Debt

12 Months Ended

Dec. 31, 2019



	December 31		December 31
(in millions of U.S. dollars)	2019		2018		Early Redemption Option
Repurchase agreements (weighted average interest rate of 2.2% in 2019 and 2.5% in 2018)	$	1,416	$	1,418	None
Short-term debt
Chubb INA senior notes:
$500 million 5.9% due June 2019	$	—	$	500	Make-whole premium plus 0.40%
$1,300 million 2.3% due November 2020	1,298		—		Make-whole premium plus 0.15%
Other short-term debt (2.75% to 7.1% due December 2019 to September 2020)	1		9		None
Total short-term debt	$	1,299	$	509
Long-term debt
Chubb INA senior notes:
$1,300 million 2.3% due November 2020	$	—	$	1,297	Make-whole premium plus 0.15%
$1,000 million 2.875% due November 2022	997		996		Make-whole premium plus 0.20%
$475 million 2.7% due March 2023	473		473		Make-whole premium plus 0.10%
$700 million 3.35% due May 2024	697		696		Make-whole premium plus 0.15%
€700 million 0.3% due December 2024	776		—		Make-whole premium plus 0.15%
$800 million 3.15% due March 2025	796		796		Make-whole premium plus 0.15%
$1,500 million 3.35% due May 2026	1,492		1,491		Make-whole premium plus 0.20%
€575 million 0.875% due June 2027	635		—		Make-whole premium plus 0.20%
€900 million 1.55% due March 2028	993		1,008		Make-whole premium plus 0.15%
$100 million 8.875% due August 2029	100		100		None
€700 million 0.875% due December 2029	775		—		Make-whole premium plus 0.20%
€575 million 1.4% due June 2031	633		—		Make-whole premium plus 0.25%
$200 million 6.8% due November 2031	246		250		Make-whole premium plus 0.25%
$300 million 6.7% due May 2036	297		297		Make-whole premium plus 0.20%
$800 million 6.0% due May 2037	953		962		Make-whole premium plus 0.20%
€900 million 2.5% due March 2038	992		1,008		Make-whole premium plus 0.25%
$600 million 6.5% due May 2038	751		759		Make-whole premium plus 0.30%
$475 million 4.15% due March 2043	470		470		Make-whole premium plus 0.15%
$1,500 million 4.35% due November 2045	1,483		1,483		Make-whole premium plus 0.25%
Other long-term debt (2.75% due September 2020)	—		1		None
Total long-term debt	$	13,559	$	12,087
Trust preferred securities
Chubb INA capital securities due April 2030	$	308	$	308	Redemption prices⁽¹⁾


⁽¹⁾	Redemption prices are equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the capital securities from the redemption date to April 1, 2030.

a) Repurchase agreements

Chubb has executed repurchase agreements with certain counterparties under which Chubb agreed to sell securities and repurchase them at a future date for a predetermined price.

b) Short-term debt

Short-term debt comprises the current maturities of our long-term debt instruments described below. These short-term debt instruments were reclassified from long-term debt during 2019 and are reflected in the table above. Chubb INA Holdings Inc.'s (Chubb INA) $500 million of 5.9 percent senior notes due June 2019 was paid upon maturity.

c) Long-term debt

Certain of Chubb INA's senior notes and capital securities are redeemable at any time at Chubb INA's option subject to the provisions described in the table above. A "make-whole" premium is the present value of the remaining principal and interest discounted at the applicable U.S. Treasury rate. The senior notes and capital securities are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law.

The senior notes do not have the benefit of any sinking fund. These senior unsecured notes are guaranteed on a senior basis by Chubb Limited and they rank equally with all of Chubb's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt.

In June 2019, Chubb INA issued €575 million ($650 million based on the foreign exchange rate at the date of issuance) of 0.875 percent Euro denominated senior notes due June 2027 and €575 million ($650 million based on the foreign exchange rate at the date of issuance) of 1.4 percent Euro denominated senior notes due June 2031.

In December 2019, Chubb INA issued €700 million ($779 million based on the foreign exchange rate at the date of issuance) of 0.30 percent Euro denominated senior notes due December 2024 and €700 million ($779 million based on the foreign exchange rate at the date of issuance) of 0.875 percent Euro denominated senior notes due December 2029.

These senior notes are redeemable at any time at Chubb INA's option subject to a “make-whole” premium (the present value of the remaining principal and interest discounted at the applicable comparable government bond rate plus 15 basis points for the senior notes due 2024, 20 basis points for the senior notes due 2027 and 2029 and 25 basis points for the senior notes due 2031). The notes are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law. These notes do not have the benefit of any sinking fund. These senior unsecured notes are guaranteed on a senior basis by Chubb and they rank equally with all of Chubb's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt.

d) Trust preferred securities

In March 2000, ACE Capital Trust II, a Delaware statutory business trust, publicly issued $300 million of 9.7 percent Capital Securities (the Capital Securities) due to mature in April 2030. At the same time, Chubb INA purchased $9.2 million of common securities of ACE Capital Trust II. The sole assets of ACE Capital Trust II consist of $309 million principal amount of 9.7 percent Junior Subordinated Deferrable Interest Debentures (the Subordinated Debentures) issued by Chubb INA due to mature in April 2030.

Distributions on the Capital Securities are payable semi-annually and may be deferred for up to ten consecutive semi-annual periods (but no later than April 1, 2030). Any deferred payments would accrue interest compounded semi-annually if Chubb INA defers interest on the Subordinated Debentures. Interest on the Subordinated Debentures is payable semi-annually. Chubb INA may defer such interest payments (but no later than April 1, 2030), with such deferred payments accruing interest compounded semi-annually. The Capital Securities and the ACE Capital Trust II Common Securities will be redeemed upon repayment of the Subordinated Debentures.

Chubb Limited has guaranteed, on a subordinated basis, Chubb INA's obligations under the Subordinated Debentures, and distributions and other payments due on the Capital Securities. These guarantees, when taken together with Chubb's obligations under expense agreements entered into with ACE Capital Trust II, provide a full and unconditional guarantee of amounts due on the Capital Securities.