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

9 Months Ended

Sep. 30, 2019

Table Text Block Supplement [Abstract]

Condensed Consolidating Balance Sheet at September 30, 2019



(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	$	—	$	227	$	106,951	$	—		$	107,178
Cash ⁽¹⁾	2		—		2,706		(1,230		)	1,478
Restricted cash	—		—		111		—			111
Insurance and reinsurance balances receivable	—		—		12,519		(2,116		)	10,403
Reinsurance recoverable on losses and loss expenses	—		—		25,284		(9,757		)	15,527
Reinsurance recoverable on policy benefits	—		—		293		(94		)	199
Value of business acquired	—		—		274		—			274
Goodwill and other intangible assets	—		—		21,378		—			21,378
Investments in subsidiaries	49,471		53,381		—		(102,852		)	—
Due from subsidiaries and affiliates, net	6,068		—		—		(6,068		)	—
Other assets	7		486		20,011		(1,904		)	18,600
Total assets	$	55,548	$	54,094	$	189,527	$	(124,021	)	$	175,148
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	72,389	$	(9,377	)	$	63,012
Unearned premiums	—		—		17,767		(1,196		)	16,571
Future policy benefits	—		—		5,832		(94		)	5,738
Due to subsidiaries and affiliates, net	—		5,953		115		(6,068		)	—
Affiliated notional cash pooling programs ⁽¹⁾	628		602		—		(1,230		)	—
Repurchase agreements	—		—		1,416		—			1,416
Short-term debt	—		—		10		—			10
Long-term debt	—		13,285		—		—			13,285
Trust preferred securities	—		308		—		—			308
Other liabilities	348		1,814		21,278		(3,204		)	20,236
Total liabilities	976		21,962		118,807		(21,169		)	120,576
Total shareholders’ equity	54,572		32,132		70,720		(102,852		)	54,572
Total liabilities and shareholders’ equity	$	55,548	$	54,094	$	189,527	$	(124,021	)	$	175,148

⁽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, 2019, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2018



(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	$	—	$	214	$	100,754	$	—		$	100,968
Cash ⁽¹⁾	1		2		1,896		(652		)	1,247
Restricted cash	—		—		93		—			93
Insurance and reinsurance balances receivable	—		—		11,861		(1,786		)	10,075
Reinsurance recoverable on losses and loss expenses	—		—		26,422		(10,429		)	15,993
Reinsurance recoverable on policy benefits	—		—		306		(104		)	202
Value of business acquired	—		—		295		—			295
Goodwill and other intangible assets	—		—		21,414		—			21,414
Investments in subsidiaries	43,531		50,209		—		(93,740		)	—
Due from subsidiaries and affiliates, net	7,074		—		598		(7,672		)	—
Other assets	3		1,007		18,102		(1,628		)	17,484
Total assets	$	50,609	$	51,432	$	181,741	$	(116,011	)	$	167,771
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	72,857	$	(9,897	)	$	62,960
Unearned premiums	—		—		16,611		(1,079		)	15,532
Future policy benefits	—		—		5,610		(104		)	5,506
Due to subsidiaries and affiliates, net	—		7,672		—		(7,672		)	—
Affiliated notional cash pooling programs ⁽¹⁾	35		617		—		(652		)	—
Repurchase agreements	—		—		1,418		—			1,418
Short-term debt	—		500		9		—			509
Long-term debt	—		12,086		1		—			12,087
Trust preferred securities	—		308		—		—			308
Other liabilities	262		2,545		19,199		(2,867		)	19,139
Total liabilities	297		23,728		115,705		(22,271		)	117,459
Total shareholders’ equity	50,312		27,704		66,036		(93,740		)	50,312
Total liabilities and shareholders’ equity	$	50,609	$	51,432	$	181,741	$	(116,011	)	$	167,771

⁽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, 2018, 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, 2019	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	$	—		$	—		$	8,622		$	—		$	8,622
Net premiums earned	—			—			8,327			—			8,327
Net investment income	1			(3		)	875			—			873
Equity in earnings of subsidiaries	1,053			824			—			(1,877		)	—
Net realized gains (losses) including OTTI	(4		)	68			(219		)	—			(155		)
Losses and loss expenses	—			—			5,052			—			5,052
Policy benefits	—			—			158			—			158
Policy acquisition costs and administrative expenses	22			(5		)	2,338			—			2,355
Interest (income) expense	(59		)	171			26			—			138
Other (income) expense	(7		)	(3		)	(47		)	—			(57		)
Amortization of purchased intangibles	—			—			76			—			76
Chubb integration expenses	—			—			2			—			2
Income tax expense (benefit)	3			(33		)	260			—			230
Net income	$	1,091		$	759		$	1,118		$	(1,877	)	$	1,091
Comprehensive income	$	1,473		$	1,138		$	1,517		$	(2,655	)	$	1,473

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended September 30, 2018	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	$	—		$	—		$	8,110		$	—		$	8,110
Net premiums earned	—			—			7,908			—			7,908
Net investment income	2			3			818			—			823
Equity in earnings of subsidiaries	1,177			709			—			(1,886		)	—
Net realized gains (losses) including OTTI	(1		)	18			2			—			19
Losses and loss expenses	—			—			4,868			—			4,868
Policy benefits	—			—			127			—			127
Policy acquisition costs and administrative expenses	23			(90		)	2,290			—			2,223
Interest (income) expense	(75		)	203			36			—			164
Other (income) expense	(9		)	12			(148		)	—			(145		)
Amortization of purchased intangibles	—			—			83			—			83
Chubb integration expenses	3			1			12			—			16
Income tax expense (benefit)	5			(24		)	202			—			183
Net income	$	1,231		$	628		$	1,258		$	(1,886	)	$	1,231
Comprehensive income	$	592		$	47		$	640		$	(687	)	$	592

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Nine Months Ended September 30, 2019	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	$	—		$	—		$	24,278		$	—		$	24,278
Net premiums earned	—			—			23,355			—			23,355
Net investment income	3			(13		)	2,578			—			2,568
Equity in earnings of subsidiaries	3,147			2,345			—			(5,492		)	—
Net realized gains (losses) including OTTI	1			34			(510		)	—			(475		)
Losses and loss expenses	—			—			13,865			—			13,865
Policy benefits	—			—			515			—			515
Policy acquisition costs and administrative expenses	64			(25		)	6,792			—			6,831
Interest (income) expense	(187		)	536			69			—			418
Other (income) expense	(19		)	1			(308		)	—			(326		)
Amortization of purchased intangibles	—			—			229			—			229
Chubb integration expenses	—			2			7			—			9
Income tax expense (benefit)	12			(120		)	734			—			626
Net income	$	3,281		$	1,972		$	3,520		$	(5,492	)	$	3,281
Comprehensive income	$	6,250		$	4,476		$	6,486		$	(10,962	)	$	6,250

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Nine Months Ended September 30, 2018	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	$	—		$	—		$	23,229		$	—		$	23,229
Net premiums earned	—			—			22,599			—			22,599
Net investment income	5			12			2,440			—			2,457
Equity in earnings of subsidiaries	3,440			2,048			—			(5,488		)	—
Net realized gains (losses) including OTTI	(1		)	67			(31		)	—			35
Losses and loss expenses	—			—			13,457			—			13,457
Policy benefits	—			—			428			—			428
Policy acquisition costs and administrative expenses	64			(49		)	6,575			—			6,590
Interest (income) expense	(231		)	616			103			—			488
Other (income) expense	(18		)	28			(317		)	—			(307		)
Amortization of purchased intangibles	—			—			253			—			253
Chubb integration expenses	7			2			30			—			39
Income tax expense (benefit)	15			(119		)	640			—			536
Net income	$	3,607		$	1,649		$	3,839		$	(5,488	)	$	3,607
Comprehensive income (loss)	$	1,322		$	(199	)	$	1,606		$	(1,407	)	$	1,322

Condensed Consolidating Statement of Cash Flows



Nine Months Ended September 30, 2019	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	$	421		$	1,118		$	5,234		$	(1,860	)	$	4,913
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(16		)	(19,762		)	—			(19,778		)
Purchases of fixed maturities held to maturity	—			—			(143		)	—			(143		)
Purchases of equity securities	—			—			(466		)	—			(466		)
Sales of fixed maturities available for sale	—			1			10,435			—			10,436
Sales of equity securities	—			—			577			—			577
Maturities and redemptions of fixed maturities available for sale	—			18			6,372			—			6,390
Maturities and redemptions of fixed maturities held to maturity	—			—			814			—			814
Net change in short-term investments	—			(5		)	207			—			202
Net derivative instruments settlements	—			(55		)	(592		)	—			(647		)
Private equity contributions	—			—			(1,093		)	—			(1,093		)
Private equity distributions	—			—			973			—			973
Capital contribution	(1,000		)	(110		)	—			1,110			—
Other	—			(10		)	(816		)	—			(826		)
Net cash flows used for investing activities	(1,000		)	(177		)	(3,494		)	1,110			(3,561		)
Cash flows from financing activities
Dividends paid on Common Shares	(1,014		)	—			—			—			(1,014		)
Common Shares repurchased	—			—			(1,203		)	—			(1,203		)
Proceeds from issuance of long-term debt	—			1,286			—			—			1,286
Repayment of long-term debt	—			(500		)	(1		)	—			(501		)
Proceeds from issuance of repurchase agreements	—			—			2,394			—			2,394
Repayment of repurchase agreements	—			—			(2,396		)	—			(2,396		)
Proceeds from share-based compensation plans	—			—			155			—			155
Dividend to parent company	—			—			(1,860		)	1,860			—
Advances (to) from affiliates	996			(1,715		)	719			—			—
Capital contribution	—			—			1,110			(1,110		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs ⁽¹⁾	593			(15		)	—			(578		)	—
Policyholder contract deposits	—			—			376			—			376
Policyholder contract withdrawals	—			—			(221		)	—			(221		)
Net cash flows from (used for) financing activities	575			(944		)	(927		)	172			(1,124		)
Effect of foreign currency rate changes on cash and restricted cash	5			1			15			—			21
Net increase (decrease) in cash and restricted cash	1			(2		)	828			(578		)	249
Cash and restricted cash – beginning of period ⁽¹⁾	1			2			1,989			(652		)	1,340
Cash and restricted cash – end of period ⁽¹⁾	$	2		$	—		$	2,817		$	(1,230	)	$	1,589

⁽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, 2019 and December 31, 2018, 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, 2018	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	$	237		$	4,701		$	3,797		$	(4,838	)	$	3,897
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(30		)	(16,758		)	—			(16,788		)
Purchases of fixed maturities held to maturity	—			—			(380		)	—			(380		)
Purchases of equity securities	—			—			(148		)	—			(148		)
Sales of fixed maturities available for sale	—			6			9,035			—			9,041
Sales of equity securities	—			—			247			—			247
Maturities and redemptions of fixed maturities available for sale	—			15			5,467			—			5,482
Maturities and redemptions of fixed maturities held to maturity	—			—			1,001			—			1,001
Net change in short-term investments	—			6			58			—			64
Net derivative instruments settlements	—			(7		)	(39		)	—			(46		)
Private equity contributions	—			—			(1,112		)	—			(1,112		)
Private equity distributions	—			—			743			—			743
Capital contribution	(1,125		)	(3,500		)	—			4,625			—
Other	—			(18		)	(213		)	—			(231		)
Net cash flows used for investing activities	(1,125		)	(3,528		)	(2,099		)	4,625			(2,127		)
Cash flows from financing activities
Dividends paid on Common Shares	(1,001		)	—			—			—			(1,001		)
Common Shares repurchased	—			—			(732		)	—			(732		)
Proceeds from issuance of long-term debt	—			2,171			—			—			2,171
Repayment of long-term debt	—			(2,000		)	(1		)	—			(2,001		)
Proceeds from issuance of repurchase agreements	—			—			1,572			—			1,572
Repayment of repurchase agreements	—			—			(1,566		)	—			(1,566		)
Proceeds from share-based compensation plans	—			—			86			—			86
Dividend to parent company	—			—			(4,838		)	4,838			—
Advances (to) from affiliates	1,722			(1,310		)	(412		)	—			—
Capital contribution	—			—			4,625			(4,625		)	—
Net proceeds from affiliated notional cash pooling programs ⁽¹⁾	165			(34		)	—			(131		)	—
Policyholder contract deposits	—			—			269			—			269
Policyholder contract withdrawals	—			—			(222		)	—			(222		)
Net cash flows from (used for) financing activities	886			(1,173		)	(1,219		)	82			(1,424		)
Effect of foreign currency rate changes on cash and restricted cash	(1		)	—			(39		)	—			(40		)
Net increase (decrease) in cash and restricted cash	(3		)	—			440			(131		)	306
Cash and restricted cash – beginning of period ⁽¹⁾	3			1			962			(115		)	851
Cash and restricted cash – end of period ⁽¹⁾	$	—		$	1		$	1,402		$	(246	)	$	1,157

⁽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, 2018 and December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.