Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 18, 2014 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'ACE | ' |
Entity Registrant Name | 'ACE Ltd | ' |
Entity Central Index Key | '0000896159 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 337,700,207 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Investments [Abstract] | ' | ' | ||
Fixed maturities available for sale, at fair value (amortized cost - $48,282 and $48,406) (includes hybrid financial instruments of $319 and $302) | $49,611 | $49,254 | ||
Fixed maturities held to maturity, at amortized cost (fair value – $6,080 and $6,263) | 5,887 | 6,098 | ||
Equity securities, at fair value (cost – $845 and $841) | 851 | 837 | ||
Short-term investments, at fair value and amortized cost | 2,526 | 1,763 | ||
Other investments (cost – $2,823 and $2,671) | 3,170 | 2,976 | ||
Total investments | 62,045 | 60,928 | ||
Cash | 847 | [1],[2] | 579 | [1],[3] |
Securities lending collateral | 1,550 | 1,632 | ||
Accrued investment income | 553 | 556 | ||
Insurance and reinsurance balances receivable | 4,761 | 5,026 | ||
Reinsurance recoverable on losses and loss expenses | 10,755 | 11,227 | ||
Reinsurance recoverable on policy benefits | 222 | 218 | ||
Deferred policy acquisition costs | 2,402 | 2,313 | ||
Value of business acquired | 517 | 536 | ||
Goodwill and other intangible assets | 5,382 | 5,404 | ||
Prepaid reinsurance premiums | 1,721 | 1,675 | ||
Deferred tax assets | 516 | 616 | ||
Investments in partially-owned insurance companies (cost – $463 and $467) | 466 | 470 | ||
Other assets | 3,442 | 3,330 | ||
Total assets | 95,179 | 94,510 | ||
Liabilities | ' | ' | ||
Unpaid losses and loss expenses | 36,866 | 37,443 | ||
Unearned premiums | 7,791 | 7,539 | ||
Future policy benefits | 4,632 | 4,615 | ||
Insurance and reinsurance balances payable | 3,734 | 3,628 | ||
Securities lending payable | 1,551 | 1,633 | ||
Accounts payable, accrued expenses, and other liabilities | 5,218 | 4,810 | ||
Short-term debt | 1,901 | 1,901 | ||
Long-term debt | 3,808 | 3,807 | ||
Trust preferred securities | 309 | 309 | ||
Total liabilities | 65,810 | 65,685 | ||
Commitments and contingencies | ' | ' | ||
Shareholders’ equity | ' | ' | ||
Common Shares (CHF 26.59 and CHF 27.04 par value; 342,832,412 shares issued; 337,974,644 and 339,793,935 shares outstanding) | 8,724 | 8,899 | ||
Common Shares in treasury (4,857,768 and 3,038,477 shares) | -443 | -255 | ||
Additional paid-in capital | 5,037 | 5,238 | ||
Retained earnings | 14,525 | 13,791 | ||
Accumulated other comprehensive income (AOCI) | 1,526 | 1,152 | ||
Total shareholders’ equity | 29,369 | 28,825 | ||
Total liabilities and shareholders’ equity | $95,179 | $94,510 | ||
[1] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[2] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[3] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF |
Statement of Financial Position [Abstract] | ' | ' | ' | ' |
Fixed maturities available for sale, at amortized cost | $48,282 | ' | $48,406 | ' |
Fixed maturities available for sale, hybrid financial instruments | 319 | ' | 302 | ' |
Fixed maturities held to maturity, at amortized cost | 6,080 | ' | 6,263 | ' |
Equity securities, at cost | 845 | ' | 841 | ' |
Other investments, cost | 2,823 | ' | 2,671 | ' |
Investments in partially-owned insurance companies, cost | $463 | ' | $467 | ' |
Common Shares, par value | ' | 26.59 | ' | 27.04 |
Common Shares, shares issued | 342,832,412 | 342,832,412 | 342,832,412 | 342,832,412 |
Common Shares, shares outstanding | 337,974,644 | 337,974,644 | 339,793,935 | 339,793,935 |
Common Shares in treasury, shares | 4,857,768 | 4,857,768 | 3,038,477 | 3,038,477 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations and Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | ' | ' |
Net premiums written | $4,185 | $3,798 |
Increase in unearned premiums | -215 | -225 |
Net premiums earned | 3,970 | 3,573 |
Net investment income | 553 | 531 |
Net realized gains (losses): | ' | ' |
Other-than-temporary impairment (OTTI) losses gross | -12 | -3 |
Portion of OTTI losses recognized in other comprehensive income (OCI) | 1 | 0 |
Net OTTI losses recognized in income | -11 | -3 |
Net realized gains (losses) excluding OTTI losses | -93 | 209 |
Total net realized gains (losses) | -104 | 206 |
Total revenues | 4,419 | 4,310 |
Expenses | ' | ' |
Losses and loss expenses | 2,161 | 1,926 |
Policy benefits | 114 | 131 |
Policy acquisition costs | 728 | 614 |
Administrative expenses | 535 | 514 |
Interest expense | 71 | 60 |
Other (income) expense | -17 | -10 |
Total expenses | 3,592 | 3,235 |
Income before income tax | 827 | 1,075 |
Income tax expense (includes $(3) and $5 income tax (benefit) expense from reclassification of unrealized gains) | 93 | 122 |
Net income | 734 | 953 |
Other comprehensive income (loss) | ' | ' |
Unrealized appreciation (depreciation) | 519 | -116 |
Reclassification adjustment for net realized gains included in net income | -6 | -35 |
Unrealized appreciation (Depreciation) after reclassification adjustment | 513 | -151 |
Change in: | ' | ' |
Cumulative translation adjustment | -33 | -211 |
Pension liability | -8 | 22 |
Other comprehensive income (loss), before income tax | 472 | -340 |
Income tax (expense) benefit related to OCI items | -98 | 103 |
Other comprehensive income (loss) | 374 | -237 |
Comprehensive income | 1,108 | 716 |
Earnings per share | ' | ' |
Basic earnings per share | $2.16 | $2.80 |
Diluted earnings per share | $2.14 | $2.77 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Net realized gains (losses): | ' | ' |
Total net realized gains (losses) | 6 | 35 |
Expenses | ' | ' |
Income tax expense (includes $(3) and $5 income tax (benefit) expense from reclassification of unrealized gains) | ($3) | $5 |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net realized gains (losses) | ($104) | $206 |
Income tax expense (benefit) | 93 | 122 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Net realized gains (losses) | 6 | 35 |
Income tax expense (benefit) | ($3) | $5 |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | Accumulated Translation Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Millions | |||||||||
Balance - beginning of period at Dec. 31, 2012 | ' | $9,591 | ($159) | $5,179 | $10,033 | $2,633 | $339 | ($85) | ' |
Dividends declared on Common Shares – par value reduction | ' | -168 | ' | ' | ' | ' | ' | ' | ' |
Common Shares repurchased | ' | ' | -154 | ' | ' | ' | ' | ' | ' |
Net shares redeemed under employee share-based compensation plans | ' | ' | 101 | -114 | ' | ' | ' | ' | ' |
Exercise of stock options | ' | ' | ' | -12 | ' | ' | ' | ' | ' |
Share-based compensation expense and other | ' | ' | ' | 42 | ' | ' | ' | ' | ' |
Funding of dividends declared to Retained earnings | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Net income | 953 | ' | ' | ' | 953 | ' | ' | ' | ' |
Funding of dividends declared from Additional paid-in capital | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Dividends declared on Common Shares | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Change in period, before reclassification from AOCI, net of income tax (expense) benefit of $(90) and $51 | ' | ' | ' | ' | ' | -65 | ' | ' | ' |
Amounts reclassified from AOCI, net of income tax (expense) benefit of $(3) and $5 | ' | ' | ' | ' | ' | -30 | ' | ' | ' |
Change in period, net of income tax (expense) benefit of $(93) and $56 | ' | ' | ' | ' | ' | -95 | ' | ' | ' |
Change in period, net of income tax (expense) benefit of $(8) and $55 | ' | ' | ' | ' | ' | ' | -156 | ' | ' |
Change in period, net of income tax (expense) benefit of $3 and $(8) | ' | ' | ' | ' | ' | ' | ' | 14 | ' |
Balance - end of period at Mar. 31, 2013 | 27,942 | 9,423 | -212 | 5,095 | 10,986 | 2,538 | 183 | -71 | 2,650 |
Balance - beginning of period at Dec. 31, 2013 | 28,825 | 8,899 | -255 | 5,238 | 13,791 | 1,174 | 63 | -85 | ' |
Dividends declared on Common Shares – par value reduction | ' | -175 | ' | ' | ' | ' | ' | ' | ' |
Common Shares repurchased | ' | ' | -332 | ' | ' | ' | ' | ' | ' |
Net shares redeemed under employee share-based compensation plans | ' | ' | 144 | -154 | ' | ' | ' | ' | ' |
Exercise of stock options | ' | ' | ' | -18 | ' | ' | ' | ' | ' |
Share-based compensation expense and other | ' | ' | ' | 52 | ' | ' | ' | ' | ' |
Funding of dividends declared to Retained earnings | ' | ' | ' | -81 | ' | ' | ' | ' | ' |
Net income | 734 | ' | ' | ' | 734 | ' | ' | ' | ' |
Funding of dividends declared from Additional paid-in capital | ' | ' | ' | ' | 81 | ' | ' | ' | ' |
Dividends declared on Common Shares | ' | ' | ' | ' | -81 | ' | ' | ' | ' |
Change in period, before reclassification from AOCI, net of income tax (expense) benefit of $(90) and $51 | ' | ' | ' | ' | ' | 429 | ' | ' | ' |
Amounts reclassified from AOCI, net of income tax (expense) benefit of $(3) and $5 | ' | ' | ' | ' | ' | -9 | ' | ' | ' |
Change in period, net of income tax (expense) benefit of $(93) and $56 | ' | ' | ' | ' | ' | 420 | ' | ' | ' |
Change in period, net of income tax (expense) benefit of $(8) and $55 | ' | ' | ' | ' | ' | ' | -41 | ' | ' |
Change in period, net of income tax (expense) benefit of $3 and $(8) | ' | ' | ' | ' | ' | ' | ' | -5 | ' |
Balance - end of period at Mar. 31, 2014 | $29,369 | $8,724 | ($443) | $5,037 | $14,525 | $1,594 | $22 | ($90) | $1,526 |
Consolidated_Statements_Of_Sha1
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit | ($93) | $56 |
Cumulative translation adjustment, Change in period, income tax(expense) benefit | -8 | 55 |
Pension liability adjustment, Change in period, income tax (expense) benefit | 3 | -8 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Unrealized appreciation on investments, Change in period before reclassification to AOCI, income tax (expense) benefit | 9 | 30 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Unrealized appreciation on investments, Change in period before reclassification to AOCI, income tax (expense) benefit | -3 | 5 |
Income tax expense from reclassification of unrealized gains | ($90) | $51 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Cash flows from operating activities | ' | ' | ||
Net income | $734 | $953 | ||
Adjustments to reconcile net income to net cash flows from operating activities | ' | ' | ||
Net realized (gains) losses | 104 | -206 | ||
Amortization of premiums/discounts on fixed maturities | 53 | 66 | ||
Deferred income taxes | 0 | 35 | ||
Unpaid losses and loss expenses | -598 | -505 | ||
Unearned premiums | 270 | 267 | ||
Future policy benefits | 56 | 44 | ||
Insurance and reinsurance balances payable | 112 | -41 | ||
Accounts payable, accrued expenses, and other liabilities | -64 | 144 | ||
Income taxes payable | 15 | 29 | ||
Insurance and reinsurance balances receivable | 264 | -45 | ||
Reinsurance recoverable on losses and loss expenses | 478 | 435 | ||
Reinsurance recoverable on policy benefits | -2 | 10 | ||
Deferred policy acquisition costs | -99 | -121 | ||
Prepaid reinsurance premiums | -52 | -58 | ||
Other | -21 | -94 | ||
Net cash flows from operating activities | 1,250 | 913 | ||
Cash flows from investing activities | ' | ' | ||
Purchases of fixed maturities available for sale | -3,522 | -5,446 | ||
Purchases of to be announced mortgage-backed securities | 0 | -19 | ||
Purchases of fixed maturities held to maturity | -30 | -142 | ||
Purchases of equity securities | -37 | -107 | ||
Sales of fixed maturities available for sale | 2,208 | 2,745 | ||
Sales of to be announced mortgage-backed securities | 0 | 19 | ||
Sales of equity securities | 27 | 31 | ||
Maturities and redemptions of fixed maturities available for sale | 1,550 | 2,016 | ||
Maturities and redemptions of fixed maturities held to maturity | 212 | 491 | ||
Net change in short-term investments | -765 | -687 | ||
Net derivative instruments settlements | -96 | -279 | ||
Acquisition of subsidiaries | 0 | -33 | ||
Other | -50 | -55 | ||
Net cash flows used for investing activities | -503 | -1,466 | ||
Cash flows from financing activities | ' | ' | ||
Dividends paid on Common Shares | -214 | -2 | ||
Common Shares repurchased | -335 | -154 | ||
Proceeds from issuance of long-term debt | 0 | 947 | ||
Proceeds from issuance of short-term debt | 426 | 659 | ||
Repayment of short-term debt | -426 | -658 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 40 | 21 | ||
Other | 37 | 0 | ||
Net cash flows (used for) from financing activities | -472 | 813 | ||
Effect of foreign currency rate changes on cash and cash equivalents | -7 | -20 | ||
Net increase in cash | 268 | 240 | ||
Cash – beginning of period | 579 | [1],[2] | 615 | [3] |
Cash – end of period | 847 | [2],[4] | 855 | [3] |
Supplemental cash flow information | ' | ' | ||
Taxes paid | 60 | 43 | ||
Interest paid | $51 | $31 | ||
[1] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[2] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[3] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[4] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
General
General | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
General | |
Basis of presentation | |
ACE Limited is a holding company incorporated in Zurich, Switzerland. ACE Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. ACE operates through five business segments: Insurance – North American P&C, Insurance – North American Agriculture, Insurance – Overseas General, Global Reinsurance, and Life. Refer to Note 9 for additional information. | |
The interim unaudited consolidated financial statements, which include the accounts of ACE Limited and its subsidiaries (collectively, ACE, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions have been eliminated. | |
The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2013 Form 10-K. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2014 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
The Siam Commercial Samaggi Insurance PCL | |
On April 28, 2014, we and our local partner acquired 60.9 percent of The Siam Commercial Samaggi Insurance PCL (Samaggi), a general insurance company in Thailand, from Siam Commercial Bank. In compliance with Thai regulations, we and our local partner will make a mandatory tender offer for the remaining 39.1 percent ownership of Samaggi for the same share purchase price during the second quarter of 2014. The implied purchase price for 100 percent of the company, at current exchange rates, is approximately $190 million in cash. | |
Fianzas Monterrey | |
On April 1, 2013, we acquired Fianzas Monterrey, a leading surety lines company in Mexico offering administrative performance bonds primarily to clients in the construction and industrial sectors, for approximately $293 million in cash. This acquisition greatly expanded our global franchise in the surety business and enhanced our existing commercial lines and personal accident insurance business in Mexico. | |
The acquisition generated $137 million of goodwill, attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes, and other intangible assets of $73 million, based on ACE's purchase price allocation. The other intangible assets primarily relate to customer lists. Amortization of other intangible assets is included in Other (income) expense in the consolidated statements of operations. Goodwill and other intangible assets arising from this acquisition are included in the Insurance – Overseas General segment. | |
ABA Seguros | |
On May 2, 2013, we acquired ABA Seguros, a property and casualty insurer in Mexico that provides automobile, homeowners, and small business coverages for approximately $690 million in cash. | |
The acquisition generated $285 million of goodwill, attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes, and other intangible assets of $140 million based on ACE’s purchase price allocation. The other intangible assets primarily relate to distribution channels. Amortization of other intangible assets is included in Other (income) expense in the consolidated statements of operations. Goodwill and other intangible assets arising from this acquisition are included in the Insurance – Overseas General segment. |
Investments
Investments | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||
Investments | ||||||||||||||||||||||||
a) Fixed maturities | ||||||||||||||||||||||||
31-Mar-14 | Amortized | Gross | Gross | Fair | OTTI Recognized | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | in AOCI | ||||||||||||||||||||
(in millions of U.S. dollars) | Appreciation | Depreciation | ||||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||
U.S. Treasury and agency | $ | 2,939 | $ | 68 | $ | (37 | ) | $ | 2,970 | $ | — | |||||||||||||
Foreign | 14,155 | 441 | (65 | ) | 14,531 | (1 | ) | |||||||||||||||||
Corporate securities | 16,873 | 883 | (71 | ) | 17,685 | (6 | ) | |||||||||||||||||
Mortgage-backed securities | 10,916 | 210 | (155 | ) | 10,971 | (27 | ) | |||||||||||||||||
States, municipalities, and political subdivisions | 3,399 | 95 | (40 | ) | 3,454 | — | ||||||||||||||||||
$ | 48,282 | $ | 1,697 | $ | (368 | ) | $ | 49,611 | $ | (34 | ) | |||||||||||||
Held to maturity | ||||||||||||||||||||||||
U.S. Treasury and agency | $ | 777 | $ | 17 | $ | (4 | ) | $ | 790 | $ | — | |||||||||||||
Foreign | 837 | 37 | — | 874 | — | |||||||||||||||||||
Corporate securities | 1,876 | 89 | — | 1,965 | — | |||||||||||||||||||
Mortgage-backed securities | 1,265 | 41 | — | 1,306 | — | |||||||||||||||||||
States, municipalities, and political subdivisions | 1,132 | 23 | (10 | ) | 1,145 | — | ||||||||||||||||||
$ | 5,887 | $ | 207 | $ | (14 | ) | $ | 6,080 | $ | — | ||||||||||||||
31-Dec-13 | Amortized | Gross | Gross | Fair | OTTI Recognized | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | in AOCI | ||||||||||||||||||||
(in millions of U.S. dollars) | Appreciation | Depreciation | ||||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||
U.S. Treasury and agency | $ | 2,946 | $ | 62 | $ | (59 | ) | $ | 2,949 | $ | — | |||||||||||||
Foreign | 14,336 | 377 | (122 | ) | 14,591 | — | ||||||||||||||||||
Corporate securities | 16,825 | 777 | (132 | ) | 17,470 | (6 | ) | |||||||||||||||||
Mortgage-backed securities | 10,937 | 184 | (227 | ) | 10,894 | (34 | ) | |||||||||||||||||
States, municipalities, and political subdivisions | 3,362 | 65 | (77 | ) | 3,350 | — | ||||||||||||||||||
$ | 48,406 | $ | 1,465 | $ | (617 | ) | $ | 49,254 | $ | (40 | ) | |||||||||||||
Held to maturity | ||||||||||||||||||||||||
U.S. Treasury and agency | $ | 820 | $ | 16 | $ | (4 | ) | $ | 832 | $ | — | |||||||||||||
Foreign | 864 | 33 | — | 897 | — | |||||||||||||||||||
Corporate securities | 1,922 | 83 | — | 2,005 | — | |||||||||||||||||||
Mortgage-backed securities | 1,341 | 39 | (1 | ) | 1,379 | — | ||||||||||||||||||
States, municipalities, and political subdivisions | 1,151 | 16 | (17 | ) | 1,150 | — | ||||||||||||||||||
$ | 6,098 | $ | 187 | $ | (22 | ) | $ | 6,263 | $ | — | ||||||||||||||
As discussed in Note 3 c), if a credit loss is indicated on an impaired fixed maturity, an OTTI is considered to have occurred and the portion of the impairment not related to credit losses (non-credit OTTI) is recognized in OCI. Included in the “OTTI Recognized in AOCI” columns above are the cumulative amounts of non-credit OTTI recognized in OCI adjusted for subsequent sales, maturities, and redemptions. OTTI recognized in AOCI does not include the impact of subsequent changes in fair value of the related securities. In periods subsequent to a recognition of OTTI in OCI, changes in the fair value of the related fixed maturities are reflected in Unrealized appreciation (depreciation) in the consolidated statement of shareholders’ equity. For the three months ended March 31, 2014 and 2013, $4 million and $24 million, respectively, of net unrealized appreciation related to such securities is included in OCI. At March 31, 2014 and December 31, 2013, AOCI includes cumulative net unrealized depreciation of $2 million and $4 million, respectively, related to securities remaining in the investment portfolio at those dates for which ACE has recognized a non-credit OTTI. | ||||||||||||||||||||||||
Mortgage-backed securities (MBS) issued by U.S. government agencies are combined with all other to be announced mortgage derivatives held (refer to Note 6 a) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 82 percent and 83 percent, of the total mortgage-backed securities at March 31, 2014 and December 31, 2013, respectively, are represented by investments in U.S. government agency bonds. The remainder of the mortgage exposure consists of collateralized mortgage obligations and non-government mortgage-backed securities, the majority of which provide a planned structure for principal and interest payments and carry a rating of AAA by the major credit rating agencies. | ||||||||||||||||||||||||
The following table presents fixed maturities by contractual maturity: | ||||||||||||||||||||||||
31-Mar | 31-Dec | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||
Due in 1 year or less | $ | 2,504 | $ | 2,528 | $ | 2,387 | $ | 2,411 | ||||||||||||||||
Due after 1 year through 5 years | 14,199 | 14,713 | 14,139 | 14,602 | ||||||||||||||||||||
Due after 5 years through 10 years | 15,947 | 16,460 | 16,200 | 16,535 | ||||||||||||||||||||
Due after 10 years | 4,716 | 4,939 | 4,743 | 4,812 | ||||||||||||||||||||
37,366 | 38,640 | 37,469 | 38,360 | |||||||||||||||||||||
Mortgage-backed securities | 10,916 | 10,971 | 10,937 | 10,894 | ||||||||||||||||||||
$ | 48,282 | $ | 49,611 | $ | 48,406 | $ | 49,254 | |||||||||||||||||
Held to maturity | ||||||||||||||||||||||||
Due in 1 year or less | $ | 539 | $ | 547 | $ | 401 | $ | 405 | ||||||||||||||||
Due after 1 year through 5 years | 2,419 | 2,503 | 2,284 | 2,363 | ||||||||||||||||||||
Due after 5 years through 10 years | 1,304 | 1,345 | 1,686 | 1,723 | ||||||||||||||||||||
Due after 10 years | 360 | 379 | 386 | 393 | ||||||||||||||||||||
4,622 | 4,774 | 4,757 | 4,884 | |||||||||||||||||||||
Mortgage-backed securities | 1,265 | 1,306 | 1,341 | 1,379 | ||||||||||||||||||||
$ | 5,887 | $ | 6,080 | $ | 6,098 | $ | 6,263 | |||||||||||||||||
Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. | ||||||||||||||||||||||||
b) Equity securities | ||||||||||||||||||||||||
31-Mar | 31-Dec | |||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||
Cost | $ | 845 | $ | 841 | ||||||||||||||||||||
Gross unrealized appreciation | 64 | 63 | ||||||||||||||||||||||
Gross unrealized depreciation | (58 | ) | (67 | ) | ||||||||||||||||||||
Fair value | $ | 851 | $ | 837 | ||||||||||||||||||||
c) Net realized gains (losses) | ||||||||||||||||||||||||
In accordance with guidance related to the recognition and presentation of OTTI, when an impairment related to a fixed maturity has occurred, OTTI is required to be recorded in Net income if management has the intent to sell the security or it is more likely than not that we will be required to sell the security before the recovery of its amortized cost. Further, in cases where we do not intend to sell the security and it is more likely than not that we will not be required to sell the security, ACE must evaluate the security to determine the portion of the impairment, if any, related to credit losses. If a credit loss is indicated, an OTTI is considered to have occurred and any portion of the OTTI related to credit losses must be reflected in Net income while the portion of OTTI related to all other factors is recognized in OCI. For fixed maturities held to maturity, OTTI recognized in OCI is accreted from AOCI to the amortized cost of the fixed maturity prospectively over the remaining term of the securities. | ||||||||||||||||||||||||
Each quarter, securities in an unrealized loss position (impaired securities), including fixed maturities, securities lending collateral, equity securities, and other investments, are reviewed to identify impaired securities to be specifically evaluated for a potential OTTI. | ||||||||||||||||||||||||
For all non-fixed maturities, OTTI is evaluated based on the following: | ||||||||||||||||||||||||
• | the amount of time a security has been in a loss position and the magnitude of the loss position; | |||||||||||||||||||||||
• | the period in which cost is expected to be recovered, if at all, based on various criteria including economic conditions and other issuer-specific developments; and | |||||||||||||||||||||||
• | ACE’s ability and intent to hold the security to the expected recovery period. | |||||||||||||||||||||||
As a general rule, we also consider that equity securities in an unrealized loss position for twelve consecutive months are other than temporarily impaired. | ||||||||||||||||||||||||
We review each fixed maturity in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, we consider credit rating, market price, and issuer-specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which we determine that credit loss is likely are subjected to further analysis to estimate the credit loss recognized in Net income, if any. In general, credit loss recognized in Net income equals the difference between the security’s amortized cost and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security. All significant assumptions used in determining credit losses are subject to change as market conditions evolve. | ||||||||||||||||||||||||
Projected cash flows for corporate securities (principally senior unsecured bonds) are driven primarily by assumptions regarding probability of default and also the timing and amount of recoveries associated with defaults. ACE developed projected cash flows for corporate securities using market observable data, issuer-specific information, and credit ratings. We use historical default data by Moody’s Investors Service (Moody’s) rating category to calculate a 1-in-100 year probability of default, which results in a default assumption in excess of the historical mean default rate. Consistent with management's approach, ACE assumed a 32 percent recovery rate (the par value of a defaulted security that will be recovered) across all rating categories rather than using Moody's historical mean recovery rate of 42 percent. We believe that use of a default assumption in excess of the historical mean is conservative in light of current market conditions. | ||||||||||||||||||||||||
For the three months ended March 31, 2014 and 2013, credit losses recognized in Net income for corporate securities were $4 million and $1 million, respectively. | ||||||||||||||||||||||||
For mortgage-backed securities, credit impairment is assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements that exist in that structure. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including default rates, prepayment rates, and loss severity rates (the par value of a defaulted security that will not be recovered) on foreclosed properties. | ||||||||||||||||||||||||
For the three months ended March 31, 2014 and 2013, there were no credit losses recognized in Net income for mortgage-backed securities. | ||||||||||||||||||||||||
The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary”: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
OTTI on fixed maturities, gross | $ | (6 | ) | $ | (1 | ) | ||||||||||||||||||
OTTI on fixed maturities recognized in OCI (pre-tax) | 1 | — | ||||||||||||||||||||||
OTTI on fixed maturities, net | (5 | ) | (1 | ) | ||||||||||||||||||||
Gross realized gains excluding OTTI | 36 | 62 | ||||||||||||||||||||||
Gross realized losses excluding OTTI | (20 | ) | (25 | ) | ||||||||||||||||||||
Total fixed maturities | 11 | 36 | ||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
OTTI on equity securities | (6 | ) | (1 | ) | ||||||||||||||||||||
Gross realized gains excluding OTTI | 2 | 2 | ||||||||||||||||||||||
Gross realized losses excluding OTTI | (1 | ) | (2 | ) | ||||||||||||||||||||
Total equity securities | (5 | ) | (1 | ) | ||||||||||||||||||||
OTTI on other investments | — | (1 | ) | |||||||||||||||||||||
Foreign exchange gains (losses) | (9 | ) | 76 | |||||||||||||||||||||
Investment and embedded derivative instruments | (25 | ) | 18 | |||||||||||||||||||||
Fair value adjustments on insurance derivative | (48 | ) | 328 | |||||||||||||||||||||
S&P put options and futures | (19 | ) | (250 | ) | ||||||||||||||||||||
Other derivative instruments | (2 | ) | — | |||||||||||||||||||||
Other | (7 | ) | — | |||||||||||||||||||||
Net realized gains (losses) | $ | (104 | ) | $ | 206 | |||||||||||||||||||
The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||
Balance of credit losses related to securities still held – beginning of period | $ | 37 | $ | 43 | ||||||||||||||||||||
Additions where no OTTI was previously recorded | 2 | — | ||||||||||||||||||||||
Additions where an OTTI was previously recorded | 2 | 1 | ||||||||||||||||||||||
Reductions for securities sold during the period | (6 | ) | (9 | ) | ||||||||||||||||||||
