CHUBB LTD, 10-Q filed on 8/3/2017
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2017
Jul. 21, 2017
Entity Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2017 
 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q2 
 
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 
 
Common Shares Outstanding
 
465,416,079 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Investments [Abstract]
 
 
Fixed maturities available for sale, at fair value (amortized cost – $80,363 and $79,536)(includes hybrid financial instruments of $2 and $2)
$ 81,645 
$ 80,115 
Fixed maturities held to maturity, at amortized cost (fair value – $10,560 and $10,670)
10,371 
10,644 
Equity securities, at fair value (cost – $697 and $706)
856 
814 
Short-term investments, at fair value and amortized cost
2,651 
3,002 
Other investments (cost – $4,410 and $4,270)
4,685 
4,519 
Total investments
100,208 
99,094 
Cash
1,297 1 2
985 1 3
Securities lending collateral
1,545 
1,092 
Accrued investment income
901 
918 
Insurance and reinsurance balances receivable
9,662 
8,970 
Reinsurance recoverable on losses and loss expenses
13,358 
13,577 
Reinsurance recoverable on policy benefits
198 
182 
Deferred policy acquisition costs
4,546 
4,314 
Value of business acquired
337 
355 
Goodwill
15,434 
15,332 
Other intangible assets
6,579 
6,763 
Prepaid reinsurance premiums
2,592 
2,448 
Investments in partially-owned insurance companies
662 
666 
Other assets
5,669 
5,090 
Total assets
162,988 
159,786 
Liabilities
 
 
Unpaid losses and loss expenses
60,394 
60,540 
Unearned premiums
15,289 
14,779 
Future policy benefits
5,190 
5,036 
Insurance and reinsurance balances payable
5,841 
5,637 
Securities lending payable
1,546 
1,093 
Accounts payable, accrued expenses, and other liabilities
8,952 
8,617 
Deferred tax liabilities
1,122 
988 
Repurchase agreements
1,408 
1,403 
Short-term debt
922 
500 
Long-term debt
11,667 
12,610 
Trust preferred securities
308 
308 
Total liabilities
112,639 
111,511 
Commitments and contingencies
   
   
Shareholders’ equity
 
 
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 465,375,141 and 465,968,716 shares outstanding)
11,121 
11,121 
Common Shares in treasury (14,408,723 and 13,815,148 shares)
(1,675)
(1,480)
Additional paid-in capital
14,522 
15,335 
Retained earnings
26,011 
23,613 
Accumulated other comprehensive income (loss) (AOCI)
370 
(314)
Total shareholders’ equity
50,349 
48,275 
Total liabilities and shareholders’ equity
$ 162,988 
$ 159,786 
Consolidated Balance Sheets (Parenthetical)
In Millions, except Share data, unless otherwise specified
Jun. 30, 2017
USD ($)
Jun. 30, 2017
CHF
Dec. 31, 2016
USD ($)
Dec. 31, 2016
CHF
Statement of Financial Position [Abstract]
 
 
 
 
Available for sale, at amortized cost
$ 80,363 
 
$ 79,536 
 
Fixed maturities available for sale, hybrid financial instruments
2 
 
2 
 
Held to maturity, at Fair Value
10,560 
 
10,670 
 
Equity securities, at cost
697 
 
706 
 
Other investments, cost
$ 4,410 
 
$ 4,270 
 
Common Shares, par value
 
 24.15 
 
 24.15 
Common Shares, shares issued
479,783,864 
479,783,864 
479,783,864 
479,783,864 
Common Shares, shares outstanding
465,375,141 
465,375,141 
465,968,716 
465,968,716 
Common Shares in treasury, shares
14,408,723 
14,408,723 
13,815,148 
13,815,148 
Consolidated Statements Of Operations and Comprehensive Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Revenues
 
 
 
 
Net premiums written
$ 7,581 
$ 7,639 
$ 14,291 
$ 13,634 
Decrease (increase) in unearned premiums
(344)
(234)
(282)
368 
Net premiums earned
7,237 
7,405 
14,009 
14,002 
Net investment income
770 
708 
1,515 
1,382 
Net Realized Gains Losses [Abstract]
 
 
 
 
Other-than-temporary impairment (OTTI) losses gross
(9)
(16)
(28)
(87)
Portion of OTTI losses recognized in other comprehensive income (OCI)
1 
0 
1 
8 
Net OTTI losses recognized in income
(8)
(16)
(27)
(79)
Net realized gains (losses) excluding OTTI losses
109 
(200)
121 
(531)
Total net realized gains (losses) (includes $25, $2, $17, and $(150) reclassified from AOCI)
101 
(216)
94 
(610)
Total revenues
8,108 
7,897 
15,618 
14,774 
Expenses
 
 
 
 
Losses and loss expenses
4,146 
4,254 
7,935 
7,928 
Policy benefits
163 
146 
331 
272 
Policy acquisition costs
1,449 
1,560 
2,846 
2,973 
Administrative expenses
706 
829 
1,382 
1,601 
Interest expense
147 
153 
301 
299 
Other (income) expense
(145)
(29)
(215)
(1)
Amortization of purchased intangibles
65 
5 
129 
12 
Chubb integration expenses
72 
98 
183 
246 
Total expenses
6,603 
7,016 
12,892 
13,330 
Income before income tax
1,505 
881 
2,726 
1,444 
Income tax expense (includes $9, $6, $3 and $5 on reclassified unrealized gains and losses)
200 
155 
328 
279 
Net income
1,305 
726 
2,398 
1,165 
Other comprehensive income
 
 
 
 
Unrealized appreciation
459 
947 
766 
1,852 
Reclassification adjustment for net realized (gains) losses included in net income
(25)
(2)
(17)
150 
Unrealized appreciation (Depreciation) after reclassification adjustment
434 
945 
749 
2,002 
Change in:
 
 
 
 
Cumulative foreign currency translation adjustment
102 
81 
236 
393 
Postretirement benefit liability adjustment
(35)
1 
(55)
3 
Other comprehensive income, before income tax
501 
1,027 
930 
2,398 
Income tax expense related to OCI items
(131)
(213)
(246)
(482)
Other comprehensive income
370 
814 
684 
1,916 
Comprehensive income
$ 1,675 
$ 1,540 
$ 3,082 
$ 3,081 
Earnings per share
 
 
 
 
Basic earnings per share
$ 2.79 
$ 1.55 
$ 5.12 
$ 2.55 
Diluted earnings per share
$ 2.77 
$ 1.54 
$ 5.08 
$ 2.53 
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Total net realized gains (losses) reclassified from AOCI
$ 25 
$ 2 
$ 17 
$ (150)
Income tax expense on reclassified unrealized gains and loses
$ 9 
$ 6 
$ 3 
$ 5 
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions
Total
Common Stock [Member]
Common Stock [Member]
The Chubb Corporation [Member]
Common shares in treasury [Member]
Additional Paid-in Capital [Member]
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Retained Earnings [Member]
Accumulated Net Unrealized Investment Gain (Loss) [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, 2015
 
$ 7,833 
 
$ (1,922)
$ 4,481 
 
$ 19,478 
$ 874 
$ (1,539)
$ (70)
 
Shares Issued for Chubb Corp Acquisition
 
 
3,288 
 
 
11,916 
 
 
 
 
 
Common Shares repurchased
 
 
 
0 
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
 
345 
(358)
323 
 
 
 
 
 
Exercise of stock options
 
 
 
 
(37)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
 
170 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
 
(637)
 
 
 
 
 
 
Net income
1,165 
 
 
 
 
 
1,165 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
 
637 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
 
(637)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax expense of $(259) and $(477)
 
 
 
 
 
 
 
1,375 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit of $3 and $5
 
 
 
 
 
 
 
155 
 
 
 
Change in period, net of income tax expense of $(256) and $(472)
 
 
 
 
 
 
 
1,530 
 
 
 
Change in period, net of income tax expense of $(7) and $(11)
 
 
 
 
 
 
 
 
382 
 
 
Change in period, net of income tax benefit of $17 and $1
 
 
 
 
 
 
 
 
 
4 
 
Balance - end of period at Jun. 30, 2016
47,226 
11,121 
 
(1,577)
15,858 
 
20,643 
2,404 
(1,157)
(66)
1,181 
Balance - beginning of period at Dec. 31, 2016
48,275 
11,121 
 
(1,480)
15,335 
 
23,613 
1,058 
(1,663)
291 
 
Shares Issued for Chubb Corp Acquisition
 
 
0 
 
 
0 
 
 
 
 
 
Common Shares repurchased
 
 
 
(475)
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
 
280 
(275)
0 
 
 
 
 
 
Exercise of stock options
 
 
 
 
(38)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
 
156 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
 
(656)
 
 
 
 
 
 
Net income
2,398 
 
 
 
 
 
2,398 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
 
656 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
 
(656)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax expense of $(259) and $(477)
 
 
 
 
 
 
 
507 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit of $3 and $5
 
 
 
 
 
 
 
(14)
 
 
 
Change in period, net of income tax expense of $(256) and $(472)
 
 
 
 
 
 
 
493 
 
 
 
Change in period, net of income tax expense of $(7) and $(11)
 
 
 
 
 
 
 
 
229 
 
 
Change in period, net of income tax benefit of $17 and $1
 
 
 
 
 
 
 
 
 
(38)
 
Balance - end of period at Jun. 30, 2017
$ 50,349 
$ 11,121 
 
$ (1,675)
$ 14,522 
 
$ 26,011 
$ 1,551 
$ (1,434)
$ 253 
$ 370 
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Statement Consolidated Statements Of Shareholders Equity [Abstract]
 
 
Change in year, before reclassification from AOCI, net of income tax benefit(expense)
$ (259)
$ (477)
Income tax benefit (expense) from reclassification of unrealized gains
3 
5 
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit
(256)
(472)
Cumulative translation adjustment, Change in period, income tax(expense) benefit
(7)
(11)
Net income
2,398 
1,165 
Pension liability adjustment, Change in period, income tax (expense) benefit
$ 17 
$ 1 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities
 
 
Net income
$ 2,398 
$ 1,165 
Adjustments to reconcile net income to net cash flows from operating activities
 
 
Net realized (gains) losses
(94)
610 
Amortization of premiums/discounts on fixed maturities
353 
376 
Amortization of UPR related to the Chubb Corp acquisition
0 
1,095 
Deferred income taxes
(112)
48 
Unpaid losses and loss expenses
(411)
330 
Unearned premiums
386 
(382)
Future policy benefits
134 
106 
Insurance and reinsurance balances payable
278 
193 
Accounts payable, accrued expenses, and other liabilities
(603)
18 
Income taxes payable
(103)
67 
Insurance and reinsurance balances receivable
(575)
(238)
Reinsurance recoverable on losses and loss expenses
312 
(17)
Reinsurance recoverable on policy benefits
(15)
(11)
Deferred policy acquisition costs
(179)
(1,042)
Prepaid reinsurance premiums
(139)
12 
Other
10 
(177)
Net cash flows from operating activities
1,640 
2,153 
Cash flows from investing activities
 
 
Purchases of fixed maturities available for sale
(12,260)
(17,077)
Purchases of fixed maturities held to maturity
(212)
(121)
Purchases of equity securities
(82)
(78)
Sales of fixed maturities available for sale
6,873 
11,868 
Sales of equity securities
104 
932 
Maturities and redemptions of fixed maturities available for sale
5,169 
3,910 
Maturities and redemptions of fixed maturities held to maturity
408 
443 
Net change in short-term investments
354 
11,711 
Net derivative instruments settlements
(129)
(93)
Acquisition of subsidiaries (net of cash acquired of nil and $71)
0 
(14,248)
Other
(121)
81 
Net cash flows from (used for) investing activities
104 
(2,672)
Cash flows from financing activities
 
 
Dividends paid on Common Shares
(646)
(530)
Common Shares repurchased
(475)
0 
Repayment of long-term debt
(500)
0 
Proceeds from issuance of repurchase agreements
1,343 
904 
Repayment of repurchase agreements
(1,338)
(902)
Proceeds from share-based compensation plans
89 
92 
Policyholder contract deposits
209 
274 
Policyholder contract withdrawals
(125)
(103)
Other
0 
(4)
Net cash flows used for financing activities
(1,443)
(269)
Effect of foreign currency rate changes on cash and cash equivalents
11 
24 
Net increase (decrease) in cash
312 
(764)
Cash – beginning of period
985 1 2
1,775 3
Cash – end of period
1,297 1 4
1,011 3
Supplemental cash flow information
 
 
Taxes paid
510 
259 
Interest paid
$ 327 
$ 319 
Consolidated Statements of Cash Flows (Parentheticals) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Statement of Cash Flows [Abstract]
 
 
Cash Acquired from Acquisition
$ 0 
$ 71 
General
General
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 2016 Form 10-K.

b) Goodwill
During the six months ended June 30, 2017, Goodwill increased $102 million, reflecting the impact of foreign exchange.

c) Debt
In February 2017, Chubb INA Holdings Inc.’s $500 million of 5.7 percent senior notes matured and were fully paid. In 2017, we reclassified $300 million of the 5.8 percent senior notes (due to mature in March 2018), and $600 million of the 5.75 percent senior notes (due to mature in May 2018) from Long-term debt to Short-term debt in the Consolidated balance sheets.

Effective April 15, 2017, the interest rate on our $1.0 billion of unsecured junior subordinated capital securities converted to a floating rate, equal to the three-month LIBOR plus 2.25 percentage points. Previously, these capital securities carried interest at a rate of 6.375 percent. The current interest rate, at the time of this filing, on these securities is 3.55 percent. The scheduled maturity date for these securities is April 15, 2037.

d) Accounting guidance adopted in 2017

Stock Compensation
Effective January 2017, we prospectively adopted new guidance on stock compensation which requires recognition of the excess tax benefits or deficiencies of share-based compensation awards to employees through net income rather than through additional paid in capital. The calculation of the excess tax benefits or deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the Consolidated statements of operations. For the three and six months ended June 30, 2017, the excess tax benefit recorded to Income tax expense in the Consolidated statement of operations was $5 million and $30 million, respectively. Additionally, the guidance allowed for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We elected to retain our current accounting for compensation expense using a forfeiture estimation process.
e) Accounting guidance not yet adopted

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

Premium Amortization on Purchased Callable Debt Securities
In March 2017, the FASB issued guidance on the amortization period for purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. Under current guidance, premiums generally are amortized over the contracted life of the security. This guidance is effective for us in the first quarter of 2019 on a modified retrospective basis through a cumulative effect adjustment to beginning retained earnings. Early adoption is permitted. Securities held at a discount do not require an accounting change. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations.

Refer to the 2016 Form 10-K for information on other accounting guidance not yet adopted.
Acquisitions
Acquisitions
Acquisition

The Chubb Corporation (Chubb Corp)
On January 14, 2016, we completed the acquisition of Chubb Corp, a leading provider of middle-market commercial, specialty, surety, and personal insurance for $29.5 billion, comprising $14.3 billion in cash and $15.2 billion in newly-issued stock. In addition, we assumed outstanding equity awards to employees and directors with an attributed value of $323 million. The total consideration, including the assumption of equity awards, was $29.8 billion. We recognized goodwill of $10.5 billion, attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes. Refer to the 2016 Form 10-K for additional information on this acquisition.

The consolidated financial statements include the results of Chubb Corp from the acquisition date.

The following table summarizes the results of the acquired Chubb Corp operations within our 2016 Consolidated statements of operations for the periods presented:
(in millions of U.S. dollars)
Three Months Ended June 30, 2016

 
January 14, 2016 to June 30, 2016

Total revenues
$
2,745

 
$
5,232

Net income
$
326

 
$
581



The following table provides supplemental unaudited pro forma consolidated information for the three and six months ended June 30, 2016, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
Three Months Ended
 
 
Six Months Ended

(in millions of U.S. dollars, except per share data)
June 30, 2016

 
June 30, 2016

Total revenues
$
7,915

 
$
15,237

Net income
$
712

 
$
1,246

Earnings per share
 
 
 
Basic earnings per share
$
1.52

 
$
2.67

Diluted earnings per share
$
1.51

 
$
2.65

Investments
Investments
Investments

a) Fixed maturities
 
June 30, 2017
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
3,122

 
$
40

 
$
(26
)
 
$
3,136

 
$
—

Foreign
21,139

 
653

 
(82
)
 
21,710

 
(2
)
Corporate securities
24,744

 
714

 
(94
)
 
25,364

 
(7
)
Mortgage-backed securities
14,469

 
148

 
(144
)
 
14,473

 
(1
)
States, municipalities, and political subdivisions
16,889

 
138

 
(65
)
 
16,962

 
—

 
$
80,363

 
$
1,693

 
$
(411
)
 
$
81,645

 
$
(10
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
602

 
$
13

 
$
(2
)
 
$
613

 
$
—

Foreign
613

 
29

 
—

 
642

 
—

Corporate securities
2,645

 
62

 
(7
)
 
2,700

 
—

Mortgage-backed securities
1,268

 
37

 
(1
)
 
1,304

 
—

States, municipalities, and political subdivisions
5,243

 
66

 
(8
)
 
5,301

 
—

 
$
10,371

 
$
207

 
$
(18
)
 
$
10,560

 
$
—


December 31, 2016
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,883

 
$
32

 
$
(45
)
 
$
2,870

 
$
—

Foreign
20,929

 
636

 
(125
)
 
21,440

 
(5
)
Corporate securities
23,736

 
580

 
(167
)
 
24,149

 
(8
)
Mortgage-backed securities
14,066

 
135

 
(194
)
 
14,007

 
(1
)
States, municipalities, and political subdivisions
17,922

 
72

 
(345
)
 
17,649

 
—

 
$
79,536

 
$
1,455

 
$
(876
)
 
$
80,115

 
$
(14
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
655

 
$
9

 
$
(3
)
 
$
661

 
$
—

Foreign
640

 
28

 
(1
)
 
667

 
—

Corporate securities
2,771

 
50

 
(26
)
 
2,795

 
—

Mortgage-backed securities
1,393

 
35

 
—

 
1,428

 
—

States, municipalities, and political subdivisions
5,185

 
26

 
(92
)
 
5,119

 
—

 
$
10,644

 
$
148

 
$
(122
)
 
$
10,670

 
$
—



As discussed in Note 3 c), if a credit loss is incurred on an impaired fixed maturity, an OTTI is considered to have occurred and the portion of the impairment not related to credit losses (non-credit OTTI) is recognized in OCI. Included in the “OTTI Recognized in AOCI” columns above are the cumulative amounts of non-credit OTTI recognized in OCI adjusted for subsequent sales, maturities, and redemptions. OTTI recognized in AOCI does not include the impact of subsequent changes in fair value of the related securities. In periods subsequent to a recognition of OTTI in OCI, changes in the fair value of the related fixed maturities are reflected in Net unrealized appreciation on investments in the Consolidated statements of shareholders’ equity. For both the three and six months ended June 30, 2017, $3 million of net unrealized depreciation related to such securities is included in OCI. For the three and six months ended June 30, 2016, $21 million and $44 million, respectively, of net unrealized appreciation related to such securities is included in OCI. At June 30, 2017 and December 31, 2016, AOCI included cumulative net unrealized appreciation of $7 million and $10 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 c) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 81 percent of the total mortgage-backed securities at both June 30, 2017 and December 31, 2016, 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:
 
 
 
June 30

 
 
 
December 31

 
 
 
2017

 
 
 
2016

(in millions of U.S. dollars)
Amortized Cost

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
3,799

 
$
3,823

 
$
3,892

 
$
3,913

Due after 1 year through 5 years
23,748

 
24,207

 
24,027

 
24,429

Due after 5 years through 10 years
28,040

 
28,498

 
27,262

 
27,379

Due after 10 years
10,307

 
10,644

 
10,289

 
10,387

 
65,894

 
67,172

 
65,470

 
66,108

Mortgage-backed securities
14,469

 
14,473

 
14,066

 
14,007

 
$
80,363

 
$
81,645

 
$
79,536

 
$
80,115

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
807

 
$
814

 
$
430

 
$
435

Due after 1 year through 5 years
2,353

 
2,396

 
2,646

 
2,691

Due after 5 years through 10 years
3,001

 
3,045

 
2,969

 
2,944

Due after 10 years
2,942

 
3,001

 
3,206

 
3,172

 
9,103

 
9,256

 
9,251

 
9,242

Mortgage-backed securities
1,268

 
1,304

 
1,393

 
1,428

 
$
10,371

 
$
10,560

 
$
10,644

 
$
10,670



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

b) Equity securities

June 30


December 31

(in millions of U.S. dollars)
2017


2016

Cost
$
697

 
$
706

Gross unrealized appreciation
164

 
129

Gross unrealized depreciation
(5
)
 
(21
)
Fair value
$
856

 
$
814



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

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

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

•
the amount of time a security has been in a loss position and the magnitude of the loss position;
•
the period in which cost is expected to be recovered, if at all, based on various criteria including economic conditions and other issuer-specific developments; and
•
our ability and intent to hold the security to the expected recovery period.

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

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

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

For the three and six months ended June 30, 2017, credit losses recognized in Net income for corporate securities were $1 million and $2 million, respectively. For the three and six months ended June 30, 2016, credit losses recognized in Net income for corporate securities were $7 million and $24 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 six months ended June 30, 2017 and 2016, there were no credit losses recognized in Net income for mortgage-backed securities.
The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary”:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars)
2017

 
2016

 
2017

 
2016

Fixed maturities:
 
 
 
 
 
 
 
OTTI on fixed maturities, gross
$
(5
)
 
$
(11
)
 
$
(11
)
 
$
(78
)
OTTI on fixed maturities recognized in OCI (pre-tax)
1

 
—

 
1

 
8

OTTI on fixed maturities, net
(4
)
 
(11
)
 
(10
)
 
(70
)
Gross realized gains excluding OTTI
45

 
37

 
79

 
102

Gross realized losses excluding OTTI
(18
)
 
(19
)
 
(58
)
 
(215
)
Total fixed maturities
23

 
7

 
11

 
(183
)
Equity securities:
 
 
 
 
 
 
 
OTTI on equity securities
(3
)
 
(5
)
 
(8
)
 
(6
)
Gross realized gains excluding OTTI
6

 
4

 
15

 
44

Gross realized losses excluding OTTI
(1
)
 
(4
)
 
(1
)
 
(5
)
Total equity securities
2

 
(5
)
 
6

 
33

OTTI on other investments
(1
)
 
—

 
(9
)
 
(3
)
Foreign exchange gains (losses)
14

 
(22
)
 
(5
)
 
17

Investment and embedded derivative instruments
(16
)
 
(47
)
 
(10
)
 
(86
)
Fair value adjustments on insurance derivative
118

 
(131
)
 
211

 
(359
)
S&P put options and futures
(38
)
 
(28
)
 
(112
)
 
(43
)
Other derivative instruments
(1
)
 
—

 
1

 
(2
)
Other
—

 
10

 
1

 
16

Net realized gains (losses)
$
101

 
$
(216
)
 
$
94

 
$
(610
)

 
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
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars)
2017

 
2016

 
2017

 
2016

Balance of credit losses related to securities still held – beginning of period
$
32

 
$
57

 
$
35

 
$
53

Additions where no OTTI was previously recorded
1

 
1

 
1

 
12

Additions where an OTTI was previously recorded
—

 
6

 
1

 
12

Reductions for securities sold during the period
(4
)
 
(13
)
 
(8
)
 
(26
)
Balance of credit losses related to securities still held – end of period
$
29

 
$
51

 
$
29

 
$
51



d) Gross unrealized loss
At June 30, 2017, there were 7,924 fixed maturities out of a total of 30,953 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $5 million. There were 67 equity securities out of a total of 320 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $1 million. Fixed maturities in an unrealized loss position at June 30, 2017, 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
 
June 30, 2017
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
2,021

 
$
(28
)
 
$
—

 
$
—

 
$
2,021

 
$
(28
)
Foreign
4,381

 
(57
)
 
599

 
(25
)
 
4,980

 
(82
)
Corporate securities
4,410

 
(72
)
 
372

 
(29
)
 
4,782

 
(101
)
Mortgage-backed securities
7,657

 
(141
)
 
118

 
(4
)
 
7,775

 
(145
)
States, municipalities, and political subdivisions
9,049

 
(68
)
 
182

 
(5
)
 
9,231

 
(73
)
Total fixed maturities
27,518

 
(366
)
 
1,271

 
(63
)
 
28,789

 
(429
)
Equity securities
104

 
(5
)
 
—

 
—

 
104

 
(5
)
Other investments
70

 
(4
)
 
—

 
—

 
70

 
(4
)
Total
$
27,692

 
$
(375
)
 
$
1,271

 
$
(63
)
 
$
28,963

 
$
(438
)
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2016
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
2,216

 
$
(48
)
 
$
—

 
$
—

 
$
2,216

 
$
(48
)
Foreign
5,918

 
(99
)
 
386

 
(27
)
 
6,304

 
(126
)
Corporate securities
7,021

 
(149
)
 
641

 
(44
)
 
7,662

 
(193
)
Mortgage-backed securities
8,638

 
(189
)
 
234

 
(5
)
 
8,872

 
(194
)
States, municipalities, and political subdivisions
19,448

 
(435
)
 
49

 
(2
)
 
19,497

 
(437
)
Total fixed maturities
43,241

 
(920
)
 
1,310

 
(78
)
 
44,551

 
(998
)
Equity securities
199

 
(21
)
 
—

 
—

 
199

 
(21
)
Other investments
201

 
(18
)
 
—

 
—

 
201

 
(18
)
Total
$
43,641

 
$
(959
)
 
$
1,310

 
$
(78
)
 
$
44,951

 
$
(1,037
)


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 June 30, 2017 and December 31, 2016 are investments, primarily fixed maturities, totaling $21.2 billion and $20.1 billion, respectively, and cash of $122 million and $103 million, respectively.
The following table presents the components of restricted assets:
 
June 30

 
December 31

(in millions of U.S. dollars)
2017

 
2016

Trust funds
$
14,938

 
$
13,880

Deposits with U.S. regulatory authorities
2,325

 
2,203

Deposits with non-U.S. regulatory authorities
2,170

 
2,191

Assets pledged under repurchase agreements
1,472

 
1,461

Other pledged assets
371

 
435

 
$
21,276

 
$
20,170

Fair value measurements
Fair value measurements
Fair value measurements

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

The three levels of the hierarchy are as follows:

•
Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets;
•
Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as
interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and
•
Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants
would use in pricing an asset or liability.

