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

9 Months Ended

Sep. 30, 2017

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

Condensed Consolidating Balance Sheet at September 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	$	—	$	169	$	102,255	$	—		$	102,424
Cash ⁽¹⁾	1		—		1,174		(87		)	1,088
Insurance and reinsurance balances receivable	—		—		11,076		(1,525		)	9,551
Reinsurance recoverable on losses and loss expenses	—		—		27,007		(12,208		)	14,799
Reinsurance recoverable on policy benefits	—		—		1,232		(1,039		)	193
Value of business acquired	—		—		339		—			339
Goodwill and other intangible assets	—		—		22,265		—			22,265
Investments in subsidiaries	40,936		50,926		—		(91,862		)	—
Due from subsidiaries and affiliates, net	9,913		—		—		(9,913		)	—
Other assets	61		276		20,699		(4,117		)	16,919
Total assets	$	50,911	$	51,371	$	186,047	$	(120,751	)	$	167,578
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	75,688	$	(11,535	)	$	64,153
Unearned premiums	—		—		19,150		(3,694		)	15,456
Future policy benefits	—		—		6,346		(1,039		)	5,307
Due to subsidiaries and affiliates, net	—		9,697		216		(9,913		)	—
Affiliated notional cash pooling programs ⁽¹⁾	85		2		—		(87		)	—
Repurchase agreements	—		—		1,408		—			1,408
Short-term debt	—		1,020		—		—			1,020
Long-term debt	—		11,548		11		—			11,559
Trust preferred securities	—		308		—		—			308
Other liabilities	355		1,685		18,477		(2,621		)	17,896
Total liabilities	440		24,260		121,296		(28,889		)	117,107
Total shareholders’ equity	50,471		27,111		64,751		(91,862		)	50,471
Total liabilities and shareholders’ equity	$	50,911	$	51,371	$	186,047	$	(120,751	)	$	167,578

⁽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 September 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 September 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	$	—		$	—		$	7,902		$	—		$	7,902
Net premiums earned	—			—			7,807			—			7,807
Net investment income	1			3			809			—			813
Equity in earnings of subsidiaries	(127		)	212			—			(85		)	—
Net realized gains (losses) including OTTI	—			(8		)	(2		)	—			(10		)
Losses and loss expenses	—			—			6,247			—			6,247
Policy benefits	—			—			169			—			169
Policy acquisition costs and administrative expenses	20			16			2,166			—			2,202
Interest (income) expense	(84		)	208			26			—			150
Other (income) expense	(5		)	9			(122		)	—			(118		)
Amortization of purchased intangibles	—			—			65			—			65
Chubb integration expenses	7			1			42			—			50
Income tax expense (benefit)	6			(89		)	(2		)	—			(85		)
Net income (loss)	$	(70	)	$	62		$	23		$	(85	)	$	(70	)
Comprehensive income	$	629		$	748		$	724		$	(1,472	)	$	629

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended September 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	$	—		$	—		$	7,573		$	—		$	7,573
Net premiums earned	—			—			7,688			—			7,688
Net investment income	1			2			736			—			739
Equity in earnings of subsidiaries	1,292			748			—			(2,040		)	—
Net realized gains (losses) including OTTI	—			(2		)	102			—			100
Losses and loss expenses	—			—			4,269			—			4,269
Policy benefits	—			—			155			—			155
Policy acquisition costs and administrative expenses	15			12			2,259			—			2,286
Interest (income) expense	(93		)	233			12			—			152
Other (income) expense	(7		)	6			(90		)	—			(91		)
Amortization of purchased intangibles	—			—			4			—			4
Chubb integration expenses	12			16			87			—			115
Income tax expense (benefit)	6			(136		)	407			—			277
Net income	$	1,360		$	617		$	1,423		$	(2,040	)	$	1,360
Comprehensive income	$	1,376		$	627		$	1,439		$	(2,066	)	$	1,376

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Nine Months Ended September 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	$	—		$	—		$	22,193		$	—		$	22,193
Net premiums earned	—			—			21,816			—			21,816
Net investment income	3			10			2,315			—			2,328
Equity in earnings of subsidiaries	2,153			1,578			—			(3,731		)	—
Net realized gains (losses) including OTTI	(2		)	(22		)	108			—			84
Losses and loss expenses	—			—			14,182			—			14,182
Policy benefits	—			—			500			—			500
Policy acquisition costs and administrative expenses	56			28			6,346			—			6,430
Interest (income) expense	(252		)	641			62			—			451
Other (income) expense	(7		)	34			(360		)	—			(333		)
Amortization of purchased intangibles	—			—			194			—			194
Chubb integration expenses	13			54			166			—			233
Income tax expense (benefit)	16			(288		)	515			—			243
Net income	$	2,328		$	1,097		$	2,634		$	(3,731	)	$	2,328
Comprehensive income	$	3,711		$	2,459		$	4,018		$	(6,477	)	$	3,711

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Nine Months Ended September 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	$	—		$	—		$	21,207		$	—		$	21,207
Net premiums earned	—			—			21,690			—			21,690
Net investment income	3			9			2,109			—			2,121
Equity in earnings of subsidiaries	2,331			1,803			—			(4,134		)	—
Net realized gains (losses) including OTTI	(1		)	(3		)	(506		)	—			(510		)
Losses and loss expenses	—			—			12,197			—			12,197
Policy benefits	—			—			427			—			427
Policy acquisition costs and administrative expenses	48			144			6,668			—			6,860
Interest (income) expense	(266		)	681			36			—			451
Other (income) expense	(20		)	26			(98		)	—			(92		)
Amortization of purchased intangibles	—			—			16			—			16
Chubb integration expenses	29			56			276			—			361
Income tax expense (benefit)	17			(323		)	862			—			556
Net income	$	2,525		$	1,225		$	2,909		$	(4,134	)	$	2,525
Comprehensive income	$	4,457		$	2,687		$	4,841		$	(7,528	)	$	4,457

Condensed Consolidating Statement of Cash Flows



Nine Months Ended September 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	$	639		$	1,472		$	3,341		$	(2,041	)	$	3,411
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(9		)	(18,469		)	—			(18,478		)
Purchases of fixed maturities held to maturity	—			—			(262		)	—			(262		)
Purchases of equity securities	—			—			(125		)	—			(125		)
Sales of fixed maturities available for sale	—			99			9,116			—			9,215
Sales of equity securities	—			—			152			—			152
Maturities and redemptions of fixed maturities available for sale	—			22			7,677			—			7,699
Maturities and redemptions of fixed maturities held to maturity	—			—			644			—			644
Net change in short-term investments	—			197			(153		)	—			44
Net derivative instruments settlements	—			(13		)	(157		)	—			(170		)
Other	—			6			(68		)	—			(62		)
Net cash flows from (used for) investing activities	—			302			(1,645		)	—			(1,343		)
Cash flows from financing activities
Dividends paid on Common Shares	(978		)	—			—			—			(978		)
Common Shares repurchased	—			—			(707		)	—			(707		)
Repayment of long-term debt	—			(500		)	—			—			(500		)
Proceeds from issuance of repurchase agreements	—			—			1,798			—			1,798
Repayment of repurchase agreements	—			—			(1,793		)	—			(1,793		)
Proceeds from share-based compensation plans	—			—			109			—			109
Dividend to parent company	—			—			(2,041		)	2,041			—
Advances (to) from affiliates	617			(658		)	41			—			—
Net payments to affiliated notional cash pooling programs⁽¹⁾	(278		)	(617		)	—			895			—
Policyholder contract deposits	—			—			312			—			312
Policyholder contract withdrawals	—			—			(211		)	—			(211		)
Net cash flows used for financing activities	(639		)	(1,775		)	(2,492		)	2,936			(1,970		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			5			—			5
Net increase (decrease) in cash	—			(1		)	(791		)	895			103
Cash – beginning of period⁽¹⁾	1			1			1,965			(982		)	985
Cash – end of period⁽¹⁾	$	1		$	—		$	1,174		$	(87	)	$	1,088

⁽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 September 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



Nine Months Ended September 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	$	3,399		$	3,892		$	3,918		$	(7,372	)	$	3,837
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(154		)	(23,683		)	—			(23,837		)
Purchases of fixed maturities held to maturity	—			—			(189		)	—			(189		)
Purchases of equity securities	—			—			(100		)	—			(100		)
Sales of fixed maturities available for sale	—			66			13,797			—			13,863
Sales of equity securities	—			—			963			—			963
Maturities and redemptions of fixed maturities available for sale	—			59			6,877			—			6,936
Maturities and redemptions of fixed maturities held to maturity	—			—			627			—			627
Net change in short-term investments	—			7,627			4,239			—			11,866
Net derivative instruments settlements	—			(10		)	(171		)	—			(181		)
Acquisition of subsidiaries (net of cash acquired of $71)	—			(14,282		)	34			—			(14,248		)
Capital contribution	(2,330		)	(20		)	(2,330		)	4,680			—
Other	—			(3		)	29			—			26
Net cash flows from (used for) investing activities	(2,330		)	(6,717		)	93			4,680			(4,274		)
Cash flows from financing activities
Dividends paid on Common Shares	(851		)	—			—			—			(851		)
Proceeds from issuance of repurchase agreements	—			—			1,457			—			1,457
Repayment of repurchase agreements	—			—			(1,455		)	—			(1,455		)
Proceeds from share-based compensation plans, including windfall tax benefits	—			—			117			—			117
Dividend to parent company	—			—			(7,372		)	7,372			—
Advances (to) from affiliates	(258		)	219			39			—			—
Capital contribution	—			2,330			2,350			(4,680		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs⁽¹⁾	45			280			—			(325		)	—
Policyholder contract deposits	—			—			473			—			473
Policyholder contract withdrawals	—			—			(247		)	—			(247		)
Other	—			(4		)	—			—			(4		)
Net cash flows from (used for) financing activities	(1,064		)	2,825			(4,638		)	2,367			(510		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			42			—			42
Net increase (decrease) in cash	5			—			(585		)	(325		)	(905		)
Cash – beginning of period⁽¹⁾	1			2			2,743			(971		)	1,775
Cash – end of period⁽¹⁾	$	6		$	2		$	2,158		$	(1,296	)	$	870

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