Balance of credit losses related to securities still held – end of period | $ | 35 | $ | 35 | ||||||||||||||||||||
d) Gross unrealized loss | ||||||||||||||||||||||||
At March 31, 2014, there were 4,540 fixed maturities out of a total of 24,991 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $5 million. There were 58 equity securities out of a total of 186 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $54 million. Fixed maturities in an unrealized loss position at March 31, 2014, comprised both investment grade and below investment grade securities for which fair value declined primarily due to widening credit spreads since the date of purchase. Equity securities in an unrealized loss position at March 31, 2014, included foreign fixed income securities held in a commingled fund structure for which fair value declined primarily due to widening credit spreads since the date of purchase. | ||||||||||||||||||||||||
The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: | ||||||||||||||||||||||||
0 – 12 Months | Over 12 Months | Total | ||||||||||||||||||||||
31-Mar-14 | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(in millions of U.S. dollars) | Loss | Loss | Loss | |||||||||||||||||||||
U.S. Treasury and agency | $ | 1,609 | $ | (37 | ) | $ | 33 | $ | (4 | ) | $ | 1,642 | $ | (41 | ) | |||||||||
Foreign | 2,988 | (56 | ) | 259 | (9 | ) | 3,247 | (65 | ) | |||||||||||||||
Corporate securities | 2,940 | (58 | ) | 211 | (13 | ) | 3,151 | (71 | ) | |||||||||||||||
Mortgage-backed securities | 4,367 | (130 | ) | 398 | (25 | ) | 4,765 | (155 | ) | |||||||||||||||
States, municipalities, and political subdivisions | 1,575 | (39 | ) | 189 | (11 | ) | 1,764 | (50 | ) | |||||||||||||||
Total fixed maturities | 13,479 | (320 | ) | 1,090 | (62 | ) | 14,569 | (382 | ) | |||||||||||||||
Equity securities | 496 | (58 | ) | — | — | 496 | (58 | ) | ||||||||||||||||
Other investments | 65 | (5 | ) | — | — | 65 | (5 | ) | ||||||||||||||||
Total | $ | 14,040 | $ | (383 | ) | $ | 1,090 | $ | (62 | ) | $ | 15,130 | $ | (445 | ) | |||||||||
0 – 12 Months | Over 12 Months | Total | ||||||||||||||||||||||
31-Dec-13 | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(in millions of U.S. dollars) | Loss | Loss | Loss | |||||||||||||||||||||
U.S. Treasury and agency | $ | 1,794 | $ | (57 | ) | $ | 31 | $ | (6 | ) | $ | 1,825 | $ | (63 | ) | |||||||||
Foreign | 4,621 | (114 | ) | 201 | (8 | ) | 4,822 | (122 | ) | |||||||||||||||
Corporate securities | 3,836 | (118 | ) | 194 | (14 | ) | 4,030 | (132 | ) | |||||||||||||||
Mortgage-backed securities | 5,248 | (197 | ) | 384 | (31 | ) | 5,632 | (228 | ) | |||||||||||||||
States, municipalities, and political subdivisions | 2,164 | (90 | ) | 84 | (4 | ) | 2,248 | (94 | ) | |||||||||||||||
Total fixed maturities | 17,663 | (576 | ) | 894 | (63 | ) | 18,557 | (639 | ) | |||||||||||||||
Equity securities | 498 | (67 | ) | — | — | 498 | (67 | ) | ||||||||||||||||
Other investments | 67 | (9 | ) | — | — | 67 | (9 | ) | ||||||||||||||||
Total | $ | 18,228 | $ | (652 | ) | $ | 894 | $ | (63 | ) | $ | 19,122 | $ | (715 | ) | |||||||||
e) Restricted assets | ||||||||||||||||||||||||
ACE is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. ACE is also required to restrict assets pledged under repurchase agreements. We also use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We also have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets at March 31, 2014 and December 31, 2013, are investments, primarily fixed maturities, totaling $16.5 billion and $16.3 billion, respectively, and cash of $98 million and $162 million, respectively. | ||||||||||||||||||||||||
The following table presents the components of restricted assets: | ||||||||||||||||||||||||
31-Mar | 31-Dec | |||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||
Trust funds | $ | 11,385 | $ | 11,315 | ||||||||||||||||||||
Deposits with non-U.S. regulatory authorities | 1,962 | 1,970 | ||||||||||||||||||||||
Assets pledged under repurchase agreements | 1,452 | 1,435 | ||||||||||||||||||||||
Deposits with U.S. regulatory authorities | 1,334 | 1,334 | ||||||||||||||||||||||
Other pledged assets | 420 | 391 | ||||||||||||||||||||||
$ | 16,553 | $ | 16,445 | |||||||||||||||||||||
Fair_value_measurements
Fair value measurements | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Fair value measurements | ' | |||||||||||||||||||||||||||
Fair value measurements | ||||||||||||||||||||||||||||
a) Fair value hierarchy | ||||||||||||||||||||||||||||
Fair value of financial assets and financial liabilities is estimated based on the framework established in the fair value accounting guidance. The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. | ||||||||||||||||||||||||||||
The three levels of the hierarchy are as follows: | ||||||||||||||||||||||||||||
• | Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets; | |||||||||||||||||||||||||||
• | Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and | |||||||||||||||||||||||||||
• | Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||||||||||||
We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement. Accordingly, transfers between levels within the valuation hierarchy occur when there are significant changes to the inputs, such as increases or decreases in market activity, changes to the availability of current prices, changes to the transparency to underlying inputs, and whether there are significant variances in quoted prices. Transfers in and/or out of any level are assumed to occur at the end of the period. | ||||||||||||||||||||||||||||
We use pricing services to obtain fair value measurements for the majority of our investment securities. Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate. Based on our understanding of the market inputs used by the pricing services, all applicable investments have been valued in accordance with GAAP. We do not adjust prices obtained from pricing services. The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy. | ||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||
We use pricing services to estimate fair value measurements for the majority of our fixed maturities. The pricing services use market quotations for fixed maturities that have quoted prices in active markets; such securities are classified within Level 1. For fixed maturities other than U.S. Treasury securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Additional valuation factors that can be taken into account are nominal spreads, dollar basis, and liquidity adjustments. The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements, and sector news. The market inputs used in the pricing evaluation, listed in the approximate order of priority include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each input is dependent on the asset class and the market conditions. Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant. Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market based inputs (i.e., stale pricing), which may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur. The overwhelming majority of fixed maturities are classified within Level 2 because the most significant inputs used in the pricing techniques are observable. For a small number of fixed maturities, we obtain a quote from a broker (typically a market maker). Due to the disclaimers on the quotes that indicate that the price is indicative only, we include these fair value estimates in | ||||||||||||||||||||||||||||
Level 3. | ||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||
Equity securities with active markets are classified within Level 1 as fair values are based on quoted market prices. For equity securities in markets which are less active, fair values are based on market valuations and are classified within Level 2. Equity securities for which pricing is unobservable are classified within Level 3. | ||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||
Short-term investments, which comprise securities due to mature within one year of the date of purchase that are traded in active markets, are classified within Level 1 as fair values are based on quoted market prices. Securities such as commercial paper and discount notes are classified within Level 2 because these securities are typically not actively traded due to their approaching maturity and, as such, their cost approximates fair value. Short-term investments for which pricing is unobservable are classified within Level 3. | ||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||
Fair values for the majority of Other investments including investments in partially-owned investment companies, investment funds, and limited partnerships are based on their respective net asset values or equivalent (NAV). The majority of these investments, for which NAV was used as a practical expedient to measure fair value, are classified within Level 3 because either ACE will never have the contractual option to redeem the investments or will not have the contractual option to redeem the investments in the near term. The remainder of such investments is classified within Level 2. Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP. These assets comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Other investments also includes equity securities and fixed maturities held in rabbi trusts maintained by ACE for deferred compensation plans, which are classified within the valuation hierarchy on the same basis as other equity securities and fixed maturities. | ||||||||||||||||||||||||||||
Securities lending collateral | ||||||||||||||||||||||||||||
The underlying assets included in Securities lending collateral in the consolidated balance sheets are fixed maturities which are classified in the valuation hierarchy on the same basis as other fixed maturities. Excluded from the valuation hierarchy is the corresponding liability related to ACE’s obligation to return the collateral plus interest as it is reported at contract value and not fair value in the consolidated balance sheets. | ||||||||||||||||||||||||||||
Investment derivative instruments | ||||||||||||||||||||||||||||
Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps are based on market valuations and are classified within Level 2. Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets. | ||||||||||||||||||||||||||||
Other derivative instruments | ||||||||||||||||||||||||||||
We maintain positions in other derivative instruments including exchange-traded equity futures contracts and option contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, reserves for our guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) reinsurance business. Our position in exchange-traded equity futures contracts is classified within Level 1. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the consolidated balance sheets. | ||||||||||||||||||||||||||||
Separate account assets | ||||||||||||||||||||||||||||
Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by ACE. Separate account assets comprise mutual funds classified in the valuation hierarchy on the same basis as other equity securities traded in active markets and are classified within Level 1. Separate account assets also include fixed maturities classified within Level 2 because the most significant inputs used in the pricing techniques are observable. Excluded from the valuation hierarchy are the corresponding liabilities as they are reported at contract value and not fair value in the consolidated balance sheets. Separate account assets are recorded in Other assets in the consolidated balance sheets. | ||||||||||||||||||||||||||||
Guaranteed living benefits | ||||||||||||||||||||||||||||
The GLB arises from life reinsurance programs covering living benefit guarantees whereby we assume the risk of guaranteed minimum income benefits (GMIB) and guaranteed minimum accumulation benefits (GMAB) associated with variable annuity contracts. GLB’s are recorded in Accounts payable, accrued expenses, and other liabilities and Future policy benefits in the consolidated balance sheets. For GLB reinsurance, ACE estimates fair value using an internal valuation model which includes current market information and estimates of policyholder behavior. All of the treaties contain claim limits, which are factored into the valuation model. The fair value depends on a number of inputs, including changes in interest rates, changes in equity markets, credit risk, current account value, changes in market volatility, expected annuitization rates, changes in policyholder behavior, and changes in policyholder mortality. | ||||||||||||||||||||||||||||
The most significant policyholder behavior assumptions include lapse rates and the GMIB annuitization rates. Assumptions regarding lapse rates and GMIB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable. The assumptions regarding lapse and GMIB annuitization rates determined for each treaty are based on a dynamic calculation that uses several underlying factors. | ||||||||||||||||||||||||||||
A lapse rate is the percentage of in-force policies surrendered in a given calendar year. All else equal, as lapse rates increase, ultimate claim payments will decrease. | ||||||||||||||||||||||||||||
GMIB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GMIB. All else equal, as GMIB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits. | ||||||||||||||||||||||||||||
The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established in line with data received from other ceding companies adjusted, as appropriate, with industry estimates. The model and related assumptions are continuously re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of more information, such as market conditions, market participant assumptions, and demographics of in-force annuities. During the three months ended March 31, 2014, no material changes were made to actuarial or behavioral assumptions. We made minor technical refinements to the model with an unfavorable net income impact of approximately $3 million. For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2013 Form 10-K. | ||||||||||||||||||||||||||||
We view the variable annuity reinsurance business as having a similar risk profile to that of catastrophe reinsurance, with the probability of a cumulative long-term economic net loss relatively small at the time of pricing. However, adverse changes in market factors and policyholder behavior will have an adverse impact on net income, which may be material. Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3. | ||||||||||||||||||||||||||||
The following tables present, by valuation hierarchy, the financial instruments measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||
31-Mar-14 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Fixed maturities available for sale | ||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 1,709 | $ | 1,261 | $ | — | $ | 2,970 | ||||||||||||||||||||
Foreign | 233 | 14,272 | 26 | 14,531 | ||||||||||||||||||||||||
Corporate securities | — | 17,534 | 151 | 17,685 | ||||||||||||||||||||||||
Mortgage-backed securities | — | 10,963 | 8 | 10,971 | ||||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 3,454 | — | 3,454 | ||||||||||||||||||||||||
1,942 | 47,484 | 185 | 49,611 | |||||||||||||||||||||||||
Equity securities | 380 | 469 | 2 | 851 | ||||||||||||||||||||||||
Short-term investments | 1,590 | 936 | — | 2,526 | ||||||||||||||||||||||||
Other investments | 314 | 245 | 2,611 | 3,170 | ||||||||||||||||||||||||
Securities lending collateral | — | 1,550 | — | 1,550 | ||||||||||||||||||||||||
Investment derivative instruments | 8 | — | — | 8 | ||||||||||||||||||||||||
Other derivative instruments | 7 | — | — | 7 | ||||||||||||||||||||||||
Separate account assets | 1,193 | 83 | — | 1,276 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | 5,434 | $ | 50,767 | $ | 2,798 | $ | 58,999 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Investment derivative instruments | $ | 6 | $ | — | $ | — | $ | 6 | ||||||||||||||||||||
Other derivative instruments | 12 | 2 | — | 14 | ||||||||||||||||||||||||
GLB(1) | — | — | 243 | 243 | ||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 18 | $ | 2 | $ | 243 | $ | 263 | ||||||||||||||||||||
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||||||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Fixed maturities available for sale | ||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 1,626 | $ | 1,323 | $ | — | $ | 2,949 | ||||||||||||||||||||
Foreign | 223 | 14,324 | 44 | 14,591 | ||||||||||||||||||||||||
Corporate securities | — | 17,304 | 166 | 17,470 | ||||||||||||||||||||||||
Mortgage-backed securities | — | 10,886 | 8 | 10,894 | ||||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 3,350 | — | 3,350 | ||||||||||||||||||||||||
1,849 | 47,187 | 218 | 49,254 | |||||||||||||||||||||||||
Equity securities | 373 | 460 | 4 | 837 | ||||||||||||||||||||||||
Short-term investments | 953 | 803 | 7 | 1,763 | ||||||||||||||||||||||||
Other investments | 305 | 231 | 2,440 | 2,976 | ||||||||||||||||||||||||
Securities lending collateral | — | 1,632 | — | 1,632 | ||||||||||||||||||||||||
Investment derivative instruments | 19 | — | — | 19 | ||||||||||||||||||||||||
Other derivative instruments | — | 6 | — | 6 | ||||||||||||||||||||||||
Separate account assets | 1,145 | 81 | — | 1,226 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | 4,644 | $ | 50,400 | $ | 2,669 | $ | 57,713 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Investment derivative instruments | $ | 6 | $ | — | $ | — | $ | 6 | ||||||||||||||||||||
Other derivative instruments | 60 | 2 | — | 62 | ||||||||||||||||||||||||
GLB(1) | — | — | 193 | 193 | ||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 66 | $ | 2 | $ | 193 | $ | 261 | ||||||||||||||||||||
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||||||||||||||||||||||||||
During the three months ended March 31, 2014, there were no transfers from Level 1 to Level 2 or Level 2 to Level 1. | ||||||||||||||||||||||||||||
There were $13 million of transfers from Level 1 to Level 2 and no transfers from Level 2 to Level 1 during the three months ended March 31, 2013. | ||||||||||||||||||||||||||||
Fair value of alternative investments | ||||||||||||||||||||||||||||
Included in Other investments in the fair value hierarchy at March 31, 2014 and December 31, 2013 are investment funds, limited partnerships, and partially-owned investment companies measured at fair value using NAV as a practical expedient. At March 31, 2014 and December 31, 2013, there were no probable or pending sales related to any of the investments measured at fair value using NAV. | ||||||||||||||||||||||||||||
The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments: | ||||||||||||||||||||||||||||
31-Mar | 31-Dec | |||||||||||||||||||||||||||
Expected | 2014 | 2013 | ||||||||||||||||||||||||||
Liquidation | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Period of Underlying Assets | Fair | Maximum | Fair | Maximum | |||||||||||||||||||||||
Value | Future Funding | Value | Future Funding | |||||||||||||||||||||||||
Commitments | Commitments | |||||||||||||||||||||||||||
Financial | 5 to 9 Years | $ | 271 | $ | 122 | $ | 256 | $ | 129 | |||||||||||||||||||
Real estate | 3 to 9 Years | 319 | 63 | 322 | 92 | |||||||||||||||||||||||
Distressed | 6 to 9 Years | 243 | 169 | 180 | 230 | |||||||||||||||||||||||
Mezzanine | 6 to 9 Years | 290 | 235 | 276 | 252 | |||||||||||||||||||||||
Traditional | 3 to 8 Years | 882 | 414 | 813 | 456 | |||||||||||||||||||||||
Vintage | 1 to 3 Years | 12 | — | 13 | — | |||||||||||||||||||||||
Investment funds | Not Applicable | 440 | — | 428 | — | |||||||||||||||||||||||
$ | 2,457 | $ | 1,003 | $ | 2,288 | $ | 1,159 | |||||||||||||||||||||
Included in all categories in the above table except for Investment funds are investments for which ACE will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. Further, for all categories except for Investment funds, ACE does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds. | ||||||||||||||||||||||||||||
Investment Category | Consists of investments in private equity funds: | |||||||||||||||||||||||||||
Financial | targeting financial services companies such as financial institutions and insurance services worldwide | |||||||||||||||||||||||||||
Real estate | targeting global distress opportunities, value added U.S. properties, and global mezzanine debt securities in the commercial real estate market | |||||||||||||||||||||||||||
Distressed | targeting distressed debt/credit and equity opportunities in the U.S | |||||||||||||||||||||||||||
Mezzanine | targeting private mezzanine debt of large-cap and mid-cap companies in the U.S. and worldwide | |||||||||||||||||||||||||||
Traditional | employing traditional private equity investment strategies such as buyout and venture with different geographical focuses including Brazil, Asia, Europe, and the U.S. | |||||||||||||||||||||||||||
Vintage | made before 2002 and where the funds’ commitment periods had already expired | |||||||||||||||||||||||||||
Investment funds | ||||||||||||||||||||||||||||
ACE’s investment funds employ various investment strategies such as long/short equity and arbitrage/distressed. Included in this category are investments for which ACE has the option to redeem at agreed upon value as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investment fund investments may be redeemed monthly, quarterly, semi-annually, or annually. If ACE wishes to redeem an investment fund investment, it must first determine if the investment fund is still in a lock-up period (a time when ACE cannot redeem its investment so that the investment fund manager has time to build the portfolio). If the investment fund is no longer in its lock-up period, ACE must then notify the investment fund manager of its intention to redeem by the notification date prescribed by the subscription agreement. Subsequent to notification, the investment fund can redeem ACE’s investment within several months of the notification. Notice periods for redemption of the investment funds range between 5 and 120 days. ACE can redeem its investment funds without consent from the investment fund managers. | ||||||||||||||||||||||||||||
Level 3 financial instruments | ||||||||||||||||||||||||||||
The fair values of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) consist of various inputs and assumptions that management makes when determining fair value. Management analyzes changes in fair value measurements classified within Level 3 by comparing pricing and returns of our investments to benchmarks, including month-over-month movements, investment credit spreads, interest rate movements, and credit quality of securities. | ||||||||||||||||||||||||||||
The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes or net asset value and contain no quantitative unobservable inputs developed by management. | ||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Fair Value | Valuation | Significant | Ranges | ||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | Technique | Unobservable Inputs | |||||||||||||||||||||||||
GLB(1) | $ | 243 | $ | 193 | Actuarial model | Lapse rate | 1% – 30% | |||||||||||||||||||||
Annuitization rate | 0% – 55% | |||||||||||||||||||||||||||
(1) | Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits. | |||||||||||||||||||||||||||
The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||
Three Months Ended | Available-for-Sale Debt Securities | Equity | Short-term investments | Other | GLB(1) | |||||||||||||||||||||||
31-Mar-14 | Foreign | Corporate | MBS | securities | investments | |||||||||||||||||||||||
(in millions of U.S. dollars) | securities | |||||||||||||||||||||||||||
Balance–Beginning of Period | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 2,440 | $ | 193 | ||||||||||||||
Transfers into Level 3 | — | 4 | — | — | — | — | — | |||||||||||||||||||||
Transfers out of Level 3 | (18 | ) | (22 | ) | — | (2 | ) | (7 | ) | — | — | |||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (1 | ) | — | — | 1 | — | 41 | — | ||||||||||||||||||||
Net Realized Gains/Losses | — | — | — | — | — | — | 50 | |||||||||||||||||||||
Purchases | 2 | 15 | — | 1 | — | 200 | — | |||||||||||||||||||||
Sales | (1 | ) | (6 | ) | — | (2 | ) | — | (1 | ) | — | |||||||||||||||||
Settlements | — | (6 | ) | — | — | — | (69 | ) | — | |||||||||||||||||||
Balance–End of Period | $ | 26 | $ | 151 | $ | 8 | $ | 2 | $ | — | $ | 2,611 | $ | 243 | ||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 50 | ||||||||||||||
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity | Other | GLB(1) | |||||||||||||||||||||||||
Three Months Ended | Foreign | Corporate | MBS | securities | investments | |||||||||||||||||||||||
31-Mar-13 | securities | |||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Balance–Beginning of Period | $ | 60 | $ | 102 | $ | 13 | $ | 3 | $ | 2,252 | $ | 1,119 | ||||||||||||||||
Transfers into Level 3 | 3 | 12 | — | — | — | — | ||||||||||||||||||||||
Transfers out of Level 3 | (27 | ) | (2 | ) | — | (1 | ) | — | — | |||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | — | 1 | — | — | 22 | — | ||||||||||||||||||||||
Net Realized Gains/Losses | 1 | — | — | — | (1 | ) | (366 | ) | ||||||||||||||||||||
Purchases | — | 10 | — | — | 136 | — | ||||||||||||||||||||||
Sales | (1 | ) | — | — | — | (9 | ) | — | ||||||||||||||||||||
Settlements | (1 | ) | (5 | ) | — | — | (72 | ) | — | |||||||||||||||||||
Balance–End of Period | $ | 35 | $ | 118 | $ | 13 | $ | 2 | $ | 2,328 | $ | 753 | ||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (366 | ) | ||||||||||||||
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $1.0 billion at March 31, 2013, and $1.4 billion at December 31, 2012, which includes a fair value derivative adjustment of $753 million and $1.1 billion, respectively. | |||||||||||||||||||||||||||
b) Financial instruments disclosed, but not measured, at fair value | ||||||||||||||||||||||||||||
ACE uses various financial instruments in the normal course of its business. Our insurance contracts are excluded from fair value of financial instruments accounting guidance, and therefore, are not included in the amounts discussed below. | ||||||||||||||||||||||||||||
The carrying values of cash, other assets, other liabilities, and other financial instruments not included below approximated their fair values. | ||||||||||||||||||||||||||||
Investments in partially-owned insurance companies | ||||||||||||||||||||||||||||
Fair values for investments in partially-owned insurance companies are based on ACE’s share of the net assets based on the financial statements provided by those companies. | ||||||||||||||||||||||||||||
Short- and long-term debt and trust preferred securities | ||||||||||||||||||||||||||||
Where practical, fair values for short-term debt, long-term debt, and trust preferred securities are estimated using discounted cash flow calculations based principally on observable inputs including incremental borrowing rates, which reflect ACE’s credit rating, for similar types of borrowings with maturities consistent with those remaining for the debt being valued. | ||||||||||||||||||||||||||||
The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value: | ||||||||||||||||||||||||||||
31-Mar-14 | Fair Value | Carrying Value | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Fixed maturities held to maturity | ||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 595 | $ | 195 | $ | — | $ | 790 | $ | 777 | ||||||||||||||||||
Foreign | — | 874 | — | 874 | 837 | |||||||||||||||||||||||
Corporate securities | — | 1,949 | 16 | 1,965 | 1,876 | |||||||||||||||||||||||
Mortgage-backed securities | — | 1,306 | — | 1,306 | 1,265 | |||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 1,145 | — | 1,145 | 1,132 | |||||||||||||||||||||||
595 | 5,469 | 16 | 6,080 | 5,887 | ||||||||||||||||||||||||
Partially-owned insurance companies | — | — | 466 | 466 | 466 | |||||||||||||||||||||||
Total assets | $ | 595 | $ | 5,469 | $ | 482 | $ | 6,546 | $ | 6,353 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Short-term debt | $ | — | $ | 1,907 | $ | — | $ | 1,907 | $ | 1,901 | ||||||||||||||||||
Long-term debt | — | 4,139 | — | 4,139 | 3,808 | |||||||||||||||||||||||
Trust preferred securities | — | 452 | — | 452 | 309 | |||||||||||||||||||||||
Total liabilities | $ | — | $ | 6,498 | $ | — | $ | 6,498 | $ | 6,018 | ||||||||||||||||||
31-Dec-13 | Fair Value | Carrying Value | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Fixed maturities held to maturity | ||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 596 | $ | 236 | $ | — | $ | 832 | $ | 820 | ||||||||||||||||||
Foreign | — | 897 | — | 897 | 864 | |||||||||||||||||||||||
Corporate securities | — | 1,990 | 15 | 2,005 | 1,922 | |||||||||||||||||||||||
Mortgage-backed securities | — | 1,379 | — | 1,379 | 1,341 | |||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 1,150 | — | 1,150 | 1,151 | |||||||||||||||||||||||
