CHUBB LTD, 10-Q filed on 11/3/2016
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2016
Oct. 21, 2016
Entity Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q3 
 
Trading Symbol
CB 
 
Entity Registrant Name
Chubb Ltd 
 
Entity Central Index Key
0000896159 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Common Shares Outstanding
 
465,339,149 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Investments [Abstract]
 
 
Fixed maturities available for sale, at fair value (amortized cost - $78,630 and $43,149) (includes hybrid financial instruments of $5 and $31)
$ 81,358 
$ 43,587 
Fixed maturities held to maturity, at amortized cost (fair value – $11,366 and $8,552)
10,927 
8,430 
Equity securities, at fair value (cost – $695 and $441)
803 
497 
Short-term investments, at fair value and amortized cost
3,548 
10,446 
Other investments (cost – $4,170 and $2,993)
4,400 
3,291 
Total investments
101,036 
66,251 
Cash
870 1 2
1,775 1 3
Securities lending collateral
1,140 
1,046 
Accrued investment income
915 
513 
Insurance and reinsurance balances receivable
8,493 
5,323 
Reinsurance recoverable on losses and loss expenses
13,448 
11,386 
Reinsurance recoverable on policy benefits
195 
187 
Deferred policy acquisition costs
4,238 
2,873 
Value of business acquired
368 
395 
Goodwill
15,481 
4,796 
Other intangible assets
6,991 
887 
Prepaid reinsurance premiums
2,449 
2,082 
Deferred tax assets
0 
318 
Investments in partially-owned insurance companies
665 
653 
Other assets
5,521 
3,821 
Total assets
161,810 
102,306 
Liabilities
 
 
Unpaid losses and loss expenses
61,347 
37,303 
Unearned premiums
15,054 
8,439 
Future policy benefits
5,010 
4,807 
Insurance and reinsurance balances payable
4,885 
4,270 
Securities lending payable
1,141 
1,047 
Accounts payable, accrued expenses, and other liabilities
9,748 
6,205 
Deferred tax liabilities
1,418 
0 
Repurchase agreements
1,406 
1,404 
Short-term debt
500 
0 
Long-term debt
12,621 
9,389 
Trust preferred securities
308 
307 
Total liabilities
113,438 
73,171 
Commitments and contingencies
   
   
Shareholders’ equity
 
 
Common Shares (CHF 24.15 par value; 479,783,864 and 342,832,412 shares issued; 465,286,110 and 324,563,441 shares outstanding)
11,121 
7,833 
Common Shares in treasury (14,497,754 and 18,268,971 shares)
(1,550)
(1,922)
Additional paid-in capital
15,601 
4,481 
Retained earnings
22,003 
19,478 
Accumulated other comprehensive income (loss) (AOCI)
1,197 
(735)
Total shareholders’ equity
48,372 
29,135 
Total liabilities and shareholders’ equity
$ 161,810 
$ 102,306 
Consolidated Balance Sheets (Parenthetical)
In Millions, except Share data, unless otherwise specified
Sep. 30, 2016
USD ($)
Sep. 30, 2016
CHF
Dec. 31, 2015
USD ($)
Dec. 31, 2015
CHF
Statement of Financial Position [Abstract]
 
 
 
 
Available for sale, at amortized cost
$ 78,630 
 
$ 43,149 
 
Fixed maturities available for sale, hybrid financial instruments
5 
 
31 
 
Held to maturity, at Fair Value
11,366 
 
8,552 
 
Equity securities, at cost
695 
 
441 
 
Other investments, cost
$ 4,170 
 
$ 2,993 
 
Common Shares, par value
 
 24.15 
 
 24.15 
Common Shares, shares issued
479,783,864 
479,783,864 
342,832,412 
342,832,412 
Common Shares, shares outstanding
465,286,110 
465,286,110 
324,563,441 
324,563,441 
Common Shares in treasury, shares
14,497,754 
14,497,754 
18,268,971 
18,268,971 
Consolidated Statements Of Operations and Comprehensive Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues
 
 
 
 
Net premiums written
$ 7,573 
$ 4,709 
$ 21,207 
$ 13,569 
Decrease (increase) in unearned premiums
115 
10 
483 
(563)
Net premiums earned
7,688 
4,719 
21,690 
13,006 
Net investment income
739 
549 
2,121 
1,662 
Net Realized Gains Losses [Abstract]
 
 
 
 
Other-than-temporary impairment (OTTI) losses gross
(12)
(35)
(99)
(62)
Portion of OTTI losses recognized in other comprehensive income (OCI)
0 
5 
8 
11 
Net OTTI losses recognized in income
(12)
(30)
(91)
(51)
Net realized gains (losses) excluding OTTI losses
112 
(367)
(419)
(309)
Total net realized gains (losses) (includes $33, $(49), $(117), and $(18) reclassified from AOCI)
100 
(397)
(510)
(360)
Total revenues
8,527 
4,871 
23,301 
14,308 
Expenses
 
 
 
 
Losses and loss expenses
4,269 
2,643 
12,197 
7,182 
Policy benefits
155 
89 
427 
384 
Policy acquisition costs
1,514 
771 
4,487 
2,205 
Administrative expenses
772 
568 
2,373 
1,700 
Interest expense
152 
68 
451 
207 
Other (income) expense
(91)
12 
(92)
(61)
Amortization of purchased intangibles
4 
51 
16 
136 
Chubb integration expenses
115 
9 
361 
9 
Total expenses
6,890 
4,211 
20,220 
11,762 
Income before income tax
1,637 
660 
3,081 
2,546 
Income tax expense (includes $11, $(4), $16 and $10 on reclassified unrealized gains and losses)
277 
132 
556 
395 
Net income
1,360 
528 
2,525 
2,151 
Other comprehensive income (loss)
 
 
 
 
Unrealized appreciation (depreciation)
247 
(321)
2,099 
(696)
Reclassification adjustment for net realized (gains) losses included in net income
(33)
49 
117 
18 
Unrealized appreciation (Depreciation) after reclassification adjustment
214 
(272)
2,216 
(678)
Change in:
 
 
 
 
Cumulative translation adjustment
(124)
(575)
269 
(860)
Pension liability
5 
3 
8 
10 
Other comprehensive income (loss), before income tax
95 
(844)
2,493 
(1,528)
Income tax (expense) benefit related to OCI items
(79)
45 
(561)
145 
Other comprehensive income (loss)
16 
(799)
1,932 
(1,383)
Comprehensive income (loss)
1,376 
(271)
4,457 
768 
Earnings per share
 
 
 
 
Basic earnings per share
$ 2.90 
$ 1.63 
$ 5.48 
$ 6.60 
Diluted earnings per share
$ 2.88 
$ 1.62 
$ 5.44 
$ 6.53 
The Chubb Corporation [Member]
 
 
 
 
Expenses
 
 
 
 
Chubb integration expenses
 
$ 9 
 
 
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Total net realized gains (losses) reclassified from AOCI
$ 33 
$ (49)
$ (117)
$ (18)
Income tax expense on reclassified unrealized gains and loses
$ 11 
$ (4)
$ 16 
$ 10 
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions
Total
The Chubb Corporation [Member]
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 Translation Adjustment [Member]
Pension Liability Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Balance - beginning of period at Dec. 31, 2014
 
 
$ 8,055 
 
$ (1,448)
$ 5,145 
 
$ 16,644 
$ 1,851 
$ (581)
$ (79)
 
Shares Issued for Chubb Corp Acquisition
 
 
0 
 
 
 
0 
 
 
 
 
 
Dividends declared on Common Shares – par value reduction
 
 
(222)
 
 
 
 
 
 
 
 
 
Common Shares repurchased
 
 
 
 
(734)
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
 
 
208 
(157)
0 
 
 
 
 
 
Exercise of stock options
 
 
 
 
 
(43)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
 
 
155 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
 
 
(435)
 
 
 
 
 
 
Net income
2,151 
 
 
 
 
 
 
2,151 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
 
 
435 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
 
 
(435)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $(559) and $102
 
 
 
 
 
 
 
 
(594)
 
 
 
Amounts reclassified from AOCI, net of income tax benefit of $16 and $10
 
 
 
 
 
 
 
 
28 
 
 
 
Change in period, net of income tax benefit (expense) of $(543) and $112
 
 
 
 
 
 
 
 
(566)
 
 
 
Change in period, net of income tax benefit (expense) of $(18) and $35
 
 
 
 
 
 
 
 
 
(825)
 
 
Change in period, net of income tax expense of nil and $(2)
 
 
 
 
 
 
 
 
 
 
8 
 
Balance - end of period at Sep. 30, 2015
29,127 
 
7,833 
 
(1,974)
4,665 
 
18,795 
1,285 
(1,406)
(71)
(192)
Balance - beginning of period at Dec. 31, 2015
29,135 
 
7,833 
 
(1,922)
4,481 
 
19,478 
874 
(1,539)
(70)
 
Shares Issued for Chubb Corp Acquisition
 
 
 
3,288 
 
 
11,916 
 
 
 
 
 
Dividends declared on Common Shares – par value reduction
 
 
0 
 
 
 
 
 
 
 
 
 
Common Shares repurchased
 
 
 
 
0 
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
 
 
372 
(365)
323 
 
 
 
 
 
Exercise of stock options
 
 
 
 
 
(44)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
 
 
250 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
 
 
(960)
 
 
 
 
 
 
Net income
2,525 
 
 
 
 
 
 
2,525 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
 
 
960 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
 
 
(960)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $(559) and $102
 
 
 
 
 
 
 
 
1,540 
 
 
 
Amounts reclassified from AOCI, net of income tax benefit of $16 and $10
 
 
 
 
 
 
 
 
133 
 
 
 
Change in period, net of income tax benefit (expense) of $(543) and $112
 
 
 
 
 
 
 
 
1,673 
 
 
 
Change in period, net of income tax benefit (expense) of $(18) and $35
 
 
 
 
 
 
 
 
 
251 
 
 
Change in period, net of income tax expense of nil and $(2)
 
 
 
 
 
 
 
 
 
 
8 
 
Balance - end of period at Sep. 30, 2016
$ 48,372 
 
$ 11,121 
 
$ (1,550)
$ 15,601 
 
$ 22,003 
$ 2,547 
$ (1,288)
$ (62)
$ 1,197 
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Statement Consolidated Statements Of Shareholders Equity [Abstract]
 
 
Change in year, before reclassification from AOCI, net of income tax benefit(expense)
$ (559)
$ 102 
Income tax benefit (expense) from reclassification of unrealized gains
16 
10 
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit
(543)
112 
Cumulative translation adjustment, Change in period, income tax(expense) benefit
(18)
35 
Net income
2,525 
2,151 
Pension liability adjustment, Change in period, income tax (expense) benefit
$ 0 
$ (2)
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities
 
 
Net income
$ 2,525 
$ 2,151 
Adjustments to reconcile net income to net cash flows from operating activities
 
 
Net realized (gains) losses
510 
360 
Amortization of premiums/discounts on fixed maturities
558 
115 
Amortization of UPR related to the Chubb Corp acquisition
1,415 
0 
Deferred income taxes
(13)
53 
Unpaid losses and loss expenses
916 
(225)
Unearned premiums
(547)
353 
Future policy benefits
129 
157 
Insurance and reinsurance balances payable
149 
219 
Accounts payable, accrued expenses, and other liabilities
(109)
(179)
Income taxes payable
308 
(8)
Insurance and reinsurance balances receivable
(201)
15 
Reinsurance recoverable on losses and loss expenses
(241)
421 
Reinsurance recoverable on policy benefits
(6)
20 
Deferred policy acquisition costs
(1,316)
(354)
Prepaid reinsurance premiums
33 
(182)
Other
(273)
(217)
Net cash flows from operating activities
3,837 
2,699 
Cash flows from investing activities
 
 
Purchases of fixed maturities available for sale
(23,837)
(13,029)
Purchases of to be announced mortgage-backed securities
0 
(31)
Purchases of fixed maturities held to maturity
(189)
(39)
Purchases of equity securities
(100)
(122)
Sales of fixed maturities available for sale
13,863 
5,202 
Sales of to be announced mortgage-backed securities
0 
31 
Sales of equity securities
963 
150 
Maturities and redemptions of fixed maturities available for sale
6,936 
5,257 
Maturities and redemptions of fixed maturities held to maturity
627 
552 
Net change in short-term investments
11,866 
421 
Net derivative instruments settlements
(181)
62 
Acquisition of subsidiaries (net of cash acquired of $71 and $620)
(14,248)
259 
Other
26 
(138)
Net cash flows used for investing activities
(4,274)
(1,425)
Cash flows from financing activities
 
 
Dividends paid on Common Shares
(851)
(644)
Common Shares repurchased
0 
(758)
Proceeds from issuance of long-term debt
0 
800 
Proceeds from issuance of repurchase agreements
1,457 
1,478 
Repayment of long-term debt
0 
(451)
Repayment of repurchase agreements
(1,455)
(1,477)
Proceeds from share-based compensation plans, including windfall tax benefits
117 
89 
Policyholder contract deposits
473 
351 
Policyholder contract withdrawals
(247)
(159)
Other
(4)
(6)
Net cash flows used for financing activities
(510)
(777)
Effect of foreign currency rate changes on cash and cash equivalents
42 
(114)
Net (decrease) increase in cash
(905)
383 
Cash – beginning of period
1,775 1 2
655 3
Cash – end of period
870 1 4
1,038 3
Supplemental cash flow information
 
 
Taxes paid
360 
355 
Interest paid
$ 390 
$ 188 
Consolidated Statements of Cash Flows (Parentheticals) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Statement of Cash Flows [Abstract]
 
 
Cash Acquired from Acquisition
$ 71 
$ 620 
General
General
General

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

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Effective the first quarter of 2016, our results are reported through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. This reflects our significantly larger and expanded operations subsequent to our acquisition of Chubb Corp. We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of our run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years, and certain run-off exposures. Prior period amounts of Chubb Limited (i.e., excluding the historical results of Chubb Corp) contained in this report have been adjusted to conform to the new segment presentation. Refer to Note 12 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 of Chubb Corp are included from the acquisition date forward (i.e., after January 14, 2016). 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 2015 Form 10-K.

b) Accounting guidance adopted in 2016

Presentation of Debt Issuance Costs
In April 2015, the Financial Accounting Standard Board (FASB) issued new guidance related to the accounting for debt issuance costs. The new guidance requires presentation of debt issuance costs in the Consolidated balance sheets as a reduction of the carrying amount of the related debt liability instead of as a deferred charge. We retrospectively adopted this guidance effective January 1, 2016 and reclassified $60 million of debt issuance costs from Other assets to Long term debt ($58 million) and Trust preferred securities ($2 million) as of December 31, 2015.
 
c) Accounting guidance not yet adopted

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

Short-Duration Contracts
In May 2015, the FASB issued guidance that requires additional disclosures for short-duration insurance contracts. New disclosure will be required to provide more information about initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The guidance is effective for us beginning with our 2016 annual reporting on Form 10-K. The guidance requires a change in disclosure only and adoption of this guidance will not have an impact on our financial condition or results of operations.

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

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

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

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

Stock Compensation
In March 2016, the FASB issued guidance which requires recognition of the excess tax benefits or deficiencies of awards through net income rather than through additional paid in capital. Additionally, entities can elect to account for forfeitures related to share-based payments either as they occur or through an estimation method. If elected, the change to recognize forfeitures as they occur would be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to retained earnings. The updated guidance is effective for us in the first quarter of 2017 with early adoption permitted. Adoption of this guidance is not expected to have a material impact on our financial condition and results of operations.

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

The Chubb Corporation
On January 14, 2016, we completed the acquisition of Chubb Corp, a leading provider of middle-market commercial, specialty, surety, and personal insurance for $29.5 billion, comprising $14.3 billion in cash and $15.2 billion in newly-issued stock, based on the Chubb Limited (formerly ACE Limited) closing price on the acquisition date. In addition, we assumed outstanding equity awards to employees and directors with an attributed value of approximately $323 million. The total consideration, including the assumption of equity awards, was $29.8 billion. We financed the cash portion of the transaction through a combination of $9.0 billion sourced from various Chubb Limited and Chubb Corp companies plus $5.3 billion of senior notes, which were issued in November 2015. Refer to Note 7 for additional information on the senior notes.
   
Upon completion of the merger, each Chubb Corp common share (other than shares held by certain legacy Chubb Corp employee benefit plans) was canceled and converted, in accordance with the procedures set forth in the merger agreement, into the right to receive (i) 0.6019 of a Chubb Limited common share and (ii) $62.93 in cash. In addition, replacement equity awards were issued by Chubb Limited to the holders of Chubb Corp's outstanding equity awards (stock options, restricted stock units, deferred stock units, deferred unit obligations, and performance units).

We believe the Chubb Corp acquisition is highly complementary to our existing business lines, distribution channels, customer segments, and underwriting skills. Chubb Corp has a substantial presence in the U.S. with a broad variety of coverages serving large corporate and upper middle market accounts, middle market and small commercial accounts, and personal lines. Together we are one of the largest commercial insurers in the U.S. Internationally, where legacy ACE is a truly global insurer with extensive presence in 54 countries, Chubb Corp's operations in 25 markets added to our presence and capabilities and positioned us to better pursue important market opportunities globally. The combined company is a leader in a number of global specialty and traditional products such as professional lines, risk management, workers' compensation, accident and health (A&H), and other property and general casualty lines.
The table below details the purchase consideration and preliminary allocation of assets acquired and liabilities assumed. During the second and third quarters of 2016, we reassessed certain components of our preliminary estimates of assets acquired and liabilities assumed, including the net realizable value for Reinsurance recoverables on losses and loss expenses and Insurance and reinsurance balances receivable and certain components of the Deferred tax liabilities, which resulted in an adjustment to our preliminary estimates that increased Goodwill by $85 million. These estimates remain preliminary and are subject to adjustment. While they are not expected to be materially different than those shown, any material adjustments to the estimates will be reflected, retroactively, as of the date of the acquisition.
 
 
(in millions, except per share data)
 
Purchase consideration
 
Chubb Limited common shares
 
Chubb Corp common shares outstanding
228

Per share exchange ratio
0.6019

Common shares issued by Chubb Limited
137

Common share price of Chubb Limited at January 14, 2016
$
111.02

Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp
$
15,204

Cash consideration
 
Chubb Corp common shares outstanding
228

Agreed cash price per share paid to common shareholders of Chubb Corp
$
62.93

Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp
$
14,319

Stock-based awards
 
Fair value of equity awards issued (1)
$
323

Fair value of purchase consideration
$
29,846

Preliminary estimate of assets acquired and (liabilities) assumed
 
Cash
$
71

Investments
42,967

Accrued investment income
337

Insurance and reinsurance balances receivable
2,981

Reinsurance recoverable on losses and loss expenses
1,645

Indefinite lived intangible assets
2,860

Finite lived intangible assets
4,795

Prepaid reinsurance premiums
280

Other assets
865

Unpaid losses and loss expenses
(22,906
)
Unearned premiums
(7,033
)
Insurance and reinsurance balances payable
(511
)
Accounts payable, accrued expenses, and other liabilities
(1,935
)
Deferred tax liabilities
(1,335
)
Long-term debt
(3,765
)
Total identifiable net assets acquired
19,316

Goodwill
10,530

Purchase price
$
29,846

(1) 
The estimated fair value of the replacement equity awards was $525 million, of which $323 million was attributed to service periods prior to the acquisition and was included in the purchase consideration. Refer to Note 10 for further information on these replacement equity awards.
Direct costs related to the Chubb Corp acquisition were expensed as incurred. Chubb integration expenses were $115 million and $361 million for the three and nine months ended September 30, 2016, respectively, and include all internal and external costs directly related to the integration activities of the Chubb Corp acquisition, consisting primarily of personnel-related expenses, including severance and employee retention and relocation; consulting fees; and advisor fees. Chubb integration expenses were $9 million for both the three and nine months ended September 30, 2015, consisting primarily of consulting and legal fees.
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, indefinite lived intangible assets of $2.9 billion and finite lived intangible assets of $4.8 billion, which will be amortized over their estimated useful lives, ranging from one to 24 years. Refer to Note 6 for additional information.

The following table summarizes the results of the acquired Chubb Corp operations since the acquisition date that have been included within our Consolidated statements of operations:
(in millions of U.S. dollars)
Three Months Ended September 30, 2016

 
January 14, 2016 to September 30, 2016

Total revenues
$
2,656

 
$
7,888

Net income
$
483

 
$
1,064



The following table provides supplemental unaudited pro forma consolidated information for the three and nine months ended September 30, 2016 and 2015, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
 
Three Months Ended
 
 
Nine Months Ended
 
 
September 30
 
 
September 30
 
(in millions of U.S. dollars, except per share data)
2016

 
2015

 
2016

 
2015

Total revenues
$
8,521

 
$
8,314

 
$
23,758

 
$
24,387

Net income
$
1,345

 
$
1,036

 
$
2,591

 
$
3,194

Earnings per share
 
 
 
 
 
 
 
Basic earnings per share
$
2.87

 
$
2.23

 
$
5.54

 
$
6.85

Diluted earnings per share
$
2.85

 
$
2.21

 
$
5.50

 
$
6.78



Total revenues and net income were higher for the three months ended September 30, 2016, compared to the prior year, principally driven by net realized gains in the current year compared to net realized losses last year, primarily in our variable annuity reinsurance business.  This increase was partially offset by merger-related underwriting actions in the current year, including the purchase of additional reinsurance, which lowered net premiums earned.

Total revenues and net income were lower for the nine months ended September 30, 2016, compared to the prior year, primarily reflecting the merger-related underwriting actions in the current year, as noted above, as well as higher net realized losses in the current year, primarily in our variable annuity reinsurance business.

Prior year acquisition

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

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

a) Fixed maturities
 
September 30, 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
$
2,626

 
$
84

 
$
(2
)
 
$
2,708

 
$
—

Foreign
21,499

 
1,057

 
(48
)
 
22,508

 
(9
)
Corporate securities
22,860

 
977

 
(64
)
 
23,773

 
(9
)
Mortgage-backed securities
13,083

 
383

 
(5
)
 
13,461

 
(1
)
States, municipalities, and political subdivisions
18,562

 
357

 
(11
)
 
18,908

 
—

 
$
78,630

 
$
2,858

 
$
(130
)
 
$
81,358

 
$
(19
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
709

 
$
26

 
$
—

 
$
735

 
$
—

Foreign
694

 
45

 
—

 
739

 
—

Corporate securities
2,852

 
131

 
(2
)
 
2,981

 
—

Mortgage-backed securities
1,507

 
72

 
—

 
1,579

 
—

States, municipalities, and political subdivisions
5,165

 
167

 
—

 
5,332

 
—

 
$
10,927

 
$
441

 
$
(2
)
 
$
11,366

 
$
—


December 31, 2015
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,481

 
$
52

 
$
(5
)
 
$
2,528

 
$
—

Foreign
13,190

 
468

 
(213
)
 
13,445

 
(13
)
Corporate securities
15,028

 
355

 
(454
)
 
14,929

 
(28
)
Mortgage-backed securities
9,827

 
183

 
(52
)
 
9,958

 
(1
)
States, municipalities, and political subdivisions
2,623

 
110

 
(6
)
 
2,727

 
—

 
$
43,149

 
$
1,168

 
$
(730
)
 
$
43,587

 
$
(42
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
733

 
$
13

 
$
(1
)
 
$
745

 
$
—

Foreign
763

 
30

 
(8
)
 
785

 
—

Corporate securities
3,054

 
57

 
(55
)
 
3,056

 
—

Mortgage-backed securities
1,707

 
38

 
(2
)
 
1,743

 
—

States, municipalities, and political subdivisions
2,173

 
52

 
(2
)
 
2,223

 
—

 
$
8,430

 
$
190

 
$
(68
)
 
$
8,552

 
$
—



As discussed in Note 3 c), if a credit loss is incurred on an impaired fixed maturity, an OTTI is considered to have occurred and the portion of the impairment not related to credit losses (non-credit OTTI) is recognized in OCI. Included in the “OTTI Recognized in AOCI” columns above are the cumulative amounts of non-credit OTTI recognized in OCI adjusted for subsequent sales, maturities, and redemptions. OTTI recognized in AOCI does not include the impact of subsequent changes in fair value of the related securities. In periods subsequent to a recognition of OTTI in OCI, changes in the fair value of the related fixed maturities are reflected in Unrealized appreciation (depreciation) in the Consolidated statement of shareholders’ equity. For the three and nine months ended September 30, 2016, $13 million and $57 million, respectively, of net unrealized appreciation related to such securities is included in OCI. For the three and nine months ended September 30, 2015, $4 million and nil, respectively, of net unrealized depreciation related to such securities is included in OCI. At September 30, 2016, AOCI included cumulative net unrealized appreciation of $7 million related to securities remaining in the investment portfolio for which a non-credit OTTI was recognized. At December 31, 2015, AOCI included cumulative net unrealized depreciation of $35 million related to securities remaining in the investment portfolio for which a non-credit OTTI was recognized.

Mortgage-backed securities (MBS) issued by U.S. government agencies are combined with all other to be announced mortgage derivatives held (refer to Note 8 c) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 81 percent of the total mortgage-backed securities at both September 30, 2016 and December 31, 2015 are represented by investments in U.S. government agency bonds. The remainder of the mortgage exposure consists of collateralized mortgage obligations and non-government mortgage-backed securities, the majority of which provide a planned structure for principal and interest payments and carry a rating of AAA by the major credit rating agencies.

The following table presents fixed maturities by contractual maturity:
 
 
 
September 30

 
 
 
December 31

 
 
 
2016

 
 
 
2015

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

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
3,402

 
$
3,413

 
$
1,856

 
$
1,865

Due after 1 year through 5 years
25,152

 
25,865

 
14,936

 
15,104

Due after 5 years through 10 years
26,702

 
27,645

 
12,258

 
12,173

Due after 10 years
10,291

 
10,974

 
4,272

 
4,487

 
65,547

 
67,897

 
33,322

 
33,629

Mortgage-backed securities
13,083

 
13,461

 
9,827

 
9,958

 
$
78,630

 
$
81,358

 
$
43,149

 
$
43,587

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
458

 
$
462

 
$
492

 
$
495

Due after 1 year through 5 years
2,716

 
2,807

 
2,443

 
2,517

Due after 5 years through 10 years
2,815

 
2,919

 
2,292

 
2,313

Due after 10 years
3,431

 
3,599

 
1,496

 
1,484

 
9,420

 
9,787

 
6,723

 
6,809

Mortgage-backed securities
1,507

 
1,579

 
1,707

 
1,743

 
$
10,927

 
$
11,366

 
$
8,430

 
$
8,552



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

b) Equity securities

September 30


December 31

(in millions of U.S. dollars)
2016


2015

Cost
$
695

 
$
441

Gross unrealized appreciation
122

 
74

Gross unrealized depreciation
(14
)
 
(18
)
Fair value
$
803

 
$
497



c) Net realized gains (losses)
In accordance with guidance related to the recognition and presentation of OTTI, when an impairment related to a fixed maturity has occurred, OTTI is required to be recorded in Net income if management has the intent to sell the security or it is more likely than not that we will be required to sell the security before the recovery of its amortized cost. Further, in cases where we do not intend to sell the security and it is more likely than not that we will not be required to sell the security, Chubb 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 sheet, we employ analysis similar to fixed maturities, when applicable.

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.

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 nine months ended September 30, 2016, credit losses recognized in Net income for corporate securities were $4 million and $28 million, respectively. For the three and nine months ended September 30, 2015, credit losses recognized in Net income for corporate securities were $14 million and $23 million, respectively.

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 both the three and nine months ended September 30, 2016, there were $1 million in credit losses recognized in Net income for mortgage-backed securities. For the three and nine months ended September 30, 2015, 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
 
Nine Months Ended
 
 
September 30
 
September 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Fixed maturities:
 
 
 
 
 
 
OTTI on fixed maturities, gross
$
(7
)
 
$
(31
)
$
(85
)
 
$
(57
)
OTTI on fixed maturities recognized in OCI (pre-tax)
—

 
5

8

 
11

OTTI on fixed maturities, net
(7
)
 
(26
)
(77
)

(46
)
Gross realized gains excluding OTTI
47

 
19

149

 
91

Gross realized losses excluding OTTI
(13
)
 
(44
)
(228
)
 
(95
)
Total fixed maturities
27

 
(51
)
(156
)

(50
)
Equity securities:
 
 
 
 
 
 
OTTI on equity securities
(1
)
 
(3
)
(7
)
 
(4
)
Gross realized gains excluding OTTI
19

 
10

63

 
43

Gross realized losses excluding OTTI
(12
)
 
(5
)
(17
)
 
(7
)
Total equity securities
6

 
2

39


32

OTTI on other investments
(4
)
 
(1
)
(7
)
 
(1
)
Foreign exchange gains (losses)
29

 
(2
)
46

 
(73
)
Investment and embedded derivative instruments
1

 
(22
)
(85
)
 
6

Fair value adjustments on insurance derivative
89

 
(396
)
(270
)
 
(337
)
S&P put options and futures
(45
)
 
83

(88
)
 
69

Other derivative instruments
3

 
(9
)
1

 
(10
)
Other
(6
)
 
(1
)
10

 
4

Net realized gains (losses)
$
100

 
$
(397
)
$
(510
)

$
(360
)

 
The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI: 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30
 
September 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Balance of credit losses related to securities still held – beginning of period
$
51

 
$
23

$
53

 
$
28

Additions where no OTTI was previously recorded
4

 
8

16

 
15

Additions where an OTTI was previously recorded
1

 
6

13

 
8

Reductions for securities sold during the period
(11
)
 
(5
)
(37
)
 
(19
)
Balance of credit losses related to securities still held – end of period
$
45

 
$
32

$
45


$
32



d) Gross unrealized loss
At September 30, 2016, there were 3,376 fixed maturities out of a total of 31,902 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $2 million. There were 73 equity securities out of a total of 326 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $3 million. Fixed maturities in an unrealized loss position at September 30, 2016, comprised both investment grade and below investment grade securities for which fair value declined primarily due to widening credit spreads since the date of purchase.

