Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ACE | |
Entity Registrant Name | ACE Ltd | |
Entity Central Index Key | 896,159 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Common Shares Outstanding | 324,181,471 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |||
Investments [Abstract] | |||||
Fixed maturities available for sale, at fair value (amortized cost - $47,411 and $47,826) (includes hybrid financial instruments of $217 and $274) | $ 48,278 | $ 49,395 | |||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 8,564 | 7,331 | |||
Equity securities, at fair value (cost – $434 and $440) | 464 | 510 | |||
Short-term investments, at fair value and amortized cost | 1,808 | 2,322 | |||
Other investments (cost – $2,943 and $2,999) | 3,270 | 3,346 | |||
Total investments | 62,384 | 62,904 | |||
Cash | [1] | 1,038 | [2] | 655 | [3] |
Securities lending collateral | 1,011 | 1,330 | |||
Accrued investment income | 530 | 552 | |||
Insurance and reinsurance balances receivable | 5,290 | 5,426 | |||
Reinsurance recoverable on losses and loss expenses | 11,231 | 11,992 | |||
Reinsurance recoverable on policy benefits | 194 | 217 | |||
Deferred policy acquisition costs | 2,809 | 2,601 | |||
Value of business acquired | 410 | 466 | |||
Goodwill and other intangible assets | 5,713 | 5,724 | |||
Prepaid reinsurance premiums | 2,059 | 2,026 | |||
Deferred tax assets | 395 | 295 | |||
Investments in partially-owned insurance companies | 654 | 504 | |||
Other assets | 4,042 | 3,556 | |||
Total assets | 97,760 | 98,248 | |||
Liabilities | |||||
Unpaid losses and loss expenses | 37,564 | 38,315 | |||
Unearned premiums | 8,510 | 8,222 | |||
Future policy benefits | 4,776 | 4,754 | |||
Insurance and reinsurance balances payable | 4,225 | 4,095 | |||
Securities lending payable | 1,012 | 1,331 | |||
Accounts payable, accrued expenses, and other liabilities | 5,977 | 5,726 | |||
Short-term debt | 2,103 | 2,552 | |||
Long-term debt | 4,157 | 3,357 | |||
Trust preferred securities | 309 | 309 | |||
Total liabilities | $ 68,633 | $ 68,661 | |||
Commitments and contingencies | |||||
Shareholders’ equity | |||||
Common Shares (CHF 24.15 and CHF 24.77 par value; 342,832,412 shares issued; 324,062,368 and 328,659,686 shares outstanding) | $ 7,833 | $ 8,055 | |||
Common Shares in treasury (18,770,044 and 14,172,726 shares) | (1,974) | (1,448) | |||
Additional paid-in capital | 4,665 | 5,145 | |||
Retained earnings | 18,795 | 16,644 | |||
Accumulated other comprehensive income (loss) (AOCI) | (192) | 1,191 | |||
Total shareholders’ equity | 29,127 | 29,587 | |||
Total liabilities and shareholders’ equity | $ 97,760 | $ 98,248 | |||
[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 September 30, 2015 and December 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 September 30, 2015, 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, 2014, 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) $ in Millions | Sep. 30, 2015USD ($)shares | Dec. 31, 2014USD ($)shares |
Statement of Financial Position [Abstract] | ||
Fixed maturities available for sale, at amortized cost | $ 47,411 | $ 47,826 |
Fixed maturities available for sale, hybrid financial instruments | 217 | 274 |
Fixed maturities held to maturity, at amortized cost | 8,750 | 7,589 |
Equity securities, at cost | 434 | 440 |
Other investments, cost | $ 2,943 | $ 2,999 |
Common Shares, shares issued | shares | 342,832,412 | 342,832,412 |
Common Shares, shares outstanding | shares | 324,062,368 | 328,659,686 |
Common Shares in treasury, shares | shares | 18,770,044 | 14,172,726 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Net premiums written | $ 4,709 | $ 4,729 | $ 13,569 | $ 13,473 |
Decrease (increase) in unearned premiums | 10 | 25 | (563) | (417) |
Net premiums earned | 4,719 | 4,754 | 13,006 | 13,056 |
Net investment income | 549 | 566 | 1,662 | 1,675 |
Net realized gains (losses): | ||||
Other-than-temporary impairment (OTTI) losses gross | (35) | (5) | (62) | (30) |
Portion of OTTI losses recognized in other comprehensive income (OCI) | 5 | 1 | 11 | 3 |
Net OTTI losses recognized in income | (30) | (4) | (51) | (27) |
Net realized gains (losses) excluding OTTI losses | (367) | (116) | (309) | (270) |
Total net realized gains (losses) (includes $(49), $(38), $(18), and $(11) reclassified from AOCI) | (397) | (120) | (360) | (297) |
Total revenues | 4,871 | 5,200 | 14,308 | 14,434 |
Expenses | ||||
Losses and loss expenses | 2,643 | 2,684 | 7,182 | 7,233 |
Policy benefits | 89 | 125 | 384 | 383 |
Policy acquisition costs | 771 | 825 | 2,205 | 2,311 |
Administrative expenses | 568 | 554 | 1,700 | 1,655 |
Interest expense | 68 | 70 | 207 | 213 |
Other (income) expense | 12 | (46) | (61) | (139) |
Amortization of intangible assets | 51 | 27 | 136 | 78 |
Chubb integration expenses | 9 | 0 | 9 | 0 |
Total expenses | 4,211 | 4,239 | 11,762 | 11,734 |
Income before income tax | 660 | 961 | 2,546 | 2,700 |
Income tax expense (includes $(4), $5, $10, and $7 on reclassified unrealized gains and losses) | 132 | 176 | 395 | 402 |
Net income | 528 | 785 | 2,151 | 2,298 |
Other comprehensive income (loss) | ||||
Unrealized appreciation (depreciation) | (321) | (375) | (696) | 733 |
Reclassification adjustment for net realized losses included in net income | 49 | 38 | 18 | 11 |
Unrealized appreciation (Depreciation) after reclassification adjustment | (272) | (337) | (678) | 744 |
Change in: | ||||
Cumulative translation adjustment | (575) | (251) | (860) | (131) |
Pension liability | 3 | 7 | 10 | (6) |
Other comprehensive income (loss), before income tax | (844) | (581) | (1,528) | 607 |
Income tax (expense) benefit related to OCI items | 45 | 94 | 145 | (151) |
Other comprehensive income (loss) | (799) | (487) | (1,383) | 456 |
Comprehensive income (loss) | $ (271) | $ 298 | $ 768 | $ 2,754 |
Earnings per share | ||||
Basic earnings per share | $ 1.63 | $ 2.35 | $ 6.60 | $ 6.82 |
Diluted earnings per share | $ 1.62 | $ 2.32 | $ 6.53 | $ 6.75 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Net realized gains (losses): | ||||
Total net realized gains (losses) (includes $(49), $(38), $(18), and $(11) reclassified from AOCI) | $ (49) | $ (38) | $ (18) | $ (11) |
Expenses | ||||
Income tax expense (includes $(4), $5, $10, and $7 on reclassified unrealized gains and losses) | $ (4) | $ 5 | $ 10 | $ 7 |
Consolidated Statements Of Ope5
Consolidated Statements Of Operations and Comprehensive Income Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income tax expense (benefit) | $ 132 | $ 176 | $ 395 | $ 402 |
Net realized gains (losses) | (397) | (120) | (360) | (297) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Income tax expense (benefit) | (4) | 5 | 10 | 7 |
Net realized gains (losses) | $ (49) | $ (38) | $ (18) | $ (11) |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions | 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] |
Balance - beginning of period at Dec. 31, 2013 | $ 8,899 | $ (255) | $ 5,238 | $ 13,791 | $ 1,174 | $ 63 | $ (85) | ||
Dividends declared on Common Shares – par value reduction | (621) | ||||||||
Net shares redeemed under employee share-based compensation plans | 217 | (167) | |||||||
Common Shares repurchased | (1,019) | ||||||||
Exercise of stock options | (44) | ||||||||
Share-based compensation expense and other | 153 | ||||||||
Funding of dividends declared to Retained earnings | (81) | ||||||||
Net income | $ 2,298 | 2,298 | |||||||
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 benefit (expense) of $102 and $(168) | 565 | ||||||||
Amounts reclassified from AOCI, net of income tax benefit of $10 and $7 | 18 | ||||||||
Change in period, net of income tax benefit (expense) of $112 and $(161) | 583 | ||||||||
Change in period, net of income tax benefit (expense) of $35 and $7 | (124) | ||||||||
Change in period, net of income tax benefit (expense) of $(2) and $3 | (3) | ||||||||
Balance - end of period at Sep. 30, 2014 | 30,017 | 8,278 | (1,057) | 5,099 | 16,089 | 1,757 | (61) | (88) | $ 1,608 |
Balance - beginning of period at Dec. 31, 2014 | 29,587 | 8,055 | (1,448) | 5,145 | 16,644 | 1,851 | (581) | (79) | |
Dividends declared on Common Shares – par value reduction | (222) | ||||||||
Net shares redeemed under employee share-based compensation plans | 208 | (157) | |||||||
Common Shares repurchased | (734) | ||||||||
Exercise of stock options | (43) | ||||||||
Share-based compensation expense and other | 155 | ||||||||
Funding of dividends declared to Retained earnings | (435) | ||||||||
Net income | 2,151 | 2,151 | |||||||
Funding of dividends declared from Additional paid-in capital | 435 | ||||||||
Dividends declared on Common Shares | (435) | ||||||||
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $102 and $(168) | (594) | ||||||||
Amounts reclassified from AOCI, net of income tax benefit of $10 and $7 | 28 | ||||||||
Change in period, net of income tax benefit (expense) of $112 and $(161) | (566) | ||||||||
Change in period, net of income tax benefit (expense) of $35 and $7 | (825) | ||||||||
Change in period, net of income tax benefit (expense) of $(2) and $3 | 8 | ||||||||
Balance - end of period at Sep. 30, 2015 | $ 29,127 | $ 7,833 | $ (1,974) | $ 4,665 | $ 18,795 | $ 1,285 | $ (1,406) | $ (71) | $ (192) |
Consolidated Statements Of Sha7
Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit | $ 112 | $ (161) |
Cumulative translation adjustment, Change in period, income tax(expense) benefit | 35 | 7 |
Pension liability adjustment, Change in period, income tax (expense) benefit | (2) | 3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | 102 | (168) |
Income tax benefit (expense) from reclassification of unrealized gains | $ 10 | $ 7 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | |||
Cash flows from operating activities | ||||
Net income | $ 2,151 | $ 2,298 | ||
Adjustments to reconcile net income to net cash flows from operating activities | ||||
Net realized (gains) losses | 360 | 297 | ||
Amortization of premiums/discounts on fixed maturities | 115 | 159 | ||
Deferred income taxes | 53 | 41 | ||
Unpaid losses and loss expenses | (225) | 180 | ||
Unearned premiums | 353 | 449 | ||
Future policy benefits | 157 | 181 | ||
Insurance and reinsurance balances payable | 219 | 181 | ||
Accounts payable, accrued expenses, and other liabilities | (179) | (130) | ||
Income taxes payable | (8) | 94 | ||
Insurance and reinsurance balances receivable | 15 | (191) | ||
Reinsurance recoverable on losses and loss expenses | 421 | 253 | ||
Reinsurance recoverable on policy benefits | 20 | (6) | ||
Deferred policy acquisition costs | (354) | (306) | ||
Prepaid reinsurance premiums | (182) | (41) | ||
Other | (217) | (237) | ||
Net cash flows from operating activities | 2,699 | 3,222 | ||
Cash flows from investing activities | ||||
Purchases of fixed maturities available for sale | (13,029) | (11,867) | ||
Purchases of to be announced mortgage-backed securities | (31) | 0 | ||
Purchases of fixed maturities held to maturity | (39) | (185) | ||
Purchases of equity securities | (122) | (222) | ||
Sales of fixed maturities available for sale | 5,202 | 6,306 | ||
Proceeds From Sales To Be Announced Mortgage Backed Securities | 31 | 0 | ||
Sales of equity securities | 150 | 322 | ||
Maturities and redemptions of fixed maturities available for sale | 5,257 | 4,814 | ||
Maturities and redemptions of fixed maturities held to maturity | 552 | 617 | ||
Net change in short-term investments | 421 | (984) | ||
Net derivative instruments settlements | 62 | (170) | ||
Payments to Acquire Businesses, Net of Cash Acquired | 259 | (172) | ||
Other | (138) | (147) | ||
Net cash flows used for investing activities | (1,425) | (1,688) | ||
Cash flows from financing activities | ||||
Dividends paid on Common Shares | (644) | (646) | ||
Common Shares repurchased | (758) | (1,007) | ||
Proceeds from issuance of long-term debt | 800 | 699 | ||
Proceeds from issuance of short-term debt | 1,478 | 1,827 | ||
Repayments of Long-term Debt | (451) | (501) | ||
Repayment of short-term debt | (1,477) | (1,827) | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 89 | 94 | ||
Policyholder contract deposits | 351 | 189 | ||
Policyholder contract withdrawals | (159) | (62) | ||
Other | (6) | (6) | ||
Net cash flows used for financing activities | (777) | (1,240) | ||
Effect of foreign currency rate changes on cash and cash equivalents | (114) | (67) | ||
Net increase in cash | 383 | 227 | ||
Cash – beginning of period | 655 | [1],[2] | 579 | [3] |
Cash – end of period | 1,038 | [2],[4] | 806 | [3] |
Supplemental cash flow information | ||||
Taxes paid | 335 | 250 | ||
Interest paid | $ 188 | $ 186 | ||
[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, 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 September 30, 2015 and December 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 September 30, 2014 and 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 September 30, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Cash Acquired from Acquisition | $ 620 | $ 4 |
General
General | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General a) 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 10 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, including internal reinsurance 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 2014 Form 10-K. Effective third quarter of 2015, amortization of intangible assets are excluded from Other (income) expense and disclosed separately in the consolidated statements of operations. Prior year amounts have been reclassified to conform to the current year presentation. In addition, we added a new expense caption (Chubb integration expenses), which includes legal and professional fees and all other external costs directly related to the integration activities of the planned Chubb acquisition. b) Accounting guidance adopted in 2015 Business Combinations – Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the Financial Accounting Standards Board (FASB) issued guidance to simplify the accounting for adjustments made to provisional valuation amounts recognized in a business combination. The guidance requires that the acquirer must recognize adjustments to provisional valuation amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance eliminates the requirement to retrospectively account for such adjustments. Previously, the accounting for measurement-period adjustments required the acquirer to retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. We early adopted this guidance effective July 1, 2015. The adoption of this guidance did not have an impact on our financial condition or results of operations. Disclosures for investments in certain entities that calculate net asset value (NAV) In May 2015, the FASB issued guidance that eliminated the requirement for investments measured at fair value using NAV as a practical expedient to be categorized within the fair value hierarchy. We early adopted this guidance effective July 1, 2015 and have retrospectively revised prior year fair value hierarchy disclosures contained in this report to conform to the current period presentation. Refer to Note 4 Fair Value Measurement for further information. This guidance requires a change in disclosure only and adoption of this guidance did not have an impact on our financial condition or results of operations. c) Accounting guidance not yet adopted Presentation of Debt Issuance Costs In April 2015, the FASB issued new guidance related to the accounting for debt issuance costs. The new guidance requires presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. The new guidance requires retrospective adoption and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance will not have any effect on our results of operations and financial condition. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fireman's Fund Insurance Company High Net Worth Personal Lines Insurance Business in the U.S. (Fireman's Fund) On April 1, 2015, we acquired the Fireman's Fund Insurance Company high net worth personal lines insurance business in the U.S., which included the renewal rights for new and existing business and reinsurance of all existing reserves for $365 million in cash. We acquired assets with a fair value of $ 749 million , consisting primarily of cash of $ 620 million and insurance and reinsurance balances receivable of $ 128 million . We assumed liabilities with a fair value of $ 858 million , consisting primarily of unpaid losses and loss expenses of $ 402 million and unearned premiums of $ 428 million . This acquisition generated $ 196 million of goodwill, attributable to expected growth and profitability, all of which is expected to be deductible for income tax purposes, and other intangible assets of $ 278 million , primarily related to renewal rights, based on ACE’s preliminary purchase price allocation. During the third quarter of 2015, we applied the new measurement-period adjustment guidance and recorded an adjustment to the valuation of our other intangible assets. The acquisition expands our position in the high net worth personal lines insurers in the U.S. The Fireman’s Fund business integrates into our existing high net worth personal lines business, ACE Private Risk Services, which offers a broad range of coverage including homeowners, automobile, umbrella and excess liability, collectibles and yachts. Goodwill and other intangible assets arising from this acquisition are included in our Insurance – North American P&C segment. Large Corporate Account P&C Insurance Business of Itaú Seguros, S.A. (Itaú Seguros) On October 31, 2014, we expanded our presence in Brazil with the acquisition of the large corporate account property and casualty (P&C) insurance business of Itaú Seguros, Brazil's leading carrier for that business, for $606 million in cash. This acquisition generated $445 million of goodwill, attributable to expected growth and profitability, none of which is currently deductible for income tax purposes, and other intangible assets of $60 million , primarily related to renewal rights. Goodwill may become deductible for income tax purposes under Brazilian tax law if this acquired entity is merged with certain ACE legal entities. The Siam Commercial Samaggi Insurance PCL (Samaggi) We and our local partner acquired 60.86 percent of Samaggi, a general insurance company in Thailand, from Siam Commercial Bank on April 28, 2014, and subsequently acquired an additional 32.17 percent ownership, through a mandatory tender offer, which expired on June 17, 2014. The purchase price for 93.03 percent of the company was $ 176 million in cash. This acquisition expands our presence in Thailand and Southeast Asia. The acquisition generated $ 46 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 $ 80 million based on ACE’s purchase price allocation. The other intangible assets primarily relate to a bancassurance agreement. Goodwill and other intangible assets arising from the acquisitions of Itaú Seguros and Samaggi are included in our Insurance – Overseas General segment. The consolidated financial statements include results of acquired businesses from the acquisition dates. To be acquired The Chubb Corporation (Chubb) On June 30, 2015, we entered into a definitive agreement to acquire Chubb, a leading provider of middle-market commercial, specialty, surety, and personal insurance. Under the terms of the merger agreement, when the transaction closes Chubb will be merged with a newly-formed subsidiary of ACE and Chubb shareholders will receive for each share of Chubb stock an aggregate $62.93 in cash and 0.6019 shares of ACE stock. The initial purchase price, estimated at the time that we entered into the definitive agreement, was $ 28.3 billion based on the closing price of ACE stock on June 30, 2015 of $ 101.68 per share. Based on the closing price of ACE stock on September 30, 2015 of $103.40 per share, the purchase price would be approximately $28.8 billion in cash and newly issued stock, and the former Chubb shareholders would own approximately 137 million shares, or 30 percent, of the combined company's outstanding shares. The actual purchase price and related goodwill will increase or decrease until the closing date of the acquisition based on the increase or decrease in ACE's stock price. The merger agreement provides that following the close of the transaction (i) the acquired businesses will continue to operate under the Chubb names as they do now; (ii) we will change the name of ACE Limited to assume the Chubb name at our parent company level, and (iii) the combined company will transition to operate under the Chubb name globally. We intend to finance the cash portion of the transaction through a combination of $9 billion sourced from various ACE and Chubb companies plus $5.3 billion of senior notes which were issued in October 2015. Refer to Note 6 for additional information on th e senior notes . On September 30, 2015, we received notice from the U.S. Federal Trade Commission that it had granted early termination, effective immediately, of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) for the pending acquisition of Chubb. The early termination of the waiting period under the HSR Act satisfies one of the conditions to the closing of the transaction, which remains subject to other customary closing conditions, including other regulatory approvals. On October 22, 2015, we received the necessary approvals from shareholders of ACE and Chubb to effect the merger. The transaction is expected to close during the first quarter of 2016. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments a) Transfers of securities During April 2015, we transferred securities, considered essential holdings in a diversified portfolio, with a total fair value of $ 1.9 billion from Fixed maturities available for sale to Fixed maturities held to maturity. These securities, which we have the intent and ability to hold to maturity, were transferred given the growth in ACE’s investment portfolio over the last several years, as well as continued efforts to manage the diversification of our global portfolio. The net unrealized appreciation at the date of the transfer continues to be reported in the carrying value of the transferred investments and is amortized through OCI over the remaining life of the securities using the effective interest method in a manner consistent with the amortization of any premium or discount. This transfer represents a non-cash transaction and does not impact the consolidated statements of cash flows. b) Fixed maturities September 30, 2015 Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value OTTI Recognized in AOCI (in millions of U.S. dollars) Available for sale U.S. Treasury and agency $ 2,800 $ 85 $ — $ 2,885 $ — Foreign 13,976 523 (208 ) 14,291 (6 ) Corporate securities 16,790 467 (365 ) 16,892 (14 ) Mortgage-backed securities 10,858 286 (25 ) 11,119 (1 ) States, municipalities, and political subdivisions 2,987 111 (7 ) 3,091 — $ 47,411 $ 1,472 $ (605 ) $ 48,278 $ (21 ) Held to maturity U.S. Treasury and agency $ 756 $ 19 $ (1 ) $ 774 $ — Foreign 784 38 (4 ) 818 — Corporate securities 3,093 74 (41 ) 3,126 — Mortgage-backed securities 1,758 60 (1 ) 1,817 — States, municipalities, and political subdivisions 2,173 44 (2 ) 2,215 — $ 8,564 $ 235 $ (49 ) $ 8,750 $ — December 31, 2014 Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value OTTI Recognized in AOCI (in millions of U.S. dollars) Available for sale U.S. Treasury and agency $ 2,741 $ 87 $ (8 ) $ 2,820 $ — Foreign 14,703 629 (90 ) 15,242 — Corporate securities 16,897 704 (170 ) 17,431 (7 ) Mortgage-backed securities 10,011 304 (29 ) 10,286 (1 ) States, municipalities, and political subdivisions 3,474 147 (5 ) 3,616 — $ 47,826 $ 1,871 $ (302 ) $ 49,395 $ (8 ) Held to maturity U.S. Treasury and agency $ 832 $ 20 $ (2 ) $ 850 $ — Foreign 916 47 — 963 — Corporate securities 2,323 102 (2 ) 2,423 — Mortgage-backed securities 1,983 57 (1 ) 2,039 — States, municipalities, and political subdivisions 1,277 40 (3 ) 1,314 — $ 7,331 $ 266 $ (8 ) $ 7,589 $ — As discussed in Note 3 e), if a credit loss is incurred 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 and nine months ended September 30, 2015 , $4 million and nil, respectively, of net unrealized depreciation related to such securities is included in OCI. For the three and nine months ended September 30, 2014 , $1 million and $6 million , respectively, of net unrealized appreciation related to such securities is included in OCI. At September 30, 2015 and December 31, 2014 , AOCI included cumulative net unrealized depreciation of $14 million and $3 million, respectively, related to securities remaining in the investment portfolio 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 7 c) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 80 percent and 83 percent of the total mortgage-backed securities at September 30, 2015 and December 31, 2014 , 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: September 30 December 31 2015 2014 (in millions of U.S. dollars) Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Due in 1 year or less $ 1,979 $ 1,995 $ 2,187 $ 2,206 Due after 1 year through 5 years 16,472 16,794 15,444 15,857 Due after 5 years through 10 years 13,695 13,708 15,663 16,089 Due after 10 years 4,407 4,662 4,521 4,957 36,553 37,159 37,815 39,109 Mortgage-backed securities 10,858 11,119 10,011 10,286 $ 47,411 $ 48,278 $ 47,826 $ 49,395 Held to maturity Due in 1 year or less $ 411 $ 413 $ 353 $ 355 Due after 1 year through 5 years 2,583 2,683 2,603 2,693 Due after 5 years through 10 years 2,278 2,300 1,439 1,489 Due after 10 years 1,534 1,537 953 1,013 6,806 6,933 5,348 5,550 Mortgage-backed securities 1,758 1,817 1,983 2,039 $ 8,564 $ 8,750 $ 7,331 $ 7,589 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. c) Equity securities September 30 December 31 (in millions of U.S. dollars) 2015 2014 Cost $ 434 $ 440 Gross unrealized appreciation 54 83 Gross unrealized depreciation (24 ) (13 ) Fair value $ 464 $ 510 d) Investments in partially-owned insurance companies On March 27, 2015 and April 14, 2015, we paid $ 70 million and $ 20 million , respectively, to acquire 11.3 percent of the common equity of ABR Reinsurance Capital Holdings Ltd. and warrants to acquire 0.5 percent of additional equity. ABR Reinsurance Capital Holdings Ltd., is the parent company of ABR Reinsurance Ltd. (ABR Re), an independent reinsurance company. Through long-term arrangements, ACE will be the sole source of reinsurance risks ceded to ABR Re, and BlackRock, Inc. will be ABR Re’s exclusive investment management service provider. As an investor, ACE is expected to benefit from underwriting profit generated by ABR Re’s reinsuring a wide range of ACE’s primary insurance business and the income and capital appreciation BlackRock, Inc. seeks to deliver through its investment management services. In addition, ACE’s long-term arrangements with BlackRock, Inc. include a fee sharing arrangement in which ACE and BlackRock, Inc. will be entitled to an equal share of the aggregate amount of certain fees, including underwriting and investment management performance related fees. ABR Re is a variable interest entity; however, ACE is not the primary beneficiary and does not consolidate ABR Re because ACE does not have the power to control and direct ABR Re’s most significant activities, including investing and underwriting. Our minority ownership interest is accounted for under the equity method of accounting. ACE cedes premiums to ABR Re and recognizes the associated commissio ns. For the three and nine months ended September 30, 2015 , ACE ceded reinsurance premiums of $ 35 million and $ 70 million , respectively, and recognized ceded commissions of $ 8 million and $19 million , respectively. At September 30, 2015 , the amount of Reinsurance recoverable on losses and loss expenses was $ 54 million and the amount of ceded reinsurance premium payable included in Insurance and reinsurance balances payable in the consolidated balance sheet was $ 12 million . e) 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 incurred, 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. For mutual funds included in equity securities in our consolidated balance sheet, we employ analysis similar to fixed maturities, when applicable. 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 and nine months ended September 30, 2015 , credit losses recognized in Net income for corporate securities were $14 million and $23 million , respectively. For the three and nine months ended September 30, 2014 credit losses recognized in Net income for corporate securities were $4 million and $14 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 and nine months ended September 30, 2015 and 2014 , 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 Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2015 2014 2015 2014 Fixed maturities: OTTI on fixed maturities, gross $ (31 ) $ (5 ) $ (57 ) $ (20 ) OTTI on fixed maturities recognized in OCI (pre-tax) 5 1 11 3 OTTI on fixed maturities, net (26 ) (4 ) (46 ) (17 ) Gross realized gains excluding OTTI 19 73 91 163 Gross realized losses excluding OTTI (44 ) (51 ) (95 ) (97 ) Total fixed maturities (51 ) 18 (50 ) 49 Equity securities: OTTI on equity securities (3 ) — (4 ) (7 ) Gross realized gains excluding OTTI 10 4 43 8 Gross realized losses excluding OTTI (5 ) (60 ) (7 ) (61 ) Total equity securities 2 (56 ) 32 (60 ) OTTI on other investments (1 ) — (1 ) (3 ) Foreign exchange losses (2 ) (19 ) (73 ) (42 ) Investment and embedded derivative instruments (22 ) (13 ) 6 (53 ) Fair value adjustments on insurance derivative (396 ) (80 ) (337 ) (126 ) S&P put options and futures 83 (15 ) 69 (106 ) Other derivative instruments (9 ) 45 (10 ) 52 Other (1 ) — 4 (8 ) Net realized gains (losses) $ (397 ) $ (120 ) $ (360 ) $ (297 ) 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 Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2015 2014 2015 2014 Balance of credit losses related to securities still held – beginning of period $ 23 $ 24 $ 28 $ 37 Additions where no OTTI was previously recorded 8 2 15 9 Additions where an OTTI was previously recorded 6 2 8 5 Reductions for securities sold during the period (5 ) (11 ) (19 ) (34 ) Balance of credit losses related to securities still held – end of period $ 32 $ 17 $ 32 $ 17 f) Gross unrealized loss At September 30, 2015 , there were 7,876 fixed maturities out of a total of 26,875 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $4 million . There were 111 equity securities out of a total of 257 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $2 million . Fixed maturities in an unrealized loss position at September 30, 2015 , 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. 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 September 30, 2015 Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of U.S. dollars) U.S. Treasury and agency $ 228 $ (1 ) $ 59 $ — $ 287 $ (1 ) Foreign 3,627 (160 ) 402 (52 ) 4,029 (212 ) Corporate securities 6,641 (322 ) 801 (84 ) 7,442 (406 ) Mortgage-backed securities 2,145 (16 ) 626 (10 ) 2,771 (26 ) States, municipalities, and political subdivisions 766 (7 ) 57 (2 ) 823 (9 ) Total fixed maturities 13,407 (506 ) 1,945 (148 ) 15,352 (654 ) Equity securities 151 (24 ) — — 151 (24 ) Other investments 83 (2 ) — — 83 (2 ) Total $ 13,641 $ (532 ) $ 1,945 $ (148 ) $ 15,586 $ (680 ) 0 – 12 Months Over 12 Months Total December 31, 2014 Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of U.S. dollars) U.S. Treasury and agency $ 350 $ (1 ) $ 666 $ (9 ) $ 1,016 $ (10 ) Foreign 2,262 (75 ) 375 (15 ) 2,637 (90 ) Corporate securities 4,684 (150 ) 738 (22 ) 5,422 (172 ) Mortgage-backed securities 704 (2 ) 1,663 (28 ) 2,367 (30 ) States, municipalities, and political subdivisions 458 (3 ) 490 (5 ) 948 (8 ) Total fixed maturities 8,458 (231 ) 3,932 (79 ) 12,390 (310 ) Equity securities 101 (13 ) — — 101 (13 ) Total $ 8,559 $ (244 ) $ 3,932 $ (79 ) $ 12,491 $ (323 ) g) 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, which represent ACE's agreement to sell securities and repurchase them at a future date for a predetermined price. 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 September 30, 2015 and December 31, 2014 , are investments, primarily fixed maturities, totaling $16.2 billion and $16.3 billion, respectively, and cash of $79 million and $117 million, respectively. The following table presents the components of restricted assets: September 30 December 31 (in millions of U.S. dollars) 2015 2014 Trust funds $ 10,990 $ 10,838 Deposits with non-U.S. regulatory authorities 2,105 2,305 Assets pledged under repurchase agreements 1,468 1,431 Deposits with U.S. regulatory authorities 1,322 1,345 Other pledged assets 388 457 $ 16,273 $ 16,376 |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Effective July 1, 2015, we retrospectively adopted new accounting guidance that no longer requires investments measured at fair value using NAV to be categorized within the fair value hierarchy. Therefore, we no longer include our investments in partially-owned investment companies, investment funds, and limited partnerships within the fair value hierarchy and the Level 3 rollforward tables disclosed below. Prior period amounts within the fair value hierarchy disclosures contained in this section have been revised to conform to the current period presentation. 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 single broker quote (typically from 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) and are excluded from the fair value hierarchy table below. 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 include equity securities classified within Level 1, and fixed maturities, classified within Level 2, held in rabbi trusts maintained by ACE for deferred compensation plans, and are classified within the valuation hierarchy on the same basis as other equity securities and fixed maturities. Other investments for which pricing is unobservable are classified within Level 3. 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 generally 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, an increase in 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. At September 30, 2015, we held no positions in option contracts on equity market indices. 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 based on unobservable inputs are classified within Level 3. 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 within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. 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 factors, including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates, and other 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. 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 regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities. Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3. For the three and nine months ended September 30, 2015 and 2014, no material technical refinements were made to the model. For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2014 Form 10-K. Financial instruments measured at fair value on a recurring basis, by valuation hierarchy September 30, 2015 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 1,919 $ 966 $ — $ 2,885 Foreign — 14,238 53 14,291 Corporate securities — 16,709 183 16,892 Mortgage-backed securities — 11,065 54 11,119 States, municipalities, and political subdivisions — 3,091 — 3,091 1,919 46,069 290 48,278 Equity securities 455 5 4 464 Short-term investments 703 1,105 — 1,808 Other investments (1) 314 218 209 741 Securities lending collateral — 1,011 — 1,011 Investment derivative instruments 17 — — 17 Other derivative instruments 26 — — 26 Separate account assets 1,423 83 — 1,506 Total assets measured at fair value (1) $ 4,857 $ 48,491 $ 503 $ 53,851 Liabilities: Investment derivative instruments $ 27 $ — $ — $ 27 Other derivative instruments — — 7 7 GLB (2) — — 744 744 Total liabilities measured at fair value $ 27 $ — $ 751 $ 778 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,504 million and other investments of $25 million at September 30, 2015 measured using NAV. Based on new accounting guidance adopted this quarter, these investments are excluded from the hierarchy table. (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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. December 31, 2014 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 1,680 $ 1,140 $ — $ 2,820 Foreign — 15,220 22 15,242 Corporate securities — 17,244 187 17,431 Mortgage-backed securities — 10,271 15 10,286 States, municipalities, and political subdivisions — 3,616 — 3,616 1,680 47,491 224 49,395 Equity securities 492 16 2 510 Short-term investments 1,183 1,139 — 2,322 Other investments (1) 370 211 204 785 Securities lending collateral — 1,330 — 1,330 Investment derivative instruments 18 — — 18 Other derivative instruments — 2 — 2 Separate account assets 1,400 90 — 1,490 Total assets measured at fair value (1) $ 5,143 $ 50,279 $ 430 $ 55,852 Liabilities: Investment derivative instruments $ 36 $ — $ — $ 36 Other derivative instruments 21 — 4 25 GLB (2) — — 406 406 Total liabilities measured at fair value $ 57 $ — $ 410 $ 467 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,561 million at December 31, 2014 measured using NAV. Based on new accounting guidance adopted this quarter, these investments are excluded from the hierarchy table. (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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. There were no transfers between Level 1 and Level 2 for the three and nine months ended September 30, 2015 and 2014. Fair value of alternative investments Alternative investments include investment funds, limited partnerships, and partially-owned investment companies measured at fair value using NAV as a practical expedient. The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments: September 30 December 31 Expected Liquidation Period of Underlying Assets 2015 2014 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 5 to 9 Years $ 309 $ 107 $ 282 $ 145 Real Assets 3 to 7 Years 473 168 451 210 Distressed 5 to 9 Years 265 231 232 175 Private Credit 3 to 7 Years 272 226 299 190 Traditional 3 to 9 Years 885 184 908 289 Vintage 1 to 2 Years 14 — 11 1 Investment funds Not Applicable 286 — 378 — $ 2,504 $ 916 $ 2,561 $ 1,010 In 2015, we redefined and regrouped certain alternative investment categories to better align with our management approach. The prior year amounts have been reclassified to conform to the current year presentation. 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 Assets targeting investments related to hard physical assets such as real estate, infrastructure and natural resources Distressed targeting distressed corporate debt/credit and equity opportunities in the U.S. Private Credit targeting privately originated corporate debt investments including senior secured loans and subordinated bonds Traditional employing traditional private equity investment strategies such as buyout and growth equity globally 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 and contain no quantitative unobservable inputs developed by management. (in millions of U.S. dollars, except for percentages) Fair Value Valuation Technique Significant Unobservable Inputs Ranges September 30, 2015 December 31, 2014 GLB (1) $ 744 $ 406 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 securities Other investments Other derivative instruments GLB (1) September 30, 2015 Foreign Corporate securities MBS (in millions of U.S. dollars) Balance–Beginning of Period $ 56 $ 167 $ 55 $ 2 $ 214 $ 3 $ 347 Transfers into Level 3 1 2 — — — — — Change in Net Unrealized Gains (Losses) included in OCI 1 1 — 2 (7 ) — — Net Realized Gains/Losses (1 ) (1 ) — (1 ) — 4 397 Purchases — 22 — 1 5 — — Sales — (5 ) (1 ) — — — — Settlements (4 ) (3 ) — — (3 ) — — Balance–End of Period $ 53 $ 183 $ 54 $ 4 $ 209 $ 7 $ 744 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (1 ) $ — $ — $ (1 ) $ — $ 4 $ 397 (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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. Assets Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Other GLB (1) September 30, 2014 Foreign Corporate MBS (in millions of U.S. dollars) Balance–Beginning of Period $ 12 $ 204 $ 7 $ 2 $ 203 $ 241 Transfers into Level 3 1 5 — — — — Change in Net Unrealized Gains (Losses) included in OCI — (1 ) — — (1 ) — Net Realized Gains/Losses — 2 — — — 76 Purchases — 20 8 — 6 — Sales (1 ) (9 ) — — — — Settlements — (13 ) — — (3 ) — Balance–End of Period $ 12 $ 208 $ 15 $ 2 $ 205 $ 317 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ 76 (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 liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $566 million at September 30, 2014 , and $486 million at June 30, 2014, which includes a fair value derivative adjustment of $317 million and $241 million, respectively. Assets Liabilities Nine Months Ended Available-for-Sale Debt Securities Equity Other Other GLB (1) September 30, 2015 Foreign Corporate MBS (in millions of U.S. dollars) Balance–Beginning of Period $ 22 $ 187 $ 15 $ 2 $ 204 4 $ 406 Transfers into Level 3 29 15 — — — — — Change in Net Unrealized Gains (Losses) included in OCI (1 ) 1 — 2 (7 ) — — Net Realized Gains/Losses (1 ) (4 ) — (2 ) — 3 338 Purchases 9 38 41 2 21 — — Sales (1 ) (10 ) (1 ) — — — — Settlements (4 ) (44 ) (1 ) — (9 ) — — Balance–End of Period $ 53 $ 183 $ 54 $ 4 $ 209 $ 7 $ 744 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (1 ) $ (2 ) $ — $ (2 ) $ — $ 3 $ 338 (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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. Assets Liabilities Nine Months Ended Available-for-Sale Debt Securities Short-term investments Other investments GLB (1) September 30, 2014 Foreign Corporate MBS Equity (in millions of U.S. dollars) Balance–Beginning of Period $ 44 $ 166 $ 8 $ 4 $ 7 $ 196 $ 193 Transfers into Level 3 3 35 — — — — — Transfers out of Level 3 (34 ) (22 ) — (2 ) (7 ) — — Change in Net Unrealized Gains (Losses) included in OCI (1 ) 1 — 1 — 1 — Net Realized Gains/Losses 1 2 — — — — 124 Purchases 2 65 8 1 — 15 — Sales (3 ) (17 ) — (2 ) — — — Settlements — (22 ) (1 ) — — (7 ) — Balance–End of Period $ 12 $ 208 $ 15 $ 2 $ — $ 205 $ 317 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ 124 (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 liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $566 million at September 30, 2014 and $427 million at December 31, 2013, which includes a fair value derivative adjustment of $317 million and $193 million , 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 and are excluded from the valuation hierarchy tables below. 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: September 30, 2015 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 $ 599 $ 175 $ — $ 774 $ 756 Foreign — 818 — 818 784 Corporate securities — 3,112 14 3,126 3,093 Mortgage-backed securities — 1,817 — 1,817 1,758 States, municipalities, and political subdivisions — 2,215 — 2,215 2,173 Total assets $ 599 $ 8,137 $ 14 $ 8,750 $ 8,564 Liabilities: Short-term debt $ — $ 2,105 $ — $ 2,105 $ 2,103 Long-term debt — 4,376 — 4,376 4,157 Trust preferred securities — 457 — 457 309 Total liabilities $ — $ 6,938 $ — $ 6,938 $ 6,569 December 31, 2014 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 $ 659 $ 191 $ — $ 850 $ 832 Foreign — 963 — 963 916 Corporate securities — 2,408 15 2,423 2,323 Mortgage-backed securities — 2,039 — 2,039 1,983 States, municipalities, and political subdivisions — 1,314 — 1,314 1,277 Total assets $ 659 $ 6,915 $ 15 $ 7,589 $ 7,331 Liabilities: Short-term debt $ — $ 2,571 $ — $ 2,571 $ 2,552 Long-term debt — 3,690 — 3,690 3,357 Trust preferred securities — 462 — 462 309 Total liabilities $ — $ 6,723 $ — $ 6,723 $ 6,218 |
Assumed life reinsurance progra
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts | 9 Months Ended |
Sep. 30, 2015 | |
Reinsurance Disclosures [Abstract] | |
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts | Assumed life reinsurance programs involving minimum benefit guarantees under variable 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 Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2015 2014 2015 2014 GMDB Net premiums earned $ 15 $ 17 $ 47 $ 54 Policy benefits and other reserve adjustments $ 5 $ 12 $ 25 $ 40 GLB Net premiums earned $ 30 $ 35 $ 92 $ 105 Policy benefits and other reserve adjustments 15 8 34 27 Net realized gains (losses) (397 ) (76 ) (338 ) (124 ) Loss recognized in Net income $ (382 ) $ (49 ) $ (280 ) $ (46 ) Less: Net cash received 20 31 74 93 Net increase in liability $ (402 ) $ (80 ) $ (354 ) $ (139 ) Net realized gains (losses) in the table above include gains (losses) related to foreign exchange and fair value adjustments on insurance derivatives and exclude gains (losses) on S&P put options and futures held to partially offset the risk in the GLB reinsurance portfolio. Refer to Note 7 for additional information. At September 30, 2015 and December 31, 2014, the reported liability for GMDB reinsurance was $113 million and $111 million , respectively. At September 30, 2015 and December 31, 2014, the reported liability for GLB reinsurance was $1.0 billion and $663 million, respectively, which includes a fair value derivative adjustment of $ 744 million and $406 million, respectively. 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 regularly reviewed by management and enhanced, as appropriate, based upon improvements in modeling assumptions and availability of updated information, such as market conditions and demographics of in-force annuities. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt In March 2015, ACE INA Holdings Inc. (ACE INA) issued $800 million of 3.15 percent senior notes due March 2025. These senior notes are redeemable at any time at ACE INA's option subject to a “make-whole” premium (the present value of the remaining principal and interest discounted at the applicable U.S. Treasury rate plus 0.15 percent). The notes are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law. These notes do not have the benefit of any sinking fund. These senior unsecured notes are guaranteed on a senior basis by ACE Limited and they rank equally with all of ACE's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt. In May 2015, ACE INA's $450 million of 5.6 percent senior notes matured and were fully paid. Subsequent Event In October 2015, ACE INA issued $5.3 billion of senior notes comprising $1.3 billion of 2.30 percent senior notes due November 2020 (2020 Notes), $1.0 billion of 2.875 percent senior notes due November 2022 (2022 Notes), $1.5 billion of 3.35 percent senior notes due May 2026 (2026 Notes), and $1.5 billion of 4.35 percent senior notes due November 2045 (2045 Notes). The proceeds from the issuance of these notes are expected to be used to finance a portion of the Chubb acquisition. However, if the Chubb acquisition is not consummated or the merger agreement is terminated on or prior to September 30, 2016, ACE INA will be required to redeem all of the notes at a price equivalent to 101 percent of the principal amount, plus accrued and unpaid interest, if any. ACE INA may redeem some or all of the notes at its option one month (for the 2020 Notes), two months (for the 2022 Notes), three months (for the 2026 Notes), and six months (for the 2045 Notes) prior to the respective maturity dates at a redemption price equal to 100 percent of the principal amount of the notes plus accrued and unpaid interest. Otherwise, these notes are redeemable at any time at ACE INA's option subject to a “make-whole” premium, defined as the present value of the remaining principal and interest discounted at the applicable U.S. Treasury rate plus 0.15 percent (for the 2020 Notes), 0.20 percent (for the 2022 Notes), 0.20 percent (for the 2026 Notes), and 0.25 percent , (for the 2045 Notes). The remaining terms of the senior notes are commensurate with those of our existing senior notes as described above. |
Commitments, contingencies, and
