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

9 Months Ended

Sep. 30, 2020

Table Text Block Supplement [Abstract]

Condensed Consolidating Balance Sheet at September 30, 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	$	—	$	724	$	115,323	$	—	$	116,047
Cash (1)	31		—		1,799		(123)		1,707
Restricted cash	—		—		166		—		166
Insurance and reinsurance balances receivable	—		—		13,684		(3,096)		10,588
Reinsurance recoverable on losses and loss expenses	—		—		25,482		(9,812)		15,670
Reinsurance recoverable on policy benefits	—		—		298		(95)		203
Value of business acquired	—		—		286		—		286
Goodwill and other intangible assets	—		—		21,103		—		21,103
Investments in subsidiaries	53,715		54,125		—		(107,840)		—
Due from subsidiaries and affiliates, net	2,991		—		171		(3,162)		—
Other assets	8		391		23,459		(1,842)		22,016
Total assets	$	56,745	$	55,240	$	201,771	$	(125,970)	$	187,786
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	77,467	$	(9,562)	$	67,905
Unearned premiums	—		—		18,695		(1,193)		17,502
Future policy benefits	—		—		6,050		(95)		5,955
Due to subsidiaries and affiliates, net	—		3,162		—		(3,162)		—
Affiliated notional cash pooling programs (1)	—		123		—		(123)		—
Repurchase agreements	—		—		1,413		—		1,413
Short-term debt	—		1,300		—		—		1,300
Long-term debt	—		14,830		—		—		14,830
Trust preferred securities	—		308		—		—		308
Other liabilities	332		1,374		24,449		(3,995)		22,160
Total liabilities	332		21,097		128,074		(18,130)		131,373
Total shareholders’ equity	56,413		34,143		73,697		(107,840)		56,413
Total liabilities and shareholders’ equity	$	56,745	$	55,240	$	201,771	$	(125,970)	$	187,786

(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, 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 Statement Of Operations and Comprehensive Income

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)


For the Three Months Ended September 30, 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 premiums written	$	—	$	—	$	9,078	$	—	$	9,078
Net premiums earned	—		—		8,765		—		8,765
Net investment income	—		1		839		—		840
Equity in earnings of subsidiaries	1,174		516		—		(1,690)		—
Net realized gains (losses)	3		(192)		48		—		(141)
Losses and loss expenses	—		—		5,835		—		5,835
Policy benefits	—		—		198		—		198
Policy acquisition costs and administrative expenses	21		(33)		2,390		—		2,378
Interest (income) expense	(34)		151		13		—		130
Other (income) expense	(10)		(2)		(473)		—		(485)
Amortization of purchased intangibles	—		—		72		—		72
Income tax expense (benefit)	6		(66)		202		—		142
Net income	$	1,194	$	275	$	1,415	$	(1,690)	$	1,194
Comprehensive income	$	1,952	$	812	$	2,180	$	(2,992)	$	1,952

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)
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 Nine Months Ended September 30, 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 premiums written	$	—	$	—	$	25,410	$	—	$	25,410
Net premiums earned	—		—		24,687		—		24,687
Net investment income	(2)		6		2,524		—		2,528
Equity in earnings of subsidiaries	1,064		838		—		(1,902)		—
Net realized gains (losses)	5		(271)		(803)		—		(1,069)
Losses and loss expenses	—		—		16,897		—		16,897
Policy benefits	—		—		550		—		550
Policy acquisition costs and administrative expenses	66		(101)		7,089		—		7,054
Interest (income) expense	(103)		448		45		—		390
Other (income) expense	(27)		1		(346)		—		(372)
Amortization of purchased intangibles	—		—		217		—		217
Income tax expense (benefit)	16		(125)		404		—		295
Net income	$	1,115	$	350	$	1,552	$	(1,902)	$	1,115
Comprehensive income	$	2,352	$	1,484	$	2,840	$	(4,324)	$	2,352

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)
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 Statement of Cash Flows


Nine Months Ended September 30, 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	$	980	$	(363)	$	7,714	$	(1,090)	$	7,241
Cash flows from investing activities
Purchases of fixed maturities available for sale	—		(38)		(20,755)		—		(20,793)
Purchases of fixed maturities held to maturity	—		—		(42)		—		(42)
Purchases of equity securities	—		—		(3,622)		—		(3,622)
Sales of fixed maturities available for sale	—		9		9,528		—		9,537

Sales of equity securities	—		—		1,526		—		1,526
Maturities and redemptions of fixed maturities available for sale	—		35		8,674		—		8,709
Maturities and redemptions of fixed maturities held to maturity	—		—		841		—		841
Net change in short-term investments	—		256		(690)		—		(434)
Net derivative instruments settlements	—		66		(140)		—		(74)
Private equity contributions	—		—		(1,056)		—		(1,056)
Private equity distributions	—		—		588		—		588
Net deposit paid on share acquisition	—		—		(503)		—		(503)
Payment for Huatai Group interest	—		—		(1,054)		—		(1,054)
Capital contribution	(1,200)		—		—		1,200		—
Other	(2)		(3)		(347)		—		(352)
Net cash flows from (used for) investing activities	(1,202)		325		(7,052)		1,200		(6,729)
Cash flows from financing activities
Dividends paid on Common Shares	(1,035)		—		—		—		(1,035)
Common Shares repurchased	(333)		—		—		—		(333)
Proceeds from issuance of long-term debt	—		988		—		—		988

Proceeds from issuance of repurchase agreements	—		—		1,402		—		1,402
Repayment of repurchase agreements	—		—		(1,402)		—		(1,402)
Proceeds from share-based compensation plans	—		—		77		—		77
Dividend to parent company	—		—		(1,090)		1,090		—
Advances (to) from affiliates	1,621		(1,511)		(110)		—		—
Capital contribution	—		—		1,200		(1,200)		—
Net proceeds from (payments to) affiliated notional cash pooling programs (1)	—		123		—		(123)		—
Policyholder contract deposits	—		—		322		—		322
Policyholder contract withdrawals	—		—		(253)		—		(253)

Net cash flows from (used for) financing activities	253		(400)		146		(233)		(234)
Effect of foreign currency rate changes on cash and restricted cash	(2)		(4)		(45)		—		(51)
Net increase (decrease) in cash and restricted cash	29		(442)		763		(123)		227
Cash and restricted cash – beginning of period (1)	2		442		1,202		—		1,646
Cash and restricted cash – end of period (1)	$	31	$	—	$	1,965	$	(123)	$	1,873

(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, 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


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
Payment for Huatai Group interest	—		—		(329)		—		(329)
Capital contribution	(1,000)		(110)		—		1,110		—
Other	—		(10)		(487)		—		(497)
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.