CHUBB LTD, 10-K filed on 2/28/2017
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Feb. 13, 2017
Jun. 30, 2016
Document Documentand Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2016 
 
 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus
FY 
 
 
Trading Symbol
CB 
 
 
Entity Registrant Name
Chubb Ltd 
 
 
Entity Central Index Key
0000896159 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
465,781,102 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 60 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Assets
 
 
Fixed maturities available for sale, at fair value (amortized cost - $79,536 and $43,149) (includes hybrid financial instruments of $2 and $31)
$ 80,115 
$ 43,587 
Fixed maturities held to maturity, at amortized cost (fair value – $10,670 and $8,552)
10,644 
8,430 
Equity securities, at fair value (cost – $706 and $441)
814 
497 
Short-term investments, at fair value and amortized cost
3,002 
10,446 
Other investments (cost – $4,270 and $2,993)
4,519 
3,291 
Total investments
99,094 
66,251 
Cash
985 1 2
1,775 1 3 4
Securities lending collateral
1,092 
1,046 
Accrued investment income
918 
513 
Insurance and reinsurance balances receivable
8,970 
5,323 
Reinsurance recoverable on losses and loss expenses
13,577 
11,386 
Reinsurance recoverable on policy benefits
182 
187 
Deferred policy acquisition costs
4,314 
2,873 
Value of business acquired
355 
395 
Goodwill
15,332 
4,796 
Intangible Assets, Net (Excluding Goodwill)
6,763 
887 
Prepaid reinsurance premiums
2,448 
2,082 
Deferred Income Tax Assets, Net
0 
318 
Investments in partially-owned insurance companies
666 
653 
Other assets
5,090 
3,821 
Total assets
159,786 
102,306 
Liabilities
 
 
Unpaid losses and loss expenses
60,540 
37,303 
Unearned premiums
14,779 
8,439 
Future policy benefits
5,036 
4,807 
Insurance and reinsurance balances payable
5,637 
4,270 
Securities lending payable
1,093 
1,047 
Accounts payable, accrued expenses, and other liabilities
8,617 
6,205 
Deferred Income Tax Liabilities, Net
988 
0 
Repurchase agreements
1,403 
1,404 
Short-term debt
500 
0 
Long-term debt
12,610 
9,389 
Trust preferred securities
308 
307 
Total liabilities
111,511 
73,171 
Commitments and contingencies
   
   
Shareholders' equity
 
 
Common Shares (CHF 24.15 par value; 479,783,864 and 342,832,412 shares issued; 465,968,716 and 324,563,441 shares outstanding)
11,121 
7,833 
Common Shares in treasury (13,815,148 and 18,268,971 shares)
(1,480)
(1,922)
Additional paid-in capital
15,335 
4,481 
Retained earnings
23,613 
19,478 
Accumulated other comprehensive income (loss) (AOCI)
(314)
(735)
Total shareholders' equity
48,275 
29,135 
Total liabilities and shareholders’ equity
$ 159,786 
$ 102,306 
Consolidated Balance Sheets (Parenthetical)(USD ($))
In Millions, except Share data, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Fixed maturities available for sale, at amortized cost
$ 79,536 
$ 43,149 
Fixed maturities available for sale, hybrid financial instruments
2 
31 
Held-to-maturity Securities, Fair Value
10,670 
8,552 
Equity securities, at cost
706 
441 
Other investments, cost
$ 4,270 
$ 2,993 
Common Shares, shares issued
479,783,864 
342,832,412 
Common Shares, shares outstanding
465,968,716 
324,563,441 
Common Shares in treasury, shares
13,815,148 
18,268,971 
Consolidated Statements Of Operations and Comprehensive Income (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenues
 
 
 
Net premiums written
$ 28,145 
$ 17,713 
$ 17,799 
Decrease (increase) in unearned premiums
604 
(500)
(373)
Net premiums earned
28,749 
17,213 
17,426 
Net investment income
2,865 
2,194 
2,252 
Net realized gains (losses):
 
 
 
Other-than-temporary impairment (OTTI) losses gross
(111)
(151)
(75)
Portion of OTTI losses recognized in other comprehensive income (OCI)
8 
39 
7 
Net OTTI losses recognized in income
(103)
(112)
(68)
Net realized gains (losses) excluding OTTI losses
(42)
(308)
(439)
Total Net realized gains (losses) including OTTI
(145)
(420)
(507)
Total revenues
31,469 
18,987 
19,171 
Expenses
 
 
 
Losses and loss expenses
16,052 
9,484 
9,649 
Policy benefits
588 
543 
517 
Policy Acquisition Costs
5,904 
2,941 
3,075 
Administrative expenses
3,081 
2,270 
2,245 
Interest expense
605 
300 
280 
Other (income) expense
(222)
(51)
(190)
Amortization of Purchased Intangibles
19 
171 
108 
Chubb integration expenses
492 
33 
0 
Total expenses
26,519 
15,691 
15,684 
Income before income tax
4,950 
3,296 
3,487 
Income tax expense
815 
462 
634 
Net income
4,135 
2,834 
2,853 
Other comprehensive income (loss)
 
 
 
Unrealized appreciation (depreciation)
(35)
(1,280)
820 
Reclassification adjustment for net realized (gains) losses included in net income
119 
151 
24 
Other comprehensive income (loss) after reclassification for net realized gains included in net income
84 
(1,129)
844 
Change in:
 
 
 
Cumulative foreign currency translation adjustment
(154)
(958)
(632)
Postretirement benefit liability adjustment
545 
15 
2 
Other comprehensive income (loss), before income tax
475 
(2,072)
214 
Income tax (expense) benefit related to OCI items
(54)
146 
(175)
Other comprehensive income (loss)
421 
(1,926)
39 
Comprehensive income
$ 4,556 
$ 908 
$ 2,892 
Earnings per share
 
 
 
Basic earnings per share
$ 8.94 
$ 8.71 
$ 8.50 
Diluted earnings per share
$ 8.87 
$ 8.62 
$ 8.42 
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income tax expense (benefit)
$ 28 
$ (2)
$ 9 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Net unrealized appreciation on investments
 
 
 
Net realized gains (losses)
(119)
(151)
(24)
Income tax expense (benefit)
$ 28 
$ (2)
$ 9 
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions
Total
Common Shares
Common Shares in Treasury
Additional Paid-in Capital
Retained Earnings
Net unrealized appreciation on investments
Cumulative Translation Adjustment
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income
The Chubb Corporation [Member]
The Chubb Corporation [Member]
Common Shares
The Chubb Corporation [Member]
Additional Paid-in Capital
Balance – beginning of year at Dec. 31, 2013
 
$ 8,899 
$ (255)
$ 5,238 
$ 13,791 
$ 1,174 
$ 63 
$ (85)
 
 
 
 
Dividends declared on Common Shares – par value reduction
 
(844)
 
 
 
 
 
 
 
 
 
 
Common Shares repurchased
 
 
(1,449)
 
 
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
256 
(167)
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
 
 
 
(58)
 
 
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
185 
 
 
 
 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
(81)
81 
 
 
 
 
 
 
 
Tax benefit on share-based compensation expense
 
 
 
28 
 
 
 
 
 
 
 
 
Net income
2,853 
 
 
 
2,853 
 
 
 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
(81)
 
 
 
 
 
 
 
Change in year, before reclassification from AOCI, net of income tax benefit (expense) of $72, $154, and $(176)
 
 
 
 
 
644 
 
 
 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit (expense) of $28, $(2), and $9
 
 
 
 
 
33 
 
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $100, $152, and $(167)
 
 
 
 
 
677 
 
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $30, nil, and $(12)
 
 
 
 
 
 
(644)
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $(184), $(6), and $4
 
 
 
 
 
 
 
6 
 
 
 
 
Balance – Ending of year at Dec. 31, 2014
29,587 
8,055 
(1,448)
5,145 
16,644 
1,851 
(581)
(79)
1,191 
 
 
 
Dividends declared on Common Shares – par value reduction
 
(222)
 
 
 
 
 
 
 
 
 
 
Common Shares repurchased
 
 
(734)
 
 
 
 
 
 
 
 
 
Shares issued for Chubb Corp acquisition
 
 
 
 
 
 
 
 
 
 
 
0 
Net shares redeemed under employee share-based compensation plans
 
 
260 
(160)
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
 
 
 
(61)
 
 
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
184 
 
 
 
 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
(653)
653 
 
 
 
 
 
 
 
Tax benefit on share-based compensation expense
 
 
 
26 
 
 
 
 
 
 
 
 
Net income
2,834 
 
 
 
2,834 
 
 
 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
(653)
 
 
 
 
 
 
 
Change in year, before reclassification from AOCI, net of income tax benefit (expense) of $72, $154, and $(176)
 
 
 
 
 
(1,126)
 
 
 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit (expense) of $28, $(2), and $9
 
 
 
 
 
149 
 
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $100, $152, and $(167)
 
 
 
 
 
(977)
 
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $30, nil, and $(12)
 
 
 
 
 
 
(958)
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $(184), $(6), and $4
 
 
 
 
 
 
 
9 
 
 
 
 
Balance – Ending of year at Dec. 31, 2015
29,135 
7,833 
(1,922)
4,481 
19,478 
874 
(1,539)
(70)
(735)
 
 
 
Common Shares repurchased
 
 
0 
 
 
 
 
 
 
 
 
 
Shares issued for Chubb Corp acquisition
 
 
 
 
 
 
 
 
 
 
3,288 
11,916 
Net shares redeemed under employee share-based compensation plans
 
 
442 
(382)
 
 
 
 
 
 
 
323 
Stock Issued During Period, Value, Stock Options Exercised
 
 
 
(64)
 
 
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
313 
 
 
 
 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
(1,284)
1,284 
 
 
 
 
 
 
 
Tax benefit on share-based compensation expense
 
 
 
32 
 
 
 
 
 
 
 
 
Net income
4,135 
 
 
 
4,135 
 
 
 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
(1,284)
 
 
 
 
 
 
 
Change in year, before reclassification from AOCI, net of income tax benefit (expense) of $72, $154, and $(176)
 
 
 
 
 
37 
 
 
 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit (expense) of $28, $(2), and $9
 
 
 
 
 
147 
 
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $100, $152, and $(167)
 
 
 
 
 
184 
 
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $30, nil, and $(12)
 
 
 
 
 
 
(124)
 
 
 
 
 
Change in year, net of income tax benefit (expense) of $(184), $(6), and $4
 
 
 
 
 
 
 
361 
 
 
 
 
Balance – Ending of year at Dec. 31, 2016
$ 48,275 
$ 11,121 
$ (1,480)
$ 15,335 
$ 23,613 
$ 1,058 
$ (1,663)
$ 291 
$ (314)
 
 
 
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax
$ 72 
$ 154 
$ (176)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax
28 
(2)
9 
Net unrealized appreciation on investments, Change in year, income tax (expense) benefit
100 
152 
(167)
Cumulative translation adjustment, Change in year, income tax(expense) benefit
30 
0 
(12)
Pension liability adjustment, Change in year, income tax (expense) benefit
$ (184)
$ (6)
$ 4 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities
 
 
 
Net income
$ 4,135 
$ 2,834 
$ 2,853 
Adjustments to reconcile net income to net cash flows from operating activities
 
 
 
Net realized (gains) losses
145 
420 
507 
Amortization of premiums/discounts on fixed maturities
737 
158 
188 
Amortization of UPR related to the Chubb Corp acquisition
1,559 
0 
0 
Deferred income taxes
96 
113 
145 
Unpaid losses and loss expenses
332 
(375)
317 
Unearned premiums
(680)
335 
441 
Future policy benefits
188 
216 
236 
Insurance and reinsurance balances payable
848 
268 
376 
Accounts payable, accrued expenses, and other liabilities
(97)
179 
13 
Income taxes payable
147 
(148)
103 
Insurance and reinsurance balances receivable
(616)
(53)
(469)
Reinsurance recoverable on losses and loss expenses
(365)
218 
119 
Reinsurance recoverable on policy benefits
7 
33 
4 
Deferred policy acquisition costs
(1,449)
(435)
(397)
Prepaid reinsurance premiums
18 
(212)
(89)
Other
287 
313 
149 
Net cash flows from operating activities
5,292 
3,864 
4,496 
Cash flows from investing activities
 
 
 
Purchases of fixed maturities available for sale
(30,759)
(16,040)
(15,553)
Purchases of to be announced mortgage-backed securities
(56)
(31)
 
Purchases of fixed maturities held to maturity
(282)
(62)
(267)
Purchases of equity securities
(146)
(158)
(251)
Sales of fixed maturities available for sale
16,621 
10,783 
7,482 
Sales of to be announced mortgage-backed securities
56 
31 
 
Sales of equity securities
1,000 
183 
670 
Maturities and redemptions of fixed maturities available for sale
9,349 
6,567 
6,413 
Maturities and redemptions of fixed maturities held to maturity
958 
669 
875 
Net change in short-term investments
12,350 
(8,216)
(603)
Net derivative instruments settlements
(168)
(21)
(230)
Acquisition of subsidiaries (net of cash acquired of $71, 629, and $20)
(14,248)
264 
(766)
Other
10 
(263)
(274)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations
(5,315)
(6,294)
(2,504)
Cash flows from financing activities
 
 
 
Dividends paid on Common Shares
(1,173)
(862)
(862)
Common Shares repurchased
 
(758)
(1,429)
Proceeds from issuance of long-term debt
 
6,090 
699 
Proceeds from issuance of repurchase agreements
2,310 
2,029 
1,978 
Repayment of repurchase agreements
(2,311)
(2,027)
(1,977)
Repayments of Long-term Debt
 
(1,150)
(501)
Proceeds from share-based compensation plans, including windfall tax benefits
167 
131 
127 
Policyholder contract deposits
522 
503 
366 
Policyholder contract withdrawals
(253)
(221)
(172)
Other
(4)
(40)
(6)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
(742)
3,695 
(1,777)
Effect of foreign currency rate changes on cash and cash equivalents
(25)
(145)
(139)
Net increase (decrease) in cash
(790)
1,120 
76 
Cash – beginning of year
1,775 1 2 3
655 1 4
579 4
Cash – end of year
985 1 5
1,775 1 2 3
655 1 4
Supplemental cash flow information
 
 
 
Taxes paid
662 
469 
349 
Interest paid
$ 642 
$ 259 
$ 264 
Consolidated Statements Of Cash Flows (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Cash Flows [Abstract]
 
 
 
Acquisition of subsidiaries, cash acquired
$ 71 
$ 629 
$ 20 
Summary of significant accounting policies
Summary of significant accounting policies
Summary of significant accounting policies

a) Basis of presentation
On January 14, 2016, we completed the acquisition of The Chubb Corporation (Chubb Corp), creating a global leader in property and casualty (P&C) insurance. We have changed our name from ACE Limited to Chubb Limited and plan to adopt the Chubb name globally, although some subsidiaries may continue to use ACE as a part of their name.

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Effective the first quarter of 2016, our results are reported through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. This reflects our significantly larger and expanded operations subsequent to our acquisition of Chubb Corp. We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of our run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years, and certain run-off exposures. Prior period amounts of Chubb Limited (i.e., excluding the historical results of Chubb Corp) contained in this report have been adjusted to conform to the new segment presentation. The results of operations and cash flows of Chubb Corp are included from the acquisition date forward (i.e., after January 14, 2016). Refer to Note 15 for additional information.

The accompanying consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Amounts included in the Consolidated financial statements reflect our best estimates and assumptions; actual amounts could differ materially from these estimates. Chubb's principal estimates include:
•
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.
 
b) Premiums
Premiums are generally recorded as written upon inception of the policy. For multi-year policies for which premiums written are payable in annual installments, only the current annual premium is included as written at policy inception due to the ability of the insured/reinsured to commute or cancel coverage within the policy term. The remaining annual premiums are recorded as written at each successive anniversary date within the multi-year term.

For P&C insurance and reinsurance products, premiums written are primarily earned on a pro-rata basis over the policy terms to which they relate. Unearned premiums represent the portion of premiums written applicable to the unexpired portion of the policies in force. For retrospectively-rated policies, written premiums are adjusted to reflect expected ultimate premiums consistent with changes to incurred losses, or other measures of exposure as stated in the policy, and earned over the policy coverage period. For retrospectively-rated multi-year policies, premiums recognized in the current period are computed, using a with-and-without method, as the difference between the ceding enterprise's total contract costs before and after the experience under the contract at the reporting date. Accordingly, for retrospectively-rated multi-year policies, additional premiums are generally written and earned when losses are incurred.

Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. All remaining unearned premiums are recognized over the remaining coverage period. 

Premiums from long-duration contracts such as certain traditional term life, whole life, endowment, and long-duration personal accident and health (A&H) policies are generally recognized as revenue when due from policyholders. Traditional life policies include those contracts with fixed and guaranteed premiums and benefits. Benefits and expenses are matched with income to result in the recognition of profit over the life of the contracts.

Retroactive loss portfolio transfer (LPT) contracts in which the insured loss events occurred prior to contract inception are evaluated to determine whether they meet criteria for reinsurance accounting. If reinsurance accounting is appropriate, written premiums are fully earned and corresponding losses and loss expenses recognized at contract inception. These contracts can cause significant variances in gross premiums written, net premiums written, net premiums earned, and net incurred losses in the years in which they are written. Reinsurance contracts sold not meeting criteria for reinsurance accounting are recorded using the deposit method as described below in Note 1 k).

Reinsurance premiums assumed are based on information provided by ceding companies supplemented by our own estimates of premium when we have not received ceding company reports. Estimates are reviewed and adjustments are recorded in the period in which they are determined. Premiums are earned over the coverage terms of the related reinsurance contracts and range from one to three years.

c) Deferred policy acquisition costs and value of business acquired
Policy acquisition costs consist of commissions (direct and ceded), premium taxes, and certain underwriting costs related directly to the successful acquisition of new or renewal insurance contracts. A VOBA intangible asset is established upon the acquisition of blocks of long-duration contracts in a business combination and represents the present value of estimated net cash flows for the contracts in force at the acquisition date. Acquisition costs and VOBA, collectively policy acquisition costs, are deferred and amortized. Amortization is recorded in Policy acquisition costs in the Consolidated statements of operations. Policy acquisition costs on P&C contracts are generally amortized ratably over the period in which premiums are earned. Policy acquisition costs on traditional long-duration contracts are amortized over the estimated life of the contracts, generally in proportion to premium revenue recognized based upon the same assumptions used in estimating the liability for future policy benefits. For non-traditional long-duration contracts, we amortize policy acquisition costs over the expected life of the contracts in proportion to expected gross profits. The effect of changes in estimates of expected gross profits is reflected in the period the estimates are revised. Policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable policy acquisition costs are expensed in the period identified.

Advertising costs are expensed as incurred except for direct-response campaigns that qualify for cost deferral, principally related to long-duration A&H business produced by the Overseas General Insurance segment, which are deferred and recognized as a component of Policy acquisition costs. For individual direct-response marketing campaigns that we can demonstrate have specifically resulted in incremental sales to customers and such sales have probable future economic benefits, incremental costs directly related to the marketing campaigns are capitalized as Deferred policy acquisition costs. Deferred policy acquisition costs, including deferred marketing costs, are reviewed regularly for recoverability from future income, including investment income, and amortized in proportion to premium revenue recognized, primarily over a ten-year period, the expected economic future benefit period based upon the same assumptions used in estimating the liability for future policy benefits. The expected future benefit period is evaluated periodically based on historical results and adjusted prospectively. The amount of deferred marketing costs reported in Deferred policy acquisition costs in the Consolidated balance sheets was $256 million and $250 million at December 31, 2016 and 2015, respectively. Amortization expense for deferred marketing costs was $92 million, $78 million, and $99 million for the years ended December 31, 2016, 2015, and 2014, respectively.

d) Reinsurance
Chubb assumes and cedes reinsurance with other insurance companies to provide greater diversification of business and minimize the net loss potential arising from large risks. Ceded reinsurance contracts do not relieve Chubb of its primary obligation to policyholders.

For both ceded and assumed reinsurance, risk transfer requirements must be met in order to account for a contract as reinsurance, principally resulting in the recognition of cash flows under the contract as premiums and losses. To meet risk transfer requirements, a reinsurance contract must include insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. To assess risk transfer for certain contracts, Chubb generally develops expected discounted cash flow analyses at contract inception. Deposit accounting is used for contracts that do not meet risk transfer requirements. Deposit accounting requires that consideration received or paid be recorded in the balance sheet as opposed to recording premiums written or losses incurred in the statement of operations. Non-refundable fees on deposit contracts are earned based on the terms of the contract described below in Note 1 k).

Reinsurance recoverable includes balances due from reinsurance companies for paid and unpaid losses and loss expenses and policy benefits that will be recovered from reinsurers, based on contracts in force. The method for determining the reinsurance recoverable on unpaid losses and loss expenses incurred but not reported (IBNR) involves actuarial estimates consistent with those used to establish the associated liability for unpaid losses and loss expenses as well as a determination of Chubb's ability to cede unpaid losses and loss expenses under the terms of the reinsurance agreement.

Reinsurance recoverable is presented net of a provision for uncollectible reinsurance determined based upon a review of the financial condition of reinsurers and other factors. The provision for uncollectible reinsurance is based on an estimate of the reinsurance recoverable balance that will ultimately be unrecoverable due to reinsurer insolvency, a contractual dispute, or any other reason. The valuation of this provision includes several judgments including certain aspects of the allocation of reinsurance recoverable on IBNR claims by reinsurer and a default analysis to estimate uncollectible reinsurance. The primary components of the default analysis are reinsurance recoverable balances by reinsurer, net of collateral, and default factors used to determine the portion of a reinsurer's balance deemed uncollectible. The definition of collateral for this purpose requires some judgment and is generally limited to assets held in a Chubb-only beneficiary trust, letters of credit, and liabilities held with the same legal entity for which Chubb believes there is a contractual right of offset. The determination of the default factor is principally based on the financial strength rating of the reinsurer. Default factors require considerable judgment and are determined using the current financial strength rating, or rating equivalent, of each reinsurer as well as other key considerations and assumptions. The more significant considerations include, but are not necessarily limited to, the following:
•
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.

The methods used to determine the reinsurance recoverable balance and related provision for uncollectible reinsurance are regularly reviewed and updated, and any resulting adjustments are reflected in earnings in the period identified.

Prepaid reinsurance premiums represent the portion of premiums ceded to reinsurers applicable to the unexpired coverage terms of the reinsurance contracts in-force.

The value of reinsurance business assumed of $20 million and $21 million at December 31, 2016 and 2015, respectively, included in Other assets in the accompanying Consolidated balance sheets, represents the excess of estimated ultimate value of the liabilities assumed under retroactive reinsurance contracts over consideration received. The value of reinsurance business assumed is amortized and recorded to Losses and loss expenses based on the payment pattern of the losses assumed and ranges between 9 and 40 years. The unamortized value is reviewed regularly to determine if it is recoverable based upon the terms of the contract, estimated losses and loss expenses, and anticipated investment income. Unrecoverable amounts are expensed in the period identified.

e) Investments
Fixed maturities are classified as either available for sale or held to maturity. The available for sale portfolio is reported at fair value. The held to maturity portfolio includes securities for which we have the ability and intent to hold to maturity or redemption and is reported at amortized cost. Equity securities are classified as available for sale and are recorded at fair value. Short-term investments comprise securities due to mature within one year of the date of purchase and are recorded at fair value which typically approximates cost. Short-term investments include certain cash and cash equivalents, which are part of investment portfolios under the management of external investment managers.

Other investments principally comprise life insurance policies, policy loans, trading securities, other direct equity investments, investment funds, and limited partnerships.
•
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.

Investments in partially-owned insurance companies primarily represent direct investments in which Chubb has significant influence and, as such, meet the requirements for equity accounting. We report our share of the net income or loss of the partially-owned insurance companies in Other (income) expense.

Realized gains or losses on sales of investments are determined on a first-in, first-out basis. Unrealized appreciation (depreciation) on investments is included as a separate component of AOCI in Shareholders' equity. We regularly review our investments for OTTI. Refer to Note 3 for additional information.

With respect to securities where the decline in value is determined to be temporary and the security's value is not written down, a subsequent decision may be made to sell that security and realize a loss. Subsequent decisions on security sales are the result of changing or unforeseen facts and circumstances (i.e., arising from a large insured loss such as a catastrophe), deterioration of the creditworthiness of the issuer or its industry, or changes in regulatory requirements. We believe that subsequent decisions to sell such securities are consistent with the classification of the majority of the portfolio as available for sale.

We use derivative instruments including futures, options, swaps, and foreign currency forward contracts for the purpose of managing certain investment portfolio risks and exposures. Refer to Note 10 for additional information. Derivatives are reported at fair value and are recorded in the accompanying Consolidated balance sheets in either Accounts payable, accrued expenses, and other liabilities or Other assets with changes in fair value included in Net realized gains (losses) in the Consolidated statements of operations. Collateral held by brokers equal to a percentage of the total value of open futures contracts is included in the investment portfolio.

Net investment income includes interest and dividend income and amortization of fixed maturity market premiums and discounts and is net of investment management and custody fees. In addition, net investment income includes the amortization of the fair value adjustment related to the acquired invested assets of Chubb Corp. An adjustment of $1,652 million related to the fair value of Chubb Corp’s fixed maturities securities was recorded (fair value adjustment) at the date of acquisition. At December 31, 2016, the remaining balance of this fair value adjustment was $1,226 million which is expected to amortize over the next four years; however, the estimate could vary materially based on current market conditions, bond calls, and the duration of the acquired investment portfolio. In addition, sales of these acquired fixed maturities would also reduce the fair value adjustment balance. For mortgage-backed securities, and any other holdings for which there is a prepayment risk, prepayment assumptions are evaluated and revised as necessary. Any adjustments required due to the resultant change in effective yields and maturities are recognized prospectively. Prepayment fees or call premiums that are only payable when a security is called prior to its maturity are earned when received and reflected in Net investment income. 

Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. Borrowers provide collateral, in the form of either cash or approved securities, of 102 percent of the fair value of the loaned securities. Each security loan is deemed to be an overnight transaction. Cash collateral is invested in a collateral pool which is managed by the banking institution. The collateral pool is subject to written investment guidelines with key objectives which include the safeguard of principal and adequate liquidity to meet anticipated redemptions. The fair value of the loaned securities is monitored on a daily basis, with additional collateral obtained or refunded as the fair value of the loaned securities changes. The collateral is held by the third-party banking institution, and the collateral can only be accessed in the event that the institution borrowing the securities is in default under the lending agreement. As a result of these restrictions, we consider our securities lending activities to be non-cash investing and financing activities. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The fair value of the securities on loan is included in fixed maturities and equity securities. The securities lending collateral is reported as a separate line in the Consolidated balance sheets with a related liability reflecting our obligation to return the collateral plus interest.

Similar to securities lending arrangements, securities sold under repurchase agreements, whereby Chubb sells securities and repurchases them at a future date for a predetermined price, are accounted for as collateralized investments and borrowings and are recorded at the contractual repurchase amounts plus accrued interest. Assets to be repurchased are the same, or substantially the same, as the assets transferred and the transferor, through right of substitution, maintains the right and ability to redeem the collateral on short notice. The fair value of the underlying securities is included in fixed maturities and equity securities. In contrast to securities lending programs, the use of cash received is not restricted. We report the obligation to return the cash as Repurchase agreements in the Consolidated balance sheets.

Refer to Note 4 for a discussion on the determination of fair value for Chubb's various investment securities.

f) Cash
Cash includes cash on hand and deposits with an original maturity of three months or less at time of purchase. Cash held by external money managers is included in Short-term investments.

We have agreements with a third-party bank provider which implemented two international multi-currency notional cash pooling programs. In each program, participating Chubb entities establish deposit accounts in different currencies with the bank provider and each day the credit or debit balances in every account are notionally translated into a single currency (U.S. dollars) and then notionally pooled. The bank extends overdraft credit to any participating Chubb entity as needed, provided that the overall notionally-pooled balance of all accounts in each pool at the end of each day is at least zero. Actual cash balances are not physically converted and are not commingled between legal entities. Any overdraft balances incurred under this program by a Chubb entity would be guaranteed by Chubb Limited (up to $300 million in the aggregate). Our syndicated letter of credit facility allows for same day drawings to fund a net pool overdraft should participating Chubb entities overdraw contributed funds from the pool.

g) Goodwill and Other intangible assets
Goodwill represents the excess of the cost of acquisitions over the fair value of net assets acquired and is not amortized. Goodwill is assigned at acquisition to the applicable reporting unit of the acquired entities giving rise to the goodwill. Goodwill impairment tests are performed annually or more frequently if circumstances indicate a possible impairment. For goodwill impairment testing, we use a qualitative assessment to determine whether it is more likely than not (i.e., more than a 50 percent probability) that the fair value of a reporting unit is greater than its carrying amount. If our assessment indicates less than a 50 percent probability that fair value exceeds carrying value, we quantitatively estimate a reporting unit's fair value. Goodwill recorded in connection with investments in partially-owned insurance companies is recorded in Investments in partially-owned insurance companies and is also measured for impairment annually.

Indefinite lived intangible assets are not subject to amortization. Finite lived intangible assets are amortized over their useful lives, generally ranging from 1 to 30 years. Intangible assets are regularly reviewed for indicators of impairment. Impairment is recognized if the carrying amount is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and fair value.

h) Unpaid losses and loss expenses
A liability is established for the estimated unpaid losses and loss expenses under the terms of, and with respect to, Chubb's policies and agreements. Similar to premiums that are recognized as revenues over the coverage period of the policy, a liability for unpaid losses and loss expenses is recognized as expense when insured events occur over the coverage period of the policy. This liability includes a provision for both reported claims (case reserves) and incurred but not reported claims (IBNR reserves). IBNR reserve estimates are generally calculated by first projecting the ultimate cost of all losses that have occurred (expected losses), and then subtracting paid losses, case reserves, and loss expenses. The methods of determining such estimates and establishing the resulting liability are reviewed regularly and any adjustments are reflected in operations in the period in which they become known. Future developments may result in losses and loss expenses materially greater or less than recorded amounts.

Except for net loss and loss expense reserves of $38 million net of discount, held at December 31, 2016, representing certain structured settlements for which the timing and amount of future claim payments are reliably determinable and $50 million, net of discount, of certain reserves for unsettled claims that are discounted in statutory filings, Chubb does not discount its P&C loss reserves. This compares with reserves of $42 million for certain structured settlements and $50 million of certain reserves for unsettled claims at December 31, 2015. Structured settlements represent contracts purchased from life insurance companies primarily to settle workers' compensation claims, where payments to the claimant by the life insurance company are expected to be made in the form of an annuity. Chubb retains the liability to the claimant in the event that the life insurance company fails to pay. At December 31, 2016, the liability due to claimants was $595 million, net of discount, and reinsurance recoverables due from the life insurance companies was $557 million, net of discount. For structured settlement contracts where payments are guaranteed regardless of claimant life expectancy, the amounts recoverable from the life insurance companies at December 31, 2016 are included in Other assets in the Consolidated balance sheets, as they do not meet the requirements for reinsurance accounting.

Included in Unpaid losses and loss expenses are liabilities for asbestos and environmental (A&E) claims and expenses. These unpaid losses and loss expenses are principally related to claims arising from remediation costs associated with hazardous waste sites and bodily-injury claims related to asbestos products and environmental hazards. The estimation of these liabilities is particularly sensitive to changes in the legal environment including specific settlements that may be used as precedents to settle future claims. However, Chubb does not anticipate future changes in laws and regulations in setting its A&E reserve levels.

Also included in Unpaid losses and loss expenses is an adjustment of $715 million related to Chubb Corp to adjust the carrying value of Chubb Corp’s historical unpaid losses and loss expenses to fair value at the acquisition date. The estimated fair value consists of the present value of the expected net unpaid loss and loss adjustment expense payments adjusted for an estimated risk margin. The estimated cash flows are discounted at a risk free rate. The estimated risk margin varies based on the inherent risks associated with each type of reserve. The fair value is amortized through Amortization of purchased intangibles on the consolidated statements of operations over a range of 5 to 17 years, based on the estimated payout patterns of unpaid loss and loss expenses at the acquisition date. At December 31, 2016, the remaining balance of the fair value adjustment is $470 million.

Prior period development arises from changes to loss estimates recognized in the current year that relate to loss reserves first reported in previous calendar years and excludes the effect of losses from the development of earned premiums from previous accident years.

For purposes of analysis and disclosure, management views prior period development to be changes in the nominal value of loss estimates from period to period, net of premium and profit commission adjustments on loss sensitive contracts. Prior period development generally excludes changes in loss estimates that do not arise from the emergence of claims, such as those related to uncollectible reinsurance, interest, unallocated loss adjustment expenses, or foreign currency. Accordingly, specific items excluded from prior period development include the following: gains/losses related to foreign currency remeasurement; losses recognized from the early termination or commutation of reinsurance agreements that principally relate to the time value of money; changes in the value of reinsurance business assumed reflected in losses incurred but principally related to the time value of money; and losses that arise from changes in estimates of earned premiums from prior accident years. Except for foreign currency remeasurement, which is included in Net realized gains (losses), these items are included in current year losses.

i) Future policy benefits
The valuation of long-duration contract reserves requires management to make estimates and assumptions regarding expenses, mortality, persistency, and investment yields. Estimates are primarily based on historical experience and information provided by ceding companies and include a margin for adverse deviation. Interest rates used in calculating reserves range from less than 1.0 percent to 8.0 percent and less than 1.0 percent to 7.2 percent at December 31, 2016 and 2015, respectively. Actual results could differ materially from these estimates. Management monitors actual experience and where circumstances warrant, will revise assumptions and the related reserve estimates. Revisions are recorded in the period they are determined.

Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP. These assets are classified as trading securities and reported in Other investments and the offsetting liabilities are reported in Future policy benefits in the Consolidated balance sheets. Changes in the fair value of separate account assets that do not qualify for separate account reporting under GAAP are reported in Other income (expense) and the offsetting movements in the liabilities are included in Policy benefits in the Consolidated statements of operations.

j) Assumed reinsurance programs involving minimum benefit guarantees under variable annuity contracts
Chubb reinsures various death and living benefit guarantees associated with variable annuities issued primarily in the United States and Japan. We generally receive a monthly premium during the accumulation phase of the covered annuities (in-force) based on a percentage of either the underlying accumulated account values or the underlying accumulated guaranteed values. Depending on an annuitant's age, the accumulation phase can last many years. To limit our exposure under these programs, all reinsurance treaties include annual or aggregate claim limits and many include an aggregate deductible.

The guarantees which are payable on death, referred to as guaranteed minimum death benefits (GMDB), principally cover shortfalls between accumulated account value at the time of an annuitant's death and either i) an annuitant's total deposits; ii) an annuitant's total deposits plus a minimum annual return; or iii) the highest accumulated account value attained at any policy anniversary date. In addition, a death benefit may be based on a formula specified in the variable annuity contract that uses a percentage of the growth of the underlying contract value. Liabilities for GMDBs are based on cumulative assessments or premiums to date multiplied by a benefit ratio that is determined by estimating the present value of benefit payments and related adjustment expenses divided by the present value of cumulative assessment or expected premiums during the contract period.  

Under reinsurance programs covering GLBs, we assume the risk of guaranteed minimum income benefits (GMIB) and guaranteed minimum accumulation benefits (GMAB) associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder's account value is less than a guaranteed minimum value. Our GLB reinsurance products meet the definition of a derivative for accounting purposes and is carried at fair value with changes in fair value recognized in income. Refer to Notes 5 c) and 10 a) for additional information.

k) Deposit assets and liabilities
Deposit assets arise from ceded reinsurance contracts purchased that do not transfer significant underwriting or timing risk. Deposit liabilities include reinsurance deposit liabilities and contract holder deposit funds. The reinsurance deposit liabilities arise from contracts sold for which there is not a significant transfer of risk. Contract holder deposit funds represent a liability for investment contracts sold that do not meet the definition of an insurance contract, and certain of these contracts are sold with a guaranteed rate of return. Under deposit accounting, consideration received or paid is recorded as a deposit asset or liability in the balance sheet as opposed to recording premiums and losses in the statement of operations.

Interest income on deposit assets, representing the consideration received or to be received in excess of cash payments related to the deposit contract, is earned based on an effective yield calculation. The calculation of the effective yield is based on the amount and timing of actual cash flows at the balance sheet date and the estimated amount and timing of future cash flows. The effective yield is recalculated periodically to reflect revised estimates of cash flows. When a change in the actual or estimated cash flows occurs, the resulting change to the carrying amount of the deposit asset is reported as income or expense. Deposit assets of $93 million and $86 million at December 31, 2016 and 2015, respectively, are reflected in Other assets in the Consolidated balance sheets and the accretion of deposit assets related to interest pursuant to the effective yield calculation is reflected in Net investment income in the Consolidated statements of operations.

Deposit liabilities include reinsurance deposit liabilities of $108 million and $110 million and contract holder deposit funds of $1.5 billion and $1.1 billion at December 31, 2016 and 2015, respectively. Deposit liabilities are reflected in Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets. At contract inception, the deposit liability equals net cash received. An accretion rate is established based on actuarial estimates whereby the deposit liability is increased to the estimated amount payable over the contract term. The deposit accretion rate is the rate of return required to fund expected future payment obligations. We periodically reassess the estimated ultimate liability and related expected rate of return. Changes to the deposit liability are generally reflected through Interest expense to reflect the cumulative effect of the period the contract has been in force, and by an adjustment to the future accretion rate of the liability over the remaining estimated contract term.

The liability for contract holder deposit funds equals accumulated policy account values, which consist of the deposit payments plus credited interest less withdrawals and amounts assessed through the end of the period.

l) Property and Equipment
Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Property and equipment are included in Other assets in the Consolidated balance sheets and totaled $1.2 billion and $938 million at December 31, 2016 and 2015, respectively.

m) Foreign currency remeasurement and translation
The functional currency for each of our foreign operations is generally the currency of the local operating environment. Transactions in currencies other than a foreign operation's functional currency are remeasured into the functional currency and the resulting foreign exchange gains and losses are reflected in Net realized gains (losses) in the Consolidated statements of operations. Functional currency assets and liabilities are translated into the reporting currency, U.S. dollars, using period end exchange rates and the related translation adjustments are recorded as a separate component of AOCI. Functional statement of operations amounts expressed in functional currencies are translated using average exchange rates.

n) Administrative expenses
Administrative expenses generally include all operating costs other than policy acquisition costs. The North America Commercial P&C Insurance segment manages and uses an in-house third-party claims administrator, ESIS Inc. (ESIS). ESIS performs claims management and risk control services for domestic and international organizations that self-insure P&C exposures as well as internal P&C exposures. The net operating results of ESIS are included within Administrative expenses in the Consolidated statements of operations and were $32 million, $30 million, and $27 million for the years ended December 31, 2016, 2015, and 2014, respectively.

o) Income taxes
Income taxes have been recorded related to those operations subject to income taxes. Deferred tax assets and liabilities result from temporary differences between the amounts recorded in the Consolidated financial statements and the tax basis of our assets and liabilities. Refer to Note 8 for additional information. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. The valuation allowance assessment considers tax planning strategies, where applicable.

We recognize uncertain tax positions deemed more likely than not of being sustained upon examination. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

p) Earnings per share
Basic earnings per share is calculated using the weighted-average shares outstanding including participating securities with non-forfeitable rights to dividends such as unvested restricted stock. All potentially dilutive securities including stock options are excluded from the basic earnings per share calculation. In calculating diluted earnings per share, the weighted-average shares outstanding is increased to include all potentially dilutive securities. Basic and diluted earnings per share are calculated by dividing net income by the applicable weighted-average number of shares outstanding during the year.

q) Cash flow information
Premiums received and losses paid associated with the GLB reinsurance products, which as discussed previously meet the definition of a derivative instrument for accounting purposes, are included within Cash flows from operating activities. Cash flows, such as settlements and collateral requirements, associated with GLB and all other derivative instruments are included on a net basis within Cash flows from investing activities. Purchases, sales, and maturities of short-term investments are recorded on a net basis within Cash flows from investing activities.

r) Derivatives
Chubb recognizes all derivatives at fair value in the Consolidated balance sheets and participates in derivative instruments in two principal ways:

(i) To sell protection to customers as an insurance or reinsurance contract that meets the definition of a derivative for accounting purposes. For 2016 and 2015, the reinsurance of GLBs was our primary product falling into this category; and
(ii) To mitigate financial risks, principally arising from investment holdings, products sold, or assets and liabilities held in foreign currencies. For these instruments, changes in assets or liabilities measured at fair value are recorded as realized gains or losses in the Consolidated statements of operations.

We did not designate any derivatives as accounting hedges during 2016, 2015, or 2014.

s) Share-based compensation
Chubb measures and records compensation cost for all share-based payment awards at grant-date fair value. Compensation costs are recognized for share-based payment awards with only service conditions that have graded vesting schedules on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. Refer to Note 12 for additional information.

t) Chubb integration expenses
Direct costs related to the Chubb Corp acquisition are expensed as incurred. Chubb integration expenses were $492 million for the year ended December 31, 2016, and include all internal and external costs directly related to the integration activities of the Chubb Corp acquisition, consisting primarily of personnel-related expenses, including severance and employee retention and relocation; consulting fees; and advisor fees. Chubb integration expenses were $33 million for the year ended December 31, 2015, consisting primarily of consulting and legal fees.

u) New accounting pronouncements
Adopted in 2016
Presentation of Debt Issuance Costs
In April 2015, the Financial Accounting Standard Board (FASB) issued new guidance related to the accounting for debt issuance costs. The new guidance requires presentation of debt issuance costs in the Consolidated balance sheets as a reduction of the carrying amount of the related debt liability instead of as a deferred charge. Previously this cost was recorded in Other assets. We retrospectively adopted this guidance effective January 1, 2016 and reclassified $60 million of debt issuance costs from Other assets to Long-term debt ($58 million) and Trust preferred securities ($2 million) as of December 31, 2015.

Short-Duration Contracts
In May 2015, the FASB issued guidance that requires additional disclosures for short-duration insurance contracts. We adopted this disclosure as of December 31, 2016, and have included in Note 7, new disclosures that provide more information about initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. This guidance requires a change in disclosure only and adoption of this guidance did not have an impact on our financial condition or results of operations.

Adopted in 2015
Business Combinations – Simplifying the Accounting for Measurement-Period Adjustments
In September 2015, the Financial Accounting Standards Board (FASB) issued guidance to simplify the accounting for adjustments made to provisional valuation amounts recognized in a business combination. The guidance requires that the acquirer must recognize adjustments to provisional valuation amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance eliminates the requirement to retrospectively account for such adjustments. Previously, the accounting for measurement-period adjustments required the acquirer to retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill.  We early adopted this guidance effective July 1, 2015. The adoption of this guidance did not have an impact on our financial condition or results of operations.

Disclosures for investments in certain entities that calculate net asset value (NAV)
In May 2015, the FASB issued guidance that eliminated the requirement for investments measured at fair value using NAV as a practical expedient to be categorized within the fair value hierarchy. We adopted this guidance early, effective July 1, 2015 and have retrospectively revised prior year fair value hierarchy disclosures contained in this report to conform to the current period presentation. Refer to Note 4 Fair Value Measurement for further information. This guidance requires a change in disclosure only and adoption of this guidance did not have an impact on our financial condition or results of operations.

Adopted in 2017
Stock Compensation (adopted prospectively effective January 1, 2017)
In March 2016, the FASB issued guidance which requires recognition of the excess tax benefits or deficiencies of awards through net income rather than through additional paid in capital. Additionally, the guidance allows for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We adopted this guidance effective January 1, 2017 and are recognizing the excess tax benefits (deficiencies) within our results of operations. The calculation of the excess tax benefits and deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the consolidated statements of operations. The impact of adoption cannot be estimated at this time. However, based on excess tax benefits recognized in prior years, we do not expect adoption of this guidance to have a material impact on our financial condition and results of operations. Additionally, we elected to retain our current accounting for compensation expense using a forfeiture estimation process.

Accounting guidance not yet adopted
Revenue from Contracts with Customers
In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our claims management and risk control services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The standard is effective for us in the first quarter of 2018 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on our financial condition or results of operations given that the majority of our business is outside the scope of this guidance.

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB issued guidance that affects the recognition, measurement, presentation, and disclosure of financial instruments. The guidance requires equity investments to be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) and an assessment of a valuation allowance on deferred tax assets related to unrealized losses of available for sale (AFS) debt securities in combination with other deferred tax assets. The standard is effective for us in the first quarter of 2018. We are in the process of evaluating the effect the updated guidance will have on our financial condition or results of operations.

Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued guidance on the accounting for credit losses of financial instruments that are measured at amortized cost, including held to maturity securities and reinsurance recoverables, by applying an approach based on the current expected credit losses (CECL). The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset in order to present the net carrying value at the amount expected to be collected on the financial asset on the Consolidated balance sheet.

The guidance also amends the current debt security other-than-temporary impairment model by requiring an estimate of the expected credit loss (ECL) only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a potential credit loss exists. The AFS debt security model will also require the use of a valuation allowance as compared to the current practice of writing down the asset.

The standard is effective for us in the first quarter of 2020 with early adoption permitted in the first quarter of 2019. We will be able to assess the effect of adopting this guidance on our financial condition and results of operations closer to the date of adoption.

Statement of Cash Flows
In August 2016, the FASB issued guidance clarifying the classification of certain cash receipts and cash payments within the statement of cash flows, including distributions received from equity method investments. The guidance requires entities to make an accounting policy election to present cash flows received either in operating cash flows or investing cash flows based on cumulative equity-method earnings or on the nature of the distributions. The updated guidance is effective for us in the first quarter of 2018 with early adoption permitted. The updated guidance should be applied retrospectively, unless it is impracticable to do so, at which point the guidance should be applied prospectively. We are in the process of evaluating the effect the updated guidance will have on our statements of cash flows.

Goodwill Impairment
In January 2017, the FASB issued updated guidance on goodwill impairment testing that eliminates Step 2 of the goodwill impairment test requiring entities to calculate the implied fair value of goodwill through a hypothetical purchase price allocation. Under the updated guidance, impairment will now be recognized as the amount by which a reporting unit’s carrying value exceeds its fair value. The standard is effective for us in the first quarter of 2020 on a prospective basis with early adoption permitted. We do not expect the adoption of this guidance to have a material effect on our financial condition and results of operations.
Acquisitions
Acquisitions
Acquisitions

The Chubb Corporation
On January 14, 2016, we completed the acquisition of Chubb Corp, a leading provider of middle-market commercial, specialty, surety, and personal insurance for $29.5 billion, comprising $14.3 billion in cash and $15.2 billion in newly-issued stock, based on the Chubb Limited (formerly ACE Limited) closing price on the acquisition date. In addition, we assumed outstanding equity awards to employees and directors with an attributed value of $323 million. The total consideration, including the assumption of equity awards, was $29.8 billion. We recognized goodwill of $10.5 billion, attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes. We financed the cash portion of the transaction through a combination of $9.0 billion sourced from various Chubb Limited and Chubb Corp companies plus $5.3 billion of senior notes, which were issued in November 2015. Refer to Note 9 for additional information on the senior notes.
   
Upon completion of the merger, each Chubb Corp common share (other than shares held by certain legacy Chubb Corp employee benefit plans) was canceled and converted, in accordance with the procedures set forth in the merger agreement, into the right to receive (i) 0.6019 of a Chubb Limited common share and (ii) $62.93 in cash. In addition, replacement equity awards were issued by Chubb Limited to the holders of Chubb Corp's outstanding equity awards (stock options, restricted stock units, deferred stock units, deferred unit obligations, and performance units).

We believe the Chubb Corp acquisition is highly complementary to our existing business lines, distribution channels, customer segments, and underwriting skills. Chubb Corp has a substantial presence in the U.S. with a broad variety of coverages serving large corporate and upper middle market accounts, middle market and small commercial accounts, and personal lines. Together we are one of the largest commercial insurers in the U.S. Internationally, where legacy ACE is a truly global insurer with extensive presence in 54 countries, Chubb Corp's operations in 25 markets added to our presence and capabilities and positioned us to better pursue important market opportunities globally. The combined company is a leader in a number of global specialty and traditional products such as professional lines, risk management, workers' compensation, accident and health (A&H), and other property and general casualty lines.
The table below details the purchase consideration and allocation of assets acquired and liabilities assumed:
 
 
(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.

Refer to Note 6 for additional information on goodwill and intangible assets acquired.

The following table summarizes the results of the acquired Chubb Corp operations since the acquisition date that have been included within our Consolidated statement of operations:
(in millions of U.S. dollars)
January 14, 2016 to December 31, 2016

Total revenues
$
12,376

Net income
$
1,756


The following table provides supplemental unaudited pro forma consolidated information for the years ended December 31, 2016 and 2015, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
 
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


Total revenues and net income were lower for the year ended December 31, 2016, compared to the prior year, primarily reflecting merger-related underwriting actions in the current year, which lowered net premiums earned.

Prior year acquisitions

Fireman's Fund Insurance Company High Net Worth Personal Lines Insurance Business in the U.S. (Fireman's Fund)
On April 1, 2015, we acquired the Fireman's Fund Insurance Company high net worth personal lines insurance business in the U.S., which included the renewal rights for new and existing business and reinsurance of all existing reserves for $365 million in cash. We acquired assets with a fair value of $753 million, consisting primarily of cash of $629 million and insurance and reinsurance balances receivable of $124 million. We assumed liabilities with a fair value of $863 million, consisting primarily of unpaid losses and loss expenses of $417 million and unearned premiums of $428 million. This acquisition generated $196 million of goodwill, attributable to expected growth and profitability, all of which is expected to be deductible for income tax purposes, and other intangible assets of $278 million, primarily related to renewal rights, based on Chubb’s purchase price allocation. The acquisition expanded our position in the high net worth personal lines insurers in the U.S. The Fireman’s Fund business was integrated into our existing high net worth personal lines business, offering a broad range of coverage including homeowners, automobile, umbrella and excess liability, collectibles, and yachts. Goodwill and other intangible assets arising from this acquisition are included in our North America Personal P&C Insurance segment.

Large Corporate Account P&C Insurance Business of Itaú Seguros, S.A. (Itaú Seguros)
On October 31, 2014, we expanded our presence in Brazil with the acquisition of the large corporate account property and casualty (P&C) insurance business of Itaú Seguros, Brazil's leading carrier for that business, for $606 million in cash. This acquisition generated $445 million of goodwill, attributable to expected growth and profitability, and other intangible assets of $60 million, primarily related to renewal rights based on Chubb's purchase price allocation. During the fourth quarter of 2015, goodwill became deductible for income tax purposes under Brazilian tax law when we merged Itaú Seguros with a Chubb subsidiary.

The Siam Commercial Samaggi Insurance PCL (Samaggi)
We and our local partner acquired 60.86 percent of Samaggi, a general insurance company in Thailand, from Siam Commercial Bank on April 28, 2014, and subsequently acquired an additional 32.17 percent ownership, through a mandatory tender offer, which expired on June 17, 2014. The purchase price for 93.03 percent of the company was $176 million in cash. This acquisition expands our presence in Thailand and Southeast Asia.

The acquisition generated $46 million of goodwill, attributable to expected growth and profitability, none of which is deductible for income tax purposes, and other intangible assets of $80 million based on Chubb’s purchase price allocation. The other intangible assets primarily relate to a bancassurance agreement.

Goodwill and other intangible assets arising from the prior year acquisitions of Itaú Seguros and Samaggi described above are included in our Overseas General Insurance segment.

The Consolidated financial statements include results of acquired businesses from the acquisition dates.
Investments
Investments
Investments

a) Fixed maturities
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

 
$
—



As discussed in Note 3 c), if a credit loss is incurred on an impaired fixed maturity, an OTTI is considered to have occurred and the portion of the impairment not related to credit losses (non-credit OTTI) is recognized in OCI. Included in the “OTTI Recognized in AOCI” columns above are the cumulative amounts of non-credit OTTI recognized in OCI adjusted for subsequent sales, maturities, and redemptions. OTTI recognized in AOCI does not include the impact of subsequent changes in fair value of the related securities. In periods subsequent to a recognition of OTTI in OCI, changes in the fair value of the related fixed maturities are reflected in Net unrealized appreciation on investments in the Consolidated statement of shareholders' equity. For the years ended December 31, 2016 and 2015, $62 million of net unrealized appreciation and $15 million of net unrealized depreciation, respectively, related to such securities is included in OCI. At December 31, 2016 and 2015, AOCI included cumulative net unrealized appreciation of $10 million and net unrealized depreciation of $35 million, respectively, related to securities remaining in the investment portfolio for which a non-credit OTTI was recognized.

Mortgage-backed securities (MBS) issued by U.S. government agencies are combined with all other to be announced mortgage derivatives held (refer to Note 10 c) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 81 percent of the total mortgage-backed securities at both December 31, 2016 and 2015, are represented by investments in U.S. government agency bonds. The remainder of the mortgage exposure consists of collateralized mortgage obligations and non-government mortgage-backed securities, the majority of which provide a planned structure for principal and interest payments and carry a rating of AAA by the major credit rating agencies.

The following table presents fixed maturities by contractual maturity:
 
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


Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. 

b) Equity securities
 
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


c) Net realized gains (losses)
In accordance with guidance related to the recognition and presentation of OTTI, when an impairment related to a fixed maturity has occurred, OTTI is required to be recorded in Net income if management has the intent to sell the security or it is more likely than not that we will be required to sell the security before the recovery of its amortized cost. Further, in cases where we do not intend to sell the security and it is more likely than not that we will not be required to sell the security, we must evaluate the security to determine the portion of the impairment, if any, related to credit losses. If a credit loss is incurred, an OTTI is considered to have occurred and any portion of the OTTI related to credit losses must be reflected in Net income, while the portion of OTTI related to all other factors is recognized in OCI. For fixed maturities held to maturity, OTTI recognized in OCI is accreted from AOCI to the amortized cost of the fixed maturity prospectively over the remaining term of the securities.

Each quarter, securities in an unrealized loss position (impaired securities), including fixed maturities, securities lending collateral, equity securities, and other investments, are reviewed to identify impaired securities to be specifically evaluated for a potential OTTI.

For all non-fixed maturities, OTTI is evaluated based on the following:

•
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.
As a general rule, we also consider that equity securities in an unrealized loss position for twelve consecutive months are other than temporarily impaired. For mutual funds included in equity securities in our Consolidated balance sheets, we employ analysis similar to fixed maturities, when applicable.

Evaluation of potential credit losses related to fixed maturities
We review each fixed maturity in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, we consider credit rating, market price, and issuer-specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities, for which we determine that credit loss is likely, are subjected to further analysis to estimate the credit loss recognized in Net income, if any. In general, credit loss recognized in Net income equals the difference between the security’s amortized cost and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security. All significant assumptions used in determining credit losses are subject to change as market conditions evolve.

U.S. Treasury and agency obligations (including agency mortgage-backed securities); foreign government obligations; and states, municipalities, and political subdivisions obligations
U.S. Treasury and agency obligations (including agency mortgage-backed securities); foreign government obligations; and states, municipalities, and political subdivisions obligations represent $725 million of gross unrealized loss at December 31, 2016. These securities were evaluated for credit loss primarily using qualitative assessments of the likelihood of credit loss considering credit rating of the issuers and level of credit enhancement, if any. We concluded that the high level of creditworthiness of the issuers coupled with credit enhancement, where applicable, supports recognizing no credit loss in Net income.

Corporate securities
Projected cash flows for corporate securities (principally senior unsecured bonds) are driven primarily by assumptions regarding probability of default and also the timing and amount of recoveries associated with defaults. Chubb developed projected cash flows for corporate securities using market observable data, issuer-specific information, and credit ratings. We use historical default data by Moody’s Investors Service (Moody’s) rating category to calculate a 1-in-100 year probability of default, which results in a default assumption in excess of the historical mean default rate. Consistent with management's approach, Chubb assumed a 32 percent recovery rate (the par value of a defaulted security that will be recovered) across all rating categories, rather than using Moody's historical mean recovery rate of 42 percent. We believe that use of a default assumption, in excess of the historical mean, is conservative in light of current market conditions.

The following table presents default assumptions by Moody's rating category (historical mean default rate provided for comparison):
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
%


Application of the methodology and assumptions described above resulted in credit losses recognized in Net income for corporate securities of $30 million, $50 million, and $27 million for the years ended December 31, 2016, 2015, and 2014, respectively.

Mortgage-backed securities
For mortgage-backed securities, credit impairment is assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements that exist in that structure. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including default rates, prepayment rates, and loss severity rates (the par value of a defaulted security that will not be recovered) on foreclosed properties.

We develop specific assumptions using market data, where available, and include internal estimates as well as estimates published by rating agencies and other third-party sources. We project default rates by mortgage sector considering current underlying mortgage loan performance, generally assuming lower loss severity for Prime sector bonds versus ALT-A and Sub-prime bonds.

These estimates are extrapolated along a default timing curve to estimate the total lifetime pool default rate. Other assumptions used contemplate the actual collateral attributes, including geographic concentrations, rating agency loss projections, rating actions, and current market prices. If cash flow projections indicate that losses will exceed the credit enhancement for a given tranche, then we do not expect to recover our amortized cost basis, and we recognize an estimated credit loss in Net income.

For the year ended December 31, 2016, there were $1 million of credit losses recognized in Net income for mortgage-backed securities. For the years ended December 31, 2015 and 2014, there were no credit losses recognized in Net income for mortgage-backed securities.
The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary” and the change in net unrealized appreciation (depreciation) of investments: 
 
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


 
The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI: 
 
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


d) Other investments
 
 
 
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



Investment funds include one highly diversified fund investment as well as several direct funds that employ a variety of investment styles such as long/short equity and arbitrage/distressed. Included in limited partnerships and partially-owned investment companies are 143 individual limited partnerships covering a broad range of investment strategies including large cap buyouts, specialist buyouts, growth capital, distressed, mezzanine, real estate, and co-investments. The underlying portfolio consists of various public and private debt and equity securities of publicly traded and privately held companies and real estate assets. The underlying investments across various partnerships, geographies, industries, asset types, and investment strategies provide risk diversification within the limited partnership portfolio and the overall investment portfolio. Trading securities comprise $271 million of mutual funds supported by assets that do not qualify for separate account reporting under GAAP at December 31, 2016 compared with $257 million at December 31, 2015. Trading securities also includes assets held in rabbi trusts of $14 million of equity securities and $11 million of fixed maturities at December 31, 2016, compared with $20 million of equity securities and $7 million of fixed maturities at December 31, 2015.

e) Investments in partially-owned insurance companies
In 2015, we paid $90 million to acquire 11.3 percent of the common equity of ABR Reinsurance Capital Holdings Ltd. and warrants to acquire 0.5 percent of additional equity. ABR Reinsurance Capital Holdings Ltd., is the parent company of ABR Reinsurance Ltd. (ABR Re), an independent reinsurance company. Through long-term arrangements, Chubb will be the sole source of reinsurance risks ceded to ABR Re, and BlackRock, Inc. will be ABR Re’s exclusive investment management service provider. As an investor, Chubb is expected to benefit from underwriting profit generated by ABR Re’s reinsuring a wide range of Chubb’s primary insurance business and the income and capital appreciation BlackRock, Inc. seeks to deliver through its investment management services. In addition, Chubb has entered into an arrangement with BlackRock, Inc. under which both Chubb and BlackRock, Inc. will be entitled to an equal share of the aggregate amount of certain fees, including underwriting and investment management performance related fees, in connection with their respective reinsurance and investment management arrangements with ABR Re.

ABR Re is a variable interest entity; however, Chubb is not the primary beneficiary and does not consolidate ABR Re because Chubb does not have the power to control and direct ABR Re’s most significant activities, including investing and underwriting. Our minority ownership interest is accounted for under the equity method of accounting. Chubb cedes premiums to ABR Re and recognizes the associated commissions. At December 31, 2016 and 2015, Chubb ceded reinsurance premiums of $288 million and $115 million, respectively, and recognized ceded commissions of $66 million and $30 million, respectively. At December 31, 2016 and 2015, the amount of Reinsurance recoverable on losses and loss expenses was $148 million and $82 million, respectively, and the amount of ceded reinsurance premium payable included in Insurance and reinsurance balances payable in the Consolidated balance sheet was $53 million and $6 million, respectively.

The following table presents Investments in partially-owned insurance companies:
 
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

 
 
 
 

Huatai Group and Huatai Life Insurance Company provide a range of P&C, life, and investment products.

f) Gross unrealized loss
At December 31, 2016, there were 11,078 fixed maturities out of a total of 31,955 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $7 million. There were 87 equity securities out of a total of 320 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $3 million. Fixed maturities in an unrealized loss position at December 31, 2016, comprised both investment grade and below investment grade securities for which fair value declined primarily due to widening credit spreads since the date of purchase.

The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
 
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
)

g) Net investment income
 
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


h) Restricted assets
Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. Chubb is also required to restrict assets pledged under repurchase agreements. We also use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We also have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets at December 31, 2016 and 2015, are investments, primarily fixed maturities, totaling $20.1 billion and $16.9 billion, and cash of $103 million and $110 million, respectively.
The following table presents the components of restricted assets: 
 
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

Fair value measurements
Fair value measurements
Fair value measurements

a) Fair value hierarchy
Fair value of financial assets and financial liabilities is estimated based on the framework established in the fair value accounting guidance. The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data.
 
The three levels of the hierarchy are as follows:

•
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
interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and
•
Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants
would use in pricing an asset or liability.
We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement. Accordingly, transfers between levels within the valuation hierarchy occur when there are significant changes to the inputs, such as increases or decreases in market activity, changes to the availability of current prices, changes to the transparency to underlying inputs, and whether there are significant variances in quoted prices. Transfers in and/or out of any level are assumed to occur at the end of the period.

We use pricing services to obtain fair value measurements for the majority of our investment securities. Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate. Based on our understanding of the market inputs used by the pricing services, all applicable investments have been valued in accordance with GAAP. We do not adjust prices obtained from pricing services. The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy.

Fixed maturities
We use pricing services to estimate fair value measurements for the majority of our fixed maturities. The pricing services use market quotations for fixed maturities that have quoted prices in active markets; such securities are classified within Level 1. For fixed maturities other than U.S. Treasury securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Additional valuation factors that can be taken into account are nominal spreads, dollar basis, and liquidity adjustments. The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements, and sector news. The market inputs used in the pricing evaluation, listed in the approximate order of priority include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each input is dependent on the asset class and the market conditions. Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant. Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market based inputs (i.e., stale pricing), which may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur. The overwhelming majority of fixed maturities are classified within Level 2 because the most significant inputs used in the pricing techniques are observable. For a small number of fixed maturities, we obtain a single broker quote (typically from a market maker). Due to the disclaimers on the quotes that indicate that the price is indicative only, we include these fair value estimates in Level 3. 

Equity securities
Equity securities with active markets are classified within Level 1 as fair values are based on quoted market prices. For equity securities in markets which are less active, fair values are based on market valuations and are classified within Level 2. Equity securities for which pricing is unobservable are classified within Level 3.

Short-term investments
Short-term investments, which comprise securities due to mature within one year of the date of purchase that are traded in active markets, are classified within Level 1 as fair values are based on quoted market prices. Securities such as commercial paper and discount notes are classified within Level 2 because these securities are typically not actively traded due to their approaching maturity and, as such, their cost approximates fair value. Short-term investments for which pricing is unobservable are classified within Level 3.

Other investments
Fair values for the majority of Other investments including investments in partially-owned investment companies, investment funds, and limited partnerships are based on their respective net asset values or equivalent (NAV) and are excluded from the fair value hierarchy table below. Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP. These assets comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Other investments also include equity securities classified within Level 1, and fixed maturities, classified within Level 2, held in rabbi trusts maintained by Chubb for deferred compensation plans, and are classified within the valuation hierarchy on the same basis as other equity securities and fixed maturities. Other investments for which pricing is unobservable are classified within Level 3.

Securities lending collateral
The underlying assets included in Securities lending collateral in the Consolidated balance sheets are fixed maturities which are classified in the valuation hierarchy on the same basis as other fixed maturities. Excluded from the valuation hierarchy is the corresponding liability related to Chubb’s obligation to return the collateral plus interest as it is reported at contract value and not fair value in the Consolidated balance sheets.

Investment derivative instruments
Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps are based on market valuations and are classified within Level 2. Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

Other derivative instruments
We generally maintain positions in other derivative instruments including exchange-traded equity futures contracts and option contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in reserves for our guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) reinsurance business. Our position in exchange-traded equity futures contracts is classified within Level 1. At December 31, 2016 we held no positions in option contracts on equity market indices. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. Other derivative instruments based on unobservable inputs are classified within Level 3. Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

Separate account assets
Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. Separate account assets comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Separate account assets also include fixed maturities classified within Level 2 because the most significant inputs used in the pricing techniques are observable. Excluded from the valuation hierarchy are the corresponding liabilities as they are reported at contract value and not fair value in the Consolidated balance sheets. Separate account assets are recorded in Other assets in the Consolidated balance sheets.

Guaranteed living benefits
The GLB arises from life reinsurance programs covering living benefit guarantees whereby we assume the risk of guaranteed minimum income benefits (GMIB) and guaranteed minimum accumulation benefits (GMAB) associated with variable annuity contracts. GLB’s are recorded in Accounts payable, accrued expenses, and other liabilities and Future policy benefits in the Consolidated balance sheets. For GLB reinsurance, Chubb estimates fair value using an internal valuation model which includes current market information and estimates of policyholder behavior. All of the treaties contain claim limits, which are factored into the valuation model. The fair value depends on a number of factors, including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates and other policyholder behavior, and changes in policyholder mortality.
The most significant policyholder behavior assumptions include lapse rates and the GMIB annuitization rates. Assumptions regarding lapse rates and GMIB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable.

A lapse rate is the percentage of in-force policies surrendered in a given calendar year. All else equal, as lapse rates increase, ultimate claim payments will decrease. In general, the base lapse function assumes low lapse rates (ranging from about 3 percent to 9 percent per annum) during the surrender charge period of the GMIB contract, followed by a “spike” lapse rate (ranging from about 6 percent to 33 percent per annum) in the year immediately following the surrender charge period, and then reverting to an ultimate lapse rate (generally around 11 percent per annum), typically over a 2-year period. This base rate is adjusted downward for policies with more valuable guarantees (policies with guaranteed values far in excess of their account values) by multiplying the base lapse rate by a factor ranging from 15 percent to 75 percent. Partial withdrawals and the impact of older policyholders with tax-qualified contracts (due to required minimum distributions) are also reflected in our modeling.

The GMIB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GMIB. All else equal, as GMIB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits. All GMIB reinsurance treaties include claim limits to protect Chubb in the event that actual annuitization behavior is significantly higher than expected. In general, Chubb assumes that GMIB annuitization rates will be higher for policies with more valuable guarantees (policies with guaranteed values far in excess of their account values). In addition, we also assume that GMIB annuitization rates are higher in the first year immediately following the waiting period (the first year the policies are eligible to annuitize using the GMIB) in comparison to all subsequent years. We do not yet have fully credible annuitization experience for all clients.

The level of annuitization assumptions at December 31, 2016 are as follows:
% 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%
 
(1) Because all policies in this bracket are past the first year of eligibility, first year annuitization assumptions are no longer modeled.  
(2) Weighted average of two different annuitization rates.

The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established in line with data received from other ceding companies adjusted, as appropriate, with industry estimates. The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities. Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3.

In the fourth quarter of 2016, we completed an updated review of policyholder behavior related to partial withdrawals, lapses, and annuitizations for our variable annuity reinsurance business.

•
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.

We will continue to monitor actual policyholder behavior against our assumptions and make adjustments as appropriate. Also, during the fourth quarter of 2016, we refined our model by adjusting the way lapse and annuitization rates react to policyholder account values reaching zero. This refinement decreased the fair value of GLB liabilities and generated a realized gain of approximately $23 million.
During each of the years ended December 31, 2016, 2015, and 2014, we made minor technical refinements to the internal valuation model which resulted in no material impact on the financial statements.
Financial instruments measured at fair value on a recurring basis, by valuation hierarchy 
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.

There were no transfers of financial instruments between Level 1 and Level 2 for the years ended December 31, 2016 and 2015. During 2014, there were transfers from Level 1 to Level 2 of $189 million.
Fair value of alternative investments
Alternative investments include investment funds, limited partnerships, and partially-owned investment companies measured at fair value using NAV as a practical expedient.
The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments: 
 
 
 
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



Included in all categories in the above table, except for Investment funds, are investments for which Chubb will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds.
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

Investment funds
Chubb’s investment funds employ various investment strategies such as long/short equity and arbitrage/distressed. Included in this category are investments for which Chubb has the option to redeem at agreed upon value as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investment fund investments may be redeemed monthly, quarterly, semi-annually, or annually. If Chubb wishes to redeem an investment fund investment, it must first determine if the investment fund is still in a lock-up period (a time when Chubb cannot redeem its investment so that the investment fund manager has time to build the portfolio). If the investment fund is no longer in its lock-up period, Chubb must then notify the investment fund manager of its intention to redeem by the notification date prescribed by the subscription agreement. Subsequent to notification, the investment fund can redeem Chubb’s investment within several months of the notification. Notice periods for redemption of the investment funds range between 5 and 120 days. Chubb can redeem its investment funds without consent from the investment fund managers.

Level 3 financial instruments
The fair values of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) consist of various inputs and assumptions that management makes when determining fair value. Management analyzes changes in fair value measurements classified within Level 3 by comparing pricing and returns of our investments to benchmarks, including month-over-month movements, investment credit spreads, interest rate movements, and credit quality of securities.

The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
(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.
The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3): 
 
 
 
 
 
 
 
 
 
 
 
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. 

b) Financial instruments disclosed, but not measured, at fair value
Chubb uses various financial instruments in the normal course of its business. Our insurance contracts are excluded from fair value of financial instruments accounting guidance, and therefore, are not included in the amounts discussed below.

The carrying values of cash, other assets, other liabilities, and other financial instruments not included below approximated their fair values.

Investments in partially-owned insurance companies
Fair values for investments in partially-owned insurance companies are based on Chubb’s share of the net assets based on the financial statements provided by those companies and are excluded from the valuation hierarchy tables below.

Short- and long-term debt, repurchase agreements, and trust preferred securities
Where practical, fair values for short-term debt, long-term debt, repurchase agreements, and trust preferred securities are estimated using discounted cash flow calculations based principally on observable inputs including incremental borrowing rates, which reflect Chubb’s credit rating, for similar types of borrowings with maturities consistent with those remaining for the debt being valued.

The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
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

Reinsurance
Reinsurance
Reinsurance

a) Consolidated reinsurance
Chubb purchases reinsurance to manage various exposures including catastrophe risks. Although reinsurance agreements contractually obligate Chubb's reinsurers to reimburse it for the agreed-upon portion of its gross paid losses, they do not discharge Chubb's primary liability. The amounts for net premiums written and net premiums earned in the Consolidated statements of operations are net of reinsurance. The following table presents direct, assumed, and ceded premiums:
 
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



For the year ended December 31, 2016, reinsurance recoveries on losses and loss expenses incurred were $4.1 billion, compared with $3.1 billion for both the years ended December 31, 2015 and 2014.

b) Reinsurance recoverable on ceded reinsurance
 
 
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.

We evaluate the financial condition of our reinsurers and potential reinsurers on a regular basis and also monitor concentrations of credit risk with reinsurers. The provision for uncollectible reinsurance is required principally due to the potential failure of reinsurers to indemnify Chubb, primarily because of disputes under reinsurance contracts and insolvencies. We have established provisions for amounts estimated to be uncollectible. At December 31, 2016 and 2015, we recorded a provision for uncollectible reinsurance of $300 million and $328 million, respectively. The following tables present a listing, at December 31, 2016, of the categories of Chubb's reinsurers:
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.

The provision for uncollectible reinsurance is principally based on an analysis of the credit quality of the reinsurer and collateral balances. We establish the provision for uncollectible reinsurance for the Other category based on a case-by-case analysis of individual situations including the merits of the underlying matter, credit and collateral analysis, and consideration of our collection experience in similar situations.

c) Assumed life reinsurance programs involving minimum benefit guarantees under variable annuity contracts
The following table presents income and expenses relating to GMDB and GLB reinsurance. GLBs include GMIBs as well as some GMABs originating in Japan.
 
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
)


Net realized gains (losses) in the table above include gains (losses) related to foreign exchange and fair value adjustments on insurance derivatives and exclude gains (losses) on S&P put options and futures used to partially offset the risk in the GLB reinsurance portfolio. Refer to Note 10 for additional information.
At December 31, 2016 and 2015, the reported liability for GMDB reinsurance was $120 million and $117 million, respectively. At December 31, 2016 and 2015, the reported liability for GLB reinsurance was $853 million and $888 million, respectively, which includes a fair value derivative adjustment of $559 million and $609 million, respectively. Reported liabilities for both GMDB and GLB reinsurance are determined using internal valuation models. Such valuations require considerable judgment and are subject to significant uncertainty. The valuation of these products is subject to fluctuations arising from, among other factors, changes in interest rates, changes in equity markets, changes in credit markets, changes in the allocation of the investments underlying annuitants’ account values, and assumptions regarding future policyholder behavior. These models and the related assumptions are regularly reviewed by management and enhanced, as appropriate, based upon improvements in modeling assumptions and availability of updated information, such as market conditions and demographics of in-force annuities.
Variable Annuity Net Amount at Risk
The net amount at risk is defined as the present value of future claim payments assuming policy account values and guaranteed values are fixed at the valuation date (December 31, 2016 and 2015, respectively) and reinsurance coverage ends at the earlier of the maturity of the underlying variable annuity policy or the reinsurance treaty. In addition, the following assumptions were used:
(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
 
(1) Takes into account all applicable reinsurance treaty claim limits.
(2) Annuitization at a level that maximizes claims taking into account the treaty limits.
(3) Covering both the GMDB and GLB risks on the same underlying policyholders.

The average attained age of all policyholders for all risk categories above, weighted by the guaranteed value of each reinsured policy, is approximately 70 years.
Intangible Assets
Intangible Assets Disclosure [Text Block]
6. Goodwill and intangible assets

At December 31, 2016 and 2015, Goodwill was $15.3 billion and $4.8 billion, respectively, and Other intangible assets were $6.8 billion and $887 million, respectively. The increases in Goodwill and Other intangible assets reflect the goodwill and intangible assets recorded in connection with the Chubb Corp acquisition.

a) Goodwill
The following table presents a roll-forward of Goodwill by segment:
(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



b) Other intangible assets
Included in Other intangible assets at December 31, 2016 and 2015, are intangible assets subject to amortization of $3.8 billion and $789 million, respectively, and intangible assets not subject to amortization of $3.0 billion and $98 million, respectively. Intangible assets subject to amortization primarily include agency relationships and renewal rights, software, and client lists. Intangible assets not subject to amortization, primarily trademarks, are principally attributable to the Chubb Corp acquisition.

The purchase price allocation to intangible assets recorded in connection with the Chubb Corp acquisition and their related useful lives are as follows:
(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

 
 


Amortization of purchased intangibles
Amortization expense related to purchased intangibles amounted to $19 million, $171 million, and $108 million for the years ended December 31, 2016, 2015, and 2014, respectively. Amortization expense of purchased intangibles was low in 2016 reflecting the favorable impact of the amortization benefit of the fair value adjustment on acquired Unpaid losses and loss expenses. In 2017, the amortization is expected to increase to $251 million, primarily reflecting the increase in intangible amortization related to agency distribution relationships and renewal rights.

The following table presents, as of December 31, 2016, the expected estimated pre-tax amortization expense (benefit) of purchased intangibles, at current foreign currency exchange rates, for the next five years:
 
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.

c) VOBA
The following table presents a roll-forward of VOBA:
(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.

The following table presents, as of December 31, 2016, the expected estimated pre-tax amortization expense related to VOBA for the next five years:
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

Unpaid losses and loss expenses
Unpaid Losses and Loss Expenses
Unpaid losses and loss expenses

Chubb establishes reserves for the estimated unpaid ultimate liability for losses and loss expenses under the terms of its policies and agreements. Reserves include estimates for both claims that have been reported and for IBNR claims, and include estimates of expenses associated with processing and settling these claims. Reserves are recorded in Unpaid losses and loss expenses in the consolidated balance sheets. While we believe that our reserves for unpaid losses and loss expenses at December 31, 2016 are adequate, new information or trends may lead to future developments in incurred loss and loss expenses significantly greater or less than the reserves provided. Any such revisions could result in future changes in estimates of losses or reinsurance recoverable and would be reflected in our results of operations in the period in which the estimates are changed.

a) Description of Reserving Methodologies
Our recorded reserves represent management's best estimate of the provision for unpaid claims as of the balance sheet date. Management's best estimate is developed after collaboration with actuarial, underwriting, claims, legal, and finance departments and culminates with the input of reserve committees. Each business unit reserve committee includes the participation of the relevant parties from actuarial, finance, claims, and unit senior management and has the responsibility for finalizing, recommending and approving the estimate to be used as management's best estimate. Reserves are further reviewed by Chubb's Chief Actuary and senior management. The objective of such a process is to determine a single estimate that we believe represents a better estimate than any other and which is viewed by management to be the best estimate of ultimate loss settlements.

This estimate is based on a combination of exposure and experience-based actuarial methods (described below) and other considerations such as claims reviews, reinsurance recovery assumptions and/or input from other knowledgeable parties such as underwriting. Exposure-based methods are most commonly used on relatively immature origin years (i.e., the year in which the losses were incurred — “accident year” or “report year”), while experience-based methods provide a view based on the projection of loss experience that has emerged as of the valuation date. Greater reliance is placed upon experience-based methods as the pool of emerging loss experience grows and where it is deemed sufficiently credible and reliable as the basis for the estimate. In comparing the held reserve for any given origin year to the actuarial projections, judgment is required as to the credibility, uncertainty and inherent limitations of applying actuarial techniques to historical data to project future loss experience. Examples of factors that impact such judgments include, but are not limited to, the following:

•
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.

We have actuarial staff within each of our business units who analyze loss reserves (including loss expenses) and regularly project estimates of ultimate losses and the corresponding indications of the required IBNR reserve. Our reserving approach is a comprehensive ground-up process using data at a detailed level that reflects the specific types and coverages of the diverse products written by our various operations. The data presented in this disclosure was prepared on a more aggregated basis and with a focus on changes in incurred loss estimates over time as well as associated cash flows. We note that data prepared on this basis may not demonstrate the full spectrum of characteristics that are evident in the more detailed level studied internally.

We perform an actuarial reserve review for each product line at least once a year. For most product lines, one or more standard actuarial reserving methods may be used to determine estimates of ultimate losses and loss expenses, and from these estimates, a single actuarial central estimate is selected. The actuarial central estimate is an input to the reserve committee process described above. For the few product lines that do not lend themselves to standard actuarial reserving methods, appropriate techniques are applied to produce the actuarial central estimates. For example, run-off asbestos and environmental liability estimates are better suited to the application of account-specific exposure-based analyses to best evaluate their associated aggregate reserve levels.

b) Standard actuarial reserving methods
Standard actuarial reserving methods include, but are not limited to, expected loss ratio, paid and reported loss development, and Bornhuetter-Ferguson methods. A general description of these methods is provided below. In addition to these standard methods, depending upon the product line characteristics and available data, we may use other recognized actuarial methods and approaches. Implicit in the standard actuarial methods that we generally utilize is the need for two fundamental assumptions: first, the pattern by which losses are expected to emerge over time for each origin year, and second the expected loss ratio for each origin year.

The expected loss ratio for any particular origin year is selected after consideration of a number of factors, including historical loss ratios adjusted for rate changes, premium and loss trends, industry benchmarks, the results of policy level loss modeling at the time of underwriting, and/or other more subjective considerations for the product line (e.g., terms and conditions) and external environment as noted above. The expected loss ratio for a given origin year is initially established at the start of the origin year as part of the planning process. This analysis is performed in conjunction with underwriters and management. The expected loss ratio method arrives at an ultimate loss estimate by multiplying the expected ultimate loss ratio by the corresponding premium base. This method is most commonly used as the basis for the actuarial central estimate for immature origin periods on product lines where the actual paid or reported loss experience is not yet deemed sufficiently credible to serve as the principal basis for the selection of ultimate losses. The expected loss ratio for a given origin year may be modified over time if the underlying assumptions differ from the original assumptions (e.g., the assessment of prior year loss ratios, loss trend, rate changes, actual claims, or other information).

Our selected paid and reported development patterns provide a benchmark against which the actual emerging loss experience can be monitored. Where possible, development patterns are selected based on historical loss emergence by origin year. For product lines where the historical data is viewed to have low statistical credibility, the selected development patterns also reflect relevant industry benchmarks and/or experience from similar product lines written elsewhere within Chubb. This most commonly occurs for relatively new product lines that have limited historical data or for high severity/low frequency portfolios where our historical experience exhibits considerable volatility and/or lacks credibility. The paid and reported loss development methods convert the selected loss emergence pattern to a set of multiplicative factors which are then applied to actual paid or reported losses to arrive at an estimate of ultimate losses for each period. Due to their multiplicative nature, the paid and reported loss development methods will leverage differences between actual and expected loss emergence. These methods tend to be utilized for more mature origin periods and for those portfolios where the loss emergence has been relatively consistent over time.

The Bornhuetter-Ferguson method is a combination of the expected loss ratio method and the loss development method, where the loss development method is given more weight as the origin year matures. This approach allows a logical transition between the expected loss ratio method which is generally utilized at earlier maturities and the loss development methods which are typically utilized at later maturities. We usually apply this method using reported loss data although paid data may also be used.

Short-tail business
Short-tail business generally describes product lines for which losses are typically known and paid shortly after the loss actually occurs. This would include, for example, most property, personal accident, aviation hull, and automobile physical damage policies that we write. Due to the short reporting and development pattern for these product lines, the uncertainty associated with our estimate of ultimate losses for any particular accident period diminishes relatively quickly as actual loss experience emerges. We typically assign credibility to methods that incorporate actual loss emergence, such as the paid and reported loss development and Bornhuetter-Ferguson methods, sooner than would be the case for long-tail lines at a similar stage of development for a given origin year. The reserving process for short-tail losses arising from catastrophic events typically involves an assessment by the claims department, in conjunction with underwriters and actuaries, of our exposure and estimated losses immediately following an event and then subsequent revisions of the estimated losses as our insureds provide updated actual loss information.

Long-tail business
Long-tail business describes lines of business for which specific losses may not be known/reported for some period and for which claims can take significant time to settle/close. This includes most casualty lines such as general liability, D&O, and workers' compensation. There are various factors contributing to the uncertainty and volatility of long-tail business. Among these are:

•
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.

As described above, various factors are considered when determining appropriate data, assumptions, and methods used to establish the loss reserve estimates for long-tail product lines. These factors may also vary by origin year for given product lines. The derivation of loss development patterns from data and the selection of a tail factor to project ultimate losses from actual loss emergence require considerable judgment, particularly with respect to the extent to which historical loss experience is relied upon to support changes in key reserving assumptions.

c) Loss Development Tables
The following loss development tables present Chubb’s historic incurred and paid claims development through December 31, 2016, net of reinsurance, as well as the cumulative number of reported claims, IBNR balances, and other supplementary information.

The loss development data, presented in a triangular format below, represents nine broad product line groupings within the following four segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, Overseas General Insurance, and Global Reinsurance. The remaining short-duration contract portfolios provide limited insight when presented in this format and are included among the reconciling items at the end of this disclosure. The excluded segments are the North America Agricultural Insurance segment, which is short-tailed with final settlements driven largely by the variability of crop prices; and the Life Insurance segment, which is generally written using long-duration contracts. Also excluded is Corporate, which includes run-off liabilities such as asbestos and environmental and other mass tort exposures and which impact accident years older than those shown in the exhibits below.

Each product line grouping follows a similar format and reflects the following:

•
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.

Historical dollar amounts are presented in this footnote on a constant-currency basis, which is achieved by assuming constant foreign exchange rates between periods in the loss triangles, translating prior period amounts using the same local currency exchange rates as the current year end. The impact of this conversion is to show the change between periods exclusive of the effect of fluctuations in exchange rates, which would otherwise distort the change in incurred loss and cash flow patterns shown. The change in incurred loss shown will differ from other U.S. GAAP disclosures of incurred prior period reserve development amounts, which include the effect of fluctuations in exchanges rates.

We have provided guidance in the following pages on key assumptions that should be considered when reviewing this disclosure. The tables are presented retrospectively with respect to acquisitions where these are material and doing so is practicable. Most notably, the Chubb Corp acquisition is presented retrospectively. The unaudited consolidated data is presented solely for informational purposes and is not necessarily indicative of the consolidated data that might have been observed had the transactions been completed prior to the date indicated.

Establishing an estimate for loss reserves requires management to incorporate many assumptions. The information contained in this disclosure allows readers to understand, at the level presented in the development tables, the change over time in incurred loss estimates reported by Chubb, as well as the nature of cash flows associated with those estimates. We have provided information relating to how loss reserve estimates are developed, which is achieved by performing studies among other estimation techniques, at a more detailed level than is presented in the disaggregated disclosures herein. We believe the information provided in the “Loss Development Tables” section of the disclosure is of limited use for independent analysis or application of standard actuarial estimations, and to attempt to do so should be interpreted with care.

Development Tables
The nine development tables presented below display disaggregated loss experience for product grouping as follows:

•
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.

As noted above, the North America Agricultural Insurance and Life Insurance segments and Corporate are excluded from the development tables, but are included as reconciling items. In addition, certain subsets of our business are excluded from the development tables owing to data limitations or unsuitability to the development table presentation, including:

•
We underwrite loss portfolio transfers at various times; by convention, all premium and losses associated with these transactions are recorded to the policy period of the transaction, even though the accident dates of the claims covered may be a decade or more in the past.
•
We 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.

Cumulative Number of Reported Claims
Reported claim counts, on a cumulative basis, are provided to the far right of each paid loss development table. We generally consider a reported claim to be one claim per coverage per claimant, which is generally consistent with our U.S. statutory presentation. We exclude claims closed without payment. Use of the presented claim counts in analysis of company experience has significant limitations, including:

•
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.

Reported claim counts include open claims which have case reserves and exclude claims that have been incurred but not reported. As such the reported claims are consistent with reported losses, which can be calculated by subtracting incurred but not reported losses from incurred losses. However, they are inconsistent with losses in the incurred loss triangle, which includes incurred but not reported loss, and to losses in the paid loss triangle, which exclude case reserves.

North America Commercial P&C Insurance — Workers' Compensation
This product line has a substantial geographic spread and a broad mix across industries. Types of coverage include risk management business predominantly with high deductible policies, loss sensitive business (i.e., retrospectively-rated policies), business fronted for captives, as well as primary guaranteed cost coverages.
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
%

North America Commercial P&C Insurance — Liability
This line consists of primary and excess liability exposures, including medical liability, and professional lines, including directors and officers (D&O) liability, errors and omissions (E&O) liability, employment practices liability (EPL), and fiduciary liability.
The primary and excess liability business represents the largest part of these exposures. The former includes both monoline and commercial package liability. The latter includes a substantial proportion of commercial umbrella, excess and high excess business, where loss activity can produce significant volatility in the loss triangles at later ages within an accident year (and sometimes across years) due to the size of the limits afforded and the complex nature of the underlying losses.

This line also includes management and professional liability products provided to a wide variety of clients, from national accounts to small firms to private and not-for-profit organizations, distributed through brokers, agents, wholesalers and MGAs. Many of these coverages, particularly D&O and E&O, are typically written on a claims-made form. While most of the coverages are underwritten on a primary basis, there are significant amounts of large line and excess exposure as well.
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
%


North America Commercial P&C Insurance — Other Casualty
This product line consists of the remaining commercial casualty coverages such as automobile liability, marine, and aviation. There is also a small portion of commercial multi-peril (CMP) business in accident years 2014 and prior. The paid and reported data are impacted by some catastrophe loss activity primarily on the CMP exposures just noted and, to a lesser extent, marine exposures. The ultimate loss experience for years ended December 31, 2008, 2011, and 2012 were impacted by natural catastrophes.
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
This product line represents first party commercial product lines that are short-tailed in nature, such as property, inland marine, A&H, and surety/fidelity bonds. There is a wide diversity of products, primary and excess coverages, and policy sizes. During this ten-year period, this product line was also impacted by natural catastrophes in the same years as outlined above in Other Casualty.
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
%
 
—
%
 
—
%
 
—
%
 
—
%

North America Personal P&C Insurance
Chubb provides personal lines coverages for high-net-worth individuals and families in North America including homeowners, automobile, valuable articles (including fine art), umbrella liability, and recreational marine insurance offered through independent regional agents and brokers. A portfolio acquired from Fireman’s Fund is presented on a prospective basis beginning in May of accident year 2015. Reserves associated with prior accident periods were acquired through a loss portfolio transfer, which does not allow for a retrospective presentation.
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
%
 
—
%
 
—
%
 
—
%

Overseas General Insurance
Approximately 40 percent of Chubb International’s business is generated by European accounts. Business related to minor acquisitions in Overseas General Insurance is not material and therefore has been excluded from the tables below.

Overseas General Insurance — Casualty
This product line is comprised of D&O liability, E&O liability, financial institutions (including crime/fidelity coverages), and non-U.S. general liability as well as shorter-tailed casualty exposures such as aviation, surety, and political risk. Exposures are located around the world, including Europe, Latin America, and Asia. There is some U.S. exposure in Casualty from multinational accounts. The financial lines coverages are typically written on a claims-made form, while general liability coverages are typically on an occurrence basis and a mix of primary and excess business.
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
%


Overseas General Insurance — Non-Casualty
This product line comprises commercial fire, marine (predominantly cargo), personal automobile (in Latin America, Asia Pacific and Japan), personal cell phones, personal residential (including high net worth), energy and construction. Latin America and Europe each make up about 35 percent of the Chubb International non-casualty book. In general, these lines have relatively stable payment and reporting patterns although they are impacted by natural catastrophes particularly in the 2008, 2010 and 2011 years.
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
Chubb analyzes its Global Reinsurance business on a treaty year basis rather than on an accident year basis. Treaty year data was converted to an accident year basis for the purposes of this disclosure. Mix shifts are an important consideration in these product line groupings. As proportional business and excess of loss business have different earning and loss reporting and payment patterns, this change in mix will affect the cash flow patterns across the accident years. In addition, the shift from excess to proportional business over time will make the cash flow patterns of older and more recent years difficult to compare. In general, the proportional business will pay out more quickly than the excess of loss business, as such, using older years development patterns may overstate the ultimate loss estimates in more recent years.

Global Reinsurance — Property
This portfolio consists of property catastrophe, property proportional, and property per risk books, with U.S. exposure representing approximately 70 percent of the business within this segment. Although the mixture of business varies by year, property catastrophe represents approximately 70 percent in Treaty Years 2007 and after. Of the non-catastrophe book, approximately 75 percent is on proportional treaties in Treaty Year 2007 and after. This percentage has increased over time with the proportion being approximately 50 percent from 2007 growing to approximately 90 percent in Treaty Year 2015, with the remainder being written on an excess of loss basis. Also note, this product line is impacted by natural catastrophes, particularly in the 2011 and 2012 years.
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
%
 
—
%
 
—
%
 
—
%
 
—
 %

Global Reinsurance — Non-Property
This product line includes proportional and excess casualty coverages with exposures located around the world. Reinsurance in general exhibits less stable development patterns than primary business. In particular U.S. casualty reinsurance is long-tailed and can be very volatile.
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
%

The following table presents a reconciliation of the loss development tables above to the gross loss reserve liability in the consolidated balance sheet:
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

(1) Other includes the North America Agricultural Insurance segment, run-off asbestos and environmental, the loss portfolio transfer of Fireman’s Fund personal lines run-off liabilities, and Alternative Risk Solutions. Excludes the Life Insurance segment reserves.
(2) Primarily includes our international A&H business and Life Insurance segment reserves.


The following table presents a reconciliation of Unpaid losses and loss expenses:
 
 
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 losses and loss expenses incurred includes $1,204 million, $546 million, and $527 million, of net favorable prior period development (PPD) in the years ended December 31, 2016, 2015, and 2014, respectively. Long-tail lines include lines such as workers' compensation, general liability, and professional liability; while short-tail lines include lines such as most property lines, energy, personal accident, aviation, marine (including associated liability-related exposures) and agriculture. Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate.

North America Commercial P&C Insurance
2016
North America Commercial P&C Insurance experienced net favorable PPD of $778 million, driven by the following principal changes:

•
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.

2015
North America Commercial P&C Insurance experienced net favorable PPD of $264 million in 2015, driven by the following principal changes:

•
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.

2014
North America Commercial P&C Insurance experienced net favorable PPD of $378 million in 2014, representing 1.4 percent of the beginning consolidated net unpaid losses and loss expense reserves.
North America Personal P&C Insurance
North America Personal P&C Insurance incurred net adverse PPD of $27 million in 2016, in our homeowners and umbrella lines due to higher than expected loss emergence. Average loss severities were higher than expected, and to a lesser degree, reinsurance and other recoveries were lower than expected. Net adverse PPD of $25 million, in 2015, was the net result of several underlying favorable and adverse movements, none of which were significant individually or in the aggregate.
Net adverse PPD of $24 million in 2014, represented 0.1 percent of the beginning consolidated net unpaid losses and loss expense reserves.

North America Agricultural Insurance
North America Agricultural Insurance experienced net favorable development of $72 million and $45 million in 2016 and 2015, respectively, and net adverse development of $34 million in 2014. Actual claim development relates to our MPCI business and is favorable or (adverse) based on better or (worse) than expected crop yield results in certain states at the prior year-end period (i.e., 2016 results based on crop yield results at year-end 2015).

Overseas General Insurance
2016
Overseas General Insurance experienced net favorable PPD of $423 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:

•
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.

2015
Overseas General Insurance experienced net favorable PPD of $343 million in 2015, driven by the following principal changes:

•
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.

2014
Overseas General Insurance experienced net favorable PPD of $391 million in 2014, representing 1.5 percent of the beginning consolidated net unpaid losses and loss expense reserves.

Global Reinsurance
2016
Global Reinsurance experienced net favorable PPD of $78 million, driven by the following principal changes:

•
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.

2015
Global Reinsurance experienced net favorable PPD of $119 million in 2015, driven by the following principal changes:

•
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.

2014
Global Reinsurance experienced net favorable PPD of $63 million in 2014, representing 0.2 percent of the beginning consolidated net unpaid losses and loss expense reserves.

Corporate
2016
Corporate incurred adverse development was $189 million in long-tail lines, driven by the following principal changes:

•
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.
2015
Corporate incurred adverse PPD of $200 million in long-tail lines, driven by the following principal changes:

•
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.

2014
Corporate incurred adverse PPD of $247 million in 2014, representing 0.9 percent of the beginning consolidated net unpaid losses and loss expense reserves.

Asbestos and environmental (A&E)

Chubb's exposure to A&E claims principally arises out of liabilities acquired when it purchased Westchester Specialty in 1998, CIGNA's P&C business in 1999, and Chubb Corp in 2016. The following table presents a roll-forward of consolidated A&E loss reserves including allocated loss expense reserves for A&E exposures, and the provision for uncollectible paid and unpaid reinsurance recoverables:
 
 
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

 

(1) Excludes unallocated loss expenses and the net activity reflects third-party reinsurance other than the aggregate excess of loss reinsurance provided by National Indemnity Company (NICO) to Westchester Specialty (see Westchester Specialty section below).

The A&E net loss reserves including allocated loss expense reserves and provision for uncollectible reinsurance at December 31, 2016 and 2015 shown in the table above is comprised of:
 
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



The incurred activity of $164 million in 2016 and $162 million in 2015 were primarily the result of our annual internal, ground-up review of A&E liabilities.

Brandywine Run-off entities – The Restructuring Plan and uncertainties relating to Chubb's ultimate Brandywine exposure

In 1996, the Pennsylvania Insurance Commissioner approved a plan to restructure INA Financial Corporation and its subsidiaries (the Restructuring) which included the division of Insurance Company of North America (INA) into two separate corporations:

(1) An active insurance company that retained the INA name and continued to write P&C business; and
(2) An inactive run-off company, now called Century Indemnity Company (Century).
As a result of the division, predominantly all A&E and certain other liabilities of INA were ascribed to Century and extinguished, as a matter of Pennsylvania law, as liabilities of INA.

As part of the Restructuring, most A&E liabilities of various U.S. affiliates of INA were reinsured to Century. Century and certain other run-off companies having A&E and other liabilities were contributed to Brandywine Holdings.

The U.S.-based Chubb INA companies assumed two contractual obligations in respect of the Brandywine operations in connection with the Restructuring: a dividend retention fund obligation and a surplus maintenance obligation in the form of the excess of loss (XOL) agreement.

INA Financial Corporation established and funded a dividend retention fund (the Dividend Retention Fund) consisting of $50 million plus investment earnings. The full balance of the Dividend Retention Fund was contributed to Century as of December 31, 2002. Under the Restructuring Order, while any obligation to maintain the Dividend Retention Fund is in effect, to the extent dividends are paid by INA Holdings Corporation to its parent, INA Financial Corporation, and to the extent INA Financial Corporation then pays such dividends to INA Corporation, a portion of those dividends must be withheld to replenish the principal of the Dividend Retention Fund to $50 million. During 2011 and 2010, $35 million and $15 million, respectively, were withheld from such dividends and deposited into the Dividend Retention Fund as a result of dividends paid up to the INA Corporation. Capital contributions from the Dividend Retention Fund to Century are not required until the XOL Agreement has less than $200 million of capacity remaining on an incurred basis for statutory reporting purposes. The amount of the capital contribution shall be the lesser of the amount necessary to restore the XOL Agreement remaining capacity to $200 million or the Dividend Retention Fund balance. The Dividend Retention Fund may not be terminated without prior written approval from the Pennsylvania Insurance Commissioner.

In addition, a Chubb INA insurance subsidiary provided reinsurance coverage to Century in the amount of $800 million under an XOL, triggered if the statutory capital and surplus of Century falls below $25 million or if Century lacks liquid assets with which to pay claims as they become due.

Effective December 31, 2004, Chubb INA contributed $100 million to Century in exchange for a surplus note. After giving effect to the contribution and issuance of the surplus note, the statutory surplus of Century at December 31, 2016 was $25 million and $512 million in statutory-basis losses have been ceded to the XOL on an inception-to-date basis. Century reports the amount ceded under the XOL in accordance with statutory accounting principles, which differ from GAAP by, among other things, allowing Century to discount its liabilities, including certain asbestos related and environmental pollution liabilities and Century's reinsurance payable to active companies. For GAAP reporting purposes, intercompany reinsurance recoverables related to the XOL are eliminated upon consolidation.

While Chubb believes it has no legal obligation to fund Century losses above the XOL limit of coverage, Chubb's consolidated results would nevertheless continue to include any losses above the limit of coverage for so long as the Brandywine companies remain consolidated subsidiaries of Chubb.

Certain active Chubb companies are primarily liable for asbestos, environmental, and other exposures that they have reinsured to Century. Accordingly, if Century were to become insolvent and placed into rehabilitation or liquidation, some or all of the recoverables due to these active Chubb companies from Century could become uncollectible. At both December 31, 2016 and 2015, the aggregate reinsurance recoverables owed by Century to certain active Chubb companies were approximately $1.2 billion. Chubb believes the active company intercompany reinsurance recoverables, which relate to direct liabilities payable over many years, are not impaired. At December 31, 2016 and 2015, Century's carried gross reserves (including reserves assumed from the active Chubb companies) were $2.0 billion and $1.9 billion, respectively. Should Century's loss reserves experience adverse development in the future and should Century be placed into rehabilitation or liquidation, the reinsurance recoverables due from Century to certain active Chubb companies would be payable only after the payment in full of certain expenses and liabilities, including administrative expenses and direct policy liabilities. Thus, the intercompany reinsurance recoverables would be at risk to the extent of the shortage of assets remaining to pay these recoverables.

Westchester Specialty – impact of NICO contracts on Chubb’s run-off entities

As part of the Westchester Specialty acquisition in 1998, NICO provided a 75 percent pro-rata share of $1.0 billion of reinsurance protection on losses and loss adjustment expenses incurred on or before December 31, 1996, in excess of a retention of $721 million. At December 31, 2016, the remaining unused incurred limit under the Westchester NICO agreement was $438 million.
Taxation
Taxation
Taxation

Under Swiss law, a resident company is subject to income tax at the federal, cantonal, and communal levels that is levied on net worldwide income. Income attributable to permanent establishments or real estate located abroad is excluded from the Swiss tax base. Chubb Limited is a holding company and, therefore, is exempt from cantonal and communal income tax. As a result, Chubb Limited is subject to Swiss income tax only at the federal level. Furthermore, participation relief (i.e., tax relief) is granted to Chubb Limited at the federal level for qualifying dividend income and capital gains related to the sale of qualifying participations (i.e., subsidiaries). It is expected that the participation relief will result in a full exemption of participation income from federal income tax. Chubb Limited is subject to an annual cantonal and communal capital tax on the taxable equity of Chubb Limited in Switzerland.

Chubb has two Swiss operating subsidiaries, an insurance company, Chubb Insurance (Switzerland) Limited and a reinsurance company, Chubb Reinsurance (Switzerland) Limited. Both are subject to federal, cantonal, and communal income tax and to annual cantonal and communal capital tax.

Under current Bermuda law, Chubb Limited and its Bermuda subsidiaries are not required to pay any taxes on income or capital gains. If a Bermuda law were enacted that would impose taxes on income or capital gains, Chubb Limited and the Bermuda subsidiaries have received an undertaking from the Minister of Finance in Bermuda that would exempt such companies from Bermudian taxation until March 2035.

Income from Chubb's operations at Lloyd's is subject to United Kingdom (U.K.) corporation taxes. Lloyd's is required to pay U.S. income tax on U.S. connected income (U.S. income) written by Lloyd's syndicates. Lloyd's has a closing agreement with the Internal Revenue Service (IRS) whereby the amount of tax due on this business is calculated by Lloyd's and remitted directly to the IRS. These amounts are then charged to the accounts of the Names/Corporate Members in proportion to their participation in the relevant syndicates. Chubb's Corporate Members are subject to this arrangement but, as U.K. domiciled companies, will receive U.K. corporation tax credits for any U.S. income tax incurred up to the value of the equivalent U.K. corporation income tax charge on the U.S. income.

Chubb Group Holdings and its respective subsidiaries are subject to income taxes imposed by U.S. authorities and file a consolidated U.S. tax return. As part of the Chubb Corp acquisition, immediately following the merger, legacy Chubb Corp merged with and into Chubb INA Holdings Inc., and therefore, joined the Chubb Group Holdings consolidated return. Starting in tax year 2014, Combined Insurance and its life subsidiary joined the Chubb Group Holdings consolidated return. For tax years prior to 2014, Combined Insurance and its life subsidiary filed a separate consolidated U.S. tax return. Should Chubb Group Holdings pay a dividend to Chubb Limited, withholding taxes would apply. Currently, however, no withholding taxes are accrued with respect to such un-remitted earnings as management has no intention of remitting these earnings. Similarly, no taxes have been provided on the un-remitted earnings of certain foreign subsidiaries (Hong Kong and Korea) as management has no intention of remitting these earnings. The cumulative amount that would be subject to withholding tax, if distributed, as well as the determination of the associated tax liability are not practicable to compute; however, such amount would be material to Chubb. Certain international operations of Chubb are also subject to income taxes imposed by the jurisdictions in which they operate.

Chubb's domestic operations are in Switzerland, the jurisdiction where we are legally organized, incorporated, and registered.

The following table presents pre-tax income and the related provision for income taxes:
 
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



The most significant jurisdictions contributing to the overall taxation of Chubb are calculated using the following rates: Switzerland 7.83 percent, Bermuda 0.0 percent, U.S. 35.0 percent, and U.K. 20.0 percent. The following table presents a reconciliation of the difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate:
 
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


(1) 2014 includes a charge to deferred taxes related to non-recognition of foreign tax credits related to unrealized foreign exchange losses.

The following table presents the components of the net deferred tax assets (liabilities):
 
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


(1) Certain amounts within the components of deferred taxes at December 31, 2015 have been reclassified to conform to the new presentation at December 31, 2016.

In connection with the Chubb Corp acquisition, we established deferred tax liabilities, principally related to purchased intangibles. These liabilities resulted in a net deferred tax liability position for us at December 31, 2016 as noted in the table above.   

The valuation allowance of $78 million at December 31, 2016, and $38 million at December 31, 2015, reflects management's assessment, based on available information, that it is more likely than not that a portion of the deferred tax assets will not be realized due to the inability of certain foreign subsidiaries to generate sufficient taxable income. Adjustments to the valuation allowance are made when there is a change in management's assessment of the amount of deferred tax assets that are realizable.

At December 31, 2016, Chubb has net operating loss carry-forwards of $356 million which, if unused, will expire starting in the year 2018, and a foreign tax credit carry-forward in the amount of $114 million which, if unused, will expire in the years 2019 through 2026.

The following table presents a reconciliation of the beginning and ending amount of gross unrecognized tax benefits:
 
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


(1) Assumed in connection with the Chubb Corp acquisition.

At December 31, 2016 and 2015, the total amount of unrecognized tax benefits that would affect the effective tax rate, if recognized, were $17 million and $16 million, respectively.

Chubb recognizes accruals for interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the Consolidated statements of operations. For the years ended December 31, 2016, 2015, and 2014, tax-related interest expense (income) and penalties reported in the Consolidated statements of operations were $1 million, $1 million, and $(1) million, respectively. At both December 31, 2016 and 2015, liabilities for tax-related interest and penalties in our Consolidated balance sheets were $4 million.

In September 2016, the IRS completed its examination of one of our subsidiary’s federal tax returns for the 2010-2012 tax years. No material adjustments resulted from this examination. It is reasonably possible that over the next twelve months, the amount of unrecognized tax benefits may change resulting from the re-evaluation of unrecognized tax benefits arising from examinations of taxing authorities and the closing of tax statutes of limitations. With few exceptions, Chubb is no longer subject to state and local or non-U.S. income tax examinations for years before 2009.
Debt
Debt
Debt
In connection with the Chubb Corp acquisition, Chubb INA Holdings Inc. (formerly ACE INA Holdings Inc.) assumed $3.3 billion par value outstanding debt of Chubb Corp, fair valued at $3.8 billion at the acquisition date. Chubb INA Holdings Inc. (Chubb INA) assumed Chubb Corp's rights, duties and obligations and Chubb Limited fully and unconditionally guarantees Chubb INA's payment obligations under these debts. Additionally, effective January 1, 2016, we retrospectively adopted new accounting guidance that requires debt issuance costs to be recorded as a reduction of the carrying amount of the related debt liability (these costs were previously included in Other assets on the Consolidated balance sheets). The debt balances at December 31, 2015 have been updated to reflect the adoption of this guidance.
 
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.

a) Repurchase agreements
Chubb has executed repurchase agreements with certain counterparties under which Chubb agreed to sell securities and repurchase them at a future date for a predetermined price.

b) Short-term debt
Short-term debt comprises the current maturities of our long-term debt instruments described below. In February 2017, $500 million of 5.7 percent senior notes matured and were fully paid.

c) Long-term debt
Certain of Chubb INA's senior notes and capital securities are redeemable at any time at Chubb INA's option subject to the provisions described in the table above. A "make-whole" premium is the present value of the remaining principal and interest discounted at the applicable U.S. Treasury rate. The senior notes and capital securities are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law.

The senior notes do not have the benefit of any sinking fund. These senior unsecured notes are guaranteed on a senior basis by Chubb Limited and they rank equally with all of Chubb's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt.

In November 2015, Chubb INA issued $5.3 billion of senior notes. The proceeds from the issuance were used to finance a portion of the Chubb Corp acquisition. Chubb INA may redeem some or all of these notes at its option one month (for the 2020 Notes), two months (for the 2022 Notes), three months (for the 2026 Notes), and six months (for the 2045 Notes) prior to the respective maturity dates at a redemption price equal to 100 percent of the principal amount of the notes plus accrued and unpaid interest. The remaining terms of the senior notes are commensurate with those of our existing notes as described above.

We have outstanding $1.0 billion of unsecured junior subordinated capital securities at December 31, 2016, which were assumed by Chubb INA in connection with the Chubb Corp acquisition. The capital securities will become due on April 15, 2037, the scheduled maturity date, but only to the extent that we have received sufficient net proceeds from the sale of certain qualifying capital securities. We must use commercially reasonable efforts, subject to certain market disruption events, to sell enough qualifying capital securities to permit repayment of the capital securities on the scheduled maturity date or as soon thereafter as possible. Any remaining outstanding principal amount will be due on March 29, 2067, the final maturity date. The capital securities bear interest at a rate of 6.375 percent through April 14, 2017. Thereafter, the capital securities will bear interest at a rate equal to the three-month LIBOR rate plus 2.25 percent. Subject to certain conditions, we have the right to defer the payment of interest on the capital securities for a period not exceeding ten consecutive years. During any such period, interest will continue to accrue and we generally may not declare or pay any dividends on or purchase any shares of our capital stock.

In connection with the issuance of capital securities, a replacement capital covenant was entered into in which we agreed that we will not repay, redeem, or purchase capital securities before March 29, 2047, unless, subject to certain limitations, we have received proceeds from the sale of specified replacement capital securities. The replacement capital covenant is not intended for the benefit of holders of the capital securities and may not be enforced by them. The replacement capital covenant is for the benefit of holders of one or more designated series of Chubb's indebtedness, which initially was and continues to be its 6.8 percent debentures due November 2031.

Subject to the replacement capital covenant, the $1.0 billion capital securities may be redeemed, in whole or in part, at any time (i) on or after April 15, 2017 at a redemption price equal to the principal amount plus any accrued interest or (ii) prior to April 15, 2017 at a redemption price equal to the greater of (1) the principal amount or (2) a make-whole premium, in each case plus any accrued interest.

d) Trust preferred securities
In March 2000, ACE Capital Trust II, a Delaware statutory business trust, publicly issued $300 million of 9.7 percent Capital Securities (the Capital Securities) due to mature in April 2030. At the same time, Chubb INA purchased $9.2 million of common securities of ACE Capital Trust II. The sole assets of ACE Capital Trust II consist of $309 million principal amount of 9.7 percent Junior Subordinated Deferrable Interest Debentures (the Subordinated Debentures) issued by Chubb INA due to mature in April 2030.

Distributions on the Capital Securities are payable semi-annually and may be deferred for up to ten consecutive semi-annual periods (but no later than April 1, 2030). Any deferred payments would accrue interest compounded semi-annually if Chubb INA defers interest on the Subordinated Debentures. Interest on the Subordinated Debentures is payable semi-annually. Chubb INA may defer such interest payments (but no later than April 1, 2030), with such deferred payments accruing interest compounded semi-annually. The Capital Securities and the ACE Capital Trust II Common Securities will be redeemed upon repayment of the Subordinated Debentures.

Chubb Limited has guaranteed, on a subordinated basis, Chubb INA's obligations under the Subordinated Debentures, and distributions and other payments due on the Capital Securities. These guarantees, when taken together with Chubb's obligations under expense agreements entered into with ACE Capital Trust II, provide a full and unconditional guarantee of amounts due on the Capital Securities.
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees

a) Derivative instruments
Foreign currency management
As a global company, Chubb entities transact business in multiple currencies. Our policy is to generally match assets, liabilities, and required capital for each individual jurisdiction in local currency, which would include the use of derivatives discussed below. We do not hedge our net asset non-U.S. dollar capital positions; however, we do consider hedging for planned cross border transactions.

Derivative instruments employed
Chubb maintains positions in derivative instruments such as futures, options, swaps, and foreign currency forward contracts for which the primary purposes are to manage duration and foreign currency exposure, yield enhancement, or to obtain an exposure to a particular financial market. Chubb also maintains positions in convertible securities that contain embedded derivatives. Investment derivative instruments are recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP), convertible bonds are recorded in Fixed maturities available for sale (FM AFS), and convertible equity securities are recorded in Equity securities (ES) in the Consolidated balance sheets. These are the most numerous and frequent derivative transactions.

In addition, Chubb from time to time purchases to be announced mortgage-backed securities (TBAs) as part of its investing activities.

Under reinsurance programs covering GLBs, Chubb assumes the risk of GLBs, including GMIB and GMAB, associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder’s account value is less than a guaranteed minimum value. The GLB reinsurance product meets the definition of a derivative instrument. Benefit reserves in respect of GLBs are classified as Future policy benefits (FPB) while the fair value derivative adjustment is classified within AP. Chubb also generally maintains positions in exchange-traded equity futures contracts and options on equity market indices to limit equity exposure in the GMDB and GLB blocks of business. At December 31, 2016, we held no positions in option contracts on equity market indices.

All derivative instruments are carried at fair value with changes in fair value recorded in Net realized gains (losses) in the Consolidated statements of operations. None of the derivative instruments are designated as hedges for accounting purposes.

The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments: 
 
 
 
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.

At December 31, 2016 and 2015, derivative liabilities of $10 million and derivative assets of $1 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement. 

b) Secured borrowings
Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. At December 31, 2016 and 2015, our securities lending collateral was $1,092 million and $1,046 million, respectively, and our securities lending payable, reflecting our obligation to return the collateral plus interest, was $1,093 million and $1,047 million, respectively. The securities lending collateral can only be drawn down by Chubb in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the Consolidated balance sheets.

The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:
 
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.
At December 31, 2016 and 2015, our repurchase agreement obligations of $1,403 million and $1,404 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities, and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.
The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:
 
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.

Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, Chubb will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that Chubb may not be able to renew outstanding borrowings with a new term or with an existing counterparty due to market conditions including a decrease in demand as well as more restrictive terms from banks due to increased regulatory and capital constraints. Should this condition occur, Chubb may seek alternative borrowing sources or reduce borrowings. Additionally, increased margins and collateral requirements due to market conditions would increase our restricted assets as we are required to provide additional collateral to support the transaction.
The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
 
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. 

c) Derivative instrument objectives
(i) Foreign currency exposure management
A foreign currency forward contract (forward) is an agreement between participants to exchange specific foreign currencies at a future date. Chubb uses forwards to minimize the effect of fluctuating foreign currencies as discussed above.

(ii) Duration management and market exposure
Futures
Futures contracts give the holder the right and obligation to participate in market movements, determined by the index or underlying security on which the futures contract is based. Settlement is made daily in cash by an amount equal to the change in value of the futures contract times a multiplier that scales the size of the contract. Exchange-traded futures contracts on money market instruments, notes and bonds are used in fixed maturity portfolios to more efficiently manage duration, as substitutes for ownership of the money market instruments, bonds and notes without significantly increasing the risk in the portfolio. Investments in futures contracts may be made only to the extent that there are assets under management not otherwise committed.

Exchange-traded equity futures contracts are used to limit exposure to a severe equity market decline, which would cause an increase in expected claims and therefore, an increase in reserves for GMDB and GLB reinsurance business.

Options
An option contract conveys to the holder the right, but not the obligation, to purchase or sell a specified amount or value of an underlying security at a fixed price. Option contracts are used in the investment portfolio as protection against unexpected shifts in interest rates, which would affect the duration of the fixed maturity portfolio. By using options in the portfolio, the overall interest rate sensitivity of the portfolio can be reduced. Option contracts may also be used as an alternative to futures contracts in the synthetic strategy as described above.

Another use for option contracts is to limit exposure to a severe equity market decline, which would cause an increase in expected claims and therefore, an increase in reserves for GMDB and GLB reinsurance business.

The price of an option is influenced by the underlying security, expected volatility, time to expiration, and supply and demand.
The credit risk associated with the above derivative financial instruments relates to the potential for non-performance by counterparties. Although non-performance is not anticipated, in order to minimize the risk of loss, management monitors the creditworthiness of its counterparties and obtains collateral. The performance of exchange-traded instruments is guaranteed by the exchange on which they trade. For non-exchange-traded instruments, the counterparties are principally banks which must meet certain criteria according to our investment guidelines.

Cross-currency swaps
Cross-currency swaps are agreements under which two counterparties exchange interest payments and principal denominated in different currencies at a future date. We use cross-currency swaps to reduce the foreign currency and interest rate risk by converting cash flows back into local currency. We invest in foreign currency denominated investments to improve credit diversification and also to obtain better duration matching to our liabilities that is limited in the local currency market.

Other
Included within Other are derivatives intended to reduce potential losses which may arise from certain exposures in our insurance business. The economic benefit provided by these derivatives is similar to purchased reinsurance. For example, Chubb may enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices. Also included within Other are certain life insurance products that meet the definition of a derivative instrument for accounting purposes. 

(iii) Convertible security investments
A convertible security is a debt instrument or preferred stock that can be converted into a predetermined amount of the issuer’s equity. The convertible option is an embedded derivative within the host instruments which are classified in the investment portfolio as either available for sale or as an equity security. Chubb purchases convertible securities for their total return and not specifically for the conversion feature.

(iv) TBA
By acquiring TBAs, we make a commitment to purchase a future issuance of mortgage-backed securities. For the period between purchase of the TBAs and issuance of the underlying security, we account for our position as a derivative in the consolidated financial statements. Chubb purchases TBAs both for their total return and for the flexibility they provide related to our mortgage-backed security strategy.

(v) GLB
Under the GLB program, as the assuming entity, Chubb is obligated to provide coverage until the expiration or maturity of the underlying deferred annuity contracts or the expiry of the reinsurance treaty. Premiums received under the reinsurance treaties are classified as premium. Expected losses allocated to premiums received are classified as Future policy benefits and valued similar to GMDB reinsurance. Other changes in fair value, principally arising from changes in expected losses allocated to expected future premiums, are classified as Net realized gains (losses). Fair value represents management’s estimate of an exit price and thus, includes a risk margin. We may recognize a realized loss for other changes in fair value due to adverse changes in the capital markets (e.g., declining interest rates and/or declining equity markets) and changes in actual or estimated future policyholder behavior (e.g., increased annuitization or decreased lapse rates) although we expect the business to be profitable. We believe this presentation provides the most meaningful disclosure of changes in the underlying risk within the GLB reinsurance programs for a given reporting period.

d) Concentrations of credit risk
Our investment portfolio is managed following prudent standards of diversification. Specific provisions limit the allowable holdings of a single issue and issuer. We believe that there are no significant concentrations of credit risk associated with our investments. Our three largest exposures by issuer at December 31, 2016, were JP Morgan Chase & Co., Wells Fargo & Co., and Goldman Sachs Group Inc. Our largest exposure by industry at December 31, 2016 was financial services.

We market our insurance and reinsurance worldwide primarily through insurance and reinsurance brokers. We assume a degree of credit risk associated with brokers with whom we transact business. No one broker or one insured accounted for more than 10 percent of gross written premium for both the years ended December 31, 2016 and 2015. For the year ended December 31, 2014, approximately 10 percent of our gross premiums written were generated from or placed by Marsh, Inc. This entity is a large, well established company and there are no indications that it is financially troubled at December 31, 2016. No other broker and no one insured or reinsured accounted for more than 10 percent of gross premiums written in the year ended December 31, 2014.

e) Fixed maturities
At December 31, 2016, we have commitments to purchase fixed income securities of $716 million over the next several years.

f) Other investments
At December 31, 2016, included in Other investments in the Consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.4 billion. In connection with these investments, we have commitments that may require funding of up to $2.0 billion over the next several years. 

g) Letters of credit
We have a $1.5 billion unsecured operational LOC facility expiring in November 2017. We are allowed to use up to $300 million of this LOC facility as an unsecured revolving credit facility. At December 31, 2016, outstanding LOCs issued under this facility were $443 million.

This facility requires that Chubb Limited and/or certain of its subsidiaries continue to maintain certain covenants. Chubb Limited is also required to maintain a minimum consolidated net worth covenant and a maximum leverage covenant, all of which have been met at December 31, 2016.

h) Legal proceedings
Our insurance subsidiaries are subject to claims litigation involving disputed interpretations of policy coverages and, in some jurisdictions, direct actions by allegedly-injured persons seeking damages from policyholders. These lawsuits, involving claims on policies issued by our subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in our loss and loss expense reserves. In addition to claims litigation, we are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies. This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures. In the opinion of management, our ultimate liability for these matters could be, but we believe is not likely to be, material to our consolidated financial condition and results of operations.

i) Lease commitments
We lease office space and equipment under operating leases which expire at various dates through 2033. Rent expense was $209 million, $126 million, and $127 million for the years ended December 31, 2016, 2015, and 2014, respectively. Future minimum lease payments under the leases are expected to be as follows:
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

Shareholders' equity
Shareholders' equity
Shareholders’ equity

a) Common Shares
All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing the consolidated financial statements. Under Swiss corporate law, we are generally prohibited from issuing Common Shares below their par value. If there were a need to raise common equity at a time when the trading price of Chubb's Common Shares is below par value, we would need in advance to obtain shareholder approval to decrease the par value of the Common Shares.

Dividend approval
At the January 10, 2014 extraordinary general meeting, our shareholders approved a resolution to increase our quarterly dividend from $0.51 per share to $0.63 per share for the final two quarterly installments (made on January 31, 2014 and April 17, 2014) that had been earlier approved at our 2013 annual general meeting. The $0.12 per share increase for each installment was distributed from capital contribution reserves (Additional paid-in capital), a subaccount of legal reserves, and transferred to free reserves (Retained earnings) for payment, while the existing $0.51 per share was distributed by way of a par value reduction.

At our May 2014 annual general meeting, our shareholders approved an annual dividend for the following year of $2.60 per share, which was paid in four quarterly installments of $0.65 per share after the annual general meeting in the form of a distribution by way of a par value reduction.

At our May 2015 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.68 per share, which was paid in four quarterly installments of $0.67 per share at dates determined by the Board of Directors (Board) after the annual general meeting by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

At our May 2016 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.76 per share, expected to be paid in four quarterly installments of $0.69 per share after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment. The Board will determine the record and payment dates at which the annual dividend may be paid, and is authorized to abstain from distributing a dividend in its discretion, until the date of the 2017 annual general meeting. The first three quarterly installments, each of $0.69 per share, have been distributed by the Board as expected.

Dividend distributions
Under Swiss corporate law, dividends, including distributions through a reduction in par value (par value reduction), must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. Dividend distributions following Chubb's redomestication to Switzerland have generally been made by way of par value reduction (under the methods approved by our shareholders at our annual general meetings) and had the effect of reducing par value per Common Share each time a dividend was distributed. We may also issue dividends without subjecting them to withholding tax by way of distributions from capital contribution reserves and payment out of free reserves. We employed this method of dividends to effect our dividend increase that was approved by our shareholders on January 10, 2014, and the annual dividends approved in May 2015 and 2016, as noted above.

The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
 
Year Ended December 31
 
 
 
 
2016

 
 
 
2015

 
 
 
2014

 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

Dividends - par value reduction
—

 
$
—

 
0.62

 
$
0.65

 
2.27

 
$
2.46

Dividends - distributed from capital contribution reserves
2.70

 
2.74

 
1.94

 
2.01

 
0.20

 
0.24

Total dividend distributions per common share
2.70

 
$
2.74

 
2.56

 
$
2.66

 
2.47

 
$
2.70



Par value reductions have been reflected as such through Common Shares in the Consolidated statements of shareholders' equity and had the effect of reducing par value per Common Share to CHF 24.15 at December 31, 2016.
b) Shares issued, outstanding, authorized, and conditional
 
Year Ended December 31
 
 
2016

 
2015

 
2014

Shares issued, beginning of year
342,832,412

 
342,832,412

 
342,832,412

Shares issued for Chubb Corp acquisition
136,951,452

 
—

 
—

Common Shares in treasury, end of year (at cost)
(13,815,148
)
 
(18,268,971
)
 
(14,172,726
)
Shares issued and outstanding, end of year
465,968,716

 
324,563,441

 
328,659,686

Common Shares issued to employee trust
 
 
 
 
 
Balance, beginning of year
(5,800
)
 
(9,467
)
 
(9,467
)
Shares redeemed
3,000

 
3,667

 
—

Balance, end of year
(2,800
)
 
(5,800
)
 
(9,467
)


Increases in Common Shares in treasury are due to open market repurchases of Common Shares and the surrender of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock and the forfeiture of unvested restricted stock. Decreases in Common Shares in treasury are principally due to grants of restricted stock, exercises of stock options, and purchases under the Employee Stock Purchase Plan (ESPP).

Common Shares issued to employee trust are issued by Chubb to a rabbi trust for deferred compensation obligations as discussed in Note 11 e) below.

Authorized share capital for general purposes
The Board has shareholder-approved authority as set forth in the Articles of Association to increase for general purposes Chubb's share capital from time to time until May 19, 2018, by the issuance of up to 200,000,000 fully paid up Common Shares, with a par value equal to the par value of Chubb's Common Shares as set forth in the Articles of Association at the time of any such issuance.

Conditional share capital for bonds and similar debt instruments
Chubb's share capital may be increased through the issuance of a maximum of 33,000,000 fully paid up Common Shares (with a par value of CHF 24.15 as of December 31, 2016) through the exercise of conversion and/or option or warrant rights granted in connection with bonds, notes, or similar instruments, issued or to be issued by Chubb, including convertible debt instruments.

Conditional share capital for employee benefit plans
Chubb's share capital may be increased through the issuance of a maximum of 25,410,929 fully paid up Common Shares (with a par value of CHF 24.15 as of December 31, 2016) in connection with the exercise of option rights granted to any employee of Chubb, and any consultant, director, or other person providing services to Chubb.

c) Chubb Limited securities repurchases
From time to time, we repurchase shares as part of our capital management program and to partially offset potential dilution from the exercise of stock options and the granting of restricted stock under share-based compensation plans. Our Board of Directors has authorized share repurchase programs as follows:

•
$2.0 billion of Chubb Common Shares from November 21, 2013 through December 31, 2014
•
$1.5 billion of Chubb Common Shares from January 1, 2015 through December 31, 2015
•
$1.0 billion of Chubb Common Shares from November 17, 2016 through December 31, 2017

Share repurchases may be in the open market, in privately negotiated transactions, block trades, accelerated repurchases and/or through option or other forward transactions.
The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:
 
Year Ended December 31
 
 
January 1, 2017 through

(in millions of U.S. dollars, except share data)
2016

 
2015

 
2014

 
February 24, 2017

Number of shares repurchased
—

 
6,677,663

 
13,982,358

 
419,623

Cost of shares repurchased
$
—

 
$
734

 
$
1,449

 
$
55



At February 24, 2017, $945 million in share repurchase authorization remained through December 31, 2017.

d) General restrictions
The holders of the Common Shares are entitled to receive dividends as approved by the shareholders. Holders of Common Shares are allowed one vote per share provided that, if the controlled shares of any shareholder constitute ten percent or more of the outstanding Common Shares of Chubb, only a fraction of the vote will be allowed so as not to exceed ten percent in aggregate. Entry of acquirers of Common Shares as shareholders with voting rights in the share register may be refused if it would confer voting rights with respect to ten percent or more of the registered share capital recorded in the commercial register.

e) Deferred compensation obligation
Chubb maintains rabbi trusts for deferred compensation plans principally for employees and former directors. The shares issued by Chubb to the rabbi trusts in connection with deferrals of share compensation are classified in shareholders' equity and accounted for at historical cost in a manner similar to Common Shares in treasury. Changes in the fair value of the shares underlying the obligations are recorded in Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets and the related expense or income is recorded in Administrative expenses in the Consolidated statements of operations.

The rabbi trusts also hold other assets, such as fixed maturities, equity securities, and life insurance policies. The assets of the rabbi trusts are consolidated with Chubb's assets in the consolidated balance sheets. Assets held by the trust and the associated obligations are reported at fair value in Other investments and Accounts payable, accrued expenses, and other liabilities, respectively, in the consolidated balance sheets, with changes in fair value reflected as a corresponding increase or decrease to Other (income) expense in the Consolidated statements of operations. However, life insurance policies assets and obligations are reported at cash surrender value.
Share-based compensation
Share-based compensation
Share-based compensation

Chubb has share-based compensation plans which currently provide the Board the ability to grant awards of stock options, restricted stock, and restricted stock units to its employees, consultants, and members of the Board.

In connection with the Chubb Corp acquisition, we assumed outstanding equity awards consisting of service-based restricted stock units, performance-based restricted stock units, and stock options issued by Chubb Corp to employees and directors with a fair value of $525 million, of which $323 million is attributed to purchase consideration for the acquisition. These awards were generally granted with a 3-year vesting period, and the stock options generally have a 10-year term.

In May 2016, our shareholders approved the Chubb Limited 2016 Long-Term Incentive Plan (the 2016 LTIP), which replaced both the ACE Limited 2004 LTIP (the 2004 LTIP) and The Chubb Corporation Long-Term Incentive Plan (2014). The 2016 LTIP is substantially similar to the 2004 LTIP in its operation and the types of awards that may be granted. Under the 2016 LTIP, Common Shares of Chubb were authorized to be issued pursuant to awards made as stock options, stock appreciation rights, performance shares, performance units, restricted stock, and restricted stock units.

Chubb principally issues restricted stock grants and stock options on a graded vesting schedule. Chubb recognizes compensation cost for restricted stock and stock option grants with only service conditions that have a graded vesting schedule on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. We incorporate an estimate of future forfeitures (6.5 percent assumption used for grants made in 2016, 2015, and 2014) in determining compensation cost for both grants of restricted stock and stock options.

Chubb generally grants restricted stock and restricted stock units with a 4-year vesting period, which vest in equal annual installments over the respective vesting period. The restricted stock is granted at market close price on the day of grant. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting.

Under the 2016 LTIP, 19,500,000 Common Shares were authorized to be issued, in addition to any shares that have not been delivered pursuant to the 2004 LTIP and remain available for grant pursuant to the 2004 LTIP, including any shares covered by awards granted under the 2004 LTIP that are forfeited, expire or are canceled after the effective date of the 2016 LTIP without delivery of shares or which result in the forfeiture of the shares back to Chubb. At December 31, 2016, a total of 20,522,230 shares remain available for future issuance under the 2016 LTIP, which includes shares canceled or forfeited from the 2004 LTIP, in addition to common shares that were previously registered and authorized to be issued.

Under the Employee Stock Purchase Plan (ESPP), 4,500,000 shares are authorized to be issued.  At December 31, 2016, a total of 722,751 shares remain available for issuance under the ESPP.

Chubb generally issues Common Shares for the exercise of stock options, restricted stock, and purchases under the ESPP from un-issued reserved shares (conditional share capital) and Common Shares in treasury.

The following table presents pre-tax and after-tax share-based compensation expense:
 
Year Ended December 31
 
(in millions of U.S. dollars)
2016

 
2015

 
2014

Stock options and shares issued under ESPP:
 
 
 
 
 
Pre-tax
$
33

 
$
31

 
$
28

After-tax (1)
$
20

 
$
21

 
$
19

Restricted stock:
 
 
 
 
 
Pre-tax
$
268

 
$
143

 
$
128

After-tax
$
167

 
$
84

 
$
75


(1) 
Excludes windfall tax benefit for share-based compensation recognized as a direct adjustment to Additional paid-in capital of $32 million, $26 million and $28 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Unrecognized compensation expense related to the unvested portion of Chubb's employee share-based awards was $260 million at December 31, 2016, and is expected to be recognized over a weighted-average period of approximately 1 year.

Stock options
Both incentive and non-qualified stock options are principally granted at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term. Stock options vest in equal annual installments over the respective vesting period, which is also the requisite service period.

Chubb's 2016 share-based compensation expense includes a portion of the cost related to the 2013 through 2016 stock option grants. Stock option fair value was estimated on the grant date using the Black-Scholes option-pricing model that uses the weighted-average assumptions noted below:
 
Year Ended December 31
 
 
2016

 
2015

 
2014

Dividend yield
2.3
%
 
2.3
%
 
2.7
%
Expected volatility
23.2
%
 
21.0
%
 
25.2
%
Risk-free interest rate
1.3
%
 
1.7
%
 
1.7
%
Expected life
5.6 years

 
5.8 years

 
5.8 years



The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life (estimated period of time from grant to exercise date) was estimated using the historical exercise behavior of employees. Expected volatility was calculated as a blend of (a) historical volatility based on daily closing prices over a period equal to the expected life assumption, (b) long-term historical volatility based on daily closing prices over the period from Chubb's initial public trading date through the most recent quarter, and (c) implied volatility derived from Chubb's publicly traded options.

The following table presents a roll-forward of Chubb's stock options:
(Intrinsic Value in millions of U.S. dollars)
Number of Options

 
Weighted-Average Exercise Price

 
Weighted-Average Fair Value

 
Total Intrinsic Value

Options outstanding, December 31, 2013
9,496,856

 
$
61.84

 
 
 
 
Granted
1,782,903

 
$
96.77

 
$
18.00

 
 
Exercised
(1,511,948
)
 
$
54.84

 
 
 
$
73

Forfeited
(143,825
)
 
$
84.52

 
 
 
 
Options outstanding, December 31, 2014
9,623,986

 
$
69.06

 
 
 
 
Granted
1,892,641

 
$
114.78

 
$
18.49

 
 
Exercised
(1,457,580
)
 
$
60.88

 
 
 
$
72

Forfeited
(205,551
)
 
$
100.25

 
 
 
 
Options outstanding, December 31, 2015
9,853,496

 
$
78.40

 
 
 
 
Assumed in Chubb Corp Acquisition
339,896

 
$
77.83

 
$
36.07

 
 
Granted
1,929,616

 
$
118.39

 
$
21.52

 
 
Exercised
(1,728,949
)
 
$
66.65

 
 
 
$
99

Forfeited
(213,339
)
 
$
110.01

 
 
 
 
Options outstanding, December 31, 2016
10,180,720

 
$
87.29

 
 
 
$
456

Options exercisable, December 31, 2016
6,562,884

 
$
72.90

 
 
 
$
389



The weighted-average remaining contractual term was 6.1 years for stock options outstanding and 4.7 years for stock options exercisable at December 31, 2016. Cash received from the exercise of stock options for the year ended December 31, 2016 was $112 million.

Restricted stock and restricted stock units
Grants of restricted stock and restricted stock units awarded under both the 2004 LTIP and 2016 LTIP typically have a 4-year vesting period, based on a graded vesting schedule. Chubb grants performance-based restricted stock to certain executives that vest based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth compared to a defined group of peer companies. The performance-based stock awards comprise target awards which have four installments that vest annually based on the performance criteria, and premium awards, which are earned only if tangible book value per share growth over the cumulative 4-year period after the grant of the associated target awards exceeds a higher threshold compared to our peer group. Shares representing target awards are issued when the performance award is approved. They are subject to forfeiture if applicable performance criteria are not met. For awards granted prior to February 2014, shares representing premium awards were not issued at the time the target award was approved. Rather, they were subject to issuance following the 4-year performance period, if and to the extent the premium awards were earned. For awards granted in February 2014 and thereafter, premium awards have been issued subject to vesting if actually earned or forfeited if not earned at the end of the 4-year performance period. Chubb also grants restricted stock awards to non-management directors which vest at the following year's annual general meeting. The restricted stock is granted at market close price on the grant date. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting. Chubb's 2016 share-based compensation expense includes a portion of the cost related to the restricted stock granted in the years 2012 through 2016.

The following table presents a roll-forward of our restricted stock awards. Included in the roll-forward below are 23,812 restricted stock awards, 24,945 restricted stock awards, and 25,339 restricted stock awards that were granted to non-management directors during the years ended December 31, 2016, 2015, and 2014, respectively:
 
Service-based
Restricted Stock Awards and Restricted Stock Units
 
 
Performance-based
Restricted Stock Awards
and Restricted Stock Units
 
 
Number of Shares

 
Weighted-Average Grant-Date Fair Value

 
Number of Shares

 
Weighted-Average Grant-Date Fair Value

Unvested restricted stock, December 31, 2013
4,129,583

 
$
71.85

 
196,497

 
$
71.35

Granted
1,596,245

 
$
97.16

 
374,202

 
$
98.31

Vested
(1,500,949
)
 
$
68.33

 
(192,009
)
 
$
85.39

Forfeited
(387,782
)
 
$
73.21

 
—

 
$
—

Unvested restricted stock, December 31, 2014
3,837,097

 
$
83.60

 
378,690

 
$
90.87

Granted
1,417,965

 
$
114.37

 
326,860

 
$
113.29

Vested
(1,341,358
)
 
$
80.05

 
(110,340
)
 
$
98.70

Forfeited
(424,535
)
 
$
87.36

 
—

 
$
—

Unvested restricted stock, December 31, 2015
3,489,169

 
$
97.01

 
595,210

 
$
101.73

Assumed in Chubb Corp Acquisition
3,706,639

 
$
111.02

 
—

 
$
—

Granted
1,622,065

 
$
118.70

 
517,507

 
$
118.96

Vested
(2,592,622
)
 
$
100.87

 
(181,548
)
 
$
102.43

Forfeited
(420,125
)
 
$
109.42

 
—

 
$
—

Unvested restricted stock, December 31, 2016
5,805,126

 
$
109.39

 
931,169

 
$
111.17



Prior to 2009, legacy ACE granted restricted stock units with a 1-year vesting period to non-management directors. Delivery of Common Shares on account of these restricted stock units to non-management directors is deferred until after the date of the non-management directors' termination from the Board. Legacy Chubb Corp historically allowed directors and certain key employees of Chubb Corp and its subsidiaries to defer a portion of their compensation earned with respect to services performed in the form of deferred stock units. In addition, legacy Chubb Corp provides supplemental retirement benefits for certain employees through its Defined Contribution Excess Benefit Plan in the form of deferred shares of stock. The minimum vesting period under these legacy Chubb Corp deferred plans is 1-year and the maximum is 3-years. Employees and directors had the option to elect to receive their awards at a future specified date or upon their termination of service with Chubb. At December 31, 2016, there were 519,331 deferred restricted stock units.

ESPP
The ESPP gives participating employees the right to purchase Common Shares through payroll deductions during consecutive subscription periods at a purchase price of 85 percent of the fair value of a Common Share on the exercise date (Purchase Price). Annual purchases by participants are limited to the number of whole shares that can be purchased by an amount equal to ten percent of the participant's compensation or $25,000, whichever is less. The ESPP has two six-month subscription periods each year, the first of which runs between January 1 and June 30 and the second of which runs between July 1 and December 31. Legacy Chubb Corp employees were eligible to participant in the ESPP beginning in the July 1 to December 31 subscription period of 2016. The amounts collected from participants during a subscription period are used on the exercise date to purchase full shares of Common Shares. An exercise date is generally the last trading day of a subscription period. The number of shares purchased is equal to the total amount, at the exercise date, collected from the participants through payroll deductions for that subscription period, divided by the Purchase Price, rounded down to the next full share. Participants may withdraw from an offering before the exercise date and obtain a refund of amounts withheld through payroll deductions. Pursuant to the provisions of the ESPP, during the years ended December 31, 2016, 2015, and 2014, employees paid $24 million, $18 million, and $17 million to purchase 211,492 shares, 197,442 shares, and 181,901 shares, respectively.
Postretirement benefits
Postretirement benefits
Postretirement benefits

Chubb provides postretirement benefits to eligible employees and their dependents through various defined contribution plans and defined benefit plans sponsored by Chubb. With the acquisition, Chubb assumed the outstanding pension and other postretirement benefit plan obligations of legacy Chubb Corp, which consisted of several non-contributory defined benefit pension plans covering substantially all its employees, and several other postretirement benefit plans to retired employees. After the acquisition, Chubb also sponsors the defined contribution plans covering legacy Chubb Corp employees.

Defined benefit pension plans
We maintain non-contributory defined benefit pension plans that cover certain employees located in the U.S., U.K., Canada, and various other statutorily required countries. We account for pension benefits using the accrual method. Benefits under these plans are based on employees' years of service and compensation during final years of service. All underlying plans are subject to periodic actuarial valuations by qualified actuarial firms using actuarial models to calculate the expense and liability for each plan. We use December 31 as the measurement date for our defined benefit pension plans.

Under the legacy Chubb Corp plans, prior to 2001, benefits were generally based on an employee’s years of service and average compensation during the last five years of employment. Effective January 1, 2001, the formula for providing pension benefits was changed from the final average pay formula to a cash balance formula. Under the cash balance formula, a notional account is established for each employee, which is credited semi-annually with an amount equal to a percentage of eligible compensation based on age and years of service plus interest based on the account balance. Legacy Chubb Corp employees hired prior to 2001 will generally be eligible to receive vested benefits based on the higher of the final average pay or cash balance formulas.

Other postretirement benefit plans
We also assumed legacy Chubb Corp other postretirement benefit plans, principally healthcare and life insurance, to retired employees, their beneficiaries, and covered dependents. Healthcare coverage is contributory. Retiree contributions vary based upon retiree’s age, type of coverage, and years of service requirements. Life insurance coverage is non-contributory. Chubb funds a portion of the healthcare benefits obligation where such funding can be accomplished on a tax-effective basis. Benefits are paid as covered expenses are incurred.

Amendments to U.S. Qualified and Excess Pension Plans and U.S. Retiree Healthcare Plan
On October 31, 2016, we harmonized and amended several of our U.S. retirement programs to create a unified retirement savings program. In 2020, we will transition from a traditional defined benefit pension program that had been in effect for certain employees to a defined contribution program. Additionally, after 2025, we plan to eliminate a subsidized U.S. retiree healthcare plan that had been in place for certain employees. Both amendments required a remeasurement of the plan assets and benefit obligations with updated assumptions, including discount rates and the expected return on assets. 

The plan amendments and related remeasurement of the obligation at October 31, 2016 resulted in a net decrease to the benefit obligations of $496 million as follows:

•
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. 

Obligations and funded status
The funded status of the pension and other postretirement benefit plans at December 31, 2016 and 2015 was as follows:
 
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
)
 
$
—



The accumulated benefit obligation for the pension benefit plans was $3.8 billion and $559 million at December 31, 2016 and 2015, respectively. The accumulated benefit obligation is the present value of pension benefits earned as of the measurement date based on employee service and compensation prior to that date. It differs from the pension benefit obligation in the table above in that the accumulated benefit obligation includes no assumptions regarding future compensation levels.

The net components of the funded status of the pension and other postretirement benefit plans are included in Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets.

Chubb’s funding policy is to contribute amounts that meet regulatory requirements plus additional amounts determined based on actuarial valuations, market conditions and other factors. All benefit plans satisfy minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA). 

At December 31, 2016, we estimate that we will contribute $27 million to the pension plans in 2017. We do not expect to make any contributions to the other postretirement benefits plan in 2017. The estimate is subject to change due to contribution decisions that are affected by various factors including our liquidity, market performance and management discretion.

As part of purchase accounting, Chubb eliminated legacy Chubb Corp’s postretirement benefit costs not yet recognized in Net income that were recorded in Accumulated other comprehensive income (AOCI) at the time of the acquisition. Net actuarial loss (gain) and prior service cost included in AOCI that were not yet recognized as components of net benefit costs in Net income at December 31, 2016 and 2015 were as follows:
 
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



As part of the acquisition, Chubb conformed the accounting policies for the acquired plans of legacy Chubb Corp to the accounting policies of Chubb, including selecting the applicable discount rates using specific spot rates along a yield curve determined by the projected cash flows assumptions, for which the timing and amount of cash flows correspond with the timing and amount of the estimated benefits payment patterns. This resulted in a lower overall discount rate used to determine the benefit obligation and therefore increased that obligation at the date of the acquisition.

The weighted-average assumptions used to determine the projected benefit obligation were as follows:
 
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
 
 
 
 
 
 
 


The components of net pension and other postretirement benefit costs reflected in Net income and other changes in plan assets and benefit obligations recognized in other comprehensive income were as follows:
 
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
)
 
$
—

 
$
—

 
$
—



The estimated net actuarial loss that will be amortized from AOCI into net periodic benefit costs in Net income for Non-U.S. pension plans during 2017 is $3 million. The estimated net prior service credit that will be amortized from AOCI into net periodic benefit costs in Net income during 2017 for U.S. other postretirement benefit plans is $92 million.

The weighted-average assumptions used to determine the net periodic pension and other postretirement benefit costs were as follows:
 
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
 
 
 
 
 
 
 


The weighted average healthcare cost trend rate assumptions used to measure the expected cost of healthcare benefits were as follows:
 
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


The healthcare cost trend rate assumption has a significant effect on the amount of the accumulated other postretirement benefit obligation and the net other postretirement benefit cost reported. To illustrate, a one percent increase in the trend rate for each year would increase the accumulated other postretirement benefit obligation at December 31, 2016 by approximately $11 million and the aggregate of the service and interest cost components of net other postretirement benefit cost for the year ended December 31, 2016 by approximately $1 million. A one percent decrease in the trend rate for each year would decrease the accumulated other postretirement benefit obligation at December 31, 2016 by approximately $9 million and the aggregate of the service and interest cost components of net other postretirement benefit cost for the year ended December 31, 2016 by approximately $1 million.
Plan Assets
The long term objective of the pension plan is to provide sufficient funding to cover expected benefit obligations, while assuming a prudent level of portfolio risk. The assets of the pension plan are invested, either directly or through pooled funds, in a diversified portfolio of predominately equity securities and fixed maturities. We seek to obtain a rate of return that over time equals or exceeds the returns of the broad markets in which the plan assets are invested. The target allocation of plan assets is 55 percent to 65 percent invested in equity securities, with the remainder primarily invested in fixed maturities. We rebalance our pension assets to the target allocation as market conditions permit. We determined the expected long term rate of return assumption for each asset class based on an analysis of the historical returns and the expectations for future returns. The expected long term rate of return for the portfolio is a weighted aggregation of the expected returns for each asset class.
In order to minimize risk, the Plan maintains a listing of permissible and prohibited investments. In addition, the Plan has certain concentration limits and investment quality requirements imposed on permissible investments options. Investment risk is measured and monitored on an ongoing basis.
The following table presents the fair values of the pension plan assets, by valuation hierarchy. For additional information on how we classify these assets within the valuation hierarchy, refer to Note 4 to the Consolidated financial statements.
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.

We had other postretirement benefit plan assets of $159 million at December 31, 2016, all of which are held in equity securities and categorized as Level 1.

We had pension benefit plan assets of $573 million at December 31, 2015, which are measured at fair value on a recurring basis. The assets comprised primarily Equity securities classified within Level 1 and Equity securities and Foreign and corporate bonds classified within Level 2.

Assets classified within Level 3 were $5 million and nil at December 31, 2016 and 2015, respectively, and the change in the balance during the year ended December 31, 2016 was insignificant.

Benefit payments were $213 million and $29 million for the years ended December 31, 2016 and 2015, respectively. Expected future payments are as follows:
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



Defined contribution plans (including 401(k))
Under these plans, employees' contributions may be supplemented by Chubb matching contributions based on the level of employee contribution. These contributions are invested at the election of each employee in one or more of several investment portfolios offered by a third-party investment advisor. Expenses for these plans totaled $150 million, $117 million, and $119 million for the years ended December 31, 2016, 2015, and 2014, respectively.
Other (income) expense
Other (income) expense
Other (income) expense
 
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
)

(1) Related to (gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
(2) Excludes integration costs related to the Chubb Corp acquisition.

Other (income) expense includes equity in net (income) loss of partially-owned entities, which includes our share of net (income) loss related to partially-owned investment companies (private equity) and partially-owned insurance companies. Also included in Other (income) expense are (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. The offsetting movement in the separate account liabilities is included in Policy benefits in the Consolidated statements of operations. Certain federal excise and capital taxes incurred as a result of capital management initiatives are included in Other (income) expense as these are considered capital transactions and are excluded from underwriting results.
Segment information
Segment information
Segment information

We implemented organizational changes in 2016 that resulted in new business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. In addition, the results of all run-off asbestos and environmental (A&E) exposures, the results of our run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years, and certain other run-off exposures are now presented within Corporate. Prior period amounts of Chubb Limited (i.e., excluding the historical results of Chubb Corp) have been adjusted to conform to the new segment presentation.

•
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.

Corporate primarily includes loss and loss expenses of asbestos and environmental (A&E) run-off liabilities, and the results of our non-insurance companies including Chubb Limited, Chubb Group Management and Holdings Ltd, and Chubb INA Holdings Inc. Our exposure to A&E claims principally arises out of liabilities acquired when we purchased Westchester Specialty in 1998, CIGNA’s P&C business in 1999, and legacy Chubb Corp run-off business in 2016.

In addition, revenue and expenses managed at the corporate level, including realized gains and losses, interest expense, the non-operating income of our partially-owned entities, and income taxes are reported within Corporate. Chubb integration expenses and other merger-related expenses (both included in Chubb integration expenses in the Consolidated statements of operations), and the one-time benefit recorded in 2016 related to the harmonization of our U.S. pension plans, are also reported within Corporate. Chubb integration expenses are one-time costs that are directly attributable to the achievement of the annualized savings, including employee severance, third-party consulting fees, and systems integration expenses. Other merger-related expenses are one-time costs directly attributable to the merger, including rebranding, employee retention costs and other professional and legal fees related to the Chubb Corp acquisition. These items will not be allocated to the segment level as they are one-time in nature and are not related to the ongoing business activities of the segment. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs and they are therefore excluded from our definition of segment income. Therefore, the segment income statement will only include underwriting income, net investment income, and other operating income and expense items such as each segment's share of the operating income (loss) related to partially-owned entities and miscellaneous income and expense items for which the segments are held accountable. Segment income also includes amortization of purchased intangibles related to business combination intangible assets acquired by the segment and other purchase accounting related intangible assets, including agency relationships, renewal rights, and client lists. The amortization of intangible assets purchased as part of the Chubb Corp acquisition is considered a Corporate cost as these are incurred by the overall company. We determined that this definition of segment income is appropriate and aligns with how the business is managed. The prior periods have been adjusted to reflect the new segment income measure. As we progress through the integration and refine our processes, we may continue to further refine our segments and segment income measures.

For segment reporting purposes, certain items have been presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main measure of segment performance. Chubb calculates underwriting income by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate segment income, include net investment income, the operating portion of other (income) expense, and amortization of purchased intangibles. For the North America Agricultural Insurance segment, management includes gains and losses on crop derivatives as a component of underwriting income. For example, for the year ended December 31, 2016, underwriting income in our North America Agricultural Insurance segment was $341 million. This amount includes $5 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) in the Corporate column below.

For the Life Insurance segment, management includes Net investment income and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life Insurance underwriting income. For example, for the year ended December 31, 2016, Life Insurance underwriting income of $282 million includes Net investment income of $283 million and gains from fair value changes in separate account assets of $11 million. The gains from fair value changes in separate account assets are reported in Other (income) expense in the table below.

The following tables present the Statement of Operations by segment:
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


Underwriting assets are reviewed in total by management for purposes of decision-making. Other than Unpaid losses and loss expenses, Reinsurance recoverables, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.

The following table presents net premiums earned for each segment by line of business:
 
 
 
 
 
 
 
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



The following table presents net premiums earned by geographic region. Allocations have been made on the basis of location of risk:

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
%


(1) Europe includes Eurasia and Africa region.
Earnings per share
Earnings per share
Earnings per share
 
Year Ended December 31
 
(in millions of U.S. dollars, except share and per share data)
2016

 
2015

 
2014

Numerator:
 
 
 
 
 
Net income
$
4,135

 
$
2,834

 
$
2,853

Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Weighted-average shares outstanding
462,519,789

 
325,589,361

 
335,609,899

Denominator for diluted earnings per share:
 
 
 
 
 
Share-based compensation plans
3,429,610

 
3,246,017

 
3,376,388

Weighted-average shares outstanding
      and assumed conversions
465,949,399

 
328,835,378

 
338,986,287

Basic earnings per share
$
8.94

 
$
8.71

 
$
8.50

Diluted earnings per share
$
8.87

 
$
8.62

 
$
8.42

Potential anti-dilutive share conversions
1,206,828

 
1,601,668

 
1,024,788



Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective years. Shares outstanding in 2016 included 136,951,452 shares issued in connection with the Chubb Corp acquisition.
Related party transaction
Related party transactions
Related party transactions

Starr Indemnity & Liability Company and its affiliates (collectively, Starr)
We have a number of agency and reinsurance agreements with Starr, the Chairman of which is related to a member of our senior management team. A number of these agreements pre-dated our acquisition of Chubb Corp; however, in connection with our acquisition of Chubb Corp on January 14, 2016, we obtained Chubb Corp’s pre-existing business with Starr, which included agency agreements and agreements in which Chubb Corp was a reinsurer to Starr. Our Board has reviewed and approved our arrangements with Starr.

We have agency, claims services and underwriting services agreements with various Starr subsidiaries. Under the agency agreements, we secure the ability to sell our insurance policies through Starr as one of our non-exclusive agents for writing policies, contracts, binders, or agreements of insurance or reinsurance. Under the claims services agreements, Starr adjusts the claims under policies and arranges for third party treaty and facultative agreements covering such policies. Under the underwriting services agreements, Starr underwrites insurance policies on our behalf and we agree to reinsure such policies to Starr under one or more quota reinsurance agreements. For the years ended December 31, 2016, 2015, and 2014 we generated $658 million, $305 million, and $314 million, respectively, in gross premiums written through these agreements. In addition, we ceded $208 million, $78 million, and $84 million to Starr as part of our reinsurance program on the underlying business for the years ended December 31, 2016, 2015, and 2014, respectively. We paid commissions to Starr of $145 million, $60 million, and $63 million and received commissions from Starr of $56 million, $19 million, and $20 million for the years ended December 31, 2016, 2015, and 2014, respectively, under these agreements. We incurred net Losses and loss expenses of $313 million, $137 million, and $91 million, for the years ended December 31, 2016, 2015, and 2014, respectively, under these agreements. 
Certain agency agreements also contain a profit-sharing arrangement based on loss ratios, triggered if Starr underwrites a minimum of $20 million of annual program business net written premiums on our behalf. No profit share commission has been payable yet under this arrangement. Another agency agreement contains a profit-sharing arrangement based on the earned premiums for the business underwritten by Starr (excluding workers’ compensation) and the reinsurance recoveries associated with excess of loss reinsurance agreements placed by Starr for the business underwritten. No profit share commission under this arrangement has been payable yet.
Reinsurance recoverable on losses and loss expenses due from Starr was $412 million and $112 million as of December 31, 2016 and 2015, respectively, and the amount of ceded reinsurance premium payable included in Insurance and reinsurance balances payable in the consolidated balance sheet was $72 million and $18 million, respectively.
The Chubb Charitable Foundation – Bermuda
The Chubb Charitable Foundation is an unconsolidated not-for-profit organization whose primary purpose is to fund charitable causes in Bermuda. The Trustees are principally Chubb management. Chubb maintains a non-interest bearing demand note receivable from the Chubb Charitable Foundation – Bermuda (Borrower), the balance of which was $23 million and $24 million at December 31, 2016 and 2015, respectively. The receivable is included in Other assets in the consolidated balance sheets. The Borrower has used the related proceeds to finance investments in Bermuda real estate, some of which have been rented to Chubb employees at rates established by independent, professional real estate appraisers. The Borrower uses income from the investments to both repay the note and to fund charitable activities. Accordingly, we report the demand note at the lower of its principal value or the fair value of assets held by the Borrower to repay the loan, including the real estate properties.

ABR Re
ABR Re is a variable interest entity of which we own 11.3 percent; however, Chubb is not the primary beneficiary and does not consolidate ABR Re because Chubb does not have the power to control and direct ABR Re’s most significant activities, including investing and underwriting. Our minority ownership interest is accounted for under the equity method of accounting. Chubb cedes premiums to ABR Re and recognizes the associated commissions. Refer to Note 3 e) for additional information on the results of operations related to ABR Re.
Statutory Financial Information
Statutory financial information
Statutory financial information

Our subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by insurance regulators. Statutory accounting differs from GAAP in the reporting of certain reinsurance contracts, investments, subsidiaries, acquisition expenses, fixed assets, deferred income taxes, and certain other items. Some jurisdictions impose complex regulatory requirements on insurance companies while other jurisdictions impose fewer requirements. In some jurisdictions, we must obtain licenses issued by governmental authorities to conduct local insurance business. These licenses may be subject to reserves and minimum capital and solvency tests. Jurisdictions may impose fines, censure, and/or criminal sanctions for violation of regulatory requirements. The 2016 amounts below are based on estimates.

Chubb's insurance and reinsurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate. These regulations include restrictions that limit the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the local insurance regulatory authorities. The amount of dividends available to be paid in 2017 without prior approval totals $3.7 billion.

The statutory capital and surplus of our insurance subsidiaries met regulatory requirements for 2016, 2015, and 2014. The minimum amounts of statutory capital and surplus necessary to satisfy regulatory requirements was $22.8 billion and $14.5 billion for December 31, 2016 and 2015, respectively. These minimum regulatory capital requirements were significantly lower than the corresponding amounts required by the rating agencies which review Chubb’s insurance and reinsurance subsidiaries.

The following tables present the combined statutory capital and surplus and statutory net income (loss) of our Property and casualty and Life subsidiaries:
 
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
)


Several insurance subsidiaries follow accounting practices prescribed or permitted by the jurisdiction of domicile that differ from the applicable local statutory practice. The application of prescribed or permitted accounting practices does not have a material impact on Chubb's statutory surplus and income. As prescribed by the Restructuring discussed previously in Note 7, certain of our U.S. subsidiaries discount certain A&E liabilities, which increased statutory capital and surplus by approximately $155 million and $144 million at December 31, 2016 and 2015, respectively.
Federal Insurance Company (Federal), a direct subsidiary of Chubb INA Holdings Inc., has a permitted practice granted by the Indiana Department of Insurance that relates to its investments in foreign subsidiaries and affiliates. Under Statement of Statutory Accounting Principles No. 97, Investments in Subsidiary, Controlled and Affiliated Entities, A Replacement of SSAP No. 88, in order for a reporting entity to admit its investments in foreign subsidiaries and affiliates, audited financial statements of the subsidiary or affiliate must be obtained to support the carrying value. Such financial statements must be prepared in accordance with U.S. GAAP, or alternatively, in accordance with the local statutory requirements in the subsidiary’s or affiliate’s country of domicile, with an audited footnote reconciliation of net income and shareholder’s equity as reported to a U.S. GAAP basis. With the explicit permission of the Indiana Department of Insurance, Federal obtains audited financial statements for its admitted foreign subsidiaries and affiliates, which had an aggregate carrying value of $308 million at December 31, 2016 prepared in accordance with their respective local statutory requirements and supplemented with a separate unaudited reconciliation of shareholder’s equity as reported to a U.S. GAAP basis.
Information provided in connection with outstanding debt of subsidiaries
Information provided in connection with outstanding debt of subsidiaries
Information provided in connection with outstanding debt of subsidiaries

In connection with the Chubb Corp acquisition, Chubb INA Holdings Inc. entered into a series of intercompany loans totaling $10 billion involving its parents, Chubb Group Holdings Inc. and Chubb Limited. The weighted-average interest rate is 3.3 percent with fixed interest rates ranging from 2.3 percent to 4.35 percent and various maturity dates from 2021 to 2046. As part of the acquisition, Chubb INA Holdings Inc. assumed $3.3 billion par value outstanding debt of Chubb Corp, fair valued at $3.8 billion at the acquisition date. Chubb INA Holdings Inc. assumed Chubb Corp's rights, duties and obligations and Chubb Limited fully and unconditionally guarantees Chubb INA Holding Inc.'s payment obligations under these debts.

The following tables present condensed consolidating financial information at December 31, 2016 and December 31, 2015, and for the years ended December 31, 2016, 2015, and 2014 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). The transactions noted above are reflected in the tables below. The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Parent Guarantor and Subsidiary Issuer are presented on the equity method of accounting. The revenues and expenses and cash flows of the subsidiaries of the Subsidiary Issuer are presented in the Other Chubb Limited Subsidiaries column on a combined basis.

Condensed Consolidating Balance Sheet at December 31, 2016
(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


(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, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Balance Sheet at December 31, 2015
(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.














Condensed Consolidating Statements of Operations and Comprehensive Income
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


Condensed Consolidating Statements of Operations and Comprehensive Income
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






Condensed Consolidating Statements of Operations and Comprehensive Income
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




Condensed Consolidating Statement of Cash Flows 
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.
Condensed Consolidating Statement of Cash Flows
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.
Condensed Consolidating Statement of Cash Flows
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.
Condensed Unaudited Quarterly Financial Data
Condensed unaudited quarterly financial data
Condensed unaudited quarterly financial data
 
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

Schedule I
Schedule I: SUMMARY OF INVESTEMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES
SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES
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

Schedule II
Schedule II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS (Parent Company Only)
 
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.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF OPERATIONS (Parent Company Only)
 
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.


CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF CASH FLOWS (Parent Company Only)
 
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.
Schedule IV
SUPPLEMENTAL INFORMATION CONCERNING REINSURANCE
SUPPLEMENTAL INFORMATION CONCERNING REINSURANCE
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
%
Schedule VI
SUPPLEMENTARY INFORMATION CONCERNING PROPERTY AND CASUALTY OPERATIONS
SUPPLEMENTARY INFORMATION CONCERNING PROPERTY AND CASUALTY OPERATIONS
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

(1) 2016 includes $1,559 million of amortization of the Unearned Premium Reserve (UPR) intangible asset established in connection with the Chubb Corp acquisition. This UPR intangible asset was amortized through Policy acquisition costs in the Consolidated statement of operations.
Summary of significant accounting policies (Policies)
Basis of presentation 
Basis of presentation
On January 14, 2016, we completed the acquisition of The Chubb Corporation (Chubb Corp), creating a global leader in property and casualty (P&C) insurance. We have changed our name from ACE Limited to Chubb Limited and plan to adopt the Chubb name globally, although some subsidiaries may continue to use ACE as a part of their name.

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Effective the first quarter of 2016, our results are reported through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. This reflects our significantly larger and expanded operations subsequent to our acquisition of Chubb Corp. We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of our run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years, and certain run-off exposures. Prior period amounts of Chubb Limited (i.e., excluding the historical results of Chubb Corp) contained in this report have been adjusted to conform to the new segment presentation. The results of operations and cash flows of Chubb Corp are included from the acquisition date forward (i.e., after January 14, 2016). Refer to Note 15 for additional information.

The accompanying consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Amounts included in the Consolidated financial statements reflect our best estimates and assumptions; actual amounts could differ materially from these estimates. Chubb's principal estimates include:
•
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.
Premiums 
Premiums
Premiums are generally recorded as written upon inception of the policy. For multi-year policies for which premiums written are payable in annual installments, only the current annual premium is included as written at policy inception due to the ability of the insured/reinsured to commute or cancel coverage within the policy term. The remaining annual premiums are recorded as written at each successive anniversary date within the multi-year term.

For P&C insurance and reinsurance products, premiums written are primarily earned on a pro-rata basis over the policy terms to which they relate. Unearned premiums represent the portion of premiums written applicable to the unexpired portion of the policies in force. For retrospectively-rated policies, written premiums are adjusted to reflect expected ultimate premiums consistent with changes to incurred losses, or other measures of exposure as stated in the policy, and earned over the policy coverage period. For retrospectively-rated multi-year policies, premiums recognized in the current period are computed, using a with-and-without method, as the difference between the ceding enterprise's total contract costs before and after the experience under the contract at the reporting date. Accordingly, for retrospectively-rated multi-year policies, additional premiums are generally written and earned when losses are incurred.

Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. All remaining unearned premiums are recognized over the remaining coverage period. 

Premiums from long-duration contracts such as certain traditional term life, whole life, endowment, and long-duration personal accident and health (A&H) policies are generally recognized as revenue when due from policyholders. Traditional life policies include those contracts with fixed and guaranteed premiums and benefits. Benefits and expenses are matched with income to result in the recognition of profit over the life of the contracts.

Retroactive loss portfolio transfer (LPT) contracts in which the insured loss events occurred prior to contract inception are evaluated to determine whether they meet criteria for reinsurance accounting. If reinsurance accounting is appropriate, written premiums are fully earned and corresponding losses and loss expenses recognized at contract inception. These contracts can cause significant variances in gross premiums written, net premiums written, net premiums earned, and net incurred losses in the years in which they are written. Reinsurance contracts sold not meeting criteria for reinsurance accounting are recorded using the deposit method as described below in Note 1 k).

Reinsurance premiums assumed are based on information provided by ceding companies supplemented by our own estimates of premium when we have not received ceding company reports. Estimates are reviewed and adjustments are recorded in the period in which they are determined. Premiums are earned over the coverage terms of the related reinsurance contracts and range from one to three years.
Deferred policy acquisition costs and value of business acquired 
Deferred policy acquisition costs and value of business acquired
Policy acquisition costs consist of commissions (direct and ceded), premium taxes, and certain underwriting costs related directly to the successful acquisition of new or renewal insurance contracts. A VOBA intangible asset is established upon the acquisition of blocks of long-duration contracts in a business combination and represents the present value of estimated net cash flows for the contracts in force at the acquisition date. Acquisition costs and VOBA, collectively policy acquisition costs, are deferred and amortized. Amortization is recorded in Policy acquisition costs in the Consolidated statements of operations. Policy acquisition costs on P&C contracts are generally amortized ratably over the period in which premiums are earned. Policy acquisition costs on traditional long-duration contracts are amortized over the estimated life of the contracts, generally in proportion to premium revenue recognized based upon the same assumptions used in estimating the liability for future policy benefits. For non-traditional long-duration contracts, we amortize policy acquisition costs over the expected life of the contracts in proportion to expected gross profits. The effect of changes in estimates of expected gross profits is reflected in the period the estimates are revised. Policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable policy acquisition costs are expensed in the period identified.

Advertising costs are expensed as incurred except for direct-response campaigns that qualify for cost deferral, principally related to long-duration A&H business produced by the Overseas General Insurance segment, which are deferred and recognized as a component of Policy acquisition costs. For individual direct-response marketing campaigns that we can demonstrate have specifically resulted in incremental sales to customers and such sales have probable future economic benefits, incremental costs directly related to the marketing campaigns are capitalized as Deferred policy acquisition costs. Deferred policy acquisition costs, including deferred marketing costs, are reviewed regularly for recoverability from future income, including investment income, and amortized in proportion to premium revenue recognized, primarily over a ten-year period, the expected economic future benefit period based upon the same assumptions used in estimating the liability for future policy benefits. The expected future benefit period is evaluated periodically based on historical results and adjusted prospectively. The amount of deferred marketing costs reported in Deferred policy acquisition costs in the Consolidated balance sheets was $256 million and $250 million at December 31, 2016 and 2015, respectively. Amortization expense for deferred marketing costs was $92 million, $78 million, and $99 million for the years ended December 31, 2016, 2015, and 2014, respectively.
Reinsurance 
Reinsurance
Chubb assumes and cedes reinsurance with other insurance companies to provide greater diversification of business and minimize the net loss potential arising from large risks. Ceded reinsurance contracts do not relieve Chubb of its primary obligation to policyholders.

For both ceded and assumed reinsurance, risk transfer requirements must be met in order to account for a contract as reinsurance, principally resulting in the recognition of cash flows under the contract as premiums and losses. To meet risk transfer requirements, a reinsurance contract must include insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. To assess risk transfer for certain contracts, Chubb generally develops expected discounted cash flow analyses at contract inception. Deposit accounting is used for contracts that do not meet risk transfer requirements. Deposit accounting requires that consideration received or paid be recorded in the balance sheet as opposed to recording premiums written or losses incurred in the statement of operations. Non-refundable fees on deposit contracts are earned based on the terms of the contract described below in Note 1 k).

Reinsurance recoverable includes balances due from reinsurance companies for paid and unpaid losses and loss expenses and policy benefits that will be recovered from reinsurers, based on contracts in force. The method for determining the reinsurance recoverable on unpaid losses and loss expenses incurred but not reported (IBNR) involves actuarial estimates consistent with those used to establish the associated liability for unpaid losses and loss expenses as well as a determination of Chubb's ability to cede unpaid losses and loss expenses under the terms of the reinsurance agreement.

Reinsurance recoverable is presented net of a provision for uncollectible reinsurance determined based upon a review of the financial condition of reinsurers and other factors. The provision for uncollectible reinsurance is based on an estimate of the reinsurance recoverable balance that will ultimately be unrecoverable due to reinsurer insolvency, a contractual dispute, or any other reason. The valuation of this provision includes several judgments including certain aspects of the allocation of reinsurance recoverable on IBNR claims by reinsurer and a default analysis to estimate uncollectible reinsurance. The primary components of the default analysis are reinsurance recoverable balances by reinsurer, net of collateral, and default factors used to determine the portion of a reinsurer's balance deemed uncollectible. The definition of collateral for this purpose requires some judgment and is generally limited to assets held in a Chubb-only beneficiary trust, letters of credit, and liabilities held with the same legal entity for which Chubb believes there is a contractual right of offset. The determination of the default factor is principally based on the financial strength rating of the reinsurer. Default factors require considerable judgment and are determined using the current financial strength rating, or rating equivalent, of each reinsurer as well as other key considerations and assumptions. The more significant considerations include, but are not necessarily limited to, the following:
•
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.

The methods used to determine the reinsurance recoverable balance and related provision for uncollectible reinsurance are regularly reviewed and updated, and any resulting adjustments are reflected in earnings in the period identified.

Prepaid reinsurance premiums represent the portion of premiums ceded to reinsurers applicable to the unexpired coverage terms of the reinsurance contracts in-force.

The value of reinsurance business assumed of $20 million and $21 million at December 31, 2016 and 2015, respectively, included in Other assets in the accompanying Consolidated balance sheets, represents the excess of estimated ultimate value of the liabilities assumed under retroactive reinsurance contracts over consideration received. The value of reinsurance business assumed is amortized and recorded to Losses and loss expenses based on the payment pattern of the losses assumed and ranges between 9 and 40 years. The unamortized value is reviewed regularly to determine if it is recoverable based upon the terms of the contract, estimated losses and loss expenses, and anticipated investment income. Unrecoverable amounts are expensed in the period identified.
Investments 
Investments
Fixed maturities are classified as either available for sale or held to maturity. The available for sale portfolio is reported at fair value. The held to maturity portfolio includes securities for which we have the ability and intent to hold to maturity or redemption and is reported at amortized cost. Equity securities are classified as available for sale and are recorded at fair value. Short-term investments comprise securities due to mature within one year of the date of purchase and are recorded at fair value which typically approximates cost. Short-term investments include certain cash and cash equivalents, which are part of investment portfolios under the management of external investment managers.

Other investments principally comprise life insurance policies, policy loans, trading securities, other direct equity investments, investment funds, and limited partnerships.
•
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.

Investments in partially-owned insurance companies primarily represent direct investments in which Chubb has significant influence and, as such, meet the requirements for equity accounting. We report our share of the net income or loss of the partially-owned insurance companies in Other (income) expense.

Realized gains or losses on sales of investments are determined on a first-in, first-out basis. Unrealized appreciation (depreciation) on investments is included as a separate component of AOCI in Shareholders' equity. We regularly review our investments for OTTI. Refer to Note 3 for additional information.

With respect to securities where the decline in value is determined to be temporary and the security's value is not written down, a subsequent decision may be made to sell that security and realize a loss. Subsequent decisions on security sales are the result of changing or unforeseen facts and circumstances (i.e., arising from a large insured loss such as a catastrophe), deterioration of the creditworthiness of the issuer or its industry, or changes in regulatory requirements. We believe that subsequent decisions to sell such securities are consistent with the classification of the majority of the portfolio as available for sale.

We use derivative instruments including futures, options, swaps, and foreign currency forward contracts for the purpose of managing certain investment portfolio risks and exposures. Refer to Note 10 for additional information. Derivatives are reported at fair value and are recorded in the accompanying Consolidated balance sheets in either Accounts payable, accrued expenses, and other liabilities or Other assets with changes in fair value included in Net realized gains (losses) in the Consolidated statements of operations. Collateral held by brokers equal to a percentage of the total value of open futures contracts is included in the investment portfolio.

Net investment income includes interest and dividend income and amortization of fixed maturity market premiums and discounts and is net of investment management and custody fees. In addition, net investment income includes the amortization of the fair value adjustment related to the acquired invested assets of Chubb Corp. An adjustment of $1,652 million related to the fair value of Chubb Corp’s fixed maturities securities was recorded (fair value adjustment) at the date of acquisition. At December 31, 2016, the remaining balance of this fair value adjustment was $1,226 million which is expected to amortize over the next four years; however, the estimate could vary materially based on current market conditions, bond calls, and the duration of the acquired investment portfolio. In addition, sales of these acquired fixed maturities would also reduce the fair value adjustment balance. For mortgage-backed securities, and any other holdings for which there is a prepayment risk, prepayment assumptions are evaluated and revised as necessary. Any adjustments required due to the resultant change in effective yields and maturities are recognized prospectively. Prepayment fees or call premiums that are only payable when a security is called prior to its maturity are earned when received and reflected in Net investment income. 

Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. Borrowers provide collateral, in the form of either cash or approved securities, of 102 percent of the fair value of the loaned securities. Each security loan is deemed to be an overnight transaction. Cash collateral is invested in a collateral pool which is managed by the banking institution. The collateral pool is subject to written investment guidelines with key objectives which include the safeguard of principal and adequate liquidity to meet anticipated redemptions. The fair value of the loaned securities is monitored on a daily basis, with additional collateral obtained or refunded as the fair value of the loaned securities changes. The collateral is held by the third-party banking institution, and the collateral can only be accessed in the event that the institution borrowing the securities is in default under the lending agreement. As a result of these restrictions, we consider our securities lending activities to be non-cash investing and financing activities. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The fair value of the securities on loan is included in fixed maturities and equity securities. The securities lending collateral is reported as a separate line in the Consolidated balance sheets with a related liability reflecting our obligation to return the collateral plus interest.

Similar to securities lending arrangements, securities sold under repurchase agreements, whereby Chubb sells securities and repurchases them at a future date for a predetermined price, are accounted for as collateralized investments and borrowings and are recorded at the contractual repurchase amounts plus accrued interest. Assets to be repurchased are the same, or substantially the same, as the assets transferred and the transferor, through right of substitution, maintains the right and ability to redeem the collateral on short notice. The fair value of the underlying securities is included in fixed maturities and equity securities. In contrast to securities lending programs, the use of cash received is not restricted. We report the obligation to return the cash as Repurchase agreements in the Consolidated balance sheets.

Refer to Note 4 for a discussion on the determination of fair value for Chubb's various investment securities.
Cash 
Cash
Cash includes cash on hand and deposits with an original maturity of three months or less at time of purchase. Cash held by external money managers is included in Short-term investments.

We have agreements with a third-party bank provider which implemented two international multi-currency notional cash pooling programs. In each program, participating Chubb entities establish deposit accounts in different currencies with the bank provider and each day the credit or debit balances in every account are notionally translated into a single currency (U.S. dollars) and then notionally pooled. The bank extends overdraft credit to any participating Chubb entity as needed, provided that the overall notionally-pooled balance of all accounts in each pool at the end of each day is at least zero. Actual cash balances are not physically converted and are not commingled between legal entities. Any overdraft balances incurred under this program by a Chubb entity would be guaranteed by Chubb Limited (up to $300 million in the aggregate). Our syndicated letter of credit facility allows for same day drawings to fund a net pool overdraft should participating Chubb entities overdraw contributed funds from the pool.
Goodwill and other intangible assets 
Goodwill and Other intangible assets
Goodwill represents the excess of the cost of acquisitions over the fair value of net assets acquired and is not amortized. Goodwill is assigned at acquisition to the applicable reporting unit of the acquired entities giving rise to the goodwill. Goodwill impairment tests are performed annually or more frequently if circumstances indicate a possible impairment. For goodwill impairment testing, we use a qualitative assessment to determine whether it is more likely than not (i.e., more than a 50 percent probability) that the fair value of a reporting unit is greater than its carrying amount. If our assessment indicates less than a 50 percent probability that fair value exceeds carrying value, we quantitatively estimate a reporting unit's fair value. Goodwill recorded in connection with investments in partially-owned insurance companies is recorded in Investments in partially-owned insurance companies and is also measured for impairment annually.

Indefinite lived intangible assets are not subject to amortization. Finite lived intangible assets are amortized over their useful lives, generally ranging from 1 to 30 years. Intangible assets are regularly reviewed for indicators of impairment. Impairment is recognized if the carrying amount is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and fair value.
Unpaid losses and loss expenses 
Unpaid losses and loss expenses
A liability is established for the estimated unpaid losses and loss expenses under the terms of, and with respect to, Chubb's policies and agreements. Similar to premiums that are recognized as revenues over the coverage period of the policy, a liability for unpaid losses and loss expenses is recognized as expense when insured events occur over the coverage period of the policy. This liability includes a provision for both reported claims (case reserves) and incurred but not reported claims (IBNR reserves). IBNR reserve estimates are generally calculated by first projecting the ultimate cost of all losses that have occurred (expected losses), and then subtracting paid losses, case reserves, and loss expenses. The methods of determining such estimates and establishing the resulting liability are reviewed regularly and any adjustments are reflected in operations in the period in which they become known. Future developments may result in losses and loss expenses materially greater or less than recorded amounts.

Except for net loss and loss expense reserves of $38 million net of discount, held at December 31, 2016, representing certain structured settlements for which the timing and amount of future claim payments are reliably determinable and $50 million, net of discount, of certain reserves for unsettled claims that are discounted in statutory filings, Chubb does not discount its P&C loss reserves. This compares with reserves of $42 million for certain structured settlements and $50 million of certain reserves for unsettled claims at December 31, 2015. Structured settlements represent contracts purchased from life insurance companies primarily to settle workers' compensation claims, where payments to the claimant by the life insurance company are expected to be made in the form of an annuity. Chubb retains the liability to the claimant in the event that the life insurance company fails to pay. At December 31, 2016, the liability due to claimants was $595 million, net of discount, and reinsurance recoverables due from the life insurance companies was $557 million, net of discount. For structured settlement contracts where payments are guaranteed regardless of claimant life expectancy, the amounts recoverable from the life insurance companies at December 31, 2016 are included in Other assets in the Consolidated balance sheets, as they do not meet the requirements for reinsurance accounting.

Included in Unpaid losses and loss expenses are liabilities for asbestos and environmental (A&E) claims and expenses. These unpaid losses and loss expenses are principally related to claims arising from remediation costs associated with hazardous waste sites and bodily-injury claims related to asbestos products and environmental hazards. The estimation of these liabilities is particularly sensitive to changes in the legal environment including specific settlements that may be used as precedents to settle future claims. However, Chubb does not anticipate future changes in laws and regulations in setting its A&E reserve levels.

Also included in Unpaid losses and loss expenses is an adjustment of $715 million related to Chubb Corp to adjust the carrying value of Chubb Corp’s historical unpaid losses and loss expenses to fair value at the acquisition date. The estimated fair value consists of the present value of the expected net unpaid loss and loss adjustment expense payments adjusted for an estimated risk margin. The estimated cash flows are discounted at a risk free rate. The estimated risk margin varies based on the inherent risks associated with each type of reserve. The fair value is amortized through Amortization of purchased intangibles on the consolidated statements of operations over a range of 5 to 17 years, based on the estimated payout patterns of unpaid loss and loss expenses at the acquisition date. At December 31, 2016, the remaining balance of the fair value adjustment is $470 million.

Prior period development arises from changes to loss estimates recognized in the current year that relate to loss reserves first reported in previous calendar years and excludes the effect of losses from the development of earned premiums from previous accident years.

For purposes of analysis and disclosure, management views prior period development to be changes in the nominal value of loss estimates from period to period, net of premium and profit commission adjustments on loss sensitive contracts. Prior period development generally excludes changes in loss estimates that do not arise from the emergence of claims, such as those related to uncollectible reinsurance, interest, unallocated loss adjustment expenses, or foreign currency. Accordingly, specific items excluded from prior period development include the following: gains/losses related to foreign currency remeasurement; losses recognized from the early termination or commutation of reinsurance agreements that principally relate to the time value of money; changes in the value of reinsurance business assumed reflected in losses incurred but principally related to the time value of money; and losses that arise from changes in estimates of earned premiums from prior accident years. Except for foreign currency remeasurement, which is included in Net realized gains (losses), these items are included in current year losses.
Future policy benefits 
Future policy benefits
The valuation of long-duration contract reserves requires management to make estimates and assumptions regarding expenses, mortality, persistency, and investment yields. Estimates are primarily based on historical experience and information provided by ceding companies and include a margin for adverse deviation. Interest rates used in calculating reserves range from less than 1.0 percent to 8.0 percent and less than 1.0 percent to 7.2 percent at December 31, 2016 and 2015, respectively. Actual results could differ materially from these estimates. Management monitors actual experience and where circumstances warrant, will revise assumptions and the related reserve estimates. Revisions are recorded in the period they are determined.

Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP. These assets are classified as trading securities and reported in Other investments and the offsetting liabilities are reported in Future policy benefits in the Consolidated balance sheets. Changes in the fair value of separate account assets that do not qualify for separate account reporting under GAAP are reported in Other income (expense) and the offsetting movements in the liabilities are included in Policy benefits in the Consolidated statements of operations.
Assumed reinsurance programs involving minimum benefit guarantees under annuity contracts 
Assumed reinsurance programs involving minimum benefit guarantees under variable annuity contracts
Chubb reinsures various death and living benefit guarantees associated with variable annuities issued primarily in the United States and Japan. We generally receive a monthly premium during the accumulation phase of the covered annuities (in-force) based on a percentage of either the underlying accumulated account values or the underlying accumulated guaranteed values. Depending on an annuitant's age, the accumulation phase can last many years. To limit our exposure under these programs, all reinsurance treaties include annual or aggregate claim limits and many include an aggregate deductible.

The guarantees which are payable on death, referred to as guaranteed minimum death benefits (GMDB), principally cover shortfalls between accumulated account value at the time of an annuitant's death and either i) an annuitant's total deposits; ii) an annuitant's total deposits plus a minimum annual return; or iii) the highest accumulated account value attained at any policy anniversary date. In addition, a death benefit may be based on a formula specified in the variable annuity contract that uses a percentage of the growth of the underlying contract value. Liabilities for GMDBs are based on cumulative assessments or premiums to date multiplied by a benefit ratio that is determined by estimating the present value of benefit payments and related adjustment expenses divided by the present value of cumulative assessment or expected premiums during the contract period.  

Under reinsurance programs covering GLBs, we assume the risk of guaranteed minimum income benefits (GMIB) and guaranteed minimum accumulation benefits (GMAB) associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder's account value is less than a guaranteed minimum value. Our GLB reinsurance products meet the definition of a derivative for accounting purposes and is carried at fair value with changes in fair value recognized in income. Refer to Notes 5 c) and 10 a) for additional information.
Deposit assets and liabilities 
Deposit assets and liabilities
Deposit assets arise from ceded reinsurance contracts purchased that do not transfer significant underwriting or timing risk. Deposit liabilities include reinsurance deposit liabilities and contract holder deposit funds. The reinsurance deposit liabilities arise from contracts sold for which there is not a significant transfer of risk. Contract holder deposit funds represent a liability for investment contracts sold that do not meet the definition of an insurance contract, and certain of these contracts are sold with a guaranteed rate of return. Under deposit accounting, consideration received or paid is recorded as a deposit asset or liability in the balance sheet as opposed to recording premiums and losses in the statement of operations.

Interest income on deposit assets, representing the consideration received or to be received in excess of cash payments related to the deposit contract, is earned based on an effective yield calculation. The calculation of the effective yield is based on the amount and timing of actual cash flows at the balance sheet date and the estimated amount and timing of future cash flows. The effective yield is recalculated periodically to reflect revised estimates of cash flows. When a change in the actual or estimated cash flows occurs, the resulting change to the carrying amount of the deposit asset is reported as income or expense. Deposit assets of $93 million and $86 million at December 31, 2016 and 2015, respectively, are reflected in Other assets in the Consolidated balance sheets and the accretion of deposit assets related to interest pursuant to the effective yield calculation is reflected in Net investment income in the Consolidated statements of operations.

Deposit liabilities include reinsurance deposit liabilities of $108 million and $110 million and contract holder deposit funds of $1.5 billion and $1.1 billion at December 31, 2016 and 2015, respectively. Deposit liabilities are reflected in Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets. At contract inception, the deposit liability equals net cash received. An accretion rate is established based on actuarial estimates whereby the deposit liability is increased to the estimated amount payable over the contract term. The deposit accretion rate is the rate of return required to fund expected future payment obligations. We periodically reassess the estimated ultimate liability and related expected rate of return. Changes to the deposit liability are generally reflected through Interest expense to reflect the cumulative effect of the period the contract has been in force, and by an adjustment to the future accretion rate of the liability over the remaining estimated contract term.

The liability for contract holder deposit funds equals accumulated policy account values, which consist of the deposit payments plus credited interest less withdrawals and amounts assessed through the end of the period.
Foreign currency remeasurement and translation 
Foreign currency remeasurement and translation
The functional currency for each of our foreign operations is generally the currency of the local operating environment. Transactions in currencies other than a foreign operation's functional currency are remeasured into the functional currency and the resulting foreign exchange gains and losses are reflected in Net realized gains (losses) in the Consolidated statements of operations. Functional currency assets and liabilities are translated into the reporting currency, U.S. dollars, using period end exchange rates and the related translation adjustments are recorded as a separate component of AOCI. Functional statement of operations amounts expressed in functional currencies are translated using average exchange rates.
Administrative expenses 
Administrative expenses
Administrative expenses generally include all operating costs other than policy acquisition costs. The North America Commercial P&C Insurance segment manages and uses an in-house third-party claims administrator, ESIS Inc. (ESIS). ESIS performs claims management and risk control services for domestic and international organizations that self-insure P&C exposures as well as internal P&C exposures. The net operating results of ESIS are included within Administrative expenses in the Consolidated statements of operations and were $32 million, $30 million, and $27 million for the years ended December 31, 2016, 2015, and 2014, respectively.
Income taxes 
Income taxes
Income taxes have been recorded related to those operations subject to income taxes. Deferred tax assets and liabilities result from temporary differences between the amounts recorded in the Consolidated financial statements and the tax basis of our assets and liabilities. Refer to Note 8 for additional information. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. The valuation allowance assessment considers tax planning strategies, where applicable.

We recognize uncertain tax positions deemed more likely than not of being sustained upon examination. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
Earnings per share 
Earnings per share
Basic earnings per share is calculated using the weighted-average shares outstanding including participating securities with non-forfeitable rights to dividends such as unvested restricted stock. All potentially dilutive securities including stock options are excluded from the basic earnings per share calculation. In calculating diluted earnings per share, the weighted-average shares outstanding is increased to include all potentially dilutive securities. Basic and diluted earnings per share are calculated by dividing net income by the applicable weighted-average number of shares outstanding during the year.
Cash flow information 
Cash flow information
Premiums received and losses paid associated with the GLB reinsurance products, which as discussed previously meet the definition of a derivative instrument for accounting purposes, are included within Cash flows from operating activities. Cash flows, such as settlements and collateral requirements, associated with GLB and all other derivative instruments are included on a net basis within Cash flows from investing activities. Purchases, sales, and maturities of short-term investments are recorded on a net basis within Cash flows from investing activities.

Derivatives 
Derivatives
Chubb recognizes all derivatives at fair value in the Consolidated balance sheets and participates in derivative instruments in two principal ways:

(i) To sell protection to customers as an insurance or reinsurance contract that meets the definition of a derivative for accounting purposes. For 2016 and 2015, the reinsurance of GLBs was our primary product falling into this category; and
(ii) To mitigate financial risks, principally arising from investment holdings, products sold, or assets and liabilities held in foreign currencies. For these instruments, changes in assets or liabilities measured at fair value are recorded as realized gains or losses in the Consolidated statements of operations.

We did not designate any derivatives as accounting hedges during 2016, 2015, or 2014.
Share-based compensation 
Share-based compensation
Chubb measures and records compensation cost for all share-based payment awards at grant-date fair value. Compensation costs are recognized for share-based payment awards with only service conditions that have graded vesting schedules on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. Refer to Note 12 for additional information.
Chubb integration expenses 
Chubb integration expenses
Direct costs related to the Chubb Corp acquisition are expensed as incurred. Chubb integration expenses were $492 million for the year ended December 31, 2016, and include all internal and external costs directly related to the integration activities of the Chubb Corp acquisition, consisting primarily of personnel-related expenses, including severance and employee retention and relocation; consulting fees; and advisor fees. Chubb integration expenses were $33 million for the year ended December 31, 2015, consisting primarily of consulting and legal fees.
New accounting pronouncements 
Adopted in 2016
Presentation of Debt Issuance Costs
In April 2015, the Financial Accounting Standard Board (FASB) issued new guidance related to the accounting for debt issuance costs. The new guidance requires presentation of debt issuance costs in the Consolidated balance sheets as a reduction of the carrying amount of the related debt liability instead of as a deferred charge. Previously this cost was recorded in Other assets. We retrospectively adopted this guidance effective January 1, 2016 and reclassified $60 million of debt issuance costs from Other assets to Long-term debt ($58 million) and Trust preferred securities ($2 million) as of December 31, 2015.

Short-Duration Contracts
In May 2015, the FASB issued guidance that requires additional disclosures for short-duration insurance contracts. We adopted this disclosure as of December 31, 2016, and have included in Note 7, new disclosures that provide more information about initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. This guidance requires a change in disclosure only and adoption of this guidance did not have an impact on our financial condition or results of operations.

Adopted in 2015
Business Combinations – Simplifying the Accounting for Measurement-Period Adjustments
In September 2015, the Financial Accounting Standards Board (FASB) issued guidance to simplify the accounting for adjustments made to provisional valuation amounts recognized in a business combination. The guidance requires that the acquirer must recognize adjustments to provisional valuation amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance eliminates the requirement to retrospectively account for such adjustments. Previously, the accounting for measurement-period adjustments required the acquirer to retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill.  We early adopted this guidance effective July 1, 2015. The adoption of this guidance did not have an impact on our financial condition or results of operations.

Disclosures for investments in certain entities that calculate net asset value (NAV)
In May 2015, the FASB issued guidance that eliminated the requirement for investments measured at fair value using NAV as a practical expedient to be categorized within the fair value hierarchy. We adopted this guidance early, effective July 1, 2015 and have retrospectively revised prior year fair value hierarchy disclosures contained in this report to conform to the current period presentation. Refer to Note 4 Fair Value Measurement for further information. This guidance requires a change in disclosure only and adoption of this guidance did not have an impact on our financial condition or results of operations.

Adopted in 2017
Stock Compensation (adopted prospectively effective January 1, 2017)
In March 2016, the FASB issued guidance which requires recognition of the excess tax benefits or deficiencies of awards through net income rather than through additional paid in capital. Additionally, the guidance allows for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We adopted this guidance effective January 1, 2017 and are recognizing the excess tax benefits (deficiencies) within our results of operations. The calculation of the excess tax benefits and deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the consolidated statements of operations. The impact of adoption cannot be estimated at this time. However, based on excess tax benefits recognized in prior years, we do not expect adoption of this guidance to have a material impact on our financial condition and results of operations. Additionally, we elected to retain our current accounting for compensation expense using a forfeiture estimation process.
Accounting guidance not yet adopted 
Accounting guidance not yet adopted
Revenue from Contracts with Customers
In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our claims management and risk control services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The standard is effective for us in the first quarter of 2018 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on our financial condition or results of operations given that the majority of our business is outside the scope of this guidance.

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB issued guidance that affects the recognition, measurement, presentation, and disclosure of financial instruments. The guidance requires equity investments to be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) and an assessment of a valuation allowance on deferred tax assets related to unrealized losses of available for sale (AFS) debt securities in combination with other deferred tax assets. The standard is effective for us in the first quarter of 2018. We are in the process of evaluating the effect the updated guidance will have on our financial condition or results of operations.

Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued guidance on the accounting for credit losses of financial instruments that are measured at amortized cost, including held to maturity securities and reinsurance recoverables, by applying an approach based on the current expected credit losses (CECL). The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset in order to present the net carrying value at the amount expected to be collected on the financial asset on the Consolidated balance sheet.

The guidance also amends the current debt security other-than-temporary impairment model by requiring an estimate of the expected credit loss (ECL) only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a potential credit loss exists. The AFS debt security model will also require the use of a valuation allowance as compared to the current practice of writing down the asset.

The standard is effective for us in the first quarter of 2020 with early adoption permitted in the first quarter of 2019. We will be able to assess the effect of adopting this guidance on our financial condition and results of operations closer to the date of adoption.

Statement of Cash Flows
In August 2016, the FASB issued guidance clarifying the classification of certain cash receipts and cash payments within the statement of cash flows, including distributions received from equity method investments. The guidance requires entities to make an accounting policy election to present cash flows received either in operating cash flows or investing cash flows based on cumulative equity-method earnings or on the nature of the distributions. The updated guidance is effective for us in the first quarter of 2018 with early adoption permitted. The updated guidance should be applied retrospectively, unless it is impracticable to do so, at which point the guidance should be applied prospectively. We are in the process of evaluating the effect the updated guidance will have on our statements of cash flows.

Goodwill Impairment
In January 2017, the FASB issued updated guidance on goodwill impairment testing that eliminates Step 2 of the goodwill impairment test requiring entities to calculate the implied fair value of goodwill through a hypothetical purchase price allocation. Under the updated guidance, impairment will now be recognized as the amount by which a reporting unit’s carrying value exceeds its fair value. The standard is effective for us in the first quarter of 2020 on a prospective basis with early adoption permitted. We do not expect the adoption of this guidance to have a material effect on our financial condition and results of operations.
Acquisitions Acquisitions (Tables)
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] 
 
 
(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.
Results of Operations From Date of Business Combination [Table Text Block] 
The following table summarizes the results of the acquired Chubb Corp operations since the acquisition date that have been included within our Consolidated statement of operations:
(in millions of U.S. dollars)
January 14, 2016 to December 31, 2016

Total revenues
$
12,376

Net income
$
1,756

Business Acquisition, Pro Forma Information [Table Text Block] 
 
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

Investments (Tables)
Schedule Of Amortized Cost and Fair Value of Available-for-sale Securities and Related OTTI Recognized in AOCI 
 
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

 
$
—

Schedule Of Amortized Cost And Fair Value Of Held_to_Maturity And Related OTTI Recognized In AOCI 
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

 
$
—

Schedule Of Fixed Maturities By Contractual Maturity 
The following table presents fixed maturities by contractual maturity:
 
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

Schedule Of Default Assumptions By Moody's Rating Category 
The following table presents default assumptions by Moody's rating category (historical mean default rate provided for comparison):
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
%
Schedule Of Net Realized Gains (Losses) And The Losses Included In Net Realized Gains (Losses) And OCI 
The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary” and the change in net unrealized appreciation (depreciation) of investments: 
 
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

Schedule Of Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which A Portion Of OTTI Was Recognized In OCI 
The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI: 
 
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

Schedule Of Other Investments 
 
 
 
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

Schedule Of Partially Owned Insurance Companies 
 
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

 
 
 
 
Schedule Of Aggregate Fair Value And Gross Unrealized Loss By Length Of Time The Security Has Continuously Been In An Unrealized Loss Position 
The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
 
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
)
Schedule Of Sources Of Net Investment Income 
 
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

Schedule Of Components Of Restricted Assets 
The following table presents the components of restricted assets: 
 
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

Fair value measurements (Tables)
GMIB Annuitization Experience [Table Text Block] 
% 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%
 
(1) Because all policies in this bracket are past the first year of eligibility, first year annuitization assumptions are no longer modeled.  
(2) Weighted average of two different annuitization rates
Financial Instruments Measured At Fair Value On A Recurring Basis 
Financial instruments measured at fair value on a recurring basis, by valuation hierarchy 
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.

Fair Value And Maximum Future Funding Commitments Related To Investments 
The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments: 
 
 
 
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

Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations 
The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
(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.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation 
The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3): 
 
 
 
 
 
 
 
 
 
 
 
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. 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] 
 
 
 
 
 
 
 
 
 
 
 
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. 
Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value 
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

Reinsurance (Tables)
Schedule of direct, assumed and ceded premiums 
The following table presents direct, assumed, and ceded premiums:
 
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

Schedule of Reinsurance Recoverable On Paid Losses And Loss Expenses [Table Text Block] 
b) Reinsurance recoverable on ceded reinsurance
 
 
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.

Schedule of reinsurance recoverable and provision by category of reinsurer 
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
%
Schedule of income and expenses relating to GMDB and GLB reinsurance 
The following table presents income and expenses relating to GMDB and GLB reinsurance. GLBs include GMIBs as well as some GMABs originating in Japan.
 
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
)
Schedule of Net Amount of Risk and 100 Percent Mortality [Table Text Block] 
(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
 
(1) Takes into account all applicable reinsurance treaty claim limits.
(2) Annuitization at a level that maximizes claims taking into account the treaty limits.
(3) Covering both the GMDB and GLB risks on the same underlying policyholders.
Intangible Assets (Tables)
Goodwill roll-forward by business segment 
The following table presents a roll-forward of Goodwill by segment:
(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

Intangible assets acquired as part of Chubb Corp acquisition [Table Text Block] 
The purchase price allocation to intangible assets recorded in connection with the Chubb Corp acquisition and their related useful lives are as follows:
(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

 
 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] 
 
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

VOBA 
The following table presents a roll-forward of VOBA:
(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.

The following table presents, as of December 31, 2016, the expected estimated pre-tax amortization expense related to VOBA for the next five years:
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

Unpaid losses and loss expenses (Tables)
Claims Development tables [Table Text Block] 
North America Commercial P&C Insurance — Liability
This line consists of primary and excess liability exposures, including medical liability, and professional lines, including directors and officers (D&O) liability, errors and omissions (E&O) liability, employment practices liability (EPL), and fiduciary liability.
The primary and excess liability business represents the largest part of these exposures. The former includes both monoline and commercial package liability. The latter includes a substantial proportion of commercial umbrella, excess and high excess business, where loss activity can produce significant volatility in the loss triangles at later ages within an accident year (and sometimes across years) due to the size of the limits afforded and the complex nature of the underlying losses.

This line also includes management and professional liability products provided to a wide variety of clients, from national accounts to small firms to private and not-for-profit organizations, distributed through brokers, agents, wholesalers and MGAs. Many of these coverages, particularly D&O and E&O, are typically written on a claims-made form. While most of the coverages are underwritten on a primary basis, there are significant amounts of large line and excess exposure as well.
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
This product line represents first party commercial product lines that are short-tailed in nature, such as property, inland marine, A&H, and surety/fidelity bonds. There is a wide diversity of products, primary and excess coverages, and policy sizes. During this ten-year period, this product line was also impacted by natural catastrophes in the same years as outlined above in Other Casualty.
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

North America Personal P&C Insurance
Chubb provides personal lines coverages for high-net-worth individuals and families in North America including homeowners, automobile, valuable articles (including fine art), umbrella liability, and recreational marine insurance offered through independent regional agents and brokers. A portfolio acquired from Fireman’s Fund is presented on a prospective basis beginning in May of accident year 2015. Reserves associated with prior accident periods were acquired through a loss portfolio transfer, which does not allow for a retrospective presentation.
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 Commercial P&C Insurance — Other Casualty
This product line consists of the remaining commercial casualty coverages such as automobile liability, marine, and aviation. There is also a small portion of commercial multi-peril (CMP) business in accident years 2014 and prior. The paid and reported data are impacted by some catastrophe loss activity primarily on the CMP exposures just noted and, to a lesser extent, marine exposures. The ultimate loss experience for years ended December 31, 2008, 2011, and 2012 were impacted by natural catastrophes.
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

North America Commercial P&C Insurance — Workers' Compensation
This product line has a substantial geographic spread and a broad mix across industries. Types of coverage include risk management business predominantly with high deductible policies, loss sensitive business (i.e., retrospectively-rated policies), business fronted for captives, as well as primary guaranteed cost coverages.
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
This portfolio consists of property catastrophe, property proportional, and property per risk books, with U.S. exposure representing approximately 70 percent of the business within this segment. Although the mixture of business varies by year, property catastrophe represents approximately 70 percent in Treaty Years 2007 and after. Of the non-catastrophe book, approximately 75 percent is on proportional treaties in Treaty Year 2007 and after. This percentage has increased over time with the proportion being approximately 50 percent from 2007 growing to approximately 90 percent in Treaty Year 2015, with the remainder being written on an excess of loss basis. Also note, this product line is impacted by natural catastrophes, particularly in the 2011 and 2012 years.
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

Overseas General Insurance — Non-Casualty
This product line comprises commercial fire, marine (predominantly cargo), personal automobile (in Latin America, Asia Pacific and Japan), personal cell phones, personal residential (including high net worth), energy and construction. Latin America and Europe each make up about 35 percent of the Chubb International non-casualty book. In general, these lines have relatively stable payment and reporting patterns although they are impacted by natural catastrophes particularly in the 2008, 2010 and 2011 years.
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
%
 
—
%
 
—
%
 
—
%

Overseas General Insurance — Casualty
This product line is comprised of D&O liability, E&O liability, financial institutions (including crime/fidelity coverages), and non-U.S. general liability as well as shorter-tailed casualty exposures such as aviation, surety, and political risk. Exposures are located around the world, including Europe, Latin America, and Asia. There is some U.S. exposure in Casualty from multinational accounts. The financial lines coverages are typically written on a claims-made form, while general liability coverages are typically on an occurrence basis and a mix of primary and excess business.
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

Global Reinsurance — Non-Property
This product line includes proportional and excess casualty coverages with exposures located around the world. Reinsurance in general exhibits less stable development patterns than primary business. In particular U.S. casualty reinsurance is long-tailed and can be very volatile.
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

Schedule of Historical Claims [Table Text Block] 
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 Claims Development to Liability [Table Text Block] 
The following table presents a reconciliation of the loss development tables above to the gross loss reserve liability in the consolidated balance sheet:
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

(1) Other includes the North America Agricultural Insurance segment, run-off asbestos and environmental, the loss portfolio transfer of Fireman’s Fund personal lines run-off liabilities, and Alternative Risk Solutions. Excludes the Life Insurance segment reserves.
(2) Primarily includes our international A&H business and Life Insurance segment reserves.


Schedule Of Unpaid Losses And Loss Expenses Roll Forward 
The following table presents a reconciliation of Unpaid losses and loss expenses:
 
 
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.
Schedule Of Asbestos Environmental Loss Roll Forward and by segment 
The following table presents a roll-forward of consolidated A&E loss reserves including allocated loss expense reserves for A&E exposures, and the provision for uncollectible paid and unpaid reinsurance recoverables:
 
 
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

 

(1) Excludes unallocated loss expenses and the net activity reflects third-party reinsurance other than the aggregate excess of loss reinsurance provided by National Indemnity Company (NICO) to Westchester Specialty (see Westchester Specialty section below).

The A&E net loss reserves including allocated loss expense reserves and provision for uncollectible reinsurance at December 31, 2016 and 2015 shown in the table above is comprised of:
 
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



Taxation (Tables)
Schedule of components of income tax provision 
The following table presents pre-tax income and the related provision for income taxes:
 
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

Reconciliation schedule of the difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate 
The following table presents a reconciliation of the difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate:
 
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


(1) 2014 includes a charge to deferred taxes related to non-recognition of foreign tax credits related to unrealized foreign exchange losses.
Schedule of the components of net deferred tax assets 
The following table presents the components of the net deferred tax assets (liabilities):
 
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


(1) Certain amounts within the components of deferred taxes at December 31, 2015 have been reclassified to conform to the new presentation at December 31, 2016.

Reconciliation schedule of unrecognized tax benefits 

The following table presents a reconciliation of the beginning and ending amount of gross unrecognized tax benefits:
 
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


(1) Assumed in connection with the Chubb Corp acquisition.

Debt (Tables)
Schedule of debt outstanding
 
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)

Commitments, contingencies, and guarantees (Tables)
Balance Sheet Locations, Fair Values In An Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments 
The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments: 
 
 
 
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.
Secured Borrowings Securities Lending Table 
The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:
 
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.
At December 31, 2016 and 2015, our repurchase agreement obligations of $1,403 million and $1,404 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities, and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.
The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:
 
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.

Derivative Instruments, Gain (Loss) [Table Text Block] 
The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
 
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) 
Schedule of Future Minimum Rental Payments for Operating Leases 
Future minimum lease payments under the leases are expected to be as follows:
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

Shareholders' equity (Tables)
Dividends Declared [Table Text Block] 
The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
 
Year Ended December 31
 
 
 
 
2016

 
 
 
2015

 
 
 
2014

 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

Dividends - par value reduction
—

 
$
—

 
0.62

 
$
0.65

 
2.27

 
$
2.46

Dividends - distributed from capital contribution reserves
2.70

 
2.74

 
1.94

 
2.01

 
0.20

 
0.24

Total dividend distributions per common share
2.70

 
$
2.74

 
2.56

 
$
2.66

 
2.47

 
$
2.70

Schedule of changes in Common Shares issued and outstanding 
 
Year Ended December 31
 
 
2016

 
2015

 
2014

Shares issued, beginning of year
342,832,412

 
342,832,412

 
342,832,412

Shares issued for Chubb Corp acquisition
136,951,452

 
—

 
—

Common Shares in treasury, end of year (at cost)
(13,815,148
)
 
(18,268,971
)
 
(14,172,726
)
Shares issued and outstanding, end of year
465,968,716

 
324,563,441

 
328,659,686

Common Shares issued to employee trust
 
 
 
 
 
Balance, beginning of year
(5,800
)
 
(9,467
)
 
(9,467
)
Shares redeemed
3,000

 
3,667

 
—

Balance, end of year
(2,800
)
 
(5,800
)
 
(9,467
)
Share Repurchase Program [Table Text Block] 
The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:
 
Year Ended December 31
 
 
January 1, 2017 through

(in millions of U.S. dollars, except share data)
2016

 
2015

 
2014

 
February 24, 2017

Number of shares repurchased
—

 
6,677,663

 
13,982,358

 
419,623

Cost of shares repurchased
$
—

 
$
734

 
$
1,449

 
$
55

Share-based compensation (Tables)
Schedule of pre-tax and after-tax share-based compensation expense 
The following table presents pre-tax and after-tax share-based compensation expense:
 
Year Ended December 31
 
(in millions of U.S. dollars)
2016

 
2015

 
2014

Stock options and shares issued under ESPP:
 
 
 
 
 
Pre-tax
$
33

 
$
31

 
$
28

After-tax (1)
$
20

 
$
21

 
$
19

Restricted stock:
 
 
 
 
 
Pre-tax
$
268

 
$
143

 
$
128

After-tax
$
167

 
$
84

 
$
75


(1) 
Excludes windfall tax benefit for share-based compensation recognized as a direct adjustment to Additional paid-in capital of $32 million, $26 million and $28 million for the years ended December 31, 2016, 2015 and 2014, respectively.
Schedule of the weighted-average model valuation assumptions 
 
Year Ended December 31
 
 
2016

 
2015

 
2014

Dividend yield
2.3
%
 
2.3
%
 
2.7
%
Expected volatility
23.2
%
 
21.0
%
 
25.2
%
Risk-free interest rate
1.3
%
 
1.7
%
 
1.7
%
Expected life
5.6 years

 
5.8 years

 
5.8 years

Rollforward of the company's stock options 
The following table presents a roll-forward of Chubb's stock options:
(Intrinsic Value in millions of U.S. dollars)
Number of Options

 
Weighted-Average Exercise Price

 
Weighted-Average Fair Value

 
Total Intrinsic Value

Options outstanding, December 31, 2013
9,496,856

 
$
61.84

 
 
 
 
Granted
1,782,903

 
$
96.77

 
$
18.00

 
 
Exercised
(1,511,948
)
 
$
54.84

 
 
 
$
73

Forfeited
(143,825
)
 
$
84.52

 
 
 
 
Options outstanding, December 31, 2014
9,623,986

 
$
69.06

 
 
 
 
Granted
1,892,641

 
$
114.78

 
$
18.49

 
 
Exercised
(1,457,580
)
 
$
60.88

 
 
 
$
72

Forfeited
(205,551
)
 
$
100.25

 
 
 
 
Options outstanding, December 31, 2015
9,853,496

 
$
78.40

 
 
 
 
Assumed in Chubb Corp Acquisition
339,896

 
$
77.83

 
$
36.07

 
 
Granted
1,929,616

 
$
118.39

 
$
21.52

 
 
Exercised
(1,728,949
)
 
$
66.65

 
 
 
$
99

Forfeited
(213,339
)
 
$
110.01

 
 
 
 
Options outstanding, December 31, 2016
10,180,720

 
$
87.29

 
 
 
$
456

Options exercisable, December 31, 2016
6,562,884

 
$
72.90

 
 
 
$
389

Rollforward of the company's restricted stock 
The following table presents a roll-forward of our restricted stock awards. Included in the roll-forward below are 23,812 restricted stock awards, 24,945 restricted stock awards, and 25,339 restricted stock awards that were granted to non-management directors during the years ended December 31, 2016, 2015, and 2014, respectively:
 
Service-based
Restricted Stock Awards and Restricted Stock Units
 
 
Performance-based
Restricted Stock Awards
and Restricted Stock Units
 
 
Number of Shares

 
Weighted-Average Grant-Date Fair Value

 
Number of Shares

 
Weighted-Average Grant-Date Fair Value

Unvested restricted stock, December 31, 2013
4,129,583

 
$
71.85

 
196,497

 
$
71.35

Granted
1,596,245

 
$
97.16

 
374,202

 
$
98.31

Vested
(1,500,949
)
 
$
68.33

 
(192,009
)
 
$
85.39

Forfeited
(387,782
)
 
$
73.21

 
—

 
$
—

Unvested restricted stock, December 31, 2014
3,837,097

 
$
83.60

 
378,690

 
$
90.87

Granted
1,417,965

 
$
114.37

 
326,860

 
$
113.29

Vested
(1,341,358
)
 
$
80.05

 
(110,340
)
 
$
98.70

Forfeited
(424,535
)
 
$
87.36

 
—

 
$
—

Unvested restricted stock, December 31, 2015
3,489,169

 
$
97.01

 
595,210

 
$
101.73

Assumed in Chubb Corp Acquisition
3,706,639

 
$
111.02

 
—

 
$
—

Granted
1,622,065

 
$
118.70

 
517,507

 
$
118.96

Vested
(2,592,622
)
 
$
100.87

 
(181,548
)
 
$
102.43

Forfeited
(420,125
)
 
$
109.42

 
—

 
$
—

Unvested restricted stock, December 31, 2016
5,805,126

 
$
109.39

 
931,169

 
$
111.17

Postretirement benefits (Tables)
Schedule of Net Funded Status [Table Text Block] 
Obligations and funded status
The funded status of the pension and other postretirement benefit plans at December 31, 2016 and 2015 was as follows:
 
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
)
 
$
—

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] 
 Net actuarial loss (gain) and prior service cost included in AOCI that were not yet recognized as components of net benefit costs in Net income at December 31, 2016 and 2015 were as follows:
 
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

Schedule of Assumptions Used [Table Text Block] 
The weighted-average assumptions used to determine the projected benefit obligation were as follows:
 
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
 
 
 
 
 
 
 


The components of net pension and other postretirement benefit costs reflected in Net income and other changes in plan assets and benefit obligations recognized in other comprehensive income were as follows:
 
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
)
 
$
—

 
$
—

 
$
—



The estimated net actuarial loss that will be amortized from AOCI into net periodic benefit costs in Net income for Non-U.S. pension plans during 2017 is $3 million. The estimated net prior service credit that will be amortized from AOCI into net periodic benefit costs in Net income during 2017 for U.S. other postretirement benefit plans is $92 million.

The weighted-average assumptions used to determine the net periodic pension and other postretirement benefit costs were as follows:
 
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
 
 
 
 
 
 
 
Schedule of Net Benefit Costs [Table Text Block] 
The components of net pension and other postretirement benefit costs reflected in Net income and other changes in plan assets and benefit obligations recognized in other comprehensive income were as follows:
 
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
)
 
$
—

 
$
—

 
$
—

Schedule of Health Care Cost Trend Rates [Table Text Block] 
The weighted average healthcare cost trend rate assumptions used to measure the expected cost of healthcare benefits were as follows:
 
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

Schedule of Allocation of Plan Assets [Table Text Block] 
The following table presents the fair values of the pension plan assets, by valuation hierarchy. For additional information on how we classify these assets within the valuation hierarchy, refer to Note 4 to the Consolidated financial statements.
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
Schedule of expected future benefit payments 
Expected future payments are as follows:
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

Other (income) expense (Tables)
Schedule of the components of Other (income) expense
 
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
)
Segment information (Tables)
Operations By Segment 
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

Net Premiums Earned For Segment By Product 
The following table presents net premiums earned for each segment by line of business:
 
 
 
 
 
 
 
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

Net Premiums Earned by Geographic Region 

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
%
Earnings per share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
 
Year Ended December 31
 
(in millions of U.S. dollars, except share and per share data)
2016

 
2015

 
2014

Numerator:
 
 
 
 
 
Net income
$
4,135

 
$
2,834

 
$
2,853

Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Weighted-average shares outstanding
462,519,789

 
325,589,361

 
335,609,899

Denominator for diluted earnings per share:
 
 
 
 
 
Share-based compensation plans
3,429,610

 
3,246,017

 
3,376,388

Weighted-average shares outstanding
      and assumed conversions
465,949,399

 
328,835,378

 
338,986,287

Basic earnings per share
$
8.94

 
$
8.71

 
$
8.50

Diluted earnings per share
$
8.87

 
$
8.62

 
$
8.42

Potential anti-dilutive share conversions
1,206,828

 
1,601,668

 
1,024,788

Statutory Financial Information (Tables)
Schedule of combined statutory capital and surplus and statutory net income (loss)
 
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
)
Information provided in connection with outstanding debt of subsidiaries (Tables)
Condensed Consolidating Balance Sheet 
ondensed Consolidating Balance Sheet at December 31, 2016
(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


(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, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Balance Sheet at December 31, 2015
(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.
Condensed Consolidating Statement Of Operations and Comprehensive Income 
Condensed Consolidating Statements of Operations and Comprehensive Income
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


Condensed Consolidating Statements of Operations and Comprehensive Income
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






Condensed Consolidating Statements of Operations and Comprehensive Income
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




Condensed Consolidating Statement of Cash Flows 
Condensed Consolidating Statement of Cash Flows 
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.
Condensed Consolidating Statement of Cash Flows
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.
Condensed Consolidating Statement of Cash Flows
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.
Condensed Unaudited Quarterly Financial Data (Tables)
Schedule of quarterly financial information
 
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

Summary of significant accounting policies (Narrative) (Detail) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Jan. 14, 2016
The Chubb Corporation [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
Debt Securities [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
Debt Securities [Member]
Dec. 31, 2016
Selling and Marketing Expense [Member]
Dec. 31, 2015
Selling and Marketing Expense [Member]
Dec. 31, 2014
Selling and Marketing Expense [Member]
Dec. 31, 2016
Fair Value Adjustment to Acquired Loss Reserves [Member]
The Chubb Corporation [Member]
Jan. 14, 2016
Fair Value Adjustment to Acquired Loss Reserves [Member]
The Chubb Corporation [Member]
Dec. 31, 2016
Structured settlements
Dec. 31, 2015
Structured settlements
Dec. 31, 2016
Other Short-duration Insurance Product Line [Member]
Dec. 31, 2015
Other Short-duration Insurance Product Line [Member]
Dec. 31, 2016
Minimum
Dec. 31, 2015
Minimum
Dec. 31, 2016
Minimum
The Chubb Corporation [Member]
Dec. 31, 2016
Minimum
Fair Value Adjustment to Acquired Loss Reserves [Member]
The Chubb Corporation [Member]
Dec. 31, 2016
Maximum
Dec. 31, 2015
Maximum
Dec. 31, 2016
Maximum
The Chubb Corporation [Member]
Dec. 31, 2016
Maximum
Fair Value Adjustment to Acquired Loss Reserves [Member]
The Chubb Corporation [Member]
Dec. 31, 2015
Long-term Debt [Member]
Dec. 31, 2015
Trust Preferred Securities
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Integration Related Costs
$ 492,000,000 
$ 33,000,000 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated notional cash pooling program
300,000,000 
0 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance business assumed
20,000,000 
21,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recoverable from unrated reinsurers, ceded reserve, default factor (percent)
34.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized Debt Issuance Expense
 
60,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
58,000,000 
2,000,000 
Liability for Future Policy Benefit, by Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rates used in calculating future policy benefits
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.01 
0.01 
 
 
0.080 
0.072 
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit assets reflected in Other assets
93,000,000 
86,000,000 
 
 
 
 
 
 
 
 
 
 
38,000,000 
42,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
60,540,000,000 
37,303,000,000 
38,315,000,000 
37,443,000,000 
22,923,000,000 
 
 
 
 
 
 
 
595,000,000 
 
50,000,000 
50,000,000 
 
 
 
 
 
 
 
 
 
 
Reinsurance recoverables for amounts due from life insurance companies
 
 
 
 
 
 
 
 
 
 
 
 
557,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit liabilities included in Deposit liabilities
108,000,000 
110,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings under Guaranteed Investment Agreements
1,500,000,000 
1,100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase Decrease on Acquired Unpaid Losses and Loss Expenses
 
 
 
 
 
 
 
 
 
 
470,000,000 
715,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of significant accounting policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance Premiums, Amortization Period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
3 years 
 
 
 
 
 
Deferred Policy Acquisition Cost, Amortization Expense
5,904,000,000 
2,941,000,000 
3,075,000,000 
 
 
 
 
92,000,000 
78,000,000 
99,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Advertising Costs
256,000,000 
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Marketing Costs, Amortization Period
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization period for value of reinsurance business assumed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9 years 
 
 
 
40 years 
 
 
 
 
 
Percentage of fair value of loaned securities
102.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quality assessment threshold used in goodwill impairment testing
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
5 years 
30 years 
 
 
17 years 
 
 
Amortization Period of Increase Decrease to Acquired Unpaid Losses and Loss Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
17 years 
 
 
 
Assets, Fair Value Adjustment
 
 
 
 
 
1,652,000,000 
1,226,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental Information for Property, Casualty Insurance Underwriters, Reserves for Unpaid Claims and Claims Adjustment Expense
47,832,000,000 
26,562,000,000 
27,008,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating results of ESIS included within Administrative expenses
32,000,000 
30,000,000 
27,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
1,200,000,000 
938,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Assets, Net
$ 3,800,000,000 
$ 789,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions (Detail) (USD $)
12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Oct. 31, 2014
Large Corporate Property And Casualty Business Of Itau Seguros [Member]
Oct. 31, 2014
Large Corporate Property And Casualty Business Of Itau Seguros [Member]
Apr. 1, 2015
Fireman's Fund high net worth personal lines [Member]
Jun. 17, 2014
The Siam Commercial Sammagi Insurance PCL (Samaggi)
Jun. 17, 2014
The Siam Commercial Sammagi Insurance PCL (Samaggi)
Apr. 28, 2014
The Siam Commercial Sammagi Insurance PCL (Samaggi)
Jan. 14, 2016
The Chubb Corporation [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
Dec. 31, 2015
The Chubb Corporation [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Value of Equity Awards Issued in Acquisition
 
 
 
 
 
 
 
 
 
 
$ 525,000,000 
 
 
 
Purchase Price
 
 
 
 
 
 
 
 
 
 
29,500,000,000 
 
 
 
Business Acquisition, Financing Of Acquisition With Cash
 
 
 
 
 
 
365,000,000 
 
 
 
9,000,000,000 
 
 
 
Senior notes issued to finance acquisition
 
 
 
 
 
 
 
 
 
 
5,300,000,000 
 
 
 
Weighted Average Number of Shares Outstanding, Basic
462,519,789 
325,589,361 
335,609,899 
 
 
 
 
 
 
 
228,000,000 
 
 
 
Shares Conversion Ratio in Acquisition
 
 
 
 
 
 
 
 
 
 
0.6019 
 
 
 
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares
 
 
 
 
 
 
 
 
 
 
137,000,000 
 
 
 
Share Price
 
 
 
 
 
 
 
 
 
 
$ 111.02 
 
 
 
Equity Issued in Business Combination, Fair Value Disclosure
 
 
 
 
 
 
 
 
 
 
15,204,000,000 
 
 
 
Business Acquisition, Share Price
 
 
 
 
 
 
 
 
 
 
$ 62.93 
 
 
 
Payments to Acquire Businesses, Gross
 
 
 
 
606,000,000 
 
 
176,000,000 
 
 
14,319,000,000 
 
 
 
Attributed Value Equity Awards Assumed in Acquisition
 
 
 
 
 
 
 
 
 
 
323,000,000 
 
 
 
Business Combination, Consideration Transferred
 
 
 
 
 
 
 
 
 
 
29,800,000,000 
 
 
 
Cash
985,000,000 1 2
1,775,000,000 1 3 4
655,000,000 1 5
579,000,000 5
 
 
629,000,000 
 
 
 
71,000,000 
 
 
 
Investments
99,094,000,000 
66,251,000,000 
 
 
 
 
 
 
 
 
42,967,000,000 
 
 
 
Accrued investment income
918,000,000 
513,000,000 
 
 
 
 
 
 
 
 
359,000,000 
 
 
 
Insurance and reinsurance balances receivable
8,970,000,000 
5,323,000,000 
 
 
 
 
124,000,000 
 
 
 
3,095,000,000 
 
 
 
Reinsurance recoverable on paid losses and loss expenses
13,577,000,000 
11,386,000,000 
 
 
 
 
 
 
 
 
1,676,000,000 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets
 
 
 
 
 
 
 
 
 
 
2,860,000,000 
 
 
 
Finite lived intangible assets
 
 
 
 
 
60,000,000 
 
 
 
80,000,000 
4,795,000,000 
 
 
 
Prepaid reinsurance premiums
2,448,000,000 
2,082,000,000 
 
 
 
 
 
 
 
 
280,000,000 
 
 
 
Other assets
5,090,000,000 
3,821,000,000 
 
 
 
 
 
 
 
 
853,000,000 
 
 
 
Unpaid losses and loss expenses
(60,540,000,000)
(37,303,000,000)
(38,315,000,000)
(37,443,000,000)
 
 
(417,000,000)
 
 
 
(22,923,000,000)
 
 
 
Unearned premiums
(14,779,000,000)
(8,439,000,000)
 
 
 
 
(428,000,000)
 
 
 
(7,011,000,000)
 
 
 
Reinsurance Payable
(5,637,000,000)
(4,270,000,000)
 
 
 
 
 
 
 
 
(603,000,000)
 
 
 
Accounts Payable, Accrued Expenses and Other Liabilities
(8,617,000,000)
(6,205,000,000)
 
 
 
 
 
 
 
 
(2,030,000,000)
 
 
 
Deferred Tax Liabilities, Net
(988,000,000)
 
 
 
 
 
 
 
 
 
(1,292,000,000)
 
 
 
Long-term Debt
(12,610,000,000)
(9,389,000,000)
 
 
 
 
 
 
 
 
(3,765,000,000)
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net
 
 
 
 
 
 
 
 
 
 
19,332,000,000 
 
 
 
Fair Value of Assets Acquired
 
 
 
 
 
 
753,000,000 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities
 
 
 
 
 
 
863,000,000 
 
 
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill)
6,763,000,000 
887,000,000 
 
 
 
 
278,000,000 
 
 
 
 
 
 
 
Total ownership percentage acquired
 
 
 
 
 
 
 
 
93.03% 
 
 
 
 
 
Additional investment percentage to be acquired after tender offer
 
 
 
 
 
 
 
 
32.17% 
60.86% 
 
 
 
 
Goodwill
15,332,000,000 
4,796,000,000 
4,904,000,000 
 
 
445,000,000 
196,000,000 
 
 
46,000,000 
10,514,000,000 
 
 
 
Goodwill, Expected Tax Deductible Amount
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
Chubb Corp, Revenue since acquisition date
 
 
 
 
 
 
 
 
 
 
 
12,376,000,000 
 
 
Chubb Corp, Earnings since acquisition date
 
 
 
 
 
 
 
 
 
 
 
1,756,000,000 
 
 
Chubb Corp, Pro Forma Revenue
 
 
 
 
 
 
 
 
 
 
 
 
31,937,000,000 
32,622,000,000 
Chubb Corp, Pro Forma Net Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
 
4,183,000,000 
4,478,000,000 
Chubb Corp, Pro Forma Earnings Per Share, Basic
 
 
 
 
 
 
 
 
 
 
 
 
$ 8.95 
$ 9.61 
Chubb Corp, Pro Forma Earnings Per Share, Diluted
 
 
 
 
 
 
 
 
 
 
 
 
$ 8.88 
$ 9.52 
Common Shares
$ 11,121,000,000 
$ 7,833,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Investments (Narrative) (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
partnerships
Security
Dec. 31, 2015
Dec. 31, 2014
Investment [Line Items]
 
 
 
Net unrealized appreciation (depreciation) included in OCI
$ 62,000,000 
$ 15,000,000 
 
AOCI Portion Attributable to change of FV of investments with OTTI
10,000,000 
(35,000,000)
 
Reinsurance recoverable on losses and loss expenses
13,577,000,000 
11,386,000,000 
 
Ceded Premiums Written
6,838,000,000 
6,098,000,000 
5,591,000,000 
Insurance and reinsurance balances payable
5,637,000,000 
4,270,000,000 
 
Carrying Value
666,000,000 
653,000,000 
 
Portion of gross unrealized loss represented by the United States Treasury and Agency obligations
725,000,000 
 
 
Moodys historical mean recovery rate
42.00% 
 
 
Limited partnerships number
143 
 
 
Trading securities - mutual funds
271,000,000 
257,000,000 
 
Trading securities - equity securities
14,000,000 
20,000,000 
 
Trading securities - fixed maturities
11,000,000 
7,000,000 
 
Number of fixed maturities in an unrealized loss position
11,078 
 
 
Total number of fixed maturities
31,955 
 
 
Largest single unrealized loss in the fixed maturities
7,000,000 
 
 
Number of equity securities in an unrealized loss position
87 
 
 
Total number of equity securities
320 
 
 
Largest single unrealized loss in the equity securities
3,000,000 
 
 
Restricted assets in fixed maturities and short-term investments
20,100,000,000 
16,900,000,000 
 
Percentage of mortgage-backed securities represented by investments in US government agency bonds
81.00% 
 
 
Restricted assets in cash
103,000,000 
110,000,000 
 
ABR Reinsurance Capital Holdings Ltd. [Member]
 
 
 
Investment [Line Items]
 
 
 
Warrants & Rights Outstanding
 
0.50% 
 
Reinsurance recoverable on losses and loss expenses
148,000,000 
82,000,000 
 
Ceded Premiums Written
288,000,000 
115,000,000 
 
Fees and Commissions, Other
66,000,000 
30,000,000 
 
Insurance and reinsurance balances payable
53,000,000 
6,000,000 
 
Carrying Value
 
90,000,000 
 
Equity Method Investment, Ownership Percentage
 
11.30% 
 
Corporate Debt Securities [Member]
 
 
 
Investment [Line Items]
 
 
 
Credit losses recognized in net income
30,000,000 
50,000,000 
27,000,000 
Company assumed recovery rate
32.00% 
 
 
Collateralized Mortgage Backed Securities [Member]
 
 
 
Investment [Line Items]
 
 
 
Credit losses recognized in net income
$ 1,000,000 
$ 0 
$ 0 
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Available for sale, Due in 1 year or less, Amortized Cost
$ 3,892 
$ 1,856 
Available for sale, Due after 1 year through 5 years, Amortized Cost
24,027 
14,936 
Available for sale, Due after 5 years though 10 years, Amortized Cost
27,262 
12,258 
Available for sale, Due after 10 years, Amortized Cost
10,289 
4,272 
Available for sale, Subtotal, Amortized Cost
65,470 
33,322 
Available for sale, Mortgage-backed securities, Amortized Cost
14,066 
9,827 
Available-for-sale Debt Securities, Amortized Cost Basis
79,536 
43,149 
Available for sale, Due in 1 year or less, Fair Value
3,913 
1,865 
Available for sale, Due after 1 year through 5 years, Fair Value
24,429 
15,104 
Available for sale, Due after 5 years through 10 years, Fair Value
27,379 
12,173 
Available for sale, Due after 10 years, Fair Value
10,387 
4,487 
Available for sale, Subtotal, Fair Value
66,108 
33,629 
Available for sale, Mortgage backed securities, Fair Value
14,007 
9,958 
Available for sale, Fair Value
80,115 
43,587 
Held to maturity, Due in 1 year or less, Amortized Cost
430 
492 
Held to maturity, Due after 1 year through 5 years, Amortized Cost
2,646 
2,443 
Held to maturity, Due after 5 years through 10 years, Amortized Cost
2,969 
2,292 
Held to maturity, Due after 10 years, Amortized Cost
3,206 
1,496 
Held to maturity, Subtotal, Amortized Cost
9,251 
6,723 
Held to maturity, Mortgage backed securities, Amortized Cost
1,393 
1,707 
Held to maturity, Amortized Cost
10,644 
8,430 
Held to maturity, Due in 1 year or less, Fair Value
435 
495 
Held to maturity, Due after 1 year through 5, Fair Value
2,691 
2,517 
Held to maturity, Due after 5 years through 10 years, Fair Value
2,944 
2,313 
Held to maturity, Due after 10 years, Fair Value
3,172 
1,484 
Held to maturity, Subtotal, Fair Value
9,242 
6,809 
Held to maturity, Mortgage backed securities, Fair Value
1,428 
1,743 
Held to maturity, Fair Value
$ 10,670 
$ 8,552 
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Equity securities, at cost
$ 706 
$ 441 
Gross unrealized appreciation
129 
74 
Gross unrealized depreciation
(21)
(18)
Equity securities
$ 814 
$ 497 
Investments (Schedule Of Default Assumptions By Moody's Rating Categories) (Details)
12 Months Ended
Dec. 31, 2016
Investment Grade |
Aaa - Bbb |
Minimum
 
Financing Receivable, Recorded Investment [Line Items]
 
1-in-100 Year Default Rate
0.00% 
Historical Mean Default Rate
0.00% 
Investment Grade |
Aaa - Bbb |
Maximum
 
Financing Receivable, Recorded Investment [Line Items]
 
1-in-100 Year Default Rate
1.30% 
Historical Mean Default Rate
0.30% 
Below Investment Grade |
Ba
 
Financing Receivable, Recorded Investment [Line Items]
 
1-in-100 Year Default Rate
4.80% 
Historical Mean Default Rate
1.00% 
Below Investment Grade |
B
 
Financing Receivable, Recorded Investment [Line Items]
 
1-in-100 Year Default Rate
12.10% 
Historical Mean Default Rate
3.20% 
Below Investment Grade |
Caa - C
 
Financing Receivable, Recorded Investment [Line Items]
 
1-in-100 Year Default Rate
36.70% 
Historical Mean Default Rate
10.50% 
Investments (Net Realized Gains (Losses) And Losses Included In Net Realized Gains (Losses) And Other Comprehensive Income) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Other-than-temporary impairment (OTTI) losses gross
 
 
 
 
 
 
 
 
$ (111)
$ (151)
$ (75)
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
8 
39 
7 
Foreign exchange gains( losses)
 
 
 
 
 
 
 
 
118 
(80)
(40)
Fair Value adjustment on insurance derivative
 
 
 
 
 
 
 
 
53 
(203)
(217)
Derivative, Gain (Loss) on Derivative, Net
 
 
 
 
 
 
 
 
(126)
(193)
(442)
Total Net realized gains (losses) including OTTI
365 
100 
(216)
(394)
(60)
(397)
126 
(89)
(145)
(420)
(507)
Unrealized Gain (Loss) on Investments
 
 
 
 
 
 
 
 
184 
(977)
677 
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax
 
 
 
 
 
 
 
 
100 
152 
(167)
Total net realized gains (losses) and change in net unrealized appreciation (depreciation) on investments
 
 
 
 
 
 
 
 
39 
(1,397)
170 
Other derivative instruments
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Derivative, Gain (Loss) on Derivative, Net
 
 
 
 
 
 
 
 
(10)
(12)
50 
Investment and embedded derivative instruments
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Derivative, Gain (Loss) on Derivative, Net
 
 
 
 
 
 
 
 
(33)
32 
(107)
S&P Options and Futures
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Derivative, Gain (Loss) on Derivative, Net
 
 
 
 
 
 
 
 
(136)
(10)
(168)
Equity Securities [Member]
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost-method Investments, Other than Temporary Impairment
 
 
 
 
 
 
 
 
(8)
(7)
(8)
Equity Securities - Gross Realized Gains Excluding OTTI
 
 
 
 
 
 
 
 
65 
47 
22 
Equity Securities - Gross realized losses excluding OTTI
 
 
 
 
 
 
 
 
(13)
(11)
(61)
Total Equity Securities
 
 
 
 
 
 
 
 
44 
29 
(47)
Unrealized Gain (Loss) on Investments
 
 
 
 
 
 
 
 
52 
(17)
77 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Unrealized Gain (Loss) on Investments
 
 
 
 
 
 
 
 
(59)
43 
(2)
Other Investments [Member]
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost-method Investments, Other than Temporary Impairment
 
 
 
 
 
 
 
 
(14)
(2)
(3)
Gain (Loss) on Sale of Other Investments
 
 
 
 
 
 
 
 
(4)
6 
2 
Unrealized Gain (Loss) on Investments
 
 
 
 
 
 
 
 
(51)
(36)
35 
Available-for-sale Securities [Member]
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Unrealized Gain (Loss) on Investments
 
 
 
 
 
 
 
 
142 
(1,119)
734 
Debt Securities [Member]
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Other-than-temporary impairment (OTTI) losses gross
 
 
 
 
 
 
 
 
(89)
(142)
(64)
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
8 
39 
7 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
 
 
 
 
 
 
 
 
(81)
(103)
(57)
Available-for-sale Securities, Gross Realized Gains
 
 
 
 
 
 
 
 
183 
158 
213 
Available-for-sale Securities, Gross Realized Losses
 
 
 
 
 
 
 
 
(265)
(235)
(133)
Available-for-sale Securities, Gross Realized Gain (Loss)
 
 
 
 
 
 
 
 
$ (163)
$ (180)
$ 23 
Investments (Schedule Of Other Investments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Schedule of Cost-method Investments [Line Items]
 
 
Other investments - Total
$ 4,519 
$ 3,291 
Other Investments and Securities, at Cost
4,270 
2,993 
Fair Value
 
 
Schedule of Cost-method Investments [Line Items]
 
 
Investment Funds
251 
269 
Limited Partnerships
730 
709 
Investment Funds Limited Partnerships Partially Owned Investment Companies Total
2,645 
1,498 
Life Settlement Contracts, Fair Value Method, Face Value
248 
222 
Policy Loans Investments
209 
184 
Trading Securities
296 
284 
Other Other Investments
140 
125 
Other investments - Total
4,519 
3,291 
Cost
 
 
Schedule of Cost-method Investments [Line Items]
 
 
Investment Funds
126 
138 
Limited Partnerships
607 
542 
Investment Funds Limited Partnerships Partially Owned Investment Companies Total
2,645 
1,498 
Life Settlement Contracts, Fair Value Method, Face Value
248 
222 
Policy Loans Investments
209 
184 
Trading Securities
295 
284 
Other Other Investments
140 
125 
Other Investments and Securities, at Cost
$ 4,270 
$ 2,993 
Investments (Schedule Of Investments In Partially-Owned Insurance Companies) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Investment [Line Items]
 
 
Carrying Value
$ 666 
$ 653 
Issued Share Capital
1,888 
1,888 
Huatai Group |
CHINA
 
 
Investment [Line Items]
 
 
Carrying Value
447 
430 
Issued Share Capital
624 
624 
Ownership Percentage
20.00% 
20.00% 
Huatai Life Insurance Company |
CHINA
 
 
Investment [Line Items]
 
 
Carrying Value
99 
107 
Issued Share Capital
428 
428 
Ownership Percentage
20.00% 
20.00% 
Freisenbruch-Meyer |
Bermuda
 
 
Investment [Line Items]
 
 
Carrying Value
8 
9 
Issued Share Capital
5 
5 
Ownership Percentage
40.00% 
40.00% 
Russian Reinsurance Company |
Russia
 
 
Investment [Line Items]
 
 
Carrying Value
2 
2 
Issued Share Capital
4 
4 
Ownership Percentage
23.00% 
23.00% 
ABR Reinsurance Capital Holdings Ltd. [Member]
 
 
Investment [Line Items]
 
 
Carrying Value
 
90 
Ownership Percentage
 
11.30% 
ABR Reinsurance Capital Holdings Ltd. [Member] |
Bermuda
 
 
Investment [Line Items]
 
 
Carrying Value
97 
94 
Issued Share Capital
800 
800 
Ownership Percentage
11.00% 
11.00% 
Chubb Arabia Cooperative Insurance Company [Member] |
Saudi Arabia
 
 
Investment [Line Items]
 
 
Carrying Value
13 
11 
Issued Share Capital
$ 27 
$ 27 
Ownership Percentage
30.00% 
30.00% 
Investments (Aggregate Fair Value And Gross Unrealized Loss By Length Of Time Security Has Continuously Been In Unrealized Loss Position) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
$ 43,641 
$ 16,763 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(959)
(601)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
1,310 
1,885 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
(78)
(226)
Investment securities, Unrealized loss position, Total Fair Value
44,951 
18,648 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
(1,037)
(827)
U.S. Treasury and agency
 
 
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
2,216 
996 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(48)
(5)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
0 
153 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
0 
(1)
Investment securities, Unrealized loss position, Total Fair Value
2,216 
1,149 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
(48)
(6)
Foreign
 
 
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
5,918 
3,953 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(99)
(148)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
386 
436 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
(27)
(73)
Investment securities, Unrealized loss position, Total Fair Value
6,304 
4,389 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
(126)
(221)
Corporate securities
 
 
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
7,021 
7,518 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(149)
(371)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
641 
738 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
(44)
(138)
Investment securities, Unrealized loss position, Total Fair Value
7,662 
8,256 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
(193)
(509)
Mortgage backed-securities
 
 
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
8,638 
3,399 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(189)
(42)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
234 
516 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
(5)
(12)
Investment securities, Unrealized loss position, Total Fair Value
8,872 
3,915 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
(194)
(54)
States, municipalities, and political subdivisions
 
 
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
19,448 
556 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(435)
(6)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
49 
42 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
(2)
(2)
Investment securities, Unrealized loss position, Total Fair Value
19,497 
598 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
(437)
(8)
Total fixed maturities
 
 
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
43,241 
16,422 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(920)
(572)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
1,310 
1,885 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
(78)
(226)
Investment securities, Unrealized loss position, Total Fair Value
44,551 
18,307 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
(998)
(798)
Equity securities
 
 
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
199 
131 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(21)
(18)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
0 
0 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
0 
0 
Investment securities, Unrealized loss position, Total Fair Value
199 
131 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
(21)
(18)
Other investments
 
 
Investment [Line Items]
 
 
Investment securities, Unrealized loss position, 0-12 Months, Fair Value
201 
210 
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss
(18)
(11)
Investment securities, Unrealized loss position, Over 12 Months, Fair Value
0 
0 
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss
0 
0 
Investment securities, Unrealized loss position, Total Fair Value
201 
210 
Investment securities, Unrealized loss position, Total Gross Unrealized Loss
$ (18)
$ (11)
Investments (Schedule Of Sources Of Net Investment Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Net Investment Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Gross investment income
 
 
 
 
 
 
 
 
$ 3,006 
$ 2,308 
$ 2,371 
Investment expenses
 
 
 
 
 
 
 
 
(141)
(114)
(119)
Net investment income
744 
739 
708 
674 
532 
549 
562 
551 
2,865 
2,194 
2,252 
Fixed Maturities [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Investment Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Gross investment income
 
 
 
 
 
 
 
 
2,779 
2,157 
2,199 
Short-term investments
 
 
 
 
 
 
 
 
 
 
 
Net Investment Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Gross investment income
 
 
 
 
 
 
 
 
93 
49 
45 
Equity securities
 
 
 
 
 
 
 
 
 
 
 
Net Investment Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Gross investment income
 
 
 
 
 
 
 
 
36 
16 
33 
Other Investments [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Investment Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Gross investment income
 
 
 
 
 
 
 
 
$ 98 
$ 86 
$ 94 
Investments (Schedule Of Components Of Restricted Assets) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Funds Held under Reinsurance Agreements, Asset
$ 13,880 
$ 11,862 
Deposits with non-U.S. regulatory authorities
2,191 
2,075 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
1,461 
1,459 
Deposits with U.S. regulatory authorities
2,203 
1,242 
Other pledged assets
435 
392 
Total restricted assets
$ 20,170 
$ 17,030 
Fair Value Measurements (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2016
Year
Dec. 31, 2015
Dec. 31, 2016
Minimum
Dec. 31, 2016
Maximum
Dec. 31, 2016
Other Investments [Member]
Dec. 31, 2015
Other Investments [Member]
Dec. 31, 2016
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member]
Dec. 31, 2015
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit
Dec. 31, 2015
Guaranteed Minimum Income Benefit
Dec. 31, 2014
Guaranteed Minimum Income Benefit
Dec. 31, 2013
Guaranteed Minimum Income Benefit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
GLB - Lapse rate - lower range
3.00% 
 
 
 
 
 
 
 
 
 
 
 
GLB - Lapse rate - upper range
9.00% 
 
 
 
 
 
 
 
 
 
 
 
GLB - Spike lapse rate - lower range
6.00% 
 
 
 
 
 
 
 
 
 
 
 
GLB - Spike lapse rate - upper range
33.00% 
 
 
 
 
 
 
 
 
 
 
 
GLB - Ultimate lapse rate
11.00% 
 
 
 
 
 
 
 
 
 
 
 
GLB - Length of ultimate lapse rate period, years
2 
 
 
 
 
 
 
 
 
 
 
 
GLB - Adjustment factor for valuable guarantees - lower
15.00% 
 
 
 
 
 
 
 
 
 
 
 
GLB - Adjustment factor for valuable guarantees - upper
75.00% 
 
 
 
 
 
 
 
 
 
 
 
Realized Gain Losses As A Result of Change in Partial Withdrawal Assumption
$ 167 
 
 
 
 
 
 
 
 
 
 
 
Realized Gain Losses As A Result of Change in Lapse Assumption (GLB)
4 
 
 
 
 
 
 
 
 
 
 
 
Realized Gain Losses As A Result of Annuitization Changes (GLB)
221 
 
 
 
 
 
 
 
 
 
 
 
Realized Gain Losses As A Result of Valuation Model Refinement (GLB)
23 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Level 1 to Level 2 transfers, Amount
189 
 
 
 
 
 
 
 
 
 
 
 
Notice period for redemption for alternative investments investment funds, days
 
 
5 days 
120 days 
 
 
 
 
 
 
 
 
GLB liability
 
 
 
 
 
 
 
 
853 
888 
663 
427 
Assets measured using NAV
3,627 
2,477 
 
 
 
 
 
 
 
 
 
 
Other investments
$ 4,519 
$ 3,291 
 
 
$ 25 
$ 25 
$ 3,626 
$ 2,477 
 
 
 
 
Fair value measurements Fair Value Measurements (Annuitization Experience for GMIB Policies) (Details)
12 Months Ended
Dec. 31, 2016
One Year Of Credible Experience [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Percent of GMIB guaranteed value that are represented by clients with several years of annuitization experience
67.00% 
Several Years Of Credible Experience [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Percent of GMIB guaranteed value that are represented by clients with several years of annuitization experience
4.00% 
Several Years Of Credible Experience [Member] |
Subsequent years [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
78.00% 
No Credible Experience [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Percent of GMIB guaranteed value that are represented by clients with several years of annuitization experience
29.00% 
No Credible Experience [Member] |
First Year [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
44.00% 
No Credible Experience [Member] |
Subsequent years [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
31.00% 
Maximum
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
78.00% 1
Maximum |
One Year Of Credible Experience [Member] |
First Year [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
41.00% 
Maximum |
One Year Of Credible Experience [Member] |
Subsequent years [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
78.00% 
Maximum |
Several Years Of Credible Experience [Member] |
Subsequent years [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
0.00% 
Maximum |
No Credible Experience [Member] |
First Year [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
0.00% 
Maximum |
No Credible Experience [Member] |
Subsequent years [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
0.00% 
Minimum
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
0.00% 1
Minimum |
One Year Of Credible Experience [Member] |
First Year [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
2.00% 
Minimum |
One Year Of Credible Experience [Member] |
Subsequent years [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
1.00% 
Minimum |
Several Years Of Credible Experience [Member] |
Subsequent years [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
12.00% 
Minimum |
No Credible Experience [Member] |
First Year [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
19.00% 
Minimum |
No Credible Experience [Member] |
Subsequent years [Member]
 
Annuitization Experience For GMIB Policies [Line Items]
 
Annuitization rate
12.00% 
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
$ 80,115 
$ 43,587 
 
 
Equity securities
814 
497 
 
 
Short-term investments
3,002 
10,446 
 
 
Other investments
4,519 
3,291 
 
 
Securities lending collateral
1,092 
1,046 
 
 
Estimate of Fair Value Measurement [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Other investments
4,519 
3,291 
 
 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
80,115 
43,587 
 
 
Equity securities
814 
497 
 
 
Short-term investments
3,002 
10,446 
 
 
Other investments
868 
789 
 
 
Securities lending collateral
1,092 
1,046 
 
 
Investment derivative instruments, assets
31 
12 
 
 
Other derivative instruments, assets
3 
 
 
 
Separate Account Assets
1,879 
1,552 
 
 
Total assets measured at fair value
87,804 
57,929 
 
 
Investment derivative instruments, liability
54 
13 
 
 
Other derivative instruments, liability
13 
10 
 
 
Total liabilities measured at fair value
626 
632 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
2,870 
2,528 
 
 
Foreign |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
21,440 
13,445 
 
 
Corporate securities |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
24,149 
14,929 
 
 
Mortgage backed-securities |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
14,007 
9,958 
 
 
States, municipalities, and political subdivisions |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
17,649 
2,727 
 
 
Level 1 |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
2,175 
1,712 
 
 
Equity securities
773 
481 
 
 
Short-term investments
1,757 
7,171 
 
 
Other investments
384 
347 
 
 
Investment derivative instruments, assets
31 
12 
 
 
Other derivative instruments, assets
3 
 
 
 
Separate Account Assets
1,784 
1,464 
 
 
Total assets measured at fair value
6,907 
11,187 
 
 
Investment derivative instruments, liability
54 
13 
 
 
Other derivative instruments, liability
 
4 
 
 
Total liabilities measured at fair value
54 
17 
 
 
Level 1 |
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
2,175 
1,712 
 
 
Level 2 |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
77,140 
41,591 
 
 
Short-term investments
1,220 
3,275 
 
 
Other investments
259 
230 
 
 
Securities lending collateral
1,092 
1,046 
 
 
Separate Account Assets
95 
88 
 
 
Total assets measured at fair value
79,806 
46,230 
 
 
Level 2 |
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
695 
816 
 
 
Level 2 |
Foreign |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
21,366 
13,388 
 
 
Level 2 |
Corporate securities |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
23,468 
14,755 
 
 
Level 2 |
Mortgage backed-securities |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
13,962 
9,905 
 
 
Level 2 |
States, municipalities, and political subdivisions |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
17,649 
2,727 
 
 
Level 3 |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
800 
284 
 
 
Equity securities
41 
16 
 
 
Short-term investments
25 
 
 
 
Other investments
225 
212 
 
 
Total assets measured at fair value
1,091 
512 
 
 
Other derivative instruments, liability
13 
6 
 
 
Total liabilities measured at fair value
572 
615 
 
 
Level 3 |
Foreign |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
74 
57 
 
 
Level 3 |
Corporate securities |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
681 
174 
 
 
Level 3 |
Mortgage backed-securities |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Available for sale, Fair Value
45 
53 
 
 
Guaranteed Minimum Income Benefit
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
559 1
609 1 2
406 2 3
193 3
Guaranteed Minimum Income Benefit |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross
559 
609 
 
 
Guaranteed Minimum Income Benefit |
Level 3
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
559 4
609 
 
 
Guaranteed Minimum Income Benefit |
Level 3 |
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross
$ 559 
$ 609 
 
 
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2016
Guaranteed Minimum Income Benefit
Dec. 31, 2015
Guaranteed Minimum Income Benefit
Dec. 31, 2014
Guaranteed Minimum Income Benefit
Dec. 31, 2013
Guaranteed Minimum Income Benefit
Dec. 31, 2016
Level 3
Guaranteed Minimum Income Benefit
Dec. 31, 2015
Level 3
Guaranteed Minimum Income Benefit
Dec. 31, 2016
Minimum
Dec. 31, 2016
Maximum
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
 
$ 559 1
$ 609 1 2
$ 406 2 3
$ 193 3
$ 559 4
$ 609 
 
 
Valuation Technique
Actuarial model 4
 
 
 
 
 
 
 
 
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate
 
 
 
 
 
 
 
3.00% 4
34.00% 4
Annuitization rate
 
 
 
 
 
 
 
0.00% 4
78.00% 4
Fair value measurements Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Other Long-term Investments [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Balance- Beginning of year, assets
$ 212 
$ 204 
$ 196 
Transfers into Level 3, assets
0 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
(2)
(6)
(1)
Net Realized Gains/Losses, Assets
1 
 
 
Purchased, assets
33 
33 
20 
Sales, assets
0 
 
 
Settlements, assets
(19)
(19)
(11)
Balance- End of year, assets
225 
212 
204 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
1 
0 
0 
Short-term investments
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Balance- Beginning of year, assets
 
 
7 
Transfers into Level 3, assets
0 
 
 
Transfers out of Level 3, assets
(50)
 
(7)
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
 
0 
Net Realized Gains/Losses, Assets
0 
 
0 
Purchased, assets
75 
 
0 
Sales, assets
0 
 
0 
Settlements, assets
0 
 
0 
Balance- End of year, assets
25 
 
0 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
 
0 
Equity Securities [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Balance- Beginning of year, assets
16 
2 
4 
Transfers into Level 3, assets
0 
 
 
Transfers out of Level 3, assets
 
 
(2)
Change in Net Unrealized Gains (Losses) included in OCI, Assets
2 
3 
 
Net Realized Gains/Losses, Assets
1 
(2)
 
Purchased, assets
27 
13 
2 
Sales, assets
(5)
 
(2)
Settlements, assets
0 
 
 
Balance- End of year, assets
41 
16 
2 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
(2)
0 
Collateralized Mortgage Backed Securities [Member] |
Available-for-sale Securities [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Balance- Beginning of year, assets
53 
15 
8 
Transfers into Level 3, assets
0 
0 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
(1)
0 
 
Net Realized Gains/Losses, Assets
0 
0 
 
Purchased, assets
1 
41 
8 
Sales, assets
(8)
(2)
 
Settlements, assets
0 
(1)
(1)
Balance- End of year, assets
45 
53 
15 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
0 
0 
Corporate Debt Securities [Member] |
Available-for-sale Securities [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Balance- Beginning of year, assets
174 
187 
166 
Transfers into Level 3, assets
53 
16 
37 
Transfers out of Level 3, assets
(10)
 
(23)
Change in Net Unrealized Gains (Losses) included in OCI, Assets
15 
(1)
(1)
Net Realized Gains/Losses, Assets
(13)
(4)
(5)
Purchased, assets
566 
52 
73 
Sales, assets
(59)
(28)
(38)
Settlements, assets
(45)
(48)
(22)
Balance- End of year, assets
681 
174 
187 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
(11)
(2)
(5)
Foreign Government Debt Securities [Member] |
Available-for-sale Securities [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Balance- Beginning of year, assets
57 
22 
44 
Transfers into Level 3, assets
9 
34 
10 
Transfers out of Level 3, assets
(24)
 
(34)
Change in Net Unrealized Gains (Losses) included in OCI, Assets
1 
(2)
(1)
Net Realized Gains/Losses, Assets
(6)
(1)
(3)
Purchased, assets
70 
15 
15 
Sales, assets
(17)
(3)
(4)
Settlements, assets
(16)
(8)
(5)
Balance- End of year, assets
74 
57 
22 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
$ (5)
$ (1)
$ (4)
Fair value measurements Fair Value Measurements (Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Guaranteed Minimum Income Benefit
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance - Beginning of year, liabilities
$ 609 1 2
$ 406 1 3
$ 193 3
 
Transfers Into Level 3, liabilities
0 2
0 1
0 3
 
Transfers out of Level 3, liabilities
 
 
0 3
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
0 2
0 1
 
 
Net Realized Gains/Losses, Liabilities
(50)2
203 1
213 3
 
Purchased, liabilities
0 2
0 1
0 3
 
Sales, liabilities
0 2
0 1
0 3
 
Settlements, liabilities
0 2
0 1
0 3
 
Balance - End of year, liabilities
559 2
609 1 2
406 1 3
 
GLB liability
853 
888 
663 
427 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities
(50)2
203 1
213 3
 
Other Derivative Instruments Fair Value [Member]
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance - Beginning of year, liabilities
6 
4 
0 
 
Transfers Into Level 3, liabilities
0 
0 
2 
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
0 
 
 
 
Net Realized Gains/Losses, Liabilities
5 
2 
2 
 
Purchased, liabilities
2 
0 
0 
 
Sales, liabilities
0 
0 
 
 
Settlements, liabilities
0 
0 
 
 
Balance - End of year, liabilities
13 
6 
4 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities
$ 5 
$ 2 
$ 2 
 
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
$ 10,670 
$ 8,552 
Fixed maturities held to maturity, at amortized cost (fair value – $10,670 and $8,552)
10,644 
8,430 
Repurchase agreements
1,403 
1,404 
Short-term debt
500 
0 
Long-term debt
12,610 
9,389 
Trust preferred securities
308 
307 
Total liabilities
111,511 
73,171 
US Treasury and Government [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
661 
745 
Foreign
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
667 
785 
Corporate Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
2,795 
3,056 
Mortgage backed-securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
1,428 
1,743 
US States and Political Subdivisions Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
5,119 
2,223 
Reported Value Measurement
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $10,670 and $8,552)
10,644 
8,430 
Repurchase agreements
1,403 
1,404 
Short-term debt
500 
 
Long-term debt
12,610 
9,389 
Trust preferred securities
308 
307 
Total liabilities
14,821 
11,100 
Reported Value Measurement |
US Treasury and Government [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $10,670 and $8,552)
655 
733 
Reported Value Measurement |
Foreign
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $10,670 and $8,552)
640 
763 
Reported Value Measurement |
Corporate Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $10,670 and $8,552)
2,771 
3,054 
Reported Value Measurement |
Mortgage backed-securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $10,670 and $8,552)
1,393 
1,707 
Reported Value Measurement |
US States and Political Subdivisions Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fixed maturities held to maturity, at amortized cost (fair value – $10,670 and $8,552)
5,185 
2,173 
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Repurchase agreements
1,403 
1,404 
Short-term debt, Fair Value
503 
 
Long-term debt, Fair Value
12,998 
9,678 
Trust preferred securities
456 
446 
Total liabilities
15,360 
11,528 
Level 1
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
555 
583 
Repurchase agreements
0 
0 
Short-term debt, Fair Value
0 
 
Long-term debt, Fair Value
0 
0 
Trust preferred securities
0 
0 
Total liabilities
0 
0 
Level 1 |
US Treasury and Government [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
555 
583 
Level 1 |
Foreign
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Level 1 |
Corporate Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Level 1 |
Mortgage backed-securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Level 1 |
US States and Political Subdivisions Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Level 2
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
10,102 
7,955 
Repurchase agreements
1,403 
1,404 
Short-term debt, Fair Value
503 
 
Long-term debt, Fair Value
12,998 
9,678 
Trust preferred securities
456 
446 
Total liabilities
15,360 
11,528 
Level 2 |
US Treasury and Government [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
106 
162 
Level 2 |
Foreign
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
667 
785 
Level 2 |
Corporate Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
2,782 
3,042 
Level 2 |
Mortgage backed-securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
1,428 
1,743 
Level 2 |
US States and Political Subdivisions Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
5,119 
2,223 
Level 3
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
13 
14 
Repurchase agreements
0 
0 
Short-term debt, Fair Value
0 
 
Long-term debt, Fair Value
0 
0 
Trust preferred securities
0 
0 
Total liabilities
0 
0 
Level 3 |
US Treasury and Government [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Level 3 |
Corporate Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
13 
14 
Level 3 |
Mortgage backed-securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Level 3 |
US States and Political Subdivisions Debt Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
$ 0 
$ 0 
Reinsurance (Consolidated Reinsurance) (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Premiums written [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Direct
 
 
 
 
 
 
 
 
$ 31,543,000,000 
$ 19,879,000,000 
$ 20,069,000,000 
Assumed
 
 
 
 
 
 
 
 
3,440,000,000 
3,932,000,000 
3,321,000,000 
Ceded
 
 
 
 
 
 
 
 
(6,838,000,000)
(6,098,000,000)
(5,591,000,000)
Net
 
 
 
 
 
 
 
 
28,145,000,000 
17,713,000,000 
17,799,000,000 
Premiums earned [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Direct
 
 
 
 
 
 
 
 
31,811,000,000 
19,355,000,000 
19,555,000,000 
Assumed
 
 
 
 
 
 
 
 
3,744,000,000 
3,676,000,000 
3,336,000,000 
Ceded
 
 
 
 
 
 
 
 
(6,806,000,000)
(5,818,000,000)
(5,465,000,000)
Net premiums earned
7,059,000,000 
7,688,000,000 
7,405,000,000 
6,597,000,000 
4,207,000,000 
4,719,000,000 
4,360,000,000 
3,927,000,000 
28,749,000,000 
17,213,000,000 
17,426,000,000 
Reinsurance recoveries on losses and loss expenses incurred
 
 
 
 
 
 
 
 
$ 4,100,000,000 
$ 3,100,000,000 
$ 3,100,000,000 
Reinsurance (Reinsurance Recoverable on Ceded Reinsurance) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Reinsurance Disclosures [Abstract]
 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
$ 12,708 
$ 10,741 
$ 11,307 
$ 10,612 
Reinsurance recoverable on paid losses and loss expenses
869 
645 
 
 
Net reinsurance recoverable on losses and loss expenses
$ 13,577 
$ 11,386 
 
 
Reinsurance (Reinsurance Recoverable by Category and Listing of Largest Reinsurers) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Gross reinsurance recoverable
$ 13,877 
 
Provision
300 
328 
% of Gross
2.20% 
 
Largest reinsurers
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Gross reinsurance recoverable
5,064 
 
Provision
59 
 
% of Gross
1.20% 
 
Other reinsurers balances rated A- or better
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Gross reinsurance recoverable
4,699 
 
Provision
52 
 
% of Gross
1.10% 
 
Other reinsurers balances with ratings lower than A- or not rated
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Gross reinsurance recoverable
586 
 
Provision
70 
 
% of Gross
11.90% 
 
Other pools and government agencies
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Gross reinsurance recoverable
577 
 
Provision
11 
 
% of Gross
1.90% 
 
Structured settlements
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Gross reinsurance recoverable
557 
 
Provision
14 
 
% of Gross
2.50% 
 
Other captives
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Gross reinsurance recoverable
2,172 
 
Provision
16 
 
% of Gross
0.70% 
 
Other
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Gross reinsurance recoverable
222 
 
Provision
$ 78 
 
% of Gross
35.10% 
 
Reinsurance Reinsurance (Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts - Schedule Of Guaranteed Minimum Benefits Income And Expense) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Guaranteed Minimum Benefits [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
$ 7,059 
$ 7,688 
$ 7,405 
$ 6,597 
$ 4,207 
$ 4,719 
$ 4,360 
$ 3,927 
$ 28,749 
$ 17,213 
$ 17,426 
Policy benefits and other reserve adjustments
161 
155 
146 
126 
159 
89 
153 
142 
588 
543 
517 
Net realized gains (losses) including OTTI
365 
100 
(216)
(394)
(60)
(397)
126 
(89)
(145)
(420)
(507)
Guaranteed Minimum Death Benefit
 
 
 
 
 
 
 
 
 
 
 
Guaranteed Minimum Benefits [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
55 
61 
71 
Policy benefits and other reserve adjustments
 
 
 
 
 
 
 
 
45 
34 
50 
Guaranteed Minimum Income Benefit
 
 
 
 
 
 
 
 
 
 
 
Guaranteed Minimum Benefits [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
118 
121 
138 
Policy benefits and other reserve adjustments
 
 
 
 
 
 
 
 
52 
45 
36 
Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
48 
(203)
(213)
Gain (loss) recognized in income
 
 
 
 
 
 
 
 
114 
(127)
(111)
Net cash received
 
 
 
 
 
 
 
 
79 
98 
125 
Net (increase) decrease in liability
 
 
 
 
 
 
 
 
$ 35 
$ (225)
$ (236)
Reinsurance (Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts - Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Guaranteed Minimum Death Benefit
 
 
 
 
Net Amount at Risk by Product and Guarantee [Line Items]
 
 
 
 
GLB liability
$ 120 
$ 117 
 
 
Guaranteed Minimum Income Benefit
 
 
 
 
Net Amount at Risk by Product and Guarantee [Line Items]
 
 
 
 
GLB liability
853 
888 
663 
427 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
559 1
609 1 2
406 2 3
193 3
Level 3 |
Guaranteed Minimum Income Benefit
 
 
 
 
Net Amount at Risk by Product and Guarantee [Line Items]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
$ 559 4
$ 609 
 
 
Reinsurance Reinsurance (Net Amount at Risk and 100 Percent Mortality) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2016
GLB
Dec. 31, 2015
GLB
Dec. 31, 2016
GMDB
Dec. 31, 2015
GMDB
Dec. 31, 2016
GMDB with Both Risk(GMDB and GLB) [Member]
Dec. 31, 2015
GMDB with Both Risk(GMDB and GLB) [Member]
Dec. 31, 2016
GLB with Both Risk(GLB and GMDB) [Member]
Dec. 31, 2015
GLB with Both Risk(GLB and GMDB) [Member]
Dec. 31, 2016
Minimum
GLB
Dec. 31, 2016
Minimum
GMDB
Dec. 31, 2016
Minimum
GLB with Both Risk(GLB and GMDB) [Member]
Dec. 31, 2016
Maximum
GLB
Dec. 31, 2016
Maximum
GLB with Both Risk(GLB and GMDB) [Member]
Guaranteed Minimum Benefits [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate
 
 
 
3.75% 
 
 
 
 
 
4.25% 
3.25% 
4.25% 
4.75% 
4.75% 
Net Amount at Risk
 
$ 800 
$ 733 
$ 341 
$ 364 
$ 88 
$ 89 
$ 464 
$ 422 
 
 
 
 
 
Average attained age of all policyholders under all benefits reinsured, years
70 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortality percentage according to Annuity 2000 mortality table
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
Intangible Assets (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Intangible assets subject to amortization
$ 3,800 
$ 789 
 
Intangible assets not subject to amortization
3,000 
98 
 
Amortization of Purchased Intangibles
19 
171 
108 
Other intangible assets
$ 6,800 
$ 887 
 
Intangible Assets (Roll-forward of Goodwill by Business Segment) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
North America Commercial P&C Insurance
Dec. 31, 2015
North America Commercial P&C Insurance
Dec. 31, 2016
North American Personal P&C [Member]
Dec. 31, 2015
North American Personal P&C [Member]
Dec. 31, 2016
North America Agricultural Insurance
Dec. 31, 2015
North America Agricultural Insurance
Dec. 31, 2016
Overseas General Insurance
Dec. 31, 2015
Overseas General Insurance
Dec. 31, 2016
Global Reinsurance
Dec. 31, 2015
Global Reinsurance
Dec. 31, 2016
Life Insurance
Dec. 31, 2015
Life Insurance
Dec. 31, 2015
Fianzas Monterrey
North America Commercial P&C Insurance
Dec. 31, 2015
Fianzas Monterrey
North America Agricultural Insurance
Dec. 31, 2015
Fianzas Monterrey
Overseas General Insurance
Dec. 31, 2015
Fianzas Monterrey
Global Reinsurance
Dec. 31, 2015
Fianzas Monterrey
Life Insurance
Dec. 31, 2015
Fireman's Fund high net worth personal lines [Member]
Apr. 1, 2015
Fireman's Fund high net worth personal lines [Member]
Dec. 31, 2015
Fireman's Fund high net worth personal lines [Member]
North America Commercial P&C Insurance
Dec. 31, 2015
Fireman's Fund high net worth personal lines [Member]
North American Personal P&C [Member]
Dec. 31, 2015
Fireman's Fund high net worth personal lines [Member]
North America Agricultural Insurance
Dec. 31, 2015
Fireman's Fund high net worth personal lines [Member]
Overseas General Insurance
Dec. 31, 2015
Fireman's Fund high net worth personal lines [Member]
Global Reinsurance
Dec. 31, 2015
Fireman's Fund high net worth personal lines [Member]
Life Insurance
Dec. 31, 2016
The Chubb Corporation [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
North America Commercial P&C Insurance
Dec. 31, 2016
The Chubb Corporation [Member]
North American Personal P&C [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
North America Agricultural Insurance
Dec. 31, 2016
The Chubb Corporation [Member]
Overseas General Insurance
Dec. 31, 2016
The Chubb Corporation [Member]
Global Reinsurance
Dec. 31, 2016
The Chubb Corporation [Member]
Life Insurance
Goodwill [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$ 4,796 
$ 4,904 
$ 1,203 
$ 1,211 
$ 196 
$ 0 
$ 134 
$ 134 
$ 2,078 
$ 2,366 
$ 365 
$ 365 
$ 820 
$ 828 
 
 
 
 
 
 
$ 196 
 
 
 
 
 
 
 
$ 10,514 
 
 
 
 
 
 
Purchase price allocation adjustment
 
(4)
 
 
 
0 
 
 
 
 
 
 
 
 
0 
0 
(4)
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
196 
 
0 
196 
0 
0 
0 
0 
10,514 
 
5,714 
2,025 
0 
2,775 
0 
0 
Foreign exchange revaluation and other
22 
(300)
44 
(8)
14 
0 
0 
0 
(36)
(284)
0 
0 
0 
(8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of period
$ 15,332 
$ 4,796 
$ 6,961 
$ 1,203 
$ 2,235 
$ 196 
$ 134 
$ 134 
$ 4,817 
$ 2,078 
$ 365 
$ 365 
$ 820 
$ 820 
 
 
 
 
 
 
$ 196 
 
 
 
 
 
 
 
$ 10,514 
 
 
 
 
 
 
Intangible Assets Intanibgle Assets (Schedule of intangible assets acquired in connection with Chubb Corp)(Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended
Jan. 14, 2016
Dec. 31, 2016
Unearned premium reserves [Member]
Dec. 31, 2016
Agency distribution relationships and renewal rights [Member]
Dec. 31, 2016
Developed Technology Rights [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
Unearned premium reserves [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
Agency distribution relationships and renewal rights [Member]
Dec. 31, 2016
The Chubb Corporation [Member]
Developed Technology Rights [Member]
Dec. 31, 2016
Trademarks [Member]
The Chubb Corporation [Member]
Dec. 31, 2016
Licensing Agreements [Member]
The Chubb Corporation [Member]
Dec. 31, 2016
Syndicate capacity [Member]
The Chubb Corporation [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
Indefinite-lived Intangible Assets Acquired
 
 
 
 
 
 
 
$ 2,800 
$ 50 
$ 10 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
Finite-lived Intangible Assets Acquired
 
 
 
 
1,550 
3,150 
95 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
1 year 
24 years 
3 years 
 
 
 
 
 
 
Total identified intangible assets
$ 7,655 
 
 
 
 
 
 
 
 
 
Intangible Assets (VOBA) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Roll Forward of VOBA
 
 
 
VOBA balance, beginning of year
$ 395 
$ 466 
$ 536 
Amortization of Value of Business Acquired (VOBA)
(41)
(42)
(51)
VOBA Foreign exchange revaluation
1 
(29)
(19)
VOBA balance, end of year
355 
395 
466 
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
2017, VOBA
35 
 
 
2018, VOBA
31 
 
 
2019, VOBA
27 
 
 
2020, VOBA
23 
 
 
2021, VOBA
20 
 
 
Total, VOBA
$ 136 
 
 
Unpaid losses and loss expenses (Narrative) (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2016
Brandywine Run-off [Member]
Dec. 31, 2015
Brandywine Run-off [Member]
Dec. 31, 2011
Brandywine Run-off [Member]
Dec. 31, 2010
Brandywine Run-off [Member]
Dec. 31, 2004
Brandywine Run-off [Member]
Dec. 31, 2016
Westchester and Brandywine Run-off [Member]
Dec. 31, 2016
North America Commercial P&C Insurance
Dec. 31, 2015
North America Commercial P&C Insurance
Dec. 31, 2014
North America Commercial P&C Insurance
Dec. 31, 2016
North America Commercial P&C Insurance
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance
Long Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance
Short Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance
Short Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance
2011 and prior [Member]
Directors and Officers Liability Insurance [Member]
Long Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance
Accident Year 2010 and Prior [Member]
Commercial Excess and Umbrella [Member]
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance
Accident Year 2010 and Prior [Member]
Directors and Officers Liability Insurance [Member]
Long Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance
Accident years 2012 and prior [Member]
Professional Errors and Omissions Insurance [Member]
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance
Short-duration Insurance Contracts, Accident Year 2010 [Member]
Auto Liability Excess Lines [Member]
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance
Short-duration Insurance Contracts, Accident Year 2010 [Member]
General Liability [Member]
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance
Accident year 2010 and 2011 [Member]
Commercial Excess and Umbrella [Member]
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance
Short-duration Insurance Contracts, Accident Year 2013 [Member]
Credit-related [Member]
Short Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance
Short-duration Insurance Contracts, Accident Year 2013 [Member]
Excess Property Lines [Member]
Short Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance
Accident year 2014 and 2015 [Member]
Property and Inland Marine [Member]
Short Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance
Accident year 2012 and 2014 [Member]
Credit-related [Member]
Short Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance - Workers' Compensation [Member]
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance - Workers' Compensation [Member]
Long Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance - Workers' Compensation [Member]
Short-duration Insurance Contracts, Accident Year 2015 [Member]
Long Tail [Member]
Dec. 31, 2016
North America Commercial P&C Insurance - Workers' Compensation [Member]
Accident years 2012 and prior [Member]
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance - Workers' Compensation [Member]
Short-duration Insurance Contracts, Accident Year 2014 [Member]
Long Tail [Member]
Dec. 31, 2015
North America Commercial P&C Insurance - Workers' Compensation [Member]
Accident year 2009 and prior [Member]
Long Tail [Member]
Dec. 31, 2015
North America Personal P&C Insurance [Member]
Dec. 31, 2014
North America Personal P&C Insurance [Member]
Dec. 31, 2016
North America Personal P&C Insurance [Member]
Personal homeowner [Member]
Dec. 31, 2016
North America Agricultural Insurance
Dec. 31, 2015
North America Agricultural Insurance
Dec. 31, 2014
North America Agricultural Insurance
Dec. 31, 2016
Global Reinsurance
Dec. 31, 2015
Global Reinsurance
Dec. 31, 2014
Global Reinsurance
Dec. 31, 2015
Global Reinsurance
Individual Legacy Liability [Member]
Dec. 31, 2015
Global Reinsurance
Individual Legacy Liability [Member]
Long Tail [Member]
Dec. 31, 2015
Global Reinsurance
Individual Legacy Liability [Member]
Short Tail [Member]
Dec. 31, 2016
Global Reinsurance
2011 and prior [Member]
Professional Errors and Omissions Insurance [Member]
Dec. 31, 2016
Global Reinsurance
2011 and prior [Member]
Casualty and Financial [Member]
Dec. 31, 2015
Global Reinsurance
Accident Year 2010 and Prior [Member]
Professional Errors and Omissions Insurance [Member]
Dec. 31, 2015
Global Reinsurance
Accident year 2009 and prior [Member]
Casualty and Financial [Member]
Dec. 31, 2016
Global Reinsurance
UNITED STATES
Dec. 31, 2016
Global Reinsurance
UNITED STATES
Short-duration Insurance Contracts, Accident Year 2007 [Member]
Catastrophe [Member]
Dec. 31, 2016
Global Reinsurance
UNITED STATES
Short-duration Insurance Contracts, Accident Year 2007 [Member]
Non-catastrophe [Member]
Dec. 31, 2016
Global Reinsurance
UNITED STATES
Short-duration Insurance Contracts, Accident Year 2015 [Member]
Non-catastrophe [Member]
Dec. 31, 2016
Global Reinsurance
UNITED STATES
Accident year 2007 and after [Member]
Non-catastrophe [Member]
Dec. 31, 2016
Overseas General Insurance
Dec. 31, 2015
Overseas General Insurance
Dec. 31, 2014
Overseas General Insurance
Dec. 31, 2016
Overseas General Insurance
Long Tail [Member]
Dec. 31, 2015
Overseas General Insurance
Long Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Short Tail [Member]
Dec. 31, 2015
Overseas General Insurance
Short Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Casualty and Financial [Member]
Long Tail [Member]
Dec. 31, 2015
Overseas General Insurance
Casualty and Financial [Member]
Long Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Individual Legacy Liability [Member]
Long Tail [Member]
Dec. 31, 2015
Overseas General Insurance
Individual Legacy Liability [Member]
Long Tail [Member]
Dec. 31, 2015
Overseas General Insurance
2011 and prior [Member]
Casualty and Financial [Member]
Long Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Accident years 2012 and prior [Member]
Casualty and Financial [Member]
Long Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Accident years 2012 and prior [Member]
Aviation [Member]
Short Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Accident year 2013 to 2015 [Member]
Long Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Accident year 2013 to 2015 [Member]
Accident and Health [Member]
Short Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Accident year 2012 to 2014 [Member]
Property Insurance Product Line [Member]
Short Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Accident year 2010 to 2014 [Member]
energy [Member]
Short Tail [Member]
Dec. 31, 2015
Overseas General Insurance
Accident Year 2013 and prior [Member]
Property and Casualty [Member]
Short Tail [Member]
Dec. 31, 2015
Overseas General Insurance
Accident year 2013 and 2014 [Member]
Accident and Health [Member]
Short Tail [Member]
Dec. 31, 2015
Overseas General Insurance
Accident year 2012 and 2013 [Member]
Consumer [Member]
Short Tail [Member]
Dec. 31, 2016
Overseas General Insurance
Europe [Member]
Dec. 31, 2015
Overseas General Insurance
Europe [Member]
Accident year 2012 to 2014 [Member]
Casualty and Financial [Member]
Long Tail [Member]
Dec. 31, 2016
Overseas General Insurance - Non-Casualty [Member]
Latin America [Member]
Dec. 31, 2014
Corporate Segment [Member]
Dec. 31, 2016
Corporate Segment [Member]
Discontinued Operations [Member]
Dec. 31, 2015
Corporate Segment [Member]
Discontinued Operations [Member]
Dec. 31, 2015
Corporate Segment [Member]
Westchester and Brandywine Run-off [Member]
Dec. 31, 2016
Corporate Segment [Member]
Long Tail [Member]
Dec. 31, 2015
Corporate Segment [Member]
Long Tail [Member]
Dec. 31, 2016
Corporate Segment [Member]
Asbestos & Environmental [Member]
Long Tail [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior Year Claims and Claims Adjustment Expense
$ (1,204,000,000)
$ (546,000,000)
$ (527,000,000)
 
 
 
 
 
 
 
$ 778,000,000 
$ 264,000,000 
$ 378,000,000 
$ 650,000,000 
$ 155,000,000 
$ 128,000,000 
$ 109,000,000 
$ 220,000,000 
$ 264,000,000 
$ 108,000,000 
$ 58,000,000 
$ 32,000,000 
$ 26,000,000 
$ (33,000,000)
$ 37,000,000 
$ 34,000,000 
$ 79,000,000 
$ 39,000,000 
$ 141,000,000 
$ 21,000,000 
$ 40,000,000 
$ 92,000,000 
$ 52,000,000 
$ 29,000,000 
$ (25,000,000)
$ (24,000,000)
$ (27,000,000)
$ 72,000,000 
$ 45,000,000 
$ (34,000,000)
$ 78,000,000 
$ 119,000,000 
$ 63,000,000 
$ 54,000,000 
$ 42,000,000 
$ 12,000,000 
$ 30,000,000 
$ 42,000,000 
$ 33,000,000 
$ 23,000,000 
 
 
 
 
 
$ 423,000,000 
$ 343,000,000 
$ 391,000,000 
$ 191,000,000 
$ 166,000,000 
$ 232,000,000 
$ 177,000,000 
$ 165,000,000 
$ 140,000,000 
$ 25,000,000 
$ 26,000,000 
$ 175,000,000 
$ 257,000,000 
$ 28,000,000 
$ (92,000,000)
$ 28,000,000 
$ 97,000,000 
$ 43,000,000 
$ 90,000,000 
$ 34,000,000 
$ 26,000,000 
 
$ (35,000,000)
 
$ (247,000,000)
$ (48,000,000)
$ (30,000,000)
$ (170,000,000)
$ (189,000,000)
$ (200,000,000)
$ (141,000,000)
Loss by Geographic Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
70.00% 
70.00% 
50.00% 
90.00% 
75.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
 
35.00% 
 
 
 
 
 
 
 
Prior period net unpaid reserves represented by prior period development (percent)
 
 
 
 
 
 
 
 
 
 
 
 
1.40% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.10% 
 
 
 
 
 
 
0.20% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.90% 
 
 
 
 
 
 
NICO reinsurance protection on losses and loss expenses
 
 
 
 
 
 
 
 
 
438,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NICO retention for losses and loss expenses incurred on or before 12/31/1996
 
 
 
 
 
 
 
 
 
721,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Incurred activity
16,052,000,000 
9,484,000,000 
9,649,000,000 
 
512,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NICO pro-rata share of reinsurance protection (percent)
 
 
 
 
 
 
 
 
 
75.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NICO reinsurance protection on losses and loss expenses incurred on or before 12/31/1996, net of retenion
 
 
 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividend retention fund established by INA Financial Corporation
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Required minimum balance under the dividend retention fund
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contributions to the dividend retention fund
 
 
 
 
 
 
35,000,000 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum contribution from the dividend retention fund to Century not required for XOL agreement
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance coverage to Century provided by ACE INA under XOL
 
 
 
 
800,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory capital and surplus
 
 
 
 
25,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate reinsurance balances ceded by active ACE companies to Century
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability for Claims and Claims Adjustment Expense
60,540,000,000 
37,303,000,000 
38,315,000,000 
37,443,000,000 
2,000,000,000 
1,900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Surplus note
 
 
 
 
 
 
 
 
$ 100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses Unpaid Losses and loss expenses, claims development (Cumulative Net incurred Loss and Allocated Loss Adjustment Expense) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Dec. 31, 2007
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
$ 45,304 
 
 
 
 
 
 
 
 
 
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
10,172 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
4,814 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
2,226 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
7,584 
 
 
 
 
 
 
 
 
 
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
33,251 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
17,665 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
1,726 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
17,312 
 
 
 
 
 
 
 
 
 
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
16,493 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
14,386 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
143 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
2,250 
 
 
 
 
 
 
 
 
 
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
6,241 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
4,711 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
241 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
1,771 
 
 
 
 
 
 
 
 
 
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
19,819 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
17,837 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
39 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
2,021 
 
 
 
 
 
 
 
 
 
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
11,747 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
6,405 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
339 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
5,681 
 
 
 
 
 
 
 
 
 
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
14,557 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
12,520 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
65 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
2,102 
 
 
 
 
 
 
 
 
 
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,432 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,278 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
154 
 
 
 
 
 
 
 
 
 
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
4,049 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,814 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented
357 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net
1,592 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
913 
933 
934 
944 
943 
976 
1,018 
1,026 
1,042 
1,068 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
171 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
641 
625 
606 
580 
550 
502 
451 
386 
281 
121 
Short-duration Insurance Contracts, Number of Reported Claims
351,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,105 
3,253 
3,300 
3,318 
3,447 
3,692 
3,755 
3,719 
3,760 
3,682 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
249 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,757 
2,700 
2,618 
2,497 
2,301 
1,980 
1,488 
922 
447 
76 
Short-duration Insurance Contracts, Number of Reported Claims
21,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,139 
1,138 
1,139 
1,138 
1,137 
1,151 
1,168 
1,181 
1,190 
1,271 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,135 
1,134 
1,133 
1,130 
1,126 
1,124 
1,117 
1,076 
987 
563 
Short-duration Insurance Contracts, Number of Reported Claims
906,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
596 
597 
591 
599 
611 
611 
630 
659 
682 
726 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
24 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
564 
558 
547 
540 
527 
489 
452 
379 
274 
112 
Short-duration Insurance Contracts, Number of Reported Claims
24,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,398 
1,398 
1,400 
1,402 
1,411 
1,416 
1,431 
1,460 
1,538 
1,549 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
6 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,387 
1,387 
1,384 
1,377 
1,370 
1,353 
1,328 
1,267 
1,182 
843 
Short-duration Insurance Contracts, Number of Reported Claims
127,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
848 
867 
888 
932 
1,021 
1,080 
1,163 
1,180 
1,174 
1,136 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
21 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
787 
776 
743 
715 
680 
631 
550 
425 
287 
95 
Short-duration Insurance Contracts, Number of Reported Claims
37,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,184 
1,177 
1,178 
1,181 
1,165 
1,189 
1,191 
1,209 
1,214 
1,224 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
5 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,164 
1,159 
1,152 
1,147 
1,140 
1,124 
1,091 
1,032 
861 
426 
Short-duration Insurance Contracts, Number of Reported Claims
183,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
86 
87 
87 
87 
88 
90 
91 
97 
106 
107 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
2 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
86 
86 
86 
85 
85 
84 
81 
77 
65 
23 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2007 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
558 
564 
570 
581 
606 
620 
641 
670 
670 
655 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
70 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
445 
437 
417 
393 
363 
318 
267 
200 
122 
52 
Short-duration Insurance Contracts, Number of Reported Claims
1,470 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
932 
948 
952 
952 
966 
991 
997 
993 
1,018 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
185 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
627 
602 
574 
542 
500 
436 
370 
276 
125 
 
Short-duration Insurance Contracts, Number of Reported Claims
333,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,036 
3,142 
3,217 
3,290 
3,551 
3,682 
3,708 
3,719 
3,716 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
335 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,591 
2,496 
2,394 
2,169 
1,837 
1,500 
987 
471 
115 
 
Short-duration Insurance Contracts, Number of Reported Claims
21,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,845 
1,846 
1,859 
1,849 
1,845 
1,836 
1,852 
1,880 
1,927 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
29 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,813 
1,813 
1,807 
1,800 
1,797 
1,766 
1,708 
1,607 
929 
 
Short-duration Insurance Contracts, Number of Reported Claims
995,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
847 
853 
849 
856 
856 
879 
910 
942 
903 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
18 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
815 
807 
798 
777 
748 
690 
604 
464 
210 
 
Short-duration Insurance Contracts, Number of Reported Claims
25,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,659 
1,659 
1,667 
1,675 
1,693 
1,722 
1,746 
1,777 
1,777 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
6 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,648 
1,644 
1,642 
1,636 
1,620 
1,584 
1,518 
1,406 
974 
 
Short-duration Insurance Contracts, Number of Reported Claims
139,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,267 
1,273 
1,290 
1,360 
1,398 
1,389 
1,386 
1,301 
1,189 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
105 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,036 
986 
931 
859 
759 
618 
455 
295 
120 
 
Short-duration Insurance Contracts, Number of Reported Claims
37,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,269 
1,280 
1,284 
1,287 
1,302 
1,294 
1,318 
1,360 
1,364 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
14 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,233 
1,233 
1,225 
1,215 
1,206 
1,183 
1,120 
985 
479 
 
Short-duration Insurance Contracts, Number of Reported Claims
206,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
208 
209 
210 
208 
206 
206 
206 
214 
223 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
208 
208 
208 
207 
205 
194 
169 
139 
65 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2008 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
474 
475 
480 
480 
503 
513 
528 
512 
488 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
55 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
373 
362 
343 
319 
286 
239 
187 
113 
46 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,292 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
877 
889 
902 
908 
928 
933 
933 
960 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
220 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
559 
535 
506 
463 
412 
347 
260 
108 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
283,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,060 
3,130 
3,205 
3,454 
3,556 
3,599 
3,630 
3,682 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
447 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,461 
2,307 
2,118 
1,813 
1,460 
979 
425 
86 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
21,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,369 
1,355 
1,353 
1,356 
1,357 
1,367 
1,395 
1,366 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
28 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,335 
1,332 
1,322 
1,280 
1,268 
1,213 
1,118 
630 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,067,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
546 
548 
557 
593 
640 
665 
710 
718 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
16 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
520 
511 
500 
471 
432 
378 
281 
106 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
20,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,532 
1,536 
1,536 
1,543 
1,551 
1,565 
1,595 
1,608 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
9 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,519 
1,511 
1,501 
1,484 
1,437 
1,345 
1,234 
886 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
125,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,191 
1,195 
1,300 
1,411 
1,414 
1,400 
1,357 
1,214 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
124 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
950 
860 
791 
734 
642 
505 
330 
119 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
36,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,137 
1,143 
1,143 
1,160 
1,176 
1,203 
1,288 
1,315 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
8 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,116 
1,113 
1,106 
1,096 
1,073 
1,010 
882 
449 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
234,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
100 
100 
100 
103 
105 
105 
113 
99 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
98 
98 
98 
96 
95 
90 
79 
41 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2009 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
354 
365 
383 
401 
409 
404 
404 
356 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
35 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
278 
265 
246 
224 
191 
151 
109 
49 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
921 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
972 
994 
1,004 
1,008 
1,003 
988 
985 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
254 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
612 
587 
548 
495 
414 
303 
125 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
304,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,045 
3,169 
3,334 
3,474 
3,495 
3,468 
3,507 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
559 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,294 
2,125 
1,757 
1,421 
981 
501 
97 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
20,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,420 
1,424 
1,432 
1,442 
1,486 
1,568 
1,509 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
15 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,401 
1,400 
1,394 
1,374 
1,335 
1,231 
703 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,054,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
608 
606 
639 
668 
727 
736 
737 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
27 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
571 
560 
517 
481 
430 
334 
144 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
21,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,823 
1,828 
1,832 
1,836 
1,853 
1,876 
1,868 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
11 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,803 
1,792 
1,770 
1,727 
1,669 
1,521 
1,152 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
149,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,118 
1,239 
1,284 
1,349 
1,280 
1,203 
1,170 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
162 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
843 
794 
707 
602 
461 
266 
106 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
38,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,392 
1,400 
1,413 
1,424 
1,424 
1,449 
1,434 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
30 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,334 
1,328 
1,316 
1,278 
1,218 
1,028 
523 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
252,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
180 
179 
178 
172 
173 
179 
155 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
6 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
173 
173 
171 
167 
157 
137 
40 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2010 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
457 
467 
472 
485 
479 
472 
442 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
84 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
331 
315 
283 
253 
209 
149 
71 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
877 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
954 
984 
982 
978 
963 
957 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
276 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
560 
529 
480 
410 
294 
119 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
287,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,360 
3,472 
3,539 
3,525 
3,498 
3,437 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
856 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,310 
2,045 
1,638 
1,069 
538 
111 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
21,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,915 
1,895 
1,916 
1,922 
1,957 
1,985 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
43 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,856 
1,832 
1,822 
1,742 
1,585 
942 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,045,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
651 
659 
675 
703 
717 
696 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
40 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
585 
561 
522 
455 
335 
131 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
23,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
2,158 
2,162 
2,171 
2,183 
2,207 
2,205 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
17 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,127 
2,103 
2,049 
1,969 
1,833 
1,358 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
168,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,062 
1,140 
1,217 
1,222 
1,232 
1,239 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
240 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
686 
610 
511 
382 
240 
88 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
39,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,620 
1,631 
1,644 
1,677 
1,728 
1,665 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
1 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,563 
1,549 
1,519 
1,465 
1,272 
631 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
268,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
222 
221 
220 
224 
224 
227 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
1 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
217 
214 
198 
175 
151 
75 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2011 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
458 
467 
472 
474 
461 
449 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
67 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
330 
304 
270 
227 
171 
80 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
796 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
932 
967 
957 
940 
956 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
321 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
483 
435 
365 
272 
111 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
288,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,441 
3,480 
3,519 
3,529 
3,489 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
1,168 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,953 
1,535 
1,028 
532 
114 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
21,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,901 
1,909 
1,938 
1,971 
2,069 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
53 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,830 
1,810 
1,745 
1,612 
727 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,027,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
633 
668 
682 
714 
748 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
60 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
538 
484 
413 
307 
108 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
24,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
2,183 
2,189 
2,181 
2,181 
2,183 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
25 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,115 
2,061 
1,955 
1,804 
1,175 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
173,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,269 
1,278 
1,257 
1,196 
1,253 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
373 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
677 
569 
422 
243 
74 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
40,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,400 
1,401 
1,442 
1,473 
1,472 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
43 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,311 
1,290 
1,233 
1,050 
553 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
283,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
141 
142 
149 
154 
175 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
4 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
129 
125 
117 
95 
29 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2012 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
425 
440 
440 
437 
440 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
30 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
334 
301 
260 
202 
93 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
677 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,047 
1,043 
1,031 
1,013 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
374 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
499 
415 
286 
107 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
301,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,477 
3,481 
3,479 
3,490 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
1,588 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,489 
1,089 
468 
101 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
22,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,383 
1,359 
1,446 
1,487 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
73 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,291 
1,241 
1,119 
630 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,068,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
621 
632 
640 
619 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
121 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
452 
372 
292 
115 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
21,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,894 
1,891 
1,883 
1,855 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
29 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,782 
1,683 
1,500 
1,040 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
126,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,274 
1,231 
1,219 
1,229 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
537 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
555 
413 
260 
87 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
41,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,436 
1,474 
1,521 
1,530 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
59 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,301 
1,272 
1,088 
569 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
281,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
105 
109 
117 
117 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
(2)
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
103 
98 
85 
38 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2013 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
361 
362 
363 
359 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
54 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
247 
206 
158 
72 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
417 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,129 
1,111 
1,106 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
526 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
408 
296 
113 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
338,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,585 
3,501 
3,460 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
1,969 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,124 
576 
116 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
23,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,681 
1,755 
1,755 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
103 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,539 
1,405 
833 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,095,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
651 
658 
655 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
176 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
387 
289 
113 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
22,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
2,189 
2,203 
2,202 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
141 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,923 
1,762 
1,308 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
134,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,285 
1,286 
1,242 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
626 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
459 
289 
114 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
41,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,622 
1,664 
1,601 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
63 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,394 
1,209 
622 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
269,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
142 
142 
125 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
6 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
127 
112 
56 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2014 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
373 
367 
367 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
69 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
240 
199 
99 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
428 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,157 
1,179 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
588 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
302 
117 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
338,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,668 
3,502 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
2,639 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
544 
117 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
26,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,828 
1,839 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
281 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,334 
712 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,164,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
525 
538 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
211 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
205 
80 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
20,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
2,546 
2,491 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
213 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
2,081 
1,497 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
137,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,252 
1,186 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
719 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
283 
93 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
41,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,812 
1,705 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
192 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,315 
692 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
256,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
105 
98 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
9 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
87 
50 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2015 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
333 
328 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
87 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
173 
95 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
370 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,259 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
905 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
123 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
275,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
3,474 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
3,082 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
142 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
19,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
2,012 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
828 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
852 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
1,098,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
563 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
408 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
74 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
17,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
North America Personal P&C Insurance [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
2,437 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
609 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
1,452 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
120,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
Overseas General Insurance - Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,181 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
914 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
129 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
29,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
1,685 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
424 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
789 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
191,000 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
Global Reinsurance Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
143 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
29 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
50 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
0 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Accident Year 2016 [Member] |
Global Reinsurance Non-Property [Member]
 
 
 
 
 
 
 
 
 
 
Claims Development [Line Items]
 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net
256 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net
141 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net
$ 63 
 
 
 
 
 
 
 
 
 
Short-duration Insurance Contracts, Number of Reported Claims
118 
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses Unpaid losses and loss expenses (Average Annual Payout) (Details)
Dec. 31, 2016
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
12.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
17.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
11.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
8.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
6.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
4.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
3.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
3.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
2.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
2.00% 
North America Commercial P&C Insurance - Liability [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
3.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
12.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
16.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
15.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
12.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
10.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
6.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
4.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
3.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
2.00% 
North America Commercial P&C Insurance - Other Casualty [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
19.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
29.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
16.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
11.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
7.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
5.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
2.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
1.00% 
North America Commercial P&C Insurance - Non-Casualty [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
46.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
37.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
7.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
4.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
0.00% 
North America Personal P&C Insurance [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
59.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
24.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
7.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
4.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
2.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
0.00% 
Overseas General Insurance - Casualty [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
9.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
15.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
14.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
12.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
9.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
7.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
5.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
5.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
4.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
1.00% 
Overseas General Insurance - Non-Casualty [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
39.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
37.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
12.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
4.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
2.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
0.00% 
Global Reinsurance Property [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
33.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
41.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
12.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
8.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
4.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
1.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
0.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
0.00% 
Global Reinsurance Non-Property [Member]
 
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
 
Short-duration Insurance Contracts, Historical Claims Duration, Year One
18.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Two
19.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Three
13.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Four
11.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Five
8.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Six
7.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven
5.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight
4.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine
3.00% 
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten
2.00% 
Unpaid losses and loss expenses Unpaid losses and loss expenses (Reconciliation of reserve Balances to Liability for Unpaid Loss)(Details) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
$ 45,304 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
12,840 
 
 
 
Short-duration Insurance Contracts, Liability for Unpaid Claims and Claim Adjustment Expense, Aggregate Reconciling Items
741 
 
 
 
Unpaid unallocated loss adjustment expenses
1,655 
 
 
 
Unpaid losses and loss expenses
60,540 
37,303 
38,315 
37,443 
North America Commercial P&C Insurance - Workers' Compensation [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
7,584 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
1,872 
 
 
 
North America Commercial P&C Insurance - Liability [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
17,312 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
4,273 
 
 
 
North America Commercial P&C Insurance - Non-Casualty [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
2,250 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
555 
 
 
 
North America Commercial P&C Insurance - Other Casualty [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
1,771 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
437 
 
 
 
North America Personal P&C Insurance [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
2,021 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
(168)
 
 
 
Overseas General Insurance - Non-Casualty [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
2,102 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
968 
 
 
 
Overseas General Insurance - Casualty [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
5,681 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
2,617 
 
 
 
Global Reinsurance Property [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
154 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
11 
 
 
 
Global Reinsurance Non-Property [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
1,592 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
(114)
 
 
 
Other Short-duration Insurance Product Line [Member]
 
 
 
 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
 
 
 
 
Unpaid Loss and Allocated Loss Adjustment Expenses, Net
4,837 
 
 
 
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments
$ 1,825 
 
 
 
Unpaid losses and loss expenses (Unpaid Losses and Loss Expenses Rollforward) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Unpaid Losses and Loss Expenses [Roll Forward]
 
 
 
Gross unpaid losses and loss expenses, beginning of year
$ 37,303 
$ 38,315 
$ 37,443 
Reinsurance recoverable on unpaid losses
(10,741)
(11,307)
(10,612)
Balance at beginning of year
26,562 
27,008 
26,831 
Acquistion of subsidiaries
21,402 
417 
320 
Total
47,964 
27,425 
27,151 
Net losses and loss expenses incurred in respect of losses incurring in Current Year
17,256 
10,030 
10,176 
Prior Year Claims and Claims Adjustment Expense
(1,204)
(546)
(527)
Total
16,052 
9,484 
9,649 
Net losses and loss expenses incurred in respect of losses paid in Current Year
5,899 
4,053 
3,975 
Net losses and loss expenses incurred in respect of losses paid in Prior Year
9,816 
5,612 
5,260 
Total
15,715 
9,665 
9,235 
Foreign currency revaluation and other
469 
682 
557 
Balance at end of year
47,832 
26,562 
27,008 
Reinsurance recoverable on unpaid losses
(12,708)
(10,741)
(11,307)
Gross unpaid losses and loss expenses, end of year
$ 60,540 
$ 37,303 
$ 38,315 
Unpaid losses and loss expenses (A&E Loss Roll-forward) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Liability For Asbestos And Environmental Claims Net Roll Forward
 
 
Balance (gross) at December 31, 2015
$ 1,550 
 
Balance (net) at December 31, 2015
980 
 
Acquired reserves, gross
859 
 
Acquired reserves, net
822 
 
Incurred activity, gross
415 
 
Incurred activity, net
164 
162 
Paid activity, gross
(521)
 
Paid activity, net
(357)
 
Balance (gross) at December 31, 2016
2,303 
1,550 
Balance (net) at December 31, 2016
1,609 
980 
Brandywine [Member]
 
 
Liability For Asbestos And Environmental Claims Net Roll Forward
 
 
Balance (net) at December 31, 2016
760 
782 
Westchester Specialty [Member]
 
 
Liability For Asbestos And Environmental Claims Net Roll Forward
 
 
Balance (net) at December 31, 2016
112 
115 
Chubb Corp [Member]
 
 
Liability For Asbestos And Environmental Claims Net Roll Forward
 
 
Balance (net) at December 31, 2016
657 
0 
Other Segments [Member]
 
 
Liability For Asbestos And Environmental Claims Net Roll Forward
 
 
Balance (net) at December 31, 2016
80 
83 
Environmental
 
 
Liability For Asbestos And Environmental Claims Net Roll Forward
 
 
Balance (gross) at December 31, 2015
199 
 
Balance (net) at December 31, 2015
149 
 
Acquired reserves, gross
371 
 
Acquired reserves, net
354 
 
Incurred activity, gross
104 
 
Incurred activity, net
69 
 
Paid activity, gross
(97)
 
Paid activity, net
(82)
 
Balance (gross) at December 31, 2016
577 
 
Balance (net) at December 31, 2016
490 
 
Asbestos
 
 
Liability For Asbestos And Environmental Claims Net Roll Forward
 
 
Balance (gross) at December 31, 2015
1,351 
 
Balance (net) at December 31, 2015
831 
 
Acquired reserves, gross
488 
 
Acquired reserves, net
468 
 
Incurred activity, gross
311 
 
Incurred activity, net
95 
 
Paid activity, gross
(424)
 
Paid activity, net
(275)
 
Balance (gross) at December 31, 2016
1,726 
 
Balance (net) at December 31, 2016
$ 1,119 
 
Taxation (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Examination [Line Items]
 
 
 
Valuation allowance
$ 78 
$ 38 
 
Unrecognized tax benefits that would affect the effective tax rate
17 
16 
 
Tax-related interest and penalties reported in the consolidated statements of operations
1 
1 
(1)
Liabilities recorded for tax-related interest and penalties
4 
 
 
Domestic Tax Authority [Member]
 
 
 
Income Tax Examination [Line Items]
 
 
 
Net operating loss carry-forwards
356 
 
 
Switzerland
 
 
 
Income Tax Examination [Line Items]
 
 
 
Applicable income tax rates
7.83% 
 
 
Foreign Tax Authority [Member]
 
 
 
Income Tax Examination [Line Items]
 
 
 
Foreign tax credit carry-forward
$ 114 
 
 
Bermuda
 
 
 
Income Tax Examination [Line Items]
 
 
 
Applicable income tax rates
0.00% 
 
 
UNITED STATES
 
 
 
Income Tax Examination [Line Items]
 
 
 
Applicable income tax rates
35.00% 
 
 
U.K.
 
 
 
Income Tax Examination [Line Items]
 
 
 
Applicable income tax rates
20.00% 
 
 
Taxation (Provision For Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Examination [Line Items]
 
 
 
Income (Loss) from Continuing Operations before Income Taxes, Domestic
$ 766 
$ 469 
$ 404 
Income (Loss) from Continuing Operations before Income Taxes, Foreign
4,184 
2,827 
3,083 
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest
4,950 
3,296 
3,487 
Current tax expense
824 
304 
481 
Deferred tax expense
(9)
158 
153 
Provision for income taxes
815 
462 
634 
Domestic Tax Authority [Member]
 
 
 
Income Tax Examination [Line Items]
 
 
 
Current tax expense
97 
38 
31 
Deferred tax expense
(27)
4 
9 
Foreign Tax Authority [Member]
 
 
 
Income Tax Examination [Line Items]
 
 
 
Current tax expense
727 
266 
450 
Deferred tax expense
$ 18 
$ 154 
$ 144 
Taxation (Reconciliation Of The Difference Between The Provision for Income Taxes and the Expected Tax Provision at Swiss Statutory Income Tax Rate) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
Expected tax provision at Swiss statutory rate
$ 388 
$ 258 
$ 273 
Taxes on earnings subject to rates other that Swiss statutory rate
582 
193 
224 
Income Tax Reconciliation, Change To Deferred Taxes Related To Unrealized Foreign Exchange
0 1
0 1
139 1
Tax exempt interest and dividends received deduction, net of proration
(200)
(32)
(33)
Net witholding taxes
20 
35 
33 
Change in valuation allowance
(1)
2 
(20)
Other
26 
6 
18 
Provision for income taxes
$ 815 
$ 462 
$ 634 
Taxation (Components Of Net Deferred Tax Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Deferred Tax Assets, Gross [Abstract]
 
 
Loss reserve discount
$ 1,269 
$ 663 
Unearned premium 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, Gross [Abstract]
 
 
Deferred policy acquisition costs
842 
412 
VOBA and other intangible assets
2,352 
384 
Un-remitted foreign earnings
2,001 
827 
Investments
406 
6 
Unrealized appreciation on investments
60 
195 
Depreciation
91 
68 
Deferred Tax Liabilities, Gross
5,752 
1,892 
Valuation allowance
78 
38 
Deferred Income Tax Assets, Net
0 
318 
Deferred Tax Liabilities, Net
$ (988)
 
Taxation (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Income Tax Contingency [Line Items]
 
 
Unrecognized Tax Benefits, beginning of year
$ 16 
$ 23 
Additions based on tax provisions related to the current year
3 
1 
Additions based on tax positions related to prior years
2 
0 
Reductions for tax positions of prior years
(4)
(7)
Reductions for the lapse of the applicable statutes of limitations
0 
(1)
Unrecognized Tax Benefits, end of year
$ 17 
$ 16 
Debt (Narrative) (Details) (USD $)
12 Months Ended 0 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
Chubb INA Capital Securities Due 2067 [Member]
Dec. 31, 2016
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Dec. 31, 2015
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
Dec. 31, 2016
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2067 [Member]
London Interbank Offered Rate (LIBOR) [Member]
Dec. 31, 2016
Senior Notes [Member]
Dec. 31, 2015
Senior Notes [Member]
Dec. 31, 2016
Senior Notes [Member]
INA Senior Notes Due February 2017 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due February 2017 [Member]
Dec. 31, 2016
Trust Preferred Securities
INA capital securities due 2030
Mar. 31, 2000
Trust Preferred Securities
INA capital securities due 2030
Jan. 14, 2016
The Chubb Corporation [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt
$ 500,000,000 
$ 0 
 
 
 
 
 
 
$ 500,000,000 
$ 0 
 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
2.25% 
 
 
 
 
 
 
 
Long-term debt stated interest rate
 
 
 
6.375% 
 
 
 
 
5.70% 
 
9.70% 
9.70% 
 
Business Combination, Consideration Transferred, Liabilities Incurred
 
 
 
 
 
 
 
 
 
 
 
 
5,300,000,000 
Debt issued
1,000,000,000 
 
1,000,000,000 
962,000,000 
0 
 
 
 
500,000,000 
 
309,000,000 
300,000,000 
3,300,000,000 
Current amount of long-term debt outstanding
12,610,000,000 
9,389,000,000 
 
 
 
 
12,610,000,000 
9,389,000,000 
0 
500,000,000 
 
 
3,765,000,000 
ACE Capital Trust II common securities purchased
 
 
 
 
 
 
 
 
 
 
 
$ 9,200,000 
 
Debt (Schedule of Debt Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Mar. 31, 2000
Debt Instrument [Line Items]
 
 
 
Repurchase agreements
$ 1,403 
$ 1,404 
 
Short-term debt
500 
0 
 
Long-term debt
12,610 
9,389 
 
Debt Instrument, Face Amount
1,000 
 
 
Trust preferred securities
308 
307 
 
Chubb INA Capital Securities Due 2067 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt Instrument, Face Amount
1,000 
 
 
Junior Subordinated Debt [Member] |
Chubb INA Capital Securities Due 2067 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt Instrument, Face Amount
962 
0 
 
Long-term debt stated interest rate
6.375% 
 
 
Senior Notes
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
12,610 
9,389 
 
Senior Notes |
INA Senior Notes Due February 2017 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Short-term debt
500 
0 
 
Long-term debt
0 
500 
 
Debt Instrument, Face Amount
500 
 
 
Long-term debt stated interest rate
5.70% 
 
 
Additional percentage on 'make-whole' premium
0.20% 
 
 
Senior Notes |
INA Senior Notes Due March 2018 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
300 
299 
 
Debt Instrument, Face Amount
300 
 
 
Long-term debt stated interest rate
5.80% 
 
 
Additional percentage on 'make-whole' premium
0.35% 
 
 
Senior Notes |
Chubb INA Senior Notes Due 2018 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
635 
0 
 
Debt Instrument, Face Amount
600 
 
 
Long-term debt stated interest rate
5.75% 
 
 
Additional percentage on 'make-whole' premium
0.30% 
 
 
Senior Notes |
INA Senior Notes Due June 2019 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
498 
497 
 
Debt Instrument, Face Amount
500 
 
 
Long-term debt stated interest rate
5.90% 
 
 
Additional percentage on 'make-whole' premium
0.40% 
 
 
Senior Notes |
INA Senior Notes Due November 2020 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
1,294 
1,294 
 
Debt Instrument, Face Amount
1,300 
 
 
Long-term debt stated interest rate
2.30% 
 
 
Additional percentage on 'make-whole' premium
0.15% 
 
 
Senior Notes |
INA Senior Notes Due November 2022 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
994 
994 
 
Debt Instrument, Face Amount
1,000 
 
 
Long-term debt stated interest rate
2.875% 
 
 
Additional percentage on 'make-whole' premium
0.20% 
 
 
Senior Notes |
INA Senior Notes Due March 2023 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
471 
471 
 
Debt Instrument, Face Amount
475 
 
 
Long-term debt stated interest rate
2.70% 
 
 
Additional percentage on 'make-whole' premium
0.10% 
 
 
Senior Notes |
INA Senior Notes Due May 2024 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
695 
694 
 
Debt Instrument, Face Amount
700 
 
 
Long-term debt stated interest rate
3.35% 
 
 
Additional percentage on 'make-whole' premium
0.15% 
 
 
Senior Notes |
INA Senior Notes Due March 2025 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
794 
794 
 
Debt Instrument, Face Amount
800 
 
 
Long-term debt stated interest rate
3.15% 
 
 
Additional percentage on 'make-whole' premium
0.15% 
 
 
Senior Notes |
INA Senior Notes Due May 2026 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
1,488 
1,487 
 
Debt Instrument, Face Amount
1,500 
 
 
Long-term debt stated interest rate
3.35% 
 
 
Additional percentage on 'make-whole' premium
0.20% 
 
 
Senior Notes |
INA Senior Notes Due May 2036 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
297 
297 
 
Debt Instrument, Face Amount
300 
 
 
Long-term debt stated interest rate
6.70% 
 
 
Additional percentage on 'make-whole' premium
0.20% 
 
 
Senior Notes |
Chubb INA Senior Notes Due 2037 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
980 
0 
 
Debt Instrument, Face Amount
800 
 
 
Long-term debt stated interest rate
6.00% 
 
 
Additional percentage on 'make-whole' premium
0.20% 
 
 
Senior Notes |
Chubb INA Senior Notes Due 2038 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
776 
0 
 
Debt Instrument, Face Amount
600 
 
 
Long-term debt stated interest rate
6.50% 
 
 
Additional percentage on 'make-whole' premium
0.30% 
 
 
Senior Notes |
INA Senior Notes Due March 2043 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
469 
469 
 
Debt Instrument, Face Amount
475 
 
 
Long-term debt stated interest rate
4.15% 
 
 
Additional percentage on 'make-whole' premium
0.15% 
 
 
Senior Notes |
INA Senior Notes Due November 2045 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
1,482 
1,482 
 
Debt Instrument, Face Amount
1,500 
 
 
Long-term debt stated interest rate
4.35% 
 
 
Additional percentage on 'make-whole' premium
0.25% 
 
 
Senior Notes |
Other
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
11 
11 
 
Senior secured debentures |
Chubb INA Senior Notes Due August 2018 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
107 
0 
 
Debt Instrument, Face Amount
100 
 
 
Long-term debt stated interest rate
6.60% 
 
 
Senior secured debentures |
INA Senior Notes Due August 2029 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
100 
100 
 
Debt Instrument, Face Amount
100 
 
 
Long-term debt stated interest rate
8.875% 
 
 
Unsecured Debt [Member] |
Chubb INA Senior Notes Due 2031 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt
257 
0 
 
Debt Instrument, Face Amount
200 
 
 
Long-term debt stated interest rate
6.80% 
 
 
Additional percentage on 'make-whole' premium
0.25% 
 
 
Trust Preferred Securities |
INA capital securities due 2030
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt Instrument, Face Amount
309 
 
300 
Trust preferred securities
308 
307 
 
Long-term debt stated interest rate
9.70% 
 
9.70% 
Repurchase agreements
 
 
 
Debt Instrument [Line Items]
 
 
 
Short-term debt
$ 1,403 
$ 1,404 
 
Weighted average interest rate on short-term debt
0.80% 
0.60% 
 
Minimum |
Junior Subordinated Debt [Member] |
Chubb INA Capital Securities Due 2067 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Additional percentage on 'make-whole' premium
0.25% 
 
 
Minimum |
Senior Notes |
Other
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt stated interest rate
2.75% 
 
 
Maximum |
Junior Subordinated Debt [Member] |
Chubb INA Capital Securities Due 2067 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Additional percentage on 'make-whole' premium
0.50% 
 
 
Maximum |
Senior Notes |
Other
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt stated interest rate
7.10% 
 
 
Commitments, contingencies, and guarantees (Narrative) (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
 
Derivative Liability, Fair Value, Amount Subject to a Master Netting Agreement
$ 10,000,000 
 
 
Derivative Asset, Fair Value, Amount Subject to a Master Netting Agreement
 
1,000,000 
 
Securities lending collateral
1,092,000,000 
1,046,000,000 
 
Securities lending payable
1,093,000,000 
1,047,000,000 
 
Approximate percentage of gross premiums written that were generated from or placed by Marsh
 
 
10.00% 
Purchase Commitment, Remaining Minimum Amount Committed
716,000,000 
 
 
Carrying value of limited partnerships and partially-owned investment companies included in other investments
3,400,000,000 
 
 
Funding commitments relating to limited partnerships and partially-owned investment companies
2,000,000,000 
 
 
Total rental expense related to operating leases
209,000,000 
126,000,000 
127,000,000 
Securities Sold under Agreements to Repurchase
1,403,000,000 
1,404,000,000 
 
Equity Option [Member]
 
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
 
Derivative Asset, Fair Value, Gross Liability
0 
 
 
Letter of Credit [Member]
 
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
 
Line of Credit Facility, Current Borrowing Capacity
1,500,000,000 
 
 
Letter of Credit [Member] |
Letter Of Credit Unsecured Expiring November 2017
 
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
 
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases
300,000,000 
 
 
Line of Credit Facility, Amount Outstanding
443,000,000 
 
 
Maturity Overnight [Member]
 
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
 
Secured Borrowings, Gross, Difference, Amount
$ 1,000,000 
$ 1,000,000 
 
Commitments, contingencies, and guarantees (Balance Sheet Locations, Fair Values In Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
$ 4,666 
$ 1,915 
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
7 1
40 1
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
2,220 
1,029 
Cross Currency Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
95 
95 
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
2,344 
751 
Futures contracts on equities
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,316 2
1,197 2
Other
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
214 
15 
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,530 
1,212 
Guaranteed Minimum Income Benefit
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,264 3
1,155 3
Accounts Payable and Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
(54)
(13)
Accounts Payable and Accrued Liabilities [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
0 1
0 1
Accounts Payable and Accrued Liabilities [Member] |
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
(50)
(11)
Accounts Payable and Accrued Liabilities [Member] |
Cross Currency Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
0 
0 
Accounts Payable and Accrued Liabilities [Member] |
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
(4)
(2)
Accounts Payable and Accrued Liabilities [Member] |
Futures contracts on equities
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
0 2
(4)2
Accounts Payable and Accrued Liabilities [Member] |
Other
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
(13)
(6)
Accounts Payable and Accrued Liabilities [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
(13)
(10)
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
33 
43 
Other Assets [Member] |
Foreign Exchange Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
25 
7 
Other Assets [Member] |
Cross Currency Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
0 
0 
Other Assets [Member] |
Futures contracts on notes and bonds [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
6 
5 
Other Assets [Member] |
Futures contracts on equities
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
1 2
0 2
Other Assets [Member] |
Other
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
2 
0 
Other Assets [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
3 
0 
Other Assets [Member] |
Guaranteed Minimum Income Benefit
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
0 3
0 3
Accounts Payable Future Policy Benefits [Member] |
Guaranteed Minimum Income Benefit
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
(853)3
(888)3
Available-for-sale Securities [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
$ 2 1
$ 31 1
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 1,092 
$ 1,046 
Securities lending payable
1,093 
1,047 
Repurchase Agreements [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
58 
55 
Maturity Overnight [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
(1)
(1)
Maturity Overnight [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
423 
424 
Maturity Overnight [Member] |
U.S. Treasury and agency
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
54 
67 
Maturity Overnight [Member] |
Foreign Government Debt [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
578 
296 
Maturity Overnight [Member] |
Corporate securities
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
37 
2 
Maturity Overnight [Member] |
Equity securities
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 0 
$ 257 
Commitments, contingencies, and guarantees Commitments, contingencies, and guarantees (Collateral pledged under repurchase agreements) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
$ 1,461 
$ 1,459 
Securities Sold under Agreements to Repurchase
1,403 
1,404 
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
1 
34 
US Treasury and Government [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
240 
237 
Mortgage backed-securities
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
1,220 
1,188 
Repurchase Agreements [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
58 
55 
Maturity Greater than 90 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
892 
574 
Maturity Greater than 90 Days [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
1 
0 
Maturity Greater than 90 Days [Member] |
US Treasury and Government [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
10 
231 
Maturity Greater than 90 Days [Member] |
Mortgage backed-securities
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
881 
343 
Maturity Less than 30 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
569 
405 
Maturity Less than 30 Days [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
0 
34 
Maturity Less than 30 Days [Member] |
US Treasury and Government [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
230 
6 
Maturity Less than 30 Days [Member] |
Mortgage backed-securities
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
339 
365 
Maturity 30 to 90 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
 
480 
Maturity 30 to 90 Days [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
 
0 
Maturity 30 to 90 Days [Member] |
US Treasury and Government [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
 
0 
Maturity 30 to 90 Days [Member] |
Mortgage backed-securities
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
 
$ 480 
Commitments, contingencies, and guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
$ (126)
$ (193)
$ (442)
Foreign Exchange Future [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
(31)
31 
29 
All Other Futures Contracts And Options [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
(10)
9 
(118)
Convertibles and Bonds with Warrants Attached [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
8 1
(8)1
(18)1
Investment And Embedded Derivative Instruments [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
(33)
32 
(107)
GLB
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
53 2
(203)2
(217)2
Single-Stock Future [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
(136)3
(8)3
(164)3
Options On Equity Market Indices [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
0 3
(2)3
(4)3
Other Derivatives
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
(10)
(12)
50 
Guaranteed Living Benefit And Other Derivative Instruments [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
$ (93)
$ (225)
$ (335)
Commitments, contingencies, and guarantees (Future Minimum Lease Payments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
 
2017
$ 173 
2018
149 
2019
118 
2020
93 
2021
78 
Thereafter
186 
Total minimum future lease commitments
$ 797 
Shareholders' equity (Detail)
3 Months Ended 12 Months Ended 12 Months Ended 2 Months Ended
Apr. 30, 2014
USD ($)
Apr. 30, 2017
USD ($)
Dec. 31, 2016
CHF
Apr. 30, 2016
USD ($)
Apr. 30, 2015
USD ($)
Apr. 30, 2014
USD ($)
Nov. 30, 2016
USD ($)
May 31, 2016
USD ($)
Dec. 31, 2015
CHF
May 31, 2015
USD ($)
Nov. 30, 2014
USD ($)
May 31, 2014
USD ($)
Nov. 30, 2013
USD ($)
Dec. 31, 2016
General Purpose
Dec. 31, 2016
Issuance of Debt
Dec. 31, 2016
Employee Benefit Plans
Dec. 31, 2016
Nov 2016 Stock Repurchase Plan [Member]
USD ($)
Dec. 31, 2015
Nov 2016 Stock Repurchase Plan [Member]
USD ($)
Dec. 31, 2014
Nov 2016 Stock Repurchase Plan [Member]
USD ($)
Feb. 24, 2017
Nov 2016 Stock Repurchase Plan [Member]
Subsequent Event [Member]
USD ($)
Stockholders' Equity Note [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividend installments
$ 0.63 
$ 0.69 
 
$ 0.67 
$ 0.65 
$ 0.51 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase to dividend approved by shareholders in January
$ 0.12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The number of votes associated with one Common Share
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The maximum ownership percentage for voting allowed for any one shareholder
 
 
10.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual dividend per share approved by shareholders
 
 
 
 
 
 
 
$ 2.76 
 
$ 2.68 
 
$ 2.60 
 
 
 
 
 
 
 
 
Authorized Share Capital [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 945,000,000 
Treasury Stock, Shares, Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
6,677,663 
13,982,358 
419,623 
Authorized share capital for future issuance
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
33,000,000 
25,410,929 
 
 
 
 
Stock repurchase program authorized amount
 
 
 
 
 
 
1,000,000,000 
 
 
 
1,500,000,000 
 
2,000,000,000 
 
 
 
 
 
 
 
Common Shares, par value
 
 
 24.15 
 
 
 
 
 
 24.15 
 
 
 
 
 
 
 
 
 
 
 
Treasury Stock, Value, Acquired, Cost Method
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 734,000,000 
$ 1,449,000,000 
$ 55,000,000 
Shareholders' equity Schedule of Dividends Declared (Details)
12 Months Ended
Dec. 31, 2016
Switzerland, Francs
CHF
Dec. 31, 2015
Switzerland, Francs
CHF
Dec. 31, 2014
Switzerland, Francs
CHF
Dec. 31, 2016
United States of America, Dollars
USD ($)
Dec. 31, 2015
United States of America, Dollars
USD ($)
Dec. 31, 2014
United States of America, Dollars
USD ($)
Dividends Declared [Line Items]
 
 
 
 
 
 
Dividends - par value reduction
 0 
 0.62 
 2.27 
$ 0 
$ 0.65 
$ 2.46 
Dividends - distributed from capital contribution reserves
 2.70 
 1.94 
 0.20 
$ 2.74 
$ 2.01 
$ 0.24 
Total dividend distributions per common share
 2.70 
 2.56 
 2.47 
$ 2.74 
$ 2.66 
$ 2.70 
Shareholders' equity (Rollforward Of Changes In Common Stock Shares Issued And Outstanding) (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Class of Stock [Line Items]
 
 
 
Shares issued, Beginning of year
479,783,864 
342,832,412 
342,832,412 
Stock Issued During Period, Shares, New Issues
136,951,452 
0 
0 
Common Shares in treasury, end of year
(13,815,148)
(18,268,971)
(14,172,726)
Shares issued and outstanding, end of year
465,968,716 
324,563,441 
328,659,686 
Common Stock Issued to Employee Trust, beginning of year
(5,800)
(9,467)
(9,467)
Shares redeemed
3,000 
3,667 
0 
Common Stock Issued to Employee Trust, end of year
(2,800)
(5,800)
(9,467)
Shareholders' equity Repurchase of Common Shares (Details) (Nov 2016 Stock Repurchase Plan [Member], USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Nov 2016 Stock Repurchase Plan [Member]
 
 
 
Equity, Class of Treasury Stock [Line Items]
 
 
 
Number of shares repurchased
0 
6,677,663 
13,982,358 
Common Shares repurchased
$ 0 
$ 734 
$ 1,449 
Share-based compensation (Narrative) (Detail) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Maximum
Dec. 31, 2016
Stock options
Dec. 31, 2016
Restricted stock
Dec. 31, 2015
Restricted stock
Dec. 31, 2014
Restricted stock
Dec. 31, 2013
Restricted stock
Dec. 31, 2016
Restricted Stock Units (RSUs)
Dec. 31, 2016
ACE Limited 2004 Long-Term Incentive Plan [Member]
Restricted stock
Dec. 31, 2016
Common shares
Dec. 31, 2016
Common shares
ACE Limited 2004 Long-Term Incentive Plan [Member]
Dec. 31, 2016
Common shares
Chubb Limited 2016 Long-Term Incentive Plan [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Value of Equity Awards Issued in Acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 525,000,000 
Attributed Value Equity Awards Assumed in Acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
323,000,000 
Common shares authorized for issuance under plan
 
 
 
 
 
 
 
 
 
 
 
 
 
19,500,000 
 
Vesting period of award
 
 
 
 
3 years 
 
 
 
 
 
4 years 
 
 
 
 
Common shares remaining as available for issuance under the 2016 LTIP
 
 
 
 
 
 
 
 
 
 
 
722,751 
 
20,522,230.00 
 
Employee Stock Ownership Plan (ESOP), Shares in ESOP
 
 
 
 
 
 
 
 
 
 
 
4,500,000 
 
 
 
Unrecognized compensation expense related to the unvested share-based awards
260,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average expected recognition period for the unrecognized compensation expense
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock option term in years
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
Weighted average remaining contractual term for stock options outstanding
6 years 1 month 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average remaining contractual term for stock options exercisable
4 years 8 months 20 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash received from exercise of stock options
112,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock awards granted to non-management directors
23,812 
24,945 
25,339 
 
 
 
 
 
 
 
 
 
 
 
 
Number of unvested restricted stock outstanding
 
 
 
 
 
5,805,126 
3,489,169 
3,837,097 
4,129,583 
 
 
 
 
 
 
Number of deferred restricted stock units
 
 
 
 
 
 
 
 
 
519,331 
 
 
 
 
 
Amounts paid during period by employees for the purchase of shares under the ESPP
24,000,000 
18,000,000 
17,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares purchased during period by employees pursuant to the provisions of the ESPP
211,492 
197,442 
181,901 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Stock Purchase Plan Authorized Amount
 
 
 
$ 25,000 
 
 
 
 
 
 
 
 
 
 
 
Discounted purchase price from market price for the ESPP
85.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase to authorized shares approved by shareholders
 
 
 
 
 
 
 
 
 
 
 
 
8,000,000 
 
 
Annual estimate of forfeitures for equity awards
6.50% 
6.50% 
6.50% 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate for the ESPP
10.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation (Pre-tax and After-tax Share-based Compensation Expense) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restricted stock
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Share-based compensation expense, pre-tax
$ 268 
$ 143 
$ 128 
Share-based compensation expense, after-tax
167 
84 
75 
Stock options
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Share-based compensation expense, pre-tax
33 
31 
28 
Share-based compensation expense, after-tax
20 1
21 1
19 1
Additional Paid-in Capital
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Tax benefit on share-based compensation expense
$ 32 
$ 26 
$ 28 
Share-based compensation (Weighted Average Assumptions for Option Grants) (Details) (Options)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Options
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Dividend yield
2.30% 
2.30% 
2.70% 
Expected volatility
23.20% 
21.00% 
25.20% 
Risk-free interest rate
1.30% 
1.70% 
1.70% 
Expected life
5 years 6 months 27 days 
5 years 9 months 18 days 
5 years 9 months 18 days 
Share-based compensation (Rollforward Of Company's Stock Options) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Options, Weighted-Average Fair Value and Total Intrinsic Value [Abstract]
 
 
 
Weighted-average fair value of stock options granted (US$ per share)
$ 21.52 
$ 18.49 
$ 18.00 
Total intrinsic value of options exercised
$ 99 
$ 72 
$ 73 
Total intrinsic value of options outstanding
456 
 
 
Total intrinsic value of options exercisable, December 31, 2015
$ 389 
 
 
Number of Options [Roll Forward]
 
 
 
Number of option outstanding, beginning of period
9,853,496 
9,623,986 
9,496,856 
Number of options granted
1,929,616 
1,892,641 
1,782,903 
Number of options exercised
(1,728,949)
(1,457,580)
(1,511,948)
Number of options forfeited
(213,339)
(205,551)
(143,825)
Number of option outstanding, end of period
10,180,720 
9,853,496 
9,623,986 
Number of options exercisable, December 31, 2015
6,562,884 
 
 
Weighted-Average Exercise Price [Roll Forward]
 
 
 
Weighted-average exercise price of options outstanding, beginning of period (US$ oer share)
$ 78.40 
$ 69.06 
$ 61.84 
Weighted-average exercise price of options granted (US$ per share)
$ 118.39 
$ 114.78 
$ 96.77 
Weighted-average exercise price of options exercised (US$ per share)
$ 66.65 
$ 60.88 
$ 54.84 
Weighted average exercise price of options forfeited (US$ per share)
$ 110.01 
$ 100.25 
$ 84.52 
Weighted-average exercise price of options outstanding, end of period (US$ oer share
$ 87.29 
$ 78.40 
$ 69.06 
Weighted average exercise price of options exercisable, December 31, 2015 (US$ per share)
$ 72.90 
 
 
The Chubb Corporation [Member]
 
 
 
Options, Weighted-Average Fair Value and Total Intrinsic Value [Abstract]
 
 
 
Weighted-average fair value of stock options granted (US$ per share)
$ 36.07 
 
 
Number of Options [Roll Forward]
 
 
 
Number of options granted
339,896 
 
 
Weighted-Average Exercise Price [Roll Forward]
 
 
 
Weighted-average exercise price of options granted (US$ per share)
$ 77.83 
 
 
Share-based compensation (Rollforward Of Company's Restricted Stock) (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restricted stock
 
 
 
Number of Restricted Stock [Roll Forward]
 
 
 
Number of unvested restricted stock, beginning of period
3,489,169 
3,837,097 
4,129,583 
Number of restricted stock, granted
1,622,065 
1,417,965 
1,596,245 
Number of restricted stock, vested and issued
(2,592,622)
(1,341,358)
(1,500,949)
Number of restricted stock, forfeited
(420,125)
(424,535)
(387,782)
Number of unvested restricted stock, end of period
5,805,126 
3,489,169 
3,837,097 
Weighted-Average Grant-Day Fair Value [Roll Forward]
 
 
 
Weighted average grant-day fair value of unvested restricted stock outstanding, beginning of period (US$ per share)
$ 97.01 
$ 83.60 
$ 71.85 
Weighted average grant-day fair value of restricted stock, granted (US$ per share)
$ 118.70 
$ 114.37 
$ 97.16 
Weighted average grant-day fair value of restricted stock, vested and issued (US$ per share)
$ 100.87 
$ 80.05 
$ 68.33 
Weighted average grant-day fair value of restricted stock, forfeited (US$ per share)
$ 109.42 
$ 87.36 
$ 73.21 
Weighted average grant-day fair value of unvested restricted stock outstanding, end of period (US$ per share)
$ 109.39 
$ 97.01 
$ 83.60 
Performance Shares
 
 
 
Number of Restricted Stock [Roll Forward]
 
 
 
Number of unvested restricted stock, beginning of period
595,210 
378,690 
196,497 
Number of restricted stock, granted
517,507 
326,860 
374,202 
Number of restricted stock, vested and issued
(181,548)
(110,340)
(192,009)
Number of restricted stock, forfeited
0 
0 
0 
Number of unvested restricted stock, end of period
931,169 
595,210 
378,690 
Weighted-Average Grant-Day Fair Value [Roll Forward]
 
 
 
Weighted average grant-day fair value of unvested restricted stock outstanding, beginning of period (US$ per share)
$ 101.73 
$ 90.87 
$ 71.35 
Weighted average grant-day fair value of restricted stock, granted (US$ per share)
$ 118.96 
$ 113.29 
$ 98.31 
Weighted average grant-day fair value of restricted stock, vested and issued (US$ per share)
$ 102.43 
$ 98.70 
$ 85.39 
Weighted average grant-day fair value of restricted stock, forfeited (US$ per share)
$ 0.00 
$ 0.00 
$ 0.00 
Weighted average grant-day fair value of unvested restricted stock outstanding, end of period (US$ per share)
$ 111.17 
$ 101.73 
$ 90.87 
The Chubb Corporation [Member]
 
 
 
Number of Restricted Stock [Roll Forward]
 
 
 
Number of restricted stock, granted
3,706,639 
 
 
Weighted-Average Grant-Day Fair Value [Roll Forward]
 
 
 
Weighted average grant-day fair value of restricted stock, granted (US$ per share)
$ 111.02 
 
 
Postretirement benefits (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Pension Plan [Member]
Dec. 31, 2015
Pension Plan [Member]
Dec. 31, 2016
Non-US [Member]
Pension Plan [Member]
Oct. 31, 2016
UNITED STATES
Oct. 31, 2016
UNITED STATES
Pension Plan [Member]
Dec. 31, 2016
UNITED STATES
Other Postretirement Benefit Plan [Member]
Dec. 31, 2016
UNITED STATES
Postretirement Health Coverage [Member]
Oct. 31, 2016
UNITED STATES
Postretirement Health Coverage [Member]
Compensation and Retirement Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Expenses recognized during period under the defined contributions plans
$ 150 
$ 117 
$ 119 
 
 
 
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Defined Benefit Plan, Accumulated Benefit Obligation
 
 
 
3,800 
559 
 
 
 
 
 
 
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year
 
 
 
27 
 
 
 
 
 
 
 
Future Amortization of (Gain) Loss
 
 
 
 
 
3 
 
 
 
 
 
Future Amortization of Prior Service (Cost) Credit
 
 
 
 
 
 
 
 
92 
 
 
Defined benefit plan, benefits paid inclusive of settlements
213 
29 
 
 
 
 
 
 
 
 
 
Defined Benefit Plan, Plan Amendment [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Effect of Plan Amendment on Accumulated Benefit Obligation
 
 
 
 
 
 
496 
113 
 
15 
383 
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation
11 
 
 
 
 
 
 
 
 
 
 
Effect of One Percentage Point Increase on Service and Interest Cost Components
1 
 
 
 
 
 
 
 
 
 
 
Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation
9 
 
 
 
 
 
 
 
 
 
 
Effect of One Percentage Point Decrease on Service and Interest Cost Components
$ 1 
 
 
 
 
 
 
 
 
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Target Plan Asset Allocations Range Minimum
55.00% 
 
 
 
 
 
 
 
 
 
 
Target Plan Asset Allocations Range Maximum
65.00% 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits Schedule of Net Funded Status (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Pension Plan [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Service Cost
$ 93 
$ 6 
$ 6 
Interest Cost
133 
21 
25 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Plan assets at fair value, beginning of year
573 
 
 
Plan assets at fair value, end of year
 
573 
 
Pension Plan [Member] |
UNITED STATES
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit Obligation, beginning of year
10 
10 
 
Acquisition of Chubb Corp, Benefit obligation
3,153 
0 
 
Service Cost
75 
0 
0 
Interest Cost
103 
0 
0 
Actuarial Loss
131 
0 
 
Benefits Paid
(79)
0 
 
Amendments
0 
0 
 
Curtailments
(259)
0 
 
Settlements, Benefit obligations
(99)
0 
 
Foreign currency revaluation, benefit obligations
0 
0 
 
Benefit Obligation, end of year
3,035 
10 
10 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Plan assets at fair value, beginning of year
9 
9 
 
Acquisition of Chubb Corp, Plan Assets
2,473 
0 
 
Actual Return on Plan Assets
359 
0 
 
Employer Contributions
98 
0 
 
Benefits Paid
(79)
0 
 
Settlements, Plan Assets
(95)
0 
 
Foreign currency revaluation, Plan Assets
0 
0 
 
Plan assets at fair value, end of year
2,765 
9 
9 
Defined Benefit Plan, Funded Status of Plan
(270)
(1)
 
Pension Plan [Member] |
Non-US [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit Obligation, beginning of year
559 
584 
 
Acquisition of Chubb Corp, Benefit obligation
372 
0 
 
Service Cost
18 
6 
6 
Interest Cost
30 
21 
25 
Actuarial Loss
204 
13 
 
Benefits Paid
(22)
(22)
 
Amendments
(9)
1 
 
Curtailments
(7)
0 
 
Settlements, Benefit obligations
(7)
(7)
 
Foreign currency revaluation, benefit obligations
(113)
(37)
 
Benefit Obligation, end of year
1,025 
559 
584 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Plan assets at fair value, beginning of year
564 
579 
 
Acquisition of Chubb Corp, Plan Assets
315 
0 
 
Actual Return on Plan Assets
168 
40 
 
Employer Contributions
67 
10 
 
Benefits Paid
(22)
(22)
 
Settlements, Plan Assets
(7)
(7)
 
Foreign currency revaluation, Plan Assets
(123)
(36)
 
Plan assets at fair value, end of year
962 
564 
579 
Defined Benefit Plan, Funded Status of Plan
(63)
5 
 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Service Cost
10 
1 
1 
Interest Cost
17 
0 
0 
Other Postretirement Benefit Plan [Member] |
UNITED STATES
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit Obligation, beginning of year
16 
16 
 
Acquisition of Chubb Corp, Benefit obligation
491 
0 
 
Service Cost
9 
1 
1 
Interest Cost
16 
0 
0 
Actuarial Loss
33 
(1)
 
Benefits Paid
(11)
0 
 
Amendments
(410)
0 
 
Curtailments
0 
0 
 
Settlements, Benefit obligations
0 
0 
 
Foreign currency revaluation, benefit obligations
0 
0 
 
Benefit Obligation, end of year
144 
16 
16 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Plan assets at fair value, beginning of year
0 
0 
 
Acquisition of Chubb Corp, Plan Assets
138 
0 
 
Actual Return on Plan Assets
29 
0 
 
Employer Contributions
3 
0 
 
Benefits Paid
(11)
0 
 
Settlements, Plan Assets
0 
0 
 
Foreign currency revaluation, Plan Assets
0 
0 
 
Plan assets at fair value, end of year
159 
0 
0 
Defined Benefit Plan, Funded Status of Plan
15 
(16)
 
Other Postretirement Benefit Plan [Member] |
Non-US [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit Obligation, beginning of year
0 
0 
 
Acquisition of Chubb Corp, Benefit obligation
15 
0 
 
Service Cost
1 
0 
0 
Interest Cost
1 
0 
0 
Actuarial Loss
3 
0 
 
Benefits Paid
0 
0 
 
Amendments
0 
0 
 
Curtailments
0 
0 
 
Settlements, Benefit obligations
0 
0 
 
Foreign currency revaluation, benefit obligations
1 
0 
 
Benefit Obligation, end of year
21 
0 
0 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Plan assets at fair value, beginning of year
0 
0 
 
Acquisition of Chubb Corp, Plan Assets
0 
0 
 
Actual Return on Plan Assets
0 
0 
 
Employer Contributions
0 
0 
 
Benefits Paid
0 
0 
 
Settlements, Plan Assets
0 
0 
 
Foreign currency revaluation, Plan Assets
0 
0 
 
Plan assets at fair value, end of year
0 
0 
0 
Defined Benefit Plan, Funded Status of Plan
$ (21)
$ 0 
 
Postretirement benefits Schedule of amounts recognized in AOCI on a pretax basis (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Pension Plan [Member] |
UNITED STATES
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Net actuarial loss (gain)
$ (207)
$ 0 
Prior Service Cost
0 
0 
Total
(207)
0 
Pension Plan [Member] |
Non-US [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Net actuarial loss (gain)
156 
107 
Prior Service Cost
(2)
7 
Total
154 
114 
Other Postretirement Benefit Plan [Member] |
UNITED STATES
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Net actuarial loss (gain)
14 
 
Prior Service Cost
(395)
 
Total
(381)
 
Other Postretirement Benefit Plan [Member] |
Non-US [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Net actuarial loss (gain)
3 
 
Prior Service Cost
0 
 
Total
$ 3 
 
Postretirement benefits Schedule of assumptions used to determine benefit obligation (Details)
Dec. 31, 2016
Dec. 31, 2015
Pension Plan [Member] |
UNITED STATES
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
 
 
Benefit Obligation, Discount Rate
4.14% 
 
Benefit Obligation, Rate of Compensation Increase
4.00% 
 
Pension Plan [Member] |
Non-US [Member]
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
 
 
Benefit Obligation, Discount Rate
2.83% 
3.61% 
Benefit Obligation, Rate of Compensation Increase
3.57% 
3.05% 
Other Postretirement Benefit Plan [Member] |
UNITED STATES
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
 
 
Benefit Obligation, Discount Rate
2.86% 
 
Other Postretirement Benefit Plan [Member] |
Non-US [Member]
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
 
 
Benefit Obligation, Discount Rate
3.73% 
 
Postretirement benefits Schedule of net periodic benefit costs (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Total (increase) decrease in other comprehensive (Income) Loss
$ (545)
$ (15)
$ (2)
Pension Plan [Member]
 
 
 
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Service Cost
93 
6 
6 
Interest Cost
133 
21 
25 
Expected Return on Plan Assets
(204)
(29)
(30)
Amortization of (Gains) Losses
2 
2 
2 
Amortization of Prior Service Cost (Credit)
(1)
 
 
Recognized Net (Gain) Loss Due to Curtailments
(117)
 
 
Recognized Net (Gain) Loss Due to Settlements
(1)
1 
 
Net Periodic Benefit Cost
(95)
1 
3 
(Increase) decrease in Other Comprehensive Income (Loss), Net Actuarial (Gain) Loss)
(277)
(16)
(10)
(Increase) decrease Other Comprehensive Income (Loss), Net Prior Service Cost (Benefit)
(8)
1 
8 
(Increase) decrease in other comprehensive income, curtailment
117 
 
 
(Increase) decrease in other comprehensive income, settlement
1 
 
 
Total (increase) decrease in other comprehensive (Income) Loss
(167)
(15)
(2)
Pension Plan [Member] |
UNITED STATES
 
 
 
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Service Cost
75 
0 
0 
Interest Cost
103 
0 
0 
Expected Return on Plan Assets
(165)
0 
0 
Amortization of (Gains) Losses
0 
0 
0 
Amortization of Prior Service Cost (Credit)
0 
 
 
Recognized Net (Gain) Loss Due to Curtailments
(117)
 
 
Recognized Net (Gain) Loss Due to Settlements
(2)
0 
 
Net Periodic Benefit Cost
(106)
0 
0 
(Increase) decrease in Other Comprehensive Income (Loss), Net Actuarial (Gain) Loss)
(326)
0 
0 
(Increase) decrease Other Comprehensive Income (Loss), Net Prior Service Cost (Benefit)
0 
0 
0 
(Increase) decrease in other comprehensive income, curtailment
117 
 
 
(Increase) decrease in other comprehensive income, settlement
2 
 
 
Total (increase) decrease in other comprehensive (Income) Loss
(207)
0 
0 
Pension Plan [Member] |
Non-US [Member]
 
 
 
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Service Cost
18 
6 
6 
Interest Cost
30 
21 
25 
Expected Return on Plan Assets
(39)
(29)
(30)
Amortization of (Gains) Losses
2 
2 
2 
Amortization of Prior Service Cost (Credit)
(1)
 
 
Recognized Net (Gain) Loss Due to Curtailments
0 
 
 
Recognized Net (Gain) Loss Due to Settlements
1 
1 
 
Net Periodic Benefit Cost
11 
1 
3 
(Increase) decrease in Other Comprehensive Income (Loss), Net Actuarial (Gain) Loss)
49 
(16)
(10)
(Increase) decrease Other Comprehensive Income (Loss), Net Prior Service Cost (Benefit)
(8)
1 
8 
(Increase) decrease in other comprehensive income, curtailment
0 
 
 
(Increase) decrease in other comprehensive income, settlement
(1)
 
 
Total (increase) decrease in other comprehensive (Income) Loss
40 
(15)
(2)
Other Postretirement Benefit Plan [Member]
 
 
 
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Service Cost
10 
1 
1 
Interest Cost
17 
0 
0 
Expected Return on Plan Assets
(8)
0 
0 
Amortization of (Gains) Losses
(1)
(1)
1 
Amortization of Prior Service Cost (Credit)
(15)
 
 
Recognized Net (Gain) Loss Due to Curtailments
0 
 
 
Recognized Net (Gain) Loss Due to Settlements
0 
0 
 
Net Periodic Benefit Cost
3 
0 
2 
(Increase) decrease in Other Comprehensive Income (Loss), Net Actuarial (Gain) Loss)
17 
0 
0 
(Increase) decrease Other Comprehensive Income (Loss), Net Prior Service Cost (Benefit)
(395)
0 
0 
(Increase) decrease in other comprehensive income, curtailment
0 
 
 
(Increase) decrease in other comprehensive income, settlement
0 
 
 
Total (increase) decrease in other comprehensive (Income) Loss
(378)
0 
0 
Other Postretirement Benefit Plan [Member] |
UNITED STATES
 
 
 
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Service Cost
9 
1 
1 
Interest Cost
16 
0 
0 
Expected Return on Plan Assets
(8)
0 
0 
Amortization of (Gains) Losses
(1)
(1)
1 
Amortization of Prior Service Cost (Credit)
(15)
 
 
Recognized Net (Gain) Loss Due to Curtailments
0 
 
 
Recognized Net (Gain) Loss Due to Settlements
0 
0 
 
Net Periodic Benefit Cost
1 
0 
2 
(Increase) decrease in Other Comprehensive Income (Loss), Net Actuarial (Gain) Loss)
14 
0 
0 
(Increase) decrease Other Comprehensive Income (Loss), Net Prior Service Cost (Benefit)
(395)
0 
0 
(Increase) decrease in other comprehensive income, curtailment
0 
 
 
(Increase) decrease in other comprehensive income, settlement
0 
 
 
Total (increase) decrease in other comprehensive (Income) Loss
(381)
0 
0 
Other Postretirement Benefit Plan [Member] |
Non-US [Member]
 
 
 
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Service Cost
1 
0 
0 
Interest Cost
1 
0 
0 
Expected Return on Plan Assets
0 
0 
0 
Amortization of (Gains) Losses
0 
0 
0 
Amortization of Prior Service Cost (Credit)
0 
 
 
Recognized Net (Gain) Loss Due to Curtailments
0 
 
 
Recognized Net (Gain) Loss Due to Settlements
0 
0 
 
Net Periodic Benefit Cost
2 
0 
0 
(Increase) decrease in Other Comprehensive Income (Loss), Net Actuarial (Gain) Loss)
3 
0 
0 
(Increase) decrease Other Comprehensive Income (Loss), Net Prior Service Cost (Benefit)
0 
0 
0 
(Increase) decrease in other comprehensive income, curtailment
0 
 
 
(Increase) decrease in other comprehensive income, settlement
0 
 
 
Total (increase) decrease in other comprehensive (Income) Loss
$ 3 
$ 0 
$ 0 
Postretirement benefits Schedule of Assumptions Used to determine net periodic benefit costs(Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Pension Plan [Member] |
UNITED STATES
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Rate of Compensation Increase
4.00% 
 
 
Expected Long-term Return on Assets
7.00% 
 
 
Pension Plan [Member] |
UNITED STATES |
Service Cost [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
4.38% 
 
 
Pension Plan [Member] |
UNITED STATES |
Interest Cost [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
3.59% 
 
 
Pension Plan [Member] |
Non-US [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
 
3.51% 
4.21% 
Rate of Compensation Increase
3.33% 
3.09% 
3.43% 
Expected Long-term Return on Assets
4.79% 
4.81% 
5.34% 
Pension Plan [Member] |
Non-US [Member] |
Service Cost [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
3.85% 
 
 
Pension Plan [Member] |
Non-US [Member] |
Interest Cost [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
3.44% 
 
 
Other Postretirement Benefit Plan [Member] |
UNITED STATES
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Expected Long-term Return on Assets
6.34% 
 
 
Other Postretirement Benefit Plan [Member] |
UNITED STATES |
Service Cost [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
4.56% 
 
 
Other Postretirement Benefit Plan [Member] |
UNITED STATES |
Interest Cost [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
3.82% 
 
 
Other Postretirement Benefit Plan [Member] |
Non-US [Member] |
Service Cost [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
4.30% 
 
 
Other Postretirement Benefit Plan [Member] |
Non-US [Member] |
Interest Cost [Member]
 
 
 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
 
Discount Rate
4.30% 
 
 
Postretirement benefits Schedule of Health Care Cost Trend Rates (Details) (Other Postretirement Benefit Plan [Member])
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
UNITED STATES
 
 
 
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]
 
 
 
Health Care Cost Trend Rate
7.28% 
6.50% 
6.50% 
Ultimate Health Care Cost Trend Rate
4.50% 
4.50% 
4.50% 
Year that Rate Reaches Ultimate Trend Rate
2038 
2026 
2026 
Non-US [Member]
 
 
 
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]
 
 
 
Health Care Cost Trend Rate
6.61% 
 
 
Ultimate Health Care Cost Trend Rate
4.50% 
 
 
Year that Rate Reaches Ultimate Trend Rate
2029 
 
 
Postretirement benefits Schedule of Allocation of Plan Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
$ 3,002 
$ 10,446 
Available for sale, Fair Value
80,115 
43,587 
Equity securities
814 
497 
Other investments
4,519 
3,291 
Other Investments [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other investments
25 
25 
Pension Plan [Member] |
UNITED STATES
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
43 
 
Equity securities
728 
 
Derivative Instruments Fair Value
3 
 
Defined benefit plan, fair value of plan assets excluding measured using NAV
1,579 
 
Pension Plan [Member] |
UNITED STATES |
Other Investments [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other investments
1,200 
 
Pension Plan [Member] |
UNITED STATES |
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
0 
 
Equity securities
728 
 
Derivative Instruments Fair Value
3 
 
Defined benefit plan, fair value of plan assets excluding measured using NAV
937 
 
Pension Plan [Member] |
UNITED STATES |
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
43 
 
Equity securities
0 
 
Derivative Instruments Fair Value
0 
 
Defined benefit plan, fair value of plan assets excluding measured using NAV
637 
 
Pension Plan [Member] |
UNITED STATES |
Level 3
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
0 
 
Equity securities
0 
 
Derivative Instruments Fair Value
0 
 
Defined benefit plan, fair value of plan assets excluding measured using NAV
5 
 
Pension Plan [Member] |
Non-US [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
2 
 
Equity securities
512 
 
Defined benefit plan, fair value of plan assets excluding measured using NAV
949 
 
Pension Plan [Member] |
Non-US [Member] |
Other Investments [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other investments
13 
 
Pension Plan [Member] |
Non-US [Member] |
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
2 
 
Equity securities
100 
 
Defined benefit plan, fair value of plan assets excluding measured using NAV
102 
 
Pension Plan [Member] |
Non-US [Member] |
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
0 
 
Equity securities
412 
 
Defined benefit plan, fair value of plan assets excluding measured using NAV
847 
 
Pension Plan [Member] |
Non-US [Member] |
Level 3
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Short-term investments
0 
 
Equity securities
0 
 
Defined benefit plan, fair value of plan assets excluding measured using NAV
0 
 
Pension Plan [Member] |
US Treasury and Government [Member] |
UNITED STATES
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
318 
 
Pension Plan [Member] |
US Treasury and Government [Member] |
UNITED STATES |
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
206 
 
Pension Plan [Member] |
US Treasury and Government [Member] |
UNITED STATES |
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
112 
 
Pension Plan [Member] |
US Treasury and Government [Member] |
UNITED STATES |
Level 3
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
0 
 
Pension Plan [Member] |
Foreign Government Debt Securities [Member] |
UNITED STATES
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
487 
 
Pension Plan [Member] |
Foreign Government Debt Securities [Member] |
UNITED STATES |
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
0 
 
Pension Plan [Member] |
Foreign Government Debt Securities [Member] |
UNITED STATES |
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
482 
 
Pension Plan [Member] |
Foreign Government Debt Securities [Member] |
UNITED STATES |
Level 3
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
5 
 
Pension Plan [Member] |
Foreign Government Debt Securities [Member] |
Non-US [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
435 
 
Pension Plan [Member] |
Foreign Government Debt Securities [Member] |
Non-US [Member] |
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
0 
 
Pension Plan [Member] |
Foreign Government Debt Securities [Member] |
Non-US [Member] |
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
435 
 
Pension Plan [Member] |
Foreign Government Debt Securities [Member] |
Non-US [Member] |
Level 3
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Available for sale, Fair Value
$ 0 
 
Postretirement benefits (Schedule of Expected Future Benefit Payments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
UNITED STATES
 
Defined Benefit Plan Disclosure [Line Items]
 
2017
$ 132 
2018
143 
2019
158 
2020
167 
2021
177 
2022-2026
931 
Non-US [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2017
20 
2018
23 
2019
25 
2020
26 
2021
27 
2022-2026
$ 147 
Other (income) expense (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Other Income and Expenses [Abstract]
 
 
 
Amortization of Intangible Assets
$ 19 
$ 171 
$ 108 
Equity in net (income) loss of partially-owned entities
(264)
(113)
(231)
(Gains) losses from fair value changes in separate account assets
(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)
Segment Information (Operations By Segment) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Derivative, Gain (Loss) on Derivative, Net
 
 
 
 
 
 
 
 
$ (126)
$ (193)
$ (442)
Net premiums written
 
 
 
 
 
 
 
 
28,145 
17,713 
17,799 
Net premiums earned
7,059 
7,688 
7,405 
6,597 
4,207 
4,719 
4,360 
3,927 
28,749 
17,213 
17,426 
Losses and loss expenses
3,855 
4,269 
4,254 
3,674 
2,302 
2,643 
2,417 
2,122 
16,052 
9,484 
9,649 
Policy benefits
161 
155 
146 
126 
159 
89 
153 
142 
588 
543 
517 
Policy Acquisition Costs
 
 
 
 
 
 
 
 
5,904 
2,941 
3,075 
Administrative expenses
 
 
 
 
 
 
 
 
3,081 
2,270 
2,245 
Underwriting income (loss)
 
 
 
 
 
 
 
 
3,124 
1,975 
1,940 
Net Investment Income
744 
739 
708 
674 
532 
549 
562 
551 
2,865 
2,194 
2,252 
Other (Income) Expense
 
 
 
 
 
 
 
 
(222)
(51)
(190)
Segment Underwriting Income Loss and Net Investment Income Loss
 
 
 
 
 
 
 
 
6,192 
4,049 
4,274 
Net realized gains (losses) including OTTI
365 
100 
(216)
(394)
(60)
(397)
126 
(89)
(145)
(420)
(507)
Interest expense
 
 
 
 
 
 
 
 
605 
300 
280 
Other (income) expense
 
 
 
 
 
 
 
 
(222)
(51)
(190)
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
19 
171 
108 
Chubb integration expenses
 
 
 
 
 
 
 
 
492 
33 
0 
(Gains) losses from fair value changes in separate account assets
 
 
 
 
 
 
 
 
11 
(19)
2 
Income tax expense (benefit)
 
 
 
 
 
 
 
 
815 
462 
634 
Net income
1,610 
1,360 
726 
439 
683 
528 
942 
681 
4,135 
2,834 
2,853 
North America Commercial P&C Insurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
11,740 
5,715 
5,685 
Net premiums earned
 
 
 
 
 
 
 
 
12,217 
5,634 
5,547 
Losses and loss expenses
 
 
 
 
 
 
 
 
7,439 
3,661 
3,476 
Policy benefits
 
 
 
 
 
 
 
 
0 
 
0 
Policy Acquisition Costs
 
 
 
 
 
 
 
 
2,023 
531 
518 
Administrative expenses
 
 
 
 
 
 
 
 
1,125 
621 
599 
Underwriting income (loss)
 
 
 
 
 
 
 
 
1,630 
821 
954 
Net Investment Income
 
 
 
 
 
 
 
 
1,860 
1,032 
1,060 
Other (Income) Expense
 
 
 
 
 
 
 
 
(2)
(7)
(12)
Segment Underwriting Income Loss and Net Investment Income Loss
 
 
 
 
 
 
 
 
3,492 
1,860 
2,026 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
0 
0 
0 
North American Personal P&C [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
4,153 
1,192 
578 
Net premiums earned
 
 
 
 
 
 
 
 
4,319 
948 
560 
Losses and loss expenses
 
 
 
 
 
 
 
 
2,558 
590 
368 
Policy benefits
 
 
 
 
 
 
 
 
0 
 
0 
Policy Acquisition Costs
 
 
 
 
 
 
 
 
966 
69 
116 
Administrative expenses
 
 
 
 
 
 
 
 
363 
123 
74 
Underwriting income (loss)
 
 
 
 
 
 
 
 
432 
166 
2 
Net Investment Income
 
 
 
 
 
 
 
 
207 
25 
22 
Other (Income) Expense
 
 
 
 
 
 
 
 
6 
2 
1 
Segment Underwriting Income Loss and Net Investment Income Loss
 
 
 
 
 
 
 
 
614 
111 
23 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
19 
78 
0 
North America Agricultural Insurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Segment Income Loss Including Gains Losses On Crop Derivatives
 
 
 
 
 
 
 
 
341 
 
 
Derivative, Gain (Loss) on Derivative, Net
 
 
 
 
 
 
 
 
5 
 
 
Net premiums written
 
 
 
 
 
 
 
 
1,328 
1,346 
1,590 
Net premiums earned
 
 
 
 
 
 
 
 
1,316 
1,364 
1,526 
Losses and loss expenses
 
 
 
 
 
 
 
 
893 
1,088 
1,351 
Policy benefits
 
 
 
 
 
 
 
 
0 
0 
0 
Policy Acquisition Costs
 
 
 
 
 
 
 
 
83 
69 
81 
Administrative expenses
 
 
 
 
 
 
 
 
(6)
1 
9 
Underwriting income (loss)
 
 
 
 
 
 
 
 
346 
206 
85 
Net Investment Income
 
 
 
 
 
 
 
 
20 
23 
26 
Other (Income) Expense
 
 
 
 
 
 
 
 
1 
1 
2 
Segment Underwriting Income Loss and Net Investment Income Loss
 
 
 
 
 
 
 
 
336 
198 
78 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
29 
30 
31 
Overseas General Insurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
8,124 
6,634 
6,999 
Net premiums earned
 
 
 
 
 
 
 
 
8,132 
6,471 
6,805 
Losses and loss expenses
 
 
 
 
 
 
 
 
4,005 
3,052 
3,189 
Policy benefits
 
 
 
 
 
 
 
 
0 
0 
0 
Policy Acquisition Costs
 
 
 
 
 
 
 
 
2,136 
1,581 
1,625 
Administrative expenses
 
 
 
 
 
 
 
 
1,057 
997 
1,026 
Underwriting income (loss)
 
 
 
 
 
 
 
 
934 
841 
965 
Net Investment Income
 
 
 
 
 
 
 
 
600 
534 
545 
Other (Income) Expense
 
 
 
 
 
 
 
 
(11)
(17)
(18)
Segment Underwriting Income Loss and Net Investment Income Loss
 
 
 
 
 
 
 
 
1,497 
1,331 
1,454 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
48 
61 
74 
Global Reinsurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
676 
828 
935 
Net premiums earned
 
 
 
 
 
 
 
 
710 
849 
1,026 
Losses and loss expenses
 
 
 
 
 
 
 
 
325 
290 
431 
Policy benefits
 
 
 
 
 
 
 
 
0 
0 
0 
Policy Acquisition Costs
 
 
 
 
 
 
 
 
187 
214 
257 
Administrative expenses
 
 
 
 
 
 
 
 
52 
49 
54 
Underwriting income (loss)
 
 
 
 
 
 
 
 
146 
296 
284 
Net Investment Income
 
 
 
 
 
 
 
 
263 
300 
316 
Other (Income) Expense
 
 
 
 
 
 
 
 
(4)
(6)
(4)
Segment Underwriting Income Loss and Net Investment Income Loss
 
 
 
 
 
 
 
 
413 
602 
604 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
0 
0 
0 
Life Insurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Management underwriting income loss Insurance
 
 
 
 
 
 
 
 
282 
 
 
Net premiums written
 
 
 
 
 
 
 
 
2,124 
1,998 
2,012 
Net premiums earned
 
 
 
 
 
 
 
 
2,055 
1,947 
1,962 
Losses and loss expenses
 
 
 
 
 
 
 
 
663 
601 
589 
Policy benefits
 
 
 
 
 
 
 
 
588 
543 
517 
Policy Acquisition Costs
 
 
 
 
 
 
 
 
509 
476 
478 
Administrative expenses
 
 
 
 
 
 
 
 
307 
291 
285 
Underwriting income (loss)
 
 
 
 
 
 
 
 
(12)
36 
93 
Net Investment Income
 
 
 
 
 
 
 
 
283 
265 
268 
Other (Income) Expense
 
 
 
 
 
 
 
 
5 
23 
3 
Segment Underwriting Income Loss and Net Investment Income Loss
 
 
 
 
 
 
 
 
263 
276 
355 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
3 
2 
3 
(Gains) losses from fair value changes in separate account assets
 
 
 
 
 
 
 
 
11 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
0 
0 
0 
Net premiums earned
 
 
 
 
 
 
 
 
0 
0 
0 
Losses and loss expenses
 
 
 
 
 
 
 
 
169 
202 
245 
Policy benefits
 
 
 
 
 
 
 
 
0 
0 
0 
Policy Acquisition Costs
 
 
 
 
 
 
 
 
0 
1 
0 
Administrative expenses
 
 
 
 
 
 
 
 
183 
188 
198 
Underwriting income (loss)
 
 
 
 
 
 
 
 
(352)
(391)
(443)
Net Investment Income
 
 
 
 
 
 
 
 
(368)
15 
15 
Other (Income) Expense
 
 
 
 
 
 
 
 
(217)
(47)
(162)
Segment Underwriting Income Loss and Net Investment Income Loss
 
 
 
 
 
 
 
 
(423)
(329)
(266)
Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
(145)
(420)
(507)
Interest expense
 
 
 
 
 
 
 
 
605 
300 
280 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
(80)
0 
0 
Chubb integration expenses
 
 
 
 
 
 
 
 
492 
33 
 
Income tax expense (benefit)
 
 
 
 
 
 
 
 
815 
462 
634 
Net income
 
 
 
 
 
 
 
 
$ (2,480)
$ (1,544)
$ (1,687)
Segment Information (Net Premiums Earned For Segment By Product) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
$ 7,059 
$ 7,688 
$ 7,405 
$ 6,597 
$ 4,207 
$ 4,719 
$ 4,360 
$ 3,927 
$ 28,749 
$ 17,213 
$ 17,426 
North America Commercial P&C Insurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
12,217 
5,634 
5,547 
North America Commercial P&C Insurance |
Property and other short-tail [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
1,963 
1,040 
1,113 
North America Commercial P&C Insurance |
Casualty and all other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
9,552 
4,175 
4,021 
North America Commercial P&C Insurance |
Accident and Health [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
702 
419 
413 
North American Personal P&C [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
4,319 
948 
560 
North American Personal P&C [Member] |
Automobiles [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
699 
186 
130 
North American Personal P&C [Member] |
Personal homeowner [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
3,007 
579 
309 
North American Personal P&C [Member] |
Other Insurance Product Line [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
613 
183 
121 
North America Agricultural Insurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
1,316 
1,364 
1,526 
Overseas General Insurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
8,132 
6,471 
6,805 
Overseas General Insurance |
Property and other short-tail [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
2,133 
1,833 
1,892 
Overseas General Insurance |
Casualty and all other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
2,177 
1,361 
1,425 
Overseas General Insurance |
Accident and Health [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
2,196 
2,066 
2,284 
Overseas General Insurance |
Personal lines [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
1,626 
1,211 
1,204 
Global Reinsurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
710 
849 
1,026 
Global Reinsurance |
Property and other short-tail [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
118 
155 
246 
Global Reinsurance |
Casualty and all other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
407 
475 
527 
Global Reinsurance |
Property catastrophe [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
185 
219 
253 
Life Insurance
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
2,055 
1,947 
1,962 
Life Insurance |
Accident and Health [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
1,053 
1,016 
981 
Life Insurance |
Life Insurance Product Line [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
 
 
 
 
 
 
 
$ 1,002 
$ 931 
$ 981 
Segment Information (Net Premiums Earned By Geographic Region) (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
Net Premiums Earned by Geographic Region
Text Block 
 
 
North America [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of net premiums earned by geographic region
70.00% 
60.00% 
58.00% 
Europe [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of net premiums earned by geographic region
12.00% 1
15.00% 1
16.00% 1
Asia Pacific and Far East [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of net premiums earned by geographic region
11.00% 
15.00% 
16.00% 
Latin America [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of net premiums earned by geographic region
7.00% 
10.00% 
10.00% 
Net Premiums Earned by Geographic Region 

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
%
Earnings Per Share (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, New Issues
 
 
 
 
 
 
 
 
136,951,452 
0 
0 
Net income
$ 1,610 
$ 1,360 
$ 726 
$ 439 
$ 683 
$ 528 
$ 942 
$ 681 
$ 4,135 
$ 2,834 
$ 2,853 
Weighted-average shares outstanding
 
 
 
 
 
 
 
 
462,519,789 
325,589,361 
335,609,899 
Share-based compensation plans
 
 
 
 
 
 
 
 
3,429,610 
3,246,017 
3,376,388 
Adjusted weighted-average shares outstanding and assumed conversions
 
 
 
 
 
 
 
 
465,949,399 
328,835,378 
338,986,287 
Basic earnings per share
$ 3.44 
$ 2.90 
$ 1.55 
$ 0.98 
$ 2.10 
$ 1.63 
$ 2.89 
$ 2.08 
$ 8.94 
$ 8.71 
$ 8.50 
Diluted earnings per share
$ 3.41 
$ 2.88 
$ 1.54 
$ 0.97 
$ 2.08 
$ 1.62 
$ 2.86 
$ 2.05 
$ 8.87 
$ 8.62 
$ 8.42 
Potential anti-dilutive share conversions
 
 
 
 
 
 
 
 
1,206,828 
1,601,668 
1,024,788 
Related party transaction (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
$ 28,145 
$ 17,713 
$ 17,799 
Losses and loss expenses
3,855 
4,269 
4,254 
3,674 
2,302 
2,643 
2,417 
2,122 
16,052 
9,484 
9,649 
Insurance and reinsurance balances payable
5,637 
 
 
 
4,270 
 
 
 
5,637 
4,270 
 
Reinsurance recoverable on losses and loss expenses
13,577 
 
 
 
11,386 
 
 
 
13,577 
11,386 
 
Ceded Premiums Written
 
 
 
 
 
 
 
 
6,838 
6,098 
5,591 
Starr Technical Risk Agency and Affiliates [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Paid commissions
 
 
 
 
 
 
 
 
145 
60 
63 
Losses and loss expenses
 
 
 
 
 
 
 
 
313 
137 
91 
Insurance and reinsurance balances payable
72 
 
 
 
18 
 
 
 
72 
18 
 
Reinsurance recoverable on losses and loss expenses
412 
 
 
 
112 
 
 
 
412 
112 
 
Gross premiums written
 
 
 
 
 
 
 
 
658 
305 
314 
Ceded Premiums Written
 
 
 
 
 
 
 
 
208 
78 
84 
Minimum Amount of Program Business to be Written to Earn Profit Sharing
 
 
 
 
 
 
 
 
20 
 
 
Ceded Commissions
 
 
 
 
 
 
 
 
56 
19 
20 
Chubb Charitable Foundation Bermuda [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Chubb Charitable Foundation - Bermuda-Loan
23 
 
 
 
24 
 
 
 
23 
24 
 
ABR Reinsurance Capital Holdings Ltd. [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Insurance and reinsurance balances payable
53 
 
 
 
6 
 
 
 
53 
6 
 
Reinsurance recoverable on losses and loss expenses
148 
 
 
 
82 
 
 
 
148 
82 
 
Ceded Premiums Written
 
 
 
 
 
 
 
 
$ 288 
$ 115 
 
Equity Method Investment, Ownership Percentage
 
 
 
 
11.30% 
 
 
 
 
11.30% 
 
Statutory Financial Information (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statutory Accounting Practices [Line Items]
 
 
 
Dividends available to be paid
$ 3,700,000,000 
 
 
Approximate increase in statutory capital and surplus resulting from discount of certain A&E liabilities
155,000,000 
144,000,000 
 
Minimum statutory capital and surplus required to satisfy regulatory requirements
22,800,000,000 
14,500,000,000 
 
Statutory Accounting Practices, Permitted Practice, Amount
308,000,000 
 
 
PropertyAndCasualtySubsidiaries [Member]
 
 
 
Statutory Accounting Practices [Line Items]
 
 
 
Statutory capital and surplus
37,946,000,000 
19,680,000,000 
 
Statutory net income
7,042,000,000 
2,712,000,000 
3,378,000,000 
LifeSubsidiaries [Member] [Member]
 
 
 
Statutory Accounting Practices [Line Items]
 
 
 
Statutory capital and surplus
1,294,000,000 
1,207,000,000 
 
Statutory net income
$ 46,000,000 
$ (148,000,000)
$ (248,000,000)
Information provided in connection with outstanding debt of subsidiaries (Condensed Consolidating Balance Sheet) (Detail) (USD $)
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2016
Consolidating Adjustments
Dec. 31, 2015
Consolidating Adjustments
Dec. 31, 2014
Consolidating Adjustments
Dec. 31, 2013
Consolidating Adjustments
Dec. 31, 2016
Chubb limited (Parent Guarantor)
Dec. 31, 2015
Chubb limited (Parent Guarantor)
Dec. 31, 2014
Chubb limited (Parent Guarantor)
Dec. 31, 2013
Chubb limited (Parent Guarantor)
Dec. 31, 2016
Chubb INA Holdings Inc. (Subsidiary Issuer)
Dec. 31, 2015
Chubb INA Holdings Inc. (Subsidiary Issuer)
Dec. 31, 2014
Chubb INA Holdings Inc. (Subsidiary Issuer)
Dec. 31, 2013
Chubb INA Holdings Inc. (Subsidiary Issuer)
Dec. 31, 2016
Other Chubb Limited Subsidiaries and Eliminations
Dec. 31, 2015
Other Chubb Limited Subsidiaries and Eliminations
Dec. 31, 2014
Other Chubb Limited Subsidiaries and Eliminations
Dec. 31, 2013
Other Chubb Limited Subsidiaries and Eliminations
Jan. 14, 2016
The Chubb Corporation [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Minimum
Jan. 14, 2016
The Chubb Corporation [Member]
Maximum
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany Loan Agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 10,000,000,000 
 
 
Long-term Debt, Weighted Average Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.30% 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.30% 
4.35% 
Debt Instrument, Face Amount
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,300,000,000 
 
 
Investments
99,094,000,000 
66,251,000,000 
 
 
 
 
 
 
27,000,000 
28,000,000 
 
 
485,000,000 
7,839,000,000 
 
 
98,582,000,000 
58,384,000,000 
 
 
42,967,000,000 
 
 
Cash
985,000,000 1 2
1,775,000,000 2 3 4
655,000,000 2 5
579,000,000 5
(982,000,000)1 2
(971,000,000)2 3 4
(555,000,000)2 5
(185,000,000)5
1,000,000 1 2
1,000,000 2 3 4
0 5
0 5
1,000,000 1 2
2,000,000 2 3 4
1,000,000 2 5
16,000,000 5
1,965,000,000 1 2
2,743,000,000 2 3 4
1,209,000,000 5
748,000,000 5
71,000,000 
 
 
Insurance and reinsurance balances receivable
8,970,000,000 
5,323,000,000 
 
 
(1,528,000,000)
(752,000,000)
 
 
 
 
 
 
 
 
 
 
10,498,000,000 
6,075,000,000 
 
 
3,095,000,000 
 
 
Reinsurance recoverable on losses and loss expenses
13,577,000,000 
11,386,000,000 
 
 
(10,919,000,000)
(8,738,000,000)
 
 
 
 
 
 
 
 
 
 
24,496,000,000 
20,124,000,000 
 
 
 
 
 
Reinsurance recoverable on policy benefits
182,000,000 
187,000,000 
 
 
(971,000,000)
(942,000,000)
 
 
 
 
 
 
 
 
 
 
1,153,000,000 
1,129,000,000 
 
 
 
 
 
Value of business acquired
355,000,000 
395,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
355,000,000 
395,000,000 
 
 
 
 
 
Goodwill
22,095,000,000 
5,683,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22,095,000,000 
5,683,000,000 
 
 
 
 
 
Investments in subsidiaries
 
 
 
 
(87,917,000,000)
(47,998,000,000)
 
 
38,408,000,000 
29,612,000,000 
 
 
49,509,000,000 
18,386,000,000 
 
 
 
 
 
 
 
 
 
Due from subsidiaries and affiliates, net
 
 
 
 
(10,482,000,000)
(2,444,000,000)
 
 
10,482,000,000 
644,000,000 
 
 
 
1,800,000,000 
 
 
 
 
 
 
 
 
 
Other assets
14,528,000,000 
11,306,000,000 
 
 
(4,353,000,000)
(3,593,000,000)
 
 
3,000,000 
8,000,000 
 
 
436,000,000 
457,000,000 
 
 
18,442,000,000 
14,434,000,000 
 
 
 
 
 
Total assets
159,786,000,000 
102,306,000,000 
 
 
(117,152,000,000)
(65,438,000,000)
 
 
48,921,000,000 
30,293,000,000 
 
 
50,431,000,000 
28,484,000,000 
 
 
177,586,000,000 
108,967,000,000 
 
 
 
 
 
Unpaid losses and loss expenses
60,540,000,000 
37,303,000,000 
38,315,000,000 
37,443,000,000 
(10,143,000,000)
(8,187,000,000)
 
 
 
 
 
 
 
 
 
 
70,683,000,000 
45,490,000,000 
 
 
22,923,000,000 
 
 
Unearned premiums
14,779,000,000 
8,439,000,000 
 
 
(3,759,000,000)
(1,804,000,000)
 
 
 
 
 
 
 
 
 
 
18,538,000,000 
10,243,000,000 
 
 
7,011,000,000 
 
 
Future policy benefits
5,036,000,000 
4,807,000,000 
 
 
(971,000,000)
(942,000,000)
 
 
 
 
 
 
 
 
 
 
6,007,000,000 
5,749,000,000 
 
 
 
 
 
Due to subsidiaries and affiliates, net
 
 
 
 
(10,482,000,000)
(2,444,000,000)
 
 
 
 
 
 
10,209,000,000 
 
 
 
273,000,000 
2,444,000,000 
 
 
 
 
 
Affiliated notional cash pooling program
300,000,000 
0 3
 
 
(982,000,000)1
(971,000,000)3
 
 
363,000,000 1
882,000,000 3
 
 
619,000,000 1
89,000,000 3
 
 
 
 
 
 
 
 
 
Repurchase agreements
1,403,000,000 
1,404,000,000 
 
 
0 
0 
 
 
0 
0 
 
 
0 
0 
 
 
1,403,000,000 
1,404,000,000 
 
 
 
 
 
Short-term debt
500,000,000 
0 
 
 
 
 
 
 
 
 
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
 
Long-term debt
12,610,000,000 
9,389,000,000 
 
 
 
 
 
 
 
 
 
 
12,599,000,000 
9,378,000,000 
 
 
11,000,000 
11,000,000 
 
 
3,765,000,000 
 
 
Trust preferred securities
308,000,000 
307,000,000 
 
 
 
 
 
 
 
 
 
 
308,000,000 
307,000,000 
 
 
 
 
 
 
 
 
 
Other liabilities
16,335,000,000 
11,522,000,000 
 
 
(2,898,000,000)
(3,092,000,000)
 
 
283,000,000 
276,000,000 
 
 
1,582,000,000 
1,422,000,000 
 
 
17,368,000,000 
12,916,000,000 
 
 
 
 
 
Total liabilities
111,511,000,000 
73,171,000,000 
 
 
(29,235,000,000)
(17,440,000,000)
 
 
646,000,000 
1,158,000,000 
 
 
25,817,000,000 
11,196,000,000 
 
 
114,283,000,000 
78,257,000,000 
 
 
 
 
 
Total shareholders' equity
48,275,000,000 
29,135,000,000 
 
 
(87,917,000,000)
(47,998,000,000)
 
 
48,275,000,000 
29,135,000,000 
 
 
24,614,000,000 
17,288,000,000 
 
 
63,303,000,000 
30,710,000,000 
 
 
 
 
 
Total liabilities and shareholders’ equity
$ 159,786,000,000 
$ 102,306,000,000 
 
 
$ (117,152,000,000)
$ (65,438,000,000)
 
 
$ 48,921,000,000 
$ 30,293,000,000 
 
 
$ 50,431,000,000 
$ 28,484,000,000 
 
 
$ 177,586,000,000 
$ 108,967,000,000 
 
 
 
 
 
Information provided in connection with outstanding debt of subsidiaries (Condensed Consolidating Statement Of Operations and Comprehensive Income) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
$ 28,145 
$ 17,713 
$ 17,799 
Net premiums earned
7,059 
7,688 
7,405 
6,597 
4,207 
4,719 
4,360 
3,927 
28,749 
17,213 
17,426 
Net Investment Income
744 
739 
708 
674 
532 
549 
562 
551 
2,865 
2,194 
2,252 
Net realized gains (losses) including OTTI
365 
100 
(216)
(394)
(60)
(397)
126 
(89)
(145)
(420)
(507)
Losses and loss expenses
3,855 
4,269 
4,254 
3,674 
2,302 
2,643 
2,417 
2,122 
16,052 
9,484 
9,649 
Policy benefits
161 
155 
146 
126 
159 
89 
153 
142 
588 
543 
517 
Policy acquisition costs and administrative expenses
 
 
 
 
 
 
 
 
8,985 
5,211 
5,320 
Interest (income) expense
 
 
 
 
 
 
 
 
605 
300 
280 
Other (Income) Expense
 
 
 
 
 
 
 
 
(222)
(51)
(190)
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
19 
171 
108 
Chubb integration expenses
 
 
 
 
 
 
 
 
492 
33 
0 
Income tax expense
 
 
 
 
 
 
 
 
815 
462 
634 
Net income
1,610 
1,360 
726 
439 
683 
528 
942 
681 
4,135 
2,834 
2,853 
Comprehensive income
 
 
 
 
 
 
 
 
4,556 
908 
2,892 
Chubb limited (Parent Guarantor)
 
 
 
 
 
 
 
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
 
 
0 
Net premiums earned
 
 
 
 
 
 
 
 
 
 
0 
Net Investment Income
 
 
 
 
 
 
 
 
3 
3 
2 
Equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
3,901 
2,673 
2,707 
Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
0 
0 
0 
Losses and loss expenses
 
 
 
 
 
 
 
 
 
 
0 
Policy benefits
 
 
 
 
 
 
 
 
 
 
0 
Policy acquisition costs and administrative expenses
 
 
 
 
 
 
 
 
64 
63 
78 
Interest (income) expense
 
 
 
 
 
 
 
 
(353)
(32)
(35)
Other (Income) Expense
 
 
 
 
 
 
 
 
(25)
(208)
(201)
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
0 
0 
0 
Chubb integration expenses
 
 
 
 
 
 
 
 
62 
3 
 
Income tax expense
 
 
 
 
 
 
 
 
21 
16 
14 
Net income
 
 
 
 
 
 
 
 
4,135 
2,834 
2,853 
Comprehensive income
 
 
 
 
 
 
 
 
4,556 
908 
2,892 
Chubb INA Holdings Inc. (Subsidiary Issuer)
 
 
 
 
 
 
 
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
0 
0 
0 
Net premiums earned
 
 
 
 
 
 
 
 
0 
0 
0 
Net Investment Income
 
 
 
 
 
 
 
 
11 
4 
2 
Equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
2,555 
1,038 
791 
Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
3 
(9)
53 
Losses and loss expenses
 
 
 
 
 
 
 
 
0 
0 
0 
Policy benefits
 
 
 
 
 
 
 
 
0 
0 
0 
Policy acquisition costs and administrative expenses
 
 
 
 
 
 
 
 
82 
28 
26 
Interest (income) expense
 
 
 
 
 
 
 
 
908 
302 
277 
Other (Income) Expense
 
 
 
 
 
 
 
 
35 
(4)
27 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
0 
0 
0 
Chubb integration expenses
 
 
 
 
 
 
 
 
126 
29 
 
Income tax expense
 
 
 
 
 
 
 
 
(416)
(349)
(94)
Net income
 
 
 
 
 
 
 
 
1,834 
1,027 
610 
Comprehensive income
 
 
 
 
 
 
 
 
2,001 
(192)
583 
Other Chubb Limited Subsidiaries and Eliminations
 
 
 
 
 
 
 
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
28,145 
17,713 
17,799 
Net premiums earned
 
 
 
 
 
 
 
 
28,749 
17,213 
17,426 
Net Investment Income
 
 
 
 
 
 
 
 
2,851 
2,187 
2,248 
Equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
 
 
0 
Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
(148)
(411)
(560)
Losses and loss expenses
 
 
 
 
 
 
 
 
16,052 
9,484 
9,649 
Policy benefits
 
 
 
 
 
 
 
 
588 
543 
517 
Policy acquisition costs and administrative expenses
 
 
 
 
 
 
 
 
8,839 
5,120 
5,216 
Interest (income) expense
 
 
 
 
 
 
 
 
50 
30 
38 
Other (Income) Expense
 
 
 
 
 
 
 
 
(232)
161 
(16)
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
19 
171 
108 
Chubb integration expenses
 
 
 
 
 
 
 
 
304 
1 
 
Income tax expense
 
 
 
 
 
 
 
 
1,210 
795 
714 
Net income
 
 
 
 
 
 
 
 
4,622 
2,684 
2,888 
Comprehensive income
 
 
 
 
 
 
 
 
5,045 
757 
2,926 
Consolidating Adjustments
 
 
 
 
 
 
 
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums written
 
 
 
 
 
 
 
 
 
 
0 
Net premiums earned
 
 
 
 
 
 
 
 
 
 
0 
Equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
(6,456)
(3,711)
(3,498)
Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
0 
0 
0 
Losses and loss expenses
 
 
 
 
 
 
 
 
 
 
0 
Policy benefits
 
 
 
 
 
 
 
 
 
 
0 
Policy acquisition costs and administrative expenses
 
 
 
 
 
 
 
 
 
 
0 
Interest (income) expense
 
 
 
 
 
 
 
 
 
 
0 
Amortization of Purchased Intangibles
 
 
 
 
 
 
 
 
0 
0 
0 
Chubb integration expenses
 
 
 
 
 
 
 
 
0 
0 
 
Income tax expense
 
 
 
 
 
 
 
 
 
0 
0 
Net income
 
 
 
 
 
 
 
 
(6,456)
(3,711)
(3,498)
Comprehensive income
 
 
 
 
 
 
 
 
$ (7,046)
$ (565)
$ (3,509)
Information provided in connection with outstanding debt of subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
$ 5,292 
$ 3,864 
$ 4,496 
Purchases of fixed maturities available for sale
(30,815)
(16,071)
(15,553)
Purchases of fixed maturities held to maturity
(282)
(62)
(267)
Purchases of equity securities
(146)
(158)
(251)
Sales of fixed maturities available for sale
16,677 
10,814 
7,482 
Sales of equity securities
1,000 
183 
670 
Maturities and redemptions of fixed maturities available for sale
9,349 
6,567 
6,413 
Maturities and redemptions of fixed maturities held to maturity
958 
669 
875 
Net change in short-term investments
12,350 
(8,216)
(603)
Net derivative instruments settlements
(168)
(21)
(230)
Acquisition of subsidiaries (net of cash acquired)
(14,248)
264 
(766)
Capital contribution to subsidiary
 
0 
0 
Other
10 
(263)
(274)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations
(5,315)
(6,294)
(2,504)
Dividends paid on Common Shares
(1,173)
(862)
(862)
Common Shares repurchased
 
(758)
(1,429)
Proceeds from issuance of long-term debt
 
6,090 
699 
Proceeds from issuance of repurchase agreements
2,310 
2,029 
1,978 
Repayments of Long-term Debt
 
(1,150)
(501)
Repayments of Short-term Debt
(2,311)
(2,027)
(1,977)
Proceeds from share-based compensation plans, including windfall tax benefits
167 
131 
127 
Advances from (to) affiliates
0 
 
 
Capital contribution from subsidiary
 
0 
0 
Policyholder contract deposits
522 
503 
366 
Policyholder contract withdrawals
(253)
(221)
(172)
Other
(4)
(40)
(6)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
(742)
3,695 
(1,777)
Effect of foreign currency rate changes on cash and cash equivalents
(25)
(145)
(139)
Net increase (decrease) in cash
(790)
1,120 
76 
Cash – beginning of year
1,775 1 2 3
655 2 4
579 4
Cash – end of year
985 2 5
1,775 1 2 3
655 2 4
Parent Company Only
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
3,618 
3,125 
541 
Purchases of fixed maturities available for sale
 
 
0 
Purchases of fixed maturities held to maturity
 
 
0 
Purchases of equity securities
 
 
0 
Sales of fixed maturities available for sale
 
 
0 
Sales of equity securities
 
 
0 
Maturities and redemptions of fixed maturities available for sale
 
 
0 
Maturities and redemptions of fixed maturities held to maturity
 
 
0 
Net change in short-term investments
0 
0 
0 
Net derivative instruments settlements
0 
0 
0 
Acquisition of subsidiaries (net of cash acquired)
 
 
0 
Capital contribution to subsidiary
(2,330)
(2,670)
0 
Other
 
 
0 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations
(2,330)
(2,670)
0 
Dividends paid on Common Shares
(1,173)
(862)
(862)
Common Shares repurchased
 
 
0 
Proceeds from issuance of long-term debt
 
 
0 
Repayments of Long-term Debt
 
 
0 
Repayments of Short-term Debt
0 
 
0 
Proceeds from share-based compensation plans, including windfall tax benefits
0 
0 
0 
Advances from (to) affiliates
404 
(228)
260 
Net proceeds from (Repayments to) affiliated notional cash pooling program
(519)
636 
61 
Dividends to parent company
 
 
0 
Policyholder contract deposits
0 
 
0 
Policyholder contract withdrawals
0 
 
0 
Other
 
 
   
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
(1,288)
(454)
(541)
Effect of foreign currency rate changes on cash and cash equivalents
 
0 
0 
Net increase (decrease) in cash
0 
1 
0 
Cash – beginning of year
1 1 2 3
0 4
0 4
Cash – end of year
1 2 5
1 1 2 3
0 4
Chubb INA Holdings Inc. (Subsidiary Issuer)
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
4,305 
682 
210 
Purchases of fixed maturities available for sale
(156)
 
0 
Purchases of fixed maturities held to maturity
 
 
0 
Purchases of equity securities
 
 
0 
Sales of fixed maturities available for sale
66 
 
0 
Sales of equity securities
 
 
0 
Maturities and redemptions of fixed maturities available for sale
66 
 
0 
Maturities and redemptions of fixed maturities held to maturity
 
 
0 
Net change in short-term investments
7,943 
(7,588)
(216)
Net derivative instruments settlements
(9)
(9)
53 
Acquisition of subsidiaries (net of cash acquired)
(14,282)
 
(258)
Capital contribution to subsidiary
(215)
(625)
0 
Other
(3)
(25)
(8)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations
(6,590)
(8,247)
(429)
Dividends paid on Common Shares
 
 
0 
Common Shares repurchased
 
 
0 
Proceeds from issuance of long-term debt
 
6,090 
699 
Proceeds from issuance of repurchase agreements
 
 
0 
Repayments of Long-term Debt
 
(1,150)
(500)
Repayments of Short-term Debt
0 
 
0 
Proceeds from share-based compensation plans, including windfall tax benefits
0 
0 
0 
Advances from (to) affiliates
(572)
95 
(298)
Capital contribution from subsidiary
2,330 
2,791 
 
Net proceeds from (Repayments to) affiliated notional cash pooling program
530 
(220)
309 
Dividends to parent company
 
 
0 
Policyholder contract deposits
0 
 
0 
Policyholder contract withdrawals
0 
 
0 
Other
(4)
(40)
(6)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
2,284 
7,566 
204 
Effect of foreign currency rate changes on cash and cash equivalents
 
0 
0 
Net increase (decrease) in cash
(1)
1 
(15)
Cash – beginning of year
2 1 2 3
1 2 4
16 4
Cash – end of year
1 2 5
2 1 2 3
1 2 4
Other Chubb Limited Subsidiaries and Eliminations
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
5,536 
3,836 
4,419 
Purchases of fixed maturities available for sale
(30,659)
(16,053)
(15,816)
Purchases of fixed maturities held to maturity
(282)
(62)
(267)
Purchases of equity securities
(146)
(158)
(251)
Sales of fixed maturities available for sale
16,611 
10,814 
7,750 
Sales of equity securities
1,000 
183 
670 
Maturities and redemptions of fixed maturities available for sale
9,283 
6,567 
6,413 
Maturities and redemptions of fixed maturities held to maturity
958 
669 
875 
Net change in short-term investments
4,407 
(628)
(392)
Net derivative instruments settlements
(159)
(12)
(283)
Acquisition of subsidiaries (net of cash acquired)
34 
264 
0 
Capital contribution to subsidiary
(2,330)
(2,791)
(766)
Other
13 
(256)
(266)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations
(1,270)
(1,463)
(2,333)
Dividends paid on Common Shares
 
 
0 
Common Shares repurchased
 
(758)
(1,429)
Proceeds from issuance of long-term debt
 
 
0 
Proceeds from issuance of repurchase agreements
2,310 
2,029 
1,978 
Repayments of Long-term Debt
 
 
(1)
Repayments of Short-term Debt
(2,311)
(2,027)
(1,977)
Proceeds from share-based compensation plans, including windfall tax benefits
167 
131 
127 
Advances from (to) affiliates
168 
133 
38 
Capital contribution from subsidiary
2,545 
3,295 
258 
Net proceeds from (Repayments to) affiliated notional cash pooling program
0 
 
 
Dividends to parent company
(8,167)
(3,779)
(674)
Policyholder contract deposits
522 
503 
366 
Policyholder contract withdrawals
(253)
(221)
(172)
Other
 
 
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
(5,019)
(694)
(1,486)
Effect of foreign currency rate changes on cash and cash equivalents
(25)
(145)
(139)
Net increase (decrease) in cash
(778)
1,534 
461 
Cash – beginning of year
2,743 1 2 3
1,209 4
748 4
Cash – end of year
1,965 2 5
2,743 1 2 3
1,209 4
Consolidating Adjustments
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
(8,167)
(3,779)
(674)
Purchases of fixed maturities available for sale
 
(18)
263 
Purchases of fixed maturities held to maturity
 
 
0 
Purchases of equity securities
 
 
0 
Sales of fixed maturities available for sale
 
 
(268)
Sales of equity securities
 
 
0 
Maturities and redemptions of fixed maturities available for sale
 
 
0 
Maturities and redemptions of fixed maturities held to maturity
 
 
0 
Net change in short-term investments
0 
0 
5 
Net derivative instruments settlements
 
 
0 
Acquisition of subsidiaries (net of cash acquired)
 
 
258 
Capital contribution to subsidiary
4,875 
6,086 
0 
Other
 
18 
0 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations
4,875 
6,086 
258 
Dividends paid on Common Shares
 
 
0 
Common Shares repurchased
 
 
0 
Proceeds from issuance of long-term debt
 
 
0 
Proceeds from issuance of repurchase agreements
 
 
0 
Repayments of Long-term Debt
 
0 
0 
Repayments of Short-term Debt
0 
 
0 
Proceeds from share-based compensation plans, including windfall tax benefits
0 
0 
0 
Advances from (to) affiliates
0 
 
0 
Capital contribution from subsidiary
(4,875)
(6,086)
(258)
Net proceeds from (Repayments to) affiliated notional cash pooling program
(11)
(416)1
(370)
Dividends to parent company
8,167 
3,779 
674 
Policyholder contract deposits
0 
0 
0 
Policyholder contract withdrawals
0 
0 
0 
Other
 
 
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
3,281 
(2,723)
46 
Effect of foreign currency rate changes on cash and cash equivalents
 
0 
0 
Net increase (decrease) in cash
(11)
(416)
(370)
Cash – beginning of year
(971)1 2 3
(555)2 4
(185)4
Cash – end of year
$ (982)2 5
$ (971)1 2 3
$ (555)2 4
Condensed Unaudited Quarterly Financial Data (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
$ 7,059 
$ 7,688 
$ 7,405 
$ 6,597 
$ 4,207 
$ 4,719 
$ 4,360 
$ 3,927 
$ 28,749 
$ 17,213 
$ 17,426 
Net Investment Income
744 
739 
708 
674 
532 
549 
562 
551 
2,865 
2,194 
2,252 
Net realized gains (losses) including OTTI
365 
100 
(216)
(394)
(60)
(397)
126 
(89)
(145)
(420)
(507)
Total revenues
8,168 
8,527 
7,897 
6,877 
4,679 
4,871 
5,048 
4,389 
31,469 
18,987 
19,171 
Losses and loss expenses
3,855 
4,269 
4,254 
3,674 
2,302 
2,643 
2,417 
2,122 
16,052 
9,484 
9,649 
Policy benefits
161 
155 
146 
126 
159 
89 
153 
142 
588 
543 
517 
Net income
$ 1,610 
$ 1,360 
$ 726 
$ 439 
$ 683 
$ 528 
$ 942 
$ 681 
$ 4,135 
$ 2,834 
$ 2,853 
Basic earnings per share
$ 3.44 
$ 2.90 
$ 1.55 
$ 0.98 
$ 2.10 
$ 1.63 
$ 2.89 
$ 2.08 
$ 8.94 
$ 8.71 
$ 8.50 
Diluted earnings per share
$ 3.41 
$ 2.88 
$ 1.54 
$ 0.97 
$ 2.08 
$ 1.62 
$ 2.86 
$ 2.05 
$ 8.87 
$ 8.62 
$ 8.42 
Schedule I (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
$ 98,158 
Fair Value
99,120 
Amount at Which Shown in the Balance Sheet
99,094 
Fixed maturities available for sale
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
79,536 
Fair Value
80,115 
Amount at Which Shown in the Balance Sheet
80,115 
Fixed maturities available for sale |
U.S. Treasury and agency
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
2,883 
Fair Value
2,870 
Amount at Which Shown in the Balance Sheet
2,870 
Fixed maturities available for sale |
Foreign
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
20,929 
Fair Value
21,440 
Amount at Which Shown in the Balance Sheet
21,440 
Fixed maturities available for sale |
Corporate securities
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
23,736 
Fair Value
24,149 
Amount at Which Shown in the Balance Sheet
24,149 
Fixed maturities available for sale |
Mortgage backed-securities
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
14,066 
Fair Value
14,007 
Amount at Which Shown in the Balance Sheet
14,007 
Fixed maturities available for sale |
States, municipalities, and political subdivisions
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
17,922 
Fair Value
17,649 
Amount at Which Shown in the Balance Sheet
17,649 
Fixed maturities held to maturity
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
10,644 
Fair Value
10,670 
Amount at Which Shown in the Balance Sheet
10,644 
Fixed maturities held to maturity |
U.S. Treasury and agency
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
655 
Fair Value
661 
Amount at Which Shown in the Balance Sheet
655 
Fixed maturities held to maturity |
Foreign
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
640 
Fair Value
667 
Amount at Which Shown in the Balance Sheet
640 
Fixed maturities held to maturity |
Corporate securities
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
2,771 
Fair Value
2,795 
Amount at Which Shown in the Balance Sheet
2,771 
Fixed maturities held to maturity |
Mortgage backed-securities
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
1,393 
Fair Value
1,428 
Amount at Which Shown in the Balance Sheet
1,393 
Fixed maturities held to maturity |
States, municipalities, and political subdivisions
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
5,185 
Fair Value
5,119 
Amount at Which Shown in the Balance Sheet
5,185 
Industrial, miscellaneous, and all others
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
706 
Fair Value
814 
Amount at Which Shown in the Balance Sheet
814 
Short-term investments
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
3,002 
Fair Value
3,002 
Amount at Which Shown in the Balance Sheet
3,002 
Other investments
 
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
 
Cost or Amortized Cost
4,270 
Fair Value
4,519 
Amount at Which Shown in the Balance Sheet
$ 4,519 
Schedule II (BALANCE SHEETS - Parent Company Only) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Assets
 
 
 
 
Short-term investments
$ 3,002 
$ 10,446 
 
 
Other investments
4,519 
3,291 
 
 
Cash
985 1 2
1,775 1 3 4
655 1 5
579 5
Other assets
5,090 
3,821 
 
 
Total assets
159,786 
102,306 
 
 
Liabilities
 
 
 
 
Accounts payable, accrued expenses, and other liabilities
8,617 
6,205 
 
 
Affiliated notional cash pooling program
300 
0 3
 
 
Short-term debt
500 
0 
 
 
Total liabilities
111,511 
73,171 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
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
(314)
(735)
 
 
Total shareholders' equity
48,275 
29,135 
29,587 
 
Total liabilities and shareholders’ equity
159,786 
102,306 
 
 
Parent Company Only
 
 
 
 
Assets
 
 
 
 
Investments in subsidiaries and affiliates on equity basis
38,408 
29,612 
 
 
Short-term investments
2 
1 
 
 
Other investments
25 
27 
 
 
Total investments
38,435 
29,640 
 
 
Cash
1 1 2
1 1 3 4
0 5
0 5
Due from subsidiaries and affiliates, net
10,482 
644 
 
 
Other assets
3 
8 
 
 
Total assets
48,921 
30,293 
 
 
Liabilities
 
 
 
 
Accounts payable, accrued expenses, and other liabilities
283 
276 
 
 
Affiliated notional cash pooling program
363 2
882 3
 
 
Total liabilities
646 
1,158 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
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
(314)
(735)
 
 
Total shareholders' equity
48,275 
29,135 
 
 
Total liabilities and shareholders’ equity
$ 48,921 
$ 30,293 
 
 
Schedule II Schedule II (STATEMENTS OF OPERATIONS - Parent Company Only) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Equity in net income of subsidiaries and affiliates
 
 
 
 
 
 
 
 
$ 264 
$ 113 
$ 231 
Net realized gains (losses)
365 
100 
(216)
(394)
(60)
(397)
126 
(89)
(145)
(420)
(507)
Total revenues
8,168 
8,527 
7,897 
6,877 
4,679 
4,871 
5,048 
4,389 
31,469 
18,987 
19,171 
Administrative and other (income) expense
 
 
 
 
 
 
 
 
3,081 
2,270 
2,245 
Income tax expense (benefit)
 
 
 
 
 
 
 
 
815 
462 
634 
Total expenses
 
 
 
 
 
 
 
 
26,519 
15,691 
15,684 
Net income
1,610 
1,360 
726 
439 
683 
528 
942 
681 
4,135 
2,834 
2,853 
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
4,556 
908 
2,892 
Chubb limited (Parent Guarantor)
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Investment income, including intercompany interest income
 
 
 
 
 
 
 
 
356 
35 
37 
Equity in net income of subsidiaries and affiliates
 
 
 
 
 
 
 
 
3,901 
2,673 
2,707 
Net realized gains (losses)
 
 
 
 
 
 
 
 
0 
0 
0 
Total revenues
 
 
 
 
 
 
 
 
4,257 
2,708 
2,744 
Administrative and other (income) expense
 
 
 
 
 
 
 
 
101 
(142)
(123)
Income tax expense (benefit)
 
 
 
 
 
 
 
 
21 
16 
14 
Total expenses
 
 
 
 
 
 
 
 
122 
(126)
(109)
Net income
 
 
 
 
 
 
 
 
4,135 
2,834 
2,853 
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
$ 4,556 
$ 908 
$ 2,892 
Schedule II (STATEMENTS OF CASH FLOWS - Parent Company Only) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
 
 
 
Purchases of fixed maturities available for sale
$ (30,759)
$ (16,040)
$ (15,553)
Sales of fixed maturities available for sale
16,621 
10,783 
7,482 
Net change in short-term investments
12,350 
(8,216)
(603)
Net derivative instruments settlements
(168)
(21)
(230)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations
(5,315)
(6,294)
(2,504)
Other
(10)
263 
274 
Dividends paid on Common Shares
(1,173)
(862)
(862)
Proceeds from issuance of repurchase agreements
2,310 
2,029 
1,978 
Repayments of Short-term Debt
2,311 
2,027 
1,977 
Proceeds from share-based compensation plans
167 
131 
127 
Net increase (decrease) in cash
(790)
1,120 
76 
Cash – beginning of year
1,775 1 2 3
655 1 4
579 4
Cash – end of year
985 1 5
1,775 1 2 3
655 1 4
Chubb limited (Parent Guarantor)
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Net cash flows from operating activities
3,618 
3,125 
541 
Net change in short-term investments
0 
0 
0 
Net derivative instruments settlements
0 
0 
0 
Capital contributions to subsidiaries
(2,330)
(2,670)
0 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations
(2,330)
(2,670)
0 
Other
 
 
0 
Dividends paid on Common Shares
(1,173)
(862)
(862)
Repayments of Short-term Debt
0 
 
0 
Advances (to) from affiliates
404 
(228)
260 
Net proceeds from (payments to) affiliated notional cash pooling programs
(519)
636 
61 
Proceeds from share-based compensation plans
0 
0 
0 
Net cash flows (used for) from financing activities
(1,288)
(454)
(541)
Net increase (decrease) in cash
0 
1 
0 
Cash – beginning of year
1 1 2 3
0 4
0 4
Cash – end of year
$ 1 1 5
$ 1 1 2 3
$ 0 4
Schedule IV (SUPPLEMENTAL INFORMATION CONCERNING REINSURANCE) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of Amount Assumed to Net
 
 
 
 
 
 
 
 
13.00% 
21.00% 
19.00% 
Net Amount
$ 7,059 
$ 7,688 
$ 7,405 
$ 6,597 
$ 4,207 
$ 4,719 
$ 4,360 
$ 3,927 
$ 28,749 
$ 17,213 
$ 17,426 
Assumed From Other Companies
 
 
 
 
 
 
 
 
3,744 
3,676 
3,336 
Ceded To Other Companies
 
 
 
 
 
 
 
 
6,806 
5,818 
5,465 
Direct Amount
 
 
 
 
 
 
 
 
31,811 
19,355 
19,555 
Property and Casualty [Member]
 
 
 
 
 
 
 
 
 
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of Amount Assumed to Net
 
 
 
 
 
 
 
 
14.00% 
25.00% 
23.00% 
Net Amount
 
 
 
 
 
 
 
 
23,796 
12,781 
12,767 
Assumed From Other Companies
 
 
 
 
 
 
 
 
3,284 
3,259 
2,923 
Ceded To Other Companies
 
 
 
 
 
 
 
 
6,407 
5,373 
4,940 
Direct Amount
 
 
 
 
 
 
 
 
26,919 
14,895 
14,784 
Accident and Health [Member]
 
 
 
 
 
 
 
 
 
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of Amount Assumed to Net
 
 
 
 
 
 
 
 
6.00% 
5.00% 
4.00% 
Net Amount
 
 
 
 
 
 
 
 
3,951 
3,501 
3,678 
Assumed From Other Companies
 
 
 
 
 
 
 
 
219 
168 
141 
Ceded To Other Companies
 
 
 
 
 
 
 
 
315 
351 
434 
Direct Amount
 
 
 
 
 
 
 
 
4,047 
3,684 
3,971 
Life [Member]
 
 
 
 
 
 
 
 
 
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of Amount Assumed to Net
 
 
 
 
 
 
 
 
24.00% 
27.00% 
28.00% 
Net Amount
 
 
 
 
 
 
 
 
1,002 
931 
981 
Assumed From Other Companies
 
 
 
 
 
 
 
 
241 
249 
272 
Ceded To Other Companies
 
 
 
 
 
 
 
 
84 
94 
91 
Direct Amount
 
 
 
 
 
 
 
 
$ 845 
$ 776 
$ 800 
Schedule VI (SUPPLEMENTARY INFORMATION CONCERNING PROPERTY AND CASUALTY OPERATIONS) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract]
 
 
 
Deferred Policy Acquisition Costs
$ 3,537 
$ 2,219 
$ 2,057 
Net Reserves for Unpaid Losses
47,832 
26,562 
27,008 
Unearned Premiums
14,779 
8,439 
8,222 
Net Premiums Earned
27,747 
16,282 
16,445 
Net Investment Income
2,656 
2,007 
2,071 
Net Losses and Loss Expenses Incurred Related to Current Year
17,256 
10,030 
10,176 
Net Losses and Loss Expenses Incurred Related to Prior Year
(1,204)
(546)
(527)
Amortization of Deferred Policy Acquisition Costs
5,654 
2,692 
2,805 
Net Paid Losses and Loss Expenses
15,715 
9,665 
9,235 
Net Premiums Written
$ 27,074 
$ 16,734 
$ 16,787