Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Goodwill and Other intangible assets

Goodwill

The following table presents a roll-forward of Goodwill by segment:

(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		Chubb Consolidated
Balance at December 31, 2018	$	6,946	$	2,230	$	134	$	4,770	$	371	$	820	$	15,271
Foreign exchange revaluation and other	9		4		—		15		—		(3)		25
Balance at December 31, 2019	$	6,955	$	2,234	$	134	$	4,785	$	371	$	817	$	15,296
Acquisition of Banchile Seguros de Vida	—		—		—		16		—		28		44
Foreign exchange revaluation and other	17		6		—		35		—		2		60
Balance at December 31, 2020	$	6,972	$	2,240	$	134	$	4,836	$	371	$	847	$	15,400

Other intangible assets

Other intangible assets at December 31, 2020 and 2019 were $5,811 million and $6,063 million, respectively, principally acquired from the Chubb Corp acquisition. Other intangible assets in 2020 and 2019 comprised $2,846 million and $3,114 million, respectively, that are subject to amortization, principally agency distribution relationships and renewal rights, and $2,965 million and $2,949 million, respectively, that are not subject to amortization, principally trademarks. Amortization expense related to purchased intangibles was $290 million, $305 million, and $339 million for the years ended December 31, 2020, 2019, and 2018, principally related to agency distribution relationships and renewal rights.

The following table presents, as of December 31, 2020, the expected estimated pre-tax amortization expense (benefit) of purchased intangibles, at current foreign currency exchange rates, for the next five years:

	Associated with the Chubb Corp Acquisition
For the Years Ending December 31 (in millions of U.S. dollars)	Agency distribution relationships and renewal rights		Fair value adjustment on Unpaid losses and loss expense (1)		Total		Other intangible assets		Total Amortization of purchased intangibles
2021	$	217	$	(20)	$	197	$	89	$	286
2022	197		(14)		183		101		284
2023	178		(7)		171		96		267
2024	160		(6)		154		90		244
2025	145		(6)		139		89		228
Total	$	897	$	(53)	$	844	$	465	$	1,309

(1)In connection with the Chubb Corp acquisition, we recorded an increase to Unpaid losses and loss expenses acquired to adjust the carrying value of Chubb Corp's historical Unpaid losses and loss expenses to fair value as of the acquisition date. This fair value adjustment amortizes through Amortization of purchased intangibles on the Consolidated statements of operations through the year 2032. The balance of the fair value adjustment on Unpaid losses and loss expense was $110 million and $145 million at December 31, 2020 and 2019, respectively. Refer to Note 1(h) for additional information.

VOBA

The following table presents a roll-forward of VOBA:

(in millions of U.S. dollars)	2020		2019		2018
Balance, beginning of year	$	306	$	295	$	326
Amortization of VOBA (1)	(27)		(24)		(25)
Foreign exchange revaluation and other	(16)		35		(6)
Balance, end of year	$	263	$	306	$	295

(1)Recognized in Policy acquisition costs in the Consolidated statements of operations.

The following table presents, as of December 31, 2020, the expected estimated pre-tax amortization expense related to VOBA for the next five years at current foreign exchange rates:

For the Years Ending December 31	VOBA
(in millions of U.S. dollars)
2021	$	22
2022	21
2023	19
2024	17
2025	16
Total	$	95