Segment information

9 Months Ended

Sep. 30, 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 September 30, 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	$	4,369	$	1,300	$	1,415	$	2,596	$	221	$	609	$	—	$	—	$	10,510
Net premiums earned	3,954		1,244		1,338		2,664		211		589		—		—		10,000
Losses and loss expenses	2,754		846		1,138		1,487		192		179		43		(10)		6,629
Policy benefits	—		—		—		—		—		175		—		(24)		151
Policy acquisition costs	537		254		61		703		55		168		—		—		1,778
Administrative expenses	273		73		4		266		9		82		99		—		806
Underwriting income (loss)	390		71		135		208		(45)		(15)		(142)		34		636
Net investment income (loss)	507		60		6		157		99		102		(10)		(55)		866
Other (income) expense(1)	8		1		—		—		—		(19)		(722)		(31)		(763)
Amortization expense of    purchased intangibles	—		2		7		11		—		2		49		—		71
Segment income	$	889	$	128	$	134	$	354	$	54	$	104	$	521	$	10	$	2,194
Net realized gains (losses)													(11)		(10)		(21)
Interest expense													122		—		122
Income tax expense													218		—		218
Net income													$	170	$	—	$	1,833

(1)Principally includes our share of operating income and market-to-market gains on private equities where we hold more than three percent. Refer to Note 11 for additional information.

For the Three Months Ended September 30, 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	$	3,778	$	1,285	$	986	$	2,238	$	181	$	610	$	—	$	—	$	9,078
Net premiums earned	3,456		1,231		971		2,337		171		599		—		—		8,765
Losses and loss expenses	2,444		961		845		1,192		154		183		55		1		5,835
Policy benefits	—		—		—		—		—		174		—		24		198
Policy acquisition costs	489		248		56		637		40		175		—		—		1,645
Administrative expenses	243		65		5		260		9		80		71		—		733
Underwriting income (loss)	280		(43)		65		248		(32)		(13)		(126)		(25)		354
Net investment income (loss)	510		64		7		130		85		95		(19)		(32)		840
Other (income) expense	7		1		—		1		—		(23)		(415)		(56)		(485)
Amortization expense of    purchased intangibles	—		2		7		10		—		1		52		—		72
Segment income	$	783	$	18	$	65	$	367	$	53	$	104	$	218	$	(1)	$	1,607
Net realized gains (losses)													(142)		1		(141)
Interest expense													130		—		130
Income tax expense													142		—		142
Net income (loss)													$	(196)	$	—	$	1,194

For the Nine Months Ended September 30, 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	$	12,318	$	3,761	$	2,110	$	7,983	$	702	$	1,844	$	—	$	—	$	28,718
Net premiums earned	11,431		3,652		1,858		7,721		583		1,789		—		—		27,034
Losses and loss expenses	7,740		2,341		1,554		3,936		422		562		141		(8)		16,688
Policy benefits	—		—		—		—		—		508		—		(5)		503
Policy acquisition costs	1,540		746		100		2,070		147		538		—		—		5,141
Administrative expenses	772		200		10		811		27		247		258		—		2,325
Underwriting income (loss)	1,379		365		194		904		(13)		(66)		(399)		13		2,377
Net investment income (loss)	1,582		189		21		447		250		301		(42)		(135)		2,613
Other (income) expense	24		(3)		—		3		—		(79)		(1,845)		(130)		(2,030)
Amortization expense of    purchased intangibles	—		8		20		36		—		4		148		—		216
Segment income	$	2,937	$	549	$	195	$	1,312	$	237	$	310	$	1,256	$	8	$	6,804
Net realized gains (losses)													841		(8)		833
Interest expense													366		—		366
Income tax expense													873		—		873
Net income													$	858	$	—	$	6,398

For the Nine Months Ended September 30, 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	$	10,750	$	3,719	$	1,604	$	6,857	$	606	$	1,874	$	—	$	—	$	25,410
Net premiums earned	10,427		3,623		1,441		6,838		520		1,838		—		—		24,687
Losses and loss expenses	8,123		2,406		1,223		3,935		314		556		342		(2)		16,897
Policy benefits	—		—		—		—		—		542		—		8		550
Policy acquisition costs	1,452		724		96		1,903		127		551		—		—		4,853
Administrative expenses	751		199		12		759		28		238		214		—		2,201
Underwriting income (loss)	101		294		110		241		51		(49)		(556)		(6)		186
Net investment income (loss)	1,544		195		23		396		214		285		(65)		(64)		2,528
Other (income) expense	19		4		1		10		1		(52)		(283)		(72)		(372)
Amortization expense of    purchased intangibles	—		8		20		33		—		3		153		—		217
Segment income (loss)	$	1,626	$	477	$	112	$	594	$	264	$	285	$	(491)	$	2	$	2,869
Net realized gains (losses)													(1,067)		(2)		(1,069)
Interest expense													390		—		390
Income tax expense													295		—		295
Net income (loss)													$	(2,243)	$	—	$	1,115

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.