Commitments, contingencies, and guarantees | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, contingencies, and guarantees | Commitments, contingencies, and guarantees a) Derivative instruments Foreign currency management As a global company, ACE entities transact business in multiple currencies. Our policy is to generally match assets, liabilities and required capital for each individual jurisdiction in local currency, which would include the use of derivatives discussed below. We do not hedge our net asset non-USD capital positions, however we do consider hedging for planned cross border transactions. 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 securities that contain embedded derivatives. Investment derivative instruments are recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP), convertible bonds are recorded in Fixed maturities available for sale (FM AFS) and convertible equity securities are recorded in Equity securities (ES) in the consolidated balance sheets. 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 AP. ACE also generally 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. At September 30, 2015, we held no positions in option contracts on equity market indices. 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: September 30, 2015 December 31, 2014 Consolidated Balance Sheet Location Fair Value Notional Value/ Payment Provision Fair Value Notional Value/ Payment Provision (in millions of U.S. dollars) Derivative Asset Derivative (Liability) Derivative Asset Derivative (Liability) Investment and embedded derivative instruments Foreign currency forward contracts OA / (AP) $ 10 $ (11 ) $ 1,139 $ 12 $ (7 ) $ 1,329 Cross-currency swaps OA / (AP) — — 95 — — 95 Futures contracts on money market instruments OA / (AP) 1 (5 ) 3,799 — — 2,467 Options/Futures contracts on notes and bonds OA / (AP) 6 (11 ) 1,238 6 (29 ) 1,636 Convertible securities (1) FM AFS / ES 222 — 222 291 — 267 $ 239 $ (27 ) $ 6,493 $ 309 $ (36 ) $ 5,794 Other derivative instruments Futures contracts on equities (2) OA / (AP) $ 23 $ — $ 1,123 $ — $ (21 ) $ 1,384 Options on equity market indices (2) OA / (AP) — — — 2 — 250 Other OA / (AP) 3 (7 ) 66 — (4 ) 10 $ 26 $ (7 ) $ 1,189 $ 2 $ (25 ) $ 1,644 GLB (3) (AP) / (FPB) $ (1,017 ) $ 1,224 $ (663 ) $ 675 (1) Includes fair value of embedded derivatives. (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 September 30, 2015 and December 31, 2014, derivative assets of $19 million and derivative liabilities of $34 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. b) Secured borrowings ACE participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. At September 30, 2015 and December 31, 2014, our securities lending collateral was $1,011 million and $1,330 million, respectively, and our securities lending payable, reflecting our obligation to return the collateral plus interest, was $1,012 million and $1,331 million, respectively. At September 30, 2015 the securities lending collateral held by ACE on overnight and continuous securities lending contracts comprised $492 million of Cash, $385 million of Foreign securities, $77 million of U.S. Treasury and agency securities, and $57 million of Corporate securities. The carrying value of the securities lending collateral held is $1 million lower than the securities lending payable due to accrued interest recorded in the securities lending payable. The securities lending collateral can only be drawn down by ACE 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. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the consolidated balance sheets. At September 30, 2015 and December 31, 2014, our repurchase agreement obligations of $1,403 million and $1,402 million , respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale and Equity securities and the repurchase agreement obligation is recorded in Short-term debt in the consolidated balance sheets. The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and maturity date of the underlying agreements: Remaining contractual maturity September 30, 2015 Up to 30 Days 30 - 90 Days Greater than 90 Days Total (in millions of U.S. dollars) Collateral pledged under repurchase agreements: Cash $ — $ — $ 8 $ 8 U.S. Treasury and agency 172 61 7 240 Mortgage-backed securities 250 94 876 1,220 $ 422 $ 155 $ 891 $ 1,468 Gross amount of recognized liabilities for repurchase agreements $ 1,403 Difference (1) $ 65 (1) Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, ACE will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that ACE may not be able to renew outstanding borrowings with a new term or with an existing counterparty due to market conditions including a decrease in demand as well as more restrictive terms from banks due to increased regulatory and capital constraints. Should this condition occur, ACE may seek alternative borrowing sources or reduce borrowings. Additionally, increased margins and collateral requirements due to market conditions would increase our restricted assets as we are required to provide additional collateral to support the transaction. The following table presents net realized gains (losses) related to derivative instrument activity in the consolidated statements of operations: Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2015 2014 2015 2014 Investment and embedded derivative instruments Foreign currency forward contracts $ 15 $ 19 $ 30 $ 15 All other futures contracts and options (23 ) (15 ) (10 ) (55 ) Convertible securities (1) (14 ) (17 ) (14 ) (13 ) Total investment and embedded derivative instruments $ (22 ) $ (13 ) $ 6 $ (53 ) GLB and other derivative instruments GLB (2) $ (396 ) $ (80 ) $ (337 ) $ (126 ) Futures contracts on equities (3) 84 (15 ) 71 (103 ) Options on equity market indices (3) (1 ) — (2 ) (3 ) Other (9 ) 45 (10 ) 52 Total GLB and other derivative instruments $ (322 ) $ (50 ) $ (278 ) $ (180 ) $ (344 ) $ (63 ) $ (272 ) $ (233 ) (1) Includes embedded derivatives. (2) Excludes foreign exchange gains (losses) related to GLB. (3) Related to GMDB and GLB blocks of business. c) 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 as discussed above. (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, an increase in 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, an increase in 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, 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 security is a debt instrument or preferred stock that can be converted into a predetermined amount of the issuer’s equity. The convertible option is an embedded derivative within the host instruments which are classified in the investment portfolio as either available for sale or as an equity security. ACE purchases convertible securities 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 an 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. d) Fixed maturities At September 30, 2015 , we have commitments to purchase fixed income securities of $280 million over the next several years. e) Other investments At September 30, 2015 , included in Other investments in the consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $2.2 billion. In connection with these investments, we have commitments that may require funding of up to $916 million over the next several years. f) Taxation At September 30, 2015 , $22 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. g) 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 | 9 Months Ended |
Sep. 30, 2015 | |
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 2013 annual general meeting, our shareholders approved an annual dividend for the following year of $2.04 per share, payable in four quarterly installments of $ 0.51 per share after the annual general meeting 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. At our May 2014 annual general meeting, our shareholders approved an annual dividend for the following year of $2.60 per share, payable in four quarterly installments of $0.65 per share after the annual general meeting in the form of a distribution by way of a par value reduction. At our May 2015 annual general meeting, our shareholders approved an annual dividend for the following year of up to $ 2.68 per share, expected to be paid in four quarterly installments of $ 0.67 per share after the annual general meeting by way of a distribution from capital contribution reserves, transferred to free reserves for payment. The Board of Directors (Board) will determine the record and payment dates at which the annual dividend may be paid, and is authorized to abstain from distributing a dividend in its discretion, until the date of the 2016 annual general meeting. The first two quarterly installments, each of $0.67 per share, have been distributed by the Board as expected. The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD): Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 CHF USD CHF USD CHF USD CHF USD Dividends – par value reduction — $ 0.61 $ 0.65 0.62 $ 0.65 1.64 $ 1.81 Dividends – distributed from capital contribution reserves 0.65 0.67 — — 1.27 1.34 0.20 0.24 Total dividend distributions per common share 0.65 $ 0.67 0.61 $ 0.65 1.89 $ 1.99 1.84 $ 2.05 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 24.15 at September 30, 2015 . 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 September 30, 2015 , 18,770,044 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans. ACE Limited securities repurchase authorization In November 2014, the Board announced authorization of a share repurchase program of $1.5 billion of ACE's Common Shares for the period January 1, 2015 through December 31, 2015 to replace the November 2013 authorization when it expired on December 31, 2014. In November 2013, the Board announced authorization of a share repurchase program of up to $ 2.0 billion of ACE's Common Shares through December 31, 2014. The following table presents repurchases of ACE's Common Shares conducted in a series of open market transactions under the Board authorizations: (in millions of U.S. dollars, except share data) Three Months Ended September 30 Nine Months Ended September 30 2015 2014 2015 2014 Number of shares repurchased — 4,349,302 6,677,663 10,143,184 Cost of shares repurchased $ — $ 450 $ 734 $ 1,019 Repurchase authorization remaining at end of period $ 766 $ 924 $ 766 $ 924 |
Share-based compensation
Share-based compensation | 9 Months Ended |
Sep. 30, 2015 | |
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 26, 2015 , ACE granted 1,891,195 stock options with a weighted-average grant date fair value of $18.49 each. The fair value of the options issued is estimated on the grant date 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 26, 2015 , ACE granted 1,278,250 restricted stock awards and 290,475 restricted stock units to employees and officers with a grant date fair value of $114.78 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting. |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2015 | |
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. Corporate includes the results of ACE’s non-insurance subsidiaries, including ACE Limited, ACE Group Management and Holdings Ltd., and ACE INA Holdings, Inc. Corporate results consist primarily of interest expense, corporate staff expenses, Chubb integration expenses and other expenses not attributable to specific reportable segments, and intersegment eliminations. 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 on crop derivatives as a component of underwriting income. For example, for the three months ended September 30, 2015 , underwriting income in our Insurance – North American Agriculture segment was $73 million . This amount includes $4 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 September 30, 2015 , Life underwriting income of $ 64 million includes Net investment income of $ 66 million and losses from fair value changes in separate account assets of $ 49 million. The following tables present the Statement of Operations by segment: For the Three Months Ended September 30, 2015 Insurance – North American P&C Insurance – North American Agriculture Insurance – Overseas General Global Reinsurance Life Corporate ACE Consolidated (in millions of U.S. dollars) Net premiums written $ 1,711 $ 737 $ 1,584 $ 185 $ 492 $ — $ 4,709 Net premiums earned 1,682 739 1,615 203 480 — 4,719 Losses and loss expenses 1,175 620 674 20 153 1 2,643 Policy benefits — — — — 89 — 89 Policy acquisition costs 155 42 405 52 117 — 771 Administrative expenses 192 — 246 12 74 44 568 Underwriting income (loss) 160 77 290 119 47 (45 ) 648 Net investment income 266 5 132 76 66 4 549 Net realized gains (losses) including OTTI (33 ) (4 ) (13 ) (14 ) (326 ) (7 ) (397 ) Interest expense 3 — 1 1 1 62 68 Other (income) expense: (Gains) losses from fair value changes in separate account assets — — — — 49 — 49 Other (16 ) (1 ) (6 ) (2 ) (13 ) 1 (37 ) Amortization of intangible assets 31 8 12 — — — 51 Chubb integration expenses — — — — — 9 9 Income tax expense (benefit) 70 15 76 8 8 (45 ) 132 Net income (loss) $ 305 $ 56 $ 326 $ 174 $ (258 ) $ (75 ) $ 528 For the Three Months Ended September 30, 2014 Insurance – North American P&C Insurance – North American Agriculture Insurance – Overseas General Global Reinsurance Life Corporate ACE Consolidated (in millions of U.S. dollars) Net premiums written $ 1,541 $ 764 $ 1,719 $ 208 $ 497 $ — $ 4,729 Net premiums earned 1,518 766 1,726 255 489 — 4,754 Losses and loss expenses 1,053 686 707 92 145 1 2,684 Policy benefits — — — — 125 — 125 Policy acquisition costs 169 41 418 74 123 — 825 Administrative expenses 165 3 258 13 71 44 554 Underwriting income (loss) 131 36 343 76 25 (45 ) 566 Net investment income 277 6 130 81 69 3 566 Net realized gains (losses) including OTTI (5 ) 45 (75 ) 6 (89 ) (2 ) (120 ) Interest expense 2 — 2 1 4 61 70 Other (income) expense: (Gains) losses from fair value changes in separate account assets — — — — 6 — 6 Other (31 ) (1 ) (13 ) (10 ) (3 ) 6 (52 ) Amortization of intangible assets — 8 19 — — — 27 Income tax expense (benefit) 73 23 97 11 12 (40 ) 176 Net income (loss) $ 359 $ 57 $ 293 $ 161 $ (14 ) $ (71 ) $ 785 For the Nine Months Ended September 30, 2015 Insurance – North American P&C Insurance – North American Agriculture Insurance – Overseas General Global Reinsurance Life Corporate ACE Consolidated (in millions of U.S. dollars) Net premiums written $ 5,116 $ 1,204 $ 5,047 $ 719 $ 1,483 $ — $ 13,569 Net premiums earned 4,896 1,124 4,896 649 1,441 — 13,006 Losses and loss expenses 3,330 913 2,304 191 442 2 7,182 Policy benefits — — — — 384 — 384 Policy acquisition costs 446 61 1,190 166 342 — 2,205 Administrative expenses 552 3 756 37 221 131 1,700 Underwriting income (loss) 568 147 646 255 52 (133 ) 1,535 Net investment income 798 17 409 230 198 10 1,662 Net realized gains (losses) including OTTI (39 ) (6 ) (10 ) (20 ) (282 ) (3 ) (360 ) Interest expense 7 — 3 3 4 190 207 Other (income) expense: (Gains) losses from fair value changes in separate account assets — — — — 32 — 32 Other (32 ) 1 (19 ) (10 ) (43 ) 10 (93 ) Amortization of intangible assets 63 22 50 — 1 — 136 Chubb integration expenses — — — — — 9 9 Income tax expense (benefit) 239 29 197 23 27 (120 ) 395 Net income (loss) $ 1,050 $ 106 $ 814 $ 449 $ (53 ) $ (215 ) $ 2,151 For the Nine Months Ended September 30, 2014 Insurance – North American P&C Insurance – North American Agriculture Insurance – Overseas General Global Reinsurance Life Corporate ACE Consolidated (in millions of U.S. dollars) Net premiums written $ 4,594 $ 1,346 $ 5,250 $ 794 $ 1,489 $ — $ 13,473 Net premiums earned 4,547 1,199 5,047 800 1,463 — 13,056 Losses and loss expenses 3,009 1,099 2,354 327 442 2 7,233 Policy benefits — — — — 383 — 383 Policy acquisition costs 480 69 1,206 201 355 — 2,311 Administrative expenses 501 5 764 41 212 132 1,655 Underwriting income (loss) 557 26 723 231 71 (134 ) 1,474 Net investment income 812 19 398 238 199 9 1,675 Net realized gains (losses) including OTTI (25 ) 51 (71 ) (17 ) (237 ) 2 (297 ) Interest expense 7 — 4 4 10 188 213 Other (income) expense: (Gains) losses from fair value changes in separate account assets — — — — (5 ) — (5 ) Other (75 ) — (44 ) (39 ) 6 18 (134 ) Amortization of intangible assets — 24 52 — 2 — 78 Income tax expense (benefit) 247 21 189 31 34 (120 ) 402 Net income (loss) $ 1,165 $ 51 $ 849 $ 456 $ (14 ) $ (209 ) $ 2,298 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 & All Other Casualty Life, Accident & Health ACE Consolidated For the Three Months Ended September 30, 2015 Insurance – North American P&C $ 511 $ 1,063 $ 108 $ 1,682 Insurance – North American Agriculture 739 — — 739 Insurance – Overseas General 706 386 523 1,615 Global Reinsurance 104 99 — 203 Life — — 480 480 $ 2,060 $ 1,548 $ 1,111 $ 4,719 For the Three Months Ended September 30, 2014 Insurance – North American P&C $ 420 $ 993 $ 105 $ 1,518 Insurance – North American Agriculture 766 — — 766 Insurance – Overseas General 744 394 588 1,726 Global Reinsurance 149 106 — 255 Life — — 489 489 $ 2,079 $ 1,493 $ 1,182 $ 4,754 (in millions of U.S. dollars) Property & Casualty Life, ACE For the Nine Months Ended September 30, 2015 Insurance – North American P&C $ 1,428 $ 3,157 $ 311 $ 4,896 Insurance – North American Agriculture 1,124 — — 1,124 Insurance – Overseas General 2,163 1,159 1,574 4,896 Global Reinsurance 323 326 — 649 Life — — 1,441 1,441 $ 5,038 $ 4,642 $ 3,326 $ 13,006 For the Nine Months Ended September 30, 2014 Insurance – North American P&C $ 1,248 $ 2,992 $ 307 $ 4,547 Insurance – North American Agriculture 1,199 — — 1,199 Insurance – Overseas General 2,164 1,158 1,725 5,047 Global Reinsurance 435 365 — 800 Life — — 1,463 1,463 $ 5,046 $ 4,515 $ 3,495 $ 13,056 |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars, except share and per share data) 2015 2014 2015 2014 Numerator: Net income $ 528 $ 785 $ 2,151 $ 2,298 Denominator: Denominator for basic earnings per share: Weighted-average shares outstanding 324,210,936 334,472,324 325,904,502 337,083,498 Denominator for diluted earnings per share: Share-based compensation plans 2,962,484 3,201,656 3,269,724 3,298,569 Weighted-average shares outstanding and assumed conversions 327,173,420 337,673,980 329,174,226 340,382,067 Basic earnings per share $ 1.63 $ 2.35 $ 6.60 $ 6.82 Diluted earnings per share $ 1.62 $ 2.32 $ 6.53 $ 6.75 Potential anti-dilutive share conversions 1,907,815 1,227,575 1,503,830 1,410,340 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 connect
Information provided in connection with outstanding debt of subsidiaries | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014 , and for the three and nine months ended September 30, 2015 and 2014 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. Condensed consolidating financial information of the Parent Guarantor and Subsidiary Issuer are presented on the equity method of accounting. The revenues and expenses and cash flows of the subsidiaries of the Subsidiary Issuer are presented in the Other ACE Limited Subsidiaries column on a combined basis. Condensed Consolidating Balance Sheet at September 30, 2015 (in millions of U.S. dollars) ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated Assets Investments $ 29 $ 35 $ 62,320 $ — $ 62,384 Cash (1) 17 5 2,177 (1,161 ) 1,038 Insurance and reinsurance balances receivable — — 6,284 (994 ) 5,290 Reinsurance recoverable on losses and loss expenses — — 20,039 (8,808 ) 11,231 Reinsurance recoverable on policy benefits — — 1,148 (954 ) 194 Value of business acquired — — 410 — 410 Goodwill and other intangible assets — — 5,713 — 5,713 Investments in subsidiaries 29,441 19,184 — (48,625 ) — Due from subsidiaries and affiliates, net 866 — — (866 ) — Other assets 9 272 14,880 (3,661 ) 11,500 Total assets $ 30,362 $ 19,496 $ 112,971 $ (65,069 ) $ 97,760 Liabilities Unpaid losses and loss expenses $ — $ — $ 45,810 $ (8,246 ) $ 37,564 Unearned premiums — — 10,329 (1,819 ) 8,510 Future policy benefits — — 5,730 (954 ) 4,776 Due to subsidiaries and affiliates, net — 698 168 (866 ) — Affiliated notional cash pooling programs (1) 973 188 — (1,161 ) — Short-term debt — 700 1,403 — 2,103 Long-term debt — 4,145 12 — 4,157 Trust preferred securities — 309 — — 309 Other liabilities 262 1,458 12,892 (3,398 ) 11,214 Total liabilities 1,235 7,498 76,344 (16,444 ) 68,633 Total shareholders’ equity 29,127 11,998 36,627 (48,625 ) 29,127 Total liabilities and shareholders’ equity $ 30,362 $ 19,496 $ 112,971 $ (65,069 ) $ 97,760 (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 September 30, 2015 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Balance Sheet at December 31, 2014 (in millions of U.S. dollars) ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated Assets Investments $ 30 $ 225 $ 62,649 $ — $ 62,904 Cash (1) — 1 1,209 (555 ) 655 Insurance and reinsurance balances receivable — — 6,178 (752 ) 5,426 Reinsurance recoverable on losses and loss expenses — — 20,992 (9,000 ) 11,992 Reinsurance recoverable on policy benefits — — 1,194 (977 ) 217 Value of business acquired — — 466 — 466 Goodwill and other intangible assets — — 5,724 — 5,724 Investments in subsidiaries 29,497 18,762 — (48,259 ) — Due from subsidiaries and affiliates, net 583 — — (583 ) — Other assets 4 295 14,196 (3,631 ) 10,864 Total assets $ 30,114 $ 19,283 $ 112,608 $ (63,757 ) $ 98,248 Liabilities Unpaid losses and loss expenses $ — $ — $ 46,770 $ (8,455 ) $ 38,315 Unearned premiums — — 9,958 (1,736 ) 8,222 Future policy benefits — — 5,731 (977 ) 4,754 Due to subsidiaries and affiliates, net — 422 161 (583 ) — Affiliated notional cash pooling programs (1) 246 309 — (555 ) — Short-term debt — 1,150 1,402 — 2,552 Long-term debt — 3,345 12 — 3,357 Trust preferred securities — 309 — — 309 Other liabilities 281 1,404 12,659 (3,192 ) 11,152 Total liabilities 527 6,939 76,693 (15,498 ) 68,661 Total shareholders’ equity 29,587 12,344 35,915 (48,259 ) 29,587 Total liabilities and shareholders’ equity $ 30,114 $ 19,283 $ 112,608 $ (63,757 ) $ 98,248 (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, 2014 , 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 September 30, 2015 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 4,709 $ — $ 4,709 Net premiums earned — — 4,719 — 4,719 Net investment income 1 1 547 — 549 Equity in earnings of subsidiaries 488 255 — (743 ) — Net realized gains (losses) including OTTI — (4 ) (393 ) — (397 ) Losses and loss expenses — — 2,643 — 2,643 Policy benefits — — 89 — 89 Policy acquisition costs and administrative expenses 15 7 1,317 — 1,339 Interest (income) expense (8 ) 68 8 — 68 Other (income) expense (51 ) (5 ) 68 — 12 Amortization of intangible assets — — 51 — 51 Chubb integration expenses 1 8 — — 9 Income tax expense (benefit) 4 (31 ) 159 — 132 Net income $ 528 $ 205 $ 538 $ (743 ) $ 528 Comprehensive income (loss) $ (271 ) $ (265 ) $ (262 ) $ 527 $ (271 ) Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended September 30, 2014 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 4,729 $ — $ 4,729 Net premiums earned — — 4,754 — 4,754 Net investment income 1 — 565 — 566 Equity in earnings of subsidiaries 745 258 — (1,003 ) — Net realized gains (losses) including OTTI — 46 (166 ) — (120 ) Losses and loss expenses — — 2,684 — 2,684 Policy benefits — — 125 — 125 Policy acquisition costs and administrative expenses 18 6 1,355 — 1,379 Interest (income) expense (7 ) 68 9 — 70 Other (income) expense (54 ) 2 6 — (46 ) Amortization of intangible assets — — 27 — 27 Income tax expense (benefit) 4 (11 ) 183 — 176 Net income $ 785 $ 239 $ 764 $ (1,003 ) $ 785 Comprehensive income $ 298 $ 33 $ 276 $ (309 ) $ 298 Condensed Consolidating Statements of Operations and Comprehensive Income For the Nine Months Ended September 30, 2015 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 13,569 $ — $ 13,569 Net premiums earned — — 13,006 — 13,006 Net investment income 2 2 1,658 — 1,662 Equity in earnings of subsidiaries 2,037 755 — (2,792 ) — Net realized gains (losses) including OTTI — (6 ) (354 ) — (360 ) Losses and loss expenses — — 7,182 — 7,182 Policy benefits — — 384 — 384 Policy acquisition costs and administrative expenses 47 20 3,838 — 3,905 Interest (income) expense (23 ) 206 24 — 207 Other (income) expense (149 ) (12 ) 100 — (61 ) Amortization of intangible assets — — 136 — 136 Chubb integration expenses 1 8 — — 9 Income tax expense (benefit) 12 (84 ) 467 — 395 Net income $ 2,151 $ 613 $ 2,179 $ (2,792 ) $ 2,151 Comprehensive income (loss) $ 768 $ (332 ) $ 795 $ (463 ) $ 768 Condensed Consolidating Statements of Operations and Comprehensive Income For the Nine Months Ended September 30, 2014 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 13,473 $ — $ 13,473 Net premiums earned — — 13,056 — 13,056 Net investment income 2 1 1,672 — 1,675 Equity in earnings of subsidiaries 2,192 669 — (2,861 ) — Net realized gains (losses) including OTTI — 53 (350 ) — (297 ) Losses and loss expenses — — 7,233 — 7,233 Policy benefits — — 383 — 383 Policy acquisition costs and administrative expenses 57 20 3,889 — 3,966 Interest (income) expense (26 ) 209 30 — 213 Other (income) expense (146 ) 22 (15 ) — (139 ) Amortization of intangible assets — — 78 — 78 Income tax expense (benefit) 11 (66 ) 457 — 402 Net income $ 2,298 $ 538 $ 2,323 $ (2,861 ) $ 2,298 Comprehensive income $ 2,754 $ 810 $ 2,778 $ (3,588 ) $ 2,754 Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2015 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net cash flows from (used for) operating activities $ 350 $ (46 ) $ 2,671 $ (276 ) $ 2,699 Cash flows from investing activities Purchases of fixed maturities available for sale — — (13,052 ) (8 ) (13,060 ) Purchases of fixed maturities held to maturity — — (39 ) — (39 ) Purchases of equity securities — — (122 ) — (122 ) Sales of fixed maturities available for sale — — 5,233 — 5,233 Sales of equity securities — — 150 — 150 Maturities and redemptions of fixed maturities available for sale — — 5,257 — 5,257 Maturities and redemptions of fixed maturities held to maturity — — 552 — 552 Net change in short-term investments — 215 206 — 421 Net derivative instruments settlements — (10 ) 72 — 62 Acquisition of subsidiaries (net of cash acquired of $620) — — 259 — 259 Capital contribution — (625 ) — 625 — Other — (25 ) (121 ) 8 (138 ) Net cash flows used for investing activities — (445 ) (1,605 ) 625 (1,425 ) Cash flows from financing activities Dividends paid on Common Shares (644 ) — — — (644 ) Common Shares repurchased — — (758 ) — (758 ) Proceeds from issuance of long-term debt — 800 — — 800 Proceeds from issuance of short-term debt — — 1,478 — 1,478 Repayment of long-term debt — (450 ) (1 ) — (451 ) Repayment of short-term debt — — (1,477 ) — (1,477 ) Proceeds from share-based compensation plans, including windfall tax benefits — — 89 — 89 Dividend to parent company — — (276 ) 276 — Advances (to) from affiliates (416 ) 272 144 — — Capital contribution — — 625 (625 ) — Net proceeds from (payments to) affiliated notional cash pooling programs (1) 727 (121 ) — (606 ) — Policyholder contract deposits — — 351 — 351 Policyholder contract withdrawals — — (159 ) — (159 ) Other — (6 ) — — (6 ) Net cash flows (used for) from financing activities (333 ) 495 16 (955 ) (777 ) Effect of foreign currency rate changes on cash and cash equivalents — — (114 ) — (114 ) Net increase in cash 17 4 968 (606 ) 383 Cash – beginning of period (1) — 1 1,209 (555 ) 655 Cash – end of period (1) $ 17 $ 5 $ 2,177 $ (1,161 ) $ 1,038 (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 September 30, 2015 and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2014 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net cash flows from operating activities $ 168 $ 139 $ 3,115 $ (200 ) $ 3,222 Cash flows from investing activities Purchases of fixed maturities available for sale — — (11,870 ) 3 (11,867 ) Purchases of fixed maturities held to maturity — — (185 ) — (185 ) Purchases of equity securities — — (222 ) — (222 ) Sales of fixed maturities available for sale — — 6,309 (3 ) 6,306 Sales of equity securities — — 322 — 322 Maturities and redemptions of fixed maturities available for sale — — 4,814 — 4,814 Maturities and redemptions of fixed maturities held to maturity — — 617 — 617 Net change in short-term investments 1 (16 ) (969 ) — (984 ) Net derivative instruments settlements — 53 (223 ) — (170 ) Acquisition of subsidiaries (net of cash acquired of $4) — — (172 ) — (172 ) Capital contribution — (230 ) — 230 — Other — (9 ) (138 ) — (147 ) Net cash flows from (used for) investing activities 1 (202 ) (1,717 ) 230 (1,688 ) Cash flows from financing activities Dividends paid on Common Shares (646 ) — — — (646 ) Common Shares repurchased — — (1,007 ) — (1,007 ) Proceeds from issuance of long-term debt — 699 — — 699 Proceeds from issuance of short-term debt — — 1,827 — 1,827 Repayment of long-term debt — (500 ) (1 ) — (501 ) Repayment of short-term debt — — (1,827 ) — (1,827 ) Proceeds from share-based compensation plans, including windfall tax benefits — — 94 — 94 Dividend to parent company — — (200 ) 200 — Advances (to) from affiliates 97 (166 ) 69 — — Capital contribution — — 230 (230 ) — Net proceeds from (payments to) affiliated notional cash pooling programs (1) 388 32 — (420 ) — Policyholder contract deposits — — 189 — 189 Policyholder contract withdrawals — — (62 ) — (62 ) Other — (6 ) — — (6 ) Net cash flows (used for) from financing activities (161 ) 59 (688 ) (450 ) (1,240 ) Effect of foreign currency rate changes on cash and cash equivalents — — (67 ) — (67 ) Net increase (decrease) in cash 8 (4 ) 643 (420 ) 227 Cash – beginning of period (1) — 16 748 (185 ) 579 Cash – end of period (1) $ 8 $ 12 $ 1,391 $ (605 ) $ 806 (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 September 30, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | a) 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 10 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, including internal reinsurance 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 2014 Form 10-K. Effective third quarter of 2015, amortization of intangible assets are excluded from Other (income) expense and disclosed separately in the consolidated statements of operations. Prior year amounts have been reclassified to conform to the current year presentation. In addition, we added a new expense caption (Chubb integration expenses), which includes legal and professional fees and all other external costs directly related to the integration activities of the planned Chubb acquisition. |
Accounting guidance adopted in 2015 | Business Combinations – Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the Financial Accounting Standards Board (FASB) issued guidance to simplify the accounting for adjustments made to provisional valuation amounts recognized in a business combination. The guidance requires that the acquirer must recognize adjustments to provisional valuation amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance eliminates the requirement to retrospectively account for such adjustments. Previously, the accounting for measurement-period adjustments required the acquirer to retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. We early adopted this guidance effective July 1, 2015. The adoption of this guidance did not have an impact on our financial condition or results of operations. Disclosures for investments in certain entities that calculate net asset value (NAV) In May 2015, the FASB issued guidance that eliminated the requirement for investments measured at fair value using NAV as a practical expedient to be categorized within the fair value hierarchy. We early adopted this guidance effective July 1, 2015 and have retrospectively revised prior year fair value hierarchy disclosures contained in this report to conform to the current period presentation. Refer to Note 4 Fair Value Measurement for further information. This guidance requires a change in disclosure only and adoption of this guidance did not have an impact on our financial condition or results of operations. |
Accounting guidance not yet adopted | Presentation of Debt Issuance Costs In April 2015, the FASB issued new guidance related to the accounting for debt issuance costs. The new guidance requires presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. The new guidance requires retrospective adoption and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance will not have any effect on our results of operations and financial condition. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Amortized Cost And Fair Value Of Fixed Maturities And Related OTTI Recognized In AOCI | September 30, 2015 Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value OTTI Recognized in AOCI (in millions of U.S. dollars) Available for sale U.S. Treasury and agency $ 2,800 $ 85 $ — $ 2,885 $ — Foreign 13,976 523 (208 ) 14,291 (6 ) Corporate securities 16,790 467 (365 ) 16,892 (14 ) Mortgage-backed securities 10,858 286 (25 ) 11,119 (1 ) States, municipalities, and political subdivisions 2,987 111 (7 ) 3,091 — $ 47,411 $ 1,472 $ (605 ) $ 48,278 $ (21 ) Held to maturity U.S. Treasury and agency $ 756 $ 19 $ (1 ) $ 774 $ — Foreign 784 38 (4 ) 818 — Corporate securities 3,093 74 (41 ) 3,126 — Mortgage-backed securities 1,758 60 (1 ) 1,817 — States, municipalities, and political subdivisions 2,173 44 (2 ) 2,215 — $ 8,564 $ 235 $ (49 ) $ 8,750 $ — December 31, 2014 Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value OTTI Recognized in AOCI (in millions of U.S. dollars) Available for sale U.S. Treasury and agency $ 2,741 $ 87 $ (8 ) $ 2,820 $ — Foreign 14,703 629 (90 ) 15,242 — Corporate securities 16,897 704 (170 ) 17,431 (7 ) Mortgage-backed securities 10,011 304 (29 ) 10,286 (1 ) States, municipalities, and political subdivisions 3,474 147 (5 ) 3,616 — $ 47,826 $ 1,871 $ (302 ) $ 49,395 $ (8 ) Held to maturity U.S. Treasury and agency $ 832 $ 20 $ (2 ) $ 850 $ — Foreign 916 47 — 963 — Corporate securities 2,323 102 (2 ) 2,423 — Mortgage-backed securities 1,983 57 (1 ) 2,039 — States, municipalities, and political subdivisions 1,277 40 (3 ) 1,314 — $ 7,331 $ 266 $ (8 ) $ 7,589 $ — |
Schedule Of Fixed Maturities By Contractual Maturity | September 30 December 31 2015 2014 (in millions of U.S. dollars) Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Due in 1 year or less $ 1,979 $ 1,995 $ 2,187 $ 2,206 Due after 1 year through 5 years 16,472 16,794 15,444 15,857 Due after 5 years through 10 years 13,695 13,708 15,663 16,089 Due after 10 years 4,407 4,662 4,521 4,957 36,553 37,159 37,815 39,109 Mortgage-backed securities 10,858 11,119 10,011 10,286 $ 47,411 $ 48,278 $ 47,826 $ 49,395 Held to maturity Due in 1 year or less $ 411 $ 413 $ 353 $ 355 Due after 1 year through 5 years 2,583 2,683 2,603 2,693 Due after 5 years through 10 years 2,278 2,300 1,439 1,489 Due after 10 years 1,534 1,537 953 1,013 6,806 6,933 5,348 5,550 Mortgage-backed securities 1,758 1,817 1,983 2,039 $ 8,564 $ 8,750 $ 7,331 $ 7,589 |
Schedule Of Cost And Fair Value Of Equity Securities | September 30 December 31 (in millions of U.S. dollars) 2015 2014 Cost $ 434 $ 440 Gross unrealized appreciation 54 83 Gross unrealized depreciation (24 ) (13 ) Fair value $ 464 $ 510 |
Schedule Of Net Realized Gains (Losses) And The Losses Included In Net Realized Gains (Losses) And OCI | Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2015 2014 2015 2014 Fixed maturities: OTTI on fixed maturities, gross $ (31 ) $ (5 ) $ (57 ) $ (20 ) OTTI on fixed maturities recognized in OCI (pre-tax) 5 1 11 3 OTTI on fixed maturities, net (26 ) (4 ) (46 ) (17 ) Gross realized gains excluding OTTI 19 73 91 163 Gross realized losses excluding OTTI (44 ) (51 ) (95 ) (97 ) Total fixed maturities (51 ) 18 (50 ) 49 Equity securities: OTTI on equity securities (3 ) — (4 ) (7 ) Gross realized gains excluding OTTI 10 4 43 8 Gross realized losses excluding OTTI (5 ) (60 ) (7 ) (61 ) Total equity securities 2 (56 ) 32 (60 ) OTTI on other investments (1 ) — (1 ) (3 ) Foreign exchange losses (2 ) (19 ) (73 ) (42 ) Investment and embedded derivative instruments (22 ) (13 ) 6 (53 ) Fair value adjustments on insurance derivative (396 ) (80 ) (337 ) (126 ) S&P put options and futures 83 (15 ) 69 (106 ) Other derivative instruments (9 ) 45 (10 ) 52 Other (1 ) — 4 (8 ) Net realized gains (losses) $ (397 ) $ (120 ) $ (360 ) $ (297 ) |
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 Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2015 2014 2015 2014 Balance of credit losses related to securities still held – beginning of period $ 23 $ 24 $ 28 $ 37 Additions where no OTTI was previously recorded 8 2 15 9 Additions where an OTTI was previously recorded 6 2 8 5 Reductions for securities sold during the period (5 ) (11 ) (19 ) (34 ) Balance of credit losses related to securities still held – end of period $ 32 $ 17 $ 32 $ 17 |
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 September 30, 2015 Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of U.S. dollars) U.S. Treasury and agency $ 228 $ (1 ) $ 59 $ — $ 287 $ (1 ) Foreign 3,627 (160 ) 402 (52 ) 4,029 (212 ) Corporate securities 6,641 (322 ) 801 (84 ) 7,442 (406 ) Mortgage-backed securities 2,145 (16 ) 626 (10 ) 2,771 (26 ) States, municipalities, and political subdivisions 766 (7 ) 57 (2 ) 823 (9 ) Total fixed maturities 13,407 (506 ) 1,945 (148 ) 15,352 (654 ) Equity securities 151 (24 ) — — 151 (24 ) Other investments 83 (2 ) — — 83 (2 ) Total $ 13,641 $ (532 ) $ 1,945 $ (148 ) $ 15,586 $ (680 ) 0 – 12 Months Over 12 Months Total December 31, 2014 Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of U.S. dollars) U.S. Treasury and agency $ 350 $ (1 ) $ 666 $ (9 ) $ 1,016 $ (10 ) Foreign 2,262 (75 ) 375 (15 ) 2,637 (90 ) Corporate securities 4,684 (150 ) 738 (22 ) 5,422 (172 ) Mortgage-backed securities 704 (2 ) 1,663 (28 ) 2,367 (30 ) States, municipalities, and political subdivisions 458 (3 ) 490 (5 ) 948 (8 ) Total fixed maturities 8,458 (231 ) 3,932 (79 ) 12,390 (310 ) Equity securities 101 (13 ) — — 101 (13 ) Total $ 8,559 $ (244 ) $ 3,932 $ (79 ) $ 12,491 $ (323 ) |
Schedule Of Components Of Restricted Assets | September 30 December 31 (in millions of U.S. dollars) 2015 2014 Trust funds $ 10,990 $ 10,838 Deposits with non-U.S. regulatory authorities 2,105 2,305 Assets pledged under repurchase agreements 1,468 1,431 Deposits with U.S. regulatory authorities 1,322 1,345 Other pledged assets 388 457 $ 16,273 $ 16,376 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured At Fair Value On A Recurring Basis | September 30, 2015 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 1,919 $ 966 $ — $ 2,885 Foreign — 14,238 53 14,291 Corporate securities — 16,709 183 16,892 Mortgage-backed securities — 11,065 54 11,119 States, municipalities, and political subdivisions — 3,091 — 3,091 1,919 46,069 290 48,278 Equity securities 455 5 4 464 Short-term investments 703 1,105 — 1,808 Other investments (1) 314 218 209 741 Securities lending collateral — 1,011 — 1,011 Investment derivative instruments 17 — — 17 Other derivative instruments 26 — — 26 Separate account assets 1,423 83 — 1,506 Total assets measured at fair value (1) $ 4,857 $ 48,491 $ 503 $ 53,851 Liabilities: Investment derivative instruments $ 27 $ — $ — $ 27 Other derivative instruments — — 7 7 GLB (2) — — 744 744 Total liabilities measured at fair value $ 27 $ — $ 751 $ 778 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,504 million and other investments of $25 million at September 30, 2015 measured using NAV. Based on new accounting guidance adopted this quarter, these investments are excluded from the hierarchy table. (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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. December 31, 2014 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 1,680 $ 1,140 $ — $ 2,820 Foreign — 15,220 22 15,242 Corporate securities — 17,244 187 17,431 Mortgage-backed securities — 10,271 15 10,286 States, municipalities, and political subdivisions — 3,616 — 3,616 1,680 47,491 224 49,395 Equity securities 492 16 2 510 Short-term investments 1,183 1,139 — 2,322 Other investments (1) 370 211 204 785 Securities lending collateral — 1,330 — 1,330 Investment derivative instruments 18 — — 18 Other derivative instruments — 2 — 2 Separate account assets 1,400 90 — 1,490 Total assets measured at fair value (1) $ 5,143 $ 50,279 $ 430 $ 55,852 Liabilities: Investment derivative instruments $ 36 $ — $ — $ 36 Other derivative instruments 21 — 4 25 GLB (2) — — 406 406 Total liabilities measured at fair value $ 57 $ — $ 410 $ 467 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,561 million at December 31, 2014 measured using NAV. Based on new accounting guidance adopted this quarter, these investments are excluded from the hierarchy table. (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 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 | September 30 December 31 Expected Liquidation Period of Underlying Assets 2015 2014 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 5 to 9 Years $ 309 $ 107 $ 282 $ 145 Real Assets 3 to 7 Years 473 168 451 210 Distressed 5 to 9 Years 265 231 232 175 Private Credit 3 to 7 Years 272 226 299 190 Traditional 3 to 9 Years 885 184 908 289 Vintage 1 to 2 Years 14 — 11 1 Investment funds Not Applicable 286 — 378 — $ 2,504 $ 916 $ 2,561 $ 1,010 |
Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations | (in millions of U.S. dollars, except for percentages) Fair Value Valuation Technique Significant Unobservable Inputs Ranges September 30, 2015 December 31, 2014 GLB (1) $ 744 $ 406 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 securities Other investments Other derivative instruments GLB (1) September 30, 2015 Foreign Corporate securities MBS (in millions of U.S. dollars) Balance–Beginning of Period $ 56 $ 167 $ 55 $ 2 $ 214 $ 3 $ 347 Transfers into Level 3 1 2 — — — — — Change in Net Unrealized Gains (Losses) included in OCI 1 1 — 2 (7 ) — — Net Realized Gains/Losses (1 ) (1 ) — (1 ) — 4 397 Purchases — 22 — 1 5 — — Sales — (5 ) (1 ) — — — — Settlements (4 ) (3 ) — — (3 ) — — Balance–End of Period $ 53 $ 183 $ 54 $ 4 $ 209 $ 7 $ 744 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (1 ) $ — $ — $ (1 ) $ — $ 4 $ 397 (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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. Assets Liabilities Nine Months Ended Available-for-Sale Debt Securities Short-term investments Other investments GLB (1) September 30, 2014 Foreign Corporate MBS Equity (in millions of U.S. dollars) Balance–Beginning of Period $ 44 $ 166 $ 8 $ 4 $ 7 $ 196 $ 193 Transfers into Level 3 3 35 — — — — — Transfers out of Level 3 (34 ) (22 ) — (2 ) (7 ) — — Change in Net Unrealized Gains (Losses) included in OCI (1 ) 1 — 1 — 1 — Net Realized Gains/Losses 1 2 — — — — 124 Purchases 2 65 8 1 — 15 — Sales (3 ) (17 ) — (2 ) — — — Settlements — (22 ) (1 ) — — (7 ) — Balance–End of Period $ 12 $ 208 $ 15 $ 2 $ — $ 205 $ 317 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ 124 (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 liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $566 million at September 30, 2014 and $427 million at December 31, 2013, which includes a fair value derivative adjustment of $317 million and $193 million , respectively. Assets Liabilities Nine Months Ended Available-for-Sale Debt Securities Equity Other Other GLB (1) September 30, 2015 Foreign Corporate MBS (in millions of U.S. dollars) Balance–Beginning of Period $ 22 $ 187 $ 15 $ 2 $ 204 4 $ 406 Transfers into Level 3 29 15 — — — — — Change in Net Unrealized Gains (Losses) included in OCI (1 ) 1 — 2 (7 ) — — Net Realized Gains/Losses (1 ) (4 ) — (2 ) — 3 338 Purchases 9 38 41 2 21 — — Sales (1 ) (10 ) (1 ) — — — — Settlements (4 ) (44 ) (1 ) — (9 ) — — Balance–End of Period $ 53 $ 183 $ 54 $ 4 $ 209 $ 7 $ 744 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (1 ) $ (2 ) $ — $ (2 ) $ — $ 3 $ 338 (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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. Assets Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Other GLB (1) September 30, 2014 Foreign Corporate MBS (in millions of U.S. dollars) Balance–Beginning of Period $ 12 $ 204 $ 7 $ 2 $ 203 $ 241 Transfers into Level 3 1 5 — — — — Change in Net Unrealized Gains (Losses) included in OCI — (1 ) — — (1 ) — Net Realized Gains/Losses — 2 — — — 76 Purchases — 20 8 — 6 — Sales (1 ) (9 ) — — — — Settlements — (13 ) — — (3 ) — Balance–End of Period $ 12 $ 208 $ 15 $ 2 $ 205 $ 317 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ 76 (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 liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $566 million at September 30, 2014 , and $486 million at June 30, 2014, which includes a fair value derivative adjustment of $317 million and $241 million, respectively. |
Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value | September 30, 2015 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 $ 599 $ 175 $ — $ 774 $ 756 Foreign — 818 — 818 784 Corporate securities — 3,112 14 3,126 3,093 Mortgage-backed securities — 1,817 — 1,817 1,758 States, municipalities, and political subdivisions — 2,215 — 2,215 2,173 Total assets $ 599 $ 8,137 $ 14 $ 8,750 $ 8,564 Liabilities: Short-term debt $ — $ 2,105 $ — $ 2,105 $ 2,103 Long-term debt — 4,376 — 4,376 4,157 Trust preferred securities — 457 — 457 309 Total liabilities $ — $ 6,938 $ — $ 6,938 $ 6,569 December 31, 2014 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 $ 659 $ 191 $ — $ 850 $ 832 Foreign — 963 — 963 916 Corporate securities — 2,408 15 2,423 2,323 Mortgage-backed securities — 2,039 — 2,039 1,983 States, municipalities, and political subdivisions — 1,314 — 1,314 1,277 Total assets $ 659 $ 6,915 $ 15 $ 7,589 $ 7,331 Liabilities: Short-term debt $ — $ 2,571 $ — $ 2,571 $ 2,552 Long-term debt — 3,690 — 3,690 3,357 Trust preferred securities — 462 — 462 309 Total liabilities $ — $ 6,723 $ — $ 6,723 $ 6,218 |
Assumed life reinsurance prog25
Assumed life reinsurance programs involving minimum benefit guarantees under annuity contracts (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reinsurance Disclosures [Abstract] | |
Schedule Of Guaranteed Minimum Death Benefits And Guaranteed Minimum Income Benefits Income And Expense | Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2015 2014 2015 2014 GMDB Net premiums earned $ 15 $ 17 $ 47 $ 54 Policy benefits and other reserve adjustments $ 5 $ 12 $ 25 $ 40 GLB Net premiums earned $ 30 $ 35 $ 92 $ 105 Policy benefits and other reserve adjustments 15 8 34 27 Net realized gains (losses) (397 ) (76 ) (338 ) (124 ) Loss recognized in Net income $ (382 ) $ (49 ) $ (280 ) $ (46 ) Less: Net cash received 20 31 74 93 Net increase in liability $ (402 ) $ (80 ) $ (354 ) $ (139 ) |
Commitments, contingencies, a26
Commitments, contingencies, and guarantees (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Balance Sheet Locations, Fair Values In An Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments | September 30, 2015 December 31, 2014 Consolidated Balance Sheet Location Fair Value Notional Value/ Payment Provision Fair Value Notional Value/ Payment Provision (in millions of U.S. dollars) Derivative Asset Derivative (Liability) Derivative Asset Derivative (Liability) Investment and embedded derivative instruments Foreign currency forward contracts OA / (AP) $ 10 $ (11 ) $ 1,139 $ 12 $ (7 ) $ 1,329 Cross-currency swaps OA / (AP) — — 95 — — 95 Futures contracts on money market instruments OA / (AP) 1 (5 ) 3,799 — — 2,467 Options/Futures contracts on notes and bonds OA / (AP) 6 (11 ) 1,238 6 (29 ) 1,636 Convertible securities (1) FM AFS / ES 222 — 222 291 — 267 $ 239 $ (27 ) $ 6,493 $ 309 $ (36 ) $ 5,794 Other derivative instruments Futures contracts on equities (2) OA / (AP) $ 23 $ — $ 1,123 $ — $ (21 ) $ 1,384 Options on equity market indices (2) OA / (AP) — — — 2 — 250 Other OA / (AP) 3 (7 ) 66 — (4 ) 10 $ 26 $ (7 ) $ 1,189 $ 2 $ (25 ) $ 1,644 GLB (3) (AP) / (FPB) $ (1,017 ) $ 1,224 $ (663 ) $ 675 (1) Includes fair value of embedded derivatives. (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. |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | Remaining contractual maturity September 30, 2015 Up to 30 Days 30 - 90 Days Greater than 90 Days Total (in millions of U.S. dollars) Collateral pledged under repurchase agreements: Cash $ — $ — $ 8 $ 8 U.S. Treasury and agency 172 61 7 240 Mortgage-backed securities 250 94 876 1,220 $ 422 $ 155 $ 891 $ 1,468 Gross amount of recognized liabilities for repurchase agreements $ 1,403 Difference (1) $ 65 (1) Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. |
Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations | Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2015 2014 2015 2014 Investment and embedded derivative instruments Foreign currency forward contracts $ 15 $ 19 $ 30 $ 15 All other futures contracts and options (23 ) (15 ) (10 ) (55 ) Convertible securities (1) (14 ) (17 ) (14 ) (13 ) Total investment and embedded derivative instruments $ (22 ) $ (13 ) $ 6 $ (53 ) GLB and other derivative instruments GLB (2) $ (396 ) $ (80 ) $ (337 ) $ (126 ) Futures contracts on equities (3) 84 (15 ) 71 (103 ) Options on equity market indices (3) (1 ) — (2 ) (3 ) Other (9 ) 45 (10 ) 52 Total GLB and other derivative instruments $ (322 ) $ (50 ) $ (278 ) $ (180 ) $ (344 ) $ (63 ) $ (272 ) $ (233 ) (1) Includes embedded derivatives. (2) Excludes foreign exchange gains (losses) related to GLB. (3) Related to GMDB and GLB blocks of business. |
Shareholders' equity Shareholde
Shareholders' equity Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' equity [Abstract] | |
Dividends Declared [Table Text Block] | The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD): Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 CHF USD CHF USD CHF USD CHF USD Dividends – par value reduction — $ 0.61 $ 0.65 0.62 $ 0.65 1.64 $ 1.81 Dividends – distributed from capital contribution reserves 0.65 0.67 — — 1.27 1.34 0.20 0.24 Total dividend distributions per common share 0.65 $ 0.67 0.61 $ 0.65 1.89 $ 1.99 1.84 $ 2.05 |
Share Repurchase Program [Table Text Block] | The following table presents repurchases of ACE's Common Shares conducted in a series of open market transactions under the Board authorizations: (in millions of U.S. dollars, except share data) Three Months Ended September 30 Nine Months Ended September 30 2015 2014 2015 2014 Number of shares repurchased — 4,349,302 6,677,663 10,143,184 Cost of shares repurchased $ — $ 450 $ 734 $ 1,019 Repurchase authorization remaining at end of period $ 766 $ 924 $ 766 $ 924 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Operations By Segment | For the Three Months Ended September 30, 2015 Insurance – North American P&C Insurance – North American Agriculture Insurance – Overseas General Global Reinsurance Life Corporate ACE Consolidated (in millions of U.S. dollars) Net premiums written $ 1,711 $ 737 $ 1,584 $ 185 $ 492 $ — $ 4,709 Net premiums earned 1,682 739 1,615 203 480 — 4,719 Losses and loss expenses 1,175 620 674 20 153 1 2,643 Policy benefits — — — — 89 — 89 Policy acquisition costs 155 42 405 52 117 — 771 Administrative expenses 192 — 246 12 74 44 568 Underwriting income (loss) 160 77 290 119 47 (45 ) 648 Net investment income 266 5 132 76 66 4 549 Net realized gains (losses) including OTTI (33 ) (4 ) (13 ) (14 ) (326 ) (7 ) (397 ) Interest expense 3 — 1 1 1 62 68 Other (income) expense: (Gains) losses from fair value changes in separate account assets — — — — 49 — 49 Other (16 ) (1 ) (6 ) (2 ) (13 ) 1 (37 ) Amortization of intangible assets 31 8 12 — — — 51 Chubb integration expenses — — — — — 9 9 Income tax expense (benefit) 70 15 76 8 8 (45 ) 132 Net income (loss) $ 305 $ 56 $ 326 $ 174 $ (258 ) $ (75 ) $ 528 For the Three Months Ended September 30, 2014 Insurance – North American P&C Insurance – North American Agriculture Insurance – Overseas General Global Reinsurance Life Corporate ACE Consolidated (in millions of U.S. dollars) Net premiums written $ 1,541 $ 764 $ 1,719 $ 208 $ 497 $ — $ 4,729 Net premiums earned 1,518 766 1,726 255 489 — 4,754 Losses and loss expenses 1,053 686 707 92 145 1 2,684 Policy benefits — — — — 125 — 125 Policy acquisition costs 169 41 418 74 123 — 825 Administrative expenses 165 3 258 13 71 44 554 Underwriting income (loss) 131 36 343 76 25 (45 ) 566 Net investment income 277 6 130 81 69 3 566 Net realized gains (losses) including OTTI (5 ) 45 (75 ) 6 (89 ) (2 ) (120 ) Interest expense 2 — 2 1 4 61 70 Other (income) expense: (Gains) losses from fair value changes in separate account assets — — — — 6 — 6 Other (31 ) (1 ) (13 ) (10 ) (3 ) 6 (52 ) Amortization of intangible assets — 8 19 — — — 27 Income tax expense (benefit) 73 23 97 11 12 (40 ) 176 Net income (loss) $ 359 $ 57 $ 293 $ 161 $ (14 ) $ (71 ) $ 785 For the Nine Months Ended September 30, 2015 Insurance – North American P&C Insurance – North American Agriculture Insurance – Overseas General Global Reinsurance Life Corporate ACE Consolidated (in millions of U.S. dollars) Net premiums written $ 5,116 $ 1,204 $ 5,047 $ 719 $ 1,483 $ — $ 13,569 Net premiums earned 4,896 1,124 4,896 649 1,441 — 13,006 Losses and loss expenses 3,330 913 2,304 191 442 2 7,182 Policy benefits — — — — 384 — 384 Policy acquisition costs 446 61 1,190 166 342 — 2,205 Administrative expenses 552 3 756 37 221 131 1,700 Underwriting income (loss) 568 147 646 255 52 (133 ) 1,535 Net investment income 798 17 409 230 198 10 1,662 Net realized gains (losses) including OTTI (39 ) (6 ) (10 ) (20 ) (282 ) (3 ) (360 ) Interest expense 7 — 3 3 4 190 207 Other (income) expense: (Gains) losses from fair value changes in separate account assets — — — — 32 — 32 Other (32 ) 1 (19 ) (10 ) (43 ) 10 (93 ) Amortization of intangible assets 63 22 50 — 1 — 136 Chubb integration expenses — — — — — 9 9 Income tax expense (benefit) 239 29 197 23 27 (120 ) 395 Net income (loss) $ 1,050 $ 106 $ 814 $ 449 $ (53 ) $ (215 ) $ 2,151 For the Nine Months Ended September 30, 2014 Insurance – North American P&C Insurance – North American Agriculture Insurance – Overseas General Global Reinsurance Life Corporate ACE Consolidated (in millions of U.S. dollars) Net premiums written $ 4,594 $ 1,346 $ 5,250 $ 794 $ 1,489 $ — $ 13,473 Net premiums earned 4,547 1,199 5,047 800 1,463 — 13,056 Losses and loss expenses 3,009 1,099 2,354 327 442 2 7,233 Policy benefits — — — — 383 — 383 Policy acquisition costs 480 69 1,206 201 355 — 2,311 Administrative expenses 501 5 764 41 212 132 1,655 Underwriting income (loss) 557 26 723 231 71 (134 ) 1,474 Net investment income 812 19 398 238 199 9 1,675 Net realized gains (losses) including OTTI (25 ) 51 (71 ) (17 ) (237 ) 2 (297 ) Interest expense 7 — 4 4 10 188 213 Other (income) expense: (Gains) losses from fair value changes in separate account assets — — — — (5 ) — (5 ) Other (75 ) — (44 ) (39 ) 6 18 (134 ) Amortization of intangible assets — 24 52 — 2 — 78 Income tax expense (benefit) 247 21 189 31 34 (120 ) 402 Net income (loss) $ 1,165 $ 51 $ 849 $ 456 $ (14 ) $ (209 ) $ 2,298 |
Net Premiums Earned For Segment By Product | (in millions of U.S. dollars) Property & All Other Casualty Life, Accident & Health ACE Consolidated For the Three Months Ended September 30, 2015 Insurance – North American P&C $ 511 $ 1,063 $ 108 $ 1,682 Insurance – North American Agriculture 739 — — 739 Insurance – Overseas General 706 386 523 1,615 Global Reinsurance 104 99 — 203 Life — — 480 480 $ 2,060 $ 1,548 $ 1,111 $ 4,719 For the Three Months Ended September 30, 2014 Insurance – North American P&C $ 420 $ 993 $ 105 $ 1,518 Insurance – North American Agriculture 766 — — 766 Insurance – Overseas General 744 394 588 1,726 Global Reinsurance 149 106 — 255 Life — — 489 489 $ 2,079 $ 1,493 $ 1,182 $ 4,754 (in millions of U.S. dollars) Property & Casualty Life, ACE For the Nine Months Ended September 30, 2015 Insurance – North American P&C $ 1,428 $ 3,157 $ 311 $ 4,896 Insurance – North American Agriculture 1,124 — — 1,124 Insurance – Overseas General 2,163 1,159 1,574 4,896 Global Reinsurance 323 326 — 649 Life — — 1,441 1,441 $ 5,038 $ 4,642 $ 3,326 $ 13,006 For the Nine Months Ended September 30, 2014 Insurance – North American P&C $ 1,248 $ 2,992 $ 307 $ 4,547 Insurance – North American Agriculture 1,199 — — 1,199 Insurance – Overseas General 2,164 1,158 1,725 5,047 Global Reinsurance 435 365 — 800 Life — — 1,463 1,463 $ 5,046 $ 4,515 $ 3,495 $ 13,056 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars, except share and per share data) 2015 2014 2015 2014 Numerator: Net income $ 528 $ 785 $ 2,151 $ 2,298 Denominator: Denominator for basic earnings per share: Weighted-average shares outstanding 324,210,936 334,472,324 325,904,502 337,083,498 Denominator for diluted earnings per share: Share-based compensation plans 2,962,484 3,201,656 3,269,724 3,298,569 Weighted-average shares outstanding and assumed conversions 327,173,420 337,673,980 329,174,226 340,382,067 Basic earnings per share $ 1.63 $ 2.35 $ 6.60 $ 6.82 Diluted earnings per share $ 1.62 $ 2.32 $ 6.53 $ 6.75 Potential anti-dilutive share conversions 1,907,815 1,227,575 1,503,830 1,410,340 |
Information provided in conne30
Information provided in connection with outstanding debt of subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet at September 30, 2015 (in millions of U.S. dollars) ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated Assets Investments $ 29 $ 35 $ 62,320 $ — $ 62,384 Cash (1) 17 5 2,177 (1,161 ) 1,038 Insurance and reinsurance balances receivable — — 6,284 (994 ) 5,290 Reinsurance recoverable on losses and loss expenses — — 20,039 (8,808 ) 11,231 Reinsurance recoverable on policy benefits — — 1,148 (954 ) 194 Value of business acquired — — 410 — 410 Goodwill and other intangible assets — — 5,713 — 5,713 Investments in subsidiaries 29,441 19,184 — (48,625 ) — Due from subsidiaries and affiliates, net 866 — — (866 ) — Other assets 9 272 14,880 (3,661 ) 11,500 Total assets $ 30,362 $ 19,496 $ 112,971 $ (65,069 ) $ 97,760 Liabilities Unpaid losses and loss expenses $ — $ — $ 45,810 $ (8,246 ) $ 37,564 Unearned premiums — — 10,329 (1,819 ) 8,510 Future policy benefits — — 5,730 (954 ) 4,776 Due to subsidiaries and affiliates, net — 698 168 (866 ) — Affiliated notional cash pooling programs (1) 973 188 — (1,161 ) — Short-term debt — 700 1,403 — 2,103 Long-term debt — 4,145 12 — 4,157 Trust preferred securities — 309 — — 309 Other liabilities 262 1,458 12,892 (3,398 ) 11,214 Total liabilities 1,235 7,498 76,344 (16,444 ) 68,633 Total shareholders’ equity 29,127 11,998 36,627 (48,625 ) 29,127 Total liabilities and shareholders’ equity $ 30,362 $ 19,496 $ 112,971 $ (65,069 ) $ 97,760 (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 September 30, 2015 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Balance Sheet at December 31, 2014 (in millions of U.S. dollars) ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated Assets Investments $ 30 $ 225 $ 62,649 $ — $ 62,904 Cash (1) — 1 1,209 (555 ) 655 Insurance and reinsurance balances receivable — — 6,178 (752 ) 5,426 Reinsurance recoverable on losses and loss expenses — — 20,992 (9,000 ) 11,992 Reinsurance recoverable on policy benefits — — 1,194 (977 ) 217 Value of business acquired — — 466 — 466 Goodwill and other intangible assets — — 5,724 — 5,724 Investments in subsidiaries 29,497 18,762 — (48,259 ) — Due from subsidiaries and affiliates, net 583 — — (583 ) — Other assets 4 295 14,196 (3,631 ) 10,864 Total assets $ 30,114 $ 19,283 $ 112,608 $ (63,757 ) $ 98,248 Liabilities Unpaid losses and loss expenses $ — $ — $ 46,770 $ (8,455 ) $ 38,315 Unearned premiums — — 9,958 (1,736 ) 8,222 Future policy benefits — — 5,731 (977 ) 4,754 Due to subsidiaries and affiliates, net — 422 161 (583 ) — Affiliated notional cash pooling programs (1) 246 309 — (555 ) — Short-term debt — 1,150 1,402 — 2,552 Long-term debt — 3,345 12 — 3,357 Trust preferred securities — 309 — — 309 Other liabilities 281 1,404 12,659 (3,192 ) 11,152 Total liabilities 527 6,939 76,693 (15,498 ) 68,661 Total shareholders’ equity 29,587 12,344 35,915 (48,259 ) 29,587 Total liabilities and shareholders’ equity $ 30,114 $ 19,283 $ 112,608 $ (63,757 ) $ 98,248 (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, 2014 , 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 September 30, 2015 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 4,709 $ — $ 4,709 Net premiums earned — — 4,719 — 4,719 Net investment income 1 1 547 — 549 Equity in earnings of subsidiaries 488 255 — (743 ) — Net realized gains (losses) including OTTI — (4 ) (393 ) — (397 ) Losses and loss expenses — — 2,643 — 2,643 Policy benefits — — 89 — 89 Policy acquisition costs and administrative expenses 15 7 1,317 — 1,339 Interest (income) expense (8 ) 68 8 — 68 Other (income) expense (51 ) (5 ) 68 — 12 Amortization of intangible assets — — 51 — 51 Chubb integration expenses 1 8 — — 9 Income tax expense (benefit) 4 (31 ) 159 — 132 Net income $ 528 $ 205 $ 538 $ (743 ) $ 528 Comprehensive income (loss) $ (271 ) $ (265 ) $ (262 ) $ 527 $ (271 ) Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended September 30, 2014 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 4,729 $ — $ 4,729 Net premiums earned — — 4,754 — 4,754 Net investment income 1 — 565 — 566 Equity in earnings of subsidiaries 745 258 — (1,003 ) — Net realized gains (losses) including OTTI — 46 (166 ) — (120 ) Losses and loss expenses — — 2,684 — 2,684 Policy benefits — — 125 — 125 Policy acquisition costs and administrative expenses 18 6 1,355 — 1,379 Interest (income) expense (7 ) 68 9 — 70 Other (income) expense (54 ) 2 6 — (46 ) Amortization of intangible assets — — 27 — 27 Income tax expense (benefit) 4 (11 ) 183 — 176 Net income $ 785 $ 239 $ 764 $ (1,003 ) $ 785 Comprehensive income $ 298 $ 33 $ 276 $ (309 ) $ 298 Condensed Consolidating Statements of Operations and Comprehensive Income For the Nine Months Ended September 30, 2015 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 13,569 $ — $ 13,569 Net premiums earned — — 13,006 — 13,006 Net investment income 2 2 1,658 — 1,662 Equity in earnings of subsidiaries 2,037 755 — (2,792 ) — Net realized gains (losses) including OTTI — (6 ) (354 ) — (360 ) Losses and loss expenses — — 7,182 — 7,182 Policy benefits — — 384 — 384 Policy acquisition costs and administrative expenses 47 20 3,838 — 3,905 Interest (income) expense (23 ) 206 24 — 207 Other (income) expense (149 ) (12 ) 100 — (61 ) Amortization of intangible assets — — 136 — 136 Chubb integration expenses 1 8 — — 9 Income tax expense (benefit) 12 (84 ) 467 — 395 Net income $ 2,151 $ 613 $ 2,179 $ (2,792 ) $ 2,151 Comprehensive income (loss) $ 768 $ (332 ) $ 795 $ (463 ) $ 768 Condensed Consolidating Statements of Operations and Comprehensive Income For the Nine Months Ended September 30, 2014 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 13,473 $ — $ 13,473 Net premiums earned — — 13,056 — 13,056 Net investment income 2 1 1,672 — 1,675 Equity in earnings of subsidiaries 2,192 669 — (2,861 ) — Net realized gains (losses) including OTTI — 53 (350 ) — (297 ) Losses and loss expenses — — 7,233 — 7,233 Policy benefits — — 383 — 383 Policy acquisition costs and administrative expenses 57 20 3,889 — 3,966 Interest (income) expense (26 ) 209 30 — 213 Other (income) expense (146 ) 22 (15 ) — (139 ) Amortization of intangible assets — — 78 — 78 Income tax expense (benefit) 11 (66 ) 457 — 402 Net income $ 2,298 $ 538 $ 2,323 $ (2,861 ) $ 2,298 Comprehensive income $ 2,754 $ 810 $ 2,778 $ (3,588 ) $ 2,754 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2015 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net cash flows from (used for) operating activities $ 350 $ (46 ) $ 2,671 $ (276 ) $ 2,699 Cash flows from investing activities Purchases of fixed maturities available for sale — — (13,052 ) (8 ) (13,060 ) Purchases of fixed maturities held to maturity — — (39 ) — (39 ) Purchases of equity securities — — (122 ) — (122 ) Sales of fixed maturities available for sale — — 5,233 — 5,233 Sales of equity securities — — 150 — 150 Maturities and redemptions of fixed maturities available for sale — — 5,257 — 5,257 Maturities and redemptions of fixed maturities held to maturity — — 552 — 552 Net change in short-term investments — 215 206 — 421 Net derivative instruments settlements — (10 ) 72 — 62 Acquisition of subsidiaries (net of cash acquired of $620) — — 259 — 259 Capital contribution — (625 ) — 625 — Other — (25 ) (121 ) 8 (138 ) Net cash flows used for investing activities — (445 ) (1,605 ) 625 (1,425 ) Cash flows from financing activities Dividends paid on Common Shares (644 ) — — — (644 ) Common Shares repurchased — — (758 ) — (758 ) Proceeds from issuance of long-term debt — 800 — — 800 Proceeds from issuance of short-term debt — — 1,478 — 1,478 Repayment of long-term debt — (450 ) (1 ) — (451 ) Repayment of short-term debt — — (1,477 ) — (1,477 ) Proceeds from share-based compensation plans, including windfall tax benefits — — 89 — 89 Dividend to parent company — — (276 ) 276 — Advances (to) from affiliates (416 ) 272 144 — — Capital contribution — — 625 (625 ) — Net proceeds from (payments to) affiliated notional cash pooling programs (1) 727 (121 ) — (606 ) — Policyholder contract deposits — — 351 — 351 Policyholder contract withdrawals — — (159 ) — (159 ) Other — (6 ) — — (6 ) Net cash flows (used for) from financing activities (333 ) 495 16 (955 ) (777 ) Effect of foreign currency rate changes on cash and cash equivalents — — (114 ) — (114 ) Net increase in cash 17 4 968 (606 ) 383 Cash – beginning of period (1) — 1 1,209 (555 ) 655 Cash – end of period (1) $ 17 $ 5 $ 2,177 $ (1,161 ) $ 1,038 (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 September 30, 2015 and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2014 ACE Limited (Parent Guarantor) ACE INA Holdings Inc. (Subsidiary Issuer) Other ACE Limited Subsidiaries Consolidating Adjustments and Eliminations ACE Limited Consolidated (in millions of U.S. dollars) Net cash flows from operating activities $ 168 $ 139 $ 3,115 $ (200 ) $ 3,222 Cash flows from investing activities Purchases of fixed maturities available for sale — — (11,870 ) 3 (11,867 ) Purchases of fixed maturities held to maturity — — (185 ) — (185 ) Purchases of equity securities — — (222 ) — (222 ) Sales of fixed maturities available for sale — — 6,309 (3 ) 6,306 Sales of equity securities — — 322 — 322 Maturities and redemptions of fixed maturities available for sale — — 4,814 — 4,814 Maturities and redemptions of fixed maturities held to maturity — — 617 — 617 Net change in short-term investments 1 (16 ) (969 ) — (984 ) Net derivative instruments settlements — 53 (223 ) — (170 ) Acquisition of subsidiaries (net of cash acquired of $4) — — (172 ) — (172 ) Capital contribution — (230 ) — 230 — Other — (9 ) (138 ) — (147 ) Net cash flows from (used for) investing activities 1 (202 ) (1,717 ) 230 (1,688 ) Cash flows from financing activities Dividends paid on Common Shares (646 ) — — — (646 ) Common Shares repurchased — — (1,007 ) — (1,007 ) Proceeds from issuance of long-term debt — 699 — — 699 Proceeds from issuance of short-term debt — — 1,827 — 1,827 Repayment of long-term debt — (500 ) (1 ) — (501 ) Repayment of short-term debt — — (1,827 ) — (1,827 ) Proceeds from share-based compensation plans, including windfall tax benefits — — 94 — 94 Dividend to parent company — — (200 ) 200 — Advances (to) from affiliates 97 (166 ) 69 — — Capital contribution — — 230 (230 ) — Net proceeds from (payments to) affiliated notional cash pooling programs (1) 388 32 — (420 ) — Policyholder contract deposits — — 189 — 189 Policyholder contract withdrawals — — (62 ) — (62 ) Other — (6 ) — — (6 ) Net cash flows (used for) from financing activities (161 ) 59 (688 ) (450 ) (1,240 ) Effect of foreign currency rate changes on cash and cash equivalents — — (67 ) — (67 ) Net increase (decrease) in cash 8 (4 ) 643 (420 ) 227 Cash – beginning of period (1) — 16 748 (185 ) 579 Cash – end of period (1) $ 8 $ 12 $ 1,391 $ (605 ) $ 806 (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 September 30, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Acquisitions (Detail)
Acquisitions (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jun. 17, 2014 | Sep. 30, 2015 | Jun. 30, 2015 | Apr. 01, 2015 | Dec. 31, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | [4] | Apr. 28, 2014 | Dec. 31, 2013 | [4] | ||
Business Acquisition [Line Items] | |||||||||||||
Unpaid losses and loss expenses | $ 37,564 | $ 38,315 | |||||||||||
Unearned premiums | 8,510 | 8,222 | |||||||||||
Insurance and reinsurance balances receivable | 5,290 | 5,426 | |||||||||||
Cash | $ 1,038 | [1],[2] | $ 655 | [1],[3] | $ 806 | $ 579 | |||||||
ACE share price | $ 103.40 | $ 101.68 | |||||||||||
Fireman's Fund high net worth personal lines [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 196 | ||||||||||||
Other intangible assets | 278 | ||||||||||||
Purchase price | 365 | ||||||||||||
Assumed liabilities fair value | 858 | ||||||||||||
Unpaid losses and loss expenses | 402 | ||||||||||||
Unearned premiums | 428 | ||||||||||||
Insurance and reinsurance balances receivable | 128 | ||||||||||||
Cash | 620 | ||||||||||||
Acquired assets fair value | $ 749 | ||||||||||||
Large Corporate Property And Casualty Business Of Itau Seguros [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 445 | ||||||||||||
Other intangible assets | 60 | ||||||||||||
Purchase price | $ 606 | ||||||||||||
The Siam Commercial Samaggi Insurance PCL [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage ownership acquired | 32.17% | 60.86% | |||||||||||
Goodwill | $ 46 | ||||||||||||
Other intangible assets | $ 80 | ||||||||||||
Total Ownership Percentage | 93.03% | ||||||||||||
Purchase price for total ownership percentage | $ 176 | ||||||||||||
The Chubb Corporation [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash purchase price per share | 62.93 | ||||||||||||
Number of ACE shares to be issued per share | $ 0.6019 | ||||||||||||
Expected purchase price | $ 28,800 | $ 28,300 | |||||||||||
Approximate number of shares to be issued | 137 | ||||||||||||
Approximate ownership percentage of new company | 30.00% | ||||||||||||
Expected cash to be used to finance acquisition | $ 9,000 | ||||||||||||
Senior notes issued to finance acquisition | $ 5,300 | ||||||||||||
[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 September 30, 2015 and December 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 September 30, 2015, 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, 2014, 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 September 30, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015USD ($)Security | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Security | Sep. 30, 2014USD ($) | Apr. 30, 2015USD ($) | Apr. 14, 2015USD ($) | Mar. 27, 2015USD ($) | Dec. 31, 2014USD ($) | |
Investment [Line Items] | ||||||||
Document Period End Date | Sep. 30, 2015 | |||||||
Total number of fixed maturities | Security | 26,875 | 26,875 | ||||||
Number of equity securities in an unrealized loss position | Security | 111 | 111 | ||||||
Total number of equity securities | Security | 257 | 257 | ||||||
Largest single unrealized loss in the equity securities | $ 2 | $ 2 | ||||||
Restricted assets in fixed maturities and short-term investments | 16,200 | 16,200 | $ 16,300 | |||||
Restricted assets in cash | 79 | $ 79 | 117 | |||||
Moodys Historical Mean Recovery Rate | 42.00% | |||||||
Company Assumed Recovery Rate | 32.00% | |||||||
Net unrealized depreciation included in AOCI | 14 | $ 14 | 3 | |||||
Fair value of securities transferred from AFS to HTM | $ 1,900 | |||||||
Investments in partially-owned insurance companies | 654 | 654 | $ 504 | |||||
Net unrealized appreciation (depreciation) included in OCI | $ 4 | $ 1 | $ 0 | $ 6 | ||||
Number of fixed maturities in an unrealized loss position | Security | 7,876 | 7,876 | ||||||
Credit losses recognized in net income for mortgage-backed securities | $ 0 | 0 | $ 0 | 0 | ||||
Credit losses recognized in net income for corporate securities | $ 14 | $ 4 | $ 23 | $ 14 | ||||
Percentage of mortgage-backed securities represented by investments in US government agency bonds | 80.00% | 80.00% | 83.00% | |||||
Reinsurance recoverable on losses and loss expenses | $ 11,231 | $ 11,231 | $ 11,992 | |||||
