Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 21, 2017 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CB | |
Entity Registrant Name | Chubb Ltd | |
Entity Central Index Key | 896,159 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Common Shares Outstanding | 465,416,079 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |||
Investments [Abstract] | |||||
Fixed maturities available for sale, at fair value (amortized cost – $80,363 and $79,536)(includes hybrid financial instruments of $2 and $2) | $ 81,645 | $ 80,115 | |||
Fixed maturities held to maturity, at amortized cost (fair value – $10,560 and $10,670) | 10,371 | 10,644 | |||
Equity securities, at fair value (cost – $697 and $706) | 856 | 814 | |||
Short-term investments, at fair value and amortized cost | 2,651 | 3,002 | |||
Other investments (cost – $4,410 and $4,270) | 4,685 | 4,519 | |||
Total investments | 100,208 | 99,094 | |||
Cash | [1] | 1,297 | [2] | 985 | [3] |
Securities lending collateral | 1,545 | 1,092 | |||
Accrued investment income | 901 | 918 | |||
Insurance and reinsurance balances receivable | 9,662 | 8,970 | |||
Reinsurance recoverable on losses and loss expenses | 13,358 | 13,577 | |||
Reinsurance recoverable on policy benefits | 198 | 182 | |||
Deferred policy acquisition costs | 4,546 | 4,314 | |||
Value of business acquired | 337 | 355 | |||
Goodwill | 15,434 | 15,332 | |||
Other intangible assets | 6,579 | 6,763 | |||
Prepaid reinsurance premiums | 2,592 | 2,448 | |||
Investments in partially-owned insurance companies | 662 | 666 | |||
Other assets | 5,669 | 5,090 | |||
Total assets | 162,988 | 159,786 | |||
Liabilities | |||||
Unpaid losses and loss expenses | 60,394 | 60,540 | |||
Unearned premiums | 15,289 | 14,779 | |||
Future policy benefits | 5,190 | 5,036 | |||
Insurance and reinsurance balances payable | 5,841 | 5,637 | |||
Securities lending payable | 1,546 | 1,093 | |||
Accounts payable, accrued expenses, and other liabilities | 8,952 | 8,617 | |||
Deferred tax liabilities | 1,122 | 988 | |||
Repurchase agreements | 1,408 | 1,403 | |||
Short-term debt | 922 | 500 | |||
Long-term debt | 11,667 | 12,610 | |||
Trust preferred securities | 308 | 308 | |||
Total liabilities | 112,639 | 111,511 | |||
Commitments and contingencies | |||||
Shareholders’ equity | |||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 465,375,141 and 465,968,716 shares outstanding) | 11,121 | 11,121 | |||
Common Shares in treasury (14,408,723 and 13,815,148 shares) | (1,675) | (1,480) | |||
Additional paid-in capital | 14,522 | 15,335 | |||
Retained earnings | 26,011 | 23,613 | |||
Accumulated other comprehensive income (loss) (AOCI) | 370 | (314) | |||
Total shareholders’ equity | 50,349 | 48,275 | |||
Total liabilities and shareholders’ equity | $ 162,988 | $ 159,786 | |||
[1] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | ||||
[2] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | ||||
[3] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2016, 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 | Jun. 30, 2017USD ($)shares | Dec. 31, 2016USD ($)shares |
Statement of Financial Position [Abstract] | ||
Available for sale, at amortized cost | $ 80,363 | $ 79,536 |
Fixed maturities available for sale, hybrid financial instruments | 2 | 2 |
Held to maturity, at Fair Value | 10,560 | 10,670 |
Equity securities, at cost | 697 | 706 |
Other investments, cost | $ 4,410 | $ 4,270 |
Common Shares, shares issued | shares | 479,783,864 | 479,783,864 |
Common Shares, shares outstanding | shares | 465,375,141 | 465,968,716 |
Common Shares in treasury, shares | shares | 14,408,723 | 13,815,148 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Net premiums written | $ 7,581 | $ 7,639 | $ 14,291 | $ 13,634 |
Decrease (increase) in unearned premiums | (344) | (234) | (282) | 368 |
Net premiums earned | 7,237 | 7,405 | 14,009 | 14,002 |
Net investment income | 770 | 708 | 1,515 | 1,382 |
Net Realized Gains Losses [Abstract] | ||||
Other-than-temporary impairment (OTTI) losses gross | (9) | (16) | (28) | (87) |
Portion of OTTI losses recognized in other comprehensive income (OCI) | 1 | 0 | 1 | 8 |
Net OTTI losses recognized in income | (8) | (16) | (27) | (79) |
Net realized gains (losses) excluding OTTI losses | 109 | (200) | 121 | (531) |
Total net realized gains (losses) (includes $25, $2, $17, and $(150) reclassified from AOCI) | 101 | (216) | 94 | (610) |
Total revenues | 8,108 | 7,897 | 15,618 | 14,774 |
Expenses | ||||
Losses and loss expenses | 4,146 | 4,254 | 7,935 | 7,928 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs | 1,449 | 1,560 | 2,846 | 2,973 |
Administrative expenses | 706 | 829 | 1,382 | 1,601 |
Interest expense | 147 | 153 | 301 | 299 |
Other (income) expense | (145) | (29) | (215) | (1) |
Amortization of purchased intangibles | 65 | 5 | 129 | 12 |
Chubb integration expenses | 72 | 98 | 183 | 246 |
Total expenses | 6,603 | 7,016 | 12,892 | 13,330 |
Income before income tax | 1,505 | 881 | 2,726 | 1,444 |
Income tax expense (includes $9, $6, $3 and $5 on reclassified unrealized gains and losses) | 200 | 155 | 328 | 279 |
Net income | 1,305 | 726 | 2,398 | 1,165 |
Other comprehensive income | ||||
Unrealized appreciation | 459 | 947 | 766 | 1,852 |
Reclassification adjustment for net realized (gains) losses included in net income | (25) | (2) | (17) | 150 |
Unrealized appreciation (Depreciation) after reclassification adjustment | 434 | 945 | 749 | 2,002 |
Change in: | ||||
Cumulative foreign currency translation adjustment | 102 | 81 | 236 | 393 |
Postretirement benefit liability adjustment | (35) | 1 | (55) | 3 |
Other comprehensive income, before income tax | 501 | 1,027 | 930 | 2,398 |
Income tax expense related to OCI items | (131) | (213) | (246) | (482) |
Other comprehensive income | 370 | 814 | 684 | 1,916 |
Comprehensive income | $ 1,675 | $ 1,540 | $ 3,082 | $ 3,081 |
Earnings per share | ||||
Basic earnings per share | $ 2.79 | $ 1.55 | $ 5.12 | $ 2.55 |
Diluted earnings per share | $ 2.77 | $ 1.54 | $ 5.08 | $ 2.53 |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Total net realized gains (losses) reclassified from AOCI | $ 25 | $ 2 | $ 17 | $ (150) |
Income tax expense on reclassified unrealized gains and loses | $ 9 | $ 6 | $ 3 | $ 5 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Common Stock [Member]The Chubb Corporation [Member] | Common shares in treasury [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]The Chubb Corporation [Member] | Retained Earnings [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | Cumulative Foreign Currency Translation Adjustment [Member] | Postretirement Benefit Liability Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance - beginning of period at Dec. 31, 2015 | $ 7,833 | $ (1,922) | $ 4,481 | $ 19,478 | $ 874 | $ (1,539) | $ (70) | ||||
Shares Issued for Chubb Corp Acquisition | $ 3,288 | $ 11,916 | |||||||||
Common Shares repurchased | 0 | ||||||||||
Net shares redeemed under employee share-based compensation plans | 345 | (358) | 323 | ||||||||
Exercise of stock options | (37) | ||||||||||
Share-based compensation expense and other | 170 | ||||||||||
Funding of dividends declared to Retained earnings | (637) | ||||||||||
Net income | $ 1,165 | 1,165 | |||||||||
Funding of dividends declared from Additional paid-in capital | 637 | ||||||||||
Dividends declared on Common Shares | (637) | ||||||||||
Change in period, before reclassification from AOCI, net of income tax expense of $(259) and $(477) | 1,375 | ||||||||||
Amounts reclassified from AOCI, net of income tax benefit of $3 and $5 | 155 | ||||||||||
Change in period, net of income tax expense of $(256) and $(472) | 1,530 | ||||||||||
Change in period, net of income tax expense of $(7) and $(11) | 382 | ||||||||||
Change in period, net of income tax benefit of $17 and $1 | 4 | ||||||||||
Balance - end of period at Jun. 30, 2016 | 47,226 | 11,121 | (1,577) | 15,858 | 20,643 | 2,404 | (1,157) | (66) | $ 1,181 | ||
Balance - beginning of period at Dec. 31, 2016 | 48,275 | 11,121 | (1,480) | 15,335 | 23,613 | 1,058 | (1,663) | 291 | |||
Shares Issued for Chubb Corp Acquisition | $ 0 | 0 | |||||||||
Common Shares repurchased | (475) | ||||||||||
Net shares redeemed under employee share-based compensation plans | 280 | (275) | $ 0 | ||||||||
Exercise of stock options | (38) | ||||||||||
Share-based compensation expense and other | 156 | ||||||||||
Funding of dividends declared to Retained earnings | (656) | ||||||||||
Net income | 2,398 | 2,398 | |||||||||
Funding of dividends declared from Additional paid-in capital | 656 | ||||||||||
Dividends declared on Common Shares | (656) | ||||||||||
Change in period, before reclassification from AOCI, net of income tax expense of $(259) and $(477) | 507 | ||||||||||
Amounts reclassified from AOCI, net of income tax benefit of $3 and $5 | (14) | ||||||||||
Change in period, net of income tax expense of $(256) and $(472) | 493 | ||||||||||
Change in period, net of income tax expense of $(7) and $(11) | 229 | ||||||||||
Change in period, net of income tax benefit of $17 and $1 | (38) | ||||||||||
Balance - end of period at Jun. 30, 2017 | $ 50,349 | $ 11,121 | $ (1,675) | $ 14,522 | $ 26,011 | $ 1,551 | $ (1,434) | $ 253 | $ 370 |
Consolidated Statements Of Sha7
Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Consolidated Statements Of Shareholders Equity [Abstract] | ||
Change in year, before reclassification from AOCI, net of income tax benefit(expense) | $ (259) | $ (477) |
Income tax benefit (expense) from reclassification of unrealized gains | 3 | 5 |
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit | (256) | (472) |
Cumulative translation adjustment, Change in period, income tax(expense) benefit | (7) | (11) |
Net income | 2,398 | 1,165 |
Pension liability adjustment, Change in period, income tax (expense) benefit | $ 17 | $ 1 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | |||
Cash flows from operating activities | ||||
Net income | $ 2,398 | $ 1,165 | ||
Adjustments to reconcile net income to net cash flows from operating activities | ||||
Net realized (gains) losses | (94) | 610 | ||
Amortization of premiums/discounts on fixed maturities | 353 | 376 | ||
Amortization of UPR related to the Chubb Corp acquisition | 0 | 1,095 | ||
Deferred income taxes | (112) | 48 | ||
Unpaid losses and loss expenses | (411) | 330 | ||
Unearned premiums | 386 | (382) | ||
Future policy benefits | 134 | 106 | ||
Insurance and reinsurance balances payable | 278 | 193 | ||
Accounts payable, accrued expenses, and other liabilities | (603) | 18 | ||
Income taxes payable | (103) | 67 | ||
Insurance and reinsurance balances receivable | (575) | (238) | ||
Reinsurance recoverable on losses and loss expenses | 312 | (17) | ||
Reinsurance recoverable on policy benefits | (15) | (11) | ||
Deferred policy acquisition costs | (179) | (1,042) | ||
Prepaid reinsurance premiums | (139) | 12 | ||
Other | 10 | (177) | ||
Net cash flows from operating activities | 1,640 | 2,153 | ||
Cash flows from investing activities | ||||
Purchases of fixed maturities available for sale | (12,260) | (17,077) | ||
Purchases of fixed maturities held to maturity | (212) | (121) | ||
Purchases of equity securities | (82) | (78) | ||
Sales of fixed maturities available for sale | 6,873 | 11,868 | ||
Sales of equity securities | 104 | 932 | ||
Maturities and redemptions of fixed maturities available for sale | 5,169 | 3,910 | ||
Maturities and redemptions of fixed maturities held to maturity | 408 | 443 | ||
Net change in short-term investments | 354 | 11,711 | ||
Net derivative instruments settlements | (129) | (93) | ||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 0 | (14,248) | ||
Other | (121) | 81 | ||
Net cash flows from (used for) investing activities | 104 | (2,672) | ||
Cash flows from financing activities | ||||
Dividends paid on Common Shares | (646) | (530) | ||
Common Shares repurchased | (475) | 0 | ||
Repayment of long-term debt | (500) | 0 | ||
Proceeds from issuance of repurchase agreements | 1,343 | 904 | ||
Repayment of repurchase agreements | (1,338) | (902) | ||
Proceeds from share-based compensation plans | 89 | 92 | ||
Policyholder contract deposits | 209 | 274 | ||
Policyholder contract withdrawals | (125) | (103) | ||
Other | 0 | (4) | ||
Net cash flows used for financing activities | (1,443) | (269) | ||
Effect of foreign currency rate changes on cash and cash equivalents | 11 | 24 | ||
Net increase (decrease) in cash | 312 | (764) | ||
Cash – beginning of period | 985 | [1],[2] | 1,775 | [3] |
Cash – end of period | 1,297 | [2],[4] | 1,011 | [3] |
Supplemental cash flow information | ||||
Taxes paid | 510 | 259 | ||
Interest paid | $ 327 | $ 319 | ||
[1] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[2] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[3] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[4] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017, 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 | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Cash Acquired from Acquisition | $ 0 | $ 71 |
General
General | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General a) Basis of presentation Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Chubb operates through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 10 for additional information. The interim unaudited consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, 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 2016 Form 10-K. b) Goodwill During the six months ended June 30, 2017, Goodwill increased $ 102 million , reflecting the impact of foreign exchange. c) Debt In February 2017, Chubb INA Holdings Inc.’s $ 500 million of 5.7 percent senior notes matured and were fully paid. In 2017, we reclassified $300 million of the 5.8 percent senior notes (due to mature in March 2018), and $600 million of the 5.75 percent senior notes (due to mature in May 2018) from Long-term debt to Short-term debt in the Consolidated balance sheets. Effective April 15, 2017, the interest rate on our $ 1.0 billion of unsecured junior subordinated capital securities converted to a floating rate, equal to the three-month LIBOR plus 2.25 percentage points. Previously, these capital securities carried interest at a rate of 6.375 percent. The current interest rate, at the time of this filing, on these securities is 3.55 percent. The scheduled maturity date for these securities is April 15, 2037. d) Accounting guidance adopted in 2017 Stock Compensation Effective January 2017, we prospectively adopted new guidance on stock compensation which requires recognition of the excess tax benefits or deficiencies of share-based compensation awards to employees through net income rather than through additional paid in capital. The calculation of the excess tax benefits or deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the Consolidated statements of operations. For the three and six months ended June 30, 2017, the excess tax benefit recorded to Income tax expense in the Consolidated statement of operations was $ 5 million and $30 million , respectively. Additionally, the guidance allowed for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We elected to retain our current accounting for compensation expense using a forfeiture estimation process. e) Accounting guidance not yet adopted Goodwill Impairment In January 2017, the FASB issued updated guidance on goodwill impairment testing that eliminates Step 2 of the goodwill impairment test requiring entities to calculate the implied fair value of goodwill through a hypothetical purchase price allocation. Under the updated guidance, impairment will now be recognized as the amount by which a reporting unit’s carrying value exceeds its fair value. The standard will be effective for us in the first quarter of 2020 on a prospective basis with early adoption permitted. We do not expect the adoption of this guidance to have a material effect on our financial condition and results of operations. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued guidance on the amortization period for purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. Under current guidance, premiums generally are amortized over the contracted life of the security. This guidance is effective for us in the first quarter of 2019 on a modified retrospective basis through a cumulative effect adjustment to beginning retained earnings. Early adoption is permitted. Securities held at a discount do not require an accounting change. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations. Refer to the 2016 Form 10-K for information on other accounting guidance not yet adopted. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisition The Chubb Corporation (Chubb Corp) On January 14, 2016, we completed the acquisition of Chubb Corp, a leading provider of middle-market commercial, specialty, surety, and personal insurance for $29.5 billion , comprising $14.3 billion in cash and $15.2 billion in newly-issued stock. In addition, we assumed outstanding equity awards to employees and directors with an attributed value of $323 million . The total consideration, including the assumption of equity awards, was $29.8 billion . We recognized goodwill of $ 10.5 billion , attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes. Refer to the 2016 Form 10-K for additional information on this acquisition. The consolidated financial statements include the results of Chubb Corp from the acquisition date. The following table summarizes the results of the acquired Chubb Corp operations within our 2016 Consolidated statements of operations for the periods presented: (in millions of U.S. dollars) Three Months Ended June 30, 2016 January 14, 2016 to June 30, 2016 Total revenues $ 2,745 $ 5,232 Net income $ 326 $ 581 The following table provides supplemental unaudited pro forma consolidated information for the three and six months ended June 30, 2016 , as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction. Three Months Ended Six Months Ended (in millions of U.S. dollars, except per share data) June 30, 2016 June 30, 2016 Total revenues $ 7,915 $ 15,237 Net income $ 712 $ 1,246 Earnings per share Basic earnings per share $ 1.52 $ 2.67 Diluted earnings per share $ 1.51 $ 2.65 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments a) Fixed maturities June 30, 2017 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 $ 3,122 $ 40 $ (26 ) $ 3,136 $ — Foreign 21,139 653 (82 ) 21,710 (2 ) Corporate securities 24,744 714 (94 ) 25,364 (7 ) Mortgage-backed securities 14,469 148 (144 ) 14,473 (1 ) States, municipalities, and political subdivisions 16,889 138 (65 ) 16,962 — $ 80,363 $ 1,693 $ (411 ) $ 81,645 $ (10 ) Held to maturity U.S. Treasury and agency $ 602 $ 13 $ (2 ) $ 613 $ — Foreign 613 29 — 642 — Corporate securities 2,645 62 (7 ) 2,700 — Mortgage-backed securities 1,268 37 (1 ) 1,304 — States, municipalities, and political subdivisions 5,243 66 (8 ) 5,301 — $ 10,371 $ 207 $ (18 ) $ 10,560 $ — December 31, 2016 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 $ 2,883 $ 32 $ (45 ) $ 2,870 $ — Foreign 20,929 636 (125 ) 21,440 (5 ) Corporate securities 23,736 580 (167 ) 24,149 (8 ) Mortgage-backed securities 14,066 135 (194 ) 14,007 (1 ) States, municipalities, and political subdivisions 17,922 72 (345 ) 17,649 — $ 79,536 $ 1,455 $ (876 ) $ 80,115 $ (14 ) Held to maturity U.S. Treasury and agency $ 655 $ 9 $ (3 ) $ 661 $ — Foreign 640 28 (1 ) 667 — Corporate securities 2,771 50 (26 ) 2,795 — Mortgage-backed securities 1,393 35 — 1,428 — States, municipalities, and political subdivisions 5,185 26 (92 ) 5,119 — $ 10,644 $ 148 $ (122 ) $ 10,670 $ — As discussed in Note 3 c ), 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 Net unrealized appreciation on investments in the Consolidated statements of shareholders’ equity. For both the three and six months ended June 30, 2017 , $ 3 million of net unrealized depreciation related to such securities is included in OCI. For the three and six months ended June 30, 2016 , $21 million and $ 44 million , respectively, of net unrealized appreciation related to such securities is included in OCI. At June 30, 2017 and December 31, 2016 , AOCI included cumulative net unrealized appreciation of $7 million and $10 million , respectively, related to securities remaining in the investment portfolio for which a non-credit OTTI was recognized. Mortgage-backed securities (MBS) issued by U.S. government agencies are combined with all other to be announced mortgage-backed securities (TBAs) held (refer to Note 6 c) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 81 percent of the total mortgage-backed securities at both June 30, 2017 and December 31, 2016 , 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: June 30 December 31 2017 2016 (in millions of U.S. dollars) Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Due in 1 year or less $ 3,799 $ 3,823 $ 3,892 $ 3,913 Due after 1 year through 5 years 23,748 24,207 24,027 24,429 Due after 5 years through 10 years 28,040 28,498 27,262 27,379 Due after 10 years 10,307 10,644 10,289 10,387 65,894 67,172 65,470 66,108 Mortgage-backed securities 14,469 14,473 14,066 14,007 $ 80,363 $ 81,645 $ 79,536 $ 80,115 Held to maturity Due in 1 year or less $ 807 $ 814 $ 430 $ 435 Due after 1 year through 5 years 2,353 2,396 2,646 2,691 Due after 5 years through 10 years 3,001 3,045 2,969 2,944 Due after 10 years 2,942 3,001 3,206 3,172 9,103 9,256 9,251 9,242 Mortgage-backed securities 1,268 1,304 1,393 1,428 $ 10,371 $ 10,560 $ 10,644 $ 10,670 Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. b) Equity securities June 30 December 31 (in millions of U.S. dollars) 2017 2016 Cost $ 697 $ 706 Gross unrealized appreciation 164 129 Gross unrealized depreciation (5 ) (21 ) Fair value $ 856 $ 814 c ) Net realized gains (losses) In accordance with guidance related to the recognition and presentation of OTTI, when an impairment related to a fixed maturity has occurred, OTTI is required to be recorded in Net income if management has the intent to sell the security or it is more likely than not that we will be required to sell the security before the recovery of its amortized cost. Further, in cases where we do not intend to sell the security and it is more likely than not that we will not be required to sell the security, we 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 • our 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 sheets, we employ analysis similar to fixed maturities, when applicable. Evaluation of potential credit losses related to fixed maturities 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. Corporate securities 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. Chubb 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, Chubb 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 six months ended June 30, 2017 , credit losses recognized in Net income for corporate securities were $1 million and $ 2 million , respectively. For the three and six months ended June 30, 2016 , credit losses recognized in Net income for corporate securities were $7 million and $ 24 million , respectively. Mortgage-backed securities 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 six months ended June 30, 2017 and 2016, 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 Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2017 2016 2017 2016 Fixed maturities: OTTI on fixed maturities, gross $ (5 ) $ (11 ) $ (11 ) $ (78 ) OTTI on fixed maturities recognized in OCI (pre-tax) 1 — 1 8 OTTI on fixed maturities, net (4 ) (11 ) (10 ) (70 ) Gross realized gains excluding OTTI 45 37 79 102 Gross realized losses excluding OTTI (18 ) (19 ) (58 ) (215 ) Total fixed maturities 23 7 11 (183 ) Equity securities: OTTI on equity securities (3 ) (5 ) (8 ) (6 ) Gross realized gains excluding OTTI 6 4 15 44 Gross realized losses excluding OTTI (1 ) (4 ) (1 ) (5 ) Total equity securities 2 (5 ) 6 33 OTTI on other investments (1 ) — (9 ) (3 ) Foreign exchange gains (losses) 14 (22 ) (5 ) 17 Investment and embedded derivative instruments (16 ) (47 ) (10 ) (86 ) Fair value adjustments on insurance derivative 118 (131 ) 211 (359 ) S&P put options and futures (38 ) (28 ) (112 ) (43 ) Other derivative instruments (1 ) — 1 (2 ) Other — 10 1 16 Net realized gains (losses) $ 101 $ (216 ) $ 94 $ (610 ) 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 Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2017 2016 2017 2016 Balance of credit losses related to securities still held – beginning of period $ 32 $ 57 $ 35 $ 53 Additions where no OTTI was previously recorded 1 1 1 12 Additions where an OTTI was previously recorded — 6 1 12 Reductions for securities sold during the period (4 ) (13 ) (8 ) (26 ) Balance of credit losses related to securities still held – end of period $ 29 $ 51 $ 29 $ 51 d) Gross unrealized loss At June 30, 2017 , there were 7,924 fixed maturities out of a total of 30,953 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $5 million . There were 67 equity securities out of a total of 320 equity securities in an unrealized loss position. The largest single unrealized loss in the equity securities was $1 million . Fixed maturities in an unrealized loss position at June 30, 2017 , 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 June 30, 2017 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 $ 2,021 $ (28 ) $ — $ — $ 2,021 $ (28 ) Foreign 4,381 (57 ) 599 (25 ) 4,980 (82 ) Corporate securities 4,410 (72 ) 372 (29 ) 4,782 (101 ) Mortgage-backed securities 7,657 (141 ) 118 (4 ) 7,775 (145 ) States, municipalities, and political subdivisions 9,049 (68 ) 182 (5 ) 9,231 (73 ) Total fixed maturities 27,518 (366 ) 1,271 (63 ) 28,789 (429 ) Equity securities 104 (5 ) — — 104 (5 ) Other investments 70 (4 ) — — 70 (4 ) Total $ 27,692 $ (375 ) $ 1,271 $ (63 ) $ 28,963 $ (438 ) 0 – 12 Months Over 12 Months Total December 31, 2016 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 $ 2,216 $ (48 ) $ — $ — $ 2,216 $ (48 ) Foreign 5,918 (99 ) 386 (27 ) 6,304 (126 ) Corporate securities 7,021 (149 ) 641 (44 ) 7,662 (193 ) Mortgage-backed securities 8,638 (189 ) 234 (5 ) 8,872 (194 ) States, municipalities, and political subdivisions 19,448 (435 ) 49 (2 ) 19,497 (437 ) Total fixed maturities 43,241 (920 ) 1,310 (78 ) 44,551 (998 ) Equity securities 199 (21 ) — — 199 (21 ) Other investments 201 (18 ) — — 201 (18 ) Total $ 43,641 $ (959 ) $ 1,310 $ (78 ) $ 44,951 $ (1,037 ) e) Restricted assets Chubb 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. Chubb is also required to restrict assets pledged under repurchase agreements, which represent Chubb'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 June 30, 2017 and December 31, 2016 are investments, primarily fixed maturities, totaling $21.2 billion and $20.1 billion, respectively, and cash of $122 million and $103 million, respectively. The following table presents the components of restricted assets: June 30 December 31 (in millions of U.S. dollars) 2017 2016 Trust funds $ 14,938 $ 13,880 Deposits with U.S. regulatory authorities 2,325 2,203 Deposits with non-U.S. regulatory authorities 2,170 2,191 Assets pledged under repurchase agreements 1,472 1,461 Other pledged assets 371 435 $ 21,276 $ 20,170 |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements a ) Fair value hierarchy Fair value of financial assets and financial liabilities is estimated based on the framework established in the fair value accounting guidance. The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The three levels of the hierarchy are as follows: • Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and • Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants would use in pricing an asset or liability. We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement. Accordingly, transfers between levels within the valuation hierarchy occur when there are significant changes to the inputs, such as increases or decreases in market activity, changes to the availability of current prices, changes to the transparency to underlying inputs, and whether there are significant variances in quoted prices. Transfers in and/or out of any level are assumed to occur at the end of the period. We use pricing services to obtain fair value measurements for the majority of our investment securities. Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate. Based on our understanding of the market inputs used by the pricing services, all applicable investments have been valued in accordance with GAAP. We do not adjust prices obtained from pricing services. The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy. Fixed maturities We use pricing services to estimate fair value measurements for the majority of our fixed maturities. The pricing services use market quotations for fixed maturities that have quoted prices in active markets; such securities are classified within Level 1. For fixed maturities other than U.S. Treasury securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Additional valuation factors that can be taken into account are nominal spreads, dollar basis, and liquidity adjustments. The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements, and sector news. The market inputs used in the pricing evaluation, listed in the approximate order of priority include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each input is dependent on the asset class and the market conditions. Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant. Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market based inputs (i.e., stale pricing), which may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur. The overwhelming majority of fixed maturities are classified within Level 2 because the most significant inputs used in the pricing techniques are observable. For a small number of fixed maturities, we obtain a 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 Chubb 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 Chubb’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 is based on market valuations and is 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 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. 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 Chubb. 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, Chubb 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. The 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. During the three months ended June 30, 2017, we updated aspects of our valuation model relating to interest rates. This resulted in a decrease to the fair value of GLB liabilities generating a realized gain of approximately $ 94 million . During the six months ended June 30, 2017, there were no other material changes to actuarial or behavioral assumptions. For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2016 Form 10-K. Financial instruments measured at fair value on a recurring basis, by valuation hierarchy June 30, 2017 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 2,486 $ 650 $ — $ 3,136 Foreign — 21,625 85 21,710 Corporate securities — 24,617 747 25,364 Mortgage-backed securities — 14,428 45 14,473 States, municipalities, and political subdivisions — 16,962 — 16,962 2,486 78,282 877 81,645 Equity securities 817 — 39 856 Short-term investments 1,421 1,223 7 2,651 Other investments (1) 430 282 243 955 Securities lending collateral — 1,545 — 1,545 Investment derivative instruments 12 — — 12 Other derivative instruments 9 — — 9 Separate account assets 2,147 101 — 2,248 Total assets measured at fair value (1) $ 7,322 $ 81,433 $ 1,166 $ 89,921 Liabilities: Investment derivative instruments $ 35 $ — $ — $ 35 Other derivative instruments — — 2 2 GLB (2) — — 357 357 Total liabilities measured at fair value $ 35 $ — $ 359 $ 394 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 3,711 million and other investments of $ 19 million at June 30, 2017 measured using NAV as a practical expedient. (2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. December 31, 2016 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 2,175 $ 695 $ — $ 2,870 Foreign — 21,366 74 21,440 Corporate securities — 23,468 681 24,149 Mortgage-backed securities — 13,962 45 14,007 States, municipalities, and political subdivisions — 17,649 — 17,649 2,175 77,140 800 80,115 Equity securities 773 — 41 814 Short-term investments 1,757 1,220 25 3,002 Other investments (1) 384 259 225 868 Securities lending collateral — 1,092 — 1,092 Investment derivative instruments 31 — — 31 Other derivative instruments 3 — — 3 Separate account assets 1,784 95 — 1,879 Total assets measured at fair value (1) $ 6,907 $ 79,806 $ 1,091 $ 87,804 Liabilities: Investment derivative instruments $ 54 $ — $ — $ 54 Other derivative instruments — — 13 13 GLB (2) — — 559 559 Total liabilities measured at fair value $ 54 $ — $ 572 $ 626 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,626 million and other investments of $25 million at December 31, 2016 measured using NAV as a practical expedient. (2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. There were no transfers of financial instruments between Level 1 and Level 2 for the three and six months ended June 30, 2017 and 2016. 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: June 30 December 31 Expected Liquidation Period of Underlying Assets 2017 2016 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 5 to 9 Years $ 576 $ 354 $ 548 $ 428 Real Assets 3 to 7 Years 622 181 536 230 Distressed 5 to 9 Years 350 175 485 179 Private Credit 3 to 7 Years 238 337 236 259 Traditional 3 to 9 Years 1,646 805 1,550 930 Vintage 1 to 2 Years 19 — 21 14 Investment funds Not Applicable 260 — 251 — $ 3,711 $ 1,852 $ 3,627 $ 2,040 Included in all categories in the above table, except for Investment funds, are investments for which Chubb 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, Chubb 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 Chubb’s investment funds employ various investment strategies such as long/short equity and arbitrage/distressed. Included in this category are investments for which Chubb 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 Chubb 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 Chubb 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, Chubb 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 Chubb’s investment within several months of the notification. Notice periods for redemption of the investment funds range between 5 and 120 days. Chubb 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 June 30, 2017 December 31, 2016 GLB (1) $ 357 $ 559 Actuarial model Lapse rate 3% – 34% Annuitization rate 0% – 78% (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 Short-term investments Other investments Other derivative instruments GLB (1) June 30, 2017 Foreign Corporate securities MBS (in millions of U.S. dollars) Balance – beginning of period $ 80 $ 737 $ 45 $ 41 $ 21 $ 233 $ 11 $ 466 Transfers into Level 3 — 28 — — — — — 9 Transfers out of Level 3 — (13 ) — — — — (9 ) — Change in Net Unrealized Gains (Losses) included in OCI 3 — — 1 — (1 ) — — Net Realized Gains/Losses 2 — — — — — — (118 ) Purchases 19 65 — 6 7 16 — — Sales (19 ) (28 ) — (9 ) — — — — Settlements — (42 ) — — (21 ) (5 ) — — Balance – end of period $ 85 $ 747 $ 45 $ 39 $ 7 $ 243 $ 2 $ 357 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ — $ (118 ) (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million , respectively. Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) June 30, 2016 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 62 $ 261 $ 48 $ 29 $ — $ 211 $ 10 $ 839 Transfers into Level 3 3 2 — — — — — — Change in Net Unrealized Gains (Losses) included in OCI 3 9 — (1 ) — — — — Net Realized Gains/Losses (1 ) (2 ) — 1 — — — 132 Purchases 27 31 1 10 50 8 — — Sales (7 ) (16 ) — (2 ) — — — — Settlements — (4 ) — — — (3 ) — — Balance – end of period $ 87 $ 281 $ 49 $ 37 $ 50 $ 216 $ 10 $ 971 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (1 ) $ — $ — $ — $ — $ — $ — $ 132 (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016 , and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months Ended Available-for-Sale Debt Securities Equity securities Short-term investments Other investments Other derivative instruments GLB (1) June 30, 2017 Foreign Corporate securities MBS (in millions of U.S. dollars) Balance – beginning of period $ 74 $ 681 $ 45 $ 41 $ 25 $ 225 $ 13 $ 559 Transfers into Level 3 — 57 — — — — — 9 Transfers out of Level 3 — (67 ) — — — — (9 ) — Change in Net Unrealized Gains (Losses) included in OCI 2 (8 ) — 1 — 3 — — Net Realized Gains/Losses 1 (1 ) — — — — (2 ) (211 ) Purchases 33 221 1 6 14 24 — — Sales (22 ) (55 ) (1 ) (9 ) — — — — Settlements (3 ) (81 ) — — (32 ) (9 ) — — Balance – end of period $ 85 $ 747 $ 45 $ 39 $ 7 $ 243 $ 2 $ 357 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ (2 ) $ (211 ) (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million , respectively. Assets Liabilities Six Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) June 30, 2016 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 57 $ 174 $ 53 $ 16 $ — $ 212 $ 6 $ 609 Transfers into Level 3 9 18 — — — — — — Transfers out of Level 3 (2 ) — — — — — — — Change in Net Unrealized Gains (Losses) included in OCI 9 11 — (1 ) — — — — Net Realized Gains/Losses (6 ) (8 ) — 1 — — 2 362 Purchases (2) 32 124 1 23 50 14 2 — Sales (8 ) (30 ) (5 ) (2 ) — — — — Settlements (4 ) (8 ) — — — (10 ) — — Balance – end of period $ 87 $ 281 $ 49 $ 37 $ 50 $ 216 $ 10 $ 971 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (5 ) $ (7 ) $ — $ — $ — $ — $ 2 $ 362 (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016 , and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million , respectively. (2) Includes acquired invested assets as a result of the Chubb Corp acquisition. b) Financial instruments disclosed, but not measured, at fair value Chubb 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 Chubb’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, repurchase agreements, and trust preferred securities Where practical, fair values for short-term debt, long-term debt, repurchase agreements, and trust preferred securities are estimated using discounted cash flow calculations based principally on observable inputs including incremental borrowing rates, which reflect Chubb’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: June 30, 2017 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 $ 528 $ 85 $ — $ 613 $ 602 Foreign — 642 — 642 613 Corporate securities — 2,688 12 2,700 2,645 Mortgage-backed securities — 1,304 — 1,304 1,268 States, municipalities, and political subdivisions — 5,301 — 5,301 5,243 Total assets $ 528 $ 10,020 $ 12 $ 10,560 $ 10,371 Liabilities: Repurchase agreements $ — $ 1,408 $ — $ 1,408 $ 1,408 Short-term debt — 931 — 931 922 Long-term debt — 12,366 — 12,366 11,667 Trust preferred securities — 462 — 462 308 Total liabilities $ — $ 15,167 $ — $ 15,167 $ 14,305 December 31, 2016 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 $ 555 $ 106 $ — $ 661 $ 655 Foreign — 667 — 667 640 Corporate securities — 2,782 13 2,795 2,771 Mortgage-backed securities — 1,428 — 1,428 1,393 States, municipalities, and political subdivisions — 5,119 — 5,119 5,185 Total assets $ 555 $ 10,102 $ 13 $ 10,670 $ 10,644 Liabilities: Repurchase agreements $ — $ 1,403 $ — $ 1,403 $ 1,403 Short-term debt — 503 — 503 500 Long-term debt — 12,998 — 12,998 12,610 Trust preferred securities — 456 — 456 308 Total liabilities $ — $ 15,360 $ — $ 15,360 $ 14,821 |
Unpaid losses and loss expenses
Unpaid losses and loss expenses Unpaid losses and loss expenses | 6 Months Ended |
Jun. 30, 2017 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 5. Unpaid losses and loss expenses The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses: Six Months Ended June 30 (in millions of U.S. dollars) 2017 2016 Gross unpaid losses and loss expenses – beginning of period $ 60,540 $ 37,303 Reinsurance recoverable on unpaid losses (1) (12,708 ) (10,741 ) Net unpaid losses and loss expenses – beginning of period 47,832 26,562 Acquisition of subsidiaries — 21,398 Total 47,832 47,960 Net losses and loss expenses incurred in respect of losses occurring in: Current year 8,396 8,529 Prior years (2) (461 ) (601 ) Total 7,935 7,928 Net losses and loss expenses paid in respect of losses occurring in: Current year 2,271 1,964 Prior years 5,758 5,541 Total 8,029 7,505 Foreign currency revaluation and other 171 40 Net unpaid losses and loss expenses – end of period 47,909 48,423 Reinsurance recoverable on unpaid losses (1) 12,485 12,396 Gross unpaid losses and loss expenses – end of period $ 60,394 $ 60,819 (1) Net of provision for uncollectible reinsurance. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums of $60 million and $53 million for the six months ended June 30, 2017 and 2016, respectively. Prior Period Development Long-tail lines include lines such as workers' compensation, general liability, and professional liability; while short-tail lines include lines such as most property lines, energy, personal accident, aviation, marine (including associated liability-related exposures) and agriculture. Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate. North America Commercial P&C Insurance 2017 For the three months ended June 30, 2017 , net favorable PPD was $131 million , which was the net result of several underlying favorable and adverse movements, driven by the following principal changes: • Net favorable development of $101 million in long-tail business, primarily from: • Net favorable development of $83 million in our workers’ compensation lines with favorable development of $57 million in the 2016 accident year related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. Favorable development of $40 million in accident years 2015 and prior was principally due to lower than expected loss experience and revision to development patterns used in our loss projection methods for select portfolios; and • Net favorable development of $37 million in our commercial-multi peril (CMP) and monoline general liability lines, driven by favorable paid and reported loss activity relative to prior expectations, principally in accident years 2008 through 2013. • Net favorable development of $30 million in short-tail business, primarily from favorable development of $29 million in our commercial property portfolios, driven by lower than expected loss emergence in the 2014 and 2016 accident years. For the six months ended June 30, 2017 , net favorable PPD was $310 million , which was the net result of several underlying favorable and adverse movements, driven by the following principal changes: • Net favorable development of $200 million in long-tail business, primarily from: • Net favorable development of $84 million in our workers’ compensation lines due to the same factors experienced for the three months ended June 30, 2017, as described above; • Net favorable development of $74 million in our commercial excess and umbrella portfolios, primarily in accident years 2010 and prior, driven by lower than expected reported loss activity, and an increase in weighting towards experience-based methods; • Net favorable development of $37 million in our commercial-multi peril (CMP) and monoline general liability lines, due to the same factors experienced for the three months ended June 30, 2017, as described above; and • Net favorable development of $25 million in our professional Errors and Omissions (E&O) portfolios, primarily in the 2012 and 2013 accident years, arising from lower than expected reported loss activity, partially offset by claim-specific adverse development. • Net favorable development of $110 million in short-tail business, primarily from: • Net favorable development of $45 million in our credit-related business, primarily due to lower than expected claims severity in the 2015 accident year; • Favorable development of $33 million in our property lines, primarily in our commercial property portfolios, due to the same factors experienced for the three months ended June 30, 2017 as described above; and • Net favorable development of $24 million in our accident & health (A&H) business, primarily due to lower than expected loss emergence in the 2015 and 2016 accident years. 2016 For the three months ended June 30, 2016, net favorable PPD was $168 million , which was the net result of several underlying favorable and adverse movements, driven by the following principal changes: • Net favorable development of $167 million in long-tail business, primarily from: • Net favorable development of $114 million in our workers’ compensation lines with favorable development of $40 million in the 2015 accident year related to our annual assessment of multi-claimant events including industrial accidents. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. Favorable development of $59 million driven by accident years 2011 and prior was principally due to lower than expected loss experience and revision to the basis for selecting development patterns used in our loss projection methods. Adverse development in accident years 2012 through 2015 was due to a small number of large claims in our excess business; • Net favorable development of $50 million in our commercial-multi peril (CMP) and monoline general liability lines, driven by favorable paid and reported loss activity relative to prior expectations, principally in accident years 2007 through 2014; and • Net favorable development of $20 million in our professional E&O portfolios, in the 2003 accident year due to a favorable development on a specific claim. For the six months ended June 30, 2016, net favorable PPD was $346 million , which was the net result of several underlying favorable and adverse movements, driven by the following principal changes: • Net favorable development of $309 million in long-tail business, primarily from: • Favorable development of $145 million in our commercial excess and umbrella portfolios, driven by continued lower than expected reported loss activity in accident years 2010 and prior; in general, the severity of claims has been less than previously expected; • Net favorable development of $114 million on our workers’ compensation lines due to the same factors experienced for the three months ended June 30, 2016, as described above; • Favorable development of $63 million in our professional E&O portfolios, primarily impacting the 2012 and prior accident years and arising from both lower than expected reported loss activity and re-assessments of remaining claim-specific liabilities for the older accident years; and • Net favorable development of $24 million in our primary casualty and general liability portfolios was driven by $50 million favorable development in our CMP and monoline general liability lines as described above, and $26 million adverse development due to higher than expected reported loss activity, mainly associated with construction defect coverages. • Net favorable development of $37 million in short-tail business, primarily from favorable development of $24 million in our surety business, due to favorable claim emergence in the 2013 accident year. North America Personal P&C Insurance 2017 For the three and six months ended June 30, 2017 , net adverse PPD was $37 million and $34 million , respectively, driven primarily by higher than expected case incurred development in our automobile, recreational marine and homeowners lines, mainly in accident years 2012 through 2016. 2016 For the three and six months ended June 30, 2016, net favorable PPD was $15 million and $18 million , respectively, which were the net result of several underlying favorable and adverse movements, none of which were significant individually or in the aggregate. North America Agricultural Insurance There was no PPD in both the three months ended June 30, 2017 and 2016. For the six months ended June 30, 2017 and 2016, net favorable PPD was $79 million and $41 million , respectively. Actual claim development relates to our Multiple Peril Crop Insurance (MPCI) business and is favorable due to better than expected crop yield results in certain states at the prior year-end period (i.e., 2017 results based on crop yield results at year-end 2016). Overseas General Insurance 2017 For the three months ended June 30, 2017 , net favorable PPD was $88 million , which was the net result of several underlying favorable and adverse movements, driven by the following principal changes: • Net favorable development of $88 million in short-tail business, primarily from: • Favorable development of $37 million in property and marine (excluding technical lines), primarily in accident years 2013 through 2015,driven mainly by favorable U.K. and Continental Europe loss emergence, including favorable claim-specific loss settlements; • Favorable development of $26 million in technical and energy lines, primarily from favorable loss emergence in accident years 2014 through 2016 primarily in offshore where experience has been better than expected; and • Favorable development of $19 million in A&H lines, primarily from favorable loss emergence in Asia Pacific and Continental Europe in accident years 2014 through 2016. For the six months ended June 30, 2017 , net favorable PPD was $76 million , which was the net result of several underlying favorable and adverse movements, driven by the following principal changes: • Net favorable development of $108 million in short-tail business, due primarily to the same factors experienced for the three months ended June 30, 2017 as described above; and • Net adverse development of $32 million in long-tail business, primarily in our casualty lines, driven by a change in the discount rate in the U.K. (Ogden rate) impacting the 2016 and prior accident years. 2016 For the three months ended June 30, 2016, net favorable PPD was $85 million , which was the net result of several underlying favorable and adverse movements, driven by the following principal changes: • Net favorable development of $84 million in short-tail business, primarily from: • Favorable development of $38 million in property (excluding technical lines), primarily from favorable Continental Europe loss emergence in accident years 2013 through 2015; and • Favorable development of $32 million in energy lines, primarily from a claims review of catastrophe impacts on underwriting years 2004 through 2008, as well as favorable loss emergence in accident years 2010 through 2013, primarily in offshore where experience has been better than expected. For the six months ended June 30, 2016, net favorable PPD was $115 million , due primarily to the same factors experienced for the three months ended June 30, 2016 as described above. Global Reinsurance 2017 For the three months ended June 30, 2017 , net favorable PPD was $31 million , which was the net result of several underlying favorable and adverse movements, driven by the following principal change: • Net favorable development of $36 million in our casualty and professional liability lines, primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence. For the six months ended June 30, 2017 , net favorable PPD was $23 million , which was the net result of several underlying favorable and adverse movements driven by the following principal change: • Net favorable development of $27 million , comprising $36 million in our casualty and professional liability lines as described above, as well as adverse development of $9 million in our motor and excess liability lines, driven by a change in the discount rate in the U.K. (Ogden rate) primarily impacting the 2015 and prior treaty years. 2016 For the three and six months ended June 30, 2016, net favorable PPD was $47 million and $50 million , respectively, which were the net result of several underlying favorable and adverse movements, driven by the following principal change: • Favorable development of $41 million in casualty lines primarily impacting treaty years 2011 and prior, principally resulting from lower than expected loss emergence. Corporate 2017 For the three and six months ended June 30, 2017 , adverse development was $43 million and $53 million , respectively, due principally to development of $35 million on run-off non A&E casualty exposures due to higher than expected loss activity, and unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in the respective periods of $8 million and $18 million , respectively. 2016 For the three and six months ended June 30, 2016, net adverse development was $14 million and $22 million , respectively, due principally to unallocated loss adjustment expenses due to run-off operating expenses paid and incurred in the respective periods. |
Commitments, contingencies, and
Commitments, contingencies, and guarantees | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, contingencies, and guarantees | Commitments, contingencies, and guarantees a) Derivative instruments Foreign currency management As a global company, Chubb 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-U.S. dollar capital positions; however, we do consider hedging for planned cross border transactions. Derivative instruments employed Chubb 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. Chubb 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, Chubb from time to time purchases to be announced mortgage-backed securities (TBAs) as part of its investing activities. Under reinsurance programs covering GLBs, Chubb 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. Chubb also generally maintains positions in exchange-traded equity futures contracts on equity market indices to limit equity exposure in the GMDB and GLB blocks of business. 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: June 30, 2017 December 31, 2016 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) $ 8 $ (30 ) $ 2,201 $ 25 $ (50 ) $ 2,220 Cross-currency swaps OA / (AP) — — 45 — — 95 Options/Futures contracts on notes and bonds OA / (AP) 4 (5 ) 1,376 6 (4 ) 2,344 Convertible securities (1) FM AFS / ES 2 — 7 2 — 7 $ 14 $ (35 ) $ 3,629 $ 33 $ (54 ) $ 4,666 Other derivative instruments Futures contracts on equities (2) OA / (AP) $ 5 $ — $ 1,428 $ 1 $ — $ 1,316 Other OA / (AP) 4 (2 ) 249 2 (13 ) 214 $ 9 $ (2 ) $ 1,677 $ 3 $ (13 ) $ 1,530 GLB (3) (AP) / (FPB) $ — $ (684 ) $ 1,180 $ — $ (853 ) $ 1,264 (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. 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 June 30, 2017 and December 31, 2016, derivative liabilities of $8 million and $10 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 Chubb 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. The securities lending collateral can only be drawn down by Chubb 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. 