CHUBB LTD, 10-Q filed on 5/4/2017
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2017
Apr. 21, 2017
Entity Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2017 
 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q1 
 
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
 
466,925,420 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Investments [Abstract]
 
 
Fixed maturities available for sale, at fair value (amortized cost - $79,957 and $79,536) (includes hybrid financial instruments of $2)
$ 80,806 
$ 80,115 
Fixed maturities held to maturity, at amortized cost (fair value – $10,604 and $10,670)
10,519 
10,644 
Equity securities, at fair value (cost – $699 and $706)
835 
814 
Short-term investments, at fair value and amortized cost
2,780 
3,002 
Other investments (cost – $4,271 and $4,270)
4,551 
4,519 
Total investments
99,491 
99,094 
Cash
1,063 1 2
985 1 3
Securities lending collateral
1,071 
1,092 
Accrued investment income
897 
918 
Insurance and reinsurance balances receivable
8,880 
8,970 
Reinsurance recoverable on losses and loss expenses
13,769 
13,577 
Reinsurance recoverable on policy benefits
187 
182 
Deferred policy acquisition costs
4,406 
4,314 
Value of business acquired
345 
355 
Goodwill
15,387 
15,332 
Other intangible assets
6,674 
6,763 
Prepaid reinsurance premiums
2,549 
2,448 
Investments in partially-owned insurance companies
666 
666 
Other assets
5,582 
5,090 
Total assets
160,967 
159,786 
Liabilities
 
 
Unpaid losses and loss expenses
60,579 
60,540 
Unearned premiums
14,857 
14,779 
Future policy benefits
5,086 
5,036 
Insurance and reinsurance balances payable
5,797 
5,637 
Securities lending payable
1,072 
1,093 
Accounts payable, accrued expenses, and other liabilities
9,073 
8,617 
Deferred tax liabilities
967 
988 
Repurchase agreements
1,404 
1,403 
Short-term debt
300 
500 
Long-term debt
12,300 
12,610 
Trust preferred securities
308 
308 
Total liabilities
111,743 
111,511 
Commitments and contingencies
   
   
Shareholders’ equity
 
 
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 467,223,019 and 465,968,716 shares outstanding)
11,121 
11,121 
Common Shares in treasury (12,560,845 and 13,815,148 shares)
(1,398)
(1,480)
Additional paid-in capital
14,795 
15,335 
Retained earnings
24,706 
23,613 
Accumulated other comprehensive income (loss) (AOCI)
0 
(314)
Total shareholders’ equity
49,224 
48,275 
Total liabilities and shareholders’ equity
$ 160,967 
$ 159,786 
Consolidated Balance Sheets (Parenthetical)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2017
USD ($)
Mar. 31, 2017
CHF
Dec. 31, 2016
USD ($)
Dec. 31, 2016
CHF
Statement of Financial Position [Abstract]
 
 
 
 
Available for sale, at amortized cost
$ 79,957 
 
$ 79,536 
 
Fixed maturities available for sale, hybrid financial instruments
2 
 
2 
 
Held to maturity, at Fair Value
10,604 
 
10,670 
 
Equity securities, at cost
699 
 
706 
 
Other investments, cost
$ 4,271 
 
$ 4,270 
 
Common Shares, par value
 
 24.15 
 
 24.15 
Common Shares, shares issued
479,783,864 
479,783,864 
479,783,864 
479,783,864 
Common Shares, shares outstanding
467,223,019 
467,223,019 
465,968,716 
465,968,716 
Common Shares in treasury, shares
12,560,845 
12,560,845 
13,815,148 
13,815,148 
Consolidated Statements Of Operations and Comprehensive Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Revenues
 
 
Net premiums written
$ 6,710 
$ 5,995 
Decrease in unearned premiums
62 
602 
Net premiums earned
6,772 
6,597 
Net investment income
745 
674 
Net Realized Gains Losses [Abstract]
 
 
Other-than-temporary impairment (OTTI) losses gross
(19)
(71)
Portion of OTTI losses recognized in other comprehensive income (OCI)
0 
8 
Net OTTI losses recognized in income
(19)
(63)
Net realized gains (losses) excluding OTTI losses
12 
(331)
Total net realized gains (losses) (includes $(8) and $(152) reclassified from AOCI)
(7)
(394)
Total revenues
7,510 
6,877 
Expenses
 
 
Losses and loss expenses
3,789 
3,674 
Policy benefits
168 
126 
Policy acquisition costs
1,397 
1,413 
Administrative expenses
676 
772 
Interest expense
154 
146 
Other (income) expense
(70)
28 
Amortization of purchased intangibles
64 
7 
Chubb integration expenses
111 
148 
Total expenses
6,289 
6,314 
Income before income tax
1,221 
563 
Income tax (benefit) expense (includes $(6) and $(1) on reclassified unrealized losses)
128 
124 
Net income
1,093 
439 
Other comprehensive income
 
 
Unrealized appreciation
307 
905 
Reclassification adjustment for net realized losses included in net income
8 
152 
Unrealized appreciation (Depreciation) after reclassification adjustment
315 
1,057 
Change in:
 
 
Cumulative foreign currency translation adjustment
134 
312 
Postretirement benefit liability adjustment
(20)
2 
Other comprehensive income, before income tax
429 
1,371 
Income tax expense related to OCI items
(115)
(269)
Other comprehensive income
314 
1,102 
Comprehensive income
$ 1,407 
$ 1,541 
Earnings per share
 
 
Basic earnings per share
$ 2.33 
$ 0.98 
Diluted earnings per share
$ 2.31 
$ 0.97 
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Total net realized gains (losses) reclassified from AOCI
$ (8)
$ (152)
Income tax expense on reclassified unrealized gains and loses
$ (6)
$ (1)
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions
Total
Common Stock [Member]
Common Stock [Member]
The Chubb Corporation [Member]
Common shares in treasury [Member]
Additional Paid-in Capital [Member]
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Retained Earnings [Member]
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Cumulative Foreign Currency Translation Adjustment [Member]
Postretirement Benefit Liability Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Balance - beginning of period at Dec. 31, 2015
 
$ 7,833 
 
$ (1,922)
$ 4,481 
 
$ 19,478 
$ 874 
$ (1,539)
$ (70)
 
Shares Issued for Chubb Corp Acquisition
 
 
3,288 
 
 
11,916 
 
 
 
 
 
Common Shares repurchased
 
 
 
0 
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
 
274 
(310)
323 
 
 
 
 
 
Exercise of stock options
 
 
 
 
(21)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
 
65 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
 
(314)
 
 
 
 
 
 
Net income
439 
 
 
 
 
 
439 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
 
314 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
 
(314)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax expense of $(102) and $(232)
 
 
 
 
 
 
 
673 
 
 
 
Amounts reclassified from AOCI, net of income tax expense of $(6) and $(1)
 
 
 
 
 
 
 
151 
 
 
 
Change in period, net of income tax expense of $(108) and $(233)
 
 
 
 
 
 
 
824 
 
 
 
Change in period, net of income tax expense of $(3) and $(35)
 
 
 
 
 
 
 
 
277 
 
 
Change in period, net of income tax expense of $(4) and $(1)
 
 
 
 
 
 
 
 
 
1 
 
Balance - end of period at Mar. 31, 2016
45,897 
11,121 
 
(1,648)
16,140 
 
19,917 
1,698 
(1,262)
(69)
367 
Balance - beginning of period at Dec. 31, 2016
48,275 
11,121 
 
(1,480)
15,335 
 
23,613 
1,058 
(1,663)
291 
 
Shares Issued for Chubb Corp Acquisition
 
 
0 
 
 
0 
 
 
 
 
 
Common Shares repurchased
 
 
 
(140)
 
 
 
 
 
 
 
Net shares redeemed under employee share-based compensation plans
 
 
 
222 
(260)
0 
 
 
 
 
 
Exercise of stock options
 
 
 
 
(21)
 
 
 
 
 
 
Share-based compensation expense and other
 
 
 
 
65 
 
 
 
 
 
 
Funding of dividends declared to Retained earnings
 
 
 
 
(324)
 
 
 
 
 
 
Net income
1,093 
 
 
 
 
 
1,093 
 
 
 
 
Funding of dividends declared from Additional paid-in capital
 
 
 
 
 
 
324 
 
 
 
 
Dividends declared on Common Shares
 
 
 
 
 
 
(324)
 
 
 
 
Change in period, before reclassification from AOCI, net of income tax expense of $(102) and $(232)
 
 
 
 
 
 
 
205 
 
 
 
Amounts reclassified from AOCI, net of income tax expense of $(6) and $(1)
 
 
 
 
 
 
 
2 
 
 
 
Change in period, net of income tax expense of $(108) and $(233)
 
 
 
 
 
 
 
207 
 
 
 
Change in period, net of income tax expense of $(3) and $(35)
 
 
 
 
 
 
 
 
131 
 
 
Change in period, net of income tax expense of $(4) and $(1)
 
 
 
 
 
 
 
 
 
(24)
 
Balance - end of period at Mar. 31, 2017
$ 49,224 
$ 11,121 
 
$ (1,398)
$ 14,795 
 
$ 24,706 
$ 1,265 
$ (1,532)
$ 267 
$ 0 
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Statement Consolidated Statements Of Shareholders Equity [Abstract]
 
 
Change in year, before reclassification from AOCI, net of income tax benefit(expense)
$ (102)
$ (232)
Income tax benefit (expense) from reclassification of unrealized gains
(6)
(1)
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit
(108)
(233)
Cumulative translation adjustment, Change in period, income tax(expense) benefit
(3)
(35)
Net income
1,093 
439 
Pension liability adjustment, Change in period, income tax (expense) benefit
$ (4)
$ (1)
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities
 
 
Net income
$ 1,093 
$ 439 
Adjustments to reconcile net income to net cash flows from operating activities
 
 
Net realized (gains) losses
7 
394 
Amortization of premiums/discounts on fixed maturities
184 
174 
Amortization of UPR related to the Chubb Corp acquisition
0 
570 
Deferred income taxes
(127)
(42)
Unpaid losses and loss expenses
(154)
(72)
Unearned premiums
17 
(616)
Future policy benefits
40 
28 
Insurance and reinsurance balances payable
252 
(15)
Accounts payable, accrued expenses, and other liabilities
(491)
(34)
Income taxes payable
191 
143 
Insurance and reinsurance balances receivable
30 
601 
Reinsurance recoverable on losses and loss expenses
(122)
194 
Reinsurance recoverable on policy benefits
(5)
3 
Deferred policy acquisition costs
(59)
(480)
Prepaid reinsurance premiums
(81)
14 
Other
238 
(281)
Net cash flows from operating activities
1,013 
1,020 
Cash flows from investing activities
 
 
Purchases of fixed maturities available for sale
(6,250)
(8,104)
Purchases of fixed maturities held to maturity
(157)
(77)
Purchases of equity securities
(37)
(33)
Sales of fixed maturities available for sale
3,395 
6,329 
Sales of equity securities
46 
761 
Maturities and redemptions of fixed maturities available for sale
2,543 
1,553 
Maturities and redemptions of fixed maturities held to maturity
240 
249 
Net change in short-term investments
232 
11,932 
Net derivative instruments settlements
(89)
(22)
Acquisition of subsidiaries (net of cash acquired of nil and $57)
0 
(14,262)
Other
17 
59 
Net cash flows used for investing activities
(60)
(1,615)
Cash flows from financing activities
 
 
Dividends paid on Common Shares
(324)
(218)
Common Shares repurchased
(128)
0 
Repayment of long-term debt
(500)
0 
Proceeds from issuance of repurchase agreements
753 
853 
Repayment of repurchase agreements
(752)
(853)
Proceeds from share-based compensation plans
42 
51 
Policyholder contract deposits
109 
118 
Policyholder contract withdrawals
(58)
(49)
Other
0 
(4)
Net cash flows used for financing activities
(858)
(102)
Effect of foreign currency rate changes on cash and cash equivalents
(17)
13 
Net (decrease) increase in cash
78 
(684)
Cash – beginning of period
985 1 2
1,775 3
Cash – end of period
1,063 2 4
1,091 3
Supplemental cash flow information
 
 
Taxes paid
54 
106 
Interest paid
$ 75 
$ 71 
Consolidated Statements of Cash Flows (Parentheticals) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Statement of Cash Flows [Abstract]
 
 
Cash Acquired from Acquisition
$ 0 
$ 57 
General
General
General

a) Basis of presentation

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Chubb operates through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 10 for additional information.

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

The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2016 Form 10-K.

b) Goodwill
During the three months ended March 31, 2017, Goodwill increased $55 million, reflecting the impact of foreign exchange.

c) Debt
In February 2017, Chubb INA Holdings Inc.’s $500 million of 5.7 percent senior notes matured and were fully paid. In March 2017, we reclassified $300 million of 5.8 percent senior notes, due to mature in March 2018, from Long-term debt to Short-term debt in the Consolidated balance sheets. Effective April 15, 2017, the interest rate on our $1.0 billion of unsecured junior subordinated capital securities converted to a floating rate, equal to the three-month LIBOR plus 2.25 percentage points, or approximately 3.41 percent on the conversion date. Previously, these capital securities carried interest at a rate of 6.375 percent. The scheduled maturity date for these securities is April 15, 2037.

d) Accounting guidance adopted in 2017

Stock Compensation
Effective January 2017, we prospectively adopted new guidance on stock compensation which requires recognition of the excess tax benefits or deficiencies of share-based compensation awards to employees through net income rather than through additional paid in capital. The calculation of the excess tax benefits or deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the Consolidated statements of operations. For the three months ended March 31, 2017, the excess tax benefit recorded to Income tax expense on the Consolidated statement of operations was $25 million. Additionally, the guidance allows for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We elected to retain our current accounting for compensation expense using a forfeiture estimation process.
e) Accounting guidance not yet adopted

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

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB issued guidance that affects the recognition, measurement, presentation, and disclosure of financial instruments. The guidance requires equity investments to be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) and an assessment of a valuation allowance on deferred tax assets related to unrealized losses of available for sale (AFS) debt securities in combination with other deferred tax assets. The standard will be 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 debt security other-than-temporary impairment model by requiring an estimate of the expected credit loss (ECL) only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a potential credit loss exists. The AFS debt security model will also require the use of a valuation allowance as compared to the current practice of writing down the asset.

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

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

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

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

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

The following table summarizes the results of the acquired Chubb Corp operations from January 14, 2016 to March 31, 2016 included within our 2016 Consolidated statement of operations:
(in millions of U.S. dollars)
January 14, 2016 to March 31, 2016

Total revenues
$
2,487

Net income
$
255



The following table provides supplemental unaudited pro forma consolidated information for the three months ended March 31, 2016, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
Three Months Ended
 
(in millions of U.S. dollars, except per share data)
March 31, 2016

Total revenues
$
7,322

Net income
$
534

Earnings per share
 
Basic earnings per share
$
1.14

Diluted earnings per share
$
1.14

Investments
Investments
Investments

a) Fixed maturities
 
March 31, 2017
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,900

 
$
34

 
$
(35
)
 
$
2,899

 
$
—

Foreign
20,795

 
651

 
(79
)
 
21,367

 
(3
)
Corporate securities
24,372

 
603

 
(133
)
 
24,842

 
(8
)
Mortgage-backed securities
14,217

 
127

 
(198
)
 
14,146

 
(1
)
States, municipalities, and political subdivisions
17,673

 
81

 
(202
)
 
17,552

 
—

 
$
79,957

 
$
1,496

 
$
(647
)
 
$
80,806

 
$
(12
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
601

 
$
10

 
$
(3
)
 
$
608

 
$
—

Foreign
625

 
27

 
(1
)
 
651

 
—

Corporate securities
2,710

 
50

 
(20
)
 
2,740

 
—

Mortgage-backed securities
1,319

 
35

 
—

 
1,354

 
—

States, municipalities, and political subdivisions
5,264

 
37

 
(50
)
 
5,251

 
—

 
$
10,519

 
$
159

 
$
(74
)
 
$
10,604

 
$
—


December 31, 2016
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

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

 
$
32

 
$
(45
)
 
$
2,870

 
$
—

Foreign
20,929

 
636

 
(125
)
 
21,440

 
(5
)
Corporate securities
23,736

 
580

 
(167
)
 
24,149

 
(8
)
Mortgage-backed securities
14,066

 
135

 
(194
)
 
14,007

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

 
72

 
(345
)
 
17,649

 
—

 
$
79,536

 
$
1,455

 
$
(876
)
 
$
80,115

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

 
$
9

 
$
(3
)
 
$
661

 
$
—

Foreign
640

 
28

 
(1
)
 
667

 
—

Corporate securities
2,771

 
50

 
(26
)
 
2,795

 
—

Mortgage-backed securities
1,393

 
35

 
—

 
1,428

 
—

States, municipalities, and political subdivisions
5,185

 
26

 
(92
)
 
5,119

 
—

 
$
10,644

 
$
148

 
$
(122
)
 
$
10,670

 
$
—



As discussed in Note 3 c), if a credit loss is incurred on an impaired fixed maturity, an OTTI is considered to have occurred and the portion of the impairment not related to credit losses (non-credit OTTI) is recognized in OCI. Included in the “OTTI Recognized in AOCI” columns above are the cumulative amounts of non-credit OTTI recognized in OCI adjusted for subsequent sales, maturities, and redemptions. OTTI recognized in AOCI does not include the impact of subsequent changes in fair value of the related securities. In periods subsequent to a recognition of OTTI in OCI, changes in the fair value of the related fixed maturities are reflected in Net unrealized appreciation on investments in the Consolidated statement of shareholders’ equity. For the three months ended March 31, 2017 and 2016, nil and $23 million, respectively, of net unrealized appreciation related to such securities is included in OCI. At both March 31, 2017 and December 31, 2016, AOCI included cumulative net unrealized appreciation of $10 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-backed securities (TBAs) held (refer to Note 6 c) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 82 percent and 81 percent of the total mortgage-backed securities at March 31, 2017 and December 31, 2016, respectively, are represented by investments in U.S. government agency bonds. The remainder of the mortgage exposure consists of collateralized mortgage obligations and non-government mortgage-backed securities, the majority of which provide a planned structure for principal and interest payments and carry a rating of AAA by the major credit rating agencies.

The following table presents fixed maturities by contractual maturity:
 
 
 
March 31

 
 
 
December 31

 
 
 
2017

 
 
 
2016

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

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
3,828

 
$
3,851

 
$
3,892

 
$
3,913

Due after 1 year through 5 years
23,950

 
24,413

 
24,027

 
24,429

Due after 5 years through 10 years
27,693

 
27,955

 
27,262

 
27,379

Due after 10 years
10,269

 
10,441

 
10,289

 
10,387

 
65,740

 
66,660

 
65,470

 
66,108

Mortgage-backed securities
14,217

 
14,146

 
14,066

 
14,007

 
$
79,957

 
$
80,806

 
$
79,536

 
$
80,115

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
481

 
$
486

 
$
430

 
$
435

Due after 1 year through 5 years
2,648

 
2,695

 
2,646

 
2,691

Due after 5 years through 10 years
2,973

 
2,980

 
2,969

 
2,944

Due after 10 years
3,098

 
3,089

 
3,206

 
3,172

 
9,200

 
9,250

 
9,251

 
9,242

Mortgage-backed securities
1,319

 
1,354

 
1,393

 
1,428

 
$
10,519

 
$
10,604

 
$
10,644

 
$
10,670



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

b) Equity securities

March 31


December 31

(in millions of U.S. dollars)
2017


2016

Cost
$
699

 
$
706

Gross unrealized appreciation
144

 
129

Gross unrealized depreciation
(8
)
 
(21
)
Fair value
$
835

 
$
814



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

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

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

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

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

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

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

For the three months ended March 31, 2017 and 2016, credit losses recognized in Net income for corporate securities were $1 million and $17 million, respectively.

