||||||||||||||||
2013 | 115 | 292 | 372 | 452 | 21 | |||||||||||||||||||||||||||||||||||||
2014 | 113 | 289 | 387 | 22 | ||||||||||||||||||||||||||||||||||||||
2015 | 80 | 205 | 20 | |||||||||||||||||||||||||||||||||||||||
2016 | 74 | 17 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,711 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 241 | ||
All Accident years | $ | 1,771 |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,068 | $ | 1,042 | $ | 1,026 | $ | 1,018 | $ | 976 | $ | 943 | $ | 944 | $ | 934 | $ | 933 | $ | 913 | $ | 171 | |||||||||||||||||||||
2008 | 1,018 | 993 | 997 | 991 | 966 | 952 | 952 | 948 | 932 | 185 | |||||||||||||||||||||||||||||||||
2009 | 960 | 933 | 933 | 928 | 908 | 902 | 889 | 877 | 220 | ||||||||||||||||||||||||||||||||||
2010 | 985 | 988 | 1,003 | 1,008 | 1,004 | 994 | 972 | 254 | |||||||||||||||||||||||||||||||||||
2011 | 957 | 963 | 978 | 982 | 984 | 954 | 276 | ||||||||||||||||||||||||||||||||||||
2012 | 956 | 940 | 957 | 967 | 932 | 321 | |||||||||||||||||||||||||||||||||||||
2013 | 1,013 | 1,031 | 1,043 | 1,047 | 374 | ||||||||||||||||||||||||||||||||||||||
2014 | 1,106 | 1,111 | 1,129 | 526 | |||||||||||||||||||||||||||||||||||||||
2015 | 1,179 | 1,157 | 588 | ||||||||||||||||||||||||||||||||||||||||
2016 | 1,259 | 905 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 10,172 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 121 | $ | 281 | $ | 386 | $ | 451 | $ | 502 | $ | 550 | $ | 580 | $ | 606 | $ | 625 | $ | 641 | 351 | |||||||||||||||||||||
2008 | 125 | 276 | 370 | 436 | 500 | 542 | 574 | 602 | 627 | 333 | ||||||||||||||||||||||||||||||||
2009 | 108 | 260 | 347 | 412 | 463 | 506 | 535 | 559 | 283 | |||||||||||||||||||||||||||||||||
2010 | 125 | 303 | 414 | 495 | 548 | 587 | 612 | 304 | ||||||||||||||||||||||||||||||||||
2011 | 119 | 294 | 410 | 480 | 529 | 560 | 287 | |||||||||||||||||||||||||||||||||||
2012 | 111 | 272 | 365 | 435 | 483 | 288 | ||||||||||||||||||||||||||||||||||||
2013 | 107 | 286 | 415 | 499 | 301 | |||||||||||||||||||||||||||||||||||||
2014 | 113 | 296 | 408 | 338 | ||||||||||||||||||||||||||||||||||||||
2015 | 117 | 302 | 338 | |||||||||||||||||||||||||||||||||||||||
2016 | 123 | 275 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,814 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 2,226 | ||
All Accident years | $ | 7,584 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 12 | % | 17 | % | 11 | % | 8 | % | 6 | % | 4 | % | 3 | % | 3 | % | 2 | % | 2 | % |
Global Reinsurance — Property (continued) | |||||||||||||||||||||||||||||||||||||||||||
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 107 | $ | 106 | $ | 97 | $ | 91 | $ | 90 | $ | 88 | $ | 87 | $ | 87 | $ | 87 | $ | 86 | $ | 2 | |||||||||||||||||||||
2008 | 223 | 214 | 206 | 206 | 206 | 208 | 210 | 209 | 208 | — | |||||||||||||||||||||||||||||||||
2009 | 99 | 113 | 105 | 105 | 103 | 100 | 100 | 100 | — | ||||||||||||||||||||||||||||||||||
2010 | 155 | 179 | 173 | 172 | 178 | 179 | 180 | 6 | |||||||||||||||||||||||||||||||||||
2011 | 227 | 224 | 224 | 220 | 221 | 222 | 1 | ||||||||||||||||||||||||||||||||||||
2012 | 175 | 154 | 149 | 142 | 141 | 4 | |||||||||||||||||||||||||||||||||||||
2013 | 117 | 117 | 109 | 105 | (2 | ) | |||||||||||||||||||||||||||||||||||||
2014 | 125 | 142 | 142 | 6 | |||||||||||||||||||||||||||||||||||||||
2015 | 98 | 105 | 9 | ||||||||||||||||||||||||||||||||||||||||
2016 | 143 | 29 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,432 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 23 | $ | 65 | $ | 77 | $ | 81 | $ | 84 | $ | 85 | $ | 85 | $ | 86 | $ | 86 | $ | 86 | 0.215 | |||||||||||||||||||||
2008 | 65 | 139 | 169 | 194 | 205 | 207 | 208 | 208 | 208 | 0.157 | ||||||||||||||||||||||||||||||||
2009 | 41 | 79 | 90 | 95 | 96 | 98 | 98 | 98 | 0.107 | |||||||||||||||||||||||||||||||||
2010 | 40 | 137 | 157 | 167 | 171 | 173 | 173 | 0.095 | ||||||||||||||||||||||||||||||||||
2011 | 75 | 151 | 175 | 198 | 214 | 217 | 0.103 | |||||||||||||||||||||||||||||||||||
2012 | 29 | 95 | 117 | 125 | 129 | 0.084 | ||||||||||||||||||||||||||||||||||||
2013 | 38 | 85 | 98 | 103 | 0.097 | |||||||||||||||||||||||||||||||||||||
2014 | 56 | 112 | 127 | 0.081 | ||||||||||||||||||||||||||||||||||||||
2015 | 50 | 87 | 0.086 | |||||||||||||||||||||||||||||||||||||||
2016 | 50 | 0.087 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,278 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | — | ||
All Accident years | $ | 154 |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,224 | $ | 1,214 | $ | 1,209 | $ | 1,191 | $ | 1,189 | $ | 1,165 | $ | 1,181 | $ | 1,178 | $ | 1,177 | $ | 1,184 | $ | 5 | |||||||||||||||||||||
2008 | 1,364 | 1,360 | 1,318 | 1,294 | 1,302 | 1,287 | 1,284 | 1,280 | 1,269 | 14 | |||||||||||||||||||||||||||||||||
2009 | 1,315 | 1,288 | 1,203 | 1,176 | 1,160 | 1,143 | 1,143 | 1,137 | 8 | ||||||||||||||||||||||||||||||||||
2010 | 1,434 | 1,449 | 1,424 | 1,424 | 1,413 | 1,400 | 1,392 | 30 | |||||||||||||||||||||||||||||||||||
2011 | 1,665 | 1,728 | 1,677 | 1,644 | 1,631 | 1,620 | 1 | ||||||||||||||||||||||||||||||||||||
2012 | 1,472 | 1,473 | 1,442 | 1,401 | 1,400 | 43 | |||||||||||||||||||||||||||||||||||||
2013 | 1,530 | 1,521 | 1,474 | 1,436 | 59 | ||||||||||||||||||||||||||||||||||||||
2014 | 1,601 | 1,664 | 1,622 | 63 | |||||||||||||||||||||||||||||||||||||||
2015 | 1,705 | 1,812 | 192 | ||||||||||||||||||||||||||||||||||||||||
2016 | 1,685 | 424 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 14,557 |
Overseas General Insurance — Non-Casualty (continued) | ||||||||||||||||||||||||||||||||||||||||||
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 426 | $ | 861 | $ | 1,032 | $ | 1,091 | $ | 1,124 | $ | 1,140 | $ | 1,147 | $ | 1,152 | $ | 1,159 | $ | 1,164 | 183 | |||||||||||||||||||||
2008 | 479 | 985 | 1,120 | 1,183 | 1,206 | 1,215 | 1,225 | 1,233 | 1,233 | 206 | ||||||||||||||||||||||||||||||||
2009 | 449 | 882 | 1,010 | 1,073 | 1,096 | 1,106 | 1,113 | 1,116 | 234 | |||||||||||||||||||||||||||||||||
2010 | 523 | 1,028 | 1,218 | 1,278 | 1,316 | 1,328 | 1,334 | 252 | ||||||||||||||||||||||||||||||||||
2011 | 631 | 1,272 | 1,465 | 1,519 | 1,549 | 1,563 | 268 | |||||||||||||||||||||||||||||||||||
2012 | 553 | 1,050 | 1,233 | 1,290 | 1,311 | 283 | ||||||||||||||||||||||||||||||||||||
2013 | 569 | 1,088 | 1,272 | 1,301 | 281 | |||||||||||||||||||||||||||||||||||||
2014 | 622 | 1,209 | 1,394 | 269 | ||||||||||||||||||||||||||||||||||||||
2015 | 692 | 1,315 | 256 | |||||||||||||||||||||||||||||||||||||||
2016 | 789 | 191 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,520 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 65 | ||
All Accident years | $ | 2,102 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 39 | % | 37 | % | 12 | % | 4 | % | 2 | % | 1 | % | 1 | % | — | % | — | % | — | % |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 1,136 | $ | 1,174 | $ | 1,180 | $ | 1,163 | $ | 1,080 | $ | 1,021 | $ | 932 | $ | 888 | $ | 867 | $ | 848 | $ | 21 | |||||||||||||||||||||
2008 | 1,189 | 1,301 | 1,386 | 1,389 | 1,398 | 1,360 | 1,290 | 1,273 | 1,267 | 105 | |||||||||||||||||||||||||||||||||
2009 | 1,214 | 1,357 | 1,400 | 1,414 | 1,411 | 1,300 | 1,195 | 1,191 | 124 | ||||||||||||||||||||||||||||||||||
2010 | 1,170 | 1,203 | 1,280 | 1,349 | 1,284 | 1,239 | 1,118 | 162 | |||||||||||||||||||||||||||||||||||
2011 | 1,239 | 1,232 | 1,222 | 1,217 | 1,140 | 1,062 | 240 | ||||||||||||||||||||||||||||||||||||
2012 | 1,253 | 1,196 | 1,257 | 1,278 | 1,269 | 373 | |||||||||||||||||||||||||||||||||||||
2013 | 1,229 | 1,219 | 1,231 | 1,274 | 537 | ||||||||||||||||||||||||||||||||||||||
2014 | 1,242 | 1,286 | 1,285 | 626 | |||||||||||||||||||||||||||||||||||||||
2015 | 1,186 | 1,252 | 719 | ||||||||||||||||||||||||||||||||||||||||