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, Chubb will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that Chubb 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, Chubb 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 the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements: Remaining contractual maturity June 30 December 31 2017 2016 (in millions of U.S. dollars) Overnight and Continuous Collateral held under securities lending agreements: Cash $ 1,062 $ 423 U.S. Treasury and agency 82 54 Foreign 263 578 Corporate securities 1 37 Mortgage-backed securities 60 — Equity securities 77 — $ 1,545 $ 1,092 Gross amount of recognized liability for securities lending payable $ 1,546 $ 1,093 Difference (1) $ (1 ) $ (1 ) (1) The carrying value of the securities lending collateral held is $ 1 million lower than the securities lending payable at both June 30, 2017 and December 31, 2016, due to accrued interest recorded in the securities lending payable. At June 30, 2017 and December 31, 2016, our repurchase agreement obligations of $1,408 million and $1,403 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 Repurchase agreements in the Consolidated balance sheets. The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements: Remaining contractual maturity June 30, 2017 December 31, 2016 30-90 Days Greater than 90 Days Total Up to 30 Days Greater than 90 Days Total (in millions of U.S. dollars) Collateral pledged under repurchase agreements: Cash $ — $ — $ — $ — $ 1 $ 1 U.S. Treasury and agency 6 240 246 230 10 240 Mortgage-backed securities 495 731 1,226 339 881 1,220 $ 501 $ 971 $ 1,472 $ 569 $ 892 $ 1,461 Gross amount of recognized liabilities for repurchase agreements $ 1,408 $ 1,403 Difference (1) $ 64 $ 58 (1) Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations: Three Months Ended Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2017 2016 2017 2016 Investment and embedded derivative instruments Foreign currency forward contracts $ (7 ) $ (10 ) $ 7 $ (20 ) All other futures contracts and options (9 ) (37 ) (17 ) (71 ) Convertible securities (1) — — — 5 Total investment and embedded derivative instruments $ (16 ) $ (47 ) $ (10 ) $ (86 ) GLB and other derivative instruments GLB (2) $ 118 $ (131 ) $ 211 $ (359 ) Futures contracts on equities (3) (38 ) (28 ) (112 ) (43 ) Other (1 ) — 1 (2 ) Total GLB and other derivative instruments $ 79 $ (159 ) $ 100 $ (404 ) $ 63 $ (206 ) $ 90 $ (490 ) (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. Chubb 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. 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, Chubb may enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices. (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. Chubb 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. Chubb 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, Chubb 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 June 30, 2017 , we have commitments to purchase fixed income securities of $675 million over the next several years. e) Other investments At June 30, 2017 , included in Other investments in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.5 billion. In connection with these investments, we have commitments that may require funding of up to $1.9 billion over the next several years. f) Taxation At June 30, 2017 , $15 million of unrecognized tax benefits remain 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 and the closing of tax statute limitations. With few exceptions, Chubb is no longer subject to state and local or non-U.S. income tax examinations for years before 2009. 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 | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | Shareholders’ equity All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb 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 Chubb in U.S. dollars. At June 30, 2017, our Common Shares had a par value of CHF 24.15 per share. At our May 2016 and 2015 annual general meetings, our shareholders approved an annual dividend for the following year of up to $ 2.76 per share and $ 2.68 per share, respectively, which were paid in four quarterly installments of $ 0.69 per share and $ 0.67 per share, respectively, at dates determined by the Board of Directors (Board) after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment. At our May 2017 annual general meeting, our shareholders approved an annual dividend for the following year of up to $2.84 per share, expected to be paid in four quarterly installments of $0.71 per share after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment. The Board will determine the record and payment dates at which the annual dividend may be paid until the date of the 2018 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion. The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD): Three Months Ended Six Months Ended June 30 June 30 2017 2016 2017 2016 CHF USD CHF USD CHF USD CHF USD Total dividend distributions per common share 0.69 $ 0.71 0.68 $ 0.69 1.38 $ 1.40 1.34 $ 1.36 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 June 30, 2017 , 14,408,723 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans. Chubb Limited securities repurchase authorization There was no share repurchase program from January 2016 through October 2016. In November 2016, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares through December 31, 2017. Repurchases of Chubb's Common Shares conducted in a series of open market transactions from January 1, 2017 through August 2, 2017 under the Board authorization are as follows: (in millions of U.S. dollars, except share data) Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 July 1, 2017 through August 2, 2017 Number of shares repurchased 2,381,566 3,417,630 501,872 Cost of shares repurchased $ 335 $ 475 $ 72 Repurchase authorization remaining at end of period $ 525 $ 525 $ 453 |
Share-based compensation
Share-based compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | Share-based compensation The Chubb Limited 2016 Long-Term Incentive Plan (the 2016 LTIP) permits grants of incentive and non-qualified stock options; restricted stock and restricted stock units; and performance-based restricted stock awards. The incentive and non-qualified stock options are granted principally at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term and typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 23, 2017 , Chubb granted 2,065,620 stock options with a weighted-average grant date fair value of $22.97 each estimated using the Black-Scholes option pricing model. The service-based restricted stock and restricted stock units are generally granted with a 4-year vesting period, based on a graded vesting schedule. Performance-based restricted stock awards granted prior to January 2017 comprised target awards which have four installments that vest annually based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth compared to a defined group of peer companies, and premium awards, which are earned only if tangible book value per share growth over the cumulative 4-year period after the grant of the associated target awards exceeds a higher threshold compared to our peer group. The terms of performance-based restricted stock awards granted beginning in January 2017 were updated to now include a 3-year cliff vesting provision in place of the 4-year graded vesting period. In addition, these awards now include an additional vesting criteria based on the P&C combined ratio compared to a defined group of peer companies as well as an additional vesting provision for premium awards based on total shareholder return (TSR) compared to a defined group of peer companies. Chubb's restricted stock is granted at market close price on the grant date. On February 23, 2017 , Chubb granted 1,105,118 service-based restricted stock awards, 326,272 service-based restricted stock units, and 202,251 performance-based stock awards to employees and officers with a grant date fair value of $139.01 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting. |
Postretirement benefits Postret
Postretirement benefits Postretirement benefits | 6 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Postretirement benefits The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows: Three Months Ended June 30 Pension Benefits Other Postretirement Benefits U.S. Plans Non-U.S. Plans Total U.S. Plans Non-U.S. Plans Total (in millions of U.S. dollars) 2017 Service cost $ 16 $ 4 $ 20 $ 1 $ 1 $ 2 Interest cost 26 7 33 — — — Expected return on plan assets (48 ) (10 ) (58 ) (1 ) — (1 ) Amortization of net actuarial loss — 1 1 — — — Amortization of prior service cost — — — (23 ) — (23 ) Curtailments — (8 ) (8 ) — — — Net periodic (benefit) cost $ (6 ) $ (6 ) $ (12 ) $ (23 ) $ 1 $ (22 ) 2016 Service cost $ 20 $ 4 $ 24 $ 2 $ 1 $ 3 Interest cost 27 8 35 4 — 4 Expected return on plan assets (42 ) (10 ) (52 ) (2 ) — (2 ) Amortization of net actuarial loss — 1 1 — — — Net periodic cost $ 5 $ 3 $ 8 $ 4 $ 1 $ 5 Six Months Ended June 30 Pension Benefits Other Postretirement Benefits U.S. Plans Non-U.S. Plans Total U.S. Plans Non-U.S. Plans Total (in millions of U.S. dollars) 2017 Service cost $ 32 $ 8 $ 40 $ 1 $ 1 $ 2 Interest cost 52 14 66 1 — 1 Expected return on plan assets (95 ) (20 ) (115 ) (2 ) — (2 ) Amortization of net actuarial loss — 1 1 — — — Amortization of prior service cost — — — (46 ) — (46 ) Curtailments — (8 ) (8 ) — — — Net periodic (benefit) cost $ (11 ) $ (5 ) $ (16 ) $ (46 ) $ 1 $ (45 ) 2016 Service cost $ 37 $ 9 $ 46 $ 4 $ 1 $ 5 Interest cost 54 16 70 9 — 9 Expected return on plan assets (79 ) (20 ) (99 ) (4 ) — (4 ) Amortization of net actuarial loss — 2 2 — — — Net periodic cost $ 12 $ 7 $ 19 $ 9 $ 1 $ 10 |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Corporate primarily includes loss and loss expenses of asbestos and environmental (A&E) run-off liabilities, and the results of our non-insurance companies including Chubb Limited, Chubb Group Management and Holdings Ltd, and Chubb INA Holdings Inc. Our exposure to A&E claims principally arises out of liabilities acquired when we purchased Westchester Specialty in 1998, CIGNA’s P&C business in 1999, and legacy Chubb Corp run-off business in 2016. For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main measures of segment performance. Chubb calculates underwriting income by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate segment income, include net investment income, other (income) expense, and amortization of purchased intangibles. For the North America Agricultural Insurance segment, management includes gains and losses on crop derivatives as a component of underwriting income. For example, for the three months ended June 30, 2017, underwriting income in our North America Agricultural Insurance segment was $23 million . This amount includes $2 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) in the Corporate column below. For the Life Insurance 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 Insurance underwriting income. For example, for the three months ended June 30, 2017, Life Insurance underwriting income of $56 million includes Net investment income of $77 million and gains from fair value changes in separate account assets of $16 million . The gains from fair value changes in separate account assets are reported in Other (income) expense in the table below. The following tables present the Statement of Operations by segment: North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Three Months Ended June 30, 2017 (in millions of U.S. dollars) Net premiums written $ 3,204 $ 1,255 $ 403 $ 2,006 $ 190 $ 523 $ — $ 7,581 Net premiums earned 3,099 1,093 344 2,018 168 515 — 7,237 Losses and loss expenses 1,936 683 290 964 46 182 45 4,146 Policy benefits — — — — — 163 — 163 Policy acquisition costs 464 230 27 555 43 130 — 1,449 Administrative expenses 241 66 2 243 12 77 65 706 Underwriting income (loss) 458 114 25 256 67 (37 ) (110 ) 773 Net investment income (loss) 490 56 6 148 65 77 (72 ) 770 Other (income) expense (4 ) 1 1 (3 ) 1 (12 ) (129 ) (145 ) Amortization expense of purchased intangibles — 5 7 11 — — 42 65 Segment income (loss) $ 952 $ 164 $ 23 $ 396 $ 131 $ 52 $ (95 ) $ 1,623 Net realized gains (losses) including OTTI 101 101 Interest expense 147 147 Chubb integration expenses 72 72 Income tax expense 200 200 Net income (loss) $ (413 ) $ 1,305 North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Three Months Ended June 30, 2016 (in millions of U.S. dollars) Net premiums written $ 3,245 $ 1,231 $ 375 $ 2,031 $ 230 $ 527 $ — $ 7,639 Net premiums earned 3,148 1,140 327 2,093 185 512 — 7,405 Losses and loss expenses 1,971 661 284 1,089 87 147 15 4,254 Policy benefits — — — — — 146 — 146 Policy acquisition costs 545 269 25 537 47 137 — 1,560 Administrative expenses 299 98 2 277 14 77 62 829 Underwriting income (loss) 333 112 16 190 37 5 (77 ) 616 Net investment income (loss) 468 55 5 147 65 69 (101 ) 708 Other (income) expense (9 ) 3 — (5 ) (2 ) — (16 ) (29 ) Amortization expense (benefit) of purchased intangibles — 4 8 13 — — (20 ) 5 Segment income (loss) $ 810 $ 160 $ 13 $ 329 $ 104 $ 74 $ (142 ) $ 1,348 Net realized gains (losses) including OTTI (216 ) (216 ) Interest expense 153 153 Chubb integration expenses 98 98 Income tax expense 155 155 Net income (loss) $ (764 ) $ 726 North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Six Months Ended June 30, 2017 (in millions of U.S. dollars) Net premiums written $ 5,946 $ 2,239 $ 464 $ 4,206 $ 389 $ 1,047 $ — $ 14,291 Net premiums earned 6,140 2,179 358 3,954 357 1,021 — 14,009 Losses and loss expenses 3,796 1,316 217 2,035 140 375 56 7,935 Policy benefits — — — — — 331 — 331 Policy acquisition costs 951 447 26 1,084 94 244 — 2,846 Administrative expenses 472 131 (3 ) 488 22 149 123 1,382 Underwriting income (loss) 921 285 118 347 101 (78 ) (179 ) 1,515 Net investment income (loss) 968 111 12 296 127 152 (151 ) 1,515 Other (income) expense — 2 1 (4 ) 1 (41 ) (174 ) (215 ) Amortization expense of purchased intangibles — 8 14 22 — 1 84 129 Segment income (loss) $ 1,889 $ 386 $ 115 $ 625 $ 227 $ 114 $ (240 ) $ 3,116 Net realized gains (losses) including OTTI 94 94 Interest expense 301 301 Chubb integration expenses 183 183 Income tax expense 328 328 Net income (loss) $ (958 ) $ 2,398 North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Six Months Ended June 30, 2016 (in millions of U.S. dollars) Net premiums written $ 5,547 $ 2,102 $ 439 $ 4,072 $ 431 $ 1,043 $ — $ 13,634 Net premiums earned 6,044 2,164 350 4,048 387 1,009 — 14,002 Losses and loss expenses 3,718 1,322 254 2,110 176 324 24 7,928 Policy benefits — — — — — 272 — 272 Policy acquisition costs 1,027 518 29 1,040 100 259 — 2,973 Administrative expenses 565 186 (2 ) 540 28 149 135 1,601 Underwriting income (loss) 734 138 69 358 83 5 (159 ) 1,228 Net investment income (loss) 894 102 10 293 132 136 (185 ) 1,382 Other (income) expense (9 ) 4 — (10 ) (3 ) 6 11 (1 ) Amortization expense (benefit) of purchased intangibles — 12 15 24 — 1 (40 ) 12 Segment income (loss) $ 1,637 $ 224 $ 64 $ 637 $ 218 $ 134 $ (315 ) $ 2,599 Net realized gains (losses) including OTTI (610 ) (610 ) Interest expense 299 299 Chubb integration