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

For both the three months ended March 31, 2017 and 2016, there were no credit losses recognized in Net income for mortgage-backed securities.
The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary”:
 
Three Months Ended
 
 
March 31
 
(in millions of U.S. dollars)
2017

 
2016

Fixed maturities:
 
 
 
OTTI on fixed maturities, gross
$
(6
)
 
$
(67
)
OTTI on fixed maturities recognized in OCI (pre-tax)
—

 
8

OTTI on fixed maturities, net
(6
)
 
(59
)
Gross realized gains excluding OTTI
34

 
65

Gross realized losses excluding OTTI
(40
)
 
(196
)
Total fixed maturities
(12
)
 
(190
)
Equity securities:
 
 
 
OTTI on equity securities
(5
)
 
(1
)
Gross realized gains excluding OTTI
9

 
40

Gross realized losses excluding OTTI
—

 
(1
)
Total equity securities
4

 
38

OTTI on other investments
(8
)
 
(3
)
Foreign exchange gains (losses)
(19
)
 
39

Investment and embedded derivative instruments
6

 
(39
)
Fair value adjustments on insurance derivative
93

 
(228
)
S&P put options and futures
(74
)
 
(15
)
Other derivative instruments
2

 
(2
)
Other
1

 
6

Net realized gains (losses)
$
(7
)
 
$
(394
)

 
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
 
 
March 31
 
(in millions of U.S. dollars)
2017

 
2016

Balance of credit losses related to securities still held – beginning of period
$
35

 
$
53

Additions where no OTTI was previously recorded
—

 
11

Additions where an OTTI was previously recorded
1

 
6

Reductions for securities sold during the period
(4
)
 
(13
)
Balance of credit losses related to securities still held – end of period
$
32

 
$
57



d) Gross unrealized loss
At March 31, 2017, there were 9,408 fixed maturities out of a total of 31,098 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $6 million. There were 70 equity securities out of a total of 325 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $1 million. Fixed maturities in an unrealized loss position at March 31, 2017, comprised both investment grade and below investment grade securities for which fair value declined primarily due to widening credit spreads since the date of purchase.

The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
March 31, 2017
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
2,011

 
$
(38
)
 
$
—

 
$
—

 
$
2,011

 
$
(38
)
Foreign
4,428

 
(59
)
 
684

 
(21
)
 
5,112

 
(80
)
Corporate securities
6,139

 
(121
)
 
491

 
(32
)
 
6,630

 
(153
)
Mortgage-backed securities
8,735

 
(195
)
 
131

 
(3
)
 
8,866

 
(198
)
States, municipalities, and political subdivisions
16,731

 
(248
)
 
123

 
(4
)
 
16,854

 
(252
)
Total fixed maturities
38,044

 
(661
)
 
1,429

 
(60
)
 
39,473

 
(721
)
Equity securities
150

 
(8
)
 
—

 
—

 
150

 
(8
)
Other investments
84

 
(9
)
 
—

 
—

 
84

 
(9
)
Total
$
38,278

 
$
(678
)
 
$
1,429

 
$
(60
)
 
$
39,707

 
$
(738
)
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2016
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

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

 
$
(48
)
 
$
—

 
$
—

 
$
2,216

 
$
(48
)
Foreign
5,918

 
(99
)
 
386

 
(27
)
 
6,304

 
(126
)
Corporate securities
7,021

 
(149
)
 
641

 
(44
)
 
7,662

 
(193
)
Mortgage-backed securities
8,638

 
(189
)
 
234

 
(5
)
 
8,872

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

 
(435
)
 
49

 
(2
)
 
19,497

 
(437
)
Total fixed maturities
43,241

 
(920
)
 
1,310

 
(78
)
 
44,551

 
(998
)
Equity securities
199

 
(21
)
 
—

 
—

 
199

 
(21
)
Other investments
201

 
(18
)
 
—

 
—

 
201

 
(18
)
Total
$
43,641

 
$
(959
)
 
$
1,310

 
$
(78
)
 
$
44,951

 
$
(1,037
)


e) Restricted assets
Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. Chubb is also required to restrict assets pledged under repurchase agreements, which represent Chubb's agreement to sell securities and repurchase them at a future date for a predetermined price. We also use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We also have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets at March 31, 2017 and December 31, 2016 are investments, primarily fixed maturities, totaling $20.6 billion and $20.1 billion, respectively, and cash of $97 million and $103 million, respectively.
The following table presents the components of restricted assets:
 
March 31

 
December 31

(in millions of U.S. dollars)
2017

 
2016

Trust funds
$
14,359

 
$
13,880

Deposits with U.S. regulatory authorities
2,356

 
2,203

Deposits with non-U.S. regulatory authorities
2,192

 
2,191

Assets pledged under repurchase agreements
1,453

 
1,461

Other pledged assets
366

 
435

 
$
20,726

 
$
20,170

Fair value measurements
Fair value measurements
Fair value measurements

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

The three levels of the hierarchy are as follows:

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

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

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

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

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

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

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

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

Investment derivative instruments
Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps 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 designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in reserves for our guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) reinsurance business. Our position in exchange-traded equity futures contracts is classified within Level 1. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. Other derivative instruments based on unobservable inputs are classified within Level 3. Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

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

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

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

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

The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established in line with data received from other ceding companies adjusted, as appropriate, with industry estimates. The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities. Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3. For the three months ended March 31, 2017 and 2016, 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 2016 Form 10-K.

Financial instruments measured at fair value on a recurring basis, by valuation hierarchy
March 31, 2017
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,222

 
$
677

 
$
—

 
$
2,899

Foreign
—

 
21,287

 
80

 
21,367

Corporate securities
—

 
24,105

 
737

 
24,842

Mortgage-backed securities
—

 
14,101

 
45

 
14,146

States, municipalities, and political subdivisions
—

 
17,552

 
—

 
17,552

 
2,222

 
77,722

 
862

 
80,806

Equity securities
794

 
—

 
41

 
835

Short-term investments
1,548

 
1,211

 
21

 
2,780

Other investments (1)
425

 
280

 
232

 
937

Securities lending collateral
—

 
1,071

 
—

 
1,071

Investment derivative instruments
15

 
—

 
—

 
15

Other derivative instruments
8

 
—

 
—

 
8

Separate account assets
1,970

 
97

 
—

 
2,067

Total assets measured at fair value (1)
$
6,982

 
$
80,381

 
$
1,156

 
$
88,519

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
30

 
$
—

 
$
—

 
$
30

Other derivative instruments
—

 
—

 
11

 
11

GLB (2)
—

 
—

 
466

 
466

Total liabilities measured at fair value
$
30

 
$
—

 
$
477

 
$
507

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,594 million and other investments of $20 million at March 31, 2017 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets.
 
December 31, 2016
Level 1

 
Level 2

 
Level 3

 
Total

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

 
$
695

 
$
—

 
$
2,870

Foreign
—

 
21,366

 
74

 
21,440

Corporate securities
—

 
23,468

 
681

 
24,149

Mortgage-backed securities
—

 
13,962

 
45

 
14,007

States, municipalities, and political subdivisions
—

 
17,649

 
—

 
17,649

 
2,175

 
77,140

 
800

 
80,115

Equity securities
773

 
—

 
41

 
814

Short-term investments
1,757

 
1,220

 
25

 
3,002

Other investments (1)
384

 
259

 
225

 
868

Securities lending collateral
—

 
1,092

 
—

 
1,092

Investment derivative instruments
31

 
—

 
—

 
31

Other derivative instruments
3

 
—

 
—

 
3

Separate account assets
1,784

 
95

 
—

 
1,879

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

 
$
79,806

 
$
1,091

 
$
87,804

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
54

 
$
—

 
$
—

 
$
54

Other derivative instruments
—

 
—

 
13

 
13

GLB (2)
—

 
—

 
559

 
559

Total liabilities measured at fair value
$
54

 
$
—

 
$
572

 
$
626


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

There were no transfers of financial instruments between Level 1 and Level 2 for both the three months ended March 31, 2017 and 2016.

Fair value of alternative investments
Alternative investments include investment funds, limited partnerships, and partially-owned investment companies measured at fair value using NAV as a practical expedient. The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:
 
 
 
 
 
March 31

 
 
 
December 31

 
Expected
Liquidation
Period of Underlying Assets
 
 
 
2017

 
 
 
2016

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

 
Maximum
Future Funding
Commitments

 
Fair
Value

 
Maximum
Future Funding
Commitments

Financial
5 to 9 Years
 
$
548

 
$
398

 
$
548

 
$
428

Real Assets
3 to 7 Years
 
612

 
186

 
536

 
230

Distressed
5 to 9 Years
 
350

 
179

 
485

 
179

Private Credit
3 to 7 Years
 
244

 
248

 
236

 
259

Traditional
3 to 9 Years
 
1,563

 
870

 
1,550

 
930

Vintage
1 to 2 Years
 
18

 
14

 
21

 
14

Investment funds
Not Applicable
 
259

 
—

 
251

 
—

 
 
 
$
3,594

 
$
1,895

 
$
3,627

 
$
2,040



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

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

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

The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
(in millions of U.S. dollars, except for percentages)
Fair Value
 
 
Valuation
Technique
 
Significant
Unobservable Inputs
 
Ranges
March 31, 2017

 
December 31, 2016

 
 
 
GLB (1)
$
466

 
$
559

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

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

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

March 31, 2017
Foreign

 
Corporate
securities

 
MBS

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

 
$
681

 
$
45

 
$
41

$
25

$
225

 
$
13

$
559

Transfers into Level 3
—

 
29

 
—

 
—

—

—

 
—

—

Transfers out of Level 3
—

 
(54
)
 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
(1
)
 
(8
)
 
—

 
—

—

4

 
—

—

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

 
—

—

—

 
(2
)
(93
)
Purchases
14

 
156

 
1

 
—

7

8

 
—

—

Sales
(3
)
 
(27
)
 
(1
)
 
—

—

—

 
—

—

Settlements
(3
)
 
(39
)
 
—

 
—

(11
)
(4
)
 
—

—

Balance – end of period
$
80

 
$
737

 
$
45

 
$
41

$
21

$
233

 
$
11

$
466

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

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
(2
)
$
(93
)
(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 $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively.

  
 
Assets
 
 
 
 
Liabilities

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

 
Other
investments

 
Other derivative instruments

 
GLB(1)

March 31, 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
 
6

 
16

 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
 
(2
)
 
—

 
—

 
—

 
—

 
—

 
—

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

 
2

 
—

 
—

 
—

 
—

 
—

Net Realized Gains/Losses
 
(5
)
 
(6
)
 
—

 
—

 
—

 
2

 
230

Purchases (2)
 
5

 
93

 
—

 
13

 
6

 
2

 
—

Sales
 
(1
)
 
(14
)
 
(5
)
 
—

 
—

 
—

 
—

Settlements
 
(4
)
 
(4
)
 
—

 
—

 
(7
)
 
—

 
—

Balance – end of period
 
$
62

 
$
261

 
$
48

 
$
29

 
$
211

 
$
10

 
$
839

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
(4
)
 
$
(7
)
 
$
—

 
$
—

 
$
—

 
$
2

 
$
230

(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 $1.1 billion at March 31, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $839 million and $609 million, respectively.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

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

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

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

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

The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
March 31, 2017
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
518

 
$
90

 
$
—

 
$
608

 
$
601

Foreign
—

 
651

 
—

 
651

 
625

Corporate securities
—

 
2,728

 
12

 
2,740

 
2,710

Mortgage-backed securities
—

 
1,354

 
—

 
1,354

 
1,319

States, municipalities, and political subdivisions
—

 
5,251

 
—

 
5,251

 
5,264

Total assets
$
518

 
$
10,074

 
$
12

 
$
10,604

 
$
10,519

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,404

 
$
—

 
$
1,404

 
$
1,404

Short-term debt
—

 
312

 
—

 
312

 
300

Long-term debt
—

 
12,757

 
—

 
12,757

 
12,300

Trust preferred securities
—

 
458

 
—

 
458

 
308

Total liabilities
$
—

 
$
14,931

 
$
—

 
$
14,931

 
$
14,312


December 31, 2016
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

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

 
$
106

 
$
—

 
$
661

 
$
655

Foreign
—

 
667

 
—

 
667

 
640

Corporate securities
—

 
2,782

 
13

 
2,795

 
2,771

Mortgage-backed securities
—

 
1,428

 
—

 
1,428

 
1,393

States, municipalities, and political subdivisions
—

 
5,119

 
—

 
5,119

 
5,185

Total assets
$
555


$
10,102


$
13


$
10,670


$
10,644

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,403

 
$
—

 
$
1,403

 
$
1,403

Short-term debt
—

 
503

 
—

 
503

 
500

Long-term debt
—

 
12,998

 
—

 
12,998

 
12,610

Trust preferred securities
—

 
456

 
—

 
456

 
308

Total liabilities
$
—

 
$
15,360

 
$
—

 
$
15,360

 
$
14,821

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

The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
 
Three Months Ended March 31
 
(in millions of U.S. dollars)
2017
 
 
2016

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

 
$
37,303

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

 
26,562

Acquisition of subsidiaries
 
—

 
21,363

Total
 
47,832

 
47,925

Net losses and loss expenses incurred in respect of losses occurring in:
 
 
 
 
Current year
 
4,078

 
3,965

Prior years (2)
 
(289
)
 
(291
)
Total
 
3,789

 
3,674

Net losses and loss expenses paid in respect of losses occurring in:
 
 
 
 
Current year
 
798

 
586

Prior years
 
3,109

 
2,963

Total
 
3,907

 
3,549

Foreign currency revaluation and other
 
54

 
29

Net unpaid losses and loss expenses – end of period
 
47,768

 
48,079

Reinsurance recoverable on unpaid losses (1)
 
12,811

 
12,127

Gross unpaid losses and loss expenses – end of period
 
$
60,579

 
$
60,206

(1) Net of provision for uncollectible reinsurance.
 
 
(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums.
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees
Commitments, contingencies, and guarantees

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

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

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

Under reinsurance programs covering GLBs, Chubb assumes the risk of GLBs, including GMIB and GMAB, associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder’s account value is less than a guaranteed minimum value. The GLB reinsurance product meets the definition of a derivative instrument. Benefit reserves in respect of GLBs are classified as Future policy benefits (FPB) while the fair value derivative adjustment is classified within AP. Chubb also generally maintains positions in exchange-traded equity futures contracts on equity market indices to limit equity exposure in the GMDB and GLB blocks of business.

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

The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments:
 
 
 
 
 
March 31, 2017
 
 
 
 
December 31, 2016
 
 
Consolidated
Balance Sheet
Location
 
Fair Value
 
 
Notional
Value/
Payment
Provision

 
Fair Value
 
 
Notional
Value/
Payment
Provision

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

 
Derivative (Liability)

 
 
Derivative Asset

 
Derivative (Liability)

 
Investment and embedded derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
OA / (AP)
 
$
12

 
$
(26
)
 
$
2,303

 
$
25

 
$
(50
)
 
$
2,220

Cross-currency swaps
OA / (AP)
 
—

 
—

 
95

 
—

 
—

 
95

Options/Futures contracts on notes and bonds
OA / (AP)
 
3

 
(4
)
 
834

 
6

 
(4
)
 
2,344

Convertible securities (1)
FM AFS / ES
 
2

 
—

 
7

 
2

 
—

 
7

 
 
 
$
17

 
$
(30
)
 
$
3,239

 
$
33

 
$
(54
)
 
$
4,666

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

 
$
—

 
$
1,391

 
$
1

 
$
—

 
$
1,316

Other
OA / (AP)
 
4

 
(11
)
 
254

 
2

 
(13
)
 
214

 
 
 
$
8

 
$
(11
)
 
$
1,645

 
$
3

 
$
(13
)
 
$
1,530

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(774
)
 
$
1,186

 
$
—

 
$
(853
)
 
$
1,264


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

At March 31, 2017 and December 31, 2016, derivative liabilities of $1 million and $10 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement. 

b) Secured borrowings
Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. The securities lending collateral can only be drawn down by Chubb in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the Consolidated balance sheets.

Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, Chubb will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that Chubb may not be able to renew outstanding borrowings with a new term or with an existing counterparty due to market conditions including a decrease in demand as well as more restrictive terms from banks due to increased regulatory and capital constraints. Should this condition occur, Chubb may seek alternative borrowing sources or reduce borrowings. Additionally, increased margins and collateral requirements due to market conditions would increase our restricted assets as we are required to provide additional collateral to support the transaction.
The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:
 
 
Remaining contractual maturity
 
 
 
March 31

 
December 31

 
 
2017

 
2016

(in millions of U.S. dollars)
 
Overnight and Continuous
 
Collateral held under securities lending agreements:
 
 
 
 
Cash
 
$
570

 
$
423

U.S. Treasury and agency
 
22

 
54

Foreign
 
233

 
578

Corporate securities
 
—

 
37

Mortgage-backed securities
 
33

 
—

Equity securities
 
213

 
—

 
 
$
1,071

 
$
1,092

Gross amount of recognized liability for securities lending payable
 
$
1,072

 
$
1,093

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

At March 31, 2017 and December 31, 2016, our repurchase agreement obligations of $1,404 million and $1,403 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.  

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

 
Greater than
90 Days

 
Total

 
Up to
30 Days

 
Greater than
90 Days

 
Total

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

 
$
—

 
$
—

 
$
—

 
$
1

 
$
1

U.S. Treasury and agency
9

 
236

 
245

 
230

 
10

 
240

Mortgage-backed securities
360

 
848

 
1,208

 
339

 
881

 
1,220

 
$
369

 
$
1,084

 
$
1,453

 
$
569

 
$
892

 
$
1,461

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
$
1,404

 
 
 
 
 
$
1,403

Difference (1)
 
 
 
 
$
49

 
 
 
 
 
$
58


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


The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
 
Three Months Ended
 
 
March 31
 
(in millions of U.S. dollars)
2017

 
2016

Investment and embedded derivative instruments
 
 
 
Foreign currency forward contracts
$
14

 
$
(10
)
All other futures contracts and options
(8
)
 
(34
)
Convertible securities (1)
—

 
5

Total investment and embedded derivative instruments
$
6

 
$
(39
)
GLB and other derivative instruments
 
 
 
GLB (2)
$
93

 
$
(228
)
Futures contracts on equities (3)
(74
)
 
(15
)
Other
2

 
(2
)
Total GLB and other derivative instruments
$
21

 
$
(245
)
 
$
27

 
$
(284
)
(1) 
Includes embedded derivatives.
(2) 
Excludes foreign exchange gains (losses) related to GLB.
(3) 
Related to GMDB and GLB blocks of business.

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

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

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

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

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

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

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

Other
Included within Other are derivatives intended to reduce potential losses which may arise from certain exposures in our insurance business.  The economic benefit provided by these derivatives is similar to purchased reinsurance.  For example, Chubb may enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices. 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 March 31, 2017, we have commitments to purchase fixed income securities of $603 million over the next several years. In April 2017, we increased these commitments by $250 million, bringing our total commitments to $853 million.

e) Other investments
At March 31, 2017, included in Other investments in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.3 billion. In connection with these investments, we have commitments that may require funding of up to $1.9 billion over the next several years.

f) Taxation
At March 31, 2017, $18 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 and the closing of tax statute limitations. With few exceptions, Chubb is no longer subject to state and local or non-U.S. income tax examinations for years before 2009.

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

All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing consolidated financial statements. Under Swiss corporate law, dividends, including distributions through a reduction in par value (par value reduction) or from legal reserves, must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. At March 31, 2017, our Common Shares had a par value of CHF 24.15 per share.

At our May 2016 and 2015 annual general meetings, our shareholders approved an annual dividend for the following year of up to $2.76 per share and $2.68 per share, respectively, which were paid in four quarterly installments of $0.69 per share and $0.67 per share, respectively, at dates determined by the Board of Directors (Board) after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

Dividend distributions per Common Share for the three months ended March 31, 2017 and 2016 were $0.69 (CHF 0.69) and $0.67 (CHF 0.66), per Common Share, respectively.

