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

6 Months Ended

Jun. 30, 2014

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

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet at June 30, 2014

(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)		ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries		Consolidating Adjustments and Eliminations			ACE Limited Consolidated
Assets
Investments	$	33	$	11	$	63,576	$	—		$	63,620
Cash(1)	44		1		1,026		(477		)	594
Insurance and reinsurance balances receivable	—		—		6,169		(853		)	5,316
Reinsurance recoverable on losses and loss expenses	—		—		19,609		(8,841		)	10,768
Reinsurance recoverable on policy benefits	—		—		1,260		(1,026		)	234
Value of business acquired	—		—		514		—			514
Goodwill and other intangible assets	—		—		5,522		—			5,522
Investments in subsidiaries	30,207		18,946		—		(49,153		)	—
Due from subsidiaries and affiliates, net	305		—		—		(305		)	—
Other assets	4		295		14,300		(3,720		)	10,879
Total assets	$	30,593	$	19,253	$	111,976	$	(64,375	)	$	97,447
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	45,589	$	(8,412	)	$	37,177
Unearned premiums	—		—		10,154		(1,858		)	8,296
Future policy benefits	—		—		5,804		(1,026		)	4,778
Due to (from) subsidiaries and affiliates, net	—		78		227		(305		)	—
Affiliated notional cash pooling programs(1)	—		477		—		(477		)	—
Short-term debt	—		450		1,401		—			1,851
Long-term debt	—		4,045		12		—			4,057
Trust preferred securities	—		309		—		—			309
Other liabilities	268		1,418		12,112		(3,144		)	10,654
Total liabilities	268		6,777		75,299		(15,222		)	67,122
Total shareholders’ equity	30,325		12,476		36,677		(49,153		)	30,325
Total liabilities and shareholders’ equity	$	30,593	$	19,253	$	111,976	$	(64,375	)	$	97,447

⁽¹⁾  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, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2013

(in millions of U.S. dollars)	ACE Limited (Parent Guarantor)		ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries		Consolidating Adjustments and Eliminations			ACE Limited Consolidated
Assets
Investments	$	32	$	10	$	60,886	$	—		$	60,928
Cash(1)	—		16		748		(185		)	579
Insurance and reinsurance balances receivable	—		—		5,835		(809		)	5,026
Reinsurance recoverable on losses and loss expenses	—		—		20,057		(8,830		)	11,227
Reinsurance recoverable on policy benefits	—		—		1,215		(997		)	218
Value of business acquired	—		—		536		—			536
Goodwill and other intangible assets	—		—		5,404		—			5,404
Investments in subsidiaries	28,351		18,105		—		(46,456		)	—
Due from subsidiaries and affiliates, net	844		—		—		(844		)
Other assets	5		258		13,788		(3,459		)	10,592
Total assets	$	29,232	$	18,389	$	108,469	$	(61,580	)	$	94,510
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	45,714	$	(8,271	)	$	37,443
Unearned premiums	—		—		9,242		(1,703		)	7,539
Future policy benefits	—		—		5,612		(997		)	4,615
Due to (from) subsidiaries and affiliates, net	—		714		130		(844		)	—
Affiliated notional cash pooling programs(1)	185		—		—		(185		)	—
Short-term debt	—		500		1,401		—			1,901
Long-term debt	—		3,795		12		—			3,807
Trust preferred securities	—		309		—		—			309
Other liabilities	222		1,318		11,655		(3,124		)	10,071
Total liabilities	407		6,636		73,766		(15,124		)	65,685
Total shareholders’ equity	28,825		11,753		34,703		(46,456		)	28,825
Total liabilities and shareholders’ equity	$	29,232	$	18,389	$	108,469	$	(61,580	)	$	94,510

⁽¹⁾  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, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement Of Operations and Comprehensive Income