Insurance and reinsurance balances payable | 4,225 | 4,225 | 4,095 | |||||
Unearned premiums | 8,510 | 8,510 | $ 8,222 | |||||
Largest single unrealized loss in the fixed maturities | 4 | 4 | ||||||
ABR Reinsurance Capital Holdings Ltd. [Member] | ||||||||
Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 11.30% | |||||||
Investments in partially-owned insurance companies | $ 20 | $ 70 | ||||||
Warrants & Rights Outstanding | 0.50% | |||||||
Ceded Premiums Written | 35 | 70 | ||||||
Ceded Commissions | 8 | 19 | ||||||
Reinsurance recoverable on losses and loss expenses | 54 | 54 | ||||||
Insurance and reinsurance balances payable | $ 12 | $ 12 |
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 ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | ||
Document Period End Date | Sep. 30, 2015 | |
Held to maturity, Amortized Cost | $ 8,564 | $ 7,331 |
Held to maturity, Gross Unrealized Appreciation | 235 | 266 |
Held to maturity, Gross Unrealized Depreciation | (49) | (8) |
Held to maturity, Fair Value | 8,750 | 7,589 |
Available for sale, Amortized Cost | 47,411 | 47,826 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 1,472 | 1,871 |
Available for sale, Gross Unrealized Depreciation | (605) | (302) |
Available for sale, Fair Value | 48,278 | 49,395 |
Available for sale, OTTI recognized in AOCI | (21) | (8) |
U.S. Treasury And Agency [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 756 | 832 |
Held to maturity, Gross Unrealized Appreciation | 19 | 20 |
Held to maturity, Gross Unrealized Depreciation | (1) | (2) |
Held to maturity, Fair Value | 774 | 850 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 2,800 | 2,741 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 85 | 87 |
Available for sale, Gross Unrealized Depreciation | 0 | (8) |
Available for sale, Fair Value | 2,885 | 2,820 |
Available for sale, OTTI recognized in AOCI | 0 | 0 |
Foreign [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 784 | 916 |
Held to maturity, Gross Unrealized Appreciation | 38 | 47 |
Held to maturity, Gross Unrealized Depreciation | (4) | 0 |
Held to maturity, Fair Value | 818 | 963 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 13,976 | 14,703 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 523 | 629 |
Available for sale, Gross Unrealized Depreciation | (208) | (90) |
Available for sale, Fair Value | 14,291 | 15,242 |
Available for sale, OTTI recognized in AOCI | (6) | 0 |
Corporate Securities [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 3,093 | 2,323 |
Held to maturity, Gross Unrealized Appreciation | 74 | 102 |
Held to maturity, Gross Unrealized Depreciation | (41) | (2) |
Held to maturity, Fair Value | 3,126 | 2,423 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 16,790 | 16,897 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 467 | 704 |
Available for sale, Gross Unrealized Depreciation | (365) | (170) |
Available for sale, Fair Value | 16,892 | 17,431 |
Available for sale, OTTI recognized in AOCI | (14) | (7) |
Collateralized Mortgage Backed Securities [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 1,758 | 1,983 |
Held to maturity, Gross Unrealized Appreciation | 60 | 57 |
Held to maturity, Gross Unrealized Depreciation | (1) | (1) |
Held to maturity, Fair Value | 1,817 | 2,039 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 10,858 | 10,011 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 286 | 304 |
Available for sale, Gross Unrealized Depreciation | (25) | (29) |
Available for sale, Fair Value | 11,119 | 10,286 |
Available for sale, OTTI recognized in AOCI | (1) | (1) |
States, Municipalities, And Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 2,173 | 1,277 |
Held to maturity, Gross Unrealized Appreciation | 44 | 40 |
Held to maturity, Gross Unrealized Depreciation | (2) | (3) |
Held to maturity, Fair Value | 2,215 | 1,314 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Available for sale, Amortized Cost | 2,987 | 3,474 |
AvailableforsaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 111 | 147 |
Available for sale, Gross Unrealized Depreciation | (7) | (5) |
Available for sale, Fair Value | 3,091 | 3,616 |
Available for sale, OTTI recognized in AOCI | $ 0 | $ 0 |
Investments (Schedule Of Fixed
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale, Due in 1 year or less, Amortized Cost | $ 1,979 | $ 2,187 |
Available for sale, Due after 1 year through 5 years, Amortized Cost | 16,472 | 15,444 |
Available for sale, Due after 5 years though 10 years, Amortized Cost | 13,695 | 15,663 |
Available for sale, Due after 10 years, Amortized Cost | 4,407 | 4,521 |
Available for sale, Subtotal, Amortized Cost | 36,553 | 37,815 |
Available for sale, Mortgage-backed securities, Amortized Cost | 10,858 | 10,011 |
Available for sale, Amortized Cost | 47,411 | 47,826 |
Available for sale, Fair Value | 48,278 | 49,395 |
Held to maturity, Due in 1 year or less, Amortized Cost | 411 | 353 |
Held to maturity, Due after 1 year through 5 years, Amortized Cost | 2,583 | 2,603 |
Held to maturity, Due after 5 years through 10 years, Amortized Cost | 2,278 | 1,439 |
Held to maturity, Due after 10 years, Amortized Cost | 1,534 | 953 |
Held to maturity, Subtotal, Amortized Cost | 6,806 | 5,348 |
Held to maturity, Mortgage backed securities, Amortized Cost | 1,758 | 1,983 |
Available for sale, Due in 1 year or less, Fair Value | 1,995 | 2,206 |
Available for sale, Due after 1 year through 5 years, Fair Value | 16,794 | 15,857 |
Available for sale, Due after 5 years through 10 years, Fair Value | 13,708 | 16,089 |
Available for sale, Due after 10 years, Fair Value | 4,662 | 4,957 |
Available for sale, Subtotal, Fair Value | 37,159 | 39,109 |
Available for sale, Mortgage backed securities, Fair Value | 11,119 | 10,286 |
Held to maturity, Due in 1 year or less, Fair Value | 413 | 355 |
Held to maturity, Due after 1 year through 5, Fair Value | 2,683 | 2,693 |
Held to maturity, Due after 5 years through 10 years, Fair Value | 2,300 | 1,489 |
Held to maturity, Due after 10 years, Fair Value | 1,537 | 1,013 |
Held to maturity, Subtotal, Fair Value | 6,933 | 5,550 |
Held to maturity, Mortgage backed securities, Fair Value | 1,817 | 2,039 |
Held to maturity, Amortized Cost | 8,564 | 7,331 |
Held to maturity, Fair Value | $ 8,750 | $ 7,589 |
Investments (Schedule Of Cost A
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 434 | $ 440 |
Gross unrealized appreciation | 54 | 83 |
Gross unrealized depreciation | (24) | (13) |
Fair value | $ 464 | $ 510 |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) And Losses Included In Net Realized Gains (Losses) And Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
OTTI on fixed maturities, gross | $ 31 | $ 5 | $ 57 | $ 20 |
OTTI on fixed maturities recognized in OCI (pre-tax) | 5 | 1 | 11 | 3 |
OTTI on fixed maturities, net | (26) | (4) | (46) | (17) |
Fixed maturities, Gross realized gains excluding OTTI | 19 | 73 | 91 | 163 |
Fixed maturities, Gross realized losses excluding OTTI | (44) | (51) | (95) | (97) |
Total fixed maturities | (51) | 18 | (50) | 49 |
OTTI on equity securities | (3) | 0 | (4) | (7) |
Equity securities, Gross realized gains excluding OTTI | 10 | 4 | 43 | 8 |
Equity securities, Gross realized losses excluding OTTI | (5) | (60) | (7) | (61) |
Total equity securities | 2 | (56) | 32 | (60) |
OTTI on other investments | (1) | 0 | (1) | (3) |
Foreign exchange losses | (2) | (19) | (73) | (42) |
Investment and embedded derivative instruments | (22) | (13) | 6 | (53) |
Fair value adjustments on insurance derivative | (396) | (80) | (337) | (126) |
S&P put options and futures | 83 | (15) | 69 | (106) |
Other derivative instruments | (9) | 45 | (10) | 52 |
Other | (1) | 0 | 4 | (8) |
Total net realized gains (losses) (includes $(49), $(38), $(18), and $(11) reclassified from AOCI) | $ (397) | $ (120) | $ (360) | $ (297) |
Investments (Roll-Forward Of Pr
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
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 | $ 23 | $ 24 | $ 28 | $ 37 |
Additions where no OTTI was previously recorded | 8 | 2 | 15 | 9 |
Additions where an OTTI was previously recorded | 6 | 2 | 8 | 5 |
Reductions for securities sold during the period | (5) | (11) | (19) | (34) |
Balance of credit losses related to securities still held – end of period | $ 32 | $ 17 | $ 32 | $ 17 |
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 ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | ||
Document Period End Date | Sep. 30, 2015 | |
Fair Value, 0-12 Months | $ 13,641 | $ 8,559 |
Gross Unrealized Loss, 0-12 Months | (532) | (244) |
Fair Value, Over 12 Months | 1,945 | 3,932 |
Gross Unrealized Loss, Over 12 Months | (148) | (79) |
Total Fair Value | 15,586 | 12,491 |
Total Gross Unrealized Loss | (680) | (323) |
U.S. Treasury And Agency [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 228 | 350 |
Gross Unrealized Loss, 0-12 Months | (1) | (1) |
Fair Value, Over 12 Months | 59 | 666 |
Gross Unrealized Loss, Over 12 Months | 0 | (9) |
Total Fair Value | 287 | 1,016 |
Total Gross Unrealized Loss | (1) | (10) |
Foreign [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 3,627 | 2,262 |
Gross Unrealized Loss, 0-12 Months | (160) | (75) |
Fair Value, Over 12 Months | 402 | 375 |
Gross Unrealized Loss, Over 12 Months | (52) | (15) |
Total Fair Value | 4,029 | 2,637 |
Total Gross Unrealized Loss | (212) | (90) |
Corporate Securities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 6,641 | 4,684 |
Gross Unrealized Loss, 0-12 Months | (322) | (150) |
Fair Value, Over 12 Months | 801 | 738 |
Gross Unrealized Loss, Over 12 Months | (84) | (22) |
Total Fair Value | 7,442 | 5,422 |
Total Gross Unrealized Loss | (406) | (172) |
Collateralized Mortgage Backed Securities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 2,145 | 704 |
Gross Unrealized Loss, 0-12 Months | (16) | (2) |
Fair Value, Over 12 Months | 626 | 1,663 |
Gross Unrealized Loss, Over 12 Months | (10) | (28) |
Total Fair Value | 2,771 | 2,367 |
Total Gross Unrealized Loss | (26) | (30) |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 766 | 458 |
Gross Unrealized Loss, 0-12 Months | (7) | (3) |
Fair Value, Over 12 Months | 57 | 490 |
Gross Unrealized Loss, Over 12 Months | (2) | (5) |
Total Fair Value | 823 | 948 |
Total Gross Unrealized Loss | (9) | (8) |
Fixed Maturities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 13,407 | 8,458 |
Gross Unrealized Loss, 0-12 Months | (506) | (231) |
Fair Value, Over 12 Months | 1,945 | 3,932 |
Gross Unrealized Loss, Over 12 Months | (148) | (79) |
Total Fair Value | 15,352 | 12,390 |
Total Gross Unrealized Loss | (654) | (310) |
Equity Securities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 151 | 101 |
Gross Unrealized Loss, 0-12 Months | (24) | (13) |
Fair Value, Over 12 Months | 0 | 0 |
Gross Unrealized Loss, Over 12 Months | 0 | 0 |
Total Fair Value | 151 | 101 |
Total Gross Unrealized Loss | (24) | $ (13) |
Other Long-term Investments [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 83 | |
Gross Unrealized Loss, 0-12 Months | (2) | |
Fair Value, Over 12 Months | 0 | |
Gross Unrealized Loss, Over 12 Months | 0 | |
Total Fair Value | 83 | |
Total Gross Unrealized Loss | $ (2) |
Investments (Schedule Of Compon
Investments (Schedule Of Components Of Restricted Assets) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Trust funds | $ 10,990 | $ 10,838 |
Deposits with non-U.S. regulatory authorities | 2,105 | 2,305 |
Assets pledged under repurchase agreements | 1,468 | 1,431 |
Deposits with U.S. regulatory authorities | 1,322 | 1,345 |
Other pledged assets | 388 | 457 |
Total restricted assets | $ 16,273 | $ 16,376 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
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 ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Document Period End Date | Sep. 30, 2015 | |||
Available for sale, Fair Value | $ 48,278 | $ 49,395 | ||
Equity securities, at fair value | 464 | 510 | ||
Short-term investments | 1,808 | 2,322 | ||
Other investments excluding assets calculated using NAV | 741 | [1] | 785 | [2] |
Securities lending collateral | 1,011 | 1,330 | ||
Investment derivative instruments, assets | 17 | 18 | ||
Other derivative instruments, assets | 26 | 2 | ||
Separate account assets | 1,506 | 1,490 | ||
Total assets measured at fair value | 53,851 | [1] | 55,852 | [2] |
Investment derivative instruments, liabilities | 27 | 36 | ||
Other derivative instruments, liability | 7 | 25 | ||
GLB | 744 | [3] | 406 | [4] |
Total liabilities measured at fair value | 778 | 467 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 1,919 | 1,680 | ||
Equity securities, at fair value | 455 | 492 | ||
Short-term investments | 703 | 1,183 | ||
Other investments excluding assets calculated using NAV | 314 | [1] | 370 | [2] |
Securities lending collateral | 0 | 0 | ||
Investment derivative instruments, assets | 17 | 18 | ||
Other derivative instruments, assets | 26 | 0 | ||
Separate account assets | 1,423 | 1,400 | ||
Total assets measured at fair value | 4,857 | [1] | 5,143 | [2] |
Investment derivative instruments, liabilities | 27 | 36 | ||
Other derivative instruments, liability | 0 | 21 | ||
GLB | 0 | [3] | 0 | [4] |
Total liabilities measured at fair value | 27 | 57 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 46,069 | 47,491 | ||
Equity securities, at fair value | 5 | 16 | ||
Short-term investments | 1,105 | 1,139 | ||
Other investments excluding assets calculated using NAV | 218 | [1] | 211 | [2] |
Securities lending collateral | 1,011 | 1,330 | ||
Investment derivative instruments, assets | 0 | 0 | ||
Other derivative instruments, assets | 0 | 2 | ||
Separate account assets | 83 | 90 | ||
Total assets measured at fair value | 48,491 | [1] | 50,279 | [2] |
Investment derivative instruments, liabilities | 0 | 0 | ||
Other derivative instruments, liability | 0 | 0 | ||
GLB | 0 | [3] | 0 | [4] |
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 290 | 224 | ||
Equity securities, at fair value | 4 | 2 | ||
Short-term investments | 0 | 0 | ||
Other investments excluding assets calculated using NAV | 209 | [1] | 204 | [2] |
Securities lending collateral | 0 | 0 | ||
Investment derivative instruments, assets | 0 | 0 | ||
Other derivative instruments, assets | 0 | 0 | ||
Separate account assets | 0 | 0 | ||
Total assets measured at fair value | 503 | [1] | 430 | [2] |
Investment derivative instruments, liabilities | 0 | 0 | ||
Other derivative instruments, liability | 7 | 4 | ||
GLB | 744 | [3] | 406 | [4] |
Total liabilities measured at fair value | 751 | 410 | ||
U.S. Treasury And Agency [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 2,885 | 2,820 | ||
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 1,919 | 1,680 | ||
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 966 | 1,140 | ||
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 0 | 0 | ||
Foreign [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 14,291 | 15,242 | ||
Foreign [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 0 | 0 | ||
Foreign [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 14,238 | 15,220 | ||
Foreign [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 53 | 22 | ||
Corporate Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 16,892 | 17,431 | ||
Corporate Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 0 | 0 | ||
Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 16,709 | 17,244 | ||
Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 183 | 187 | ||
Collateralized Mortgage Backed Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 11,119 | 10,286 | ||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 0 | 0 | ||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 11,065 | 10,271 | ||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 54 | 15 | ||
States, Municipalities, And Political Subdivisions [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 3,091 | 3,616 | ||
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 0 | 0 | ||
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | 3,091 | 3,616 | ||
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||
Available for sale, Fair Value | $ 0 | $ 0 | ||
[1] | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,504 million and other investments of $25 million at September 30, 2015 measured using NAV. Based on new accounting guidance adopted this quarter, these investments are excluded from the hierarchy table. | |||
[2] | (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $2,561 million at December 31, 2014 measured using NAV. Based on new accounting guidance adopted this quarter, these investments are excluded from the hierarchy table. | |||
[3] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||
[4] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value And Maximum Future Funding Commitments Related To Investments) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Maximum future funding commitments | $ 916 | $ 1,010 |
Fair Value | 2,504 | 2,561 |
Financial [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Maximum future funding commitments | 107 | 145 |
Fair Value | 309 | 282 |
Real Assets [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Maximum future funding commitments | 168 | 210 |
Fair Value | 473 | 451 |
Distressed [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Maximum future funding commitments | 231 | 175 |
Fair Value | 265 | 232 |
Private Credit [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Maximum future funding commitments | 226 | 190 |
Fair Value | 272 | 299 |
Traditional [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Maximum future funding commitments | 184 | 289 |
Fair Value | 885 | 908 |
Vintage [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Maximum future funding commitments | 0 | 1 |
Fair Value | 14 | 11 |
Investment Funds [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Maximum future funding commitments | 0 | 0 |
Fair Value | $ 286 | $ 378 |
Minimum [Member] | Financial [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 5 years | 5 years |
Minimum [Member] | Real Assets [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 3 years | 3 years |
Minimum [Member] | Distressed [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 5 years | 5 years |
Minimum [Member] | Private Credit [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 3 years | 3 years |
Minimum [Member] | Traditional [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 3 years | 3 years |
Minimum [Member] | Vintage [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 1 year | 1 year |
Maximum [Member] | Financial [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 9 years | 9 years |
Maximum [Member] | Real Assets [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 7 years | 7 years |
Maximum [Member] | Distressed [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 9 years | 9 years |
Maximum [Member] | Private Credit [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 7 years | 7 years |
Maximum [Member] | Traditional [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 9 years | 9 years |
Maximum [Member] | Vintage [Member] | ||
Fair Value And Maximum Future Funding Commitments Related To Investments [Line Items] | ||
Expected liquidation period of underlying assets | 2 years | 2 years |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Document Period End Date | Sep. 30, 2015 | ||
Valuation Technique | [1] | Actuarial model | |
Minimum [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Significant Unobservable Inputs Lapse rate | [1] | 1.00% | |
Significant Unobservable Inputs Annuitization rate | [1] | 0.00% | |
Maximum [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Significant Unobservable Inputs Lapse rate | [1] | 30.00% | |
Significant Unobservable Inputs Annuitization rate | [1] | 55.00% | |
Guaranteed Living Benefit [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value | [1] | $ 744 | $ 406 |
[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. |
Fair Value Measurements (Fina44
Fair Value Measurements (Financial Instruments Measured At Fair Value Using Significant Unobservable Inputs) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | |||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Document Period End Date | Sep. 30, 2015 | |||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets | $ 0 | |||||||||
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 | $ 0 | 0 | ||||||
Balance- Beginning of Period, Assets | 2 | 2 | 2 | 4 | ||||||
Transfers out of Level 3, Assets | (2) | |||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 2 | 0 | 2 | 1 | ||||||
Purchases, Assets | 1 | 0 | 2 | 1 | ||||||
Sales, Assets | 0 | 0 | 0 | (2) | ||||||
Settlements, Assets | 0 | 0 | 0 | |||||||
Balance-End of Period, Assets | 4 | 2 | 4 | 2 | ||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets | (1) | 0 | (2) | |||||||
Equity Securities [Member] | Gain (Loss) on Investments [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Net Realized Gains/Losses, Assets | (1) | 0 | (2) | 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) | |||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 0 | |||||||||
Purchases, Assets | 0 | |||||||||
Sales, Assets | 0 | |||||||||
Balance-End of Period, Assets | 0 | 0 | ||||||||
Short-term Investments [Member] | Gain (Loss) on Investments [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Net Realized Gains/Losses, 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 | 0 | |||||||
Balance- Beginning of Period, Assets | 214 | 203 | 204 | 196 | ||||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | (7) | (1) | (7) | 1 | ||||||
Purchases, Assets | 5 | 6 | 21 | 15 | ||||||
Sales, Assets | 0 | 0 | 0 | 0 | ||||||
Settlements, Assets | (3) | (3) | (9) | (7) | ||||||
Balance-End of Period, Assets | 209 | 205 | 209 | 205 | ||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets | 0 | 0 | 0 | 0 | ||||||
Other Long-term Investments [Member] | Gain (Loss) on Investments [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Net Realized Gains/Losses, Assets | 0 | 0 | 0 | 0 | ||||||
Other Derivative Instruments Fair Value [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Balance - Beginning of Period, Liabilities | 3 | 4 | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | |||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 0 | |||||||||
Purchases, Assets | 0 | |||||||||
Sales, Assets | 0 | |||||||||
Settlements, Assets | 0 | |||||||||
Balance-End of Period, Assets | 7 | 7 | ||||||||
Balance - End of Period, Liabilities | 7 | 7 | ||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities | 4 | 3 | ||||||||
Other Derivative Instruments Fair Value [Member] | Gain (Loss) on Investments [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Net Realized Gains/Losses, Liabilities | 4 | 3 | ||||||||
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 | 1 | 1 | 29 | 3 | ||||||
Balance- Beginning of Period, Assets | 56 | 12 | 22 | 44 | ||||||
Transfers out of Level 3, Assets | (34) | |||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 1 | 0 | (1) | (1) | ||||||
Purchases, Assets | 0 | 0 | 9 | 2 | ||||||
Sales, Assets | 0 | (1) | (1) | (3) | ||||||
Settlements, Assets | (4) | 0 | (4) | 0 | ||||||
Balance-End of Period, Assets | 53 | 12 | 53 | 12 | ||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets | (1) | 0 | (1) | |||||||
Available-for-sale Securities [Member] | Foreign [Member] | Gain (Loss) on Investments [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Net Realized Gains/Losses, Assets | (1) | 0 | (1) | 1 | ||||||
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 | 2 | 5 | 15 | 35 | ||||||
Balance- Beginning of Period, Assets | 167 | 204 | 187 | 166 | ||||||
Transfers out of Level 3, Assets | (22) | |||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 1 | (1) | 1 | 1 | ||||||
Purchases, Assets | 22 | 20 | 38 | 65 | ||||||
Sales, Assets | (5) | (9) | (10) | (17) | ||||||
Settlements, Assets | (3) | (13) | (44) | (22) | ||||||
Balance-End of Period, Assets | 183 | 208 | 183 | 208 | ||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets | 0 | 0 | (2) | |||||||
