Information provided in connection with outstanding debt of subsidiaries

3 Months Ended

Mar. 31, 2020

Disclosure Text Block Supplement [Abstract]

Information provided in connection with outstanding debt of subsidiaries

The following tables present condensed consolidating financial information at March 31, 2020 and December 31, 2019, and for the three months ended March 31, 2020 and 2019 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 March 31, 2020



(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	$	—	$	229	$	105,055	$	—		$	105,284
Cash ⁽¹⁾	10		49		2,193		(740		)	1,512
Restricted cash	—		—		146		—			146
Insurance and reinsurance balances receivable	—		—		12,727		(2,669		)	10,058
Reinsurance recoverable on losses and loss expenses	—		—		24,293		(9,395		)	14,898
Reinsurance recoverable on policy benefits	—		—		288		(92		)	196
Value of business acquired	—		—		289		—			289
Goodwill and other intangible assets	—		—		20,873		—			20,873
Investments in subsidiaries	49,573		50,731		—		(100,304		)	—
Due from subsidiaries and affiliates, net	3,695		—		—		(3,695		)	—
Other assets	6		340		21,345		(1,820		)	19,871
Total assets	$	53,284	$	51,349	$	187,209	$	(118,715	)	$	173,127
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	71,283	$	(9,069	)	$	62,214
Unearned premiums	—		—		17,652		(1,193		)	16,459
Future policy benefits	—		—		5,868		(92		)	5,776
Due to subsidiaries and affiliates, net	—		3,338		357		(3,695		)	—
Affiliated notional cash pooling programs ⁽¹⁾	740		—		—		(740		)	—
Repurchase agreements	—		—		1,408		—			1,408
Short-term debt	—		1,299		1		—			1,300
Long-term debt	—		13,510		—		—			13,510
Trust preferred securities	—		308		—		—			308
Other liabilities	347		1,595		21,635		(3,622		)	19,955
Total liabilities	1,087		20,050		118,204		(18,411		)	120,930
Total shareholders’ equity	52,197		31,299		69,005		(100,304		)	52,197
Total liabilities and shareholders’ equity	$	53,284	$	51,349	$	187,209	$	(118,715	)	$	173,127

⁽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 March 31, 2020, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 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	$	—	$	1,013	$	108,221	$	—		$	109,234
Cash ⁽¹⁾	2		442		1,093		—			1,537
Restricted cash	—		—		109		—			109
Insurance and reinsurance balances receivable	—		—		12,920		(2,563		)	10,357
Reinsurance recoverable on losses and loss expenses	—		—		24,780		(9,599		)	15,181
Reinsurance recoverable on policy benefits	—		—		292		(95		)	197
Value of business acquired	—		—		306		—			306
Goodwill and other intangible assets	—		—		21,359		—			21,359
Investments in subsidiaries	50,853		52,076		—		(102,929		)	—
Due from subsidiaries and affiliates, net	4,776		—		—		(4,776		)	—
Other assets	12		408		20,072		(1,829		)	18,663
Total assets	$	55,643	$	53,939	$	189,152	$	(121,791	)	$	176,943
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	71,916	$	(9,226	)	$	62,690
Unearned premiums	—		—		17,978		(1,207		)	16,771
Future policy benefits	—		—		5,909		(95		)	5,814
Due to subsidiaries and affiliates, net	—		4,446		330		(4,776		)	—
Repurchase agreements	—		—		1,416		—			1,416
Short-term debt	—		1,298		1		—			1,299
Long-term debt	—		13,559		—		—			13,559
Trust preferred securities	—		308		—		—			308
Other liabilities	312		1,649		21,352		(3,558		)	19,755
Total liabilities	312		21,260		118,902		(18,862		)	121,612
Total shareholders’ equity	55,331		32,679		70,250		(102,929		)	55,331
Total liabilities and shareholders’ equity	$	55,643	$	53,939	$	189,152	$	(121,791	)	$	176,943


⁽¹⁾	Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to the 2019 Form 10-K for additional information.

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)



For the Three Months Ended March 31, 2020	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	$	—		$	—		$	7,977		$	—		$	7,977
Net premiums earned	—			—			7,794			—			7,794
Net investment income	(2		)	4			859			—			861
Equity in earnings of subsidiaries	256			593			—			(849		)	—
Net realized gains (losses)	(21		)	113			(1,050		)	—			(958		)
Losses and loss expenses	—			—			4,485			—			4,485
Policy benefits	—			—			129			—			129
Policy acquisition costs and administrative expenses	24			(38		)	2,370			—			2,356
Interest (income) expense	(34		)	148			18			—			132
Other (income) expense	(9		)	8			56			—			55
Amortization of purchased intangibles	—			—			73			—			73
Income tax expense	—			7			208			—			215
Net income	$	252		$	585		$	264		$	(849	)	$	252
Comprehensive income (loss)	$	(2,460	)	$	(1,200	)	$	(2,418	)	$	3,618		$	(2,460	)

Condensed Consolidating Statements of Operations and Comprehensive Income



For the Three Months Ended March 31, 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	$	—		$	—		$	7,313		$	—		$	7,313
Net premiums earned	—			—			7,137			—			7,137
Net investment income	1			(4		)	839			—			836
Equity in earnings of subsidiaries	990			759			—			(1,749		)	—
Net realized gains (losses) including OTTI	1			(13		)	(85		)	—			(97		)
Losses and loss expenses	—			—			4,098			—			4,098
Policy benefits	—			—			196			—			196
Policy acquisition costs and administrative expenses	20			(15		)	2,169			—			2,174
Interest (income) expense	(66		)	185			21			—			140
Other (income) expense	(6		)	3			(36		)	—			(39		)
Amortization of purchased intangibles	—			—			76			—			76
Chubb integration expenses	—			2			1			—			3
Income tax expense (benefit)	4			(42		)	226			—			188
Net income	$	1,040		$	609		$	1,140		$	(1,749	)	$	1,040
Comprehensive income	$	2,718		$	1,941		$	2,788		$	(4,729	)	$	2,718

