Information provided in connection with outstanding debt of subsidiaries (Tables)

6 Months Ended

Jun. 30, 2013

Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract]

Condensed Consolidating Balance Sheet at June 30, 2013



(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Assets
Investments	$	29		$	31,387	$	28,274		$	—		$	59,690
Cash⁽³⁾	(513		)	583		609			—			679
Insurance and reinsurance balances receivable	—			4,371		651			—			5,022
Reinsurance recoverable on losses and loss expenses	—			16,277		(4,835		)	—			11,442
Reinsurance recoverable on policy benefits	—			1,181		(941		)	—			240
Value of business acquired	—			557		3			—			560
Goodwill and other intangible assets	—			4,843		552			—			5,395
Investments in subsidiaries	27,409			—		—			(27,409		)	—
Due from subsidiaries and affiliates, net	591			—		—			(591		)	—
Other assets	6			8,507		2,147			—			10,660
Total assets	$	27,522		$	67,706	$	26,460		$	(28,000	)	$	93,688
Liabilities
Unpaid losses and loss expenses	$	—		$	30,894	$	6,449		$	—		$	37,343
Unearned premiums	—			6,644		1,207			—			7,851
Future policy benefits	—			3,915		587			—			4,502
Due to (from) subsidiaries and affiliates, net	—			859		(268		)	(591		)	—
Short-term debt	—			1,351		550			—			1,901
Long-term debt	—			3,807		—			—			3,807
Trust preferred securities	—			309		—			—			309
Other liabilities	227			8,557		1,896			—			10,680
Total liabilities	227			56,336		10,421			(591		)	66,393
Total shareholders’ equity	27,295			11,370		16,039			(27,409		)	27,295
Total liabilities and shareholders’ equity	$	27,522		$	67,706	$	26,460		$	(28,000	)	$	93,688


⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations, primarily intercompany reinsurance transactions.


⁽²⁾	Includes ACE Limited parent company eliminations.

⁽³⁾

ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2012



(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)		ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Assets
Investments	$	31	$	31,074	$	29,159		$	—		$	60,264
Cash⁽³⁾	103		515		(3		)	—			615
Insurance and reinsurance balances receivable	—		3,654		493			—			4,147
Reinsurance recoverable on losses and loss expenses	—		17,232		(5,154		)	—			12,078
Reinsurance recoverable on policy benefits	—		1,187		(946		)	—			241
Value of business acquired	—		610		4			—			614
Goodwill and other intangible assets	—		4,419		556			—			4,975
Investments in subsidiaries	27,251		—		—			(27,251		)	—
Due from subsidiaries and affiliates, net	204		—		—			(204		)	—
Other assets	13		7,563		2,035			—			9,611
Total assets	$	27,602	$	66,254	$	26,144		$	(27,455	)	$	92,545
Liabilities
Unpaid losses and loss expenses	$	—	$	31,356	$	6,590		$	—		$	37,946
Unearned premiums	—		5,872		992			—			6,864
Future policy benefits	—		3,876		594			—			4,470
Due to (from) subsidiaries and affiliates, net	—		384		(180		)	(204		)	—
Short-term debt	—		851		550			—			1,401
Long-term debt	—		3,360		—			—			3,360
Trust preferred securities	—		309		—			—			309
Other liabilities	71		8,272		2,321			—			10,664
Total liabilities	71		54,280		10,867			(204		)	65,014
Total shareholders’ equity	27,531		11,974		15,277			(27,251		)	27,531
Total liabilities and shareholders’ equity	$	27,602	$	66,254	$	26,144		$	(27,455	)	$	92,545


⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations, primarily intercompany reinsurance transactions.


⁽²⁾	Includes ACE Limited parent company eliminations.

