Segment information

3 Months Ended

Mar. 31, 2020

Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance.

Corporate results primarily include income and expenses not attributable to reportable segments and losses and loss expenses of asbestos and environmental (A&E) liabilities and certain other non-A&E run-off exposures.

For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income (loss) as the main measure of segment performance. Chubb calculates underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate Segment income (loss), include Net investment income (loss), Other (income) expense, and Amortization expense of purchased intangibles. For the North America Agricultural Insurance segment, management includes gains and losses on crop derivatives as a component of underwriting income (loss). For example, for the three months ended March 31, 2020, underwriting income in our North America Agricultural Insurance segment was $14 million. This amount includes $2 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) in the Corporate column below.

For the Life Insurance segment, management includes Net investment income (loss) and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life Insurance underwriting income (loss). For example, for the three months ended March 31, 2020, Life Insurance underwriting income of $83 million includes Net investment income of $95 million and losses from fair value changes in separate account assets of $56 million. The losses from fair value changes in separate account assets are reported in Other (income) expense in the table below.

The following tables present the Statement of Operations by segment:



For the Three Months Ended March 31, 2020 (in millions of U.S. dollars)	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance		Global Reinsurance			Life Insurance		Corporate			Chubb Consolidated



Net premiums written	$	3,252		$	1,107	$	157	$	2,598	$	218		$	645	$	—		$	7,977
Net premiums earned	3,376			1,200		94		2,307		186			631		—			7,794
Losses and loss expenses	2,181			683		63		1,258		87			202		11			4,485
Policy benefits	—			—		—		—		—			129		—			129
Policy acquisition costs	492			245		11		642		45			180		—			1,615
Administrative expenses	259			68		4		258		10			76		66			741
Underwriting income (loss)	444			204		16		149		44			44		(77		)	824
Net investment income (loss)	516			66		9		145		54			95		(24		)	861
Other (income) expense	(3		)	2		—		4		(15		)	44		23			55
Amortization expense of purchased intangibles	—			3		7		12		—			1		50			73
Segment income (loss)	$	963		$	265	$	18	$	278	$	113		$	94	$	(174	)	$	1,557
Net realized gains (losses)															(958		)	(958		)
Interest expense															132			132
Income tax expense															215			215
Net income (loss)															$	(1,479	)	$	252



For the Three Months Ended March 31, 2019 (in millions of U.S. dollars)	North America Commercial P&C Insurance			North America Personal P&C Insurance		North America Agricultural Insurance			Overseas General Insurance		Global Reinsurance			Life Insurance			Corporate			Chubb Consolidated



Net premiums written	$	2,951		$	1,056	$	130		$	2,395	$	202		$	579		$	—		$	7,313
Net premiums earned	3,085			1,154		55			2,114		168			561			—			7,137
Losses and loss expenses	1,973			757		(27		)	1,106		76			202			11			4,098
Policy benefits	—			—		—			—		—			196			—			196
Policy acquisition costs	459			231		7			596		43			128			—			1,464
Administrative expenses	240			68		1			249		10			79			63			710
Underwriting income (loss)	413			98		74			163		39			(44		)	(74		)	669
Net investment income (loss)	510			64		10			144		56			89			(37		)	836
Other (income) expense	(5		)	—		—			4		(9		)	(40		)	11			(39		)
Amortization expense of purchased intangibles	—			3		7			11		—			—			55			76
Segment income (loss)	$	928		$	159	$	77		$	292	$	104		$	85		$	(177	)	$	1,468
Net realized gains (losses) including OTTI																	(97		)	(97		)
Interest expense																	140			140
Chubb integration expenses																	3			3
Income tax expense																	188			188
Net income (loss)																	$	(605	)	$	1,040

Underwriting assets are reviewed in total by management for purposes of decision-making. Other than Unpaid losses and loss expenses, Reinsurance recoverables, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.