We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement. Accordingly, transfers between levels within the valuation hierarchy occur when there are significant changes to the inputs, such as increases or decreases in market activity, changes to the availability of current prices, changes to the transparency to underlying inputs, and whether there are significant variances in quoted prices. Transfers in and/or out of any level are assumed to occur at the end of the period.

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

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

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

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

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

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

Investment derivative instruments
Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps 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 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) and guaranteed minimum accumulation benefits (GMAB) associated with variable annuity contracts. GLB’s are recorded in Accounts payable, accrued expenses, and other liabilities and Future policy benefits in the Consolidated balance sheets. For GLB reinsurance, Chubb estimates fair value using an internal valuation model which includes current market information and estimates of policyholder behavior. All of the treaties contain claim limits, which are factored into the valuation model. The fair value depends on a number of factors, including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates and other policyholder behavior, and changes in policyholder mortality.

The most significant policyholder behavior assumptions include lapse rates and the GMIB annuitization rates. Assumptions regarding lapse rates and GMIB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable.

A lapse rate is the percentage of in-force policies surrendered in a given calendar year. All else equal, as lapse rates increase, ultimate claim payments will decrease.

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. During the three months ended June 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 six months ended June 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 2016 Form 10-K.

Financial instruments measured at fair value on a recurring basis, by valuation hierarchy
June 30, 2017
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,486

 
$
650

 
$
—

 
$
3,136

Foreign
—

 
21,625

 
85

 
21,710

Corporate securities
—

 
24,617

 
747

 
25,364

Mortgage-backed securities
—

 
14,428

 
45

 
14,473

States, municipalities, and political subdivisions
—

 
16,962

 
—

 
16,962

 
2,486

 
78,282

 
877

 
81,645

Equity securities
817

 
—

 
39

 
856

Short-term investments
1,421

 
1,223

 
7

 
2,651

Other investments (1)
430

 
282

 
243

 
955

Securities lending collateral
—

 
1,545

 
—

 
1,545

Investment derivative instruments
12

 
—

 
—

 
12

Other derivative instruments
9

 
—

 
—

 
9

Separate account assets
2,147

 
101

 
—

 
2,248

Total assets measured at fair value (1)
$
7,322

 
$
81,433

 
$
1,166

 
$
89,921

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
35

 
$
—

 
$
—

 
$
35

Other derivative instruments
—

 
—

 
2

 
2

GLB (2)
—

 
—

 
357

 
357

Total liabilities measured at fair value
$
35

 
$
—

 
$
359

 
$
394

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,711 million and other investments of $19 million at June 30, 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.
 
December 31, 2016
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,175

 
$
695

 
$
—

 
$
2,870

Foreign
—

 
21,366

 
74

 
21,440

Corporate securities
—

 
23,468

 
681

 
24,149

Mortgage-backed securities
—

 
13,962

 
45

 
14,007

States, municipalities, and political subdivisions
—

 
17,649

 
—

 
17,649

 
2,175

 
77,140

 
800

 
80,115

Equity securities
773

 
—

 
41

 
814

Short-term investments
1,757

 
1,220

 
25

 
3,002

Other investments (1)
384

 
259

 
225

 
868

Securities lending collateral
—

 
1,092

 
—

 
1,092

Investment derivative instruments
31

 
—

 
—

 
31

Other derivative instruments
3

 
—

 
—

 
3

Separate account assets
1,784

 
95

 
—

 
1,879

Total assets measured at fair value (1)
$
6,907

 
$
79,806

 
$
1,091

 
$
87,804

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
54

 
$
—

 
$
—

 
$
54

Other derivative instruments
—

 
—

 
13

 
13

GLB (2)
—

 
—

 
559

 
559

Total liabilities measured at fair value
$
54

 
$
—

 
$
572

 
$
626


(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,626 million and other investments of $25 million at December 31, 2016 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets.

There were no transfers of financial instruments between Level 1 and Level 2 for the three and six months ended June 30, 2017 and 2016.

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:
 
 
 
 
 
June 30

 
 
 
December 31

 
Expected
Liquidation
Period of Underlying Assets
 
 
 
2017

 
 
 
2016

(in millions of U.S. dollars)
Fair
Value

 
Maximum
Future Funding
Commitments

 
Fair
Value

 
Maximum
Future Funding
Commitments

Financial
5 to 9 Years
 
$
576

 
$
354

 
$
548

 
$
428

Real Assets
3 to 7 Years
 
622

 
181

 
536

 
230

Distressed
5 to 9 Years
 
350

 
175

 
485

 
179

Private Credit
3 to 7 Years
 
238

 
337

 
236

 
259

Traditional
3 to 9 Years
 
1,646

 
805

 
1,550

 
930

Vintage
1 to 2 Years
 
19

 
—

 
21

 
14

Investment funds
Not Applicable
 
260

 
—

 
251

 
—

 
 
 
$
3,711

 
$
1,852

 
$
3,627

 
$
2,040



Included in all categories in the above table, except for Investment funds, are investments for which Chubb will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds.
Investment Category:
 
Consists of investments in private equity funds:
Financial
 
targeting financial services companies such as financial institutions and insurance services worldwide
Real Assets
 
targeting investments related to hard physical assets such as real estate, infrastructure and natural resources
Distressed
 
targeting distressed corporate debt/credit and equity opportunities in the U.S.
Private Credit
 
targeting privately originated corporate debt investments including senior secured loans and subordinated bonds
Traditional
 
employing traditional private equity investment strategies such as buyout and growth equity globally
Vintage
 
made before 2002 and where the funds’ commitment periods had already expired

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

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

The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
(in millions of U.S. dollars, except for percentages)
Fair Value
 
 
Valuation
Technique
 
Significant
Unobservable Inputs
 
Ranges
June 30, 2017

 
December 31, 2016

 
 
 
GLB (1)
$
357

 
$
559

 
Actuarial model
 
Lapse rate
 
3% – 34%
 
 
 
 
 
 
 
Annuitization rate
 
0% – 78%
(1) 
Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits.

The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3):
 
Assets
 
 
Liabilities
 
Three Months Ended
Available-for-Sale Debt Securities
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

June 30, 2017
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
80

 
$
737

 
$
45

 
$
41

$
21

$
233

 
$
11

$
466

Transfers into Level 3
—

 
28

 
—

 
—

—

—

 
—

9

Transfers out of Level 3
—

 
(13
)
 
—

 
—

—

—

 
(9
)
—

Change in Net Unrealized Gains (Losses) included in OCI
3

 
—

 
—

 
1

—

(1
)
 
—

—

Net Realized Gains/Losses
2

 
—

 
—

 
—

—

—

 
—

(118
)
Purchases
19

 
65

 
—

 
6

7

16

 
—

—

Sales
(19
)
 
(28
)
 
—

 
(9
)
—

—

 
—

—

Settlements
—

 
(42
)
 
—

 
—

(21
)
(5
)
 
—

—

Balance – end of period
$
85

 
$
747

 
$
45

 
$
39

$
7

$
243

 
$
2

$
357

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
—

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
—

$
(118
)
(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 $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million, respectively.

  
 
 
 
Liabilities

Three Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other derivative instruments

GLB(1)

June 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
62

 
$
261

 
$
48

 
$
29

$
—

$
211

 
$
10

$
839

Transfers into Level 3
3

 
2

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
3

 
9

 
—

 
(1
)
—

—

 
—

—

Net Realized Gains/Losses
(1
)
 
(2
)
 
—

 
1

—

—

 
—

132

Purchases
27

 
31

 
1

 
10

50

8

 
—

—

Sales
(7
)
 
(16
)
 
—

 
(2
)
—

—

 
—

—

Settlements
—

 
(4
)
 
—

 
—

—

(3
)
 
—

—

Balance – end of period
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(1
)
 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
—

$
132

(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 $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively.

 
Assets
 
 
Liabilities
 
Six Months Ended
Available-for-Sale Debt Securities
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

June 30, 2017
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
74

 
$
681

 
$
45

 
$
41

$
25

$
225

 
$
13

$
559

Transfers into Level 3
—

 
57

 
—

 
—

—

—

 
—

9

Transfers out of Level 3
—

 
(67
)
 
—

 
—

—

—

 
(9
)
—

Change in Net Unrealized Gains (Losses) included in OCI
2

 
(8
)
 
—

 
1

—

3

 
—

—

Net Realized Gains/Losses
1

 
(1
)
 
—

 
—

—

—

 
(2
)
(211
)
Purchases
33

 
221

 
1

 
6

14

24

 
—

—

Sales
(22
)
 
(55
)
 
(1
)
 
(9
)
—

—

 
—

—

Settlements
(3
)
 
(81
)
 
—

 
—

(32
)
(9
)
 
—

—

Balance – end of period
$
85

 
$
747

 
$
45

 
$
39

$
7

$
243

 
$
2

$
357

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
—

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
(2
)
$
(211
)
(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 $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively.

  
Assets
 
 
 
 
Liabilities

Six Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

 
Short-term investments

 
Other
investments

 
Other derivative instruments

 
GLB(1)

June 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance – beginning of period
$
57

 
$
174

 
$
53

 
$
16

 
$
—

 
$
212

 
$
6

 
$
609

Transfers into Level 3
9

 
18

 
—

 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
(2
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
9

 
11

 
—

 
(1
)
 
—

 
—

 
—

 
—

Net Realized Gains/Losses
(6
)
 
(8
)
 
—

 
1

 
—

 
—

 
2

 
362

Purchases (2)
32

 
124

 
1

 
23

 
50

 
14

 
2

 
—

Sales
(8
)
 
(30
)
 
(5
)
 
(2
)
 
—

 
—

 
—

 
—

Settlements
(4
)
 
(8
)
 
—

 
—

 
—

 
(10
)
 
—

 
—

Balance – end of period
$
87

 
$
281

 
$
49

 
$
37

 
$
50

 
$
216

 
$
10

 
$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(5
)
 
$
(7
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
2

 
$
362

(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 $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

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

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

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

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

The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
June 30, 2017
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
528

 
$
85

 
$
—

 
$
613

 
$
602

Foreign
—

 
642

 
—

 
642

 
613

Corporate securities
—

 
2,688

 
12

 
2,700

 
2,645

Mortgage-backed securities
—

 
1,304

 
—

 
1,304

 
1,268

States, municipalities, and political subdivisions
—

 
5,301

 
—

 
5,301

 
5,243

Total assets
$
528

 
$
10,020

 
$
12

 
$
10,560

 
$
10,371

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,408

 
$
—

 
$
1,408

 
$
1,408

Short-term debt
—

 
931

 
—

 
931

 
922

Long-term debt
—

 
12,366

 
—

 
12,366

 
11,667

Trust preferred securities
—

 
462

 
—

 
462

 
308

Total liabilities
$
—

 
$
15,167

 
$
—

 
$
15,167

 
$
14,305

December 31, 2016
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
555

 
$
106

 
$
—

 
$
661

 
$
655

Foreign
—

 
667

 
—

 
667

 
640

Corporate securities
—

 
2,782

 
13

 
2,795

 
2,771

Mortgage-backed securities
—

 
1,428

 
—

 
1,428

 
1,393

States, municipalities, and political subdivisions
—

 
5,119

 
—

 
5,119

 
5,185

Total assets
$
555


$
10,102


$
13


$
10,670


$
10,644

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,403

 
$
—

 
$
1,403

 
$
1,403

Short-term debt
—

 
503

 
—

 
503

 
500

Long-term debt
—

 
12,998

 
—

 
12,998

 
12,610

Trust preferred securities
—

 
456

 
—

 
456

 
308

Total liabilities
$
—

 
$
15,360

 
$
—

 
$
15,360

 
$
14,821

Unpaid losses and loss expenses Unpaid losses and loss expenses
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]
5. Unpaid losses and loss expenses

The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
 
Six Months Ended June 30
 
(in millions of U.S. dollars)
2017
 
 
2016

Gross unpaid losses and loss expenses – beginning of period
 
$
60,540

 
$
37,303

Reinsurance recoverable on unpaid losses (1)
 
(12,708
)
 
(10,741
)
Net unpaid losses and loss expenses – beginning of period
 
47,832

 
26,562

Acquisition of subsidiaries
 
—

 
21,398

Total
 
47,832

 
47,960

Net losses and loss expenses incurred in respect of losses occurring in:
 
 
 
 
Current year
 
8,396

 
8,529

Prior years (2)
 
(461
)
 
(601
)
Total
 
7,935

 
7,928

Net losses and loss expenses paid in respect of losses occurring in:
 
 
 
 
Current year
 
2,271

 
1,964

Prior years
 
5,758

 
5,541

Total
 
8,029

 
7,505

Foreign currency revaluation and other
 
171

 
40

Net unpaid losses and loss expenses – end of period
 
47,909

 
48,423

Reinsurance recoverable on unpaid losses (1)
 
12,485

 
12,396

Gross unpaid losses and loss expenses – end of period
 
$
60,394

 
$
60,819

(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 of $60 million and $53 million for the six months ended June 30, 2017 and 2016, respectively.

Prior Period Development
Long-tail lines include lines such as workers' compensation, general liability, and professional liability; while short-tail lines include lines such as most property lines, energy, personal accident, aviation, marine (including associated liability-related exposures) and agriculture. Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate.

North America Commercial P&C Insurance

2017
For the three months ended June 30, 2017, net favorable PPD was $131 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:

•
Net favorable development of $101 million in long-tail business, primarily from:

•
Net favorable development of $83 million in our workers’ compensation lines 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. Favorable development of $40 million in accident years 2015 and prior was principally due to lower than expected loss experience and revision to development patterns used in our loss projection methods for select portfolios; and

•
Net favorable development of $37 million in our commercial-multi peril (CMP) and monoline general liability lines, driven by favorable paid and reported loss activity relative to prior expectations, principally in accident years 2008 through 2013.

•
Net favorable development of $30 million in short-tail business, primarily from favorable development of $29 million in our commercial property portfolios, driven by lower than expected loss emergence in the 2014 and 2016 accident years.

For the six months ended June 30, 2017, net favorable PPD was $310 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:

•
Net favorable development of $200 million in long-tail business, primarily from:

•
Net favorable development of $84 million in our workers’ compensation lines due to the same factors experienced for the three months ended June 30, 2017, as described above;

•
Net favorable development of $74 million in our commercial excess and umbrella portfolios, primarily in accident years 2010 and prior, driven by lower than expected reported loss activity, and an increase in weighting towards experience-based methods;

•
Net favorable development of $37 million in our commercial-multi peril (CMP) and monoline general liability lines, due to the same factors experienced for the three months ended June 30, 2017, as described above; and

•
Net favorable development of $25 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 $110 million in short-tail business, primarily from:

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

•
Favorable development of $33 million in our property lines, primarily in our commercial property portfolios, due to the same factors experienced for the three months ended June 30, 2017 as described above; and

•
Net favorable development of $24 million in our accident & health (A&H) business, primarily due to lower than expected loss emergence in the 2015 and 2016 accident years.

2016
For the three months ended June 30, 2016, net favorable PPD was $168 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:

•
Net favorable development of $167 million in long-tail business, primarily from:

•
Net favorable development of $114 million in our workers’ compensation lines with favorable development of $40 million in the 2015 accident year related to our annual assessment of multi-claimant events including industrial accidents. 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. Favorable development of $59 million driven by accident years 2011 and prior was principally due to lower than expected loss experience and revision to the basis for selecting development patterns used in our loss projection methods. Adverse development in accident years 2012 through 2015 was due to a small number of large claims in our excess business;

•
Net favorable development of $50 million in our commercial-multi peril (CMP) and monoline general liability lines, driven by favorable paid and reported loss activity relative to prior expectations, principally in accident years 2007 through 2014; and

•
Net favorable development of $20 million in our professional E&O portfolios, in the 2003 accident year due to a favorable development on a specific claim.

For the six months ended June 30, 2016, net favorable PPD was $346 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:

•
Net favorable development of $309 million in long-tail business, primarily from:

•
Favorable development of $145 million in our commercial excess and umbrella portfolios, driven by continued lower than expected reported loss activity in accident years 2010 and prior; in general, the severity of claims has been less than previously expected;

•
Net favorable development of $114 million on our workers’ compensation lines due to the same factors experienced for the three months ended June 30, 2016, as described above;

•
Favorable development of $63 million in our professional E&O portfolios, primarily impacting the 2012 and prior accident years and arising from both lower than expected reported loss activity and re-assessments of remaining claim-specific liabilities for the older accident years; and

•
Net favorable development of $24 million in our primary casualty and general liability portfolios was driven by $50 million favorable development in our CMP and monoline general liability lines as described above, and $26 million adverse development due to higher than expected reported loss activity, mainly associated with construction defect coverages.

•
Net favorable development of $37 million in short-tail business, primarily from favorable development of $24 million in our surety business, due to favorable claim emergence in the 2013 accident year.

North America Personal P&C Insurance

2017
For the three and six months ended June 30, 2017, net adverse PPD was $37 million and $34 million, respectively, driven primarily by higher than expected case incurred development in our automobile, recreational marine and homeowners lines, mainly in accident years 2012 through 2016.

2016
For the three and six months ended June 30, 2016, net favorable PPD was $15 million and $18 million, respectively, which were the net result of several underlying favorable and adverse movements, none of which were significant individually or in the aggregate.

North America Agricultural Insurance

There was no PPD in both the three months ended June 30, 2017 and 2016.

For the six months ended June 30, 2017 and 2016, net favorable PPD was $79 million and $41 million, respectively. 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., 2017 results based on crop yield results at year-end 2016).

Overseas General Insurance

2017
For the three months ended June 30, 2017, net favorable PPD was $88 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:

•
Net favorable development of $88 million in short-tail business, primarily from:

•
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;

•
Favorable development of $26 million in technical and energy lines, primarily from favorable loss emergence in accident years 2014 through 2016 primarily in offshore where experience has been better than expected; and

•
Favorable development of $19 million in A&H lines, primarily from favorable loss emergence in Asia Pacific and Continental Europe in accident years 2014 through 2016.

For the six months ended June 30, 2017, net favorable PPD was $76 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:

•
Net favorable development of $108 million in short-tail business, due primarily to the same factors experienced for the three months ended June 30, 2017 as described above; and

•
Net adverse development of $32 million in long-tail business, primarily in our casualty lines, driven by a change in the discount rate in the U.K. (Ogden rate) impacting the 2016 and prior accident years.

2016
For the three months ended June 30, 2016, net favorable PPD was $85 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal changes:

•
Net favorable development of $84 million in short-tail business, primarily from:

•
Favorable development of $38 million in property (excluding technical lines), primarily from favorable Continental Europe loss emergence in accident years 2013 through 2015; and

•
Favorable development of $32 million in energy lines, primarily from a claims review of catastrophe impacts on underwriting years 2004 through 2008, as well as favorable loss emergence in accident years 2010 through 2013, primarily in offshore where experience has been better than expected.

For the six months ended June 30, 2016, net favorable PPD was $115 million, due primarily to the same factors experienced for the three months ended June 30, 2016 as described above.

Global Reinsurance

2017
For the three months ended June 30, 2017, net favorable PPD was $31 million, which was the net result of several underlying favorable and adverse movements, driven by the following principal change:

•
Net favorable development of $36 million in our casualty and professional liability lines, primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence.

For the six months ended June 30, 2017, net favorable PPD was $23 million, which was the net result of several underlying favorable and adverse movements driven by the following principal change:

•
Net favorable development of $27 million, comprising $36 million in our casualty and professional liability lines as described above, as well as adverse development of $9 million in our motor and excess liability lines, driven by a change in the discount rate in the U.K. (Ogden rate) primarily impacting the 2015 and prior treaty years.

2016
For the three and six months ended June 30, 2016, net favorable PPD was $47 million and $50 million, respectively, which were the net result of several underlying favorable and adverse movements, driven by the following principal change:

•
Favorable development of $41 million in casualty lines primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence.

Corporate

2017
For the three and six months ended June 30, 2017, adverse development was $43 million and $53 million, respectively, due principally to development of $35 million on run-off non A&E casualty exposures due to higher than expected loss activity, and unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in the respective periods of $8 million and $18 million, respectively.

2016
For the three and six months ended June 30, 2016, net adverse development was $14 million and $22 million, respectively, due principally to unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in the respective periods.
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees

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

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

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

Under reinsurance programs covering GLBs, Chubb assumes the risk of GLBs, including GMIB and GMAB, associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder’s account value is less than a guaranteed minimum value. The GLB reinsurance product meets the definition of a derivative instrument. Benefit reserves in respect of GLBs are classified as Future policy benefits (FPB) while the fair value derivative adjustment is classified within AP. Chubb also generally maintains positions in exchange-traded equity futures contracts 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:
 
 
 
 
 
June 30, 2017
 
 
 
 
December 31, 2016
 
 
Consolidated
Balance Sheet
Location
 
Fair Value
 
 
Notional
Value/
Payment
Provision

 
Fair Value
 
 
Notional
Value/
Payment
Provision

(in millions of U.S. dollars)
 
Derivative Asset

 
Derivative (Liability)

 
 
Derivative Asset

 
Derivative (Liability)

 
Investment and embedded derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
OA / (AP)
 
$
8

 
$
(30
)
 
$
2,201

 
$
25

 
$
(50
)
 
$
2,220

Cross-currency swaps
OA / (AP)
 
—

 
—

 
45

 
—

 
—

 
95

Options/Futures contracts on notes and bonds
OA / (AP)
 
4

 
(5
)
 
1,376

 
6

 
(4
)
 
2,344

Convertible securities (1)
FM AFS / ES
 
2

 
—

 
7

 
2

 
—

 
7

 
 
 
$
14

 
$
(35
)
 
$
3,629

 
$
33

 
$
(54
)
 
$
4,666

Other derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Futures contracts on equities (2)
OA / (AP)
 
$
5

 
$
—

 
$
1,428

 
$
1

 
$
—

 
$
1,316

Other
OA / (AP)
 
4

 
(2
)
 
249

 
2

 
(13
)
 
214

 
 
 
$
9

 
$
(2
)
 
$
1,677

 
$
3

 
$
(13
)
 
$
1,530

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(684
)
 
$
1,180

 
$
—

 
$
(853
)
 
$
1,264


(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 June 30, 2017 and December 31, 2016, derivative liabilities of $8 million and $10 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement. 

b) Secured borrowings
Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. 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
 
 
 
June 30

 
December 31

 
 
2017

 
2016

(in millions of U.S. dollars)
 
Overnight and Continuous
 
Collateral held under securities lending agreements:
 
 
 
 
Cash
 
$
1,062

 
$
423

U.S. Treasury and agency
 
82

 
54

Foreign
 
263

 
578

Corporate securities
 
1

 
37

Mortgage-backed securities
 
60

 
—

Equity securities
 
77

 
—

 
 
$
1,545

 
$
1,092

Gross amount of recognized liability for securities lending payable
 
$
1,546

 
$
1,093

Difference (1)
 
$
(1
)
 
$
(1
)
(1) 
The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable at both June 30, 2017 and December 31, 2016, due to accrued interest recorded in the securities lending payable.

At June 30, 2017 and December 31, 2016, our repurchase agreement obligations of $1,408 million and $1,403 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.  

The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:
 
Remaining contractual maturity
 
 
June 30, 2017
 
 
December 31, 2016
 
 
30-90 Days

 
Greater than
90 Days

 
Total

 
Up to
30 Days

 
Greater than
90 Days

 
Total

(in millions of U.S. dollars)
 
 
 
 
Collateral pledged under repurchase agreements:
 
 
 
 
 
 
 
 
 
 
 
Cash
$
—

 
$
—

 
$
—

 
$
—

 
$
1

 
$
1

U.S. Treasury and agency
6

 
240

 
246

 
230

 
10

 
240

Mortgage-backed securities
495

 
731

 
1,226

 
339

 
881

 
1,220

 
$
501

 
$
971

 
$
1,472

 
$
569

 
$
892

 
$
1,461

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
$
1,408

 
 
 
 
 
$
1,403

Difference (1)
 
 
 
 
$
64

 
 
 
 
 
$
58


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


The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
June 30
 
(in millions of U.S. dollars)
2017

 
2016

2017

 
2016

Investment and embedded derivative instruments
 
 
 
 
 
 
Foreign currency forward contracts
$
(7
)
 
$
(10
)
$
7

 
$
(20
)
All other futures contracts and options
(9
)
 
(37
)
(17
)
 
(71
)
Convertible securities (1)
—

 
—

—

 
5

Total investment and embedded derivative instruments
$
(16
)
 
$
(47
)
$
(10
)
 
$
(86
)
GLB and other derivative instruments
 
 
 
 
 
 
GLB (2)
$
118

 
$
(131
)
$
211

 
$
(359
)
Futures contracts on equities (3)
(38
)
 
(28
)
(112
)
 
(43
)
Other
(1
)
 
—

1

 
(2
)
Total GLB and other derivative instruments
$
79

 
$
(159
)
$
100

 
$
(404
)
 
$
63

 
$
(206
)
$
90

 
$
(490
)
(1) 
Includes embedded derivatives.
(2) 
Excludes foreign exchange gains (losses) related to GLB.
(3) 
Related to GMDB and GLB blocks of business.

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

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

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

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

The price of an option is influenced by the underlying security, expected volatility, time to expiration, and supply and demand.

