Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Included in Goodwill and other intangible assets in the consolidated balance sheets at December 31, 2014 and 2013, are goodwill of $4.9 billion and $4.6 billion, respectively, and other intangible assets of $820 million and $801 million, respectively.

The following table presents a roll-forward of Goodwill by segment:



(in millions of U.S. dollars)	Insurance – North American P&C			Insurance – North American Agriculture		Insurance – Overseas General			Global Reinsurance		Life			ACE Consolidated
Balance at December 31, 2012	$	1,219		$	134	$	1,764		$	365	$	837		$	4,319
Acquisition of Fianzas Monterrey	—			—		135			—		—			135
Acquisition of ABA Seguros	—			—		283			—		—			283
Foreign exchange revaluation and other	(4		)	—		(128		)	—		(2		)	(134		)
Balance at December 31, 2013	$	1,215		$	134	$	2,054		$	365	$	835		$	4,603
Purchase price allocation adjustment	—			—		4			—		—			4
Acquisition of Samaggi	—			—		46			—		—			46
Acquisition of Itaú Seguros	—			—		449			—		—			449
Foreign exchange revaluation and other	(4		)	—		(187		)	—		(7		)	(198		)
Balance at December 31, 2014	$	1,211		$	134	$	2,366		$	365	$	828		$	4,904

Included in other intangible assets at December 31, 2014 and 2013, are intangible assets subject to amortization of $717 million and $695 million, respectively, and intangible assets not subject to amortization of $103 million and $106 million, respectively. Intangible assets subject to amortization include agency relationships, software, client lists, renewal rights, and trademarks, primarily attributable to the acquisitions of Rain and Hail, Samaggi, ABA Seguros, Itaú Seguros, and Fianzas Monterrey. The majority of the balance of intangible assets not subject to amortization relates to Lloyd's of London (Lloyd's) Syndicate 2488 (Syndicate 2488) capacity. Amortization expense related to other intangible assets amounted to $108 million, $95 million, and $51 million for the years ended December 31, 2014, 2013, and 2012, respectively.

The following table presents a roll-forward of VOBA:



(in millions of U.S. dollars)	2014			2013			2012
Balance, beginning of year	$	536		$	614		$	676
Amortization expense	(51		)	(64		)	(82		)
Foreign exchange revaluation	(19		)	(14		)	20
Balance, end of year	$	466		$	536		$	614

The following table presents estimated amortization expense related to other intangible assets and VOBA for the next five years:



For the Year Ending December 31	Other intangible assets		VOBA
(in millions of U.S. dollars)	Other intangible assets		VOBA
2015	$	97	$	44
2016	75		41
2017	67		37
2018	61		33
2019	55		30
Total	$	355	$	185

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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