Segment information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment information

Segment information

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.

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. Certain items are presented in a different manner for segment reporting purposes than in the consolidated financial statements. These items are reconciled to the consolidated presentation in the Segment measure reclass column below. These items include:

•Losses and loss expenses include realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains (losses) from these derivatives are reclassified to losses and loss expenses.

•Policy benefits include gains and losses from fair value changes in separate account assets, as well as the offsetting movement in separate account liabilities. The gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified from Other (income) expense. We view gains and losses from fair value changes in both separate account assets and liabilities as part of the results of our underwriting operations, and therefore these gains and losses are reclassified to policy benefits.

•Net investment income includes investment income reclassified from Other (income) expense related to partially-owned investment companies (private equity partnerships) where our ownership interest is in excess of three percent. We view investment income from these equity-method private equity partnerships as net investment income.

The following tables present the Statement of Operations by segment:

For the Three Months Ended September 30, 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		Segment Measure Reclass		Chubb Consolidated
Net premiums written	$	3,778	$	1,285	$	986	$	2,238	$	181	$	610	$	—	$	—	$	9,078
Net premiums earned	3,456		1,231		971		2,337		171		599		—		—		8,765
Losses and loss expenses	2,444		961		845		1,192		154		183		55		1		5,835
Policy benefits	—		—		—		—		—		174		—		24		198
Policy acquisition costs	489		248		56		637		40		175		—		—		1,645
Administrative expenses	243		65		5		260		9		80		71		—		733
Underwriting income (loss)	280		(43)		65		248		(32)		(13)		(126)		(25)		354
Net investment income (loss)	510		64		7		130		85		95		(19)		(32)		840
Other (income) expense	7		1		—		1		—		(23)		(415)		(56)		(485)
Amortization expense of purchased intangibles	—		2		7		10		—		1		52		—		72
Segment income	$	783	$	18	$	65	$	367	$	53	$	104	$	218	$	(1)	$	1,607
Net realized gains (losses)													(142)		1		(141)
Interest expense													130		—		130
Income tax expense													142		—		142
Net income (loss)													$	(196)	$	—	$	1,194

For the Three Months Ended September 30, 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		Segment Measure Reclass		Chubb Consolidated
Net premiums written	$	3,452	$	1,251	$	938	$	2,228	$	141	$	612	$	—	$	—	$	8,622
Net premiums earned	3,185		1,187		941		2,256		160		598		—		—		8,327
Losses and loss expenses	2,051		674		880		1,154		79		190		38		(14)		5,052
Policy benefits	—		—		—		—		—		165		—		(7)		158
Policy acquisition costs	459		240		56		630		42		176		—		—		1,603
Administrative expenses	256		72		4		257		9		80		74		—		752
Underwriting income (loss)	419		201		1		215		30		(13)		(112)		21		762
Net investment income (loss)	538		66		8		147		71		92		(28)		(21)		873
Other (income) expense	5		1		—		2		—		(17)		(34)		(14)		(57)
Amortization expense of purchased intangibles	—		3		7		11		—		1		54		—		76
Segment income (loss)	$	952	$	263	$	2	$	349	$	101	$	95	$	(160)	$	14	$	1,616
Net realized gains (losses) including OTTI													(141)		(14)		(155)
Interest expense													138		—		138
Chubb integration expenses													2		—		2
Income tax expense													230		—		230
Net income (loss)													$	(671)	$	—	$	1,091

For the Nine Months Ended September 30, 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		Segment Measure Reclass		Chubb Consolidated
Net premiums written	$	10,750	$	3,719	$	1,604	$	6,857	$	606	$	1,874	$	—	$	—	$	25,410
Net premiums earned	10,427		3,623		1,441		6,838		520		1,838		—		—		24,687
Losses and loss expenses	8,123		2,406		1,223		3,935		314		556		342		(2)		16,897
Policy benefits	—		—		—		—		—		542		—		8		550
Policy acquisition costs	1,452		724		96		1,903		127		551		—		—		4,853
Administrative expenses	751		199		12		759		28		238		214		—		2,201
Underwriting income (loss)	101		294		110		241		51		(49)		(556)		(6)		186
Net investment income (loss)	1,544		195		23		396		214		285		(65)		(64)		2,528
Other (income) expense	19		4		1		10		1		(52)		(283)		(72)		(372)
Amortization expense of purchased intangibles	—		8		20		33		—		3		153		—		217
Segment income (loss)	$	1,626	$	477	$	112	$	594	$	264	$	285	$	(491)	$	2	$	2,869
Net realized gains (losses)													(1,067)		(2)		(1,069)
Interest expense													390		—		390
Income tax expense													295		—		295
Net income (loss)													$	(2,243)	$	—	$	1,115

For the Nine Months Ended September 30, 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		Segment Measure Reclass		Chubb Consolidated
Net premiums written	$	9,937	$	3,616	$	1,534	$	6,881	$	540	$	1,770	$	—	$	—	$	24,278
Net premiums earned	9,660		3,509		1,374		6,595		487		1,730		—		—		23,355
Losses and loss expenses	6,238		2,178		1,163		3,385		245		581		83		(8)		13,865
Policy benefits	—		—		—		—		—		495		—		20		515
Policy acquisition costs	1,377		708		90		1,855		127		454		—		—		4,611
Administrative expenses	755		211		9		771		26		237		211		—		2,220
Underwriting income (loss)	1,290		412		112		584		89		(37)		(294)		(12)		2,144
Net investment income (loss)	1,584		194		22		444		206		278		(98)		(62)		2,568
Other (income) expense	17		2		1		11		—		(37)		(238)		(82)		(326)
Amortization expense of purchased intangibles	—		9		21		34		—		2		163		—		229
Segment income (loss)	$	2,857	$	595	$	112	$	983	$	295	$	276	$	(317)	$	8	$	4,809
Net realized gains (losses) including OTTI													(467)		(8)		(475)
Interest expense													418		—		418
Chubb integration expenses													9		—		9
Income tax expense													626		—		626
Net income (loss)													$	(1,837)	$	—	$	3,281

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.