The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
September 30, 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
$
436

 
$
(2
)
 
$
—

 
$
—

 
$
436

 
$
(2
)
Foreign
1,899

 
(20
)
 
409

 
(28
)
 
2,308

 
(48
)
Corporate securities
1,559

 
(21
)
 
750

 
(45
)
 
2,309

 
(66
)
Mortgage-backed securities
1,039

 
(3
)
 
292

 
(2
)
 
1,331

 
(5
)
States, municipalities, and political subdivisions
2,807

 
(10
)
 
50

 
(1
)
 
2,857

 
(11
)
Total fixed maturities
7,740

 
(56
)
 
1,501

 
(76
)
 
9,241

 
(132
)
Equity securities
133

 
(14
)
 
—

 
—

 
133

 
(14
)
Other investments
233

 
(27
)
 
—

 
—

 
233

 
(27
)
Total
$
8,106

 
$
(97
)
 
$
1,501

 
$
(76
)
 
$
9,607

 
$
(173
)
 
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2015
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
996

 
$
(5
)
 
$
153

 
$
(1
)
 
$
1,149

 
$
(6
)
Foreign
3,953

 
(148
)
 
436

 
(73
)
 
4,389

 
(221
)
Corporate securities
7,518

 
(371
)
 
738

 
(138
)
 
8,256

 
(509
)
Mortgage-backed securities
3,399

 
(42
)
 
516

 
(12
)
 
3,915

 
(54
)
States, municipalities, and political subdivisions
556

 
(6
)
 
42

 
(2
)
 
598

 
(8
)
Total fixed maturities
16,422

 
(572
)
 
1,885

 
(226
)
 
18,307

 
(798
)
Equity securities
131

 
(18
)
 
—

 
—

 
131

 
(18
)
Other investments
210

 
(11
)
 
—

 
—

 
210

 
(11
)
Total
$
16,763

 
$
(601
)
 
$
1,885

 
$
(226
)
 
$
18,648

 
$
(827
)


e) Restricted assets
Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. Chubb is also required to restrict assets pledged under repurchase agreements, which represent Chubb's agreement to sell securities and repurchase them at a future date for a predetermined price. We also use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We also have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets at September 30, 2016 and December 31, 2015, are investments, primarily fixed maturities, totaling $19.4 billion and $16.9 billion, respectively, and cash of $162 million and $110 million, respectively.
The following table presents the components of restricted assets:
 
September 30

 
December 31

(in millions of U.S. dollars)
2016

 
2015

Trust funds
$
13,093

 
$
11,862

Deposits with non-U.S. regulatory authorities
2,338

 
2,075

Deposits with U.S. regulatory authorities
2,232

 
1,242

Assets pledged under repurchase agreements
1,464

 
1,459

Other pledged assets
433

 
392

 
$
19,560

 
$
17,030

Fair value measurements
Fair value measurements
Fair value measurements

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

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

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

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

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

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

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

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

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

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

Other derivative instruments
We generally maintain positions in other derivative instruments including exchange-traded equity futures contracts and option contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in reserves for our guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) reinsurance business. Our position in exchange-traded equity futures contracts is classified within Level 1. At September 30, 2016, we held no positions in option contracts on equity market indices. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. Other derivative instruments based on unobservable inputs are classified within Level 3. Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets.

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

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

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

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

GMIB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GMIB. All else equal, as GMIB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits.

The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established in line with data received from other ceding companies adjusted, as appropriate, with industry estimates. The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities. Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3. For the three and nine months ended September 30, 2016 and 2015, no material technical refinements were made to the model. For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2015 Form 10-K.

Financial instruments measured at fair value on a recurring basis, by valuation hierarchy
September 30, 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
$
2,155

 
$
553

 
$
—

 
$
2,708

Foreign
—

 
22,405

 
103

 
22,508

Corporate securities
—

 
23,167

 
606

 
23,773

Mortgage-backed securities
—

 
13,415

 
46

 
13,461

States, municipalities, and political subdivisions
—

 
18,908

 
—

 
18,908

 
2,155

 
78,448

 
755

 
81,358

Equity securities
766

 
—

 
37

 
803

Short-term investments
2,127

 
1,359

 
62

 
3,548

Other investments (1)
404

 
250

 
223

 
877

Securities lending collateral
—

 
1,140

 
—

 
1,140

Investment derivative instruments
20

 
—

 
—

 
20

Other derivative instruments
14

 
—

 
—

 
14

Separate account assets
1,743

 
97

 
—

 
1,840

Total assets measured at fair value (1)
$
7,229

 
$
81,294

 
$
1,077

 
$
89,600

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
34

 
$
—

 
$
—

 
$
34

Other derivative instruments
—

 
—

 
8

 
8

GLB (2)
—

 
—

 
883

 
883

Total liabilities measured at fair value
$
34

 
$
—

 
$
891

 
$
925

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,498 million and other investments of $25 million at September 30, 2016 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
 
December 31, 2015
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
1,712

 
$
816

 
$
—

 
$
2,528

Foreign
—

 
13,388

 
57

 
13,445

Corporate securities
—

 
14,755

 
174

 
14,929

Mortgage-backed securities
—

 
9,905

 
53

 
9,958

States, municipalities, and political subdivisions
—

 
2,727

 
—

 
2,727

 
1,712

 
41,591

 
284

 
43,587

Equity securities
481

 
—

 
16

 
497

Short-term investments
7,171

 
3,275

 
—

 
10,446

Other investments (1)
347

 
230

 
212

 
789

Securities lending collateral
—

 
1,046

 
—

 
1,046

Investment derivative instruments
12

 
—

 
—

 
12

Separate account assets
1,464

 
88

 
—

 
1,552

Total assets measured at fair value (1)
$
11,187

 
$
46,230

 
$
512

 
$
57,929

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
13

 
$
—

 
$
—

 
$
13

Other derivative instruments
4

 
—

 
6

 
10

GLB (2)
—

 
—

 
609

 
609

Total liabilities measured at fair value
$
17

 
$
—

 
$
615

 
$
632


(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,477 million and other investments of $25 million at December 31, 2015 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.

There were no transfers between Level 1 and Level 2 for the three and nine months ended September 30, 2016 and 2015.

Fair value of alternative investments
Alternative investments include investment funds, limited partnerships, and partially-owned investment companies measured at fair value using NAV as a practical expedient.

The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:
 
 
 
 
 
September 30

 
 
 
December 31

 
Expected
Liquidation
Period of Underlying Assets
 
 
 
2016

 
 
 
2015

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

 
Maximum
Future Funding
Commitments

 
Fair
Value

 
Maximum
Future Funding
Commitments

Financial
5 to 9 Years
 
$
549

 
$
188

 
$
300

 
$
105

Real Assets
3 to 7 Years
 
520

 
274

 
474

 
140

Distressed
5 to 9 Years
 
463

 
196

 
261

 
218

Private Credit
3 to 7 Years
 
241

 
294

 
265

 
209

Traditional
3 to 9 Years
 
1,458

 
999

 
895

 
152

Vintage
1 to 2 Years
 
23

 
14

 
13

 
—

Investment funds
Not Applicable
 
244

 
—

 
269

 
—

 
 
 
$
3,498

 
$
1,965

 
$
2,477

 
$
824



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

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

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

The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
(in millions of U.S. dollars, except for percentages)
Fair Value
 
 
Valuation
Technique
 
Significant
Unobservable Inputs
 
Ranges
September 30, 2016

 
December 31, 2015

 
 
 
GLB(1)
$
883

 
$
609

 
Actuarial model
 
Lapse rate
 
1% – 30%
 
 
 
 
 
 
 
Annuitization rate
 
0% – 55%
(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)

September 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance–Beginning of Period
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Transfers into Level 3
—

 
—

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
(1
)
 
6

 
—

 
3

—

4

 
—

—

Net Realized Gains/Losses
—

 
(4
)
 
—

 
—

—

—

 
—

(88
)
Purchases
20

 
348

 
—

 
—

12

8

 
—

—

Sales
(2
)
 
(18
)
 
(3
)
 
(3
)
—

—

 
—

—

Settlements
(1
)
 
(7
)
 
—

 
—

—

(5
)
 
(2
)
—

Balance–End of Period
$
103

 
$
606

 
$
46

 
$
37

$
62

$
223

 
$
8

$
883

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

 
$
(4
)
 
$
—

 
$
—

$
—

$
—

 
$
—

$
(88
)
(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.



  
 
Assets
 
 
 
 
Liabilities

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

 
Other
investments

 
Other derivative instruments

 
GLB(1)

September 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
56

 
$
167

 
$
55

 
$
2

 
$
214

 
$
3

 
$
347

Transfers into Level 3
 
1

 
2

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
 
1

 
1

 
—

 
2

 
(7
)
 
—

 
—

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

 
(1
)
 
—

 
4

 
397

Purchases
 
—

 
22

 
—

 
1

 
5

 
—

 
—

Sales
 
—

 
(5
)
 
(1
)
 
—

 
—

 
—

 
—

Settlements
 
(4
)
 
(3
)
 
—

 
—

 
(3
)
 
—

 
—

Balance–End of Period
 
$
53

 
$
183

 
$
54

 
$
4

 
$
209

 
$
7

 
$
744

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

 
$
—

 
$
(1
)
 
$
—

 
$
4

 
$
397

(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 $1.0 billion at September 30, 2015, and $615 million at June 30, 2015, which includes a fair value derivative adjustment of $744 million and $347 million, respectively.

 
 
 
 
 
 
 
 
 
Assets

 
Liabilities
 
Nine Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

September 30, 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
8

 
17

 
—

 
2

—

4

 
—

—

Net Realized Gains/Losses
(6
)
 
(12
)
 
—

 
1

—

—

 
2

274

Purchases (2)
52

 
472

 
1

 
23

62

22

 
2

—

Sales
(10
)
 
(48
)
 
(8
)
 
(5
)
—

—

 
—

—

Settlements
(5
)
 
(15
)
 
—

 
—

—

(15
)
 
(2
)
—

Balance–End of Period
$
103

 
$
606

 
$
46

 
$
37

$
62

$
223

 
$
8

$
883

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(5
)
 
$
(11
)
 
$
—

 
$
—

$
—

$
—

 
$
2

$
274

(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

  
 
Assets
 
 
 
Liabilities

Nine Months Ended
 
Available-for-Sale Debt Securities
 
 
 
 
Other investments

 
Other
derivative
instruments

GLB(1)

September 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
Equity
securities

 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
22

 
$
187

 
$
15

 
$
2

 
$
204

 
$
4

$
406

Transfers into Level 3
 
29

 
15

 
—

 
—

 
—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
 
(1
)
 
1

 
—

 
2

 
(7
)
 
—

—

Net Realized Gains/Losses
 
(1
)
 
(4
)
 
—

 
(2
)
 
—

 
3

338

Purchases
 
9

 
38

 
41

 
2

 
21

 
—

—

Sales
 
(1
)
 
(10
)
 
(1
)
 
—

 
—

 
—

—

Settlements
 
(4
)
 
(44
)
 
(1
)
 
—

 
(9
)
 
—

—

Balance–End of Period
 
$
53


$
183


$
54

 
$
4


$
209

 
$
7

$
744

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
(1
)
 
$
(2
)
 
$
—

 
$
(2
)
 
$
—

 
$
3

$
338

(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 $1.0 billion at September 30, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $744 million and $406 million, respectively.


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

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

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

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

The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
September 30, 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
$
628

 
$
107

 
$
—

 
$
735

 
$
709

Foreign
—

 
739

 
—

 
739

 
694

Corporate securities
—

 
2,968

 
13

 
2,981

 
2,852

Mortgage-backed securities
—

 
1,579

 
—

 
1,579

 
1,507

States, municipalities, and political subdivisions
—

 
5,332

 
—

 
5,332

 
5,165

Total assets
$
628

 
$
10,725

 
$
13

 
$
11,366

 
$
10,927

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,406

 
$
—

 
$
1,406

 
$
1,406

Short-term debt
—

 
508

 
—

 
508

 
500

Long-term debt
—

 
13,762

 
—

 
13,762

 
12,621

Trust preferred securities
—

 
463

 
—

 
463

 
308

Total liabilities
$
—

 
$
16,139

 
$
—

 
$
16,139

 
$
14,835


December 31, 2015
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
583

 
$
162

 
$
—

 
$
745

 
$
733

Foreign
—

 
785

 
—

 
785

 
763

Corporate securities
—

 
3,042

 
14

 
3,056

 
3,054

Mortgage-backed securities
—

 
1,743

 
—

 
1,743

 
1,707

States, municipalities, and political subdivisions
—

 
2,223

 
—

 
2,223

 
2,173

Total assets
$
583


$
7,955


$
14


$
8,552


$
8,430

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,404

 
$
—

 
$
1,404

 
$
1,404

Long-term debt
—

 
9,678

 
—

 
9,678

 
9,389

Trust preferred securities
—

 
446

 
—

 
446

 
307

Total liabilities
$
—

 
$
11,528

 
$
—

 
$
11,528

 
$
11,100

Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts
Assumed life reinsurance programs involving minimum benefit guarantees under variable annuity contracts

The following table presents income and expenses relating to GMDB and GLB reinsurance. GLBs include GMIBs as well as some GMABs originating in Japan.
 
Three Months Ended
 
 
Nine Months Ended
 
 
September 30
 
 
September 30
 
(in millions of U.S. dollars)
2016

 
2015

 
2016

 
2015

GMDB
 
 
 
 
 
 
 
Net premiums earned
$
15

 
$
15

 
$
42

 
$
47

Policy benefits and other reserve adjustments
$
11

 
$
5

 
$
34

 
$
25

GLB
 
 
 
 
 
 
 
Net premiums earned
$
28

 
$
30

 
$
88

 
$
92

Policy benefits and other reserve adjustments
9

 
15

 
24

 
34

Net realized gains (losses)
86

 
(397
)
 
(285
)
 
(338
)
Loss recognized in Net income
$
105

 
$
(382
)
 
$
(221
)
 
$
(280
)
Less: Net cash received
15

 
20

 
57

 
74

Net (increase) decrease in liability
$
90

 
$
(402
)
 
$
(278
)
 
$
(354
)


Net realized gains (losses) in the table above include gains (losses) related to foreign exchange and fair value adjustments on insurance derivatives and exclude gains (losses) on S&P put options and futures used to partially offset the risk in the GLB reinsurance portfolio. Refer to Note 8 for additional information.

The reported liability for GMDB reinsurance was $119 million and $117 million at September 30, 2016 and December 31, 2015, respectively. At September 30, 2016 and December 31, 2015, the reported liability for GLB reinsurance was $1.2 billion and $888 million, respectively, which includes a fair value derivative adjustment of $883 million and $609 million, respectively. Reported liabilities for both GMDB and GLB reinsurance are determined using internal valuation models. Such valuations require considerable judgment and are subject to significant uncertainty. The valuation of these products is subject to fluctuations arising from, among other factors, changes in interest rates, changes in equity markets, changes in credit markets, changes in the allocation of the investments underlying annuitants’ account values, and assumptions regarding future policyholder behavior. These models and the related assumptions are regularly reviewed by management and enhanced, as appropriate, based upon improvements in modeling assumptions and availability of updated information, such as market conditions and demographics of in-force annuities.
Goodwill and other intangible assets Goodwill and other intangible assets
Goodwill and Other Intangible Assets [Text Block]
Goodwill and Other intangible assets

At September 30, 2016 and December 31, 2015, Goodwill was $15.5 billion and $4.8 billion, respectively, and Other intangible assets were $7.0 billion and $887 million, respectively. The increases in Goodwill and Other intangible assets reflect the goodwill and intangible assets recorded in connection with the Chubb Corp acquisition.

The following table presents a roll-forward of Goodwill by segment for the nine months ended September 30, 2016:
(in millions of U.S. dollars)
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global Reinsurance

 
Life Insurance

 
Chubb Consolidated

Balance at December 31, 2015
$
1,203

 
$
196

 
$
134

 
$
2,078

 
$
365

 
$
820

 
$
4,796

Acquisition of Chubb Corp
5,711

 
2,025

 
—

 
2,794

 
—

 
—

 
10,530

Foreign exchange revaluation
43

 
13

 
—

 
98

 
—

 
1

 
155

Balance at September 30, 2016
$
6,957

 
$
2,234

 
$
134

 
$
4,970

 
$
365

 
$
821

 
$
15,481


 
The preliminary purchase price allocation to intangible assets recorded in connection with the Chubb Corp acquisition and their related useful lives are as follows:
(in millions of U.S. dollars)
Preliminary purchase price allocation

 
Estimated useful life
Definite life
 
 
 
Unearned premium reserves (UPR) intangible asset
$
1,550

 
1 year
Agency distribution relationships and renewal rights
3,150

 
24 years
Internally developed technology
95

 
3 years
Indefinite life
 
 
 
Trademarks
2,800

 
Indefinite
Licenses
50

 
Indefinite
Syndicate capacity
10

 
Indefinite
Total identified intangible assets
$
7,655

 
 


Additionally, in connection with the Chubb Corp acquisition, we recorded an increase to Unpaid losses and loss expenses acquired as part of Chubb Corp of $715 million to adjust the carrying value of Chubb Corp's historical unpaid losses and loss expenses to fair value as of the acquisition date. The estimated fair value consists of the present value of the expected net unpaid loss and loss adjustment expenses payments adjusted for an estimated risk margin. The expected cash flows are discounted at a risk free rate. The estimated risk margin varies based on the inherent risks associated with each type of reserve. This fair value adjustment was recorded within Unpaid losses and loss expenses on the Consolidated balance sheets and will amortize through Amortization of purchased intangibles on the Consolidated statements of operations over a range of 5 to 17 years, based on the estimated payout patterns of unpaid loss and loss expenses as of the acquisition date.

The following table presents, as of September 30, 2016, the expected estimated pre-tax amortization expense (benefit), at current foreign currency exchange rates, for the fourth quarter of 2016 and the next five years, related to purchased intangibles as well as the fair value adjustment to Unpaid losses and loss expenses described above:
 
Associated with the Chubb Corp Acquisition
 
 
 
 
 
For the Year Ending December 31
(in millions of U.S. dollars)
Agency distribution relationships and renewal rights

 
Internally developed technology

 
Fair value adjustment to Unpaid losses and loss expenses

 
Total

 
Other intangible assets

 
Total Amortization of purchased intangibles

Fourth quarter of 2016
$
33

 
$
8

 
$
(61
)
 
$
(20
)
 
$
23

 
$
3

2017
296

 
32

 
(161
)
 
167

 
85

 
252

2018
324

 
32

 
(102
)
 
254

 
73

 
327

2019
281

 
—

 
(62
)
 
219

 
66

 
285

2020
240

 
—

 
(36
)
 
204

 
59

 
263

2021
217

 
—

 
(20
)
 
197

 
53

 
250

Total
$
1,391

 
$
72

 
$
(442
)
 
$
1,021

 
$
359

 
$
1,380



The expected amortization, at current foreign currency exchange rates, for the remainder of the UPR intangible asset which amortizes through Policy acquisition costs on the Consolidated statements of operations is $144 million for the fourth quarter of 2016.
Debt
Debt Disclosure [Text Block]
Debt
In connection with the Chubb Corp acquisition, Chubb INA Holdings Inc. (formerly ACE INA Holdings Inc.) assumed $3.3 billion par value outstanding debt of Chubb Corp, fair valued at $3.8 billion at the acquisition date. Chubb INA Holdings Inc. (Chubb INA) assumed Chubb Corp's rights, duties and obligations and Chubb Limited fully and unconditionally guarantees Chubb INA's payment obligations under these debts. Additionally, during the first quarter of 2016 we adopted new guidance that required debt issuance costs be recorded as a reduction of the carrying amount of the related debt liability (these costs were previously included in Other assets on the Consolidated balance sheets). The debt balances at December 31, 2015 have been updated to reflect the adoption of this guidance.
 
September 30

 
December 31

 
 
(in millions of U.S. dollars)
2016

 
2015

 
Early Redemption Option
Repurchase agreements (weighted average interest rate of 0.8% in 2016 and 0.6% in 2015)
$
1,406

 
$
1,404

 
None
Short-term debt
 
 
 
 
 
Chubb INA senior notes:
 
 
 
 
 
$500 million 5.7% due February 2017
$
500

 
$
—

 
Make-whole premium plus 0.20%
Long-term debt
 
 
 
 
 
Chubb INA senior notes:
 
 
 
 
 
$500 million 5.7% due February 2017
$
—

 
$
500

 
Make-whole premium plus 0.20%
$300 million 5.8% due March 2018
300

 
299

 
Make-whole premium plus 0.35%
$600 million 5.75% due May 2018
641

 
—

 
Make-whole premium plus 0.30%
$100 million 6.6% due August 2018
109

 
—

 
None
$500 million 5.9% due June 2019
498

 
497

 
Make-whole premium plus 0.40%
$1,300 million 2.3% due November 2020
1,294

 
1,294

 
Make-whole premium plus 0.15%
$1,000 million 2.875% due November 2022
994

 
994

 
Make-whole premium plus 0.20%
$475 million 2.7% due March 2023
471

 
471

 
Make-whole premium plus 0.10%
$700 million 3.35% due May 2024
694

 
694

 
Make-whole premium plus 0.15%
$800 million 3.15% due March 2025
794

 
794

 
Make-whole premium plus 0.15%
$1,500 million 3.35% due May 2026
1,488

 
1,487

 
Make-whole premium plus 0.20%
$100 million 8.875% due August 2029
100

 
100

 
None
$200 million 6.8% due November 2031
258

 
—

 
Make-whole premium plus 0.25%
$300 million 6.7% due May 2036
297

 
297

 
Make-whole premium plus 0.20%
$800 million 6.0% due May 2037
982

 
—

 
Make-whole premium plus 0.20%
$600 million 6.5% due May 2038
778

 
—

 
Make-whole premium plus 0.30%
$475 million 4.15% due March 2043
469

 
469

 
Make-whole premium plus 0.15%
$1,500 million 4.35% due November 2045
1,482

 
1,482

 
Make-whole premium plus 0.25%
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
961

 
—

 
Make-whole premium plus 0.25%-0.50%
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020)
11

 
11

 
None
Total long-term debt
$
12,621

 
$
9,389

 
 
Trust preferred securities
 
 
 
 
 
Chubb INA capital securities due April 2030
$
308

 
$
307

 
Redemption prices(2)
(1) 
6.375% interest rate through April 14, 2017; interest rate equal to three month LIBOR rate plus 2.25% thereafter.
(2) 
Redemption price is equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the debentures from the redemption date to April 1, 2030.

Certain of Chubb INA's senior notes and capital securities are redeemable at any time at Chubb INA's option subject to the provisions described in the table above. A "make-whole" premium is the present value of the remaining principal and interest discounted at the applicable U.S. Treasury rate. The senior notes and capital securities are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law.
We have outstanding $1.0 billion of unsecured junior subordinated capital securities at September 30, 2016, which were assumed by Chubb INA in connection with the Chubb Corp acquisition. The capital securities will become due on April 15, 2037, the scheduled maturity date, but only to the extent that we have received sufficient net proceeds from the sale of certain qualifying capital securities. We must use commercially reasonable efforts, subject to certain market disruption events, to sell enough qualifying capital securities to permit repayment of the capital securities on the scheduled maturity date or as soon thereafter as possible. Any remaining outstanding principal amount will be due on March 29, 2067, the final maturity date. The capital securities bear interest at a rate of 6.375 percent through April 14, 2017. Thereafter, the capital securities will bear interest at a rate equal to the three-month LIBOR rate plus 2.25 percent. Subject to certain conditions, we have the right to defer the payment of interest on the capital securities for a period not exceeding ten consecutive years. During any such period, interest will continue to accrue and we generally may not declare or pay any dividends on or purchase any shares of our capital stock.
In connection with the issuance of capital securities, a replacement capital covenant was entered into in which we agreed that we will not repay, redeem, or purchase capital securities before March 29, 2047, unless, subject to certain limitations, we have received proceeds from the sale of specified replacement capital securities. The replacement capital covenant is not intended for the benefit of holders of the capital securities and may not be enforced by them. The replacement capital covenant is for the benefit of holders of one or more designated series of Chubb's indebtedness, which initially was and continues to be its 6.8 percent debentures due November 2031.
Subject to the replacement capital covenant, the $1.0 billion capital securities may be redeemed, in whole or in part, at any time (i) on or after April 15, 2017 at a redemption price equal to the principal amount plus any accrued interest or (ii) prior to April 15, 2017 at a redemption price equal to the greater of (1) the principal amount or (2) a make-whole premium, in each case plus any accrued interest.
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees

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

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

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

Under reinsurance programs covering GLBs, Chubb assumes the risk of GLBs, including GMIB and GMAB, associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder’s account value is less than a guaranteed minimum value. The GLB reinsurance product meets the definition of a derivative instrument. Benefit reserves in respect of GLBs are classified as Future policy benefits (FPB) while the fair value derivative adjustment is classified within AP. Chubb also generally maintains positions in exchange-traded equity futures contracts and options on equity market indices to limit equity exposure in the GMDB and GLB blocks of business. At September 30, 2016, we held no positions in option contracts on equity market indices.

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

The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments:
 
 
 
 
 
September 30, 2016
 
 
 
 
December 31, 2015
 
 
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)
 
$
10

 
$
(32
)
 
$
2,025

 
$
7

 
$
(11
)
 
$
1,029

Cross-currency swaps
OA / (AP)
 
—

 
—

 
95

 
—

 
—

 
95

Options/Futures contracts on bonds and equities
OA / (AP)
 
10

 
(2
)
 
1,353

 
5

 
(2
)
 
751

Convertible securities (1)
FM AFS / ES
 
5

 
—

 
8

 
31

 
—

 
40

 
 
 
$
25

 
$
(34
)
 
$
3,481

 
$
43

 
$
(13
)
 
$
1,915

Other derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Futures contracts on equities (2)
OA / (AP)
 
$
4

 
$
—

 
$
1,275

 
$
—

 
$
(4
)
 
$
1,197

Other
OA / (AP)
 
10

 
(8
)
 
243

 
—

 
(6
)
 
15

 
 
 
$
14

 
$
(8
)
 
$
1,518

 
$
—

 
$
(10
)
 
$
1,212

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(1,166
)
 
$
1,436

 
$
—

 
$
(888
)
 
$
1,155


(1) 
Includes fair value of embedded derivatives.
(2) 
Related to GMDB and GLB blocks of business.
(3) 
Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.

At September 30, 2016 and December 31, 2015, derivative assets of $9 million and $1 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement. 

b) Secured borrowings
Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. At September 30, 2016 and December 31, 2015, our securities lending collateral was $1,140 million and $1,046 million, respectively, and our securities lending payable, reflecting our obligation to return the collateral plus interest, was $1,141 million and $1,047 million, respectively. The securities lending collateral can only be drawn down by Chubb in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the consolidated balance sheets.

The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:
 
 
Remaining contractual maturity

September 30, 2016
 
Overnight and Continuous

(in millions of U.S. dollars)
 
Collateral held under securities lending agreements:
 
 
Cash
 
$
449

U.S. Treasury and agency
 
53

Foreign
 
324

Corporate securities
 
4

Mortgage-backed securities
 
38

Equity securities
 
272

 
 
$
1,140

Gross amount of recognized liability for securities lending payable
 
$
1,141

Difference (1)
 
$
(1
)
(1) 
The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable due to accrued interest recorded in the securities lending payable.

At September 30, 2016 and December 31, 2015, our repurchase agreement obligations of $1,406 million and $1,404 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities and the repurchase agreement obligation is recorded in Repurchase agreements in the consolidated balance sheets.  

The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:
 
Remaining contractual maturity
 
September 30, 2016
Up to 30 Days

 
30 - 90 Days

 
Greater than
90 Days

 
Total

(in millions of U.S. dollars)
 
 
 
Collateral pledged under repurchase agreements:
 
 
 
 
 
 
 
U.S. Treasury and agency
$
5

 
$
—

 
$
232

 
$
237

Mortgage-backed securities
408

 
484

 
335

 
1,227

 
$
413

 
$
484

 
$
567

 
$
1,464

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
 
 
$
1,406

Difference(1)
 
 
 
 
 
 
$
58

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

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

The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
 
Three Months Ended
 
Nine Months Ended
 
 
September 30
 
September 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Investment and embedded derivative instruments
 
 
 
 
 
 
Foreign currency forward contracts
$
(10
)
 
$
15

$
(30
)
 
$
30

All other futures contracts and options
8

 
(23
)
(63
)
 
(10
)
Convertible securities(1)
3

 
(14
)
8

 
(14
)
Total investment and embedded derivative instruments
$
1

 
$
(22
)
$
(85
)

$
6

GLB and other derivative instruments
 
 
 
 
 
 
GLB(2)
$
89

 
$
(396
)
$
(270
)
 
$
(337
)
Futures contracts on equities(3)
(45
)
 
84

(88
)
 
71

Options on equity market indices(3)
—

 
(1
)
—

 
(2
)
Other
3

 
(9
)
1

 
(10
)
Total GLB and other derivative instruments
$
47

 
$
(322
)
$
(357
)

$
(278
)
 
$
48

 
$
(344
)
$
(442
)

$
(272
)
(1) 
Includes embedded derivatives.
(2) 
Excludes foreign exchange gains (losses) related to GLB.
(3) 
Related to GMDB and GLB blocks of business.