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

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

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

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

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

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

d) Fixed maturities
At June 30, 2017, we have commitments to purchase fixed income securities of $675 million over the next several years.

e) Other investments
At June 30, 2017, included in Other investments in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.5 billion. In connection with these investments, we have commitments that may require funding of up to $1.9 billion over the next several years.

f) Taxation
At June 30, 2017, $15 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 of taxing authorities and the closing of tax statute limitations. With few exceptions, Chubb is no longer subject to state and local or non-U.S. income tax examinations for years before 2009.

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.
Shareholders' equity
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 June 30, 2017, our Common Shares had a par value of CHF 24.15 per share.

At our May 2016 and 2015 annual general meetings, our shareholders approved an annual dividend for the following year of up to $2.76 per share and $2.68 per share, respectively, which were paid in four quarterly installments of $0.69 per share and $0.67 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 2017 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.84 per share, expected to be paid in four quarterly installments of $0.71 per share after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment. The Board will determine the record and payment dates at which the annual dividend may be paid until the date of the 2018 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
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
 
2017
 
 
2016
 
 
2017
 
 
2016
 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

Total dividend distributions per common share
0.69

 
$
0.71

 
0.68

 
$
0.69

 
1.38

 
$
1.40

 
1.34

 
$
1.36



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 June 30, 2017, 14,408,723 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans.

Chubb Limited securities repurchase authorization
There was no share repurchase program from January 2016 through October 2016. In November 2016, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares through December 31, 2017.

Repurchases of Chubb's Common Shares conducted in a series of open market transactions from January 1, 2017 through August 2, 2017 under the Board authorization are as follows:
(in millions of U.S. dollars, except share data)
Three Months Ended
June 30, 2017

 
Six Months Ended
June 30, 2017

 
July 1, 2017
through
August 2, 2017

 
 
Number of shares repurchased
2,381,566

 
3,417,630

 
501,872

Cost of shares repurchased
$
335

 
$
475

 
$
72

Repurchase authorization remaining at end of period
$
525

 
$
525

 
$
453

Share-based compensation
Share-based compensation
Share-based compensation

The Chubb Limited 2016 Long-Term Incentive Plan (the 2016 LTIP) permits grants of incentive and non-qualified stock options; restricted stock and restricted stock units; and performance-based restricted stock awards. The incentive and non-qualified stock options are granted 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 and typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 23, 2017, Chubb granted 2,065,620 stock options with a weighted-average grant date fair value of $22.97 each estimated using the Black-Scholes option pricing model. The service-based restricted stock and restricted stock units are generally granted with a 4-year vesting period, based on a graded vesting schedule.

Performance-based restricted stock awards granted prior to January 2017 comprised target awards which have four installments that vest annually based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth compared to a defined group of peer companies, and premium awards, which are earned only if tangible book value per share growth over the cumulative 4-year period after the grant of the associated target awards exceeds a higher threshold compared to our peer group. The terms of performance-based restricted stock awards granted beginning in January 2017 were updated to now include a 3-year cliff vesting provision in place of the 4-year graded vesting period. In addition, these awards now include an additional vesting criteria based on the P&C combined ratio compared to a defined group of peer companies as well as an additional vesting provision for premium awards based on total shareholder return (TSR) compared to a defined group of peer companies.

Chubb's restricted stock is granted at market close price on the grant date. On February 23, 2017, Chubb granted 1,105,118 service-based restricted stock awards, 326,272 service-based restricted stock units, and 202,251 performance-based stock awards to employees and officers with a grant date fair value of $139.01 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting.
Postretirement benefits Postretirement benefits
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:
 
Three Months Ended June 30
 
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

(in millions of U.S. dollars)
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
16

 
$
4

 
$
20

 
$
1

 
$
1

 
$
2

Interest cost
26

 
7

 
33

 
—

 
—

 
—

Expected return on plan assets
(48
)
 
(10
)
 
(58
)
 
(1
)
 
—

 
(1
)
Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
(23
)
 
—

 
(23
)
Curtailments
—

 
(8
)
 
(8
)
 
—

 
—

 
—

Net periodic (benefit) cost
$
(6
)
 
$
(6
)
 
$
(12
)
 
$
(23
)
 
$
1

 
$
(22
)
2016
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
20

 
$
4

 
$
24

 
$
2

 
$
1

 
$
3

Interest cost
27

 
8

 
35

 
4

 
—

 
4

Expected return on plan assets
(42
)
 
(10
)
 
(52
)
 
(2
)
 
—

 
(2
)
Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

Net periodic cost
$
5

 
$
3

 
$
8

 
$
4

 
$
1

 
$
5


 
Six Months Ended June 30
 
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

(in millions of U.S. dollars)
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
32

 
$
8

 
$
40

 
$
1

 
$
1

 
$
2

Interest cost
52

 
14

 
66

 
1

 
—

 
1

Expected return on plan assets
(95
)
 
(20
)
 
(115
)
 
(2
)
 
—

 
(2
)
Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
(46
)
 
—

 
(46
)
Curtailments
—

 
(8
)
 
(8
)
 
—

 
—

 
—

Net periodic (benefit) cost
$
(11
)
 
$
(5
)
 
$
(16
)
 
$
(46
)
 
$
1

 
$
(45
)
2016
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
37

 
$
9

 
$
46

 
$
4

 
$
1

 
$
5

Interest cost
54

 
16

 
70

 
9

 
—

 
9

Expected return on plan assets
(79
)
 
(20
)
 
(99
)
 
(4
)
 
—

 
(4
)
Amortization of net actuarial loss
—

 
2

 
2

 
—

 
—

 
—

Net periodic cost
$
12

 
$
7

 
$
19

 
$
9

 
$
1

 
$
10

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

For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main measures of segment performance. Chubb calculates underwriting income by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate segment income, include net investment income, other (income) expense, and amortization of purchased intangibles. For the North America Agricultural Insurance segment, management includes gains and losses on crop derivatives as a component of underwriting income. For example, for the three months ended June 30, 2017, underwriting income in our North America Agricultural Insurance segment was $23 million. This amount includes $2 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) in the Corporate column below.

For the Life Insurance segment, management includes Net investment income and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life Insurance underwriting income. For example, for the three months ended June 30, 2017, Life Insurance underwriting income of $56 million includes Net investment income of $77 million and gains from fair value changes in separate account assets of $16 million. The gains from fair value changes in separate account assets are reported in Other (income) expense in the table below.


The following tables present the Statement of Operations by segment:
 
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
 
 
 
 
 
 
June 30, 2017
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
3,204

 
$
1,255

 
$
403

 
$
2,006

 
$
190

 
$
523

 
$
—

 
$
7,581

Net premiums earned
3,099

 
1,093

 
344

 
2,018

 
168

 
515

 
—

 
7,237

Losses and loss expenses
1,936

 
683

 
290

 
964

 
46

 
182

 
45

 
4,146

Policy benefits
—

 
—

 
—

 
—

 
—

 
163

 
—

 
163

Policy acquisition costs
464

 
230

 
27

 
555

 
43

 
130

 
—

 
1,449

Administrative expenses
241

 
66

 
2

 
243

 
12

 
77

 
65

 
706

Underwriting income (loss)
458

 
114

 
25

 
256

 
67

 
(37
)
 
(110
)
 
773

Net investment income (loss)
490

 
56

 
6

 
148

 
65

 
77

 
(72
)
 
770

Other (income) expense
(4
)
 
1

 
1

 
(3
)
 
1

 
(12
)
 
(129
)
 
(145
)
Amortization expense of purchased intangibles
—

 
5

 
7

 
11

 
—

 
—

 
42

 
65

Segment income (loss)
$
952


$
164


$
23


$
396


$
131


$
52


$
(95
)

$
1,623

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
101

 
101

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
147

 
147

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
72

 
72

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
200

 
200

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(413
)
 
$
1,305

 
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
 
 
 
 
 
June 30, 2016
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
3,245

 
$
1,231

 
$
375

 
$
2,031

 
$
230

 
$
527

 
$
—

 
$
7,639

Net premiums earned
3,148

 
1,140

 
327

 
2,093

 
185

 
512

 
—

 
7,405

Losses and loss expenses
1,971

 
661

 
284

 
1,089

 
87

 
147

 
15

 
4,254

Policy benefits
—

 
—

 
—

 
—

 
—

 
146

 
—

 
146

Policy acquisition costs
545

 
269

 
25

 
537

 
47

 
137

 
—

 
1,560

Administrative expenses
299

 
98

 
2

 
277

 
14

 
77

 
62

 
829

Underwriting income (loss)
333

 
112

 
16

 
190

 
37

 
5

 
(77
)
 
616

Net investment income (loss)
468

 
55

 
5

 
147

 
65

 
69

 
(101
)
 
708

Other (income) expense
(9
)
 
3

 
—

 
(5
)
 
(2
)
 
—

 
(16
)
 
(29
)
Amortization expense (benefit) of purchased intangibles
—

 
4

 
8

 
13

 
—

 
—

 
(20
)
 
5

Segment income (loss)
$
810

 
$
160

 
$
13

 
$
329

 
$
104

 
$
74

 
$
(142
)
 
$
1,348

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(216
)
 
(216
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
153

 
153

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
98

 
98

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
155

 
155

Net income (loss)


 
 
 
 
 
 
 
 
 
 
 
$
(764
)
 
$
726



 
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 Six Months Ended
 
 
 
 
 
June 30, 2017
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
5,946

 
$
2,239

 
$
464

 
$
4,206

 
$
389

 
$
1,047

 
$
—

 
$
14,291

Net premiums earned
6,140

 
2,179

 
358

 
3,954

 
357

 
1,021

 
—

 
14,009

Losses and loss expenses
3,796

 
1,316

 
217

 
2,035

 
140

 
375

 
56

 
7,935

Policy benefits
—

 
—

 
—

 
—

 
—

 
331

 
—

 
331

Policy acquisition costs
951

 
447

 
26

 
1,084

 
94

 
244

 
—

 
2,846

Administrative expenses
472

 
131

 
(3
)
 
488

 
22

 
149

 
123

 
1,382

Underwriting income (loss)
921

 
285

 
118

 
347

 
101

 
(78
)
 
(179
)
 
1,515

Net investment income (loss)
968

 
111

 
12

 
296

 
127

 
152

 
(151
)
 
1,515

Other (income) expense
—

 
2

 
1

 
(4
)
 
1

 
(41
)
 
(174
)
 
(215
)
Amortization expense of purchased intangibles
—

 
8

 
14

 
22

 
—

 
1

 
84

 
129

Segment income (loss)
$
1,889

 
$
386

 
$
115

 
$
625

 
$
227

 
$
114

 
$
(240
)
 
$
3,116

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
94

 
94

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
301

 
301

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
183

 
183

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
328

 
328

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(958
)
 
$
2,398

 
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 Six Months Ended
 
 
 
 
 
June 30, 2016
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
5,547

 
$
2,102

 
$
439

 
$
4,072

 
$
431

 
$
1,043

 
$
—

 
$
13,634

Net premiums earned
6,044

 
2,164

 
350

 
4,048

 
387

 
1,009

 
—

 
14,002

Losses and loss expenses
3,718

 
1,322

 
254

 
2,110

 
176

 
324

 
24

 
7,928

Policy benefits
—

 
—

 
—

 
—

 
—

 
272

 
—

 
272

Policy acquisition costs
1,027

 
518

 
29

 
1,040

 
100

 
259

 
—

 
2,973

Administrative expenses
565

 
186

 
(2
)
 
540

 
28

 
149

 
135

 
1,601

Underwriting income (loss)
734

 
138

 
69

 
358

 
83

 
5

 
(159
)
 
1,228

Net investment income (loss)
894

 
102

 
10

 
293

 
132

 
136

 
(185
)
 
1,382

Other (income) expense
(9
)
 
4

 
—

 
(10
)
 
(3
)
 
6

 
11

 
(1
)
Amortization expense (benefit) of purchased intangibles
—

 
12

 
15

 
24

 
—

 
1

 
(40
)
 
12

Segment income (loss)
$
1,637

 
$
224

 
$
64

 
$
637

 
$
218

 
$
134

 
$
(315
)
 
$
2,599

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(610
)
 
(610
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
299

 
299

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
246

 
246

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
279

 
279

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 

$
(1,749
)
 
$
1,165



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
Earnings per share
Earnings per share
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars, except share and per share data)
2017

 
2016

 
2017

 
2016

Numerator:
 
 
 
 
 
 
 
Net income
$
1,305

 
$
726

 
$
2,398

 
$
1,165

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
 
 
Weighted-average shares outstanding
467,981,077

 
467,701,328

 
468,244,458

 
457,102,802

Denominator for diluted earnings per share:
 
 
 
 
 
 
 
Share-based compensation plans
3,872,860

 
3,455,969

 
3,900,678

 
3,379,559

Weighted-average shares outstanding and assumed conversions
471,853,937

 
471,157,297

 
472,145,136

 
460,482,361

Basic earnings per share
$
2.79

 
$
1.55

 
$
5.12

 
$
2.55

Diluted earnings per share
$
2.77

 
$
1.54

 
$
5.08

 
$
2.53

Potential anti-dilutive share conversions
2,066,578

 
2,103,281

 
1,467,556

 
2,056,018



Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective periods.
Information provided in connection with outstanding debt of subsidiaries
Information provided in connection with outstanding debt of subsidiaries
Information provided in connection with outstanding debt of subsidiaries

The following tables present condensed consolidating financial information at June 30, 2017 and December 31, 2016, and for the three and six months ended June 30, 2017 and 2016 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 June 30, 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
$
23

 
$
305

 
$
99,880

 
$
—

 
$
100,208

Cash (1)
—

 
167

 
1,323

 
(193
)
 
1,297

Insurance and reinsurance balances receivable
—

 
—

 
11,699

 
(2,037
)
 
9,662

Reinsurance recoverable on losses and loss expenses
—

 
—

 
24,118

 
(10,760
)
 
13,358

Reinsurance recoverable on policy benefits
—

 
—

 
1,205

 
(1,007
)
 
198

Value of business acquired
—

 
—

 
337

 
—

 
337

Goodwill and other intangible assets
—

 
—

 
22,013

 
—

 
22,013

Investments in subsidiaries
40,553

 
49,982

 
—

 
(90,535
)
 
—

Due from subsidiaries and affiliates, net
10,251

 
—

 
—

 
(10,251
)
 
—

Other assets
141

 
289

 
19,527

 
(4,042
)
 
15,915

Total assets
$
50,968

 
$
50,743

 
$
180,102

 
$
(118,825
)
 
$
162,988

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,460

 
$
(10,066
)
 
$
60,394

Unearned premiums
—

 
—

 
18,876

 
(3,587
)
 
15,289

Future policy benefits
—

 
—

 
6,197

 
(1,007
)
 
5,190

Due to subsidiaries and affiliates, net
—

 
9,939

 
312

 
(10,251
)
 
—

Affiliated notional cash pooling programs (1)
193

 
—

 
—

 
(193
)
 
—

Repurchase agreements
—

 
—

 
1,408

 
—

 
1,408

Short-term debt
—

 
922

 
—

 
—

 
922

Long-term debt
—

 
11,656

 
11

 
—

 
11,667

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
426

 
1,582

 
18,639

 
(3,186
)
 
17,461

Total liabilities
619

 
24,407

 
115,903

 
(28,290
)
 
112,639

Total shareholders’ equity
50,349

 
26,336

 
64,199

 
(90,535
)
 
50,349

Total liabilities and shareholders’ equity
$
50,968

 
$
50,743

 
$
180,102

 
$
(118,825
)
 
$
162,988


(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 June 30, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
 

Condensed Consolidating Balance Sheet at December 31, 2016

(in millions of U.S. dollars)
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
27

 
$
485

 
$
98,582

 
$
—

 
$
99,094

Cash (1)
1

 
1

 
1,965

 
(982
)
 
985

Insurance and reinsurance balances receivable
—

 
—

 
10,498

 
(1,528
)
 
8,970

Reinsurance recoverable on losses and loss expenses
—

 
—

 
24,496

 
(10,919
)
 
13,577

Reinsurance recoverable on policy benefits
—

 
—

 
1,153

 
(971
)
 
182

Value of business acquired
—

 
—

 
355

 
—

 
355

Goodwill and other intangible assets
—

 
—

 
22,095

 
—

 
22,095

Investments in subsidiaries
38,408

 
49,509

 
—

 
(87,917
)
 
—

Due from subsidiaries and affiliates, net
10,482

 
—

 
—

 
(10,482
)
 
—

Other assets
3

 
436

 
18,442

 
(4,353
)
 
14,528

Total assets
$
48,921

 
$
50,431

 
$
177,586

 
$
(117,152
)
 
$
159,786

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,683

 
$
(10,143
)
 
$
60,540

Unearned premiums
—

 
—

 
18,538

 
(3,759
)
 
14,779

Future policy benefits
—

 
—

 
6,007

 
(971
)
 
5,036

Due to subsidiaries and affiliates, net
—

 
10,209

 
273

 
(10,482
)
 
—

Affiliated notional cash pooling programs (1)
363

 
619

 
—

 
(982
)
 
—

Repurchase agreements
—

 
—

 
1,403

 
—

 
1,403

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,599

 
11

 
—

 
12,610

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
283

 
1,582

 
17,368

 
(2,898
)
 
16,335

Total liabilities
646

 
25,817

 
114,283

 
(29,235
)
 
111,511

Total shareholders’ equity
48,275

 
24,614

 
63,303

 
(87,917
)
 
48,275

Total liabilities and shareholders’ equity
$
48,921

 
$
50,431

 
$
177,586

 
$
(117,152
)
 
$
159,786

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. 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, 2016, 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 June 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 premiums written
$
—

 
$
—

 
$
7,581

 
$
—

 
$
7,581

Net premiums earned
—

 
—

 
7,237

 
—

 
7,237

Net investment income
2

 
4

 
764

 
—

 
770

Equity in earnings of subsidiaries
1,253

 
665

 
—

 
(1,918
)
 
—

Net realized gains (losses) including OTTI
(2
)
 
(1
)
 
104

 
—

 
101

Losses and loss expenses
—

 
—

 
4,146

 
—

 
4,146

Policy benefits
—

 
—

 
163

 
—

 
163

Policy acquisition costs and administrative expenses
18

 
(2
)
 
2,139

 
—

 
2,155

Interest (income) expense
(84
)
 
212

 
19

 
—

 
147

Other (income) expense
4

 
10

 
(159
)
 
—

 
(145
)
Amortization of purchased intangibles
—

 
—

 
65

 
—

 
65

Chubb integration expenses
6

 
4

 
62

 
—

 
72

Income tax expense (benefit)
4

 
(87
)
 
283

 
—

 
200

Net income
$
1,305

 
$
531

 
$
1,387

 
$
(1,918
)
 
$
1,305

Comprehensive income
$
1,675

 
$
920

 
$
1,756

 
$
(2,676
)
 
$
1,675



Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
7,639

 
$
—

 
$
7,639

Net premiums earned
—

 
—

 
7,405

 
—

 
7,405

Net investment income
1

 
3

 
704

 
—

 
708

Equity in earnings of subsidiaries
664

 
549

 
—

 
(1,213
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(1
)
 
(214
)
 
—

 
(216
)
Losses and loss expenses
—

 
—

 
4,254

 
—

 
4,254

Policy benefits
—

 
—

 
146

 
—

 
146

Policy acquisition costs and administrative expenses
16

 
96

 
2,277

 
—

 
2,389

Interest (income) expense
(93
)
 
233

 
13

 
—

 
153

Other (income) expense
(4
)
 
10

 
(35
)
 
—

 
(29
)
Amortization of purchased intangibles
—

 
—

 
5

 
—

 
5

Chubb integration expenses
14

 
(97
)
 
181

 
—

 
98

Income tax expense (benefit)
5

 
(37
)
 
187

 
—

 
155

Net income
$
726

 
$
346

 
$
867

 
$
(1,213
)
 
$
726

Comprehensive income
$
1,540

 
$
1,004

 
$
1,681

 
$
(2,685
)
 
$
1,540






Condensed Consolidating Statements of Operations and Comprehensive Income
For the Six Months Ended June 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 premiums written
$
—

 
$
—

 
$
14,291

 
$
—

 
$
14,291

Net premiums earned
—

 
—

 
14,009

 
—

 
14,009

Net investment income
2

 
7

 
1,506

 
—

 
1,515

Equity in earnings of subsidiaries
2,280

 
1,366

 
—

 
(3,646
)
 
—

Net realized gains (losses) including OTTI
(2
)
 
(14
)
 
110

 
—

 
94

Losses and loss expenses
—

 
—

 
7,935

 
—

 
7,935

Policy benefits
—

 
—

 
331

 
—

 
331

Policy acquisition costs and administrative expenses
36

 
12

 
4,180

 
—

 
4,228

Interest (income) expense
(168
)
 
433

 
36

 
—

 
301

Other (income) expense
(2
)
 
25

 
(238
)
 
—

 
(215
)
Amortization of purchased intangibles
—

 
—

 
129

 
—

 
129

Chubb integration expenses
6

 
53

 
124

 
—

 
183

Income tax expense (benefit)
10

 
(199
)
 
517

 
—

 
328

Net income
$
2,398

 
$
1,035

 
$
2,611

 
$
(3,646
)
 
$
2,398

Comprehensive income
$
3,082

 
$
1,711

 
$
3,294

 
$
(5,005
)
 
$
3,082


Condensed Consolidating Statements of Operations and Comprehensive Income
For the Six Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
13,634

 
$
—

 
$
13,634

Net premiums earned
—

 
—

 
14,002

 
—

 
14,002

Net investment income
2

 
7

 
1,373

 
—

 
1,382

Equity in earnings of subsidiaries
1,039

 
1,055

 
—

 
(2,094
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(1
)
 
(608
)
 
—

 
(610
)
Losses and loss expenses
—

 
—

 
7,928

 
—

 
7,928

Policy benefits
—

 
—

 
272

 
—

 
272

Policy acquisition costs and administrative expenses
33

 
132

 
4,409

 
—

 
4,574

Interest (income) expense
(173
)
 
448

 
24

 
—

 
299

Other (income) expense
(13
)
 
20

 
(8
)
 
—

 
(1
)
Amortization of purchased intangibles
—

 
—

 
12

 
—

 
12

Chubb integration expenses
17

 
40

 
189

 
—

 
246

Income tax expense (benefit)
11

 
(187
)
 
455

 
—

 
279

Net income
$
1,165

 
$
608

 
$
1,486

 
$
(2,094
)
 
$
1,165

Comprehensive income
$
3,081

 
$
2,060

 
$
3,402

 
$
(5,462
)
 
$
3,081


Condensed Consolidating Statement of Cash Flows
Six Months Ended June 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
$
551

 
$
1,444

 
$
1,686

 
$
(2,041
)
 
$
1,640

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturities available for sale
—

 
(5
)
 
(12,255
)
 
—

 
(12,260
)
Purchases of fixed maturities held to maturity
—

 
—

 
(212
)
 
—

 
(212
)
Purchases of equity securities
—

 
—

 
(82
)
 
—

 
(82
)
Sales of fixed maturities available for sale
—

 
—

 
6,873

 
—

 
6,873

Sales of equity securities
—

 
—

 
104

 
—

 
104

Maturities and redemptions of fixed maturities available for sale
—

 
13

 
5,156

 
—

 
5,169

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
408

 
—

 
408

Net change in short-term investments
—

 
166

 
188

 
—

 
354

Net derivative instruments settlements
—

 
(7
)
 
(122
)
 
—

 
(129
)
Other
—

 
2

 
(123
)
 
—

 
(121
)
Net cash flows from (used for) investing activities
—

 
169

 
(65
)
 
—

 
104

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(646
)
 
—

 
—

 
—

 
(646
)
Common Shares repurchased
—

 
—

 
(475
)
 
—

 
(475
)
Repayment of long-term debt
—

 
(500
)
 
—

 
—

 
(500
)
Proceeds from issuance of repurchase agreements
—

 
—

 
1,343

 
—

 
1,343

Repayment of repurchase agreements
—

 
—

 
(1,338
)
 
—

 
(1,338
)
Proceeds from share-based compensation plans
—

 
—

 
89

 
—

 
89

Dividend to parent company
—

 
—

 
(2,041
)
 
2,041

 
—

Advances (to) from affiliates
264

 
(328
)
 
64

 
—

 
—

Net payments to affiliated notional cash pooling programs(1)
(170
)
 
(619
)
 
—

 
789

 
—

Policyholder contract deposits
—

 
—

 
209

 
—

 
209

Policyholder contract withdrawals
—

 
—

 
(125
)
 
—

 
(125
)
Net cash flows used for financing activities
(552
)
 
(1,447
)
 
(2,274
)
 
2,830

 
(1,443
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
11

 
—

 
11

Net increase (decrease) in cash
(1
)
 
166

 
(642
)
 
789

 
312

Cash – beginning of period(1)
1

 
1

 
1,965

 
(982
)
 
985

Cash – end of period(1)
$
—

 
$
167

 
$
1,323

 
$
(193
)
 
$
1,297

(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 June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from operating activities
$
3,213

 
$
4,050

 
$
2,262

 
$
(7,372
)
 
$
2,153

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturities available for sale
—

 
(83
)
 
(16,994
)
 
—

 
(17,077
)
Purchases of fixed maturities held to maturity
—

 
—

 
(121
)
 
—

 
(121
)
Purchases of equity securities
—

 
—

 
(78
)
 
—

 
(78
)
Sales of fixed maturities available for sale
—

 
—

 
11,868

 
—

 
11,868

Sales of equity securities
—

 
—

 
932

 
—

 
932

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
3,910

 
—

 
3,910

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
443

 
—

 
443

Net change in short-term investments
—

 
7,829

 
3,882

 
—

 
11,711

Net derivative instruments settlements
—

 
(10
)
 
(83
)
 
—

 
(93
)
Acquisition of subsidiaries (net of cash acquired of $71)
—

 
(14,282
)
 
34

 
—

 
(14,248
)
Capital contribution
(2,330
)
 
—

 
(2,330
)
 
4,660

 
—

Other
—

 
(3
)
 
84

 
—

 
81

Net cash flows from (used for) investing activities
(2,330
)
 
(6,549
)
 
1,547

 
4,660

 
(2,672
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(530
)
 
—

 
—

 
—

 
(530
)
Proceeds from issuance of repurchase agreements
—

 
—

 
904

 
—

 
904

Repayment of repurchase agreements
—

 
—

 
(902
)
 
—

 
(902
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
92

 
—

 
92

Dividend to parent company
—

 
—

 
(7,372
)
 
7,372

 
—

Advances (to) from affiliates
(247
)
 
221

 
26

 
—

 
—

Capital contribution
—

 
2,330

 
2,330

 
(4,660
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(106
)
 
157

 
—

 
(51
)
 
—

Policyholder contract deposits
—

 
—

 
274

 
—

 
274

Policyholder contract withdrawals
—

 
—

 
(103
)
 
—

 
(103
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows from (used for) financing activities
(883
)
 
2,704

 
(4,751
)
 
2,661

 
(269
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
24

 
—

 
24

Net increase (decrease) in cash
—

 
205

 
(918
)
 
(51
)
 
(764
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
1

 
$
207

 
$
1,825

 
$
(1,022
)
 
$
1,011


(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 June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
General (Policies)
Basis of presentation 
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 2016 Form 10-K.
Accounting guidance adopted in 2017 
d) Accounting guidance adopted in 2017

Stock Compensation
Effective January 2017, we prospectively adopted new guidance on stock compensation which requires recognition of the excess tax benefits or deficiencies of share-based compensation awards to employees through net income rather than through additional paid in capital. The calculation of the excess tax benefits or deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the Consolidated statements of operations. For the three and six months ended June 30, 2017, the excess tax benefit recorded to Income tax expense in the Consolidated statement of operations was $5 million and $30 million, respectively. Additionally, the guidance allowed for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We elected to retain our current accounting for compensation expense using a forfeiture estimation process.
Accounting guidance not yet adopted 
e) Accounting guidance not yet adopted

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

Premium Amortization on Purchased Callable Debt Securities
In March 2017, the FASB issued guidance on the amortization period for purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. Under current guidance, premiums generally are amortized over the contracted life of the security. This guidance is effective for us in the first quarter of 2019 on a modified retrospective basis through a cumulative effect adjustment to beginning retained earnings. Early adoption is permitted. Securities held at a discount do not require an accounting change. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations.

