Debt

12 Months Ended

Dec. 31, 2020


	December 31		December 31
(in millions of U.S. dollars)	2020		2019		Early Redemption Option
Repurchase agreements (weighted average interest rate of 0.3% in 2020 and 2.2% in 2019)	$	1,405	$	1,416	None
Short-term debt
Chubb INA:
$1,300 million 2.3% due November 2020	$	—	$	1,298	Make-whole premium plus 15 bps
Other short-term debt 2.75% due September 2020	—		1		None
Total short-term debt	$	—	$	1,299
Long-term debt
Chubb INA:
$1,000 million 2.875% senior notes due November 2022	$	998	$	997	Make-whole premium plus 20 bps
$475 million 2.7% senior notes due March 2023	474		473		Make-whole premium plus 10 bps
$700 million 3.35% senior notes due May 2024	698		697		Make-whole premium plus 15 bps
€700 million 0.3% senior notes due December 2024	841		776		Make-whole premium plus 15 bps
$800 million 3.15% senior notes due March 2025	797		796		Make-whole premium plus 15 bps
$1,500 million 3.35% senior notes due May 2026	1,493		1,492		Make-whole premium plus 20 bps
€575 million 0.875% senior notes due June 2027	691		635		Make-whole premium plus 20 bps
€900 million 1.55% senior notes due March 2028	1,079		993		Make-whole premium plus 15 bps
$100 million 8.875% debentures due August 2029	100		100		None
€700 million 0.875% senior notes due December 2029	840		775		Make-whole premium plus 20 bps
$1,000 million 1.375% senior notes due September 2030	991		—		Make-whole premium plus 15 bps
€575 million 1.4% senior notes due June 2031	687		633		Make-whole premium plus 25 bps
$200 million 6.8% debentures due November 2031	242		246		Make-whole premium plus 25 bps
$300 million 6.7% senior notes due May 2036	298		297		Make-whole premium plus 20 bps
$800 million 6.0% senior notes due May 2037	945		953		Make-whole premium plus 20 bps
€900 million 2.5% senior notes due March 2038	1,077		992		Make-whole premium plus 25 bps
$600 million 6.5% senior notes due May 2038	743		751		Make-whole premium plus 30 bps
$475 million 4.15% senior notes due March 2043	470		470		Make-whole premium plus 15 bps
$1,500 million 4.35% senior notes due November 2045	1,484		1,483		Make-whole premium plus 25 bps
Total long-term debt	$	14,948	$	13,559
Trust preferred securities
Chubb INA capital securities due April 2030	$	308	$	308	Redemption prices(1)

(1)Redemption prices are equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the capital securities from the redemption date to April 1, 2030.

a) Repurchase agreements

Chubb has executed repurchase agreements with certain counterparties under which Chubb agreed to sell securities and repurchase them at a future date for a predetermined price.

b) Short-term debt

Short-term debt comprises the current maturities of our long-term debt instruments described below. These short-term debt instruments were reclassified from long-term debt and are reflected in the table above. Chubb INA Holdings Inc.'s (Chubb INA) $1,300 million of 2.3 percent senior notes due November 2020 was paid upon maturity.

c) Long-term debt

The $100 million of 8.875 percent debentures due August 2029 do not have an early redemption option. The remaining Chubb INA senior notes and debentures, including the $1,000 million of 1.375 percent senior notes issued September 2020, and capital securities are redeemable at any time at Chubb INA's option subject to the provisions described in the table above. A "make-whole" premium is the present value of the remaining principal and interest discounted at the applicable U.S. Treasury rate. These debt securities are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law.

The senior notes and debentures do not have the benefit of any sinking fund and are guaranteed on a senior basis by Chubb Limited and they rank equally with all of Chubb's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt.

d) Trust preferred securities

In March 2000, ACE Capital Trust II, a Delaware statutory business trust, publicly issued $300 million of 9.7 percent Capital Securities (the Capital Securities) due to mature in April 2030. At the same time, Chubb INA purchased $9.2 million of common securities of ACE Capital Trust II. The sole assets of ACE Capital Trust II consist of $309 million principal amount of 9.7 percent Junior Subordinated Deferrable Interest Debentures (the Subordinated Debentures) issued by Chubb INA due to mature in April 2030.

Distributions on the Capital Securities are payable semi-annually and may be deferred for up to ten consecutive semi-annual periods (but no later than April 1, 2030). Any deferred payments would accrue interest compounded semi-annually if Chubb INA defers interest on the Subordinated Debentures. Interest on the Subordinated Debentures is payable semi-annually. Chubb INA may defer such interest payments (but no later than April 1, 2030), with such deferred payments accruing interest compounded semi-annually. The Capital Securities and the ACE Capital Trust II Common Securities will be redeemed upon repayment of the Subordinated Debentures.

Chubb Limited has guaranteed, on a subordinated basis, Chubb INA's obligations under the Subordinated Debentures, and distributions and other payments due on the Capital Securities. These guarantees, when taken together with Chubb's obligations under expense agreements entered into with ACE Capital Trust II, provide a full and unconditional guarantee of amounts due on the Capital Securities.