Investments (Tables)

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Schedule Of Amortized Cost And Fair Value Of Fixed Maturities And Related OTTI Recognized In AOCI

December 31, 2014	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	$	2,741	$	87	$	(8	)	$	2,820	$	—
Foreign	14,703		629		(90		)	15,242		—
Corporate securities	16,897		704		(170		)	17,431		(7		)
Mortgage-backed securities	10,011		304		(29		)	10,286		(1		)
States, municipalities, and political subdivisions	3,474		147		(5		)	3,616		—
	$	47,826	$	1,871	$	(302	)	$	49,395	$	(8	)
Held to maturity
U.S. Treasury and agency	$	832	$	20	$	(2	)	$	850	$	—
Foreign	916		47		—			963		—
Corporate securities	2,323		102		(2		)	2,423		—
Mortgage-backed securities	1,983		57		(1		)	2,039		—
States, municipalities, and political subdivisions	1,277		40		(3		)	1,314		—
	$	7,331	$	266	$	(8	)	$	7,589	$	—

December 31, 2013	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	$	2,946	$	62	$	(59	)	$	2,949	$	—
Foreign	14,336		377		(122		)	14,591		—
Corporate securities	16,825		777		(132		)	17,470		(6		)
Mortgage-backed securities	10,937		184		(227		)	10,894		(34		)
States, municipalities, and political subdivisions	3,362		65		(77		)	3,350		—
	$	48,406	$	1,465	$	(617	)	$	49,254	$	(40	)
Held to maturity
U.S. Treasury and agency	$	820	$	16	$	(4	)	$	832	$	—
Foreign	864		33		—			897		—
Corporate securities	1,922		83		—			2,005		—
Mortgage-backed securities	1,341		39		(1		)	1,379		—
States, municipalities, and political subdivisions	1,151		16		(17		)	1,150		—
	$	6,098	$	187	$	(22	)	$	6,263	$	—

Schedule Of Fixed Maturities By Contractual Maturity

The following table presents fixed maturities by contractual maturity:

	December 31				December 31
			2014				2013
(in millions of U.S. dollars)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
Due in 1 year or less	$	2,187	$	2,206	$	2,387	$	2,411
Due after 1 year through 5 years	15,444		15,857		14,139		14,602
Due after 5 years through 10 years	15,663		16,089		16,200		16,535
Due after 10 years	4,521		4,957		4,743		4,812
	37,815		39,109		37,469		38,360
Mortgage-backed securities	10,011		10,286		10,937		10,894
	$	47,826	$	49,395	$	48,406	$	49,254
Held to maturity
Due in 1 year or less	$	353	$	355	$	401	$	405
Due after 1 year through 5 years	2,603		2,693		2,284		2,363
Due after 5 years through 10 years	1,439		1,489		1,686		1,723
Due after 10 years	953		1,013		386		393
	5,348		5,550		4,757		4,884
Mortgage-backed securities	1,983		2,039		1,341		1,379
	$	7,331	$	7,589	$	6,098	$	6,263

Schedule Of Cost And Fair Value Of Equity Securities

	December 31			December 31
(in millions of U.S. dollars)	2014			2013
Cost	$	440		$	841
Gross unrealized appreciation	83			63
Gross unrealized depreciation	(13		)	(67		)
Fair value	$	510		$	837

Schedule Of Default Assumptions By Moody's Rating Category

The following table presents default assumptions by Moody's rating category (historical mean default rate provided for comparison):

Moody's Rating Category	1-in-100 Year Default Rate		Historical Mean Default Rate
Investment Grade:
Aaa-Baa	0.0-1.3%		0.0-0.3%
Below Investment Grade:
Ba	4.9	%	1.1	%
B	12.7	%	3.4	%
Caa-C	50.5	%	13.1	%

Schedule Of Net Realized Gains (Losses) And The Losses Included In Net Realized Gains (Losses) And OCI

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” and the change in net unrealized appreciation (depreciation) of investments: 

	Years Ended December 31
(in millions of U.S. dollars)	2014			2013			2012
Fixed maturities:
OTTI on fixed maturities, gross	$	(64	)	$	(18	)	$	(26	)
OTTI on fixed maturities recognized in OCI (pre-tax)	7			—			1
OTTI on fixed maturities, net	(57		)	(18		)	(25		)
Gross realized gains excluding OTTI	213			237			388
Gross realized losses excluding OTTI	(133		)	(129		)	(133		)
Total fixed maturities	23			90			230
Equity securities:
OTTI on equity securities	(8		)	(2		)	(5		)
Gross realized gains excluding OTTI	22			21			11
Gross realized losses excluding OTTI	(61		)	(4		)	(2		)
Total equity securities	(47		)	15			4
OTTI on other investments	(3		)	(2		)	(7		)
Foreign exchange gains (losses)	(40		)	29			(16		)
Investment and embedded derivative instruments	(107		)	78			(6		)
Fair value adjustments on insurance derivative	(217		)	878			171
S&P put options and futures	(168		)	(579		)	(297		)
Other derivative instruments	50			(2		)	(4		)
Other	2			(3		)	3
Net realized gains (losses)	(507		)	504			78
Change in net unrealized appreciation (depreciation) on investments:
Fixed maturities available for sale	734			(1,798		)	1,099
Fixed maturities held to maturity	(2		)	(82		)	(94		)
Equity securities	77			(41		)	61
Other	35			54			50
Income tax (expense) benefit	(167		)	408			(198		)
Change in net unrealized appreciation (depreciation) on investments	677			(1,459		)	918
Total net realized gains (losses) and change in net unrealized appreciation (depreciation) on investments	$	170		$	(955	)	$	996