Refer to the 2016 Form 10-K for information on other accounting guidance not yet adopted.
Acquisitions Acquisitions (Tables)
Results of Operations From Date of Business Combination [Table Text Block] 
The following table summarizes the results of the acquired Chubb Corp operations within our 2016 Consolidated statements of operations for the periods presented:
(in millions of U.S. dollars)
Three Months Ended June 30, 2016

 
January 14, 2016 to June 30, 2016

Total revenues
$
2,745

 
$
5,232

Net income
$
326

 
$
581

Pro Forma Financial Information for the Chubb Corp Acquisition [Table Text Block] 
The following table provides supplemental unaudited pro forma consolidated information for the three and six months ended June 30, 2016, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
Three Months Ended
 
 
Six Months Ended

(in millions of U.S. dollars, except per share data)
June 30, 2016

 
June 30, 2016

Total revenues
$
7,915

 
$
15,237

Net income
$
712

 
$
1,246

Earnings per share
 
 
 
Basic earnings per share
$
1.52

 
$
2.67

Diluted earnings per share
$
1.51

 
$
2.65

Investments (Tables)
Schedule Of Amortized Cost And Fair Value Of HTM Fixed Maturities And Related OTTI Recognized In AOCI 
June 30, 2017
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
3,122

 
$
40

 
$
(26
)
 
$
3,136

 
$
—

Foreign
21,139

 
653

 
(82
)
 
21,710

 
(2
)
Corporate securities
24,744

 
714

 
(94
)
 
25,364

 
(7
)
Mortgage-backed securities
14,469

 
148

 
(144
)
 
14,473

 
(1
)
States, municipalities, and political subdivisions
16,889

 
138

 
(65
)
 
16,962

 
—

 
$
80,363

 
$
1,693

 
$
(411
)
 
$
81,645

 
$
(10
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
602

 
$
13

 
$
(2
)
 
$
613

 
$
—

Foreign
613

 
29

 
—

 
642

 
—

Corporate securities
2,645

 
62

 
(7
)
 
2,700

 
—

Mortgage-backed securities
1,268

 
37

 
(1
)
 
1,304

 
—

States, municipalities, and political subdivisions
5,243

 
66

 
(8
)
 
5,301

 
—

 
$
10,371

 
$
207

 
$
(18
)
 
$
10,560

 
$
—


December 31, 2016
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,883

 
$
32

 
$
(45
)
 
$
2,870

 
$
—

Foreign
20,929

 
636

 
(125
)
 
21,440

 
(5
)
Corporate securities
23,736

 
580

 
(167
)
 
24,149

 
(8
)
Mortgage-backed securities
14,066

 
135

 
(194
)
 
14,007

 
(1
)
States, municipalities, and political subdivisions
17,922

 
72

 
(345
)
 
17,649

 
—

 
$
79,536

 
$
1,455

 
$
(876
)
 
$
80,115

 
$
(14
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
655

 
$
9

 
$
(3
)
 
$
661

 
$
—

Foreign
640

 
28

 
(1
)
 
667

 
—

Corporate securities
2,771

 
50

 
(26
)
 
2,795

 
—

Mortgage-backed securities
1,393

 
35

 
—

 
1,428

 
—

States, municipalities, and political subdivisions
5,185

 
26

 
(92
)
 
5,119

 
—

 
$
10,644

 
$
148

 
$
(122
)
 
$
10,670

 
$
—

Schedule Of Fixed Maturities By Contractual Maturity 
The following table presents fixed maturities by contractual maturity:
 
 
 
June 30

 
 
 
December 31

 
 
 
2017

 
 
 
2016

(in millions of U.S. dollars)
Amortized Cost

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
3,799

 
$
3,823

 
$
3,892

 
$
3,913

Due after 1 year through 5 years
23,748

 
24,207

 
24,027

 
24,429

Due after 5 years through 10 years
28,040

 
28,498

 
27,262

 
27,379

Due after 10 years
10,307

 
10,644

 
10,289

 
10,387

 
65,894

 
67,172

 
65,470

 
66,108

Mortgage-backed securities
14,469

 
14,473

 
14,066

 
14,007

 
$
80,363

 
$
81,645

 
$
79,536

 
$
80,115

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
807

 
$
814

 
$
430

 
$
435

Due after 1 year through 5 years
2,353

 
2,396

 
2,646

 
2,691

Due after 5 years through 10 years
3,001

 
3,045

 
2,969

 
2,944

Due after 10 years
2,942

 
3,001

 
3,206

 
3,172

 
9,103

 
9,256

 
9,251

 
9,242

Mortgage-backed securities
1,268

 
1,304

 
1,393

 
1,428

 
$
10,371

 
$
10,560

 
$
10,644

 
$
10,670

Schedule Of Amortized Cost and Fair Value of Available-for-sale Securities and Related OTTI Recognized in AOCI 
 
June 30, 2017
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
3,122

 
$
40

 
$
(26
)
 
$
3,136

 
$
—

Foreign
21,139

 
653

 
(82
)
 
21,710

 
(2
)
Corporate securities
24,744

 
714

 
(94
)
 
25,364

 
(7
)
Mortgage-backed securities
14,469

 
148

 
(144
)
 
14,473

 
(1
)
States, municipalities, and political subdivisions
16,889

 
138

 
(65
)
 
16,962

 
—

 
$
80,363

 
$
1,693

 
$
(411
)
 
$
81,645

 
$
(10
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
602

 
$
13

 
$
(2
)
 
$
613

 
$
—

Foreign
613

 
29

 
—

 
642

 
—

Corporate securities
2,645

 
62

 
(7
)
 
2,700

 
—

Mortgage-backed securities
1,268

 
37

 
(1
)
 
1,304

 
—

States, municipalities, and political subdivisions
5,243

 
66

 
(8
)
 
5,301

 
—

 
$
10,371

 
$
207

 
$
(18
)
 
$
10,560

 
$
—


December 31, 2016
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,883

 
$
32

 
$
(45
)
 
$
2,870

 
$
—

Foreign
20,929

 
636

 
(125
)
 
21,440

 
(5
)
Corporate securities
23,736

 
580

 
(167
)
 
24,149

 
(8
)
Mortgage-backed securities
14,066

 
135

 
(194
)
 
14,007

 
(1
)
States, municipalities, and political subdivisions
17,922

 
72

 
(345
)
 
17,649

 
—

 
$
79,536

 
$
1,455

 
$
(876
)
 
$
80,115

 
$
(14
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
655

 
$
9

 
$
(3
)
 
$
661

 
$
—

Foreign
640

 
28

 
(1
)
 
667

 
—

Corporate securities
2,771

 
50

 
(26
)
 
2,795

 
—

Mortgage-backed securities
1,393

 
35

 
—

 
1,428

 
—

States, municipalities, and political subdivisions
5,185

 
26

 
(92
)
 
5,119

 
—

 
$
10,644

 
$
148

 
$
(122
)
 
$
10,670

 
$
—


June 30


December 31

(in millions of U.S. dollars)
2017


2016

Cost
$
697

 
$
706

Gross unrealized appreciation
164

 
129

Gross unrealized depreciation
(5
)
 
(21
)
Fair value
$
856

 
$
814

Schedule of Realized Gain (Loss) 
The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary”:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars)
2017

 
2016

 
2017

 
2016

Fixed maturities:
 
 
 
 
 
 
 
OTTI on fixed maturities, gross
$
(5
)
 
$
(11
)
 
$
(11
)
 
$
(78
)
OTTI on fixed maturities recognized in OCI (pre-tax)
1

 
—

 
1

 
8

OTTI on fixed maturities, net
(4
)
 
(11
)
 
(10
)
 
(70
)
Gross realized gains excluding OTTI
45

 
37

 
79

 
102

Gross realized losses excluding OTTI
(18
)
 
(19
)
 
(58
)
 
(215
)
Total fixed maturities
23

 
7

 
11

 
(183
)
Equity securities:
 
 
 
 
 
 
 
OTTI on equity securities
(3
)
 
(5
)
 
(8
)
 
(6
)
Gross realized gains excluding OTTI
6

 
4

 
15

 
44

Gross realized losses excluding OTTI
(1
)
 
(4
)
 
(1
)
 
(5
)
Total equity securities
2

 
(5
)
 
6

 
33

OTTI on other investments
(1
)
 
—

 
(9
)
 
(3
)
Foreign exchange gains (losses)
14

 
(22
)
 
(5
)
 
17

Investment and embedded derivative instruments
(16
)
 
(47
)
 
(10
)
 
(86
)
Fair value adjustments on insurance derivative
118

 
(131
)
 
211

 
(359
)
S&P put options and futures
(38
)
 
(28
)
 
(112
)
 
(43
)
Other derivative instruments
(1
)
 
—

 
1

 
(2
)
Other
—

 
10

 
1

 
16

Net realized gains (losses)
$
101

 
$
(216
)
 
$
94

 
$
(610
)
Schedule Of Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which A Portion Of OTTI Was Recognized In OCI 
The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI: 
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars)
2017

 
2016

 
2017

 
2016

Balance of credit losses related to securities still held – beginning of period
$
32

 
$
57

 
$
35

 
$
53

Additions where no OTTI was previously recorded
1

 
1

 
1

 
12

Additions where an OTTI was previously recorded
—

 
6

 
1

 
12

Reductions for securities sold during the period
(4
)
 
(13
)
 
(8
)
 
(26
)
Balance of credit losses related to securities still held – end of period
$
29

 
$
51

 
$
29

 
$
51

Schedule Of Aggregate Fair Value And Gross Unrealized Loss By Length Of Time The Security Has Continuously Been In An Unrealized Loss Position 
The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
June 30, 2017
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
2,021

 
$
(28
)
 
$
—

 
$
—

 
$
2,021

 
$
(28
)
Foreign
4,381

 
(57
)
 
599

 
(25
)
 
4,980

 
(82
)
Corporate securities
4,410

 
(72
)
 
372

 
(29
)
 
4,782

 
(101
)
Mortgage-backed securities
7,657

 
(141
)
 
118

 
(4
)
 
7,775

 
(145
)
States, municipalities, and political subdivisions
9,049

 
(68
)
 
182

 
(5
)
 
9,231

 
(73
)
Total fixed maturities
27,518

 
(366
)
 
1,271

 
(63
)
 
28,789

 
(429
)
Equity securities
104

 
(5
)
 
—

 
—

 
104

 
(5
)
Other investments
70

 
(4
)
 
—

 
—

 
70

 
(4
)
Total
$
27,692

 
$
(375
)
 
$
1,271

 
$
(63
)
 
$
28,963

 
$
(438
)
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2016
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
2,216

 
$
(48
)
 
$
—

 
$
—

 
$
2,216

 
$
(48
)
Foreign
5,918

 
(99
)
 
386

 
(27
)
 
6,304

 
(126
)
Corporate securities
7,021

 
(149
)
 
641

 
(44
)
 
7,662

 
(193
)
Mortgage-backed securities
8,638

 
(189
)
 
234

 
(5
)
 
8,872

 
(194
)
States, municipalities, and political subdivisions
19,448

 
(435
)
 
49

 
(2
)
 
19,497

 
(437
)
Total fixed maturities
43,241

 
(920
)
 
1,310

 
(78
)
 
44,551

 
(998
)
Equity securities
199

 
(21
)
 
—

 
—

 
199

 
(21
)
Other investments
201

 
(18
)
 
—

 
—

 
201

 
(18
)
Total
$
43,641

 
$
(959
)
 
$
1,310

 
$
(78
)
 
$
44,951

 
$
(1,037
)
Schedule Of Components Of Restricted Assets 
The following table presents the components of restricted assets:
 
June 30

 
December 31

(in millions of U.S. dollars)
2017

 
2016

Trust funds
$
14,938

 
$
13,880

Deposits with U.S. regulatory authorities
2,325

 
2,203

Deposits with non-U.S. regulatory authorities
2,170

 
2,191

Assets pledged under repurchase agreements
1,472

 
1,461

Other pledged assets
371

 
435

 
$
21,276

 
$
20,170

Fair value measurements (Tables)
Financial Instruments Measured At Fair Value On A Recurring Basis 
Financial instruments measured at fair value on a recurring basis, by valuation hierarchy
June 30, 2017
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,486

 
$
650

 
$
—

 
$
3,136

Foreign
—

 
21,625

 
85

 
21,710

Corporate securities
—

 
24,617

 
747

 
25,364

Mortgage-backed securities
—

 
14,428

 
45

 
14,473

States, municipalities, and political subdivisions
—

 
16,962

 
—

 
16,962

 
2,486

 
78,282

 
877

 
81,645

Equity securities
817

 
—

 
39

 
856

Short-term investments
1,421

 
1,223

 
7

 
2,651

Other investments (1)
430

 
282

 
243

 
955

Securities lending collateral
—

 
1,545

 
—

 
1,545

Investment derivative instruments
12

 
—

 
—

 
12

Other derivative instruments
9

 
—

 
—

 
9

Separate account assets
2,147

 
101

 
—

 
2,248

Total assets measured at fair value (1)
$
7,322

 
$
81,433

 
$
1,166

 
$
89,921

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
35

 
$
—

 
$
—

 
$
35

Other derivative instruments
—

 
—

 
2

 
2

GLB (2)
—

 
—

 
357

 
357

Total liabilities measured at fair value
$
35

 
$
—

 
$
359

 
$
394

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,711 million and other investments of $19 million at June 30, 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.
 
December 31, 2016
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,175

 
$
695

 
$
—

 
$
2,870

Foreign
—

 
21,366

 
74

 
21,440

Corporate securities
—

 
23,468

 
681

 
24,149

Mortgage-backed securities
—

 
13,962

 
45

 
14,007

States, municipalities, and political subdivisions
—

 
17,649

 
—

 
17,649

 
2,175

 
77,140

 
800

 
80,115

Equity securities
773

 
—

 
41

 
814

Short-term investments
1,757

 
1,220

 
25

 
3,002

Other investments (1)
384

 
259

 
225

 
868

Securities lending collateral
—

 
1,092

 
—

 
1,092

Investment derivative instruments
31

 
—

 
—

 
31

Other derivative instruments
3

 
—

 
—

 
3

Separate account assets
1,784

 
95

 
—

 
1,879

Total assets measured at fair value (1)
$
6,907

 
$
79,806

 
$
1,091

 
$
87,804

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
54

 
$
—

 
$
—

 
$
54

Other derivative instruments
—

 
—

 
13

 
13

GLB (2)
—

 
—

 
559

 
559

Total liabilities measured at fair value
$
54

 
$
—

 
$
572

 
$
626


(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,626 million and other investments of $25 million at December 31, 2016 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets.
Fair Value And Maximum Future Funding Commitments Related To Investments 
The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:
 
 
 
 
 
June 30

 
 
 
December 31

 
Expected
Liquidation
Period of Underlying Assets
 
 
 
2017

 
 
 
2016

(in millions of U.S. dollars)
Fair
Value

 
Maximum
Future Funding
Commitments

 
Fair
Value

 
Maximum
Future Funding
Commitments

Financial
5 to 9 Years
 
$
576

 
$
354

 
$
548

 
$
428

Real Assets
3 to 7 Years
 
622

 
181

 
536

 
230

Distressed
5 to 9 Years
 
350

 
175

 
485

 
179

Private Credit
3 to 7 Years
 
238

 
337

 
236

 
259

Traditional
3 to 9 Years
 
1,646

 
805

 
1,550

 
930

Vintage
1 to 2 Years
 
19

 
—

 
21

 
14

Investment funds
Not Applicable
 
260

 
—

 
251

 
—

 
 
 
$
3,711

 
$
1,852

 
$
3,627

 
$
2,040

Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations 
The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
(in millions of U.S. dollars, except for percentages)
Fair Value
 
 
Valuation
Technique
 
Significant
Unobservable Inputs
 
Ranges
June 30, 2017

 
December 31, 2016

 
 
 
GLB (1)
$
357

 
$
559

 
Actuarial model
 
Lapse rate
 
3% – 34%
 
 
 
 
 
 
 
Annuitization rate
 
0% – 78%
(1) 
Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] 
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(1)

June 30, 2017
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
80

 
$
737

 
$
45

 
$
41

$
21

$
233

 
$
11

$
466

Transfers into Level 3
—

 
28

 
—

 
—

—

—

 
—

9

Transfers out of Level 3
—

 
(13
)
 
—

 
—

—

—

 
(9
)
—

Change in Net Unrealized Gains (Losses) included in OCI
3

 
—

 
—

 
1

—

(1
)
 
—

—

Net Realized Gains/Losses
2

 
—

 
—

 
—

—

—

 
—

(118
)
Purchases
19

 
65

 
—

 
6

7

16

 
—

—

Sales
(19
)
 
(28
)
 
—

 
(9
)
—

—

 
—

—

Settlements
—

 
(42
)
 
—

 
—

(21
)
(5
)
 
—

—

Balance – end of period
$
85

 
$
747

 
$
45

 
$
39

$
7

$
243

 
$
2

$
357

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
—

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
—

$
(118
)
(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 $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million, respectively.

  
 
 
 
Liabilities

Three Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other derivative instruments

GLB(1)

June 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
62

 
$
261

 
$
48

 
$
29

$
—

$
211

 
$
10

$
839

Transfers into Level 3
3

 
2

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
3

 
9

 
—

 
(1
)
—

—

 
—

—

Net Realized Gains/Losses
(1
)
 
(2
)
 
—

 
1

—

—

 
—

132

Purchases
27

 
31

 
1

 
10

50

8

 
—

—

Sales
(7
)
 
(16
)
 
—

 
(2
)
—

—

 
—

—

Settlements
—

 
(4
)
 
—

 
—

—

(3
)
 
—

—

Balance – end of period
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(1
)
 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
—

$
132

(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 $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively.

 
Assets
 
 
Liabilities
 
Six Months Ended
Available-for-Sale Debt Securities
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

June 30, 2017
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
74

 
$
681

 
$
45

 
$
41

$
25

$
225

 
$
13

$
559

Transfers into Level 3
—

 
57

 
—

 
—

—

—

 
—

9

Transfers out of Level 3
—

 
(67
)
 
—

 
—

—

—

 
(9
)
—

Change in Net Unrealized Gains (Losses) included in OCI
2

 
(8
)
 
—

 
1

—

3

 
—

—

Net Realized Gains/Losses
1

 
(1
)
 
—

 
—

—

—

 
(2
)
(211
)
Purchases
33

 
221

 
1

 
6

14

24

 
—

—

Sales
(22
)
 
(55
)
 
(1
)
 
(9
)
—

—

 
—

—

Settlements
(3
)
 
(81
)
 
—

 
—

(32
)
(9
)
 
—

—

Balance – end of period
$
85

 
$
747

 
$
45

 
$
39

$
7

$
243

 
$
2

$
357

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
—

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
(2
)
$
(211
)
(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 $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively.

  
Assets
 
 
 
 
Liabilities

Six Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

 
Short-term investments

 
Other
investments

 
Other derivative instruments

 
GLB(1)

June 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance – beginning of period
$
57

 
$
174

 
$
53

 
$
16

 
$
—

 
$
212

 
$
6

 
$
609

Transfers into Level 3
9

 
18

 
—

 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
(2
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
9

 
11

 
—

 
(1
)
 
—

 
—

 
—

 
—

Net Realized Gains/Losses
(6
)
 
(8
)
 
—

 
1

 
—

 
—

 
2

 
362

Purchases (2)
32

 
124

 
1

 
23

 
50

 
14

 
2

 
—

Sales
(8
)
 
(30
)
 
(5
)
 
(2
)
 
—

 
—

 
—

 
—

Settlements
(4
)
 
(8
)
 
—

 
—

 
—

 
(10
)
 
—

 
—

Balance – end of period
$
87

 
$
281

 
$
49

 
$
37

 
$
50

 
$
216

 
$
10

 
$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(5
)
 
$
(7
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
2

 
$
362

(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 $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] 
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(1)

June 30, 2017
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
80

 
$
737

 
$
45

 
$
41

$
21

$
233

 
$
11

$
466

Transfers into Level 3
—

 
28

 
—

 
—

—

—

 
—

9

Transfers out of Level 3
—

 
(13
)
 
—

 
—

—

—

 
(9
)
—

Change in Net Unrealized Gains (Losses) included in OCI
3

 
—

 
—

 
1

—

(1
)
 
—

—

Net Realized Gains/Losses
2

 
—

 
—

 
—

—

—

 
—

(118
)
Purchases
19

 
65

 
—

 
6

7

16

 
—

—

Sales
(19
)
 
(28
)
 
—

 
(9
)
—

—

 
—

—

Settlements
—

 
(42
)
 
—

 
—

(21
)
(5
)
 
—

—

Balance – end of period
$
85

 
$
747

 
$
45

 
$
39

$
7

$
243

 
$
2

$
357

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
—

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
—

$
(118
)
(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 $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million, respectively.

  
 
 
 
Liabilities

Three Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other derivative instruments

GLB(1)

June 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
62

 
$
261

 
$
48

 
$
29

$
—

$
211

 
$
10

$
839

Transfers into Level 3
3

 
2

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
3

 
9

 
—

 
(1
)
—

—

 
—

—

Net Realized Gains/Losses
(1
)
 
(2
)
 
—

 
1

—

—

 
—

132

Purchases
27

 
31

 
1

 
10

50

8

 
—

—

Sales
(7
)
 
(16
)
 
—

 
(2
)
—

—

 
—

—

Settlements
—

 
(4
)
 
—

 
—

—

(3
)
 
—

—

Balance – end of period
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(1
)
 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
—

$
132

(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 $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively.

 
Assets
 
 
Liabilities
 
Six Months Ended
Available-for-Sale Debt Securities
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

June 30, 2017
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance – beginning of period
$
74

 
$
681

 
$
45

 
$
41

$
25

$
225

 
$
13

$
559

Transfers into Level 3
—

 
57

 
—

 
—

—

—

 
—

9

Transfers out of Level 3
—

 
(67
)
 
—

 
—

—

—

 
(9
)
—

Change in Net Unrealized Gains (Losses) included in OCI
2

 
(8
)
 
—

 
1

—

3

 
—

—

Net Realized Gains/Losses
1

 
(1
)
 
—

 
—

—

—

 
(2
)
(211
)
Purchases
33

 
221

 
1

 
6

14

24

 
—

—

Sales
(22
)
 
(55
)
 
(1
)
 
(9
)
—

—

 
—

—

Settlements
(3
)
 
(81
)
 
—

 
—

(32
)
(9
)
 
—

—

Balance – end of period
$
85

 
$
747

 
$
45

 
$
39

$
7

$
243

 
$
2

$
357

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
—

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
(2
)
$
(211
)
(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 $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively.

