Document and Entity Information - SFr / shares	9 Months Ended
Document and Entity Information - SFr / shares	Sep. 30, 2018	Oct. 18, 2018	Dec. 31, 2017
Entity Information [Line Items]
Common Shares, par value	SFr 24.15		SFr 24.15
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
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 Small Business	false
Entity Emerging Growth Company	false
Common Shares Outstanding		460,805,372

Consolidated Balance Sheets - USD ($)
$ in Millions

Sep. 30, 2018

Dec. 31, 2017

Assets

Fixed maturities available for sale, at fair value (amortized cost – $78,637 and $77,835) (includes hybrid financial instruments of $12 and $5)

$ 77,853

$ 78,939

Fixed maturities held to maturity, at amortized cost (fair value – $13,284 and $14,474)

13,563

14,335

Equity securities, at fair value (cost – $843 and $737)

843

937

Short-term investments, at fair value and amortized cost

3,479

3,561

Other investments (cost – $5,425 and $4,417)

5,425

4,672

Total investments

101,163

102,444

Cash

1,053

^[1]

728

^[2]

Restricted Cash

^[1]

104

123

Securities lending collateral

2,143

1,737

Accrued investment income

857

909

Insurance and reinsurance balances receivable

10,193

9,334

Reinsurance Recoverable Losses And Loss Expenses

15,088

15,034

Reinsurance recoverable on policy benefits

206

184

Deferred policy acquisition costs

4,902

4,723

Value of business acquired

298

326

Goodwill

15,332

15,541

Other intangible assets

6,139

6,513

Prepaid reinsurance premiums

2,548

2,529

Investments in partially-owned insurance companies

656

662

Other assets

7,002

6,235

Total assets

167,684

167,022

Liabilities

Unpaid losses and loss expenses

63,029

63,179

Unearned premiums

15,725

15,216

Future policy benefits

5,463

5,321

Insurance and reinsurance balances payable

6,313

5,868

Securities lending payable

2,143

1,737

Accounts payable, accrued expenses, and other liabilities

9,343

9,545

Deferred tax liabilities

363

699

Repurchase agreements

1,414

1,408

Short-term debt

500

1,013

Long-term debt

12,149

11,556

Trust preferred securities

308

Total liabilities

116,750

115,850

Commitments and contingencies

Shareholders’ equity

Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 461,100,790 and 463,833,179 shares outstanding)

11,121

Common Shares in treasury (18,683,074 and 15,950,685 shares)

(2,372)

(1,944)

Additional Paid in Capital, Common Stock

12,853

13,978

Retained earnings

31,491

27,474

Accumulated other comprehensive income (loss) (AOCI)

(2,159)

543

Total shareholders’ equity

50,934

51,172

Total liabilities and shareholders’ equity

$ 167,684

$ 167,022

[1]

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

[2]

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Consolidated Balance Sheets (Parenthetical) $ in Millions	Sep. 30, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares
Statement of Financial Position [Abstract]
Available for sale, at amortized cost	$ 78,637	$ 77,835
Fixed maturities available for sale, hybrid financial instruments	12	5
Held to maturity, at Fair Value	13,284	14,474
Equity securities, at cost	843	737
Other investments, cost	$ 5,425	$ 4,417
Common Shares, shares issued \| shares	479,783,864	479,783,864
Common Shares, shares outstanding \| shares	461,100,790	463,833,179
Common Shares in treasury, shares \| shares	18,683,074	15,950,685

Consolidated Statements Of Operations and Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Net premiums written	$ 8,110	$ 7,902	$ 23,229	$ 22,193
Increase in unearned premiums	(202)	(95)	(630)	(377)
Net premiums earned	7,908	7,807	22,599	21,816
Net investment income	823	813	2,457	2,328
Net realized gains (losses):
Other-than-temporary impairment (OTTI) losses gross	(14)	(8)	(19)	(36)
OTTI on fixed maturities recognized in OCI (pre-tax)	3	0	3	1
Net OTTI losses recognized in income	(11)	(8)	(16)	(35)
Net realized gains (losses) excluding OTTI losses	30	(2)	51	119
Total net realized gains (losses) (includes $(38), $10, $(142) and $27 reclassified from AOCI)	19	(10)	35	84
Total revenues	8,750	8,610	25,091	24,228
Expenses
Losses and loss expenses	4,868	6,247	13,457	14,182
Policy benefits	127	169	428	500
Policy acquisition costs	1,504	1,488	4,432	4,334
Administrative expenses	719	714	2,158	2,096
Interest expense	164	150	488	451
Other (income) expense	(145)	(118)	(307)	(333)
Amortization of purchased intangibles	83	65	253	194
Chubb integration expenses	16	50	39	233
Total expenses	7,336	8,765	20,948	21,657
Income (loss) before income tax	1,414	(155)	4,143	2,571
Income tax expense (benefit) (includes $(4), nil, $(19) and $3 on reclassified unrealized gains and losses)	183	(85)	536	243
Net income (loss)	1,231	(70)	3,607	2,328
Other comprehensive income (loss)
Unrealized appreciation (depreciation)	(251)	153	(2,063)	919
Reclassification adjustment for net realized (gains) losses included in net income	38	(10)	142	(27)
Unrealized appreciation (Depreciation) after reclassification adjustment	(213)	143	(1,921)	892
Change in:
Cumulative foreign currency translation adjustment	(482)	665	(659)	901
Postretirement benefit liability adjustment	(21)	(63)	(61)	(118)
Other comprehensive income (loss), before income tax	(716)	745	(2,641)	1,675
Income tax (expense) benefit related to OCI items	77	(46)	356	(292)
Other comprehensive income (loss)	(639)	699	(2,285)	1,383
Comprehensive income	$ 592	$ 629	$ 1,322	$ 3,711
Earnings (loss) per share
Basic earnings (loss) per share	$ 2.66	$ (0.15)	$ 7.76	$ 4.98
Diluted earnings (loss) per share	$ 2.64	$ (0.15)	$ 7.71	$ 4.94

Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Total net realized gains (losses) reclassified from AOCI	$ (38)	$ 10	$ (142)	$ 27
Income tax expense on reclassified unrealized gains and loses	(4)	0	(19)	3
Stockholders' Equity Attributable to Parent	$ 50,934	$ 50,471	$ 50,934	$ 50,471

Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Common shares in treasury [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]	Cumulative Foreign Currency Translation Adjustment [Member]	Postretirement Benefit Liability Adjustment [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance - beginning of period at Dec. 31, 2016		$ 11,121	$ (1,480)	$ 15,335	$ 23,613	$ 1,058	$ (1,663)	$ 291
Common Shares repurchased			(707)
Net shares redeemed under employee share-based compensation plans			310	(311)
Exercise of stock options				(43)
Share-based compensation expense				223
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings				(987)
Net income (loss)	$ 2,328				2,328
Funding of dividends declared from Additional paid-in capital					987
Dividends declared on Common Shares					(987)
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $358 and $(310)						609
Amounts reclassified from AOCI, net of income tax benefit (expense) of $(19) and $3						(24)
Change in period, net of income tax benefit (expense) of $339 and $(307)						585
Change in period, net of income tax benefit (expense) of $5 and $(14)							887
Change in period, net of income tax benefit of $12 and $29								(89)
Balance - end of period at Sep. 30, 2017	50,471	11,121	(1,877)	14,217	25,941	1,643	(776)	202	$ 1,069
Cumulative effect of adoption of accounting guidance (refer to Note 1)					410	(417)
Balance - beginning of period at Dec. 31, 2017	51,172	11,121	(1,944)	13,978	27,884	1,033	(1,187)	280
Balance - beginning of period (Previous Accounting Guidance [Member]) at Dec. 31, 2017					27,474	1,450
Common Shares repurchased			(703)
Net shares redeemed under employee share-based compensation plans			275	(261)
Exercise of stock options				(42)
Share-based compensation expense				186
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings				(1,008)
Net income (loss)	3,607				3,607
Funding of dividends declared from Additional paid-in capital					1,008
Dividends declared on Common Shares					(1,008)
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $358 and $(310)						(1,705)
Amounts reclassified from AOCI, net of income tax benefit (expense) of $(19) and $3						123
Change in period, net of income tax benefit (expense) of $339 and $(307)						(1,582)
Change in period, net of income tax benefit (expense) of $5 and $(14)							(654)
Change in period, net of income tax benefit of $12 and $29								(49)
Balance - end of period at Sep. 30, 2018	$ 50,934	$ 11,121	$ (2,372)	$ 12,853	$ 31,491	$ (549)	$ (1,841)	$ 231	$ (2,159)

Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Statement of Stockholders' Equity [Abstract]
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax	$ 358	$ (310)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	(19)	3
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit	339	(307)
Cumulative translation adjustment, Change in period, income tax(expense) benefit	5	(14)
Pension liability adjustment, Change in period, income tax (expense) benefit	$ 12	$ 29

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net income	$ 3,607	$ 2,328
Adjustments to reconcile net income to net cash flows from operating activities
Net realized (gains) losses	(35)	(84)
Amortization of premiums/discounts on fixed maturities	454	526
Amortization of purchased intangibles	253	194
Deferred income taxes	46	(151)
Unpaid losses and loss expenses	436	2,789
Unearned premiums	779	340
Future policy benefits	170	186
Insurance and reinsurance balances payable	574	247
Accounts payable, accrued expenses, and other liabilities	(172)	(828)
Income taxes payable	182	(262)
Insurance and reinsurance balances receivable	(1,074)	(339)
Reinsurance recoverable on losses and loss expenses	(195)	(976)
Reinsurance recoverable on policy benefits	(24)	(10)
Deferred policy acquisition costs	(270)	(256)
Prepaid reinsurance premiums	(129)	(14)
Other	(705)	(279)
Net cash flows from operating activities	3,897	3,411
Cash flows from investing activities
Purchases of fixed maturities available for sale	(16,788)	(18,478)
Purchases of fixed maturities held to maturity	(380)	(262)
Purchases of equity securities	(148)	(125)
Sales of fixed maturities available for sale	9,041	9,215
Sales of equity securities	247	152
Maturities and redemptions of fixed maturities available for sale	5,482	7,699
Maturities and redemptions of fixed maturities held to maturity	1,001	644
Net change in short-term investments	64	44
Net derivative instruments settlements	(46)	(170)
Private equity contribution	(1,112)	(485)
Private equity distribution	743	744
Other	(231)	(319)
Net cash flows used for investing activities	(2,127)	(1,341)
Cash flows from financing activities
Dividends paid on Common Shares	(1,001)	(978)
Common Shares repurchased	(732)	(707)
Proceeds from issuance of long-term debt	(2,001)	(500)
Proceeds from issuance of repurchase agreements	1,572	1,798
Proceeds from Issuance of Long-term Debt	2,171	0
Repayment of repurchase agreements	(1,566)	(1,793)
Proceeds from share-based compensation plans	86	109
Policyholder contract deposits	269	312
Policyholder contract withdrawals	(222)	(211)
Net cash flows used for financing activities	(1,424)	(1,970)
Effect of foreign currency rate changes on cash and restricted cash	(40)	5
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	306	105
Cash and Restricted Cash - Beginning of year	851	1,088
Cash and Restricted Cash - end of Year	1,157	1,193
Supplemental cash flow information
Taxes paid	313	652
Interest paid	$ 403	$ 404

General

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

a) Basis of presentation

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. Chubb operates 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. Refer to Note 10 for additional information.

The interim unaudited 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 results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2017 Form 10-K.

b) Restricted cash

Effective January 1, 2018, we retrospectively adopted guidance on "Restricted Cash" that clarified the presentation of restricted cash on the consolidated statement of cash flows. As a result, we revised the statement of cash flows for the nine months ended September 30, 2017 to include restricted cash in the beginning and ending cash balances. In addition, we reclassified $123 million of Restricted cash from Other assets to a separate line in the balance sheet as of December 31, 2017.

Restricted cash in the consolidated balance sheets represents amounts held for the benefit of third parties and is legally or contractually restricted as to withdrawal or usage. Amounts include deposits with U.S. and non-U.S. regulatory authorities, trust funds set up for the benefit of ceding companies, and amounts pledged as collateral to meet financing arrangements.

The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows:



	September 30		December 31
(in millions of U.S. dollars)	2018		2017
Cash	$	1,053	$	728
Restricted cash	104		123
Total cash and restricted cash shown in the consolidated statements of cash flows	$	1,157	$	851

c) Goodwill

During the nine months ended September 30, 2018, Goodwill decreased $209 million, primarily reflecting the impact of foreign exchange.

d) Accounting guidance adopted in 2018

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. This guidance was effective for us on January 1, 2018. The adoption of this guidance did not 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

Effective January 2018, we adopted new accounting guidance on "Recognition and Measurement of Financial Assets and Financial Liabilities" on a modified-retrospective basis. The guidance requires equity investments, other than those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized through net income. The guidance impacts our public equities and cost-method private equities. As a result, we recorded a cumulative-effect adjustment to increase beginning Retained earnings by $417 million after tax ($454 million pre-tax), representing the unrealized appreciation on our equity investments with an offsetting adjustment to decrease Accumulated other comprehensive income. All subsequent changes in fair value of our equity investments are recognized within realized gains (losses) on the consolidated statement of operations. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance.

Income Taxes

Effective January 2018, we adopted new accounting guidance on “Intra-Entity Transfers of Assets Other Than Inventory” on a modified-retrospective basis. Under the new guidance, we will no longer defer taxes on intra-company asset transfers and will recognize any related income tax expense (benefit) immediately through the consolidated statement of operations. As a result, we recorded a cumulative-effect adjustment to decrease beginning Retained earnings by $7 million representing the removal of the deferred tax asset for previous intra-company asset transfer transactions not yet recognized through earnings.

Income Tax Accounting Implications of the Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act (2017 Tax Act) was signed into legislation in December 2017. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (SAB 118), Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which provides guidance for the application of the 2017 Tax Act. The income tax guidance allows for the transition impact of the 2017 Tax Act to be recorded as 1) complete with all accounting implications identified, 2) provisional based on a reasonable estimate, or 3) not recorded as no reasonable estimate was determinable.

In December 2017, we recorded a $450 million income tax benefit which was our estimate of the tax effects of the 2017 Tax Act. This amount was recorded as provisional under SAB 118. During the third quarter of 2018, we increased our provisional income tax benefit by $20 million, from $450 million to $470 million. This increase, which is also provisional, relates to the recognition of certain foreign tax credits consistent with proposed regulations issued under IRC Section 965. We will continue to analyze the impact of the 2017 Tax Act. The final amount of the tax benefit recognized may increase or decrease as a result of this analysis and as new regulations and interpretive guidance are released in the fourth quarter of 2018.

Changes to the Disclosure Requirements for Fair Value Measurements

In August 2018, the FASB issued amendments to modify the disclosure requirements on fair value measurements as part of the disclosure framework project whose objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements. The amendments in this update allow for the removal of (1) the amount and reasons for transfer between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. This update also requires the expanded discussion on unobservable inputs that are significant to the fair value measurement. We have early adopted the amendments that allow the removal of certain disclosures and deferred the adoption of the additional disclosure until the effective date in the first quarter of 2020. The guidance changes disclosure only and did not have an impact on our financial condition or results of operations.

e) Accounting guidance not yet adopted

Lease Accounting

In February 2016, the FASB issued accounting guidance requiring leases with lease terms of more than 12 months to recognize

a right of use asset and a corresponding lease liability on the balance sheets. This accounting guidance is effective for us in the

first quarter of 2019 on a modified retrospective basis with early adoption permitted. In January 2018, the FASB issued a

proposed update that provides an alternative transition method of adoption, permitting the recognition of a cumulative-effect

adjustment to retained earnings on the date of adoption. The adoption of this guidance is not expected to have a material effect on our results of operations, financial position or liquidity. Based on the number and type of our leases, we expect that the most significant impact will be the recognition of a right of use asset and a corresponding lease liability for our real estate leases of approximately $800 million.

Targeted Improvements to the Accounting for Long-Duration Contracts

In August 2018, the FASB issued guidance to improve the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The amendments in this update require more frequent updating of assumptions and a standardized discount rate for the future policy benefit liability, a requirement to use the fair value measurement model for policies with market risk benefits, simplified amortization of deferred acquisition costs, and enhanced disclosures.

This standard will be effective for us in the first quarter of 2021 with early adoption permitted. We are currently assessing the effect of adopting this guidance on our financial condition and results of operations. We will be better able to quantify the effect of adopting this standard as we progress in our implementation process and draw nearer to the date of adoption.

Changes to the Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued amendments to modify the disclosure requirements on defined benefit pension or other postretirement plans as part of the disclosure framework project whose objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements. The amendments in this update allow for the removal and addition of various disclosures and is effective the first quarter of 2021. Early adoption is permitted. The guidance changes disclosure only and will not have an impact on our financial condition or results of operations.

Refer to the 2017 Form 10-K for information on other accounting guidance not yet adopted.

f) Subsequent event

During October 2018, Hurricane Michael made landfall in Florida in the U.S. At this time, there are uncertainties surrounding the number of claims and scope of damage for this named catastrophe. At the time of this filing, our very early indication of the pre-tax loss estimate, net of reinsurance and reinstatement premiums, related to Hurricane Michael is $150 million to $250 million. This estimate may increase or decrease as additional information emerges. The impact of this event will be reflected in our fourth quarter 2018 results.

Investments

9 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investments

a) Fixed maturities



September 30, 2018	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Fair Value		OTTI Recognized in AOCI
(in millions of U.S. dollars)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Fair Value		OTTI Recognized in AOCI
Available for sale
U.S. Treasury and agency	$	4,137	$	13	$	(101	)	$	4,049	$	—
Foreign	21,280		374		(299		)	21,355		—
Corporate securities	24,905		248		(358		)	24,795		(6		)
Mortgage-backed securities	16,395		26		(523		)	15,898		(1		)
States, municipalities, and political subdivisions	11,920		42		(206		)	11,756		—
	$	78,637	$	703	$	(1,487	)	$	77,853	$	(7	)
Held to maturity
U.S. Treasury and agency	$	1,112	$	6	$	(25	)	$	1,093	$	—
Foreign	1,601		10		(25		)	1,586		—
Corporate securities	2,658		11		(91		)	2,578		—
Mortgage-backed securities	2,574		4		(75		)	2,503		—
States, municipalities, and political subdivisions	5,618		10		(104		)	5,524		—
	$	13,563	$	41	$	(320	)	$	13,284	$	—



December 31, 2017	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Fair Value		OTTI Recognized in AOCI
(in millions of U.S. dollars)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Fair Value		OTTI Recognized in AOCI
Available for sale
U.S. Treasury and agency	$	3,701	$	32	$	(35	)	$	3,698	$	—
Foreign	20,514		622		(106		)	21,030		(1		)
Corporate securities	23,453		638		(95		)	23,996		(4		)
Mortgage-backed securities	15,279		111		(100		)	15,290		(1		)
States, municipalities, and political subdivisions	14,888		125		(88		)	14,925		—
	$	77,835	$	1,528	$	(424	)	$	78,939	$	(6	)
Held to maturity
U.S. Treasury and agency	$	908	$	12	$	(5	)	$	915	$	—
Foreign	1,738		27		(8		)	1,757		—
Corporate securities	3,159		67		(7		)	3,219		—
Mortgage-backed securities	2,724		23		(5		)	2,742		—
States, municipalities, and political subdivisions	5,806		50		(15		)	5,841		—
	$	14,335	$	179	$	(40	)	$	14,474	$	—

As discussed in Note 2 b), 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 statements of shareholders’ equity. For the three and nine months ended September 30, 2018, $2 million and $6 million, respectively, of net unrealized depreciation related to such securities is included in OCI. For the three and nine months ended September 30, 2017, $1 million of net unrealized appreciation and $2 million of net unrealized depreciation, respectively, related to such securities is included in OCI. At September 30, 2018 and December 31, 2017, AOCI included cumulative net unrealized appreciation of $1 million and $7 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-backed securities (TBAs) held (refer to Note 6 b) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 82 percent and 83 percent of the total mortgage-backed securities at September 30, 2018 and December 31, 2017, respectively, 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:



			September 30				December 31
			2018				2017
(in millions of U.S. dollars)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
Due in 1 year or less	$	3,736	$	3,742	$	3,164	$	3,182
Due after 1 year through 5 years	26,694		26,646		24,749		25,068
Due after 5 years through 10 years	23,638		23,325		25,388		25,704
Due after 10 years	8,174		8,242		9,255		9,695
	62,242		61,955		62,556		63,649
Mortgage-backed securities	16,395		15,898		15,279		15,290
	$	78,637	$	77,853	$	77,835	$	78,939
Held to maturity
Due in 1 year or less	$	567	$	569	$	743	$	746
Due after 1 year through 5 years	2,959		2,925		2,669		2,688
Due after 5 years through 10 years	4,507		4,400		4,744		4,756
Due after 10 years	2,956		2,887		3,455		3,542
	10,989		10,781		11,611		11,732
Mortgage-backed securities	2,574		2,503		2,724		2,742
	$	13,563	$	13,284	$	14,335	$	14,474

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) 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 and securities lending collateral are reviewed to identify impaired securities to be specifically evaluated for a potential OTTI. Refer to the 2017 Form 10-K for information on our evaluation of OTTI for all non-fixed maturities prior to our adoption of new accounting guidance on financial instruments, effective January 1, 2018.

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.

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.

For the three and nine months ended September 30, 2018, credit losses recognized in Net income for corporate securities were $8 million and $9 million, respectively. For the three and nine months ended September 30, 2017, credit losses recognized in Net income for corporate securities were $3 million and $5 million, 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.

For the three and nine months ended September 30, 2018 and 2017, there were no credit losses recognized in Net income for mortgage-backed securities.

The following table presents the components of Net realized gains (losses):



	Three Months Ended						Nine Months Ended
	September 30						September 30
(in millions of U.S. dollars)	2018			2017			2018			2017
Fixed maturities:
OTTI on fixed maturities, gross	$	(14	)	$	(5	)	$	(19	)	$	(16	)
OTTI on fixed maturities recognized in OCI (pre-tax)	3			—			3			1
OTTI on fixed maturities, net	(11		)	(5		)	(16		)	(15		)
Gross realized gains excluding OTTI	64			30			229			109
Gross realized losses excluding OTTI	(91		)	(19		)	(355		)	(77		)
Total fixed maturities	(38		)	6			(142		)	17
Equity securities:
OTTI on equity securities	—			(1		)	—			(9		)
Gross realized gains excluding OTTI	48			6			63			21
Gross realized losses excluding OTTI	(13		)	(1		)	(41		)	(2		)
Total equity securities	35			4			22			10
OTTI on other investments	—			(2		)	—			(11		)
Other investments	5			—			23			—
Foreign exchange gains (losses)	39			15			102			10
Investment and embedded derivative instruments	37			(14		)	78			(24		)
Fair value adjustments on insurance derivative	54			54			133			265
S&P put options and futures	(100		)	(57		)	(122		)	(169		)
Other derivative instruments	(8		)	(5		)	2			(4		)
Other	(5		)	(11		)	(61		)	(10		)
Net realized gains (losses)	$	19		$	(10	)	$	35		$	84

Other net realized gains (losses) for the nine months ended September 30, 2018, included a $36 million loss from the extinguishment of debt as discussed in Note 5 and a $22 million loss related to lease impairments.

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:



	Three Months Ended						Nine Months Ended
	September 30						September 30
(in millions of U.S. dollars)	2018			2017			2018			2017
Balance of credit losses related to securities still held – beginning of period	$	16		$	29		$	22		$	35
Additions where no OTTI was previously recorded	6			2			7			3
Additions where an OTTI was previously recorded	2			1			2			2
Reductions for securities sold during the period	(3		)	(7		)	(10		)	(15		)
Balance of credit losses related to securities still held – end of period	$	21		$	25		$	21		$	25

c) Equity securities and Other investments

Effective January 1, 2018, we adopted new accounting guidance that requires any changes in fair value of equity securities and other investments that are accounted for under the cost-method to be recognized immediately in realized gains and losses in net income. As a result, beginning on January 1, 2018, realized gains and losses from these investments include both sales of securities and unrealized gains and losses as follows:



	Three Months Ended								Nine Months Ended
	September 30, 2018								September 30, 2018
(in millions of U.S. dollars)	Equity Securities			Other Investments		Total			Equity Securities			Other Investments		Total
Net gains (losses) recognized during the period	$	35		$	5	$	40		$	22		$	23	$	45
Less: Net gains (losses) recognized from sales of securities	48			—		48			63			—		63
Unrealized gains (losses) recognized for securities still held at reporting date	$	(13	)	$	5	$	(8	)	$	(41	)	$	23	$	(18	)

At December 31, 2017, the cost, gross unrealized appreciation, gross unrealized depreciation, and fair value of equity securities was $737 million, $212 million, $12 million, and $937 million, respectively. At December 31, 2017, the net unrealized appreciation (depreciation) was recorded within accumulated other comprehensive income on the balance sheet.

d) Gross unrealized loss

At September 30, 2018, there were 17,978 fixed maturities out of a total of 31,196 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $13 million. Fixed maturities in an unrealized loss position at September 30, 2018, 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
September 30, 2018	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
(in millions of U.S. dollars)	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
U.S. Treasury and agency	$	2,775	$	(57	)	$	1,912	$	(69	)	$	4,687	$	(126	)
Foreign	8,760		(194		)	3,683		(130		)	12,443		(324		)
Corporate securities	14,323		(335		)	2,272		(114		)	16,595		(449		)
Mortgage-backed securities	12,575		(371		)	4,029		(227		)	16,604		(598		)
States, municipalities, and political subdivisions	12,328		(223		)	2,712		(87		)	15,040		(310		)
Total fixed maturities	$	50,761	$	(1,180	)	$	14,608	$	(627	)	$	65,369	$	(1,807	)



	0 – 12 Months					Over 12 Months					Total
December 31, 2017	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
(in millions of U.S. dollars)	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
U.S. Treasury and agency	$	2,172	$	(14	)	$	1,249	$	(26	)	$	3,421	$	(40	)
Foreign	5,657		(65		)	1,693		(49		)	7,350		(114		)
Corporate securities	5,210		(56		)	1,332		(46		)	6,542		(102		)
Mortgage-backed securities	6,194		(31		)	3,209		(74		)	9,403		(105		)
States, municipalities, and political subdivisions	9,259		(71		)	1,402		(32		)	10,661		(103		)
Total fixed maturities	28,492		(237		)	8,885		(227		)	37,377		(464		)
Equity securities	115		(12		)	—		—			115		(12		)
Other investments	78		(8		)	—		—			78		(8		)
Total	$	28,685	$	(257	)	$	8,885	$	(227	)	$	37,570	$	(484	)

e) 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, which represent Chubb's agreement to sell securities and repurchase them at a future date for a predetermined price. 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 September 30, 2018 and December 31, 2017 are investments, primarily fixed maturities, totaling $21.0 billion and $23.3 billion, respectively, and cash of $104 million and $123 million, respectively.

The following table presents the components of restricted assets:



	September 30		December 31
(in millions of U.S. dollars)	2018		2017
Trust funds	$	14,324	$	17,011
Deposits with U.S. regulatory authorities	2,453		2,345
Deposits with non-U.S. regulatory authorities	2,201		2,250
Assets pledged under repurchase agreements	1,470		1,434
Other pledged assets	628		414
	$	21,076	$	23,454

Fair value measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

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.

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 and interest rate swaps is based on market valuations and is 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. 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) associated with variable annuity contracts. We also assume the risk of guaranteed minimum accumulation benefits (GMAB). However, at September 30, 2018, the risks related to our GMAB programs are minimal given that the majority of these policies are no longer in-force. 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.

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.

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. For the three and nine months ended September 30, 2018, no material technical refinements were made to the model. During the nine months ended September 30, 2017, we updated aspects of our valuation model relating to interest rates. This resulted in a decrease to the fair value of GLB liabilities generating a realized gain of approximately $94 million. During the nine months ended September 30, 2017, there were no other material changes to actuarial or behavioral assumptions. For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2017 Form 10-K.

Financial instruments measured at fair value on a recurring basis, by valuation hierarchy



September 30, 2018	Level 1		Level 2		Level 3		Total
(in millions of U.S. dollars)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities available for sale
U.S. Treasury and agency	$	3,272	$	777	$	—	$	4,049
Foreign	—		21,032		323		21,355
Corporate securities	—		23,621		1,174		24,795
Mortgage-backed securities	—		15,833		65		15,898
States, municipalities, and political subdivisions	—		11,756		—		11,756
	3,272		73,019		1,562		77,853
Equity securities	790		—		53		843
Short-term investments	1,832		1,641		6		3,479
Other investments ⁽¹⁾	395		338		263		996
Securities lending collateral	—		2,143		—		2,143
Investment derivative instruments	29		26		—		55
Other derivative instruments	5		—		—		5
Separate account assets	2,880		113		—		2,993
Total assets measured at fair value ⁽¹⁾	$	9,203	$	77,280	$	1,884	$	88,367
Liabilities:
Investment derivative instruments	$	24	$	—	$	—	$	24
Other derivative instruments	7		—		2		9
GLB ⁽²⁾	—		—		71		71
Total liabilities measured at fair value	$	31	$	—	$	73	$	104


⁽¹⁾	Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $4,368 million and other investments of $61 million at September 30, 2018 measured using NAV as a practical expedient.


⁽²⁾	Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets.



December 31, 2017	Level 1		Level 2		Level 3		Total
(in millions of U.S. dollars)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities available for sale
U.S. Treasury and agency	$	3,129	$	569	$	—	$	3,698
Foreign	—		20,937		93		21,030
Corporate securities	—		22,959		1,037		23,996
Mortgage-backed securities	—		15,212		78		15,290
States, municipalities, and political subdivisions	—		14,925		—		14,925
	3,129		74,602		1,208		78,939
Equity securities	893		—		44		937
Short-term investments	2,309		1,252		—		3,561
Other investments ⁽¹⁾	466		305		263		1,034
Securities lending collateral	—		1,737		—		1,737
Investment derivative instruments	18		—		—		18
Other derivative instruments	1		—		—		1
Separate account assets	2,635		99		—		2,734
Total assets measured at fair value ⁽¹⁾	$	9,451	$	77,995	$	1,515	$	88,961
Liabilities:
Investment derivative instruments	$	30	$	—	$	—	$	30
Other derivative instruments	21		—		2		23
GLB ⁽²⁾	—		—		204		204
Total liabilities measured at fair value	$	51	$	—	$	206	$	257


⁽¹⁾	Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,623 million and other investments of $15 million at December 31, 2017 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.

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:



				September 30				December 31
	Expected Liquidation Period of Underlying Assets			2018				2017
(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	$	514	$	281	$	540	$	330
Real Assets	3 to 7 Years	692		186		651		114
Distressed	3 to 7 Years	301		116		289		141
Private Credit	3 to 7 Years	164		307		187		327
Traditional	3 to 15 Years	2,350		2,326		1,656		3,149
Vintage	1 to 2 Years	69		—		30		—
Investment funds	Not Applicable	278		—		270		—
		$	4,368	$	3,216	$	3,623	$	4,061

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 or where the funds’ commitment periods have 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 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. The majority of our fixed maturities classified as Level 3 used external pricing when markets are less liquid due to the lack of market inputs (i.e., stale pricing, broker quotes).

(in millions of U.S. dollars, except for percentages)

Fair Value

Valuation

Technique

Significant

Unobservable Inputs

Ranges

September 30, 2018

December 31, 2017

GLB ⁽¹⁾

$

71

$

204

Actuarial model

Lapse rate

3% – 33%

Annuitization rate

0% – 100%


⁽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 3 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
Three Months Ended	Available-for-Sale Debt Securities									Equity securities			Short-term investments			Other investments			Other derivative instruments		GLB ⁽²⁾
September 30, 2018	Foreign			Corporate securities ⁽¹⁾			MBS
(in millions of U.S. dollars)	Foreign			Corporate securities ⁽¹⁾			MBS
Balance – beginning of period	$	252		$	1,181		$	82		$	59		$	12		$	264		$	2	$	125
Transfers into Level 3	5			18			—			—			—			—			—		—
Transfers out of Level 3	(2		)	(21		)	—			—			—			—			—		—
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange	(2		)	7			—			(1		)	—			(4		)	—		—
Net Realized Gains/Losses	(2		)	(6		)	—			7			—			—			—		(54		)
Purchases	98			98			1			6			—			20			—		—
Sales	(22		)	(18		)	—			(18		)	—			—			—		—
Settlements	(4		)	(85		)	(18		)	—			(6		)	(17		)	—		—
Balance – end of period	$	323		$	1,174		$	65		$	53		$	6		$	263		$	2	$	71
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date	$	(1	)	$	(6	)	$	—		$	1		$	—		$	—		$	—	$	(54	)


⁽¹⁾	Purchases in Level 3 primarily consist of privately-placed fixed income securities.

⁽²⁾

Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $453 million at September 30, 2018, and $497 million at June 30, 2018, which includes a fair value derivative adjustment of $71 million and $125 million, respectively.



	Assets																				Liabilities
Three Months Ended	Available-for-Sale Debt Securities									Equity securities			Short-term investments			Other investments			Other derivative instruments		GLB ⁽¹⁾
September 30, 2017	Foreign			Corporate securities			MBS
(in millions of U.S. dollars)	Foreign			Corporate securities			MBS
Balance – beginning of period	$	85		$	747		$	45		$	39		$	7		$	243		$	2	$	357
Transfers into Level 3	—			111			—			—			—			—			—		—
Transfers out of Level 3	(3		)	(26		)	—			—			—			—			—		—
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange	1			(1		)	—			—			—			—			—		—
Net Realized Gains/Losses	—			—			—			1			—			—			—		(54		)
Purchases	24			169			7			17			1			15			—		—
Sales	(14		)	(24		)	—			(5		)	—			—			—		—
Settlements	(3		)	(57		)	(8		)	—			(8		)	(6		)	—		—
Balance – end of period	$	90		$	919		$	44		$	52		$	—		$	252		$	2	$	303
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date	$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	(54	)

⁽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 $635 million at September 30, 2017, and $684 million at June 30, 2017, which includes a fair value derivative adjustment of $303 million and $357 million, respectively.



	Assets																		Liabilities
Nine Months Ended	Available-for-Sale Debt Securities									Equity securities			Short-term investments			Other investments			Other derivative instruments		GLB⁽²⁾
September 30, 2018	Foreign			Corporate securities ⁽¹⁾			MBS
(in millions of U.S. dollars)	Foreign			Corporate securities ⁽¹⁾			MBS
Balance – beginning of period	$	93		$	1,037		$	78		$	44		$	—		$	263		$	2	$	204
Transfers into Level 3	12			24			1			—			5			—			—		—
Transfers out of Level 3	(2		)	(31		)	—			—			—			—			—		—
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange	—			(5		)	—			—			—			(2		)	—		—
Net Realized Gains/Losses	(2		)	(4		)	—			6			—			1			—		(133		)
Purchases	280			454			5			26			9			50			—		—
Sales	(52		)	(114		)	—			(23		)	—			—			—		—
Settlements	(6		)	(187		)	(19		)	—			(8		)	(49		)	—		—
Balance – end of period	$	323		$	1,174		$	65		$	53		$	6		$	263		$	2	$	71
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date	$	(1	)	$	(6	)	$	—		$	—		$	—		$	1		$	—	$	(133	)


⁽¹⁾	Purchases in Level 3 primarily consist of privately-placed fixed income securities.

⁽²⁾

Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $453 million at September 30, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $71 million and $204 million, respectively.



	Assets																					Liabilities
Nine Months Ended	Available-for-Sale Debt Securities									Equity securities			Short-term investments			Other investments			Other derivative instruments			GLB⁽¹⁾
September 30, 2017	Foreign			Corporate securities			MBS
(in millions of U.S. dollars)	Foreign			Corporate securities			MBS
Balance – beginning of period	$	74		$	681		$	45		$	41		$	25		$	225		$	13		$	559
Transfers into Level 3	—			168			—			—			—			—			—			9
Transfers out of Level 3	(3		)	(93		)	—			—			—			—			(9		)	—
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange	3			(9		)	—			1			—			3			—			—
Net Realized Gains/Losses	1			(1		)	—			1			—			—			(2		)	(265		)
Purchases	57			390			8			23			15			39			—			—
Sales	(36		)	(79		)	(1		)	(14		)	—			—			—			—
Settlements	(6		)	(138		)	(8		)	—			(40		)	(15		)	—			—
Balance – end of period	$	90		$	919		$	44		$	52		$	—		$	252		$	2		$	303
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date	$	—		$	—		$	—		$	—		$	—		$	—		$	(2	)	$	(265	)

⁽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 $635 million at September 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $303 million and $559 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.

Refer to the 2017 Form 10-K for information on the fair value methods and assumptions for investments in partially-owned insurance companies, short-term and long-term debt, repurchase agreements, and trust-preferred securities.

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



September 30, 2018	Fair Value								Carrying Value
(in millions of U.S. dollars)	Level 1		Level 2		Level 3		Total		Carrying Value
Assets:
Fixed maturities held to maturity
U.S. Treasury and agency	$	1,039	$	54	$	—	$	1,093	$	1,112
Foreign	—		1,586		—		1,586		1,601
Corporate securities	—		2,547		31		2,578		2,658
Mortgage-backed securities	—		2,503		—		2,503		2,574
States, municipalities, and political subdivisions	—		5,524		—		5,524		5,618
Total assets	$	1,039	$	12,214	$	31	$	13,284	$	13,563
Liabilities:
Repurchase agreements	$	—	$	1,414	$	—	$	1,414	$	1,414
Short-term debt	—		510		—		510		500
Long-term debt	—		12,224		—		12,224		12,149
Trust preferred securities	—		432		—		432		308
Total liabilities	$	—	$	14,580	$	—	$	14,580	$	14,371



December 31, 2017	Fair Value								Carrying Value
(in millions of U.S. dollars)	Level 1		Level 2		Level 3		Total		Carrying Value
Assets:
Fixed maturities held to maturity
U.S. Treasury and agency	$	857	$	58	$	—	$	915	$	908
Foreign	—		1,757		—		1,757		1,738
Corporate securities	—		3,184		35		3,219		3,159
Mortgage-backed securities	—		2,742		—		2,742		2,724
States, municipalities, and political subdivisions	—		5,841		—		5,841		5,806
Total assets	$	857	$	13,582	$	35	$	14,474	$	14,335
Liabilities:
Repurchase agreements	$	—	$	1,408	$	—	$	1,408	$	1,408
Short-term debt	—		1,013		—		1,013		1,013
Long-term debt	—		12,332		—		12,332		11,556
Trust preferred securities	—		468		—		468		308
Total liabilities	$	—	$	15,221	$	—	$	15,221	$	14,285

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Unpaid losses and loss expenses

9 Months Ended

Sep. 30, 2018

Liability for Claims and Claims Adjustment Expense [Abstract]

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

Unpaid losses and loss expenses

The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:



	Nine Months Ended September 30
(in millions of U.S. dollars)	2018			2017
Gross unpaid losses and loss expenses – beginning of period	$	63,179		$	60,540
Reinsurance recoverable on unpaid losses - beginning of period ⁽¹⁾	(14,014		)	(12,708		)
Net unpaid losses and loss expenses – beginning of period	49,165			47,832
Net losses and loss expenses incurred in respect of losses occurring in:
Current year	14,186			14,963
Prior years ⁽²⁾	(729		)	(781		)
Total	13,457			14,182
Net losses and loss expenses paid in respect of losses occurring in:
Current year	4,522			3,937
Prior years	8,596			8,389
Total	13,118			12,326
Foreign currency revaluation and other	(440		)	596
Net unpaid losses and loss expenses – end of period	49,064			50,283
Reinsurance recoverable on unpaid losses ⁽¹⁾	13,965			13,870
Gross unpaid losses and loss expenses – end of period	$	63,029		$	64,153


⁽¹⁾	Net of provision for uncollectible reinsurance.


⁽²⁾	Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums totaling $86 million and $110 million for the nine months ended September 30, 2018 and 2017, respectively.

The decrease in net unpaid losses and loss expenses from December 31, 2017 was primarily due to favorable prior period development, foreign exchange movement, and payments related to the 2017 catastrophic events, partially offset by crop activity and the impact of the catastrophic events during the year.

Prior Period Development

Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. 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.

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, and agriculture. During the third quarter of 2017, we determined that the loss development classification for certain businesses, previously grouped within the short-tail column in the table below, would be more appropriately grouped within the long-tail column to better align with the classification of these businesses within our loss development triangles in our Form 10-K. We also determined that the loss development for certain other businesses should be reclassified from long-tail to short-tail. We updated the 2017 amounts below to conform to the current period presentation. These changes to the previously disclosed amounts have no impact to our financial condition and results of operations.

Net favorable prior period development for the three months ended September 30, 2018 was $243 million, which included $80 million of net adverse development related to homeowners and valuables, where losses trended higher than expected, and $54 million of adverse development related to environmental liabilities. The remaining favorable development of $377 million comprised 80 percent long-tail lines, principally for the 2014 and prior accident years, and 20 percent short-tail lines, principally related to the 2017 catastrophe events.

Net favorable prior period development for the nine months ended September 30, 2018 of $643 million, was evenly split between long-tail lines, principally for the 2014 and prior accident years, and short-tail lines, principally related to the 2017 catastrophe events.



	Three Months Ended September 30									Nine Months Ended September 30
(in millions of U.S. dollars)	Long-tail			Short-tail			Total			Long-tail			Short-tail			Total
2018
North America Commercial P&C Insurance	$	(170	)	$	(46	)	$	(216	)	$	(266	)	$	(206	)	$	(472	)
North America Personal P&C Insurance	—			58			58			—			59			59
North America Agricultural Insurance	—			(1		)	(1		)	—			(77		)	(77		)
Overseas General Insurance	(49		)	(23		)	(72		)	(51		)	(115		)	(166		)
Global Reinsurance	(39		)	15			(24		)	(69		)	15			(54		)
Corporate	12			—			12			67			—			67
Total	$	(246	)	$	3		$	(243	)	$	(319	)	$	(324	)	$	(643	)
2017
North America Commercial P&C Insurance	$	(230	)	$	(6	)	$	(236	)	$	(407	)	$	(139	)	$	(546	)
North America Personal P&C Insurance	—			32			32			—			66			66
North America Agricultural Insurance	—			(4		)	(4		)	—			(83		)	(83		)
Overseas General Insurance	(106		)	(2		)	(108		)	(74		)	(110		)	(184		)
Global Reinsurance	(41		)	—			(41		)	(69		)	5			(64		)
Corporate	87			—			87			140			—			140
Total	$	(290	)	$	20		$	(270	)	$	(410	)	$	(261	)	$	(671	)

North America Commercial P&C Insurance

2018

For the three months ended September 30, 2018, net favorable PPD was $216 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $170 million in long-tail business, primarily from:


•	Favorable development of $93 million in commercial excess and umbrella portfolios primarily in accident years 2012 and prior driven by lower than expected reported loss activity, and an increase in weighting towards experience-based methods;


•	Favorable development of $45 million in workers' compensation lines mainly impacting accident years 2014 and prior, driven by lower than expected paid and reported loss activity, and related updates to development patterns used in our loss projection methods for select portfolios; and


•	Net favorable development of $28 million in our foreign casualty lines, primarily impacting accident years 2014 and prior, driven by reported loss activity that was generally lower than expected.


•	Net favorable development of $46 million in short-tail business, primarily from:


•	Net favorable development of $41 million in commercial property and marine businesses due to favorable claim development, including $42 million favorable development on the 2017 natural catastrophes.

For the nine months ended September 30, 2018, net favorable PPD was $472 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $266 million in long-tail business, primarily from:

•

Net favorable development of $183 million in our workers’ compensation lines with favorable development of $56 million in the 2017 accident year mainly related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. The net remaining favorable development of $127 million was principally due to lower than expected loss experience, mainly impacting accident years 2014 and prior;

•

Net favorable development of $123 million in our commercial excess and umbrella portfolios, primarily in accident years 2012 and prior. This was driven by lower than expected reported loss activity, and an increase in weighting towards experience-based methods, partially offset by higher than expected claim activity in the 2014 and 2015 accident years which led to reserve strengthening in those years;


•	Favorable development of $28 million in our foreign casualty lines due to the same factors as experienced for the three months ended September 30, 2018 as described above;


•	Net favorable development of $3 million on several lines of business due to favorable claim development on the 2017 natural catastrophes; and


•	Net adverse development of $71 million, mainly in our automobile liability, commercial-multi peril (CMP) liability, products and general liability lines, driven by adverse paid and reported loss activity relative to prior expectations in accident years 2015 through 2017, partly offset by favorable emergence in older accident years.


•	Net favorable development of $206 million in short-tail business, primarily from:


•	Net favorable development of $156 million in our commercial property and marine businesses due to favorable claim development, including $157 million favorable development on the 2017 natural catastrophes; and


•	Net favorable development of $50 million in other short-tail business, including $19 million in surety and also including several smaller net favorable movements from lower than expected case activity in other classes, such as accident and commercial automobile physical damage, none of which were significant individually or in the aggregate.

2017

For the three months ended September 30, 2017, net favorable PPD was $236 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $230 million in long-tail business, primarily from:


•	Favorable development of $140 million in commercial excess and umbrella portfolios primarily in accident years 2011 and prior driven by lower paid and reported loss activity relative to prior expectations as well as an increase in weighting towards experience-based methods;


•	Favorable development of $46 million in workers' compensation business mainly impacting accident years 2013 and prior, driven by lower than expected paid and reported loss activity, and revisions to development patterns used in our loss projection methods for select portfolios; and

•

Net favorable development of $28 million on several large multi-line prospective deals primarily impacting the 2012 and 2013 accident years, due to lower than expected reported loss activity. These structured deals typically cover large clients for multiple product lines and with varying loss limitations; this development is net of premium adjustments of $26 million tied to the loss performance of the particular deals.


•	Net favorable development of $6 million in short-tail business across a number of accident years, none of which were significant individually or in the aggregate.

For the nine months ended September 30, 2017, net favorable PPD was $546 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $407 million in long-tail business, primarily from:


•	Net favorable development of $214 million in our commercial excess and umbrella portfolios, primarily in accident years 2011 and prior, driven by lower than expected reported loss activity, and an increase in weighting towards experience-based methods;

•

Net favorable development of $125 million in our workers’ compensation businesses with favorable development of $57 million in the 2016 accident year related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. Net favorable development of $68 million was principally due to lower than expected loss experience and revisions to development patterns used in our loss projection methods, mainly impacting accident years 2013 and prior, and partly offset by smaller adverse development in the more recent prior accident years;


•	Favorable development of $28 million in large multi-line accounts due primarily to the same factors experienced for the three months ended September 30, 2017; and


•	Net favorable development of $27 million in our professional Errors and Omissions (E&O) portfolios, primarily in the 2012 and 2013 accident years, arising from lower than expected reported loss activity, partially offset by claim-specific adverse development.


•	Net favorable development of $139 million in short-tail business, primarily from:


•	Favorable development of $65 million in property lines, primarily in our commercial property portfolios, driven by lower than expected loss emergence in the 2014 and 2016 accident years;


•	Net favorable development of $45 million in our surety business, primarily due to lower than expected claims severity in the 2015 accident year; and


•	Net favorable development of $19 million in our accident & health (A&H) business, primarily due to lower than expected loss emergence in the 2015 and 2016 accident years.

North America Personal P&C Insurance

2018

For the three months ended September 30, 2018, net adverse PPD was $58 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:

•

Net adverse development of 80 million in our homeowners and valuables lines, primarily impacting the 2017 accident year. Overall, non-catastrophe losses were $137 million higher than expected, partially offset by favorable claim development of $57 million on the 2017 natural catastrophes. The higher than expected non-catastrophe homeowners losses were primarily severity driven and included water related claims, large fire losses, and non-catastrophe weather claims; and


•	Net favorable development of $24 million in our personal excess lines primarily impacting the 2015 accident year, due to lower than expected loss emergence and an increase in weighting towards experience-based methods.

For the nine months ended September 30, 2018, net adverse PPD was $59 million, primarily due to the same factors as experienced for the three months ended September 30, 2018 as described above, including $68 million of favorable claim development on the 2017 natural catastrophes.

2017

For the three months ended September 30, 2017, net adverse PPD was $32 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net adverse development of $98 million in our homeowners lines, primarily impacting the 2016 accident year, due to higher than expected loss severity; and


•	Net favorable development of $58 million in our personal excess lines primarily impacting the 2014 accident year, due to lower than expected loss experience and an increase weighting towards experience-based methods.

For the nine months ended September 30, 2017, net adverse PPD was $66 million, including adverse development of $105 million in our homeowners lines and favorable development of $58 million in our personal excess lines as described above.

North America Agricultural Insurance

2018

For the three months ended September 30, 2018, net favorable PPD was $1 million, primarily due to favorable claim development on the 2017 natural catastrophes.

For the nine months ended September 30, 2018, net favorable PPD was $77 million, including $1 million favorable claim development on the 2017 natural catastrophes. Actual claim development relates to our Multiple Peril Crop Insurance (MPCI) business and is favorable due to better than expected crop yield results in certain states at the prior year-end period (i.e., 2018 results based on crop yield results at year-end 2017).

2017

For the three months ended September 30, 2017, net favorable PPD was $4 million across a number of accident years, none of which were significant individually or in the aggregate.

For the nine months ended September 30, 2017, net favorable PPD was $83 million. The majority of the claim development relates to our MPCI business and is favorable due to better than expected crop yield results in certain states at the prior year-end period (i.e., 2017 results based on crop yield results at year-end 2016).

Overseas General Insurance

2018

For the three months ended September 30, 2018, net favorable PPD was $72 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $49 million in long-tail business, primarily from:

•

Net favorable development of $54 million in casualty lines, with favorable development of $92 million in accident years 2014 and prior, resulting from lower than expected loss emergence across primary and excess lines in the U.K., Continental Europe and Asia Pacific, partially offset by adverse development of $38 million in accident years 2015 through 2017, primarily due to large loss experience in U.K. excess lines and wholesale business, and adverse development in certain Latin America excess lines;


•	Favorable development of $33 million, primarily including $12 million in political risks, $10 million in aviation and $10 million in environmental; and

•

Net adverse development of $38 million in financial lines, with favorable development of $93 million in accident years 2014 and prior, resulting from lower than expected loss emergence including favorable development due to specific large claim reductions in Asia financial institutions including wholesale bankers Directors and Officers (D&O) and bankers professional indemnity, and adverse development of $131 million in accident years 2015 through 2017, primarily due to adverse large loss experience in specific D&O and financial institutions portfolios in Australia, Continental Europe and the U.K.


•	Net favorable development of $23 million in short-tail business, primarily from:


•	Favorable development of $21 million in marine, primarily across accident years 2012 through 2015 driven mainly by favorable loss emergence in Latin America including favorable salvage/subrogation recoveries; and


•	Adverse development of $4 million from claim development on the 2017 natural catastrophes.

For the nine months ended September 30, 2018, net favorable PPD was $166 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $51 million in long-tail business, driven by the same factors as experienced for the three months ended September 30, 2018 as described above.


•	Net favorable development of $115 million in short-tail business, primarily from:


•	Net favorable development of $50 million in property and marine (excluding technical lines), primarily in accident years 2014 through 2016, driven mainly by favorable loss emergence across all regions, including favorable claim-specific loss settlements and salvage/subrogation recoveries;


•	Favorable development of $8 million from claim development on the 2017 natural catastrophes; and


•	Net favorable development of $57 million, primarily including $17 million in personal business, $17 million in surety, $16 million in A&H business, and $13 million in energy lines.

2017

For the three months ended September 30, 2017, net favorable PPD was $108 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $106 million in long-tail business, primarily from:


•	Net favorable development of $40 million in casualty lines, with favorable development of $69 million in accident years 2013 and prior, resulting from lower than expected loss emergence, partially offset by adverse development of $29 million in accident years 2014 through 2016, primarily due to large loss experience in U.K. excess lines and wholesale business; and

•

Net favorable development of $34 million in financial lines, with favorable development of $124 million in accident years 2013 and prior, resulting from lower than expected loss emergence including favorable development on specific, litigated claims, and adverse development of $90 million in accident years 2014 through 2016, primarily due to large loss experience in specific Directors and Officers (D&O) portfolios in the U.K., Continental Europe, and Australia and Financial Institutions lines in the U.K. and Continental Europe.

For the nine months ended September 30, 2017, net favorable PPD was $184 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $74 million in long-tail business, primarily from:


•	Favorable development of $34 million in financial lines, driven by the same factors as experienced for the three months ended September 30, 2017 as described above; and


•	Net favorable development of $9 million in casualty lines, driven by the same factors as experienced for the three months ended September 30, 2017, as described above, partially offset by adverse development of $32 million driven by a change in the discount rate in the U.K. (Ogden rate) impacting the 2016 and prior accident years.


•	Net favorable development of $110 million in short-tail business, primarily from:


•	Favorable development of $43 million in technical and energy lines, primarily from favorable loss emergence in accident years 2014 through 2016 primarily in offshore and power generation where experience has been better than expected;


•	Favorable development of $37 million in property and marine (excluding technical lines), primarily in accident years 2013 through 2015, driven mainly by favorable U.K. and Continental Europe loss emergence, including favorable claim-specific loss settlements; and


•	Favorable development of $20 million in A&H lines, primarily from favorable loss emergence in Asia Pacific and Continental Europe in accident years 2014 through 2016.

Global Reinsurance

2018

For the three months ended September 30, 2018, net favorable PPD was $24 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $39 million in long-tail business, in our professional liability, medical malpractice, and workers' compensation lines primarily from treaty years 2013 and prior principally resulting from lower than expected loss emergence; and


•	Net adverse development of $15 million in short-tail business, due to claim development on the 2017 natural catastrophes.

For the nine months ended September 30, 2018, net favorable PPD was $54 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $69 million in long-tail business, primarily in our casualty, professional liability, medical malpractice, and workers' compensation lines primarily from treaty years 2013 and prior principally resulting from lower than expected loss emergence; and


•	Net adverse development of $15 million in short-tail business, which included $14 million of net adverse claim development on the 2017 natural catastrophes.

2017

For the three months ended September 30, 2017, net favorable PPD was $41 million, which was the net result of several underlying favorable and adverse movements, and was driven by net favorable development of $29 million in our professional liability and medical malpractice lines primarily from treaty years 2013 and prior, principally resulting from lower than expected loss emergence in the U.S. portfolio.

For the nine months ended September 30, 2017, net favorable PPD was $64 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:


•	Net favorable development of $69 million in long-tail business, primarily from:


•	Favorable development of $66 million in our casualty, professional liability and medical malpractice lines, primarily driven by the same factors as experienced for the three months ended September 30, 2017 as described above; and


•	Net adverse development of $10 million in our motor and excess liability lines, primarily due to adverse development of $9 million driven by a change in the discount rate in the U.K. (Ogden rate) primarily impacting the 2015 and prior treaty years.

Corporate

2018

For the three months ended September 30, 2018, net adverse development was $12 million, driven principally by adverse development in environmental liabilities of 54 million due to case specific settlements and higher than expected remediation expense and defense costs, generally impacting larger modeled accounts. This adverse development was partially offset by a favorable adjustment in our estimate of reinsurance recoverables.

For the nine months ended September 30, 2018, net adverse development was $67 million, driven principally by adverse development on non A&E run-off casualty exposures and by the adverse development in environmental liabilities as described above.

2017

For the three months ended September 30, 2017, adverse development was $87 million, driven principally by development of $77 million in environmental liabilities and $9 million for unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in the respective periods, impacting the 1995 and prior accident years. The development in environmental liabilities was due to case specific settlements and both higher than expected remediation expense and defense costs. These higher costs impacted both large modeled accounts as well as smaller accounts.

For the nine months ended September 30, 2017, adverse development was $140 million, driven principally by development of environmental liabilities as described above, $35 million of development on non-A&E run-off casualty exposures due to higher than expected loss activity, and $28 million of unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in the respective period.

Debt	9 Months Ended
Debt	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Debt In March 2018, Chubb INA Holdings Inc. (Chubb INA) issued €900 million ($1.1 billion based on the foreign exchange rate at the date of issuance) of 1.55 percent Euro denominated senior notes due March 2028 and €900 million ($1.1 billion based on the foreign exchange rate at the date of issuance) of 2.5 percent Euro denominated senior notes due March 2038. These senior notes are redeemable at any time at Chubb INA's option subject to a “make-whole” premium (the present value of the remaining principal and interest discounted at the applicable comparable government bond rate plus 0.15 percent for the senior notes due 2028 and 0.25 percent for the senior notes due 2038). The notes are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law. These notes do not have the benefit of any sinking fund. These senior unsecured notes are guaranteed on a senior basis by Chubb 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. Chubb INA's $300 million of 5.8 percent senior notes due March 2018, $600 million of 5.75 percent senior notes due May 2018 and $100 million of 6.6 percent senior notes due August 2018 were paid upon maturity. During April 2018, we redeemed $1.0 billion of 6.375 percent unsecured junior subordinated capital securities due to mature in April 2037 and recorded a loss of $36 million from the extinguishment of debt, which is included in Net realized gains (losses) in the Consolidated statement of operations. In June 2018, we reclassified $499 million of the 5.9 percent senior notes ($500 million par value due to mature in June 2019) from long-term to short-term debt in the Consolidated balance sheets.

Commitments, contingencies, and guarantees

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

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 economic 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 (principally GMIB) 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 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 on equity market indices to limit equity exposure in the GMDB and GLB blocks of business.

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:



				September 30, 2018							December 31, 2017
	Consolidated Balance Sheet Location	Fair Value					Notional Value/ Payment Provision		Fair Value					Notional Value/ Payment Provision
(in millions of U.S. dollars)	Consolidated Balance Sheet Location	Derivative Asset		Derivative (Liability)			Notional Value/ Payment Provision		Derivative Asset		Derivative (Liability)			Notional Value/ Payment Provision
Investment and embedded derivative instruments:
Foreign currency forward contracts	OA / (AP)	$	19	$	(17	)	$	2,189	$	14	$	(27	)	$	2,064
Cross-currency swaps	OA / (AP)	—		—			45		—		—			45
Interest rate swaps	OA / (AP)	26		—			5,000		—		—			—
Options/Futures contracts on notes and bonds	OA / (AP)	10		(7		)	1,181		4		(3		)	1,007
Convertible securities ⁽¹⁾	FM AFS / ES	12		—			13		5		—			6
		$	67	$	(24	)	$	8,428	$	23	$	(30	)	$	3,122
Other derivative instruments:
Futures contracts on equities⁽²⁾	OA / (AP)	$	—	$	(7	)	$	1,095	$	—	$	(21	)	$	1,553
Other	OA / (AP)	5		(2		)	389		1		(2		)	75
		$	5	$	(9	)	$	1,484	$	1	$	(23	)	$	1,628
GLB ⁽³⁾	(AP) / (FPB)	$	—	$	(453	)	$	1,104	$	—	$	(550	)	$	1,083


⁽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. 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 September 30, 2018 and December 31, 2017, derivative assets of $35 million and derivative liabilities of $24 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.

The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:



	Three Months Ended						Nine Months Ended
	September 30						September 30
(in millions of U.S. dollars)	2018			2017			2018			2017
Investment and embedded derivative instruments:
Foreign currency forward contracts	$	(2	)	$	(7	)	$	5		$	—
Interest rate swaps	26			—			26			—
All other futures contracts and options	13			(8		)	47			(25		)
Convertible securities ⁽¹⁾	—			1			—			1
Total investment and embedded derivative instruments	$	37		$	(14	)	$	78		$	(24	)
GLB and other derivative instruments:
GLB ⁽¹⁾	$	54		$	54		$	133		$	265
Futures contracts on equities ⁽²⁾	(100		)	(57		)	(122		)	(169		)
Other	(8		)	(5		)	2			(4		)
Total GLB and other derivative instruments	$	(54	)	$	(8	)	$	13		$	92
	$	(17	)	$	(22	)	$	91		$	68


⁽¹⁾	Excludes foreign exchange gains (losses) related to GLB.


⁽²⁾	Related to GMDB and GLB blocks of business.

b) 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 our 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.

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.

Interest rate swaps

An interest rate swap is a contract between two counterparties in which interest payments are made based on a notional principal amount, which itself is never paid or received. Under the terms of an interest rate swap, one counterparty makes interest payments based on a fixed interest rate and the other counterparty’s payments are based on a floating rate. Interest rate swap contracts are used occasionally in our investment portfolio as protection against unexpected shifts in interest rates, which would affect the fair value of the fixed maturity portfolio. By using interest rate swaps in the portfolio, the overall duration or interest rate sensitivity of the portfolio can be impacted.

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.

(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 arise principally from changes in expected losses allocated to expected future premiums. 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 U.S. and/or international 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.

To mitigate adverse changes in the capital markets, we maintain positions in exchange-traded equity futures contracts, as noted under section "(ii) Futures" above. These futures increase in fair value when the S&P 500 index decreases (and decrease in fair value when the S&P 500 index increases). The net impact of gains or losses related to changes in fair value of the GLB liability and the exchange-traded equity futures are included in Net realized gains (losses). For example, for the nine months ended September 30, 2018, we recognized net realized gains of $11 million related to the GLBs, comprising $133 million of realized gains reflecting a net decrease in the fair value of the GLB liabilities primarily due to rising interest rates and higher equity markets partially offset by $122 million of realized losses related to exchange-traded equity futures.

c) Securities lending and 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. 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.

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 the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:



	Remaining contractual maturity
	September 30		December 31
	2018		2017
(in millions of U.S. dollars)	Overnight and Continuous
Collateral held under securities lending agreements:
Cash	$	863	$	828
U.S. Treasury and agency	98		36
Foreign	759		712
Corporate securities	14		—
Mortgage-backed securities	57		74
Equity securities	352		87
	$	2,143	$	1,737
Gross amount of recognized liability for securities lending payable	$	2,143	$	1,737

At September 30, 2018 and December 31, 2017, our repurchase agreement obligations of $1,414 million and $1,408 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 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:



	Remaining contractual maturity
	September 30, 2018						December 31, 2017
	Up to 30 Days		Greater than 90 Days		Total		Up to 30 Days		Greater than 90 Days		Total
(in millions of U.S. dollars)	Up to 30 Days		Greater than 90 Days		Total		Up to 30 Days		Greater than 90 Days		Total
Collateral pledged under repurchase agreements:
U.S. Treasury and agency	$	4	$	245	$	249	$	9	$	230	$	239
Mortgage-backed securities	408		813		1,221		369		826		1,195
	$	412	$	1,058	$	1,470	$	378	$	1,056	$	1,434
Gross amount of recognized liabilities for repurchase agreements					$	1,414					$	1,408
Difference ⁽¹⁾					$	56					$	26


⁽¹⁾	Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability.

d) Fixed maturities

At September 30, 2018, we have commitments to purchase fixed income securities of $867 million over the next several years.

e) Other investments

At September 30, 2018, included in Other investments in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $4.1 billion. In connection with these investments, we have commitments that may require funding of up to $3.2 billion over the next several years.

f) Taxation

At September 30, 2018, $14 million of unrecognized tax benefits remain outstanding. 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 by taxing authorities and the closing of tax statutes of limitations. With few exceptions, Chubb is no longer subject to income tax examinations for years before 2010.

g) 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.

Share-based compensation	9 Months Ended
Share-based compensation	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation	Share-based compensation The Chubb Limited 2016 Long-Term Incentive Plan (the 2016 LTIP) permits grants of both incentive and non-qualified stock options principally 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 typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 22, 2018, Chubb granted 1,841,329 stock options with a weighted-average grant date fair value of $29.71 each. The fair value of the options issued is estimated on the grant date using the Black-Scholes option pricing model. The 2016 LTIP also permits grants of service-based restricted stock and restricted stock units as well as performance-based restricted stock awards. Chubb generally grants service-based restricted stock and restricted stock units with a 4-year vesting period, based on a graded vesting schedule. Beginning in 2017, the performance-based stock awards granted comprise target awards which have 3-year cliff vesting provisions based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth and P&C combined ratio compared to a defined group of peer companies. Premium performance-based stock awards are earned only if tangible book value per share growth and the P&C combined ratio over the cumulative 3-year period after the grant of the associated target awards exceed a higher threshold compared to our peer group, with an additional vesting provision based on total shareholder return compared to our peer group. The restricted stock is granted at market close price on the grant date. On February 22, 2018, Chubb granted 973,624 service-based restricted stock awards, 301,024 service-based restricted stock units, and 180,065 performance-based stock awards to employees and officers with a grant date fair value of $143.07 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting.

Shareholders' equity

9 Months Ended

Sep. 30, 2018

Stockholders' Equity Note [Abstract]

Shareholders' equity

Shareholders’ equity

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 consolidated financial statements. Under Swiss corporate law, dividends, including distributions through a reduction in par value (par value reduction) or from legal reserves, must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. At September 30, 2018, our Common Shares had a par value of CHF 24.15 per share.

At our May 2017 and 2016 annual general meetings, our shareholders approved an annual dividend for the following year of up to $2.84 per share and $2.76 per share, respectively, which were paid in four quarterly installments of $0.71 per share and $0.69 per share, respectively, at dates determined by the Board of Directors (Board) after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

At our May 2018 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.92 per share, expected to be paid in four quarterly installments of $0.73 per share after the 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 until the date of the 2019 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion.

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



	Three Months Ended						Nine Months Ended
	September 30						September 30
	2018			2017			2018			2017
	CHF	USD		CHF	USD		CHF	USD		CHF	USD
Total dividend distributions per common share	0.72	$	0.73	0.68	$	0.71	2.11	$	2.17	2.06	$	2.11

Common Shares in treasury are used principally for issuance upon the exercise of employee stock options, grants of restricted stock, and purchases under the Employee Stock Purchase Plan (ESPP). At September 30, 2018, 18,683,074 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans.

Chubb Limited securities repurchase authorization

In November 2016, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares through December 31, 2017. In December 2017, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares from January 1, 2018 through December 31, 2018.

The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:



	Three Months Ended September 30				Nine Months Ended September 30				October 1, 2018 through October 29, 2018
(in millions of U.S. dollars, except share data)	2018		2017		2018		2017		October 1, 2018 through October 29, 2018
Number of shares repurchased	2,781,307		1,615,383		5,225,162		5,033,013		750,000
Cost of shares repurchased	$	379	$	232	$	703	$	707	$	94
Repurchase authorization remaining at end of period	$	297	$	293	$	297	$	293	$	203

Postretirement benefits

9 Months Ended

Sep. 30, 2018

Retirement Benefits [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Postretirement benefits

The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows:



	Pension Benefits												Other Postretirement Benefits
	2018						2017						2018			2017
Three Months Ended September 30	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
(in millions of U.S. dollars)	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
Service cost	$	14		$	3		$	15		$	6		$	1		$	—
Interest cost	26			6			27			6			1			2
Expected return on plan assets	(53		)	(12		)	(47		)	(11		)	(2		)	(2		)
Amortization of net actuarial loss	—			1			—			1			—			—
Amortization of prior service cost	—			—			—			—			(21		)	(22		)
Curtailments	—			—			—			—			(1		)	(32		)
Settlements	—			—			—			—			—			—
Net periodic (benefit) cost	$	(13	)	$	(2	)	$	(5	)	$	2		$	(22	)	$	(54	)



	Pension Benefits												Other Postretirement Benefits
	2018						2017						2018			2017
Nine Months Ended September 30	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
(in millions of U.S. dollars)	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
Service cost	$	43		$	9		$	47		$	14		$	1		$	2
Interest cost	79			20			79			20			3			3
Expected return on plan assets	(159		)	(38		)	(142		)	(31		)	(4		)	(4		)
Amortization of net actuarial loss	—			1			—			2			—			—
Amortization of prior service cost	—			—			—			—			(64		)	(68		)
Curtailments	—			—			—			(8		)	(2		)	(32		)
Settlements	1			—			—			—			—			—
Net periodic (benefit) cost	$	(36	)	$	(8	)	$	(16	)	$	(3	)	$	(66	)	$	(99	)

The non-service cost components of net periodic (benefit) cost are included in Losses and loss expenses and Administrative expenses in the Consolidated statements of operations.

Segment information

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment information

Chubb operates through six 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.

Corporate results primarily include income and expenses not attributable to reportable segments and loss and loss expenses of asbestos and environmental (A&E) liabilities.

For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income (loss) as the main measures of segment performance. Chubb calculates underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate Segment income (loss), include Net investment income, 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 (loss). For example, for the three months ended September 30, 2018, underwriting income in our North America Agricultural Insurance segment was $79 million. This amount includes $8 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) 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 three months ended September 30, 2018, Life Insurance underwriting income of $84 million includes Net investment income of $85 million and losses from fair value changes in separate account assets of $14 million. The gains (losses) 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:



	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance			Global Reinsurance			Life Insurance		Corporate			Chubb Consolidated
For the Three Months Ended
September 30, 2018
(in millions of U.S. dollars)
Net premiums written	$	3,199		$	1,218	$	884	$	2,081		$	164		$	564	$	—		$	8,110
Net premiums earned	3,019			1,167		857		2,157			157			551		—			7,908
Losses and loss expenses	1,881			860		719		1,114			86			195		13			4,868
Policy benefits	—			—		—		—			—			127		—			127
Policy acquisition costs	458			236		49		582			40			139		—			1,504
Administrative expenses	251			69		2		252			10			77		58			719
Underwriting income (loss)	429			2		87		209			21			13		(71		)	690
Net investment income (loss)	503			59		7		155			63			85		(49		)	823
Other (income) expense	(1		)	—		—		(7		)	(13		)	20		(144		)	(145		)
Amortization expense of purchased intangibles	—			4		7		8			—			—		64			83
Segment income (loss)	$	933		$	57	$	87	$	363		$	97		$	78	$	(40	)	$	1,575
Net realized gains (losses) including OTTI																19			19
Interest expense																164			164
Chubb integration expenses																16			16
Income tax expense																183			183
Net income (loss)																$	(384	)	$	1,231



	North America Commercial P&C Insurance ⁽¹⁾			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance ⁽¹⁾			Global Reinsurance			Life Insurance			Corporate			Chubb Consolidated
For the Three Months Ended
September 30, 2017
(in millions of U.S. dollars)
Net premiums written	$	3,086		$	1,194		$	926		$	1,966		$	191		$	539		$	—		$	7,902
Net premiums earned	3,016			1,117			898			2,064			185			527			—			7,807
Losses and loss expenses	2,580			1,062			759			1,281			295			181			89			6,247
Policy benefits	—			—			—			—			—			169			—			169
Policy acquisition costs	469			226			49			569			43			132			—			1,488
Administrative expenses	256			61			(1		)	246			11			77			64			714
Underwriting income (loss)	(289		)	(232		)	91			(32		)	(164		)	(32		)	(153		)	(811		)
Net investment income (loss)	497			57			6			164			80			78			(69		)	813
Other (income) expense	(4		)	1			—			(10		)	(3		)	(19		)	(83		)	(118		)
Amortization expense of purchased intangibles	—			4			8			11			—			1			41			65
Segment income (loss)	$	212		$	(180	)	$	89		$	131		$	(81	)	$	64		$	(180	)	$	55
Net realized gains (losses) including OTTI																			(10		)	(10		)
Interest expense																			150			150
Chubb integration expenses																			50			50
Income tax benefit																			(85		)	(85		)
Net loss																			$	(305	)	$	(70	)


⁽¹⁾	The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ($3 million) from the North America Commercial P&C Insurance segment to the Overseas General Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis.



	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance			Global Reinsurance			Life Insurance			Corporate			Chubb Consolidated
For the Nine Months Ended
September 30, 2018
(in millions of U.S. dollars)
Net premiums written	$	9,342		$	3,601	$	1,380	$	6,664		$	554		$	1,688		$	—		$	23,229
Net premiums earned	9,325			3,463		1,251		6,425			492			1,643			—			22,599
Losses and loss expenses	5,873			2,474		955		3,263			236			584			72			13,457
Policy benefits	—			—		—		—			—			428			—			428
Policy acquisition costs	1,378			701		74		1,754			120			405			—			4,432
Administrative expenses	735			202		—		757			29			235			200			2,158
Underwriting income (loss)	1,339			86		222		651			107			(9		)	(272		)	2,124
Net investment income (loss)	1,516			177		20		461			192			253			(162		)	2,457
Other (income) expense	(20		)	1		1		(12		)	(26		)	24			(275		)	(307		)
Amortization expense of purchased intangibles	—			10		21		29			—			1			192			253
Segment income (loss)	$	2,875		$	252	$	220	$	1,095		$	325		$	219		$	(351	)	$	4,635
Net realized gains (losses) including OTTI																	35			35
Interest expense																	488			488
Chubb integration expenses																	39			39
Income tax expense																	536			536
Net income (loss)																	$	(1,379	)	$	3,607



	North America Commercial P&C Insurance ⁽¹⁾			North America Personal P&C Insurance		North America Agricultural Insurance			Overseas General Insurance ⁽¹⁾			Global Reinsurance			Life Insurance			Corporate			Chubb Consolidated
For the Nine Months Ended
September 30, 2017
(in millions of U.S. dollars)
Net premiums written	$	9,019		$	3,433	$	1,390		$	6,185		$	580		$	1,586		$	—		$	22,193
Net premiums earned	9,156			3,296		1,256			6,018			542			1,548			—			21,816
Losses and loss expenses	6,376			2,378		976			3,316			435			556			145			14,182
Policy benefits	—			—		—			—			—			500			—			500
Policy acquisition costs	1,420			673		75			1,653			137			376			—			4,334
Administrative expenses	728			192		(4		)	734			33			226			187			2,096
Underwriting income (loss)	632			53		209			315			(63		)	(110		)	(332		)	704
Net investment income (loss)	1,465			168		18			460			207			230			(220		)	2,328
Other (income) expense	(4		)	3		1			(14		)	(2		)	(60		)	(257		)	(333		)
Amortization expense of purchased intangibles	—			12		22			33			—			2			125			194
Segment income (loss)	$	2,101		$	206	$	204		$	756		$	146		$	178		$	(420	)	$	3,171
Net realized gains (losses) including OTTI																		84			84
Interest expense																		451			451
Chubb integration expenses																		233			233
Income tax expense																		243			243
Net income (loss)																		$	(1,263	)	$	2,328


⁽¹⁾	The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ($16 million) from the North America Commercial P&C Insurance segment to the Overseas General Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis.

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.

Earnings per share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings per share



	Three Months Ended					Nine Months Ended
	September 30					September 30
(in millions of U.S. dollars, except share and per share data)	2018		2017			2018		2017
Numerator:
Net income (loss)	$	1,231	$	(70	)	$	3,607	$	2,328
Denominator:
Denominator for basic earnings per share:
Weighted-average shares outstanding	462,981,973		466,370,784			464,644,013		467,658,334
Denominator for diluted earnings per share:
Share-based compensation plans	3,034,525		—			3,360,511		3,961,572
Weighted-average shares outstanding and assumed conversions	466,016,498		466,370,784			468,004,524		471,619,906
Basic earnings (loss) per share	$	2.66	$	(0.15	)	$	7.76	$	4.98
Diluted earnings (loss) per share	$	2.64	$	(0.15	)	$	7.71	$	4.94
Potential anti-dilutive share conversions	3,763,844		2,045,829			3,467,000		1,673,777

Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective periods. For the three months ended September 30, 2017, weighted-average shares outstanding used in calculating diluted loss per share excludes the effect of dilutive securities of 3,820,673 shares. In periods where a net loss is recognized, inclusion of incremental dilution is antidilutive.

Information provided in connection with outstanding debt of subsidiaries

9 Months Ended

Sep. 30, 2018

Disclosure Text Block Supplement [Abstract]

Information provided in connection with outstanding debt of subsidiaries

The following tables present condensed consolidating financial information at September 30, 2018 and December 31, 2017, and for the three and nine months ended September 30, 2018 and 2017 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). 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 September 30, 2018



(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	$	—	$	183	$	100,980	$	—		$	101,163
Cash ⁽¹⁾	—		1		1,298		(246		)	1,053
Restricted cash	—		—		104		—			104
Insurance and reinsurance balances receivable	—		—		10,486		(293		)	10,193
Reinsurance recoverable on losses and loss expenses	—		—		26,408		(11,320		)	15,088
Reinsurance recoverable on policy benefits	—		—		1,109		(903		)	206
Value of business acquired	—		—		298		—			298
Goodwill and other intangible assets	—		—		21,471		—			21,471
Investments in subsidiaries	43,528		50,132		—		(93,660		)	—
Due from subsidiaries and affiliates, net	7,917		—		111		(8,028		)	—
Other assets	3		678		18,985		(1,558		)	18,108
Total assets	$	51,448	$	50,994	$	181,250	$	(116,008	)	$	167,684
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	73,422	$	(10,393	)	$	63,029
Unearned premiums	—		—		16,793		(1,068		)	15,725
Future policy benefits	—		—		6,366		(903		)	5,463
Due to subsidiaries and affiliates, net	—		8,028		—		(8,028		)	—
Affiliated notional cash pooling programs ⁽¹⁾	165		81		—		(246		)	—
Repurchase agreements	—		—		1,414		—			1,414
Short-term debt	—		500		—		—			500
Long-term debt	—		12,138		11		—			12,149
Trust preferred securities	—		308		—		—			308
Other liabilities	349		2,418		17,105		(1,710		)	18,162
Total liabilities	514		23,473		115,111		(22,348		)	116,750
Total shareholders’ equity	50,934		27,521		66,139		(93,660		)	50,934
Total liabilities and shareholders’ equity	$	51,448	$	50,994	$	181,250	$	(116,008	)	$	167,684

⁽¹⁾

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2017



(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	$	—	$	168	$	102,276	$	—		$	102,444
Cash ⁽¹⁾	3		1		839		(115		)	728
Restricted cash	—		—		123		—			123
Insurance and reinsurance balances receivable	—		—		10,820		(1,486		)	9,334
Reinsurance recoverable on losses and loss expenses	—		—		27,514		(12,480		)	15,034
Reinsurance recoverable on policy benefits	—		—		1,194		(1,010		)	184
Value of business acquired	—		—		326		—			326
Goodwill and other intangible assets	—		—		22,054		—			22,054
Investments in subsidiaries	41,909		51,165		—		(93,074		)	—
Due from subsidiaries and affiliates, net	9,639		—		—		(9,639		)	—
Other assets	3		287		20,578		(4,073		)	16,795
Total assets	$	51,554	$	51,621	$	185,724	$	(121,877	)	$	167,022
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	74,767	$	(11,588	)	$	63,179
Unearned premiums	—		—		18,875		(3,659		)	15,216
Future policy benefits	—		—		6,331		(1,010		)	5,321
Due to subsidiaries and affiliates, net	—		9,432		207		(9,639		)	—
Affiliated notional cash pooling programs ⁽¹⁾	—		115		—		(115		)	—
Repurchase agreements	—		—		1,408		—			1,408
Short-term debt	—		1,013		—		—			1,013
Long-term debt	—		11,546		10		—			11,556
Trust preferred securities	—		308		—		—			308
Other liabilities	382		1,411		18,848		(2,792		)	17,849
Total liabilities	382		23,825		120,446		(28,803		)	115,850
Total shareholders’ equity	51,172		27,796		65,278		(93,074		)	51,172
Total liabilities and shareholders’ equity	$	51,554	$	51,621	$	185,724	$	(121,877	)	$	167,022

⁽¹⁾

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2017, 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 Three Months Ended September 30, 2018	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	8,110		$	—		$	8,110
Net premiums earned	—			—			7,908			—			7,908
Net investment income	2			3			818			—			823
Equity in earnings of subsidiaries	1,177			709			—			(1,886		)	—
Net realized gains (losses) including OTTI	(1		)	18			2			—			19
Losses and loss expenses	—			—			4,868			—			4,868
Policy benefits	—			—			127			—			127
Policy acquisition costs and administrative expenses	23			(90		)	2,290			—			2,223
Interest (income) expense	(75		)	203			36			—			164
Other (income) expense	(9		)	12			(148		)	—			(145		)
Amortization of purchased intangibles	—			—			83			—			83
Chubb integration expenses	3			1			12			—			16
Income tax expense (benefit)	5			(24		)	202			—			183
Net income	$	1,231		$	628		$	1,258		$	(1,886	)	$	1,231
Comprehensive income	$	592		$	47		$	640		$	(687	)	$	592

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended September 30, 2017	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	7,902		$	—		$	7,902
Net premiums earned	—			—			7,807			—			7,807
Net investment income	1			3			809			—			813
Equity in earnings of subsidiaries	(127		)	212			—			(85		)	—
Net realized gains (losses) including OTTI	—			(8		)	(2		)	—			(10		)
Losses and loss expenses	—			—			6,247			—			6,247
Policy benefits	—			—			169			—			169
Policy acquisition costs and administrative expenses	20			16			2,166			—			2,202
Interest (income) expense	(84		)	208			26			—			150
Other (income) expense	(5		)	9			(122		)	—			(118		)
Amortization of purchased intangibles	—			—			65			—			65
Chubb integration expenses	7			1			42			—			50
Income tax expense (benefit)	6			(89		)	(2		)	—			(85		)
Net income (loss)	$	(70	)	$	62		$	23		$	(85	)	$	(70	)
Comprehensive income	$	629		$	748		$	724		$	(1,472	)	$	629

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Nine Months Ended September 30, 2018	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	23,229		$	—		$	23,229
Net premiums earned	—			—			22,599			—			22,599
Net investment income	5			12			2,440			—			2,457
Equity in earnings of subsidiaries	3,440			2,048			—			(5,488		)	—
Net realized gains (losses) including OTTI	(1		)	67			(31		)	—			35
Losses and loss expenses	—			—			13,457			—			13,457
Policy benefits	—			—			428			—			428
Policy acquisition costs and administrative expenses	64			(49		)	6,575			—			6,590
Interest (income) expense	(231		)	616			103			—			488
Other (income) expense	(18		)	28			(317		)	—			(307		)
Amortization of purchased intangibles	—			—			253			—			253
Chubb integration expenses	7			2			30			—			39
Income tax expense (benefit)	15			(119		)	640			—			536
Net income	$	3,607		$	1,649		$	3,839		$	(5,488	)	$	3,607
Comprehensive income (loss)	$	1,322		$	(199	)	$	1,606		$	(1,407	)	$	1,322

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Nine Months Ended September 30, 2017	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	22,193		$	—		$	22,193
Net premiums earned	—			—			21,816			—			21,816
Net investment income	3			10			2,315			—			2,328
Equity in earnings of subsidiaries	2,153			1,578			—			(3,731		)	—
Net realized gains (losses) including OTTI	(2		)	(22		)	108			—			84
Losses and loss expenses	—			—			14,182			—			14,182
Policy benefits	—			—			500			—			500
Policy acquisition costs and administrative expenses	56			28			6,346			—			6,430
Interest (income) expense	(252		)	641			62			—			451
Other (income) expense	(7		)	34			(360		)	—			(333		)
Amortization of purchased intangibles	—			—			194			—			194
Chubb integration expenses	13			54			166			—			233
Income tax expense (benefit)	16			(288		)	515			—			243
Net income	$	2,328		$	1,097		$	2,634		$	(3,731	)	$	2,328
Comprehensive income	$	3,711		$	2,459		$	4,018		$	(6,477	)	$	3,711

Condensed Consolidating Statement of Cash Flows



For the Nine Months Ended September 30, 2018	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	237		$	4,701		$	3,797		$	(4,838	)	$	3,897
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(30		)	(16,758		)	—			(16,788		)
Purchases of fixed maturities held to maturity	—			—			(380		)	—			(380		)
Purchases of equity securities	—			—			(148		)	—			(148		)
Sales of fixed maturities available for sale	—			6			9,035			—			9,041
Sales of equity securities	—			—			247			—			247
Maturities and redemptions of fixed maturities available for sale	—			15			5,467			—			5,482
Maturities and redemptions of fixed maturities held to maturity	—			—			1,001			—			1,001
Net change in short-term investments	—			6			58			—			64
Net derivative instruments settlements	—			(7		)	(39		)	—			(46		)
Private equity contributions	—			—			(1,112		)	—			(1,112		)
Private equity distributions	—			—			743			—			743
Capital contribution	(1,125		)	(3,500		)	—			4,625			—
Other	—			(18		)	(213		)	—			(231		)
Net cash flows used for investing activities	(1,125		)	(3,528		)	(2,099		)	4,625			(2,127		)
Cash flows from financing activities
Dividends paid on Common Shares	(1,001		)	—			—			—			(1,001		)
Common Shares repurchased	—			—			(732		)	—			(732		)
Proceeds from issuance of long-term debt	—			2,171			—			—			2,171
Repayment of long-term debt	—			(2,000		)	(1		)	—			(2,001		)
Proceeds from issuance of repurchase agreements	—			—			1,572			—			1,572
Repayment of repurchase agreements	—			—			(1,566		)	—			(1,566		)
Proceeds from share-based compensation plans	—			—			86			—			86
Dividend to parent company	—			—			(4,838		)	4,838			—
Advances (to) from affiliates	1,722			(1,310		)	(412		)	—			—
Capital contribution	—			—			4,625			(4,625		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	165			(34		)	—			(131		)	—
Policyholder contract deposits	—			—			269			—			269
Policyholder contract withdrawals	—			—			(222		)	—			(222		)
Net cash flows from (used for) financing activities	886			(1,173		)	(1,219		)	82			(1,424		)
Effect of foreign currency rate changes on cash and restricted cash	(1		)	—			(39		)	—			(40		)
Net increase (decrease) in cash and restricted cash	(3		)	—			440			(131		)	306
Cash and restricted cash – beginning of period⁽¹⁾	3			1			962			(115		)	851
Cash and restricted cash – end of period⁽¹⁾	$	—		$	1		$	1,402		$	(246	)	$	1,157

⁽¹⁾

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2018 and December 31, 2017, 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 Nine Months Ended September 30, 2017	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	639		$	1,472		$	3,341		$	(2,041	)	$	3,411
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(9		)	(18,469		)	—			(18,478		)
Purchases of fixed maturities held to maturity	—			—			(262		)	—			(262		)
Purchases of equity securities	—			—			(125		)	—			(125		)
Sales of fixed maturities available for sale	—			99			9,116			—			9,215
Sales of equity securities	—			—			152			—			152
Maturities and redemptions of fixed maturities available for sale	—			22			7,677			—			7,699
Maturities and redemptions of fixed maturities held to maturity	—			—			644			—			644
Net change in short-term investments	—			197			(153		)	—			44
Net derivative instruments settlements	—			(13		)	(157		)	—			(170		)
Private equity contributions	—			—			(485		)	—			(485		)
Private equity distributions	—			—			744			—			744
Other	—			6			(325		)	—			(319		)
Net cash flows from (used for) investing activities	—			302			(1,643		)	—			(1,341		)
Cash flows from financing activities
Dividends paid on Common Shares	(978		)	—			—			—			(978		)
Common Shares repurchased	—			—			(707		)	—			(707		)
Repayment of long-term debt	—			(500		)	—			—			(500		)
Proceeds from issuance of repurchase agreements	—			—			1,798			—			1,798
Repayment of repurchase agreements	—			—			(1,793		)	—			(1,793		)
Proceeds from share-based compensation plans	—			—			109			—			109
Dividend to parent company	—			—			(2,041		)	2,041			—
Advances (to) from affiliates	617			(658		)	41			—			—
Net proceeds from affiliated notional cash pooling programs⁽¹⁾	(278		)	(617		)	—			895			—
Policyholder contract deposits	—			—			312			—			312
Policyholder contract withdrawals	—			—			(211		)	—			(211		)
Net cash flows used for financing activities	(639		)	(1,775		)	(2,492		)	2,936			(1,970		)
Effect of foreign currency rate changes on cash and restricted cash	—			—			5			—			5
Net increase (decrease) in cash and restricted cash	—			(1		)	(789		)	895			105
Cash and restricted cash – beginning of period⁽¹⁾	1			1			2,068			(982		)	1,088
Cash and restricted cash – end of period⁽¹⁾	$	1		$	—		$	1,279		$	(87	)	$	1,193

⁽¹⁾

Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

General (Policies)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation

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. Chubb operates 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. Refer to Note 10 for additional information.

The interim unaudited 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 results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2017 Form 10-K.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted cash

Effective January 1, 2018, we retrospectively adopted guidance on "Restricted Cash" that clarified the presentation of restricted cash on the consolidated statement of cash flows. As a result, we revised the statement of cash flows for the nine months ended September 30, 2017 to include restricted cash in the beginning and ending cash balances. In addition, we reclassified $123 million of Restricted cash from Other assets to a separate line in the balance sheet as of December 31, 2017.

Restricted cash in the consolidated balance sheets represents amounts held for the benefit of third parties and is legally or contractually restricted as to withdrawal or usage. Amounts include deposits with U.S. and non-U.S. regulatory authorities, trust funds set up for the benefit of ceding companies, and amounts pledged as collateral to meet financing arrangements.

The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows:



	September 30		December 31
(in millions of U.S. dollars)	2018		2017
Cash	$	1,053	$	728
Restricted cash	104		123
Total cash and restricted cash shown in the consolidated statements of cash flows	$	1,157	$	851

Accounting guidance adopted in 2018