2016 | 1,181 | 914 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,747 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 95 | $ | 287 | $ | 425 | $ | 550 | $ | 631 | $ | 680 | $ | 715 | $ | 743 | $ | 776 | $ | 787 | 37 | |||||||||||||||||||||
2008 | 120 | 295 | 455 | 618 | 759 | 859 | 931 | 986 | 1,036 | 37 | ||||||||||||||||||||||||||||||||
2009 | 119 | 330 | 505 | 642 | 734 | 791 | 860 | 950 | 36 | |||||||||||||||||||||||||||||||||
2010 | 106 | 266 | 461 | 602 | 707 | 794 | 843 | 38 | ||||||||||||||||||||||||||||||||||
2011 | 88 | 240 | 382 | 511 | 610 | 686 | 39 | |||||||||||||||||||||||||||||||||||
2012 | 74 | 243 | 422 | 569 | 677 | 40 | ||||||||||||||||||||||||||||||||||||
2013 | 87 | 260 | 413 | 555 | 41 | |||||||||||||||||||||||||||||||||||||
2014 | 114 | 289 | 459 | 41 | ||||||||||||||||||||||||||||||||||||||
2015 | 93 | 283 | 41 | |||||||||||||||||||||||||||||||||||||||
2016 | 129 | 29 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,405 |
Overseas General Insurance — Casualty (continued) | ||||
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 339 | ||
All Accident years | $ | 5,681 |
Net Incurred Loss and Allocated Loss Adjustment Expenses | |||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Net IBNR Reserves | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | ||||||||||||||||||||||||||||||||
2007 | $ | 655 | $ | 670 | $ | 670 | $ | 641 | $ | 620 | $ | 606 | $ | 581 | $ | 570 | $ | 564 | $ | 558 | $ | 70 | |||||||||||||||||||||
2008 | 488 | 512 | 528 | 513 | 503 | 480 | 480 | 475 | 474 | 55 | |||||||||||||||||||||||||||||||||
2009 | 356 | 404 | 404 | 409 | 401 | 383 | 365 | 354 | 35 | ||||||||||||||||||||||||||||||||||
2010 | 442 | 472 | 479 | 485 | 472 | 467 | 457 | 84 | |||||||||||||||||||||||||||||||||||
2011 | 449 | 461 | 474 | 472 | 467 | 458 | 67 | ||||||||||||||||||||||||||||||||||||
2012 | 440 | 437 | 440 | 440 | 425 | 30 | |||||||||||||||||||||||||||||||||||||
2013 | 359 | 363 | 362 | 361 | 54 | ||||||||||||||||||||||||||||||||||||||
2014 | 367 | 367 | 373 | 69 | |||||||||||||||||||||||||||||||||||||||
2015 | 328 | 333 | 87 | ||||||||||||||||||||||||||||||||||||||||
2016 | 256 | 141 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,049 |
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | December 31 2016 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Unaudited | Reported Claims (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | |||||||||||||||||||||||||||||||
2007 | $ | 52 | $ | 122 | $ | 200 | $ | 267 | $ | 318 | $ | 363 | $ | 393 | $ | 417 | $ | 437 | $ | 445 | 1.470 | |||||||||||||||||||||
2008 | 46 | 113 | 187 | 239 | 286 | 319 | 343 | 362 | 373 | 1.292 | ||||||||||||||||||||||||||||||||
2009 | 49 | 109 | 151 | 191 | 224 | 246 | 265 | 278 | 0.921 | |||||||||||||||||||||||||||||||||
2010 | 71 | 149 | 209 | 253 | 283 | 315 | 331 | 0.877 | ||||||||||||||||||||||||||||||||||
2011 | 80 | 171 | 227 | 270 | 304 | 330 | 0.796 | |||||||||||||||||||||||||||||||||||
2012 | 93 | 202 | 260 | 301 | 334 | 0.677 | ||||||||||||||||||||||||||||||||||||
2013 | 72 | 158 | 206 | 247 | 0.417 | |||||||||||||||||||||||||||||||||||||
2014 | 99 | 199 | 240 | 0.428 | ||||||||||||||||||||||||||||||||||||||
2015 | 95 | 173 | 0.370 | |||||||||||||||||||||||||||||||||||||||
2016 | 63 | 0.118 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,814 |
Net Liabilities for Loss and Allocated Loss Adjustment Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Accident years prior to 2007 | $ | 357 | ||
All Accident years | $ | 1,592 |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 46 | % | 37 | % | 7 | % | 4 | % | 1 | % | 1 | % | — | % | — | % | — | % | — | % |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 39 | % | 37 | % | 12 | % | 4 | % | 2 | % | 1 | % | 1 | % | — | % | — | % | — | % |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 3 | % | 12 | % | 16 | % | 15 | % | 12 | % | 10 | % | 6 | % | 4 | % | 3 | % | 2 | % |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 19 | % | 29 | % | 16 | % | 11 | % | 7 | % | 5 | % | 2 | % | 1 | % | 1 | % | 1 | % |
North America Personal P&C Insurance (continued) | |||||||||||||||||||||||||||||
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 59 | % | 24 | % | 7 | % | 4 | % | 2 | % | 1 | % | 1 | % | — | % | — | % | — | % |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 33 | % | 41 | % | 12 | % | 8 | % | 4 | % | 1 | % | — | % | — | % | — | % | — | % |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 9 | % | 15 | % | 14 | % | 12 | % | 9 | % | 7 | % | 5 | % | 5 | % | 4 | % | 1 | % |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 12 | % | 17 | % | 11 | % | 8 | % | 6 | % | 4 | % | 3 | % | 3 | % | 2 | % | 2 | % |
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2016 | |||||||||||||||||||||||||||||
Age in Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||
Percentage | 18 | % | 19 | % | 13 | % | 11 | % | 8 | % | 7 | % | 5 | % | 4 | % | 3 | % | 2 | % |
Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Expenses | ||||
(in millions of U.S. dollars) | December 31, 2016 | |||
Net unpaid loss and allocated loss adjustment expense: | ||||
North America Commercial P&C Insurance — Workers' Compensation | $ | 7,584 | ||
North America Commercial P&C Insurance — Liability | 17,312 | |||
North America Commercial P&C Insurance — Other Casualty | 1,771 | |||
North America Commercial P&C Insurance — Non-Casualty | 2,250 | |||
North America Personal P&C Insurance | 2,021 | |||
Overseas General Insurance — Casualty | 5,681 | |||
Overseas General Insurance — Non-Casualty | 2,102 | |||
Global Reinsurance — Property | 154 | |||
Global Reinsurance — Non-Property | 1,592 | |||
Other (1) | 4,837 | |||
Net unpaid loss and allocated loss adjustment expense | 45,304 | |||
Ceded unpaid loss and allocated loss adjustment expense: | ||||
North America Commercial P&C Insurance — Workers' Compensation | $ | 1,872 | ||
North America Commercial P&C Insurance — Liability | 4,273 | |||
North America Commercial P&C Insurance — Other Casualty | 437 | |||
North America Commercial P&C Insurance — Non-Casualty | 555 | |||
North America Personal P&C Insurance | 168 | |||
Overseas General Insurance — Casualty | 2,617 | |||
Overseas General Insurance — Non-Casualty | 968 | |||
Global Reinsurance — Property | 11 | |||
Global Reinsurance — Non-Property | 114 | |||
Other (1) | 1,825 | |||
Ceded unpaid loss and allocated loss adjustment expense | 12,840 | |||
Net unpaid loss and loss expense on other than short-duration contracts (2) | 741 | |||
Unpaid unallocated loss adjustment expenses | 1,655 | |||
Unpaid losses and loss expenses | $ | 60,540 |
Year Ended December 31 | ||||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | |||||||||
Gross unpaid losses and loss expenses, beginning of year | $ | 37,303 | $ | 38,315 | $ | 37,443 | ||||||
Reinsurance recoverable on unpaid losses (1) | (10,741 | ) | (11,307 | ) | (10,612 | ) | ||||||
Net unpaid losses and loss expenses, beginning of year | 26,562 | 27,008 | 26,831 | |||||||||
Acquisition of subsidiaries | 21,402 | 417 | 320 | |||||||||
Total | 47,964 | 27,425 | 27,151 | |||||||||
Net losses and loss expenses incurred in respect of losses occurring in: | ||||||||||||
Current year | 17,256 | 10,030 | 10,176 | |||||||||
Prior years (2) | (1,204 | ) | (546 | ) | (527 | ) | ||||||
Total | 16,052 | 9,484 | 9,649 | |||||||||
Net losses and loss expenses paid in respect of losses occurring in: | ||||||||||||
Current year | 5,899 | 4,053 | 3,975 | |||||||||
Prior years | 9,816 | 5,612 | 5,260 | |||||||||
Total | 15,715 | 9,665 | 9,235 | |||||||||
Foreign currency revaluation and other | (469 | ) | (682 | ) | (557 | ) | ||||||
Net unpaid losses and loss expenses, end of year | 47,832 | 26,562 | 27,008 | |||||||||
