Information provided in connection with outstanding debt of subsidiaries

12 Months Ended

Dec. 31, 2020

Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract]

Information provided in connection with outstanding debt of subsidiaries

The following tables present condensed consolidating financial information at December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019, and 2018 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 December 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	$	—	$	197	$	118,472	$	—	$	118,669
Cash (1)	84		1		1,934		(272)		1,747
Restricted Cash	—		—		89		—		89
Insurance and reinsurance balances receivable	—		—		13,926		(3,446)		10,480
Reinsurance recoverable on losses and loss expenses	—		—		25,217		(9,625)		15,592
Reinsurance recoverable on policy benefits	—		—		299		(93)		206
Value of business acquired	—		—		263		—		263
Goodwill and other intangible assets	—		—		21,211		—		21,211
Investments in subsidiaries	56,148		55,231		—		(111,379)		—
Due from subsidiaries and affiliates, net	3,522		—		171		(3,693)		—

Other assets	10		463		23,921		(1,877)		22,517
Total assets	$	59,764	$	55,892	$	205,503	$	(130,385)	$	190,774
Liabilities
Unpaid losses and loss expenses	$	—	$	—	$	77,180	$	(9,369)	$	67,811
Unearned premiums	—		—		18,853		(1,201)		17,652
Future policy benefits	—		—		5,806		(93)		5,713
Due to subsidiaries and affiliates, net	—		3,008		685		(3,693)		—
Affiliated notional cash pooling programs(1)	—		272		—		(272)		—
Repurchase agreements	—		—		1,405		—		1,405

Long-term debt	—		14,948		—		—		14,948
Trust preferred securities	—		308		—		—		308
Other liabilities	323		1,418		26,133		(4,378)		23,496
Total liabilities	323		19,954		130,062		(19,006)		131,333
Total shareholders’ equity	59,441		35,938		75,441		(111,379)		59,441
Total liabilities and shareholders’ equity	$	59,764	$	55,892	$	205,503	$	(130,385)	$	190,774

(1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 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	—		—		5,468		(95)		5,373
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		21,793		(3,558)		20,196
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 Note 1 f) for additional information.

Condensed Consolidating Statements of Operations and Comprehensive Income


For the Year Ended December 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 premiums written	$	—	$	—	$	33,820	$	—	$	33,820
Net premiums earned	—		—		33,117		—		33,117
Net investment income	(1)		6		3,370		—		3,375
Equity in earnings of subsidiaries	3,457		2,052		—		(5,509)		—
Net realized gains (losses)	20		(397)		(121)		—		(498)
Losses and loss expenses	—		—		21,710		—		21,710
Policy benefits	—		—		784		—		784
Policy acquisition costs and administrative expenses	94		(130)		9,562		—		9,526
Interest (income) expense	(136)		596		56		—		516
Other (income) expense	(39)		(24)		(931)		—		(994)
Amortization of purchased intangibles	—		—		290		—		290

Income tax expense (benefit)	24		(181)		786		—		629
Net income	$	3,533	$	1,400	$	4,109	$	(5,509)	$	3,533
Comprehensive income	$	5,783	$	3,236	$	6,512	$	(9,748)	$	5,783

Condensed Consolidating Statements of Operations and Comprehensive Income


For the Year Ended December 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 premiums written	$	—	$	—	$	32,275	$	—	$	32,275
Net premiums earned	—		—		31,290		—		31,290
Net investment income	1		(15)		3,440		—		3,426
Equity in earnings of subsidiaries	4,307		3,022		—		(7,329)		—
Net realized gains (losses) including OTTI	(17)		(31)		(482)		—		(530)
Losses and loss expenses	—		—		18,730		—		18,730
Policy benefits	—		—		740		—		740
Policy acquisition costs and administrative expenses	92		(26)		9,117		—		9,183
Interest (income) expense	(243)		705		90		—		552
Other (income) expense	(27)		6		(575)		—		(596)
Amortization of purchased intangibles	—		—		305		—		305
Chubb integration expenses	1		2		20		—		23
Income tax expense (benefit)	14		(175)		956		—		795
Net income	$	4,454	$	2,464	$	4,865	$	(7,329)	$	4,454
Comprehensive income	$	7,521	$	4,988	$	7,922	$	(12,910)	$	7,521

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)


