Information provided in connection with outstanding debt of subsidiaries

In connection with the Chubb Corp acquisition, Chubb INA Holdings Inc., entered into a series of intercompany loans totaling $10 billion involving its parents, Chubb Group Holdings Inc. and Chubb Limited. The weighted-average interest rate is 3.3 percent with fixed interest rates ranging from 2.3 percent to 4.35 percent and various maturity dates from 2021 to 2046.

As part of the acquisition, Chubb INA Holdings Inc. assumed $3.3 billion par value outstanding debt of Chubb Corp, fair valued at $3.8 billion at the acquisition date. Chubb INA Holdings Inc. assumed Chubb Corp's rights, duties and obligations and Chubb Limited fully and unconditionally guarantees Chubb INA Holding Inc.'s payment obligations under these debts.

The following tables present condensed consolidating financial information at June 30, 2016 and December 31, 2015, and for the three and six months ended June 30, 2016 and 2015 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). The transactions noted above are reflected in the tables below. 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 June 30, 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	$	618	$	99,201	$	—		$	99,846
Cash ⁽¹⁾	1		207		1,825		(1,022		)	1,011
Insurance and reinsurance balances receivable	—		—		12,095		(3,563		)	8,532
Reinsurance recoverable on losses and loss expenses	—		—		23,071		(9,836		)	13,235
Reinsurance recoverable on policy benefits	—		—		1,185		(986		)	199
Value of business acquired	—		—		381		—			381
Goodwill and other intangible assets	—		—		22,923		—			22,923
Investments in subsidiaries	37,011		49,412		—		(86,423		)	—
Due from subsidiaries and affiliates, net	11,179		—		—		(11,179		)	—
Other assets	7		522		17,962		(4,415		)	14,076
Total assets	$	48,225	$	50,759	$	178,643	$	(117,424	)	$	160,203
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	70,026	$	(9,207	)	$	60,819
Unearned premiums	—		—		18,999		(3,770		)	15,229
Future policy benefits	—		—		5,961		(986		)	4,975
Due to subsidiaries and affiliates, net	—		11,036		143		(11,179		)	—
Affiliated notional cash pooling programs ⁽¹⁾	776		246		—		(1,022		)	—
Repurchase agreements	—		—		1,405		—			1,405
Short-term debt	—		500		—		—			500
Long-term debt	—		12,620		11		—			12,631
Trust preferred securities	—		308		—		—			308
Other liabilities	223		1,608		20,116		(4,837		)	17,110
Total liabilities	999		26,318		116,661		(31,001		)	112,977
Total shareholders’ equity	47,226		24,441		61,982		(86,423		)	47,226
Total liabilities and shareholders’ equity	$	48,225	$	50,759	$	178,643	$	(117,424	)	$	160,203

⁽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 June 30, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2015



(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	$	28	$	7,839	$	58,384	$	—		$	66,251
Cash ⁽¹⁾	1		2		2,743		(971		)	1,775
Insurance and reinsurance balances receivable	—		—		6,075		(752		)	5,323
Reinsurance recoverable on losses and loss expenses	—		—		20,124		(8,738		)	11,386
Reinsurance recoverable on policy benefits	—		—		1,129		(942		)	187
Value of business acquired	—		—		395		—			395
Goodwill and other intangible assets	—		—		5,683		—			5,683
Investments in subsidiaries	29,612		18,386		—		(47,998		)	—
Due from subsidiaries and affiliates, net	644		1,800		—		(2,444		)	—
Other assets	8		457		14,434		(3,593		)	11,306
Total assets	$	30,293	$	28,484	$	108,967	$	(65,438	)	$	102,306
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	45,490	$	(8,187	)	$	37,303
Unearned premiums	—		—		10,243		(1,804		)	8,439
Future policy benefits	—		—		5,749		(942		)	4,807
Due to subsidiaries and affiliates, net	—		—		2,444		(2,444		)	—
Affiliated notional cash pooling programs ⁽¹⁾	882		89		—		(971		)	—
Repurchase agreements	—		—		1,404		—			1,404
Long-term debt	—		9,378		11		—			9,389
Trust preferred securities	—		307		—		—			307
Other liabilities	276		1,422		12,916		(3,092		)	11,522
Total liabilities	1,158		11,196		78,257		(17,440		)	73,171
Total shareholders’ equity	29,135		17,288		30,710		(47,998		)	29,135
Total liabilities and shareholders’ equity	$	30,293	$	28,484	$	108,967	$	(65,438	)	$	102,306