Reinsurance recoverable on unpaid losses (1) | 12,708 | 10,741 | 11,307 | |||||||||
Gross unpaid losses and loss expenses, end of year | $ | 60,540 | $ | 37,303 | $ | 38,315 | ||||||
(1) Net of provision for uncollectible reinsurance. | ||||||||||||
(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums. |
Asbestos | Environmental | Total | |||||||||||||||||||||||
(in millions of U.S. dollars) | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
Balance at December 31, 2015 | $ | 1,351 | $ | 831 | $ | 199 | $ | 149 | $ | 1,550 | $ | 980 | |||||||||||||
Acquired reserves | 488 | 468 | 371 | 354 | 859 | 822 | |||||||||||||||||||
Incurred activity | 311 | 95 | 104 | 69 | 415 | 164 | (1) | ||||||||||||||||||
Paid activity | (424 | ) | (275 | ) | (97 | ) | (82 | ) | (521 | ) | (357 | ) | |||||||||||||
Balance at December 31, 2016 | $ | 1,726 | $ | 1,119 | $ | 577 | $ | 490 | $ | 2,303 | $ | 1,609 |
December 31 | |||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Brandywine operations | $ | 760 | $ | 782 | |||
Westchester Specialty | 112 | 115 | |||||
Chubb Corp | 657 | — | |||||
Other, mainly Overseas General Insurance | 80 | 83 | |||||
Total | $ | 1,609 | $ | 980 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Pre-tax income: | |||||||||||
Switzerland | $ | 766 | $ | 469 | $ | 404 | |||||
Outside Switzerland | 4,184 | 2,827 | 3,083 | ||||||||
Total pre-tax income | $ | 4,950 | $ | 3,296 | $ | 3,487 | |||||
Provision for income taxes: | |||||||||||
Current tax expense: | |||||||||||
Switzerland | $ | 97 | $ | 38 | $ | 31 | |||||
Outside Switzerland | 727 | 266 | 450 | ||||||||
Total current tax expense | 824 | 304 | 481 | ||||||||
Deferred tax expense: | |||||||||||
Switzerland | (27 | ) | 4 | 9 | |||||||
Outside Switzerland | 18 | 154 | 144 | ||||||||
Total deferred tax expense | (9 | ) | 158 | 153 | |||||||
Provision for income taxes | $ | 815 | $ | 462 | $ | 634 |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Expected tax provision at Swiss statutory tax rate | $ | 388 | $ | 258 | $ | 273 | |||||
Permanent differences: | |||||||||||
Taxes on earnings subject to rate other than Swiss statutory rate | 582 | 193 | 224 | ||||||||
Change to deferred taxes related to unrealized foreign exchange losses(1) | — | — | 139 | ||||||||
Tax-exempt interest and dividends received deduction, net of proration | (200 | ) | (32 | ) | (33 | ) | |||||
Net withholding taxes | 20 | 35 | 33 | ||||||||
Change in valuation allowance(1) | (1 | ) | 2 | (20 | ) | ||||||
Other | 26 | 6 | 18 | ||||||||
Total provision for income taxes | $ | 815 | $ | 462 | $ | 634 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 (1) | |||||
Deferred tax assets: | |||||||
Loss reserve discount | $ | 1,269 | $ | 663 | |||
Unearned premiums reserve | 498 | 190 | |||||
Foreign tax credits | 2,115 | 969 | |||||
Provision for uncollectible balances | 72 | 65 | |||||
Loss carry-forwards | 92 | 72 | |||||
Debt related amounts | 219 | 3 | |||||
Compensation related amounts | 449 | 189 | |||||
Cumulative translation adjustments | 59 | 17 | |||||
Other, net | 69 | 80 | |||||
Total deferred tax assets | 4,842 | 2,248 | |||||
Deferred tax liabilities: | |||||||
Deferred policy acquisition costs | 842 | 412 | |||||
Other intangible assets, including VOBA | 2,352 | 384 | |||||
Un-remitted foreign earnings | 2,001 | 827 | |||||
Investments | 406 | 6 | |||||
Unrealized appreciation on investments | 60 | 195 | |||||
Depreciation | 91 | 68 | |||||
Total deferred tax liabilities | 5,752 | 1,892 | |||||
Valuation allowance | 78 | 38 | |||||
Net deferred tax assets (liabilities) | $ | (988 | ) | $ | 318 |
December 31 | December 31 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Balance, beginning of year | $ | 16 | $ | 23 | |||
Additions based on tax positions related to the current year | 3 | 1 | |||||
Additions based on tax positions related to prior years (1) | 2 | — | |||||
Reductions for tax positions of prior years | (4 | ) | (7 | ) | |||
Reductions for the lapse of the applicable statutes of limitations | — | (1 | ) | ||||
Balance, end of year | $ | 17 | $ | 16 |
|
December 31 | December 31 | ||||||||
(in millions of U.S. dollars) | 2016 | 2015 | Early Redemption Option | ||||||
Repurchase agreements (weighted average interest rate of 0.8% in 2016 and 0.6% in 2015) | $ | 1,403 | $ | 1,404 | None | ||||
Short-term debt | |||||||||
Chubb INA senior notes: | |||||||||
$500 million 5.7% due February 2017 | $ | 500 | $ | — | Make-whole premium plus 0.20% | ||||
Long-term debt | |||||||||
Chubb INA senior notes: | |||||||||
$500 million 5.7% due February 2017 | $ | — | $ | 500 | Make-whole premium plus 0.20% | ||||
$300 million 5.8% due March 2018 | 300 | 299 | Make-whole premium plus 0.35% | ||||||
$600 million 5.75% due May 2018 | 635 | — | Make-whole premium plus 0.30% | ||||||
$100 million 6.6% due August 2018 | 107 | — | None | ||||||
$500 million 5.9% due June 2019 | 498 | 497 | Make-whole premium plus 0.40% | ||||||
$1,300 million 2.3% due November 2020 | 1,294 | 1,294 | Make-whole premium plus 0.15% | ||||||
$1,000 million 2.875% due November 2022 | 994 | 994 | Make-whole premium plus 0.20% | ||||||
$475 million 2.7% due March 2023 | 471 | 471 | Make-whole premium plus 0.10% | ||||||
$700 million 3.35% due May 2024 | 695 | 694 | Make-whole premium plus 0.15% | ||||||
$800 million 3.15% due March 2025 | 794 | 794 | Make-whole premium plus 0.15% | ||||||
$1,500 million 3.35% due May 2026 | 1,488 | 1,487 | Make-whole premium plus 0.20% | ||||||
$100 million 8.875% due August 2029 | 100 | 100 | None | ||||||
$200 million 6.8% due November 2031 | 257 | — | Make-whole premium plus 0.25% | ||||||
$300 million 6.7% due May 2036 | 297 | 297 | Make-whole premium plus 0.20% | ||||||
$800 million 6.0% due May 2037 | 980 | — | Make-whole premium plus 0.20% | ||||||
$600 million 6.5% due May 2038 | 776 | — | Make-whole premium plus 0.30% | ||||||
$475 million 4.15% due March 2043 | 469 | 469 | Make-whole premium plus 0.15% | ||||||
$1,500 million 4.35% due November 2045 | 1,482 | 1,482 | Make-whole premium plus 0.25% | ||||||
Chubb INA $1,000 million 6.375% capital securities due March 2067(1) | 962 | — | Make-whole premium plus 0.25%-0.50% | ||||||
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020) | 11 | 11 | None | ||||||
Total long-term debt | $ | 12,610 | $ | 9,389 | |||||
Trust preferred securities | |||||||||
Chubb INA capital securities due April 2030 | $ | 308 | $ | 307 | Redemption prices(2) |
|
December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||
Consolidated Balance Sheet Location | Fair Value | Notional Value/ Payment Provision | Fair Value | Notional Value/ Payment Provision | ||||||||||||||||||||||
Derivative Asset | Derivative (Liability) | Derivative Asset | Derivative (Liability) | |||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||
Investment and embedded derivative instruments | ||||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 25 | $ | (50 | ) | $ | 2,220 | $ | 7 | $ | (11 | ) | $ | 1,029 | |||||||||||
Cross-currency swaps | OA / (AP) | — | — | 95 | — | — | 95 | |||||||||||||||||||
Options/Futures contracts on notes and bonds | OA / (AP) | 6 | (4 | ) | 2,344 | 5 | (2 | ) | 751 | |||||||||||||||||
Convertible securities(1) | FM AFS/ES | 2 | — | 7 | 31 | — | 40 | |||||||||||||||||||
$ | 33 | $ | (54 | ) | $ | 4,666 | $ | 43 | $ | (13 | ) | $ | 1,915 | |||||||||||||
Other derivative instruments | ||||||||||||||||||||||||||
Futures contracts on equities(2) | OA / (AP) | $ | 1 | $ | — | $ | 1,316 | $ | — | $ | (4 | ) | $ | 1,197 | ||||||||||||
Other | OA / (AP) | 2 | (13 | ) | 214 | — | (6 | ) | 15 | |||||||||||||||||
$ | 3 | $ | (13 | ) | $ | 1,530 | $ | — | $ | (10 | ) | $ | 1,212 | |||||||||||||