Available-for-sale Securities [Member] | Corporate Debt Securities [Member] | Gain (Loss) on Investments [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Net Realized Gains/Losses, Assets | (1) | 2 | (4) | 2 | ||||||
Available-for-sale Securities [Member] | Collateralized 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 | 0 | 0 | ||||||
Balance- Beginning of Period, Assets | 55 | 7 | 15 | 8 | ||||||
Transfers out of Level 3, Assets | 0 | |||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 0 | 0 | 0 | 0 | ||||||
Purchases, Assets | 0 | 8 | 41 | 8 | ||||||
Sales, Assets | (1) | 0 | (1) | 0 | ||||||
Settlements, Assets | 0 | 0 | (1) | (1) | ||||||
Balance-End of Period, Assets | 54 | 15 | 54 | 15 | ||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Assets | 0 | 0 | 0 | |||||||
Available-for-sale Securities [Member] | Collateralized Mortgage Backed Securities [Member] | Gain (Loss) on Investments [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Net Realized Gains/Losses, Assets | 0 | 0 | 0 | 0 | ||||||
Guaranteed Living Benefit [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Balance - Beginning of Period, Liabilities | 347 | [1] | 241 | [2] | 406 | [3] | 193 | [4] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | |||||||
Transfers out of Level 3, Assets | 0 | |||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Assets | 0 | 0 | 0 | |||||||
Purchases, Assets | 0 | 0 | 0 | |||||||
Sales, Assets | 0 | 0 | 0 | |||||||
Settlements, Assets | 0 | 0 | 0 | |||||||
Balance - End of Period, Liabilities | 744 | [1],[3] | 317 | [2],[4] | 744 | [1],[3] | 317 | [2],[4] | ||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date, Liabilities | 397 | 76 | [2] | 338 | [3] | 124 | [4] | |||
Reported liabilities | 1,000 | 566 | 1,000 | 566 | $ 663 | $ 486 | ||||
Guaranteed Living Benefit [Member] | Gain (Loss) on Investments [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Net Realized Gains/Losses, Liabilities | $ 397 | $ 76 | $ 338 | 124 | ||||||
Fair Value, Inputs, Level 3 [Member] | ||||||||||
Schedule Of Fair Value Measurements [Line Items] | ||||||||||
Settlements, Assets | $ 0 | |||||||||
[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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||||||||
[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 liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $566 million at September 30, 2014, and $486 million at June 30, 2014, which includes a fair value derivative adjustment of $317 million and $241 million, respectively. | |||||||||
[3] | 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 liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information. | |||||||||
[4] | 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 liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $566 million at September 30, 2014 and $427 million at December 31, 2013, which includes a fair value derivative adjustment of $317 million and $193 million, respectively. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Document Period End Date | Sep. 30, 2015 | |
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | $ 8,564 | $ 7,331 |
Investments in partially-owned insurance companies | 654 | 504 |
Total assets | 97,760 | 98,248 |
Short-term debt | 2,103 | 2,552 |
Long-term debt | 4,157 | 3,357 |
Trust preferred securities | 309 | 309 |
Total liabilities | 68,633 | 68,661 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 8,750 | 7,589 |
Short-term debt | 2,105 | 2,571 |
Long-term debt | 4,376 | 3,690 |
Trust preferred securities | 457 | 462 |
Total liabilities | 6,938 | 6,723 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 8,564 | 7,331 |
Short-term debt | 2,103 | 2,552 |
Long-term debt | 4,157 | 3,357 |
Trust preferred securities | 309 | 309 |
Total liabilities | 6,569 | 6,218 |
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 599 | 659 |
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Trust preferred securities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 8,137 | 6,915 |
Short-term debt | 2,105 | 2,571 |
Long-term debt | 4,376 | 3,690 |
Trust preferred securities | 457 | 462 |
Total liabilities | 6,938 | 6,723 |
Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 14 | 15 |
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Trust preferred securities | 0 | 0 |
Total liabilities | 0 | 0 |
U.S. Treasury And Agency [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 774 | 850 |
U.S. Treasury And Agency [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 756 | 832 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 599 | 659 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 175 | 191 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 0 | 0 |
Foreign [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 818 | 963 |
Foreign [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 784 | 916 |
Foreign [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 0 | 0 |
Foreign [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 818 | 963 |
Foreign [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 3,126 | 2,423 |
Corporate Debt Securities [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 3,093 | 2,323 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 3,112 | 2,408 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 14 | 15 |
Collateralized Mortgage Backed Securities [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 1,817 | 2,039 |
Collateralized Mortgage Backed Securities [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 1,758 | 1,983 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 0 | 0 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 1,817 | 2,039 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 2,215 | 1,314 |
US States and Political Subdivisions Debt Securities [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 2,173 | 1,277 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | 2,215 | 1,314 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities held to maturity, at amortized cost (fair value – $8,750 and $7,589) | $ 0 | $ 0 |
Assumed Life Reinsurance Prog46
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Schedule Of Guaranteed Minimum Benefits Income And Expense) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Guaranteed Minimum Benefits [Line Items] | ||||
Net premiums earned | $ 4,719 | $ 4,754 | $ 13,006 | $ 13,056 |
Policy benefits and other reserve adjustments | 89 | 125 | 384 | 383 |
Net realized gains (losses) | (397) | (120) | (360) | (297) |
Guaranteed Minimum Death Benefit [Member] | ||||
Guaranteed Minimum Benefits [Line Items] | ||||
Net premiums earned | 15 | 17 | 47 | 54 |
Policy benefits and other reserve adjustments | 5 | 12 | 25 | 40 |
Guaranteed Living Benefit [Member] | ||||
Guaranteed Minimum Benefits [Line Items] | ||||
Net premiums earned | 30 | 35 | 92 | 105 |
Policy benefits and other reserve adjustments | 15 | 8 | 34 | 27 |
Net realized gains (losses) | (397) | (76) | (338) | (124) |
Loss recognized in Net income | (382) | (49) | (280) | (46) |
Less: Net cash received | 20 | 31 | 74 | 93 |
Net increase in liability | $ (402) | $ (80) | $ (354) | $ (139) |
Assumed Life Reinsurance Prog47
Assumed Life Reinsurance Programs Involving Minimum Benefit Guarantees Under Annuity Contracts (Narrative) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 |
Guaranteed Minimum Death Benefit [Member] | ||||
Guaranteed Minimum Benefits [Line Items] | ||||
Reported liabilities | $ 113 | $ 111 | ||
Guaranteed Living Benefit [Member] | ||||
Guaranteed Minimum Benefits [Line Items] | ||||
Reported liabilities | 1,000 | 663 | $ 566 | $ 486 |
Fair value derivative adjustment in liability | $ 744 | $ 406 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Oct. 01, 2015 | May. 01, 2015 | Mar. 01, 2015 |
Total ACE INA debt issued in October 2015 [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 5,300 | ||
Senior Notes [Member] | ACE INA Senior Notes Due March 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 800 | ||
Interest Rate | 3.15% | ||
Make Whole Premium Additional Percent | 0.15% | ||
Senior Notes [Member] | ACE INA Senior Notes Due November 2020 [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 1,300 | ||
Interest Rate | 2.30% | ||
Make Whole Premium Additional Percent | 0.15% | ||
Senior Notes [Member] | ACE INA Senior Notes Due November 2022 [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 1,000 | ||
Interest Rate | 2.875% | ||
Make Whole Premium Additional Percent | 0.20% | ||
Senior Notes [Member] | ACE INA Senior Notes Due May 2026 [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 1,500 | ||
Interest Rate | 3.35% | ||
Make Whole Premium Additional Percent | 0.20% | ||
Senior Notes [Member] | ACE INA Senior Notes Due November 2045 [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 1,500 | ||
Interest Rate | 4.35% | ||
Make Whole Premium Additional Percent | 0.25% | ||
ACE INA Senior Notes Due May 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.60% | ||
Current Maturities of Long-Term Deb | $ 450 |
Commitments, Contingencies, A49
Commitments, Contingencies, And Guarantees (Balance Sheet Locations, Fair Values In Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Foreign Exchange Future [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | $ 1,139 | $ 1,329 | |
Cross Currency Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 95 | 95 | |
Futures Contracts On Money Market Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 3,799 | 2,467 | |
Futures contracts on notes and bonds [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 1,238 | 1,636 | |
Convertibles and Bonds with Warrants Attached [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | [1] | 222 | 267 |
Investment And Embedded Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 239 | 309 | |
Notional Value/Payment Provision | 6,493 | 5,794 | |
Single-Stock Future [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | [2] | 1,123 | 1,384 |
Options On Equity Market Indices [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | [2] | 0 | 250 |
Other Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 66 | 10 | |
Other Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 1,189 | 1,644 | |
Guaranteed Living Benefits [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | [3] | 1,224 | 675 |
Other Assets [Member] | Foreign Exchange Future [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 10 | 12 | |
Other Assets [Member] | Futures Contracts On Money Market Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 1 | 0 | |
Other Assets [Member] | Futures contracts on notes and bonds [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 6 | 6 | |
Other Assets [Member] | Single-Stock Future [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | [2] | 23 | 0 |
Other Assets [Member] | Options On Equity Market Indices [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | [2] | 0 | 2 |
Other Assets [Member] | Other Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 3 | 0 | |
Other Assets [Member] | Other Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 26 | $ 2 | |
Other Assets [Member] | Guaranteed Living Benefits [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | [3] | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Foreign Exchange Future [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (11) | $ (7) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Futures Contracts On Money Market Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (5) | 0 | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Futures contracts on notes and bonds [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (11) | (29) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Convertibles and Bonds with Warrants Attached [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | [1] | 0 | 0 |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Investment And Embedded Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (27) | (36) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Single-Stock Future [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | [2] | 0 | (21) |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Options On Equity Market Indices [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | [2] | 0 | 0 |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (7) | (4) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (7) | (25) | |
Fixed Maturities Available For Sale [Member] | Convertibles and Bonds with Warrants Attached [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | [1] | 222 | 291 |
Accounts Payable Future Policy Benefits [Member] | Guaranteed Living Benefits [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | [3] | $ (1,017) | $ (663) |
[1] | Includes fair value of embedded derivatives. | ||
[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. |
Commitments, contingencies, a50
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Document Period End Date | Sep. 30, 2015 | |
Securities Sold under Agreements to Repurchase | $ 1,403 | $ 1,402 |
Assets pledged under repurchase agreements | 1,468 | 1,431 |
Securities lending collateral | 1,011 | 1,330 |
Securities lending payable | 1,012 | $ 1,331 |
Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 8 | |
U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 240 | |
Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 1,220 | |
Repurchase Agreements [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowings, Gross, Difference, Amount | 65 | |
Overnight and Continuous [Member] | Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 492 | |
Overnight and Continuous [Member] | U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 77 | |
Maturity Less than 30 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 422 | |
Maturity Less than 30 Days [Member] | Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 0 | |
Maturity Less than 30 Days [Member] | U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 172 | |
Maturity Less than 30 Days [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 250 | |
30 to 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 155 | |
30 to 90 Days [Member] | Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 0 | |
30 to 90 Days [Member] | U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 61 | |
30 to 90 Days [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 94 | |
Greater than 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 891 | |
Greater than 90 Days [Member] | Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 8 | |
Greater than 90 Days [Member] | U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 7 | |
Greater than 90 Days [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | $ 876 |
Commitments, Contingencies, A51
Commitments, Contingencies, And Guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | $ (344) | $ (63) | $ (272) | $ (233) | |
Foreign Exchange Future [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | 15 | 19 | 30 | 15 | |
All Other Futures Contracts And Options [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | (23) | (15) | (10) | (55) | |
Convertibles and Bonds with Warrants Attached [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | [1] | (14) | (17) | (14) | (13) |
Investment And Embedded Derivative Instruments [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | (22) | (13) | 6 | (53) | |
Guaranteed Living Benefits [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | [2] | (396) | (80) | (337) | (126) |
Single-Stock Future [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | [3] | 84 | (15) | 71 | (103) |
Options On Equity Market Indices [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | [3] | (1) | 0 | (2) | (3) |
Guaranteed Living Benefit And Other Derivative Instruments [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | (322) | (50) | (278) | (180) | |
Other Derivatives [Member] | |||||
Commitments Contingencies And Guarantees [Line Items] | |||||
Net realized gains (losses) | $ (9) | $ 45 | $ (10) | $ 52 | |
[1] | (1) Includes embedded derivatives. | ||||
[2] | (2) Excludes foreign exchange gains (losses) related to GLB | ||||
[3] | (3) Related to GMDB and GLB blocks of business. |
Commitments, Contingencies, A52
Commitments, Contingencies, And Guarantees (Narrative) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities lending collateral | $ 1,011 | $ 1,330 |
Carrying value of limited partnerships and partially-owned investment companies included in other investments | 2,200 | |
Funding commitments relating to limited partnerships and partially-owned investment companies | 916 | |
Unrecognized tax benefits | 22 | |
Derivative liability subject to a master netting agreement | 19 | $ 34 |
Cash and Cash Equivalents [Member] | Overnight and Continuous [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities lending collateral | 492 | |
Foreign [Member] | Overnight and Continuous [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities lending collateral | 385 | |
U.S. Treasury And Agency [Member] | Overnight and Continuous [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities lending collateral | 77 | |
Corporate Securities [Member] | Overnight and Continuous [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities lending collateral | 57 | |
Securities Lending Program [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Secured Borrowings, Gross, Difference, Amount | $ 1 |
Shareholders' equity Sharehol53
Shareholders' equity Shareholders' equity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)SFr / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2014USD ($)SFr / shares | Jun. 30, 2014$ / shares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)SFr / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2014USD ($)SFr / shares | Sep. 30, 2013$ / shares | Sep. 30, 2015SFr / shares | May. 31, 2015$ / shares | Jan. 01, 2015USD ($) | Dec. 31, 2014SFr / sharesshares | May. 31, 2014$ / shares | Nov. 30, 2013USD ($) | May. 31, 2013$ / shares | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Common Shares in treasury, shares | shares | 18,770,044 | 18,770,044 | 18,770,044 | 18,770,044 | 14,172,726 | ||||||||||||
Par Value Reduction | (per share) | $ 0 | SFr 0 | $ 0.65 | SFr 0.61 | $ 0.65 | SFr 0.62 | $ 1.81 | SFr 1.64 | |||||||||
Dividends Declared From Additional Paid In Capital | (per share) | 0.67 | 0.65 | 0 | 0 | 1.34 | 1.27 | 0.24 | 0.20 | |||||||||
Annual dividend per share approved by shareholders | $ / shares | $ 2.68 | $ 2.60 | $ 2.04 | ||||||||||||||
Increase to dividend approved by shareholders in January | $ / shares | $ 0.12 | ||||||||||||||||
Dividends declared per common share | (per share) | 0.67 | SFr 0.65 | $ 0.65 | SFr 0.61 | 1.99 | SFr 1.89 | $ 2.05 | SFr 1.84 | |||||||||
Common Stock, Dividend Rate, Per-Dollar-Amount | $ / shares | $ 0.65 | $ 0.67 | $ 0.51 | ||||||||||||||
Common Stock, Dividend Rate, Per-Dollar-Amount After Increase | $ / shares | $ 0.63 | ||||||||||||||||
Common Shares, par value | SFr / shares | SFr 24.15 | SFr 24.77 | |||||||||||||||
2015 Stock Repurchase Plan [Member] | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Common Shares repurchased | $ 0 | $ 734 | |||||||||||||||
Repurchase of outstanding common shares, shares | shares | 0 | 6,677,663 | |||||||||||||||
Share repurchase authorization remains | $ 766 | SFr 766 | $ 766 | SFr 766 | |||||||||||||
Stock repurchase program, authorized amount | $ 1,500 | ||||||||||||||||
November 2013 Stock Repurchase Plan [Member] | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Common Shares repurchased | $ 450 | $ 1,019 | |||||||||||||||
Repurchase of outstanding common shares, shares | shares | 4,349,302 | 10,143,184 | |||||||||||||||
Share repurchase authorization remains | $ 924 | SFr 924 | $ 924 | SFr 924 | |||||||||||||
Stock repurchase program, authorized amount | $ 2,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Detail) - $ / shares | Feb. 26, 2015 | Sep. 30, 2015 |
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 | |
Restricted stock award and units vesting period in years | 4 years | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 1,891,195 | |
Weighted-average grant date fair value for stock options granted | $ 18.49 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted to employees and officers of the company | 1,278,250 | |
Grant date fair value of awards except for options granted to employees and officers of the company | $ 114.78 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units awarded to employees and officers of the company | 290,475 | |
Grant date fair value of awards except for options granted to employees and officers of the company | $ 114.78 |
Segment Information (Operations
Segment Information (Operations By Segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net premiums written | $ 4,709 | $ 4,729 | $ 13,569 | $ 13,473 |
Net premiums earned | 4,719 | 4,754 | 13,006 | 13,056 |
Losses and loss expenses | 2,643 | 2,684 | 7,182 | 7,233 |
Policy benefits | 89 | 125 | 384 | 383 |
Policy acquisition costs | 771 | 825 | 2,205 | 2,311 |
Administrative expenses | 568 | 554 | 1,700 | 1,655 |
Underwriting income (loss) | 648 | 566 | 1,535 | 1,474 |
Net investment income | 549 | 566 | 1,662 | 1,675 |
Net realized gains (losses) including OTTI | (397) | (120) | (360) | (297) |
Interest expense | 68 | 70 | 207 | 213 |
(Gains) losses from fair value changes in separate account assets | 49 | 6 | 32 | (5) |
Other | (37) | (52) | (93) | (134) |
Other (income) expense | 12 | (46) | (61) | (139) |
Amortization of intangible assets | 51 | 27 | 136 | 78 |
Chubb integration expenses | 9 | 0 | 9 | 0 |
Income tax expense (benefit) | 132 | 176 | 395 | 402 |
Net income (loss) | 528 | 785 | 2,151 | 2,298 |
Insurance - North American P&C [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 1,711 | 1,541 | 5,116 | 4,594 |
Net premiums earned | 1,682 | 1,518 | 4,896 | 4,547 |
Losses and loss expenses | 1,175 | 1,053 | 3,330 | 3,009 |
Policy acquisition costs | 155 | 169 | 446 | 480 |
Administrative expenses | 192 | 165 | 552 | 501 |
Underwriting income (loss) | 160 | 131 | 568 | 557 |
Net investment income | 266 | 277 | 798 | 812 |
Net realized gains (losses) including OTTI | (33) | (5) | (39) | (25) |
Interest expense | 3 | 2 | 7 | 7 |
Other | (16) | (31) | (32) | (75) |
Amortization of intangible assets | 31 | 0 | 63 | 0 |
Chubb integration expenses | 0 | 0 | ||
Income tax expense (benefit) | 70 | 73 | 239 | 247 |
Net income (loss) | 305 | 359 | 1,050 | 1,165 |
Insurance - North American Agriculture [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting Income Including Losses Related to Crop Derivatives | 73 | |||
Net premiums written | 737 | 764 | 1,204 | 1,346 |
Net premiums earned | 739 | 766 | 1,124 | 1,199 |
Losses and loss expenses | 620 | 686 | 913 | 1,099 |
Policy acquisition costs | 42 | 41 | 61 | 69 |
Administrative expenses | 0 | 3 | 3 | 5 |
Underwriting income (loss) | 77 | 36 | 147 | 26 |
Net investment income | 5 | 6 | 17 | 19 |
Net realized gains (losses) including OTTI | (4) | 45 | (6) | 51 |
Interest expense | 0 | 0 | 0 | 0 |
Other | (1) | (1) | 1 | 0 |
Amortization of intangible assets | 8 | 8 | 22 | 24 |
Chubb integration expenses | 0 | 0 | ||
Income tax expense (benefit) | 15 | 23 | 29 | 21 |
Net income (loss) | 56 | 57 | 106 | 51 |
Crop Derivative Gain or Loss | 4 | |||
Insurance - Overseas General [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 1,584 | 1,719 | 5,047 | 5,250 |
Net premiums earned | 1,615 | 1,726 | 4,896 | 5,047 |
Losses and loss expenses | 674 | 707 | 2,304 | 2,354 |
Policy acquisition costs | 405 | 418 | 1,190 | 1,206 |
Administrative expenses | 246 | 258 | 756 | 764 |
Underwriting income (loss) | 290 | 343 | 646 | 723 |
Net investment income | 132 | 130 | 409 | 398 |
Net realized gains (losses) including OTTI | (13) | (75) | (10) | (71) |
Interest expense | 1 | 2 | 3 | 4 |
Other | (6) | (13) | (19) | (44) |
Amortization of intangible assets | 12 | 19 | 50 | 52 |
Chubb integration expenses | 0 | 0 | ||
Income tax expense (benefit) | 76 | 97 | 197 | 189 |