⁽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, 2015, 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 June 30, 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)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	7,639		$	—		$	7,639
Net premiums earned	—			—			7,405			—			7,405
Net investment income	1			3			704			—			708
Equity in earnings of subsidiaries	664			549			—			(1,213		)	—
Net realized gains (losses) including OTTI	(1		)	(1		)	(214		)	—			(216		)
Losses and loss expenses	—			—			4,254			—			4,254
Policy benefits	—			—			146			—			146
Policy acquisition costs and administrative expenses	16			96			2,277			—			2,389
Interest (income) expense	(93		)	233			13			—			153
Other (income) expense	(4		)	10			(35		)	—			(29		)
Amortization of purchased intangibles	—			—			5			—			5
Chubb integration expenses	14			(97		)	181			—			98
Income tax expense (benefit)	5			(37		)	187			—			155
Net income	$	726		$	346		$	867		$	(1,213	)	$	726
Comprehensive income	$	1,540		$	1,004		$	1,681		$	(2,685	)	$	1,540

During the second quarter of 2016, we refined our internal expense allocation processes and as a result we were able to more precisely identify which of our wholly-owned subsidiaries were responsible for specific Chubb integration expenses and subsequently transferred Chubb integration expenses of $97 million and income tax benefit of $34 million from Chubb INA Holdings Inc. to the Other Chubb Limited Subsidiaries column above. The offsetting movement is within Equity in earnings of subsidiaries in the Chubb INA Holdings Inc. column above.

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended June 30, 2015	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)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries		Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	4,784	$	—		$	4,784
Net premiums earned	—			—			4,360		—			4,360
Net investment income	—			—			562		—			562
Equity in earnings of subsidiaries	901			296			—		(1,197		)	—
Net realized gains (losses) including OTTI	—			(2		)	128		—			126
Losses and loss expenses	—			—			2,417		—			2,417
Policy benefits	—			—			153		—			153
Policy acquisition costs and administrative expenses	18			7			1,280		—			1,305
Interest (income) expense	(7		)	69			9		—			71
Other (income) expense	(57		)	(4		)	23		—			(38		)
Amortization of purchased intangibles	—			—			55		—			55
Income tax expense (benefit)	5			(27		)	165		—			143
Net income	$	942		$	249		$	948	$	(1,197	)	$	942
Comprehensive income (loss)	$	397		$	(91	)	$	403	$	(312	)	$	397

Condensed Consolidating Statements of Operations and Comprehensive Income



Six Months Ended June 30, 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)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries			Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	13,634		$	—		$	13,634
Net premiums earned	—			—			14,002			—			14,002
Net investment income	2			7			1,373			—			1,382
Equity in earnings of subsidiaries	1,039			1,055			—			(2,094		)	—
Net realized gains (losses) including OTTI	(1		)	(1		)	(608		)	—			(610		)
Losses and loss expenses	—			—			7,928			—			7,928
Policy benefits	—			—			272			—			272
Policy acquisition costs and administrative expenses	33			132			4,409			—			4,574
Interest (income) expense	(173		)	448			24			—			299
Other (income) expense	(13		)	20			(8		)	—			(1		)
Amortization of purchased intangibles	—			—			12			—			12
Chubb integration expenses	17			40			189			—			246
Income tax expense (benefit)	11			(187		)	455			—			279
Net income	$	1,165		$	608		$	1,486		$	(2,094	)	$	1,165
Comprehensive income	$	3,081		$	2,060		$	3,402		$	(5,462	)	$	3,081

Condensed Consolidating Statements of Operations and Comprehensive Income



Six Months Ended June 30, 2015	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)	Chubb Limited (Parent Guarantor)			Chubb INA Holdings Inc. (Subsidiary Issuer)			Other Chubb Limited Subsidiaries		Consolidating Adjustments and Eliminations			Chubb Limited Consolidated
Net premiums written	$	—		$	—		$	8,860	$	—		$	8,860
Net premiums earned	—			—			8,287		—			8,287
Net investment income	1			1			1,111		—			1,113
Equity in earnings of subsidiaries	1,549			500			—		(2,049		)	—
Net realized gains (losses) including OTTI	—			(2		)	39		—			37
Losses and loss expenses	—			—			4,539		—			4,539
Policy benefits	—			—			295		—			295
Policy acquisition costs and administrative expenses	32			13			2,521		—			2,566
Interest (income) expense	(15		)	138			16		—			139
Other (income) expense	(98		)	(7		)	32		—			(73		)
Amortization of purchased intangibles	—			—			85		—			85
Income tax expense (benefit)	8			(53		)	308		—			263
Net income	$	1,623		$	408		$	1,641	$	(2,049	)	$	1,623
Comprehensive income (loss)	$	1,039		$	(67	)	$	1,057	$	(990	)	$	1,039

