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 December 31, 2016 and December 31, 2015, and for the years ended December 31, 2016, 2015, and 2014 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 December 31, 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	$	485	$	98,582	$	—		$	99,094
Cash⁽¹⁾	1		1		1,965		(982		)	985
Insurance and reinsurance balances receivable	—		—		10,498		(1,528		)	8,970
Reinsurance recoverable on losses and loss expenses	—		—		24,496		(10,919		)	13,577
Reinsurance recoverable on policy benefits	—		—		1,153		(971		)	182
Value of business acquired	—		—		355		—			355
Goodwill and other intangible assets	—		—		22,095		—			22,095
Investments in subsidiaries	38,408		49,509		—		(87,917		)	—
Due from subsidiaries and affiliates, net	10,482		—		—		(10,482		)	—
Other assets	3		436		18,442		(4,353		)	14,528
Total assets	$	48,921	$	50,431	$	177,586	$	(117,152	)	$	159,786
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	70,683	$	(10,143	)	$	60,540
Unearned premiums	—		—		18,538		(3,759		)	14,779
Future policy benefits	—		—		6,007		(971		)	5,036
Due to subsidiaries and affiliates, net	—		10,209		273		(10,482		)	—
Affiliated notional cash pooling programs⁽¹⁾	363		619		—		(982		)	—
Repurchase agreements	—		—		1,403		—			1,403
Short-term debt	—		500		—		—			500
Long-term debt	—		12,599		11		—			12,610
Trust preferred securities	—		308		—		—			308
Other liabilities	283		1,582		17,368		(2,898		)	16,335
Total liabilities	646		25,817		114,283		(29,235		)	111,511
Total shareholders’ equity	48,275		24,614		63,303		(87,917		)	48,275
Total liabilities and shareholders’ equity	$	48,921	$	50,431	$	177,586	$	(117,152	)	$	159,786

⁽¹⁾Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 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. Refer to Note 1 f) for additional information. 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 Year Ended December 31, 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	$	—		$	—		$	28,145		$	—		$	28,145
Net premiums earned	—			—			28,749			—			28,749
Net investment income	3			11			2,851			—			2,865
Equity in earnings of subsidiaries	3,901			2,555			—			(6,456		)	—
Net realized gains (losses) including OTTI	—			3			(148		)	—			(145		)
Losses and loss expenses	—			—			16,052			—			16,052
Policy benefits	—			—			588			—			588
Policy acquisition costs and administrative expenses	64			82			8,839			—			8,985
Interest (income) expense	(353		)	908			50			—			605
Other (income) expense	(25		)	35			(232		)	—			(222		)
Amortization of purchased intangibles	—			—			19			—			19
Chubb integration expenses	62			126			304			—			492
Income tax expense (benefit)	21			(416		)	1,210			—			815
Net income	$	4,135		$	1,834		$	4,622		$	(6,456	)	$	4,135
Comprehensive income	$	4,556		$	2,001		$	5,045		$	(7,046	)	$	4,556

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Year Ended December 31, 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	$	—		$	—		$	17,713		$	—		$	17,713
Net premiums earned	—			—			17,213			—			17,213
Net investment income	3			4			2,187			—			2,194
Equity in earnings of subsidiaries	2,673			1,038			—			(3,711		)	—
Net realized gains (losses) including OTTI	—			(9		)	(411		)	—			(420		)
Losses and loss expenses	—			—			9,484			—			9,484
Policy benefits	—			—			543			—			543
Policy acquisition costs and administrative expenses	63			28			5,120			—			5,211
Interest (income) expense	(32		)	302			30			—			300
Other (income) expense	(208		)	(4		)	161			—			(51		)
Amortization of purchased intangibles	—			—			171			—			171
Chubb integration expenses	3			29			1			—			33
Income tax expense (benefit)	16			(349		)	795			—			462
Net income	$	2,834		$	1,027		$	2,684		$	(3,711	)	$	2,834
Comprehensive income (loss)	$	908		$	(192	)	$	757		$	(565	)	$	908