expenses 246 246 Income tax expense 279 279 Net income (loss) $ (1,749 ) $ 1,165 Underwriting assets are reviewed in total by management for purposes of decision-making. Other than Unpaid losses and loss expenses, Reinsurance recoverables, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Three Months Ended Six Months Ended June 30 June 30 (in millions of U.S. dollars, except share and per share data) 2017 2016 2017 2016 Numerator: Net income $ 1,305 $ 726 $ 2,398 $ 1,165 Denominator: Denominator for basic earnings per share: Weighted-average shares outstanding 467,981,077 467,701,328 468,244,458 457,102,802 Denominator for diluted earnings per share: Share-based compensation plans 3,872,860 3,455,969 3,900,678 3,379,559 Weighted-average shares outstanding and assumed conversions 471,853,937 471,157,297 472,145,136 460,482,361 Basic earnings per share $ 2.79 $ 1.55 $ 5.12 $ 2.55 Diluted earnings per share $ 2.77 $ 1.54 $ 5.08 $ 2.53 Potential anti-dilutive share conversions 2,066,578 2,103,281 1,467,556 2,056,018 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 , and for the three and six months ended June 30, 2017 and 2016 for Chubb Limited (Parent Guarantor) and Chubb 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 Chubb Limited Subsidiaries column on a combined basis. Condensed Consolidating Balance Sheet at June 30, 2017 (in millions of U.S. dollars) Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated Assets Investments $ 23 $ 305 $ 99,880 $ — $ 100,208 Cash (1) — 167 1,323 (193 ) 1,297 Insurance and reinsurance balances receivable — — 11,699 (2,037 ) 9,662 Reinsurance recoverable on losses and loss expenses — — 24,118 (10,760 ) 13,358 Reinsurance recoverable on policy benefits — — 1,205 (1,007 ) 198 Value of business acquired — — 337 — 337 Goodwill and other intangible assets — — 22,013 — 22,013 Investments in subsidiaries 40,553 49,982 — (90,535 ) — Due from subsidiaries and affiliates, net 10,251 — — (10,251 ) — Other assets 141 289 19,527 (4,042 ) 15,915 Total assets $ 50,968 $ 50,743 $ 180,102 $ (118,825 ) $ 162,988 Liabilities Unpaid losses and loss expenses $ — $ — $ 70,460 $ (10,066 ) $ 60,394 Unearned premiums — — 18,876 (3,587 ) 15,289 Future policy benefits — — 6,197 (1,007 ) 5,190 Due to subsidiaries and affiliates, net — 9,939 312 (10,251 ) — Affiliated notional cash pooling programs (1) 193 — — (193 ) — Repurchase agreements — — 1,408 — 1,408 Short-term debt — 922 — — 922 Long-term debt — 11,656 11 — 11,667 Trust preferred securities — 308 — — 308 Other liabilities 426 1,582 18,639 (3,186 ) 17,461 Total liabilities 619 24,407 115,903 (28,290 ) 112,639 Total shareholders’ equity 50,349 26,336 64,199 (90,535 ) 50,349 Total liabilities and shareholders’ equity $ 50,968 $ 50,743 $ 180,102 $ (118,825 ) $ 162,988 (1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Balance Sheet at December 31, 2016 (in millions of U.S. dollars) Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated Assets Investments $ 27 $ 485 $ 98,582 $ — $ 99,094 Cash (1) 1 1 1,965 (982 ) 985 Insurance and reinsurance balances receivable — — 10,498 (1,528 ) 8,970 Reinsurance recoverable on losses and loss expenses — — 24,496 (10,919 ) 13,577 Reinsurance recoverable on policy benefits — — 1,153 (971 ) 182 Value of business acquired — — 355 — 355 Goodwill and other intangible assets — — 22,095 — 22,095 Investments in subsidiaries 38,408 49,509 — (87,917 ) — Due from subsidiaries and affiliates, net 10,482 — — (10,482 ) — Other assets 3 436 18,442 (4,353 ) 14,528 Total assets $ 48,921 $ 50,431 $ 177,586 $ (117,152 ) $ 159,786 Liabilities Unpaid losses and loss expenses $ — $ — $ 70,683 $ (10,143 ) $ 60,540 Unearned premiums — — 18,538 (3,759 ) 14,779 Future policy benefits — — 6,007 (971 ) 5,036 Due to subsidiaries and affiliates, net — 10,209 273 (10,482 ) — Affiliated notional cash pooling programs (1) 363 619 — (982 ) — Repurchase agreements — — 1,403 — 1,403 Short-term debt — 500 — — 500 Long-term debt — 12,599 11 — 12,610 Trust preferred securities — 308 — — 308 Other liabilities 283 1,582 17,368 (2,898 ) 16,335 Total liabilities 646 25,817 114,283 (29,235 ) 111,511 Total shareholders’ equity 48,275 24,614 63,303 (87,917 ) 48,275 Total liabilities and shareholders’ equity $ 48,921 $ 50,431 $ 177,586 $ (117,152 ) $ 159,786 (1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2016 , 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 June 30, 2017 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 7,581 $ — $ 7,581 Net premiums earned — — 7,237 — 7,237 Net investment income 2 4 764 — 770 Equity in earnings of subsidiaries 1,253 665 — (1,918 ) — Net realized gains (losses) including OTTI (2 ) (1 ) 104 — 101 Losses and loss expenses — — 4,146 — 4,146 Policy benefits — — 163 — 163 Policy acquisition costs and administrative expenses 18 (2 ) 2,139 — 2,155 Interest (income) expense (84 ) 212 19 — 147 Other (income) expense 4 10 (159 ) — (145 ) Amortization of purchased intangibles — — 65 — 65 Chubb integration expenses 6 4 62 — 72 Income tax expense (benefit) 4 (87 ) 283 — 200 Net income $ 1,305 $ 531 $ 1,387 $ (1,918 ) $ 1,305 Comprehensive income $ 1,675 $ 920 $ 1,756 $ (2,676 ) $ 1,675 Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended June 30, 2016 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 7,639 $ — $ 7,639 Net premiums earned — — 7,405 — 7,405 Net investment income 1 3 704 — 708 Equity in earnings of subsidiaries 664 549 — (1,213 ) — Net realized gains (losses) including OTTI (1 ) (1 ) (214 ) — (216 ) Losses and loss expenses — — 4,254 — 4,254 Policy benefits — — 146 — 146 Policy acquisition costs and administrative expenses 16 96 2,277 — 2,389 Interest (income) expense (93 ) 233 13 — 153 Other (income) expense (4 ) 10 (35 ) — (29 ) Amortization of purchased intangibles — — 5 — 5 Chubb integration expenses 14 (97 ) 181 — 98 Income tax expense (benefit) 5 (37 ) 187 — 155 Net income $ 726 $ 346 $ 867 $ (1,213 ) $ 726 Comprehensive income $ 1,540 $ 1,004 $ 1,681 $ (2,685 ) $ 1,540 Condensed Consolidating Statements of Operations and Comprehensive Income For the Six Months Ended June 30, 2017 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 14,291 $ — $ 14,291 Net premiums earned — — 14,009 — 14,009 Net investment income 2 7 1,506 — 1,515 Equity in earnings of subsidiaries 2,280 1,366 — (3,646 ) — Net realized gains (losses) including OTTI (2 ) (14 ) 110 — 94 Losses and loss expenses — — 7,935 — 7,935 Policy benefits — — 331 — 331 Policy acquisition costs and administrative expenses 36 12 4,180 — 4,228 Interest (income) expense (168 ) 433 36 — 301 Other (income) expense (2 ) 25 (238 ) — (215 ) Amortization of purchased intangibles — — 129 — 129 Chubb integration expenses 6 53 124 — 183 Income tax expense (benefit) 10 (199 ) 517 — 328 Net income $ 2,398 $ 1,035 $ 2,611 $ (3,646 ) $ 2,398 Comprehensive income $ 3,082 $ 1,711 $ 3,294 $ (5,005 ) $ 3,082 Condensed Consolidating Statements of Operations and Comprehensive Income For the Six Months Ended June 30, 2016 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 13,634 $ — $ 13,634 Net premiums earned — — 14,002 — 14,002 Net investment income 2 7 1,373 — 1,382 Equity in earnings of subsidiaries 1,039 1,055 — (2,094 ) — Net realized gains (losses) including OTTI (1 ) (1 ) (608 ) — (610 ) Losses and loss expenses — — 7,928 — 7,928 Policy benefits — — 272 — 272 Policy acquisition costs and administrative expenses 33 132 4,409 — 4,574 Interest (income) expense (173 ) 448 24 — 299 Other (income) expense (13 ) 20 (8 ) — (1 ) Amortization of purchased intangibles — — 12 — 12 Chubb integration expenses 17 40 189 — 246 Income tax expense (benefit) 11 (187 ) 455 — 279 Net income $ 1,165 $ 608 $ 1,486 $ (2,094 ) $ 1,165 Comprehensive income $ 3,081 $ 2,060 $ 3,402 $ (5,462 ) $ 3,081 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net cash flows from operating activities $ 551 $ 1,444 $ 1,686 $ (2,041 ) $ 1,640 Cash flows from investing activities Purchases of fixed maturities available for sale — (5 ) (12,255 ) — (12,260 ) Purchases of fixed maturities held to maturity — — (212 ) — (212 ) Purchases of equity securities — — (82 ) — (82 ) Sales of fixed maturities available for sale — — 6,873 — 6,873 Sales of equity securities — — 104 — 104 Maturities and redemptions of fixed maturities available for sale — 13 5,156 — 5,169 Maturities and redemptions of fixed maturities held to maturity — — 408 — 408 Net change in short-term investments — 166 188 — 354 Net derivative instruments settlements — (7 ) (122 ) — (129 ) Other — 2 (123 ) — (121 ) Net cash flows from (used for) investing activities — 169 (65 ) — 104 Cash flows from financing activities Dividends paid on Common Shares (646 ) — — — (646 ) Common Shares repurchased — — (475 ) — (475 ) Repayment of long-term debt — (500 ) — — (500 ) Proceeds from issuance of repurchase agreements — — 1,343 — 1,343 Repayment of repurchase agreements — — (1,338 ) — (1,338 ) Proceeds from share-based compensation plans — — 89 — 89 Dividend to parent company — — (2,041 ) 2,041 — Advances (to) from affiliates 264 (328 ) 64 — — Net payments to affiliated notional cash pooling programs (1) (170 ) (619 ) — 789 — Policyholder contract deposits — — 209 — 209 Policyholder contract withdrawals — — (125 ) — (125 ) Net cash flows used for financing activities (552 ) (1,447 ) (2,274 ) 2,830 (1,443 ) Effect of foreign currency rate changes on cash and cash equivalents — — 11 — 11 Net increase (decrease) in cash (1 ) 166 (642 ) 789 312 Cash – beginning of period (1) 1 1 1,965 (982 ) 985 Cash – end of period (1) $ — $ 167 $ 1,323 $ (193 ) $ 1,297 (1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net cash flows from operating activities $ 3,213 $ 4,050 $ 2,262 $ (7,372 ) $ 2,153 Cash flows from investing activities Purchases of fixed maturities available for sale — (83 ) (16,994 ) — (17,077 ) Purchases of fixed maturities held to maturity — — (121 ) — (121 ) Purchases of equity securities — — (78 ) — (78 ) Sales of fixed maturities available for sale — — 11,868 — 11,868 Sales of equity securities — — 932 — 932 Maturities and redemptions of fixed maturities available for sale — — 3,910 — 3,910 Maturities and redemptions of fixed maturities held to maturity — — 443 — 443 Net change in short-term investments — 7,829 3,882 — 11,711 Net derivative instruments settlements — (10 ) (83 ) — (93 ) Acquisition of subsidiaries (net of cash acquired of $71) — (14,282 ) 34 — (14,248 ) Capital contribution (2,330 ) — (2,330 ) 4,660 — Other — (3 ) 84 — 81 Net cash flows from (used for) investing activities (2,330 ) (6,549 ) 1,547 4,660 (2,672 ) Cash flows from financing activities Dividends paid on Common Shares (530 ) — — — (530 ) Proceeds from issuance of repurchase agreements — — 904 — 904 Repayment of repurchase agreements — — (902 ) — (902 ) Proceeds from share-based compensation plans, including windfall tax benefits — — 92 — 92 Dividend to parent company — — (7,372 ) 7,372 — Advances (to) from affiliates (247 ) 221 26 — — Capital contribution — 2,330 2,330 (4,660 ) — Net proceeds from (payments to) affiliated notional cash pooling programs (1) (106 ) 157 — (51 ) — Policyholder contract deposits — — 274 — 274 Policyholder contract withdrawals — — (103 ) — (103 ) Other — (4 ) — — (4 ) Net cash flows from (used for) financing activities (883 ) 2,704 (4,751 ) 2,661 (269 ) Effect of foreign currency rate changes on cash and cash equivalents — — 24 — 24 Net increase (decrease) in cash — 205 (918 ) (51 ) (764 ) Cash – beginning of period (1) 1 2 2,743 (971 ) 1,775 Cash – end of period (1) $ 1 $ 207 $ 1,825 $ (1,022 ) $ 1,011 (1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | General a) Basis of presentation Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Chubb operates through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 10 for additional information. The interim unaudited consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, 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 2016 Form 10-K. |
Accounting guidance adopted in 2017 | d) Accounting guidance adopted in 2017 Stock Compensation Effective January 2017, we prospectively adopted new guidance on stock compensation which requires recognition of the excess tax benefits or deficiencies of share-based compensation awards to employees through net income rather than through additional paid in capital. The calculation of the excess tax benefits or deficiencies is based on the difference between the market value of a stock award at the date of vesting, or at the time of exercise for a stock option, compared to the grant date fair value recognized as compensation expense in the Consolidated statements of operations. For the three and six months ended June 30, 2017, the excess tax benefit recorded to Income tax expense in the Consolidated statement of operations was $ 5 million and $30 million , respectively. Additionally, the guidance allowed for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. We elected to retain our current accounting for compensation expense using a forfeiture estimation process. |
Accounting guidance not yet adopted | e) Accounting guidance not yet adopted Goodwill Impairment In January 2017, the FASB issued updated guidance on goodwill impairment testing that eliminates Step 2 of the goodwill impairment test requiring entities to calculate the implied fair value of goodwill through a hypothetical purchase price allocation. Under the updated guidance, impairment will now be recognized as the amount by which a reporting unit’s carrying value exceeds its fair value. The standard will be effective for us in the first quarter of 2020 on a prospective basis with early adoption permitted. We do not expect the adoption of this guidance to have a material effect on our financial condition and results of operations. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued guidance on the amortization period for purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. Under current guidance, premiums generally are amortized over the contracted life of the security. This guidance is effective for us in the first quarter of 2019 on a modified retrospective basis through a cumulative effect adjustment to beginning retained earnings. Early adoption is permitted. Securities held at a discount do not require an accounting change. We are in the process of evaluating the effect the updated guidance will have on our financial condition and results of operations. Refer to the 2016 Form 10-K for information on other accounting guidance not yet adopted. |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Acquisition [Abstract] | |