Net income (loss) | 326 | 293 | 814 | 849 |
Global Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 185 | 208 | 719 | 794 |
Net premiums earned | 203 | 255 | 649 | 800 |
Losses and loss expenses | 20 | 92 | 191 | 327 |
Policy acquisition costs | 52 | 74 | 166 | 201 |
Administrative expenses | 12 | 13 | 37 | 41 |
Underwriting income (loss) | 119 | 76 | 255 | 231 |
Net investment income | 76 | 81 | 230 | 238 |
Net realized gains (losses) including OTTI | (14) | 6 | (20) | (17) |
Interest expense | 1 | 1 | 3 | 4 |
Other | (2) | (10) | (10) | (39) |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Chubb integration expenses | 0 | 0 | ||
Income tax expense (benefit) | 8 | 11 | 23 | 31 |
Net income (loss) | 174 | 161 | 449 | 456 |
Life [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Life underwriting income | 64 | |||
Net premiums written | 492 | 497 | 1,483 | 1,489 |
Net premiums earned | 480 | 489 | 1,441 | 1,463 |
Losses and loss expenses | 153 | 145 | 442 | 442 |
Policy benefits | 89 | 125 | 384 | 383 |
Policy acquisition costs | 117 | 123 | 342 | 355 |
Administrative expenses | 74 | 71 | 221 | 212 |
Underwriting income (loss) | 47 | 25 | 52 | 71 |
Net investment income | 66 | 69 | 198 | 199 |
Net realized gains (losses) including OTTI | (326) | (89) | (282) | (237) |
Interest expense | 1 | 4 | 4 | 10 |
(Gains) losses from fair value changes in separate account assets | 49 | 6 | 32 | (5) |
Other | (13) | (3) | (43) | 6 |
Amortization of intangible assets | 0 | 0 | 1 | 2 |
Chubb integration expenses | 0 | 0 | ||
Income tax expense (benefit) | 8 | 12 | 27 | 34 |
Net income (loss) | (258) | (14) | (53) | (14) |
Corporate And Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Losses and loss expenses | 1 | 1 | 2 | 2 |
Policy acquisition costs | 0 | 0 | ||
Administrative expenses | 44 | 44 | 131 | 132 |
Underwriting income (loss) | (45) | (45) | (133) | (134) |
Net investment income | 4 | 3 | 10 | 9 |
Net realized gains (losses) including OTTI | (7) | (2) | (3) | 2 |
Interest expense | 62 | 61 | 190 | 188 |
Other | 1 | 6 | 10 | 18 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Chubb integration expenses | 9 | 9 | ||
Income tax expense (benefit) | (45) | (40) | (120) | (120) |
Net income (loss) | $ (75) | $ (71) | $ (215) | $ (209) |
Segment Information (Net Premiu
Segment Information (Net Premiums Earned For Segment By Product) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Property & All Other | $ 2,060 | $ 2,079 | $ 5,038 | $ 5,046 |
Casualty | 1,548 | 1,493 | 4,642 | 4,515 |
Life, Accident & Health | 1,111 | 1,182 | 3,326 | 3,495 |
Net premiums earned | 4,719 | 4,754 | 13,006 | 13,056 |
Insurance - North American P&C [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 1,682 | 1,518 | 4,896 | 4,547 |
Insurance - North American P&C [Member] | Property Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 511 | 420 | 1,428 | 1,248 |
Insurance - North American P&C [Member] | Casualty Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 1,063 | 993 | 3,157 | 2,992 |
Insurance - North American P&C [Member] | Life Accident And Health Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 108 | 105 | 311 | 307 |
Insurance - North American Agriculture [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 739 | 766 | 1,124 | 1,199 |
Insurance - North American Agriculture [Member] | Property Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 739 | 766 | 1,124 | 1,199 |
Insurance - North American Agriculture [Member] | Casualty Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Insurance - North American Agriculture [Member] | Life Accident And Health Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Insurance - Overseas General [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 1,615 | 1,726 | 4,896 | 5,047 |
Insurance - Overseas General [Member] | Property Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 706 | 744 | 2,163 | 2,164 |
Insurance - Overseas General [Member] | Casualty Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 386 | 394 | 1,159 | 1,158 |
Insurance - Overseas General [Member] | Life Accident And Health Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 523 | 588 | 1,574 | 1,725 |
Global Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 203 | 255 | 649 | 800 |
Global Reinsurance [Member] | Property Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 104 | 149 | 323 | 435 |
Global Reinsurance [Member] | Casualty Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 99 | 106 | 326 | 365 |
Global Reinsurance [Member] | Life Accident And Health Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Life [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 480 | 489 | 1,441 | 1,463 |
Life [Member] | Property Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Life [Member] | Casualty Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Life [Member] | Life Accident And Health Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | $ 480 | $ 489 | $ 1,441 | $ 1,463 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 528 | $ 785 | $ 2,151 | $ 2,298 |
Weighted-average shares outstanding | 324,210,936 | 334,472,324 | 325,904,502 | 337,083,498 |
Share-based compensation plans | 2,962,484 | 3,201,656 | 3,269,724 | 3,298,569 |
Weighted-average shares outstanding and assumed conversions | 327,173,420 | 337,673,980 | 329,174,226 | 340,382,067 |
Basic earnings per share (US$ per share) | $ 1.63 | $ 2.35 | $ 6.60 | $ 6.82 |
Diluted earnings per share (US$ per share) | $ 1.62 | $ 2.32 | $ 6.53 | $ 6.75 |
Potential anti-dilutive share conversions | 1,907,815 | 1,227,575 | 1,503,830 | 1,410,340 |
Information Provided In Conne58
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | [4] | |||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Investments | $ 62,384 | $ 62,904 | ||||||
Cash | 1,038 | [1],[2] | 655 | [1],[3] | $ 806 | [4] | $ 579 | |
Insurance and reinsurance balances receivable | 5,290 | 5,426 | ||||||
Reinsurance recoverable on losses and loss expenses | 11,231 | 11,992 | ||||||
Reinsurance recoverable on policy benefits | 194 | 217 | ||||||
Value of business acquired | 410 | 466 | ||||||
Goodwill and other intangible assets | 5,713 | 5,724 | ||||||
Investments in subsidiaries | 0 | 0 | ||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||
Other assets | 11,500 | 10,864 | ||||||
Total assets | 97,760 | 98,248 | ||||||
Unpaid losses and loss expenses | 37,564 | 38,315 | ||||||
Unearned premiums | 8,510 | 8,222 | ||||||
Future policy benefits | 4,776 | 4,754 | ||||||
Due to subsidiaries and affiliates, net | 0 | 0 | ||||||
Short-term debt | 2,103 | 2,552 | ||||||
Affiliated notional cash pooling programs | 0 | 0 | ||||||
Long-term debt | 4,157 | 3,357 | ||||||
Trust preferred securities | 309 | 309 | ||||||
Other liabilities | 11,214 | 11,152 | ||||||
Total liabilities | 68,633 | 68,661 | ||||||
Total shareholders' equity | 29,127 | 29,587 | 30,017 | |||||
Total liabilities and shareholders’ equity | 97,760 | 98,248 | ||||||
ACE Limited (Parent Guarantor) | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Investments | 29 | 30 | ||||||
Cash | 17 | [1],[2] | 0 | [1],[3] | 8 | [4] | 0 | |
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 | 29,441 | 29,497 | ||||||
Due from subsidiaries and affiliates, net | 866 | 583 | ||||||
Other assets | 9 | 4 | ||||||
Total assets | 30,362 | 30,114 | ||||||
Unpaid losses and loss expenses | 0 | 0 | ||||||
Unearned premiums | 0 | |||||||
Future policy benefits | 0 | 0 | ||||||
Due to subsidiaries and affiliates, net | 0 | 0 | ||||||
Short-term debt | 0 | 0 | ||||||
Affiliated notional cash pooling programs | 973 | [2] | 246 | [3] | ||||
Long-term debt | 0 | 0 | ||||||
Trust preferred securities | 0 | 0 | ||||||
Other liabilities | 262 | 281 | ||||||
Total liabilities | 1,235 | 527 | ||||||
Total shareholders' equity | 29,127 | 29,587 | ||||||
Total liabilities and shareholders’ equity | 30,362 | 30,114 | ||||||
ACE INA Holdings Inc (Subsidiary Issuer) | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Investments | 35 | 225 | ||||||
Cash | 5 | [1],[2] | 1 | [1],[3] | 12 | [4] | 16 | |
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 | 19,184 | 18,762 | ||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||
Other assets | 272 | 295 | ||||||
Total assets | 19,496 | 19,283 | ||||||
Unpaid losses and loss expenses | 0 | 0 | ||||||
Unearned premiums | 0 | |||||||
Future policy benefits | 0 | 0 | ||||||
Due to subsidiaries and affiliates, net | 698 | 422 | ||||||
Short-term debt | 700 | 1,150 | ||||||
Affiliated notional cash pooling programs | 188 | [2] | 309 | [3] | ||||
Long-term debt | 4,145 | 3,345 | ||||||
Trust preferred securities | 309 | 309 | ||||||
Other liabilities | 1,458 | 1,404 | ||||||
Total liabilities | 7,498 | 6,939 | ||||||
Total shareholders' equity | 11,998 | 12,344 | ||||||
Total liabilities and shareholders’ equity | 19,496 | 19,283 | ||||||
Other ACE Limited Subsidiaries | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Investments | 62,320 | 62,649 | ||||||
Cash | 2,177 | [1],[2] | 1,209 | [1],[3] | 1,391 | [4] | 748 | |
Insurance and reinsurance balances receivable | 6,284 | 6,178 | ||||||
Reinsurance recoverable on losses and loss expenses | 20,039 | 20,992 | ||||||
Reinsurance recoverable on policy benefits | 1,148 | 1,194 | ||||||
Value of business acquired | 410 | 466 | ||||||
Goodwill and other intangible assets | 5,713 | 5,724 | ||||||
Investments in subsidiaries | 0 | 0 | ||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||
Other assets | 14,880 | 14,196 | ||||||
Total assets | 112,971 | 112,608 | ||||||
Unpaid losses and loss expenses | 45,810 | 46,770 | ||||||
Unearned premiums | 10,329 | 9,958 | ||||||
Future policy benefits | 5,730 | 5,731 | ||||||
Due to subsidiaries and affiliates, net | 168 | 161 | ||||||
Short-term debt | 1,403 | 1,402 | ||||||
Affiliated notional cash pooling programs | 0 | [2] | 0 | [3] | ||||
Long-term debt | 12 | 12 | ||||||
Trust preferred securities | 0 | 0 | ||||||
Other liabilities | 12,892 | 12,659 | ||||||
Total liabilities | 76,344 | 76,693 | ||||||
Total shareholders' equity | 36,627 | 35,915 | ||||||
Total liabilities and shareholders’ equity | 112,971 | 112,608 | ||||||
Consolidating Adjustments and Eliminations | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Investments | 0 | 0 | ||||||
Cash | (1,161) | [1],[2] | (555) | [1],[3] | $ (605) | [4] | $ (185) | |
Insurance and reinsurance balances receivable | (994) | (752) | ||||||
Reinsurance recoverable on losses and loss expenses | (8,808) | (9,000) | ||||||
Reinsurance recoverable on policy benefits | (954) | (977) | ||||||
Value of business acquired | 0 | 0 | ||||||
Goodwill and other intangible assets | 0 | 0 | ||||||
Investments in subsidiaries | (48,625) | (48,259) | ||||||
Due from subsidiaries and affiliates, net | (866) | (583) | ||||||
Other assets | (3,661) | (3,631) | ||||||
Total assets | (65,069) | (63,757) | ||||||
Unpaid losses and loss expenses | (8,246) | (8,455) | ||||||
Unearned premiums | (1,819) | (1,736) | ||||||
Future policy benefits | (954) | (977) | ||||||
Due to subsidiaries and affiliates, net | (866) | (583) | ||||||
Short-term debt | 0 | 0 | ||||||
Affiliated notional cash pooling programs | (1,161) | [2] | (555) | [3] | ||||
Long-term debt | 0 | 0 | ||||||
Trust preferred securities | 0 | 0 | ||||||
Other liabilities | (3,398) | (3,192) | ||||||
Total liabilities | (16,444) | (15,498) | ||||||
Total shareholders' equity | (48,625) | (48,259) | ||||||
Total liabilities and shareholders’ equity | $ (65,069) | $ (63,757) | ||||||
[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 September 30, 2015 and December 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 September 30, 2015, 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, 2014, 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 September 30, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Information Provided In Conne59
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net premiums written | $ 4,709 | $ 4,729 | $ 13,569 | $ 13,473 |
Net premiums earned | 4,719 | 4,754 | 13,006 | 13,056 |
Net investment income | 549 | 566 | 1,662 | 1,675 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net realized gains (losses) including OTTI | (397) | (120) | (360) | (297) |
Losses and loss expenses | 2,643 | 2,684 | 7,182 | 7,233 |
Policy benefits | 89 | 125 | 384 | 383 |
Policy acquisition costs and administrative expenses | 1,339 | 1,379 | 3,905 | 3,966 |
Interest (income) expense | 68 | 70 | 207 | 213 |
Other (income) expense | 12 | (46) | (61) | (139) |
Amortization of intangible assets | 51 | 27 | 136 | 78 |
Chubb integration expenses | 9 | 0 | 9 | 0 |
Income tax expense (benefit) | 132 | 176 | 395 | 402 |
Net income (loss) | 528 | 785 | 2,151 | 2,298 |
Comprehensive income (loss) | (271) | 298 | 768 | 2,754 |
ACE Limited (Parent Guarantor) | ||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 1 | 1 | 2 | 2 |
Equity in earnings of subsidiaries | 488 | 745 | 2,037 | 2,192 |
Net realized gains (losses) including OTTI | 0 | 0 | 0 | 0 |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | 15 | 18 | 47 | 57 |
Interest (income) expense | (8) | (7) | (23) | (26) |
Other (income) expense | (51) | (54) | (149) | (146) |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Chubb integration expenses | 1 | 1 | ||
Income tax expense (benefit) | 4 | 4 | 12 | 11 |
Net income (loss) | 528 | 785 | 2,151 | 2,298 |
Comprehensive income (loss) | (271) | 298 | 768 | 2,754 |
ACE INA Holdings Inc (Subsidiary Issuer) | ||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 1 | 0 | 2 | 1 |
Equity in earnings of subsidiaries | 255 | 258 | 755 | 669 |
Net realized gains (losses) including OTTI | (4) | 46 | (6) | 53 |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | 7 | 6 | 20 | 20 |
Interest (income) expense | 68 | 68 | 206 | 209 |
Other (income) expense | (5) | 2 | (12) | 22 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Chubb integration expenses | 8 | 8 | ||
Income tax expense (benefit) | (31) | (11) | (84) | (66) |
Net income (loss) | 205 | 239 | 613 | 538 |
Comprehensive income (loss) | (265) | 33 | (332) | 810 |
Other ACE Limited Subsidiaries | ||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net premiums written | 4,709 | 4,729 | 13,569 | 13,473 |
Net premiums earned | 4,719 | 4,754 | 13,006 | 13,056 |
Net investment income | 547 | 565 | 1,658 | 1,672 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net realized gains (losses) including OTTI | (393) | (166) | (354) | (350) |
Losses and loss expenses | 2,643 | 2,684 | 7,182 | 7,233 |
Policy benefits | 89 | 125 | 384 | 383 |
Policy acquisition costs and administrative expenses | 1,317 | 1,355 | 3,838 | 3,889 |
Interest (income) expense | 8 | 9 | 24 | 30 |
Other (income) expense | 68 | 6 | 100 | (15) |
Amortization of intangible assets | 51 | 27 | 136 | 78 |
Chubb integration expenses | 0 | 0 | ||
Income tax expense (benefit) | 159 | 183 | 467 | 457 |
Net income (loss) | 538 | 764 | 2,179 | 2,323 |
Comprehensive income (loss) | (262) | 276 | 795 | 2,778 |
Consolidating Adjustments and Eliminations | ||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (743) | (1,003) | (2,792) | (2,861) |
Net realized gains (losses) including OTTI | 0 | 0 | 0 | 0 |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | 0 | 0 | 0 | 0 |
Interest (income) expense | 0 | 0 | 0 | 0 |
Other (income) expense | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Chubb integration expenses | 0 | 0 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | (743) | (1,003) | (2,792) | (2,861) |
Comprehensive income (loss) | $ 527 | $ (309) | $ (463) | $ (3,588) |
Information Provided In Conne60
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | |||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net cash flows from operating activities | $ 2,699 | $ 3,222 | ||
Purchases of fixed maturities available for sale | (13,060) | (11,867) | ||
Purchases of fixed maturities held to maturity | (39) | (185) | ||
Purchases of equity securities | (122) | (222) | ||
Sales of fixed maturities available for sale | 5,233 | 6,306 | ||
Sales of equity securities | 150 | 322 | ||
Maturities and redemptions of fixed maturities available for sale | 5,257 | 4,814 | ||
Maturities and redemptions of fixed maturities held to maturity | 552 | 617 | ||
Net change in short-term investments | 421 | (984) | ||
Net derivative instruments settlements | 62 | (170) | ||
Cash Acquired from Acquisition | 620 | 4 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 259 | (172) | ||
Capital contribution | 0 | |||
Other | (138) | (147) | ||
Net cash flows used for investing activities | (1,425) | (1,688) | ||
Dividends paid on Common Shares | (644) | (646) | ||
Common Shares repurchased | (758) | (1,007) | ||
Proceeds from issuance of long-term debt | 800 | 699 | ||
Proceeds from issuance of short-term debt | 1,478 | 1,827 | ||
Repayments of Long-term Debt | (451) | (501) | ||
Repayments of Short-term Debt | (1,477) | (1,827) | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 89 | 94 | ||
Dividend to Parent Company | 0 | 0 | ||
Capital contribution | 0 | |||
Advances To From Affiliates Financing Activities | 0 | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | 0 | ||
Policyholder contract deposits | 351 | 189 | ||
Policyholder contract withdrawals | (159) | (62) | ||
Other | (6) | (6) | ||
Net cash flows (used for) from financing activities | (777) | (1,240) | ||
Effect of foreign currency rate changes on cash and cash equivalents | (114) | (67) | ||
Net increase in cash | 383 | 227 | ||
Cash – beginning of period | 655 | [1],[2] | 579 | [3] |
Cash – end of period | 1,038 | [2],[4] | 806 | [3] |
ACE Limited (Parent Guarantor) | ||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net cash flows from operating activities | 350 | 168 | ||
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 | ||
Net change in short-term investments | 0 | 1 | ||
Net derivative instruments settlements | 0 | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |||
Capital contribution | 0 | 0 | ||
Other | 0 | 0 | ||
Net cash flows used for investing activities | 0 | 1 | ||
Dividends paid on Common Shares | (644) | (646) | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | |||
Proceeds from issuance of short-term debt | 0 | |||
Repayments of Long-term Debt | 0 | |||
Repayments of Short-term Debt | 0 | 0 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 0 | 0 | ||
Dividend to Parent Company | 0 | 0 | ||
Capital contribution | 0 | |||
Advances To From Affiliates Financing Activities | (416) | 97 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 727 | [2] | 388 | [3] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Other | 0 | 0 | ||
Net cash flows (used for) from financing activities | (333) | (161) | ||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash | 17 | 8 | ||
Cash – beginning of period | 0 | [1],[2] | 0 | [3] |
Cash – end of period | 17 | [2],[4] | 8 | [3] |
ACE INA Holdings Inc (Subsidiary Issuer) | ||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net cash flows from operating activities | (46) | 139 | ||
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 | ||
Net change in short-term investments | 215 | (16) | ||
Net derivative instruments settlements | (10) | 53 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | ||
Capital contribution | (625) | (230) | ||
Other | (25) | (9) | ||
Net cash flows used for investing activities | (445) | (202) | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from issuance of long-term debt | 800 | 699 | ||
Repayments of Long-term Debt | (450) | (500) | ||
Repayments of Short-term Debt | 0 | 0 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 0 | 0 | ||
Dividend to Parent Company | 0 | 0 | ||
Capital contribution | 0 | |||
Advances To From Affiliates Financing Activities | 272 | (166) | ||
Net proceeds from (payments to) affiliated notional cash pooling program | (121) | [2] | 32 | [3] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Other | (6) | (6) | ||
Net cash flows (used for) from financing activities | 495 | 59 | ||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash | 4 | (4) | ||
Cash – beginning of period | 1 | [1],[2] | 16 | [3] |
Cash – end of period | 5 | [2],[4] | 12 | [3] |
Other ACE Limited Subsidiaries | ||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net cash flows from operating activities | 2,671 | 3,115 | ||
Purchases of fixed maturities available for sale | (13,052) | (11,870) | ||
Purchases of fixed maturities held to maturity | (39) | (185) | ||
Purchases of equity securities | (122) | (222) | ||
Sales of fixed maturities available for sale | 5,233 | 6,309 | ||
Sales of equity securities | 150 | 322 | ||
Maturities and redemptions of fixed maturities available for sale | 5,257 | 4,814 | ||
Maturities and redemptions of fixed maturities held to maturity | 552 | 617 | ||
Net change in short-term investments | 206 | (969) | ||
Net derivative instruments settlements | 72 | (223) | ||
Payments to Acquire Businesses, Net of Cash Acquired | 259 | (172) | ||
Capital contribution | 0 | 0 | ||
Other | (121) | (138) | ||
Net cash flows used for investing activities | (1,605) | (1,717) | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | (758) | (1,007) | ||
Proceeds from issuance of long-term debt | 0 | |||
Proceeds from issuance of short-term debt | 1,478 | 1,827 | ||
Repayments of Long-term Debt | (1) | (1) | ||
Repayments of Short-term Debt | (1,477) | (1,827) | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 89 | 94 | ||
Dividend to Parent Company | (276) | (200) | ||
Capital contribution | 625 | 230 | ||
Advances To From Affiliates Financing Activities | 144 | 69 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | [2] | 0 | [3] |
Policyholder contract deposits | 351 | 189 | ||
Policyholder contract withdrawals | (159) | (62) | ||
Other | 0 | 0 | ||
Net cash flows (used for) from financing activities | 16 | (688) | ||
Effect of foreign currency rate changes on cash and cash equivalents | (114) | (67) | ||
Net increase in cash | 968 | 643 | ||
Cash – beginning of period | 1,209 | [1],[2] | 748 | [3] |
Cash – end of period | 2,177 | [2],[4] | 1,391 | [3] |
Consolidating Adjustments and Eliminations | ||||
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Line Items] | ||||
Net cash flows from operating activities | (276) | (200) | ||
Purchases of fixed maturities available for sale | (8) | 3 | ||
Purchases of fixed maturities held to maturity | 0 | 0 | ||
Purchases of equity securities | 0 | 0 | ||
Sales of fixed maturities available for sale | 0 | (3) | ||
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 change in short-term investments | 0 | 0 | ||
Net derivative instruments settlements | 0 | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | ||
Capital contribution | 625 | 230 | ||
Other | 8 | 0 | ||
Net cash flows used for investing activities | 625 | 230 | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | |||
Proceeds from issuance of short-term debt | 0 | |||
Repayments of Long-term Debt | 0 | |||
Repayments of Short-term Debt | 0 | 0 | ||
Proceeds from share-based compensation plans, including windfall tax benefits | 0 | 0 | ||
Dividend to Parent Company | 276 | 200 | ||
Capital contribution | (625) | (230) | ||
Advances To From Affiliates Financing Activities | 0 | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | (606) | [2] | (420) | [3] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Other | 0 | 0 | ||
Net cash flows (used for) from financing activities | (955) | (450) | ||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase in cash | (606) | (420) | ||
Cash – beginning of period | (555) | [1],[2] | (185) | [3] |
Cash – end of period | $ (1,161) | [2],[4] | $ (605) | [3] |
[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, 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 September 30, 2015 and December 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 September 30, 2014 and 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 September 30, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |