Information provided in connection with outstanding debt of subsidiaries

The following tables present condensed consolidating financial information at December 31, 2017 and December 31, 2016, and for the years ended December 31, 2017, 2016, and 2015 for Chubb Limited (Parent Guarantor) and Chubb INA Holdings Inc. (Subsidiary Issuer). 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, 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	$	—	$	168	$	102,276	$	—		$	102,444
Cash⁽¹⁾	3		1		839		(115		)	728
Insurance and reinsurance balances receivable	—		—		10,820		(1,486		)	9,334
Reinsurance recoverable on losses and loss expenses	—		—		27,514		(12,480		)	15,034
Reinsurance recoverable on policy benefits	—		—		1,194		(1,010		)	184
Value of business acquired	—		—		326		—			326
Goodwill and other intangible assets	—		—		22,054		—			22,054
Investments in subsidiaries	41,909		51,165		—		(93,074		)	—
Due from subsidiaries and affiliates, net	9,639		—		—		(9,639		)	—
Other assets	3		287		20,701		(4,073		)	16,918
Total assets	$	51,554	$	51,621	$	185,724	$	(121,877	)	$	167,022
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	74,767	$	(11,588	)	$	63,179
Unearned premiums	—		—		18,875		(3,659		)	15,216
Future policy benefits	—		—		6,331		(1,010		)	5,321
Due to subsidiaries and affiliates, net	—		9,432		207		(9,639		)	—
Affiliated notional cash pooling programs⁽¹⁾	—		115		—		(115		)	—
Repurchase agreements	—		—		1,408		—			1,408
Short-term debt	—		1,013		—		—			1,013
Long-term debt	—		11,546		10		—			11,556
Trust preferred securities	—		308		—		—			308
Other liabilities	382		1,411		18,848		(2,792		)	17,849
Total liabilities	382		23,825		120,446		(28,803		)	115,850
Total shareholders’ equity	51,172		27,796		65,278		(93,074		)	51,172
Total liabilities and shareholders’ equity	$	51,554	$	51,621	$	185,724	$	(121,877	)	$	167,022

⁽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, 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. 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 Statements of Operations and Comprehensive Income



For the Year Ended December 31, 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	$	—		$	—		$	29,244		$	—		$	29,244
Net premiums earned	—			—			29,034			—			29,034
Net investment income	4			14			3,107			—			3,125
Equity in earnings of subsidiaries	3,640			2,424			—			(6,064		)	—
Net realized gains (losses) including OTTI	—			(25		)	109			—			84
Losses and loss expenses	—			—			18,454			—			18,454
Policy benefits	—			—			676			—			676
Policy acquisition costs and administrative expenses	75			40			8,499			—			8,614
Interest (income) expense	(332		)	847			92			—			607
Other (income) expense	(12		)	93			(481		)	—			(400		)
Amortization of purchased intangibles	—			—			260			—			260
Chubb integration expenses	32			69			209			—			310
Income tax expense (benefit)	20			(742		)	583			—			(139		)
Net income	$	3,861		$	2,106		$	3,958		$	(6,064	)	$	3,861
Comprehensive income	$	4,718		$	3,075		$	4,430		$	(7,505	)	$	4,718

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 (Loss)



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 Expense	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 Statement of Cash Flows



For the Year Ended December 31, 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	$	781		$	1,648		$	4,598		$	(2,524	)	$	4,503
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(9		)	(25,738		)	—			(25,747		)
Purchases of fixed maturities held to maturity	—			—			(352		)	—			(352		)
Purchases of equity securities	—			—			(173		)	—			(173		)
Sales of fixed maturities available for sale	—			99			13,156			—			13,255
Sales of equity securities	—			—			187			—			187
Maturities and redemptions of fixed maturities available for sale	—			29			10,396			—			10,425
Maturities and redemptions of fixed maturities held to maturity	—			—			879			—			879
Net change in short-term investments	—			189			(726		)	—			(537		)
Net derivative instruments settlements	—			(15		)	(250		)	—			(265		)
Other	—			(10		)	(104		)	—			(114		)
Net cash flows (used for) from investing activities	—			283			(2,725		)	—			(2,442		)
Cash flows from financing activities
Dividends paid on Common Shares	(1,308		)	—			—			—			(1,308		)
Common Shares repurchased	—			—			(801		)	—			(801		)
Proceeds from issuance of repurchase agreements	—			—			2,353			—			2,353
Repayment of long-term debt	—			(500		)	(1		)	—			(501		)
Repayment of repurchase agreements	—			—			(2,348		)	—			(2,348		)
Proceeds from share-based compensation plans	—			—			151			—			151
Advances (to) from affiliates	892			(927		)	35			—			—
Dividends to parent company	—			—			(2,524		)	2,524			—
Net payments to affiliated notional cash pooling programs⁽¹⁾	(363		)	(504		)	—			867			—
Policyholder contract deposits	—			—			442			—			442
Policyholder contract withdrawals	—			—			(307		)	—			(307		)
Net cash flows used for financing activities	(779		)	(1,931		)	(3,000		)	3,391			(2,319		)
Effect of foreign currency rate changes on cash and cash equivalents	—			—			1			—			1
Net increase (decrease) in cash	2			—			(1,126		)	867			(257		)
Cash – beginning of year⁽¹⁾	1			1			1,965			(982		)	985
Cash – end of year⁽¹⁾	$	3		$	1		$	839		$	(115	)	$	728


⁽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, 2017 and 2016, 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, 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	—			—			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	—			—			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.