  
Assets
 
 
 
 
Liabilities

Six Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

 
Short-term investments

 
Other
investments

 
Other derivative instruments

 
GLB(1)

June 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance – beginning of period
$
57

 
$
174

 
$
53

 
$
16

 
$
—

 
$
212

 
$
6

 
$
609

Transfers into Level 3
9

 
18

 
—

 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
(2
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
9

 
11

 
—

 
(1
)
 
—

 
—

 
—

 
—

Net Realized Gains/Losses
(6
)
 
(8
)
 
—

 
1

 
—

 
—

 
2

 
362

Purchases (2)
32

 
124

 
1

 
23

 
50

 
14

 
2

 
—

Sales
(8
)
 
(30
)
 
(5
)
 
(2
)
 
—

 
—

 
—

 
—

Settlements
(4
)
 
(8
)
 
—

 
—

 
—

 
(10
)
 
—

 
—

Balance – end of period
$
87

 
$
281

 
$
49

 
$
37

 
$
50

 
$
216

 
$
10

 
$
971

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(5
)
 
$
(7
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
2

 
$
362

(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 $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value 
The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
June 30, 2017
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
528

 
$
85

 
$
—

 
$
613

 
$
602

Foreign
—

 
642

 
—

 
642

 
613

Corporate securities
—

 
2,688

 
12

 
2,700

 
2,645

Mortgage-backed securities
—

 
1,304

 
—

 
1,304

 
1,268

States, municipalities, and political subdivisions
—

 
5,301

 
—

 
5,301

 
5,243

Total assets
$
528

 
$
10,020

 
$
12

 
$
10,560

 
$
10,371

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,408

 
$
—

 
$
1,408

 
$
1,408

Short-term debt
—

 
931

 
—

 
931

 
922

Long-term debt
—

 
12,366

 
—

 
12,366

 
11,667

Trust preferred securities
—

 
462

 
—

 
462

 
308

Total liabilities
$
—

 
$
15,167

 
$
—

 
$
15,167

 
$
14,305

December 31, 2016
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
555

 
$
106

 
$
—

 
$
661

 
$
655

Foreign
—

 
667

 
—

 
667

 
640

Corporate securities
—

 
2,782

 
13

 
2,795

 
2,771

Mortgage-backed securities
—

 
1,428

 
—

 
1,428

 
1,393

States, municipalities, and political subdivisions
—

 
5,119

 
—

 
5,119

 
5,185

Total assets
$
555


$
10,102


$
13


$
10,670


$
10,644

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,403

 
$
—

 
$
1,403

 
$
1,403

Short-term debt
—

 
503

 
—

 
503

 
500

Long-term debt
—

 
12,998

 
—

 
12,998

 
12,610

Trust preferred securities
—

 
456

 
—

 
456

 
308

Total liabilities
$
—

 
$
15,360

 
$
—

 
$
15,360

 
$
14,821

Unpaid losses and loss expenses Unpaid losses and loss expenses (Tables)
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]
The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
 
Six Months Ended June 30
 
(in millions of U.S. dollars)
2017
 
 
2016

Gross unpaid losses and loss expenses – beginning of period
 
$
60,540

 
$
37,303

Reinsurance recoverable on unpaid losses (1)
 
(12,708
)
 
(10,741
)
Net unpaid losses and loss expenses – beginning of period
 
47,832

 
26,562

Acquisition of subsidiaries
 
—

 
21,398

Total
 
47,832

 
47,960

Net losses and loss expenses incurred in respect of losses occurring in:
 
 
 
 
Current year
 
8,396

 
8,529

Prior years (2)
 
(461
)
 
(601
)
Total
 
7,935

 
7,928

Net losses and loss expenses paid in respect of losses occurring in:
 
 
 
 
Current year
 
2,271

 
1,964

Prior years
 
5,758

 
5,541

Total
 
8,029

 
7,505

Foreign currency revaluation and other
 
171

 
40

Net unpaid losses and loss expenses – end of period
 
47,909

 
48,423

Reinsurance recoverable on unpaid losses (1)
 
12,485

 
12,396

Gross unpaid losses and loss expenses – end of period
 
$
60,394

 
$
60,819

(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 of $60 million and $53 million for the six months ended June 30, 2017 and 2016, respectively.
Commitments, contingencies, and guarantees (Tables)
Balance Sheet Locations, Fair Values In An Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments 
The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments:
 
 
 
 
 
June 30, 2017
 
 
 
 
December 31, 2016
 
 
Consolidated
Balance Sheet
Location
 
Fair Value
 
 
Notional
Value/
Payment
Provision

 
Fair Value
 
 
Notional
Value/
Payment
Provision

(in millions of U.S. dollars)
 
Derivative Asset

 
Derivative (Liability)

 
 
Derivative Asset

 
Derivative (Liability)

 
Investment and embedded derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
OA / (AP)
 
$
8

 
$
(30
)
 
$
2,201

 
$
25

 
$
(50
)
 
$
2,220

Cross-currency swaps
OA / (AP)
 
—

 
—

 
45

 
—

 
—

 
95

Options/Futures contracts on notes and bonds
OA / (AP)
 
4

 
(5
)
 
1,376

 
6

 
(4
)
 
2,344

Convertible securities (1)
FM AFS / ES
 
2

 
—

 
7

 
2

 
—

 
7

 
 
 
$
14

 
$
(35
)
 
$
3,629

 
$
33

 
$
(54
)
 
$
4,666

Other derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Futures contracts on equities (2)
OA / (AP)
 
$
5

 
$
—

 
$
1,428

 
$
1

 
$
—

 
$
1,316

Other
OA / (AP)
 
4

 
(2
)
 
249

 
2

 
(13
)
 
214

 
 
 
$
9

 
$
(2
)
 
$
1,677

 
$
3

 
$
(13
)
 
$
1,530

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(684
)
 
$
1,180

 
$
—

 
$
(853
)
 
$
1,264


(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.
Transfer of Certain Financial Assets Accounted for as Secured Borrowings 
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
 
 
 
June 30

 
December 31

 
 
2017

 
2016

(in millions of U.S. dollars)
 
Overnight and Continuous
 
Collateral held under securities lending agreements:
 
 
 
 
Cash
 
$
1,062

 
$
423

U.S. Treasury and agency
 
82

 
54

Foreign
 
263

 
578

Corporate securities
 
1

 
37

Mortgage-backed securities
 
60

 
—

Equity securities
 
77

 
—

 
 
$
1,545

 
$
1,092

Gross amount of recognized liability for securities lending payable
 
$
1,546

 
$
1,093

Difference (1)
 
$
(1
)
 
$
(1
)
(1) 
The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable at both June 30, 2017 and December 31, 2016, due to accrued interest recorded in the securities lending payable.

Secured Borrowings Securities Lending Table Text Block [Table Text Block] 
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
 
 
June 30, 2017
 
 
December 31, 2016
 
 
30-90 Days

 
Greater than
90 Days

 
Total

 
Up to
30 Days

 
Greater than
90 Days

 
Total

(in millions of U.S. dollars)
 
 
 
 
Collateral pledged under repurchase agreements:
 
 
 
 
 
 
 
 
 
 
 
Cash
$
—

 
$
—

 
$
—

 
$
—

 
$
1

 
$
1

U.S. Treasury and agency
6

 
240

 
246

 
230

 
10

 
240

Mortgage-backed securities
495

 
731

 
1,226

 
339

 
881

 
1,220

 
$
501

 
$
971

 
$
1,472

 
$
569

 
$
892

 
$
1,461

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
$
1,408

 
 
 
 
 
$
1,403

Difference (1)
 
 
 
 
$
64

 
 
 
 
 
$
58


Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations 
The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
 
Three Months Ended
 
Six Months Ended
 
 
June 30
 
June 30
 
(in millions of U.S. dollars)
2017

 
2016

2017

 
2016

Investment and embedded derivative instruments
 
 
 
 
 
 
Foreign currency forward contracts
$
(7
)
 
$
(10
)
$
7

 
$
(20
)
All other futures contracts and options
(9
)
 
(37
)
(17
)
 
(71
)
Convertible securities (1)
—

 
—

—

 
5

Total investment and embedded derivative instruments
$
(16
)
 
$
(47
)
$
(10
)
 
$
(86
)
GLB and other derivative instruments
 
 
 
 
 
 
GLB (2)
$
118

 
$
(131
)
$
211

 
$
(359
)
Futures contracts on equities (3)
(38
)
 
(28
)
(112
)
 
(43
)
Other
(1
)
 
—

1

 
(2
)
Total GLB and other derivative instruments
$
79

 
$
(159
)
$
100

 
$
(404
)
 
$
63

 
$
(206
)
$
90

 
$
(490
)
(1) 
Includes embedded derivatives.
(2) 
Excludes foreign exchange gains (losses) related to GLB.
(3) 
Related to GMDB and GLB blocks of business.

Shareholders' equity Shareholders' Equity (Tables)
Dividends Declared [Table Text Block] 
The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
 
2017
 
 
2016
 
 
2017
 
 
2016
 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

Total dividend distributions per common share
0.69

 
$
0.71

 
0.68

 
$
0.69

 
1.38

 
$
1.40

 
1.34

 
$
1.36

Share Repurchase Program [Table Text Block] 
Repurchases of Chubb's Common Shares conducted in a series of open market transactions from January 1, 2017 through August 2, 2017 under the Board authorization are as follows:
(in millions of U.S. dollars, except share data)
Three Months Ended
June 30, 2017

 
Six Months Ended
June 30, 2017

 
July 1, 2017
through
August 2, 2017

 
 
Number of shares repurchased
2,381,566

 
3,417,630

 
501,872

Cost of shares repurchased
$
335

 
$
475

 
$
72

Repurchase authorization remaining at end of period
$
525

 
$
525

 
$
453

Postretirement benefits (Tables)
Schedule of Net Benefit Costs [Table Text Block]

The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows:
 
Three Months Ended June 30
 
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

(in millions of U.S. dollars)
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
16

 
$
4

 
$
20

 
$
1

 
$
1

 
$
2

Interest cost
26

 
7

 
33

 
—

 
—

 
—

Expected return on plan assets
(48
)
 
(10
)
 
(58
)
 
(1
)
 
—

 
(1
)
Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
(23
)
 
—

 
(23
)
Curtailments
—

 
(8
)
 
(8
)
 
—

 
—

 
—

Net periodic (benefit) cost
$
(6
)
 
$
(6
)
 
$
(12
)
 
$
(23
)
 
$
1

 
$
(22
)
2016
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
20

 
$
4

 
$
24

 
$
2

 
$
1

 
$
3

Interest cost
27

 
8

 
35

 
4

 
—

 
4

Expected return on plan assets
(42
)
 
(10
)
 
(52
)
 
(2
)
 
—

 
(2
)
Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

Net periodic cost
$
5

 
$
3

 
$
8

 
$
4

 
$
1

 
$
5


 
Six Months Ended June 30
 
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

(in millions of U.S. dollars)
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
32

 
$
8

 
$
40

 
$
1

 
$
1

 
$
2

Interest cost
52

 
14

 
66

 
1

 
—

 
1

Expected return on plan assets
(95
)
 
(20
)
 
(115
)
 
(2
)
 
—

 
(2
)
Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
(46
)
 
—

 
(46
)
Curtailments
—

 
(8
)
 
(8
)
 
—

 
—

 
—

Net periodic (benefit) cost
$
(11
)
 
$
(5
)
 
$
(16
)
 
$
(46
)
 
$
1

 
$
(45
)
2016
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
37

 
$
9

 
$
46

 
$
4

 
$
1

 
$
5

Interest cost
54

 
16

 
70

 
9

 
—

 
9

Expected return on plan assets
(79
)
 
(20
)
 
(99
)
 
(4
)
 
—

 
(4
)
Amortization of net actuarial loss
—

 
2

 
2

 
—

 
—

 
—

Net periodic cost
$
12

 
$
7

 
$
19

 
$
9

 
$
1

 
$
10

Segment information (Tables)
Operations By Segment
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
 
 
 
 
 
 
June 30, 2017
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
3,204

 
$
1,255

 
$
403

 
$
2,006

 
$
190

 
$
523

 
$
—

 
$
7,581

Net premiums earned
3,099

 
1,093

 
344

 
2,018

 
168

 
515

 
—

 
7,237

Losses and loss expenses
1,936

 
683

 
290

 
964

 
46

 
182

 
45

 
4,146

Policy benefits
—

 
—

 
—

 
—

 
—

 
163

 
—

 
163

Policy acquisition costs
464

 
230

 
27

 
555

 
43

 
130

 
—

 
1,449

Administrative expenses
241

 
66

 
2

 
243

 
12

 
77

 
65

 
706

Underwriting income (loss)
458

 
114

 
25

 
256

 
67

 
(37
)
 
(110
)
 
773

Net investment income (loss)
490

 
56

 
6

 
148

 
65

 
77

 
(72
)
 
770

Other (income) expense
(4
)
 
1

 
1

 
(3
)
 
1

 
(12
)
 
(129
)
 
(145
)
Amortization expense of purchased intangibles
—

 
5

 
7

 
11

 
—

 
—

 
42

 
65

Segment income (loss)
$
952


$
164


$
23


$
396


$
131


$
52


$
(95
)

$
1,623

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
101

 
101

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
147

 
147

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
72

 
72

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
200

 
200

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(413
)
 
$
1,305

 
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
 
 
 
 
 
June 30, 2016
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
3,245

 
$
1,231

 
$
375

 
$
2,031

 
$
230

 
$
527

 
$
—

 
$
7,639

Net premiums earned
3,148

 
1,140

 
327

 
2,093

 
185

 
512

 
—

 
7,405

Losses and loss expenses
1,971

 
661

 
284

 
1,089

 
87

 
147

 
15

 
4,254

Policy benefits
—

 
—

 
—

 
—

 
—

 
146

 
—

 
146

Policy acquisition costs
545

 
269

 
25

 
537

 
47

 
137

 
—

 
1,560

Administrative expenses
299

 
98

 
2

 
277

 
14

 
77

 
62

 
829

Underwriting income (loss)
333

 
112

 
16

 
190

 
37

 
5

 
(77
)
 
616

Net investment income (loss)
468

 
55

 
5

 
147

 
65

 
69

 
(101
)
 
708

Other (income) expense
(9
)
 
3

 
—

 
(5
)
 
(2
)
 
—

 
(16
)
 
(29
)
Amortization expense (benefit) of purchased intangibles
—

 
4

 
8

 
13

 
—

 
—

 
(20
)
 
5

Segment income (loss)
$
810

 
$
160

 
$
13

 
$
329

 
$
104

 
$
74

 
$
(142
)
 
$
1,348

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(216
)
 
(216
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
153

 
153

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
98

 
98

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
155

 
155

Net income (loss)


 
 
 
 
 
 
 
 
 
 
 
$
(764
)
 
$
726



 
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 Six Months Ended
 
 
 
 
 
June 30, 2017
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
5,946

 
$
2,239

 
$
464

 
$
4,206

 
$
389

 
$
1,047

 
$
—

 
$
14,291

Net premiums earned
6,140

 
2,179

 
358

 
3,954

 
357

 
1,021

 
—

 
14,009

Losses and loss expenses
3,796

 
1,316

 
217

 
2,035

 
140

 
375

 
56

 
7,935

Policy benefits
—

 
—

 
—

 
—

 
—

 
331

 
—

 
331

Policy acquisition costs
951

 
447

 
26

 
1,084

 
94

 
244

 
—

 
2,846

Administrative expenses
472

 
131

 
(3
)
 
488

 
22

 
149

 
123

 
1,382

Underwriting income (loss)
921

 
285

 
118

 
347

 
101

 
(78
)
 
(179
)
 
1,515

Net investment income (loss)
968

 
111

 
12

 
296

 
127

 
152

 
(151
)
 
1,515

Other (income) expense
—

 
2

 
1

 
(4
)
 
1

 
(41
)
 
(174
)
 
(215
)
Amortization expense of purchased intangibles
—

 
8

 
14

 
22

 
—

 
1

 
84

 
129

Segment income (loss)
$
1,889

 
$
386

 
$
115

 
$
625

 
$
227

 
$
114

 
$
(240
)
 
$
3,116

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
94

 
94

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
301

 
301

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
183

 
183

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
328

 
328

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(958
)
 
$
2,398

 
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 Six Months Ended
 
 
 
 
 
June 30, 2016
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
5,547

 
$
2,102

 
$
439

 
$
4,072

 
$
431

 
$
1,043

 
$
—

 
$
13,634

Net premiums earned
6,044

 
2,164

 
350

 
4,048

 
387

 
1,009

 
—

 
14,002

Losses and loss expenses
3,718

 
1,322

 
254

 
2,110

 
176

 
324

 
24

 
7,928

Policy benefits
—

 
—

 
—

 
—

 
—

 
272

 
—

 
272

Policy acquisition costs
1,027

 
518

 
29

 
1,040

 
100

 
259

 
—

 
2,973

Administrative expenses
565

 
186

 
(2
)
 
540

 
28

 
149

 
135

 
1,601

Underwriting income (loss)
734

 
138

 
69

 
358

 
83

 
5

 
(159
)
 
1,228

Net investment income (loss)
894

 
102

 
10

 
293

 
132

 
136

 
(185
)
 
1,382

Other (income) expense
(9
)
 
4

 
—

 
(10
)
 
(3
)
 
6

 
11

 
(1
)
Amortization expense (benefit) of purchased intangibles
—

 
12

 
15

 
24

 
—

 
1

 
(40
)
 
12

Segment income (loss)
$
1,637

 
$
224

 
$
64

 
$
637

 
$
218

 
$
134

 
$
(315
)
 
$
2,599

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(610
)
 
(610
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
299

 
299

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
246

 
246

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
279

 
279

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 

$
(1,749
)
 
$
1,165

Earnings per share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
(in millions of U.S. dollars, except share and per share data)
2017

 
2016

 
2017

 
2016

Numerator:
 
 
 
 
 
 
 
Net income
$
1,305

 
$
726

 
$
2,398

 
$
1,165

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
 
 
Weighted-average shares outstanding
467,981,077

 
467,701,328

 
468,244,458

 
457,102,802

Denominator for diluted earnings per share:
 
 
 
 
 
 
 
Share-based compensation plans
3,872,860

 
3,455,969

 
3,900,678

 
3,379,559

Weighted-average shares outstanding and assumed conversions
471,853,937

 
471,157,297

 
472,145,136

 
460,482,361

Basic earnings per share
$
2.79

 
$
1.55

 
$
5.12

 
$
2.55

Diluted earnings per share
$
2.77

 
$
1.54

 
$
5.08

 
$
2.53

Potential anti-dilutive share conversions
2,066,578

 
2,103,281

 
1,467,556

 
2,056,018

Information provided in connection with outstanding debt of subsidiaries (Tables)
Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet at June 30, 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
$
23

 
$
305

 
$
99,880

 
$
—

 
$
100,208

Cash (1)
—

 
167

 
1,323

 
(193
)
 
1,297

Insurance and reinsurance balances receivable
—

 
—

 
11,699

 
(2,037
)
 
9,662

Reinsurance recoverable on losses and loss expenses
—

 
—

 
24,118

 
(10,760
)
 
13,358

Reinsurance recoverable on policy benefits
—

 
—

 
1,205

 
(1,007
)
 
198

Value of business acquired
—

 
—

 
337

 
—

 
337

Goodwill and other intangible assets
—

 
—

 
22,013

 
—

 
22,013

Investments in subsidiaries
40,553

 
49,982

 
—

 
(90,535
)
 
—

Due from subsidiaries and affiliates, net
10,251

 
—

 
—

 
(10,251
)
 
—

Other assets
141

 
289

 
19,527

 
(4,042
)
 
15,915

Total assets
$
50,968

 
$
50,743

 
$
180,102

 
$
(118,825
)
 
$
162,988

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,460

 
$
(10,066
)
 
$
60,394

Unearned premiums
—

 
—

 
18,876

 
(3,587
)
 
15,289

Future policy benefits
—

 
—

 
6,197

 
(1,007
)
 
5,190

Due to subsidiaries and affiliates, net
—

 
9,939

 
312

 
(10,251
)
 
—

Affiliated notional cash pooling programs (1)
193

 
—

 
—

 
(193
)
 
—

Repurchase agreements
—

 
—

 
1,408

 
—

 
1,408

Short-term debt
—

 
922

 
—

 
—

 
922

Long-term debt
—

 
11,656

 
11

 
—

 
11,667

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
426

 
1,582

 
18,639

 
(3,186
)
 
17,461

Total liabilities
619

 
24,407

 
115,903

 
(28,290
)
 
112,639

Total shareholders’ equity
50,349

 
26,336

 
64,199

 
(90,535
)
 
50,349

Total liabilities and shareholders’ equity
$
50,968

 
$
50,743

 
$
180,102

 
$
(118,825
)
 
$
162,988


(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 June 30, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
 

Condensed Consolidating Balance Sheet at December 31, 2016

(in millions of U.S. dollars)
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
27

 
$
485

 
$
98,582

 
$
—

 
$
99,094

Cash (1)
1

 
1

 
1,965

 
(982
)
 
985

Insurance and reinsurance balances receivable
—

 
—

 
10,498

 
(1,528
)
 
8,970

Reinsurance recoverable on losses and loss expenses
—

 
—

 
24,496

 
(10,919
)
 
13,577

Reinsurance recoverable on policy benefits
—

 
—

 
1,153

 
(971
)
 
182

Value of business acquired
—

 
—

 
355

 
—

 
355

Goodwill and other intangible assets
—

 
—

 
22,095

 
—

 
22,095

Investments in subsidiaries
38,408

 
49,509

 
—

 
(87,917
)
 
—

Due from subsidiaries and affiliates, net
10,482

 
—

 
—

 
(10,482
)
 
—

Other assets
3

 
436

 
18,442

 
(4,353
)
 
14,528

Total assets
$
48,921

 
$
50,431

 
$
177,586

 
$
(117,152
)
 
$
159,786

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,683

 
$
(10,143
)
 
$
60,540

Unearned premiums
—

 
—

 
18,538

 
(3,759
)
 
14,779

Future policy benefits
—

 
—

 
6,007

 
(971
)
 
5,036

Due to subsidiaries and affiliates, net
—

 
10,209

 
273

 
(10,482
)
 
—

Affiliated notional cash pooling programs (1)
363

 
619

 
—

 
(982
)
 
—

Repurchase agreements
—

 
—

 
1,403

 
—

 
1,403

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,599

 
11

 
—

 
12,610

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
283

 
1,582

 
17,368

 
(2,898
)
 
16,335

Total liabilities
646

 
25,817

 
114,283

 
(29,235
)
 
111,511

Total shareholders’ equity
48,275

 
24,614

 
63,303

 
(87,917
)
 
48,275

Total liabilities and shareholders’ equity
$
48,921

 
$
50,431

 
$
177,586

 
$
(117,152
)
 
$
159,786

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. 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, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Statement Of Operations and Comprehensive Income 
Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended June 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 premiums written
$
—

 
$
—

 
$
7,581

 
$
—

 
$
7,581

Net premiums earned
—

 
—

 
7,237

 
—

 
7,237

Net investment income
2

 
4

 
764

 
—

 
770

Equity in earnings of subsidiaries
1,253

 
665

 
—

 
(1,918
)
 
—

Net realized gains (losses) including OTTI
(2
)
 
(1
)
 
104

 
—

 
101

Losses and loss expenses
—

 
—

 
4,146

 
—

 
4,146

Policy benefits
—

 
—

 
163

 
—

 
163

Policy acquisition costs and administrative expenses
18

 
(2
)
 
2,139

 
—

 
2,155

Interest (income) expense
(84
)
 
212

 
19

 
—

 
147

Other (income) expense
4

 
10

 
(159
)
 
—

 
(145
)
Amortization of purchased intangibles
—

 
—

 
65

 
—

 
65

Chubb integration expenses
6

 
4

 
62

 
—

 
72

Income tax expense (benefit)
4

 
(87
)
 
283

 
—

 
200

Net income
$
1,305

 
$
531

 
$
1,387

 
$
(1,918
)
 
$
1,305

Comprehensive income
$
1,675

 
$
920

 
$
1,756

 
$
(2,676
)
 
$
1,675



Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
7,639

 
$
—

 
$
7,639

Net premiums earned
—

 
—

 
7,405

 
—

 
7,405

Net investment income
1

 
3

 
704

 
—

 
708

Equity in earnings of subsidiaries
664

 
549

 
—

 
(1,213
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(1
)
 
(214
)
 
—

 
(216
)
Losses and loss expenses
—

 
—

 
4,254

 
—

 
4,254

Policy benefits
—

 
—

 
146

 
—

 
146

Policy acquisition costs and administrative expenses
16

 
96

 
2,277

 
—

 
2,389

Interest (income) expense
(93
)
 
233

 
13

 
—

 
153

Other (income) expense
(4
)
 
10

 
(35
)
 
—

 
(29
)
Amortization of purchased intangibles
—

 
—

 
5

 
—

 
5

Chubb integration expenses
14

 
(97
)
 
181

 
—

 
98

Income tax expense (benefit)
5

 
(37
)
 
187

 
—

 
155

Net income
$
726

 
$
346

 
$
867

 
$
(1,213
)
 
$
726

Comprehensive income
$
1,540

 
$
1,004

 
$
1,681

 
$
(2,685
)
 
$
1,540






Condensed Consolidating Statements of Operations and Comprehensive Income
For the Six Months Ended June 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 premiums written
$
—

 
$
—

 
$
14,291

 
$
—

 
$
14,291

Net premiums earned
—

 
—

 
14,009

 
—

 
14,009

Net investment income
2

 
7

 
1,506

 
—

 
1,515

Equity in earnings of subsidiaries
2,280

 
1,366

 
—

 
(3,646
)
 
—

Net realized gains (losses) including OTTI
(2
)
 
(14
)
 
110

 
—

 
94

Losses and loss expenses
—

 
—

 
7,935

 
—

 
7,935

Policy benefits
—

 
—

 
331

 
—

 
331

Policy acquisition costs and administrative expenses
36

 
12

 
4,180

 
—

 
4,228

Interest (income) expense
(168
)
 
433

 
36

 
—

 
301

Other (income) expense
(2
)
 
25

 
(238
)
 
—

 
(215
)
Amortization of purchased intangibles
—

 
—

 
129

 
—

 
129

Chubb integration expenses
6

 
53

 
124

 
—

 
183

Income tax expense (benefit)
10

 
(199
)
 