For the Year Ended December 31, 2018	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	$	—	$	—	$	30,579	$	—	$	30,579
Net premiums earned	—		—		30,064		—		30,064
Net investment income	6		13		3,286		—		3,305
Equity in earnings of subsidiaries	3,753		2,578		—		(6,331)		—
Net realized gains (losses) including OTTI	—		117		(769)		—		(652)
Losses and loss expenses	—		—		18,067		—		18,067
Policy benefits	—		—		590		—		590
Policy acquisition costs and administrative expenses	87		(58)		8,769		—		8,798
Interest (income) expense	(299)		806		134		—		641
Other (income) expense	(24)		26		(436)		—		(434)
Amortization of purchased intangibles	—		—		339		—		339
Chubb integration expenses	14		1		44		—		59
Income tax expense (benefit)	19		(148)		824		—		695
Net income	$	3,962	$	2,081	$	4,250	$	(6,331)	$	3,962
Comprehensive income (loss)	$	1,242	$	(27)	$	1,808	$	(1,781)	$	1,242

Condensed Consolidating Statement of Cash Flows


For the Year Ended December 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 operating activities	$	1,933	$	274	$	10,788	$	(3,210)	$	9,785
Cash flows from investing activities
Purchases of fixed maturities available for sale	—		(49)		(26,249)		—		(26,298)
Purchases of fixed maturities held to maturity	—		—		(202)		—		(202)
Purchases of equity securities	—		—		(6,419)		—		(6,419)
Sales of fixed maturities available for sale	—		9		11,368		—		11,377
Sales of equity securities	—		—		3,880		—		3,880
Maturities and redemptions of fixed maturities available for sale	—		50		12,400		—		12,450
Maturities and redemptions of fixed maturities held to maturity	—		—		995		—		995
Net change in short-term investments	—		772		(853)		—		(81)
Net derivative instruments settlements	—		55		(168)		—		(113)


Private equity contributions	—		—		(1,924)		—		(1,924)
Private equity distributions	—		—		907		—		907
Payment, including deposit, for Huatai Group interest	—		—		(1,623)		—		(1,623)

Capital contribution	(1,200)		(72)		—		1,272		—

Other	(2)		4		(472)		—		(470)
Net cash flows from (used for) investing activities	(1,202)		769		(8,360)		1,272		(7,521)
Cash flows from financing activities
Dividends paid on Common Shares	(1,388)		—		—		—		(1,388)
Common Shares repurchased	(523)		—		—		—		(523)
Proceeds from issuance of long-term debt	—		988		—		—		988
Proceeds from issuance of repurchase agreements	—		—		2,354		—		2,354
Repayment of long-term debt	—		(1,301)		—		—		(1,301)
Repayment of repurchase agreements	—		—		(2,354)		—		(2,354)
Proceeds from share-based compensation plans	—		—		145		—		145
Advances (to) from affiliates	1,265		(1,438)		173		—		—
Dividends to parent company	—		—		(3,210)		3,210		—
Capital contribution	—		—		1,272		(1,272)		—
Net proceeds from affiliated notional cash pooling programs(1)	—		272		—		(272)		—
Policyholder contract deposits and other	—		—		470		—		470
Policyholder contract withdrawals and other	—		—		(386)		—		(386)
Other	—		—		(87)		—		(87)
Net cash flows used for financing activities	(646)		(1,479)		(1,623)		1,666		(2,082)
Effect of foreign currency rate changes on cash and restricted cash	(3)		(5)		16		—		8
Net increase (decrease) in cash and restricted cash	82		(441)		821		(272)		190
Cash and restricted cash – beginning of year (1)	2		442		1,202		—		1,646
Cash and restricted cash – end of year (1)	$	84	$	1	$	2,023	$	(272)	$	1,836

(1)Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2020, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows


For the Year Ended December 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 operating activities	$	412	$	2,926	$	6,878	$	(3,874)	$	6,342
Cash flows from investing activities
Purchases of fixed maturities available for sale	—		(21)		(25,825)		—		(25,846)

Purchases of fixed maturities held to maturity	—		—		(229)		—		(229)
Purchases of equity securities	—		—		(531)		—		(531)
Sales of fixed maturities available for sale	—		1		13,115		—		13,116

Sales of equity securities	—		—		611		—		611
Maturities and redemptions of fixed maturities available for sale	—		41		8,998		—		9,039
Maturities and redemptions of fixed maturities held to maturity	—		—		946		—		946
Net change in short-term investments	—		(808)		(309)		—		(1,117)
Net derivative instruments settlements	—		(74)		(629)		—		(703)
Private equity contributions	—		—		(1,315)		—		(1,315)
Private equity distributions	—		—		1,390		—		1,390
Capital contribution	(1,000)		(110)		—		1,110		—
Acquisition of subsidiaries (net of cash acquired of $45)	—		—		(29)		—		(29)
Payment, including deposit, for Huatai Group interest	—		—		(580)		—		(580)