⁽³⁾

ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2012, 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 (Loss)



For the Three Months Ended June 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾		Consolidating Adjustments ⁽²⁾			ACE Limited Consolidated
(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾		Consolidating Adjustments ⁽²⁾			ACE Limited Consolidated
Net premiums written	$	—		$	2,502		$	1,889	$	—		$	4,391
Net premiums earned	—			2,331			1,736		—			4,067
Net investment income	1			254			279		—			534
Equity in earnings of subsidiaries	842			—			—		(842		)	—
Net realized gains (losses) including OTTI	—			28			76		—			104
Losses and loss expenses	—			1,434			816		—			2,250
Policy benefits	—			63			47		—			110
Policy acquisition costs and administrative expenses	12			674			543		—			1,229
Interest (income) expense	(8		)	74			7		—			73
Other (income) expense	(57		)	65			29		—			37
Income tax expense	5			92			18		—			115
Net income	$	891		$	211		$	631	$	(842	)	$	891
Comprehensive income (loss)	$	(499	)	$	(533	)	$	1,375	$	(842	)	$	(499	)

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)



For the Three Months Ended June 30, 2012	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments ⁽²⁾			ACE Limited Consolidated
(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments ⁽²⁾			ACE Limited Consolidated
Net premiums written	$	—		$	2,327	$	1,803		$	—		$	4,130
Net premiums earned	—			2,196		1,587			—			3,783
Net investment income	1			257		279			—			537
Equity in earnings of subsidiaries	301			—		—			(301		)	—
Net realized gains (losses) including OTTI	2			34		(430		)	—			(394		)
Losses and loss expenses	—			1,325		794			—			2,119
Policy benefits	—			54		48			—			102
Policy acquisition costs and administrative expenses	14			656		463			—			1,133
Interest (income) expense	(8		)	58		12			—			62
Other (income) expense	(33		)	9		58			—			34
Income tax expense	3			119		26			—			148
Net income	$	328		$	266	$	35		$	(301	)	$	328
Comprehensive income (loss)	$	457		$	323	$	(22	)	$	(301	)	$	457


⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.


⁽²⁾	Includes ACE Limited parent company eliminations.

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)



For the Six Months Ended June 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾		Consolidating Adjustments ⁽²⁾			ACE Limited Consolidated
(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾		Consolidating Adjustments ⁽²⁾			ACE Limited Consolidated
Net premiums written	$	—		$	4,584		$	3,605	$	—		$	8,189
Net premiums earned	—			4,337			3,303		—			7,640
Net investment income	1			502			562		—			1,065
Equity in earnings of subsidiaries	1,756			—			—		(1,756		)	—
Net realized gains (losses) including OTTI	12			38			260		—			310
Losses and loss expenses	—			2,687			1,489		—			4,176
Policy benefits	—			144			97		—			241
Policy acquisition costs and administrative expenses	27			1,300			1,030		—			2,357
Interest (income) expense	(15		)	141			7		—			133
Other (income) expense	(95		)	99			23		—			27
Income tax expense	8			148			81		—			237
Net income	$	1,844		$	358		$	1,398	$	(1,756	)	$	1,844
Comprehensive income (loss)	$	217		$	(534	)	$	2,290	$	(1,756	)	$	217

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Six Months Ended June 30, 2012	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments ⁽²⁾			ACE Limited Consolidated
(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments ⁽²⁾			ACE Limited Consolidated
Net premiums written	$	—		$	4,425	$	3,277		$	—		$	7,702
Net premiums earned	—			4,148		3,016			—			7,164
Net investment income	1			522		558			—			1,081
Equity in earnings of subsidiaries	1,229			—		—			(1,229		)	—
Net realized gains (losses) including OTTI	22			60		(216		)	—			(134		)
Losses and loss expenses	—			2,507		1,416			—			3,923
Policy benefits	—			140		109			—			249
Policy acquisition costs and administrative expenses	26			1,296		903			—			2,225
Interest (income) expense	(17		)	124		17			—			124
Other (income) expense	(63		)	34		60			—			31
Income tax expense	5			204		49			—			258
Net income	$	1,301		$	425	$	804		$	(1,229	)	$	1,301
Comprehensive income	$	1,728		$	610	$	619		$	(1,229	)	$	1,728


⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.


⁽²⁾	Includes ACE Limited parent company eliminations.

Condensed Consolidating Statement of Cash Flows



For the Six Months Ended June 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	95		$	876		$	837		$	—		$	1,808
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(6,604		)	(4,337		)	—			(10,941		)
Purchases of fixed maturities held to maturity	—			(284		)	(15		)	—			(299		)
Purchases of equity securities	—			(161		)	(33		)	—			(194		)
Sales of fixed maturities available for sale	—			3,571			1,825			—			5,396
Sales of equity securities	—			51			11			—			62
Maturities and redemptions of fixed maturities available for sale	—			1,839			2,273			—			4,112
Maturities and redemptions of fixed maturities held to maturity	—			613			295			—			908
Net derivative instruments settlements	—			10			(327		)	—			(317		)
Advances to affiliates	(429		)	—			—			429			—
Acquisition of subsidiaries (net of cash acquired of $38)	—			(977		)	—			—			(977		)
Capital contribution	(119		)	—			—			119			—
Other	—			(154		)	28			—			(126		)
Net cash flows used for investing activities	(548		)	(2,096		)	(280		)	548			(2,376		)
Cash flows from financing activities
Dividends paid on Common Shares	(169		)	—			—			—			(169		)
Common Shares repurchased	—			—			(212		)	—			(212		)
Proceeds from issuance of long-term debt	—			947			—			—			947
Proceeds from share-based compensation plans, including windfall tax benefits	6			(4		)	60			—			62
Advances from affiliates	—			352			77			(429		)	—
Capital contribution	—			—			119			(119		)	—
Other	—			30			—			—			30
Net cash flows from (used for) financing activities	(163		)	1,325			44			(548		)	658
Effect of foreign currency rate changes on cash and cash equivalents	—			(37		)	11			—			(26		)
Net increase (decrease) in cash	(616		)	68			612			—			64
Cash – beginning of period⁽³⁾	103			515			(3		)	—			615
Cash – end of period⁽³⁾	$	(513	)	$	583		$	609		$	—		$	679


⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.


⁽²⁾	Includes ACE Limited parent company eliminations and certain consolidating adjustments.

⁽³⁾

ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows



For the Six Months Ended June 30, 2012	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from operating activities	$	49		$	540		$	794		$	—		$	1,383
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(5,614		)	(6,073		)	—			(11,687		)
Purchases of fixed maturities held to maturity	—			(134		)	(2		)	—			(136		)
Purchases of equity securities	—			(57		)	(36		)	—			(93		)
Sales of fixed maturities available for sale	—			3,750			4,282			—			8,032
Sales of equity securities	—			28			5			—			33
Maturities and redemptions of fixed maturities available for sale	—			1,158			1,122			—			2,280
Maturities and redemptions of fixed maturities held to maturity	—			527			212			—			739
Net derivative instruments settlements	(1		)	(6		)	(126		)	—			(133		)
Advances from affiliates	131			—			—			(131		)	—
Acquisition of subsidiaries	—			(30		)	—			—			(30		)
Capital contribution	—			—			(90		)	90			—
Other	—			(140		)	(115		)	—			(255		)
Net cash flows from (used for) investing activities	130			(518		)	(821		)	(41		)	(1,250		)
Cash flows from financing activities
Dividends paid on Common Shares	(318		)	—			—			—			(318		)
Common Shares repurchased	—			—			(11		)	—			(11		)
Net proceeds from issuance of short-term debt	—			—			151			—			151
Proceeds from share-based compensation plans	3			—			52			—			55
Advances from (to) affiliates	—			23			(154		)	131			—
Capital contribution	—			90			—			(90		)	—
Net cash flows from (used for) financing activities	(315		)	113			38			41			(123		)
Effect of foreign currency rate changes on cash and cash equivalents	—			(9		)	2			—			(7		)
Net increase (decrease) in cash	(136		)	126			13			—			3
Cash – beginning of period	106			382			126			—			614
Cash – end of period⁽³⁾	$	(30	)	$	508		$	139		$	—		$	617


⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.


⁽²⁾	Includes ACE Limited parent company eliminations and certain consolidating adjustments.

⁽³⁾

ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.