Segment information

3 Months Ended

Mar. 31, 2021

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 basis for 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. Our main measure of segment performance is Segment income (loss), which also includes Net investment income (loss), Other (income) expense, and Amortization of purchased intangibles acquired by the segment. We determined that this definition of segment income (loss) is appropriate and aligns with how the business is managed. We continue to evaluate our segments as our business continues to evolve and may further refine our segments and segment income (loss) measures. 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 and 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 March 31, 2021 (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	$	3,664	$	1,098	$	183	$	2,890	$	207	$	620	$	—	$	—	$	8,662
Net premiums earned	3,674		1,184		110		2,478		180		595		—		—		8,221
Losses and loss expenses	2,560		819		85		1,263		120		198		9		(1)		5,053
Policy benefits	—		—		—		—		—		163		—		4		167
Policy acquisition costs	514		247		12		668		45		179		—		—		1,665
Administrative expenses	254		60		3		266		8		82		71		—		744
Underwriting income (loss)	346		58		10		281		7		(27)		(80)		(3)		592
Net investment income (loss)	540		65		7		141		70		98		(17)		(41)		863
Other (income) expense	2		1		—		1		—		(34)		(415)		(45)		(490)
Amortization expense of    purchased intangibles	—		3		7		12		—		1		49		—		72
Segment income	$	884	$	119	$	10	$	409	$	77	$	104	$	269	$	1	$	1,873
Net realized gains (losses)													888		(1)		887
Interest expense													122		—		122
Income tax expense													338		—		338
Net income													$	697	$	—	$	2,300

For the Three Months Ended March 31, 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	$	3,252	$	1,107	$	157	$	2,598	$	218	$	645	$	—	$	—	$	7,977
Net premiums earned	3,376		1,200		94		2,307		186		631		—		—		7,794
Losses and loss expenses	2,181		683		65		1,258		87		202		11		(2)		4,485
Policy benefits	—		—		—		—		—		185		—		(56)		129
Policy acquisition costs	492		245		11		642		45		180		—		—		1,615
Administrative expenses	259		68		4		258		10		76		66		—		741
Underwriting income (loss)	444		204		14		149		44		(12)		(77)		58		824
Net investment income (loss)	525		66		9		145		69		95		(24)		(24)		861
Other (income) expense	6		2		—		4		—		(12)		23		32		55
Amortization expense of    purchased intangibles	—		3		7		12		—		1		50		—		73
Segment income (loss)	$	963	$	265	$	16	$	278	$	113	$	94	$	(174)	$	2	$	1,557
Net realized gains (losses)													(956)		(2)		(958)
Interest expense													132		—		132
Income tax expense													215		—		215
Net income (loss)													$	(1,477)	$	—	$	252

Underwriting assets are reviewed in total by management for purposes of decision-making. Other than Unpaid losses and loss expenses, Future policy benefits, Reinsurance recoverables, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.