517

 
—

 
328

Net income
$
2,398

 
$
1,035

 
$
2,611

 
$
(3,646
)
 
$
2,398

Comprehensive income
$
3,082

 
$
1,711

 
$
3,294

 
$
(5,005
)
 
$
3,082


Condensed Consolidating Statements of Operations and Comprehensive Income
For the Six Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net premiums written
$
—

 
$
—

 
$
13,634

 
$
—

 
$
13,634

Net premiums earned
—

 
—

 
14,002

 
—

 
14,002

Net investment income
2

 
7

 
1,373

 
—

 
1,382

Equity in earnings of subsidiaries
1,039

 
1,055

 
—

 
(2,094
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(1
)
 
(608
)
 
—

 
(610
)
Losses and loss expenses
—

 
—

 
7,928

 
—

 
7,928

Policy benefits
—

 
—

 
272

 
—

 
272

Policy acquisition costs and administrative expenses
33

 
132

 
4,409

 
—

 
4,574

Interest (income) expense
(173
)
 
448

 
24

 
—

 
299

Other (income) expense
(13
)
 
20

 
(8
)
 
—

 
(1
)
Amortization of purchased intangibles
—

 
—

 
12

 
—

 
12

Chubb integration expenses
17

 
40

 
189

 
—

 
246

Income tax expense (benefit)
11

 
(187
)
 
455

 
—

 
279

Net income
$
1,165

 
$
608

 
$
1,486

 
$
(2,094
)
 
$
1,165

Comprehensive income
$
3,081

 
$
2,060

 
$
3,402

 
$
(5,462
)
 
$
3,081


Condensed Consolidating Statement of Cash Flows 
Condensed Consolidating Statement of Cash Flows
Six Months Ended June 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
$
551

 
$
1,444

 
$
1,686

 
$
(2,041
)
 
$
1,640

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturities available for sale
—

 
(5
)
 
(12,255
)
 
—

 
(12,260
)
Purchases of fixed maturities held to maturity
—

 
—

 
(212
)
 
—

 
(212
)
Purchases of equity securities
—

 
—

 
(82
)
 
—

 
(82
)
Sales of fixed maturities available for sale
—

 
—

 
6,873

 
—

 
6,873

Sales of equity securities
—

 
—

 
104

 
—

 
104

Maturities and redemptions of fixed maturities available for sale
—

 
13

 
5,156

 
—

 
5,169

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
408

 
—

 
408

Net change in short-term investments
—

 
166

 
188

 
—

 
354

Net derivative instruments settlements
—

 
(7
)
 
(122
)
 
—

 
(129
)
Other
—

 
2

 
(123
)
 
—

 
(121
)
Net cash flows from (used for) investing activities
—

 
169

 
(65
)
 
—

 
104

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(646
)
 
—

 
—

 
—

 
(646
)
Common Shares repurchased
—

 
—

 
(475
)
 
—

 
(475
)
Repayment of long-term debt
—

 
(500
)
 
—

 
—

 
(500
)
Proceeds from issuance of repurchase agreements
—

 
—

 
1,343

 
—

 
1,343

Repayment of repurchase agreements
—

 
—

 
(1,338
)
 
—

 
(1,338
)
Proceeds from share-based compensation plans
—

 
—

 
89

 
—

 
89

Dividend to parent company
—

 
—

 
(2,041
)
 
2,041

 
—

Advances (to) from affiliates
264

 
(328
)
 
64

 
—

 
—

Net payments to affiliated notional cash pooling programs(1)
(170
)
 
(619
)
 
—

 
789

 
—

Policyholder contract deposits
—

 
—

 
209

 
—

 
209

Policyholder contract withdrawals
—

 
—

 
(125
)
 
—

 
(125
)
Net cash flows used for financing activities
(552
)
 
(1,447
)
 
(2,274
)
 
2,830

 
(1,443
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
11

 
—

 
11

Net increase (decrease) in cash
(1
)
 
166

 
(642
)
 
789

 
312

Cash – beginning of period(1)
1

 
1

 
1,965

 
(982
)
 
985

Cash – end of period(1)
$
—

 
$
167

 
$
1,323

 
$
(193
)
 
$
1,297

(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 June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from operating activities
$
3,213

 
$
4,050

 
$
2,262

 
$
(7,372
)
 
$
2,153

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturities available for sale
—

 
(83
)
 
(16,994
)
 
—

 
(17,077
)
Purchases of fixed maturities held to maturity
—

 
—

 
(121
)
 
—

 
(121
)
Purchases of equity securities
—

 
—

 
(78
)
 
—

 
(78
)
Sales of fixed maturities available for sale
—

 
—

 
11,868

 
—

 
11,868

Sales of equity securities
—

 
—

 
932

 
—

 
932

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
3,910

 
—

 
3,910

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
443

 
—

 
443

Net change in short-term investments
—

 
7,829

 
3,882

 
—

 
11,711

Net derivative instruments settlements
—

 
(10
)
 
(83
)
 
—

 
(93
)
Acquisition of subsidiaries (net of cash acquired of $71)
—

 
(14,282
)
 
34

 
—

 
(14,248
)
Capital contribution
(2,330
)
 
—

 
(2,330
)
 
4,660

 
—

Other
—

 
(3
)
 
84

 
—

 
81

Net cash flows from (used for) investing activities
(2,330
)
 
(6,549
)
 
1,547

 
4,660

 
(2,672
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(530
)
 
—

 
—

 
—

 
(530
)
Proceeds from issuance of repurchase agreements
—

 
—

 
904

 
—

 
904

Repayment of repurchase agreements
—

 
—

 
(902
)
 
—

 
(902
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
92

 
—

 
92

Dividend to parent company
—

 
—

 
(7,372
)
 
7,372

 
—

Advances (to) from affiliates
(247
)
 
221

 
26

 
—

 
—

Capital contribution
—

 
2,330

 
2,330

 
(4,660
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(106
)
 
157

 
—

 
(51
)
 
—

Policyholder contract deposits
—

 
—

 
274

 
—

 
274

Policyholder contract withdrawals
—

 
—

 
(103
)
 
—

 
(103
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows from (used for) financing activities
(883
)
 
2,704

 
(4,751
)
 
2,661

 
(269
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
24

 
—

 
24

Net increase (decrease) in cash
—

 
205

 
(918
)
 
(51
)
 
(764
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
1

 
$
207

 
$
1,825

 
$
(1,022
)
 
$
1,011


(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 June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
General Adoption of New Accounting Pronouncements (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
Income tax expense
$ 200 
$ 155 
$ 328 
$ 279 
Accounting Standards Update 2016-09 [Member]
 
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
Income tax expense
$ 5 
 
$ 30 
 
General Goodwill (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
 
Goodwill, Period Increase (Decrease)
$ 102 
General Schedule of long-term debt (Details) (USD $)
6 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Jun. 30, 2017
Chubb INA Capital Securities Due 2037 [Member]
Jun. 30, 2017
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2037 [Member]
Apr. 14, 2017
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2037 [Member]
Jun. 30, 2017
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2037 [Member]
London Interbank Offered Rate (LIBOR) [Member]
Feb. 28, 2017
Senior Notes [Member]
INA Senior Notes Due February 2017 [Member]
Jun. 30, 2017
Senior Notes [Member]
INA Senior Notes Due March 2018 [Member]
Jun. 30, 2017
Senior Notes [Member]
Chubb INA Senior Notes Due 2018 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
Short-term debt
$ 922,000,000 
$ 500,000,000 
 
 
 
 
$ 500,000,000 
$ 300,000,000 
$ 600,000,000 
Debt Instrument, Face Amount
 
 
$ 1,000,000,000 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
3.55% 
6.375% 
 
5.70% 
5.80% 
5.75% 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
2.25% 
 
 
 
Acquisitions Acquisitions (narrative) (Details) (USD $)
0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Jan. 14, 2016
The Chubb Corporation [Member]
Jun. 30, 2017
Additional Paid-in Capital [Member]
Jun. 30, 2016
Additional Paid-in Capital [Member]
Jan. 14, 2016
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Jun. 30, 2017
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Jun. 30, 2016
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
Purchase price
 
 
$ 29,500,000,000 
 
 
 
 
 
Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp
 
 
14,300,000,000 
 
 
 
 
 
Equity Issued in Business Combination, Fair Value Disclosure
 
 
15,200,000,000 
 
 
 
 
 
Attributed Value Equity Awards Assumed in Acquisition
 
 
 
(275,000,000)
(358,000,000)
323,000,000 
0 
323,000,000 
Business Combination, Consideration Transferred
 
 
29,800,000,000 
 
 
 
 
 
Goodwill
$ 15,434,000,000 
$ 15,332,000,000 
$ 10,500,000,000 
 
 
 
 
 
Supplemental Financial Information for Acquisition (Details) (The Chubb Corporation [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
The Chubb Corporation [Member]
 
 
Business Acquisition [Line Items]
 
 
Actual Revenue of Chubb Corp since Acquisition Date
$ 2,745 
$ 5,232 
Actual Net Income of Chubb Corp since Acquisition Date
326 
581 
Pro Forma Total Revenues
7,915 
15,237 
Pro Forma Net Income
$ 712 
$ 1,246 
Pro Forma Earnings Per Share, Basic
$ 1.52 
$ 2.67 
Pro Forma Earnings Per Share, Diluted
$ 1.51 
$ 2.65 
Investments (Narrative) (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Security
Jun. 30, 2016
Jun. 30, 2017
Security
Jun. 30, 2016
Dec. 31, 2016
Investment [Line Items]
 
 
 
 
 
Net unrealized depreciation included in OCI
$ 3,000,000 
$ 21,000,000 
$ 3,000,000 
$ 44,000,000 
 
Unrealized appreciation(depreciation) portion of AOCI with OTTI included in AOCI
7,000,000 
 
7,000,000 
 
10,000,000 
Percentage of mortgage-backed securities represented by investments in US government agency bonds
81.00% 
 
81.00% 
 
81.00% 
Total number of fixed maturities
30,953 
 
30,953 
 
 
Number of equity securities in an unrealized loss position
67 
 
67 
 
 
Total number of equity securities
320 
 
320 
 
 
Largest single unrealized loss in the equity securities
1,000,000 
 
1,000,000 
 
 
Restricted assets in fixed maturities and short-term investments
21,200,000,000 
 
21,200,000,000 
 
20,100,000,000 
Restricted assets in cash
122,000,000 
 
122,000,000 
 
103,000,000 
Moodys Historical Mean Recovery Rate
 
 
42.00% 
 
 
Company Assumed Recovery Rate
 
 
32.00% 
 
 
Number of fixed maturities in an unrealized loss position
7,924 
 
7,924 
 
 
Largest single unrealized loss in the fixed maturities
5,000,000 
 
5,000,000 
 
 
Corporate [Member]
 
 
 
 
 
Investment [Line Items]
 
 
 
 
 
Credit losses recognized in net income
1,000,000 
7,000,000 
2,000,000 
24,000,000 
 
Collateralized Mortgage Backed Securities [Member]
 
 
 
 
 
Investment [Line Items]
 
 
 
 
 
Credit losses recognized in net income
$ 0 
$ 0 
$ 0 
$ 0 
 
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Available for sale, Due in 1 year or less, Amortized Cost
$ 3,799 
$ 3,892 
Available for sale, Due after 1 year through 5 years, Amortized Cost
23,748 
24,027 
Available for sale, Due after 5 years though 10 years, Amortized Cost
28,040 
27,262 
Available for sale, Due after 10 years, Amortized Cost
10,307 
10,289 
Available for sale, Subtotal, Amortized Cost
65,894 
65,470 
Available for sale, Mortgage-backed securities, Amortized Cost
14,469 
14,066 
Available for sale, at amortized cost
80,363 
79,536 
Available for sale, Due in 1 year or less, Fair Value
3,823 
3,913 
Available for sale, Due after 1 year through 5 years, Fair Value
24,207 
24,429 
Available for sale, Due after 5 years through 10 years, Fair Value
28,498 
27,379 
Available for sale, Due after 10 years, Fair Value
10,644 
10,387 
Available for sale, Subtotal, Fair Value
67,172 
66,108 
Available for sale, Mortgage backed securities, Fair Value
14,473 
14,007 
Available for sale, Fair Value
81,645 
80,115 
Held to maturity, Due in 1 year or less, Amortized Cost
807 
430 
Held to maturity, Due after 1 year through 5 years, Amortized Cost
2,353 
2,646 
Held to maturity, Due after 5 years through 10 years, Amortized Cost
3,001 
2,969 
Held to maturity, Due after 10 years, Amortized Cost
2,942 
3,206 
Held to maturity, Subtotal, Amortized Cost
9,103 
9,251 
Held to maturity, Mortgage backed securities, Amortized Cost
1,268 
1,393 
Held to maturity, Amortized Cost
10,371 
10,644 
Held to maturity, Due in 1 year or less, Fair Value
814 
435 
Held to maturity, Due after 1 year through 5, Fair Value
2,396 
2,691 
Held to maturity, Due after 5 years through 10 years, Fair Value
3,045 
2,944 
Held to maturity, Due after 10 years, Fair Value
3,001 
3,172 
Held to maturity, Subtotal, Fair Value
9,256 
9,242 
Held to maturity, Mortgage backed securities, Fair Value
1,304 
1,428 
Held to maturity, Fair Value
$ 10,560 
$ 10,670 
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Cost
$ 697 
$ 706 
Gross unrealized appreciation
164 
129 
Gross unrealized depreciation
(5)
(21)
Equity securities, at fair value
$ 856 
$ 814 
Investments (Net Realized Gains (Losses) And Losses Included In Net Realized Gains (Losses) And Other Comprehensive Income) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Gain (Loss) on Investments [Line Items]
 
 
 
 
Other-than-temporary impairment (OTTI) losses gross
$ (9)
$ (16)
$ (28)
$ (87)
OTTI on fixed maturities recognized in OCI (pre-tax)
1 
0 
1 
8 
Foreign exchange gains (losses)
14 
(22)
(5)
17 
Derivative instrument
63 
(206)
90 
(490)
Fair Value Adjustments On Insurance Derivative Gains Losses
118 
(131)
211 
(359)
Net realized gains (losses)
101 
(216)
94 
(610)
Investment and embedded derivative instruments
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
Derivative instrument
(16)
(47)
(10)
(86)
S&P put options and futures
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
Derivative instrument
(38)
(28)
(112)
(43)
Other derivative instruments
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
Derivative instrument
(1)
0 
1 
(2)
Other Investments [Member]
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
OTTI on equity securities
(1)
0 
(9)
(3)
Other
0 
10 
1 
16 
Equity Securities [Member]
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
OTTI on equity securities
(3)
(5)
(8)
(6)
Equity Securities, Gross realized gains excluding OTTI
6 
4 
15 
44 
Equity Securities, Gross realized losses excluding OTTI
(1)
(4)
(1)
(5)
Total equity securities
2 
(5)
6 
33 
Fixed Maturities [Member]
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
Other-than-temporary impairment (OTTI) losses gross
(5)
(11)
(11)
(78)
OTTI on fixed maturities recognized in OCI (pre-tax)
1 
0 
1 
8 
OTTI on fixed maturities, net
(4)
(11)
(10)
(70)
Fixed maturities, Gross realized gains excluding OTTI
45 
37 
79 
102 
Fixed maturities, Gross realized losses excluding OTTI
(18)
(19)
(58)
(215)
Total fixed maturities
$ 23 
$ 7 
$ 11 
$ (183)
Investments (Aggregate Fair Value And Gross Unrealized Loss By Length Of Time Security Has Continuously Been In Unrealized Loss Position) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Investment [Line Items]
 
 
Fair Value, 0-12 Months
$ 27,692 
$ 43,641 
Gross Unrealized Loss, 0-12 Months
(375)
(959)
Fair Value, Over 12 Months
1,271 
1,310 
Gross Unrealized Loss, Over 12 Months
(63)
(78)
Total Fair Value
28,963 
44,951 
Total Gross Unrealized Loss
(438)
(1,037)
U.S. Treasury And Agency [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
2,021 
2,216 
Gross Unrealized Loss, 0-12 Months
(28)
(48)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
2,021 
2,216 
Total Gross Unrealized Loss
(28)
(48)
Foreign [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
4,381 
5,918 
Gross Unrealized Loss, 0-12 Months
(57)
(99)
Fair Value, Over 12 Months
599 
386 
Gross Unrealized Loss, Over 12 Months
(25)
(27)
Total Fair Value
4,980 
6,304 
Total Gross Unrealized Loss
(82)
(126)
Corporate [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
4,410 
7,021 
Gross Unrealized Loss, 0-12 Months
(72)
(149)
Fair Value, Over 12 Months
372 
641 
Gross Unrealized Loss, Over 12 Months
(29)
(44)
Total Fair Value
4,782 
7,662 
Total Gross Unrealized Loss
(101)
(193)
Collateralized Mortgage Backed Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
7,657 
8,638 
Gross Unrealized Loss, 0-12 Months
(141)
(189)
Fair Value, Over 12 Months
118 
234 
Gross Unrealized Loss, Over 12 Months
(4)
(5)
Total Fair Value
7,775 
8,872 
Total Gross Unrealized Loss
(145)
(194)
States, Municipalities, And Political Subdivisions [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
9,049 
19,448 
Gross Unrealized Loss, 0-12 Months
(68)
(435)
Fair Value, Over 12 Months
182 
49 
Gross Unrealized Loss, Over 12 Months
(5)
(2)
Total Fair Value
9,231 
19,497 
Total Gross Unrealized Loss
(73)
(437)
Fixed Maturities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
27,518 
43,241 
Gross Unrealized Loss, 0-12 Months
(366)
(920)
Fair Value, Over 12 Months
1,271 
1,310 
Gross Unrealized Loss, Over 12 Months
(63)
(78)
Total Fair Value
28,789 
44,551 
Total Gross Unrealized Loss
(429)
(998)
Equity Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
104 
199 
Gross Unrealized Loss, 0-12 Months
(5)
(21)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
104 
199 
Total Gross Unrealized Loss
(5)
(21)
Other Long-term Investments [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
70 
201 
Gross Unrealized Loss, 0-12 Months
(4)
(18)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
70 
201 
Total Gross Unrealized Loss
$ (4)
$ (18)
Investments (Schedule Of Components Of Restricted Assets) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Trust funds
$ 14,938 
$ 13,880 
Deposits with U.S. regulatory authorities
2,325 
2,203 
Deposits with non-U.S. regulatory authorities
2,170 
2,191 
Assets pledged under repurchase agreements
1,472 
1,461 
Other pledged assets
371 
435 
Total restricted assets
$ 21,276 
$ 20,170 
Fair value measurements Fair Value Measurements (narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
 
 
 
 
Fair Value, Level 1 to Level 2 transfers, Amount
$ 0 
$ 0 
$ 0 
$ 0 
Fair Value, Level 2 to Level 1 Transfers, Amount
0 
0 
0 
0 
Realized Gain Losses As A Result of Annuitization Changes
$ 94 
 
 
 
Minimum [Member]
 
 
 
 
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
 
 
 
 
Notice Period For Redemption For Alternative Investments Investment Funds
 
 
5 days 
 
Maximum [Member]
 
 
 
 
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
 
 
 
 
Notice Period For Redemption For Alternative Investments Investment Funds
 
 
120 days 
 
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
$ 81,645 
 
$ 80,115 
 
 
 
Equity securities, at fair value
856 
 
814 
 
 
 
Other Investments
4,685 
 
4,519 
 
 
 
Securities lending collateral
1,545 
 
1,092 
 
 
 
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Other Investments
3,711 
 
3,626 
 
 
 
Other Investments [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Other Investments
19 
 
25 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
81,645 
 
80,115 
 
 
 
Equity securities, at fair value
856 
 
814 
 
 
 
Short-term investments
2,651 
 
3,002 
 
 
 
Other Investments
955 
 
868 
 
 
 
Securities lending collateral
1,545 
 
1,092 
 
 
 
Investment derivative instruments, assets
12 
 
31 
 
 
 
Other Derivative Instruments Fair Value
9 
 
3 
 
 
 
Separate Account Assets
2,248 
 
1,879 
 
 
 
Total assets measured at fair value
89,921 
 
87,804 
 
 
 
Investment derivative instruments, liabilities
35 
 
54 
 
 
 
Other derivative instruments, liability
2 
 
13 
 
 
 
Liabilities, Fair Value Disclosure, Recurring
394 
 
626 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
877 
 
800 
 
 
 
Equity securities, at fair value
39 
 
41 
 
 
 
Short-term investments
7 
 
25 
 
 
 
Other Investments
243 
 
225 
 
 
 
Total assets measured at fair value
1,166 
 
1,091 
 
 
 
Other derivative instruments, liability
2 
 
13 
 
 
 
Liabilities, Fair Value Disclosure, Recurring
359 
 
572 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
2,486 
 
2,175 
 
 
 
Equity securities, at fair value
817 
 
773 
 
 
 
Short-term investments
1,421 
 
1,757 
 
 
 
Other Investments
430 
 
384 
 
 
 
Investment derivative instruments, assets
12 
 
31 
 
 
 
Other Derivative Instruments Fair Value
9 
 
3 
 
 
 
Separate Account Assets
2,147 
 
1,784 
 
 
 
Total assets measured at fair value
7,322 
 
6,907 
 
 
 
Investment derivative instruments, liabilities
35 
 
54 
 
 
 
Liabilities, Fair Value Disclosure, Recurring
35 
 
54 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
78,282 
 
77,140 
 
 
 
Short-term investments
1,223 
 
1,220 
 
 
 
Other Investments
282 
 
259 
 
 
 
Securities lending collateral
1,545 
 
1,092 
 
 
 
Separate Account Assets
101 
 
95 
 
 
 
Total assets measured at fair value
81,433 
 
79,806 
 
 
 
Fair Value, Measurements, Recurring [Member] |
U.S. Treasury And Agency [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
3,136 
 
2,870 
 
 
 
Fair Value, Measurements, Recurring [Member] |
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
2,486 
 
2,175 
 
 
 
Fair Value, Measurements, Recurring [Member] |
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
650 
 
695 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Foreign [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
21,710 
 
21,440 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Foreign [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
85 
 
74 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Foreign [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
21,625 
 
21,366 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Corporate [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
25,364 
 
24,149 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Corporate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
747 
 
681 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Corporate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
24,617 
 
23,468 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Collateralized Mortgage Backed Securities [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
14,473 
 
14,007 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
45 
 
45 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
14,428 
 
13,962 
 
 
 
Fair Value, Measurements, Recurring [Member] |
States, Municipalities, And Political Subdivisions [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
16,962 
 
17,649 
 
 
 
Fair Value, Measurements, Recurring [Member] |
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Available for sale, Fair Value
16,962 
 
17,649 
 
 
 
Guaranteed Minimum Income Benefit [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
357 1
466 1
559 1
971 1 2
839 2
609 1 2
Guaranteed Minimum Income Benefit [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
357 
 
559 
 
 
 
Guaranteed Minimum Income Benefit [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
357 3
 
559 
 
 
 
Guaranteed Minimum Income Benefit [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
 
 
$ 559 
 
 
 
[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 $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months EndedAvailable-for-Sale Debt SecuritiesEquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)June 30, 2017Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$74 $681 $45 $41$25$225 $13$559Transfers into Level 3— 57 — ——— —9Transfers out of Level 3— (67) — ——— (9)—Change in Net Unrealized Gains (Losses) included in OCI2 (8) — 1—3 ——Net Realized Gains/Losses1 (1) — ——— (2)(211)Purchases33 221 1 61424 ——Sales(22) (55) (1) (9)—— ——Settlements(3) (81) — —(32)(9) ——Balance – end of period$85 $747 $45 $39$7$243 $2$357Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$— $— $— $—$—$— $(2)$(211)(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 $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively. Assets LiabilitiesSix Months EndedAvailable-for-Sale Debt Securities Equitysecurities Short-term investments Otherinvestments Other derivative instruments GLB(1)June 30, 2016Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$57 $174 $53 $16 $— $212 $6 $609Transfers into Level 39 18 — — — — — —Transfers out of Level 3(2) — — — — — — —Change in Net Unrealized Gains (Losses) included in OCI9 11 — (1) — — — —Net Realized Gains/Losses(6) (8) — 1 — — 2 362Purchases (2)32 124 1 23 50 14 2 —Sales(8) (30) (5) (2) — — — —Settlements(4) (8) — — — (10) — —Balance – end of period$87 $281 $49 $37 $50 $216 $10 $971Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(7) $— $— $— $— $2 $362(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 $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition.
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2017
Minimum [Member]
Jun. 30, 2017
Maximum [Member]
Jun. 30, 2017
Guaranteed Minimum Income Benefit [Member]
Mar. 31, 2017
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Jun. 30, 2016
Guaranteed Minimum Income Benefit [Member]
Mar. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2015
Guaranteed Minimum Income Benefit [Member]
Jun. 30, 2017
Guaranteed Minimum Income Benefit [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
 
 
 
$ 357 1
$ 466 1
$ 559 1
$ 971 1 2
$ 839 2
$ 609 1 2
$ 357 
$ 559 
$ 559 
Fair Value Measurements, Valuation Techniques
Actuarial model 3
 
 
 
 
 
 
 
 
 
 
 
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate
 
3.00% 3
34.00% 3
 
 
 
 
 
 
 
 
 
Significant Unobservable Inputs Annuitization Rate
 
0.00% 3
78.00% 3
 
 
 
 
 
 
 
 
 