Other	—		(4)		(653)		—		(657)
Net cash flows used for investing activities	(1,000)		(975)		(5,040)		1,110		(5,905)
Cash flows from financing activities
Dividends paid on Common Shares	(1,354)		—		—		—		(1,354)
Common Shares repurchased	(327)		—		(1,203)		—		(1,530)
Proceeds from issuance of long-term debt	—		2,828		—		—		2,828
Proceeds from issuance of repurchase agreements	—		—		2,817		—		2,817
Repayment of long-term debt	—		(500)		(10)		—		(510)
Repayment of repurchase agreements	—		—		(2,817)		—		(2,817)
Proceeds from share-based compensation plans	—		—		204		—		204
Advances (to) from affiliates	2,301		(3,223)		922		—		—
Dividends to parent company	—		—		(3,874)		3,874		—
Capital contribution	—		—		1,110		(1,110)		—
Net proceeds payments to affiliated notional cash pooling programs(1)	(35)		(617)		—		652		—
Policyholder contract deposits	—		—		514		—		514
Policyholder contract withdrawals	—		—		(303)		—		(303)

Net cash flows from (used for) financing activities	585		(1,512)		(2,640)		3,416		(151)
Effect of foreign currency rate changes on cash and restricted cash	4		1		15		—		20
Net increase (decrease) in cash and restricted cash	1		440		(787)		652		306
Cash and restricted cash – beginning of year (1)	1		2		1,989		(652)		1,340
Cash and restricted cash – end of year (1)	$	2	$	442	$	1,202	$	—	$	1,646

(1)Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows


For the Year Ended December 31, 2018	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	$	256	$	4,654	$	5,878	$	(5,308)	$	5,480
Cash flows from investing activities
Purchases of fixed maturities available for sale	—		(38)		(24,697)		—		(24,735)

Purchases of fixed maturities held to maturity	—		—		(456)		—		(456)
Purchases of equity securities	—		—		(207)		—		(207)
Sales of fixed maturities available for sale	—		11		14,019		—		14,030

Sales of equity securities	—		—		315		—		315
Maturities and redemptions of fixed maturities available for sale	—		17		7,335		—		7,352
Maturities and redemptions of fixed maturities held to maturity	—		—		1,124		—		1,124
Net change in short-term investments	—		3		513		—		516
Net derivative instruments settlements	—		(7)		23		—		16
Private equity contributions	—		—		(1,337)		—		(1,337)
Private equity distributions	—		—		980		—		980

Capital contribution	(1,475)		(3,550)		—		5,025		—
Other	—		(18)		(515)		—		(533)
Net cash flows used for investing activities	(1,475)		(3,582)		(2,903)		5,025		(2,935)
Cash flows from financing activities
Dividends paid on Common Shares	(1,337)		—		—		—		(1,337)
Common Shares repurchased	—		—		(1,044)		—		(1,044)
Proceeds from issuance of long-term debt	—		2,171		—		—		2,171
Proceeds from issuance of repurchase agreements	—		—		2,029		—		2,029
Repayment of long-term debt	—		(2,000)		(1)		—		(2,001)
Repayment of repurchase agreements	—		—		(2,019)		—		(2,019)
Proceeds from share-based compensation plans	—		—		115		—		115
Advances (to) from affiliates	2,519		(1,744)		(775)		—		—
Dividends to parent company	—		—		(5,308)		5,308		—
Capital contribution	—		—		5,025		(5,025)		—
Net payments to affiliated notional cash pooling programs(1)	35		502		—		(537)		—
Policyholder contract deposits	—		—		453		—		453
Policyholder contract withdrawals	—		—		(358)		—		(358)

Net cash flows from (used for) financing activities	1,217		(1,071)		(1,883)		(254)		(1,991)
Effect of foreign currency rate changes on cash and restricted cash	—		—		(65)		—		(65)
Net increase (decrease) in cash and restricted cash	(2)		1		1,027		(537)		489
Cash and restricted cash – beginning of year (1)	3		1		962		(115)		851
Cash and restricted cash – end of year (1)	$	1	$	2	$	1,989	$	(652)	$	1,340

(1)Chubb maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2018 and 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.