Reinsurance

12 Months Ended

Dec. 31, 2023

a) Consolidated reinsurance

Chubb purchases reinsurance to manage various exposures including catastrophe risks. Although reinsurance agreements contractually obligate Chubb's reinsurers to reimburse it for the agreed-upon portion of its gross paid losses, they do not discharge Chubb's primary liability. The amounts for net premiums written and net premiums earned in the Consolidated statements of operations are net of reinsurance. The following table presents direct, assumed, and ceded premiums:


	Year Ended December 31
(in millions of U.S. dollars)	2023		2022		2021
Premiums written
Direct	$	52,969	$	47,511	$	42,811
Assumed	4,557		4,467		3,928
Ceded	(10,165)		(10,258)		(8,912)
Net	$	47,361	$	41,720	$	37,827
Premiums earned
Direct	$	51,582	$	46,160	$	41,116
Assumed	4,289		4,395		3,609
Ceded	(10,159)		(10,195)		(8,433)
Net	$	45,712	$	40,360	$	36,292

Ceded losses and loss expenses incurred were $7.2 billion, $6.9 billion, and $5.9 billion for the years ended December 31, 2023, 2022, and 2021, respectively.

b) Reinsurance recoverable on ceded reinsurance


	December 31, 2023				December 31, 2022
(in millions of U.S. dollars)	Net Reinsurance Recoverable (1)		Valuation allowance		Net Reinsurance Recoverable (1)		Valuation allowance
Reinsurance recoverable on unpaid losses and loss expenses	$	17,884	$	285	$	17,086	$	289
Reinsurance recoverable on paid losses and loss expenses	2,068		82		1,773		62
Reinsurance recoverable on losses and loss expenses	$	19,952	$	367	$	18,859	$	351
Reinsurance recoverable on policy benefits	$	280	$	—	$	302	$	4

(1) Net of valuation allowance for uncollectible reinsurance.

The increase in reinsurance recoverable on losses and loss expenses in 2023 was primarily due to the consolidation of Huatai Group and prior period development in certain lines.

The following table presents a roll-forward of valuation allowance for uncollectible reinsurance related to Reinsurance recoverable on loss and loss expenses:


	Year Ended December 31
(in millions of U.S. dollars)	2023		2022
Valuation allowance for uncollectible reinsurance - beginning of period	$	351	$	329
Provision for uncollectible reinsurance	47		43
Write-offs charged against the valuation allowance	(32)		(19)
Foreign exchange revaluation	1		(2)
Valuation allowance for uncollectible reinsurance - end of period	$	367	$	351

The following tables present a listing, at December 31, 2023, of the categories of Chubb's reinsurers:


December 31, 2023	Gross Reinsurance Recoverable on Losses and Loss Expenses		Valuation allowance for Uncollectible Reinsurance		% of Gross Reinsurance Recoverable
(in millions of U.S. dollars, except for percentages)
Categories
Largest reinsurers	$	10,993	$	117	1.1	%
Other reinsurers rated A- or better	4,898		57		1.2	%
Other reinsurers rated lower than A- or not rated	455		56		12.3	%
Pools	441		14		3.2	%
Structured settlements	493		11		2.2	%
Captives	2,653		16		0.6	%
Other	386		96		24.9	%
Total	$	20,319	$	367	1.8	%


Largest Reinsurers
ABR Reinsurance Capital Holdings	Lloyd's of London	Renaissance Re Holdings Ltd
Berkshire Hathaway Insurance Group	Munich Re Group	Swiss Re Group
HDI Group (Hannover Re)	PartnerRe Group


Categories of Chubb's reinsurers						Comprises:
Largest reinsurers						• All groups of reinsurers or captives where the gross recoverable exceeds one percent of Total Chubb shareholders' equity.
Other reinsurers rated A- or better						• All reinsurers rated A- or better that were not included in the largest reinsurer category.
Other reinsurers rated lower than A- or not rated						• All reinsurers rated lower than A- or not rated that were not included in the largest reinsurer category.
Pools						• Related to Chubb's voluntary pool participation and Chubb's mandatory pool participation required by law in certain states.
Structured settlements						• Annuities purchased from life insurance companies to settle claims. Since we retain ultimate liability in the event that the life company fails to pay, we reflect the amounts as both a liability and a recoverable/receivable for U.S. GAAP purposes.
Captives						• Companies established and owned by our insurance clients to assume a significant portion of their direct insurance risk from Chubb; structured to allow clients to self-insure a portion of their reinsurance risk. It generally is our policy to obtain collateral equal to expected losses. Where appropriate, exceptions are granted but only with review and approval at a senior officer level. Excludes captives included in the largest reinsurer category.
Other						• Amounts recoverable that are in dispute or are from companies that are in supervision, rehabilitation, or liquidation.

The valuation allowance for uncollectible reinsurance is principally based on an analysis of the credit quality of the reinsurer and collateral balances. We establish the valuation allowance for uncollectible reinsurance for the Other category based on a case-by-case analysis of individual situations including the merits of the underlying matter, credit and collateral analysis, and consideration.