[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 $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months EndedAvailable-for-Sale Debt SecuritiesEquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)June 30, 2017Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$74 $681 $45 $41$25$225 $13$559Transfers into Level 3— 57 — ——— —9Transfers out of Level 3— (67) — ——— (9)—Change in Net Unrealized Gains (Losses) included in OCI2 (8) — 1—3 ——Net Realized Gains/Losses1 (1) — ——— (2)(211)Purchases33 221 1 61424 ——Sales(22) (55) (1) (9)—— ——Settlements(3) (81) — —(32)(9) ——Balance – end of period$85 $747 $45 $39$7$243 $2$357Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$— $— $— $—$—$— $(2)$(211)(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 $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively. Assets LiabilitiesSix Months EndedAvailable-for-Sale Debt Securities Equitysecurities Short-term investments Otherinvestments Other derivative instruments GLB(1)June 30, 2016Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$57 $174 $53 $16 $— $212 $6 $609Transfers into Level 39 18 — — — — — —Transfers out of Level 3(2) — — — — — — —Change in Net Unrealized Gains (Losses) included in OCI9 11 — (1) — — — —Net Realized Gains/Losses(6) (8) — 1 — — 2 362Purchases (2)32 124 1 23 50 14 2 —Sales(8) (30) (5) (2) — — — —Settlements(4) (8) — — — (10) — —Balance – end of period$87 $281 $49 $37 $50 $216 $10 $971Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(7) $— $— $— $— $2 $362(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 $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition.
Fair Value Measurements (Assets Measured At Fair Value Using Significant Unobservable Inputs) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Equity Securities [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
$ 41 
$ 29 
$ 41 
$ 16 
Transfers Into Level 3, Asset
0 
0 
0 
0 
Transfers out of Level 3, Assets
0 
 
0 
0 
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss)
1 
(1)
1 
(1)
Net Realized Gains/ (Losses), Assets
0 
1 
0 
1 
Purchases, Assets
6 
10 
6 
23 
Sales, Assets
(9)
(2)
(9)
(2)
Settlements, Assets
0 
0 
0 
0 
Balance-End of Period, Assets
39 
37 
39 
37 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
0 
0 
0 
0 
Short-term Investments [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
21 
0 
25 
0 
Transfers Into Level 3, Asset
0 
0 
0 
0 
Transfers out of Level 3, Assets
0 
 
0 
0 
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
0 
0 
Net Realized Gains/ (Losses), Assets
0 
0 
0 
0 
Purchases, Assets
7 
50 
14 
50 
Sales, Assets
0 
0 
0 
0 
Settlements, Assets
(21)
0 
(32)
0 
Balance-End of Period, Assets
7 
50 
7 
50 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
 
0 
0 
0 
Other Long-term Investments [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
233 
211 
225 
212 
Transfers Into Level 3, Asset
0 
0 
0 
0 
Transfers out of Level 3, Assets
0 
 
0 
0 
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss)
(1)
0 
3 
0 
Net Realized Gains/ (Losses), Assets
0 
0 
0 
0 
Purchases, Assets
16 
8 
24 
14 
Sales, Assets
0 
0 
0 
0 
Settlements, Assets
(5)
(3)
(9)
(10)
Balance-End of Period, Assets
243 
216 
243 
216 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
0 
0 
0 
0 
Available-for-sale Securities [Member] |
Foreign Government Debt Securities [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
80 
62 
74 
57 
Transfers Into Level 3, Asset
0 
3 
0 
9 
Transfers out of Level 3, Assets
0 
 
0 
(2)
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss)
3 
3 
2 
9 
Net Realized Gains/ (Losses), Assets
2 
(1)
1 
(6)
Purchases, Assets
19 
27 
33 
32 
Sales, Assets
(19)
(7)
(22)
(8)
Settlements, Assets
0 
0 
(3)
(4)
Balance-End of Period, Assets
85 
87 
85 
87 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
0 
(1)
0 
(5)
Available-for-sale Securities [Member] |
Corporate [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
737 
261 
681 
174 
Transfers Into Level 3, Asset
28 
2 
57 
18 
Transfers out of Level 3, Assets
(13)
 
(67)
0 
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
9 
(8)
11 
Net Realized Gains/ (Losses), Assets
0 
(2)
(1)
(8)
Purchases, Assets
65 
31 
221 
124 
Sales, Assets
(28)
(16)
(55)
(30)
Settlements, Assets
(42)
(4)
(81)
(8)
Balance-End of Period, Assets
747 
281 
747 
281 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
0 
0 
0 
(7)
Available-for-sale Securities [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
45 
48 
45 
53 
Transfers Into Level 3, Asset
0 
0 
0 
0 
Transfers out of Level 3, Assets
0 
 
0 
0 
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
0 
0 
Net Realized Gains/ (Losses), Assets
0 
0 
0 
0 
Purchases, Assets
0 
1 
1 
1 
Sales, Assets
0 
0 
(1)
(5)
Settlements, Assets
0 
0 
0 
0 
Balance-End of Period, Assets
45 
49 
45 
49 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
$ 0 
$ 0 
$ 0 
$ 0 
Fair value measurements Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Mar. 31, 2017
Dec. 31, 2016
Mar. 31, 2016
Dec. 31, 2015
Guaranteed Minimum Income Benefit [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
Reported liabilities
$ 684 
$ 1,300 
$ 684 
$ 1,300 
$ 774 
$ 853 
$ 1,100 
$ 888 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
 
 
 
Balance - Beginning of Period, Liabilities
466 1
839 2
559 1
609 1 2
 
 
 
 
Transfers into level 3, liability
9 
0 
9 
0 
 
 
 
 
Transfers out of Level 3, Liabilities
0 
 
0 
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
0 
0 
0 
0 
 
 
 
 
Net Realized Gains/Losses, Liabilities
(118)
132 2
(211)
362 2
 
 
 
 
Purchases, Liabilities
0 
0 
0 
0 
 
 
 
 
Sales, Liabilities
0 
0 
0 
0 
 
 
 
 
Settlements, Liabilities
0 
0 
0 
0 
 
 
 
 
Balance - End of Period, Liabilities
357 1
971 1 2
357 1
971 1 2
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)
(118)
132 
(211)
362 
 
 
 
 
Other Derivative Instruments Fair Value [Member]
 
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
 
 
 
Balance - Beginning of Period, Liabilities
11 
10 
13 
6 
 
 
 
 
Transfers into level 3, liability
0 
0 
0 
0 
 
 
 
 
Transfers out of Level 3, Liabilities
(9)
 
(9)
0 
 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
0 
0 
0 
0 
 
 
 
 
Net Realized Gains/Losses, Liabilities
0 
0 
(2)
2 
 
 
 
 
Purchases, Liabilities
0 
0 
0 
2 
 
 
 
 
Sales, Liabilities
0 
0 
0 
0 
 
 
 
 
Settlements, Liabilities
0 
0 
0 
0 
 
 
 
 
Balance - End of Period, Liabilities
2 
10 
2 
10 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)
$ 0 
$ 0 
$ (2)
$ 2 
 
 
 
 
[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 $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months EndedAvailable-for-Sale Debt SecuritiesEquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)June 30, 2017Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$74 $681 $45 $41$25$225 $13$559Transfers into Level 3— 57 — ——— —9Transfers out of Level 3— (67) — ——— (9)—Change in Net Unrealized Gains (Losses) included in OCI2 (8) — 1—3 ——Net Realized Gains/Losses1 (1) — ——— (2)(211)Purchases33 221 1 61424 ——Sales(22) (55) (1) (9)—— ——Settlements(3) (81) — —(32)(9) ——Balance – end of period$85 $747 $45 $39$7$243 $2$357Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$— $— $— $—$—$— $(2)$(211)(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 $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively. Assets LiabilitiesSix Months EndedAvailable-for-Sale Debt Securities Equitysecurities Short-term investments Otherinvestments Other derivative instruments GLB(1)June 30, 2016Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$57 $174 $53 $16 $— $212 $6 $609Transfers into Level 39 18 — — — — — —Transfers out of Level 3(2) — — — — — — —Change in Net Unrealized Gains (Losses) included in OCI9 11 — (1) — — — —Net Realized Gains/Losses(6) (8) — 1 — — 2 362Purchases (2)32 124 1 23 50 14 2 —Sales(8) (30) (5) (2) — — — —Settlements(4) (8) — — — (10) — —Balance – end of period$87 $281 $49 $37 $50 $216 $10 $971Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(7) $— $— $— $— $2 $362(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 $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition.
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
$ 10,560 
$ 10,670 
Held-to-maturity Securities
10,371 
10,644 
Repurchase agreements
1,408 
1,403 
Short-term debt
922 
500 
Long-term debt
11,667 
12,610 
Trust preferred securities
308 
308 
Total liabilities
112,639 
111,511 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
528 
555 
Repurchase agreements
0 
0 
Short-term Debt, Fair Value
0 
0 
Long-term Debt, Fair Value
0 
0 
Trust preferred securities
0 
0 
Total liabilities
0 
0 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
10,020 
10,102 
Repurchase agreements
1,408 
1,403 
Short-term Debt, Fair Value
931 
503 
Long-term Debt, Fair Value
12,366 
12,998 
Trust preferred securities
462 
456 
Total liabilities
15,167 
15,360 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
12 
13 
Repurchase agreements
0 
0 
Short-term Debt, Fair Value
0 
0 
Long-term Debt, Fair Value
0 
0 
Trust preferred securities
0 
0 
Total liabilities
0 
0 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
528 
555 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
85 
106 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Foreign [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Foreign [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
642 
667 
Foreign [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Corporate [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Corporate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
2,688 
2,782 
Corporate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
12 
13 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
1,304 
1,428 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
5,301 
5,119 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
10,560 
10,670 
Repurchase agreements
1,408 
1,403 
Short-term Debt, Fair Value
931 
503 
Long-term Debt, Fair Value
12,366 
12,998 
Trust preferred securities
462 
456 
Total liabilities
15,167 
15,360 
Estimate of Fair Value Measurement [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
613 
661 
Estimate of Fair Value Measurement [Member] |
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
642 
667 
Estimate of Fair Value Measurement [Member] |
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
2,700 
2,795 
Estimate of Fair Value Measurement [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
1,304 
1,428 
Estimate of Fair Value Measurement [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
5,301 
5,119 
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
10,371 
10,644 
Repurchase agreements
1,408 
1,403 
Short-term debt
922 
500 
Long-term debt
11,667 
12,610 
Trust preferred securities
308 
308 
Total liabilities
14,305 
14,821 
Reported Value Measurement [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
602 
655 
Reported Value Measurement [Member] |
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
613 
640 
Reported Value Measurement [Member] |
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
2,645 
2,771 
Reported Value Measurement [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
1,268 
1,393 
Reported Value Measurement [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
$ 5,243 
$ 5,185 
Unpaid losses and loss expenses Unpaid losses and loss expenses (RF Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Jan. 14, 2016
Unpaid Losses and Loss Expenses [Roll Forward]
 
 
 
 
Gross unpaid losses and loss expenses, beginning of year
$ 60,540 
$ 37,303 
 
 
Reinsurance Recoverable on unpaid losses, beginning of year
(12,708)
(10,741)
 
 
Net unpaid loss, beginning of period
47,832 
26,562 
 
 
Acquisition of subsidiaries
 
 
0 
21,398 
Total, Beginning of year
47,832 
47,960 
 
 
Current Year Claims and Claims Adjustment Expense
8,396 
8,529 
 
 
PPD (Favorable) / Adverse
(461)
(601)
 
 
Total, Incurred
7,935 
7,928 
 
 
Net loss and loss expenses paid, Current Year
2,271 
1,964 
 
 
Net losses and loss expenses Paid, Prior Years
5,758 
5,541 
 
 
Total, Paid
8,029 
7,505 
 
 
Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Revaluation And Other
171 
40 
 
 
Net unpaid Loss, end of period
47,909 
48,423 
 
 
Reinsurance Recoverables on unpaid losses, end of year
12,485 
12,396 
 
 
Gross unpaid losses and loss expenses, end of year
60,394 
60,819 
 
 
prior period development, net adjustments
$ 60 
$ 53 
 
 
Unpaid losses and loss expenses Unpaid losses and loss expenses (narrative details) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
$ (461)
$ (601)
North America Commercial P&C Insurance [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(131)
(168)
(310)
(346)
North America Commercial P&C Insurance [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(101)
(167)
(200)
(309)
North America Commercial P&C Insurance [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(30)
 
(110)
(37)
North America Commercial P&C Insurance [Member] |
North America Workers' Compensation [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(83)
(114)
(84)
(114)
North America Commercial P&C Insurance [Member] |
Primary casualty GL [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
(24)
 
North America Commercial P&C Insurance [Member] |
construction defects [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
 
26 
North America Commercial P&C Insurance [Member] |
Accident Year 2016 [Member] |
North America Workers' Compensation [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(57)
 
 
 
North America Commercial P&C Insurance [Member] |
Accident Year 2015 and prior [Member] |
North America Workers' Compensation [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(40)
 
 
 
North America Commercial P&C Insurance [Member] |
Accident years 2008 - 2013 [Member] |
Commercial Multi-peril and General Liability [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(37)
 
(37)
 
North America Commercial P&C Insurance [Member] |
Accident years 2014 and 2016 [Member] |
Property [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
(33)
 
North America Commercial P&C Insurance [Member] |
Accident years 2014 - 2016 [Member] |
Commercial Property [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(29)
 
 
 
North America Commercial P&C Insurance [Member] |
Accident Year 2010 and Prior [Member] |
Commercial Excess and Umbrella [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
(74)
(145)
North America Commercial P&C Insurance [Member] |
Accident year 2012 and 2013 [Member] |
Professional Malpractice Liability Insurance [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
(25)
 
North America Commercial P&C Insurance [Member] |
Accident year 2011 and prior [Member] |
North America Workers' Compensation [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
(59)
 
 
North America Commercial P&C Insurance [Member] |
Accident year 2015 and 2016 [Member] |
Accident and Health Insurance Product Line [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
(24)
 
North America Commercial P&C Insurance [Member] |
Accident Year 2015 [Member] |
North America Workers' Compensation [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
(40)
 
 
North America Commercial P&C Insurance [Member] |
Accident Year 2015 [Member] |
Credit related business [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
(45)
 
North America Commercial P&C Insurance [Member] |
Accident year 2007 - 2014 [Member] |
Commercial Multi-peril and General Liability [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
(50)
 
(50)
North America Commercial P&C Insurance [Member] |
Accident year 2003 [Member] |
Professional Malpractice Liability Insurance [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
(20)
 
 
North America Commercial P&C Insurance [Member] |
Accident years 2012 and prior [Member] |
Professional Malpractice Liability Insurance [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
 
(63)
North America Commercial P&C Insurance [Member] |
Accident Year 2013 [Member] |
Credit related business [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
 
(24)
North America Personal P&C Insurance [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
37 
(15)
34 
(18)
North America Agricultural Insurance [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
0 
0 
(79)
(41)
Overseas General Insurance [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(88)
(85)
(76)
(115)
Overseas General Insurance [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(88)
(84)
(108)
 
Overseas General Insurance [Member] |
Energy and Technical Risk Property [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
(32)
 
 
Overseas General Insurance [Member] |
Accident year 2013 to 2015 [Member] |
Property [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
(38)
 
 
Overseas General Insurance [Member] |
Accident year 2013 to 2015 [Member] |
Property and Inland Marine [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(37)
 
 
 
Overseas General Insurance [Member] |
Accident years 2014 - 2016 [Member] |
Energy and Technical Risk Property [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(26)
 
 
 
Overseas General Insurance [Member] |
Accident years 2014 - 2016 [Member] |
Accident and Health Insurance Product Line [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(19)
 
 
 
Overseas General Insurance [Member] |
Accident years 2016 and prior [Member] |
Casualty [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
32 
 
Global Reinsurance [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(31)
(47)
(23)
(50)
Global Reinsurance [Member] |
Casualty & Professional [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
(27)
 
Global Reinsurance [Member] |
Accident year 2011 and prior [Member] |
Casualty & Professional [Member] |
Short Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
(36)
 
 
 
Global Reinsurance [Member] |
Accident year 2011 and prior [Member] |
Casualty [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
 
(41)
Global Reinsurance [Member] |
Accident Year 2015 [Member] |
Auto Liability Excess Lines [Member] |
Long Tail [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
 
 
9 
 
Corporate Segment [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
43 
14 
53 
22 
Corporate Segment [Member] |
Discontinued Operations [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
8 
 
18 
 
Corporate Segment [Member] |
non-A&E run-off [Member]
 
 
 
 
Liability for Claims and Claims Adjustment Expense [Line Items]
 
 
 
 
PPD (Favorable) / Adverse
$ 35 
 
 
 
Commitments, Contingencies, And Guarantees (Narrative) (Detail) (USD $)
Jun. 30, 2017
Dec. 31, 2016
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Purchase Commitment, Remaining Minimum Amount Committed
$ 675,000,000 
 
Derivative liability subject to a master netting agreement
8,000,000 
10,000,000 
Unrecognized tax benefits
15,000,000 
 
Repurchase agreements
1,408,000,000 
1,403,000,000 
Funding commitments relating to limited partnerships and partially-owned investment companies
1,900,000,000 
 
Carrying value of limited partnerships and partially-owned investment companies included in other investments
$ 3,500,000,000 
 
Commitments, Contingencies, And Guarantees (Balance Sheet Locations, Fair Values In Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Foreign currency forward contracts
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
$ 2,201 
$ 2,220 
Cross Currency Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 
0 
Fair Value, Asset
0 
0 
Notional Value/Payment Provision
45 
95 
Options/Futures contracts on notes and bonds
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,376 
2,344 
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
7 
7 1
Investment And Embedded Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
14 
33 
Notional Value/Payment Provision
3,629 
4,666 
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,428 2
1,316 2
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
249 
214 
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,677 
1,530 
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,180 3
1,264 3
Other Assets [Member] |
Foreign currency forward contracts
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
8 
25 
Other Assets [Member] |
Options/Futures contracts on notes and bonds
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
4 
6 
Other Assets [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
5 2
1 2
Other Assets [Member] |
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
4 
2 
Other Assets [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
9 
3 
Other Assets [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
0 3
0 3
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Foreign currency forward contracts
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(30)
(50)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Options/Futures contracts on notes and bonds
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(5)
(4)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 
0 1
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Investment And Embedded Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(35)
(54)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 2
0 2
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(2)
(13)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(2)
(13)
Fixed Maturities Available For Sale [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
2 
2 1
Accounts Payable Future Policy Benefits [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
$ (684)3
$ (853)3
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 1,545 
$ 1,092 
Securities lending payable
1,546 
1,093 
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
(1)
(1)
Cash and Cash Equivalents [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
1,062 
423 
U.S. Treasury And Agency [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
82 
54 
Foreign Government Debt [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
263 
578 
Corporate [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
1 
37 
Collateralized Mortgage Backed Securities [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
60 
0 
Equity Securities [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 77 
$ 0 
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
$ 1,472 
$ 1,461 
Repurchase agreements
1,408 
1,403 
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
0 
1 
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
246 
240 
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
1,226 
1,220 
Repurchase Agreements [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
64 
58 
Maturity 30 to 90 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
501 
 
Maturity 30 to 90 Days [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
0 
 
Maturity 30 to 90 Days [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
6 
 
Maturity 30 to 90 Days [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
495 
 
Maturity Less than 30 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
 
569 
Maturity Less than 30 Days [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
 
0 
Maturity Less than 30 Days [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
 
230 
Maturity Less than 30 Days [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
 
339 
Maturity Greater than 90 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
971 
892 
Maturity Greater than 90 Days [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
0 
1 
Maturity Greater than 90 Days [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
240 
10 
Maturity Greater than 90 Days [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
$ 731 
$ 881 
Commitments, Contingencies, And Guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
$ 63 
$ (206)
$ 90 
$ (490)
Foreign currency forward contracts
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
(7)
(10)
7 
(20)
All Other Futures Contracts And Options [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
(9)
(37)
(17)
(71)
Convertibles and Bonds with Warrants Attached [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
0 
0 
0 
5 
Investment And Embedded Derivative Instruments [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
(16)
(47)
(10)
(86)
Guaranteed Minimum Income Benefit [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
118 
(131)
211 
(359)
Single-Stock Future [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
(38)
(28)
(112)
(43)
Other Derivatives [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
(1)
0 
1 
(2)
Guaranteed Living Benefit And Other Derivative Instruments [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain Loss on Derivative
$ 79 
$ (159)
$ 100 
$ (404)
Shareholders' equity Shareholders' equity (Details)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
USD ($)
Jun. 30, 2017
CHF
Jun. 30, 2016
USD ($)
Jun. 30, 2016
CHF
Jun. 30, 2017
USD ($)
Jun. 30, 2017
CHF
Jun. 30, 2016
USD ($)
Jun. 30, 2016
CHF
May 31, 2017
USD ($)
Dec. 31, 2016
CHF
May 31, 2016
USD ($)
May 31, 2015
USD ($)
Nov. 30, 2016
Nov 2016 Stock Repurchase Plan [Member]
USD ($)
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Shares, par value
 
 24.15 
 
 
 
 24.15 
 
 
 
 24.15 
 
 
 
Common Stock, Dividend Rate Declared
$ 0.71 
 0.69 
$ 0.69 
 0.68 
$ 1.40 
 1.38 
$ 1.36 
 1.34 
 
 
 
 
 
Common Shares in treasury, shares
14,408,723 
14,408,723 
 
 
14,408,723 
14,408,723 
 
 
 
13,815,148 
 
 
 
Authorized amount of share repurchase program
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,000 
Common Stock, Dividend Rate Approved
 
 
 
 
 
 
 
 
$ 0.71 
 
$ 0.69 
$ 0.67 
 
Annual dividend per share approved by shareholders
 
 
 
 
 
 
 
 
$ 2.84 
 
$ 2.76 
$ 2.68 
 
Shareholders' equity Dividends declared (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2017
USD ($)
Jun. 30, 2017
CHF
Jun. 30, 2016
USD ($)
Jun. 30, 2016
CHF
Jun. 30, 2017
USD ($)
Jun. 30, 2017
CHF
Jun. 30, 2016
USD ($)
Jun. 30, 2016
CHF
Dividends Declared [Abstract]
 
 
 
 
 
 
 
 
Common Stock, Dividend Rate Declared
$ 0.71 
 0.69 
$ 0.69 
 0.68 
$ 1.40 
 1.38 
$ 1.36 
 1.34 
Shareholders' equity Share Repurchases (Details) (Nov 2016 Stock Repurchase Plan [Member], USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended 1 Months Ended
Jun. 30, 2017
Jun. 30, 2017
Aug. 3, 2017
Subsequent Event [Member]
Class of Stock [Line Items]
 
 
 
Treasury Stock, Shares, Acquired
2,381,566 
3,417,630 
501,872 
Treasury Stock, Value, Acquired, Cost Method
$ 335 
$ 475 
$ 72 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
$ 525 
$ 525 
$ 453 
Share-Based Compensation (Detail) (USD $)
0 Months Ended 6 Months Ended
Feb. 23, 2017
Jun. 30, 2017
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period in years
 
3 years 
Award term period in years
 
10 years 
Stock options granted
2,065,620 
 
Weighted-average grant date fair value for stock options granted
$ 22.97 
 
Restricted Stock [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period in years
 
4 years 
Restricted stock awards granted to employees and officers of the company
1,105,118 
 
Grant date fair value of awards except for options granted to employees and officers of the company
$ 139.01 
 
Restricted Stock Units (RSUs) [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted stock units awarded to employees and officers of the company
326,272 
 
Performance Shares [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period in years
 
4 years 
Restricted stock awards granted to employees and officers of the company
202,251 
 
Postretirement benefits Components of net periodic benefit costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Pension Plan [Member]
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Service cost
$ 20 
$ 24 
$ 40 
$ 46 
Interest cost
33 
35 
66 
70 
Expected return on plan assets
(58)
(52)
(115)
(99)
Amortization of net actuarial loss
1 
1 
1 
2 
Amortization of prior service cost
0 
 
0 
 
Defined Benefit Plan, Curtailments
(8)
 
(8)
 
Net periodic (benefit) cost
(12)
8 
(16)
19 
Pension Plan [Member] |
UNITED STATES
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Service cost
16 
20 
32 
37 
Interest cost
26 
27 
52 
54 
Expected return on plan assets
(48)
(42)
(95)
(79)
Amortization of net actuarial loss
0 
0 
0 
0 
Amortization of prior service cost
0 
 
0 
 
Defined Benefit Plan, Curtailments
0 
 
0 
 
Net periodic (benefit) cost
(6)
5 
(11)
12 
Pension Plan [Member] |
Non-US [Member]
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Service cost
4 
4 
8 
9 
Interest cost
7 
8 
14 
16 
Expected return on plan assets
(10)
(10)
(20)
(20)
Amortization of net actuarial loss
1 
1 
1 
2 
Amortization of prior service cost
0 
 
0 
 
Defined Benefit Plan, Curtailments
(8)
 
(8)
 
Net periodic (benefit) cost
(6)
3 
(5)
7 
Other Postretirement Benefit Plan [Member]
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Service cost
2 
3 
2 
5 
Interest cost
0 
4 
1 
9 
Expected return on plan assets
(1)
(2)
(2)
(4)
Amortization of net actuarial loss
0 
0 
0 
0 
Amortization of prior service cost
(23)
 
(46)
 
Defined Benefit Plan, Curtailments
0 
 
0 
 
Net periodic (benefit) cost
(22)
5 
(45)
10 
Other Postretirement Benefit Plan [Member] |
UNITED STATES
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Service cost
1 
2 
1 
4 
Interest cost
0 
4 
1 
9 
Expected return on plan assets
(1)
(2)
(2)
(4)
Amortization of net actuarial loss
0 
0 
0 
0 
Amortization of prior service cost
(23)
 
(46)
 
Defined Benefit Plan, Curtailments
0 
 
0 
 
Net periodic (benefit) cost
(23)
4 
(46)
9 
Other Postretirement Benefit Plan [Member] |
Non-US [Member]
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Service cost
1 
1 
1 
1 
Interest cost
0 
0 
0 
0 
Expected return on plan assets
0 
0 
0 
0 
Amortization of net actuarial loss
0 
0 
0 
0 
Amortization of prior service cost
0 
 