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Year Ended December 31, 2014	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	$	—		$	—		$	17,799		$	—		$	17,799
Net premiums earned	—			—			17,426			—			17,426
Net investment income	2			2			2,248			—			2,252
Equity in earnings of subsidiaries	2,707			791			—			(3,498		)	—
Net realized gains (losses) including OTTI	—			53			(560		)	—			(507		)
Losses and loss expenses	—			—			9,649			—			9,649
Policy benefits	—			—			517			—			517
Policy acquisition costs and administrative expenses	78			26			5,216			—			5,320
Interest (income) expense	(35		)	277			38			—			280
Other (income) expense	(201		)	27			(16		)	—			(190		)
Amortization of purchased intangibles	—			—			108			—			108
Income tax expense (benefit)	14			(94		)	714			—			634
Net income	$	2,853		$	610		$	2,888		$	(3,498	)	$	2,853
Comprehensive income	$	2,892		$	583		$	2,926		$	(3,509	)	$	2,892

Condensed Consolidating Statement of Cash Flows



For the Year Ended December 31, 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	$	3,618		$	4,305		$	5,536		$	(8,167	)	$	5,292
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(156		)	(30,659		)	—			(30,815		)
Purchases of fixed maturities held to maturity	—			—			(282		)	—			(282		)
Purchases of equity securities	—			—			(146		)	—			(146		)
Sales of fixed maturities available for sale	—			66			16,611			—			16,677
Sales of equity securities	—			—			1,000			—			1,000
Maturities and redemptions of fixed maturities available for sale	—			66			9,283			—			9,349
Maturities and redemptions of fixed maturities held to maturity	—			—			958			—			958
Net change in short-term investments	—			7,943			4,407			—			12,350
Net derivative instruments settlements	—			(9		)	(159		)	—			(168		)
Acquisition of subsidiaries (net of cash acquired of $71)	—			(14,282		)	34			—			(14,248		)
Capital contribution	(2,330		)	(215		)	(2,330		)	4,875			—
Other	—			(3		)	13			—			10
Net cash flows used for investing activities	(2,330		)	(6,590		)	(1,270		)	4,875			(5,315		)
Cash flows from financing activities
Dividends paid on Common Shares	(1,173		)	—			—			—			(1,173		)
Proceeds from issuance of repurchase agreements	—			—			2,310			—			2,310
Repayment of repurchase agreements	—			—			(2,311		)	—			(2,311		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			167			—			167
Advances (to) from affiliates	404			(572		)	168			—			—
Dividends to parent company	—			—			(8,167		)	8,167			—
Capital contribution	—			2,330			2,545			(4,875		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	(519		)	530			—			(11		)	—
Policyholder contract deposits	—			—			522			—			522
Policyholder contract withdrawals	—			—			(253		)	—			(253		)
Other	—			(4		)	—			—			(4		)
Net cash flows (used for) from financing activities	(1,288		)	2,284			(5,019		)	3,281			(742		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			(25		)	—			(25		)
Net decrease in cash	—			(1		)	(778		)	(11		)	(790		)
Cash – beginning of year⁽¹⁾	1			2			2,743			(971		)	1,775
Cash – end of year⁽¹⁾	$	1		$	1		$	1,965		$	(982	)	$	985


⁽¹⁾	Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2016 and 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows



For the Year Ended December 31, 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 operating activities	$	3,125		$	682		$	3,836		$	(3,779	)	$	3,864
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(16,053		)	(18		)	(16,071		)
Purchases of fixed maturities held to maturity	—			—			(62		)	—			(62		)
Purchases of equity securities	—			—			(158		)	—			(158		)
Sales of fixed maturities available for sale	—			—			10,814			—			10,814
Sales of equity securities	—			—			183			—			183
Maturities and redemptions of fixed maturities available for sale	—			—			6,567			—			6,567
Maturities and redemptions of fixed maturities held to maturity	—			—			669			—			669
Net change in short-term investments	—			(7,588		)	(628		)	—			(8,216		)
Net derivative instruments settlements	—			(9		)	(12		)	—			(21		)
Acquisition of subsidiaries (net of cash acquired of $629)	—			—			264			—			264
Capital contribution	(2,670		)	(625		)	(2,791		)	6,086			—
Other	—			(25		)	(256		)	18			(263		)
Net cash flows used for investing activities	(2,670		)	(8,247		)	(1,463		)	6,086			(6,294		)
Cash flows from financing activities
Dividends paid on Common Shares	(862		)	—			—			—			(862		)
Common Shares repurchased	—			—			(758		)	—			(758		)
Proceeds from issuance of long-term debt	—			6,090			—			—			6,090
Proceeds from issuance of repurchase agreements	—			—			2,029			—			2,029
Repayment of long-term debt	—			(1,150		)	—			—			(1,150		)
Repayment of repurchase agreements	—			—			(2,027		)	—			(2,027		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			131			—			131
Advances (to) from affiliates	(228		)	95			133			—			—
Dividends to parent company	—			—			(3,779		)	3,779			—
Capital contribution	—			2,791			3,295			(6,086		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	636			(220		)	—			(416		)	—
Policyholder contract deposits	—			—			503			—			503
Policyholder contract withdrawals	—			—			(221		)	—			(221		)
Other	—			(40		)	—			—			(40		)
Net cash flows (used for) from financing activities	(454		)	7,566			(694		)	(2,723		)	3,695
Effect of foreign currency rate changes on cash and cash equivalents	—			—			(145		)	—			(145		)
Net increase in cash	1			1			1,534			(416		)	1,120
Cash – beginning of year⁽¹⁾	—			1			1,209			(555		)	655
Cash – end of year⁽¹⁾	$	1		$	2		$	2,743		$	(971	)	$	1,775


⁽¹⁾	Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2015 and 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows



For the Year Ended December 31, 2014	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	$	541		$	210		$	4,419		$	(674	)	$	4,496
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			—			(15,816		)	263			(15,553		)
Purchases of fixed maturities held to maturity	—			—			(267		)	—			(267		)
Purchases of equity securities	—			—			(251		)	—			(251		)
Sales of fixed maturities available for sale	—			—			7,750			(268		)	7,482
Sales of equity securities	—			—			670			—			670
Maturities and redemptions of fixed maturities available for sale	—			—			6,413			—			6,413
Maturities and redemptions of fixed maturities held to maturity	—			—			875			—			875
Net change in short-term investments	—			(216		)	(392		)	5			(603		)
Net derivative instruments settlements	—			53			(283		)	—			(230		)
Acquisition of subsidiaries (net of cash acquired of $20)	—			—			(766		)	—			(766		)
Capital contribution	—			(258		)	—			258			—
Other	—			(8		)	(266		)	—			(274		)
Net cash flows used for investing activities	—			(429		)	(2,333		)	258			(2,504		)
Cash flows from financing activities
Dividends paid on Common Shares	(862		)	—			—			—			(862		)
Common Shares repurchased	—			—			(1,429		)	—			(1,429		)
Proceeds from issuance of long-term debt	—			699			—			—			699
Proceeds from issuance of repurchase agreements	—			—			1,978			—			1,978
Repayment of long-term debt	—			(500		)	(1		)	—			(501		)
Repayment of repurchase agreements	—			—			(1,977		)	—			(1,977		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			127			—			127
Advances (to) from affiliates	260			(298		)	38			—			—
Dividends to parent company	—			—			(674		)	674			—
Capital contribution	—			—			258			(258		)	—
Net proceeds from affiliated notional cash pooling programs⁽¹⁾	61			309			—			(370		)	—
Policyholder contract deposits	—			—			366			—			366
Policyholder contract withdrawals	—			—			(172		)	—			(172		)
Other				(6		)	—			—			(6		)
Net cash flows (used for) from financing activities	(541		)	204			(1,486		)	46			(1,777		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			(139		)	—			(139		)
Net (decrease) increase in cash	—			(15		)	461			(370		)	76
Cash – beginning of year⁽¹⁾	—			16			748			(185		)	579
Cash – end of year⁽¹⁾	$	—		$	1		$	1,209		$	(555	)	$	655


⁽¹⁾	Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014 and 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.