Condensed Consolidating Statement of Cash Flows



Six Months Ended June 30, 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	$	3,213		$	4,050		$	2,262		$	(7,372	)	$	2,153
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(83		)	(16,994		)	—			(17,077		)
Purchases of fixed maturities held to maturity	—			—			(121		)	—			(121		)
Purchases of equity securities	—			—			(78		)	—			(78		)
Sales of fixed maturities available for sale	—			—			11,868			—			11,868
Sales of equity securities	—			—			932			—			932
Maturities and redemptions of fixed maturities available for sale	—			—			3,910			—			3,910
Maturities and redemptions of fixed maturities held to maturity	—			—			443			—			443
Net change in short-term investments	—			7,829			3,882			—			11,711
Net derivative instruments settlements	—			(10		)	(83		)	—			(93		)
Acquisition of subsidiaries (net of cash acquired of $71)	—			(14,282		)	34			—			(14,248		)
Capital contribution	(2,330		)	—			(2,330		)	4,660			—
Other	—			(3		)	84			—			81
Net cash flows (used for) from investing activities	(2,330		)	(6,549		)	1,547			4,660			(2,672		)
Cash flows from financing activities
Dividends paid on Common Shares	(530		)	—			—			—			(530		)
Proceeds from issuance of repurchase agreements	—			—			904			—			904
Repayment of repurchase agreements	—			—			(902		)	—			(902		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			92			—			92
Dividend to parent company	—			—			(7,372		)	7,372			—
Advances (to) from affiliates	(247		)	221			26			—			—
Capital contribution	—			2,330			2,330			(4,660		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	(106		)	157			—			(51		)	—
Policyholder contract deposits	—			—			274			—			274
Policyholder contract withdrawals	—			—			(103		)	—			(103		)
Other	—			(4		)	—			—			(4		)
Net cash flows (used for) from financing activities	(883		)	2,704			(4,751		)	2,661			(269		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			24			—			24
Net increase (decrease) in cash	—			205			(918		)	(51		)	(764		)
Cash – beginning of period⁽¹⁾	1			2			2,743			(971		)	1,775
Cash – end of period⁽¹⁾	$	1		$	207		$	1,825		$	(1,022	)	$	1,011

⁽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 June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows



Six Months Ended June 30, 2015	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	$	65		$	(35	)	$	1,861		$	—		$	1,891
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(9,210		)	—			(9,210		)
Purchases of fixed maturities held to maturity	—			—			(24		)	—			(24		)
Purchases of equity securities	—			—			(70		)	—			(70		)
Sales of fixed maturities available for sale	—			—			3,642			—			3,642
Sales of equity securities	—			—			102			—			102
Maturities and redemptions of fixed maturities available for sale	—			—			3,691			—			3,691
Maturities and redemptions of fixed maturities held to maturity	—			—			470			—			470
Net change in short-term investments	—			190			38			—			228
Net derivative instruments settlements	—			(9		)	(24		)	—			(33		)
Acquisition of subsidiaries (net of cash acquired of $620)	—			—			255			—			255
Other	—			(2		)	(69		)	—			(71		)
Net cash flows from (used for) investing activities	—			179			(1,199		)	—			(1,020		)
Cash flows from financing activities
Dividends paid on Common Shares	(427		)	—			—			—			(427		)
Common Shares repurchased	—			—			(750		)	—			(750		)
Proceeds from issuance of long-term debt	—			800			—			—			800
Proceeds from issuance of repurchase agreements	—			—			1,327			—			1,327
Repayment of long-term debt	—			(450		)	—			—			(450		)
Repayment of repurchase agreements	—			—			(1,327		)	—			(1,327		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			46			—			46
Advances (to) from affiliates	223			(214		)	(9		)	—			—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	140			(272		)	—			132			—
Policyholder contract deposits	—			—			235			—			235
Policyholder contract withdrawals	—			—			(107		)	—			(107		)
Other	—			(6		)	—			—			(6		)
Net cash flows used for financing activities	(64		)	(142		)	(585		)	132			(659		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			(77		)	—			(77		)
Net increase in cash	1			2			—			132			135
Cash – beginning of period⁽¹⁾	—			1			1,209			(555		)	655
Cash – end of period⁽¹⁾	$	1		$	3		$	1,209		$	(423	)	$	790

⁽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 June 30, 2015 and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.