596 | 5,652 | 15 | 6,263 | 6,098 | ||||||||||||||||||||||||
Partially-owned insurance companies | — | — | 470 | 470 | 470 | |||||||||||||||||||||||
Total assets | $ | 596 | $ | 5,652 | $ | 485 | $ | 6,733 | $ | 6,568 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Short-term debt | $ | — | $ | 1,913 | $ | — | $ | 1,913 | $ | 1,901 | ||||||||||||||||||
Long-term debt | — | 4,088 | — | 4,088 | 3,807 | |||||||||||||||||||||||
Trust preferred securities | — | 438 | — | 438 | 309 | |||||||||||||||||||||||
Total liabilities | $ | — | $ | 6,439 | $ | — | $ | 6,439 | $ | 6,017 | ||||||||||||||||||
Assumed_life_reinsurance_progr
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Reinsurance Disclosures [Abstract] | ' | ||||||||||
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts | ' | ||||||||||
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts | |||||||||||
The following table presents income and expenses relating to GMDB and GLB reinsurance. GLBs include GMIBs as well as some GMABs originating in Japan. | |||||||||||
Three Months Ended | |||||||||||
31-Mar | |||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | |||||||||
GMDB | |||||||||||
Net premiums earned | $ | 19 | $ | 20 | |||||||
Policy benefits and other reserve adjustments | $ | 15 | $ | 19 | |||||||
GLB | |||||||||||
Net premiums earned | $ | 36 | $ | 39 | |||||||
Policy benefits and other reserve adjustments | 9 | 9 | |||||||||
Net realized gains (losses) | (50 | ) | 369 | ||||||||
Gain (loss) recognized in income | $ | (23 | ) | $ | 399 | ||||||
Net cash received | $ | 33 | $ | 32 | |||||||
Net (increase) decrease in liability | $ | (56 | ) | $ | 367 | ||||||
At March 31, 2014, reported liabilities for GMDB and GLB reinsurance were $104 million and $483 million, respectively, compared with $100 million and $427 million, respectively, at December 31, 2013. The reported liability for GLB reinsurance of $483 million at March 31, 2014, and $427 million at December 31, 2013, includes a fair value derivative adjustment of $243 million and $193 million, respectively. Included in Net realized gains (losses) in the table above are gains (losses) related to foreign exchange and other fair value derivative adjustments. Reported liabilities for both GMDB and GLB reinsurance are determined using internal valuation models. Such valuations require considerable judgment and are subject to significant uncertainty. The valuation of these products is subject to fluctuations arising from, among other factors, changes in interest rates, changes in equity markets, changes in credit markets, changes in the allocation of the investments underlying annuitants’ account values, and assumptions regarding future policyholder behavior. These models and the related assumptions are continually reviewed by management and enhanced, as appropriate, based upon improvements in modeling assumptions and availability of more information, such as market conditions and demographics of in-force annuities. | |||||||||||
Variable Annuity Net Amount at Risk | |||||||||||
(i) Reinsurance covering the GMDB risk only | |||||||||||
At March 31, 2014 and December 31, 2013, the net amount at risk from reinsurance programs covering the GMDB risk only was $645 million and $586 million, respectively. | |||||||||||
For reinsurance programs covering the GMDB risk only, the net amount at risk is defined as the present value of future claim payments under the following assumptions: | |||||||||||
• | policy account values and guaranteed values are fixed at the valuation date (March 31, 2014 and December 31, 2013, respectively); | ||||||||||
• | there are no lapses or withdrawals; | ||||||||||
• | mortality according to 100 percent of the Annuity 2000 mortality table; | ||||||||||
• | future claims are discounted in line with the discounting assumption used in the calculation of the benefit reserve averaging between 1.5 percent and 2.5 percent; and | ||||||||||
• | reinsurance coverage ends at the earlier of the maturity of the underlying variable annuity policy or the reinsurance treaty. | ||||||||||
The total claim amount payable on reinsurance programs covering the GMDB risk only, if all the cedants’ policyholders were to die immediately at March 31, 2014 was approximately $666 million. This takes into account all applicable reinsurance treaty claim limits. | |||||||||||
(ii) Reinsurance covering the GLB risk only | |||||||||||
At March 31, 2014 and December 31, 2013, the net amount at risk from reinsurance programs covering the GLB risk only was $163 million and $136 million, respectively. | |||||||||||
For reinsurance programs covering the GLB risk only, the net amount at risk is defined as the present value of future claim payments under the following assumptions: | |||||||||||
• | policy account values and guaranteed values are fixed at the valuation date (March 31, 2014 and December 31, 2013, respectively); | ||||||||||
• | there are no deaths, lapses, or withdrawals; | ||||||||||
• | policyholders annuitize at a frequency most disadvantageous to ACE (in other words, annuitization at a level that maximizes claims taking into account the treaty limits) under the terms of the reinsurance contracts; | ||||||||||
• | for annuitizing policyholders, the GMIB claim is calculated using interest rates in line with those used in calculating the reserve; | ||||||||||
• | future claims are discounted in line with the discounting assumption used in the calculation of the benefit reserve averaging between 3.5 percent and 4.5 percent; and | ||||||||||
• | reinsurance coverage ends at the earlier of the maturity of the underlying variable annuity policy or the reinsurance treaty. | ||||||||||
(iii) Reinsurance covering both the GMDB and GLB risks on the same underlying policyholders | |||||||||||
At both March 31, 2014 and December 31, 2013, the GMDB net amount at risk from reinsurance programs covering both the GMDB and GLB risks on the same underlying policyholders was $73 million. | |||||||||||
At March 31, 2014 and December 31, 2013, the GLB net amount at risk from reinsurance programs covering both the GMDB and GLB risks on the same underlying policyholders was $158 million and $141 million, respectively. | |||||||||||
These net amounts at risk reflect the interaction between the two types of benefits on any single policyholder (eliminating double-counting), and therefore the net amounts at risk should be considered additive. | |||||||||||
For reinsurance programs covering both the GMDB and GLB risks on the same underlying policyholders, the net amount at risk is defined as the present value of future claim payments under the following assumptions: | |||||||||||
• | policy account values and guaranteed values are fixed at the valuation date (March 31, 2014 and December 31, 2013, respectively); | ||||||||||
• | there are no lapses, or withdrawals; | ||||||||||
• | mortality according to 100 percent of the Annuity 2000 mortality table; | ||||||||||
• | policyholders annuitize at a frequency most disadvantageous to ACE (in other words, annuitization at a level that maximizes claims taking into account the treaty limits) under the terms of the reinsurance contracts; | ||||||||||
• | for annuitizing policyholders, the GMIB claim is calculated using interest rates in line with those used in calculating the reserve; | ||||||||||
• | future claims are discounted in line with the discounting assumption used in the calculation of the benefit reserve averaging between 3.0 percent and 4.0 percent; and | ||||||||||
• | reinsurance coverage ends at the earlier of the maturity of the underlying variable annuity policy or the reinsurance treaty. | ||||||||||
The total claim amount payable on reinsurance programs covering both the GMDB and GLB risks on the same underlying policyholders, if all of the cedants’ policyholders were to die immediately at March 31, 2014 was approximately $93 million. This takes into account all applicable reinsurance treaty claim limits. Although there would be an increase in death claims resulting from 100 percent immediate mortality of all policyholders, the GLB claims would be zero. | |||||||||||
The average attained age of all policyholders under sections i), ii), and iii) above, weighted by the guaranteed value of each reinsured policy, is approximately 68 years. |
Commitments_contingencies_and_
Commitments, contingencies, and guarantees | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Commitments, contingencies, and guarantees | ' | |||||||||||||||||||||||||
Commitments, contingencies, and guarantees | ||||||||||||||||||||||||||
a) Derivative instruments | ||||||||||||||||||||||||||
Derivative instruments employed | ||||||||||||||||||||||||||
ACE maintains positions in derivative instruments such as futures, options, swaps, and foreign currency forward contracts for which the primary purposes are to manage duration and foreign currency exposure, yield enhancement, or to obtain an exposure to a particular financial market. ACE also maintains positions in convertible bond investments that contain embedded derivatives. These are the most numerous and frequent derivative transactions. | ||||||||||||||||||||||||||
In addition, ACE from time to time purchases to be announced mortgage-backed securities (TBAs) as part of its investing activities. | ||||||||||||||||||||||||||
Under reinsurance programs covering GLBs, ACE assumes the risk of GLBs, including GMIB and GMAB, associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GMAB risk is triggered if, at contract maturity, the contract holder’s account value is less than a guaranteed minimum value. The GLB reinsurance product meets the definition of a derivative instrument. Benefit reserves in respect of GLBs are classified as Future policy benefits (FPB) while the fair value derivative adjustment is classified within Accounts payable, accrued expenses, and other liabilities (AP). ACE also maintains positions in exchange-traded equity futures contracts and options on equity market indices to limit equity exposure in the GMDB and GLB blocks of business. | ||||||||||||||||||||||||||
In relation to certain debt issuances, ACE from time to time enters into interest rate swap transactions for the purpose of either fixing or reducing borrowing costs. Although the use of these interest rate swaps has the economic effect of fixing or reducing borrowing costs on a net basis, gross interest expense on the related debt issuances is included in Interest expense while the settlements related to the interest rate swaps are reflected in Net realized gains (losses) in the consolidated statements of operations. At March 31, 2014, ACE had no in-force interest rate swaps. | ||||||||||||||||||||||||||
All derivative instruments are carried at fair value with changes in fair value recorded in Net realized gains (losses) in the consolidated statements of operations. None of the derivative instruments are designated as hedges for accounting purposes. | ||||||||||||||||||||||||||
The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments: | ||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||
Consolidated | Fair Value | Notional | Fair Value | Notional | ||||||||||||||||||||||
Balance Sheet | Value/ | Value/ | ||||||||||||||||||||||||
Location(1) | Payment | Payment | ||||||||||||||||||||||||
(in millions of U.S. dollars) | Derivative Asset | Derivative (Liability) | Provision | Derivative Asset | Derivative (Liability) | Provision | ||||||||||||||||||||
Investment and embedded derivative instruments | ||||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 2 | $ | (4 | ) | $ | 1,469 | $ | 3 | $ | (4 | ) | $ | 1,202 | |||||||||||
Cross-currency swaps | OA / (AP) | — | — | 50 | — | — | 50 | |||||||||||||||||||
Futures contracts on money market instruments | OA / (AP) | 4 | — | 3,910 | 3 | — | 3,910 | |||||||||||||||||||
Futures contracts on notes and bonds | OA / (AP) | 2 | (2 | ) | 903 | 13 | (2 | ) | 871 | |||||||||||||||||
Convertible bonds | FM AFS | 319 | — | 272 | 302 | — | 254 | |||||||||||||||||||
$ | 327 | $ | (6 | ) | $ | 6,604 | $ | 321 | $ | (6 | ) | $ | 6,287 | |||||||||||||
Other derivative instruments | ||||||||||||||||||||||||||
Futures contracts on equities(2) | OA / (AP) | $ | — | $ | (12 | ) | $ | 1,453 | $ | — | $ | (60 | ) | $ | 1,692 | |||||||||||
Options on equity market indices(2) | OA / (AP) | — | — | 250 | 6 | — | 250 | |||||||||||||||||||
Other | OA / (AP) | 7 | (2 | ) | 64 | — | (2 | ) | 8 | |||||||||||||||||
$ | 7 | $ | (14 | ) | $ | 1,767 | $ | 6 | $ | (62 | ) | $ | 1,950 | |||||||||||||
GLB(3) | (AP) / (FPB) | $ | — | $ | (483 | ) | $ | 321 | $ | — | $ | (427 | ) | $ | 277 | |||||||||||
(1) | Other assets (OA), Fixed maturities available for sale (FM AFS) | |||||||||||||||||||||||||
(2) | Related to GMDB and GLB blocks of business. | |||||||||||||||||||||||||
(3) | Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts. | |||||||||||||||||||||||||
At March 31, 2014 and December 31, 2013, derivative liabilities of $10 million and $41 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement. | ||||||||||||||||||||||||||
At both March 31, 2014 and December 31, 2013, our repurchase obligations of $1,401 million were fully collateralized. At March 31, 2014 and December 31, 2013, our securities lending payable was $1,551 million and $1,633 million, respectively, and our securities lending collateral was $1,550 million and $1,632 million, respectively. The securities lending collateral can only be accessed in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. | ||||||||||||||||||||||||||
The following table presents net realized gains (losses) related to derivative instrument activity in the consolidated statements of operations: | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||||
Investment and embedded derivative instruments | ||||||||||||||||||||||||||
Foreign currency forward contracts | $ | (3 | ) | $ | 5 | |||||||||||||||||||||
All other futures contracts and options | (22 | ) | 7 | |||||||||||||||||||||||
Convertible bonds | — | 6 | ||||||||||||||||||||||||
Total investment and embedded derivative instruments | $ | (25 | ) | $ | 18 | |||||||||||||||||||||
GLB and other derivative instruments | ||||||||||||||||||||||||||
GLB(1) | $ | (48 | ) | $ | 328 | |||||||||||||||||||||
Futures contracts on equities(2) | (17 | ) | (237 | ) | ||||||||||||||||||||||
Options on equity market indices(2) | (2 | ) | (13 | ) | ||||||||||||||||||||||
Other | (2 | ) | — | |||||||||||||||||||||||
Total GLB and other derivative instruments | $ | (69 | ) | $ | 78 | |||||||||||||||||||||
$ | (94 | ) | $ | 96 | ||||||||||||||||||||||
(1) | Excludes foreign exchange gains (losses) related to GLB. | |||||||||||||||||||||||||
(2) | Related to GMDB and GLB blocks of business. | |||||||||||||||||||||||||
Derivative instrument objectives | ||||||||||||||||||||||||||
(i) Foreign currency exposure management | ||||||||||||||||||||||||||
A foreign currency forward contract (forward) is an agreement between participants to exchange specific foreign currencies at a future date. ACE uses forwards to minimize the effect of fluctuating foreign currencies. | ||||||||||||||||||||||||||
(ii) Duration management and market exposure | ||||||||||||||||||||||||||
Futures | ||||||||||||||||||||||||||
Futures contracts give the holder the right and obligation to participate in market movements, determined by the index or underlying security on which the futures contract is based. Settlement is made daily in cash by an amount equal to the change in value of the futures contract times a multiplier that scales the size of the contract. Exchange-traded futures contracts on money market instruments, notes and bonds are used in fixed maturity portfolios to more efficiently manage duration, as substitutes for ownership of the money market instruments, bonds and notes without significantly increasing the risk in the portfolio. Investments in futures contracts may be made only to the extent that there are assets under management not otherwise committed. | ||||||||||||||||||||||||||
Exchange-traded equity futures contracts are used to limit exposure to a severe equity market decline, which would cause an increase in expected claims and therefore, reserves for GMDB and GLB reinsurance business. | ||||||||||||||||||||||||||
Options | ||||||||||||||||||||||||||
An option contract conveys to the holder the right, but not the obligation, to purchase or sell a specified amount or value of an underlying security at a fixed price. Option contracts are used in the investment portfolio as protection against unexpected shifts in interest rates, which would affect the duration of the fixed maturity portfolio. By using options in the portfolio, the overall interest rate sensitivity of the portfolio can be reduced. Option contracts may also be used as an alternative to futures contracts in the synthetic strategy as described above. | ||||||||||||||||||||||||||
Another use for option contracts is to limit exposure to a severe equity market decline, which would cause an increase in expected claims and therefore, reserves for GMDB and GLB reinsurance business. | ||||||||||||||||||||||||||
The price of an option is influenced by the underlying security, expected volatility, time to expiration, and supply and demand. | ||||||||||||||||||||||||||
The credit risk associated with the above derivative financial instruments relates to the potential for non-performance by counterparties. Although non-performance is not anticipated, in order to minimize the risk of loss, management monitors the creditworthiness of its counterparties and obtains collateral. The performance of exchange-traded instruments is guaranteed by the exchange on which they trade. For non-exchange-traded instruments, the counterparties are principally banks which must meet certain criteria according to our investment guidelines. | ||||||||||||||||||||||||||
Cross-currency swaps | ||||||||||||||||||||||||||
Cross-currency swaps are agreements under which two counterparties exchange interest payments and principal denominated in different currencies at a future date. We use cross-currency swaps to reduce the foreign currency and interest rate risk by converting cash flows back into local currency. We invest in foreign currency denominated investments to improve credit diversification and also to obtain better duration matching to our liabilities that is limited in the local currency market. | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Included within Other are derivatives intended to reduce potential losses which may arise from certain exposures in our insurance business. The economic benefit provided by these derivatives is similar to purchased reinsurance. For example, from time to time ACE may enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices. Also included within Other are certain life insurance products that meet the definition of a derivative instrument for accounting purposes. | ||||||||||||||||||||||||||
(iii) Convertible security investments | ||||||||||||||||||||||||||
A convertible bond is a debt instrument that can be converted into a predetermined amount of the issuer’s equity at certain times prior to the bond’s maturity. The convertible option is an embedded derivative within the fixed maturity host instruments which are classified in the investment portfolio as available for sale. ACE purchases convertible bonds for their total return and not specifically for the conversion feature. | ||||||||||||||||||||||||||
(iv) TBA | ||||||||||||||||||||||||||
By acquiring TBAs, we make a commitment to purchase a future issuance of mortgage-backed securities. For the period between purchase of the TBAs and issuance of the underlying security, we account for our position as a derivative in the consolidated financial statements. ACE purchases TBAs both for their total return and for the flexibility they provide related to our mortgage-backed security strategy. | ||||||||||||||||||||||||||
(v) GLB | ||||||||||||||||||||||||||
Under the GLB program, as the assuming entity, ACE is obligated to provide coverage until the expiration or maturity of the underlying deferred annuity contracts or the expiry of the reinsurance treaty. Premiums received under the reinsurance treaties are classified as premium. Expected losses allocated to premiums received are classified as Future policy benefits and valued similar to GMDB reinsurance. Other changes in fair value, principally arising from changes in expected losses allocated to expected future premiums, are classified as Net realized gains (losses). Fair value represents management’s estimate of exit price and thus, includes a risk margin. We may recognize a realized loss for other changes in fair value due to adverse changes in the capital markets (e.g., declining interest rates and/or declining equity markets) and changes in actual or estimated future policyholder behavior (e.g., increased annuitization or decreased lapse rates) although we expect the business to be profitable. We believe this presentation provides the most meaningful disclosure of changes in the underlying risk within the GLB reinsurance programs for a given reporting period. | ||||||||||||||||||||||||||
b) Other investments | ||||||||||||||||||||||||||
At March 31, 2014, included in Other investments in the consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $2.0 billion. In connection with these investments, we have commitments that may require funding of up to $1.0 billion over the next several years. | ||||||||||||||||||||||||||
c) Taxation | ||||||||||||||||||||||||||
As of March 31, 2014, $26 million of unrecognized tax benefits remains outstanding. It is reasonably possible that over the next twelve months, the amount of unrecognized tax benefits may change resulting from the re-evaluation of unrecognized tax benefits arising from examinations of taxing authorities. With few exceptions, ACE is no longer subject to state and local or non-U.S. income tax examinations for years before 2005. | ||||||||||||||||||||||||||
d) Legal proceedings | ||||||||||||||||||||||||||
Our insurance subsidiaries are subject to claims litigation involving disputed interpretations of policy coverages and, in some jurisdictions, direct actions by allegedly-injured persons seeking damages from policyholders. These lawsuits, involving claims on policies issued by our subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in our loss and loss expense reserves. In addition to claims litigation, we are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies. This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures. In the opinion of management, our ultimate liability for these matters could be, but we believe is not likely to be, material to our consolidated financial condition and results of operations. |
Shareholders_equity
Shareholders' equity | 3 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Shareholders' equity | ' |
Shareholders’ equity | |
All of ACE’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, ACE continues to use U.S. dollars as its reporting currency for preparing consolidated financial statements. Under Swiss corporate law, dividends, including distributions through a reduction in par value (par value reduction) or from legal reserves, must be stated in Swiss francs though dividend payments are made by ACE in U.S. dollars. At our May 2012 and May 2013 annual general meetings, our shareholders approved a dividend for the following year, respectively, payable in four quarterly installments after the annual general meetings in the form of a distribution by way of a par value reduction. At the January 10, 2014 Extraordinary General Meeting, our shareholders approved a resolution to increase our quarterly dividend from $0.51 per share to $0.63 per share for the final two quarterly installments (made on January 31, 2014 and April 17, 2014) that had been earlier approved at our 2013 annual general meeting. The $0.12 per share increase for each installment was distributed from capital contribution reserves (Additional paid-in capital), a subaccount of legal reserves, and transferred to free reserves (Retained earnings) for payment, while the existing $0.51 per share was distributed by way of a par value reduction. | |
For the three months ended March 31, 2014, dividends per Common Share amounted to CHF 0.65 ($0.75), of which CHF 0.45 ($0.51) were distributed by way of a par value reduction and CHF 0.20 ($0.24) were distributed from capital contribution reserves. Par value reductions have been reflected as such through Common Shares in the consolidated statements of shareholders' equity and had the effect of reducing par value per Common Share to CHF 26.59 at March 31, 2014. | |
Common Shares in treasury are used principally for issuance upon the exercise of employee stock options, grants of restricted stock, and purchases under the Employee Stock Purchase Plan (ESPP). At March 31, 2014, 4,857,768 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans. | |
ACE Limited securities repurchase authorization | |
For the three months ended March 31, 2014, ACE repurchased 3,487,882 Common Shares for a cost of $332 million in a series of open market transactions under the November 2013 Board authorization of a share repurchase program of up to $2.0 billion of ACE's Common Shares through December 31, 2014. At March 31, 2014, $1.61 billion in share repurchase authorization remained through December 31, 2014 pursuant to the Board authorization. For the period April 1, 2014 through May 1, 2014, ACE repurchased 531,000 Common Shares for a total of $53 million in a series of open market transactions. At May 1, 2014, $1.56 billion in share repurchase authorization remained through December 31, 2014. |
Sharebased_compensation
Share-based compensation | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-based compensation | ' |
Share-based compensation | |
The ACE Limited 2004 Long-Term Incentive Plan (the 2004 LTIP) permits grants of both incentive and non-qualified stock options principally at an option price per share equal to the grant date fair value of ACE’s Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term. Stock options typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 27, 2014, ACE granted 1,779,074 stock options with a weighted-average grant date fair value of $18.00 each. The fair value of the options issued is estimated on the date of grant using the Black-Scholes option pricing model. | |
The 2004 LTIP also permits grants of restricted stock and restricted stock units. ACE generally grants restricted stock and restricted stock units with a 4-year vesting period, based on a graded vesting schedule. The restricted stock is granted at market close price on the grant date. On February 27, 2014, ACE granted 1,492,290 restricted stock awards and 276,992 restricted stock units to employees and officers with a grant date fair value of $96.76 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting. |
Segment_information
Segment information | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Segment information | ' | |||||||||||||||||||||||||||
Segment information | ||||||||||||||||||||||||||||
ACE operates through five business segments: Insurance – North American P&C, Insurance – North American Agriculture, Insurance – Overseas General, Global Reinsurance, and Life. These segments distribute their products through various forms of brokers, agencies, and direct marketing programs. All business segments have established relationships with reinsurance intermediaries. | ||||||||||||||||||||||||||||
For segment reporting purposes, certain items have been presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main measure of segment performance. ACE calculates underwriting income by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. For the Insurance – North American Agriculture segment, management includes gains and losses from fair value changes on crop derivatives as a component of underwriting income. For the three months ended March 31, 2014, underwriting loss in our Insurance – North American Agriculture segment was $31 million. This amount includes $2 million of realized losses related to crop derivatives which are included in Net realized gains (losses) below. For the Life segment, management includes Net investment income and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life underwriting income. For example, for the three months ended March 31, 2014, Life underwriting income of $98 million includes Net investment income of $64 million and losses from fair value changes in separate account assets of $6 million. | ||||||||||||||||||||||||||||
The following tables present the Statement of Operations by segment: | ||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – | Global | Life | Corporate | ACE | |||||||||||||||||||||
Overseas | Reinsurance | Consolidated | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | General | |||||||||||||||||||||||||||
Net premiums written | $ | 1,418 | $ | 194 | $ | 1,771 | $ | 308 | $ | 494 | $ | — | $ | 4,185 | ||||||||||||||
Net premiums earned | 1,487 | 103 | 1,612 | 284 | 484 | — | 3,970 | |||||||||||||||||||||
Losses and loss expenses | 940 | 126 | 817 | 126 | 151 | 1 | 2,161 | |||||||||||||||||||||
Policy benefits | — | — | — | — | 114 | — | 114 | |||||||||||||||||||||
Policy acquisition costs | 159 | 5 | 386 | 67 | 111 | — | 728 | |||||||||||||||||||||
Administrative expenses | 161 | 1 | 250 | 14 | 68 | 41 | 535 | |||||||||||||||||||||
Underwriting income (loss) | 227 | (29 | ) | 159 | 77 | 40 | (42 | ) | 432 | |||||||||||||||||||
Net investment income | 270 | 7 | 132 | 77 | 64 | 3 | 553 | |||||||||||||||||||||
Net realized gains (losses) including OTTI | (9 | ) | (2 | ) | (10 | ) | (8 | ) | (76 | ) | 1 | (104 | ) | |||||||||||||||
Interest expense | 3 | — | 1 | 1 | 3 | 63 | 71 | |||||||||||||||||||||
Other (income) expense: | ||||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | 6 | — | 6 | |||||||||||||||||||||
Other | (20 | ) | 8 | (6 | ) | (19 | ) | 7 | 7 | (23 | ) | |||||||||||||||||
Income tax expense (benefit) | 83 | (7 | ) | 37 | 10 | 10 | (40 | ) | 93 | |||||||||||||||||||
Net income (loss) | $ | 422 | $ | (25 | ) | $ | 249 | $ | 154 | $ | 2 | $ | (68 | ) | $ | 734 | ||||||||||||
For the Three Months Ended March 31, 2013 | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – | Global | Life | Corporate | ACE | |||||||||||||||||||||
Overseas | Reinsurance | Consolidated | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | General | |||||||||||||||||||||||||||
Net premiums written | $ | 1,284 | $ | 113 | $ | 1,620 | $ | 279 | $ | 502 | $ | — | $ | 3,798 | ||||||||||||||
Net premiums earned | 1,338 | 52 | 1,459 | 247 | 477 | — | 3,573 | |||||||||||||||||||||
Losses and loss expenses | 878 | 32 | 747 | 106 | 157 | 6 | 1,926 | |||||||||||||||||||||
Policy benefits | — | — | — | — | 131 | — | 131 | |||||||||||||||||||||
Policy acquisition costs | 143 | 4 | 339 | 48 | 80 | — | 614 | |||||||||||||||||||||
Administrative expenses | 125 | 5 | 236 | 12 | 85 | 51 | 514 | |||||||||||||||||||||
Underwriting income (loss) | 192 | 11 | 137 | 81 | 24 | (57 | ) | 388 | ||||||||||||||||||||
Net investment income | 251 | 6 | 132 | 72 | 63 | 7 | 531 | |||||||||||||||||||||
Net realized gains (losses) including OTTI | 26 | — | 34 | 20 | 127 | (1 | ) | 206 | ||||||||||||||||||||
Interest (income) expense | (2 | ) | — | 1 | 1 | 4 | 56 | 60 | ||||||||||||||||||||
Other (income) expense: | ||||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||||
Other | (15 | ) | 8 | (1 | ) | (8 | ) | — | 10 | (6 | ) | |||||||||||||||||
Income tax expense (benefit) | 94 | 2 | 46 | 8 | 13 | (41 | ) | 122 | ||||||||||||||||||||
Net income (loss) | $ | 392 | $ | 7 | $ | 257 | $ | 172 | $ | 201 | $ | (76 | ) | $ | 953 | |||||||||||||
Underwriting assets are reviewed in total by management for purposes of decision-making. Other than goodwill and other intangible assets, ACE does not allocate assets to its segments. | ||||||||||||||||||||||||||||
The following table presents net premiums earned for each segment by product: | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Property & | Casualty | Life, | ACE | ||||||||||||||||||||||||
All Other | Accident & | Consolidated | ||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | Health | |||||||||||||||||||||||||||
Insurance – North American P&C | $ | 405 | $ | 981 | $ | 101 | $ | 1,487 | ||||||||||||||||||||
Insurance – North American Agriculture | 103 | — | — | 103 | ||||||||||||||||||||||||
Insurance – Overseas General | 693 | 369 | 550 | 1,612 | ||||||||||||||||||||||||
Global Reinsurance | 154 | 130 | — | 284 | ||||||||||||||||||||||||
Life | — | — | 484 | 484 | ||||||||||||||||||||||||
$ | 1,355 | $ | 1,480 | $ | 1,135 | $ | 3,970 | |||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Insurance – North American P&C | $ | 347 | $ | 902 | $ | 89 | $ | 1,338 | ||||||||||||||||||||
Insurance – North American Agriculture | 52 | — | — | 52 | ||||||||||||||||||||||||
Insurance – Overseas General | 585 | 339 | 535 | 1,459 | ||||||||||||||||||||||||
Global Reinsurance | 135 | 112 | — | 247 | ||||||||||||||||||||||||
Life | — | — | 477 | 477 | ||||||||||||||||||||||||
$ | 1,119 | $ | 1,353 | $ | 1,101 | $ | 3,573 | |||||||||||||||||||||
Earnings_per_share
Earnings per share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings per share | ' | |||||||
Earnings per share | ||||||||
Three Months Ended | ||||||||
31-Mar | ||||||||
(in millions of U.S. dollars, except share and per share data) | 2014 | 2013 | ||||||
Numerator: | ||||||||
Net income | $ | 734 | $ | 953 | ||||
Denominator: | ||||||||
Denominator for basic earnings per share: | ||||||||
Weighted-average shares outstanding | 338,869,562 | 340,778,142 | ||||||
Denominator for diluted earnings per share: | ||||||||
Share-based compensation plans | 3,171,174 | 3,128,226 | ||||||
Weighted-average shares outstanding and assumed conversions | 342,040,736 | 343,906,368 | ||||||
Basic earnings per share | $ | 2.16 | $ | 2.8 | ||||
Diluted earnings per share | $ | 2.14 | $ | 2.77 | ||||
Potential anti-dilutive share conversions | 657,182 | 634,385 | ||||||
Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective periods. |
Information_provided_in_connec
Information provided in connection with outstanding debt of subsidiaries | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | ' | |||||||||||||||||||
Information provided in connection with outstanding debt of subsidiaries | ' | |||||||||||||||||||
Information provided in connection with outstanding debt of subsidiaries | ||||||||||||||||||||
The following tables present condensed consolidating financial information at March 31, 2014 and December 31, 2013, and for the three months ended March 31, 2014 and 2013 for ACE Limited (Parent Guarantor) and ACE INA Holdings, Inc. (Subsidiary Issuer). The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. | ||||||||||||||||||||
During the third quarter of 2013, we determined that the Subsidiary Issuer columns presented in the previously issued condensed consolidating financial information should be presented on the equity method of accounting rather than on a consolidated basis. Accordingly, we have revised the disclosure to correct the Condensed Consolidating Statement of Operations and Comprehensive Income and the Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2013. As a result of this revision to the Subsidiary Issuer condensed consolidating financial information, revenues and expenses and cash flows of the subsidiaries of ACE INA Holdings, Inc. (Subsidiary Issuer) are now presented in the Other ACE Limited Subsidiaries column on a combined basis. In addition, we revised the Consolidating Adjustments and Eliminations column to correctly include all intercompany eliminations. Previously, this column reflected only ACE Limited parent company intercompany eliminations. We also revised the Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2013 to correct the presentation of negative cash associated with our affiliated notional cash pooling programs (Pools). In addition, certain items in the Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2013 have been reclassified to conform to current period presentation. Also, the operating cash flows have been corrected to properly reflect certain intercompany transactions previously recorded in financing cash flows for the three months ended March 31, 2013. | ||||||||||||||||||||
Total shareholders' equity and net income of the Subsidiary Issuer and Parent Guarantor were not impacted as a result of these revisions. The impact of the revisions was not material to the prior period consolidated financial statements taken as a whole. There was no impact on the consolidated amounts previously reported. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet at March 31, 2014 | ||||||||||||||||||||
(in millions of U.S. dollars) | ACE | ACE INA | Other ACE | Consolidating | ACE Limited | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | ||||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Assets | ||||||||||||||||||||
Investments | $ | 32 | $ | 18 | $ | 61,995 | $ | — | $ | 62,045 | ||||||||||
Cash(1) | 25 | 1 | 1,206 | (385 | ) | 847 | ||||||||||||||
Insurance and reinsurance balances receivable | — | — | 5,540 | (779 | ) | 4,761 | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 19,531 | (8,776 | ) | 10,755 | ||||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,210 | (988 | ) | 222 | ||||||||||||||
Value of business acquired | — | — | 517 | — | 517 | |||||||||||||||
Goodwill and other intangible assets | — | — | 5,382 | — | 5,382 | |||||||||||||||
Investments in subsidiaries | 29,075 | 18,368 | — | (47,443 | ) | — | ||||||||||||||
Due from subsidiaries and affiliates, net | 487 | — | — | (487 | ) | — | ||||||||||||||
Other assets | 3 | 256 | 13,956 | (3,565 | ) | 10,650 | ||||||||||||||
Total assets | $ | 29,622 | $ | 18,643 | $ | 109,337 | $ | (62,423 | ) | $ | 95,179 | |||||||||
Liabilities | ||||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 45,173 | $ | (8,307 | ) | $ | 36,866 | |||||||||
Unearned premiums | — | — | 9,584 | (1,793 | ) | 7,791 | ||||||||||||||
Future policy benefits | — | — | 5,620 | (988 | ) | 4,632 | ||||||||||||||
Due to (from) subsidiaries and affiliates, net | — | 367 | 120 | (487 | ) | — | ||||||||||||||
Affiliated notional cash pooling programs(1) | — | 385 | — | (385 | ) | — | ||||||||||||||
Short-term debt | — | 500 | 1,401 | — | 1,901 | |||||||||||||||
Long-term debt | — | 3,795 | 13 | — | 3,808 | |||||||||||||||
Trust preferred securities | — | 309 | — | — | 309 | |||||||||||||||
Other liabilities | 253 | 1,343 | 11,927 | (3,020 | ) | 10,503 | ||||||||||||||
Total liabilities | 253 | 6,699 | 73,838 | (14,980 | ) | 65,810 | ||||||||||||||
Total shareholders’ equity | 29,369 | 11,944 | 35,499 | (47,443 | ) | 29,369 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 29,622 | $ | 18,643 | $ | 109,337 | $ | (62,423 | ) | $ | 95,179 | |||||||||
(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||||||||||||||
Condensed Consolidating Balance Sheet at December 31, 2013 | ||||||||||||||||||||
(in millions of U.S. dollars) | ACE | ACE INA | Other ACE | Consolidating | ACE Limited | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | ||||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Assets | ||||||||||||||||||||
Investments | $ | 32 | $ | 10 | $ | 60,886 | $ | — | $ | 60,928 | ||||||||||
Cash(1) | — | 16 | 748 | (185 | ) | 579 | ||||||||||||||
Insurance and reinsurance balances receivable | — | — | 5,835 | (809 | ) | 5,026 | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 20,057 | (8,830 | ) | 11,227 | ||||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,215 | (997 | ) | 218 | ||||||||||||||
Value of business acquired | — | — | 536 | — | 536 | |||||||||||||||
Goodwill and other intangible assets | — | — | 5,404 | — | 5,404 | |||||||||||||||
Investments in subsidiaries | 28,351 | 18,105 | — | (46,456 | ) | — | ||||||||||||||
Due from subsidiaries and affiliates, net | 844 | — | — | (844 | ) | — | ||||||||||||||
Other assets | 5 | 258 | 13,788 | (3,459 | ) | 10,592 | ||||||||||||||
Total assets | $ | 29,232 | $ | 18,389 | $ | 108,469 | $ | (61,580 | ) | $ | 94,510 | |||||||||
Liabilities | ||||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 45,714 | $ | (8,271 | ) | $ | 37,443 | |||||||||
Unearned premiums | — | — | 9,242 | (1,703 | ) | 7,539 | ||||||||||||||
Future policy benefits | — | — | 5,612 | (997 | ) | 4,615 | ||||||||||||||
Due to (from) subsidiaries and affiliates, net | — | 714 | 130 | (844 | ) | — | ||||||||||||||
Affiliated notional cash pooling programs(1) | 185 | — | — | (185 | ) | — | ||||||||||||||
Short-term debt | — | 500 | 1,401 | — | 1,901 | |||||||||||||||
Long-term debt | — | 3,795 | 12 | — | 3,807 | |||||||||||||||
Trust preferred securities | — | 309 | — | — | 309 | |||||||||||||||
Other liabilities | 222 | 1,318 | 11,655 | (3,124 | ) | 10,071 | ||||||||||||||
Total liabilities | 407 | 6,636 | 73,766 | (15,124 | ) | 65,685 | ||||||||||||||
Total shareholders’ equity | 28,825 | 11,753 | 34,703 | (46,456 | ) | 28,825 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 29,232 | $ | 18,389 | $ | 108,469 | $ | (61,580 | ) | $ | 94,510 | |||||||||
(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | ||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 4,185 | $ | — | $ | 4,185 | ||||||||||
Net premiums earned | — | — | 3,970 | — | 3,970 | |||||||||||||||
Net investment income | — | — | 553 | — | 553 | |||||||||||||||
Equity in earnings of subsidiaries | 702 | 180 | — | (882 | ) | — | ||||||||||||||
Net realized gains (losses) including OTTI | — | (1 | ) | (103 | ) | — | (104 | ) | ||||||||||||
Losses and loss expenses | — | — | 2,161 | — | 2,161 | |||||||||||||||
Policy benefits | — | — | 114 | — | 114 | |||||||||||||||
Policy acquisition costs and administrative expenses | 17 | 6 | 1,240 | — | 1,263 | |||||||||||||||
Interest (income) expense | (10 | ) | 71 | 10 | — | 71 | ||||||||||||||
Other (income) expense | (42 | ) | 14 | 11 | — | (17 | ) | |||||||||||||
Income tax expense (benefit) | 3 | (30 | ) | 120 | — | 93 | ||||||||||||||
Net income | $ | 734 | $ | 118 | $ | 764 | $ | (882 | ) | $ | 734 | |||||||||
Comprehensive income | $ | 1,108 | $ | 266 | $ | 1,138 | $ | (1,404 | ) | $ | 1,108 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Revised) | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | ||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 3,798 | $ | — | $ | 3,798 | ||||||||||
Net premiums earned | — | — | 3,573 | — | 3,573 | |||||||||||||||
Net investment income | — | 1 | 530 | — | 531 | |||||||||||||||
Equity in earnings of subsidiaries | 914 | 188 | — | (1,102 | ) | — | ||||||||||||||
Net realized gains (losses) including OTTI | 12 | — | 194 | — | 206 | |||||||||||||||
Losses and loss expenses | — | — | 1,926 | — | 1,926 | |||||||||||||||
Policy benefits | — | — | 131 | — | 131 | |||||||||||||||
Policy acquisition costs and administrative expenses | 15 | 4 | 1,109 | — | 1,128 | |||||||||||||||
Interest (income) expense | (7 | ) | 62 | 5 | — | 60 | ||||||||||||||
Other (income) expense | (38 | ) | 9 | 19 | — | (10 | ) | |||||||||||||
Income tax expense (benefit) | 3 | (33 | ) | 152 | — | 122 | ||||||||||||||
Net income | $ | 953 | $ | 147 | $ | 955 | $ | (1,102 | ) | $ | 953 | |||||||||
Comprehensive income (loss) | $ | 716 | $ | (1 | ) | $ | 718 | $ | (717 | ) | $ | 716 | ||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (As previously reported) | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments (2) | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries and | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | Eliminations(1) | |||||||||||||||||
Net premiums written | $ | — | $ | 2,082 | $ | 1,716 | $ | — | $ | 3,798 | ||||||||||
Net premiums earned | — | 2,006 | 1,567 | — | 3,573 | |||||||||||||||
Net investment income | — | 248 | 283 | — | 531 | |||||||||||||||
Equity in earnings of subsidiaries | 914 | — | — | (914 | ) | — | ||||||||||||||
Net realized gains (losses) including OTTI | 12 | 10 | 184 | — | 206 | |||||||||||||||
Losses and loss expenses | — | 1,253 | 673 | — | 1,926 | |||||||||||||||
Policy benefits | — | 81 | 50 | — | 131 | |||||||||||||||
Policy acquisition costs and administrative expenses | 15 | 626 | 487 | — | 1,128 | |||||||||||||||
Interest (income) expense | (7 | ) | 67 | — | — | 60 | ||||||||||||||
Other (income) expense | (38 | ) | 34 | (6 | ) | — | (10 | ) | ||||||||||||
Income tax expense | 3 | 56 | 63 | — | 122 | |||||||||||||||
Net income | $ | 953 | $ | 147 | $ | 767 | $ | (914 | ) | $ | 953 | |||||||||
Comprehensive income (loss) | $ | 716 | $ | (1 | ) | $ | 915 | $ | (914 | ) | $ | 716 | ||||||||
-1 | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | |||||||||||||||||||
-2 | Includes ACE Limited parent company eliminations. | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | ||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 57 | $ | (13 | ) | $ | 1,206 | $ | — | $ | 1,250 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (3,522 | ) | — | (3,522 | ) | |||||||||||||
Purchases of fixed maturities held to maturity | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Purchases of equity securities | — | — | (37 | ) | — | (37 | ) | |||||||||||||
Sales of fixed maturities available for | — | — | 2,208 | — | 2,208 | |||||||||||||||
sale | ||||||||||||||||||||
Sales of equity securities | — | — | 27 | — | 27 | |||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 1,550 | — | 1,550 | |||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 212 | — | 212 | |||||||||||||||
Net change in short-term investments | — | (8 | ) | (757 | ) | — | (765 | ) | ||||||||||||
Net derivative instruments settlements | — | (9 | ) | (87 | ) | — | (96 | ) | ||||||||||||
Other | — | (3 | ) | (47 | ) | — | (50 | ) | ||||||||||||
Net cash flows used for investing activities | — | (20 | ) | (483 | ) | — | (503 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Dividends paid on Common Shares | (214 | ) | — | — | — | (214 | ) | |||||||||||||
Common Shares repurchased | — | — | (335 | ) | — | (335 | ) | |||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 40 | — | 40 | |||||||||||||||
Advances (to) from affiliates | 367 | (367 | ) | — | — | — | ||||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | (185 | ) | 385 | — | (200 | ) | — | |||||||||||||
Other | — | — | 37 | — | 37 | |||||||||||||||
Net cash flows (used for) from financing activities | (32 | ) | 18 | (258 | ) | (200 | ) | (472 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Net increase (decrease) in cash | 25 | (15 | ) | 458 | (200 | ) | 268 | |||||||||||||
Cash – beginning of period(1) | — | 16 | 748 | (185 | ) | 579 | ||||||||||||||
Cash – end of period(1) | $ | 25 | $ | 1 | $ | 1,206 | $ | (385 | ) | $ | 847 | |||||||||
(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows (Revised) | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | ||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 25 | $ | (19 | ) | $ | 907 | $ | — | $ | 913 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (5,568 | ) | 103 | (5,465 | ) | |||||||||||||
Purchases of fixed maturities held to maturity | — | — | (142 | ) | — | (142 | ) | |||||||||||||
Purchases of equity securities | — | — | (107 | ) | — | (107 | ) | |||||||||||||
Sales of fixed maturities available for sale | — | — | 2,867 | (103 | ) | 2,764 | ||||||||||||||
Sales of equity securities | — | — | 31 | — | 31 | |||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 2,016 | — | 2,016 | |||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 491 | — | 491 | |||||||||||||||
Net change in short-term investments | — | 4 | (691 | ) | — | (687 | ) | |||||||||||||
Net derivative instruments settlements | — | — | (279 | ) | — | (279 | ) | |||||||||||||
Acquisition of subsidiaries | — | — | (33 | ) | — | (33 | ) | |||||||||||||
Capital contribution | — | (27 | ) | — | 27 | — | ||||||||||||||
Other | — | 2 | (57 | ) | — | (55 | ) | |||||||||||||
Net cash flows used for investing activities | — | (21 | ) | (1,472 | ) | 27 | (1,466 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Dividends paid on Common Shares | (2 | ) | — | — | — | (2 | ) | |||||||||||||
Common Shares repurchased | — | — | (154 | ) | — | (154 | ) | |||||||||||||
Net proceeds from issuance of long-term debt | — | 947 | — | — | 947 | |||||||||||||||
Net proceeds from issuance of short-term debt | — | — | 1 | — | 1 | |||||||||||||||
Proceeds from share-based compensation plans | — | — | 21 | — | 21 | |||||||||||||||
Advances (to) from affiliates | 71 | (71 | ) | — | — | — | ||||||||||||||
Dividends to parent company | — | — | — | — | — | |||||||||||||||
Capital contribution | — | — | 27 | (27 | ) | — | ||||||||||||||
Net payments to affiliated notional cash pooling programs(1) | — | (349 | ) | — | 349 | — | ||||||||||||||
Net cash flows from (used for) financing activities | 69 | 527 | (105 | ) | 322 | 813 | ||||||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (20 | ) | — | (20 | ) | |||||||||||||
Net increase (decrease) in cash | 94 | 487 | (690 | ) | 349 | 240 | ||||||||||||||
Cash – beginning of period(1) | 103 | 2 | 859 | (349 | ) | 615 | ||||||||||||||
Cash – end of period(1) | $ | 197 | $ | 489 | $ | 169 | $ | — | $ | 855 | ||||||||||
(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows (As previously reported) | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments(2) | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries and | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | Eliminations(1) | |||||||||||||||||
Net cash flows from operating activities | $ | 53 | $ | 644 | $ | 216 | $ | — | $ | 913 | ||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchases of fixed maturities available for sale | — | (3,825 | ) | (2,327 | ) | — | (6,152 | ) | ||||||||||||
Purchases of fixed maturities held to maturity | — | (137 | ) | (5 | ) | — | (142 | ) | ||||||||||||
Purchases of equity securities | — | (89 | ) | (18 | ) | — | (107 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | 1,473 | 1,291 | — | 2,764 | |||||||||||||||
Sales of equity securities | — | 25 | 6 | — | 31 | |||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | 879 | 1,137 | — | 2,016 | |||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | 351 | 140 | — | 491 | |||||||||||||||
Net derivative instruments settlements | — | 4 | (283 | ) | — | (279 | ) | |||||||||||||
Advances from (to) affiliates | 43 | — | — | (43 | ) | — | ||||||||||||||
Acquisition of subsidiaries | — | (33 | ) | — | — | (33 | ) | |||||||||||||
Other | — | (86 | ) | 31 | — | (55 | ) | |||||||||||||
Net cash flows from (used for) investing activities | 43 | (1,438 | ) | (28 | ) | (43 | ) | (1,466 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Dividends paid on Common Shares | (2 | ) | — | — | — | (2 | ) | |||||||||||||
Common Shares repurchased | — | — | (154 | ) | — | (154 | ) | |||||||||||||
Net proceeds from issuance of long-term debt | — | 947 | — | — | 947 | |||||||||||||||
Net proceeds from issuance of short-term debt | — | — | 1 | — | 1 | |||||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | (8 | ) | 29 | — | 21 | ||||||||||||||
Advances (to) from affiliates | — | (71 | ) | 28 | 43 | — | ||||||||||||||
Net cash flows from (used for) financing activities | (2 | ) | 868 | (96 | ) | 43 | 813 | |||||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | (29 | ) | 9 | — | (20 | ) | |||||||||||||
Net increase in cash | 94 | 45 | 101 | — | 240 | |||||||||||||||
Cash – beginning of period | 103 | 515 | (3 | ) | — | 615 | ||||||||||||||
Cash – end of period(3) | $ | 197 | $ | 560 | $ | 98 | $ | — | $ | 855 | ||||||||||
-1 | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | |||||||||||||||||||
-2 | Includes ACE Limited parent company eliminations and certain consolidating adjustments. | |||||||||||||||||||
-3 | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
General_Policies
General (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of presentation | ' |
ACE Limited is a holding company incorporated in Zurich, Switzerland. ACE Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. ACE operates through five business segments: Insurance – North American P&C, Insurance – North American Agriculture, Insurance – Overseas General, Global Reinsurance, and Life. Refer to Note 9 for additional information. | |
The interim unaudited consolidated financial statements, which include the accounts of ACE Limited and its subsidiaries (collectively, ACE, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions have been eliminated. | |
The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2013 Form 10-K. |
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Schedule Of Amortized Cost And Fair Value Of Fixed Maturities And Related OTTI Recognized In AOCI | ' | |||||||||||||||||||||||
31-Mar-14 | Amortized | Gross | Gross | Fair | OTTI Recognized | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | in AOCI | ||||||||||||||||||||
(in millions of U.S. dollars) | Appreciation | Depreciation | ||||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||
U.S. Treasury and agency | $ | 2,939 | $ | 68 | $ | (37 | ) | $ | 2,970 | $ | — | |||||||||||||
Foreign | 14,155 | 441 | (65 | ) | 14,531 | (1 | ) | |||||||||||||||||
Corporate securities | 16,873 | 883 | (71 | ) | 17,685 | (6 | ) | |||||||||||||||||
Mortgage-backed securities | 10,916 | 210 | (155 | ) | 10,971 | (27 | ) | |||||||||||||||||
States, municipalities, and political subdivisions | 3,399 | 95 | (40 | ) | 3,454 | — | ||||||||||||||||||
$ | 48,282 | $ | 1,697 | $ | (368 | ) | $ | 49,611 | $ | (34 | ) | |||||||||||||
Held to maturity | ||||||||||||||||||||||||
U.S. Treasury and agency | $ | 777 | $ | 17 | $ | (4 | ) | $ | 790 | $ | — | |||||||||||||
Foreign | 837 | 37 | — | 874 | — | |||||||||||||||||||
Corporate securities | 1,876 | 89 | — | 1,965 | — | |||||||||||||||||||
Mortgage-backed securities | 1,265 | 41 | — | 1,306 | — | |||||||||||||||||||
States, municipalities, and political subdivisions | 1,132 | 23 | (10 | ) | 1,145 | — | ||||||||||||||||||
$ | 5,887 | $ | 207 | $ | (14 | ) | $ | 6,080 | $ | — | ||||||||||||||
31-Dec-13 | Amortized | Gross | Gross | Fair | OTTI Recognized | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | in AOCI | ||||||||||||||||||||
(in millions of U.S. dollars) | Appreciation | Depreciation | ||||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||
U.S. Treasury and agency | $ | 2,946 | $ | 62 | $ | (59 | ) | $ | 2,949 | $ | — | |||||||||||||
Foreign | 14,336 | 377 | (122 | ) | 14,591 | — | ||||||||||||||||||
Corporate securities | 16,825 | 777 | (132 | ) | 17,470 | (6 | ) | |||||||||||||||||
Mortgage-backed securities | 10,937 | 184 | (227 | ) | 10,894 | (34 | ) | |||||||||||||||||
States, municipalities, and political subdivisions | 3,362 | 65 | (77 | ) | 3,350 | — | ||||||||||||||||||
$ | 48,406 | $ | 1,465 | $ | (617 | ) | $ | 49,254 | $ | (40 | ) | |||||||||||||
Held to maturity | ||||||||||||||||||||||||
U.S. Treasury and agency | $ | 820 | $ | 16 | $ | (4 | ) | $ | 832 | $ | — | |||||||||||||
Foreign | 864 | 33 | — | 897 | — | |||||||||||||||||||
Corporate securities | 1,922 | 83 | — | 2,005 | — | |||||||||||||||||||
Mortgage-backed securities | 1,341 | 39 | (1 | ) | 1,379 | — | ||||||||||||||||||
States, municipalities, and political subdivisions | 1,151 | 16 | (17 | ) | 1,150 | — | ||||||||||||||||||
$ | 6,098 | $ | 187 | $ | (22 | ) | $ | 6,263 | $ | — | ||||||||||||||
Schedule Of Fixed Maturities By Contractual Maturity | ' | |||||||||||||||||||||||
31-Mar | 31-Dec | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||
Due in 1 year or less | $ | 2,504 | $ | 2,528 | $ | 2,387 | $ | 2,411 | ||||||||||||||||
Due after 1 year through 5 years | 14,199 | 14,713 | 14,139 | 14,602 | ||||||||||||||||||||
Due after 5 years through 10 years | 15,947 | 16,460 | 16,200 | 16,535 | ||||||||||||||||||||
Due after 10 years | 4,716 | 4,939 | 4,743 | 4,812 | ||||||||||||||||||||
37,366 | 38,640 | 37,469 | 38,360 | |||||||||||||||||||||
Mortgage-backed securities | 10,916 | 10,971 | 10,937 | 10,894 | ||||||||||||||||||||
$ | 48,282 | $ | 49,611 | $ | 48,406 | $ | 49,254 | |||||||||||||||||
Held to maturity | ||||||||||||||||||||||||
Due in 1 year or less | $ | 539 | $ | 547 | $ | 401 | $ | 405 | ||||||||||||||||
Due after 1 year through 5 years | 2,419 | 2,503 | 2,284 | 2,363 | ||||||||||||||||||||
Due after 5 years through 10 years | 1,304 | 1,345 | 1,686 | 1,723 | ||||||||||||||||||||
Due after 10 years | 360 | 379 | 386 | 393 | ||||||||||||||||||||
4,622 | 4,774 | 4,757 | 4,884 | |||||||||||||||||||||
Mortgage-backed securities | 1,265 | 1,306 | 1,341 | 1,379 | ||||||||||||||||||||
$ | 5,887 | $ | 6,080 | $ | 6,098 | $ | 6,263 | |||||||||||||||||
Schedule Of Cost And Fair Value Of Equity Securities | ' | |||||||||||||||||||||||
31-Mar | 31-Dec | |||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||
Cost | $ | 845 | $ | 841 | ||||||||||||||||||||
Gross unrealized appreciation | 64 | 63 | ||||||||||||||||||||||
Gross unrealized depreciation | (58 | ) | (67 | ) | ||||||||||||||||||||
Fair value | $ | 851 | $ | 837 | ||||||||||||||||||||
Schedule Of Net Realized Gains (Losses) And The Losses Included In Net Realized Gains (Losses) And OCI | ' | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
OTTI on fixed maturities, gross | $ | (6 | ) | $ | (1 | ) | ||||||||||||||||||
OTTI on fixed maturities recognized in OCI (pre-tax) | 1 | — | ||||||||||||||||||||||
OTTI on fixed maturities, net | (5 | ) | (1 | ) | ||||||||||||||||||||
Gross realized gains excluding OTTI | 36 | 62 | ||||||||||||||||||||||
Gross realized losses excluding OTTI | (20 | ) | (25 | ) | ||||||||||||||||||||
Total fixed maturities | 11 | 36 | ||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
OTTI on equity securities | (6 | ) | (1 | ) | ||||||||||||||||||||
Gross realized gains excluding OTTI | 2 | 2 | ||||||||||||||||||||||
Gross realized losses excluding OTTI | (1 | ) | (2 | ) | ||||||||||||||||||||
Total equity securities | (5 | ) | (1 | ) | ||||||||||||||||||||
OTTI on other investments | — | (1 | ) | |||||||||||||||||||||
Foreign exchange gains (losses) | (9 | ) | 76 | |||||||||||||||||||||
Investment and embedded derivative instruments | (25 | ) | 18 | |||||||||||||||||||||
Fair value adjustments on insurance derivative | (48 | ) | 328 | |||||||||||||||||||||
S&P put options and futures | (19 | ) | (250 | ) | ||||||||||||||||||||
Other derivative instruments | (2 | ) | — | |||||||||||||||||||||
Other | (7 | ) | — | |||||||||||||||||||||
Net realized gains (losses) | $ | (104 | ) | $ | 206 | |||||||||||||||||||
Schedule Of Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which A Portion Of OTTI Was Recognized In OCI | ' | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||
Balance of credit losses related to securities still held – beginning of period | $ | 37 | $ | 43 | ||||||||||||||||||||
Additions where no OTTI was previously recorded | 2 | — | ||||||||||||||||||||||
Additions where an OTTI was previously recorded | 2 | 1 | ||||||||||||||||||||||
Reductions for securities sold during the period | (6 | ) | (9 | ) | ||||||||||||||||||||
Balance of credit losses related to securities still held – end of period | $ | 35 | $ | 35 | ||||||||||||||||||||
Schedule Of Aggregate Fair Value And Gross Unrealized Loss By Length Of Time The Security Has Continuously Been In An Unrealized Loss Position | ' | |||||||||||||||||||||||
0 – 12 Months | Over 12 Months | Total | ||||||||||||||||||||||
31-Mar-14 | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(in millions of U.S. dollars) | Loss | Loss | Loss | |||||||||||||||||||||
U.S. Treasury and agency | $ | 1,609 | $ | (37 | ) | $ | 33 | $ | (4 | ) | $ | 1,642 | $ | (41 | ) | |||||||||
Foreign | 2,988 | (56 | ) | 259 | (9 | ) | 3,247 | (65 | ) | |||||||||||||||
Corporate securities | 2,940 | (58 | ) | 211 | (13 | ) | 3,151 | (71 | ) | |||||||||||||||
Mortgage-backed securities | 4,367 | (130 | ) | 398 | (25 | ) | 4,765 | (155 | ) | |||||||||||||||
States, municipalities, and political subdivisions | 1,575 | (39 | ) | 189 | (11 | ) | 1,764 | (50 | ) | |||||||||||||||
Total fixed maturities | 13,479 | (320 | ) | 1,090 | (62 | ) | 14,569 | (382 | ) | |||||||||||||||
Equity securities | 496 | (58 | ) | — | — | 496 | (58 | ) | ||||||||||||||||
Other investments | 65 | (5 | ) | — | — | 65 | (5 | ) | ||||||||||||||||
Total | $ | 14,040 | $ | (383 | ) | $ | 1,090 | $ | (62 | ) | $ | 15,130 | $ | (445 | ) | |||||||||
0 – 12 Months | Over 12 Months | Total | ||||||||||||||||||||||
31-Dec-13 | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(in millions of U.S. dollars) | Loss | Loss | Loss | |||||||||||||||||||||
U.S. Treasury and agency | $ | 1,794 | $ | (57 | ) | $ | 31 | $ | (6 | ) | $ | 1,825 | $ | (63 | ) | |||||||||
Foreign | 4,621 | (114 | ) | 201 | (8 | ) | 4,822 | (122 | ) | |||||||||||||||
Corporate securities | 3,836 | (118 | ) | 194 | (14 | ) | 4,030 | (132 | ) | |||||||||||||||
Mortgage-backed securities | 5,248 | (197 | ) | 384 | (31 | ) | 5,632 | (228 | ) | |||||||||||||||
States, municipalities, and political subdivisions | 2,164 | (90 | ) | 84 | (4 | ) | 2,248 | (94 | ) | |||||||||||||||
Total fixed maturities | 17,663 | (576 | ) | 894 | (63 | ) | 18,557 | (639 | ) | |||||||||||||||
Equity securities | 498 | (67 | ) | — | — | 498 | (67 | ) | ||||||||||||||||
Other investments | 67 | (9 | ) | — | — | 67 | (9 | ) | ||||||||||||||||
Total | $ | 18,228 | $ | (652 | ) | $ | 894 | $ | (63 | ) | $ | 19,122 | $ | (715 | ) | |||||||||
Schedule Of Components Of Restricted Assets | ' | |||||||||||||||||||||||
31-Mar | 31-Dec | |||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||
Trust funds | $ | 11,385 | $ | 11,315 | ||||||||||||||||||||
Deposits with non-U.S. regulatory authorities | 1,962 | 1,970 | ||||||||||||||||||||||
Assets pledged under repurchase agreements | 1,452 | 1,435 | ||||||||||||||||||||||
Deposits with U.S. regulatory authorities | 1,334 | 1,334 | ||||||||||||||||||||||
Other pledged assets | 420 | 391 | ||||||||||||||||||||||
$ | 16,553 | $ | 16,445 | |||||||||||||||||||||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Financial Instruments Measured At Fair Value On A Recurring Basis | ' | |||||||||||||||||||||||||||
31-Mar-14 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Fixed maturities available for sale | ||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 1,709 | $ | 1,261 | $ | — | $ | 2,970 | ||||||||||||||||||||
Foreign | 233 | 14,272 | 26 | 14,531 | ||||||||||||||||||||||||
Corporate securities | — | 17,534 | 151 | 17,685 | ||||||||||||||||||||||||
Mortgage-backed securities | — | 10,963 | 8 | 10,971 | ||||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 3,454 | — | 3,454 | ||||||||||||||||||||||||
1,942 | 47,484 | 185 | 49,611 | |||||||||||||||||||||||||
Equity securities | 380 | 469 | 2 | 851 | ||||||||||||||||||||||||
Short-term investments | 1,590 | 936 | — | 2,526 | ||||||||||||||||||||||||
Other investments | 314 | 245 | 2,611 | 3,170 | ||||||||||||||||||||||||
Securities lending collateral | — | 1,550 | — | 1,550 | ||||||||||||||||||||||||
Investment derivative instruments | 8 | — | — | 8 | ||||||||||||||||||||||||
Other derivative instruments | 7 | — | — | 7 | ||||||||||||||||||||||||
Separate account assets | 1,193 | 83 | — | 1,276 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | 5,434 | $ | 50,767 | $ | 2,798 | $ | 58,999 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Investment derivative instruments | $ | 6 | $ | — | $ | — | $ | 6 | ||||||||||||||||||||
Other derivative instruments | 12 | 2 | — | 14 | ||||||||||||||||||||||||
GLB(1) | — | — | 243 | 243 | ||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 18 | $ | 2 | $ | 243 | $ | 263 | ||||||||||||||||||||
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||||||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Fixed maturities available for sale | ||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 1,626 | $ | 1,323 | $ | — | $ | 2,949 | ||||||||||||||||||||
Foreign | 223 | 14,324 | 44 | 14,591 | ||||||||||||||||||||||||
Corporate securities | — | 17,304 | 166 | 17,470 | ||||||||||||||||||||||||
Mortgage-backed securities | — | 10,886 | 8 | 10,894 | ||||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 3,350 | — | 3,350 | ||||||||||||||||||||||||
1,849 | 47,187 | 218 | 49,254 | |||||||||||||||||||||||||
Equity securities | 373 | 460 | 4 | 837 | ||||||||||||||||||||||||
Short-term investments | 953 | 803 | 7 | 1,763 | ||||||||||||||||||||||||
Other investments | 305 | 231 | 2,440 | 2,976 | ||||||||||||||||||||||||
Securities lending collateral | — | 1,632 | — | 1,632 | ||||||||||||||||||||||||
Investment derivative instruments | 19 | — | — | 19 | ||||||||||||||||||||||||
Other derivative instruments | — | 6 | — | 6 | ||||||||||||||||||||||||
Separate account assets | 1,145 | 81 | — | 1,226 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | 4,644 | $ | 50,400 | $ | 2,669 | $ | 57,713 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Investment derivative instruments | $ | 6 | $ | — | $ | — | $ | 6 | ||||||||||||||||||||
Other derivative instruments | 60 | 2 | — | 62 | ||||||||||||||||||||||||
GLB(1) | — | — | 193 | 193 | ||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 66 | $ | 2 | $ | 193 | $ | 261 | ||||||||||||||||||||
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||||||||||||||||||||||||||
Fair Value And Maximum Future Funding Commitments Related To Investments | ' | |||||||||||||||||||||||||||
31-Mar | 31-Dec | |||||||||||||||||||||||||||
Expected | 2014 | 2013 | ||||||||||||||||||||||||||
Liquidation | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Period of Underlying Assets | Fair | Maximum | Fair | Maximum | |||||||||||||||||||||||
Value | Future Funding | Value | Future Funding | |||||||||||||||||||||||||
Commitments | Commitments | |||||||||||||||||||||||||||
Financial | 5 to 9 Years | $ | 271 | $ | 122 | $ | 256 | $ | 129 | |||||||||||||||||||
Real estate | 3 to 9 Years | 319 | 63 | 322 | 92 | |||||||||||||||||||||||
Distressed | 6 to 9 Years | 243 | 169 | 180 | 230 | |||||||||||||||||||||||
Mezzanine | 6 to 9 Years | 290 | 235 | 276 | 252 | |||||||||||||||||||||||
Traditional | 3 to 8 Years | 882 | 414 | 813 | 456 | |||||||||||||||||||||||
Vintage | 1 to 3 Years | 12 | — | 13 | — | |||||||||||||||||||||||
Investment funds | Not Applicable | 440 | — | 428 | — | |||||||||||||||||||||||
$ | 2,457 | $ | 1,003 | $ | 2,288 | $ | 1,159 | |||||||||||||||||||||
Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations | ' | |||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Fair Value | Valuation | Significant | Ranges | ||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | Technique | Unobservable Inputs | |||||||||||||||||||||||||
GLB(1) | $ | 243 | $ | 193 | Actuarial model | Lapse rate | 1% – 30% | |||||||||||||||||||||
Annuitization rate | 0% – 55% | |||||||||||||||||||||||||||
(1) | Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits. | |||||||||||||||||||||||||||
Financial Instruments Measured At Fair Value Using Significant Unobservable Inputs | ' | |||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||
Three Months Ended | Available-for-Sale Debt Securities | Equity | Short-term investments | Other | GLB(1) | |||||||||||||||||||||||
31-Mar-14 | Foreign | Corporate | MBS | securities | investments | |||||||||||||||||||||||
(in millions of U.S. dollars) | securities | |||||||||||||||||||||||||||
Balance–Beginning of Period | $ | 44 | $ | 166 | $ | 8 | $ | 4 | $ | 7 | $ | 2,440 | $ | 193 | ||||||||||||||
Transfers into Level 3 | — | 4 | — | — | — | — | — | |||||||||||||||||||||
Transfers out of Level 3 | (18 | ) | (22 | ) | — | (2 | ) | (7 | ) | — | — | |||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | (1 | ) | — | — | 1 | — | 41 | — | ||||||||||||||||||||
Net Realized Gains/Losses | — | — | — | — | — | — | 50 | |||||||||||||||||||||
Purchases | 2 | 15 | — | 1 | — | 200 | — | |||||||||||||||||||||
Sales | (1 | ) | (6 | ) | — | (2 | ) | — | (1 | ) | — | |||||||||||||||||
Settlements | — | (6 | ) | — | — | — | (69 | ) | — | |||||||||||||||||||
Balance–End of Period | $ | 26 | $ | 151 | $ | 8 | $ | 2 | $ | — | $ | 2,611 | $ | 243 | ||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 50 | ||||||||||||||
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity | Other | GLB(1) | |||||||||||||||||||||||||
Three Months Ended | Foreign | Corporate | MBS | securities | investments | |||||||||||||||||||||||
31-Mar-13 | securities | |||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||
Balance–Beginning of Period | $ | 60 | $ | 102 | $ | 13 | $ | 3 | $ | 2,252 | $ | 1,119 | ||||||||||||||||
Transfers into Level 3 | 3 | 12 | — | — | — | — | ||||||||||||||||||||||
Transfers out of Level 3 | (27 | ) | (2 | ) | — | (1 | ) | — | — | |||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI | — | 1 | — | — | 22 | — | ||||||||||||||||||||||
Net Realized Gains/Losses | 1 | — | — | — | (1 | ) | (366 | ) | ||||||||||||||||||||
Purchases | — | 10 | — | — | 136 | — | ||||||||||||||||||||||
Sales | (1 | ) | — | — | — | (9 | ) | — | ||||||||||||||||||||
Settlements | (1 | ) | (5 | ) | — | — | (72 | ) | — | |||||||||||||||||||
Balance–End of Period | $ | 35 | $ | 118 | $ | 13 | $ | 2 | $ | 2,328 | $ | 753 | ||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (366 | ) | ||||||||||||||
(1) | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $1.0 billion at March 31, 2013, and $1.4 billion at December 31, 2012, which includes a fair value derivative adjustment of $753 million and $1.1 billion, respectively. | |||||||||||||||||||||||||||
Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value | ' | |||||||||||||||||||||||||||
31-Mar-14 | Fair Value | Carrying Value | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Fixed maturities held to maturity | ||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 595 | $ | 195 | $ | — | $ | 790 | $ | 777 | ||||||||||||||||||
Foreign | — | 874 | — | 874 | 837 | |||||||||||||||||||||||
Corporate securities | — | 1,949 | 16 | 1,965 | 1,876 | |||||||||||||||||||||||
Mortgage-backed securities | — | 1,306 | — | 1,306 | 1,265 | |||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 1,145 | — | 1,145 | 1,132 | |||||||||||||||||||||||
595 | 5,469 | 16 | 6,080 | 5,887 | ||||||||||||||||||||||||
Partially-owned insurance companies | — | — | 466 | 466 | 466 | |||||||||||||||||||||||
Total assets | $ | 595 | $ | 5,469 | $ | 482 | $ | 6,546 | $ | 6,353 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Short-term debt | $ | — | $ | 1,907 | $ | — | $ | 1,907 | $ | 1,901 | ||||||||||||||||||
Long-term debt | — | 4,139 | — | 4,139 | 3,808 | |||||||||||||||||||||||
Trust preferred securities | — | 452 | — | 452 | 309 | |||||||||||||||||||||||
Total liabilities | $ | — | $ | 6,498 | $ | — | $ | 6,498 | $ | 6,018 | ||||||||||||||||||
31-Dec-13 | Fair Value | Carrying Value | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Fixed maturities held to maturity | ||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 596 | $ | 236 | $ | — | $ | 832 | $ | 820 | ||||||||||||||||||
Foreign | — | 897 | — | 897 | 864 | |||||||||||||||||||||||
Corporate securities | — | 1,990 | 15 | 2,005 | 1,922 | |||||||||||||||||||||||
Mortgage-backed securities | — | 1,379 | — | 1,379 | 1,341 | |||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 1,150 | — | 1,150 | 1,151 | |||||||||||||||||||||||
596 | 5,652 | 15 | 6,263 | 6,098 | ||||||||||||||||||||||||
Partially-owned insurance companies | — | — | 470 | 470 | 470 | |||||||||||||||||||||||
Total assets | $ | 596 | $ | 5,652 | $ | 485 | $ | 6,733 | $ | 6,568 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Short-term debt | $ | — | $ | 1,913 | $ | — | $ | 1,913 | $ | 1,901 | ||||||||||||||||||
Long-term debt | — | 4,088 | — | 4,088 | 3,807 | |||||||||||||||||||||||
Trust preferred securities | — | 438 | — | 438 | 309 | |||||||||||||||||||||||
Total liabilities | $ | — | $ | 6,439 | $ | — | $ | 6,439 | $ | 6,017 | ||||||||||||||||||
Assumed_life_reinsurance_progr1
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Reinsurance Disclosures [Abstract] | ' | ||||||||||
Schedule Of Guaranteed Minimum Death Benefits And Guaranteed Minimum Income Benefits Income And Expense | ' | ||||||||||
Three Months Ended | |||||||||||
31-Mar | |||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | |||||||||
GMDB | |||||||||||
Net premiums earned | $ | 19 | $ | 20 | |||||||
Policy benefits and other reserve adjustments | $ | 15 | $ | 19 | |||||||
GLB | |||||||||||
Net premiums earned | $ | 36 | $ | 39 | |||||||
Policy benefits and other reserve adjustments | 9 | 9 | |||||||||
Net realized gains (losses) | (50 | ) | 369 | ||||||||
Gain (loss) recognized in income | $ | (23 | ) | $ | 399 | ||||||
Net cash received | $ | 33 | $ | 32 | |||||||
Net (increase) decrease in liability | $ | (56 | ) | $ | 367 | ||||||
Commitments_contingencies_and_1
Commitments, contingencies, and guarantees (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Balance Sheet Locations, Fair Values In An Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments | ' | |||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||
Consolidated | Fair Value | Notional | Fair Value | Notional | ||||||||||||||||||||||
Balance Sheet | Value/ | Value/ | ||||||||||||||||||||||||
Location(1) | Payment | Payment | ||||||||||||||||||||||||
(in millions of U.S. dollars) | Derivative Asset | Derivative (Liability) | Provision | Derivative Asset | Derivative (Liability) | Provision | ||||||||||||||||||||
Investment and embedded derivative instruments | ||||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 2 | $ | (4 | ) | $ | 1,469 | $ | 3 | $ | (4 | ) | $ | 1,202 | |||||||||||
Cross-currency swaps | OA / (AP) | — | — | 50 | — | — | 50 | |||||||||||||||||||
Futures contracts on money market instruments | OA / (AP) | 4 | — | 3,910 | 3 | — | 3,910 | |||||||||||||||||||
Futures contracts on notes and bonds | OA / (AP) | 2 | (2 | ) | 903 | 13 | (2 | ) | 871 | |||||||||||||||||
Convertible bonds | FM AFS | 319 | — | 272 | 302 | — | 254 | |||||||||||||||||||
$ | 327 | $ | (6 | ) | $ | 6,604 | $ | 321 | $ | (6 | ) | $ | 6,287 | |||||||||||||
Other derivative instruments | ||||||||||||||||||||||||||
Futures contracts on equities(2) | OA / (AP) | $ | — | $ | (12 | ) | $ | 1,453 | $ | — | $ | (60 | ) | $ | 1,692 | |||||||||||
Options on equity market indices(2) | OA / (AP) | — | — | 250 | 6 | — | 250 | |||||||||||||||||||
Other | OA / (AP) | 7 | (2 | ) | 64 | — | (2 | ) | 8 | |||||||||||||||||
$ | 7 | $ | (14 | ) | $ | 1,767 | $ | 6 | $ | (62 | ) | $ | 1,950 | |||||||||||||
GLB(3) | (AP) / (FPB) | $ | — | $ | (483 | ) | $ | 321 | $ | — | $ | (427 | ) | $ | 277 | |||||||||||
(1) | Other assets (OA), Fixed maturities available for sale (FM AFS) | |||||||||||||||||||||||||
(2) | Related to GMDB and GLB blocks of business. | |||||||||||||||||||||||||
(3) | Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts. | |||||||||||||||||||||||||
Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations | ' | |||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | 2014 | 2013 | ||||||||||||||||||||||||
Investment and embedded derivative instruments | ||||||||||||||||||||||||||
Foreign currency forward contracts | $ | (3 | ) | $ | 5 | |||||||||||||||||||||
All other futures contracts and options | (22 | ) | 7 | |||||||||||||||||||||||
Convertible bonds | — | 6 | ||||||||||||||||||||||||
Total investment and embedded derivative instruments | $ | (25 | ) | $ | 18 | |||||||||||||||||||||
GLB and other derivative instruments | ||||||||||||||||||||||||||
GLB(1) | $ | (48 | ) | $ | 328 | |||||||||||||||||||||
Futures contracts on equities(2) | (17 | ) | (237 | ) | ||||||||||||||||||||||
Options on equity market indices(2) | (2 | ) | (13 | ) | ||||||||||||||||||||||
Other | (2 | ) | — | |||||||||||||||||||||||
Total GLB and other derivative instruments | $ | (69 | ) | $ | 78 | |||||||||||||||||||||
$ | (94 | ) | $ | 96 | ||||||||||||||||||||||
(1) | Excludes foreign exchange gains (losses) related to GLB. | |||||||||||||||||||||||||
(2) | Related to GMDB and GLB blocks of business. |
Segment_information_Tables
Segment information (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Operations By Segment | ' | |||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – | Global | Life | Corporate | ACE | |||||||||||||||||||||
Overseas | Reinsurance | Consolidated | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | General | |||||||||||||||||||||||||||
Net premiums written | $ | 1,418 | $ | 194 | $ | 1,771 | $ | 308 | $ | 494 | $ | — | $ | 4,185 | ||||||||||||||
Net premiums earned | 1,487 | 103 | 1,612 | 284 | 484 | — | 3,970 | |||||||||||||||||||||
Losses and loss expenses | 940 | 126 | 817 | 126 | 151 | 1 | 2,161 | |||||||||||||||||||||
Policy benefits | — | — | — | — | 114 | — | 114 | |||||||||||||||||||||
Policy acquisition costs | 159 | 5 | 386 | 67 | 111 | — | 728 | |||||||||||||||||||||
Administrative expenses | 161 | 1 | 250 | 14 | 68 | 41 | 535 | |||||||||||||||||||||
Underwriting income (loss) | 227 | (29 | ) | 159 | 77 | 40 | (42 | ) | 432 | |||||||||||||||||||
Net investment income | 270 | 7 | 132 | 77 | 64 | 3 | 553 | |||||||||||||||||||||
Net realized gains (losses) including OTTI | (9 | ) | (2 | ) | (10 | ) | (8 | ) | (76 | ) | 1 | (104 | ) | |||||||||||||||
Interest expense | 3 | — | 1 | 1 | 3 | 63 | 71 | |||||||||||||||||||||
Other (income) expense: | ||||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | 6 | — | 6 | |||||||||||||||||||||
Other | (20 | ) | 8 | (6 | ) | (19 | ) | 7 | 7 | (23 | ) | |||||||||||||||||
Income tax expense (benefit) | 83 | (7 | ) | 37 | 10 | 10 | (40 | ) | 93 | |||||||||||||||||||
Net income (loss) | $ | 422 | $ | (25 | ) | $ | 249 | $ | 154 | $ | 2 | $ | (68 | ) | $ | 734 | ||||||||||||
For the Three Months Ended March 31, 2013 | Insurance – North American P&C | Insurance – North American Agriculture | Insurance – | Global | Life | Corporate | ACE | |||||||||||||||||||||
Overseas | Reinsurance | Consolidated | ||||||||||||||||||||||||||
(in millions of U.S. dollars) | General | |||||||||||||||||||||||||||
Net premiums written | $ | 1,284 | $ | 113 | $ | 1,620 | $ | 279 | $ | 502 | $ | — | $ | 3,798 | ||||||||||||||
Net premiums earned | 1,338 | 52 | 1,459 | 247 | 477 | — | 3,573 | |||||||||||||||||||||
Losses and loss expenses | 878 | 32 | 747 | 106 | 157 | 6 | 1,926 | |||||||||||||||||||||
Policy benefits | — | — | — | — | 131 | — | 131 | |||||||||||||||||||||
Policy acquisition costs | 143 | 4 | 339 | 48 | 80 | — | 614 | |||||||||||||||||||||
Administrative expenses | 125 | 5 | 236 | 12 | 85 | 51 | 514 | |||||||||||||||||||||
Underwriting income (loss) | 192 | 11 | 137 | 81 | 24 | (57 | ) | 388 | ||||||||||||||||||||
Net investment income | 251 | 6 | 132 | 72 | 63 | 7 | 531 | |||||||||||||||||||||
Net realized gains (losses) including OTTI | 26 | — | 34 | 20 | 127 | (1 | ) | 206 | ||||||||||||||||||||
Interest (income) expense | (2 | ) | — | 1 | 1 | 4 | 56 | 60 | ||||||||||||||||||||
Other (income) expense: | ||||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||||
Other | (15 | ) | 8 | (1 | ) | (8 | ) | — | 10 | (6 | ) | |||||||||||||||||
Income tax expense (benefit) | 94 | 2 | 46 | 8 | 13 | (41 | ) | 122 | ||||||||||||||||||||
Net income (loss) | $ | 392 | $ | 7 | $ | 257 | $ | 172 | $ | 201 | $ | (76 | ) | $ | 953 | |||||||||||||
Net Premiums Earned For Segment By Product | ' | |||||||||||||||||||||||||||
(in millions of U.S. dollars) | Property & | Casualty | Life, | ACE | ||||||||||||||||||||||||
All Other | Accident & | Consolidated | ||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | Health | |||||||||||||||||||||||||||
Insurance – North American P&C | $ | 405 | $ | 981 | $ | 101 | $ | 1,487 | ||||||||||||||||||||
Insurance – North American Agriculture | 103 | — | — | 103 | ||||||||||||||||||||||||
Insurance – Overseas General | 693 | 369 | 550 | 1,612 | ||||||||||||||||||||||||
Global Reinsurance | 154 | 130 | — | 284 | ||||||||||||||||||||||||
Life | — | — | 484 | 484 | ||||||||||||||||||||||||
$ | 1,355 | $ | 1,480 | $ | 1,135 | $ | 3,970 | |||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Insurance – North American P&C | $ | 347 | $ | 902 | $ | 89 | $ | 1,338 | ||||||||||||||||||||
Insurance – North American Agriculture | 52 | — | — | 52 | ||||||||||||||||||||||||
Insurance – Overseas General | 585 | 339 | 535 | 1,459 | ||||||||||||||||||||||||
Global Reinsurance | 135 | 112 | — | 247 | ||||||||||||||||||||||||
Life | — | — | 477 | 477 | ||||||||||||||||||||||||
$ | 1,119 | $ | 1,353 | $ | 1,101 | $ | 3,573 | |||||||||||||||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule Of Earnings Per Share, Basic And Diluted | ' | |||||||
Three Months Ended | ||||||||
31-Mar | ||||||||
(in millions of U.S. dollars, except share and per share data) | 2014 | 2013 | ||||||
Numerator: | ||||||||
Net income | $ | 734 | $ | 953 | ||||
Denominator: | ||||||||
Denominator for basic earnings per share: | ||||||||
Weighted-average shares outstanding | 338,869,562 | 340,778,142 | ||||||
Denominator for diluted earnings per share: | ||||||||
Share-based compensation plans | 3,171,174 | 3,128,226 | ||||||
Weighted-average shares outstanding and assumed conversions | 342,040,736 | 343,906,368 | ||||||
Basic earnings per share | $ | 2.16 | $ | 2.8 | ||||
Diluted earnings per share | $ | 2.14 | $ | 2.77 | ||||
Potential anti-dilutive share conversions | 657,182 | 634,385 | ||||||
Information_provided_in_connec1
Information provided in connection with outstanding debt of subsidiaries (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheet at March 31, 2014 | ||||||||||||||||||||
(in millions of U.S. dollars) | ACE | ACE INA | Other ACE | Consolidating | ACE Limited | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | ||||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Assets | ||||||||||||||||||||
Investments | $ | 32 | $ | 18 | $ | 61,995 | $ | — | $ | 62,045 | ||||||||||
Cash(1) | 25 | 1 | 1,206 | (385 | ) | 847 | ||||||||||||||
Insurance and reinsurance balances receivable | — | — | 5,540 | (779 | ) | 4,761 | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 19,531 | (8,776 | ) | 10,755 | ||||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,210 | (988 | ) | 222 | ||||||||||||||
Value of business acquired | — | — | 517 | — | 517 | |||||||||||||||
Goodwill and other intangible assets | — | — | 5,382 | — | 5,382 | |||||||||||||||
Investments in subsidiaries | 29,075 | 18,368 | — | (47,443 | ) | — | ||||||||||||||
Due from subsidiaries and affiliates, net | 487 | — | — | (487 | ) | — | ||||||||||||||
Other assets | 3 | 256 | 13,956 | (3,565 | ) | 10,650 | ||||||||||||||
Total assets | $ | 29,622 | $ | 18,643 | $ | 109,337 | $ | (62,423 | ) | $ | 95,179 | |||||||||
Liabilities | ||||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 45,173 | $ | (8,307 | ) | $ | 36,866 | |||||||||
Unearned premiums | — | — | 9,584 | (1,793 | ) | 7,791 | ||||||||||||||
Future policy benefits | — | — | 5,620 | (988 | ) | 4,632 | ||||||||||||||
Due to (from) subsidiaries and affiliates, net | — | 367 | 120 | (487 | ) | — | ||||||||||||||
Affiliated notional cash pooling programs(1) | — | 385 | — | (385 | ) | — | ||||||||||||||
Short-term debt | — | 500 | 1,401 | — | 1,901 | |||||||||||||||
Long-term debt | — | 3,795 | 13 | — | 3,808 | |||||||||||||||
Trust preferred securities | — | 309 | — | — | 309 | |||||||||||||||
Other liabilities | 253 | 1,343 | 11,927 | (3,020 | ) | 10,503 | ||||||||||||||
Total liabilities | 253 | 6,699 | 73,838 | (14,980 | ) | 65,810 | ||||||||||||||
Total shareholders’ equity | 29,369 | 11,944 | 35,499 | (47,443 | ) | 29,369 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 29,622 | $ | 18,643 | $ | 109,337 | $ | (62,423 | ) | $ | 95,179 | |||||||||
(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||||||||||||||
Condensed Consolidating Balance Sheet at December 31, 2013 | ||||||||||||||||||||
(in millions of U.S. dollars) | ACE | ACE INA | Other ACE | Consolidating | ACE Limited | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | ||||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Assets | ||||||||||||||||||||
Investments | $ | 32 | $ | 10 | $ | 60,886 | $ | — | $ | 60,928 | ||||||||||
Cash(1) | — | 16 | 748 | (185 | ) | 579 | ||||||||||||||
Insurance and reinsurance balances receivable | — | — | 5,835 | (809 | ) | 5,026 | ||||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 20,057 | (8,830 | ) | 11,227 | ||||||||||||||
Reinsurance recoverable on policy benefits | — | — | 1,215 | (997 | ) | 218 | ||||||||||||||
Value of business acquired | — | — | 536 | — | 536 | |||||||||||||||
Goodwill and other intangible assets | — | — | 5,404 | — | 5,404 | |||||||||||||||
Investments in subsidiaries | 28,351 | 18,105 | — | (46,456 | ) | — | ||||||||||||||
Due from subsidiaries and affiliates, net | 844 | — | — | (844 | ) | — | ||||||||||||||
Other assets | 5 | 258 | 13,788 | (3,459 | ) | 10,592 | ||||||||||||||
Total assets | $ | 29,232 | $ | 18,389 | $ | 108,469 | $ | (61,580 | ) | $ | 94,510 | |||||||||
Liabilities | ||||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 45,714 | $ | (8,271 | ) | $ | 37,443 | |||||||||
Unearned premiums | — | — | 9,242 | (1,703 | ) | 7,539 | ||||||||||||||
Future policy benefits | — | — | 5,612 | (997 | ) | 4,615 | ||||||||||||||
Due to (from) subsidiaries and affiliates, net | — | 714 | 130 | (844 | ) | — | ||||||||||||||
Affiliated notional cash pooling programs(1) | 185 | — | — | (185 | ) | — | ||||||||||||||
Short-term debt | — | 500 | 1,401 | — | 1,901 | |||||||||||||||
Long-term debt | — | 3,795 | 12 | — | 3,807 | |||||||||||||||
Trust preferred securities | — | 309 | — | — | 309 | |||||||||||||||
Other liabilities | 222 | 1,318 | 11,655 | (3,124 | ) | 10,071 | ||||||||||||||
Total liabilities | 407 | 6,636 | 73,766 | (15,124 | ) | 65,685 | ||||||||||||||
Total shareholders’ equity | 28,825 | 11,753 | 34,703 | (46,456 | ) | 28,825 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 29,232 | $ | 18,389 | $ | 108,469 | $ | (61,580 | ) | $ | 94,510 | |||||||||
(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||||||||||||||
Condensed Consolidating Statement Of Operations and Comprehensive Income | ' | |||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | ||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 4,185 | $ | — | $ | 4,185 | ||||||||||
Net premiums earned | — | — | 3,970 | — | 3,970 | |||||||||||||||
Net investment income | — | — | 553 | — | 553 | |||||||||||||||
Equity in earnings of subsidiaries | 702 | 180 | — | (882 | ) | — | ||||||||||||||
Net realized gains (losses) including OTTI | — | (1 | ) | (103 | ) | — | (104 | ) | ||||||||||||
Losses and loss expenses | — | — | 2,161 | — | 2,161 | |||||||||||||||
Policy benefits | — | — | 114 | — | 114 | |||||||||||||||
Policy acquisition costs and administrative expenses | 17 | 6 | 1,240 | — | 1,263 | |||||||||||||||
Interest (income) expense | (10 | ) | 71 | 10 | — | 71 | ||||||||||||||
Other (income) expense | (42 | ) | 14 | 11 | — | (17 | ) | |||||||||||||
Income tax expense (benefit) | 3 | (30 | ) | 120 | — | 93 | ||||||||||||||
Net income | $ | 734 | $ | 118 | $ | 764 | $ | (882 | ) | $ | 734 | |||||||||
Comprehensive income | $ | 1,108 | $ | 266 | $ | 1,138 | $ | (1,404 | ) | $ | 1,108 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Revised) | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | ||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 3,798 | $ | — | $ | 3,798 | ||||||||||
Net premiums earned | — | — | 3,573 | — | 3,573 | |||||||||||||||
Net investment income | — | 1 | 530 | — | 531 | |||||||||||||||
Equity in earnings of subsidiaries | 914 | 188 | — | (1,102 | ) | — | ||||||||||||||
Net realized gains (losses) including OTTI | 12 | — | 194 | — | 206 | |||||||||||||||
Losses and loss expenses | — | — | 1,926 | — | 1,926 | |||||||||||||||
Policy benefits | — | — | 131 | — | 131 | |||||||||||||||
Policy acquisition costs and administrative expenses | 15 | 4 | 1,109 | — | 1,128 | |||||||||||||||
Interest (income) expense | (7 | ) | 62 | 5 | — | 60 | ||||||||||||||
Other (income) expense | (38 | ) | 9 | 19 | — | (10 | ) | |||||||||||||
Income tax expense (benefit) | 3 | (33 | ) | 152 | — | 122 | ||||||||||||||
Net income | $ | 953 | $ | 147 | $ | 955 | $ | (1,102 | ) | $ | 953 | |||||||||
Comprehensive income (loss) | $ | 716 | $ | (1 | ) | $ | 718 | $ | (717 | ) | $ | 716 | ||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (As previously reported) | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments (2) | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries and | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | Eliminations(1) | |||||||||||||||||
Net premiums written | $ | — | $ | 2,082 | $ | 1,716 | $ | — | $ | 3,798 | ||||||||||
Net premiums earned | — | 2,006 | 1,567 | — | 3,573 | |||||||||||||||
Net investment income | — | 248 | 283 | — | 531 | |||||||||||||||
Equity in earnings of subsidiaries | 914 | — | — | (914 | ) | — | ||||||||||||||
Net realized gains (losses) including OTTI | 12 | 10 | 184 | — | 206 | |||||||||||||||
Losses and loss expenses | — | 1,253 | 673 | — | 1,926 | |||||||||||||||
Policy benefits | — | 81 | 50 | — | 131 | |||||||||||||||
Policy acquisition costs and administrative expenses | 15 | 626 | 487 | — | 1,128 | |||||||||||||||
Interest (income) expense | (7 | ) | 67 | — | — | 60 | ||||||||||||||
Other (income) expense | (38 | ) | 34 | (6 | ) | — | (10 | ) | ||||||||||||
Income tax expense | 3 | 56 | 63 | — | 122 | |||||||||||||||
Net income | $ | 953 | $ | 147 | $ | 767 | $ | (914 | ) | $ | 953 | |||||||||
Comprehensive income (loss) | $ | 716 | $ | (1 | ) | $ | 915 | $ | (914 | ) | $ | 716 | ||||||||
-1 | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | |||||||||||||||||||
-2 | Includes ACE Limited parent company eliminations. | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ' | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | ||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 57 | $ | (13 | ) | $ | 1,206 | $ | — | $ | 1,250 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (3,522 | ) | — | (3,522 | ) | |||||||||||||
Purchases of fixed maturities held to maturity | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Purchases of equity securities | — | — | (37 | ) | — | (37 | ) | |||||||||||||
Sales of fixed maturities available for | — | — | 2,208 | — | 2,208 | |||||||||||||||
sale | ||||||||||||||||||||
Sales of equity securities | — | — | 27 | — | 27 | |||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 1,550 | — | 1,550 | |||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 212 | — | 212 | |||||||||||||||
Net change in short-term investments | — | (8 | ) | (757 | ) | — | (765 | ) | ||||||||||||
Net derivative instruments settlements | — | (9 | ) | (87 | ) | — | (96 | ) | ||||||||||||
Other | — | (3 | ) | (47 | ) | — | (50 | ) | ||||||||||||
Net cash flows used for investing activities | — | (20 | ) | (483 | ) | — | (503 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Dividends paid on Common Shares | (214 | ) | — | — | — | (214 | ) | |||||||||||||
Common Shares repurchased | — | — | (335 | ) | — | (335 | ) | |||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | — | 40 | — | 40 | |||||||||||||||
Advances (to) from affiliates | 367 | (367 | ) | — | — | — | ||||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | (185 | ) | 385 | — | (200 | ) | — | |||||||||||||
Other | — | — | 37 | — | 37 | |||||||||||||||
Net cash flows (used for) from financing activities | (32 | ) | 18 | (258 | ) | (200 | ) | (472 | ) | |||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Net increase (decrease) in cash | 25 | (15 | ) | 458 | (200 | ) | 268 | |||||||||||||
Cash – beginning of period(1) | — | 16 | 748 | (185 | ) | 579 | ||||||||||||||
Cash – end of period(1) | $ | 25 | $ | 1 | $ | 1,206 | $ | (385 | ) | $ | 847 | |||||||||
(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows (Revised) | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments and Eliminations | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | ||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 25 | $ | (19 | ) | $ | 907 | $ | — | $ | 913 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchases of fixed maturities available for sale | — | — | (5,568 | ) | 103 | (5,465 | ) | |||||||||||||
Purchases of fixed maturities held to maturity | — | — | (142 | ) | — | (142 | ) | |||||||||||||
Purchases of equity securities | — | — | (107 | ) | — | (107 | ) | |||||||||||||
Sales of fixed maturities available for sale | — | — | 2,867 | (103 | ) | 2,764 | ||||||||||||||
Sales of equity securities | — | — | 31 | — | 31 | |||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | — | 2,016 | — | 2,016 | |||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 491 | — | 491 | |||||||||||||||
Net change in short-term investments | — | 4 | (691 | ) | — | (687 | ) | |||||||||||||
Net derivative instruments settlements | — | — | (279 | ) | — | (279 | ) | |||||||||||||
Acquisition of subsidiaries | — | — | (33 | ) | — | (33 | ) | |||||||||||||
Capital contribution | — | (27 | ) | — | 27 | — | ||||||||||||||
Other | — | 2 | (57 | ) | — | (55 | ) | |||||||||||||
Net cash flows used for investing activities | — | (21 | ) | (1,472 | ) | 27 | (1,466 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Dividends paid on Common Shares | (2 | ) | — | — | — | (2 | ) | |||||||||||||
Common Shares repurchased | — | — | (154 | ) | — | (154 | ) | |||||||||||||
Net proceeds from issuance of long-term debt | — | 947 | — | — | 947 | |||||||||||||||
Net proceeds from issuance of short-term debt | — | — | 1 | — | 1 | |||||||||||||||
Proceeds from share-based compensation plans | — | — | 21 | — | 21 | |||||||||||||||
Advances (to) from affiliates | 71 | (71 | ) | — | — | — | ||||||||||||||
Dividends to parent company | — | — | — | — | — | |||||||||||||||
Capital contribution | — | — | 27 | (27 | ) | — | ||||||||||||||
Net payments to affiliated notional cash pooling programs(1) | — | (349 | ) | — | 349 | — | ||||||||||||||
Net cash flows from (used for) financing activities | 69 | 527 | (105 | ) | 322 | 813 | ||||||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | — | (20 | ) | — | (20 | ) | |||||||||||||
Net increase (decrease) in cash | 94 | 487 | (690 | ) | 349 | 240 | ||||||||||||||
Cash – beginning of period(1) | 103 | 2 | 859 | (349 | ) | 615 | ||||||||||||||
Cash – end of period(1) | $ | 197 | $ | 489 | $ | 169 | $ | — | $ | 855 | ||||||||||
(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows (As previously reported) | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ACE | ACE INA | Other ACE | Consolidating | ACE | |||||||||||||||
Limited | Holdings Inc. | Limited | Adjustments(2) | Limited | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries and | Consolidated | |||||||||||||||||
(in millions of U.S. dollars) | Guarantor) | Issuer) | Eliminations(1) | |||||||||||||||||
Net cash flows from operating activities | $ | 53 | $ | 644 | $ | 216 | $ | — | $ | 913 | ||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchases of fixed maturities available for sale | — | (3,825 | ) | (2,327 | ) | — | (6,152 | ) | ||||||||||||
Purchases of fixed maturities held to maturity | — | (137 | ) | (5 | ) | — | (142 | ) | ||||||||||||
Purchases of equity securities | — | (89 | ) | (18 | ) | — | (107 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | 1,473 | 1,291 | — | 2,764 | |||||||||||||||
Sales of equity securities | — | 25 | 6 | — | 31 | |||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | 879 | 1,137 | — | 2,016 | |||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | 351 | 140 | — | 491 | |||||||||||||||
Net derivative instruments settlements | — | 4 | (283 | ) | — | (279 | ) | |||||||||||||
Advances from (to) affiliates | 43 | — | — | (43 | ) | — | ||||||||||||||
Acquisition of subsidiaries | — | (33 | ) | — | — | (33 | ) | |||||||||||||
Other | — | (86 | ) | 31 | — | (55 | ) | |||||||||||||
Net cash flows from (used for) investing activities | 43 | (1,438 | ) | (28 | ) | (43 | ) | (1,466 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Dividends paid on Common Shares | (2 | ) | — | — | — | (2 | ) | |||||||||||||
Common Shares repurchased | — | — | (154 | ) | — | (154 | ) | |||||||||||||
Net proceeds from issuance of long-term debt | — | 947 | — | — | 947 | |||||||||||||||
Net proceeds from issuance of short-term debt | — | — | 1 | — | 1 | |||||||||||||||
Proceeds from share-based compensation plans, including windfall tax benefits | — | (8 | ) | 29 | — | 21 | ||||||||||||||
Advances (to) from affiliates | — | (71 | ) | 28 | 43 | — | ||||||||||||||
Net cash flows from (used for) financing activities | (2 | ) | 868 | (96 | ) | 43 | 813 | |||||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | — | (29 | ) | 9 | — | (20 | ) | |||||||||||||
Net increase in cash | 94 | 45 | 101 | — | 240 | |||||||||||||||
Cash – beginning of period | 103 | 515 | (3 | ) | — | 615 | ||||||||||||||
Cash – end of period(3) | $ | 197 | $ | 560 | $ | 98 | $ | — | $ | 855 | ||||||||||
-1 | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | |||||||||||||||||||
-2 | Includes ACE Limited parent company eliminations and certain consolidating adjustments. | |||||||||||||||||||
-3 | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Acquisitions_Detail
Acquisitions (Detail) (USD $) | 1 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Apr. 30, 2013 | Apr. 02, 2013 | 31-May-13 | 2-May-13 | Apr. 28, 2014 | Jan. 12, 2014 |
Fianzas Monterrey [Member] | Fianzas Monterrey [Member] | ABA Seguros [Member] | ABA Seguros [Member] | The Siam Commercial Samaggi Insurance PCL [Member] | The Siam Commercial Samaggi Insurance PCL [Member] | |
Subsequent Event [Member] | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Acquisition purchase price | $293 | ' | $690 | ' | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | ' | ' | ' | 60.90% |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | ' | ' | ' | ' | ' | 39.10% |
Business Acquisition, Purchase Price Allocation, Goodwill Amount | ' | 137 | ' | 285 | ' | ' |
Business Acquisition, Purchase Price Allocation, Intangible Assets Other than Goodwill | ' | 73 | ' | 140 | ' | ' |
Business Acquisition, Cost of Acquired Entity, Expected Cash Consideration | ' | ' | ' | ' | $190 | ' |
Investments_Narrative_Detail
Investments (Narrative) (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Security | |||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Net unrealized appreciation (depreciation) included in OCI | $4,000,000 | $24,000,000 | ' |
Net unrealized depreciation included in AOCI | 2,000,000 | ' | 4,000,000 |
Percentage of mortgage-backed securities represented by investments in US government agency bonds | 82.00% | ' | 83.00% |
Credit losses recognized in net income for corporate securities | 4,000,000 | 1,000,000 | ' |
Credit losses recognized in net income for mortgage-backed securities | 0 | 0 | ' |
Number of fixed maturities in an unrealized loss position | 4,540 | ' | ' |
Total number of fixed maturities | 24,991 | ' | ' |
Largest single unrealized loss in the fixed maturities | 5,000,000 | ' | ' |
Number of equity securities in an unrealized loss position | 58 | ' | ' |
Total number of equity securities | 186 | ' | ' |
Largest single unrealized loss in the equity securities | 54,000,000 | ' | ' |
Restricted assets in fixed maturities and short-term investments | 16,500,000,000 | ' | 16,300,000,000 |
Restricted assets in cash | $98,000,000 | ' | $162,000,000 |
Investments_Schedule_Of_Amorti
Investments (Schedule Of Amortized Cost And Fair Value Of Fixed Maturities And Related Other-Than-Temporary Impairment Recognized In Accumulated Other Comprehensive Income) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Held to maturity, Amortized Cost | $5,887 | $6,098 |
Held to maturity, Gross Unrealized Appreciation | 207 | 187 |
Held to maturity, Gross Unrealized Depreciation | -14 | -22 |
Held to maturity, Fair Value | 6,080 | 6,263 |
Held to maturity, OTTI recognized in AOCI | ' | ' |
Available for sale, Amortized Cost | 48,282 | 48,406 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 1,697 | 1,465 |
Available for sale, Gross Unrealized Depreciation | -368 | -617 |
Available for sale, Fair Value | 49,611 | 49,254 |
Available for sale, OTTI recognized in AOCI | -34 | -40 |
U.S. Treasury And Agency [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Held to maturity, Amortized Cost | 777 | 820 |
Held to maturity, Gross Unrealized Appreciation | 17 | 16 |
Held to maturity, Gross Unrealized Depreciation | -4 | -4 |
Held to maturity, Fair Value | 790 | 832 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 2,939 | 2,946 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 68 | 62 |
Available for sale, Gross Unrealized Depreciation | -37 | -59 |
Available for sale, Fair Value | 2,970 | 2,949 |
Available for sale, OTTI recognized in AOCI | 0 | 0 |
Foreign [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Held to maturity, Amortized Cost | 837 | 864 |
Held to maturity, Gross Unrealized Appreciation | 37 | 33 |
Held to maturity, Gross Unrealized Depreciation | 0 | 0 |
Held to maturity, Fair Value | 874 | 897 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 14,155 | 14,336 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 441 | 377 |
Available for sale, Gross Unrealized Depreciation | -65 | -122 |
Available for sale, Fair Value | 14,531 | 14,591 |
Available for sale, OTTI recognized in AOCI | -1 | 0 |
Corporate Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Held to maturity, Amortized Cost | 1,876 | 1,922 |
Held to maturity, Gross Unrealized Appreciation | 89 | 83 |
Held to maturity, Gross Unrealized Depreciation | 0 | 0 |
Held to maturity, Fair Value | 1,965 | 2,005 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 16,873 | 16,825 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 883 | 777 |
Available for sale, Gross Unrealized Depreciation | -71 | -132 |
Available for sale, Fair Value | 17,685 | 17,470 |
Available for sale, OTTI recognized in AOCI | -6 | -6 |
Mortgage Backed-Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Held to maturity, Amortized Cost | 1,265 | 1,341 |
Held to maturity, Gross Unrealized Appreciation | 41 | 39 |
Held to maturity, Gross Unrealized Depreciation | 0 | -1 |
Held to maturity, Fair Value | 1,306 | 1,379 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 10,916 | 10,937 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 210 | 184 |
Available for sale, Gross Unrealized Depreciation | -155 | -227 |
Available for sale, Fair Value | 10,971 | 10,894 |
Available for sale, OTTI recognized in AOCI | -27 | -34 |
States, Municipalities, And Political Subdivisions [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Held to maturity, Amortized Cost | 1,132 | 1,151 |
Held to maturity, Gross Unrealized Appreciation | 23 | 16 |
Held to maturity, Gross Unrealized Depreciation | -10 | -17 |
Held to maturity, Fair Value | 1,145 | 1,150 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 3,399 | 3,362 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 95 | 65 |
Available for sale, Gross Unrealized Depreciation | -40 | -77 |
Available for sale, Fair Value | 3,454 | 3,350 |
Available for sale, OTTI recognized in AOCI | $0 | $0 |
Investments_Schedule_Of_Fixed_
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Available for sale, Due in 1 year or less, Amortized Cost | $2,504 | $2,387 |
Available for sale, Due after 1 year through 5 years, Amortized Cost | 14,199 | 14,139 |
Available for sale, Due after 5 years though 10 years, Amortized Cost | 15,947 | 16,200 |
Available for sale, Due after 10 years, Amortized Cost | 4,716 | 4,743 |
Available for sale, Subtotal, Amortized Cost | 37,366 | 37,469 |
Available for sale, Mortgage-backed securities, Amortized Cost | 10,916 | 10,937 |
Available for sale, Amortized Cost | 48,282 | 48,406 |
Available for sale, Fair Value | 49,611 | 49,254 |
Held to maturity, Due in 1 year or less, Amortized Cost | 539 | 401 |
Held to maturity, Due after 1 year through 5 years, Amortized Cost | 2,419 | 2,284 |
Held to maturity, Due after 5 years through 10 years, Amortized Cost | 1,304 | 1,686 |
Held to maturity, Due after 10 years, Amortized Cost | 360 | 386 |
Held to maturity, Subtotal, Amortized Cost | 4,622 | 4,757 |
Held to maturity, Mortgage backed securities, Amortized Cost | 1,265 | 1,341 |
Available for sale, Due in 1 year or less, Fair Value | 2,528 | 2,411 |
Available for sale, Due after 1 year through 5 years, Fair Value | 14,713 | 14,602 |
Available for sale, Due after 5 years through 10 years, Fair Value | 16,460 | 16,535 |
Available for sale, Due after 10 years, Fair Value | 4,939 | 4,812 |
Available for sale, Subtotal, Fair Value | 38,640 | 38,360 |
Available for sale, Mortgage backed securities, Fair Value | 10,971 | 10,894 |
Held to maturity, Due in 1 year or less, Fair Value | 547 | 405 |
Held to maturity, Due after 1 year through 5, Fair Value | 2,503 | 2,363 |
Held to maturity, Due after 5 years through 10 years, Fair Value | 1,345 | 1,723 |
Held to maturity, Due after 10 years, Fair Value | 379 | 393 |
Held to maturity, Subtotal, Fair Value | 4,774 | 4,884 |
Held to maturity, Mortgage backed securities, Fair Value | 1,306 | 1,379 |
Held-to-maturity Securities | 5,887 | 6,098 |
Held to maturity, Fair Value | $6,080 | $6,263 |
Investments_Schedule_Of_Cost_A
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Cost | $845 | $841 |
Gross unrealized appreciation | 64 | 63 |
Gross unrealized depreciation | -58 | -67 |
Fair value | $851 | $837 |
Investments_Net_Realized_Gains
Investments (Net Realized Gains (Losses) And Losses Included In Net Realized Gains (Losses) And Other Comprehensive Income) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
OTTI on fixed maturities, gross | ($6) | ($1) |
OTTI on fixed maturities recognized in OCI (pre-tax) | 1 | 0 |
OTTI on fixed maturities, net | -5 | -1 |
Fixed maturities, Gross realized gains excluding OTTI | 36 | 62 |
Fixed maturities, Gross realized losses excluding OTTI | -20 | -25 |
Total fixed maturities | 11 | 36 |
OTTI on equity securities | -6 | -1 |
Equity securities, Gross realized gains excluding OTTI | 2 | 2 |
Equity securities, Gross realized losses excluding OTTI | -1 | -2 |
Total equity securities | -5 | -1 |
OTTI on other investments | 0 | -1 |
Foreign exchange gains (losses) | -9 | 76 |
Investment and embedded derivative instruments | -25 | 18 |
Fair value adjustments on insurance derivative | -48 | 328 |
S&P put options and futures | -19 | -250 |
Other derivative instruments | -2 | 0 |
Other | -7 | 0 |
Total net realized gains (losses) | ($104) | $206 |
Investments_RollForward_Of_Pre
Investments (Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which Portion Of Other-Than-Temporary Impairment Was Recognized In Other Comprehensive Income) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which Portion Of Other-Than-Temporary Impairment Was Recognized In Other Comprehensive Income [Roll Forward] | ' | ' |
Balance of credit losses related to securities still held – beginning of period | $37 | $43 |
Additions where no OTTI was previously recorded | 2 | 0 |
Additions where an OTTI was previously recorded | 2 | 1 |
Reductions for securities sold during the period | -6 | -9 |
Balance of credit losses related to securities still held – end of period | $35 | $35 |
Investments_Aggregate_Fair_Val
Investments (Aggregate Fair Value And Gross Unrealized Loss By Length Of Time Security Has Continuously Been In Unrealized Loss Position) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | $14,040 | $18,228 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -383 | -652 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 1,090 | 894 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | -62 | -63 |
Investment securities, Unrealized loss position, Total Fair Value | 15,130 | 19,122 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | -445 | -715 |
US Treasury and Government [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | 1,609 | 1,794 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -37 | -57 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 33 | 31 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | -4 | -6 |
Investment securities, Unrealized loss position, Total Fair Value | 1,642 | 1,825 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | -41 | -63 |
Foreign Government Debt Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | 2,988 | 4,621 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -56 | -114 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 259 | 201 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | -9 | -8 |
Investment securities, Unrealized loss position, Total Fair Value | 3,247 | 4,822 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | -65 | -122 |
Corporate Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | 2,940 | 3,836 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -58 | -118 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 211 | 194 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | -13 | -14 |
Investment securities, Unrealized loss position, Total Fair Value | 3,151 | 4,030 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | -71 | -132 |
Collateralized Mortgage Backed Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | 4,367 | 5,248 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -130 | -197 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 398 | 384 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | -25 | -31 |
Investment securities, Unrealized loss position, Total Fair Value | 4,765 | 5,632 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | -155 | -228 |
US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | 1,575 | 2,164 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -39 | -90 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 189 | 84 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | -11 | -4 |
Investment securities, Unrealized loss position, Total Fair Value | 1,764 | 2,248 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | -50 | -94 |
Fixed Maturities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | 13,479 | 17,663 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -320 | -576 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 1,090 | 894 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | -62 | -63 |
Investment securities, Unrealized loss position, Total Fair Value | 14,569 | 18,557 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | -382 | -639 |
Equity Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | 496 | 498 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -58 | -67 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 0 | 0 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | 0 | 0 |
Investment securities, Unrealized loss position, Total Fair Value | 496 | 498 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | -58 | -67 |
Other Long-term Investments [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities, Unrealized loss position, 0-12 Months, Fair Value | 65 | 67 |
Investment securities, Unrealized loss position, 0-12 Months, Gross Unrealized Loss | -5 | -9 |
Investment securities, Unrealized loss position, Over 12 Months, Fair Value | 0 | 0 |
Investment securities, Unrealized loss position, Over 12 Months, Gross Unrealized Loss | 0 | 0 |
Investment securities, Unrealized loss position, Total Fair Value | 65 | 67 |
Investment securities, Unrealized loss position, Total Gross Unrealized Loss | ($5) | ($9) |
Investments_Schedule_Of_Compon
Investments (Schedule Of Components Of Restricted Assets) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Trust funds | $11,385 | $11,315 |
Deposits with non-U.S. regulatory authorities | 1,962 | 1,970 |
Assets pledged under repurchase agreements | 1,452 | 1,435 |
Deposits with U.S. regulatory authorities | 1,334 | 1,334 |
Other pledged assets | 420 | 391 |
Total restricted assets | $16,553 | $16,445 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' |
Level 1 to Level 2 Transfers | ' | $13 |
Level 2 to Level 1 Transfers | 0 | 0 |
Guaranteed Living Benefits, Net Income Impact From Model Refinement | $3 | ' |
Redemption Notice Periods Lower Range [Member] | ' | ' |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' |
Notice period for redemption for alternative investments investment funds, days | '5 days | ' |
Redemption Notice Periods Upper Range [Member] | ' | ' |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' |
Notice period for redemption for alternative investments investment funds, days | '120 days | ' |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | $49,611 | $49,254 | ||
Equity securities, at fair value | 851 | 837 | ||
Short-term investments | 2,526 | 1,763 | ||
Other investments | 3,170 | 2,976 | ||
Securities lending collateral | 1,550 | 1,632 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 1,942 | 1,849 | ||
Equity securities, at fair value | 380 | 373 | ||
Short-term investments | 1,590 | 953 | ||
Other investments | 314 | 305 | ||
Investment derivative instruments, assets | 8 | 19 | ||
Other derivative instruments, assets | 7 | 0 | ||
Separate account assets | 1,193 | 1,145 | ||
Total assets measured at fair value | 5,434 | 4,644 | ||
Investment derivative instruments, liabilities | 6 | 6 | ||
Other derivative instruments, liability | 12 | 60 | ||
GLB | 0 | [1] | 0 | [1] |
Total liabilities measured at fair value | 18 | 66 | ||
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury And Agency [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 1,709 | 1,626 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 233 | 223 | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 47,484 | 47,187 | ||
Equity securities, at fair value | 469 | 460 | ||
Short-term investments | 936 | 803 | ||
Other investments | 245 | 231 | ||
Securities lending collateral | 1,550 | 1,632 | ||
Other derivative instruments, assets | 0 | 6 | ||
Separate account assets | 83 | 81 | ||
Total assets measured at fair value | 50,767 | 50,400 | ||
Investment derivative instruments, liabilities | 0 | 0 | ||
Other derivative instruments, liability | 2 | 2 | ||
GLB | 0 | [1] | 0 | [1] |
Total liabilities measured at fair value | 2 | 2 | ||
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury And Agency [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 1,261 | 1,323 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 14,272 | 14,324 | ||
Fair Value, Inputs, Level 2 [Member] | Corporate Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 17,534 | 17,304 | ||
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed-Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 10,963 | 10,886 | ||
Fair Value, Inputs, Level 2 [Member] | States, Municipalities, And Political Subdivisions [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 3,454 | 3,350 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 185 | 218 | ||
Equity securities, at fair value | 2 | 4 | ||
Short-term investments | 0 | 7 | ||
Other investments | 2,611 | 2,440 | ||
Other derivative instruments, assets | 0 | 0 | ||
Total assets measured at fair value | 2,798 | 2,669 | ||
Investment derivative instruments, liabilities | 0 | 0 | ||
Other derivative instruments, liability | 0 | 0 | ||
GLB | 243 | [1] | 193 | [1] |
Total liabilities measured at fair value | 243 | 193 | ||
Fair Value, Inputs, Level 3 [Member] | U.S. Treasury And Agency [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 26 | 44 | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 151 | 166 | ||
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed-Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 8 | 8 | ||
Fair Value, Inputs, Level 3 [Member] | States, Municipalities, And Political Subdivisions [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 0 | 0 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 49,611 | 49,254 | ||
Equity securities, at fair value | 851 | 837 | ||
Short-term investments | 2,526 | 1,763 | ||
Other investments | 3,170 | 2,976 | ||
Securities lending collateral | 1,550 | 1,632 | ||
Investment derivative instruments, assets | 8 | 19 | ||
Other derivative instruments, assets | 7 | 6 | ||
Separate account assets | 1,276 | 1,226 | ||
Total assets measured at fair value | 58,999 | 57,713 | ||
Investment derivative instruments, liabilities | 6 | 6 | ||
Other derivative instruments, liability | 14 | 62 | ||
GLB | 243 | [1] | 193 | [1] |
Total liabilities measured at fair value | 263 | 261 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | U.S. Treasury And Agency [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 2,970 | 2,949 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Foreign [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 14,531 | 14,591 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Corporate Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 17,685 | 17,470 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Mortgage Backed-Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | 10,971 | 10,894 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | States, Municipalities, And Political Subdivisions [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed maturities available for sale at fair value | $3,454 | $3,350 | ||
[1] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value And Maximum Future Funding Commitments Related To Investments) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value [Member] | ' | ' |
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ' | ' |
Financial | 271 | 256 |
Real estate | 319 | 322 |
Distressed | 243 | 180 |
Mezzanine | 290 | 276 |
Traditional | 882 | 813 |
Vintage | 12 | 13 |
Investment funds | 440 | 428 |
Total of alternative investments | 2,457 | 2,288 |
Maximum Future Funding Commitments [Member] | ' | ' |
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ' | ' |
Financial | 122 | 129 |
Real estate | 63 | 92 |
Distressed | 169 | 230 |
Mezzanine | 235 | 252 |
Traditional | 414 | 456 |
Vintage | 0 | 0 |
Total of alternative investments | 1,003 | 1,159 |
Expected Liquidation Period Lower Range [Member] | ' | ' |
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ' | ' |
Liquidation period for financial alternative investments (in years) | '5 years | '5 years |
Liquidation period for real estate alternative investments (in years) | '3 years | '3 years |
Liquidation period for distressed alternative investments (in years) | '6 years | '6 years |
Liquidation period for mezzanine alternative investments (in years) | '6 years | '6 years |
Liquidation period for traditional alternative investments (in years) | '3 years | '3 years |
Liquidation period for vintage alternative investments (in years) | '1 year | '1 year |
Expected Liquidation Period Upper Range [Member] | ' | ' |
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ' | ' |
Liquidation period for financial alternative investments (in years) | '9 years | '9 years |
Liquidation period for real estate alternative investments (in years) | '9 years | '9 years |
Liquidation period for distressed alternative investments (in years) | '9 years | '9 years |
Liquidation period for mezzanine alternative investments (in years) | '9 years | '9 years |
Liquidation period for traditional alternative investments (in years) | '8 years | '8 years |
Liquidation period for vintage alternative investments (in years) | '3 years | '3 years |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) (USD $) | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Valuation Technique | 'Actuarial model | [1] | ' | ' | ' | |||
Minimum [Member] | ' | ' | ' | ' | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Significant Unobservable Inputs Lapse rate | 1.00% | [1] | ' | ' | ' | |||
Significant Unobservable Inputs Annuitization rate | 0.00% | [1] | ' | ' | ' | |||
Maximum [Member] | ' | ' | ' | ' | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Significant Unobservable Inputs Lapse rate | 30.00% | [1] | ' | ' | ' | |||
Significant Unobservable Inputs Annuitization rate | 50.00% | [1] | ' | ' | ' | |||
Guaranteed Minimum Income Benefit [Member] | ' | ' | ' | ' | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $243 | [2] | $753 | [2] | $193 | [2] | $1,119 | [2] |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 50 | [2] | -366 | [2] | ' | ' | ||
Fair Value | 243 | [1] | ' | 193 | ' | |||
Short-term Investments [Member] | ' | ' | ' | ' | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | ' | 7 | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | $0 | ' | ' | ' | ||||
[1] | Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits. | |||||||
[2] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. |
Fair_Value_Measurements_Financ1
Fair Value Measurements (Financial Instruments Measured At Fair Value Using Significant Unobservable Inputs) (Detail) (USD $) | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Equity Securities [Member] | ' | ' | ' | ' | ||||
Schedule Of Fair Value Measurements [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | $0 | $0 | ' | ' | ||||
Balance- Beginning of Period, Assets | 4 | 3 | ' | ' | ||||
Transfers out of Level 3, Assets | -2 | -1 | ' | ' | ||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 1 | 0 | ' | ' | ||||
Net Realized Gains/Losses, Assets | ' | 0 | ' | ' | ||||
Purchases, Assets | 1 | 0 | ' | ' | ||||
Sales, Assets | -2 | 0 | ' | ' | ||||
Settlements, Assets | ' | 0 | ' | ' | ||||
Balance-End of Period, Assets | 2 | 2 | ' | ' | ||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets | ' | 0 | ' | ' | ||||
Short-term Investments [Member] | ' | ' | ' | ' | ||||
Schedule Of Fair Value Measurements [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | ' | ' | ' | ||||
Balance- Beginning of Period, Assets | 7 | ' | ' | ' | ||||
Transfers out of Level 3, Assets | -7 | ' | ' | ' | ||||
Purchases, Assets | 0 | ' | ' | ' | ||||
Balance-End of Period, Assets | 0 | ' | ' | ' | ||||
Other Long-term Investments [Member] | ' | ' | ' | ' | ||||
Schedule Of Fair Value Measurements [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | ' | ' | ||||
Balance- Beginning of Period, Assets | 2,440 | 2,252 | ' | ' | ||||
Transfers out of Level 3, Assets | ' | 0 | ' | ' | ||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 41 | 22 | ' | ' | ||||
Net Realized Gains/Losses, Assets | 0 | -1 | ' | ' | ||||
Purchases, Assets | 200 | 136 | ' | ' | ||||
Sales, Assets | -1 | -9 | ' | ' | ||||
Settlements, Assets | -69 | -72 | ' | ' | ||||
Balance-End of Period, Assets | 2,611 | 2,328 | ' | ' | ||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets | 0 | -1 | ' | ' | ||||
Available-for-sale Securities [Member] | Foreign [Member] | ' | ' | ' | ' | ||||
Schedule Of Fair Value Measurements [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 3 | ' | ' | ||||
Balance- Beginning of Period, Assets | 44 | 60 | ' | ' | ||||
Transfers out of Level 3, Assets | -18 | -27 | ' | ' | ||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | -1 | 0 | ' | ' | ||||
Net Realized Gains/Losses, Assets | 0 | 1 | ' | ' | ||||
Purchases, Assets | 2 | 0 | ' | ' | ||||
Sales, Assets | -1 | -1 | ' | ' | ||||
Settlements, Assets | 0 | -1 | ' | ' | ||||
Balance-End of Period, Assets | 26 | 35 | ' | ' | ||||
Available-for-sale Securities [Member] | Corporate Debt Securities [Member] | ' | ' | ' | ' | ||||
Schedule Of Fair Value Measurements [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 4 | 12 | ' | ' | ||||
Balance- Beginning of Period, Assets | 166 | 102 | ' | ' | ||||
Transfers out of Level 3, Assets | -22 | -2 | ' | ' | ||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 0 | 1 | ' | ' | ||||
Net Realized Gains/Losses, Assets | 0 | 0 | ' | ' | ||||
Purchases, Assets | 15 | 10 | ' | ' | ||||
Sales, Assets | -6 | 0 | ' | ' | ||||
Settlements, Assets | -6 | -5 | ' | ' | ||||
Balance-End of Period, Assets | 151 | 118 | ' | ' | ||||
Available-for-sale Securities [Member] | Mortgage Backed-Securities [Member] | ' | ' | ' | ' | ||||
Schedule Of Fair Value Measurements [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | ' | ' | ||||
Balance- Beginning of Period, Assets | 8 | 13 | ' | ' | ||||
Transfers out of Level 3, Assets | 0 | 0 | ' | ' | ||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | ' | 0 | ' | ' | ||||
Net Realized Gains/Losses, Assets | ' | 0 | ' | ' | ||||
Purchases, Assets | 0 | 0 | ' | ' | ||||
Sales, Assets | 0 | 0 | ' | ' | ||||
Settlements, Assets | 0 | 0 | ' | ' | ||||
Balance-End of Period, Assets | 8 | 13 | ' | ' | ||||
Guaranteed Minimum Income Benefit [Member] | ' | ' | ' | ' | ||||
Schedule Of Fair Value Measurements [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 243 | [1] | 753 | [1] | 193 | [1] | 1,119 | [1] |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 50 | [1] | -366 | [1] | ' | ' | ||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities | 50 | -366 | ' | ' | ||||
Reported liabilities | $483 | $1,000 | $427 | $1,400 | ||||
[1] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Instruments Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | $6,080 | $6,263 |
Partially-owned insurance companies | 466 | 470 |
Total assets | 6,546 | 6,733 |
Short-term debt | 1,907 | 1,913 |
Long-term debt | 4,139 | 4,088 |
Trust preferred securities | 452 | 438 |
Total liabilities | 6,498 | 6,439 |
Financial Instruments Fair Value [Member] | U.S. Treasury And Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 790 | 832 |
Financial Instruments Fair Value [Member] | Foreign [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 874 | 897 |
Financial Instruments Fair Value [Member] | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 1,965 | 2,005 |
Financial Instruments Fair Value [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 1,306 | 1,379 |
Financial Instruments Fair Value [Member] | US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 1,145 | 1,150 |
Fair Value, Inputs, Level 1 [Member] | Financial Instruments Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 595 | 596 |
Total assets | 595 | 596 |
Fair Value, Inputs, Level 1 [Member] | Financial Instruments Fair Value [Member] | U.S. Treasury And Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 595 | 596 |
Fair Value, Inputs, Level 2 [Member] | Financial Instruments Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 5,469 | 5,652 |
Total assets | 5,469 | 5,652 |
Short-term debt | 1,907 | 1,913 |
Long-term debt | 4,139 | 4,088 |
Trust preferred securities | 452 | 438 |
Total liabilities | 6,498 | 6,439 |
Fair Value, Inputs, Level 2 [Member] | Financial Instruments Fair Value [Member] | U.S. Treasury And Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 195 | 236 |
Fair Value, Inputs, Level 2 [Member] | Financial Instruments Fair Value [Member] | Foreign [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 874 | 897 |
Fair Value, Inputs, Level 2 [Member] | Financial Instruments Fair Value [Member] | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 1,949 | 1,990 |
Fair Value, Inputs, Level 2 [Member] | Financial Instruments Fair Value [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 1,306 | 1,379 |
Fair Value, Inputs, Level 2 [Member] | Financial Instruments Fair Value [Member] | US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 1,145 | 1,150 |
Fair Value, Inputs, Level 3 [Member] | Financial Instruments Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 16 | 15 |
Partially-owned insurance companies | 466 | 470 |
Total assets | 482 | 485 |
Fair Value, Inputs, Level 3 [Member] | Financial Instruments Fair Value [Member] | U.S. Treasury And Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Financial Instruments Fair Value [Member] | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 16 | 15 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Financial Instruments Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 5,887 | 6,098 |
Partially-owned insurance companies | 466 | 470 |
Total assets | 6,353 | 6,568 |
Short-term debt | 1,901 | 1,901 |
Long-term debt | 3,808 | 3,807 |
Trust preferred securities | 309 | 309 |
Total liabilities | 6,018 | 6,017 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Financial Instruments Carrying Value [Member] | U.S. Treasury And Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 777 | 820 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Financial Instruments Carrying Value [Member] | Foreign [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 837 | 864 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Financial Instruments Carrying Value [Member] | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 1,876 | 1,922 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Financial Instruments Carrying Value [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | 1,265 | 1,341 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Financial Instruments Carrying Value [Member] | US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Fixed maturities held to maturity | $1,132 | $1,151 |
Recovered_Sheet1
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Schedule Of Guaranteed Minimum Benefits Income And Expense) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Guaranteed Minimum Benefits [Line Items] | ' | ' |
Net premiums earned | $3,970 | $3,573 |
Policy benefits and other reserve adjustments | 114 | 131 |
Net realized gains (losses) | -104 | 206 |
Guaranteed Minimum Death Benefit [Member] | ' | ' |
Guaranteed Minimum Benefits [Line Items] | ' | ' |
Net premiums earned | 19 | 20 |
Policy benefits and other reserve adjustments | 15 | 19 |
Guaranteed Minimum Income Benefit [Member] | ' | ' |
Guaranteed Minimum Benefits [Line Items] | ' | ' |
Net premiums earned | 36 | 39 |
Policy benefits and other reserve adjustments | 9 | 9 |
Net realized gains (losses) | -50 | 369 |
Gain (loss) recognized in income | -23 | 399 |
Net cash received | 33 | 32 |
Net (increase) decrease in liability | ($56) | $367 |
Recovered_Sheet2
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Narrative) (Detail) (USD $) | 3 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Guaranteed Minimum Death Benefit [Member] | Guaranteed Minimum Death Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | Guaranteed Minimum Deaths Benefits And Guaranteed Living Benefits [Member] | Guaranteed Minimum Deaths Benefits And Guaranteed Living Benefits [Member] | Guaranteed Living Benefits [Member] | Guaranteed Living Benefits [Member] | ||
Guaranteed Minimum Benefits [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reported liabilities | ' | $104 | $100 | $483 | $427 | $1,000 | $1,400 | ' | ' | ' | ' |
Fair value derivative adjustment in liability | ' | ' | ' | 243 | 193 | ' | ' | ' | ' | ' | ' |
Net amount at risk | ' | 645 | 586 | ' | ' | ' | ' | ' | ' | 163 | 136 |
Mortality percentage according to Annuity 2000 mortality table | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Discounting assumption used in the calculation of the benefit reserve averaging - lower range | ' | 1.50% | ' | ' | ' | ' | ' | 3.00% | ' | 3.50% | ' |
Discounting assumption used in the calculation of the benefit reserve averaging - upper range | ' | 2.50% | ' | ' | ' | ' | ' | 4.00% | ' | 4.50% | ' |
Total claim amount payable, if all of the Company's cedants' policyholders covered were to die immediately | ' | 666 | ' | ' | ' | ' | ' | 93 | ' | ' | ' |
GMBD net amount of risk | ' | ' | ' | ' | ' | ' | ' | 73 | ' | ' | ' |
GLB net amount of risk | ' | ' | ' | ' | ' | ' | ' | $158 | $141 | ' | ' |
Average attained age of all policyholders under all benefits reinsured, years | '68 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet3
Commitments, Contingencies, And Guarantees (Balance Sheet Locations, Fair Values In Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Foreign Exchange Future [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Value/Payment Provision | $1,469 | $1,202 | ||
Cross Currency Swap [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Value/Payment Provision | 50 | 50 | ||
Futures Contracts On Money Market Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Value/Payment Provision | 3,910 | 3,910 | ||
Futures contracts on notes and bonds [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Value/Payment Provision | 903 | 871 | ||
Convertibles and Bonds with Warrants Attached [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Value/Payment Provision | 272 | 254 | ||
Investment And Embedded Derivative Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 327 | 321 | ||
Notional Value/Payment Provision | 6,604 | 6,287 | ||
Single-Stock Future [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | ' | 0 | [1] | |
Notional Value/Payment Provision | 1,453 | [1] | 1,692 | [1] |
Options On Equity Market Indices [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | ' | 6 | [1] | |
Notional Value/Payment Provision | 250 | [1] | 250 | [1] |
Other Derivatives [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Value/Payment Provision | 64 | 8 | ||
Other Derivative Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Value/Payment Provision | 1,767 | 1,950 | ||
Guaranteed Living Benefits [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | ' | 0 | [2] | |
Notional Value/Payment Provision | 321 | [2] | 277 | [2] |
Other Assets [Member] | Foreign Exchange Future [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 2 | 3 | ||
Other Assets [Member] | Futures Contracts On Money Market Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 4 | 3 | ||
Other Assets [Member] | Futures contracts on notes and bonds [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 2 | 13 | ||
Other Assets [Member] | Single-Stock Future [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 0 | [1] | ' | |
Other Assets [Member] | Options On Equity Market Indices [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 0 | [1] | ' | |
Other Assets [Member] | Other Derivatives [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 7 | ' | ||
Other Assets [Member] | Other Derivative Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 7 | 6 | ||
Other Assets [Member] | Guaranteed Living Benefits [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 0 | [2] | ' | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Foreign Exchange Future [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | -4 | -4 | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Futures Contracts On Money Market Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 0 | 0 | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Futures contracts on notes and bonds [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | -2 | -2 | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Investment And Embedded Derivative Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | -6 | -6 | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Single-Stock Future [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | -12 | [1] | -60 | [1] |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Options On Equity Market Indices [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 0 | [1] | 0 | [1] |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivatives [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | -2 | -2 | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivative Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | -14 | -62 | ||
Fixed Maturities Available For Sale [Member] | Convertibles and Bonds with Warrants Attached [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | 319 | 302 | ||
Accounts Payable Future Policy Benefits [Member] | Guaranteed Living Benefits [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value | ($483) | [2] | ($427) | [2] |
[1] | (2)Â Related to GMDB and GLB blocks of business. | |||
[2] | (3)Â Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts. |
Recovered_Sheet4
Commitments, Contingencies, And Guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Net realized gains (losses) | ($94) | $96 | ' | |||
Foreign Exchange Future [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Notional Value Payment Provision | 1,469 | ' | 1,202 | |||
Net realized gains (losses) | -3 | 5 | ' | |||
All Other Futures Contracts And Options [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Net realized gains (losses) | -22 | 7 | ' | |||
Convertibles and Bonds with Warrants Attached [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Notional Value Payment Provision | 272 | ' | 254 | |||
Net realized gains (losses) | 0 | 6 | ' | |||
Investment And Embedded Derivative Instruments [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | 327 | ' | 321 | |||
Derivative Instruments Notional Value Payment Provision | 6,604 | ' | 6,287 | |||
Net realized gains (losses) | -25 | 18 | ' | |||
Guaranteed Living Benefits [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | ' | ' | 0 | [1] | ||
Derivative Instruments Notional Value Payment Provision | 321 | [1] | ' | 277 | [1] | |
Net realized gains (losses) | -48 | [2] | 328 | [2] | ' | |
Single-Stock Future [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | ' | ' | 0 | [3] | ||
Derivative Instruments Notional Value Payment Provision | 1,453 | [3] | ' | 1,692 | [3] | |
Net realized gains (losses) | -17 | [4] | -237 | [4] | ' | |
Options On Equity Market Indices [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | ' | ' | 6 | [3] | ||
Derivative Instruments Notional Value Payment Provision | 250 | [3] | ' | 250 | [3] | |
Net realized gains (losses) | -2 | [4] | -13 | [4] | ' | |
Guaranteed Living Benefit And Other Derivative Instruments [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Net realized gains (losses) | -69 | 78 | ' | |||
Other Derivatives [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Notional Value Payment Provision | 64 | ' | 8 | |||
Net realized gains (losses) | -2 | 0 | ' | |||
Balance Sheet Location Fixed Maturities Available For Sale [Member] | Convertibles and Bonds with Warrants Attached [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | 319 | ' | 302 | |||
Balance Sheet Location Accounts Payable [Member] | Foreign Exchange Future [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | -4 | ' | -4 | |||
Balance Sheet Location Accounts Payable [Member] | Investment And Embedded Derivative Instruments [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | -6 | ' | -6 | |||
Balance Sheet Location Accounts Payable [Member] | Single-Stock Future [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | -12 | [3] | ' | -60 | [3] | |
Balance Sheet Location Accounts Payable [Member] | Options On Equity Market Indices [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | 0 | [3] | ' | 0 | [3] | |
Balance Sheet Location Accounts Payable [Member] | Other Derivatives [Member] | ' | ' | ' | |||
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' | |||
Derivative Instruments Fair Value | ($2) | ' | ($2) | |||
[1] | (3)Â Includes both future policy benefits reserves and fair value derivative adjustment. Refer to Note 5 for additional information. Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts. | |||||
[2] | Excludes foreign exchange gains (losses) related to GLB. | |||||
[3] | (2)Â Related to GMDB and GLB blocks of business. | |||||
[4] | Related to GMDB and GLB blocks of business. |
Commitments_Contingencies_And_2
Commitments, Contingencies, And Guarantees (Narrative) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Carrying value of limited partnerships and partially-owned investment companies included in other investments | $2,000,000,000 | ' |
Funding commitments relating to limited partnerships and partially-owned investment companies | 1,000,000,000 | ' |
Derivative asset subject to a master netting agreement | 10,000,000 | 41,000,000 |
Repurchase obligations | 1,401,000,000 | 1,401,000,000 |
Securities lending payable | 1,551,000,000 | 1,633,000,000 |
Securities lending collateral | 1,550,000,000 | 1,632,000,000 |
Unrecognized tax benefits | $26,000,000 | ' |
Shareholders_Equity_Detail
Shareholders' Equity (Detail) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Mar. 31, 2014 | 1-May-14 | |
USD ($) | CHF | CHF | November 2013 Stock Repurchase Plan [Member] | November 2013 Stock Repurchase Plan [Member] | November 2013 Stock Repurchase Plan [Member] | |
USD ($) | USD ($) | Subsequent Event [Member] | ||||
USD ($) | ||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Share repurchase amount | ' | ' | ' | ' | $332,000,000 | $53,000,000 |
Repurchase of outstanding common shares, shares | ' | ' | ' | ' | 3,487,882 | 531,000 |
Share repurchase authorization remains | ' | ' | ' | ' | 1,610,000,000 | 1,560,000,000 |
Common Shares in treasury, shares | 4,857,768 | 4,857,768 | 3,038,477 | ' | ' | ' |
Stock repurchase program, authorized amount | ' | ' | ' | $2,000,000,000 | ' | ' |
Increase to dividend approved by shareholders in January | $0.12 | ' | ' | ' | ' | ' |
Dividends declared per common share | $0.75 | 0.65 | ' | ' | ' | ' |
Par Value Reduction | $0.51 | 0.45 | ' | ' | ' | ' |
Common Shares, par value | ' | 26.59 | 27.04 | ' | ' | ' |
ShareBased_Compensation_Detail
Share-Based Compensation (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2014 | Feb. 27, 2014 | Feb. 27, 2014 | Feb. 27, 2014 | |
Stock Options [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock option vesting period in years | '3 years | ' | ' | ' |
Stock option term in years | '10 years | ' | ' | ' |
Stock options granted | ' | 1,779,074 | ' | ' |
Weighted-average grant date fair value for stock options granted | ' | $18 | ' | ' |
Restricted stock award and units vesting period in years | '4 years | ' | ' | ' |
Restricted stock awards granted to employees and officers of the company | ' | ' | 1,492,290 | ' |
Restricted stock units awarded to employees and officers of the company | ' | ' | ' | 276,992 |
Grant date fair value of awards except for options granted to employees and officers of the company | ' | ' | $96.76 | $96.76 |
Segment_Information_Operations
Segment Information (Operations By Segment) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Net premiums written | $4,185 | $3,798 |
Net premiums earned | 3,970 | 3,573 |
Losses and loss expenses | 2,161 | 1,926 |
Policy benefits | 114 | 131 |
Policy acquisition costs | 728 | 614 |
Administrative expenses | 535 | 514 |
Underwriting income (loss) | 432 | 388 |
Net investment income | 553 | 531 |
Net realized gains (losses) including OTTI | -104 | 206 |
Interest expense | 71 | 60 |
(Gains) losses from fair value changes in separate account assets | 6 | -4 |
Other | -23 | -6 |
Other (income) expense | -17 | -10 |
Income tax expense (benefit) | 93 | 122 |
Net income (loss) | 734 | 953 |
Insurance - North American P&C [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net premiums written | 1,418 | 1,284 |
Net premiums earned | 1,487 | 1,338 |
Losses and loss expenses | 940 | 878 |
Policy acquisition costs | 159 | 143 |
Administrative expenses | 161 | 125 |
Underwriting income (loss) | 227 | 192 |
Net investment income | 270 | 251 |
Net realized gains (losses) including OTTI | -9 | 26 |
Interest expense | 3 | -2 |
Other | -20 | -15 |
Income tax expense (benefit) | 83 | 94 |
Net income (loss) | 422 | 392 |
Insurance - North American Agriculture [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Underwriting Income Including Losses Related to Crop Derivatives | -31 | ' |
Net premiums written | 194 | 113 |
Net premiums earned | 103 | 52 |
Losses and loss expenses | 126 | 32 |
Policy acquisition costs | 5 | 4 |
Administrative expenses | 1 | 5 |
Underwriting income (loss) | -29 | 11 |
Net investment income | 7 | 6 |
Net realized gains (losses) including OTTI | -2 | 0 |
Interest expense | 0 | 0 |
Other | 8 | 8 |
Income tax expense (benefit) | -7 | 2 |
Net income (loss) | -25 | 7 |
Crop Derivative Reclassification | 2 | ' |
Insurance - Overseas General [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net premiums written | 1,771 | 1,620 |
Net premiums earned | 1,612 | 1,459 |
Losses and loss expenses | 817 | 747 |
Policy acquisition costs | 386 | 339 |
Administrative expenses | 250 | 236 |
Underwriting income (loss) | 159 | 137 |
Net investment income | 132 | 132 |
Net realized gains (losses) including OTTI | -10 | 34 |
Interest expense | 1 | 1 |
Other | -6 | -1 |
Income tax expense (benefit) | 37 | 46 |
Net income (loss) | 249 | 257 |
Global Reinsurance [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net premiums written | 308 | 279 |
Net premiums earned | 284 | 247 |
Losses and loss expenses | 126 | 106 |
Policy acquisition costs | 67 | 48 |
Administrative expenses | 14 | 12 |
