Acquisitions Acquisitions (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Assets Acquired and Liabilities Assumed in the Chubb Corp Acquisition [Table Text Block]

The table below details the purchase consideration and preliminary allocation of assets acquired and liabilities assumed. During the second and third quarters of 2016, we reassessed certain components of our preliminary estimates of assets acquired and liabilities assumed, including the net realizable value for Reinsurance recoverables on losses and loss expenses and Insurance and reinsurance balances receivable and certain components of the Deferred tax liabilities, which resulted in an adjustment to our preliminary estimates that increased Goodwill by $85 million. These estimates remain preliminary and are subject to adjustment. While they are not expected to be materially different than those shown, any material adjustments to the estimates will be reflected, retroactively, as of the date of the acquisition.




(in millions, except per share data)
Purchase consideration
Chubb Limited common shares
Chubb Corp common shares outstanding	228
Per share exchange ratio	0.6019
Common shares issued by Chubb Limited	137
Common share price of Chubb Limited at January 14, 2016	$	111.02
Fair value of common shares issued by Chubb Limited to common shareholders of Chubb Corp	$	15,204
Cash consideration
Chubb Corp common shares outstanding	228
Agreed cash price per share paid to common shareholders of Chubb Corp	$	62.93
Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp	$	14,319
Stock-based awards
Fair value of equity awards issued ⁽¹⁾	$	323
Fair value of purchase consideration	$	29,846
Preliminary estimate of assets acquired and (liabilities) assumed
Cash	$	71
Investments	42,967
Accrued investment income	337
Insurance and reinsurance balances receivable	2,981
Reinsurance recoverable on losses and loss expenses	1,645
Indefinite lived intangible assets	2,860
Finite lived intangible assets	4,795
Prepaid reinsurance premiums	280
Other assets	865
Unpaid losses and loss expenses	(22,906		)
Unearned premiums	(7,033		)
Insurance and reinsurance balances payable	(511		)
Accounts payable, accrued expenses, and other liabilities	(1,935		)
Deferred tax liabilities	(1,335		)
Long-term debt	(3,765		)
Total identifiable net assets acquired	19,316
Goodwill	10,530
Purchase price	$	29,846


⁽¹⁾	The estimated fair value of the replacement equity awards was $525 million, of which $323 million was attributed to service periods prior to the acquisition and was included in the purchase consideration. Refer to Note 10 for further information on these replacement equity awards.

Results of Operations From Date of Business Combination [Table Text Block]

The following table summarizes the results of the acquired Chubb Corp operations since the acquisition date that have been included within our Consolidated statements of operations:



(in millions of U.S. dollars)	Three Months Ended September 30, 2016		January 14, 2016 to September 30, 2016
Total revenues	$	2,656	$	7,888
Net income	$	483	$	1,064

Pro Forma Financial Information for the Chubb Corp Acquisition [Table Text Block]

The following table provides supplemental unaudited pro forma consolidated information for the three and nine months ended September 30, 2016 and 2015, as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.



	Three Months Ended				Nine Months Ended
	September 30				September 30
(in millions of U.S. dollars, except per share data)	2016		2015		2016		2015
Total revenues	$	8,521	$	8,314	$	23,758	$	24,387
Net income	$	1,345	$	1,036	$	2,591	$	3,194
Earnings per share
Basic earnings per share	$	2.87	$	2.23	$	5.54	$	6.85
Diluted earnings per share	$	2.85	$	2.21	$	5.50	$	6.78