Segment information

9 Months Ended

Sep. 30, 2024

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.

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 benefits gains (losses), Interest expense, Integration expenses, Income tax expense, and Net income (loss) attributable to noncontrolling interests are reported within Corporate. 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. Policy benefits also include the impact of realized gains and losses on investment portfolios supporting certain participating policies. These realized gains and losses have been reclassified from net realized gains (losses) to policy benefits. This presentation better reflects the economics of the participating policies by connecting the investment performance that is shared with policyholders to the liability.

•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 Three Months Ended September 30, 2024 (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	$	5,500	$	1,679	$	1,379	$	3,367	$	352	$	1,552	$	—	$	—	$	13,829
Net premiums earned	5,110		1,577		1,419		3,421		316		1,530		—		—		13,373
Losses and loss expenses	3,391		879		1,193		1,631		200		32		58		(1)		7,383
Policy benefits	—		—		—		120		—		989		—		(10)		1,099
Policy acquisition costs	689		315		88		852		89		291		—		—		2,324
Administrative expenses	338		88		2		340		9		213		104		—		1,094
Underwriting income (loss)	692		295		136		478		18		5		(162)		11		1,473
Net investment income	931		112		20		286		64		250		(28)		(127)		1,508
Other (income) expense	6		1		1		5		—		(39)		(202)		(97)		(325)
Amortization expense of    purchased intangibles	2		3		5		21		—		10		40		—		81
Segment income (loss)	$	1,615	$	403	$	150	$	738	$	82	$	284	$	(28)	$	(19)	$	3,225
Net realized gains (losses)													179		19		198
Market risk benefits gains (losses)													(230)		—		(230)
Interest expense													192		—		192
Integration expenses													7		—		7
Income tax expense													504		—		504
Net income (loss)													$	(782)	$	—	$	2,490
Net income attributable to noncontrolling interests													166		—		166
Net income (loss) attributable to Chubb													$	(948)	$	—	$	2,324

For the Three Months Ended September 30, 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	$	5,132	$	1,527	$	1,521	$	3,211	$	261	$	1,452	$	—	$	—	$	13,104
Net premiums earned	4,735		1,407		1,540		3,311		239		1,442		—		—		12,674
Losses and loss expenses	3,025		900		1,356		1,635		116		20		61		(7)		7,106
Policy benefits	—		—		—		91		—		866		—		(19)		938
Policy acquisition costs	640		287		76		827		69		279		—		—		2,178
Administrative expenses	323		84		3		327		9		216		98		—		1,060
Underwriting income (loss)	747		136		105		431		45		61		(159)		26		1,392
Net investment income	780		94		12		248		47		211		14		(92)		1,314
Other (income) expense	6		2		—		(10)		—		(28)		(51)		(73)		(154)
Amortization expense of    purchased intangibles	—		3		6		19		—		12		44		—		84
Segment income (loss)	$	1,521	$	225	$	111	$	670	$	92	$	288	$	(138)	$	7	$	2,776
Net realized gains (losses)													(96)		(7)		(103)
Market risk benefits gains (losses)													(32)		—		(32)
Interest expense													174		—		174
Integration expenses													14		—		14
Income tax expense													413		—		413
Net income (loss)													$	(867)	$	—	$	2,040
Net loss attributable to noncontrolling interests													(3)		—		(3)
Net income (loss) attributable to Chubb													$	(864)	$	—	$	2,043

For the Nine Months Ended September 30, 2024 (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	$	15,690	$	4,911	$	2,386	$	10,536	$	1,122	$	4,765	$	—	$	—	$	39,410
Net premiums earned	14,890		4,560		2,173		9,966		950		4,709		—		—		37,248
Losses and loss expenses	9,640		2,654		1,785		4,728		492		86		161		(5)		19,541
Policy benefits	—		—		—		312		—		3,090		—		96		3,498
Policy acquisition costs	2,037		914		154		2,517		250		885		—		—		6,757
Administrative expenses	993		262		7		1,019		29		638		310		—		3,258
Underwriting income (loss)	2,220		730		227		1,390		179		10		(471)		(91)		4,194
Net investment income	2,620		322		62		836		179		738		(86)		(304)		4,367
Other (income) expense	28		—		1		14		—		(111)		(263)		(295)		(626)
Amortization expense of    purchased intangibles	2		7		18		61		—		31		122		—		241
Segment income (loss)	$	4,810	$	1,045	$	270	$	2,151	$	358	$	828	$	(416)	$	(100)	$	8,946
Net realized gains (losses)													101		100		201
Market risk benefits gains (losses)													(238)		—		(238)
Interest expense													552		—		552
Integration expenses													21		—		21
Income tax expense													1,336		—		1,336
Net income (loss)													$	(2,462)	$	—	$	7,000
Net income attributable to noncontrolling interests													303		—		303
Net income (loss) attributable to Chubb													$	(2,765)	$	—	$	6,697

For the Nine Months Ended September 30, 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	$	14,575	$	4,404	$	2,581	$	9,359	$	831	$	4,015	$	—	$	—	$	35,765
Net premiums earned	13,710		4,084		2,334		9,005		720		3,962		—		—		33,815
Losses and loss expenses	8,625		2,634		2,003		4,139		319		87		133		(3)		17,937
Policy benefits	—		—		—		338		—		2,283		—		(56)		2,565
Policy acquisition costs	1,867		836		128		2,286		196		829		—		—		6,142
Administrative expenses	934		247		9		899		27		553		290		—		2,959
Underwriting income (loss)	2,284		367		194		1,343		178		210		(423)		59		4,212
Net investment income	2,204		262		43		636		144		525		28		(276)		3,566
Other (income) expense	18		2		—		(29)		(1)		(69)		(251)		(220)		(550)
Amortization expense of    purchased intangibles	—		8		19		52		—		18		129		—		226
Segment income (loss)	$	4,470	$	619	$	218	$	1,956	$	323	$	786	$	(273)	$	3	$	8,102
Net realized gains (losses)													(481)		(3)		(484)
Market risk benefits gains (losses)													(154)		—		(154)
Interest expense													499		—		499
Integration expenses													51		—		51
Income tax expense													1,189		—		1,189
Net income (loss)													$	(2,647)	$	—	$	5,725
Net loss attributable to noncontrolling interests													(3)		—		(3)
Net income (loss) attributable to Chubb													$	(2,644)	$	—	$	5,728

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.