Acquisitions (Tables)

9 Months Ended

Sep. 30, 2023

Sep. 30, 2022

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes Chubb's best estimate of fair value of the assets acquired and liabilities assumed on July 1, 2023. The fair value of assets and liabilities are preliminary and may change with offsetting adjustments to goodwill. Chubb may make further adjustments to its purchase price allocation and the fair value of noncontrolling interest through the end of the permissible one-year measurement period.


Preliminary estimate of Huatai Group assets and liabilities consolidated	July 1
(in millions of U.S. dollars)	2023
Assets
Investments and Cash	$	13,346
Accrued investment income	60
Insurance and reinsurance balances receivable	277
Reinsurance recoverable on losses and loss expenses	581
Reinsurance recoverable on future policy benefits	27
Value of business acquired	309
Goodwill and intangible assets	5,049
Other assets	748
Total assets	$	20,397
Liabilities
Unpaid losses and loss expenses	$	831
Unearned premiums	800
Future policy benefits	2,287
Policyholders' account balances	4,014
Insurance and reinsurance balances payable	644
Accounts payable, accrued expenses, and other liabilities	702
Deferred tax liabilities	232
Repurchase agreements	1,269
Total liabilities	$	10,779

Net acquired assets, including goodwill, attributable to Chubb	4,408
Net acquired assets, attributable to noncontrolling interests	5,210
Net acquired assets, including goodwill	$	9,618

The following table summarizes the fair value of the assets acquired and liabilities assumed at July 1, 2022:


Assets acquired and liabilities assumed from Cigna's business in Asia	July 1
(in millions of U.S. dollars)	2022
Assets
Investments and Cash	$	5,274
Accrued investment income	33
Insurance and reinsurance balances receivable	52
Reinsurance recoverable on losses and loss expenses	3
Reinsurance recoverable on future policy benefits	85
Value of business acquired	3,633
Goodwill and intangible assets	1,486
Other assets	648
Total assets	$	11,214
Liabilities
Unpaid losses and loss expenses	$	12
Unearned premiums	60
Future policy benefits	3,856
Insurance and reinsurance balances payable	115
Accounts payable, accrued expenses, and other liabilities	926
Deferred tax liabilities	886
Total liabilities	$	5,855

Net acquired assets, including goodwill	5,359
Total	$	11,214

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the results of the acquired Huatai Group operations that have been included within our Consolidated statements of operations for the three and nine months ended September 30, 2023:


(in millions of U.S. dollars)
Total revenues	$	389
Net loss	$	(11)
Net loss attributable to Chubb	$	(9)

The following table summarizes the results of the acquired Cigna business in Asia that have been included within our Consolidated statements of operations for the three and nine months ended September 30, 2022:


(in millions of U.S. dollars)
Total revenues	$	681
Net income	$	17

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The preliminary purchase price allocation to intangible assets recorded in connection with the Huatai Group acquisition and their related useful lives at July 1, 2023, are as follows:


(in millions of U.S. dollars)	Amount		Weighted-average useful life
Definite life
Agency distribution relationships	$	332	20 years
Asset management customer contracts	94		16 years
Unearned premium reserves (UPR) intangible asset	95		3 years
Land use rights	569		31 years
Technology	45		6 years
Indefinite life
Trademarks	398		Indefinite
Asset management mutual funds	122		Indefinite
Total identified intangible assets	$	1,655

Business Acquisition, Pro Forma Information

The following table presents supplemental unaudited pro forma consolidated information for the periods indicated as though the acquisition of a controlling majority interest in Huatai Group that occurred on July 1, 2023, had instead occurred on January 1, 2022. The unaudited pro forma consolidated financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have occurred had the acquisition of a controlling majority interest been consummated on January 1, 2022, nor is it necessarily indicative of future operating results. Significant assumptions used to determine pro forma operating results include amortization of VOBA and other intangible assets.


	Three Months Ended				Nine Months Ended
Pro forma:	September 30				September 30
(in millions of U.S. dollars)	2023		2022		2023		2022
Net premiums earned	$	12,674	$	11,952	$	34,605	$	30,996
Total revenues	$	13,755	$	12,612	$	37,589	$	33,019
Net income	$	1,905	$	787	$	5,595	$	3,975
Net income attributable to Chubb	$	1,912	$	777	$	5,587	$	3,935

The following table presents supplemental unaudited pro forma consolidated information for the periods indicated as though the acquisition of Cigna's business in Asia that occurred on July 1, 2022, had instead occurred on January 1, 2021. The unaudited pro forma consolidated financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have occurred had the acquisition been consummated on January 1, 2021, nor is it necessarily indicative of future operating results. Significant assumptions used to determine pro forma operating results include amortization of VOBA and other intangible assets and recognition of interest expense associated with the repurchase agreement transactions used to effect the acquisition.


	Three Months Ended		Nine Months Ended
Pro forma:	September 30		September 30
(in millions of U.S. dollars)	2022		2022
Net premiums earned	$	11,530	$	31,341
Total revenues	$	12,124	$	33,161
Net income	$	837	$	4,172