Shareholders' equity

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Shareholders' equity

Shareholders’ equity

All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing the Consolidated Financial Statements. Under Swiss corporate law, dividends, including distributions from legal reserves or through a reduction in par value (par value reduction), must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. At September 30, 2022, our Common Shares had a par value of CHF 24.15 per share.

At our May 2022 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.32 per share, expected to be paid in four quarterly installments of $0.83 per share after the general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment. The Board of Directors (Board) will determine the record and payment dates at which the annual dividend may be paid until the date of the 2023 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion.

At our May 2021 and 2020 annual general meetings, our shareholders approved annual dividends for the following year of up to $3.20 per share and $3.12 per share, respectively, which were paid in four quarterly installments of $0.80 per share and $0.78 per share, respectively, at dates determined by the Board after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
	CHF	USD		CHF	USD		CHF	USD		CHF	USD
Total dividend distributions per common share	0.78	$	0.83	0.73	$	0.80	2.32	$	2.46	2.14	$	2.38

Increases in Common Shares in treasury are due to open market repurchases of Common Shares and the surrender of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock and the forfeiture of unvested restricted stock. Decreases in Common Shares in treasury are principally due to grants of restricted stock, exercises of stock options, purchases under the Employee Stock Purchase Plan (ESPP), and share cancellations. At the Chubb Limited Extraordinary General Meeting of Shareholders, held on November 3, 2021, shareholders approved the cancellation of 14,465,400 shares repurchased under our share repurchase program during the first six months of 2021. The capital reduction by cancellation of shares was subject to publication requirements and a two-month waiting period in accordance with Swiss law and became effective on January 17, 2022. At our May 2022 annual general meeting, held on May 19, 2022, our shareholders approved the cancellation of 13,179,100 shares purchased under our share repurchase program during the last six months of 2021. The capital reduction by cancellation of shares was subject to publication requirements and a two-month waiting period in accordance with Swiss law and became effective on August 4, 2022. During the nine months ended September 30, 2022, 14,022,728 shares were repurchased, 27,644,500 shares were canceled, and 2,470,600 net shares were issued under employee share-based compensation plans. At September 30, 2022, 31,356,130 Common Shares remain in treasury.

Chubb Limited securities repurchase authorizations

The Board has authorized share repurchase programs as follows:

•$1.5 billion of Chubb Common Shares from November 19, 2020 through December 31, 2021;

•$1.0 billion increase to the November 2020 share repurchase program to a total of $2.5 billion in February 2021, effective through December 31, 2021;

•One-time incremental share repurchase program of $5.0 billion of Chubb Common Shares from July 19, 2021 through June 30, 2022; and

•$2.5 billion of Chubb Common Shares from May 19, 2022 through June 30, 2023.

The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:

	Three Months Ended				Nine Months Ended
	September 30				September 30
(in millions of U.S. dollars, except share data)	2022		2021		2022		2021
Number of shares repurchased	3,676,528		8,412,000		14,022,728		22,877,400
Cost of shares repurchased	$	685	$	1,516	$	2,815	$	3,956
Repurchase authorization remaining at end of period	$	1,816	$	3,551	$	1,816	$	3,551

The following table presents changes in accumulated other comprehensive income (loss):

	Three Months Ended				Nine Months Ended
	September 30				September 30
(in millions of U.S. dollars)	2022		2021		2022		2021
Accumulated other comprehensive income (loss) (AOCI)
Net unrealized appreciation (depreciation) on investments
Balance – beginning of period, net of tax	$	(5,713)	$	3,342	$	2,256	$	4,673
Change in period, before reclassification from AOCI (before tax)	(3,324)		(564)		(12,898)		(2,151)
Amounts reclassified from AOCI (before tax)	279		10		857		(26)
Change in period, before tax	(3,045)		(554)		(12,041)		(2,177)
Income tax benefit	147		98		1,174		390
Balance – end of period, net of tax	(8,611)		2,886		(8,611)		2,886
Cumulative foreign currency translation adjustment
Balance – beginning of period, net of tax	(2,821)		(1,323)		(2,146)		(1,637)
Change in period, before tax	(966)		(414)		(1,676)		(84)
Income tax benefit	6		23		41		7
Balance – end of period, net of tax	(3,781)		(1,714)		(3,781)		(1,714)
Fair value hedging instruments
Balance – beginning of period, net of tax	—		—		—		—
Change in period, before reclassification from AOCI (before tax)	(94)		—		(94)		—
Amounts reclassified from AOCI (before tax)	32		—		32		—
Change in period, before tax	(62)		—		(62)		—
Income tax benefit	13		—		13		—
Balance – end of period, net of tax	(49)		—		(49)		—
Postretirement benefit liability adjustment
Balance – beginning of period, net of tax	259		(197)		240		(167)
Change in period, before tax	3		4		27		(33)
Income tax (expense) benefit	(1)		(1)		(6)		6
Balance – end of period, net of tax	261		(194)		261		(194)
Accumulated other comprehensive income (loss)	$	(12,180)	$	978	$	(12,180)	$	978

The following table presents reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations:

	Three Months Ended				Nine Months Ended				Consolidated Statement of Operations Location
	September 30				September 30
(in millions of U.S. dollars)	2022		2021		2022		2021
Fixed maturities available for sale	$	(279)	$	(10)	$	(857)	$	26	Net realized gains (losses)
Income tax (expense) benefit	39		3		138		5		Income tax expense
	$	(240)	$	(7)	$	(719)	$	31	Net income
Net gains (losses) of fair value hedging instruments
Cross-currency swaps	$	(32)	$	—	$	(32)	$	—	Net realized gains (losses)
Income tax (expense) benefit	7		—		7		—		Income tax expense
	$	(25)	$	—	$	(25)	$	—	Net income
Total amounts reclassified from AOCI	$	(265)	$	(7)	$	(744)	$	31