Information provided in connection with outstanding debt of subsidiaries (Tables)

6 Months Ended

Jun. 30, 2017

Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract]

Condensed Consolidating Balance Sheet at June 30, 2017



(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	$	23	$	305	$	99,880	$	—		$	100,208
Cash ⁽¹⁾	—		167		1,323		(193		)	1,297
Insurance and reinsurance balances receivable	—		—		11,699		(2,037		)	9,662
Reinsurance recoverable on losses and loss expenses	—		—		24,118		(10,760		)	13,358
Reinsurance recoverable on policy benefits	—		—		1,205		(1,007		)	198
Value of business acquired	—		—		337		—			337
Goodwill and other intangible assets	—		—		22,013		—			22,013
Investments in subsidiaries	40,553		49,982		—		(90,535		)	—
Due from subsidiaries and affiliates, net	10,251		—		—		(10,251		)	—
Other assets	141		289		19,527		(4,042		)	15,915
Total assets	$	50,968	$	50,743	$	180,102	$	(118,825	)	$	162,988
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	70,460	$	(10,066	)	$	60,394
Unearned premiums	—		—		18,876		(3,587		)	15,289
Future policy benefits	—		—		6,197		(1,007		)	5,190
Due to subsidiaries and affiliates, net	—		9,939		312		(10,251		)	—
Affiliated notional cash pooling programs ⁽¹⁾	193		—		—		(193		)	—
Repurchase agreements	—		—		1,408		—			1,408
Short-term debt	—		922		—		—			922
Long-term debt	—		11,656		11		—			11,667
Trust preferred securities	—		308		—		—			308
Other liabilities	426		1,582		18,639		(3,186		)	17,461
Total liabilities	619		24,407		115,903		(28,290		)	112,639
Total shareholders’ equity	50,349		26,336		64,199		(90,535		)	50,349
Total liabilities and shareholders’ equity	$	50,968	$	50,743	$	180,102	$	(118,825	)	$	162,988

⁽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, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

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

Condensed Consolidating Statement Of Operations and Comprehensive Income

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended June 30, 2017	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	$	—		$	—		$	7,581		$	—		$	7,581
Net premiums earned	—			—			7,237			—			7,237
Net investment income	2			4			764			—			770
Equity in earnings of subsidiaries	1,253			665			—			(1,918		)	—
Net realized gains (losses) including OTTI	(2		)	(1		)	104			—			101
Losses and loss expenses	—			—			4,146			—			4,146
Policy benefits	—			—			163			—			163
Policy acquisition costs and administrative expenses	18			(2		)	2,139			—			2,155
Interest (income) expense	(84		)	212			19			—			147
Other (income) expense	4			10			(159		)	—			(145		)
Amortization of purchased intangibles	—			—			65			—			65
Chubb integration expenses	6			4			62			—			72
Income tax expense (benefit)	4			(87		)	283			—			200
Net income	$	1,305		$	531		$	1,387		$	(1,918	)	$	1,305
Comprehensive income	$	1,675		$	920		$	1,756		$	(2,676	)	$	1,675

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

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Six Months Ended June 30, 2017	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	$	—		$	—		$	14,291		$	—		$	14,291
Net premiums earned	—			—			14,009			—			14,009
Net investment income	2			7			1,506			—			1,515
Equity in earnings of subsidiaries	2,280			1,366			—			(3,646		)	—
Net realized gains (losses) including OTTI	(2		)	(14		)	110			—			94
Losses and loss expenses	—			—			7,935			—			7,935
Policy benefits	—			—			331			—			331
Policy acquisition costs and administrative expenses	36			12			4,180			—			4,228
Interest (income) expense	(168		)	433			36			—			301
Other (income) expense	(2		)	25			(238		)	—			(215		)
Amortization of purchased intangibles	—			—			129			—			129
Chubb integration expenses	6			53			124			—			183
Income tax expense (benefit)	10			(199		)	517			—			328
Net income	$	2,398		$	1,035		$	2,611		$	(3,646	)	$	2,398
Comprehensive income	$	3,082		$	1,711		$	3,294		$	(5,005	)	$	3,082

Condensed Consolidating Statements of Operations and Comprehensive Income



For the 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 Statement of Cash Flows



Six Months Ended June 30, 2017	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	$	551		$	1,444		$	1,686		$	(2,041	)	$	1,640
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(5		)	(12,255		)	—			(12,260		)
Purchases of fixed maturities held to maturity	—			—			(212		)	—			(212		)
Purchases of equity securities	—			—			(82		)	—			(82		)
Sales of fixed maturities available for sale	—			—			6,873			—			6,873
Sales of equity securities	—			—			104			—			104
Maturities and redemptions of fixed maturities available for sale	—			13			5,156			—			5,169
Maturities and redemptions of fixed maturities held to maturity	—			—			408			—			408
Net change in short-term investments	—			166			188			—			354
Net derivative instruments settlements	—			(7		)	(122		)	—			(129		)
Other	—			2			(123		)	—			(121		)
Net cash flows from (used for) investing activities	—			169			(65		)	—			104
Cash flows from financing activities
Dividends paid on Common Shares	(646		)	—			—			—			(646		)
Common Shares repurchased	—			—			(475		)	—			(475		)
Repayment of long-term debt	—			(500		)	—			—			(500		)
Proceeds from issuance of repurchase agreements	—			—			1,343			—			1,343
Repayment of repurchase agreements	—			—			(1,338		)	—			(1,338		)
Proceeds from share-based compensation plans	—			—			89			—			89
Dividend to parent company	—			—			(2,041		)	2,041			—
Advances (to) from affiliates	264			(328		)	64			—			—
Net payments to affiliated notional cash pooling programs⁽¹⁾	(170		)	(619		)	—			789			—
Policyholder contract deposits	—			—			209			—			209
Policyholder contract withdrawals	—			—			(125		)	—			(125		)
Net cash flows used for financing activities	(552		)	(1,447		)	(2,274		)	2,830			(1,443		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			11			—			11
Net increase (decrease) in cash	(1		)	166			(642		)	789			312
Cash – beginning of period⁽¹⁾	1			1			1,965			(982		)	985
Cash – end of period⁽¹⁾	$	—		$	167		$	1,323		$	(193	)	$	1,297

⁽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, 2017 and December 31, 2016, 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, 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 from (used for) 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 from (used for) 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.