GLB(3) | (AP) / (FPB) | $ | — | $ | (853 | ) | $ | 1,264 | $ | — | $ | (888 | ) | $ | 1,155 |
(1) | Includes fair value of embedded derivatives. |
(2) | Related to GMDB and GLB blocks of business. |
(3) | Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 c) for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts. |
Remaining contractual maturity | |||||||
Overnight and Continuous | |||||||
(in millions of U.S. dollars) | December 31 2016 | December 31 2015 | |||||
Collateral held under securities lending agreements: | |||||||
Cash | $ | 423 | $ | 424 | |||
U.S. Treasury and agency | 54 | 67 | |||||
Foreign | 578 | 296 | |||||
Corporate securities | 37 | 2 | |||||
Equity securities | — | 257 | |||||
$ | 1,092 | $ | 1,046 | ||||
Gross amount of recognized liability for securities lending payable | $ | 1,093 | $ | 1,047 | |||
Difference(1) | $ | (1 | ) | $ | (1 | ) |
(1) | The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable due to accrued interest recorded in the securities lending payable. |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||
Remaining contractual maturity | Remaining contractual maturity | ||||||||||||||||||||||||||
Up to 30 Days | Greater than 90 Days | Up to 30 Days | 30 - 90 Days | Greater than 90 Days | Total | ||||||||||||||||||||||
(in millions of U.S. dollars) | Total | ||||||||||||||||||||||||||
Collateral pledged under repurchase agreements: | |||||||||||||||||||||||||||
Cash | $ | — | $ | 1 | $ | 1 | $ | 34 | $ | — | $ | — | $ | 34 | |||||||||||||
U.S. Treasury and agency | 230 | 10 | 240 | 6 | — | 231 | 237 | ||||||||||||||||||||
Mortgage-backed securities | 339 | 881 | 1,220 | 365 | 480 | 343 | 1,188 | ||||||||||||||||||||
$ | 569 | $ | 892 | $ | 1,461 | $ | 405 | $ | 480 | $ | 574 | $ | 1,459 | ||||||||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,403 | $ | 1,404 | |||||||||||||||||||||||
Difference(1) | $ | 58 | $ | 55 |
(1) | Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Investment and embedded derivative instruments | |||||||||||
Foreign currency forward contracts | $ | (31 | ) | $ | 31 | $ | 29 | ||||
All other futures contracts and options | (10 | ) | 9 | (118 | ) | ||||||
Convertible securities(1) | 8 | (8 | ) | (18 | ) | ||||||
Total investment and embedded derivative instruments | $ | (33 | ) | $ | 32 | $ | (107 | ) | |||
GLB and other derivative instruments | |||||||||||
GLB(2) | $ | 53 | $ | (203 | ) | $ | (217 | ) | |||
Futures contracts on equities(3) | (136 | ) | (8 | ) | (164 | ) | |||||
Options on equity market indices(3) | — | (2 | ) | (4 | ) | ||||||
Other | (10 | ) | (12 | ) | 50 | ||||||
Total GLB and other derivative instruments | $ | (93 | ) | $ | (225 | ) | $ | (335 | ) | ||
$ | (126 | ) | $ | (193 | ) | $ | (442 | ) |
(1) | Includes embedded derivatives. |
(2) |
For the years ending December 31 | |||
(in millions of U.S. dollars) | |||
2017 | $ | 173 | |
2018 | 149 | ||
2019 | 118 | ||
2020 | 93 | ||
2021 | 78 | ||
Thereafter | 186 | ||
Total minimum future lease commitments | $ | 797 |
|
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 10 | $ | 559 | $ | 10 | $ | 584 | $ | 16 | $ | — | $ | 16 | $ | — | |||||||||||||||
Acquisition of Chubb Corp | 3,153 | 372 | — | — | 491 | 15 | — | — | |||||||||||||||||||||||
Service cost | 75 | 18 | — | 6 | 9 | 1 | 1 | — | |||||||||||||||||||||||
Interest cost | 103 | 30 | — | 21 | 16 | 1 | — | — | |||||||||||||||||||||||
Actuarial loss | 131 | 204 | — | 13 | 33 | 3 | (1 | ) | — | ||||||||||||||||||||||
Benefits paid | (79 | ) | (22 | ) | — | (22 | ) | (11 | ) | — | — | — | |||||||||||||||||||
Amendments | — | (9 | ) | — | 1 | (410 | ) | — | — | — | |||||||||||||||||||||
Curtailments | (259 | ) | (7 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Settlements | (99 | ) | (7 | ) | — | (7 | ) | — | — | — | — | ||||||||||||||||||||
Foreign currency revaluation | — | (113 | ) | — | (37 | ) | — | 1 | — | — | |||||||||||||||||||||
Benefit obligation, end of year | $ | 3,035 | $ | 1,025 | $ | 10 | $ | 559 | $ | 144 | $ | 21 | $ | 16 | $ | — | |||||||||||||||
Plan assets at fair value, beginning of year | $ | 9 | $ | 564 | $ | 9 | $ | 579 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Acquisition of Chubb Corp | 2,473 | 315 | — | — | 138 | — | — | — | |||||||||||||||||||||||
Actual return on plan assets | 359 | 168 | — | 40 | 29 | — | — | — | |||||||||||||||||||||||
Employer contributions | 98 | 67 | — | 10 | 3 | — | — | — | |||||||||||||||||||||||
Benefits paid | (79 | ) | (22 | ) | — | (22 | ) | (11 | ) | — | — | — | |||||||||||||||||||
Settlements | (95 | ) | (7 | ) | — | (7 | ) | — | — | — | — | ||||||||||||||||||||
Foreign currency revaluation | — | (123 | ) | — | (36 | ) | — | — | — | — | |||||||||||||||||||||
Plan assets at fair value, end of year | $ | 2,765 | $ | 962 | $ | 9 | $ | 564 | $ | 159 | $ | — | $ | — | $ | — | |||||||||||||||
Funded status at end of year | $ | (270 | ) | $ | (63 | ) | $ | (1 | ) | $ | 5 | $ | 15 | $ | (21 | ) | $ | (16 | ) | $ | — |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
2016 | 2015 | 2016 | |||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | (207 | ) | $ | 156 | $ | — | $ | 107 | $ | 14 | $ | 3 | ||||||||||
Prior service cost | — | (2 | ) | — | 7 | (395 | ) | — | |||||||||||||||
Total | $ | (207 | ) | $ | 154 | $ | — | $ | 114 | $ | (381 | ) | $ | 3 |
Pension Benefits | Other Postretirement Benefits | ||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||
December 31, 2016 | |||||||||||
Discount rate | 4.14 | % | 2.83 | % | 2.86 | % | 3.73 | % | |||
Rate of compensation increase | 4.00 | % | 3.57 | % | N/A | N/A | |||||
December 31, 2015 | |||||||||||
Discount rate | NM | 3.61 | % | NM | |||||||
Rate of compensation increase | NM | 3.05 | % | NM | |||||||
NM – not meaningful |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Year Ended December 31, 2016 | U.S. Plans | Non-U.S. Plans | Total | U.S. Plans | Non-U.S. Plans | Total | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | 75 | $ | 18 | $ | 93 | $ | 9 | $ | 1 | $ | 10 | |||||||||||
Interest cost | 103 | 30 | 133 | 16 | 1 | 17 | |||||||||||||||||
Expected return on plan assets | (165 | ) | (39 | ) | (204 | ) | (8 | ) | — | (8 | ) | ||||||||||||
Amortization of net actuarial loss (gain) | — | 2 | 2 | (1 | ) | — | (1 | ) | |||||||||||||||
Amortization of prior service cost | — | (1 | ) | (1 | ) | (15 | ) | — | (15 | ) | |||||||||||||
Curtailments | (117 | ) | — | (117 | ) | — | — | — | |||||||||||||||
Settlements | (2 | ) | 1 | (1 | ) | — | — | — | |||||||||||||||
Net periodic (benefit) cost | $ | (106 | ) | $ | 11 | $ | (95 | ) | $ | 1 | $ | 2 | $ | 3 | |||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | (326 | ) | $ | 49 | $ | (277 | ) | $ | 14 | $ | 3 | $ | 17 | |||||||||
Prior service benefit | — | (8 | ) | (8 | ) | (395 | ) | — | (395 | ) | |||||||||||||
Curtailments | 117 | — | 117 | — | — | — | |||||||||||||||||
Settlements | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Total (increase) decrease in other comprehensive income | $ | (207 | ) | $ | 40 | $ | (167 | ) | $ | (381 | ) | $ | 3 | $ | (378 | ) | |||||||
Year Ended December 31, 2015 | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | — | $ | 6 | $ | 6 | $ | 1 | $ | — | $ | 1 | |||||||||||
Interest cost | — | 21 | 21 | — | — | — | |||||||||||||||||
Expected return on plan assets | — | (29 | ) | (29 | ) | — | — | — | |||||||||||||||
Amortization of net actuarial loss | — | 2 | 2 | (1 | ) | — | (1 | ) | |||||||||||||||
Settlements | — | 1 | 1 | — | — | — | |||||||||||||||||
Net periodic benefit cost | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | — | $ | (16 | ) | $ | (16 | ) | $ | — | $ | — | $ | — | |||||||||
Prior service cost | — | 1 | 1 | — | — | — | |||||||||||||||||