0 
 
Defined Benefit Plan, Curtailments
0 
 
0 
 
Net periodic (benefit) cost
$ 1 
$ 1 
$ 1 
$ 1 
Segment information Segment Information (narrative Detail (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Derivative, (Gain) Loss on Derivative, Net
$ (63)
$ 206 
$ (90)
$ 490 
Net investment income
770 
708 
1,515 
1,382 
North America Agricultural Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Segment Income Loss Including Gains Losses On Crop Derivatives
 
 
23 
 
Derivative, (Gain) Loss on Derivative, Net
 
 
2 
 
Net investment income
6 
5 
12 
10 
Segment Life [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net investment income
77 
69 
152 
136 
Management Underwriting Income (Loss)
56 
 
 
 
Gains Losses On Fair Value Changes In Separate Account Assets
$ 16 
 
 
 
Segment Information (Operations By Segment) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
$ 7,581 
$ 7,639 
$ 14,291 
$ 13,634 
Net premiums earned
7,237 
7,405 
14,009 
14,002 
Losses and loss expenses
4,146 
4,254 
7,935 
7,928 
Policy benefits
163 
146 
331 
272 
Policy acquisition costs
1,449 
1,560 
2,846 
2,973 
Administrative expenses
706 
829 
1,382 
1,601 
Underwriting income (loss)
773 
616 
1,515 
1,228 
Net investment income
770 
708 
1,515 
1,382 
Other (income) expense
(145)
(29)
(215)
(1)
Amortization of purchased intangibles
65 
5 
129 
12 
Segment Income (loss)
1,623 
1,348 
3,116 
2,599 
Net realized gains (losses) including OTTI
101 
(216)
94 
(610)
Interest expense
147 
153 
301 
299 
Chubb integration expenses
72 
98 
183 
246 
Income tax expense
200 
155 
328 
279 
Net income
1,305 
726 
2,398 
1,165 
North America Commercial P&C Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
3,204 
3,245 
5,946 
5,547 
Net premiums earned
3,099 
3,148 
6,140 
6,044 
Losses and loss expenses
1,936 
1,971 
3,796 
3,718 
Policy benefits
0 
 
0 
0 
Policy acquisition costs
464 
545 
951 
1,027 
Administrative expenses
241 
299 
472 
565 
Underwriting income (loss)
458 
333 
921 
734 
Net investment income
490 
468 
968 
894 
Other (income) expense
(4)
(9)
0 
(9)
Amortization of purchased intangibles
0 
0 
0 
0 
Segment Income (loss)
952 
810 
1,889 
1,637 
North America Personal P&C Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
1,255 
1,231 
2,239 
2,102 
Net premiums earned
1,093 
1,140 
2,179 
2,164 
Losses and loss expenses
683 
661 
1,316 
1,322 
Policy benefits
0 
 
0 
0 
Policy acquisition costs
230 
269 
447 
518 
Administrative expenses
66 
98 
131 
186 
Underwriting income (loss)
114 
112 
285 
138 
Net investment income
56 
55 
111 
102 
Other (income) expense
1 
3 
2 
4 
Amortization of purchased intangibles
5 
4 
8 
12 
Segment Income (loss)
164 
160 
386 
224 
North America Agricultural Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
403 
375 
464 
439 
Net premiums earned
344 
327 
358 
350 
Losses and loss expenses
290 
284 
217 
254 
Policy benefits
 
 
0 
0 
Policy acquisition costs
27 
25 
26 
29 
Administrative expenses
2 
2 
(3)
(2)
Underwriting income (loss)
25 
16 
118 
69 
Net investment income
6 
5 
12 
10 
Other (income) expense
1 
0 
1 
0 
Amortization of purchased intangibles
7 
8 
14 
15 
Segment Income (loss)
23 
13 
115 
64 
Overseas General Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
2,006 
2,031 
4,206 
4,072 
Net premiums earned
2,018 
2,093 
3,954 
4,048 
Losses and loss expenses
964 
1,089 
2,035 
2,110 
Policy benefits
0 
 
0 
0 
Policy acquisition costs
555 
537 
1,084 
1,040 
Administrative expenses
243 
277 
488 
540 
Underwriting income (loss)
256 
190 
347 
358 
Net investment income
148 
147 
296 
293 
Other (income) expense
(3)
(5)
(4)
(10)
Amortization of purchased intangibles
11 
13 
22 
24 
Segment Income (loss)
396 
329 
625 
637 
Global Reinsurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
190 
230 
389 
431 
Net premiums earned
168 
185 
357 
387 
Losses and loss expenses
46 
87 
140 
176 
Policy benefits
0 
 
0 
0 
Policy acquisition costs
43 
47 
94 
100 
Administrative expenses
12 
14 
22 
28 
Underwriting income (loss)
67 
37 
101 
83 
Net investment income
65 
65 
127 
132 
Other (income) expense
1 
(2)
1 
(3)
Amortization of purchased intangibles
0 
0 
0 
0 
Segment Income (loss)
131 
104 
227 
218 
Life Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
523 
527 
1,047 
1,043 
Net premiums earned
515 
512 
1,021 
1,009 
Losses and loss expenses
182 
147 
375 
324 
Policy benefits
163 
146 
331 
272 
Policy acquisition costs
130 
137 
244 
259 
Administrative expenses
77 
77 
149 
149 
Underwriting income (loss)
(37)
5 
(78)
5 
Net investment income
77 
69 
152 
136 
Other (income) expense
(12)
0 
(41)
6 
Amortization of purchased intangibles
0 
0 
1 
1 
Segment Income (loss)
52 
74 
114 
134 
Corporate And Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
0 
 
0 
0 
Net premiums earned
0 
 
0 
0 
Losses and loss expenses
45 
15 
56 
24 
Policy benefits
0 
 
0 
0 
Policy acquisition costs
0 
0 
0 
0 
Administrative expenses
65 
62 
123 
135 
Underwriting income (loss)
(110)
(77)
(179)
(159)
Net investment income
(72)
(101)
(151)
(185)
Other (income) expense
(129)
(16)
(174)
11 
Amortization of purchased intangibles
42 
(20)
84 
(40)
Segment Income (loss)
(95)
(142)
(240)
(315)
Net realized gains (losses) including OTTI
101 
(216)
94 
(610)
Interest expense
147 
153 
301 
299 
Chubb integration expenses
72 
98 
183 
246 
Income tax expense
200 
155 
328 
279 
Net income
$ (413)
$ (764)
$ (958)
$ (1,749)
Earnings Per Share (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Net income
$ 1,305 
$ 726 
$ 2,398 
$ 1,165 
Weighted-average shares outstanding
467,981,077 
467,701,328 
468,244,458 
457,102,802 
Share-based compensation plans
3,872,860 
3,455,969 
3,900,678 
3,379,559 
Weighted-average shares outstanding and assumed conversions
471,853,937 
471,157,297 
472,145,136 
460,482,361 
Basic earnings per share (US$ per share)
$ 2.79 
$ 1.55 
$ 5.12 
$ 2.55 
Diluted earnings per share (US$ per share)
$ 2.77 
$ 1.54 
$ 5.08 
$ 2.53 
Potential anti-dilutive share conversions
2,066,578 
2,103,281 
1,467,556 
2,056,018 
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details)
Jun. 30, 2017
Debt Instrument [Line Items]
 
Equity Method Investment, Ownership Percentage
100.00% 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Jun. 30, 2016
Dec. 31, 2015
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
$ 100,208 
$ 99,094 
 
 
Cash
1,297 1 2
985 1 3
1,011 4
1,775 4
Insurance and reinsurance balances receivable
9,662 
8,970 
 
 
Reinsurance recoverable on losses and loss expenses
13,358 
13,577 
 
 
Reinsurance recoverable on policy benefits
198 
182 
 
 
Value of business acquired
337 
355 
 
 
Goodwill and other intangible assets
22,013 
22,095 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
15,915 
14,528 
 
 
Total assets
162,988 
159,786 
 
 
Unpaid losses and loss expenses
60,394 
60,540 
60,819 
37,303 
Unearned premiums
15,289 
14,779 
 
 
Future policy benefits
5,190 
5,036 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Affiliated notional cash pooling programs
0 
0 
 
 
Repurchase agreements
1,408 
1,403 
 
 
Short-term debt
922 
500 
 
 
Long-term debt
11,667 
12,610 
 
 
Trust preferred securities
308 
308 
 
 
Other liabilities
17,461 
16,335 
 
 
Total liabilities
112,639 
111,511 
 
 
Total shareholders' equity
50,349 
48,275 
47,226 
 
Total liabilities and shareholders’ equity
162,988 
159,786 
 
 
Chubb Limited (Parent Guarantor)
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
23 
27 
 
 
Cash
0 1 2
1 1 3
1 4
1 4
Insurance and reinsurance balances receivable
0 
0 
 
 
Reinsurance recoverable on losses and loss expenses
0 
0 
 
 
Reinsurance recoverable on policy benefits
0 
0 
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
40,553 
38,408 
 
 
Due from subsidiaries and affiliates, net
10,251 
10,482 
 
 
Other assets
141 
3 
 
 
Total assets
50,968 
48,921 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
0 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Affiliated notional cash pooling programs
193 2
363 3
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
0 
0 
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
426 
283 
 
 
Total liabilities
619 
646 
 
 
Total shareholders' equity
50,349 
48,275 
 
 
Total liabilities and shareholders’ equity
50,968 
48,921 
 
 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
305 
485 
 
 
Cash
167 1 2
1 1 3
207 4
2 4
Insurance and reinsurance balances receivable
0 
0 
 
 
Reinsurance recoverable on losses and loss expenses
0 
0 
 
 
Reinsurance recoverable on policy benefits
0 
0 
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
49,982 
49,509 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
289 
436 
 
 
Total assets
50,743 
50,431 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
0 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
9,939 
10,209 
 
 
Affiliated notional cash pooling programs
0 2
619 3
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
922 
500 
 
 
Long-term debt
11,656 
12,599 
 
 
Trust preferred securities
308 
308 
 
 
Other liabilities
1,582 
1,582 
 
 
Total liabilities
24,407 
25,817 
 
 
Total shareholders' equity
26,336 
24,614 
 
 
Total liabilities and shareholders’ equity
50,743 
50,431 
 
 
Other Chubb Limited Subsidiaries
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
99,880 
98,582 
 
 
Cash
1,323 1 2
1,965 1 3
1,825 4
2,743 4
Insurance and reinsurance balances receivable
11,699 
10,498 
 
 
Reinsurance recoverable on losses and loss expenses
24,118 
24,496 
 
 
Reinsurance recoverable on policy benefits
1,205 
1,153 
 
 
Value of business acquired
337 
355 
 
 
Goodwill and other intangible assets
22,013 
22,095 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
19,527 
18,442 
 
 
Total assets
180,102 
177,586 
 
 
Unpaid losses and loss expenses
70,460 
70,683 
 
 
Unearned premiums
18,876 
18,538 
 
 
Future policy benefits
6,197 
6,007 
 
 
Due to subsidiaries and affiliates, net
312 
273 
 
 
Affiliated notional cash pooling programs
0 2
0 3
 
 
Repurchase agreements
1,408 
1,403 
 
 
Short-term debt
0 
0 
 
 
Long-term debt
11 
11 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
18,639 
17,368 
 
 
Total liabilities
115,903 
114,283 
 
 
Total shareholders' equity
64,199 
63,303 
 
 
Total liabilities and shareholders’ equity
180,102 
177,586 
 
 
Consolidating Adjustments and Eliminations
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
0 
0 
 
 
Cash
(193)1 2
(982)1 3
(1,022)4
(971)4
Insurance and reinsurance balances receivable
(2,037)
(1,528)
 
 
Reinsurance recoverable on losses and loss expenses
(10,760)
(10,919)
 
 
Reinsurance recoverable on policy benefits
(1,007)
(971)
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
(90,535)
(87,917)
 
 
Due from subsidiaries and affiliates, net
(10,251)
(10,482)
 
 
Other assets
(4,042)
(4,353)
 
 
Total assets
(118,825)
(117,152)
 
 
Unpaid losses and loss expenses
(10,066)
(10,143)
 
 
Unearned premiums
(3,587)
(3,759)
 
 
Future policy benefits
(1,007)
(971)
 
 
Due to subsidiaries and affiliates, net
(10,251)
(10,482)
 
 
Affiliated notional cash pooling programs
(193)2
(982)3
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
0 
0 
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
(3,186)
(2,898)
 
 
Total liabilities
(28,290)
(29,235)
 
 
Total shareholders' equity
(90,535)
(87,917)
 
 
Total liabilities and shareholders’ equity
$ (118,825)
$ (117,152)
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Condensed Statement of Income Captions [Line Items]
 
 
 
 
Net premiums written
$ 7,581 
$ 7,639 
$ 14,291 
$ 13,634 
Net premiums earned
7,237 
7,405 
14,009 
14,002 
Net investment income
770 
708 
1,515 
1,382 
Equity in earnings of subsidiaries
0 
0 
0 
0 
Net realized gains (losses) including OTTI
101 
(216)
94 
(610)
Losses and loss expenses
4,146 
4,254 
7,935 
7,928 
Policy benefits
163 
146 
331 
272 
Policy acquisition costs and administrative expenses
2,155 
2,389 
4,228 
4,574 
Interest (income) expense
147 
153 
301 
299 
Other (income) expense
(145)
(29)
(215)
(1)
Amortization of purchased intangibles
65 
5 
129 
12 
Chubb integration expenses
72 
98 
183 
246 
Income tax expense
200 
155 
328 
279 
Net income
1,305 
726 
2,398 
1,165 
Comprehensive income (loss)
1,675 
1,540 
3,082 
3,081 
Consolidating Adjustments and Eliminations
 
 
 
 
Condensed Statement of Income Captions [Line Items]
 
 
 
 
Net premiums written
0 
0 
0 
0 
Net premiums earned
0 
0 
0 
0 
Net investment income
0 
0 
0 
0 
Equity in earnings of subsidiaries
(1,918)
(1,213)
(3,646)
(2,094)
Net realized gains (losses) including OTTI
0 
0 
0 
0 
Losses and loss expenses
0 
0 
0 
0 
Policy benefits
0 
0 
0 
0 
Policy acquisition costs and administrative expenses
0 
0 
0 
0 
Interest (income) expense
0 
0 
0 
0 
Other (income) expense
0 
0 
0 
0 
Amortization of purchased intangibles
0 
0 
0 
0 
Chubb integration expenses
0 
 
0 
0 
Income tax expense
0 
0 
0 
0 
Net income
(1,918)
(1,213)
(3,646)
(2,094)
Comprehensive income (loss)
(2,676)
(2,685)
(5,005)
(5,462)
Chubb Limited (Parent Guarantor)
 
 
 
 
Condensed Statement of Income Captions [Line Items]
 
 
 
 
Net premiums written
0 
0 
0 
0 
Net premiums earned
0 
0 
0 
0 
Net investment income
2 
1 
2 
2 
Equity in earnings of subsidiaries
1,253 
664 
2,280 
1,039 
Net realized gains (losses) including OTTI
(2)
(1)
(2)
(1)
Losses and loss expenses
0 
0 
0 
0 
Policy benefits
0 
0 
0 
0 
Policy acquisition costs and administrative expenses
18 
16 
36 
33 
Interest (income) expense
(84)
(93)
(168)
(173)
Other (income) expense
4 
(4)
(2)
(13)
Amortization of purchased intangibles
0 
0 
0 
0 
Chubb integration expenses
6 
14 
6 
17 
Income tax expense
4 
5 
10 
11 
Net income
1,305 
726 
2,398 
1,165 
Comprehensive income (loss)
1,675 
1,540 
3,082 
3,081 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
 
 
Condensed Statement of Income Captions [Line Items]
 
 
 
 
Net premiums written
0 
0 
0 
0 
Net premiums earned
0 
0 
0 
0 
Net investment income
4 
3 
7 
7 
Equity in earnings of subsidiaries
665 
549 
1,366 
1,055 
Net realized gains (losses) including OTTI
(1)
(1)
(14)
(1)
Losses and loss expenses
0 
0 
0 
0 
Policy benefits
0 
0 
0 
0 
Policy acquisition costs and administrative expenses
(2)
96 
12 
132 
Interest (income) expense
212 
233 
433 
448 
Other (income) expense
10 
10 
25 
20 
Amortization of purchased intangibles
0 
0 
0 
0 
Chubb integration expenses
4 
(97)
53 
40 
Income tax expense
(87)
(37)
(199)
(187)
Net income
531 
346 
1,035 
608 
Comprehensive income (loss)
920 
1,004 
1,711 
2,060 
Other Chubb Limited Subsidiaries
 
 
 
 
Condensed Statement of Income Captions [Line Items]
 
 
 
 
Net premiums written
7,581 
7,639 
14,291 
13,634 
Net premiums earned
7,237 
7,405 
14,009 
14,002 
Net investment income
764 
704 
1,506 
1,373 
Equity in earnings of subsidiaries
0 
0 
0 
0 
Net realized gains (losses) including OTTI
104 
(214)
110 
(608)
Losses and loss expenses
4,146 
4,254 
7,935 
7,928 
Policy benefits
163 
146 
331 
272 
Policy acquisition costs and administrative expenses
2,139 
2,277 
4,180 
4,409 
Interest (income) expense
19 
13 
36 
24 
Other (income) expense
(159)
(35)
(238)
(8)
Amortization of purchased intangibles
65 
5 
129 
12 
Chubb integration expenses
62 
181 
124 
189 
Income tax expense
283 
187 
517 
455 
Net income
1,387 
867 
2,611 
1,486 
Comprehensive income (loss)
$ 1,756 
$ 1,681 
$ 3,294 
$ 3,402 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
$ 1,640 
$ 2,153 
Purchases of fixed maturities available for sale
(12,260)
(17,077)
Purchases of fixed maturities held to maturity
(212)
(121)
Purchases of equity securities
(82)
(78)
Sales of fixed maturities available for sale
6,873 
11,868 
Sales of equity securities
104 
932 
Maturities and redemptions of fixed maturities available for sale
5,169 
3,910 
Maturities and redemptions of fixed maturities held to maturity
408 
443 
Net change in short-term investments
354 
11,711 
Net derivative instruments settlements
(129)
(93)
Acquisition of subsidiaries (net of cash acquired of nil and $71)
0 
(14,248)
Capital contribution
 
0 
Other
(121)
81 
Net cash flows from (used for) investing activities
104 
(2,672)
Dividends paid on Common Shares
(646)
(530)
Common Shares repurchased
(475)
0 
Repayment of long-term debt
(500)
0 
Proceeds from issuance of repurchase agreements
1,343 
904 
Repayments of repurchase agreements
(1,338)
(902)
Proceeds from share-based compensation plans
89 
92 
Dividend to Parent Company
0 
0 
Advances (to) from affiliates
0 
0 
Capital contribution
 
0 
Net proceeds from (payments to) affiliated notional cash pooling program
0 
0 
Policyholder contract deposits
209 
274 
Policyholder contract withdrawals
(125)
(103)
Other
0 
(4)
Net cash flows used for financing activities
(1,443)
(269)
Effect of foreign currency rate changes on cash and cash equivalents
11 
24 
Net increase (decrease) in cash
312 
(764)
Cash – beginning of period
985 1 2
1,775 3
Cash – end of period
1,297 1 4
1,011 3
Chubb Limited (Parent Guarantor)
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
551 
3,213 
Purchases of fixed maturities available for sale
0 
0 
Purchases of fixed maturities held to maturity
0 
0 
Purchases of equity securities
0 
0 
Sales of fixed maturities available for sale
0 
0 
Sales of equity securities
0 
0 
Maturities and redemptions of fixed maturities available for sale
0 
0 
Maturities and redemptions of fixed maturities held to maturity
0 
0 
Net change in short-term investments
0 
0 
Net derivative instruments settlements
0 
0 
Acquisition of subsidiaries (net of cash acquired of nil and $71)
 
0 
Capital contribution
 
(2,330)
Other
0 
0 
Net cash flows from (used for) investing activities
0 
(2,330)
Dividends paid on Common Shares
(646)
(530)
Common Shares repurchased
0 
 
Repayment of long-term debt
0 
 
Proceeds from issuance of repurchase agreements
0 
0 
Repayments of repurchase agreements
0 
0 
Proceeds from share-based compensation plans
0 
0 
Dividend to Parent Company
0 
0 
Advances (to) from affiliates
264 
(247)
Capital contribution
 
0 
Net proceeds from (payments to) affiliated notional cash pooling program
(170)1
(106)3
Policyholder contract deposits
0 
0 
Policyholder contract withdrawals
0 
0 
Other
 
0 
Net cash flows used for financing activities
(552)
(883)
Effect of foreign currency rate changes on cash and cash equivalents
0 
0 
Net increase (decrease) in cash
(1)
0 
Cash – beginning of period
1 1 2
1 3
Cash – end of period
0 1 4
1 3
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
1,444 
4,050 
Purchases of fixed maturities available for sale
(5)
(83)
Purchases of fixed maturities held to maturity
0 
0 
Purchases of equity securities
0 
0 
Sales of fixed maturities available for sale
0 
0 
Sales of equity securities
0 
0 
Maturities and redemptions of fixed maturities available for sale
13 
0 
Maturities and redemptions of fixed maturities held to maturity
0 
0 
Net change in short-term investments
166 
7,829 
Net derivative instruments settlements
(7)
(10)
Acquisition of subsidiaries (net of cash acquired of nil and $71)
 
(14,282)
Capital contribution
 
0 
Other
2 
(3)
Net cash flows from (used for) investing activities
169 
(6,549)
Dividends paid on Common Shares
0 
0 
Common Shares repurchased
0 
 
Repayment of long-term debt
(500)
 
Proceeds from issuance of repurchase agreements
0 
0 
Repayments of repurchase agreements
0 
0 
Proceeds from share-based compensation plans
0 
0 
Dividend to Parent Company
0 
0 
Advances (to) from affiliates
(328)
221 
Capital contribution
 
2,330 
Net proceeds from (payments to) affiliated notional cash pooling program
(619)1
157 3
Policyholder contract deposits
0 
0 
Policyholder contract withdrawals
0 
0 
Other
 
(4)
Net cash flows used for financing activities
(1,447)
2,704 
Effect of foreign currency rate changes on cash and cash equivalents
0 
0 
Net increase (decrease) in cash
166 
205 
Cash – beginning of period
1 1 2
2 3
Cash – end of period
167 1 4
207 3
Other Chubb Limited Subsidiaries
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
1,686 
2,262 
Purchases of fixed maturities available for sale
(12,255)
(16,994)
Purchases of fixed maturities held to maturity
(212)
(121)
Purchases of equity securities
(82)
(78)
Sales of fixed maturities available for sale
6,873 
11,868 
Sales of equity securities
104 
932 
Maturities and redemptions of fixed maturities available for sale
5,156 
3,910 
Maturities and redemptions of fixed maturities held to maturity
408 
443 
Net change in short-term investments
188 
3,882 
Net derivative instruments settlements
(122)
(83)
Acquisition of subsidiaries (net of cash acquired of nil and $71)
 
34 
Capital contribution
 
(2,330)
Other
(123)
84 
Net cash flows from (used for) investing activities
(65)
1,547 
Dividends paid on Common Shares
0 
0 
Common Shares repurchased
(475)
 
Repayment of long-term debt
0 
 
Proceeds from issuance of repurchase agreements
1,343 
904 
Repayments of repurchase agreements
(1,338)
(902)
Proceeds from share-based compensation plans
89 
92 
Dividend to Parent Company
(2,041)
(7,372)
Advances (to) from affiliates
64 
26 
Capital contribution
 
2,330 
Net proceeds from (payments to) affiliated notional cash pooling program
0 1
0 3
Policyholder contract deposits
209 
274 
Policyholder contract withdrawals
(125)
(103)
Other
 
0 
Net cash flows used for financing activities
(2,274)
(4,751)
Effect of foreign currency rate changes on cash and cash equivalents
11 
24 
Net increase (decrease) in cash
(642)
(918)
Cash – beginning of period
1,965 1 2
2,743 3
Cash – end of period
1,323 1 4
1,825 3
Consolidation, Eliminations [Member]
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
(2,041)
(7,372)
Purchases of fixed maturities available for sale
0 
0 
Purchases of fixed maturities held to maturity
0 
0 
Purchases of equity securities
0 
0 
Sales of fixed maturities available for sale
0 
0 
Sales of equity securities
0 
0 
Maturities and redemptions of fixed maturities available for sale
0 
0 
Maturities and redemptions of fixed maturities held to maturity
0 
0 
Net change in short-term investments
0 
0 
Net derivative instruments settlements
0 
0 
Acquisition of subsidiaries (net of cash acquired of nil and $71)
 
0 
Capital contribution
 
4,660 
Other
0 
0 
Net cash flows from (used for) investing activities
0 
4,660 
Dividends paid on Common Shares
0 
0 
Common Shares repurchased
0 
 
Repayment of long-term debt
0 
 
Proceeds from issuance of repurchase agreements
0 
0 
Repayments of repurchase agreements
0 
0 
Proceeds from share-based compensation plans
0 
0 
Dividend to Parent Company
2,041 
7,372 
Advances (to) from affiliates
0 
0 
Capital contribution
 
(4,660)
Net proceeds from (payments to) affiliated notional cash pooling program
789 1
(51)
Policyholder contract deposits
0 
0 
Policyholder contract withdrawals
0 
0 
Other
 
0 
Net cash flows used for financing activities
2,830 
2,661 
Effect of foreign currency rate changes on cash and cash equivalents
0 
0 
Net increase (decrease) in cash
789 
(51)
Cash – beginning of period
(982)1 2
(971)3
Cash – end of period
$ (193)1 4
$ (1,022)3
Information provided in connection with outstanding debt of subsidiaries Parenthetical (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
Cash Acquired from Acquisition
$ 0 
$ 71