Underwriting income (loss) | 77 | 81 |
Net investment income | 77 | 72 |
Net realized gains (losses) including OTTI | -8 | 20 |
Interest expense | 1 | 1 |
Other | -19 | -8 |
Income tax expense (benefit) | 10 | 8 |
Net income (loss) | 154 | 172 |
Life [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Life underwriting income | 98 | ' |
Net premiums written | 494 | 502 |
Net premiums earned | 484 | 477 |
Losses and loss expenses | 151 | 157 |
Policy benefits | 114 | 131 |
Policy acquisition costs | 111 | 80 |
Administrative expenses | 68 | 85 |
Underwriting income (loss) | 40 | 24 |
Net investment income | 64 | 63 |
Net realized gains (losses) including OTTI | -76 | 127 |
Interest expense | 3 | 4 |
(Gains) losses from fair value changes in separate account assets | 6 | -4 |
Other | 7 | 0 |
Income tax expense (benefit) | 10 | 13 |
Net income (loss) | 2 | 201 |
Corporate And Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Losses and loss expenses | 1 | 6 |
Policy acquisition costs | ' | 0 |
Administrative expenses | 41 | 51 |
Underwriting income (loss) | -42 | -57 |
Net investment income | 3 | 7 |
Net realized gains (losses) including OTTI | 1 | -1 |
Interest expense | 63 | 56 |
Other | 7 | 10 |
Income tax expense (benefit) | -40 | -41 |
Net income (loss) | ($68) | ($76) |
Segment_Information_Net_Premiu
Segment Information (Net Premiums Earned For Segment By Product) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Property & All Other | $1,355 | $1,119 |
Casualty | 1,480 | 1,353 |
Life, Accident & Health | 1,135 | 1,101 |
Net premiums earned | 3,970 | 3,573 |
Insurance - North American P&C [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property & All Other | 405 | 347 |
Casualty | 981 | 902 |
Life, Accident & Health | 101 | 89 |
Net premiums earned | 1,487 | 1,338 |
Insurance - North American Agriculture [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property & All Other | 103 | 52 |
Casualty | 0 | 0 |
Life, Accident & Health | 0 | 0 |
Net premiums earned | 103 | 52 |
Insurance - Overseas General [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property & All Other | 693 | 585 |
Casualty | 369 | 339 |
Life, Accident & Health | 550 | 535 |
Net premiums earned | 1,612 | 1,459 |
Global Reinsurance [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property & All Other | 154 | 135 |
Casualty | 130 | 112 |
Net premiums earned | 284 | 247 |
Life [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Life, Accident & Health | 484 | 477 |
Net premiums earned | $484 | $477 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $734 | $953 |
Weighted-average shares outstanding | 338,869,562 | 340,778,142 |
Share-based compensation plans | 3,171,174 | 3,128,226 |
Adjusted weighted-average shares outstanding and assumed conversions | 342,040,736 | 343,906,368 |
Basic earnings per share (US$ per share) | $2.16 | $2.80 |
Diluted earnings per share (US$ per share) | $2.14 | $2.77 |
Potential anti-dilutive share conversions | 657,182 | 634,385 |
Recovered_Sheet5
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||||
In Millions, unless otherwise specified | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Investments | $62,045 | $60,928 | ' | ' | ||||
Insurance and reinsurance balances receivable | 4,761 | 5,026 | ' | ' | ||||
Reinsurance recoverable on losses and loss expenses | 10,755 | 11,227 | ' | ' | ||||
Reinsurance recoverable on policy benefits | 222 | 218 | ' | ' | ||||
Value of business acquired | 517 | 536 | ' | ' | ||||
Goodwill and other intangible assets | 5,382 | 5,404 | ' | ' | ||||
Other assets | 10,650 | 10,592 | ' | ' | ||||
Total assets | 95,179 | 94,510 | ' | ' | ||||
Unpaid losses and loss expenses | 36,866 | 37,443 | ' | ' | ||||
Unearned premiums | 7,791 | 7,539 | ' | ' | ||||
Future policy benefits | 4,632 | 4,615 | ' | ' | ||||
Short-term debt | 1,901 | 1,901 | ' | ' | ||||
Long-term debt | 3,808 | 3,807 | ' | ' | ||||
Trust preferred securities | 309 | 309 | ' | ' | ||||
Other liabilities | 10,503 | 10,071 | ' | ' | ||||
Total liabilities | 65,810 | 65,685 | ' | ' | ||||
Total shareholders' equity | 29,369 | 28,825 | 27,942 | ' | ||||
Total liabilities and shareholders’ equity | 95,179 | 94,510 | ' | ' | ||||
Cash | 847 | [1],[2] | 579 | [2],[3] | 855 | [4] | 615 | [4] |
Scenario, Previously Reported [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Cash | ' | ' | 855 | [5] | 615 | |||
ACE Limited (Parent Guarantor) | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Investments | 32 | 32 | ' | ' | ||||
Investments in subsidiaries | 29,075 | 28,351 | ' | ' | ||||
Due from subsidiaries and affiliates, net | 487 | 844 | ' | ' | ||||
Other assets | 3 | 5 | ' | ' | ||||
Total assets | 29,622 | 29,232 | ' | ' | ||||
Affiliated notional cash pooling programs | 0 | [1] | 185 | [1] | ' | ' | ||
Trust preferred securities | ' | 0 | ' | ' | ||||
Other liabilities | 253 | 222 | ' | ' | ||||
Total liabilities | 253 | 407 | ' | ' | ||||
Total shareholders' equity | 29,369 | 28,825 | ' | ' | ||||
Total liabilities and shareholders’ equity | 29,622 | 29,232 | ' | ' | ||||
Cash | 25 | [1],[2] | 0 | [2],[3] | 197 | [4] | 103 | [4] |
ACE Limited (Parent Guarantor) | Scenario, Previously Reported [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Cash | ' | ' | 197 | [5] | 103 | |||
ACE INA Holdings Inc (Subsidiary Issuer) | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Investments | 18 | 10 | ' | ' | ||||
Insurance and reinsurance balances receivable | 0 | 0 | ' | ' | ||||
Reinsurance recoverable on losses and loss expenses | 0 | 0 | ' | ' | ||||
Reinsurance recoverable on policy benefits | 0 | 0 | ' | ' | ||||
Value of business acquired | 0 | 0 | ' | ' | ||||
Goodwill and other intangible assets | 0 | 0 | ' | ' | ||||
Investments in subsidiaries | 18,368 | 18,105 | ' | ' | ||||
Other assets | 256 | 258 | ' | ' | ||||
Total assets | 18,643 | 18,389 | ' | ' | ||||
Unpaid losses and loss expenses | 0 | 0 | ' | ' | ||||
Unearned premiums | 0 | 0 | ' | ' | ||||
Future policy benefits | 0 | 0 | ' | ' | ||||
Due to subsidiaries and affiliates, net | 367 | 714 | ' | ' | ||||
Short-term debt | 500 | 500 | ' | ' | ||||
Affiliated notional cash pooling programs | 385 | [1] | 0 | [1] | ' | ' | ||
Long-term debt | 3,795 | 3,795 | ' | ' | ||||
Trust preferred securities | 309 | 309 | ' | ' | ||||
Other liabilities | 1,343 | 1,318 | ' | ' | ||||
Total liabilities | 6,699 | 6,636 | ' | ' | ||||
Total shareholders' equity | 11,944 | 11,753 | ' | ' | ||||
Total liabilities and shareholders’ equity | 18,643 | 18,389 | ' | ' | ||||
Cash | 1 | [1],[2] | 16 | [2],[3] | 489 | [4] | 2 | [4] |
ACE INA Holdings Inc (Subsidiary Issuer) | Scenario, Previously Reported [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Cash | ' | ' | 560 | [5] | 515 | |||
Other ACE Limited Subsidiaries | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Investments | 61,995 | 60,886 | ' | ' | ||||
Insurance and reinsurance balances receivable | 5,540 | 5,835 | ' | ' | ||||
Reinsurance recoverable on losses and loss expenses | 19,531 | 20,057 | ' | ' | ||||
Reinsurance recoverable on policy benefits | 1,210 | 1,215 | ' | ' | ||||
Value of business acquired | 517 | 536 | ' | ' | ||||
Goodwill and other intangible assets | 5,382 | 5,404 | ' | ' | ||||
Other assets | 13,956 | 13,788 | ' | ' | ||||
Total assets | 109,337 | 108,469 | ' | ' | ||||
Unpaid losses and loss expenses | 45,173 | 45,714 | ' | ' | ||||
Unearned premiums | 9,584 | 9,242 | ' | ' | ||||
Future policy benefits | 5,620 | 5,612 | ' | ' | ||||
Due to subsidiaries and affiliates, net | 120 | 130 | ' | ' | ||||
Short-term debt | 1,401 | 1,401 | ' | ' | ||||
Affiliated notional cash pooling programs | 0 | [1] | 0 | [1] | ' | ' | ||
Long-term debt | 13 | 12 | ' | ' | ||||
Trust preferred securities | ' | 0 | ' | ' | ||||
Other liabilities | 11,927 | 11,655 | ' | ' | ||||
Total liabilities | 73,838 | 73,766 | ' | ' | ||||
Total shareholders' equity | 35,499 | 34,703 | ' | ' | ||||
Total liabilities and shareholders’ equity | 109,337 | 108,469 | ' | ' | ||||
Cash | 1,206 | [1],[2] | 748 | [2],[3] | 169 | [4] | 859 | [4] |
Other ACE Limited Subsidiaries | Scenario, Previously Reported [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Cash | ' | ' | 98 | [5],[6] | -3 | [6] | ||
Consolidating Adjustments and Eliminations | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Investments | 0 | 0 | ' | ' | ||||
Insurance and reinsurance balances receivable | -779 | -809 | ' | ' | ||||
Reinsurance recoverable on losses and loss expenses | -8,776 | -8,830 | ' | ' | ||||
Reinsurance recoverable on policy benefits | -988 | -997 | ' | ' | ||||
Value of business acquired | 0 | 0 | ' | ' | ||||
Goodwill and other intangible assets | 0 | 0 | ' | ' | ||||
Investments in subsidiaries | -47,443 | -46,456 | ' | ' | ||||
Due from subsidiaries and affiliates, net | -487 | -844 | ' | ' | ||||
Other assets | -3,565 | -3,459 | ' | ' | ||||
Total assets | -62,423 | -61,580 | ' | ' | ||||
Unpaid losses and loss expenses | -8,307 | -8,271 | ' | ' | ||||
Unearned premiums | -1,793 | -1,703 | ' | ' | ||||
Future policy benefits | -988 | -997 | ' | ' | ||||
Due to subsidiaries and affiliates, net | -487 | -844 | ' | ' | ||||
Short-term debt | 0 | 0 | ' | ' | ||||
Affiliated notional cash pooling programs | -385 | [1] | -185 | [1] | ' | ' | ||
Long-term debt | ' | 0 | ' | ' | ||||
Trust preferred securities | ' | 0 | ' | ' | ||||
Other liabilities | -3,020 | -3,124 | ' | ' | ||||
Total liabilities | -14,980 | -15,124 | ' | ' | ||||
Total shareholders' equity | -47,443 | -46,456 | ' | ' | ||||
Total liabilities and shareholders’ equity | -62,423 | -61,580 | ' | ' | ||||
Cash | -385 | [1],[2] | -185 | [2],[3] | 0 | [4] | -349 | [4] |
Consolidating Adjustments and Eliminations | Scenario, Previously Reported [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Cash | ' | ' | $0 | [5],[7] | $0 | [7] | ||
[1] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||
[2] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||
[3] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||
[4] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||
[5] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||
[6] | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | |||||||
[7] | Includes ACE Limited parent company eliminations and certain consolidating adjustments. |
Recovered_Sheet6
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Net premiums written | $4,185 | $3,798 | |
Net premiums earned | 3,970 | 3,573 | |
Net investment income | 553 | 531 | |
Net realized gains (losses) including OTTI | -104 | 206 | |
Losses and loss expenses | 2,161 | 1,926 | |
Policy benefits | 114 | 131 | |
Policy acquisition costs and administrative expenses | 1,263 | 1,128 | |
Interest (income) expense | 71 | 60 | |
Other (income) expense | -17 | -10 | |
Income tax expense (benefit) | 93 | 122 | |
Net income (loss) | 734 | 953 | |
Comprehensive income (loss) | 1,108 | 716 | |
ACE Limited (Parent Guarantor) | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Net investment income | 0 | 0 | |
Equity in earnings of subsidiaries | 702 | 914 | |
Net realized gains (losses) including OTTI | 0 | 12 | |
Policy acquisition costs and administrative expenses | 17 | 15 | |
Interest (income) expense | -10 | -7 | |
Other (income) expense | -42 | -38 | |
Income tax expense (benefit) | 3 | 3 | |
Net income (loss) | 734 | 953 | |
Comprehensive income (loss) | 1,108 | 716 | |
ACE INA Holdings Inc (Subsidiary Issuer) | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Net premiums written | 0 | 0 | |
Net premiums earned | 0 | 0 | |
Net investment income | 0 | 1 | |
Equity in earnings of subsidiaries | 180 | 188 | |
Net realized gains (losses) including OTTI | -1 | 0 | |
Losses and loss expenses | 0 | 0 | |
Policy benefits | 0 | 0 | |
Policy acquisition costs and administrative expenses | 6 | 4 | |
Interest (income) expense | 71 | 62 | |
Other (income) expense | 14 | 9 | |
Income tax expense (benefit) | -30 | -33 | |
Net income (loss) | 118 | 147 | |
Comprehensive income (loss) | 266 | -1 | |
Other ACE Limited Subsidiaries | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Net premiums written | 4,185 | 3,798 | |
Net premiums earned | 3,970 | 3,573 | |
Net investment income | 553 | 530 | |
Net realized gains (losses) including OTTI | -103 | 194 | |
Losses and loss expenses | 2,161 | 1,926 | |
Policy benefits | 114 | 131 | |
Policy acquisition costs and administrative expenses | 1,240 | 1,109 | |
Interest (income) expense | 10 | 5 | |
Other (income) expense | 11 | 19 | |
Income tax expense (benefit) | 120 | 152 | |
Net income (loss) | 764 | 955 | |
Comprehensive income (loss) | 1,138 | 718 | |
Consolidating Adjustments and Eliminations | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Equity in earnings of subsidiaries | -882 | -1,102 | |
Net income (loss) | -882 | -1,102 | |
Comprehensive income (loss) | -1,404 | -717 | |
Scenario, Previously Reported [Member] | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Net premiums written | ' | 3,798 | |
Net premiums earned | ' | 3,573 | |
Net investment income | ' | 531 | |
Net realized gains (losses) including OTTI | ' | 206 | |
Losses and loss expenses | ' | 1,926 | |
Policy benefits | ' | 131 | |
Policy acquisition costs and administrative expenses | ' | 1,128 | |
Interest (income) expense | ' | 60 | |
Other (income) expense | ' | -10 | |
Income tax expense (benefit) | ' | 122 | |
Net income (loss) | ' | 953 | |
Comprehensive income (loss) | ' | 716 | |
Scenario, Previously Reported [Member] | ACE Limited (Parent Guarantor) | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Net investment income | ' | 0 | |
Equity in earnings of subsidiaries | ' | 914 | |
Net realized gains (losses) including OTTI | ' | 12 | |
Policy acquisition costs and administrative expenses | ' | 15 | |
Interest (income) expense | ' | -7 | |
Other (income) expense | ' | -38 | |
Income tax expense (benefit) | ' | 3 | |
Net income (loss) | ' | 953 | |
Comprehensive income (loss) | ' | 716 | |
Scenario, Previously Reported [Member] | ACE INA Holdings Inc (Subsidiary Issuer) | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Net premiums written | ' | 2,082 | |
Net premiums earned | ' | 2,006 | |
Net investment income | ' | 248 | |
Equity in earnings of subsidiaries | ' | 0 | |
Net realized gains (losses) including OTTI | ' | 10 | |
Losses and loss expenses | ' | 1,253 | |
Policy benefits | ' | 81 | |
Policy acquisition costs and administrative expenses | ' | 626 | |
Interest (income) expense | ' | 67 | |
Other (income) expense | ' | 34 | |
Income tax expense (benefit) | ' | 56 | |
Net income (loss) | ' | 147 | |
Comprehensive income (loss) | ' | -1 | |
Scenario, Previously Reported [Member] | Other ACE Limited Subsidiaries | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Net premiums written | ' | 1,716 | [1] |
Net premiums earned | ' | 1,567 | [1] |
Net investment income | ' | 283 | [1] |
Net realized gains (losses) including OTTI | ' | 184 | [1] |
Losses and loss expenses | ' | 673 | [1] |
Policy benefits | ' | 50 | [1] |
Policy acquisition costs and administrative expenses | ' | 487 | [1] |
Interest (income) expense | ' | 0 | [1] |
Other (income) expense | ' | -6 | [1] |
Income tax expense (benefit) | ' | 63 | [1] |
Net income (loss) | ' | 767 | [1] |
Comprehensive income (loss) | ' | 915 | [1] |
Scenario, Previously Reported [Member] | Consolidating Adjustments and Eliminations | ' | ' | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | |
Equity in earnings of subsidiaries | ' | -914 | [2] |
Net income (loss) | ' | -914 | [2] |
Comprehensive income (loss) | ' | ($914) | [2] |
[1] | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | ||
[2] | Includes ACE Limited parent company eliminations. |
Information_Provided_In_Connec2
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | $1,250 | $913 | ||
Purchases of fixed maturities available for sale | -3,522 | -5,465 | ||
Purchases of fixed maturities held to maturity | -30 | -142 | ||
Purchases of equity securities | -37 | -107 | ||
Sales of fixed maturities available for sale | 2,208 | 2,764 | ||
Sales of equity securities | 27 | 31 | ||
Maturities and redemptions of fixed maturities available for sale | 1,550 | 2,016 | ||
Maturities and redemptions of fixed maturities held to maturity | 212 | 491 | ||
Payments to Acquire Short-term Investments | -765 | -687 | ||
Net derivative instruments settlements | -96 | -279 | ||
Acquisition of subsidiaries | 0 | -33 | ||
Other | -50 | -55 | ||
Net cash flows used for investing activities | -503 | -1,466 | ||
Dividends paid on Common Shares | -214 | -2 | ||
Common Shares repurchased | -335 | -154 | ||
Proceeds from issuance of long-term debt | 0 | 947 | ||
Net proceeds from (repayments) issuance of short-term debt | ' | 1 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 40 | 21 | ||
Other | 37 | 0 | ||
Net cash flows (used for) from financing activities | -472 | 813 | ||
Effect of foreign currency rate changes on cash and cash equivalents | -7 | -20 | ||
Net increase in cash | 268 | 240 | ||
Cash – beginning of period | 579 | [1],[2] | 615 | [3] |
Cash – end of period | 847 | [1],[4] | 855 | [3] |
ACE Limited (Parent Guarantor) | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | 57 | 25 | ||
Sales of fixed maturities available for sale | ' | 0 | ||
Net derivative instruments settlements | 0 | 0 | ||
Net cash flows used for investing activities | 0 | 0 | ||
Dividends paid on Common Shares | -214 | -2 | ||
Net proceeds from (repayments) issuance of short-term debt | ' | 0 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 0 | 0 | ||
Advances (to) from affiliates | 367 | 71 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | -185 | [1] | 0 | [3] |
Net cash flows (used for) from financing activities | -32 | 69 | ||
Net increase in cash | 25 | 94 | ||
Cash – beginning of period | 0 | [1],[2] | 103 | [3] |
Cash – end of period | 25 | [1],[4] | 197 | [3] |
ACE INA Holdings Inc (Subsidiary Issuer) | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | -13 | -19 | ||
Purchases of fixed maturities available for sale | 0 | 0 | ||
Purchases of fixed maturities held to maturity | 0 | 0 | ||
Purchases of equity securities | 0 | 0 | ||
Sales of fixed maturities available for sale | 0 | 0 | ||
Sales of equity securities | 0 | 0 | ||
Maturities and redemptions of fixed maturities available for sale | 0 | 0 | ||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||
Proceeds from Sale of Short-term Investments | ' | 4 | ||
Payments to Acquire Short-term Investments | -8 | ' | ||
Net derivative instruments settlements | -9 | 0 | ||
Acquisition of subsidiaries | ' | 0 | ||
Payment Of Contributions To Subsidiary | ' | -27 | ||
Other | -3 | 2 | ||
Net cash flows used for investing activities | -20 | -21 | ||
Proceeds from issuance of long-term debt | ' | 947 | ||
Net proceeds from (repayments) issuance of short-term debt | ' | 0 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 0 | ' | ||
Advances (to) from affiliates | -367 | -71 | ||
Capital contribution | ' | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 385 | [1] | -349 | [3] |
Other | 0 | ' | ||
Net cash flows (used for) from financing activities | 18 | 527 | ||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash | -15 | 487 | ||
Cash – beginning of period | 16 | [1],[2] | 2 | [3] |
Cash – end of period | 1 | [1],[4] | 489 | [3] |
Other ACE Limited Subsidiaries | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | 1,206 | 907 | ||
Purchases of fixed maturities available for sale | -3,522 | -5,568 | ||
Purchases of fixed maturities held to maturity | -30 | -142 | ||
Purchases of equity securities | -37 | -107 | ||
Sales of fixed maturities available for sale | 2,208 | 2,867 | ||
Sales of equity securities | 27 | 31 | ||
Maturities and redemptions of fixed maturities available for sale | 1,550 | 2,016 | ||
Maturities and redemptions of fixed maturities held to maturity | 212 | 491 | ||
Payments to Acquire Short-term Investments | -757 | -691 | ||
Net derivative instruments settlements | -87 | -279 | ||
Acquisition of subsidiaries | ' | -33 | ||
Payment Of Contributions To Subsidiary | ' | 0 | ||
Other | -47 | -57 | ||
Net cash flows used for investing activities | -483 | -1,472 | ||
Dividends paid on Common Shares | 0 | ' | ||
Common Shares repurchased | -335 | -154 | ||
Net proceeds from (repayments) issuance of short-term debt | ' | 1 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 40 | 21 | ||
Advances (to) from affiliates | 0 | 0 | ||
Cash Dividends Paid to Parent Company | ' | 0 | ||
Capital contribution | ' | 27 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | [1] | 0 | [3] |
Other | 37 | ' | ||
Net cash flows (used for) from financing activities | -258 | -105 | ||
Effect of foreign currency rate changes on cash and cash equivalents | -7 | -20 | ||
Net increase in cash | 458 | -690 | ||
Cash – beginning of period | 748 | [1],[2] | 859 | [3] |
Cash – end of period | 1,206 | [1],[4] | 169 | [3] |
Consolidating Adjustments and Eliminations | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | 0 | 0 | ||
Purchases of fixed maturities available for sale | 0 | 103 | ||
Purchases of fixed maturities held to maturity | 0 | 0 | ||
Purchases of equity securities | 0 | 0 | ||
Sales of fixed maturities available for sale | 0 | -103 | ||
Sales of equity securities | 0 | 0 | ||
Maturities and redemptions of fixed maturities available for sale | 0 | 0 | ||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||
Net derivative instruments settlements | 0 | 0 | ||
Acquisition of subsidiaries | ' | 0 | ||
Payment Of Contributions To Subsidiary | ' | 27 | ||
Other | 0 | 0 | ||
Net cash flows used for investing activities | 0 | 27 | ||
Dividends paid on Common Shares | 0 | ' | ||
Common Shares repurchased | 0 | 0 | ||
Net proceeds from (repayments) issuance of short-term debt | ' | 0 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 0 | 0 | ||
Advances (to) from affiliates | 0 | 0 | ||
Cash Dividends Paid to Parent Company | ' | 0 | ||
Capital contribution | ' | -27 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | -200 | [1] | 349 | [3] |
Net cash flows (used for) from financing activities | -200 | 322 | ||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash | -200 | 349 | ||
Cash – beginning of period | -185 | [1],[2] | -349 | [3] |
Cash – end of period | -385 | [1],[4] | 0 | [3] |
Scenario, Previously Reported [Member] | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | ' | 913 | ||
Purchases of fixed maturities available for sale | ' | -6,152 | ||
Purchases of fixed maturities held to maturity | ' | -142 | ||
Purchases of equity securities | ' | -107 | ||
Sales of fixed maturities available for sale | ' | 2,764 | ||
Sales of equity securities | ' | 31 | ||
Maturities and redemptions of fixed maturities available for sale | ' | 2,016 | ||
Maturities and redemptions of fixed maturities held to maturity | ' | 491 | ||
Net derivative instruments settlements | ' | -279 | ||
Acquisition of subsidiaries | ' | -33 | ||
Other | ' | -55 | ||
Net cash flows used for investing activities | ' | -1,466 | ||
Dividends paid on Common Shares | ' | -2 | ||
Common Shares repurchased | ' | -154 | ||
Proceeds from issuance of long-term debt | ' | 947 | ||
Net proceeds from (repayments) issuance of short-term debt | ' | 1 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | ' | 21 | ||
Net cash flows (used for) from financing activities | ' | 813 | ||
Effect of foreign currency rate changes on cash and cash equivalents | ' | -20 | ||
Net increase in cash | ' | 240 | ||
Cash – beginning of period | ' | 615 | ||
Cash – end of period | ' | 855 | [5] | |
Scenario, Previously Reported [Member] | ACE Limited (Parent Guarantor) | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | ' | 53 | ||
Sales of fixed maturities available for sale | ' | 0 | ||
Net derivative instruments settlements | ' | 0 | ||
Payments To From Affiliates | ' | 43 | ||
Net cash flows used for investing activities | ' | 43 | ||
Dividends paid on Common Shares | ' | -2 | ||
Net proceeds from (repayments) issuance of short-term debt | ' | 0 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | ' | 0 | ||
Advances (to) from affiliates | ' | 0 | ||
Net cash flows (used for) from financing activities | ' | -2 | ||
Net increase in cash | ' | 94 | ||
Cash – beginning of period | ' | 103 | ||
Cash – end of period | ' | 197 | [5] | |
Scenario, Previously Reported [Member] | ACE INA Holdings Inc (Subsidiary Issuer) | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | ' | 644 | ||
Purchases of fixed maturities available for sale | ' | -3,825 | ||
Purchases of fixed maturities held to maturity | ' | -137 | ||
Purchases of equity securities | ' | -89 | ||
Sales of fixed maturities available for sale | ' | 1,473 | ||
Sales of equity securities | ' | 25 | ||
Maturities and redemptions of fixed maturities available for sale | ' | 879 | ||
Maturities and redemptions of fixed maturities held to maturity | ' | 351 | ||
Net derivative instruments settlements | ' | 4 | ||
Acquisition of subsidiaries | ' | -33 | ||
Other | ' | -86 | ||
Net cash flows used for investing activities | ' | -1,438 | ||
Proceeds from issuance of long-term debt | ' | 947 | ||
Net proceeds from (repayments) issuance of short-term debt | ' | 0 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | ' | -8 | ||
Advances (to) from affiliates | ' | -71 | ||
Net cash flows (used for) from financing activities | ' | 868 | ||
Effect of foreign currency rate changes on cash and cash equivalents | ' | -29 | ||
Net increase in cash | ' | 45 | ||
Cash – beginning of period | ' | 515 | ||
Cash – end of period | ' | 560 | [5] | |
Scenario, Previously Reported [Member] | Other ACE Limited Subsidiaries | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | ' | 216 | [6] | |
Purchases of fixed maturities available for sale | ' | -2,327 | [6] | |
Purchases of fixed maturities held to maturity | ' | -5 | [6] | |
Purchases of equity securities | ' | -18 | [6] | |
Sales of fixed maturities available for sale | ' | 1,291 | [6] | |
Sales of equity securities | ' | 6 | [6] | |
Maturities and redemptions of fixed maturities available for sale | ' | 1,137 | [6] | |
Maturities and redemptions of fixed maturities held to maturity | ' | 140 | [6] | |
Net derivative instruments settlements | ' | -283 | [6] | |
Acquisition of subsidiaries | ' | 0 | [6] | |
Other | ' | 31 | [6] | |
Net cash flows used for investing activities | ' | -28 | [6] | |
Common Shares repurchased | ' | -154 | [6] | |
Net proceeds from (repayments) issuance of short-term debt | ' | 1 | [6] | |
Proceeds from share-based compensation plans, including windfall tax benefits | ' | 29 | [6] | |
Advances (to) from affiliates | ' | 28 | [6] | |
Net cash flows (used for) from financing activities | ' | -96 | [6] | |
Effect of foreign currency rate changes on cash and cash equivalents | ' | 9 | [6] | |
Net increase in cash | ' | 101 | [6] | |
Cash – beginning of period | ' | -3 | [6] | |
Cash – end of period | ' | 98 | [5],[6] | |
Scenario, Previously Reported [Member] | Consolidating Adjustments and Eliminations | ' | ' | ||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ' | ' | ||
Net cash flows from operating activities | ' | 0 | [7] | |
Purchases of fixed maturities available for sale | ' | 0 | [7] | |
Purchases of fixed maturities held to maturity | ' | 0 | [7] | |
Purchases of equity securities | ' | 0 | [7] | |
Sales of fixed maturities available for sale | ' | 0 | [7] | |
Sales of equity securities | ' | 0 | [7] | |
Maturities and redemptions of fixed maturities available for sale | ' | 0 | [7] | |
Maturities and redemptions of fixed maturities held to maturity | ' | 0 | [7] | |
Net derivative instruments settlements | ' | 0 | [7] | |
Payments To From Affiliates | ' | -43 | [7] | |
Acquisition of subsidiaries | ' | 0 | [7] | |
Other | ' | 0 | [7] | |
Net cash flows used for investing activities | ' | -43 | [7] | |
Common Shares repurchased | ' | 0 | [7] | |
Net proceeds from (repayments) issuance of short-term debt | ' | 0 | [7] | |
Proceeds from share-based compensation plans, including windfall tax benefits | ' | 0 | [7] | |
Advances (to) from affiliates | ' | 43 | [7] | |
Net cash flows (used for) from financing activities | ' | 43 | [7] | |
Effect of foreign currency rate changes on cash and cash equivalents | ' | 0 | [7] | |
Net increase in cash | ' | 0 | [7] | |
Cash – beginning of period | ' | 0 | [7] | |
Cash – end of period | ' | $0 | [5],[7] | |
[1] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[2] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[3] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[4] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[5] | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[6] | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | |||
[7] | Includes ACE Limited parent company eliminations and certain consolidating adjustments. |