Total increase in other comprehensive income | $ | — | $ | (15 | ) | $ | (15 | ) | $ | — | $ | — | $ | — | |||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | — | $ | 6 | $ | 6 | $ | 1 | $ | — | $ | 1 | |||||||||||
Interest cost | — | 25 | 25 | — | — | — | |||||||||||||||||
Expected return on plan assets | — | (30 | ) | (30 | ) | — | — | — | |||||||||||||||
Amortization of net actuarial loss | — | 2 | 2 | 1 | — | 1 | |||||||||||||||||
Net periodic benefit cost | $ | — | $ | 3 | $ | 3 | $ | 2 | $ | — | $ | 2 | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | — | $ | (10 | ) | $ | (10 | ) | $ | — | $ | — | $ | — | |||||||||
Prior service cost | — | 8 | 8 | — | — | — | |||||||||||||||||
Total increase in other comprehensive income | $ | — | $ | (2 | ) | $ | (2 | ) | $ | — | $ | — | $ | — |
Pension Benefits | Other Postretirement Benefits | ||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||
Year Ended December 31 | |||||||||||
2016 | |||||||||||
Discount rate in effect for determining service cost | 4.38 | % | 3.85 | % | 4.56 | % | 4.30 | % | |||
Discount rate in effect for determining interest cost | 3.59 | % | 3.44 | % | 3.82 | % | 4.30 | % | |||
Rate of compensation increase | 4.00 | % | 3.33 | % | N/A | N/A | |||||
Expected long-term rate of return on plan assets | 7.00 | % | 4.79 | % | 6.34 | % | N/A | ||||
2015 | |||||||||||
Discount rate | NM | 3.51 | % | NM | |||||||
Rate of compensation increase | NM | 3.09 | % | NM | |||||||
Expected long-term rate of return on plan assets | NM | 4.81 | % | NM | |||||||
2014 | |||||||||||
Discount rate | NM | 4.21 | % | NM | |||||||
Rate of compensation increase | NM | 3.43 | % | NM | |||||||
Expected long-term rate of return on plan assets | NM | 5.34 | % | NM | |||||||
NM – not meaningful |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Year Ended December 31, 2016 | U.S. Plans | Non-U.S. Plans | Total | U.S. Plans | Non-U.S. Plans | Total | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | 75 | $ | 18 | $ | 93 | $ | 9 | $ | 1 | $ | 10 | |||||||||||
Interest cost | 103 | 30 | 133 | 16 | 1 | 17 | |||||||||||||||||
Expected return on plan assets | (165 | ) | (39 | ) | (204 | ) | (8 | ) | — | (8 | ) | ||||||||||||
Amortization of net actuarial loss (gain) | — | 2 | 2 | (1 | ) | — | (1 | ) | |||||||||||||||
Amortization of prior service cost | — | (1 | ) | (1 | ) | (15 | ) | — | (15 | ) | |||||||||||||
Curtailments | (117 | ) | — | (117 | ) | — | — | — | |||||||||||||||
Settlements | (2 | ) | 1 | (1 | ) | — | — | — | |||||||||||||||
Net periodic (benefit) cost | $ | (106 | ) | $ | 11 | $ | (95 | ) | $ | 1 | $ | 2 | $ | 3 | |||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | (326 | ) | $ | 49 | $ | (277 | ) | $ | 14 | $ | 3 | $ | 17 | |||||||||
Prior service benefit | — | (8 | ) | (8 | ) | (395 | ) | — | (395 | ) | |||||||||||||
Curtailments | 117 | — | 117 | — | — | — | |||||||||||||||||
Settlements | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Total (increase) decrease in other comprehensive income | $ | (207 | ) | $ | 40 | $ | (167 | ) | $ | (381 | ) | $ | 3 | $ | (378 | ) | |||||||
Year Ended December 31, 2015 | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | — | $ | 6 | $ | 6 | $ | 1 | $ | — | $ | 1 | |||||||||||
Interest cost | — | 21 | 21 | — | — | — | |||||||||||||||||
Expected return on plan assets | — | (29 | ) | (29 | ) | — | — | — | |||||||||||||||
Amortization of net actuarial loss | — | 2 | 2 | (1 | ) | — | (1 | ) | |||||||||||||||
Settlements | — | 1 | 1 | — | — | — | |||||||||||||||||
Net periodic benefit cost | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | — | $ | (16 | ) | $ | (16 | ) | $ | — | $ | — | $ | — | |||||||||
Prior service cost | — | 1 | 1 | — | — | — | |||||||||||||||||
Total increase in other comprehensive income | $ | — | $ | (15 | ) | $ | (15 | ) | $ | — | $ | — | $ | — | |||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||
Costs reflected in Net income: | |||||||||||||||||||||||
Service cost | $ | — | $ | 6 | $ | 6 | $ | 1 | $ | — | $ | 1 | |||||||||||
Interest cost | — | 25 | 25 | — | — | — | |||||||||||||||||
Expected return on plan assets | — | (30 | ) | (30 | ) | — | — | — | |||||||||||||||
Amortization of net actuarial loss | — | 2 | 2 | 1 | — | 1 | |||||||||||||||||
Net periodic benefit cost | $ | — | $ | 3 | $ | 3 | $ | 2 | $ | — | $ | 2 | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | — | $ | (10 | ) | $ | (10 | ) | $ | — | $ | — | $ | — | |||||||||
Prior service cost | — | 8 | 8 | — | — | — | |||||||||||||||||
Total increase in other comprehensive income | $ | — | $ | (2 | ) | $ | (2 | ) | $ | — | $ | — | $ | — |
U.S. Plans | Non-U.S. Plans | ||||||||||
2016 | 2015 | 2014 | 2016 | ||||||||
Healthcare cost trend rate | 7.28 | % | 6.50 | % | 6.50 | % | 6.61 | % | |||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % | |||
Year that the rate reaches the ultimate trend rate | 2038 | 2026 | 2026 | 2029 |
December 31, 2016 | Pension Benefits | ||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
U.S. Plans | |||||||||||||||
Short-term investments | $ | — | $ | 43 | $ | — | $ | 43 | |||||||
U.S. Treasury and agency | 206 | 112 | — | 318 | |||||||||||
Foreign and corporate bonds | — | 482 | 5 | 487 | |||||||||||
Equity securities | 728 | — | — | 728 | |||||||||||
Derivative instruments | 3 | — | — | 3 | |||||||||||
Total U.S. Plan assets (1) | $ | 937 | $ | 637 | $ | 5 | $ | 1,579 | |||||||
Non-U.S. Plans | |||||||||||||||
Short-term investments | $ | 2 | $ | — | $ | — | $ | 2 | |||||||
Foreign and corporate bonds | — | 435 | — | 435 | |||||||||||
Equity securities | 100 | 412 | — | 512 | |||||||||||
Total Non-U.S. Plan assets (1) | $ | 102 | $ | 847 | $ | — | $ | 949 |
(1) | Excluded from the table above are $1.2 billion and $13 million of investments measured using NAV as a practical expedient |
For the years ending December 31 | U.S. Plans | Non-U.S. Plans | |||||
(in millions of U.S. dollars) | |||||||
2017 | $ | 132 | $ | 20 | |||
2018 | 143 | 23 | |||||
2019 | 158 | 25 | |||||
2020 | 167 | 26 | |||||
2021 | 177 | 27 | |||||
2022–2026 | 931 | 147 |
|
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Equity in net (income) loss of partially-owned entities | $ | (264 | ) | $ | (113 | ) | $ | (231 | ) | ||
(Gains) losses from fair value changes in separate account assets (1) | (11 | ) | 19 | (2 | ) | ||||||
Federal excise and capital taxes | 19 | 19 | 20 | ||||||||
Acquisition-related costs (2) | 2 | 9 | 15 | ||||||||
Other | 32 | 15 | 8 | ||||||||
Other (income) expense | $ | (222 | ) | $ | (51 | ) | $ | (190 | ) |
|
For the Year Ended December 31, 2016 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | |||||||||||||||||||||||
Net premiums written | $ | 11,740 | $ | 4,153 | $ | 1,328 | $ | 8,124 | $ | 676 | $ | 2,124 | $ | — | $ | 28,145 | |||||||||||||||
Net premiums earned | 12,217 | 4,319 | 1,316 | 8,132 | 710 | 2,055 | — | 28,749 | |||||||||||||||||||||||
Losses and loss expenses | 7,439 | 2,558 | 893 | 4,005 | 325 | 663 | 169 | 16,052 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 588 | — | 588 | |||||||||||||||||||||||
Policy acquisition costs | 2,023 | 966 | 83 | 2,136 | 187 | 509 | — | 5,904 | |||||||||||||||||||||||
Administrative expenses | 1,125 | 363 | (6 | ) | 1,057 | 52 | 307 | 183 | 3,081 | ||||||||||||||||||||||
Underwriting income (loss) | 1,630 | 432 | 346 | 934 | 146 | (12 | ) | (352 | ) | 3,124 | |||||||||||||||||||||
Net investment income | 1,860 | 207 | 20 | 600 | 263 | 283 | (368 | ) | 2,865 | ||||||||||||||||||||||
Other (income) expense | (2 | ) | 6 | 1 | (11 | ) | (4 | ) | 5 | (217 | ) | (222 | ) | ||||||||||||||||||
Amortization expense (benefit) of purchased intangibles | — | 19 | 29 | 48 | — | 3 | (80 | ) | 19 | ||||||||||||||||||||||
