Segment information

12 Months Ended

Dec. 31, 2023

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. These segments distribute their products through various forms of brokers, agencies, and direct marketing programs. All business segments have established relationships with reinsurance intermediaries. Effective July 1, 2023, the results of Huatai’s life and asset management businesses, included within the Life Insurance segment, and the results of Huatai’s P&C insurance business, included within Overseas General Insurance, are presented gross within Underwriting income (loss), Net investment income (loss), and Other income (expense) as required under consolidation accounting. Huatai’s results prior to July 1, 2023 were included net within Other (income) expense based on our ownership interest as required under equity method accounting. Effective July 1, 2022, the results of the acquired Cigna's business in Asia are included in our Life Insurance segment and, to a lesser extent, Overseas General Insurance segment according to the nature of the business written. Results for the years ended December 31, 2022 and 2021 are adjusted to reflect the adoption of LDTI. Refer to Note 1 x) for additional information.

•The North America Commercial P&C Insurance segment comprises operations that provide P&C and A&H insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda. This segment includes our retail divisions: Major Accounts; Commercial Insurance, including Small Commercial Insurance; Chubb Bermuda, our high excess business; and Westchester, our wholesale and specialty division. These divisions write a variety of coverages, including property, casualty, workers’ compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, excess casualty, and A&H insurance.

•The North America Personal P&C Insurance segment comprises the business written by Chubb Personal Risk Services division, which includes high net worth personal lines business, with operations in the U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, high value automobile and collector cars, valuable articles (including fine arts), personal and excess liability, travel insurance, and recreational marine insurance and services.

•The North America Agricultural Insurance segment includes the business written by Rain and Hail Insurance Service, Inc. in the U.S. and Canada, which provides comprehensive multiple peril crop insurance (MPCI) and crop-hail insurance, and Chubb Agribusiness, which offers farm and ranch property as well as specialty P&C coverages, including commercial agriculture products.

•The Overseas General Insurance segment includes the business written by two Chubb divisions that provides both commercial and consumer P&C insurance and services in the 51 countries and territories outside of North America where the company operates. Chubb International, our retail division, provides commercial P&C, A&H and traditional and specialty personal lines for large corporations, middle markets and small customers through retail brokers, agents and other channels locally around the world. CGM provides commercial P&C excess and surplus lines wholesale business primarily through wholesale brokers in the London market and through Lloyd’s. These divisions write a variety of coverages, including traditional commercial P&C, specialty categories such as financial lines, marine, energy, aviation, political risk and construction, as well as group A&H and traditional and specialty personal lines.

•The Global Reinsurance segment includes the reinsurance business written by Chubb Tempest Re, comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. Chubb Tempest Re provides a broad range of traditional and specialty reinsurance coverages to a diverse array of primary P&C companies, including small, mid-sized, and multinational ceding companies.

•The Life Insurance segment includes our international life operations (Chubb Life), which includes individual life and group benefit insurance primarily in Asia and Latin America. The Life Insurance segment also includes Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life insurance business of Combined Insurance.

Corporate primarily includes the results of all run-off A&E exposures, run-off Brandywine business, Westchester specialty operations for 1996 and prior years, and certain other run-off exposures, including molestation claims. In addition, Corporate includes the results of our non-insurance companies including Chubb Limited, Chubb Group Management and Holdings Ltd., and Chubb INA Holdings Inc. Effective July 1, 2023, the results of Huatai Group’s non-insurance operations, comprising real estate and holding company activity, are included in Corporate. Our exposure to A&E and molestation claims principally arises out of liabilities acquired when we purchased Westchester Specialty in 1998, CIGNA’s P&C business in 1999, and Chubb Corp in 2016.

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. Segment income (loss) includes Underwriting income (loss), Net investment income (loss), and other operating income and expense items such as each segment's share of the operating income (loss) related to partially-owned entities and miscellaneous income and expense items for which the segments are held accountable. Our main measure of segment performance is Segment income (loss), which also includes 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.

Revenue and expenses managed at the corporate level, including Net realized gains (losses), Market risk benefit gains (losses), Interest expense, Cigna integration expenses, Income tax expense, and Net income (loss) attributable to noncontrolling interests are reported within Corporate. Cigna integration expenses are one-time costs that are directly attributable to third-party consulting fees, employee-related retention costs, and other professional and legal fees primarily related to the acquisition of Cigna's business in Asia. These items are not allocated to the segment level as they are one-time in nature and are not related to the ongoing business activities of the segment. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs, and therefore are excluded from our definition of Segment income (loss).

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 fair value changes on separate accounts that do not qualify for separate accounting under U.S. GAAP. These gains and losses 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 for segment reporting purposes.

The following tables present the Statement of Operations by segment:

For the Year Ended December 31, 2023 (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	$	19,237	$	5,878	$	3,188	$	12,575	$	1,018	$	5,465	$	—	$	—	$	47,361
Net premiums earned	18,416		5,536		3,169		12,231		962		5,398		—		—		45,712
Losses and loss expenses	11,256		3,511		2,874		5,643		426		114		281		(5)		24,100
Policy benefits	—		—		—		457		—		3,216		—		(45)		3,628
Policy acquisition costs	2,515		1,128		150		3,113		264		1,089		—		—		8,259
Administrative expenses	1,250		329		(1)		1,219		37		771		402		—		4,007
Underwriting income (loss)	3,395		568		146		1,799		235		208		(683)		50		5,718
Net investment income	3,017		358		63		895		208		756		25		(385)		4,937
Other (income) expense	22		3		1		(25)		(2)		(115)		(380)		(340)		(836)
Amortization expense of purchased intangibles	—		9		25		70		—		30		176		—		310
Segment income (loss)	$	6,390	$	914	$	183	$	2,649	$	445	$	1,049	$	(454)	$	5	$	11,181
Net realized gains (losses)													(602)		(5)		(607)
Market risk benefits gains (losses)													(307)		—		(307)
Interest expense													672		—		672
Cigna integration expenses													69		—		69
Income tax expense													511		—		511
Net income (loss)													$	(2,615)	$	—	$	9,015
Net loss attributable to noncontrolling interests													(13)		—		(13)
Net income (loss) attributable to Chubb													$	(2,602)	$	—	$	9,028

For the Year Ended December 31, 2022 (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	$	17,889	$	5,313	$	2,907	$	11,060	$	943	$	3,608	$	—	$	—	$	41,720
Net premiums earned	17,107		5,180		2,838		10,803		922		3,510		—		—		40,360
Losses and loss expenses	10,828		3,186		2,557		4,894		670		85		363		(11)		22,572
Policy benefits	—		—		—		358		—		1,998		—		(42)		2,314
Policy acquisition costs	2,313		1,057		126		2,818		240		785		—		—		7,339
Administrative expenses	1,113		291		(10)		1,070		36		510		385		—		3,395
Underwriting income (loss)	2,853		646		165		1,663		(24)		132		(748)		53		4,740
Net investment income	2,247		283		36		626		281		509		—		(240)		3,742
Other (income) expense	17		4		1		2		1		(30)		292		(198)		89
Amortization expense of purchased intangibles	—		10		26		57		—		10		182		—		285
Segment income (loss)	$	5,083	$	915	$	174	$	2,230	$	256	$	661	$	(1,222)	$	11	$	8,108
Net realized gains (losses)													(1,074)		(11)		(1,085)
Market risk benefits gains (losses)													80		—		80
Interest expense													570		—		570
Cigna integration expenses													48		—		48
Income tax expense													1,239		—		1,239
Net income (loss)													$	(4,073)	$	—	$	5,246

For the Year Ended December 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	$	16,415	$	5,002	$	2,388	$	10,713	$	873	$	2,436	$	—	$	—	$	37,827
Net premiums earned	15,461		4,915		2,338		10,441		798		2,339		—		—		36,292
Losses and loss expenses	10,015		2,924		1,962		4,783		632		150		572		(8)		21,030
Policy benefits	—		—		—		360		—		1,388		—		(8)		1,740
Policy acquisition costs	2,082		1,001		124		2,799		200		552		—		—		6,758
Administrative expenses	1,052		276		(3)		1,078		35		332		365		—		3,135
Underwriting income (loss)	2,312		714		255		1,421		(69)		(83)		(937)		16		3,629
Net investment income	2,078		249		28		597		331		407		(55)		(179)		3,456
Other (income) expense	31		(2)		1		—		—		(108)		(2,118)		(171)		(2,367)
Amortization expense of purchased intangibles	—		10		26		48		—		5		198		—		287
Segment income	$	4,359	$	955	$	256	$	1,970	$	262	$	427	$	928	$	8	$	9,165
Net realized gains (losses)													1,038		(8)		1,030
Market risk benefits gains (losses)													91		—		91
Interest expense													492		—		492
Income tax expense													1,269		—		1,269
Net income													$	296	$	—	$	8,525

Underwriting assets are reviewed in total by management for purposes of decision-making. Other than certain insurance related balances, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.

The following table presents net premiums earned for each segment by line of business:

	For the Year Ended December 31
(in millions of U.S. dollars)	2023		2022		2021
North America Commercial P&C Insurance
Property & other short-tail lines	$	3,985	$	3,383	$	2,942
Casualty & all other	13,764		13,056		11,905
A&H	667		668		614
Total North America Commercial P&C Insurance	18,416		17,107		15,461
North America Personal P&C Insurance
Personal automobile	859		811		781
Personal homeowners	3,833		3,557		3,384
Personal other	844		812		750
Total North America Personal P&C Insurance	5,536		5,180		4,915
North America Agricultural Insurance	3,169		2,838		2,338
Overseas General Insurance
Property & other short-tail lines	3,831		3,382		3,105
Casualty & all other	3,526		3,232		3,114
Personal lines	2,405		2,020		2,109
A&H	2,469		2,169		2,113
Total Overseas General Insurance	12,231		10,803		10,441
Global Reinsurance
Property	331		211		151
Property catastrophe	159		208		190
Casualty & all other	472		503		457
Total Global Reinsurance	962		922		798
Life Insurance
Life	2,301		1,455		1,257
A&H	3,097		2,055		1,082
Total Life Insurance	5,398		3,510		2,339
Total net premiums earned	$	45,712	$	40,360	$	36,292

The following table presents net premiums earned by geographic region. Allocations have been made on the basis of location of risk:

	North America		Europe (1)		Asia Pacific / Japan (2)		Latin America
2023	65	%	11	%	18	%	6	%
2022	69	%	11	%	14	%	6	%
2021	70	%	12	%	12	%	6	%

(1)     Europe includes Middle East and Africa regions.

(2)     2023 includes the consolidated results of Huatai Group effective July 1, 2023.