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended June 30, 2014	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net premiums written	$	—		$	—		$	4,559		$	—		$	4,559
Net premiums earned	—			—			4,332			—			4,332
Net investment income	1			1			554			—			556
Equity in earnings of subsidiaries	745			231			—			(976		)	—
Net realized gains (losses) including OTTI	—			8			(81		)	—			(73		)
Losses and loss expenses	—			—			2,388			—			2,388
Policy benefits	—			—			144			—			144
Policy acquisition costs and administrative expenses	22			8			1,294			—			1,324
Interest (income) expense	(9		)	70			11			—			72
Other (income) expense	(50		)	6			19			—			(25		)
Income tax expense (benefit)	4			(25		)	154			—			133
Net income	$	779		$	181		$	795		$	(976	)	$	779
Comprehensive income	$	1,348		$	511		$	1,364		$	(1,875	)	$	1,348

Condensed Consolidating Statements of Operations and Comprehensive Income (Revised)

For the Three Months Ended June 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net premiums written	$	—		$	—		$	4,391		$	—		$	4,391
Net premiums earned	—			—			4,067			—			4,067
Net investment income	1			1			532			—			534
Equity in earnings of subsidiaries	842			257			—			(1,099		)	—
Net realized gains (losses) including OTTI	—			—			104			—			104
Losses and loss expenses	—			—			2,250			—			2,250
Policy benefits	—			—			110			—			110
Policy acquisition costs and administrative expenses	12			5			1,212			—			1,229
Interest (income) expense	(8		)	69			12			—			73
Other (income) expense	(57		)	6			88			—			37
Income tax expense (benefit)	5			(33		)	143			—			115
Net income	$	891		$	211		$	888		$	(1,099	)	$	891
Comprehensive loss	$	(499	)	$	(533	)	$	(502	)	$	1,035		$	(499	)

Condensed Consolidating Statements of Operations and Comprehensive Income (As previously reported)

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)
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	)

⁽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

For the Six Months Ended June 30, 2014	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net premiums written	$	—		$	—		$	8,744		$	—		$	8,744
Net premiums earned	—			—			8,302			—			8,302
Net investment income	1			1			1,107			—			1,109
Equity in earnings of subsidiaries	1,447			411			—			(1,858		)	—
Net realized gains (losses) including OTTI	—			7			(184		)	—			(177		)
Losses and loss expenses	—			—			4,549			—			4,549
Policy benefits	—			—			258			—			258
Policy acquisition costs and administrative expenses	39			14			2,534			—			2,587
Interest (income) expense	(19		)	141			21			—			143
Other (income) expense	(92		)	20			30			—			(42		)
Income tax expense (benefit)	7			(55		)	274			—			226
Net income	$	1,513		$	299		$	1,559		$	(1,858	)	$	1,513
Comprehensive income	$	2,456		$	777		$	2,502		$	(3,279	)	$	2,456

Condensed Consolidating Statements of Operations and Comprehensive Income (Revised)

For the Six Months Ended June 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries		Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net premiums written	$	—		$	—		$	8,189	$	—		$	8,189
Net premiums earned	—			—			7,640		—			7,640
Net investment income	1			2			1,062		—			1,065
Equity in earnings of subsidiaries	1,756			445			—		(2,201		)	—
Net realized gains (losses) including OTTI	12			—			298		—			310
Losses and loss expenses	—			—			4,176		—			4,176
Policy benefits	—			—			241		—			241
Policy acquisition costs and administrative expenses	27			9			2,321		—			2,357
Interest (income) expense	(15		)	131			17		—			133
Other (income) expense	(95		)	15			107		—			27
Income tax expense (benefit)	8			(66		)	295		—			237
Net income	$	1,844		$	358		$	1,843	$	(2,201	)	$	1,844
Comprehensive income (loss)	$	217		$	(534	)	$	216	$	318		$	217

Condensed Consolidating Statements of Operations and Comprehensive Income (As previously reported)

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 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

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

⁽²⁾  Includes ACE Limited parent company eliminations.