Condensed Consolidating Statement of Cash Flows



Three Months Ended March 31, 2020	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 (used for) operating activities	$	65		$	(148	)	$	1,795		$	—		$	1,712
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(11		)	(6,463		)	—			(6,474		)
Purchases of fixed maturities held to maturity	—			—			(6		)	—			(6		)
Purchases of equity securities	—			—			(1,380		)	—			(1,380		)
Sales of fixed maturities available for sale	—			—			4,687			—			4,687
Sales of equity securities	—			—			131			—			131
Maturities and redemptions of fixed maturities available for sale	—			15			2,741			—			2,756
Maturities and redemptions of fixed maturities held to maturity	—			—			440			—			440
Net change in short-term investments	—			781			(229		)	—			552
Net derivative instruments settlements	—			78			31			—			109
Private equity contributions	—			—			(361		)	—			(361		)
Private equity distributions	—			—			211			—			211
Deposit paid on share acquisition	—			—			(1,550		)	—			(1,550		)
Capital contribution	(1,200		)	—			—			1,200			—
Other	—			(3		)	(122		)	—			(125		)
Net cash flows from (used for) investing activities	(1,200		)	860			(1,870		)	1,200			(1,010		)
Cash flows from financing activities
Dividends paid on Common Shares	(339		)	—			—			—			(339		)
Common Shares repurchased	(323		)	—			—			—			(323		)
Proceeds from issuance of repurchase agreements	—			—			952			—			952
Repayment of repurchase agreements	—			—			(952		)	—			(952		)
Proceeds from share-based compensation plans	—			—			47			—			47
Dividend to parent company	—			—			—			—			—
Advances (to) from affiliates	1,066			(1,102		)	36			—			—
Capital contribution	—			—			1,200			(1,200		)	—
Net proceeds from (payments to) affiliated notional cash pooling programs ⁽¹⁾	740			—			—			(740		)	—
Policyholder contract deposits	—			—			135			—			135
Policyholder contract withdrawals	—			—			(162		)	—			(162		)
Other	—			(3		)	—						(3		)
Net cash flows from (used for) financing activities	1,144			(1,105		)	1,256			(1,940		)	(645		)
Effect of foreign currency rate changes on cash and restricted cash	(1		)	—			(44		)	—			(45		)
Net increase (decrease) in cash and restricted cash	8			(393		)	1,137			(740		)	12
Cash and restricted cash – beginning of period ⁽¹⁾	2			442			1,202			—			1,646
Cash and restricted cash – end of period ⁽¹⁾	$	10		$	49		$	2,339		$	(740	)	$	1,658

⁽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 March 31, 2020 and December 31, 2019, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows



Three Months Ended March 31, 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 (used for) operating activities	$	307		$	(163	)	$	1,378		$	(200	)	$	1,322
Cash flows from investing activities
Purchases of fixed maturities available for sale	—			(3		)	(5,558		)	—			(5,561		)
Purchases of fixed maturities held to maturity	—			—			(1		)	—			(1		)
Purchases of equity securities	—			—			(49		)	—			(49		)
Sales of fixed maturities available for sale	—			—			3,293			—			3,293
Sales of equity securities	—			—			60			—			60
Maturities and redemptions of fixed maturities available for sale	—			6			1,825			—			1,831
Maturities and redemptions of fixed maturities held to maturity	—			—			280			—			280
Net change in short-term investments	—			(3		)	(36		)	—			(39		)
Net derivative instruments settlements	—			(28		)	(330		)	—			(358		)
Private equity contributions	—			—			(410		)	—			(410		)
Private equity distributions	—			—			368			—			368
Capital contribution	—			(110		)	—			110			—
Other	—			(12		)	(75		)	—			(87		)
Net cash flows used for investing activities	—			(150		)	(633		)	110			(673		)
Cash flows from financing activities
Dividends paid on Common Shares	(336		)	—			—			—			(336		)
Common Shares repurchased	—			—			(367		)	—			(367		)
Proceeds from issuance of repurchase agreements	—			—			471			—			471
Repayment of repurchase agreements	—			—			(470		)	—			(470		)
Proceeds from share-based compensation plans	—			—			35			—			35
Dividend to parent company	—			—			(200		)	200			—
Advances (to) from affiliates	(266		)	308			(42		)	—			—
Capital contribution	—			—			110			(110		)	—
Net proceeds from affiliated notional cash pooling programs ⁽¹⁾	296			74			—			(370		)	—
Policyholder contract deposits	—			—			115			—			115
Policyholder contract withdrawals	—			—			(78		)	—			(78		)
Net cash flows from (used for) financing activities	(306		)	382			(426		)	(280		)	(630		)
Effect of foreign currency rate changes on cash and restricted cash	—			—			34			—			34
Net increase (decrease) in cash and restricted cash	1			69			353			(370		)	53
Cash and restricted cash – beginning of period ⁽¹⁾	1			2			1,989			(652		)	1,340
Cash and restricted cash – end of period ⁽¹⁾	$	2		$	71		$	2,342		$	(1,022	)	$	1,393

⁽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 March 31, 2019 and December 31, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.