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

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

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

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

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

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

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

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

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

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

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

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

d) Fixed maturities
At September 30, 2016, we have commitments to purchase fixed income securities of $788 million over the next several years.

e) Other investments
At September 30, 2016, included in Other investments in the consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.3 billion. In connection with these investments, we have commitments that may require funding of up to $2.0 billion over the next several years.

f) Taxation
In September, the IRS completed its examination of one of our subsidiary’s federal tax returns for the 2010-2012 tax years.  No material adjustments resulted from this examination. At September 30, 2016, $17 million of unrecognized tax benefits remains 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. With few exceptions, Chubb is no longer subject to state and local or non-U.S. income tax examinations for years before 2006.

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 September 30, 2016, our Common Shares had a par value of CHF 24.15 per share.

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

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

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

The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
 
Three Months Ended
 
 
Nine Months Ended
 
 
September 30
 
 
September 30
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

Dividends – par value reduction
—

 
$
—

 
—

 
$
—

 
—

 
$
—

 
0.62

 
$
0.65

Dividends – distributed from capital contribution reserves
0.67

 
0.69

 
0.65

 
0.67

 
2.01

 
2.05

 
1.27

 
1.34

Total dividend distributions per common share
0.67

 
$
0.69

 
0.65

 
$
0.67

 
2.01

 
$
2.05

 
1.89

 
$
1.99



Common Shares in treasury are used principally for issuance upon the exercise of employee stock options, grants of restricted stock, and purchases under the Employee Stock Purchase Plan (ESPP). At September 30, 2016, 14,497,754 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans.

Chubb Limited securities repurchase authorization
In November 2014, the Board authorized a share repurchase program of $1.5 billion of Chubb's Common Shares for the period January 1, 2015 through December 31, 2015. For the three and nine months ended September 30, 2015, Chubb repurchased nil and $734 million (6,677,663 Common Shares), respectively. There are no outstanding repurchase authorizations subsequent to December 31, 2015.
Share-based compensation
Share-based compensation
Share-based compensation

The ACE Limited 2004 Long-Term Incentive Plan (the 2004 LTIP) permitted grants of both incentive and non-qualified stock options principally at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term. Stock options typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 25, 2016, Chubb granted 1,926,842 stock options with a weighted-average grant date fair value of $21.52 each. The fair value of the options issued is estimated on the grant date using the Black-Scholes option pricing model.

The 2004 LTIP also permitted grants of service-based restricted stock and restricted stock units as well as performance-based restricted stock awards. Chubb generally grants service-based restricted stock and restricted stock units with a 4-year vesting period, based on a graded vesting schedule. The performance-based stock awards comprise target awards which have four installments that vest annually based on tangible book value (shareholders' equity less goodwill and intangible assets) 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 restricted stock is granted at market close price on the grant date. On February 25, 2016, Chubb granted 1,119,686 service-based restricted stock awards, 337,581 service-based restricted stock units, and 452,820 performance-based stock awards to employees and officers with a grant date fair value of $118.39 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting.

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

In May 2016, our shareholders approved the Chubb Limited 2016 Long-Term Incentive Plan (the 2016 LTIP), which replaced both the 2004 LTIP and The Chubb Corporation Long-Term Incentive Plan (2014). The 2016 LTIP is substantially similar to the 2004 LTIP in its operation and the types of awards that may be granted.

Under the 2016 LTIP, 19,500,000 Common Shares were authorized to be issued, in addition to any shares that have not been delivered pursuant to the 2004 LTIP and remain available for grant pursuant to the 2004 LTIP, including any shares covered by awards granted under the 2004 LTIP that are forfeited, expire, or are canceled after the effective date of the 2016 LTIP without delivery of shares or which result in the forfeiture of the shares back to Chubb.
Postretirement benefits Postretirement benefits
Compensation and Employee Benefit Plans [Text Block]
Postretirement benefits

We maintain non-contributory defined benefit pension plans and other postretirement plans that cover certain employees located in the U.S., Europe, Asia, Canada, and Mexico. All underlying plans are subject to periodic actuarial valuations by qualified actuarial firms using actuarial models to calculate the expense and liability for each plan. Components of the funded status of the pension and other postretirement benefit plans are included in Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets.

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

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

As part of purchase accounting, Chubb eliminated legacy Chubb Corp’s postretirement benefit costs not yet recognized in Net income that were recorded in Accumulated other comprehensive income at the time of the acquisition. In addition, Chubb conformed the accounting policies for the acquired plans of legacy Chubb Corp to the accounting policies of Chubb, including selecting the applicable discount rates using specific spot rates along a yield curve determined by the projected cash flows assumptions. This resulted in a lower overall discount rate used to determine the benefit obligation and therefore increased that obligation at the date of the acquisition.

At the date of the acquisition of Chubb Corp, we assumed the following postretirement benefit plan assets and obligations:
 
Pension Benefits
 
 
Other Postretirement Benefits
 
January 14, 2016
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

(in millions of U.S. dollars)
 
 
 
 
 
Fair value of plan assets
$
2,473

 
$
315

 
$
2,788

 
$
138

 
$
—

 
$
138

Benefit obligations
(3,153
)
 
(372
)
 
(3,525
)
 
(491
)
 
(15
)
 
(506
)
Funded status
$
(680
)
 
$
(57
)
 
$
(737
)
 
$
(353
)
 
$
(15
)
 
$
(368
)


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

For the three and nine months ended September 30, 2016, we contributed $24 million and $156 million, respectively, to our U.S. and non-U.S. pension and other postretirement benefits plans. At September 30, 2016, we estimate that we will contribute an additional $8 million for the remainder of 2016. These estimates are subject to change due to contribution decisions that are affected by various factors including our liquidity, market performance and management discretion.

The following tables summarize the components of net periodic benefit costs for our pension and postretirement benefit plans recognized in the Consolidated statements of operations:
Three Months Ended September 30
Pension Benefits
 
 
Other Postretirement Benefits
 
(in millions of U.S. dollars)
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
20

 
$
6

 
$
26

 
$
4

 
$
—

 
$
4

     Interest cost
26

 
8

 
34

 
4

 
—

 
4

     Expected return on plan assets
(42
)
 
(10
)
 
(52
)
 
(3
)
 
—

 
(3
)
     Amortization of net actuarial loss
—

 
—

 
—

 
—

 
—

 
—

     Curtailments
(4
)
 
—

 
(4
)
 
—

 
—

 
—

     Settlements
(1
)
 
—

 
(1
)
 
—

 
—

 
—

             Net periodic benefit cost
$
(1
)
 
$
4

 
$
3

 
$
5

 
$
—

 
$
5

2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
2

 
$
2

 
 
 
 
 
 
     Interest cost
—

 
5

 
5

 
 
 
 
 
 
     Expected return on plan assets
—

 
(7
)
 
(7
)
 
 
 
 
 
 
     Amortization of net actuarial loss
—

 
—

 
—

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
—

 
$
—

 
 
 
 
 
 
Nine Months Ended September 30
Pension Benefits
 
 
Other Postretirement Benefits
 
(in millions of U.S. dollars)
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
57

 
$
15

 
$
72

 
$
8

 
$
1

 
$
9

     Interest cost
80

 
24

 
104

 
13

 
—

 
13

     Expected return on plan assets
(121
)
 
(30
)
 
(151
)
 
(7
)
 
—

 
(7
)
     Amortization of net actuarial loss
—

 
2

 
2

 
—

 
—

 
—

     Curtailments
(4
)
 
—

 
(4
)
 
—

 
—

 
—

     Settlements
(1
)
 
—

 
(1
)
 
—

 
—

 
—

             Net periodic benefit cost
$
11

 
$
11

 
$
22

 
$
14

 
$
1

 
$
15

2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
5

 
$
5

 
 
 
 
 
 
     Interest cost
—

 
15

 
15

 
 
 
 
 
 
     Expected return on plan assets
—

 
(21
)
 
(21
)
 
 
 
 
 
 
     Amortization of net actuarial loss
—

 
2

 
2

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
1

 
$
1

 
 
 
 
 
 


The weighted-average assumptions used to determine net pension and other postretirement benefit costs were as follows:
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
U.S. Plans

 
Non-U.S. Plans

September 30, 2016
 
 
 
 
 
 
 
Discount rate
4.28
%
 
3.74
%
 
4.41
%
 
4.30
%
Rate of compensation increase
4.00
%
 
3.40
%
 
N/A

 
N/A

Expected long-term rate of return on plan assets
7.00
%
 
4.90
%
 
7.00
%
 
N/A

December 31, 2015

 

 

 

Discount rate
N/A

 
3.51
%
 
N/A

 
N/A

Rate of compensation increase
N/A

 
3.09
%
 
N/A

 
N/A

Expected long-term rate of return on plan assets
N/A

 
4.81
%
 
N/A

 
N/A

Segment information
Segment information
Segment information

Effective the first quarter of 2016, we are reporting our financial results within 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. We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years and certain other run-off exposures. All legacy ACE prior period amounts (i.e., legacy Chubb Corp prior period results are not included in the prior period amounts in the tables below) have been adjusted to conform to the new segment presentation.

•
The North America Commercial P&C Insurance segment includes the business written by Chubb divisions that provide property and casualty (P&C) insurance and services to large, middle market and small commercial businesses in the U.S., Bermuda and Canada. These divisions write a variety of coverages, including traditional commercial property, marine, general casualty, workers’ compensation, package policies, and risk management; specialty categories such as professional lines, marine and construction risk, environmental and cyber risk, excess casualty, as well as group accident and health (A&H) insurance. This segment includes our North American Major Accounts and Specialty Insurance (principally large corporate accounts and wholesale business), and the Commercial Insurance divisions (principally middle market and small commercial accounts).

•
The North America Personal P&C Insurance segment includes the business written by Chubb’s North America Personal Risk Services division, which comprises Chubb high net worth personal lines business and ACE Private Risk Services, with operations in U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, automobile, valuables, umbrella and recreational marine insurance and services.

•
The North America Agricultural Insurance segment includes the business written by Rain and Hail Insurance Service, Inc. which provides comprehensive multiple peril crop and crop-hail insurance, and Chubb Agribusiness, which offers farm and ranch property as well as specialty P&C coverages, including commercial agriculture products.

•
The Overseas General Insurance segment includes the business written by two Chubb divisions that provide P&C insurance and services in the 51 countries outside of North America where the company operates.  Chubb International provides commercial P&C traditional and specialty lines serving large corporations, middle market and small customers, A&H and traditional and specialty personal lines through retail brokers, agents and other channels locally around the world. Chubb Global Markets provides commercial P&C excess and surplus lines and A&H through wholesale brokers in the London market and through Lloyd’s.  These divisions write a variety of coverages, including traditional commercial property and casualty, specialty categories such as financial lines, marine, energy, aviation, political risk and construction risk, as well as group A&H and traditional and specialty personal lines. 

•
The Global Reinsurance segment primarily includes the reinsurance business written by Chubb Tempest Re as well as the legacy Chubb U.K. Assumed Reinsurance business, which is active, and the legacy Chubb Corp run-off Reinsurance business.

•
The Life Insurance segment includes the business written by Chubb Life, Chubb Tempest Life Re and Combined Insurance’s North America operations.

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, legacy Chubb Corp run-off business in 2016, and certain other run-off exposures.

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

For segment reporting purposes, certain items have been presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main measure of segment performance. Chubb calculates underwriting income by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate segment income, include net investment income, the operating portion of other (income) expense, and amortization of purchased intangibles. For the North America Agricultural Insurance segment, management includes gains and losses on crop derivatives as a component of underwriting income. For example, for the three months ended September 30, 2016, underwriting income in our North America Agricultural Insurance segment was $90 million. This amount includes $3 million of realized gains 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 September 30, 2016, Life underwriting income of $72 million includes Net investment income of $71 million and gains from fair value changes in separate account assets of $22 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
 
 
 
 
 
 
September 30, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
3,110

 
$
1,011

 
$
849

 
$
1,940

 
$
131

 
$
532

 
$
—

 
$
7,573

Net premiums earned
3,086

 
1,081

 
819

 
2,034

 
156

 
512

 
—

 
7,688

Losses and loss expenses
1,863

 
594

 
683

 
843

 
49

 
174

 
63

 
4,269

Policy benefits
—

 
—

 
—

 
—

 
—

 
155

 
—

 
155

Policy acquisition costs
522

 
229

 
48

 
546

 
42

 
127

 
—

 
1,514

Administrative expenses
275

 
89

 
1

 
261

 
12

 
77

 
57

 
772

Underwriting income (loss)
426

 
169

 
87

 
384

 
53

 
(21
)
 
(120
)
 
978

Net investment income (loss)
477

 
53

 
5

 
152

 
67

 
71

 
(86
)
 
739

Other (income) expense
3

 
2

 
—

 
(6
)
 
—

 
(20
)
 
(70
)
 
(91
)
Amortization expense (benefit) of purchased intangibles
—

 
4

 
7

 
12

 
—

 
1

 
(20
)
 
4

Segment income (loss)
900

 
216

 
85

 
530

 
120

 
69

 
(116
)
 
1,804

Net realized gains including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
100

 
100

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
152

 
152

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
115

 
115

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
277

 
277

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(560
)
 
$
1,360


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Three Months Ended
 
 
 
 
 
September 30, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
1,433

 
$
278

 
$
737

 
$
1,584

 
$
185

 
$
492

 
$
—

 
$
4,709

Net premiums earned
1,410

 
272

 
739

 
1,615

 
203

 
480

 
—

 
4,719

Losses and loss expenses
913

 
179

 
620

 
674

 
20

 
153

 
84

 
2,643

Policy benefits
—

 
—

 
—

 
—

 
—

 
89

 
—

 
89

Policy acquisition costs
142

 
13

 
42

 
405

 
52

 
117

 
—

 
771

Administrative expenses
154

 
36

 
—

 
246

 
12

 
74

 
46

 
568

Underwriting income (loss)
201

 
44

 
77

 
290

 
119

 
47

 
(130
)
 
648

Net investment income
260

 
7

 
5

 
132

 
76

 
66

 
3

 
549

Other (income) expense
(3
)
 
1

 
(1
)
 
(6
)
 
(4
)
 
48

 
(23
)
 
12

Amortization of purchased intangibles
—

 
31

 
8

 
12

 
—

 
—

 
—

 
51

Segment income (loss)
464

 
19

 
75

 
416

 
199

 
65

 
(104
)
 
1,134

Net realized gains (losses) including OTTI


 
 
 
 
 
 
 
 
 
 
 
(397
)
 
(397
)
Interest expense


 
 
 
 
 
 
 
 
 
 
 
68

 
68

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
9

 
9

Income tax expense


 
 
 
 
 
 
 
 
 
 
 
132

 
132

Net income (loss)


 
 
 
 
 
 
 
 
 
 
 
$
(710
)
 
$
528


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Nine Months Ended
 
 
 
 
 
 
September 30, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
8,657

 
$
3,113

 
$
1,288

 
$
6,012

 
$
562

 
$
1,575

 
$
—

 
$
21,207

Net premiums earned
9,130

 
3,245

 
1,169

 
6,082

 
543

 
1,521

 
—

 
21,690

Losses and loss expenses
5,581

 
1,916

 
937

 
2,953

 
225

 
498

 
87

 
12,197

Policy benefits
—

 
—

 
—

 
—

 
—

 
427

 
—

 
427

Policy acquisition costs
1,549

 
747

 
77

 
1,586

 
142

 
386

 
—

 
4,487

Administrative expenses
840

 
275

 
(1
)
 
801

 
40

 
226

 
192

 
2,373

Underwriting income (loss)
1,160

 
307

 
156

 
742

 
136

 
(16
)
 
(279
)
 
2,206

Net investment income (loss)
1,371

 
155

 
15

 
445

 
199

 
207

 
(271
)
 
2,121

Other (income) expense
(6
)
 
6

 
—

 
(16
)
 
(3
)
 
(14
)
 
(59
)
 
(92
)
Amortization expense (benefit) of purchased intangibles
—

 
16

 
22

 
36

 
—

 
2

 
(60
)
 
16

Segment income (loss)
2,537

 
440

 
149

 
1,167

 
338

 
203

 
(431
)
 
4,403

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(510
)
 
(510
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
451

 
451

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
361

 
361

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
556

 
556

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(2,309
)
 
$
2,525


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Nine Months Ended
 
 
 
 
 
September 30, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
4,158

 
$
958

 
$
1,204

 
$
5,047

 
$
719

 
$
1,483

 
$
—

 
$
13,569

Net premiums earned
4,209

 
687

 
1,124

 
4,896

 
649

 
1,441

 
—

 
13,006

Losses and loss expenses
2,744

 
446

 
913

 
2,304

 
191

 
442

 
142

 
7,182

Policy benefits
—

 
—

 
—

 
—

 
—

 
384

 
—

 
384

Policy acquisition costs
403

 
43

 
61

 
1,190

 
166

 
342

 
—

 
2,205

Administrative expenses
459

 
89

 
3

 
756

 
37

 
221

 
135

 
1,700

Underwriting income (loss)
603

 
109

 
147

 
646

 
255

 
52

 
(277
)
 
1,535

Net investment income
780

 
19

 
17

 
409

 
230

 
198

 
9

 
1,662

Other (income) expense
(5
)
 
1

 
1

 
(12
)
 
(5
)
 
32

 
(73
)
 
(61
)
Amortization of purchased intangibles
—

 
63

 
22

 
50

 
—

 
1

 
—

 
136

Segment income (loss)
1,388

 
64

 
141

 
1,017

 
490

 
217

 
(195
)
 
3,122

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(360
)
 
(360
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
207

 
207

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
9

 
9

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
395

 
395

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(1,166
)
 
$
2,151



Underwriting assets are reviewed in total by management for purposes of decision-making. Other than 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
 
 
Nine Months Ended
 
 
September 30
 
 
September 30
 
(in millions of U.S. dollars, except share and per share data)
2016

 
2015

 
2016

 
2015

Numerator:
 
 
 
 
 
 
 
Net income
$
1,360

 
$
528

 
$
2,525

 
$
2,151

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
 
 
Weighted-average shares outstanding
468,021,093

 
324,210,936

 
460,631,794

 
325,904,502

Denominator for diluted earnings per share:
 
 
 
 

 

Share-based compensation plans
3,375,269

 
2,962,484

 
3,439,017

 
3,269,724

Weighted-average shares outstanding and assumed conversions
471,396,362

 
327,173,420

 
464,070,811

 
329,174,226

Basic earnings per share
$
2.90

 
$
1.63

 
$
5.48

 
$
6.60

Diluted earnings per share
$
2.88

 
$
1.62

 
$
5.44

 
$
6.53

Potential anti-dilutive share conversions
1,306,710

 
1,907,815

 
1,635,337

 
1,503,830



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

In connection with the Chubb Corp acquisition, Chubb INA Holdings Inc., entered into a series of intercompany loans totaling $10 billion involving its parents, Chubb Group Holdings Inc. and Chubb Limited. The weighted-average interest rate is 3.3 percent with fixed interest rates ranging from 2.3 percent to 4.35 percent and various maturity dates from 2021 to 2046.

As part of the acquisition, Chubb INA Holdings Inc. assumed $3.3 billion par value outstanding debt of Chubb Corp, fair valued at $3.8 billion at the acquisition date. Chubb INA Holdings Inc. assumed Chubb Corp's rights, duties and obligations and Chubb Limited fully and unconditionally guarantees Chubb INA Holding Inc.'s payment obligations under these debts.

The following tables present condensed consolidating financial information at September 30, 2016 and December 31, 2015, and for the three and nine months ended September 30, 2016 and 2015 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). The transactions noted above are reflected in the tables below. The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Parent Guarantor and Subsidiary Issuer are presented on the equity method of accounting. The revenues and expenses and cash flows of the subsidiaries of the Subsidiary Issuer are presented in the Other Chubb Limited Subsidiaries column on a combined basis.

Condensed Consolidating Balance Sheet at September 30, 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
$
25

 
$
812

 
$
100,199

 
$
—

 
$
101,036

Cash (1)
6

 
2

 
2,158

 
(1,296
)
 
870

Insurance and reinsurance balances receivable
—

 
—

 
11,392

 
(2,899
)
 
8,493

Reinsurance recoverable on losses and loss expenses
—

 
—

 
23,642

 
(10,194
)
 
13,448

Reinsurance recoverable on policy benefits
—

 
—

 
1,167

 
(972
)
 
195

Value of business acquired
—

 
—

 
368

 
—

 
368

Goodwill and other intangible assets
—

 
—

 
22,472

 
—

 
22,472

Investments in subsidiaries
38,403

 
50,316

 
—

 
(88,719
)
 
—

Due from subsidiaries and affiliates, net
11,186

 
—

 
—

 
(11,186
)
 
—

Other assets
5

 
366

 
18,856

 
(4,299
)
 
14,928

Total assets
$
49,625

 
$
51,496

 
$
180,254

 
$
(119,565
)
 
$
161,810

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,882

 
$
(9,535
)
 
$
61,347

Unearned premiums
—

 
—

 
18,773

 
(3,719
)
 
15,054

Future policy benefits
—

 
—

 
5,982

 
(972
)
 
5,010

Due to subsidiaries and affiliates, net
—

 
10,996

 
190

 
(11,186
)
 
—

Affiliated notional cash pooling programs (1)
927

 
369

 
—

 
(1,296
)
 
—

Repurchase agreements
—

 
—

 
1,406

 
—

 
1,406

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,610

 
11

 
—

 
12,621

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
326

 
1,588

 
19,416

 
(4,138
)
 
17,192

Total liabilities
1,253

 
26,371

 
116,660

 
(30,846
)
 
113,438

Total shareholders’ equity
48,372

 
25,125

 
63,594

 
(88,719
)
 
48,372

Total liabilities and shareholders’ equity
$
49,625

 
$
51,496

 
$
180,254

 
$
(119,565
)
 
$
161,810


(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
 




Condensed Consolidating Balance Sheet at December 31, 2015

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

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
28

 
$
7,839

 
$
58,384

 
$
—

 
$
66,251

Cash (1)
1

 
2

 
2,743

 
(971
)
 
1,775

Insurance and reinsurance balances receivable
—

 
—

 
6,075

 
(752
)
 
5,323

Reinsurance recoverable on losses and loss expenses
—

 
—

 
20,124

 
(8,738
)
 
11,386

Reinsurance recoverable on policy benefits
—

 
—

 
1,129

 
(942
)
 
187

Value of business acquired
—

 
—

 
395

 
—

 
395

Goodwill and other intangible assets
—

 
—

 
5,683

 
—

 
5,683

Investments in subsidiaries
29,612

 
18,386

 
—

 
(47,998
)
 
—

Due from subsidiaries and affiliates, net
644

 
1,800

 
—

 
(2,444
)
 
—

Other assets
8

 
457

 
14,434

 
(3,593
)
 
11,306

Total assets
$
30,293

 
$
28,484

 
$
108,967

 
$
(65,438
)
 
$
102,306

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
45,490

 
$
(8,187
)
 
$
37,303

Unearned premiums
—

 
—

 
10,243

 
(1,804
)
 
8,439

Future policy benefits
—

 
—

 
5,749

 
(942
)
 
4,807

Due to subsidiaries and affiliates, net
—

 
—

 
2,444

 
(2,444
)
 
—

Affiliated notional cash pooling programs (1)
882

 
89

 
—

 
(971
)
 
—

Repurchase agreements
—

 
—

 
1,404

 
—

 
1,404

Long-term debt
—

 
9,378

 
11

 
—

 
9,389

Trust preferred securities
—

 
307

 
—

 
—

 
307

Other liabilities
276

 
1,422

 
12,916

 
(3,092
)
 
11,522

Total liabilities
1,158

 
11,196

 
78,257

 
(17,440
)
 
73,171

Total shareholders’ equity
29,135

 
17,288

 
30,710

 
(47,998
)
 
29,135

Total liabilities and shareholders’ equity
$
30,293

 
$
28,484

 
$
108,967

 
$
(65,438
)
 
$
102,306

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. 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, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended September 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
$
—

 
$
—

 
$
7,573

 
$
—

 
$
7,573

Net premiums earned
—

 
—

 
7,688

 
—

 
7,688

Net investment income
1

 
2

 
736

 
—

 
739

Equity in earnings of subsidiaries
1,292

 
748

 
—

 
(2,040
)
 
—

Net realized gains (losses) including OTTI
—

 
(2
)
 
102

 
—

 
100

Losses and loss expenses
—

 
—

 
4,269

 
—

 
4,269

Policy benefits
—

 
—

 
155

 
—

 
155

Policy acquisition costs and administrative expenses
15

 
12

 
2,259

 
—

 
2,286

Interest (income) expense
(93
)
 
233

 
12

 
—

 
152

Other (income) expense
(7
)
 
6

 
(90
)
 
—

 
(91
)
Amortization of purchased intangibles
—

 
—

 
4

 
—

 
4

Chubb integration expenses
12

 
16

 
87

 
—

 
115

Income tax expense (benefit)
6

 
(136
)
 
407

 
—

 
277

Net income
$
1,360

 
$
617

 
$
1,423

 
$
(2,040
)
 
$
1,360

Comprehensive income
$
1,376

 
$
627

 
$
1,439

 
$
(2,066
)
 
$
1,376



Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended September 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

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

 
$
—

 
$
4,709

 
$
—

 
$
4,709

Net premiums earned
—

 
—

 
4,719

 
—

 
4,719

Net investment income
1

 
1

 
547

 
—

 
549

Equity in earnings of subsidiaries
488

 
255

 
—

 
(743
)
 
—

Net realized gains (losses) including OTTI
—

 
(4
)
 
(393
)
 
—

 
(397
)
Losses and loss expenses
—

 
—

 
2,643

 
—

 
2,643

Policy benefits
—

 
—

 
89

 
—

 
89

Policy acquisition costs and administrative expenses
15

 
7

 
1,317

 
—

 
1,339

Interest (income) expense
(8
)
 
68

 
8

 
—

 
68

Other (income) expense
(51
)
 
(5
)
 
68

 
—

 
12

Amortization of purchased intangibles
—

 
—

 
51

 
—

 
51

Chubb integration expenses
1

 
8

 
—

 
—

 
9

Income tax expense (benefit)
4

 
(31
)
 
159

 
—

 
132

Net income
$
528

 
$
205

 
$
538

 
$
(743
)
 
$
528

Comprehensive income (loss)
$
(271
)
 
$
(265
)
 
$
(262
)
 
$
527

 
$
(271
)



Condensed Consolidating Statements of Operations and Comprehensive Income
Nine Months Ended September 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
$
—

 
$
—

 
$
21,207

 
$
—

 
$
21,207

Net premiums earned
—

 
—

 
21,690

 
—

 
21,690

Net investment income
3

 
9

 
2,109

 
—

 
2,121

Equity in earnings of subsidiaries
2,331

 
1,803

 
—

 
(4,134
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(3
)
 
(506
)
 
—

 
(510
)
Losses and loss expenses
—

 
—

 
12,197

 
—

 
12,197

Policy benefits
—

 
—

 
427

 
—

 
427

Policy acquisition costs and administrative expenses
48

 
144

 
6,668

 
—

 
6,860

Interest (income) expense
(266
)
 
681

 
36

 
—

 
451

Other (income) expense
(20
)
 
26

 
(98
)
 
—

 
(92
)
Amortization of purchased intangibles
—

 
—

 
16

 
—

 
16

Chubb integration expenses
29

 
56

 
276

 
—

 
361

Income tax expense (benefit)
17

 
(323
)
 
862

 
—

 
556

Net income
$
2,525

 
$
1,225

 
$
2,909

 
$
(4,134
)
 
$
2,525

Comprehensive income
$
4,457

 
$
2,687

 
$
4,841

 
$
(7,528
)
 
$
4,457


Condensed Consolidating Statements of Operations and Comprehensive Income
Nine Months Ended September 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

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

 
$
—

 
$
13,569

 
$
—

 
$
13,569

Net premiums earned
—

 
—

 
13,006

 
—

 
13,006

Net investment income
2

 
2

 
1,658

 
—

 
1,662

Equity in earnings of subsidiaries
2,037

 
755

 
—

 
(2,792
)
 
—

Net realized gains (losses) including OTTI
—

 
(6
)
 
(354
)
 
—

 
(360
)
Losses and loss expenses
—

 
—

 
7,182

 
—

 
7,182

Policy benefits
—

 
—

 
384

 
—

 
384

Policy acquisition costs and administrative expenses
47

 
20

 
3,838

 
—

 
3,905

Interest (income) expense
(23
)
 
206

 
24

 
—

 
207

Other (income) expense
(149
)
 
(12
)
 
100

 
—

 
(61
)
Amortization of purchased intangibles
—

 
—

 
136

 
—

 
136

Chubb integration expenses
1

 
8

 
—

 
—

 
9

Income tax expense (benefit)
12

 
(84
)
 
467

 
—

 
395

Net income
$
2,151

 
$
613

 
$
2,179

 
$
(2,792
)
 
$
2,151

Comprehensive income (loss)
$
768

 
$
(332
)
 
$
795

 
$
(463
)
 
$
768






Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 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
$
3,399

 
$
3,892

 
$
3,918

 
$
(7,372
)
 
$
3,837

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

 
(154
)
 
(23,683
)
 
—

 
(23,837
)
Purchases of fixed maturities held to maturity
—

 
—

 
(189
)
 
—

 
(189
)
Purchases of equity securities
—

 
—

 
(100
)
 
—

 
(100
)
Sales of fixed maturities available for sale
—

 
66

 
13,797

 
—

 
13,863

Sales of equity securities
—

 
—

 
963

 
—

 
963

Maturities and redemptions of fixed maturities available for sale
—

 
59

 
6,877

 
—

 
6,936

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
627

 
—

 
627

Net change in short-term investments
—

 
7,627

 
4,239

 
—

 
11,866

Net derivative instruments settlements
—

 
(10
)
 
(171
)
 
—

 
(181
)
Acquisition of subsidiaries (net of cash acquired of $71)
—

 
(14,282
)
 
34

 
—

 
(14,248
)
Capital contribution
(2,330
)
 
(20
)
 
(2,330
)
 
4,680

 
—

Other
—

 
(3
)
 
29

 
—

 
26

Net cash flows (used for) from investing activities
(2,330
)
 
(6,717
)
 
93

 
4,680

 
(4,274
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(851
)
 
—

 
—

 
—

 
(851
)
Proceeds from issuance of repurchase agreements
—

 
—

 
1,457

 
—

 
1,457

Repayment of repurchase agreements
—

 
—

 
(1,455
)
 
—

 
(1,455
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
117

 
—

 
117

Dividend to parent company
—

 
—

 
(7,372
)
 
7,372

 
—

Advances (to) from affiliates
(258
)
 
219

 
39

 
—

 
—

Capital contribution
—

 
2,330

 
2,350

 
(4,680
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
45

 
280

 
—

 
(325
)
 
—

Policyholder contract deposits
—

 
—

 
473

 
—

 
473

Policyholder contract withdrawals
—

 
—

 
(247
)
 
—

 
(247
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows (used for) from financing activities
(1,064
)
 
2,825

 
(4,638
)
 
2,367

 
(510
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
42

 
—

 
42

Net increase (decrease) in cash
5

 
—

 
(585
)
 
(325
)
 
(905
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
6

 
$
2

 
$
2,158

 
$
(1,296
)
 
$
870

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from (used for) operating activities
$
350

 
$
(46
)
 
$
2,671

 
$
(276
)
 
$
2,699

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

 
—

 
(13,052
)
 
(8
)
 
(13,060
)
Purchases of fixed maturities held to maturity
—

 
—

 
(39
)
 
—

 
(39
)
Purchases of equity securities
—

 
—

 
(122
)
 
—

 
(122
)
Sales of fixed maturities available for sale
—

 
—

 
5,233

 
—

 
5,233

Sales of equity securities
—

 
—

 
150

 
—

 
150

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
5,257

 
—

 
5,257

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
552

 
—

 
552

Net change in short-term investments
—

 
215

 
206

 
—

 
421

Net derivative instruments settlements
—

 
(10
)
 
72

 
—

 
62

Acquisition of subsidiaries (net of cash acquired of $620)
—

 
—

 
259

 
—

 
259

Capital contribution
—

 
(625
)
 
—

 
625

 
—

Other
—

 
(25
)
 
(121
)
 
8

 
(138
)
Net cash flows from (used for) investing activities
—

 
(445
)
 
(1,605
)
 
625

 
(1,425
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(644
)
 
—

 
—

 
—

 
(644
)
Common Shares repurchased
—

 
—

 
(758
)
 
—

 
(758
)
Proceeds from issuance of long-term debt
—

 
800

 
—

 
—

 
800

Proceeds from issuance of repurchase agreements
—

 
—

 
1,478

 
—

 
1,478

Repayment of long-term debt
—

 
(450
)
 
(1
)
 
—

 
(451
)
Repayment of repurchase agreements
—

 
—

 
(1,477
)
 
—

 
(1,477
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
89

 
—

 
89

Dividend to parent company
—

 
—

 
(276
)
 
276

 
—

Advances (to) from affiliates
(416
)
 
272

 
144

 
—

 
—

Capital contribution
—

 
—

 
625

 
(625
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
727

 
(121
)
 
—

 
(606
)
 
—

Policyholder contract deposits
—

 
—

 
351

 
—

 
351

Policyholder contract withdrawals
—

 
—

 
(159
)
 
—

 
(159
)
Other
—

 
(6
)
 
—

 
—

 
(6
)
Net cash flows used for financing activities
(333
)
 
495

 
16

 
(955
)
 
(777
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
(114
)
 
—

 
(114
)
Net increase in cash
17

 
4

 
968

 
(606
)
 
383

Cash – beginning of period(1)
—

 
1

 
1,209

 
(555
)
 
655

Cash – end of period(1)
$
17

 
$
5

 
$
2,177

 
$
(1,161
)
 
$
1,038


(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2015 and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
General (Policies)
Basis of presentation 
a) Basis of presentation
On January 14, 2016, we completed the acquisition of The Chubb Corporation (Chubb Corp), creating a global leader in property and casualty insurance. We have changed our name from ACE Limited to Chubb Limited and plan to adopt the Chubb name globally, although some subsidiaries may continue to use ACE as a part of their name.

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Effective the first quarter of 2016, our results are reported through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. This reflects our significantly larger and expanded operations subsequent to our acquisition of Chubb Corp. We have also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of our run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years, and certain run-off exposures. Prior period amounts of Chubb Limited (i.e., excluding the historical results of Chubb Corp) contained in this report have been adjusted to conform to the new segment presentation. Refer to Note 12 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 of Chubb Corp are included from the acquisition date forward (i.e., after January 14, 2016). 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 2015 Form 10-K.

Accounting guidance adopted in 2016 
b) Accounting guidance adopted in 2016

Presentation of Debt Issuance Costs
In April 2015, the Financial Accounting Standard Board (FASB) issued new guidance related to the accounting for debt issuance costs. The new guidance requires presentation of debt issuance costs in the Consolidated balance sheets as a reduction of the carrying amount of the related debt liability instead of as a deferred charge. We retrospectively adopted this guidance effective January 1, 2016 and reclassified $60 million of debt issuance costs from Other assets to Long term debt ($58 million) and Trust preferred securities ($2 million) as of December 31, 2015.
Accounting guidance not yet adopted 
c) Accounting guidance not yet adopted

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

Short-Duration Contracts
In May 2015, the FASB issued guidance that requires additional disclosures for short-duration insurance contracts. New disclosure will be required to provide more information about initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The guidance is effective for us beginning with our 2016 annual reporting on Form 10-K. The guidance requires a change in disclosure only and adoption of this guidance will not have an impact on our financial condition or results of operations.

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

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

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

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

Stock Compensation
In March 2016, the FASB issued guidance which requires recognition of the excess tax benefits or deficiencies of awards through net income rather than through additional paid in capital. Additionally, entities can elect to account for forfeitures related to share-based payments either as they occur or through an estimation method. If elected, the change to recognize forfeitures as they occur would be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to retained earnings. The updated guidance is effective for us in the first quarter of 2017 with early adoption permitted. Adoption of this guidance is not expected to have a material impact on our financial condition and results of operations.

Statement of Cash Flows
In August 2016, the FASB issued guidance clarifying the classification of certain cash receipts and cash payments within the statement of cash flows, including distributions received from equity method investments. The guidance requires entities to make an accounting policy election to present cash flows received either in operating cash flows or investing cash flows based on cumulative equity-method earnings or on the nature of the distributions. The updated guidance is effective for us in the first quarter of 2018 with early adoption permitted. The updated guidance should be applied retrospectively, unless it is impracticable to do so, at which point the guidance should be applied prospectively. We are in the process of evaluating the effect the updated guidance will have on our statements of cash flows.
Acquisitions Acquisitions (Tables)
Schedule of Assets Acquired and Liabilities Assumed in the Chubb Corp Acquisition [Table Text Block] 
The table below details the purchase consideration and preliminary allocation of assets acquired and liabilities assumed. During the second and third quarters of 2016, we reassessed certain components of our preliminary estimates of assets acquired and liabilities assumed, including the net realizable value for Reinsurance recoverables on losses and loss expenses and Insurance and reinsurance balances receivable and certain components of the Deferred tax liabilities, which resulted in an adjustment to our preliminary estimates that increased Goodwill by $85 million. These estimates remain preliminary and are subject to adjustment. While they are not expected to be materially different than those shown, any material adjustments to the estimates will be reflected, retroactively, as of the date of the acquisition.
 
 
(in millions, except per share data)
 
Purchase consideration
 
Chubb Limited common shares
 
Chubb Corp common shares outstanding
228

Per share exchange ratio
0.6019

Common shares issued by Chubb Limited
137

Common share price of Chubb Limited at January 14, 2016
$
111.02

Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp
$
15,204

Cash consideration
 
Chubb Corp common shares outstanding
228

Agreed cash price per share paid to common shareholders of Chubb Corp
$
62.93

Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp
$
14,319

Stock-based awards
 
Fair value of equity awards issued (1)
$
323

Fair value of purchase consideration
$
29,846

Preliminary estimate of assets acquired and (liabilities) assumed
 
Cash
$
71

Investments
42,967

Accrued investment income
337

Insurance and reinsurance balances receivable
2,981

Reinsurance recoverable on losses and loss expenses
1,645

Indefinite lived intangible assets
2,860

Finite lived intangible assets
4,795

Prepaid reinsurance premiums
280

Other assets
865

Unpaid losses and loss expenses
(22,906
)
Unearned premiums
(7,033
)
Insurance and reinsurance balances payable
(511
)
Accounts payable, accrued expenses, and other liabilities
(1,935
)
Deferred tax liabilities
(1,335
)
Long-term debt
(3,765
)
Total identifiable net assets acquired
19,316

Goodwill
10,530

Purchase price
$
29,846

(1) 
The estimated fair value of the replacement equity awards was $525 million, of which $323 million was attributed to service periods prior to the acquisition and was included in the purchase consideration. Refer to Note 10 for further information on these replacement equity awards.
Results of Operations From Date of Business Combination [Table Text Block] 
The following table summarizes the results of the acquired Chubb Corp operations since the acquisition date that have been included within our Consolidated statements of operations:
(in millions of U.S. dollars)
Three Months Ended September 30, 2016

 
January 14, 2016 to September 30, 2016

Total revenues
$
2,656

 
$
7,888

Net income
$
483

 
$
1,064

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 nine months ended September 30, 2016 and 2015, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
 
Three Months Ended
 
 
Nine Months Ended
 
 
September 30
 
 
September 30
 
(in millions of U.S. dollars, except per share data)
2016

 
2015

 
2016

 
2015

Total revenues
$
8,521

 
$
8,314

 
$
23,758

 
$
24,387

Net income
$
1,345

 
$
1,036

 
$
2,591

 
$
3,194

Earnings per share
 
 
 
 
 
 
 
Basic earnings per share
$
2.87

 
$
2.23

 
$
5.54

 
$
6.85

Diluted earnings per share
$
2.85

 
$
2.21

 
$
5.50

 
$
6.78

Investments (Tables)
Schedule Of Amortized Cost and Fair Value of Available-for-sale Securities and Related OTTI Recognized in AOCI 
 
September 30, 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
$
2,626

 
$
84

 
$
(2
)
 
$
2,708

 
$
—

Foreign
21,499

 
1,057

 
(48
)
 
22,508

 
(9
)
Corporate securities
22,860

 
977

 
(64
)
 
23,773

 
(9
)
Mortgage-backed securities
13,083

 
383

 
(5
)
 
13,461

 
(1
)
States, municipalities, and political subdivisions
18,562

 
357

 
(11
)
 
18,908

 
—

 
$
78,630

 
$
2,858

 
$
(130
)
 
$
81,358

 
$
(19
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
709

 
$
26

 
$
—

 
$
735

 
$
—

Foreign
694

 
45

 
—

 
739

 
—

Corporate securities
2,852

 
131

 
(2
)
 
2,981

 
—

Mortgage-backed securities
1,507

 
72

 
—

 
1,579

 
—

States, municipalities, and political subdivisions
5,165

 
167

 
—

 
5,332

 
—

 
$
10,927

 
$
441

 
$
(2
)
 
$
11,366

 
$
—


December 31, 2015
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,481

 
$
52

 
$
(5
)
 
$
2,528

 
$
—

Foreign
13,190

 
468

 
(213
)
 
13,445

 
(13
)
Corporate securities
15,028

 
355

 
(454
)
 
14,929

 
(28
)
Mortgage-backed securities
9,827

 
183

 
(52
)
 
9,958

 
(1
)
States, municipalities, and political subdivisions
2,623

 
110

 
(6
)
 
2,727

 
—

 
$
43,149

 
$
1,168

 
$
(730
)
 
$
43,587

 
$
(42
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
733

 
$
13

 
$
(1
)
 
$
745

 
$
—

Foreign
763

 
30

 
(8
)
 
785

 
—

Corporate securities
3,054

 
57

 
(55
)
 
3,056

 
—

Mortgage-backed securities
1,707

 
38

 
(2
)
 
1,743

 
—

States, municipalities, and political subdivisions
2,173

 
52

 
(2
)
 
2,223

 
—

 
$
8,430

 
$
190

 
$
(68
)
 
$
8,552

 
$
—

Schedule Of Amortized Cost And Fair Value Of Fixed Maturities And Related OTTI Recognized In AOCI 
September 30, 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
$
2,626

 
$
84

 
$
(2
)
 
$
2,708

 
$
—

Foreign
21,499

 
1,057

 
(48
)
 
22,508

 
(9
)
Corporate securities
22,860

 
977

 
(64
)
 
23,773

 
(9
)
Mortgage-backed securities
13,083

 
383

 
(5
)
 
13,461

 
(1
)
States, municipalities, and political subdivisions
18,562

 
357

 
(11
)
 
18,908

 
—

 
$
78,630

 
$
2,858

 
$
(130
)
 
$
81,358

 
$
(19
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
709

 
$
26

 
$
—

 
$
735

 
$
—

Foreign
694

 
45

 
—

 
739

 
—

Corporate securities
2,852

 
131

 
(2
)
 
2,981

 
—

Mortgage-backed securities
1,507

 
72

 
—

 
1,579

 
—

States, municipalities, and political subdivisions
5,165

 
167

 
—

 
5,332

 
—

 
$
10,927

 
$
441

 
$
(2
)
 
$
11,366

 
$
—


December 31, 2015
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,481

 
$
52

 
$
(5
)
 
$
2,528

 
$
—

Foreign
13,190

 
468

 
(213
)
 
13,445

 
(13
)
Corporate securities
15,028

 
355

 
(454
)
 
14,929

 
(28
)
Mortgage-backed securities
9,827

 
183

 
(52
)
 
9,958

 
(1
)
States, municipalities, and political subdivisions
2,623

 
110

 
(6
)
 
2,727

 
—

 
$
43,149

 
$
1,168

 
$
(730
)
 
$
43,587

 
$
(42
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
733

 
$
13

 
$
(1
)
 
$
745

 
$
—

Foreign
763

 
30

 
(8
)
 
785

 
—

Corporate securities
3,054

 
57

 
(55
)
 
3,056

 
—

Mortgage-backed securities
1,707

 
38

 
(2
)
 
1,743

 
—

States, municipalities, and political subdivisions
2,173

 
52

 
(2
)
 
2,223

 
—

 
$
8,430

 
$
190

 
$
(68
)
 
$
8,552

 
$
—

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

 
 
 
December 31

 
 
 
2016

 
 
 
2015

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

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
3,402

 
$
3,413

 
$
1,856

 
$
1,865

Due after 1 year through 5 years
25,152

 
25,865

 
14,936

 
15,104

Due after 5 years through 10 years
26,702

 
27,645

 
12,258

 
12,173

Due after 10 years
10,291

 
10,974

 
4,272

 
4,487

 
65,547

 
67,897

 
33,322

 
33,629

Mortgage-backed securities
13,083

 
13,461

 
9,827

 
9,958

 
$
78,630

 
$
81,358

 
$
43,149

 
$
43,587

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
458

 
$
462

 
$
492

 
$
495

Due after 1 year through 5 years
2,716

 
2,807

 
2,443

 
2,517

Due after 5 years through 10 years
2,815

 
2,919

 
2,292

 
2,313

Due after 10 years
3,431

 
3,599

 
1,496

 
1,484

 
9,420

 
9,787

 
6,723

 
6,809

Mortgage-backed securities
1,507

 
1,579

 
1,707

 
1,743

 
$
10,927

 
$
11,366

 
$
8,430

 
$
8,552

Schedule Of Cost And Fair Value Of Equity Securities 

September 30


December 31

(in millions of U.S. dollars)
2016


2015

Cost
$
695

 
$
441

Gross unrealized appreciation
122

 
74

Gross unrealized depreciation
(14
)
 
(18
)
Fair value
$
803

 
$
497

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
 
Nine Months Ended
 
 
September 30
 
September 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Fixed maturities:
 
 
 
 
 
 
OTTI on fixed maturities, gross
$
(7
)
 
$
(31
)
$
(85
)
 
$
(57
)
OTTI on fixed maturities recognized in OCI (pre-tax)
—

 
5

8

 
11

OTTI on fixed maturities, net
(7
)
 
(26
)
(77
)

(46
)
Gross realized gains excluding OTTI
47

 
19

149

 
91

Gross realized losses excluding OTTI
(13
)
 
(44
)
(228
)
 
(95
)
Total fixed maturities
27

 
(51
)
(156
)

(50
)
Equity securities:
 
 
 
 
 
 
OTTI on equity securities
(1
)
 
(3
)
(7
)
 
(4
)
Gross realized gains excluding OTTI
19

 
10

63

 
43

Gross realized losses excluding OTTI
(12
)
 
(5
)
(17
)
 
(7
)
Total equity securities
6

 
2

39


32

OTTI on other investments
(4
)
 
(1
)
(7
)
 
(1
)
Foreign exchange gains (losses)
29

 
(2
)
46

 
(73
)
Investment and embedded derivative instruments
1

 
(22
)
(85
)
 
6

Fair value adjustments on insurance derivative
89

 
(396
)
(270
)
 
(337
)
S&P put options and futures
(45
)
 
83

(88
)
 
69

Other derivative instruments
3

 
(9
)
1

 
(10
)
Other
(6
)
 
(1
)
10

 
4

Net realized gains (losses)
$
100

 
$
(397
)
$
(510
)

$
(360
)
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
 
Nine Months Ended
 
 
September 30
 
September 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Balance of credit losses related to securities still held – beginning of period
$
51

 
$
23

$
53

 
$
28

Additions where no OTTI was previously recorded
4

 
8

16

 
15

Additions where an OTTI was previously recorded
1

 
6

13

 
8

Reductions for securities sold during the period
(11
)
 
(5
)
(37
)
 
(19
)
Balance of credit losses related to securities still held – end of period
$
45

 
$
32

$
45


$
32

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
 
September 30, 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
$
436

 
$
(2
)
 
$
—

 
$
—

 
$
436

 
$
(2
)
Foreign
1,899

 
(20
)
 
409

 
(28
)
 
2,308

 
(48
)
Corporate securities
1,559

 
(21
)
 
750

 
(45
)
 
2,309

 
(66
)
Mortgage-backed securities
1,039

 
(3
)
 
292

 
(2
)
 
1,331

 
(5
)
States, municipalities, and political subdivisions
2,807

 
(10
)
 
50

 
(1
)
 
2,857

 
(11
)
Total fixed maturities
7,740

 
(56
)
 
1,501

 
(76
)
 
9,241

 
(132
)
Equity securities
133

 
(14
)
 
—

 
—

 
133

 
(14
)
Other investments
233

 
(27
)
 
—

 
—

 
233

 
(27
)
Total
$
8,106

 
$
(97
)
 
$
1,501

 
$
(76
)
 
$
9,607

 
$
(173
)
 
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2015
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
996

 
$
(5
)
 
$
153

 
$
(1
)
 
$
1,149

 
$
(6
)
Foreign
3,953

 
(148
)
 
436

 
(73
)
 
4,389

 
(221
)
Corporate securities
7,518

 
(371
)
 
738

 
(138
)
 
8,256

 
(509
)
Mortgage-backed securities
3,399

 
(42
)
 
516

 
(12
)
 
3,915

 
(54
)
States, municipalities, and political subdivisions
556

 
(6
)
 
42

 
(2
)
 
598

 
(8
)
Total fixed maturities
16,422

 
(572
)
 
1,885

 
(226
)
 
18,307

 
(798
)
Equity securities
131

 
(18
)
 
—

 
—

 
131

 
(18
)
Other investments
210

 
(11
)
 
—

 
—

 
210

 
(11
)
Total
$
16,763

 
$
(601
)
 
$
1,885

 
$
(226
)
 
$
18,648

 
$
(827
)
Schedule Of Components Of Restricted Assets 
The following table presents the components of restricted assets:
 
September 30

 
December 31

(in millions of U.S. dollars)
2016

 
2015

Trust funds
$
13,093

 
$
11,862

Deposits with non-U.S. regulatory authorities
2,338

 
2,075

Deposits with U.S. regulatory authorities
2,232

 
1,242

Assets pledged under repurchase agreements
1,464

 
1,459

Other pledged assets
433

 
392

 
$
19,560

 
$
17,030

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
September 30, 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
$
2,155

 
$
553

 
$
—

 
$
2,708

Foreign
—

 
22,405

 
103

 
22,508

Corporate securities
—

 
23,167

 
606

 
23,773

Mortgage-backed securities
—

 
13,415

 
46

 
13,461

States, municipalities, and political subdivisions
—

 
18,908

 
—

 
18,908

 
2,155

 
78,448

 
755

 
81,358

Equity securities
766

 
—

 
37

 
803

Short-term investments
2,127

 
1,359

 
62

 
3,548

Other investments (1)
404

 
250

 
223

 
877

Securities lending collateral
—

 
1,140

 
—

 
1,140

Investment derivative instruments
20

 
—

 
—

 
20

Other derivative instruments
14

 
—

 
—

 
14

Separate account assets
1,743

 
97

 
—

 
1,840

Total assets measured at fair value (1)
$
7,229

 
$
81,294

 
$
1,077

 
$
89,600

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
34

 
$
—

 
$
—

 
$
34

Other derivative instruments
—

 
—

 
8

 
8

GLB (2)
—

 
—

 
883

 
883

Total liabilities measured at fair value
$
34

 
$
—

 
$
891

 
$
925

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,498 million and other investments of $25 million at September 30, 2016 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
 
December 31, 2015
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
1,712

 
$
816

 
$
—

 
$
2,528

Foreign
—

 
13,388

 
57

 
13,445

Corporate securities
—

 
14,755

 
174

 
14,929

Mortgage-backed securities
—

 
9,905

 
53

 
9,958

States, municipalities, and political subdivisions
—

 
2,727

 
—

 
2,727

 
1,712

 
41,591

 
284

 
43,587

Equity securities
481

 
—

 
16

 
497

Short-term investments
7,171

 
3,275

 
—

 
10,446

Other investments (1)
347

 
230

 
212

 
789

Securities lending collateral
—

 
1,046

 
—

 
1,046

Investment derivative instruments
12

 
—

 
—

 
12

Separate account assets
1,464

 
88

 
—

 
1,552

Total assets measured at fair value (1)
$
11,187

 
$
46,230

 
$
512

 
$
57,929

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
13

 
$
—

 
$
—

 
$
13

Other derivative instruments
4

 
—

 
6

 
10

GLB (2)
—

 
—

 
609

 
609

Total liabilities measured at fair value
$
17

 
$
—

 
$
615

 
$
632


(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,477 million and other investments of $25 million at December 31, 2015 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
Fair Value And Maximum Future Funding Commitments Related To Investments 
The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:
 
 
 
 
 
September 30

 
 
 
December 31

 
Expected
Liquidation
Period of Underlying Assets
 
 
 
2016

 
 
 
2015

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

 
Maximum
Future Funding
Commitments

 
Fair
Value

 
Maximum
Future Funding
Commitments

Financial
5 to 9 Years
 
$
549

 
$
188

 
$
300

 
$
105

Real Assets
3 to 7 Years
 
520

 
274

 
474

 
140

Distressed
5 to 9 Years
 
463

 
196

 
261

 
218

Private Credit
3 to 7 Years
 
241

 
294

 
265

 
209

Traditional
3 to 9 Years
 
1,458

 
999

 
895

 
152

Vintage
1 to 2 Years
 
23

 
14

 
13

 
—

Investment funds
Not Applicable
 
244

 
—

 
269

 
—

 
 
 
$
3,498

 
$
1,965

 
$
2,477

 
$
824

Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations 
The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
(in millions of U.S. dollars, except for percentages)
Fair Value
 
 
Valuation
Technique
 
Significant
Unobservable Inputs
 
Ranges
September 30, 2016

 
December 31, 2015

 
 
 
GLB(1)
$
883

 
$
609

 
Actuarial model
 
Lapse rate
 
1% – 30%
 
 
 
 
 
 
 
Annuitization rate
 
0% – 55%
(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)

September 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance–Beginning of Period
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Transfers into Level 3
—

 
—

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
(1
)
 
6

 
—

 
3

—

4

 
—

—

Net Realized Gains/Losses
—

 
(4
)
 
—

 
—

—

—

 
—

(88
)
Purchases
20

 
348

 
—

 
—

12

8

 
—

—

Sales
(2
)
 
(18
)
 
(3
)
 
(3
)
—

—

 
—

—

Settlements
(1
)
 
(7
)
 
—

 
—

—

(5
)
 
(2
)
—

Balance–End of Period
$
103

 
$
606

 
$
46

 
$
37

$
62

$
223

 
$
8

$
883

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

 
$
(4
)
 
$
—

 
$
—

$
—

$
—

 
$
—

$
(88
)
(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.



  
 
Assets
 
 
 
 
Liabilities

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

 
Other
investments

 
Other derivative instruments

 
GLB(1)

September 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
56

 
$
167

 
$
55

 
$
2

 
$
214

 
$
3

 
$
347

Transfers into Level 3
 
1

 
2

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
 
1

 
1

 
—

 
2

 
(7
)
 
—

 
—

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

 
(1
)
 
—

 
4

 
397

Purchases
 
—

 
22

 
—

 
1

 
5

 
—

 
—

Sales
 
—

 
(5
)
 
(1
)
 
—

 
—

 
—

 
—

Settlements
 
(4
)
 
(3
)
 
—

 
—

 
(3
)
 
—

 
—

Balance–End of Period
 
$
53

 
$
183

 
$
54

 
$
4

 
$
209

 
$
7

 
$
744

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

 
$
—

 
$
(1
)
 
$
—

 
$
4

 
$
397

(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 $1.0 billion at September 30, 2015, and $615 million at June 30, 2015, which includes a fair value derivative adjustment of $744 million and $347 million, respectively.

 
 
 
 
 
 
 
 
 
Assets

 
Liabilities
 
Nine Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

September 30, 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
8

 
17

 
—

 
2

—

4

 
—

—

Net Realized Gains/Losses
(6
)
 
(12
)
 
—

 
1

—

—

 
2

274

Purchases (2)
52

 
472

 
1

 
23

62

22

 
2

—

Sales
(10
)
 
(48
)
 
(8
)
 
(5
)
—

—

 
—

—

Settlements
(5
)
 
(15
)
 
—

 
—

—

(15
)
 
(2
)
—

Balance–End of Period
$
103

 
$
606

 
$
46

 
$
37

$
62

$
223

 
$
8

$
883

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(5
)
 
$
(11
)
 
$
—

 
$
—

$
—

$
—

 
$
2

$
274

(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

  
 
Assets
 
 
 
Liabilities

Nine Months Ended
 
Available-for-Sale Debt Securities
 
 
 
 
Other investments

 
Other
derivative
instruments

GLB(1)

September 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
Equity
securities

 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
22

 
$
187

 
$
15

 
$
2

 
$
204

 
$
4

$
406

Transfers into Level 3
 
29

 
15

 
—

 
—

 
—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
 
(1
)
 
1

 
—

 
2

 
(7
)
 
—

—

Net Realized Gains/Losses
 
(1
)
 
(4
)
 
—

 
(2
)
 
—

 
3

338

Purchases
 
9

 
38

 
41

 
2

 
21

 
—

—

Sales
 
(1
)
 
(10
)
 
(1
)
 
—

 
—

 
—

—

Settlements
 
(4
)
 
(44
)
 
(1
)
 
—

 
(9
)
 
—

—

Balance–End of Period
 
$
53


$
183


$
54

 
$
4


$
209

 
$
7

$
744

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
(1
)
 
$
(2
)
 
$
—

 
$
(2
)
 
$
—

 
$
3

$
338

(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 $1.0 billion at September 30, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $744 million and $406 million, respectively.
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)

September 30, 2016
Foreign

 
Corporate
securities

 
MBS

 
 
(in millions of U.S. dollars)
 
 
 
 
Balance–Beginning of Period
$
87

 
$
281

 
$
49

 
$
37

$
50

$
216

 
$
10

$
971

Transfers into Level 3
—

 
—

 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
(1
)
 
6

 
—

 
3

—

4

 
—

—

Net Realized Gains/Losses
—

 
(4
)
 
—

 
—

—

—

 
—

(88
)
Purchases
20

 
348

 
—

 
—

12

8

 
—

—

Sales
(2
)
 
(18
)
 
(3
)
 
(3
)
—

—

 
—

—

Settlements
(1
)
 
(7
)
 
—

 
—

—

(5
)
 
(2
)
—

Balance–End of Period
$
103

 
$
606

 
$
46

 
$
37

$
62

$
223

 
$
8

$
883

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

 
$
(4
)
 
$
—

 
$
—

$
—

$
—

 
$
—

$
(88
)
(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.



  
 
Assets
 
 
 
 
Liabilities

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

 
Other
investments

 
Other derivative instruments

 
GLB(1)

September 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
56

 
$
167

 
$
55

 
$
2

 
$
214

 
$
3

 
$
347

Transfers into Level 3
 
1

 
2

 
—

 
—

 
—

 
—

 
—

Change in Net Unrealized Gains (Losses) included in OCI
 
1

 
1

 
—

 
2

 
(7
)
 
—

 
—

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

 
(1
)
 
—

 
4

 
397

Purchases
 
—

 
22

 
—

 
1

 
5

 
—

 
—

Sales
 
—

 
(5
)
 
(1
)
 
—

 
—

 
—

 
—

Settlements
 
(4
)
 
(3
)
 
—

 
—

 
(3
)
 
—

 
—

Balance–End of Period
 
$
53

 
$
183

 
$
54

 
$
4

 
$
209

 
$
7

 
$
744

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

 
$
—

 
$
(1
)
 
$
—

 
$
4

 
$
397

(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 $1.0 billion at September 30, 2015, and $615 million at June 30, 2015, which includes a fair value derivative adjustment of $744 million and $347 million, respectively.

 
 
 
 
 
 
 
 
 
Assets

 
Liabilities
 
Nine Months Ended
Available-for-Sale Debt Securities
 
 
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

September 30, 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
8

 
17

 
—

 
2

—

4

 
—

—

Net Realized Gains/Losses
(6
)
 
(12
)
 
—

 
1

—

—

 
2

274

Purchases (2)
52

 
472

 
1

 
23

62

22

 
2

—

Sales
(10
)
 
(48
)
 
(8
)
 
(5
)
—

—

 
—

—

Settlements
(5
)
 
(15
)
 
—

 
—

—

(15
)
 
(2
)
—

Balance–End of Period
$
103

 
$
606

 
$
46

 
$
37

$
62

$
223

 
$
8

$
883

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
$
(5
)
 
$
(11
)
 
$
—

 
$
—

$
—

$
—

 
$
2

$
274

(1) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

  
 
Assets
 
 
 
Liabilities

Nine Months Ended
 
Available-for-Sale Debt Securities
 
 
 
 
Other investments

 
Other
derivative
instruments

GLB(1)

September 30, 2015
 
Foreign

 
Corporate
securities

 
MBS

 
Equity
securities

 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Balance–Beginning of Period
 
$
22

 
$
187

 
$
15

 
$
2

 
$
204

 
$
4

$
406

Transfers into Level 3
 
29

 
15

 
—

 
—

 
—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
 
(1
)
 
1

 
—

 
2

 
(7
)
 
—

—

Net Realized Gains/Losses
 
(1
)
 
(4
)
 
—

 
(2
)
 
—

 
3

338

Purchases
 
9

 
38

 
41

 
2

 
21

 
—

—

Sales
 
(1
)
 
(10
)
 
(1
)
 
—

 
—

 
—

—

Settlements
 
(4
)
 
(44
)
 
(1
)
 
—

 
(9
)
 
—

—

Balance–End of Period
 
$
53


$
183


$
54

 
$
4


$
209

 
$
7

$
744

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
(1
)
 
$
(2
)
 
$
—

 
$
(2
)
 
$
—

 
$
3

$
338

(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 $1.0 billion at September 30, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $744 million and $406 million, respectively.

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:
September 30, 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
$
628

 
$
107

 
$
—

 
$
735

 
$
709

Foreign
—

 
739

 
—

 
739

 
694

Corporate securities
—

 
2,968

 
13

 
2,981

 
2,852

Mortgage-backed securities
—

 
1,579

 
—

 
1,579

 
1,507

States, municipalities, and political subdivisions
—

 
5,332

 
—

 
5,332

 
5,165

Total assets
$
628

 
$
10,725

 
$
13

 
$
11,366

 
$
10,927

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,406

 
$
—

 
$
1,406

 
$
1,406

Short-term debt
—

 
508

 
—

 
508

 
500

Long-term debt
—

 
13,762

 
—

 
13,762

 
12,621

Trust preferred securities
—

 
463

 
—

 
463

 
308

Total liabilities
$
—

 
$
16,139

 
$
—

 
$
16,139

 
$
14,835


December 31, 2015
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
583

 
$
162

 
$
—

 
$
745

 
$
733

Foreign
—

 
785

 
—

 
785

 
763

Corporate securities
—

 
3,042

 
14

 
3,056

 
3,054

Mortgage-backed securities
—

 
1,743

 
—

 
1,743

 
1,707

States, municipalities, and political subdivisions
—

 
2,223

 
—

 
2,223

 
2,173

Total assets
$
583


$
7,955


$
14


$
8,552


$
8,430

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,404

 
$
—

 
$
1,404

 
$
1,404

Long-term debt
—

 
9,678

 
—

 
9,678

 
9,389

Trust preferred securities
—

 
446

 
—

 
446

 
307

Total liabilities
$
—

 
$
11,528

 
$
—

 
$
11,528

 
$
11,100

Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts (Tables)
Schedule Of Guaranteed Minimum Death Benefits And Guaranteed Minimum Income Benefits Income And Expense
The following table presents income and expenses relating to GMDB and GLB reinsurance. GLBs include GMIBs as well as some GMABs originating in Japan.
 
Three Months Ended
 
 
Nine Months Ended
 
 
September 30
 
 
September 30
 
(in millions of U.S. dollars)
2016

 
2015

 
2016

 
2015

GMDB
 
 
 
 
 
 
 
Net premiums earned
$
15

 
$
15

 
$
42

 
$
47

Policy benefits and other reserve adjustments
$
11

 
$
5

 
$
34

 
$
25

GLB
 
 
 
 
 
 
 
Net premiums earned
$
28

 
$
30

 
$
88

 
$
92

Policy benefits and other reserve adjustments
9

 
15

 
24

 
34

Net realized gains (losses)
86

 
(397
)
 
(285
)
 
(338
)
Loss recognized in Net income
$
105

 
$
(382
)
 
$
(221
)
 
$
(280
)
Less: Net cash received
15

 
20

 
57

 
74

Net (increase) decrease in liability
$
90

 
$
(402
)
 
$
(278
)
 
$
(354
)
Goodwill and other intangible assets Goodwill and other intangible assets (Tables)
Schedule of Goodwill [Table Text Block] 
The following table presents a roll-forward of Goodwill by segment for the nine months ended September 30, 2016:
(in millions of U.S. dollars)
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global Reinsurance

 
Life Insurance

 
Chubb Consolidated

Balance at December 31, 2015
$
1,203

 
$
196

 
$
134

 
$
2,078

 
$
365

 
$
820

 
$
4,796

Acquisition of Chubb Corp
5,711

 
2,025

 
—

 
2,794

 
—

 
—

 
10,530

Foreign exchange revaluation
43

 
13

 
—

 
98

 
—

 
1

 
155

Balance at September 30, 2016
$
6,957

 
$
2,234

 
$
134

 
$
4,970

 
$
365

 
$
821

 
$
15,481

Intangible assets acquired as part of Chubb Corp acquisition 
The preliminary purchase price allocation to intangible assets recorded in connection with the Chubb Corp acquisition and their related useful lives are as follows:
(in millions of U.S. dollars)
Preliminary purchase price allocation

 
Estimated useful life
Definite life
 
 
 
Unearned premium reserves (UPR) intangible asset
$
1,550

 
1 year
Agency distribution relationships and renewal rights
3,150

 
24 years
Internally developed technology
95

 
3 years
Indefinite life
 
 
 
Trademarks
2,800

 
Indefinite
Licenses
50

 
Indefinite
Syndicate capacity
10

 
Indefinite
Total identified intangible assets
$
7,655

 
 
Intangible Asset Amortization for the Next 5 Years [Table Text Block] 
The following table presents, as of September 30, 2016, the expected estimated pre-tax amortization expense (benefit), at current foreign currency exchange rates, for the fourth quarter of 2016 and the next five years, related to purchased intangibles as well as the fair value adjustment to Unpaid losses and loss expenses described above:
 
Associated with the Chubb Corp Acquisition
 
 
 
 
 
For the Year Ending December 31
(in millions of U.S. dollars)
Agency distribution relationships and renewal rights

 
Internally developed technology

 
Fair value adjustment to Unpaid losses and loss expenses

 
Total

 
Other intangible assets

 
Total Amortization of purchased intangibles

Fourth quarter of 2016
$
33

 
$
8

 
$
(61
)
 
$
(20
)
 
$
23

 
$
3

2017
296

 
32

 
(161
)
 
167

 
85

 
252

2018
324

 
32

 
(102
)
 
254

 
73

 
327

2019
281

 
—

 
(62
)
 
219

 
66

 
285

2020
240

 
—

 
(36
)
 
204

 
59

 
263

2021
217

 
—

 
(20
)
 
197

 
53

 
250

Total
$
1,391

 
$
72

 
$
(442
)
 
$
1,021

 
$
359

 
$
1,380

Debt (Tables)
Schedule of Debt [Table Text Block]
 
September 30

 
December 31

 
 
(in millions of U.S. dollars)
2016

 
2015

 
Early Redemption Option
Repurchase agreements (weighted average interest rate of 0.8% in 2016 and 0.6% in 2015)
$
1,406

 
$
1,404

 
None
Short-term debt
 
 
 
 
 
Chubb INA senior notes:
 
 
 
 
 
$500 million 5.7% due February 2017
$
500

 
$
—

 
Make-whole premium plus 0.20%
Long-term debt
 
 
 
 
 
Chubb INA senior notes:
 
 
 
 
 
$500 million 5.7% due February 2017
$
—

 
$
500

 
Make-whole premium plus 0.20%
$300 million 5.8% due March 2018
300

 
299

 
Make-whole premium plus 0.35%
$600 million 5.75% due May 2018
641

 
—

 
Make-whole premium plus 0.30%
$100 million 6.6% due August 2018
109

 
—

 
None
$500 million 5.9% due June 2019
498

 
497

 
Make-whole premium plus 0.40%
$1,300 million 2.3% due November 2020
1,294

 
1,294

 
Make-whole premium plus 0.15%
$1,000 million 2.875% due November 2022
994

 
994

 
Make-whole premium plus 0.20%
$475 million 2.7% due March 2023
471

 
471

 
Make-whole premium plus 0.10%
$700 million 3.35% due May 2024
694

 
694

 
Make-whole premium plus 0.15%
$800 million 3.15% due March 2025
794

 
794

 
Make-whole premium plus 0.15%
$1,500 million 3.35% due May 2026
1,488

 
1,487

 
Make-whole premium plus 0.20%
$100 million 8.875% due August 2029
100

 
100

 
None
$200 million 6.8% due November 2031
258

 
—

 
Make-whole premium plus 0.25%
$300 million 6.7% due May 2036
297

 
297

 
Make-whole premium plus 0.20%
$800 million 6.0% due May 2037
982

 
—

 
Make-whole premium plus 0.20%
$600 million 6.5% due May 2038
778

 
—

 
Make-whole premium plus 0.30%
$475 million 4.15% due March 2043
469

 
469

 
Make-whole premium plus 0.15%
$1,500 million 4.35% due November 2045
1,482

 
1,482

 
Make-whole premium plus 0.25%
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
961

 
—

 
Make-whole premium plus 0.25%-0.50%
Other long-term debt (2.75% to 7.1% due December 2019 to September 2020)
11

 
11

 
None
Total long-term debt
$
12,621

 
$
9,389

 
 
Trust preferred securities
 
 
 
 
 
Chubb INA capital securities due April 2030
$
308

 
$
307

 
Redemption prices(2)
(1) 
6.375% interest rate through April 14, 2017; interest rate equal to three month LIBOR rate plus 2.25% thereafter.
(2) 
Redemption price is equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the debentures from the redemption date to April 1, 2030.
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:
 
 
 
 
 
September 30, 2016
 
 
 
 
December 31, 2015
 
 
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)
 
$
10

 
$
(32
)
 
$
2,025

 
$
7

 
$
(11
)
 
$
1,029

Cross-currency swaps
OA / (AP)
 
—

 
—

 
95

 
—

 
—

 
95

Options/Futures contracts on bonds and equities
OA / (AP)
 
10

 
(2
)
 
1,353

 
5

 
(2
)
 
751

Convertible securities (1)
FM AFS / ES
 
5

 
—

 
8

 
31

 
—

 
40

 
 
 
$
25

 
$
(34
)
 
$
3,481

 
$
43

 
$
(13
)
 
$
1,915

Other derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Futures contracts on equities (2)
OA / (AP)
 
$
4

 
$
—

 
$
1,275

 
$
—

 
$
(4
)
 
$
1,197

Other
OA / (AP)
 
10

 
(8
)
 
243

 
—

 
(6
)
 
15

 
 
 
$
14

 
$
(8
)
 
$
1,518

 
$
—

 
$
(10
)
 
$
1,212

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(1,166
)
 
$
1,436

 
$
—

 
$
(888
)
 
$
1,155


(1) 
Includes fair value of embedded derivatives.
(2) 
Related to GMDB and GLB blocks of business.
(3) 
Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.
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

September 30, 2016
 
Overnight and Continuous

(in millions of U.S. dollars)
 
Collateral held under securities lending agreements:
 
 
Cash
 
$
449

U.S. Treasury and agency
 
53

Foreign
 
324

Corporate securities
 
4

Mortgage-backed securities
 
38

Equity securities
 
272

 
 
$
1,140

Gross amount of recognized liability for securities lending payable
 
$
1,141

Difference (1)
 
$
(1
)
(1) 
The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable due to accrued interest recorded in the securities lending payable.
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
 
September 30, 2016
Up to 30 Days

 
30 - 90 Days

 
Greater than
90 Days

 
Total

(in millions of U.S. dollars)
 
 
 
Collateral pledged under repurchase agreements:
 
 
 
 
 
 
 
U.S. Treasury and agency
$
5

 
$
—

 
$
232

 
$
237

Mortgage-backed securities
408

 
484

 
335

 
1,227

 
$
413

 
$
484

 
$
567

 
$
1,464

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
 
 
$
1,406

Difference(1)
 
 
 
 
 
 
$
58

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

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
 
Nine Months Ended
 
 
September 30
 
September 30
 
(in millions of U.S. dollars)
2016

 
2015

2016

 
2015

Investment and embedded derivative instruments
 
 
 
 
 
 
Foreign currency forward contracts
$
(10
)
 
$
15

$
(30
)
 
$
30

All other futures contracts and options
8

 
(23
)
(63
)
 
(10
)
Convertible securities(1)
3

 
(14
)
8

 
(14
)
Total investment and embedded derivative instruments
$
1

 
$
(22
)
$
(85
)

$
6

GLB and other derivative instruments
 
 
 
 
 
 
GLB(2)
$
89

 
$
(396
)
$
(270
)
 
$
(337
)
Futures contracts on equities(3)
(45
)
 
84

(88
)
 
71

Options on equity market indices(3)
—

 
(1
)
—

 
(2
)
Other
3

 
(9
)
1

 
(10
)
Total GLB and other derivative instruments
$
47

 
$
(322
)
$
(357
)

$
(278
)
 
$
48

 
$
(344
)
$
(442
)

$
(272
)
(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
 
 
Nine Months Ended
 
 
September 30
 
 
September 30
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

 
CHF

 
USD

Dividends – par value reduction
—

 
$
—

 
—

 
$
—

 
—

 
$
—

 
0.62

 
$
0.65

Dividends – distributed from capital contribution reserves
0.67

 
0.69

 
0.65

 
0.67

 
2.01

 
2.05

 
1.27

 
1.34

Total dividend distributions per common share
0.67

 
$
0.69

 
0.65

 
$
0.67

 
2.01

 
$
2.05

 
1.89

 
$
1.99

Postretirement benefits (Tables)
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] 
At the date of the acquisition of Chubb Corp, we assumed the following postretirement benefit plan assets and obligations:
 
Pension Benefits
 
 
Other Postretirement Benefits
 
January 14, 2016
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

(in millions of U.S. dollars)
 
 
 
 
 
Fair value of plan assets
$
2,473

 
$
315

 
$
2,788

 
$
138

 
$
—

 
$
138

Benefit obligations
(3,153
)
 
(372
)
 
(3,525
)
 
(491
)
 
(15
)
 
(506
)
Funded status
$
(680
)
 
$
(57
)
 
$
(737
)
 
$
(353
)
 
$
(15
)
 
$
(368
)
Schedule of Net Benefit Costs [Table Text Block] 
The following tables summarize the components of net periodic benefit costs for our pension and postretirement benefit plans recognized in the Consolidated statements of operations:
Three Months Ended September 30
Pension Benefits
 
 
Other Postretirement Benefits
 
(in millions of U.S. dollars)
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
20

 
$
6

 
$
26

 
$
4

 
$
—

 
$
4

     Interest cost
26

 
8

 
34

 
4

 
—

 
4

     Expected return on plan assets
(42
)
 
(10
)
 
(52
)
 
(3
)
 
—

 
(3
)
     Amortization of net actuarial loss
—

 
—

 
—

 
—

 
—

 
—

     Curtailments
(4
)
 
—

 
(4
)
 
—

 
—

 
—

     Settlements
(1
)
 
—

 
(1
)
 
—

 
—

 
—

             Net periodic benefit cost
$
(1
)
 
$
4

 
$
3

 
$
5

 
$
—

 
$
5

2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
2

 
$
2

 
 
 
 
 
 
     Interest cost
—

 
5

 
5

 
 
 
 
 
 
     Expected return on plan assets
—

 
(7
)
 
(7
)
 
 
 
 
 
 
     Amortization of net actuarial loss
—

 
—

 
—

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
—

 
$
—

 
 
 
 
 
 
Nine Months Ended September 30
Pension Benefits
 
 
Other Postretirement Benefits
 
(in millions of U.S. dollars)
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
57

 
$
15

 
$
72

 
$
8

 
$
1

 
$
9

     Interest cost
80

 
24

 
104

 
13

 
—

 
13

     Expected return on plan assets
(121
)
 
(30
)
 
(151
)
 
(7
)
 
—

 
(7
)
     Amortization of net actuarial loss
—

 
2

 
2

 
—

 
—

 
—

     Curtailments
(4
)
 
—

 
(4
)
 
—

 
—

 
—

     Settlements
(1
)
 
—

 
(1
)
 
—

 
—

 
—

             Net periodic benefit cost
$
11

 
$
11

 
$
22

 
$
14

 
$
1

 
$
15

2015
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
     Service cost
$
—

 
$
5

 
$
5

 
 
 
 
 
 
     Interest cost
—

 
15

 
15

 
 
 
 
 
 
     Expected return on plan assets
—

 
(21
)
 
(21
)
 
 
 
 
 
 
     Amortization of net actuarial loss
—

 
2

 
2

 
 
 
 
 
 
             Net periodic benefit cost
$
—

 
$
1

 
$
1

 
 
 
 
 
 
Schedule of Assumptions Used [Table Text Block] 
The weighted-average assumptions used to determine net pension and other postretirement benefit costs were as follows:
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
U.S. Plans

 
Non-U.S. Plans

September 30, 2016
 
 
 
 
 
 
 
Discount rate
4.28
%
 
3.74
%
 
4.41
%
 
4.30
%
Rate of compensation increase
4.00
%
 
3.40
%
 
N/A

 
N/A

Expected long-term rate of return on plan assets
7.00
%
 
4.90
%
 
7.00
%
 
N/A

December 31, 2015

 

 

 

Discount rate
N/A

 
3.51
%
 
N/A

 
N/A

Rate of compensation increase
N/A

 
3.09
%
 
N/A

 
N/A

Expected long-term rate of return on plan assets
N/A

 
4.81
%
 
N/A

 
N/A

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
 
 
 
 
 
 
September 30, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
3,110

 
$
1,011

 
$
849

 
$
1,940

 
$
131

 
$
532

 
$
—

 
$
7,573

Net premiums earned
3,086

 
1,081

 
819

 
2,034

 
156

 
512

 
—

 
7,688

Losses and loss expenses
1,863

 
594

 
683

 
843

 
49

 
174

 
63

 
4,269

Policy benefits
—

 
—

 
—

 
—

 
—

 
155

 
—

 
155

Policy acquisition costs
522

 
229

 
48

 
546

 
42

 
127

 
—

 
1,514

Administrative expenses
275

 
89

 
1

 
261

 
12

 
77

 
57

 
772

Underwriting income (loss)
426

 
169

 
87

 
384

 
53

 
(21
)
 
(120
)
 
978

Net investment income (loss)
477

 
53

 
5

 
152

 
67

 
71

 
(86
)
 
739

Other (income) expense
3

 
2

 
—

 
(6
)
 
—

 
(20
)
 
(70
)
 
(91
)
Amortization expense (benefit) of purchased intangibles
—

 
4

 
7

 
12

 
—

 
1

 
(20
)
 
4

Segment income (loss)
900

 
216

 
85

 
530

 
120

 
69

 
(116
)
 
1,804

Net realized gains including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
100

 
100

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
152

 
152

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
115

 
115

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
277

 
277

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(560
)
 
$
1,360


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Three Months Ended
 
 
 
 
 
September 30, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
1,433

 
$
278

 
$
737

 
$
1,584

 
$
185

 
$
492

 
$
—

 
$
4,709

Net premiums earned
1,410

 
272

 
739

 
1,615

 
203

 
480

 
—

 
4,719

Losses and loss expenses
913

 
179

 
620

 
674

 
20

 
153

 
84

 
2,643

Policy benefits
—

 
—

 
—

 
—

 
—

 
89

 
—

 
89

Policy acquisition costs
142

 
13

 
42

 
405

 
52

 
117

 
—

 
771

Administrative expenses
154

 
36

 
—

 
246

 
12

 
74

 
46

 
568

Underwriting income (loss)
201

 
44

 
77

 
290

 
119

 
47

 
(130
)
 
648

Net investment income
260

 
7

 
5

 
132

 
76

 
66

 
3

 
549

Other (income) expense
(3
)
 
1

 
(1
)
 
(6
)
 
(4
)
 
48

 
(23
)
 
12

Amortization of purchased intangibles
—

 
31

 
8

 
12

 
—

 
—

 
—

 
51

Segment income (loss)
464

 
19

 
75

 
416

 
199

 
65

 
(104
)
 
1,134

Net realized gains (losses) including OTTI


 
 
 
 
 
 
 
 
 
 
 
(397
)
 
(397
)
Interest expense


 
 
 
 
 
 
 
 
 
 
 
68

 
68

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
9

 
9

Income tax expense


 
 
 
 
 
 
 
 
 
 
 
132

 
132

Net income (loss)


 
 
 
 
 
 
 
 
 
 
 
$
(710
)
 
$
528


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Nine Months Ended
 
 
 
 
 
 
September 30, 2016
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
8,657

 
$
3,113

 
$
1,288

 
$
6,012

 
$
562

 
$
1,575

 
$
—

 
$
21,207

Net premiums earned
9,130

 
3,245

 
1,169

 
6,082

 
543

 
1,521

 
—

 
21,690

Losses and loss expenses
5,581

 
1,916

 
937

 
2,953

 
225

 
498

 
87

 
12,197

Policy benefits
—

 
—

 
—

 
—

 
—

 
427

 
—

 
427

Policy acquisition costs
1,549

 
747

 
77

 
1,586

 
142

 
386

 
—

 
4,487

Administrative expenses
840

 
275

 
(1
)
 
801

 
40

 
226

 
192

 
2,373

Underwriting income (loss)
1,160

 
307

 
156

 
742

 
136

 
(16
)
 
(279
)
 
2,206

Net investment income (loss)
1,371

 
155

 
15

 
445

 
199

 
207

 
(271
)
 
2,121

Other (income) expense
(6
)
 
6

 
—

 
(16
)
 
(3
)
 
(14
)
 
(59
)
 
(92
)
Amortization expense (benefit) of purchased intangibles
—

 
16

 
22

 
36

 
—

 
2

 
(60
)
 
16

Segment income (loss)
2,537

 
440

 
149

 
1,167

 
338

 
203

 
(431
)
 
4,403

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(510
)
 
(510
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
451

 
451

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
361

 
361

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
556

 
556

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(2,309
)
 
$
2,525


 
North America Commercial P&C Insurance

 
North America Personal P&C Insurance

 
North America Agricultural Insurance

 
Overseas General Insurance

 
Global
Reinsurance

 
Life Insurance

 
Corporate

 
Chubb
Consolidated

For the Nine Months Ended
 
 
 
 
 
September 30, 2015
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
4,158

 
$
958

 
$
1,204

 
$
5,047

 
$
719

 
$
1,483

 
$
—

 
$
13,569

Net premiums earned
4,209

 
687

 
1,124

 
4,896

 
649

 
1,441

 
—

 
13,006

Losses and loss expenses
2,744

 
446

 
913

 
2,304

 
191

 
442

 
142

 
7,182

Policy benefits
—

 
—

 
—

 
—

 
—

 
384

 
—

 
384

Policy acquisition costs
403

 
43

 
61

 
1,190

 
166

 
342

 
—

 
2,205

Administrative expenses
459

 
89

 
3

 
756

 
37

 
221

 
135

 
1,700

Underwriting income (loss)
603

 
109

 
147

 
646

 
255

 
52

 
(277
)
 
1,535

Net investment income
780

 
19

 
17

 
409

 
230

 
198

 
9

 
1,662

Other (income) expense
(5
)
 
1

 
1

 
(12
)
 
(5
)
 
32

 
(73
)
 
(61
)
Amortization of purchased intangibles
—

 
63

 
22

 
50

 
—

 
1

 
—

 
136

Segment income (loss)
1,388

 
64

 
141

 
1,017

 
490

 
217

 
(195
)
 
3,122

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(360
)
 
(360
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
207

 
207

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
9

 
9

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
395

 
395

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(1,166
)
 
$
2,151

Earnings per share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
 
Three Months Ended
 
 
Nine Months Ended
 
 
September 30
 
 
September 30
 
(in millions of U.S. dollars, except share and per share data)
2016

 
2015

 
2016

 
2015

Numerator:
 
 
 
 
 
 
 
Net income
$
1,360

 
$
528

 
$
2,525

 
$
2,151

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
 
 
Weighted-average shares outstanding
468,021,093

 
324,210,936

 
460,631,794

 
325,904,502

Denominator for diluted earnings per share:
 
 
 
 

 

Share-based compensation plans
3,375,269

 
2,962,484

 
3,439,017

 
3,269,724

Weighted-average shares outstanding and assumed conversions
471,396,362

 
327,173,420

 
464,070,811

 
329,174,226

Basic earnings per share
$
2.90

 
$
1.63

 
$
5.48

 
$
6.60

Diluted earnings per share
$
2.88

 
$
1.62

 
$
5.44

 
$
6.53

Potential anti-dilutive share conversions
1,306,710

 
1,907,815

 
1,635,337

 
1,503,830

Information provided in connection with outstanding debt of subsidiaries (Tables)
Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet at September 30, 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
$
25

 
$
812

 
$
100,199

 
$
—

 
$
101,036

Cash (1)
6

 
2

 
2,158

 
(1,296
)
 
870

Insurance and reinsurance balances receivable
—

 
—

 
11,392

 
(2,899
)
 
8,493

Reinsurance recoverable on losses and loss expenses
—

 
—

 
23,642

 
(10,194
)
 
13,448

Reinsurance recoverable on policy benefits
—

 
—

 
1,167

 
(972
)
 
195

Value of business acquired
—

 
—

 
368

 
—

 
368

Goodwill and other intangible assets
—

 
—

 
22,472

 
—

 
22,472

Investments in subsidiaries
38,403

 
50,316

 
—

 
(88,719
)
 
—

Due from subsidiaries and affiliates, net
11,186

 
—

 
—

 
(11,186
)
 
—

Other assets
5

 
366

 
18,856

 
(4,299
)
 
14,928

Total assets
$
49,625

 
$
51,496

 
$
180,254

 
$
(119,565
)
 
$
161,810

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,882

 
$
(9,535
)
 
$
61,347

Unearned premiums
—

 
—

 
18,773

 
(3,719
)
 
15,054

Future policy benefits
—

 
—

 
5,982

 
(972
)
 
5,010

Due to subsidiaries and affiliates, net
—

 
10,996

 
190

 
(11,186
)
 
—

Affiliated notional cash pooling programs (1)
927

 
369

 
—

 
(1,296
)
 
—

Repurchase agreements
—

 
—

 
1,406

 
—

 
1,406

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,610

 
11

 
—

 
12,621

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
326

 
1,588

 
19,416

 
(4,138
)
 
17,192

Total liabilities
1,253

 
26,371

 
116,660

 
(30,846
)
 
113,438

Total shareholders’ equity
48,372

 
25,125

 
63,594

 
(88,719
)
 
48,372

Total liabilities and shareholders’ equity
$
49,625

 
$
51,496

 
$
180,254

 
$
(119,565
)
 
$
161,810


(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
 




Condensed Consolidating Balance Sheet at December 31, 2015

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

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
28

 
$
7,839

 
$
58,384

 
$
—

 
$
66,251

Cash (1)
1

 
2

 
2,743

 
(971
)
 
1,775

Insurance and reinsurance balances receivable
—

 
—

 
6,075

 
(752
)
 
5,323

Reinsurance recoverable on losses and loss expenses
—

 
—

 
20,124

 
(8,738
)
 
11,386

Reinsurance recoverable on policy benefits
—

 
—

 
1,129

 
(942
)
 
187

Value of business acquired
—

 
—

 
395

 
—

 
395

Goodwill and other intangible assets
—

 
—

 
5,683

 
—

 
5,683

Investments in subsidiaries
29,612

 
18,386

 
—

 
(47,998
)
 
—

Due from subsidiaries and affiliates, net
644

 
1,800

 
—

 
(2,444
)
 
—

Other assets
8

 
457

 
14,434

 
(3,593
)
 
11,306

Total assets
$
30,293

 
$
28,484

 
$
108,967

 
$
(65,438
)
 
$
102,306

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
45,490

 
$
(8,187
)
 
$
37,303

Unearned premiums
—

 
—

 
10,243

 
(1,804
)
 
8,439

Future policy benefits
—

 
—

 
5,749

 
(942
)
 
4,807

Due to subsidiaries and affiliates, net
—

 
—

 
2,444

 
(2,444
)
 
—

Affiliated notional cash pooling programs (1)
882

 
89

 
—

 
(971
)
 
—

Repurchase agreements
—

 
—

 
1,404

 
—

 
1,404

Long-term debt
—

 
9,378

 
11

 
—

 
9,389

Trust preferred securities
—

 
307

 
—

 
—

 
307

Other liabilities
276

 
1,422

 
12,916

 
(3,092
)
 
11,522

Total liabilities
1,158

 
11,196

 
78,257

 
(17,440
)
 
73,171

Total shareholders’ equity
29,135

 
17,288

 
30,710

 
(47,998
)
 
29,135

Total liabilities and shareholders’ equity
$
30,293

 
$
28,484

 
$
108,967

 
$
(65,438
)
 
$
102,306

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. 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, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Statement Of Operations and Comprehensive Income 
Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended September 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
$
—

 
$
—

 
$
7,573

 
$
—

 
$
7,573

Net premiums earned
—

 
—

 
7,688

 
—

 
7,688

Net investment income
1

 
2

 
736

 
—

 
739

Equity in earnings of subsidiaries
1,292

 
748

 
—

 
(2,040
)
 
—

Net realized gains (losses) including OTTI
—

 
(2
)
 
102

 
—

 
100

Losses and loss expenses
—

 
—

 
4,269

 
—

 
4,269

Policy benefits
—

 
—

 
155

 
—

 
155

Policy acquisition costs and administrative expenses
15

 
12

 
2,259

 
—

 
2,286

Interest (income) expense
(93
)
 
233

 
12

 
—

 
152

Other (income) expense
(7
)
 
6

 
(90
)
 
—

 
(91
)
Amortization of purchased intangibles
—

 
—

 
4

 
—

 
4

Chubb integration expenses
12

 
16

 
87

 
—

 
115

Income tax expense (benefit)
6

 
(136
)
 
407

 
—

 
277

Net income
$
1,360

 
$
617

 
$
1,423

 
$
(2,040
)
 
$
1,360

Comprehensive income
$
1,376

 
$
627

 
$
1,439

 
$
(2,066
)
 
$
1,376



Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended September 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

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

 
$
—

 
$
4,709

 
$
—

 
$
4,709

Net premiums earned
—

 
—

 
4,719

 
—

 
4,719

Net investment income
1

 
1

 
547

 
—

 
549

Equity in earnings of subsidiaries
488

 
255

 
—

 
(743
)
 
—

Net realized gains (losses) including OTTI
—

 
(4
)
 
(393
)
 
—

 
(397
)
Losses and loss expenses
—

 
—

 
2,643

 
—

 
2,643

Policy benefits
—

 
—

 
89

 
—

 
89

Policy acquisition costs and administrative expenses
15

 
7

 
1,317

 
—

 
1,339

Interest (income) expense
(8
)
 
68

 
8

 
—

 
68

Other (income) expense
(51
)
 
(5
)
 
68

 
—

 
12

Amortization of purchased intangibles
—

 
—

 
51

 
—

 
51

Chubb integration expenses
1

 
8

 
—

 
—

 
9

Income tax expense (benefit)
4

 
(31
)
 
159

 
—

 
132

Net income
$
528

 
$
205

 
$
538

 
$
(743
)
 
$
528

Comprehensive income (loss)
$
(271
)
 
$
(265
)
 
$
(262
)
 
$
527

 
$
(271
)



Condensed Consolidating Statements of Operations and Comprehensive Income
Nine Months Ended September 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
$
—

 
$
—

 
$
21,207

 
$
—

 
$
21,207

Net premiums earned
—

 
—

 
21,690

 
—

 
21,690

Net investment income
3

 
9

 
2,109

 
—

 
2,121

Equity in earnings of subsidiaries
2,331

 
1,803

 
—

 
(4,134
)
 
—

Net realized gains (losses) including OTTI
(1
)
 
(3
)
 
(506
)
 
—

 
(510
)
Losses and loss expenses
—

 
—

 
12,197

 
—

 
12,197

Policy benefits
—

 
—

 
427

 
—

 
427

Policy acquisition costs and administrative expenses
48

 
144

 
6,668

 
—

 
6,860

Interest (income) expense
(266
)
 
681

 
36

 
—

 
451

Other (income) expense
(20
)
 
26

 
(98
)
 
—

 
(92
)
Amortization of purchased intangibles
—

 
—

 
16

 
—

 
16

Chubb integration expenses
29

 
56

 
276

 
—

 
361

Income tax expense (benefit)
17

 
(323
)
 
862

 
—

 
556

Net income
$
2,525

 
$
1,225

 
$
2,909

 
$
(4,134
)
 
$
2,525

Comprehensive income
$
4,457

 
$
2,687

 
$
4,841

 
$
(7,528
)
 
$
4,457


Condensed Consolidating Statements of Operations and Comprehensive Income
Nine Months Ended September 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

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

 
$
—

 
$
13,569

 
$
—

 
$
13,569

Net premiums earned
—

 
—

 
13,006

 
—

 
13,006

Net investment income
2

 
2

 
1,658

 
—

 
1,662

Equity in earnings of subsidiaries
2,037

 
755

 
—

 
(2,792
)
 
—

Net realized gains (losses) including OTTI
—

 
(6
)
 
(354
)
 
—

 
(360
)
Losses and loss expenses
—

 
—

 
7,182

 
—

 
7,182

Policy benefits
—

 
—

 
384

 
—

 
384

Policy acquisition costs and administrative expenses
47

 
20

 
3,838

 
—

 
3,905

Interest (income) expense
(23
)
 
206

 
24

 
—

 
207

Other (income) expense
(149
)
 
(12
)
 
100

 
—

 
(61
)
Amortization of purchased intangibles
—

 
—

 
136

 
—

 
136

Chubb integration expenses
1

 
8

 
—

 
—

 
9

Income tax expense (benefit)
12

 
(84
)
 
467

 
—

 
395

Net income
$
2,151

 
$
613

 
$
2,179

 
$
(2,792
)
 
$
2,151

Comprehensive income (loss)
$
768

 
$
(332
)
 
$
795

 
$
(463
)
 
$
768



Condensed Consolidating Statement of Cash Flows 
Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 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
$
3,399

 
$
3,892

 
$
3,918

 
$
(7,372
)
 
$
3,837

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

 
(154
)
 
(23,683
)
 
—

 
(23,837
)
Purchases of fixed maturities held to maturity
—

 
—

 
(189
)
 
—

 
(189
)
Purchases of equity securities
—

 
—

 
(100
)
 
—

 
(100
)
Sales of fixed maturities available for sale
—

 
66

 
13,797

 
—

 
13,863

Sales of equity securities
—

 
—

 
963

 
—

 
963

Maturities and redemptions of fixed maturities available for sale
—

 
59

 
6,877

 
—

 
6,936

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
627

 
—

 
627

Net change in short-term investments
—

 
7,627

 
4,239

 
—

 
11,866

Net derivative instruments settlements
—

 
(10
)
 
(171
)
 
—

 
(181
)
Acquisition of subsidiaries (net of cash acquired of $71)
—

 
(14,282
)
 
34

 
—

 
(14,248
)
Capital contribution
(2,330
)
 
(20
)
 
(2,330
)
 
4,680

 
—

Other
—

 
(3
)
 
29

 
—

 
26

Net cash flows (used for) from investing activities
(2,330
)
 
(6,717
)
 
93

 
4,680

 
(4,274
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(851
)
 
—

 
—

 
—

 
(851
)
Proceeds from issuance of repurchase agreements
—

 
—

 
1,457

 
—

 
1,457

Repayment of repurchase agreements
—

 
—

 
(1,455
)
 
—

 
(1,455
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
117

 
—

 
117

Dividend to parent company
—

 
—

 
(7,372
)
 
7,372

 
—

Advances (to) from affiliates
(258
)
 
219

 
39

 
—

 
—

Capital contribution
—

 
2,330

 
2,350

 
(4,680
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
45

 
280

 
—

 
(325
)
 
—

Policyholder contract deposits
—

 
—

 
473

 
—

 
473

Policyholder contract withdrawals
—

 
—

 
(247
)
 
—

 
(247
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows (used for) from financing activities
(1,064
)
 
2,825

 
(4,638
)
 
2,367

 
(510
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
42

 
—

 
42

Net increase (decrease) in cash
5

 
—

 
(585
)
 
(325
)
 
(905
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
6

 
$
2

 
$
2,158

 
$
(1,296
)
 
$
870

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2015
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from (used for) operating activities
$
350

 
$
(46
)
 
$
2,671

 
$
(276
)
 
$
2,699

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

 
—

 
(13,052
)
 
(8
)
 
(13,060
)
Purchases of fixed maturities held to maturity
—

 
—

 
(39
)
 
—

 
(39
)
Purchases of equity securities
—

 
—

 
(122
)
 
—

 
(122
)
Sales of fixed maturities available for sale
—

 
—

 
5,233

 
—

 
5,233

Sales of equity securities
—

 
—

 
150

 
—

 
150

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
5,257

 
—

 
5,257

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
552

 
—

 
552

Net change in short-term investments
—

 
215

 
206

 
—

 
421

Net derivative instruments settlements
—

 
(10
)
 
72

 
—

 
62

Acquisition of subsidiaries (net of cash acquired of $620)
—

 
—

 
259

 
—

 
259

Capital contribution
—

 
(625
)
 
—

 
625

 
—

Other
—

 
(25
)
 
(121
)
 
8

 
(138
)
Net cash flows from (used for) investing activities
—

 
(445
)
 
(1,605
)
 
625

 
(1,425
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(644
)
 
—

 
—

 
—

 
(644
)
Common Shares repurchased
—

 
—

 
(758
)
 
—

 
(758
)
Proceeds from issuance of long-term debt
—

 
800

 
—

 
—

 
800

Proceeds from issuance of repurchase agreements
—

 
—

 
1,478

 
—

 
1,478

Repayment of long-term debt
—

 
(450
)
 
(1
)
 
—

 
(451
)
Repayment of repurchase agreements
—

 
—

 
(1,477
)
 
—

 
(1,477
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
89

 
—

 
89

Dividend to parent company
—

 
—

 
(276
)
 
276

 
—

Advances (to) from affiliates
(416
)
 
272

 
144

 
—

 
—

Capital contribution
—

 
—

 
625

 
(625
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
727

 
(121
)
 
—

 
(606
)
 
—

Policyholder contract deposits
—

 
—

 
351

 
—

 
351

Policyholder contract withdrawals
—

 
—

 
(159
)
 
—

 
(159
)
Other
—

 
(6
)
 
—

 
—

 
(6
)
Net cash flows used for financing activities
(333
)
 
495

 
16

 
(955
)
 
(777
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
(114
)
 
—

 
(114
)
Net increase in cash
17

 
4

 
968

 
(606
)
 
383

Cash – beginning of period(1)
—

 
1

 
1,209

 
(555
)
 
655

Cash – end of period(1)
$
17

 
$
5

 
$
2,177

 
$
(1,161
)
 
$
1,038


(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2015 and December 31, 2014, 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
Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Debt Issuance Costs
$ 60 
Long-term Debt [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Debt Issuance Costs
58 
Trust Preferred Securities [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Debt Issuance Costs
$ 2 
Acquisitions (Detail) (USD $)
3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Jan. 14, 2016
The Chubb Corporation [Member]
Sep. 30, 2015
The Chubb Corporation [Member]
Sep. 30, 2016
The Chubb Corporation [Member]
Apr. 1, 2015
Fireman's Fund high net worth personal lines [Member]
Apr. 1, 2015
Fireman's Fund high net worth personal lines [Member]
Sep. 30, 2016
Minimum [Member]
Sep. 30, 2016
Maximum [Member]
Sep. 30, 2016
Additional Paid-in Capital [Member]
Sep. 30, 2015
Additional Paid-in Capital [Member]
Jan. 14, 2016
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Sep. 30, 2016
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Sep. 30, 2015
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price
 
 
 
 
 
 
$ 29,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, Purchase Accounting Adjustment
 
 
 
 
 
 
 
 
85,000,000 
 
 
 
 
 
 
 
 
 
Business Acquisition, Financing Of Acquisition With Cash
 
 
 
 
 
 
9,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
Senior notes issued to finance acquisition
 
 
 
 
 
 
5,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
Acquired assets fair value
 
 
 
 
 
 
 
 
 
 
753,000,000 
 
 
 
 
 
 
 
Other intangible assets
6,991,000,000 
 
6,991,000,000 
 
887,000,000 
 
 
 
 
 
278,000,000 
 
 
 
 
 
 
 
Weighted-average shares outstanding
468,021,093 
324,210,936 
460,631,794 
325,904,502 
 
 
228,000,000 
 
 
 
 
 
 
 
 
 
 
 
Per share exchange ratio
 
 
 
 
 
 
0.6019 
 
 
 
 
 
 
 
 
 
 
 
Common shares issued by Chubb Limited
 
 
 
 
 
 
137,000,000 
 
 
 
 
 
 
 
 
 
 
 
Share Price
 
 
 
 
 
 
$ 111.02 
 
 
 
 
 
 
 
 
 
 
 
Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp
 
 
 
 
 
 
15,204,000,000 
 
 
 
 
 
 
 
 
 
 
 
Agreed cash price per share paid to common shareholders of Chubb Corp
 
 
 
 
 
 
$ 62.93 
 
 
 
 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Gross
 
 
 
 
 
 
14,319,000,000 
 
 
365,000,000 
 
 
 
 
 
 
 
 
Attributed Value Equity Awards Assumed in Acquisition
 
 
 
 
 
 
323,000,000 
 
 
 
 
 
 
(365,000,000)
(157,000,000)
323,000,000 
323,000,000 
0 
Purchase price
 
 
 
 
 
 
29,800,000,000 
 
 
 
 
 
 
 
 
 
 
 
Cash
870,000,000 1 2
1,038,000,000 3
870,000,000 1 2
1,038,000,000 3
1,775,000,000 1 4
655,000,000 3
71,000,000 
 
 
 
629,000,000 
 
 
 
 
 
 
 
Investments
101,036,000,000 
 
101,036,000,000 
 
66,251,000,000 
 
42,967,000,000 
 
 
 
 
 
 
 
 
 
 
 
Accrued investment income
915,000,000 
 
915,000,000 
 
513,000,000 
 
337,000,000 
 
 
 
 
 
 
 
 
 
 
 
Insurance and reinsurance balances receivable
8,493,000,000 
 
8,493,000,000 
 
5,323,000,000 
 
2,981,000,000 
 
 
 
124,000,000 
 
 
 
 
 
 
 
Reinsurance recoverable on losses and loss expenses
13,448,000,000 
 
13,448,000,000 
 
11,386,000,000 
 
1,645,000,000 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-Lived Intangible Assets
 
 
 
 
 
 
2,860,000,000 
 
 
 
 
 
 
 
 
 
 
 
Finite lived intangible assets
 
 
 
 
 
 
4,795,000,000 
 
 
 
 
 
 
 
 
 
 
 
Prepaid reinsurance premiums
2,449,000,000 
 
2,449,000,000 
 
2,082,000,000 
 
280,000,000 
 
 
 
 
 
 
 
 
 
 
 
Other assets
5,521,000,000 
 
5,521,000,000 
 
3,821,000,000 
 
865,000,000 
 
 
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
(61,347,000,000)
 
(61,347,000,000)
 
(37,303,000,000)
 
(22,906,000,000)
 
 
 
(417,000,000)
 
 
 
 
 
 
 
Unearned premiums
(15,054,000,000)
 
(15,054,000,000)
 
(8,439,000,000)
 
(7,033,000,000)
 
 
 
(428,000,000)
 
 
 
 
 
 
 
Insurance and reinsurance balances payable
(4,885,000,000)
 
(4,885,000,000)
 
(4,270,000,000)
 
(511,000,000)
 
 
 
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses, and other liabilities
(9,748,000,000)
 
(9,748,000,000)
 
(6,205,000,000)
 
(1,935,000,000)
 
 
 
 
 
 
 
 
 
 
 
Deferred Tax Liabilities, Net
 
 
 
 
 
 
(1,335,000,000)
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
(12,621,000,000)
 
(12,621,000,000)
 
(9,389,000,000)
 
(3,765,000,000)
 
 
 
 
 
 
 
 
 
 
 
Total identifiable net assets acquired
 
 
 
 
 
 
19,316,000,000 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
15,481,000,000 
 
15,481,000,000 
 
4,796,000,000 
 
10,530,000,000 
 
 
 
196,000,000 
 
 
 
 
 
 
 
Chubb integration expenses
115,000,000 
9,000,000 
361,000,000 
9,000,000 
 
 
 
9,000,000 
 
 
 
 
 
 
 
 
 
 
Assumed liabilities fair value
 
 
 
 
 
 
 
 
 
 
863,000,000 
 
 
 
 
 
 
 
Total Value of Equity Awards Issued in Acquisition
 
 
 
 
 
 
$ 525,000,000 
 
 
 
 
 
 
 
 
 
 
 
Estimated Useful Life
 
 
 
 
 
 
 
 
 
 
 
1 year 
24 years 
 
 
 
 
 
Supplemental Financial Information for Acquisition (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2016
Sep. 30, 2015
Business Acquisition [Line Items]
 
 
 
 
 
Chubb integration expenses
$ 115 
$ 9 
 
$ 361 
$ 9 
Actual Revenue of Chubb Corp since Acquisition Date
2,656 
 
7,888 
 
 
Actual Net Income of Chubb Corp since Acquisition Date
483 
 
1,064 
 
 
Pro Forma Total Revenues
8,521 
8,314 
 
23,758 
24,387 
Pro Forma Net Income
1,345 
1,036 
 
2,591 
3,194 
Pro Forma Earnings Per Share, Basic
$ 2.87 
$ 2.23 
 
$ 5.54 
$ 6.85 
Pro Forma Earnings Per Share, Diluted
$ 2.85 
$ 2.21 
 
$ 5.50 
$ 6.78 
The Chubb Corporation [Member]
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
Chubb integration expenses
 
$ 9 
 
 
 
Investments (Narrative) (Detail) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Security
Sep. 30, 2015
Sep. 30, 2016
Security
Sep. 30, 2015
Dec. 31, 2015
Investment [Line Items]
 
 
 
 
 
Total number of fixed maturities
31,902 
 
31,902 
 
 
Number of equity securities in an unrealized loss position
73 
 
73 
 
 
Total number of equity securities
326 
 
326 
 
 
Largest single unrealized loss in the equity securities
$ (3,000,000)
 
$ (3,000,000)
 
 
Restricted assets in fixed maturities and short-term investments
19,400,000,000 
 
19,400,000,000 
 
16,900,000,000 
Restricted assets in cash
162,000,000 
 
162,000,000 
 
110,000,000 
Moodys Historical Mean Recovery Rate
 
 
42.00% 
 
 
Company Assumed Recovery Rate
 
 
32.00% 
 
 
Net unrealized appreciation (depreciation) included in OCI
13,000,000 
(4,000,000)
57,000,000 
0 
 
Unrealized appreciation (depreciation) portion of AOCI with OTTI included in AOCI
7,000,000 
 
7,000,000 
 
(35,000,000)
Number of fixed maturities in an unrealized loss position
3,376 
 
3,376 
 
 
Percentage of mortgage-backed securities represented by investments in US government agency bonds
81.00% 
 
81.00% 
 
81.00% 
Largest single unrealized loss in the fixed maturities
(2,000,000)
 
(2,000,000)
 
 
Corporate [Member]
 
 
 
 
 
Investment [Line Items]
 
 
 
 
 
Credit losses recognized in net income
4,000,000 
14,000,000 
28,000,000 
23,000,000 
 
Collateralized Mortgage Backed Securities [Member]
 
 
 
 
 
Investment [Line Items]
 
 
 
 
 
Credit losses recognized in net income
$ 1,000,000 
$ 0 
$ 1,000,000 
$ 0 
 
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Available for sale, Due in 1 year or less, Amortized Cost
$ 3,402 
$ 1,856 
Available for sale, Due after 1 year through 5 years, Amortized Cost
25,152 
14,936 
Available for sale, Due after 5 years though 10 years, Amortized Cost
26,702 
12,258 
Available for sale, Due after 10 years, Amortized Cost
10,291 
4,272 
Available for sale, Subtotal, Amortized Cost
65,547 
33,322 
Available for sale, Mortgage-backed securities, Amortized Cost
13,083 
9,827 
Available for sale, at amortized cost
78,630 
43,149 
Available for sale, Fair Value
81,358 
43,587 
Held to maturity, Due in 1 year or less, Amortized Cost
458 
492 
Held to maturity, Due after 1 year through 5 years, Amortized Cost
2,716 
2,443 
Held to maturity, Due after 5 years through 10 years, Amortized Cost
2,815 
2,292 
Held to maturity, Due after 10 years, Amortized Cost
3,431 
1,496 
Held to maturity, Subtotal, Amortized Cost
9,420 
6,723 
Held to maturity, Mortgage backed securities, Amortized Cost
1,507 
1,707 
Available for sale, Due in 1 year or less, Fair Value
3,413 
1,865 
Available for sale, Due after 1 year through 5 years, Fair Value
25,865 
15,104 
Available for sale, Due after 5 years through 10 years, Fair Value
27,645 
12,173 
Available for sale, Due after 10 years, Fair Value
10,974 
4,487 
Available for sale, Subtotal, Fair Value
67,897 
33,629 
Available for sale, Mortgage backed securities, Fair Value
13,461 
9,958 
Held to maturity, Due in 1 year or less, Fair Value
462 
495 
Held to maturity, Due after 1 year through 5, Fair Value
2,807 
2,517 
Held to maturity, Due after 5 years through 10 years, Fair Value
2,919 
2,313 
Held to maturity, Due after 10 years, Fair Value
3,599 
1,484 
Held to maturity, Subtotal, Fair Value
9,787 
6,809 
Held to maturity, Mortgage backed securities, Fair Value
1,579 
1,743 
Held to maturity, Amortized Cost
10,927 
8,430 
Held to maturity, Fair Value
$ 11,366 
$ 8,552 
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Cost
$ 695 
$ 441 
Gross unrealized appreciation
122 
74 
Gross unrealized depreciation
(14)
(18)
Equity securities, at fair value
$ 803 
$ 497 
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 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
 
 
OTTI on fixed maturities, gross
$ (7)
$ (31)
$ (85)
$ (57)
OTTI on fixed maturities recognized in OCI (pre-tax)
0 
5 
8 
11 
OTTI on fixed maturities, net
(7)
(26)
(77)
(46)
Gross realized gains excluding OTTI
47 
19 
149 
91 
Gross realized losses excluding OTTI
(13)
(44)
(228)
(95)
Fixed Maturities Net Realized Gains Losses Total
27 
(51)
(156)
(50)
Other Than Temporary Impairment on Equity Securities
(1)
(3)
(7)
(4)
Equity securities, Gross realized gains excluding OTTI
19 
10 
63 
43 
Equity securities, Gross realized losses excluding OTTI
(12)
(5)
(17)
(7)
Equity Securities Net Realized Gains Losses Total
6 
2 
39 
32 
Other Than Temporary Impairment on Other Investment
(4)
(1)
(7)
(1)
Foreign exchange gains (losses)
29 
(2)
46 
(73)
Investment and embedded derivative instruments
1 
(22)
(85)
6 
Fair value adjustments on insurance derivative
89 
(396)
(270)
(337)
S&P put options and futures
(45)
83 
(88)
69 
Other derivative instruments
3 
(9)
1 
(10)
Other
(6)
(1)
10 
4 
Total net realized gains (losses) (includes $33, $(49), $(117), and $(18) reclassified from AOCI)
$ 100 
$ (397)
$ (510)
$ (360)
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
Sep. 30, 2016
Dec. 31, 2015
Investment [Line Items]
 
 
Fair Value, 0-12 Months
$ 8,106 
$ 16,763 
Gross Unrealized Loss, 0-12 Months
(97)
(601)
Fair Value, Over 12 Months
1,501 
1,885 
Gross Unrealized Loss, Over 12 Months
(76)
(226)
Total Fair Value
9,607 
18,648 
Total Gross Unrealized Loss
(173)
(827)
U.S. Treasury And Agency [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
436 
996 
Gross Unrealized Loss, 0-12 Months
(2)
(5)
Fair Value, Over 12 Months
0 
153 
Gross Unrealized Loss, Over 12 Months
0 
(1)
Total Fair Value
436 
1,149 
Total Gross Unrealized Loss
(2)
(6)
Foreign [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
1,899 
3,953 
Gross Unrealized Loss, 0-12 Months
(20)
(148)
Fair Value, Over 12 Months
409 
436 
Gross Unrealized Loss, Over 12 Months
(28)
(73)
Total Fair Value
2,308 
4,389 
Total Gross Unrealized Loss
(48)
(221)
Corporate [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
1,559 
7,518 
Gross Unrealized Loss, 0-12 Months
(21)
(371)
Fair Value, Over 12 Months
750 
738 
Gross Unrealized Loss, Over 12 Months
(45)
(138)
Total Fair Value
2,309 
8,256 
Total Gross Unrealized Loss
(66)
(509)
Collateralized Mortgage Backed Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
1,039 
3,399 
Gross Unrealized Loss, 0-12 Months
(3)
(42)
Fair Value, Over 12 Months
292 
516 
Gross Unrealized Loss, Over 12 Months
(2)
(12)
Total Fair Value
1,331 
3,915 
Total Gross Unrealized Loss
(5)
(54)
States, Municipalities, And Political Subdivisions [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
2,807 
556 
Gross Unrealized Loss, 0-12 Months
(10)
(6)
Fair Value, Over 12 Months
50 
42 
Gross Unrealized Loss, Over 12 Months
(1)
(2)
Total Fair Value
2,857 
598 
Total Gross Unrealized Loss
(11)
(8)
Fixed Maturities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
7,740 
16,422 
Gross Unrealized Loss, 0-12 Months
(56)
(572)
Fair Value, Over 12 Months
1,501 
1,885 
Gross Unrealized Loss, Over 12 Months
(76)
(226)
Total Fair Value
9,241 
18,307 
Total Gross Unrealized Loss
(132)
(798)
Equity Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
133 
131 
Gross Unrealized Loss, 0-12 Months
(14)
(18)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
133 
131 
Total Gross Unrealized Loss
(14)
(18)
Other Long-term Investments [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
233 
210 
Gross Unrealized Loss, 0-12 Months
(27)
(11)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
233 
210 
Total Gross Unrealized Loss
$ (27)
$ (11)
Investments (Schedule Of Components Of Restricted Assets) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Trust funds
$ 13,093 
$ 11,862 
Deposits with non-U.S. regulatory authorities
2,338 
2,075 
Deposits with U.S. regulatory authorities
2,232 
1,242 
Assets pledged under repurchase agreements
1,464 
1,459 
Other pledged assets
433 
392 
Total restricted assets
$ 19,560 
$ 17,030 
Fair Value Measurements (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Fair Value Measurements Of Financial Instruments [Line Items]
 
 
 
 
 
Other Long-term Investments
$ 4,400 
 
$ 4,400 
 
$ 3,291 
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 
 
Minimum [Member]
 
 
 
 
 
Fair Value Measurements Of Financial Instruments [Line Items]
 
 
 
 
 
Notice Period For Redemption For Alternative Investments Investment Funds
 
 
5 days 
 
 
Maximum [Member]
 
 
 
 
 
Fair Value Measurements Of Financial Instruments [Line Items]
 
 
 
 
 
Notice Period For Redemption For Alternative Investments Investment Funds
 
 
120 days 
 
 
Equity Option [Member]
 
 
 
 
 
Fair Value Measurements Of Financial Instruments [Line Items]
 
 
 
 
 
Derivative Asset, Fair Value, Gross Liability
$ 0 
 
$ 0 
 
 
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Available for sale, Fair Value
$ 81,358 
$ 43,587 
 
 
 
Equity securities, at fair value
803 
497 
 
 
 
Other investments (cost – $4,170 and $2,993)
4,400 
3,291 
 
 
 
Securities lending collateral
1,140 
1,046 
 
 
 
Other Other investment [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Other investments (cost – $4,170 and $2,993)
25 
25 
 
 
 
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Other investments (cost – $4,170 and $2,993)
3,498 
2,477 
 
 
 
Fair Value, Measurements, Recurring [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Available for sale, Fair Value
81,358 
43,587 
 
 
 
Equity securities, at fair value
803 
497 
 
 
 
Short-term investments
3,548 
10,446 
 
 
 
Other investments (cost – $4,170 and $2,993)
877 
789 
 
 
 
Securities lending collateral
1,140 
1,046 
 
 
 
Investment derivative instruments, assets
20 
12 
 
 
 
Other Derivative Instruments Fair Value
14 
 
 
 
 
Separate Account Assets
1,840 
1,552 
 
 
 
Total assets measured at fair value
89,600 
57,929 
 
 
 
Investment derivative instruments, liabilities
34 
13 
 
 
 
Other derivative instruments, liability
8 
10 
 
 
 
GLB (2)
883 
609 
 
 
 
Total liabilities measured at fair value
925 
632 
 
 
 
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
755 
284 
 
 
 
Equity securities, at fair value
37 
16 
 
 
 
Short-term investments
62 
 
 
 
 
Other investments (cost – $4,170 and $2,993)
223 
212 
 
 
 
Other Derivative Instruments Fair Value
0 
 
 
 
 
Total assets measured at fair value
1,077 
512 
 
 
 
Other derivative instruments, liability
8 
6 
 
 
 
GLB (2)
883 
609 
 
 
 
Total liabilities measured at fair value
891 
615 
 
 
 
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
2,155 
1,712 
 
 
 
Equity securities, at fair value
766 
481 
 
 
 
Short-term investments
2,127 
7,171 
 
 
 
Other investments (cost – $4,170 and $2,993)
404 
347 
 
 
 
Investment derivative instruments, assets
20 
12 
 
 
 
Other Derivative Instruments Fair Value
14 
 
 
 
 
Separate Account Assets
1,743 
1,464 
 
 
 
Total assets measured at fair value
7,229 
11,187 
 
 
 
Investment derivative instruments, liabilities
34 
13 
 
 
 
Other derivative instruments, liability
 
4 
 
 
 
Total liabilities measured at fair value
34 
17 
 
 
 
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
78,448 
41,591 
 
 
 
Short-term investments
1,359 
3,275 
 
 
 
Other investments (cost – $4,170 and $2,993)
250 
230 
 
 
 
Securities lending collateral
1,140 
1,046 
 
 
 
Other Derivative Instruments Fair Value
0 
 
 
 
 
Separate Account Assets
97 
88 
 
 
 
Total assets measured at fair value
81,294 
46,230 
 
 
 
Fair Value, Measurements, Recurring [Member] |
U.S. Treasury And Agency [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Available for sale, Fair Value
2,708 
2,528 
 
 
 
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
2,155 
1,712 
 
 
 
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
553 
816 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Foreign [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Available for sale, Fair Value
22,508 
13,445 
 
 
 
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
103 
57 
 
 
 
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
22,405 
13,388 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Corporate [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Available for sale, Fair Value
23,773 
14,929 
 
 
 
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
606 
174 
 
 
 
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
23,167 
14,755 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Available for sale, Fair Value
13,461 
9,958 
 
 
 
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
46 
53 
 
 
 
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
13,415 
9,905 
 
 
 
Fair Value, Measurements, Recurring [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Available for sale, Fair Value
18,908 
2,727 
 
 
 
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
18,908 
2,727 
 
 
 
Guaranteed Minimum Income Benefit [Member]
 
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
Guaranteed Benefit Liability, Net
$ 1,200 
$ 888 
$ 1,000 
$ 615 
$ 663 
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Minimum [Member]
Sep. 30, 2016
Maximum [Member]
Sep. 30, 2016
Guaranteed Minimum Income Benefit [Member]
Jun. 30, 2016
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2015
Guaranteed Minimum Income Benefit [Member]
Sep. 30, 2015
Guaranteed Minimum Income Benefit [Member]
Jun. 30, 2015
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2014
Guaranteed Minimum Income Benefit [Member]
Sep. 30, 2016
Fair Value, Inputs, Level 3 [Member]
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2015
Fair Value, Inputs, Level 3 [Member]
Guaranteed Minimum Income Benefit [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
 
 
 
$ 883 1
$ 971 2
$ 609 2
$ 744 1 2
$ 347 2
$ 406 2
$ 883 2
$ 609 
Valuation Technique
Actuarial model 3
 
 
 
 
 
 
 
 
 
 
Significant Unobservable Inputs Lapse rate
 
1.00% 3
30.00% 3
 
 
 
 
 
 
 
 
Significant Unobservable Inputs Annuitization rate
 
0.00% 3
55.00% 3
 
 
 
 
 
 
 
 
[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 $1.0 billion at September 30, 2015, and $615 million at June 30, 2015, which includes a fair value derivative adjustment of $744 million and $347 million, respectively. Assets Liabilities Nine Months EndedAvailable-for-Sale Debt Securities EquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)September 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 OCI8 17 — 2—4 ——Net Realized Gains/Losses(6) (12) — 1—— 2274Purchases (2)52 472 1 236222 2—Sales(10) (48) (8) (5)—— ——Settlements(5) (15) — ——(15) (2)—Balance–End of Period$103 $606 $46 $37$62$223 $8$883Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(11) $— $—$—$— $2$274(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition. Assets LiabilitiesNine Months Ended Available-for-Sale Debt Securities Other investments OtherderivativeinstrumentsGLB(1)September 30, 2015 Foreign Corporatesecurities MBS Equitysecurities (in millions of U.S. dollars) Balance–Beginning of Period $22 $187 $15 $2 $204 $4$406Transfers into Level 3 29 15 — — — ——Change in Net Unrealized Gains (Losses) included in OCI (1) 1 — 2 (7) ——Net Realized Gains/Losses (1) (4) — (2) — 3338Purchases 9 38 41 2 21 ——Sales (1) (10) (1) — — ——Settlements (4) (44) (1) — (9) ——Balance–End of Period $53$183$54 $4$209 $7$744Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $(1) $(2) $— $(2) $— $3$338(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 $1.0 billion at September 30, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $744 million and $406 million, respectively.
Fair Value Measurements (Assets Measured At Fair Value Using Significant Unobservable Inputs) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Document Period End Date
 
 
Sep. 30, 2016 
 
Foreign [Member] |
Available-for-sale Securities [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
$ 87 
$ 56 
$ 57 
$ 22 
Transfers Into Level 3, Asset
0 
1 
9 
29 
Transfers out of Level 3, Assets
 
 
(2)
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
1 
(1)
8 
(1)
Net Realized Gains/Losses, Assets
0 
(1)
(6)
(1)
Purchases, Assets
20 
0 
52 
9 
Sales, Assets
(2)
0 
(10)
(1)
Settlements, Assets
(1)
(4)
(5)
(4)
Balance-End of Period, Assets
103 
53 
103 
53 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
(1)
(5)
(1)
Corporate [Member] |
Available-for-sale Securities [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
281 
167 
174 
187 
Transfers Into Level 3, Asset
0 
2 
18 
15 
Transfers out of Level 3, Assets
 
 
0 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
(6)
(1)
17 
1 
Net Realized Gains/Losses, Assets
(4)
(1)
(12)
(4)
Purchases, Assets
348 
22 
472 
38 
Sales, Assets
(18)
(5)
(48)
(10)
Settlements, Assets
(7)
(3)
(15)
(44)
Balance-End of Period, Assets
606 
183 
606 
183 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
(4)
0 
(11)
(2)
Collateralized Mortgage Backed Securities [Member] |
Available-for-sale Securities [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
49 
55 
53 
15 
Transfers Into Level 3, Asset
0 
0 
0 
0 
Transfers out of Level 3, Assets
 
 
0 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
0 
0 
0 
Net Realized Gains/Losses, Assets
0 
0 
0 
0 
Purchases, Assets
0 
0 
1 
41 
Sales, Assets
(3)
(1)
(8)
(1)
Settlements, Assets
0 
0 
0 
(1)
Balance-End of Period, Assets
46 
54 
46 
54 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
0 
0 
0 
Equity Securities [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
37 
2 
16 
2 
Transfers Into Level 3, Asset
0 
0 
0 
0 
Transfers out of Level 3, Assets
 
 
0 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
(3)
(2)
2 
2 
Net Realized Gains/Losses, Assets
0 
(1)
1 
(2)
Purchases, Assets
0 
1 
23 
2 
Sales, Assets
(3)
0 
(5)
0 
Settlements, Assets
0 
0 
0 
0 
Balance-End of Period, Assets
37 
4 
37 
4 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
(1)
0 
(2)
Short-term Investments [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
50 
 
0 
 
Transfers Into Level 3, Asset
0 
 
0 
 
Transfers out of Level 3, Assets
 
 
0 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
0 
 
0 
 
Net Realized Gains/Losses, Assets
0 
 
0 
 
Purchases, Assets
12 
 
62 
 
Sales, Assets
0 
 
0 
 
Settlements, Assets
0 
 
0 
 
Balance-End of Period, Assets
62 
 
62 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
0 
 
0 
 
Other Long-term Investments [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Balance- Beginning of Period, Assets
216 
214 
212 
204 
Transfers Into Level 3, Asset
0 
0 
0 
0 
Transfers out of Level 3, Assets
 
 
0 
 
Change in Net Unrealized Gains (Losses) included in OCI, Assets
(4)
7 
4 
(7)
Net Realized Gains/Losses, Assets
0 
0 
0 
0 
Purchases, Assets
8 
5 
22 
21 
Sales, Assets
0 
0 
0 
0 
Settlements, Assets
(5)
(3)
(15)
(9)
Balance-End of Period, Assets
223 
209 
223 
209 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets
$ 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 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Guaranteed Minimum Income Benefit [Member]
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
Reported liabilities
$ 1,200 
$ 1,000 
$ 1,200 
$ 1,000 
$ 888 
$ 615 
$ 663 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
 
 
Balance - Beginning of Period, Liabilities
971 1
347 1
609 1
406 1
 
 
 
Transfers into level 3, liability
0 
0 
0 
0 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
0 
0 
0 
0 
 
 
 
Net Realized Gains/Losses, Liabilities
(88)
397 
274 
338 
 
 
 
Transfers out of Level 3, Liabilities
 
 
0 
 
 
 
 
Purchases, Liabilities
0 
0 
0 
0 
 
 
 
Sales, Liabilities
0 
0 
0 
0 
 
 
 
Settlements, Liabilities
0 
0 
0 
0 
 
 
 
Balance - End of Period, Liabilities
883 2
744 1 2
883 2
744 1 2
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities
(88)
397 
274 2
338 2
 
 
 
Guaranteed Minimum Income Benefit [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
 
 
Balance - Beginning of Period, Liabilities
 
 
 
 
609 
 
 
Balance - End of Period, Liabilities
883 1
 
883 1
 
609 
 
 
Other Derivative Instruments Fair Value [Member]
 
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
 
 
Balance - Beginning of Period, Liabilities
10 
3 
6 
4 
 
 
 
Transfers into level 3, liability
 
0 
0 
0 
 
 
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
 
0 
0 
0 
 
 
 
Net Realized Gains/Losses, Liabilities
0 
4 
2 
3 
 
 
 
Transfers out of Level 3, Liabilities
 
 
0 
 
 
 
 
Purchases, Liabilities
0 
0 
2 
0 
 
 
 
Sales, Liabilities
 
0 
0 
0 
 
 
 
Settlements, Liabilities
 
0 
2 
0 
 
 
 
Balance - End of Period, Liabilities
8 
7 
8 
7 
 
 
 
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities
$ 0 
$ 4 
$ 2 
$ 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 $1.0 billion at September 30, 2015, and $615 million at June 30, 2015, which includes a fair value derivative adjustment of $744 million and $347 million, respectively. Assets Liabilities Nine Months EndedAvailable-for-Sale Debt Securities EquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)September 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 OCI8 17 — 2—4 ——Net Realized Gains/Losses(6) (12) — 1—— 2274Purchases (2)52 472 1 236222 2—Sales(10) (48) (8) (5)—— ——Settlements(5) (15) — ——(15) (2)—Balance–End of Period$103 $606 $46 $37$62$223 $8$883Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(11) $— $—$—$— $2$274(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition. Assets LiabilitiesNine Months Ended Available-for-Sale Debt Securities Other investments OtherderivativeinstrumentsGLB(1)September 30, 2015 Foreign Corporatesecurities MBS Equitysecurities (in millions of U.S. dollars) Balance–Beginning of Period $22 $187 $15 $2 $204 $4$406Transfers into Level 3 29 15 — — — ——Change in Net Unrealized Gains (Losses) included in OCI (1) 1 — 2 (7) ——Net Realized Gains/Losses (1) (4) — (2) — 3338Purchases 9 38 41 2 21 ——Sales (1) (10) (1) — — ——Settlements (4) (44) (1) — (9) ——Balance–End of Period $53$183$54 $4$209 $7$744Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $(1) $(2) $— $(2) $— $3$338(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 $1.0 billion at September 30, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $744 million and $406 million, respectively.
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
$ 11,366 
$ 8,552 
Repurchase agreements
1,406 
1,404 
Total liabilities
113,438 
73,171 
Long-term debt
12,621 
9,389 
Short-term debt
500 
0 
Trust preferred securities
308 
307 
Held-to-maturity Securities
10,927 
8,430 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
628 
583 
Repurchase agreements
0 
0 
Total liabilities
0 
0 
Long-term Debt, Fair Value
0 
0 
Short-term Debt, Fair Value
0 
 
Trust preferred securities
0 
0 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
10,725 
7,955 
Repurchase agreements
1,406 
1,404 
Total liabilities
16,139 
11,528 
Long-term Debt, Fair Value
13,762 
9,678 
Short-term Debt, Fair Value
508 
 
Trust preferred securities
463 
446 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
13 
14 
Repurchase agreements
0 
0 
Total liabilities
0 
0 
Long-term Debt, Fair Value
0 
0 
Short-term Debt, Fair Value
0 
 
Trust preferred securities
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
628 
583 
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
107 
162 
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
739 
785 
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
2,968 
3,042 
Corporate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
13 
14 
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
1,579 
1,743 
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
5,332 
2,223 
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
11,366 
8,552 
Repurchase agreements
1,406 
1,404 
Total liabilities
16,139 
11,528 
Long-term Debt, Fair Value
13,762 
9,678 
Short-term Debt, Fair Value
508 
 
Trust preferred securities
463 
446 
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
735 
745 
Estimate of Fair Value Measurement [Member] |
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
739 
785 
Estimate of Fair Value Measurement [Member] |
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
2,981 
3,056 
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
1,579 
1,743 
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
5,332 
2,223 
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Repurchase agreements
1,406 
1,404 
Total liabilities
14,835 
11,100 
Long-term debt
12,621 
9,389 
Short-term debt
500 
 
Trust preferred securities
308 
307 
Held-to-maturity Securities
10,927 
8,430 
Reported Value Measurement [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
709 
733 
Reported Value Measurement [Member] |
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
694 
763 
Reported Value Measurement [Member] |
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
2,852 
3,054 
Reported Value Measurement [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
1,507 
1,707 
Reported Value Measurement [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
$ 5,165 
$ 2,173 
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Schedule Of Guaranteed Minimum Benefits Income And Expense) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
Net premiums earned
$ 7,688 
$ 4,719 
$ 21,690 
$ 13,006 
Policy benefits and other reserve adjustments
155 
89 
427 
384 
Net realized gains (losses)
100 
(397)
(510)
(360)
Guaranteed Minimum Death Benefit [Member]
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
Net premiums earned
15 
15 
42 
47 
Policy benefits and other reserve adjustments
11 
5 
34 
25 
Guaranteed Minimum Income Benefit [Member]
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
Net premiums earned
28 
30 
88 
92 
Policy benefits and other reserve adjustments
9 
15 
24 
34 
Net realized gains (losses)
86 
(397)
(285)
(338)
Loss recognized in Net income
105 
(382)
(221)
(280)
Less: Net cash received
15 
20 
57 
74 
Net (increase) decrease in liability
$ 90 
$ (402)
$ (278)
$ (354)
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Jun. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Dec. 31, 2014
Guaranteed Minimum Death Benefit [Member]
 
 
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
 
 
Reported liabilities
$ 119 
 
$ 117 
 
 
 
Guaranteed Minimum Income Benefit [Member]
 
 
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
 
 
Reported liabilities
1,200 
 
888 
1,000 
615 
663 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
883 1
971 2
609 2
744 1 2
347 2
406 2
Fair Value, Inputs, Level 3 [Member] |
Guaranteed Minimum Income Benefit [Member]
 
 
 
 
 
 
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
$ 883 2
 
$ 609 
 
 
 
[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 $1.0 billion at September 30, 2015, and $615 million at June 30, 2015, which includes a fair value derivative adjustment of $744 million and $347 million, respectively. Assets Liabilities Nine Months EndedAvailable-for-Sale Debt Securities EquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)September 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 OCI8 17 — 2—4 ——Net Realized Gains/Losses(6) (12) — 1—— 2274Purchases (2)52 472 1 236222 2—Sales(10) (48) (8) (5)—— ——Settlements(5) (15) — ——(15) (2)—Balance–End of Period$103 $606 $46 $37$62$223 $8$883Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(11) $— $—$—$— $2$274(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition. Assets LiabilitiesNine Months Ended Available-for-Sale Debt Securities Other investments OtherderivativeinstrumentsGLB(1)September 30, 2015 Foreign Corporatesecurities MBS Equitysecurities (in millions of U.S. dollars) Balance–Beginning of Period $22 $187 $15 $2 $204 $4$406Transfers into Level 3 29 15 — — — ——Change in Net Unrealized Gains (Losses) included in OCI (1) 1 — 2 (7) ——Net Realized Gains/Losses (1) (4) — (2) — 3338Purchases 9 38 41 2 21 ——Sales (1) (10) (1) — — ——Settlements (4) (44) (1) — (9) ——Balance–End of Period $53$183$54 $4$209 $7$744Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $(1) $(2) $— $(2) $— $3$338(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 $1.0 billion at September 30, 2015, and $663 million at December 31, 2014, which includes a fair value derivative adjustment of $744 million and $406 million, respectively.
Goodwill and other intangible assets Schedule of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2016
North America Commercial P&C Insurance [Member]
Sep. 30, 2016
North America Personal P&C Insurance [Member]
Sep. 30, 2016
North America Agricultural Insurance [Member]
Sep. 30, 2016
Overseas General Insurance [Member]
Sep. 30, 2016
Global Reinsurance [Member]
Sep. 30, 2016
Life Insurance [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Sep. 30, 2016
The Chubb Corporation [Member]
Minimum [Member]
Sep. 30, 2016
The Chubb Corporation [Member]
Maximum [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Other Intangible Assets, Net
$ 6,991 
$ 887 
 
 
 
 
 
 
 
 
 
Increase Decrease on Acquired Unpaid Losses and Loss Expenses
 
 
 
 
 
 
 
 
715 
 
 
Amortization Period of Increase Decrease to Acquired Unpaid Losses and Loss Expenses
 
 
 
 
 
 
 
 
 
5 years 
17 years 
Goodwill [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Goodwill, beginning of period
4,796 
 
1,203 
196 
134 
2,078 
365 
820 
10,530 
 
 
Goodwill, Acquired During Period
10,530 
 
5,711 
2,025 
0 
2,794 
0 
0 
 
 
 
Goodwill, Translation Adjustments
155 
 
43 
13 
0 
98 
0 
1 
 
 
 
Goodwill, end of period
$ 15,481 
 
$ 6,957 
$ 2,234 
$ 134 
$ 4,970 
$ 365 
$ 821 
$ 10,530 
 
 
Goodwill and other intangible assets Intangible Assets Acquiredd as part of Chubb acquisition (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 9 Months Ended
Jan. 14, 2016
Sep. 30, 2016
The Chubb Corporation [Member]
Trademarks [Member]
Sep. 30, 2016
The Chubb Corporation [Member]
Licensing Agreements [Member]
Sep. 30, 2016
The Chubb Corporation [Member]
Syndicate capacity [Member]
Sep. 30, 2016
Internally developed technology
Sep. 30, 2016
Internally developed technology
The Chubb Corporation [Member]
Sep. 30, 2016
Agency distribution relationships and renewal rights [Member]
Sep. 30, 2016
Agency distribution relationships and renewal rights [Member]
The Chubb Corporation [Member]
Sep. 30, 2016
Unearned premium reserves [Member]
Sep. 30, 2016
Unearned premium reserves [Member]
The Chubb Corporation [Member]
Sep. 30, 2016
Maximum [Member]
Sep. 30, 2016
Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Finite-lived Intangible Assets Acquired
 
 
 
 
 
$ 95 
 
$ 3,150 
 
$ 1,550 
 
 
Estimated Useful Life
 
 
 
 
3 years 
 
24 years 
 
1 year 
 
24 years 
1 year 
Acquired Indefinite-lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived Intangible Assets Acquired
 
2,800 
50 
10 
 
 
 
 
 
 
 
 
Total identified intangible assets acquired
$ 7,655 
 
 
 
 
 
 
 
 
 
 
 
Debt (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Jan. 14, 2016
The Chubb Corporation [Member]
Sep. 30, 2016
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Sep. 30, 2016
Junior Subordinated Debt [Member]
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Dec. 31, 2015
Junior Subordinated Debt [Member]
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Sep. 30, 2016
London Interbank Offered Rate (LIBOR) [Member]
Junior Subordinated Debt [Member]
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
Long-term debt
$ 12,621 
$ 9,389 
$ 3,765 
 
$ 961 
$ 0 
 
Debt Instrument, Face Amount
 
 
3,300 
1,000 
1,000 
 
 
Interest Rate
 
 
 
 
6.375% 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
2.25% 
Repurchase agreements
$ 1,406 
$ 1,404 
 
 
 
 
 
Debt (Schedule of Debt Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2016
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Sep. 30, 2016
Senior Notes [Member]
Dec. 31, 2015
Senior Notes [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due February 2017 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due February 2017 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due March 2018 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due March 2018 [Member]
Sep. 30, 2016
Senior Notes [Member]
Chubb INA Senior Notes Due May 2018 [Member]
Dec. 31, 2015
Senior Notes [Member]
Chubb INA Senior Notes Due May 2018 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due June 2019 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due June 2019 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due November 2020 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due November 2020 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due November 2022 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due November 2022 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due March 2023 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due March 2023 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due May 2024 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due May 2024 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due March 2025 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due March 2025 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due May 2026 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due May 2026 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due May 2036 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due May 2036 [Member]
Sep. 30, 2016
Senior Notes [Member]
$800 million 6.0% due May 2037
Dec. 31, 2015
Senior Notes [Member]
$800 million 6.0% due May 2037
Sep. 30, 2016
Senior Notes [Member]
$600 million 6.5% due May 2038
Dec. 31, 2015
Senior Notes [Member]
$600 million 6.5% due May 2038
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due March 2043 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due March 2043 [Member]
Sep. 30, 2016
Senior Notes [Member]
INA Senior Notes Due November 2045 [Member]
Dec. 31, 2015
Senior Notes [Member]
INA Senior Notes Due November 2045 [Member]
Sep. 30, 2016
Senior Notes [Member]
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
Dec. 31, 2015
Senior Notes [Member]
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
Sep. 30, 2016
Junior Subordinated Debt [Member]
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Dec. 31, 2015
Junior Subordinated Debt [Member]
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Sep. 30, 2016
Debentures Subject to Mandatory Redemption [Member]
Chubb INA Senior Notes Due August 2018 [Member]
Dec. 31, 2015
Debentures Subject to Mandatory Redemption [Member]
Chubb INA Senior Notes Due August 2018 [Member]
Sep. 30, 2016
Debentures Subject to Mandatory Redemption [Member]
INA Senior Notes Due August 2029 [Member]
Dec. 31, 2015
Debentures Subject to Mandatory Redemption [Member]
INA Senior Notes Due August 2029 [Member]
Sep. 30, 2016
Unsecured Debt [Member]
Chubb INA Senior Notes Due 2031 [Member]
Dec. 31, 2015
Unsecured Debt [Member]
Chubb INA Senior Notes Due 2031 [Member]
Sep. 30, 2016
Trust Preferred Securities [Member]
INA Capital Securities Due April 2030 [Member]
Dec. 31, 2015
Trust Preferred Securities [Member]
INA Capital Securities Due April 2030 [Member]
Sep. 30, 2016
Repurchase Agreements [Member]
Dec. 31, 2015
Repurchase Agreements [Member]
Sep. 30, 2016
Minimum [Member]
Senior Notes [Member]
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
Sep. 30, 2016
Minimum [Member]
Junior Subordinated Debt [Member]
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Sep. 30, 2016
Maximum [Member]
Senior Notes [Member]
Pennsylvania Industrial Development Authority (PIDA) AND City Of Philadelphia Urban Development Action Grant [Member]
Sep. 30, 2016
Maximum [Member]
Junior Subordinated Debt [Member]
Chubb INA $1,000 million 6.375% capital securities due March 2067(1)
Jan. 14, 2016
The Chubb Corporation [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Minimum [Member]
Jan. 14, 2016
The Chubb Corporation [Member]
Maximum [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
$ 1,000 
 
 
$ 500 
 
$ 300 
 
$ 600 
 
$ 500 
 
$ 1,300 
 
$ 1,000 
 
$ 475 
 
$ 700 
 
$ 800 
 
$ 1,500 
 
$ 300 
 
$ 800 
 
$ 600 
 
$ 475 
 
$ 1,500 
 
 
 
$ 1,000 
 
$ 100 
 
$ 100 
 
$ 200 
 
 
 
 
 
 
 
 
 
$ 3,300 
 
 
Repurchase agreements
1,406 
1,404 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,406 
1,404 
 
 
 
 
 
 
 
Short-term debt
500 
0 
 
 
 
500 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term Debt, Weighted Average Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.80% 
0.60% 
 
 
 
 
 
 
 
Interest Rate
 
 
 
 
 
5.70% 
 
5.80% 
 
5.75% 
 
5.90% 
 
2.30% 
 
2.875% 
 
2.70% 
 
3.35% 
 
3.15% 
 
3.35% 
 
6.70% 
 
6.00% 
 
6.50% 
 
4.15% 
 
4.35% 
 
 
 
6.375% 
 
6.60% 
 
8.875% 
 
6.80% 
 
 
 
 
 
2.75% 
 
7.10% 
 
 
2.30% 
4.35% 
Long-term debt
12,621 
9,389 
 
12,621 
9,389 
0 
500 
300 
299 
641 
0 
498 
497 
1,294 
1,294 
994 
994 
471 
471 
694 
694 
794 
794 
1,488 
1,487 
297 
297 
982 
0 
778 
0 
469 
469 
1,482 
1,482 
11 
11 
961 
0 
109 
0 
100 
100 
258 
0 
 
 
 
 
 
 
 
 
3,765 
 
 
Make Whole Premium Additional Percent
 
 
 
 
 
0.20% 
 
0.35% 
 
0.30% 
 
0.40% 
 
0.15% 
 
0.20% 
 
0.10% 
 
0.15% 
 
0.15% 
 
0.20% 
 
0.20% 
 
0.20% 
 
0.30% 
 
0.15% 
 
0.25% 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
0.25% 
 
0.50% 
 
 
 
Trust preferred securities
$ 308 
$ 307 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 308 
$ 307 
 
 
 
 
 
 
 
 
 
Commitments, Contingencies, And Guarantees (Narrative) (Detail) (USD $)
Sep. 30, 2016
Dec. 31, 2015
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
$ 1,140,000,000 
$ 1,046,000,000 
Carrying value of limited partnerships and partially-owned investment companies included in other investments
3,300,000,000 
 
Funding commitments relating to limited partnerships and partially-owned investment companies
2,000,000,000 
 
Unrecognized tax benefits
17,000,000 
 
Derivative liability subject to a master netting agreement
9,000,000 
1,000,000 
Purchase Commitment, Remaining Minimum Amount Committed
788,000,000 
 
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
(1,000,000)
 
Cash and Cash Equivalents [Member] |
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
449,000,000 
 
U.S. Treasury And Agency [Member] |
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
53,000,000 
 
Corporate [Member] |
Overnight and Continuous [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Securities lending collateral
4,000,000 
 
Equity Option [Member]
 
 
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
Derivative Asset, Fair Value, Gross Liability
$ 0 
 
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
Sep. 30, 2016
Dec. 31, 2015
Foreign currency forward contracts
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
$ 2,025 
$ 1,029 
Cross Currency Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 
0 
Fair Value, Asset
0 
0 
Notional Value/Payment Provision
95 
95 
Options/Futures contracts on bonds and equities
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,353 
751 
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
8 
40 1
Investment And Embedded Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
25 
43 
Notional Value/Payment Provision
3,481 
1,915 
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,275 2
1,197 2
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
243 
15 
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,518 
1,212 
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,436 3
1,155 3
Equity Option [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
0 
 
Other Assets [Member] |
Foreign currency forward contracts
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
10 
7 
Other Assets [Member] |
Options/Futures contracts on bonds and equities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
10 
5 
Other Assets [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
4 2
0 2
Other Assets [Member] |
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
10 
0 
Other Assets [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
14 
0 
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
(32)
(11)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Options/Futures contracts on bonds and equities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(2)
(2)
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
(34)
(13)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 2
(4)2
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(8)
(6)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(8)
(10)
Fixed Maturities Available For Sale [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
5 
31 1
Accounts Payable Future Policy Benefits [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
$ (1,166)3
$ (888)3
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 1,140 
$ 1,046 
Securities lending payable
1,141 
1,047 
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
(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
449 
 
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
53 
 
Foreign Government Debt [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
324 
 
Corporate [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
4 
 
Collateralized Mortgage Backed Securities [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
38 
 
Equity Securities [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 272 
 
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Repurchase agreements
$ 1,406 
$ 1,404 
Assets pledged under repurchase agreements
1,464 
1,459 
Securities lending collateral
1,140 
1,046 
Securities lending payable
1,141 
1,047 
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
237 
 
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
1,227 
 
Repurchase Agreements [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
58 
 
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
1 
 
Overnight and Continuous [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
449 
 
Overnight and Continuous [Member] |
Corporate [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
4 
 
Overnight and Continuous [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
53 
 
Overnight and Continuous [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
38 
 
Maturity Less than 30 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
413 
 
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
5 
 
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
408 
 
Maturity 30 to 90 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
484 
 
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
0 
 
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
484 
 
Maturity Greater than 90 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
567 
 
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
232 
 
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
$ 335 
 
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 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
$ 48 
$ (344)
$ (442)
$ (272)
Foreign currency forward contracts
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
(10)
15 
(30)
30 
All Other Futures Contracts And Options [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
8 
(23)
(63)
(10)
Convertibles and Bonds with Warrants Attached [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
3 1
(14)1
8 1
(14)1
Investment And Embedded Derivative Instruments [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
1 
(22)
(85)
6 
Guaranteed Living Benefits [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
89 2
(396)2
(270)2
(337)2
Single-Stock Future [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
(45)3
84 3
(88)3
71 3
Options On Equity Market Indices [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
0 3
(1)3
0 3
(2)3
Guaranteed Living Benefit And Other Derivative Instruments [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
47 
(322)
(357)
(278)
Other Derivatives [Member]
 
 
 
 
Commitments Contingencies And Guarantees [Line Items]
 
 
 
 
Gain (Loss) on Derivative
$ 3 
$ (9)
$ 1 
$ (10)
Shareholders' equity Shareholders' equity (Details)
1 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
May 31, 2016
USD ($)
May 31, 2015
USD ($)
May 31, 2014
USD ($)
Sep. 30, 2016
USD ($)
Sep. 30, 2016
CHF
Sep. 30, 2015
USD ($)
Sep. 30, 2015
CHF
Sep. 30, 2016
USD ($)
Sep. 30, 2016
CHF
Sep. 30, 2015
USD ($)
Sep. 30, 2015
CHF
Dec. 31, 2015
CHF
Sep. 30, 2016
Common Stock [Member]
USD ($)
Sep. 30, 2016
Common Stock [Member]
CHF
Sep. 30, 2015
Common Stock [Member]
USD ($)
Sep. 30, 2015
Common Stock [Member]
CHF
Sep. 30, 2016
Common Stock [Member]
USD ($)
Sep. 30, 2016
Common Stock [Member]
CHF
Sep. 30, 2015
Common Stock [Member]
USD ($)
Sep. 30, 2015
Common Stock [Member]
CHF
Sep. 30, 2016
Additional Paid-in Capital [Member]
USD ($)
Sep. 30, 2016
Additional Paid-in Capital [Member]
CHF
Sep. 30, 2015
Additional Paid-in Capital [Member]
USD ($)
Sep. 30, 2015
Additional Paid-in Capital [Member]
CHF
Sep. 30, 2016
Additional Paid-in Capital [Member]
USD ($)
Sep. 30, 2016
Additional Paid-in Capital [Member]
CHF
Sep. 30, 2015
Additional Paid-in Capital [Member]
USD ($)
Sep. 30, 2015
Additional Paid-in Capital [Member]
CHF
Sep. 30, 2015
2015 Stock Repurchase Plan [Member]
USD ($)
Sep. 30, 2015
2015 Stock Repurchase Plan [Member]
USD ($)
Jan. 1, 2015
2015 Stock Repurchase Plan [Member]
USD ($)
Jan. 1, 2016
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, Per-Dollar-Amount Approved by Shareholders
$ 0.69 
$ 0.67 
$ 0.65 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
 
 
$ 0.69 
 0.67 
$ 0.67 
 0.65 
$ 2.05 
 2.01 
$ 1.99 
 1.89 
 
$ 0 
 0 
$ 0 
 0 
$ 0 
 0 
$ 0.65 
 0.62 
$ 0.69 
 0.67 
$ 0.67 
 0.65 
$ 2.05 
 2.01 
$ 1.34 
 1.27 
 
 
 
 
Common Shares repurchased
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 734,000,000 
 
 
Repurchase of outstanding common shares, shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,677,663 
 
 
Common Shares in treasury, shares
 
 
 
14,497,754 
14,497,754 
 
 
14,497,754 
14,497,754 
 
 
18,268,971 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Authorized amount of share repurchase program
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,500,000,000 
$ 0 
Annual dividend per share approved by shareholders
$ 2.76 
$ 2.68 
$ 2.60 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-Based Compensation (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
May 31, 2016
Jan. 14, 2016
The Chubb Corporation [Member]
Sep. 30, 2016
The Chubb Corporation [Member]
Feb. 25, 2016
Stock Options [Member]
Sep. 30, 2016
Stock Options [Member]
Feb. 25, 2016
Restricted Stock [Member]
Sep. 30, 2016
Restricted Stock [Member]
Feb. 25, 2016
Restricted Stock Units (RSUs) [Member]
Feb. 25, 2016
Performance Shares [Member]
Sep. 30, 2016
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
Award vesting period in years
 
 
3 years 
 
3 years 
 
4 years 
 
 
4 years 
Award term period in years
 
 
10 years 
 
10 years 
 
 
 
 
 
Stock options granted
 
 
 
1,926,842 
 
 
 
 
 
 
Weighted-average grant date fair value for stock options granted
 
 
 
$ 21.52 
 
 
 
 
 
 
Restricted stock awards granted to employees and officers of the company
 
 
 
 
 
1,119,686 
 
 
452,820 
 
Restricted stock units awarded to employees and officers of the company
 
 
 
 
 
 
 
337,581 
 
 
Grant date fair value of awards except for options granted to employees and officers of the company
 
 
 
 
 
$ 118.39 
 
 
 
 
Attributed Value Equity Awards Assumed in Acquisition
 
$ 323 
 
 
 
 
 
 
 
 
Total Value of Equity Awards Issued in Acquisition
 
$ 525 
 
 
 
 
 
 
 
 
Shares authorized to be issued
19,500,000 
 
 
 
 
 
 
 
 
 
Postretirement benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Sep. 30, 2016
Pension Plan [Member]
Sep. 30, 2015
Pension Plan [Member]
Sep. 30, 2016
Pension Plan [Member]
Sep. 30, 2015
Pension Plan [Member]
Jan. 14, 2016
Pension Plan [Member]
The Chubb Corporation [Member]
Sep. 30, 2016
Pension Plan [Member]
Non-US [Member]
Sep. 30, 2015
Pension Plan [Member]
Non-US [Member]
Sep. 30, 2016
Pension Plan [Member]
Non-US [Member]
Sep. 30, 2015
Pension Plan [Member]
Non-US [Member]
Dec. 31, 2015
Pension Plan [Member]
Non-US [Member]
Jan. 14, 2016
Pension Plan [Member]
Non-US [Member]
The Chubb Corporation [Member]
Sep. 30, 2016
Pension Plan [Member]
U.S.
Sep. 30, 2015
Pension Plan [Member]
U.S.
Sep. 30, 2016
Pension Plan [Member]
U.S.
Sep. 30, 2015
Pension Plan [Member]
U.S.
Jan. 14, 2016
Pension Plan [Member]
U.S.
The Chubb Corporation [Member]
Sep. 30, 2016
Other Postretirement Benefit Plan [Member]
Sep. 30, 2016
Other Postretirement Benefit Plan [Member]
Jan. 14, 2016
Other Postretirement Benefit Plan [Member]
The Chubb Corporation [Member]
Sep. 30, 2016
Other Postretirement Benefit Plan [Member]
Non-US [Member]
Sep. 30, 2016
Other Postretirement Benefit Plan [Member]
Non-US [Member]
Jan. 14, 2016
Other Postretirement Benefit Plan [Member]
Non-US [Member]
The Chubb Corporation [Member]
Sep. 30, 2016
Other Postretirement Benefit Plan [Member]
U.S.
Sep. 30, 2016
Other Postretirement Benefit Plan [Member]
U.S.
Jan. 14, 2016
Other Postretirement Benefit Plan [Member]
U.S.
The Chubb Corporation [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value of Plan Assets
 
 
 
 
 
 
$ 2,788 
 
 
 
 
 
$ 315 
 
 
 
 
$ 2,473 
 
 
$ 138 
 
 
$ 0 
 
 
$ 138 
Projected Benefit Obligation
 
 
 
 
 
 
(3,525)
 
 
 
 
 
(372)
 
 
 
 
(3,153)
 
 
(506)
 
 
(15)
 
 
(491)
Funded Status of Plan
 
 
 
 
 
 
(737)
 
 
 
 
 
(57)
 
 
 
 
(680)
 
 
(368)
 
 
(15)
 
 
(353)
Contributions During Current Period
24 
156 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected Contribution For Remainder of Year
 
8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Cost
 
 
26 
2 
72 
5 
 
6 
2 
15 
5 
 
 
20 
0 
57 
0 
 
4 
9 
 
0 
1 
 
4 
8 
 
Interest Cost
 
 
34 
5 
104 
15 
 
8 
5 
24 
15 
 
 
26 
0 
80 
0 
 
4 
13 
 
0 
0 
 
4 
13 
 
Expected Return on Plan Assets
 
 
(52)
(7)
(151)
(21)
 
(10)
(7)
(30)
(21)
 
 
(42)
0 
(121)
0 
 
(3)
(7)
 
0 
0 
 
(3)
(7)
 
Amortization of Actuarial (Gain) Loss
 
 
0 
0 
2 
2 
 
0 
0 
2 
2 
 
 
0 
0 
0 
0 
 
 
0 
 
0 
0 
 
0 
0 
 
Curtailments
 
 
(4)
 
(4)
 
 
0 
 
0 
 
 
 
(4)
 
(4)
 
 
0 
0 
 
0 
0 
 
0 
0 
 
Settlements
 
 
(1)
 
(1)
 
 
0 
 
0 
 
 
 
(1)
 
(1)
 
 
0 
0 
 
0 
0 
 
0 
0 
 
Net Periodic Benefit Cost
 
 
$ 3 
$ 0 
$ 22 
$ 1 
 
$ 4 
$ 0 
$ 11 
$ 1 
 
 
$ (1)
$ 0 
$ 11 
$ 0 
 
$ 5 
$ 15 
 
$ 0 
$ 1 
 
$ 5 
$ 14 
 
Discount Rate
 
 
 
 
 
 
 
 
 
3.74% 
 
3.51% 
 
 
 
4.28% 
 
 
 
 
 
 
4.30% 
 
 
4.41% 
 
Rate of Compensation Increase
 
 
 
 
 
 
 
 
 
3.40% 
 
3.09% 
 
 
 
4.00% 
 
 
 
 
 
 
 
 
 
 
 
Expected Long-term Rate of Return on Plan Assets Assumption
 
 
 
 
 
 
 
 
 
4.90% 
 
4.81% 
 
 
 
7.00% 
 
 
 
 
 
 
 
 
 
7.00% 
 
Segment Information (Operations By Segment) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
$ 7,573 
$ 4,709 
$ 21,207 
$ 13,569 
Net premiums earned
7,688 
4,719 
21,690 
13,006 
Losses and loss expenses
4,269 
2,643 
12,197 
7,182 
Policy benefits
155 
89 
427 
384 
Policy acquisition costs
1,514 
771 
4,487 
2,205 
Administrative expenses
772 
568 
2,373 
1,700 
Underwriting income (loss)
978 
648 
2,206 
1,535 
Net investment income
739 
549 
2,121 
1,662 
Other (income) expense
(91)
12 
(92)
(61)
Amortization of purchased intangibles
4 
51 
16 
136 
Segment Income (loss)
1,804 
1,134 
4,403 
3,122 
Net realized gains including OTTI
100 
(397)
(510)
(360)
Interest expense
152 
68 
451 
207 
Chubb integration expenses
115 
9 
361 
9 
Income tax expense
277 
132 
556 
395 
Net income
1,360 
528 
2,525 
2,151 
Gain (Loss) on Derivative
48 
(344)
(442)
(272)
North America Commercial P&C Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
3,110 
1,433 
8,657 
4,158 
Net premiums earned
3,086 
1,410 
9,130 
4,209 
Losses and loss expenses
1,863 
913 
5,581 
2,744 
Policy acquisition costs
522 
142 
1,549 
403 
Administrative expenses
275 
154 
840 
459 
Underwriting income (loss)
426 
201 
1,160 
603 
Net investment income
477 
260 
1,371 
780 
Other (income) expense
3 
(3)
(6)
(5)
Amortization of purchased intangibles
0 
0 
0 
0 
Segment Income (loss)
900 
464 
2,537 
1,388 
North America Personal P&C Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
1,011 
278 
3,113 
958 
Net premiums earned
1,081 
272 
3,245 
687 
Losses and loss expenses
594 
179 
1,916 
446 
Policy acquisition costs
229 
13 
747 
43 
Administrative expenses
89 
36 
275 
89 
Underwriting income (loss)
169 
44 
307 
109 
Net investment income
53 
7 
155 
19 
Other (income) expense
2 
1 
6 
1 
Amortization of purchased intangibles
4 
31 
16 
63 
Segment Income (loss)
216 
19 
440 
64 
North America Agricultural Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
849 
737 
1,288 
1,204 
Net premiums earned
819 
739 
1,169 
1,124 
Losses and loss expenses
683 
620 
937 
913 
Policy acquisition costs
48 
42 
77 
61 
Administrative expenses
1 
0 
(1)
3 
Underwriting income (loss)
87 
77 
156 
147 
Net investment income
5 
5 
15 
17 
Other (income) expense
0 
(1)
0 
1 
Amortization of purchased intangibles
7 
8 
22 
22 
Segment Income (loss)
85 
75 
149 
141 
Management North America Agricultural Insurance segment income
90 
 
 
 
Overseas General Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
1,940 
1,584 
6,012 
5,047 
Net premiums earned
2,034 
1,615 
6,082 
4,896 
Losses and loss expenses
843 
674 
2,953 
2,304 
Policy acquisition costs
546 
405 
1,586 
1,190 
Administrative expenses
261 
246 
801 
756 
Underwriting income (loss)
384 
290 
742 
646 
Net investment income
152 
132 
445 
409 
Other (income) expense
(6)
(6)
(16)
(12)
Amortization of purchased intangibles
12 
12 
36 
50 
Segment Income (loss)
530 
416 
1,167 
1,017 
Global Reinsurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
131 
185 
562 
719 
Net premiums earned
156 
203 
543 
649 
Losses and loss expenses
49 
20 
225 
191 
Policy acquisition costs
42 
52 
142 
166 
Administrative expenses
12 
12 
40 
37 
Underwriting income (loss)
53 
119 
136 
255 
Net investment income
67 
76 
199 
230 
Other (income) expense
0 
(4)
(3)
(5)
Amortization of purchased intangibles
0 
0 
0 
0 
Segment Income (loss)
120 
199 
338 
490 
Life Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net premiums written
532 
492 
1,575 
1,483 
Net premiums earned
512 
480 
1,521 
1,441 
Losses and loss expenses
174 
153 
498 
442 
Policy benefits
155 
89 
427 
384 
Policy acquisition costs
127 
117 
386 
342 
Administrative expenses
77 
74 
226 
221 
Underwriting income (loss)
(21)
47 
(16)
52 
Net investment income
71 
66 
207 
198 
Other (income) expense
(20)
48 
(14)
32 
Amortization of purchased intangibles
1 
0 
2 
1 
Segment Income (loss)
69 
65 
203 
217 
Management Underwriting Income (Loss)
72 
 
 
 
Gains Losses On Fair Value Changes In Separate Account Assets
22 
 
 
 
Corporate And Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Losses and loss expenses
63 
84 
87 
142 
Policy acquisition costs
 
0 
 
0 
Administrative expenses
57 
46 
192 
135 
Underwriting income (loss)
(120)
(130)
(279)
(277)
Net investment income
(86)
3 
(271)
9 
Other (income) expense
(70)
(23)
(59)
(73)
Amortization of purchased intangibles
(20)
0 
(60)
0 
Segment Income (loss)
(116)
(104)
(431)
(195)
Net realized gains including OTTI
100 
(397)
(510)
(360)
Interest expense
152 
68 
451 
207 
Chubb integration expenses
115 
9 
361 
9 
Income tax expense
277 
132 
556 
395 
Net income
(560)
(710)
(2,309)
(1,166)
Commodity [Member] |
North America Agricultural Insurance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Gain (Loss) on Derivative
$ 3 
 
 
 
Earnings Per Share (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Earnings Per Share [Abstract]
 
 
 
 
Net income
$ 1,360 
$ 528 
$ 2,525 
$ 2,151 
Weighted-average shares outstanding
468,021,093 
324,210,936 
460,631,794 
325,904,502 
Share-based compensation plans
3,375,269 
2,962,484 
3,439,017 
3,269,724 
Weighted-average shares outstanding and assumed conversions
471,396,362 
327,173,420 
464,070,811 
329,174,226 
Basic earnings per share (US$ per share)
$ 2.90 
$ 1.63 
$ 5.48 
$ 6.60 
Diluted earnings per share (US$ per share)
$ 2.88 
$ 1.62 
$ 5.44 
$ 6.53 
Potential anti-dilutive share conversions
1,306,710 
1,907,815 
1,635,337 
1,503,830 
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details) (USD $)
Sep. 30, 2016
Dec. 31, 2015
Jan. 14, 2016
The Chubb Corporation [Member]
Jan. 14, 2016
Minimum [Member]
The Chubb Corporation [Member]
Jan. 14, 2016
Maximum [Member]
The Chubb Corporation [Member]
Debt Instrument [Line Items]
 
 
 
 
 
Equity Method Investment, Ownership Percentage
100.00% 
 
 
 
 
Intercompany Loan Agreements
 
 
$ 10,000,000,000 
 
 
Interest Rate
 
 
 
2.30% 
4.35% 
Debt Instrument, Face Amount
 
 
3,300,000,000 
 
 
Long-term debt
$ 12,621,000,000 
$ 9,389,000,000 
$ 3,765,000,000 
 
 
Weighted Average Interest Rate
 
 
3.30% 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
$ 101,036 
$ 66,251 
 
 
Cash
870 1 2
1,775 1 3
1,038 4
655 4
Insurance and reinsurance balances receivable
8,493 
5,323 
 
 
Reinsurance recoverable on losses and loss expenses
13,448 
11,386 
 
 
Reinsurance recoverable on policy benefits
195 
187 
 
 
Value of business acquired
368 
395 
 
 
Goodwill and other intangible assets
22,472 
5,683 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
14,928 
11,306 
 
 
Total assets
161,810 
102,306 
 
 
Unpaid losses and loss expenses
61,347 
37,303 
 
 
Unearned premiums
15,054 
8,439 
 
 
Future policy benefits
5,010 
4,807 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Repurchase agreements
1,406 
1,404 
 
 
Short-term debt
500 
0 
 
 
Affiliated notional cash pooling programs
0 
0 
 
 
Long-term debt
12,621 
9,389 
 
 
Trust preferred securities
308 
307 
 
 
Other liabilities
17,192 
11,522 
 
 
Total liabilities
113,438 
73,171 
 
 
Total shareholders' equity
48,372 
29,135 
29,127 
 
Total liabilities and shareholders’ equity
161,810 
102,306 
 
 
Consolidating Adjustments and Eliminations
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
0 
0 
 
 
Cash
(1,296)1 2
(971)1 3
(1,161)4
(555)4
Insurance and reinsurance balances receivable
(2,899)
(752)
 
 
Reinsurance recoverable on losses and loss expenses
(10,194)
(8,738)
 
 
Reinsurance recoverable on policy benefits
(972)
(942)
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
(88,719)
(47,998)
 
 
Due from subsidiaries and affiliates, net
(11,186)
(2,444)
 
 
Other assets
(4,299)
(3,593)
 
 
Total assets
(119,565)
(65,438)
 
 
Unpaid losses and loss expenses
(9,535)
(8,187)
 
 
Unearned premiums
(3,719)
(1,804)
 
 
Future policy benefits
(972)
(942)
 
 
Due to subsidiaries and affiliates, net
(11,186)
(2,444)
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
0 
 
 
 
Affiliated notional cash pooling programs
(1,296)2
(971)3
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
(4,138)
(3,092)
 
 
Total liabilities
(30,846)
(17,440)
 
 
Total shareholders' equity
(88,719)
(47,998)
 
 
Total liabilities and shareholders’ equity
(119,565)
(65,438)
 
 
Chubb Limited (Parent Guarantor)
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
25 
28 
 
 
Cash
6 1 2
1 1 3
17 4
0 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
38,403 
29,612 
 
 
Due from subsidiaries and affiliates, net
11,186 
644 
 
 
Other assets
5 
8 
 
 
Total assets
49,625 
30,293 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
0 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
0 
 
 
 
Affiliated notional cash pooling programs
927 2
882 3
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
326 
276 
 
 
Total liabilities
1,253 
1,158 
 
 
Total shareholders' equity
48,372 
29,135 
 
 
Total liabilities and shareholders’ equity
49,625 
30,293 
 
 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
812 
7,839 
 
 
Cash
2 1 2
2 1 3
5 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
50,316 
18,386 
 
 
Due from subsidiaries and affiliates, net
0 
1,800 
 
 
Other assets
366 
457 
 
 
Total assets
51,496 
28,484 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
0 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
10,996 
0 
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
500 
 
 
 
Affiliated notional cash pooling programs
369 2
89 3
 
 
Long-term debt
12,610 
9,378 
 
 
Trust preferred securities
308 
307 
 
 
Other liabilities
1,588 
1,422 
 
 
Total liabilities
26,371 
11,196 
 
 
Total shareholders' equity
25,125 
17,288 
 
 
Total liabilities and shareholders’ equity
51,496 
28,484 
 
 
Other Chubb Limited Subsidiaries
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Investments
100,199 
58,384 
 
 
Cash
2,158 1 2
2,743 1 3
2,177 4
1,209 4
Insurance and reinsurance balances receivable
11,392 
6,075 
 
 
Reinsurance recoverable on losses and loss expenses
23,642 
20,124 
 
 
Reinsurance recoverable on policy benefits
1,167 
1,129 
 
 
Value of business acquired
368 
395 
 
 
Goodwill and other intangible assets
22,472 
5,683 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
18,856 
14,434 
 
 
Total assets
180,254 
108,967 
 
 
Unpaid losses and loss expenses
70,882 
45,490 
 
 
Unearned premiums
18,773 
10,243 
 
 
Future policy benefits
5,982 
5,749 
 
 
Due to subsidiaries and affiliates, net
190 
2,444 
 
 
Repurchase agreements
1,406 
1,404 
 
 
Short-term debt
0 
 
 
 
Affiliated notional cash pooling programs
0 2
0 3
 
 
Long-term debt
11 
11 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
19,416 
12,916 
 
 
Total liabilities
116,660 
78,257 
 
 
Total shareholders' equity
63,594 
30,710 
 
 
Total liabilities and shareholders’ equity
$ 180,254 
$ 108,967 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
$ 7,573 
$ 4,709 
$ 21,207 
$ 13,569 
Net premiums earned
7,688 
4,719 
21,690 
13,006 
Net investment income
739 
549 
2,121 
1,662 
Equity in earnings of subsidiaries
0 
0 
0 
0 
Net realized gains including OTTI
100 
(397)
(510)
(360)
Losses and loss expenses
4,269 
2,643 
12,197 
7,182 
Policy benefits
155 
89 
427 
384 
Policy acquisition costs and administrative expenses
2,286 
1,339 
6,860 
3,905 
Interest (income) expense
152 
68 
451 
207 
Other (income) expense
(91)
12 
(92)
(61)
Amortization of purchased intangibles
4 
51 
16 
136 
Chubb integration expenses
115 
9 
361 
9 
Income tax expense
277 
132 
556 
395 
Net income
1,360 
528 
2,525 
2,151 
Comprehensive income (loss)
1,376 
(271)
4,457 
768 
Chubb Limited (Parent Guarantor)
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
0 
0 
0 
0 
Net premiums earned
0 
0 
0 
0 
Net investment income
1 
1 
3 
2 
Equity in earnings of subsidiaries
1,292 
488 
2,331 
2,037 
Net realized gains including OTTI
0 
0 
(1)
0 
Losses and loss expenses
0 
0 
0 
0 
Policy benefits
0 
0 
0 
0 
Policy acquisition costs and administrative expenses
15 
15 
48 
47 
Interest (income) expense
(93)
(8)
(266)
(23)
Other (income) expense
(7)
(51)
(20)
(149)
Amortization of purchased intangibles
0 
0 
0 
0 
Chubb integration expenses
12 
1 
29 
1 
Income tax expense
6 
4 
17 
12 
Net income
1,360 
528 
2,525 
2,151 
Comprehensive income (loss)
1,376 
(271)
4,457 
768 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
0 
0 
0 
0 
Net premiums earned
0 
0 
0 
0 
Net investment income
2 
1 
9 
2 
Equity in earnings of subsidiaries
748 
255 
1,803 
755 
Net realized gains including OTTI
(2)
(4)
(3)
(6)
Losses and loss expenses
0 
0 
0 
0 
Policy benefits
0 
0 
0 
0 
Policy acquisition costs and administrative expenses
12 
7 
144 
20 
Interest (income) expense
233 
68 
681 
206 
Other (income) expense
6 
(5)
26 
(12)
Amortization of purchased intangibles
0 
0 
0 
0 
Chubb integration expenses
16 
8 
56 
8 
Income tax expense
(136)
(31)
(323)
(84)
Net income
617 
205 
1,225 
613 
Comprehensive income (loss)
627 
(265)
2,687 
(332)
Other Chubb Limited Subsidiaries
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
Net premiums written
7,573 
4,709 
21,207 
13,569 
Net premiums earned
7,688 
4,719 
21,690 
13,006 
Net investment income
736 
547 
2,109 
1,658 
Equity in earnings of subsidiaries
0 
0 
0 
0 
Net realized gains including OTTI
102 
(393)
(506)
(354)
Losses and loss expenses
4,269 
2,643 
12,197 
7,182 
Policy benefits
155 
89 
427 
384 
Policy acquisition costs and administrative expenses
2,259 
1,317 
6,668 
3,838 
Interest (income) expense
12 
8 
36 
24 
Other (income) expense
(90)
68 
(98)
100 
Amortization of purchased intangibles
4 
51 
16 
136 
Chubb integration expenses
87 
 
276 
0 
Income tax expense
407 
159 
862 
467 
Net income
1,423 
538 
2,909 
2,179 
Comprehensive income (loss)
1,439 
(262)
4,841 
795 
Consolidating Adjustments and Eliminations
 
 
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries [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
(2,040)
(743)
(4,134)
(2,792)
Net realized gains 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
(2,040)
(743)
(4,134)
(2,792)
Comprehensive income (loss)
$ (2,066)
$ 527 
$ (7,528)
$ (463)
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Consolidating Adjustments and Eliminations
Sep. 30, 2015
Consolidating Adjustments and Eliminations
Sep. 30, 2016
Chubb Limited (Parent Guarantor)
Sep. 30, 2015
Chubb Limited (Parent Guarantor)
Sep. 30, 2016
Chubb INA Holdings Inc (Subsidiary Issuer)
Sep. 30, 2015
Chubb INA Holdings Inc (Subsidiary Issuer)
Sep. 30, 2016
Other Chubb Limited Subsidiaries
Sep. 30, 2015
Other Chubb Limited Subsidiaries
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items]
 
 
 
 
 
 
 
 
 
 
Equity Method Investment, Ownership Percentage
100.00% 
 
 
 
 
 
 
 
 
 
Net cash flows from operating activities
$ 3,837 
$ 2,699 
$ (7,372)
$ (276)
$ 3,399 
$ 350 
$ 3,892 
$ (46)
$ 3,918 
$ 2,671 
Payments To Acquire Available For Sale Securities Debt Condensed
(23,837)
(13,060)
0 
(8)
0 
0 
(154)
 
(23,683)
(13,052)
Purchases of fixed maturities held to maturity
(189)
(39)
0 
0 
0 
0 
0 
0 
(189)
(39)
Purchases of equity securities
(100)
(122)
0 
0 
0 
0 
0 
0 
(100)
(122)
Proceeds From Sale Of Available For Sale Securities Debt Condensed
13,863 
5,233 
0 
0 
0 
0 
66 
0 
13,797 
5,233 
Sales of equity securities
963 
150 
0 
0 
0 
0 
0 
0 
963 
150 
Maturities and redemptions of fixed maturities available for sale
6,936 
5,257 
0 
0 
0 
0 
59 
0 
6,877 
5,257 
Maturities and redemptions of fixed maturities held to maturity
627 
552 
0 
0 
0 
0 
0 
0 
627 
552 
Net change in short-term investments
11,866 
421 
0 
0 
0 
0 
7,627 
215 
4,239 
206 
Net derivative instruments settlements
(181)
62 
0 
0 
0 
0 
(10)
(10)
(171)
72 
Cash Acquired from Acquisition
71 
620 
 
 
 
 
 
 
 
 
Acquisition of subsidiaries (net of cash acquired of $71 and $620)
(14,248)
259 
0 
0 
0 
0 
(14,282)
0 
34 
259 
Payment Of Contributions To Subsidiary
0 
0 
4,680 
625 
(2,330)
0 
(20)
(625)
(2,330)
0 
Other
26 
(138)
0 
8 
0 
0 
(3)
(25)
29 
(121)
Net cash flows used for investing activities
(4,274)
(1,425)
4,680 
625 
(2,330)
0 
(6,717)
(445)
93 
(1,605)
Dividends paid on Common Shares
(851)
(644)
0 
0 
(851)
(644)
0 
0 
0 
0 
Common Shares repurchased
0 
(758)
 
0 
 
0 
 
0 
 
(758)
Proceeds from issuance of long-term debt
0 
800 
 
0 
 
0 
 
800 
 
0 
Proceeds from issuance of repurchase agreements
1,457 
1,478 
0 
0 
0 
0 
0 
0 
1,457 
1,478 
Repayment of long-term debt
0 
(451)
 
0 
 
0 
 
(450)
 
(1)
Repayments of repurchase agreements
(1,455)
(1,477)
0 
0 
0 
0 
0 
0 
(1,455)
(1,477)
Proceeds from share-based compensation plans, including windfall tax benefits
117 
89 
0 
0 
0 
0 
0 
0 
117 
89 
Dividend to Parent Company
0 
0 
7,372 
276 
0 
0 
0 
0 
(7,372)
(276)
Capital contribution
0 
 
(4,680)
(625)
0 
 
2,330 
 
2,350 
625 
Advances To From Affiliates Financing Activities
0 
0 
0 
0 
(258)
(416)
219 
272 
39 
144 
Net proceeds from (payments to) affiliated notional cash pooling program
0 
0 
(325)1
(606)
45 1
727 2
280 1
(121)2
0 1
0 2
Policyholder contract deposits
473 
351 
0 
0 
0 
0 
0 
0 
473 
351 
Policyholder contract withdrawals
(247)
(159)
0 
0 
0 
0 
0 
0 
(247)
(159)
Other
(4)
(6)
0 
0 
0 
0 
(4)
(6)
0 
0 
Net cash flows used for financing activities
(510)
(777)
2,367 
(955)
(1,064)
(333)
2,825 
495 
(4,638)
16 
Effect of foreign currency rate changes on cash and cash equivalents
42 
(114)
0 
0 
0 
0 
0 
0 
42 
(114)
Net increase (decrease) in cash
(905)
383 
(325)
(606)
5 
17 
0 
4 
(585)
968 
Cash – beginning of period
1,775 1 3
655 2
(971)1 3
(555)2
1 1 3
0 2
2 1 3
1 2
2,743 1 3
1,209 2
Cash – end of period
$ 870 1 4
$ 1,038 2
$ (1,296)1 4
$ (1,161)2
$ 6 1 4
$ 17 2
$ 2 1 4
$ 5 2
$ 2,158 1 4
$ 2,177 2