Segment income (loss) | 3,492 | 614 | 336 | 1,497 | 413 | 263 | (423 | ) | 6,192 | ||||||||||||||||||||||
Net realized gains (losses) including OTTI | (145 | ) | (145 | ) | |||||||||||||||||||||||||||
Interest expense | 605 | 605 | |||||||||||||||||||||||||||||
Chubb integration expenses | 492 | 492 | |||||||||||||||||||||||||||||
Income tax expense | 815 | 815 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (2,480 | ) | $ | 4,135 |
For the Year Ended December 31, 2015 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | |||||||||||||||||||||||
Net premiums written | $ | 5,715 | $ | 1,192 | $ | 1,346 | $ | 6,634 | $ | 828 | $ | 1,998 | $ | — | $ | 17,713 | |||||||||||||||
Net premiums earned | 5,634 | 948 | 1,364 | 6,471 | 849 | 1,947 | — | 17,213 | |||||||||||||||||||||||
Losses and loss expenses | 3,661 | 590 | 1,088 | 3,052 | 290 | 601 | 202 | 9,484 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 543 | — | 543 | |||||||||||||||||||||||
Policy acquisition costs | 531 | 69 | 69 | 1,581 | 214 | 476 | 1 | 2,941 | |||||||||||||||||||||||
Administrative expenses | 621 | 123 | 1 | 997 | 49 | 291 | 188 | 2,270 | |||||||||||||||||||||||
Underwriting income (loss) | 821 | 166 | 206 | 841 | 296 | 36 | (391 | ) | 1,975 | ||||||||||||||||||||||
Net investment income | 1,032 | 25 | 23 | 534 | 300 | 265 | 15 | 2,194 | |||||||||||||||||||||||
Other (income) expense | (7 | ) | 2 | 1 | (17 | ) | (6 | ) | 23 | (47 | ) | (51 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | 78 | 30 | 61 | — | 2 | — | 171 | |||||||||||||||||||||||
Segment income (loss) | 1,860 | 111 | 198 | 1,331 | 602 | 276 | (329 | ) | 4,049 | ||||||||||||||||||||||
Net realized gains (losses) including OTTI | (420 | ) | (420 | ) | |||||||||||||||||||||||||||
Interest expense | 300 | 300 | |||||||||||||||||||||||||||||
Chubb integration expense | 33 | 33 | |||||||||||||||||||||||||||||
Income tax expense | 462 | 462 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (1,544 | ) | $ | 2,834 |
For the Year Ended December 31, 2014 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | |||||||||||||||||||||||
Net premiums written | $ | 5,685 | $ | 578 | $ | 1,590 | $ | 6,999 | $ | 935 | $ | 2,012 | $ | — | $ | 17,799 | |||||||||||||||
Net premiums earned | 5,547 | 560 | 1,526 | 6,805 | 1,026 | 1,962 | — | 17,426 | |||||||||||||||||||||||
Losses and loss expenses | 3,476 | 368 | 1,351 | 3,189 | 431 | 589 | 245 | 9,649 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 517 | — | 517 | |||||||||||||||||||||||
Policy acquisition costs | 518 | 116 | 81 | 1,625 | 257 | 478 | — | 3,075 | |||||||||||||||||||||||
Administrative expenses | 599 | 74 | 9 | 1,026 | 54 | 285 | 198 | 2,245 | |||||||||||||||||||||||
Underwriting income (loss) | 954 | 2 | 85 | 965 | 284 | 93 | (443 | ) | 1,940 | ||||||||||||||||||||||
Net investment income | 1,060 | 22 | 26 | 545 | 316 | 268 | 15 | 2,252 | |||||||||||||||||||||||
Other (income) expense | (12 | ) | 1 | 2 | (18 | ) | (4 | ) | 3 | (162 | ) | (190 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | — | 31 | 74 | — | 3 | — | 108 | |||||||||||||||||||||||
Segment income (loss) | 2,026 | 23 | 78 | 1,454 | 604 | 355 | (266 | ) | 4,274 | ||||||||||||||||||||||
Net realized gains (losses) including OTTI | (507 | ) | (507 | ) | |||||||||||||||||||||||||||
Interest expense | 280 | 280 | |||||||||||||||||||||||||||||
Income tax expense | 634 | 634 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (1,687 | ) | $ | 2,853 |
For the Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
North America Commercial P&C Insurance | |||||||||||
Property & other short-tail lines | $ | 1,963 | $ | 1,040 | $ | 1,113 | |||||
Casualty & all other | 9,552 | 4,175 | 4,021 | ||||||||
A&H | 702 | 419 | 413 | ||||||||
Total North America Commercial P&C Insurance | 12,217 | 5,634 | 5,547 | ||||||||
North America Personal P&C Insurance | |||||||||||
Personal automobile | 699 | 186 | 130 | ||||||||
Personal homeowners | 3,007 | 579 | 309 | ||||||||
Personal other | 613 | 183 | 121 | ||||||||
Total North America Personal P&C Insurance | 4,319 | 948 | 560 | ||||||||
North America Agricultural Insurance | 1,316 | 1,364 | 1,526 | ||||||||
Overseas General Insurance | |||||||||||
Property & other short-tail lines | 2,133 | 1,833 | 1,892 | ||||||||
Casualty & all other | 2,177 | 1,361 | 1,425 | ||||||||
Personal lines | 1,626 | 1,211 | 1,204 | ||||||||
A&H | 2,196 | 2,066 | 2,284 | ||||||||
Total Overseas General Insurance | 8,132 | 6,471 | 6,805 | ||||||||
Global Reinsurance | |||||||||||
Property & other short-tail lines | 118 | 155 | 246 | ||||||||
Property catastrophe | 185 | 219 | 253 | ||||||||
Casualty & all other | 407 | 475 | 527 | ||||||||
Total Global Reinsurance | 710 | 849 | 1,026 | ||||||||
Life Insurance | |||||||||||
Life | 1,002 | 931 | 981 | ||||||||
A&H | 1,053 | 1,016 | 981 | ||||||||
Total Life Insurance | 2,055 | 1,947 | 1,962 | ||||||||
Total net premiums earned | $ | 28,749 | $ | 17,213 | $ | 17,426 |
North America | Europe(1) | Asia Pacific/Far East | Latin America | ||||||||
2016 | 70 | % | 12 | % | 11 | % | 7 | % | |||
2015 | 60 | % | 15 | % | 15 | % | 10 | % | |||
2014 | 58 | % | 16 | % | 16 | % | 10 | % |
|
December 31 | |||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Statutory capital and surplus | |||||||
Property and casualty | $ | 37,946 | $ | 19,680 | |||
Life | $ | 1,294 | $ | 1,207 |
Year Ended December 31 | |||||||||||
(in millions of U.S. dollars) | 2016 | 2015 | 2014 | ||||||||
Statutory net income (loss) | |||||||||||
Property and casualty | $ | 7,042 | $ | 2,712 | $ | 3,378 | |||||
Life | $ | 46 | $ | (148 | ) | $ | (248 | ) |
|
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Investments | $ | 27 | $ | 485 | $ | 98,582 | $ | — | $ | 99,094 | |||||||||
Cash(1) | 1 | 1 | 1,965 | (982 | ) | 985 | |||||||||||||
Insurance and reinsurance balances receivable | — | — | 10,498 | (1,528 | ) | 8,970 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 24,496 | (10,919 | ) | 13,577 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,153 | (971 | ) | 182 | |||||||||||||
Value of business acquired | — | — | 355 | — | 355 | ||||||||||||||
Goodwill and other intangible assets | — | — | 22,095 | — | 22,095 | ||||||||||||||
Investments in subsidiaries | 38,408 | 49,509 | — | (87,917 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 10,482 | — | — | (10,482 | ) | — | |||||||||||||
Other assets | 3 | 436 | 18,442 | (4,353 | ) | 14,528 | |||||||||||||
Total assets | $ | 48,921 | $ | 50,431 | $ | 177,586 | $ | (117,152 | ) | $ | 159,786 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 70,683 | $ | (10,143 | ) | $ | 60,540 | ||||||||
Unearned premiums | — | — | 18,538 | (3,759 | ) | 14,779 | |||||||||||||
Future policy benefits | — | — | 6,007 | (971 | ) | 5,036 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 10,209 | 273 | (10,482 | ) | — | |||||||||||||
Affiliated notional cash pooling programs(1) | 363 | 619 | — | (982 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,403 | — | 1,403 | ||||||||||||||
Short-term debt | — | 500 | — | — | 500 | ||||||||||||||
Long-term debt | — | 12,599 | 11 | — | 12,610 | ||||||||||||||
Trust preferred securities | — | 308 | — | — | 308 | ||||||||||||||
Other liabilities | 283 | 1,582 | 17,368 | (2,898 | ) | 16,335 | |||||||||||||
Total liabilities | 646 | 25,817 | 114,283 | (29,235 | ) | 111,511 | |||||||||||||
Total shareholders’ equity | 48,275 | 24,614 | 63,303 | (87,917 | ) | 48,275 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 48,921 | $ | 50,431 | $ | 177,586 | $ | (117,152 | ) | $ | 159,786 |
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Investments | $ | 28 | $ | 7,839 | $ | 58,384 | $ | — | $ | 66,251 | |||||||||
Cash(1) | 1 | 2 | 2,743 | (971 | ) | 1,775 | |||||||||||||