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 30, 2014	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from (used for) operating activities	$	83		$	(7	)	$	2,020		$	—		$	2,096
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(7,963		)	3			(7,960		)
Purchases of fixed maturities held to maturity	—			—			(129		)	—			(129		)
Purchases of equity securities	—			—			(64		)	—			(64		)
Sales of fixed maturities available for sale	—			—			3,845			(3		)	3,842
Sales of equity securities	—			—			45			—			45
Maturities and redemptions of fixed maturities available for sale	—			—			3,163			—			3,163
Maturities and redemptions of fixed maturities held to maturity	—			—			414			—			414
Net change in short-term investments	(1		)	(1		)	(293		)	—			(295		)
Net derivative instruments settlements	—			(7		)	(178		)	—			(185		)
Acquisition of subsidiaries (net of cash acquired of $4)	—			—			(172		)	—			(172		)
Other	—			(3		)	(115		)	—			(118		)
Net cash flows used for investing activities	(1		)	(11		)	(1,447		)	—			(1,459		)
Cash flows from financing activities
Dividends paid on Common Shares	(428		)	—			—			—			(428		)
Common Shares repurchased	—			—			(557		)	—			(557		)
Proceeds from issuance of long-term debt	—			699			—			—			699
Repayment of long-term debt	—			(500		)	—			—			(500		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			75			—			75
Advances (to) from affiliates	575			(667		)	92			—			—
Net proceeds from (payments to) affiliated notional cash pooling programs(1)	(185		)	477			—			(292		)	—
Other	—			(6		)	92			—			86
Net cash flows (used for) from financing activities	(38		)	3			(298		)	(292		)	(625		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			3			—			3
Net increase (decrease) in cash	44			(15		)	278			(292		)	15
Cash – beginning of period(1)	—			16			748			(185		)	579
Cash – end of period(1)	$	44		$	1		$	1,026		$	(477	)	$	594

⁽¹⁾  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, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows (Revised)

For the Six Months Ended June 30, 2013	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries			Consolidating Adjustments and Eliminations			ACE Limited Consolidated
(in millions of U.S. dollars)
Net cash flows from (used for) operating activities	$	18		$	(38	)	$	1,828		$	—		$	1,808
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(10,907		)	103			(10,804		)
Purchases of fixed maturities held to maturity	—			—			(299		)	—			(299		)
Purchases of equity securities	—			—			(194		)	—			(194		)
Sales of fixed maturities available for sale	—			—			5,499			(103		)	5,396
Sales of equity securities	—			—			62			—			62
Maturities and redemptions of fixed maturities available for sale	—			—			4,112			—			4,112
Maturities and redemptions of fixed maturities held to maturity	—			—			908			—			908
Net change in short-term investments	—			3			(140		)	—			(137		)
Net derivative instruments settlements	—			—			(317		)	—			(317		)
Acquisition of subsidiaries (net of cash acquired of $38)	—			—			(977		)	—			(977		)
Capital contribution	(119		)	(1,010		)	—			1,129			—
Other	—			—			(126		)	—			(126		)
Net cash flows used for investing activities	(119		)	(1,007		)	(2,379		)	1,129			(2,376		)
Cash flows from financing activities
Dividends paid on Common Shares	(169		)	—			—			—			(169		)
Common Shares repurchased	—			—			(212		)	—			(212		)
Net proceeds from issuance of long-term debt	—			947			—			—			947
Advances (to) from affiliates	(352		)	352			—			—			—
Net payments to affiliated notional cash pooling programs(1)	513			(253		)	—			(260		)	—
Proceeds from exercise of options for Common Shares	6			—			56			—			62
Capital contribution	—			—			1,129			(1,129		)	—
Other	—			—			30			—			30
Net cash flows from (used for) financing activities	(2		)	1,046			1,003			(1,389		)	658
Effect of foreign currency rate changes on cash and cash equivalents	—			—			(26		)	—			(26		)
Net increase (decrease) in cash	(103		)	1			426			(260		)	64
Cash – beginning of period(1)	103			2			859			(349		)	615
Cash – end of period(1)	$	—		$	3		$	1,285		$	(609	)	$	679

⁽¹⁾  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 (As previously reported)

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.