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 March 31, 2017, 12,560,845 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans.

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

Repurchases of Chubb's Common Shares conducted in a series of open market transactions from January 1, 2017 through May 3, 2017 under the Board authorization are as follows:
(in millions of U.S. dollars, except share data)
Three Months Ended
March 31, 2017

 
April 1, 2017
through
May 3, 2017

 
Number of shares repurchased
1,036,064

 
664,301

Cost of shares repurchased
$
140

 
$
91

Repurchase authorization remaining at end of period
$
860

 
$
769

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

The Chubb Limited 2016 Long-Term Incentive Plan (the 2016 LTIP) permits grants of incentive and non-qualified stock options; restricted stock and restricted stock units; and performance-based restricted stock awards. The incentive and non-qualified stock options are granted principally at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term and typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 23, 2017, Chubb granted 2,065,620 stock options with a weighted-average grant date fair value of $22.97 each estimated using the Black-Scholes option pricing model. The service-based restricted stock and restricted stock units are generally granted with a 4-year vesting period, based on a graded vesting schedule.

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

Chubb's restricted stock is granted at market close price on the grant date. On February 23, 2017, Chubb granted 1,105,118 service-based restricted stock awards, 326,272 service-based restricted stock units, and 202,251 performance-based stock awards to employees and officers with a grant date fair value of $139.01 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting.
Postretirement benefits Postretirement benefits
Compensation and Employee Benefit Plans [Text Block]
Postretirement benefits

The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows:
 
Three Months Ended March 31
 
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

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

 
$
4

 
$
20

 
$
—

 
$
—

 
$
—

Interest cost
26

 
7

 
33

 
1

 
—

 
1

Expected return on plan assets
(47
)
 
(10
)
 
(57
)
 
(1
)
 
—

 
(1
)
Amortization of prior service cost
—

 
—

 
—

 
(23
)
 
—

 
(23
)
Net periodic (benefit) cost
$
(5
)
 
$
1

 
$
(4
)
 
$
(23
)
 
$
—

 
$
(23
)
2016
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
17

 
$
5

 
$
22

 
$
2

 
$
—

 
$
2

Interest cost
27

 
8

 
35

 
5

 
—

 
5

Expected return on plan assets
(37
)
 
(10
)
 
(47
)
 
(2
)
 
—

 
(2
)
Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

Net periodic cost
$
7

 
$
4

 
$
11

 
$
5

 
$
—

 
$
5

Segment information
Segment information
Segment information

Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance.

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

For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main 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, other (income) expense, and amortization of purchased intangibles.

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 March 31, 2017, Life Insurance underwriting income of $64 million includes Net investment income of $75 million and gains from fair value changes in separate account assets of $30 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
 
 
 
 
 
 
March 31, 2017
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
2,742

 
$
984

 
$
61

 
$
2,200

 
$
199

 
$
524

 
$
—

 
$
6,710

Net premiums earned
3,041

 
1,086

 
14

 
1,936

 
189

 
506

 
—

 
6,772

Losses and loss expenses
1,860

 
633

 
(73
)
 
1,071

 
94

 
193

 
11

 
3,789

Policy benefits
—

 
—

 
—

 
—

 
—

 
168

 
—

 
168

Policy acquisition costs
487

 
217

 
(1
)
 
529

 
51

 
114

 
—

 
1,397

Administrative expenses
231

 
65

 
(5
)
 
245

 
10

 
72

 
58

 
676

Underwriting income (loss)
463

 
171

 
93

 
91

 
34

 
(41
)
 
(69
)
 
742

Net investment income (loss)
478

 
55

 
6

 
148

 
62

 
75

 
(79
)
 
745

Other (income) expense
4

 
1

 
—

 
(1
)
 
—

 
(29
)
 
(45
)
 
(70
)
Amortization expense of purchased intangibles
—

 
3

 
7

 
11

 
—

 
1

 
42

 
64

Segment income (loss)
$
937

 
$
222

 
$
92

 
$
229

 
$
96

 
$
62

 
$
(145
)
 
$
1,493

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(7
)
 
(7
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
154

 
154

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
111

 
111

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
128

 
128

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(545
)
 
$
1,093


 
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
 
 
 
 
 
March 31, 2016
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
2,302

 
$
871

 
$
64

 
$
2,041

 
$
201

 
$
516

 
$
—

 
$
5,995

Net premiums earned
2,896

 
1,024

 
23

 
1,955

 
202

 
497

 
—

 
6,597

Losses and loss expenses
1,747

 
661

 
(30
)
 
1,021

 
89

 
177

 
9

 
3,674

Policy benefits
—

 
—

 
—

 
—

 
—

 
126

 
—

 
126

Policy acquisition costs
482

 
249

 
4

 
503

 
53

 
122

 
—

 
1,413

Administrative expenses
266

 
88

 
(4
)
 
263

 
14

 
72

 
73

 
772

Underwriting income (loss)
401

 
26

 
53

 
168

 
46

 
—

 
(82
)
 
612

Net investment income (loss)
426

 
47

 
5

 
146

 
67

 
67

 
(84
)
 
674

Other (income) expense
—

 
1

 
—

 
(5
)
 
(1
)
 
6

 
27

 
28

Amortization expense (benefit) of purchased intangibles
—

 
8

 
7

 
11

 
—

 
1

 
(20
)
 
7

Segment income (loss)
$
827

 
$
64

 
$
51

 
$
308

 
$
114

 
$
60

 
$
(173
)
 
$
1,251

Net realized gains (losses) including OTTI


 
 
 
 
 
 
 
 
 
 
 
(394
)
 
(394
)
Interest expense


 
 
 
 
 
 
 
 
 
 
 
146

 
146

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
148

 
148

Income tax expense


 
 
 
 
 
 
 
 
 
 
 
124

 
124

Net income (loss)


 
 
 
 
 
 
 
 
 
 
 
$
(985
)
 
$
439



Underwriting assets are reviewed in total by management for purposes of decision-making. Other than Unpaid losses and loss expenses, Reinsurance recoverables, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.
Earnings per share
Earnings per share
Earnings per share
 
Three Months Ended
 
 
March 31
 
(in millions of U.S. dollars, except share and per share data)
2017

 
2016

Numerator:
 
 
 
Net income
$
1,093

 
$
439

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Weighted-average shares outstanding
468,903,086

 
446,739,586

Denominator for diluted earnings per share:
 
 
 
Share-based compensation plans
3,828,604

 
3,270,156

Weighted-average shares outstanding and assumed conversions
472,731,690

 
450,009,742

Basic earnings per share
$
2.33

 
$
0.98

Diluted earnings per share
$
2.31

 
$
0.97

Potential anti-dilutive share conversions
969,654

 
2,074,308



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

The following tables present condensed consolidating financial information at March 31, 2017 and December 31, 2016, and for the three months ended March 31, 2017 and 2016 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Parent Guarantor and Subsidiary Issuer are presented on the equity method of accounting. The revenues and expenses and cash flows of the subsidiaries of the Subsidiary Issuer are presented in the Other Chubb Limited Subsidiaries column on a combined basis.

Condensed Consolidating Balance Sheet at March 31, 2017
(in millions of U.S. dollars)
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
25

 
$
304

 
$
99,162

 
$
—

 
$
99,491

Cash (1)
6

 
1

 
2,328

 
(1,272
)
 
1,063

Insurance and reinsurance balances receivable
—

 
—

 
10,956

 
(2,076
)
 
8,880

Reinsurance recoverable on losses and loss expenses
—

 
—

 
24,015

 
(10,246
)
 
13,769

Reinsurance recoverable on policy benefits
—

 
—

 
1,145

 
(958
)
 
187

Value of business acquired
—

 
—

 
345

 
—

 
345

Goodwill and other intangible assets
—

 
—

 
22,061

 
—

 
22,061

Investments in subsidiaries
39,156

 
50,242

 
—

 
(89,398
)
 
—

Due from subsidiaries and affiliates, net
10,396

 
—

 
—

 
(10,396
)
 
—

Other assets
4

 
519

 
18,642

 
(3,994
)
 
15,171

Total assets
$
49,587

 
$
51,066

 
$
178,654

 
$
(118,340
)
 
$
160,967

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,269

 
$
(9,690
)
 
$
60,579

Unearned premiums
—

 
—

 
18,343

 
(3,486
)
 
14,857

Future policy benefits
—

 
—

 
6,044

 
(958
)
 
5,086

Due to subsidiaries and affiliates, net
—

 
10,028

 
368

 
(10,396
)
 
—

Affiliated notional cash pooling programs (1)
—

 
1,272

 
—

 
(1,272
)
 
—

Repurchase agreements
—

 
—

 
1,404

 
—

 
1,404

Short-term debt
—

 
300

 
—

 
—

 
300

Long-term debt
—

 
12,289

 
11

 
—

 
12,300

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
363

 
1,699

 
17,987

 
(3,140
)
 
16,909

Total liabilities
363

 
25,896

 
114,426

 
(28,942
)
 
111,743

Total shareholders’ equity
49,224

 
25,170

 
64,228

 
(89,398
)
 
49,224

Total liabilities and shareholders’ equity
$
49,587

 
$
51,066

 
$
178,654

 
$
(118,340
)
 
$
160,967


(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 March 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
 

Condensed Consolidating Balance Sheet at December 31, 2016

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

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
27

 
$
485

 
$
98,582

 
$
—

 
$
99,094

Cash (1)
1

 
1

 
1,965

 
(982
)
 
985

Insurance and reinsurance balances receivable
—

 
—

 
10,498

 
(1,528
)
 
8,970

Reinsurance recoverable on losses and loss expenses
—

 
—

 
24,496

 
(10,919
)
 
13,577

Reinsurance recoverable on policy benefits
—

 
—

 
1,153

 
(971
)
 
182

Value of business acquired
—

 
—

 
355

 
—

 
355

Goodwill and other intangible assets
—

 
—

 
22,095

 
—

 
22,095

Investments in subsidiaries
38,408

 
49,509

 
—

 
(87,917
)
 
—

Due from subsidiaries and affiliates, net
10,482

 
—

 
—

 
(10,482
)
 
—

Other assets
3

 
436

 
18,442

 
(4,353
)
 
14,528

Total assets
$
48,921

 
$
50,431

 
$
177,586

 
$
(117,152
)
 
$
159,786

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,683

 
$
(10,143
)
 
$
60,540

Unearned premiums
—

 
—

 
18,538

 
(3,759
)
 
14,779

Future policy benefits
—

 
—

 
6,007

 
(971
)
 
5,036

Due to subsidiaries and affiliates, net
—

 
10,209

 
273

 
(10,482
)
 
—

Affiliated notional cash pooling programs (1)
363

 
619

 
—

 
(982
)
 
—

Repurchase agreements
—

 
—

 
1,403

 
—

 
1,403

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,599

 
11

 
—

 
12,610

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
283

 
1,582

 
17,368

 
(2,898
)
 
16,335

Total liabilities
646

 
25,817

 
114,283

 
(29,235
)
 
111,511

Total shareholders’ equity
48,275

 
24,614

 
63,303

 
(87,917
)
 
48,275

Total liabilities and shareholders’ equity
$
48,921

 
$
50,431

 
$
177,586

 
$
(117,152
)
 
$
159,786

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended March 31, 2017
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

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

 
$
—

 
$
6,710

 
$
—

 
$
6,710

Net premiums earned
—

 
—

 
6,772

 
—

 
6,772

Net investment income
—

 
3

 
742

 
—

 
745

Equity in earnings of subsidiaries
1,027

 
701

 
—

 
(1,728
)
 
—

Net realized gains (losses) including OTTI
—

 
(13
)
 
6

 
—

 
(7
)
Losses and loss expenses
—

 
—

 
3,789

 
—

 
3,789

Policy benefits
—

 
—

 
168

 
—

 
168

Policy acquisition costs and administrative expenses
18

 
14

 
2,041

 
—

 
2,073

Interest (income) expense
(84
)
 
221

 
17

 
—

 
154

Other (income) expense
(6
)
 
15

 
(79
)
 
—

 
(70
)
Amortization of purchased intangibles
—

 
—

 
64

 
—

 
64

Chubb integration expenses
—

 
49

 
62

 
—

 
111

Income tax expense (benefit)
6

 
(112
)
 
234

 
—

 
128

Net income
$
1,093

 
$
504

 
$
1,224

 
$
(1,728
)
 
$
1,093

Comprehensive income
$
1,407

 
$
791

 
$
1,538

 
$
(2,329
)
 
$
1,407



Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended March 31, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

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

 
$
—

 
$
5,995

 
$
—

 
$
5,995

Net premiums earned
—

 
—

 
6,597

 
—

 
6,597

Net investment income
1

 
4

 
669

 
—

 
674

Equity in earnings of subsidiaries
375

 
506

 
—

 
(881
)
 
—

Net realized gains (losses) including OTTI
—

 
—

 
(394
)
 
—

 
(394
)
Losses and loss expenses
—

 
—

 
3,674

 
—

 
3,674

Policy benefits
—

 
—

 
126

 
—

 
126

Policy acquisition costs and administrative expenses
17

 
36

 
2,132

 
—

 
2,185

Interest (income) expense
(80
)
 
215

 
11

 
—

 
146

Other (income) expense
(9
)
 
10

 
27

 
—

 
28

Amortization of purchased intangibles
—

 
—

 
7

 
—

 
7

Chubb integration expenses
3

 
137

 
8

 
—

 
148

Income tax expense (benefit)
6

 
(150
)
 
268

 
—

 
124

Net income
$
439

 
$
262

 
$
619

 
$
(881
)
 
$
439

Comprehensive income (loss)
$
1,541

 
$
1,056

 
$
1,721

 
$
(2,777
)
 
$
1,541



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2017
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from (used for) operating activities
$
584

 
$
(156
)
 
$
1,081

 
$
(496
)
 
$
1,013

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

 
(4
)
 
(6,246
)
 
—

 
(6,250
)
Purchases of fixed maturities held to maturity
—

 
—

 
(157
)
 
—

 
(157
)
Purchases of equity securities
—

 
—

 
(37
)
 
—

 
(37
)
Sales of fixed maturities available for sale
—

 
—

 
3,395

 
—

 
3,395

Sales of equity securities
—

 
—

 
46

 
—

 
46

Maturities and redemptions of fixed maturities available for sale
—

 
7

 
2,536

 
—

 
2,543

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
240

 
—

 
240

Net change in short-term investments
—

 
173

 
59

 
—

 
232

Net derivative instruments settlements
—

 
(2
)
 
(87
)
 
—

 
(89
)
Other
—

 
—

 
17

 
—

 
17

Net cash flows from (used for) investing activities
—

 
174

 
(234
)
 
—

 
(60
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(324
)
 
—

 
—

 
—

 
(324
)
Common Shares repurchased
—

 
—

 
(128
)
 
—

 
(128
)
Repayment of long-term debt
—

 
(500
)
 
—

 
—

 
(500
)
Proceeds from issuance of repurchase agreements
—

 
—

 
753

 
—

 
753

Repayment of repurchase agreements
—

 
—

 
(752
)
 
—

 
(752
)
Proceeds from share-based compensation plans
—

 
—

 
42

 
—

 
42

Dividend to parent company
—

 
—

 
(496
)
 
496

 
—

Advances (to) from affiliates
108

 
(171
)
 
63

 
—

 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(363
)
 
653

 
—

 
(290
)
 
—

Policyholder contract deposits
—

 
—

 
109

 
—

 
109

Policyholder contract withdrawals
—

 
—

 
(58
)
 
—

 
(58
)
Net cash flows used for financing activities
(579
)
 
(18
)
 
(467
)
 
206

 
(858
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
(17
)
 
—

 
(17
)
Net increase in cash
5

 
—

 
363

 
(290
)
 
78

Cash – beginning of period(1)
1

 
1

 
1,965

 
(982
)
 
985

Cash – end of period(1)
$
6

 
$
1

 
$
2,328

 
$
(1,272
)
 
$
1,063

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

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from operating activities
$
3,272

 
$
3,109

 
$
1,011

 
$
(6,372
)
 
$
1,020

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

 
—

 
(8,104
)
 
—

 
(8,104
)
Purchases of fixed maturities held to maturity
—

 
—

 
(77
)
 
—

 
(77
)
Purchases of equity securities
—

 
—

 
(33
)
 
—

 
(33
)
Sales of fixed maturities available for sale
—

 
—

 
6,329

 
—

 
6,329

Sales of equity securities
—

 
—

 
761

 
—

 
761

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
1,553

 
—

 
1,553

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
249

 
—

 
249

Net change in short-term investments
—

 
7,788

 
4,144

 
—

 
11,932

Net derivative instruments settlements
—

 
—

 
(22
)
 
—

 
(22
)
Acquisition of subsidiaries (net of cash acquired of $57)
—

 
(14,282
)
 
20

 
—

 
(14,262
)
Capital contribution
(2,330
)
 
—

 
(2,330
)
 
4,660

 
—

Other
—

 
—

 
59

 
—

 
59

Net cash flows from (used for) investing activities
(2,330
)
 
(6,494
)
 
2,549

 
4,660

 
(1,615
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(218
)
 
—

 
—

 
—

 
(218
)
Proceeds from issuance of repurchase agreements
—

 
—

 
853

 
—

 
853

Repayment of repurchase agreements
—

 
—

 
(853
)
 
—

 
(853
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
51

 
—

 
51

Dividend to parent company
—

 
—

 
(6,372
)
 
6,372

 
—

Advances (to) from affiliates
(362
)
 
350

 
12

 
—

 
—

Capital contribution
—

 
2,330

 
2,330

 
(4,660
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(361
)
 
710

 
—

 
(349
)
 
—

Policyholder contract deposits
—

 
—

 
118

 
—

 
118

Policyholder contract withdrawals
—

 
—

 
(49
)
 
—

 
(49
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows from (used for) financing activities
(941
)
 
3,386

 
(3,910
)
 
1,363

 
(102
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
13

 
—

 
13

Net increase (decrease) in cash
1

 
1

 
(337
)
 
(349
)
 
(684
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
2

 
$
3

 
$
2,406

 
$
(1,320
)
 
$
1,091


(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 March 31, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
General (Policies)
Basis of presentation 
a) Basis of presentation

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Chubb operates through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 10 for additional information.

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

The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2016 Form 10-K.
Accounting guidance adopted in 2017 
d) Accounting guidance adopted in 2017

Stock Compensation
Effective January 2017, we prospectively adopted new guidance on stock compensation which requires recognition of the excess tax benefits or deficiencies of share-based compensation awards to employees through net income rather than through additional paid in capital. The calculation of the excess tax benefits or deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the Consolidated statements of operations. For the three months ended March 31, 2017, the excess tax benefit recorded to Income tax expense on the Consolidated statement of operations was $25 million. Additionally, the guidance allows for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We elected to retain our current accounting for compensation expense using a forfeiture estimation process.
Accounting guidance not yet adopted 
e) Accounting guidance not yet adopted

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

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB issued guidance that affects the recognition, measurement, presentation, and disclosure of financial instruments. The guidance requires equity investments to be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) and an assessment of a valuation allowance on deferred tax assets related to unrealized losses of available for sale (AFS) debt securities in combination with other deferred tax assets. The standard will be 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 debt security other-than-temporary impairment model by requiring an estimate of the expected credit loss (ECL) only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a potential credit loss exists. The AFS debt security model will also require the use of a valuation allowance as compared to the current practice of writing down the asset.

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

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

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

Total revenues
$
2,487

Net income
$
255

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 months ended March 31, 2016, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.
Three Months Ended
 
(in millions of U.S. dollars, except per share data)
March 31, 2016

Total revenues
$
7,322

Net income
$
534

Earnings per share
 
Basic earnings per share
$
1.14

Diluted earnings per share
$
1.14

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

March 31


December 31

(in millions of U.S. dollars)
2017


2016

Cost
$
699

 
$
706

Gross unrealized appreciation
144

 
129

Gross unrealized depreciation
(8
)
 
(21
)
Fair value
$
835

 
$
814

 
March 31, 2017
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,900

 
$
34

 
$
(35
)
 
$
2,899

 
$
—

Foreign
20,795

 
651

 
(79
)
 
21,367

 
(3
)
Corporate securities
24,372

 
603

 
(133
)
 
24,842

 
(8
)
Mortgage-backed securities
14,217

 
127

 
(198
)
 
14,146

 
(1
)
States, municipalities, and political subdivisions
17,673

 
81

 
(202
)
 
17,552

 
—

 
$
79,957

 
$
1,496

 
$
(647
)
 
$
80,806

 
$
(12
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
601

 
$
10

 
$
(3
)
 
$
608

 
$
—

Foreign
625

 
27

 
(1
)
 
651

 
—

Corporate securities
2,710

 
50

 
(20
)
 
2,740

 
—

Mortgage-backed securities
1,319

 
35

 
—

 
1,354

 
—

States, municipalities, and political subdivisions
5,264

 
37

 
(50
)
 
5,251

 
—

 
$
10,519

 
$
159

 
$
(74
)
 
$
10,604

 
$
—


December 31, 2016
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

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

 
$
32

 
$
(45
)
 
$
2,870

 
$
—

Foreign
20,929

 
636

 
(125
)
 
21,440

 
(5
)
Corporate securities
23,736

 
580

 
(167
)
 
24,149

 
(8
)
Mortgage-backed securities
14,066

 
135

 
(194
)
 
14,007

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

 
72

 
(345
)
 
17,649

 
—

 
$
79,536

 
$
1,455

 
$
(876
)
 
$
80,115

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

 
$
9

 
$
(3
)
 
$
661

 
$
—

Foreign
640

 
28

 
(1
)
 
667

 
—

Corporate securities
2,771

 
50

 
(26
)
 
2,795

 
—

Mortgage-backed securities
1,393

 
35

 
—

 
1,428

 
—

States, municipalities, and political subdivisions
5,185

 
26

 
(92
)
 
5,119

 
—

 
$
10,644

 
$
148

 
$
(122
)
 
$
10,670

 
$
—

Schedule Of Amortized Cost And Fair Value Of HTM Fixed Maturities And Related OTTI Recognized In AOCI 
March 31, 2017
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,900

 
$
34

 
$
(35
)
 
$
2,899

 
$
—

Foreign
20,795

 
651

 
(79
)
 
21,367

 
(3
)
Corporate securities
24,372

 
603

 
(133
)
 
24,842

 
(8
)
Mortgage-backed securities
14,217

 
127

 
(198
)
 
14,146

 
(1
)
States, municipalities, and political subdivisions
17,673

 
81

 
(202
)
 
17,552

 
—

 
$
79,957

 
$
1,496

 
$
(647
)
 
$
80,806

 
$
(12
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
601

 
$
10

 
$
(3
)
 
$
608

 
$
—

Foreign
625

 
27

 
(1
)
 
651

 
—

Corporate securities
2,710

 
50

 
(20
)
 
2,740

 
—

Mortgage-backed securities
1,319

 
35

 
—

 
1,354

 
—

States, municipalities, and political subdivisions
5,264

 
37

 
(50
)
 
5,251

 
—

 
$
10,519

 
$
159

 
$
(74
)
 
$
10,604

 
$
—


December 31, 2016
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

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

 
$
32

 
$
(45
)
 
$
2,870

 
$
—

Foreign
20,929

 
636

 
(125
)
 
21,440

 
(5
)
Corporate securities
23,736

 
580

 
(167
)
 
24,149

 
(8
)
Mortgage-backed securities
14,066

 
135

 
(194
)
 
14,007

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

 
72

 
(345
)
 
17,649

 
—

 
$
79,536

 
$
1,455

 
$
(876
)
 
$
80,115

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

 
$
9

 
$
(3
)
 
$
661

 
$
—

Foreign
640

 
28

 
(1
)
 
667

 
—

Corporate securities
2,771

 
50

 
(26
)
 
2,795

 
—

Mortgage-backed securities
1,393

 
35

 
—

 
1,428

 
—

States, municipalities, and political subdivisions
5,185

 
26

 
(92
)
 
5,119

 
—

 
$
10,644

 
$
148

 
$
(122
)
 
$
10,670

 
$
—

Schedule Of Fixed Maturities By Contractual Maturity 
The following table presents fixed maturities by contractual maturity:
 
 
 
March 31

 
 
 
December 31

 
 
 
2017

 
 
 
2016

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

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
3,828

 
$
3,851

 
$
3,892

 
$
3,913

Due after 1 year through 5 years
23,950

 
24,413

 
24,027

 
24,429

Due after 5 years through 10 years
27,693

 
27,955

 
27,262

 
27,379

Due after 10 years
10,269

 
10,441

 
10,289

 
10,387

 
65,740

 
66,660

 
65,470

 
66,108

Mortgage-backed securities
14,217

 
14,146

 
14,066

 
14,007

 
$
79,957

 
$
80,806

 
$
79,536

 
$
80,115

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
481

 
$
486

 
$
430

 
$
435

Due after 1 year through 5 years
2,648

 
2,695

 
2,646

 
2,691

Due after 5 years through 10 years
2,973

 
2,980

 
2,969

 
2,944

Due after 10 years
3,098

 
3,089

 
3,206

 
3,172

 
9,200

 
9,250

 
9,251

 
9,242

Mortgage-backed securities
1,319

 
1,354

 
1,393

 
1,428

 
$
10,519

 
$
10,604

 
$
10,644

 
$
10,670

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
 
 
March 31
 
(in millions of U.S. dollars)
2017

 
2016

Fixed maturities:
 
 
 
OTTI on fixed maturities, gross
$
(6
)
 
$
(67
)
OTTI on fixed maturities recognized in OCI (pre-tax)
—

 
8

OTTI on fixed maturities, net
(6
)
 
(59
)
Gross realized gains excluding OTTI
34

 
65

Gross realized losses excluding OTTI
(40
)
 
(196
)
Total fixed maturities
(12
)
 
(190
)
Equity securities:
 
 
 
OTTI on equity securities
(5
)
 
(1
)
Gross realized gains excluding OTTI
9

 
40

Gross realized losses excluding OTTI
—

 
(1
)
Total equity securities
4

 
38

OTTI on other investments
(8
)
 
(3
)
Foreign exchange gains (losses)
(19
)
 
39

Investment and embedded derivative instruments
6

 
(39
)
Fair value adjustments on insurance derivative
93

 
(228
)
S&P put options and futures
(74
)
 
(15
)
Other derivative instruments
2

 
(2
)
Other
1

 
6

Net realized gains (losses)
$
(7
)
 
$
(394
)
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
 
 
March 31
 
(in millions of U.S. dollars)
2017

 
2016

Balance of credit losses related to securities still held – beginning of period
$
35

 
$
53

Additions where no OTTI was previously recorded
—

 
11

Additions where an OTTI was previously recorded
1

 
6

Reductions for securities sold during the period
(4
)
 
(13
)
Balance of credit losses related to securities still held – end of period
$
32

 
$
57

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
 
March 31, 2017
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
2,011

 
$
(38
)
 
$
—

 
$
—

 
$
2,011

 
$
(38
)
Foreign
4,428

 
(59
)
 
684

 
(21
)
 
5,112

 
(80
)
Corporate securities
6,139

 
(121
)
 
491

 
(32
)
 
6,630

 
(153
)
Mortgage-backed securities
8,735

 
(195
)
 
131

 
(3
)
 
8,866

 
(198
)
States, municipalities, and political subdivisions
16,731

 
(248
)
 
123

 
(4
)
 
16,854

 
(252
)
Total fixed maturities
38,044

 
(661
)
 
1,429

 
(60
)
 
39,473

 
(721
)
Equity securities
150

 
(8
)
 
—

 
—

 
150

 
(8
)
Other investments
84

 
(9
)
 
—

 
—

 
84

 
(9
)
Total
$
38,278

 
$
(678
)
 
$
1,429

 
$
(60
)
 
$
39,707

 
$
(738
)
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2016
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

 
Fair Value

 
Gross
Unrealized
Loss

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

 
$
(48
)
 
$
—

 
$
—

 
$
2,216

 
$
(48
)
Foreign
5,918

 
(99
)
 
386

 
(27
)
 
6,304

 
(126
)
Corporate securities
7,021

 
(149
)
 
641

 
(44
)
 
7,662

 
(193
)
Mortgage-backed securities
8,638

 
(189
)
 
234

 
(5
)
 
8,872

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

 
(435
)
 
49

 
(2
)
 
19,497

 
(437
)
Total fixed maturities
43,241

 
(920
)
 
1,310

 
(78
)
 
44,551

 
(998
)
Equity securities
199

 
(21
)
 
—

 
—

 
199

 
(21
)
Other investments
201

 
(18
)
 
—

 
—

 
201

 
(18
)
Total
$
43,641

 
$
(959
)
 
$
1,310

 
$
(78
)
 
$
44,951

 
$
(1,037
)
Schedule Of Components Of Restricted Assets 
The following table presents the components of restricted assets:
 
March 31

 
December 31

(in millions of U.S. dollars)
2017

 
2016

Trust funds
$
14,359

 
$
13,880

Deposits with U.S. regulatory authorities
2,356

 
2,203

Deposits with non-U.S. regulatory authorities
2,192

 
2,191

Assets pledged under repurchase agreements
1,453

 
1,461

Other pledged assets
366

 
435

 
$
20,726

 
$
20,170

Fair value measurements (Tables)
Financial Instruments Measured At Fair Value On A Recurring Basis 
Financial instruments measured at fair value on a recurring basis, by valuation hierarchy
March 31, 2017
Level 1

 
Level 2

 
Level 3

 
Total

(in millions of U.S. dollars)
 
 
 
Assets:
 
 
 
 
 
 
 
Fixed maturities available for sale
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,222

 
$
677

 
$
—

 
$
2,899

Foreign
—

 
21,287

 
80

 
21,367

Corporate securities
—

 
24,105

 
737

 
24,842

Mortgage-backed securities
—

 
14,101

 
45

 
14,146

States, municipalities, and political subdivisions
—

 
17,552

 
—

 
17,552

 
2,222

 
77,722

 
862

 
80,806

Equity securities
794

 
—

 
41

 
835

Short-term investments
1,548

 
1,211

 
21

 
2,780

Other investments (1)
425

 
280

 
232

 
937

Securities lending collateral
—

 
1,071

 
—

 
1,071

Investment derivative instruments
15

 
—

 
—

 
15

Other derivative instruments
8

 
—

 
—

 
8

Separate account assets
1,970

 
97

 
—

 
2,067

Total assets measured at fair value (1)
$
6,982

 
$
80,381

 
$
1,156

 
$
88,519

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
30

 
$
—

 
$
—

 
$
30

Other derivative instruments
—

 
—

 
11

 
11

GLB (2)
—

 
—

 
466

 
466

Total liabilities measured at fair value
$
30

 
$
—

 
$
477

 
$
507

(1) 
Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,594 million and other investments of $20 million at March 31, 2017 measured using NAV as a practical expedient.
(2) 
Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets.
 
December 31, 2016
Level 1

 
Level 2

 
Level 3

 
Total

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

 
$
695

 
$
—

 
$
2,870

Foreign
—

 
21,366

 
74

 
21,440

Corporate securities
—

 
23,468

 
681

 
24,149

Mortgage-backed securities
—

 
13,962

 
45

 
14,007

States, municipalities, and political subdivisions
—

 
17,649

 
—

 
17,649

 
2,175

 
77,140

 
800

 
80,115

Equity securities
773

 
—

 
41

 
814

Short-term investments
1,757

 
1,220

 
25

 
3,002

Other investments (1)
384

 
259

 
225

 
868

Securities lending collateral
—

 
1,092

 
—

 
1,092

Investment derivative instruments
31

 
—

 
—

 
31

Other derivative instruments
3

 
—

 
—

 
3

Separate account assets
1,784

 
95

 
—

 
1,879

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

 
$
79,806

 
$
1,091

 
$
87,804

Liabilities:
 
 
 
 
 
 
 
Investment derivative instruments
$
54

 
$
—

 
$
—

 
$
54

Other derivative instruments
—

 
—

 
13

 
13

GLB (2)
—

 
—

 
559

 
559

Total liabilities measured at fair value
$
54

 
$
—

 
$
572

 
$
626


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

 
 
 
December 31

 
Expected
Liquidation
Period of Underlying Assets
 
 
 
2017

 
 
 
2016

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

 
Maximum
Future Funding
Commitments

 
Fair
Value

 
Maximum
Future Funding
Commitments

Financial
5 to 9 Years
 
$
548

 
$
398

 
$
548

 
$
428

Real Assets
3 to 7 Years
 
612

 
186

 
536

 
230

Distressed
5 to 9 Years
 
350

 
179

 
485

 
179

Private Credit
3 to 7 Years
 
244

 
248

 
236

 
259

Traditional
3 to 9 Years
 
1,563

 
870

 
1,550

 
930

Vintage
1 to 2 Years
 
18

 
14

 
21

 
14

Investment funds
Not Applicable
 
259

 
—

 
251

 
—

 
 
 
$
3,594

 
$
1,895

 
$
3,627

 
$
2,040

Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations 
The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management.
(in millions of U.S. dollars, except for percentages)
Fair Value
 
 
Valuation
Technique
 
Significant
Unobservable Inputs
 
Ranges
March 31, 2017

 
December 31, 2016

 
 
 
GLB (1)
$
466

 
$
559

 
Actuarial model
 
Lapse rate
 
3% – 34%
 
 
 
 
 
 
 
Annuitization rate
 
0% – 78%
(1) 
Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] 
The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3):
 
Assets
 
 
Liabilities
 
Three Months Ended
Available-for-Sale Debt Securities
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

March 31, 2017
Foreign

 
Corporate
securities

 
MBS

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

 
$
681

 
$
45

 
$
41

$
25

$
225

 
$
13

$
559

Transfers into Level 3
—

 
29

 
—

 
—

—

—

 
—

—

Transfers out of Level 3
—

 
(54
)
 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
(1
)
 
(8
)
 
—

 
—

—

4

 
—

—

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

 
—

—

—

 
(2
)
(93
)
Purchases
14

 
156

 
1

 
—

7

8

 
—

—

Sales
(3
)
 
(27
)
 
(1
)
 
—

—

—

 
—

—

Settlements
(3
)
 
(39
)
 
—

 
—

(11
)
(4
)
 
—

—

Balance – end of period
$
80

 
$
737

 
$
45

 
$
41

$
21

$
233

 
$
11

$
466

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

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
(2
)
$
(93
)
(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 $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively.

  
 
Assets
 
 
 
 
Liabilities

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

 
Other
investments

 
Other derivative instruments

 
GLB(1)

March 31, 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
 
6

 
16

 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
 
(2
)
 
—

 
—

 
—

 
—

 
—

 
—

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

 
2

 
—

 
—

 
—

 
—

 
—

Net Realized Gains/Losses
 
(5
)
 
(6
)
 
—

 
—

 
—

 
2

 
230

Purchases (2)
 
5

 
93

 
—

 
13

 
6

 
2

 
—

Sales
 
(1
)
 
(14
)
 
(5
)
 
—

 
—

 
—

 
—

Settlements
 
(4
)
 
(4
)
 
—

 
—

 
(7
)
 
—

 
—

Balance – end of period
 
$
62

 
$
261

 
$
48

 
$
29

 
$
211

 
$
10

 
$
839

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
(4
)
 
$
(7
)
 
$
—

 
$
—

 
$
—

 
$
2

 
$
230

(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 $1.1 billion at March 31, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $839 million and $609 million, respectively.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] 
The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3):
 
Assets
 
 
Liabilities
 
Three Months Ended
Available-for-Sale Debt Securities
Equity
securities

Short-term investments

Other
investments

 
Other
derivative
instruments

GLB(1)

March 31, 2017
Foreign

 
Corporate
securities

 
MBS

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

 
$
681

 
$
45

 
$
41

$
25

$
225

 
$
13

$
559

Transfers into Level 3
—

 
29

 
—

 
—

—

—

 
—

—

Transfers out of Level 3
—

 
(54
)
 
—

 
—

—

—

 
—

—

Change in Net Unrealized Gains (Losses) included in OCI
(1
)
 
(8
)
 
—

 
—

—

4

 
—

—

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

 
—

—

—

 
(2
)
(93
)
Purchases
14

 
156

 
1

 
—

7

8

 
—

—

Sales
(3
)
 
(27
)
 
(1
)
 
—

—

—

 
—

—

Settlements
(3
)
 
(39
)
 
—

 
—

(11
)
(4
)
 
—

—

Balance – end of period
$
80

 
$
737

 
$
45

 
$
41

$
21

$
233

 
$
11

$
466

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

 
$
—

 
$
—

 
$
—

$
—

$
—

 
$
(2
)
$
(93
)
(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 $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively.

  
 
Assets
 
 
 
 
Liabilities

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

 
Other
investments

 
Other derivative instruments

 
GLB(1)

March 31, 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
 
6

 
16

 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
 
(2
)
 
—

 
—

 
—

 
—

 
—

 
—

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

 
2

 
—

 
—

 
—

 
—

 
—

Net Realized Gains/Losses
 
(5
)
 
(6
)
 
—

 
—

 
—

 
2

 
230

Purchases (2)
 
5

 
93

 
—

 
13

 
6

 
2

 
—

Sales
 
(1
)
 
(14
)
 
(5
)
 
—

 
—

 
—

 
—

Settlements
 
(4
)
 
(4
)
 
—

 
—

 
(7
)
 
—

 
—

Balance – end of period
 
$
62

 
$
261

 
$
48

 
$
29

 
$
211

 
$
10

 
$
839

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date
 
$
(4
)
 
$
(7
)
 
$
—

 
$
—

 
$
—

 
$
2

 
$
230

(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 $1.1 billion at March 31, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $839 million and $609 million, respectively.
(2) 
Includes acquired invested assets as a result of the Chubb Corp acquisition.

Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value 
The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:
March 31, 2017
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

 
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
518

 
$
90

 
$
—

 
$
608

 
$
601

Foreign
—

 
651

 
—

 
651

 
625

Corporate securities
—

 
2,728

 
12

 
2,740

 
2,710

Mortgage-backed securities
—

 
1,354

 
—

 
1,354

 
1,319

States, municipalities, and political subdivisions
—

 
5,251

 
—

 
5,251

 
5,264

Total assets
$
518

 
$
10,074

 
$
12

 
$
10,604

 
$
10,519

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,404

 
$
—

 
$
1,404

 
$
1,404

Short-term debt
—

 
312

 
—

 
312

 
300

Long-term debt
—

 
12,757

 
—

 
12,757

 
12,300

Trust preferred securities
—

 
458

 
—

 
458

 
308

Total liabilities
$
—

 
$
14,931

 
$
—

 
$
14,931

 
$
14,312


December 31, 2016
Fair Value
 
 
Carrying Value

(in millions of U.S. dollars)
Level 1

 
Level 2

 
Level 3

 
Total

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

 
$
106

 
$
—

 
$
661

 
$
655

Foreign
—

 
667

 
—

 
667

 
640

Corporate securities
—

 
2,782

 
13

 
2,795

 
2,771

Mortgage-backed securities
—

 
1,428

 
—

 
1,428

 
1,393

States, municipalities, and political subdivisions
—

 
5,119

 
—

 
5,119

 
5,185

Total assets
$
555


$
10,102


$
13


$
10,670


$
10,644

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
$
—

 
$
1,403

 
$
—

 
$
1,403

 
$
1,403

Short-term debt
—

 
503

 
—

 
503

 
500

Long-term debt
—

 
12,998

 
—

 
12,998

 
12,610

Trust preferred securities
—

 
456

 
—

 
456

 
308

Total liabilities
$
—

 
$
15,360

 
$
—

 
$
15,360

 
$
14,821

Unpaid losses and loss expenses Unpaid losses and loss expenses (Tables)
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]
The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
 
Three Months Ended March 31
 
(in millions of U.S. dollars)
2017
 
 
2016

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

 
$
37,303

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

 
26,562

Acquisition of subsidiaries
 
—

 
21,363

Total
 
47,832

 
47,925

Net losses and loss expenses incurred in respect of losses occurring in:
 
 
 
 
Current year
 
4,078

 
3,965

Prior years (2)
 
(289
)
 
(291
)
Total
 
3,789

 
3,674

Net losses and loss expenses paid in respect of losses occurring in:
 
 
 
 
Current year
 
798

 
586

Prior years
 
3,109

 
2,963

Total
 
3,907

 
3,549

Foreign currency revaluation and other
 
54

 
29

Net unpaid losses and loss expenses – end of period
 
47,768

 
48,079

Reinsurance recoverable on unpaid losses (1)
 
12,811

 
12,127

Gross unpaid losses and loss expenses – end of period
 
$
60,579

 
$
60,206

(1) Net of provision for uncollectible reinsurance.
 
 
(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums.
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:
 
 
 
 
 
March 31, 2017
 
 
 
 
December 31, 2016
 
 
Consolidated
Balance Sheet
Location
 
Fair Value
 
 
Notional
Value/
Payment
Provision

 
Fair Value
 
 
Notional
Value/
Payment
Provision

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

 
Derivative (Liability)

 
 
Derivative Asset

 
Derivative (Liability)

 
Investment and embedded derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
OA / (AP)
 
$
12

 
$
(26
)
 
$
2,303

 
$
25

 
$
(50
)
 
$
2,220

Cross-currency swaps
OA / (AP)
 
—

 
—

 
95

 
—

 
—

 
95

Options/Futures contracts on notes and bonds
OA / (AP)
 
3

 
(4
)
 
834

 
6

 
(4
)
 
2,344

Convertible securities (1)
FM AFS / ES
 
2

 
—

 
7

 
2

 
—

 
7

 
 
 
$
17

 
$
(30
)
 
$
3,239

 
$
33

 
$
(54
)
 
$
4,666

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

 
$
—

 
$
1,391

 
$
1

 
$
—

 
$
1,316

Other
OA / (AP)
 
4

 
(11
)
 
254

 
2

 
(13
)
 
214

 
 
 
$
8

 
$
(11
)
 
$
1,645

 
$
3

 
$
(13
)
 
$
1,530

GLB(3)
(AP) / (FPB)
 
$
—

 
$
(774
)
 
$
1,186

 
$
—

 
$
(853
)
 
$
1,264


(1) 
Includes fair value of embedded derivatives.
(2) 
Related to GMDB and GLB blocks of business.
(3) 
Includes both future policy benefits reserves and fair value derivative adjustment. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.
Transfer of Certain Financial Assets Accounted for as Secured Borrowings 
The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:
 
 
Remaining contractual maturity
 
 
 
March 31

 
December 31

 
 
2017

 
2016

(in millions of U.S. dollars)
 
Overnight and Continuous
 
Collateral held under securities lending agreements:
 
 
 
 
Cash
 
$
570

 
$
423

U.S. Treasury and agency
 
22

 
54

Foreign
 
233

 
578

Corporate securities
 
—

 
37

Mortgage-backed securities
 
33

 
—

Equity securities
 
213

 
—

 
 
$
1,071

 
$
1,092

Gross amount of recognized liability for securities lending payable
 
$
1,072

 
$
1,093

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

At March 31, 2017 and December 31, 2016, our repurchase agreement obligations of $1,404 million and $1,403 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.  

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

 
Greater than
90 Days

 
Total

 
Up to
30 Days

 
Greater than
90 Days

 
Total

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

 
$
—

 
$
—

 
$
—

 
$
1

 
$
1

U.S. Treasury and agency
9

 
236

 
245

 
230

 
10

 
240

Mortgage-backed securities
360

 
848

 
1,208

 
339

 
881

 
1,220

 
$
369

 
$
1,084

 
$
1,453

 
$
569

 
$
892

 
$
1,461

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
$
1,404

 
 
 
 
 
$
1,403

Difference (1)
 
 
 
 
$
49

 
 
 
 
 
$
58


Secured Borrowings Securities Lending Table Text Block [Table Text Block] 
 
Remaining contractual maturity
 
 
March 31, 2017
 
 
December 31, 2016
 
 
Up to 30 Days

 
Greater than
90 Days

 
Total

 
Up to
30 Days

 
Greater than
90 Days

 
Total

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

 
$
—

 
$
—

 
$
—

 
$
1

 
$
1

U.S. Treasury and agency
9

 
236

 
245

 
230

 
10

 
240

Mortgage-backed securities
360

 
848

 
1,208

 
339

 
881

 
1,220

 
$
369

 
$
1,084

 
$
1,453

 
$
569

 
$
892

 
$
1,461

Gross amount of recognized liabilities for repurchase agreements
 
 
 
 
$
1,404

 
 
 
 
 
$
1,403

Difference (1)
 
 
 
 
$
49

 
 
 
 
 
$
58


Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations 
The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:
 
Three Months Ended
 
 
March 31
 
(in millions of U.S. dollars)
2017

 
2016

Investment and embedded derivative instruments
 
 
 
Foreign currency forward contracts
$
14

 
$
(10
)
All other futures contracts and options
(8
)
 
(34
)
Convertible securities (1)
—

 
5

Total investment and embedded derivative instruments
$
6

 
$
(39
)
GLB and other derivative instruments
 
 
 
GLB (2)
$
93

 
$
(228
)
Futures contracts on equities (3)
(74
)
 
(15
)
Other
2

 
(2
)
Total GLB and other derivative instruments
$
21

 
$
(245
)
 
$
27

 
$
(284
)
(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)
Share Repurchase Program [Table Text Block]
Repurchases of Chubb's Common Shares conducted in a series of open market transactions from January 1, 2017 through May 3, 2017 under the Board authorization are as follows:
(in millions of U.S. dollars, except share data)
Three Months Ended
March 31, 2017

 
April 1, 2017
through
May 3, 2017

 
Number of shares repurchased
1,036,064

 
664,301

Cost of shares repurchased
$
140

 
$
91

Repurchase authorization remaining at end of period
$
860

 
$
769

Postretirement benefits (Tables)
Schedule of Net Benefit Costs [Table Text Block]
he components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows:
 
Three Months Ended March 31
 
 
Pension Benefits
 
 
Other Postretirement Benefits
 
 
U.S. Plans

 
Non-U.S. Plans

 
Total

 
U.S. Plans

 
Non-U.S. Plans

 
Total

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

 
$
4

 
$
20

 
$
—

 
$
—

 
$
—

Interest cost
26

 
7

 
33

 
1

 
—

 
1

Expected return on plan assets
(47
)
 
(10
)
 
(57
)
 
(1
)
 
—

 
(1
)
Amortization of prior service cost
—

 
—

 
—

 
(23
)
 
—

 
(23
)
Net periodic (benefit) cost
$
(5
)
 
$
1

 
$
(4
)
 
$
(23
)
 
$
—

 
$
(23
)
2016
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
17

 
$
5

 
$
22

 
$
2

 
$
—

 
$
2

Interest cost
27

 
8

 
35

 
5

 
—

 
5

Expected return on plan assets
(37
)
 
(10
)
 
(47
)
 
(2
)
 
—

 
(2
)
Amortization of net actuarial loss
—

 
1

 
1

 
—

 
—

 
—

Net periodic cost
$
7

 
$
4

 
$
11

 
$
5

 
$
—

 
$
5

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
 
 
 
 
 
 
March 31, 2017
 
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
 
Net premiums written
$
2,742

 
$
984

 
$
61

 
$
2,200

 
$
199

 
$
524

 
$
—

 
$
6,710

Net premiums earned
3,041

 
1,086

 
14

 
1,936

 
189

 
506

 
—

 
6,772

Losses and loss expenses
1,860

 
633

 
(73
)
 
1,071

 
94

 
193

 
11

 
3,789

Policy benefits
—

 
—

 
—

 
—

 
—

 
168

 
—

 
168

Policy acquisition costs
487

 
217

 
(1
)
 
529

 
51

 
114

 
—

 
1,397

Administrative expenses
231

 
65

 
(5
)
 
245

 
10

 
72

 
58

 
676

Underwriting income (loss)
463

 
171

 
93

 
91

 
34

 
(41
)
 
(69
)
 
742

Net investment income (loss)
478

 
55

 
6

 
148

 
62

 
75

 
(79
)
 
745

Other (income) expense
4

 
1

 
—

 
(1
)
 
—

 
(29
)
 
(45
)
 
(70
)
Amortization expense of purchased intangibles
—

 
3

 
7

 
11

 
—

 
1

 
42

 
64

Segment income (loss)
$
937

 
$
222

 
$
92

 
$
229

 
$
96

 
$
62

 
$
(145
)
 
$
1,493

Net realized gains (losses) including OTTI
 
 
 
 
 
 
 
 
 
 
 
 
(7
)
 
(7
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
154

 
154

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
111

 
111

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
128

 
128

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
$
(545
)
 
$
1,093


 
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
 
 
 
 
 
March 31, 2016
 
 
 
 
 
(in millions of U.S. dollars)
 
 
 
 
 
Net premiums written
$
2,302

 
$
871

 
$
64

 
$
2,041

 
$
201

 
$
516

 
$
—

 
$
5,995

Net premiums earned
2,896

 
1,024

 
23

 
1,955

 
202

 
497

 
—

 
6,597

Losses and loss expenses
1,747

 
661

 
(30
)
 
1,021

 
89

 
177

 
9

 
3,674

Policy benefits
—

 
—

 
—

 
—

 
—

 
126

 
—

 
126

Policy acquisition costs
482

 
249

 
4

 
503

 
53

 
122

 
—

 
1,413

Administrative expenses
266

 
88

 
(4
)
 
263

 
14

 
72

 
73

 
772

Underwriting income (loss)
401

 
26

 
53

 
168

 
46

 
—

 
(82
)
 
612

Net investment income (loss)
426

 
47

 
5

 
146

 
67

 
67

 
(84
)
 
674

Other (income) expense
—

 
1

 
—

 
(5
)
 
(1
)
 
6

 
27

 
28

Amortization expense (benefit) of purchased intangibles
—

 
8

 
7

 
11

 
—

 
1

 
(20
)
 
7

Segment income (loss)
$
827

 
$
64

 
$
51

 
$
308

 
$
114

 
$
60

 
$
(173
)
 
$
1,251

Net realized gains (losses) including OTTI


 
 
 
 
 
 
 
 
 
 
 
(394
)
 
(394
)
Interest expense


 
 
 
 
 
 
 
 
 
 
 
146

 
146

Chubb integration expenses
 
 
 
 
 
 
 
 
 
 
 
 
148

 
148

Income tax expense


 
 
 
 
 
 
 
 
 
 
 
124

 
124

Net income (loss)


 
 
 
 
 
 
 
 
 
 
 
$
(985
)
 
$
439



Earnings per share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
 
Three Months Ended
 
 
March 31
 
(in millions of U.S. dollars, except share and per share data)
2017

 
2016

Numerator:
 
 
 
Net income
$
1,093

 
$
439

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Weighted-average shares outstanding
468,903,086

 
446,739,586

Denominator for diluted earnings per share:
 
 
 
Share-based compensation plans
3,828,604

 
3,270,156

Weighted-average shares outstanding and assumed conversions
472,731,690

 
450,009,742

Basic earnings per share
$
2.33

 
$
0.98

Diluted earnings per share
$
2.31

 
$
0.97

Potential anti-dilutive share conversions
969,654

 
2,074,308

Information provided in connection with outstanding debt of subsidiaries (Tables)
Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet at March 31, 2017
(in millions of U.S. dollars)
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
25

 
$
304

 
$
99,162

 
$
—

 
$
99,491

Cash (1)
6

 
1

 
2,328

 
(1,272
)
 
1,063

Insurance and reinsurance balances receivable
—

 
—

 
10,956

 
(2,076
)
 
8,880

Reinsurance recoverable on losses and loss expenses
—

 
—

 
24,015

 
(10,246
)
 
13,769

Reinsurance recoverable on policy benefits
—

 
—

 
1,145

 
(958
)
 
187

Value of business acquired
—

 
—

 
345

 
—

 
345

Goodwill and other intangible assets
—

 
—

 
22,061

 
—

 
22,061

Investments in subsidiaries
39,156

 
50,242

 
—

 
(89,398
)
 
—

Due from subsidiaries and affiliates, net
10,396

 
—

 
—

 
(10,396
)
 
—

Other assets
4

 
519

 
18,642

 
(3,994
)
 
15,171

Total assets
$
49,587

 
$
51,066

 
$
178,654

 
$
(118,340
)
 
$
160,967

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,269

 
$
(9,690
)
 
$
60,579

Unearned premiums
—

 
—

 
18,343

 
(3,486
)
 
14,857

Future policy benefits
—

 
—

 
6,044

 
(958
)
 
5,086

Due to subsidiaries and affiliates, net
—

 
10,028

 
368

 
(10,396
)
 
—

Affiliated notional cash pooling programs (1)
—

 
1,272

 
—

 
(1,272
)
 
—

Repurchase agreements
—

 
—

 
1,404

 
—

 
1,404

Short-term debt
—

 
300

 
—

 
—

 
300

Long-term debt
—

 
12,289

 
11

 
—

 
12,300

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
363

 
1,699

 
17,987

 
(3,140
)
 
16,909

Total liabilities
363

 
25,896

 
114,426

 
(28,942
)
 
111,743

Total shareholders’ equity
49,224

 
25,170

 
64,228

 
(89,398
)
 
49,224

Total liabilities and shareholders’ equity
$
49,587

 
$
51,066

 
$
178,654

 
$
(118,340
)
 
$
160,967


(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 March 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
 

Condensed Consolidating Balance Sheet at December 31, 2016

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

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb Limited
Consolidated

Assets
 
 
 
 
 
 
 
 
 
Investments
$
27

 
$
485

 
$
98,582

 
$
—

 
$
99,094

Cash (1)
1

 
1

 
1,965

 
(982
)
 
985

Insurance and reinsurance balances receivable
—

 
—

 
10,498

 
(1,528
)
 
8,970

Reinsurance recoverable on losses and loss expenses
—

 
—

 
24,496

 
(10,919
)
 
13,577

Reinsurance recoverable on policy benefits
—

 
—

 
1,153

 
(971
)
 
182

Value of business acquired
—

 
—

 
355

 
—

 
355

Goodwill and other intangible assets
—

 
—

 
22,095

 
—

 
22,095

Investments in subsidiaries
38,408

 
49,509

 
—

 
(87,917
)
 
—

Due from subsidiaries and affiliates, net
10,482

 
—

 
—

 
(10,482
)
 
—

Other assets
3

 
436

 
18,442

 
(4,353
)
 
14,528

Total assets
$
48,921

 
$
50,431

 
$
177,586

 
$
(117,152
)
 
$
159,786

Liabilities
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
$
—

 
$
—

 
$
70,683

 
$
(10,143
)
 
$
60,540

Unearned premiums
—

 
—

 
18,538

 
(3,759
)
 
14,779

Future policy benefits
—

 
—

 
6,007

 
(971
)
 
5,036

Due to subsidiaries and affiliates, net
—

 
10,209

 
273

 
(10,482
)
 
—

Affiliated notional cash pooling programs (1)
363

 
619

 
—

 
(982
)
 
—

Repurchase agreements
—

 
—

 
1,403

 
—

 
1,403

Short-term debt
—

 
500

 
—

 
—

 
500

Long-term debt
—

 
12,599

 
11

 
—

 
12,610

Trust preferred securities
—

 
308

 
—

 
—

 
308

Other liabilities
283

 
1,582

 
17,368

 
(2,898
)
 
16,335

Total liabilities
646

 
25,817

 
114,283

 
(29,235
)
 
111,511

Total shareholders’ equity
48,275

 
24,614

 
63,303

 
(87,917
)
 
48,275

Total liabilities and shareholders’ equity
$
48,921

 
$
50,431

 
$
177,586

 
$
(117,152
)
 
$
159,786

(1) 
Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
Condensed Consolidating Statement Of Operations and Comprehensive Income 
Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended March 31, 2017
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

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

 
$
—

 
$
6,710

 
$
—

 
$
6,710

Net premiums earned
—

 
—

 
6,772

 
—

 
6,772

Net investment income
—

 
3

 
742

 
—

 
745

Equity in earnings of subsidiaries
1,027

 
701

 
—

 
(1,728
)
 
—

Net realized gains (losses) including OTTI
—

 
(13
)
 
6

 
—

 
(7
)
Losses and loss expenses
—

 
—

 
3,789

 
—

 
3,789

Policy benefits
—

 
—

 
168

 
—

 
168

Policy acquisition costs and administrative expenses
18

 
14

 
2,041

 
—

 
2,073

Interest (income) expense
(84
)
 
221

 
17

 
—

 
154

Other (income) expense
(6
)
 
15

 
(79
)
 
—

 
(70
)
Amortization of purchased intangibles
—

 
—

 
64

 
—

 
64

Chubb integration expenses
—

 
49

 
62

 
—

 
111

Income tax expense (benefit)
6

 
(112
)
 
234

 
—

 
128

Net income
$
1,093

 
$
504

 
$
1,224

 
$
(1,728
)
 
$
1,093

Comprehensive income
$
1,407

 
$
791

 
$
1,538

 
$
(2,329
)
 
$
1,407



Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended March 31, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

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

 
$
—

 
$
5,995

 
$
—

 
$
5,995

Net premiums earned
—

 
—

 
6,597

 
—

 
6,597

Net investment income
1

 
4

 
669

 
—

 
674

Equity in earnings of subsidiaries
375

 
506

 
—

 
(881
)
 
—

Net realized gains (losses) including OTTI
—

 
—

 
(394
)
 
—

 
(394
)
Losses and loss expenses
—

 
—

 
3,674

 
—

 
3,674

Policy benefits
—

 
—

 
126

 
—

 
126

Policy acquisition costs and administrative expenses
17

 
36

 
2,132

 
—

 
2,185

Interest (income) expense
(80
)
 
215

 
11

 
—

 
146

Other (income) expense
(9
)
 
10

 
27

 
—

 
28

Amortization of purchased intangibles
—

 
—

 
7

 
—

 
7

Chubb integration expenses
3

 
137

 
8

 
—

 
148

Income tax expense (benefit)
6

 
(150
)
 
268

 
—

 
124

Net income
$
439

 
$
262

 
$
619

 
$
(881
)
 
$
439

Comprehensive income (loss)
$
1,541

 
$
1,056

 
$
1,721

 
$
(2,777
)
 
$
1,541



Condensed Consolidating Statement of Cash Flows 
Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2017
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from (used for) operating activities
$
584

 
$
(156
)
 
$
1,081

 
$
(496
)
 
$
1,013

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

 
(4
)
 
(6,246
)
 
—

 
(6,250
)
Purchases of fixed maturities held to maturity
—

 
—

 
(157
)
 
—

 
(157
)
Purchases of equity securities
—

 
—

 
(37
)
 
—

 
(37
)
Sales of fixed maturities available for sale
—

 
—

 
3,395

 
—

 
3,395

Sales of equity securities
—

 
—

 
46

 
—

 
46

Maturities and redemptions of fixed maturities available for sale
—

 
7

 
2,536

 
—

 
2,543

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
240

 
—

 
240

Net change in short-term investments
—

 
173

 
59

 
—

 
232

Net derivative instruments settlements
—

 
(2
)
 
(87
)
 
—

 
(89
)
Other
—

 
—

 
17

 
—

 
17

Net cash flows from (used for) investing activities
—

 
174

 
(234
)
 
—

 
(60
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(324
)
 
—

 
—

 
—

 
(324
)
Common Shares repurchased
—

 
—

 
(128
)
 
—

 
(128
)
Repayment of long-term debt
—

 
(500
)
 
—

 
—

 
(500
)
Proceeds from issuance of repurchase agreements
—

 
—

 
753

 
—

 
753

Repayment of repurchase agreements
—

 
—

 
(752
)
 
—

 
(752
)
Proceeds from share-based compensation plans
—

 
—

 
42

 
—

 
42

Dividend to parent company
—

 
—

 
(496
)
 
496

 
—

Advances (to) from affiliates
108

 
(171
)
 
63

 
—

 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(363
)
 
653

 
—

 
(290
)
 
—

Policyholder contract deposits
—

 
—

 
109

 
—

 
109

Policyholder contract withdrawals
—

 
—

 
(58
)
 
—

 
(58
)
Net cash flows used for financing activities
(579
)
 
(18
)
 
(467
)
 
206

 
(858
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
(17
)
 
—

 
(17
)
Net increase in cash
5

 
—

 
363

 
(290
)
 
78

Cash – beginning of period(1)
1

 
1

 
1,965

 
(982
)
 
985

Cash – end of period(1)
$
6

 
$
1

 
$
2,328

 
$
(1,272
)
 
$
1,063

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

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2016
Chubb
Limited
(Parent
Guarantor)

 
Chubb INA
Holdings Inc.
(Subsidiary
Issuer)

 
Other Chubb
Limited
Subsidiaries

 
Consolidating
Adjustments and Eliminations

 
Chubb
Limited
Consolidated

(in millions of U.S. dollars)
 
 
 
 
Net cash flows from operating activities
$
3,272

 
$
3,109

 
$
1,011

 
$
(6,372
)
 
$
1,020

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

 
—

 
(8,104
)
 
—

 
(8,104
)
Purchases of fixed maturities held to maturity
—

 
—

 
(77
)
 
—

 
(77
)
Purchases of equity securities
—

 
—

 
(33
)
 
—

 
(33
)
Sales of fixed maturities available for sale
—

 
—

 
6,329

 
—

 
6,329

Sales of equity securities
—

 
—

 
761

 
—

 
761

Maturities and redemptions of fixed maturities
   available for sale
—

 
—

 
1,553

 
—

 
1,553

Maturities and redemptions of fixed maturities held to maturity
—

 
—

 
249

 
—

 
249

Net change in short-term investments
—

 
7,788

 
4,144

 
—

 
11,932

Net derivative instruments settlements
—

 
—

 
(22
)
 
—

 
(22
)
Acquisition of subsidiaries (net of cash acquired of $57)
—

 
(14,282
)
 
20

 
—

 
(14,262
)
Capital contribution
(2,330
)
 
—

 
(2,330
)
 
4,660

 
—

Other
—

 
—

 
59

 
—

 
59

Net cash flows from (used for) investing activities
(2,330
)
 
(6,494
)
 
2,549

 
4,660

 
(1,615
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Dividends paid on Common Shares
(218
)
 
—

 
—

 
—

 
(218
)
Proceeds from issuance of repurchase agreements
—

 
—

 
853

 
—

 
853

Repayment of repurchase agreements
—

 
—

 
(853
)
 
—

 
(853
)
Proceeds from share-based compensation plans, including windfall tax benefits
—

 
—

 
51

 
—

 
51

Dividend to parent company
—

 
—

 
(6,372
)
 
6,372

 
—

Advances (to) from affiliates
(362
)
 
350

 
12

 
—

 
—

Capital contribution
—

 
2,330

 
2,330

 
(4,660
)
 
—

Net proceeds from (payments to) affiliated notional cash pooling programs(1)
(361
)
 
710

 
—

 
(349
)
 
—

Policyholder contract deposits
—

 
—

 
118

 
—

 
118

Policyholder contract withdrawals
—

 
—

 
(49
)
 
—

 
(49
)
Other
—

 
(4
)
 
—

 
—

 
(4
)
Net cash flows from (used for) financing activities
(941
)
 
3,386

 
(3,910
)
 
1,363

 
(102
)
Effect of foreign currency rate changes on cash and cash equivalents
—

 
—

 
13

 
—

 
13

Net increase (decrease) in cash
1

 
1

 
(337
)
 
(349
)
 
(684
)
Cash – beginning of period(1)
1

 
2

 
2,743

 
(971
)
 
1,775

Cash – end of period(1)
$
2

 
$
3

 
$
2,406

 
$
(1,320
)
 
$
1,091


(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 March 31, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
General Adoption of New Accounting Pronouncements (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Income tax expense
$ 128 
$ 124 
Accounting Standards Update 2016-09 [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Income tax expense
$ 25 
 
General Goodwill (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
 
Goodwill, Period Increase (Decrease)
$ 55 
General Schedule of long-term debt (Details) (USD $)
3 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Mar. 31, 2017
Chubb INA Capital Securities Due 2037 [Member]
Mar. 31, 2017
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2037 [Member]
Apr. 15, 2017
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2037 [Member]
Subsequent Event [Member]
Mar. 31, 2017
Junior Subordinated Debt [Member]
Chubb INA Capital Securities Due 2037 [Member]
London Interbank Offered Rate (LIBOR) [Member]
Feb. 28, 2017
Senior Notes [Member]
INA Senior Notes Due February 2017 [Member]
Mar. 31, 2017
Senior Notes [Member]
INA Senior Notes Due March 2018 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
Short-term debt
$ 300,000,000 
$ 500,000,000 
 
 
 
 
$ 500,000,000 
$ 300,000,000 
Debt Instrument, Face Amount
 
 
$ 1,000,000,000 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
6.375% 
3.41% 
 
5.70% 
5.80% 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
2.25% 
 
 
Acquisitions Acquisitions (narrative) (Details) (USD $)
0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Jan. 14, 2016
The Chubb Corporation [Member]
Mar. 31, 2017
Additional Paid-in Capital [Member]
Mar. 31, 2016
Additional Paid-in Capital [Member]
Jan. 14, 2016
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Mar. 31, 2017
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Mar. 31, 2016
Additional Paid-in Capital [Member]
The Chubb Corporation [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
Purchase price
 
 
$ 29,500,000,000 
 
 
 
 
 
Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp
 
 
14,300,000,000 
 
 
 
 
 
Equity Issued in Business Combination, Fair Value Disclosure
 
 
15,200,000,000 
 
 
 
 
 
Attributed Value Equity Awards Assumed in Acquisition
 
 
 
(260,000,000)
(310,000,000)
323,000,000 
0 
323,000,000 
Business Combination, Consideration Transferred
 
 
29,800,000,000 
 
 
 
 
 
Goodwill
$ 15,387,000,000 
$ 15,332,000,000 
$ 10,500,000,000 
 
 
 
 
 
Supplemental Financial Information for Acquisition (Details) (The Chubb Corporation [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2016
The Chubb Corporation [Member]
 
 
Business Acquisition [Line Items]
 
 
Actual Revenue of Chubb Corp since Acquisition Date
$ 2,487 
 
Actual Net Income of Chubb Corp since Acquisition Date
255 
 
Pro Forma Total Revenues
 
7,322 
Pro Forma Net Income
 
$ 534 
Pro Forma Earnings Per Share, Basic
 
$ 1.14 
Pro Forma Earnings Per Share, Diluted
 
$ 1.14 
Investments (Narrative) (Detail) (USD $)
3 Months Ended
Mar. 31, 2017
Security
Mar. 31, 2016
Dec. 31, 2016
Investment [Line Items]
 
 
 
Net unrealized appreciation (depreciation) included in OCI
$ 0 
$ 23,000,000 
 
Unrealized appreciation (depreciation) portion of AOCI with OTTI included in AOCI
10,000,000 
 
10,000,000 
Percentage of mortgage-backed securities represented by investments in US government agency bonds
82.00% 
 
81.00% 
Total number of fixed maturities
31,098 
 
 
Number of equity securities in an unrealized loss position
70 
 
 
Total number of equity securities
325 
 
 
Largest single unrealized loss in the equity securities
1,000,000 
 
 
Restricted assets in fixed maturities and short-term investments
20,600,000,000 
 
20,100,000,000 
Restricted assets in cash
97,000,000 
 
103,000,000 
Moodys Historical Mean Recovery Rate
42.00% 
 
 
Company Assumed Recovery Rate
32.00% 
 
 
Number of fixed maturities in an unrealized loss position
9,408 
 
 
Largest single unrealized loss in the fixed maturities
6,000,000 
 
 
Corporate [Member]
 
 
 
Investment [Line Items]
 
 
 
Credit losses recognized in net income
1,000,000 
17,000,000 
 
Collateralized Mortgage Backed Securities [Member]
 
 
 
Investment [Line Items]
 
 
 
Credit losses recognized in net income
$ 0 
$ 0 
 
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Available for sale, Due in 1 year or less, Amortized Cost
$ 3,828 
$ 3,892 
Available for sale, Due after 1 year through 5 years, Amortized Cost
23,950 
24,027 
Available for sale, Due after 5 years though 10 years, Amortized Cost
27,693 
27,262 
Available for sale, Due after 10 years, Amortized Cost
10,269 
10,289 
Available for sale, Subtotal, Amortized Cost
65,740 
65,470 
Available for sale, Mortgage-backed securities, Amortized Cost
14,217 
14,066 
Available for sale, at amortized cost
79,957 
79,536 
Available for sale, Due in 1 year or less, Fair Value
3,851 
3,913 
Available for sale, Due after 1 year through 5 years, Fair Value
24,413 
24,429 
Available for sale, Due after 5 years through 10 years, Fair Value
27,955 
27,379 
Available for sale, Due after 10 years, Fair Value
10,441 
10,387 
Available for sale, Subtotal, Fair Value
66,660 
66,108 
Available for sale, Mortgage backed securities, Fair Value
14,146 
14,007 
Available for sale, Fair Value
80,806 
80,115 
Held to maturity, Due in 1 year or less, Amortized Cost
481 
430 
Held to maturity, Due after 1 year through 5 years, Amortized Cost
2,648 
2,646 
Held to maturity, Due after 5 years through 10 years, Amortized Cost
2,973 
2,969 
Held to maturity, Due after 10 years, Amortized Cost
3,098 
3,206 
Held to maturity, Subtotal, Amortized Cost
9,200 
9,251 
Held to maturity, Mortgage backed securities, Amortized Cost
1,319 
1,393 
Held to maturity, Amortized Cost
10,519 
10,644 
Held to maturity, Due in 1 year or less, Fair Value
486 
435 
Held to maturity, Due after 1 year through 5, Fair Value
2,695 
2,691 
Held to maturity, Due after 5 years through 10 years, Fair Value
2,980 
2,944 
Held to maturity, Due after 10 years, Fair Value
3,089 
3,172 
Held to maturity, Subtotal, Fair Value
9,250 
9,242 
Held to maturity, Mortgage backed securities, Fair Value
1,354 
1,428 
Held to maturity, Fair Value
$ 10,604 
$ 10,670 
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Cost
$ 699 
$ 706 
Gross unrealized appreciation
144 
129 
Gross unrealized depreciation
(8)
(21)
Equity securities, at fair value
$ 835 
$ 814 
Investments (Net Realized Gains (Losses) And Losses Included In Net Realized Gains (Losses) And Other Comprehensive Income) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Gain (Loss) on Investments [Line Items]
 
 
Other-than-temporary impairment (OTTI) losses gross
$ (19)
$ (71)
OTTI on fixed maturities recognized in OCI (pre-tax)
0 
8 
Foreign exchange gains (losses)
(19)
39 
Derivative instrument
27 
(284)
Fair Value Adjustments On Insurance Derivative Gains Losses
93 
(228)
Net realized gains (losses)
(7)
(394)
Investment and embedded derivative instruments
 
 
Gain (Loss) on Investments [Line Items]
 
 
Derivative instrument
6 
(39)
S&P put options and futures
 
 
Gain (Loss) on Investments [Line Items]
 
 
Derivative instrument
(74)
(15)
Other derivative instruments
 
 
Gain (Loss) on Investments [Line Items]
 
 
Derivative instrument
2 
(2)
Other Investments [Member]
 
 
Gain (Loss) on Investments [Line Items]
 
 
OTTI on equity securities
(8)
(3)
Other
1 
6 
Equity Securities [Member]
 
 
Gain (Loss) on Investments [Line Items]
 
 
OTTI on equity securities
(5)
(1)
Equity Securities, Gross realized gains excluding OTTI
9 
40 
Equity Securities, Gross realized losses excluding OTTI
0 
(1)
Total equity securities
4 
38 
Fixed Maturities [Member]
 
 
Gain (Loss) on Investments [Line Items]
 
 
Other-than-temporary impairment (OTTI) losses gross
(6)
(67)
OTTI on fixed maturities recognized in OCI (pre-tax)
0 
8 
OTTI on fixed maturities, net
(6)
(59)
Fixed maturities, Gross realized gains excluding OTTI
34 
65 
Fixed maturities, Gross realized losses excluding OTTI
(40)
(196)
Total fixed maturities
$ (12)
$ (190)
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
Mar. 31, 2017
Dec. 31, 2016
Investment [Line Items]
 
 
Fair Value, 0-12 Months
$ 38,278 
$ 43,641 
Gross Unrealized Loss, 0-12 Months
(678)
(959)
Fair Value, Over 12 Months
1,429 
1,310 
Gross Unrealized Loss, Over 12 Months
(60)
(78)
Total Fair Value
39,707 
44,951 
Total Gross Unrealized Loss
(738)
(1,037)
U.S. Treasury And Agency [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
2,011 
2,216 
Gross Unrealized Loss, 0-12 Months
(38)
(48)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
2,011 
2,216 
Total Gross Unrealized Loss
(38)
(48)
Foreign [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
4,428 
5,918 
Gross Unrealized Loss, 0-12 Months
(59)
(99)
Fair Value, Over 12 Months
684 
386 
Gross Unrealized Loss, Over 12 Months
(21)
(27)
Total Fair Value
5,112 
6,304 
Total Gross Unrealized Loss
(80)
(126)
Corporate [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
6,139 
7,021 
Gross Unrealized Loss, 0-12 Months
(121)
(149)
Fair Value, Over 12 Months
491 
641 
Gross Unrealized Loss, Over 12 Months
(32)
(44)
Total Fair Value
6,630 
7,662 
Total Gross Unrealized Loss
(153)
(193)
Collateralized Mortgage Backed Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
8,735 
8,638 
Gross Unrealized Loss, 0-12 Months
(195)
(189)
Fair Value, Over 12 Months
131 
234 
Gross Unrealized Loss, Over 12 Months
(3)
(5)
Total Fair Value
8,866 
8,872 
Total Gross Unrealized Loss
(198)
(194)
States, Municipalities, And Political Subdivisions [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
16,731 
19,448 
Gross Unrealized Loss, 0-12 Months
(248)
(435)
Fair Value, Over 12 Months
123 
49 
Gross Unrealized Loss, Over 12 Months
(4)
(2)
Total Fair Value
16,854 
19,497 
Total Gross Unrealized Loss
(252)
(437)
Fixed Maturities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
38,044 
43,241 
Gross Unrealized Loss, 0-12 Months
(661)
(920)
Fair Value, Over 12 Months
1,429 
1,310 
Gross Unrealized Loss, Over 12 Months
(60)
(78)
Total Fair Value
39,473 
44,551 
Total Gross Unrealized Loss
(721)
(998)
Equity Securities [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
150 
199 
Gross Unrealized Loss, 0-12 Months
(8)
(21)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
150 
199 
Total Gross Unrealized Loss
(8)
(21)
Other Long-term Investments [Member]
 
 
Investment [Line Items]
 
 
Fair Value, 0-12 Months
84 
201 
Gross Unrealized Loss, 0-12 Months
(9)
(18)
Fair Value, Over 12 Months
0 
0 
Gross Unrealized Loss, Over 12 Months
0 
0 
Total Fair Value
84 
201 
Total Gross Unrealized Loss
$ (9)
$ (18)
Investments (Schedule Of Components Of Restricted Assets) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Trust funds
$ 14,359 
$ 13,880 
Deposits with U.S. regulatory authorities
2,356 
2,203 
Deposits with non-U.S. regulatory authorities
2,192 
2,191 
Assets pledged under repurchase agreements
1,453 
1,461 
Other pledged assets
366 
435 
Total restricted assets
$ 20,726 
$ 20,170 
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Mar. 31, 2017
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member]
Dec. 31, 2016
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member]
Mar. 31, 2017
Other Investments [Member]
Dec. 31, 2016
Other Investments [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Estimate of Fair Value Measurement [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Estimate of Fair Value Measurement [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
U.S. Treasury And Agency [Member]
Estimate of Fair Value Measurement [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
U.S. Treasury And Agency [Member]
Estimate of Fair Value Measurement [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
U.S. Treasury And Agency [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
U.S. Treasury And Agency [Member]
Fair Value, Inputs, Level 1 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
U.S. Treasury And Agency [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
U.S. Treasury And Agency [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Foreign [Member]
Estimate of Fair Value Measurement [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Foreign [Member]
Estimate of Fair Value Measurement [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Foreign [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Foreign [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Foreign [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Foreign [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Corporate [Member]
Estimate of Fair Value Measurement [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Corporate [Member]
Estimate of Fair Value Measurement [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Corporate [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Corporate [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Corporate [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Corporate [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Collateralized Mortgage Backed Securities [Member]
Estimate of Fair Value Measurement [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Collateralized Mortgage Backed Securities [Member]
Estimate of Fair Value Measurement [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Collateralized Mortgage Backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Collateralized Mortgage Backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
Collateralized Mortgage Backed Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Collateralized Mortgage Backed Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
States, Municipalities, And Political Subdivisions [Member]
Estimate of Fair Value Measurement [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
States, Municipalities, And Political Subdivisions [Member]
Estimate of Fair Value Measurement [Member]
Mar. 31, 2017
Fair Value, Measurements, Recurring [Member]
States, Municipalities, And Political Subdivisions [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
States, Municipalities, And Political Subdivisions [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2017
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Mar. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2015
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2017
Guaranteed Minimum Income Benefit [Member]
Fair Value, Measurements, Recurring [Member]
Estimate of Fair Value Measurement [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Fair Value, Measurements, Recurring [Member]
Estimate of Fair Value Measurement [Member]
Mar. 31, 2017
Guaranteed Minimum Income Benefit [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale, Fair Value
$ 80,806 
 
$ 80,115 
 
 
 
 
$ 80,806 
$ 80,115 
$ 862 
$ 800 
$ 2,222 
$ 2,175 
$ 77,722 
$ 77,140 
$ 2,899 
$ 2,870 
$ 2,222 
$ 2,175 
$ 677 
$ 695 
$ 21,367 
$ 21,440 
$ 80 
$ 74 
$ 21,287 
$ 21,366 
$ 24,842 
$ 24,149 
$ 737 
$ 681 
$ 24,105 
$ 23,468 
$ 14,146 
$ 14,007 
$ 45 
$ 45 
$ 14,101 
$ 13,962 
$ 17,552 
$ 17,649 
$ 17,552 
$ 17,649 
 
 
 
 
 
 
 
 
 
Equity securities, at fair value
835 
 
814 
 
 
 
 
835 
814 
41 
41 
794 
773 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
2,780 
3,002 
21 
25 
1,548 
1,757 
1,211 
1,220 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Investments
4,551 
 
4,519 
3,594 
3,626 
20 
25 
937 
868 
232 
225 
425 
384 
280 
259 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities lending collateral
1,071 
 
1,092 
 
 
 
 
1,071 
1,092 
 
 
 
 
1,071 
1,092 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment derivative instruments, assets
 
 
 
 
 
 
 
15 
31 
 
 
15 
31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Derivative Instruments Fair Value
 
 
 
 
 
 
 
8 
3 
 
 
8 
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Separate Account Assets
 
 
 
 
 
 
 
2,067 
1,879 
 
 
1,970 
1,784 
97 
95 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets measured at fair value
 
 
 
 
 
 
 
88,519 
87,804 
1,156 
1,091 
6,982 
6,907 
80,381 
79,806 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment derivative instruments, liabilities
 
 
 
 
 
 
 
30 
54 
 
 
30 
54 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other derivative instruments, liability
 
 
 
 
 
 
 
11 
13 
11 
13 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
466 1
559 1
839 1 2
609 2
559 
466 3
559 
466 4
559 
Liabilities, Fair Value Disclosure, Recurring
 
 
 
 
 
 
 
507 
626 
477 
572 
30 
54 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Level 1 to Level 2 transfers, Amount
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Level 2 to Level 1 Transfers, Amount
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2017
Minimum [Member]
Mar. 31, 2017
Maximum [Member]
Mar. 31, 2017
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Mar. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2015
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2016
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
 
 
 
$ 466 1
$ 559 1
$ 839 1 2
$ 609 2
$ 559 
Valuation Technique
Actuarial model 3
 
 
 
 
 
 
 
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate
 
3.00% 3
34.00% 3
 
 
 
 
 
Significant Unobservable Inputs Annuitization Rate
 
0.00% 3
78.00% 3
 
 
 
 
 
Fair Value Measurements (Assets Measured At Fair Value Using Significant Unobservable Inputs) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 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
$ 74 
$ 57 
Transfers Into Level 3, Asset
0 
6 
Transfers out of Level 3, Assets
0 
(2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
(1)
6 
Net Realized Gains/Losses, Assets
(1)
(5)
Purchases, Assets
14 
5 
Sales, Assets
(3)
(1)
Settlements, Assets
(3)
(4)
Balance-End of Period, Assets
80 
62 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
0 
(4)
Corporate [Member] |
Available-for-sale Securities [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Balance- Beginning of Period, Assets
681 
174 
Transfers Into Level 3, Asset
29 
16 
Transfers out of Level 3, Assets
(54)
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
(8)
2 
Net Realized Gains/Losses, Assets
(1)
(6)
Purchases, Assets
156 
93 
Sales, Assets
(27)
(14)
Settlements, Assets
(39)
(4)
Balance-End of Period, Assets
737 
261 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
0 
(7)
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
45 
53 
Transfers Into Level 3, Asset
0 
0 
Transfers out of Level 3, Assets
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
Net Realized Gains/Losses, Assets
0 
0 
Purchases, Assets
1 
0 
Sales, Assets
(1)
(5)
Settlements, Assets
0 
0 
Balance-End of Period, Assets
45 
48 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
0 
0 
Equity Securities [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Balance- Beginning of Period, Assets
41 
16 
Transfers Into Level 3, Asset
0 
0 
Transfers out of Level 3, Assets
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
Net Realized Gains/Losses, Assets
0 
0 
Purchases, Assets
0 
13 
Sales, Assets
0 
0 
Settlements, Assets
0 
0 
Balance-End of Period, Assets
41 
29 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
0 
0 
Short-term Investments [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Balance- Beginning of Period, Assets
25 
 
Transfers Into Level 3, Asset
0 
 
Transfers out of Level 3, Assets
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
 
Net Realized Gains/Losses, Assets
0 
 
Purchases, Assets
7 
 
Sales, Assets
0 
 
Settlements, Assets
(11)
 
Balance-End of Period, Assets
21 
 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
 
0 
Other Long-term Investments [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Balance- Beginning of Period, Assets
225 
212 
Transfers Into Level 3, Asset
0 
0 
Transfers out of Level 3, Assets
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
4 
0 
Net Realized Gains/Losses, Assets
0 
0 
Purchases, Assets
8 
6 
Sales, Assets
0 
0 
Settlements, Assets
(4)
(7)
Balance-End of Period, Assets
233 
211 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)
$ 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 3 Months Ended
Mar. 31, 2017
Guaranteed Minimum Income Benefit [Member]
Mar. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2015
Guaranteed Minimum Income Benefit [Member]
Dec. 31, 2016
Guaranteed Minimum Income Benefit [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2017
Other Derivative Instruments Fair Value [Member]
Mar. 31, 2016
Other Derivative Instruments Fair Value [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
Reported liabilities
 
$ 1,100 
$ 888 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
 
Balance - Beginning of Period, Liabilities
559 1
609 2
 2
559 
13 
6 
Transfers into level 3, liability
0 
0 
 
 
0 
0 
Transfers out of Level 3, Liabilities
0 
0 
 
 
0 
 
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities
0 
0 
 
 
0 
0 
Net Realized Gains/Losses, Liabilities
(93)
230 2
 
 
(2)
2 
Purchases, Liabilities
0 
0 
 
 
0 
2 
Sales, Liabilities
0 
0 
 
 
0 
0 
Settlements, Liabilities
0 
0 
 
 
0 
0 
Balance - End of Period, Liabilities
466 1
839 1 2
 2
559 
11 
10 
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)
$ (93)
$ 230 
 
 
$ (2)
$ 2 
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
$ 10,604 
$ 10,670 
Held-to-maturity Securities
10,519 
10,644 
Repurchase agreements
1,404 
1,403 
Long-term debt
12,300 
12,610 
Short-term debt
300 
500 
Trust preferred securities
308 
308 
Total liabilities
111,743 
111,511 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
518 
555 
Repurchase agreements
0 
0 
Long-term Debt, Fair Value
0 
0 
Short-term Debt, Fair Value
0 
0 
Trust preferred securities
0 
0 
Total liabilities
0 
0 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
10,074 
10,102 
Repurchase agreements
1,404 
1,403 
Long-term Debt, Fair Value
12,757 
12,998 
Short-term Debt, Fair Value
312 
503 
Trust preferred securities
458 
456 
Total liabilities
14,931 
15,360 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
12 
13 
Repurchase agreements
0 
0 
Long-term Debt, Fair Value
0 
0 
Short-term Debt, Fair Value
0 
0 
Trust preferred securities
0 
0 
Total liabilities
0 
0 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
518 
555 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
90 
106 
U.S. Treasury And Agency [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Foreign [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Foreign [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
651 
667 
Foreign [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Corporate [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Corporate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
2,728 
2,782 
Corporate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
12 
13 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
1,354 
1,428 
Collateralized Mortgage Backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
5,251 
5,119 
States, Municipalities, And Political Subdivisions [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
0 
0 
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
10,604 
10,670 
Repurchase agreements
1,404 
1,403 
Long-term Debt, Fair Value
12,757 
12,998 
Short-term Debt, Fair Value
312 
503 
Trust preferred securities
458 
456 
Total liabilities
14,931 
15,360 
Estimate of Fair Value Measurement [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
608 
661 
Estimate of Fair Value Measurement [Member] |
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
651 
667 
Estimate of Fair Value Measurement [Member] |
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
2,740 
2,795 
Estimate of Fair Value Measurement [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
1,354 
1,428 
Estimate of Fair Value Measurement [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities, Fair Value
5,251 
5,119 
Reported Value Measurement [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
10,519 
10,644 
Repurchase agreements
1,404 
1,403 
Long-term debt
12,300 
12,610 
Short-term debt
300 
500 
Trust preferred securities
308 
308 
Total liabilities
14,312 
14,821 
Reported Value Measurement [Member] |
U.S. Treasury And Agency [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
601 
655 
Reported Value Measurement [Member] |
Foreign [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
625 
640 
Reported Value Measurement [Member] |
Corporate [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
2,710 
2,771 
Reported Value Measurement [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
1,319 
1,393 
Reported Value Measurement [Member] |
States, Municipalities, And Political Subdivisions [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Held-to-maturity Securities
$ 5,264 
$ 5,185 
Unpaid losses and loss expenses Unpaid losses and loss expenses (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Jan. 14, 2016
Liability for Claims and Claims Adjustment Expense [Abstract]
 
 
 
 
Gross unpaid losses and loss expenses, beginning of year
$ 60,540 
$ 37,303 
 
 
Reinsurance Recoverable on unpaid losses, beginning of year
(12,708)
(10,741)
 
 
Net unpaid loss, beginning of period
47,832 
26,562 
 
 
Acquisition of subsidiaries
 
 
0 
21,363 
Total, Beginning of year
47,832 
47,925 
 
 
Current Year Claims and Claims Adjustment Expense
4,078 
3,965 
 
 
Prior Year Claims and Claims Adjustment Expense
(289)
(291)
 
 
Total, Incurred
3,789 
3,674 
 
 
Net loss and loss expenses paid, Current Year
798 
586 
 
 
Net losses and loss expenses Paid, Prior Years
3,109 
2,963 
 
 
Total, Paid
3,907 
3,549 
 
 
Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Revaluation And Other
54 
29 
 
 
Net unpaid Loss, end of period
47,768 
48,079 
 
 
Reinsurance Recoverables on unpaid losses, end of year
12,811 
12,127 
 
 
Gross unpaid losses and loss expenses, end of year
$ 60,579 
$ 60,206 
 
 
Commitments, Contingencies, And Guarantees (Narrative) (Detail) (USD $)
1 Months Ended
Mar. 31, 2017
Dec. 31, 2016
May 4, 2017
Subsequent Event [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
 
 
 
Purchase Commitment, Remaining Minimum Amount Committed
$ 603,000,000 
 
$ 853,000,000 
Long-term Purchase Commitment, Amount
 
 
250,000,000 
Securities lending collateral
1,071,000,000 
1,092,000,000 
 
Securities lending payable
1,072,000,000 
1,093,000,000 
 
Derivative liability subject to a master netting agreement
1,000,000 
10,000,000 
 
Unrecognized tax benefits
18,000,000 
 
 
Repurchase agreements
1,404,000,000 
1,403,000,000 
 
Funding commitments relating to limited partnerships and partially-owned investment companies
1,900,000,000 
 
 
Carrying value of limited partnerships and partially-owned investment companies included in other investments
$ 3,300,000,000 
 
 
Commitments, Contingencies, And Guarantees (Balance Sheet Locations, Fair Values In Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Foreign currency forward contracts
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
$ 2,303 
$ 2,220 
Cross Currency Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 
0 
Fair Value, Asset
0 
0 
Notional Value/Payment Provision
95 
95 
Options/Futures contracts on notes and bonds
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
834 
2,344 
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
7 
7 1
Investment And Embedded Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
17 
33 
Notional Value/Payment Provision
3,239 
4,666 
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,391 2
1,316 2
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
254 
214 
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,645 
1,530 
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional Value/Payment Provision
1,186 3
1,264 3
Other Assets [Member] |
Foreign currency forward contracts
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
12 
25 
Other Assets [Member] |
Options/Futures contracts on notes and bonds
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
3 
6 
Other Assets [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
4 2
1 2
Other Assets [Member] |
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
4 
2 
Other Assets [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
8 
3 
Other Assets [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
0 3
0 3
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Foreign currency forward contracts
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(26)
(50)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Options/Futures contracts on notes and bonds
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(4)
(4)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 
0 1
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Investment And Embedded Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(30)
(54)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Single-Stock Future [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
0 2
0 2
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Other Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(11)
(13)
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] |
Other Derivative Instruments [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
(11)
(13)
Fixed Maturities Available For Sale [Member] |
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Asset
2 
2 1
Accounts Payable Future Policy Benefits [Member] |
Guaranteed Living Benefits [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair Value, Liability
$ (774)3
$ (853)3
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 1,071 
$ 1,092 
Securities lending payable
1,072 
1,093 
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
(1)
(1)
Cash and Cash Equivalents [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
570 
423 
U.S. Treasury And Agency [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
22 
54 
Foreign Government Debt [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
233 
578 
Corporate [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
0 
37 
Collateralized Mortgage Backed Securities [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
33 
0 
Equity Securities [Member] |
Overnight and Continuous [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Securities lending collateral
$ 213 
$ 0 
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
$ 1,453 
$ 1,461 
Repurchase agreements
1,404 
1,403 
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
0 
1 
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
245 
240 
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
1,208 
1,220 
Repurchase Agreements [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Secured Borrowings, Gross, Difference, Amount
49 
58 
Maturity Less than 30 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
369 
569 
Maturity Less than 30 Days [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
0 
0 
Maturity Less than 30 Days [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
9 
230 
Maturity Less than 30 Days [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
360 
339 
Maturity Greater than 90 Days [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
1,084 
892 
Maturity Greater than 90 Days [Member] |
Cash and Cash Equivalents [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
0 
1 
Maturity Greater than 90 Days [Member] |
U.S. Treasury And Agency [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
236 
10 
Maturity Greater than 90 Days [Member] |
Collateralized Mortgage Backed Securities [Member]
 
 
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
 
 
Assets pledged under repurchase agreements
$ 848 
$ 881 
Commitments, Contingencies, And Guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
$ 27 
$ (284)
Foreign currency forward contracts
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
14 
(10)
All Other Futures Contracts And Options [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
(8)
(34)
Convertibles and Bonds with Warrants Attached [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
0 
5 
Investment And Embedded Derivative Instruments [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
6 
(39)
Guaranteed Minimum Income Benefit [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
93 
(228)
Single-Stock Future [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
(74)
(15)
Other Derivatives [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
2 
(2)
Guaranteed Living Benefit And Other Derivative Instruments [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) on Derivative
$ 21 
$ (245)
Shareholders' equity Shareholders' equity (Details)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
USD ($)
Mar. 31, 2017
CHF
Mar. 31, 2016
USD ($)
Mar. 31, 2016
CHF
Dec. 31, 2016
CHF
May 31, 2016
USD ($)
May 31, 2015
USD ($)
Nov. 30, 2016
Nov 2016 Stock Repurchase Plan [Member]
USD ($)
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
 
 
 
Common Shares, par value
 
 24.15 
 
 
 24.15 
 
 
 
Common Stock, Dividend Rate Declared
$ 0.69 
 0.69 
$ 0.67 
 0.66 
 
 
 
 
Common Shares in treasury, shares
12,560,845 
12,560,845 
 
 
13,815,148 
 
 
 
Authorized amount of share repurchase program
 
 
 
 
 
 
 
$ 1,000 
Annual dividend per share approved by shareholders
 
 
 
 
 
$ 2.76 
$ 2.68 
 
Common Stock, Dividend Rate Approved
 
 
 
 
 
$ 0.69 
$ 0.67 
 
Shareholders' equity Share Repurchases (Details) (Nov 2016 Stock Repurchase Plan [Member], USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 1 Months Ended
Mar. 31, 2017
May 4, 2017
Subsequent Event [Member]
Class of Stock [Line Items]
 
 
Treasury Stock, Shares, Acquired
1,036,064 
664,301 
Treasury Stock, Value, Acquired, Cost Method
$ 140 
$ 91 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
$ 860 
$ 769 
Share-Based Compensation (Detail) (USD $)
0 Months Ended 3 Months Ended
Feb. 23, 2017
Mar. 31, 2017
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period in years
 
3 years 
Award term period in years
 
10 years 
Stock options granted
2,065,620 
 
Weighted-average grant date fair value for stock options granted
$ 22.97 
 
Restricted Stock [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period in years
 
4 years 
Restricted stock awards granted to employees and officers of the company
1,105,118 
 
Grant date fair value of awards except for options granted to employees and officers of the company
$ 139.01 
 
Restricted Stock Units (RSUs) [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted stock units awarded to employees and officers of the company
326,272 
 
Performance Shares [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period in years
 
4 years 
Restricted stock awards granted to employees and officers of the company
202,251 
 
Postretirement benefits Components of net periodic benefit costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Pension Plan [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
$ 20 
$ 22 
Interest Cost
33 
35 
Expected Return on Plan Assets
(57)
(47)
Amortization of Actuarial (Gain) Loss
 
1 
Amortization of Prior Service Cost
0 
 
Net Periodic Benefit Cost
(4)
11 
Pension Plan [Member] |
UNITED STATES
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
16 
17 
Interest Cost
26 
27 
Expected Return on Plan Assets
(47)
(37)
Amortization of Actuarial (Gain) Loss
 
0 
Amortization of Prior Service Cost
0 
 
Net Periodic Benefit Cost
(5)
7 
Pension Plan [Member] |
Non-US [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
4 
5 
Interest Cost
7 
8 
Expected Return on Plan Assets
(10)
(10)
Amortization of Actuarial (Gain) Loss
 
1 
Amortization of Prior Service Cost
0 
 
Net Periodic Benefit Cost
1 
4 
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
0 
2 
Interest Cost
1 
5 
Expected Return on Plan Assets
(1)
(2)
Amortization of Actuarial (Gain) Loss
 
0 
Amortization of Prior Service Cost
(23)
 
Net Periodic Benefit Cost
(23)
5 
Other Postretirement Benefit Plan [Member] |
UNITED STATES
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
0 
2 
Interest Cost
1 
5 
Expected Return on Plan Assets
(1)
(2)
Amortization of Actuarial (Gain) Loss
 
0 
Amortization of Prior Service Cost
(23)
 
Net Periodic Benefit Cost
(23)
5 
Other Postretirement Benefit Plan [Member] |
Non-US [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
0 
0 
Interest Cost
0 
0 
Expected Return on Plan Assets
0 
0 
Amortization of Actuarial (Gain) Loss
 
0 
Amortization of Prior Service Cost
0 
 
Net Periodic Benefit Cost
$ 0 
$ 0 
Segment information Segment Information (narrative Detail (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting Information [Line Items]
 
 
Net investment income
$ 745 
$ 674 
Segment Life [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net investment income
75 
67 
Management Underwriting Income (Loss)
64 
 
Gains Losses On Fair Value Changes In Separate Account Assets
$ 30 
 
Segment Information (Operations By Segment) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting Information [Line Items]
 
 
Net premiums written
$ 6,710 
$ 5,995 
Net premiums earned
6,772 
6,597 
Losses and loss expenses
3,789 
3,674 
Policy benefits
168 
126 
Policy acquisition costs
1,397 
1,413 
Administrative expenses
676 
772 
Underwriting income (loss)
742 
612 
Net investment income
745 
674 
Other (income) expense
(70)
28 
Amortization of purchased intangibles
64 
7 
Segment Income (loss)
1,493 
1,251 
Net realized gains (losses) including OTTI
(7)
(394)
Interest expense
154 
146 
Chubb integration expenses
111 
148 
Income tax expense
128 
124 
Net income
1,093 
439 
North America Commercial P&C Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
2,742 
2,302 
Net premiums earned
3,041 
2,896 
Losses and loss expenses
1,860 
1,747 
Policy benefits
0 
0 
Policy acquisition costs
487 
482 
Administrative expenses
231 
266 
Underwriting income (loss)
463 
401 
Net investment income
478 
426 
Other (income) expense
4 
0 
Amortization of purchased intangibles
0 
0 
Segment Income (loss)
937 
827 
North America Personal P&C Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
984 
871 
Net premiums earned
1,086 
1,024 
Losses and loss expenses
633 
661 
Policy benefits
0 
0 
Policy acquisition costs
217 
249 
Administrative expenses
65 
88 
Underwriting income (loss)
171 
26 
Net investment income
55 
47 
Other (income) expense
1 
1 
Amortization of purchased intangibles
3 
8 
Segment Income (loss)
222 
64 
North America Agricultural Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
61 
64 
Net premiums earned
14 
23 
Losses and loss expenses
(73)
(30)
Policy benefits
0 
0 
Policy acquisition costs
(1)
4 
Administrative expenses
(5)
(4)
Underwriting income (loss)
93 
53 
Net investment income
6 
5 
Other (income) expense
0 
0 
Amortization of purchased intangibles
7 
7 
Segment Income (loss)
92 
51 
Overseas General Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
2,200 
2,041 
Net premiums earned
1,936 
1,955 
Losses and loss expenses
1,071 
1,021 
Policy benefits
0 
0 
Policy acquisition costs
529 
503 
Administrative expenses
245 
263 
Underwriting income (loss)
91 
168 
Net investment income
148 
146 
Other (income) expense
(1)
(5)
Amortization of purchased intangibles
11 
11 
Segment Income (loss)
229 
308 
Global Reinsurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
199 
201 
Net premiums earned
189 
202 
Losses and loss expenses
94 
89 
Policy benefits
0 
0 
Policy acquisition costs
51 
53 
Administrative expenses
10 
14 
Underwriting income (loss)
34 
46 
Net investment income
62 
67 
Other (income) expense
0 
(1)
Amortization of purchased intangibles
0 
0 
Segment Income (loss)
96 
114 
Life Insurance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
524 
516 
Net premiums earned
506 
497 
Losses and loss expenses
193 
177 
Policy benefits
168 
126 
Policy acquisition costs
114 
122 
Administrative expenses
72 
72 
Underwriting income (loss)
(41)
0 
Net investment income
75 
67 
Other (income) expense
(29)
6 
Amortization of purchased intangibles
1 
1 
Segment Income (loss)
62 
60 
Corporate And Other [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net premiums written
0 
0 
Net premiums earned
0 
0 
Losses and loss expenses
11 
9 
Policy benefits
0 
0 
Policy acquisition costs
0 
0 
Administrative expenses
58 
73 
Underwriting income (loss)
(69)
(82)
Net investment income
(79)
(84)
Other (income) expense
(45)
27 
Amortization of purchased intangibles
42 
(20)
Segment Income (loss)
(145)
(173)
Net realized gains (losses) including OTTI
(7)
(394)
Interest expense
154 
146 
Chubb integration expenses
111 
148 
Income tax expense
128 
124 
Net income
$ (545)
$ (985)
Earnings Per Share (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Earnings Per Share [Abstract]
 
 
Net income
$ 1,093 
$ 439 
Weighted-average shares outstanding
468,903,086 
446,739,586 
Share-based compensation plans
3,828,604 
3,270,156 
Weighted-average shares outstanding and assumed conversions
472,731,690 
450,009,742 
Basic earnings per share (US$ per share)
$ 2.33 
$ 0.98 
Diluted earnings per share (US$ per share)
$ 2.31 
$ 0.97 
Potential anti-dilutive share conversions
969,654 
2,074,308 
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details)
Mar. 31, 2017
Debt Instrument [Line Items]
 
Equity Method Investment, Ownership Percentage
100.00% 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Mar. 31, 2016
Dec. 31, 2015
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
$ 99,491 
$ 99,094 
 
 
Cash
1,063 1 2
985 1 3
1,091 4
1,775 4
Insurance and reinsurance balances receivable
8,880 
8,970 
 
 
Reinsurance recoverable on losses and loss expenses
13,769 
13,577 
 
 
Reinsurance recoverable on policy benefits
187 
182 
 
 
Value of business acquired
345 
355 
 
 
Goodwill and other intangible assets
22,061 
22,095 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
15,171 
14,528 
 
 
Total assets
160,967 
159,786 
 
 
Unpaid losses and loss expenses
60,579 
60,540 
60,206 
37,303 
Unearned premiums
14,857 
14,779 
 
 
Future policy benefits
5,086 
5,036 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Affiliated notional cash pooling programs
0 
0 
 
 
Repurchase agreements
1,404 
1,403 
 
 
Short-term debt
300 
500 
 
 
Long-term debt
12,300 
12,610 
 
 
Trust preferred securities
308 
308 
 
 
Other liabilities
16,909 
16,335 
 
 
Total liabilities
111,743 
111,511 
 
 
Total shareholders' equity
49,224 
48,275 
45,897 
 
Total liabilities and shareholders’ equity
160,967 
159,786 
 
 
Chubb Limited (Parent Guarantor)
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
25 
27 
 
 
Cash
6 1 2
1 1 3
2 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
39,156 
38,408 
 
 
Due from subsidiaries and affiliates, net
10,396 
10,482 
 
 
Other assets
4 
3 
 
 
Total assets
49,587 
48,921 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
0 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
0 
0 
 
 
Affiliated notional cash pooling programs
0 2
363 3
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
0 
0 
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
363 
283 
 
 
Total liabilities
363 
646 
 
 
Total shareholders' equity
49,224 
48,275 
 
 
Total liabilities and shareholders’ equity
49,587 
48,921 
 
 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
304 
485 
 
 
Cash
1 1 2
1 1 3
3 4
2 4
Insurance and reinsurance balances receivable
0 
0 
 
 
Reinsurance recoverable on losses and loss expenses
0 
0 
 
 
Reinsurance recoverable on policy benefits
0 
0 
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
50,242 
49,509 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
519 
436 
 
 
Total assets
51,066 
50,431 
 
 
Unpaid losses and loss expenses
0 
0 
 
 
Unearned premiums
0 
0 
 
 
Future policy benefits
0 
0 
 
 
Due to subsidiaries and affiliates, net
10,028 
10,209 
 
 
Affiliated notional cash pooling programs
1,272 2
619 3
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
300 
500 
 
 
Long-term debt
12,289 
12,599 
 
 
Trust preferred securities
308 
308 
 
 
Other liabilities
1,699 
1,582 
 
 
Total liabilities
25,896 
25,817 
 
 
Total shareholders' equity
25,170 
24,614 
 
 
Total liabilities and shareholders’ equity
51,066 
50,431 
 
 
Other Chubb Limited Subsidiaries
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
99,162 
98,582 
 
 
Cash
2,328 1 2
1,965 1 3
2,406 4
2,743 4
Insurance and reinsurance balances receivable
10,956 
10,498 
 
 
Reinsurance recoverable on losses and loss expenses
24,015 
24,496 
 
 
Reinsurance recoverable on policy benefits
1,145 
1,153 
 
 
Value of business acquired
345 
355 
 
 
Goodwill and other intangible assets
22,061 
22,095 
 
 
Investments in subsidiaries
0 
0 
 
 
Due from subsidiaries and affiliates, net
0 
0 
 
 
Other assets
18,642 
18,442 
 
 
Total assets
178,654 
177,586 
 
 
Unpaid losses and loss expenses
70,269 
70,683 
 
 
Unearned premiums
18,343 
18,538 
 
 
Future policy benefits
6,044 
6,007 
 
 
Due to subsidiaries and affiliates, net
368 
273 
 
 
Affiliated notional cash pooling programs
0 2
0 3
 
 
Repurchase agreements
1,404 
1,403 
 
 
Short-term debt
0 
0 
 
 
Long-term debt
11 
11 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
17,987 
17,368 
 
 
Total liabilities
114,426 
114,283 
 
 
Total shareholders' equity
64,228 
63,303 
 
 
Total liabilities and shareholders’ equity
178,654 
177,586 
 
 
Consolidating Adjustments and Eliminations
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Investments
0 
0 
 
 
Cash
(1,272)1 2
(982)1 3
(1,320)4
(971)4
Insurance and reinsurance balances receivable
(2,076)
(1,528)
 
 
Reinsurance recoverable on losses and loss expenses
(10,246)
(10,919)
 
 
Reinsurance recoverable on policy benefits
(958)
(971)
 
 
Value of business acquired
0 
0 
 
 
Goodwill and other intangible assets
0 
0 
 
 
Investments in subsidiaries
(89,398)
(87,917)
 
 
Due from subsidiaries and affiliates, net
(10,396)
(10,482)
 
 
Other assets
(3,994)
(4,353)
 
 
Total assets
(118,340)
(117,152)
 
 
Unpaid losses and loss expenses
(9,690)
(10,143)
 
 
Unearned premiums
(3,486)
(3,759)
 
 
Future policy benefits
(958)
(971)
 
 
Due to subsidiaries and affiliates, net
(10,396)
(10,482)
 
 
Affiliated notional cash pooling programs
(1,272)2
(982)3
 
 
Repurchase agreements
0 
0 
 
 
Short-term debt
0 
0 
 
 
Long-term debt
0 
0 
 
 
Trust preferred securities
0 
0 
 
 
Other liabilities
(3,140)
(2,898)
 
 
Total liabilities
(28,942)
(29,235)
 
 
Total shareholders' equity
(89,398)
(87,917)
 
 
Total liabilities and shareholders’ equity
$ (118,340)
$ (117,152)
 
 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Condensed Statement of Income Captions [Line Items]
 
 
Net premiums written
$ 6,710 
$ 5,995 
Net premiums earned
6,772 
6,597 
Net investment income
745 
674 
Equity in earnings of subsidiaries
0 
0 
Net realized gains (losses) including OTTI
(7)
(394)
Losses and loss expenses
3,789 
3,674 
Policy benefits
168 
126 
Policy acquisition costs and administrative expenses
2,073 
2,185 
Interest (income) expense
154 
146 
Other (income) expense
(70)
28 
Amortization of purchased intangibles
64 
7 
Chubb integration expenses
111 
148 
Income tax expense
128 
124 
Net income
1,093 
439 
Comprehensive income (loss)
1,407 
1,541 
Consolidating Adjustments and Eliminations
 
 
Condensed Statement of Income Captions [Line Items]
 
 
Net premiums written
0 
0 
Net premiums earned
0 
0 
Net investment income
0 
0 
Equity in earnings of subsidiaries
(1,728)
(881)
Net realized gains (losses) including OTTI
0 
0 
Losses and loss expenses
0 
0 
Policy benefits
0 
0 
Policy acquisition costs and administrative expenses
0 
0 
Interest (income) expense
0 
0 
Other (income) expense
0 
0 
Amortization of purchased intangibles
0 
0 
Chubb integration expenses
0 
0 
Income tax expense
0 
0 
Net income
(1,728)
(881)
Comprehensive income (loss)
(2,329)
(2,777)
Chubb Limited (Parent Guarantor)
 
 
Condensed Statement of Income Captions [Line Items]
 
 
Net premiums written
0 
0 
Net premiums earned
0 
0 
Net investment income
0 
1 
Equity in earnings of subsidiaries
1,027 
375 
Net realized gains (losses) including OTTI
0 
0 
Losses and loss expenses
0 
0 
Policy benefits
0 
0 
Policy acquisition costs and administrative expenses
18 
17 
Interest (income) expense
(84)
(80)
Other (income) expense
(6)
(9)
Amortization of purchased intangibles
0 
0 
Chubb integration expenses
0 
3 
Income tax expense
6 
6 
Net income
1,093 
439 
Comprehensive income (loss)
1,407 
1,541 
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
Condensed Statement of Income Captions [Line Items]
 
 
Net premiums written
0 
0 
Net premiums earned
0 
0 
Net investment income
3 
4 
Equity in earnings of subsidiaries
701 
506 
Net realized gains (losses) including OTTI
(13)
0 
Losses and loss expenses
0 
0 
Policy benefits
0 
0 
Policy acquisition costs and administrative expenses
14 
36 
Interest (income) expense
221 
215 
Other (income) expense
15 
10 
Amortization of purchased intangibles
0 
0 
Chubb integration expenses
49 
137 
Income tax expense
(112)
(150)
Net income
504 
262 
Comprehensive income (loss)
791 
1,056 
Other Chubb Limited Subsidiaries
 
 
Condensed Statement of Income Captions [Line Items]
 
 
Net premiums written
6,710 
5,995 
Net premiums earned
6,772 
6,597 
Net investment income
742 
669 
Equity in earnings of subsidiaries
0 
0 
Net realized gains (losses) including OTTI
6 
(394)
Losses and loss expenses
3,789 
3,674 
Policy benefits
168 
126 
Policy acquisition costs and administrative expenses
2,041 
2,132 
Interest (income) expense
17 
11 
Other (income) expense
(79)
27 
Amortization of purchased intangibles
64 
7 
Chubb integration expenses
62 
8 
Income tax expense
234 
268 
Net income
1,224 
619 
Comprehensive income (loss)
$ 1,538 
$ 1,721 
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
$ 1,013 
$ 1,020 
Purchase of fixed maturities available for sale Securities Debt Condensed
(6,250)
(8,104)
Purchases of fixed maturities held to maturity
(157)
(77)
Purchases of equity securities
(37)
(33)
Sales of fixed maturities available for sale
3,395 
6,329 
Sales of equity securities
46 
761 
Maturities and redemptions of fixed maturities available for sale
2,543 
1,553 
Maturities and redemptions of fixed maturities held to maturity
240 
249 
Net change in short-term investments
232 
11,932 
Net derivative instruments settlements
(89)
(22)
Acquisition of subsidiaries (net of cash acquired of nil and $57)
0 
(14,262)
Capital contribution
 
0 
Other
17 
59 
Net cash flows used for investing activities
(60)
(1,615)
Cash Acquired from Acquisition
0 
57 
Dividends paid on Common Shares
(324)
(218)
Common Shares repurchased
(128)
0 
Repayment of long-term debt
(500)
0 
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase
753 
853 
Repayments of repurchase agreements
(752)
(853)
Proceeds from share-based compensation plans
42 
51 
Dividend to Parent Company
0 
0 
Advances (to) from affiliates
0 
0 
Capital contribution
 
0 
Net proceeds from (payments to) affiliated notional cash pooling program
0 
0 
Policyholder contract deposits
109 
118 
Policyholder contract withdrawals
(58)
(49)
Other
0 
(4)
Net cash flows used for financing activities
(858)
(102)
Effect of foreign currency rate changes on cash and cash equivalents
(17)
13 
Net increase (decrease) in cash
78 
(684)
Cash – beginning of period
985 1 2
1,775 3
Cash – end of period
1,063 1 4
1,091 3
Chubb Limited (Parent Guarantor)
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
584 
3,272 
Purchase of fixed maturities available for sale Securities Debt Condensed
0 
0 
Purchases of fixed maturities held to maturity
0 
0 
Purchases of equity securities
0 
0 
Sales of fixed maturities available for sale
0 
0 
Sales of equity securities
0 
0 
Maturities and redemptions of fixed maturities available for sale
0 
0 
Maturities and redemptions of fixed maturities held to maturity
0 
0 
Net change in short-term investments
0 
0 
Net derivative instruments settlements
0 
0 
Acquisition of subsidiaries (net of cash acquired of nil and $57)
 
0 
Capital contribution
 
(2,330)
Other
0 
0 
Net cash flows used for investing activities
0 
(2,330)
Dividends paid on Common Shares
(324)
(218)
Common Shares repurchased
0 
 
Repayment of long-term debt
0 
 
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase
0 
0 
Repayments of repurchase agreements
0 
0 
Proceeds from share-based compensation plans
0 
0 
Dividend to Parent Company
0 
0 
Advances (to) from affiliates
108 
(362)
Capital contribution
 
0 
Net proceeds from (payments to) affiliated notional cash pooling program
(363)1
(361)3
Policyholder contract deposits
0 
0 
Policyholder contract withdrawals
0 
0 
Other
 
0 
Net cash flows used for financing activities
(579)
(941)
Effect of foreign currency rate changes on cash and cash equivalents
0 
0 
Net increase (decrease) in cash
5 
1 
Cash – beginning of period
1 1 2
1 3
Cash – end of period
6 1 4
2 3
Chubb INA Holdings Inc (Subsidiary Issuer)
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
(156)
3,109 
Purchase of fixed maturities available for sale Securities Debt Condensed
(4)
0 
Purchases of fixed maturities held to maturity
0 
0 
Purchases of equity securities
0 
0 
Sales of fixed maturities available for sale
0 
0 
Sales of equity securities
0 
0 
Maturities and redemptions of fixed maturities available for sale
7 
0 
Maturities and redemptions of fixed maturities held to maturity
0 
0 
Net change in short-term investments
173 
7,788 
Net derivative instruments settlements
(2)
0 
Acquisition of subsidiaries (net of cash acquired of nil and $57)
 
(14,282)
Capital contribution
 
0 
Other
0 
0 
Net cash flows used for investing activities
174 
(6,494)
Dividends paid on Common Shares
0 
0 
Common Shares repurchased
0 
 
Repayment of long-term debt
(500)
 
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase
0 
0 
Repayments of repurchase agreements
0 
0 
Proceeds from share-based compensation plans
0 
0 
Dividend to Parent Company
0 
0 
Advances (to) from affiliates
(171)
350 
Capital contribution
 
2,330 
Net proceeds from (payments to) affiliated notional cash pooling program
653 1
710 3
Policyholder contract deposits
0 
0 
Policyholder contract withdrawals
0 
0 
Other
 
(4)
Net cash flows used for financing activities
(18)
3,386 
Effect of foreign currency rate changes on cash and cash equivalents
0 
0 
Net increase (decrease) in cash
0 
1 
Cash – beginning of period
1 1 2
2 3
Cash – end of period
1 1 4
3 3
Other Chubb Limited Subsidiaries
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
1,081 
1,011 
Purchase of fixed maturities available for sale Securities Debt Condensed
(6,246)
(8,104)
Purchases of fixed maturities held to maturity
(157)
(77)
Purchases of equity securities
(37)
(33)
Sales of fixed maturities available for sale
3,395 
6,329 
Sales of equity securities
46 
761 
Maturities and redemptions of fixed maturities available for sale
2,536 
1,553 
Maturities and redemptions of fixed maturities held to maturity
240 
249 
Net change in short-term investments
59 
4,144 
Net derivative instruments settlements
(87)
(22)
Acquisition of subsidiaries (net of cash acquired of nil and $57)
 
20 
Capital contribution
 
(2,330)
Other
17 
59 
Net cash flows used for investing activities
(234)
2,549 
Dividends paid on Common Shares
0 
0 
Common Shares repurchased
(128)
 
Repayment of long-term debt
0 
 
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase
753 
853 
Repayments of repurchase agreements
(752)
(853)
Proceeds from share-based compensation plans
42 
51 
Dividend to Parent Company
(496)
(6,372)
Advances (to) from affiliates
63 
12 
Capital contribution
 
2,330 
Net proceeds from (payments to) affiliated notional cash pooling program
0 1
0 3
Policyholder contract deposits
109 
118 
Policyholder contract withdrawals
(58)
(49)
Other
 
0 
Net cash flows used for financing activities
(467)
(3,910)
Effect of foreign currency rate changes on cash and cash equivalents
(17)
13 
Net increase (decrease) in cash
363 
(337)
Cash – beginning of period
1,965 1 2
2,743 3
Cash – end of period
2,328 1 4
2,406 3
Consolidating Adjustments and Eliminations
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
Net cash flows from operating activities
(496)
(6,372)
Purchase of fixed maturities available for sale Securities Debt Condensed
0 
0 
Purchases of fixed maturities held to maturity
0 
0 
Purchases of equity securities
0 
0 
Sales of fixed maturities available for sale
0 
0 
Sales of equity securities
0 
0 
Maturities and redemptions of fixed maturities available for sale
0 
0 
Maturities and redemptions of fixed maturities held to maturity
0 
0 
Net change in short-term investments
0 
0 
Net derivative instruments settlements
0 
0 
Acquisition of subsidiaries (net of cash acquired of nil and $57)
 
0 
Capital contribution
 
4,660 
Other
0 
0 
Net cash flows used for investing activities
0 
4,660 
Dividends paid on Common Shares
0 
0 
Common Shares repurchased
0 
 
Repayment of long-term debt
0 
 
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase
0 
0 
Repayments of repurchase agreements
0 
0 
Proceeds from share-based compensation plans
0 
0 
Dividend to Parent Company
496 
6,372 
Advances (to) from affiliates
0 
0 
Capital contribution
 
(4,660)
Net proceeds from (payments to) affiliated notional cash pooling program
(290)1
(349)
Policyholder contract deposits
0 
0 
Policyholder contract withdrawals
0 
0 
Other
 
0 
Net cash flows used for financing activities
206 
1,363 
Effect of foreign currency rate changes on cash and cash equivalents
0 
0 
Net increase (decrease) in cash
(290)
(349)
Cash – beginning of period
(982)1 2
(971)3
Cash – end of period
$ (1,272)1 4
$ (1,320)3