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: 

	Years Ended December 31
(in millions of U.S. dollars)	2014			2013			2012
Balance of credit losses related to securities still held – beginning of year	$	37		$	43		$	74
Additions where no OTTI was previously recorded	22			9			8
Additions where an OTTI was previously recorded	5			3			12
Reductions for securities sold during the period	(36		)	(18		)	(51		)
Balance of credit losses related to securities still held – end of year	$	28		$	37		$	43

Schedule Of Other Investments

			December 31				December 31
			2014				2013
(in millions of U.S. dollars)	Fair Value		Cost		Fair Value		Cost
Investment funds	$	378	$	228	$	428	$	278
Limited partnerships	691		497		576		424
Partially-owned investment companies	1,492		1,492		1,284		1,284
Life insurance policies	205		205		180		180
Policy loans	187		187		179		179
Trading securities	290		287		276		273
Other	103		103		53		53
Total	$	3,346	$	2,999	$	2,976	$	2,671

Schedule Of Partially Owned Insurance Companies

	December 31						December 31
	2014						2013
(in millions of U.S. dollars, except for percentages)	Carrying Value		Issued  Share Capital		Ownership Percentage		Carrying Value		Issued Share Capital		Ownership Percentage		Domicile
Huatai Group	$	397	$	638	20.0	%	$	365	$	631	20.0	%	China
Huatai Life Insurance Company	86		438		20.0	%	84		379		20.0	%	China
Freisenbruch-Meyer	9		5		40.0	%	9		5		40.0	%	Bermuda
ACE Cooperative Insurance Co. – Saudi Arabia	10		27		30.0	%	10		27		30.0	%	Saudi Arabia
Russian Reinsurance Company	2		4		23.3	%	2		4		23.3	%	Russia
Total	$	504	$	1,112			$	470	$	1,046

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
December 31, 2014	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	$	350	$	(1	)	$	666	$	(9	)	$	1,016	$	(10	)
Foreign	2,262		(75		)	375		(15		)	2,637		(90		)
Corporate securities	4,684		(150		)	738		(22		)	5,422		(172		)
Mortgage-backed securities	704		(2		)	1,663		(28		)	2,367		(30		)
States, municipalities, and political subdivisions	458		(3		)	490		(5		)	948		(8		)
Total fixed maturities	8,458		(231		)	3,932		(79		)	12,390		(310		)
Equity securities	101		(13		)	—		—			101		(13		)
Total	$	8,559	$	(244	)	$	3,932	$	(79	)	$	12,491	$	(323	)

	0 – 12 Months					Over 12 Months					Total
December 31, 2013	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	$	1,794	$	(57	)	$	31	$	(6	)	$	1,825	$	(63	)
Foreign	4,621		(114		)	201		(8		)	4,822		(122		)
Corporate securities	3,836		(118		)	194		(14		)	4,030		(132		)
Mortgage-backed securities	5,248		(197		)	384		(31		)	5,632		(228		)
States, municipalities, and political subdivisions	2,164		(90		)	84		(4		)	2,248		(94		)
Total fixed maturities	17,663		(576		)	894		(63		)	18,557		(639		)
Equity securities	498		(67		)	—		—			498		(67		)
Other investments	67		(9		)	—		—			67		(9		)
Total	$	18,228	$	(652	)	$	894	$	(63	)	$	19,122	$	(715	)

Schedule Of Sources Of Net Investment Income

	Years Ended December 31
(in millions of U.S. dollars)	2014			2013			2012
Fixed maturities	$	2,199		$	2,093		$	2,134
Short-term investments	45			29			28
Equity securities	33			37			34
Other	94			105			104
Gross investment income	2,371			2,264			2,300
Investment expenses	(119		)	(120		)	(119		)
Net investment income	$	2,252		$	2,144		$	2,181

Schedule Of Components Of Restricted Assets

The following table presents the components of restricted assets: 

	December 31		December 31
(in millions of U.S. dollars)	2014		2013
Trust funds	$	10,838	$	11,315
Deposits with non-U.S. regulatory authorities	2,305		1,970
Assets pledged under repurchase agreements	1,431		1,435
Deposits with U.S. regulatory authorities	1,345		1,334
Other pledged assets	457		391
	$	16,376	$	16,445