Insurance and reinsurance balances receivable | — | — | 6,075 | (752 | ) | 5,323 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 20,124 | (8,738 | ) | 11,386 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,129 | (942 | ) | 187 | |||||||||||||
Value of business acquired | — | — | 395 | — | 395 | ||||||||||||||
Goodwill and other intangible assets | — | — | 5,683 | — | 5,683 | ||||||||||||||
Investments in subsidiaries | 29,612 | 18,386 | — | (47,998 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 644 | 1,800 | — | (2,444 | ) | — | |||||||||||||
Other assets | 8 | 457 | 14,434 | (3,593 | ) | 11,306 | |||||||||||||
Total assets | $ | 30,293 | $ | 28,484 | $ | 108,967 | $ | (65,438 | ) | $ | 102,306 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 45,490 | $ | (8,187 | ) | $ | 37,303 | ||||||||
Unearned premiums | — | — | 10,243 | (1,804 | ) | 8,439 | |||||||||||||
Future policy benefits | — | — | 5,749 | (942 | ) | 4,807 | |||||||||||||
Due to subsidiaries and affiliates, net | — | — | 2,444 | (2,444 | ) | — | |||||||||||||
Affiliated notional cash pooling programs(1) | 882 | 89 | — | (971 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,404 | — | 1,404 | ||||||||||||||
Long-term debt | — | 9,378 | 11 | — | 9,389 | ||||||||||||||
Trust preferred securities | — | 307 | — | — | 307 | ||||||||||||||
Other liabilities | 276 | 1,422 | 12,916 | (3,092 | ) | 11,522 | |||||||||||||
Total liabilities | 1,158 | 11,196 | 78,257 | (17,440 | ) | 73,171 | |||||||||||||
Total shareholders’ equity | 29,135 | 17,288 | 30,710 | (47,998 | ) | 29,135 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 30,293 | $ | 28,484 | $ | 108,967 | $ | (65,438 | ) | $ | 102,306 |
(1) | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2016 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 28,145 | $ | — | $ | 28,145 | |||||||||
Net premiums earned | — | — | 28,749 | — | 28,749 | ||||||||||||||
Net investment income | 3 | 11 | 2,851 | — | 2,865 | ||||||||||||||
Equity in earnings of subsidiaries | 3,901 | 2,555 | — | (6,456 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | 3 | (148 | ) | — | (145 | ) | ||||||||||||
Losses and loss expenses | — | — | 16,052 | — | 16,052 | ||||||||||||||
Policy benefits | — | — | 588 | — | 588 | ||||||||||||||
Policy acquisition costs and administrative expenses | 64 | 82 | 8,839 | — | 8,985 | ||||||||||||||
Interest (income) expense | (353 | ) | 908 | 50 | — | 605 | |||||||||||||
Other (income) expense | (25 | ) | 35 | (232 | ) | — | (222 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 19 | — | 19 | ||||||||||||||
Chubb integration expenses | 62 | 126 | 304 | — | 492 | ||||||||||||||
Income tax expense (benefit) | 21 | (416 | ) | 1,210 | — | 815 | |||||||||||||
Net income | $ | 4,135 | $ | 1,834 | $ | 4,622 | $ | (6,456 | ) | $ | 4,135 | ||||||||
Comprehensive income | $ | 4,556 | $ | 2,001 | $ | 5,045 | $ | (7,046 | ) | $ | 4,556 |
For the Year Ended December 31, 2015 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 17,713 | $ | — | $ | 17,713 | |||||||||
Net premiums earned | — | — | 17,213 | — | 17,213 | ||||||||||||||
Net investment income | 3 | 4 | 2,187 | — | 2,194 | ||||||||||||||
Equity in earnings of subsidiaries | 2,673 | 1,038 | — | (3,711 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | (9 | ) | (411 | ) | — | (420 | ) | |||||||||||
Losses and loss expenses | — | — | 9,484 | — | 9,484 | ||||||||||||||
Policy benefits | — | — | 543 | — | 543 | ||||||||||||||
Policy acquisition costs and administrative expenses | 63 | 28 | 5,120 | — | 5,211 | ||||||||||||||
Interest (income) expense | (32 | ) | 302 | 30 | — | 300 | |||||||||||||
Other (income) expense | (208 | ) | (4 | ) | 161 | — | (51 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 171 | — | 171 | ||||||||||||||
Chubb integration expenses | 3 | 29 | 1 | — | 33 | ||||||||||||||
Income tax expense (benefit) | 16 | (349 | ) | 795 | — | 462 | |||||||||||||
Net income | $ | 2,834 | $ | 1,027 | $ | 2,684 | $ | (3,711 | ) | $ | 2,834 | ||||||||
Comprehensive income (loss) | $ | 908 | $ | (192 | ) | $ | 757 | $ | (565 | ) | $ | 908 |
For the Year Ended December 31, 2014 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 17,799 | $ | — | $ | 17,799 | |||||||||
Net premiums earned | — | — | 17,426 | — | 17,426 | ||||||||||||||
Net investment income | 2 | 2 | 2,248 | — | 2,252 | ||||||||||||||
Equity in earnings of subsidiaries | 2,707 | 791 | — | (3,498 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | — | 53 | (560 | ) | — | (507 | ) | ||||||||||||
Losses and loss expenses | — | — | 9,649 | — | 9,649 | ||||||||||||||
Policy benefits | — | — | 517 | — | 517 | ||||||||||||||
Policy acquisition costs and administrative expenses | 78 | 26 | 5,216 | — | 5,320 | ||||||||||||||
Interest (income) expense | (35 | ) | 277 | 38 | — | 280 | |||||||||||||
Other (income) expense | (201 | ) | 27 | (16 | ) | — | (190 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 108 | — | 108 | ||||||||||||||
Income tax expense (benefit) | 14 | (94 | ) | 714 | — | 634 | |||||||||||||
Net income | $ | 2,853 | $ | 610 | $ | 2,888 | $ | (3,498 | ) | $ | 2,853 | ||||||||
Comprehensive income | $ | 2,892 | $ | 583 | $ | 2,926 | $ | (3,509 | ) | $ | 2,892 |
For the Year Ended December 31, 2016 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from operating activities | $ | 3,618 | $ | 4,305 | $ | 5,536 | $ | (8,167 | ) | $ | 5,292 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | (156 | ) | (30,659 | ) | — | (30,815 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (282 | ) | — | (282 | ) | ||||||||||||
Purchases of equity securities | — | — | (146 | ) | — | (146 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | 66 | 16,611 | — | 16,677 | ||||||||||||||
Sales of equity securities | — | — | 1,000 | — | 1,000 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | 66 | 9,283 | — | 9,349 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 958 | — | 958 | ||||||||||||||
Net change in short-term investments | — | 7,943 | 4,407 | — | 12,350 | ||||||||||||||
Net derivative instruments settlements | — | (9 | ) | (159 | ) | — | (168 | ) | |||||||||||
Acquisition of subsidiaries (net of cash acquired of $71) | — | (14,282 | ) | 34 | — | (14,248 | ) | ||||||||||||
Capital contribution | (2,330 | ) | (215 | ) | (2,330 | ) | 4,875 | — | |||||||||||
Other | — | (3 | ) | 13 | — | 10 | |||||||||||||
Net cash flows used for investing activities | (2,330 | ) | (6,590 | ) | (1,270 | ) | 4,875 | (5,315 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (1,173 | ) | — | — | — | (1,173 | ) | ||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,310 | — | 2,310 | ||||||||||||||
Repayment of repurchase agreements | — | — | (2,311 | ) | — | (2,311 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 167 | — | 167 | ||||||||||||||
Advances (to) from affiliates | 404 | (572 | ) | 168 | — | — | |||||||||||||
Dividends to parent company | — | — | (8,167 | ) | 8,167 | — | |||||||||||||
Capital contribution | — | 2,330 | 2,545 | (4,875 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | (519 | ) | 530 | — | (11 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 522 | — | 522 | ||||||||||||||
Policyholder contract withdrawals | — | — | (253 | ) | — | (253 | ) | ||||||||||||
Other | — | (4 | ) | — | — | (4 | ) | ||||||||||||
Net cash flows (used for) from financing activities | (1,288 | ) | 2,284 | (5,019 | ) | 3,281 | (742 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (25 | ) | — | (25 | ) | ||||||||||||
Net decrease in cash | — | (1 | ) | (778 | ) | (11 | ) | (790 | ) | ||||||||||
Cash – beginning of year(1) | 1 | 2 | 2,743 | (971 | ) | 1,775 | |||||||||||||
Cash – end of year(1) | $ | 1 | $ | 1 | $ | 1,965 | $ | (982 | ) | $ | 985 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2016 and 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2015 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from operating activities | $ | 3,125 | $ | 682 | $ | 3,836 | $ | (3,779 | ) | $ | 3,864 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (16,053 | ) | (18 | ) | (16,071 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (62 | ) | — | (62 | ) | ||||||||||||
Purchases of equity securities | — | — | (158 | ) | — | (158 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 10,814 | — | 10,814 | ||||||||||||||
Sales of equity securities | — | — | 183 | — | 183 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,567 | — | 6,567 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 669 | — | 669 | ||||||||||||||
Net change in short-term investments | — | (7,588 | ) | (628 | ) | — | (8,216 | ) | |||||||||||
Net derivative instruments settlements | — | (9 | ) | (12 | ) | — | (21 | ) | |||||||||||
Acquisition of subsidiaries (net of cash acquired of $629) | — | — | 264 | — | 264 | ||||||||||||||
Capital contribution | (2,670 | ) | (625 | ) | (2,791 | ) | 6,086 | — | |||||||||||
Other | — | (25 | ) | (256 | ) | 18 | (263 | ) | |||||||||||
Net cash flows used for investing activities | (2,670 | ) | (8,247 | ) | (1,463 | ) | 6,086 | (6,294 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (862 | ) | — | — | — | (862 | ) | ||||||||||||
Common Shares repurchased | — | — | (758 | ) | — | (758 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 6,090 | — | — | 6,090 | ||||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,029 | — | 2,029 | ||||||||||||||
Repayment of long-term debt | — | (1,150 | ) | — | — | (1,150 | ) | ||||||||||||
Repayment of repurchase agreements | — | — | (2,027 | ) | — | (2,027 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 131 | — | 131 | ||||||||||||||
Advances (to) from affiliates | (228 | ) | 95 | 133 | — | — | |||||||||||||
Dividends to parent company | — | — | (3,779 | ) | 3,779 | — | |||||||||||||
Capital contribution | — | 2,791 | 3,295 | (6,086 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | 636 | (220 | ) | — | (416 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 503 | — | 503 | ||||||||||||||
Policyholder contract withdrawals | — | — | (221 | ) | — | (221 | ) | ||||||||||||
Other | — | (40 | ) | — | — | (40 | ) | ||||||||||||
Net cash flows (used for) from financing activities | (454 | ) | 7,566 | (694 | ) | (2,723 | ) | 3,695 | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (145 | ) | — | (145 | ) | ||||||||||||
Net increase in cash | 1 | 1 | 1,534 | (416 | ) | 1,120 | |||||||||||||
Cash – beginning of year(1) | — | 1 | 1,209 | (555 | ) | 655 | |||||||||||||
Cash – end of year(1) | $ | 1 | $ | 2 | $ | 2,743 | $ | (971 | ) | $ | 1,775 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015 and 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
For the Year Ended December 31, 2014 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from operating activities | $ | 541 | $ | 210 | $ | 4,419 | $ | (674 | ) | $ | 4,496 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (15,816 | ) | 263 | (15,553 | ) | ||||||||||||
Purchases of fixed maturities held to maturity | — | — | (267 | ) | — | (267 | ) | ||||||||||||
Purchases of equity securities | — | — | (251 | ) | — | (251 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | — | 7,750 | (268 | ) | 7,482 | |||||||||||||
Sales of equity securities | — | — | 670 | — | 670 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 6,413 | — | 6,413 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 875 | — | 875 | ||||||||||||||
Net change in short-term investments | — | (216 | ) | (392 | ) | 5 | (603 | ) | |||||||||||
Net derivative instruments settlements | — | 53 | (283 | ) | — | (230 | ) | ||||||||||||
Acquisition of subsidiaries (net of cash acquired of $20) | — | — | (766 | ) | — | (766 | ) | ||||||||||||
Capital contribution | — | (258 | ) | — | 258 | — | |||||||||||||
Other | — | (8 | ) | (266 | ) | — | (274 | ) | |||||||||||
Net cash flows used for investing activities | — | (429 | ) | (2,333 | ) | 258 | (2,504 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (862 | ) | — | — | — | (862 | ) | ||||||||||||
Common Shares repurchased | — | — | (1,429 | ) | — | (1,429 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 699 | — | — | 699 | ||||||||||||||
Proceeds from issuance of repurchase agreements | — | — | 1,978 | — | 1,978 | ||||||||||||||
Repayment of long-term debt | — | (500 | ) | (1 | ) | — | (501 | ) | |||||||||||
Repayment of repurchase agreements | — | — | (1,977 | ) | — | (1,977 | ) | ||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 127 | — | 127 | ||||||||||||||
Advances (to) from affiliates | 260 | (298 | ) | 38 | — | — | |||||||||||||
Dividends to parent company | — | — | (674 | ) | 674 | — | |||||||||||||
Capital contribution | — | — | 258 | (258 | ) | — | |||||||||||||
Net proceeds from affiliated notional cash pooling programs(1) | 61 | 309 | — | (370 | ) | — | |||||||||||||
Policyholder contract deposits | — | — | 366 | — | 366 | ||||||||||||||
Policyholder contract withdrawals | — | — | (172 | ) | — | (172 | ) | ||||||||||||
Other | (6 | ) | — | — | (6 | ) | |||||||||||||
Net cash flows (used for) from financing activities | (541 | ) | 204 | (1,486 | ) | 46 | (1,777 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (139 | ) | — | (139 | ) | ||||||||||||
Net (decrease) increase in cash | — | (15 | ) | 461 | (370 | ) | 76 | ||||||||||||
Cash – beginning of year(1) | — | 16 | 748 | (185 | ) | 579 | |||||||||||||
Cash – end of year(1) | $ | — | $ | 1 | $ | 1,209 | $ | (555 | ) | $ | 655 |
(1) | Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014 and 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
|
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(in millions of U.S. dollars, except per share data) | 2016 | 2016 | 2016 | 2016 | |||||||||||
Net premiums earned | $ | 6,597 | $ | 7,405 | $ | 7,688 | $ | 7,059 | |||||||
Net investment income | 674 | 708 | 739 | 744 | |||||||||||
Net realized gains (losses) including OTTI | (394 | ) | (216 | ) | 100 | 365 | |||||||||
Total revenues | $ | 6,877 | $ | 7,897 | $ | 8,527 | $ | 8,168 | |||||||
Losses and loss expenses | $ | 3,674 | $ | 4,254 | $ | 4,269 | $ | 3,855 | |||||||
Policy benefits | $ | 126 | $ | 146 | $ | 155 | $ | 161 | |||||||
Net income | $ | 439 | $ | 726 | $ | 1,360 | $ | 1,610 | |||||||
Basic earnings per share | $ | 0.98 | $ | 1.55 | $ | 2.90 | $ | 3.44 | |||||||
Diluted earnings per share | $ | 0.97 | $ | 1.54 | $ | 2.88 | $ | 3.41 |
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(in millions of U.S. dollars, except per share data) | 2015 | 2015 | 2015 | 2015 | |||||||||||
Net premiums earned | $ | 3,927 | $ | 4,360 | $ | 4,719 | $ | 4,207 | |||||||
Net investment income | 551 | 562 | 549 | 532 | |||||||||||
Net realized gains (losses) including OTTI | (89 | ) | 126 | (397 | ) | (60 | ) | ||||||||
Total revenues | $ | 4,389 | $ | 5,048 | $ | 4,871 | $ | 4,679 | |||||||
Losses and loss expenses | $ | 2,122 | $ | 2,417 | $ | 2,643 | $ | 2,302 | |||||||
Policy benefits | $ | 142 | $ | 153 | $ | 89 | $ | 159 | |||||||
Net income | $ | 681 | $ | 942 | $ | 528 | $ | 683 | |||||||
Basic earnings per share | $ | 2.08 | $ | 2.89 | $ | 1.63 | $ | 2.10 | |||||||
Diluted earnings per share | $ | 2.05 | $ | 2.86 | $ | 1.62 | $ | 2.08 |
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North America | Europe(1) | Asia Pacific/Far East | Latin America | ||||||||
2016 | 70 | % | 12 | % | 11 | % | 7 | % | |||
2015 | 60 | % | 15 | % | 15 | % | 10 | % | |||
2014 | 58 | % | 16 | % | 16 | % | 10 | % |
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