Results of Operations From Date of Business Combination [Table Text Block] | The following table summarizes the results of the acquired Chubb Corp operations within our 2016 Consolidated statements of operations for the periods presented: (in millions of U.S. dollars) Three Months Ended June 30, 2016 January 14, 2016 to June 30, 2016 Total revenues $ 2,745 $ 5,232 Net income $ 326 $ 581 |
Pro Forma Financial Information for the Chubb Corp Acquisition [Table Text Block] | The following table provides supplemental unaudited pro forma consolidated information for the three and six months ended June 30, 2016 , as if Chubb Corp had been acquired as of January 1, 2015. The unaudited pro forma consolidated financial statements are presented solely for informational purposes and are not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction been completed as of the date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction. Three Months Ended Six Months Ended (in millions of U.S. dollars, except per share data) June 30, 2016 June 30, 2016 Total revenues $ 7,915 $ 15,237 Net income $ 712 $ 1,246 Earnings per share Basic earnings per share $ 1.52 $ 2.67 Diluted earnings per share $ 1.51 $ 2.65 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Amortized Cost And Fair Value Of HTM Fixed Maturities And Related OTTI Recognized In AOCI | June 30, 2017 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 $ 3,122 $ 40 $ (26 ) $ 3,136 $ — Foreign 21,139 653 (82 ) 21,710 (2 ) Corporate securities 24,744 714 (94 ) 25,364 (7 ) Mortgage-backed securities 14,469 148 (144 ) 14,473 (1 ) States, municipalities, and political subdivisions 16,889 138 (65 ) 16,962 — $ 80,363 $ 1,693 $ (411 ) $ 81,645 $ (10 ) Held to maturity U.S. Treasury and agency $ 602 $ 13 $ (2 ) $ 613 $ — Foreign 613 29 — 642 — Corporate securities 2,645 62 (7 ) 2,700 — Mortgage-backed securities 1,268 37 (1 ) 1,304 — States, municipalities, and political subdivisions 5,243 66 (8 ) 5,301 — $ 10,371 $ 207 $ (18 ) $ 10,560 $ — December 31, 2016 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 $ 2,883 $ 32 $ (45 ) $ 2,870 $ — Foreign 20,929 636 (125 ) 21,440 (5 ) Corporate securities 23,736 580 (167 ) 24,149 (8 ) Mortgage-backed securities 14,066 135 (194 ) 14,007 (1 ) States, municipalities, and political subdivisions 17,922 72 (345 ) 17,649 — $ 79,536 $ 1,455 $ (876 ) $ 80,115 $ (14 ) Held to maturity U.S. Treasury and agency $ 655 $ 9 $ (3 ) $ 661 $ — Foreign 640 28 (1 ) 667 — Corporate securities 2,771 50 (26 ) 2,795 — Mortgage-backed securities 1,393 35 — 1,428 — States, municipalities, and political subdivisions 5,185 26 (92 ) 5,119 — $ 10,644 $ 148 $ (122 ) $ 10,670 $ — |
Schedule Of Fixed Maturities By Contractual Maturity | The following table presents fixed maturities by contractual maturity: June 30 December 31 2017 2016 (in millions of U.S. dollars) Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Due in 1 year or less $ 3,799 $ 3,823 $ 3,892 $ 3,913 Due after 1 year through 5 years 23,748 24,207 24,027 24,429 Due after 5 years through 10 years 28,040 28,498 27,262 27,379 Due after 10 years 10,307 10,644 10,289 10,387 65,894 67,172 65,470 66,108 Mortgage-backed securities 14,469 14,473 14,066 14,007 $ 80,363 $ 81,645 $ 79,536 $ 80,115 Held to maturity Due in 1 year or less $ 807 $ 814 $ 430 $ 435 Due after 1 year through 5 years 2,353 2,396 2,646 2,691 Due after 5 years through 10 years 3,001 3,045 2,969 2,944 Due after 10 years 2,942 3,001 3,206 3,172 9,103 9,256 9,251 9,242 Mortgage-backed securities 1,268 1,304 1,393 1,428 $ 10,371 $ 10,560 $ 10,644 $ 10,670 |
Schedule Of Amortized Cost and Fair Value of Available-for-sale Securities and Related OTTI Recognized in AOCI | June 30, 2017 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 $ 3,122 $ 40 $ (26 ) $ 3,136 $ — Foreign 21,139 653 (82 ) 21,710 (2 ) Corporate securities 24,744 714 (94 ) 25,364 (7 ) Mortgage-backed securities 14,469 148 (144 ) 14,473 (1 ) States, municipalities, and political subdivisions 16,889 138 (65 ) 16,962 — $ 80,363 $ 1,693 $ (411 ) $ 81,645 $ (10 ) Held to maturity U.S. Treasury and agency $ 602 $ 13 $ (2 ) $ 613 $ — Foreign 613 29 — 642 — Corporate securities 2,645 62 (7 ) 2,700 — Mortgage-backed securities 1,268 37 (1 ) 1,304 — States, municipalities, and political subdivisions 5,243 66 (8 ) 5,301 — $ 10,371 $ 207 $ (18 ) $ 10,560 $ — December 31, 2016 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 $ 2,883 $ 32 $ (45 ) $ 2,870 $ — Foreign 20,929 636 (125 ) 21,440 (5 ) Corporate securities 23,736 580 (167 ) 24,149 (8 ) Mortgage-backed securities 14,066 135 (194 ) 14,007 (1 ) States, municipalities, and political subdivisions 17,922 72 (345 ) 17,649 — $ 79,536 $ 1,455 $ (876 ) $ 80,115 $ (14 ) Held to maturity U.S. Treasury and agency $ 655 $ 9 $ (3 ) $ 661 $ — Foreign 640 28 (1 ) 667 — Corporate securities 2,771 50 (26 ) 2,795 — Mortgage-backed securities 1,393 35 — 1,428 — States, municipalities, and political subdivisions 5,185 26 (92 ) 5,119 — $ 10,644 $ 148 $ (122 ) $ 10,670 $ — June 30 December 31 (in millions of U.S. dollars) 2017 2016 Cost $ 697 $ 706 Gross unrealized appreciation 164 129 Gross unrealized depreciation (5 ) (21 ) Fair value $ 856 $ 814 |
Schedule of Realized Gain (Loss) | 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 Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2017 2016 2017 2016 Fixed maturities: OTTI on fixed maturities, gross $ (5 ) $ (11 ) $ (11 ) $ (78 ) OTTI on fixed maturities recognized in OCI (pre-tax) 1 — 1 8 OTTI on fixed maturities, net (4 ) (11 ) (10 ) (70 ) Gross realized gains excluding OTTI 45 37 79 102 Gross realized losses excluding OTTI (18 ) (19 ) (58 ) (215 ) Total fixed maturities 23 7 11 (183 ) Equity securities: OTTI on equity securities (3 ) (5 ) (8 ) (6 ) Gross realized gains excluding OTTI 6 4 15 44 Gross realized losses excluding OTTI (1 ) (4 ) (1 ) (5 ) Total equity securities 2 (5 ) 6 33 OTTI on other investments (1 ) — (9 ) (3 ) Foreign exchange gains (losses) 14 (22 ) (5 ) 17 Investment and embedded derivative instruments (16 ) (47 ) (10 ) (86 ) Fair value adjustments on insurance derivative 118 (131 ) 211 (359 ) S&P put options and futures (38 ) (28 ) (112 ) (43 ) Other derivative instruments (1 ) — 1 (2 ) Other — 10 1 16 Net realized gains (losses) $ 101 $ (216 ) $ 94 $ (610 ) |
Schedule Of Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which A Portion Of OTTI Was Recognized In OCI | 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 Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2017 2016 2017 2016 Balance of credit losses related to securities still held – beginning of period $ 32 $ 57 $ 35 $ 53 Additions where no OTTI was previously recorded 1 1 1 12 Additions where an OTTI was previously recorded — 6 1 12 Reductions for securities sold during the period (4 ) (13 ) (8 ) (26 ) Balance of credit losses related to securities still held – end of period $ 29 $ 51 $ 29 $ 51 |
Schedule Of Aggregate Fair Value And Gross Unrealized Loss By Length Of Time The Security Has Continuously Been In An Unrealized Loss Position | 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 June 30, 2017 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 $ 2,021 $ (28 ) $ — $ — $ 2,021 $ (28 ) Foreign 4,381 (57 ) 599 (25 ) 4,980 (82 ) Corporate securities 4,410 (72 ) 372 (29 ) 4,782 (101 ) Mortgage-backed securities 7,657 (141 ) 118 (4 ) 7,775 (145 ) States, municipalities, and political subdivisions 9,049 (68 ) 182 (5 ) 9,231 (73 ) Total fixed maturities 27,518 (366 ) 1,271 (63 ) 28,789 (429 ) Equity securities 104 (5 ) — — 104 (5 ) Other investments 70 (4 ) — — 70 (4 ) Total $ 27,692 $ (375 ) $ 1,271 $ (63 ) $ 28,963 $ (438 ) 0 – 12 Months Over 12 Months Total December 31, 2016 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 $ 2,216 $ (48 ) $ — $ — $ 2,216 $ (48 ) Foreign 5,918 (99 ) 386 (27 ) 6,304 (126 ) Corporate securities 7,021 (149 ) 641 (44 ) 7,662 (193 ) Mortgage-backed securities 8,638 (189 ) 234 (5 ) 8,872 (194 ) States, municipalities, and political subdivisions 19,448 (435 ) 49 (2 ) 19,497 (437 ) Total fixed maturities 43,241 (920 ) 1,310 (78 ) 44,551 (998 ) Equity securities 199 (21 ) — — 199 (21 ) Other investments 201 (18 ) — — 201 (18 ) Total $ 43,641 $ (959 ) $ 1,310 $ (78 ) $ 44,951 $ (1,037 ) |
Schedule Of Components Of Restricted Assets | The following table presents the components of restricted assets: June 30 December 31 (in millions of U.S. dollars) 2017 2016 Trust funds $ 14,938 $ 13,880 Deposits with U.S. regulatory authorities 2,325 2,203 Deposits with non-U.S. regulatory authorities 2,170 2,191 Assets pledged under repurchase agreements 1,472 1,461 Other pledged assets 371 435 $ 21,276 $ 20,170 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured At Fair Value On A Recurring Basis | Financial instruments measured at fair value on a recurring basis, by valuation hierarchy June 30, 2017 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 2,486 $ 650 $ — $ 3,136 Foreign — 21,625 85 21,710 Corporate securities — 24,617 747 25,364 Mortgage-backed securities — 14,428 45 14,473 States, municipalities, and political subdivisions — 16,962 — 16,962 2,486 78,282 877 81,645 Equity securities 817 — 39 856 Short-term investments 1,421 1,223 7 2,651 Other investments (1) 430 282 243 955 Securities lending collateral — 1,545 — 1,545 Investment derivative instruments 12 — — 12 Other derivative instruments 9 — — 9 Separate account assets 2,147 101 — 2,248 Total assets measured at fair value (1) $ 7,322 $ 81,433 $ 1,166 $ 89,921 Liabilities: Investment derivative instruments $ 35 $ — $ — $ 35 Other derivative instruments — — 2 2 GLB (2) — — 357 357 Total liabilities measured at fair value $ 35 $ — $ 359 $ 394 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 3,711 million and other investments of $ 19 million at June 30, 2017 measured using NAV as a practical expedient. (2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. December 31, 2016 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 2,175 $ 695 $ — $ 2,870 Foreign — 21,366 74 21,440 Corporate securities — 23,468 681 24,149 Mortgage-backed securities — 13,962 45 14,007 States, municipalities, and political subdivisions — 17,649 — 17,649 2,175 77,140 800 80,115 Equity securities 773 — 41 814 Short-term investments 1,757 1,220 25 3,002 Other investments (1) 384 259 225 868 Securities lending collateral — 1,092 — 1,092 Investment derivative instruments 31 — — 31 Other derivative instruments 3 — — 3 Separate account assets 1,784 95 — 1,879 Total assets measured at fair value (1) $ 6,907 $ 79,806 $ 1,091 $ 87,804 Liabilities: Investment derivative instruments $ 54 $ — $ — $ 54 Other derivative instruments — — 13 13 GLB (2) — — 559 559 Total liabilities measured at fair value $ 54 $ — $ 572 $ 626 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,626 million and other investments of $25 million at December 31, 2016 measured using NAV as a practical expedient. (2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. |
Fair Value And Maximum Future Funding Commitments Related To Investments | The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments: June 30 December 31 Expected Liquidation Period of Underlying Assets 2017 2016 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 5 to 9 Years $ 576 $ 354 $ 548 $ 428 Real Assets 3 to 7 Years 622 181 536 230 Distressed 5 to 9 Years 350 175 485 179 Private Credit 3 to 7 Years 238 337 236 259 Traditional 3 to 9 Years 1,646 805 1,550 930 Vintage 1 to 2 Years 19 — 21 14 Investment funds Not Applicable 260 — 251 — $ 3,711 $ 1,852 $ 3,627 $ 2,040 |
Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations | 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 June 30, 2017 December 31, 2016 GLB (1) $ 357 $ 559 Actuarial model Lapse rate 3% – 34% Annuitization rate 0% – 78% (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, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | 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 Short-term investments Other investments Other derivative instruments GLB (1) June 30, 2017 Foreign Corporate securities MBS (in millions of U.S. dollars) Balance – beginning of period $ 80 $ 737 $ 45 $ 41 $ 21 $ 233 $ 11 $ 466 Transfers into Level 3 — 28 — — — — — 9 Transfers out of Level 3 — (13 ) — — — — (9 ) — Change in Net Unrealized Gains (Losses) included in OCI 3 — — 1 — (1 ) — — Net Realized Gains/Losses 2 — — — — — — (118 ) Purchases 19 65 — 6 7 16 — — Sales (19 ) (28 ) — (9 ) — — — — Settlements — (42 ) — — (21 ) (5 ) — — Balance – end of period $ 85 $ 747 $ 45 $ 39 $ 7 $ 243 $ 2 $ 357 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ — $ (118 ) (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million , respectively. Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) June 30, 2016 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 62 $ 261 $ 48 $ 29 $ — $ 211 $ 10 $ 839 Transfers into Level 3 3 2 — — — — — — Change in Net Unrealized Gains (Losses) included in OCI 3 9 — (1 ) — — — — Net Realized Gains/Losses (1 ) (2 ) — 1 — — — 132 Purchases 27 31 1 10 50 8 — — Sales (7 ) (16 ) — (2 ) — — — — Settlements — (4 ) — — — (3 ) — — Balance – end of period $ 87 $ 281 $ 49 $ 37 $ 50 $ 216 $ 10 $ 971 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (1 ) $ — $ — $ — $ — $ — $ — $ 132 (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016 , and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months Ended Available-for-Sale Debt Securities Equity securities Short-term investments Other investments Other derivative instruments GLB (1) June 30, 2017 Foreign Corporate securities MBS (in millions of U.S. dollars) Balance – beginning of period $ 74 $ 681 $ 45 $ 41 $ 25 $ 225 $ 13 $ 559 Transfers into Level 3 — 57 — — — — — 9 Transfers out of Level 3 — (67 ) — — — — (9 ) — Change in Net Unrealized Gains (Losses) included in OCI 2 (8 ) — 1 — 3 — — Net Realized Gains/Losses 1 (1 ) — — — — (2 ) (211 ) Purchases 33 221 1 6 14 24 — — Sales (22 ) (55 ) (1 ) (9 ) — — — — Settlements (3 ) (81 ) — — (32 ) (9 ) — — Balance – end of period $ 85 $ 747 $ 45 $ 39 $ 7 $ 243 $ 2 $ 357 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ (2 ) $ (211 ) (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million , respectively. Assets Liabilities Six Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) June 30, 2016 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 57 $ 174 $ 53 $ 16 $ — $ 212 $ 6 $ 609 Transfers into Level 3 9 18 — — — — — — Transfers out of Level 3 (2 ) — — — — — — — Change in Net Unrealized Gains (Losses) included in OCI 9 11 — (1 ) — — — — Net Realized Gains/Losses (6 ) (8 ) — 1 — — 2 362 Purchases (2) 32 124 1 23 50 14 2 — Sales (8 ) (30 ) (5 ) (2 ) — — — — Settlements (4 ) (8 ) — — — (10 ) — — Balance – end of period $ 87 $ 281 $ 49 $ 37 $ 50 $ 216 $ 10 $ 971 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (5 ) $ (7 ) $ — $ — $ — $ — $ 2 $ 362 (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016 , and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million , respectively. (2) Includes acquired invested assets as a result of the Chubb Corp acquisition. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | 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 Short-term investments Other investments Other derivative instruments GLB (1) June 30, 2017 Foreign Corporate securities MBS (in millions of U.S. dollars) Balance – beginning of period $ 80 $ 737 $ 45 $ 41 $ 21 $ 233 $ 11 $ 466 Transfers into Level 3 — 28 — — — — — 9 Transfers out of Level 3 — (13 ) — — — — (9 ) — Change in Net Unrealized Gains (Losses) included in OCI 3 — — 1 — (1 ) — — Net Realized Gains/Losses 2 — — — — — — (118 ) Purchases 19 65 — 6 7 16 — — Sales (19 ) (28 ) — (9 ) — — — — Settlements — (42 ) — — (21 ) (5 ) — — Balance – end of period $ 85 $ 747 $ 45 $ 39 $ 7 $ 243 $ 2 $ 357 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ — $ (118 ) (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million , respectively. Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) June 30, 2016 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 62 $ 261 $ 48 $ 29 $ — $ 211 $ 10 $ 839 Transfers into Level 3 3 2 — — — — — — Change in Net Unrealized Gains (Losses) included in OCI 3 9 — (1 ) — — — — Net Realized Gains/Losses (1 ) (2 ) — 1 — — — 132 Purchases 27 31 1 10 50 8 — — Sales (7 ) (16 ) — (2 ) — — — — Settlements — (4 ) — — — (3 ) — — Balance – end of period $ 87 $ 281 $ 49 $ 37 $ 50 $ 216 $ 10 $ 971 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (1 ) $ — $ — $ — $ — $ — $ — $ 132 (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016 , and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months Ended Available-for-Sale Debt Securities Equity securities Short-term investments Other investments Other derivative instruments GLB (1) June 30, 2017 Foreign Corporate securities MBS (in millions of U.S. dollars) Balance – beginning of period $ 74 $ 681 $ 45 $ 41 $ 25 $ 225 $ 13 $ 559 Transfers into Level 3 — 57 — — — — — 9 Transfers out of Level 3 — (67 ) — — — — (9 ) — Change in Net Unrealized Gains (Losses) included in OCI 2 (8 ) — 1 — 3 — — Net Realized Gains/Losses 1 (1 ) — — — — (2 ) (211 ) Purchases 33 221 1 6 14 24 — — Sales (22 ) (55 ) (1 ) (9 ) — — — — Settlements (3 ) (81 ) — — (32 ) (9 ) — — Balance – end of period $ 85 $ 747 $ 45 $ 39 $ 7 $ 243 $ 2 $ 357 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ (2 ) $ (211 ) (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million , respectively. Assets Liabilities Six Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) June 30, 2016 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 57 $ 174 $ 53 $ 16 $ — $ 212 $ 6 $ 609 Transfers into Level 3 9 18 — — — — — — Transfers out of Level 3 (2 ) — — — — — — — Change in Net Unrealized Gains (Losses) included in OCI 9 11 — (1 ) — — — — Net Realized Gains/Losses (6 ) (8 ) — 1 — — 2 362 Purchases (2) 32 124 1 23 50 14 2 — Sales (8 ) (30 ) (5 ) (2 ) — — — — Settlements (4 ) (8 ) — — — (10 ) — — Balance – end of period $ 87 $ 281 $ 49 $ 37 $ 50 $ 216 $ 10 $ 971 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ (5 ) $ (7 ) $ — $ — $ — $ — $ 2 $ 362 (1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016 , and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million , respectively. (2) Includes acquired invested assets as a result of the Chubb Corp acquisition. |
Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value | The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value: June 30, 2017 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 $ 528 $ 85 $ — $ 613 $ 602 Foreign — 642 — 642 613 Corporate securities — 2,688 12 2,700 2,645 Mortgage-backed securities — 1,304 — 1,304 1,268 States, municipalities, and political subdivisions — 5,301 — 5,301 5,243 Total assets $ 528 $ 10,020 $ 12 $ 10,560 $ 10,371 Liabilities: Repurchase agreements $ — $ 1,408 $ — $ 1,408 $ 1,408 Short-term debt — 931 — 931 922 Long-term debt — 12,366 — 12,366 11,667 Trust preferred securities — 462 — 462 308 Total liabilities $ — $ 15,167 $ — $ 15,167 $ 14,305 December 31, 2016 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 $ 555 $ 106 $ — $ 661 $ 655 Foreign — 667 — 667 640 Corporate securities — 2,782 13 2,795 2,771 Mortgage-backed securities — 1,428 — 1,428 1,393 States, municipalities, and political subdivisions — 5,119 — 5,119 5,185 Total assets $ 555 $ 10,102 $ 13 $ 10,670 $ 10,644 Liabilities: Repurchase agreements $ — $ 1,403 $ — $ 1,403 $ 1,403 Short-term debt — 503 — 503 500 Long-term debt — 12,998 — 12,998 12,610 Trust preferred securities — 456 — 456 308 Total liabilities $ — $ 15,360 $ — $ 15,360 $ 14,821 |
Unpaid losses and loss expens26
Unpaid losses and loss expenses Unpaid losses and loss expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses: Six Months Ended June 30 (in millions of U.S. dollars) 2017 2016 Gross unpaid losses and loss expenses – beginning of period $ 60,540 $ 37,303 Reinsurance recoverable on unpaid losses (1) (12,708 ) (10,741 ) Net unpaid losses and loss expenses – beginning of period 47,832 26,562 Acquisition of subsidiaries — 21,398 Total 47,832 47,960 Net losses and loss expenses incurred in respect of losses occurring in: Current year 8,396 8,529 Prior years (2) (461 ) (601 ) Total 7,935 7,928 Net losses and loss expenses paid in respect of losses occurring in: Current year 2,271 1,964 Prior years 5,758 5,541 Total 8,029 7,505 Foreign currency revaluation and other 171 40 Net unpaid losses and loss expenses – end of period 47,909 48,423 Reinsurance recoverable on unpaid losses (1) 12,485 12,396 Gross unpaid losses and loss expenses – end of period $ 60,394 $ 60,819 (1) Net of provision for uncollectible reinsurance. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums of $60 million and $53 million for the six months ended June 30, 2017 and 2016, respectively. |
Commitments, contingencies, a27
Commitments, contingencies, and guarantees (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Balance Sheet Locations, Fair Values In An Asset Or (Liability) Position, And Notional Values/Payment Provisions Of Derivative Instruments | 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: June 30, 2017 December 31, 2016 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) $ 8 $ (30 ) $ 2,201 $ 25 $ (50 ) $ 2,220 Cross-currency swaps OA / (AP) — — 45 — — 95 Options/Futures contracts on notes and bonds OA / (AP) 4 (5 ) 1,376 6 (4 ) 2,344 Convertible securities (1) FM AFS / ES 2 — 7 2 — 7 $ 14 $ (35 ) $ 3,629 $ 33 $ (54 ) $ 4,666 Other derivative instruments Futures contracts on equities (2) OA / (AP) $ 5 $ — $ 1,428 $ 1 $ — $ 1,316 Other OA / (AP) 4 (2 ) 249 2 (13 ) 214 $ 9 $ (2 ) $ 1,677 $ 3 $ (13 ) $ 1,530 GLB (3) (AP) / (FPB) $ — $ (684 ) $ 1,180 $ — $ (853 ) $ 1,264 (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. 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 | The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements: Remaining contractual maturity June 30 December 31 2017 2016 (in millions of U.S. dollars) Overnight and Continuous Collateral held under securities lending agreements: Cash $ 1,062 $ 423 U.S. Treasury and agency 82 54 Foreign 263 578 Corporate securities 1 37 Mortgage-backed securities 60 — Equity securities 77 — $ 1,545 $ 1,092 Gross amount of recognized liability for securities lending payable $ 1,546 $ 1,093 Difference (1) $ (1 ) $ (1 ) (1) The carrying value of the securities lending collateral held is $ 1 million lower than the securities lending payable at both June 30, 2017 and December 31, 2016, due to accrued interest recorded in the securities lending payable. |
Secured Borrowings Securities Lending Table Text Block [Table Text Block] | The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements: Remaining contractual maturity June 30, 2017 December 31, 2016 30-90 Days Greater than 90 Days Total Up to 30 Days Greater than 90 Days Total (in millions of U.S. dollars) Collateral pledged under repurchase agreements: Cash $ — $ — $ — $ — $ 1 $ 1 U.S. Treasury and agency 6 240 246 230 10 240 Mortgage-backed securities 495 731 1,226 339 881 1,220 $ 501 $ 971 $ 1,472 $ 569 $ 892 $ 1,461 Gross amount of recognized liabilities for repurchase agreements $ 1,408 $ 1,403 Difference (1) $ 64 $ 58 |
Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations | The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations: Three Months Ended Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2017 2016 2017 2016 Investment and embedded derivative instruments Foreign currency forward contracts $ (7 ) $ (10 ) $ 7 $ (20 ) All other futures contracts and options (9 ) (37 ) (17 ) (71 ) Convertible securities (1) — — — 5 Total investment and embedded derivative instruments $ (16 ) $ (47 ) $ (10 ) $ (86 ) GLB and other derivative instruments GLB (2) $ 118 $ (131 ) $ 211 $ (359 ) Futures contracts on equities (3) (38 ) (28 ) (112 ) (43 ) Other (1 ) — 1 (2 ) Total GLB and other derivative instruments $ 79 $ (159 ) $ 100 $ (404 ) $ 63 $ (206 ) $ 90 $ (490 ) (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) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [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 Six Months Ended June 30 June 30 2017 2016 2017 2016 CHF USD CHF USD CHF USD CHF USD Total dividend distributions per common share 0.69 $ 0.71 0.68 $ 0.69 1.38 $ 1.40 1.34 $ 1.36 |
Share Repurchase Program [Table Text Block] | Repurchases of Chubb's Common Shares conducted in a series of open market transactions from January 1, 2017 through August 2, 2017 under the Board authorization are as follows: (in millions of U.S. dollars, except share data) Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 July 1, 2017 through August 2, 2017 Number of shares repurchased 2,381,566 3,417,630 501,872 Cost of shares repurchased $ 335 $ 475 $ 72 Repurchase authorization remaining at end of period $ 525 $ 525 $ 453 |
Postretirement benefits (Tables
Postretirement benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows: Three Months Ended June 30 Pension Benefits Other Postretirement Benefits U.S. Plans Non-U.S. Plans Total U.S. Plans Non-U.S. Plans Total (in millions of U.S. dollars) 2017 Service cost $ 16 $ 4 $ 20 $ 1 $ 1 $ 2 Interest cost 26 7 33 — — — Expected return on plan assets (48 ) (10 ) (58 ) (1 ) — (1 ) Amortization of net actuarial loss — 1 1 — — — Amortization of prior service cost — — — (23 ) — (23 ) Curtailments — (8 ) (8 ) — — — Net periodic (benefit) cost $ (6 ) $ (6 ) $ (12 ) $ (23 ) $ 1 $ (22 ) 2016 Service cost $ 20 $ 4 $ 24 $ 2 $ 1 $ 3 Interest cost 27 8 35 4 — 4 Expected return on plan assets (42 ) (10 ) (52 ) (2 ) — (2 ) Amortization of net actuarial loss — 1 1 — — — Net periodic cost $ 5 $ 3 $ 8 $ 4 $ 1 $ 5 Six Months Ended June 30 Pension Benefits Other Postretirement Benefits U.S. Plans Non-U.S. Plans Total U.S. Plans Non-U.S. Plans Total (in millions of U.S. dollars) 2017 Service cost $ 32 $ 8 $ 40 $ 1 $ 1 $ 2 Interest cost 52 14 66 1 — 1 Expected return on plan assets (95 ) (20 ) (115 ) (2 ) — (2 ) Amortization of net actuarial loss — 1 1 — — — Amortization of prior service cost — — — (46 ) — (46 ) Curtailments — (8 ) (8 ) — — — Net periodic (benefit) cost $ (11 ) $ (5 ) $ (16 ) $ (46 ) $ 1 $ (45 ) 2016 Service cost $ 37 $ 9 $ 46 $ 4 $ 1 $ 5 Interest cost 54 16 70 9 — 9 Expected return on plan assets (79 ) (20 ) (99 ) (4 ) — (4 ) Amortization of net actuarial loss — 2 2 — — — Net periodic cost $ 12 $ 7 $ 19 $ 9 $ 1 $ 10 |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Operations By Segment | The following tables present the Statement of Operations by segment: North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Three Months Ended June 30, 2017 (in millions of U.S. dollars) Net premiums written $ 3,204 $ 1,255 $ 403 $ 2,006 $ 190 $ 523 $ — $ 7,581 Net premiums earned 3,099 1,093 344 2,018 168 515 — 7,237 Losses and loss expenses 1,936 683 290 964 46 182 45 4,146 Policy benefits — — — — — 163 — 163 Policy acquisition costs 464 230 27 555 43 130 — 1,449 Administrative expenses 241 66 2 243 12 77 65 706 Underwriting income (loss) 458 114 25 256 67 (37 ) (110 ) 773 Net investment income (loss) 490 56 6 148 65 77 (72 ) 770 Other (income) expense (4 ) 1 1 (3 ) 1 (12 ) (129 ) (145 ) Amortization expense of purchased intangibles — 5 7 11 — — 42 65 Segment income (loss) $ 952 $ 164 $ 23 $ 396 $ 131 $ 52 $ (95 ) $ 1,623 Net realized gains (losses) including OTTI 101 101 Interest expense 147 147 Chubb integration expenses 72 72 Income tax expense 200 200 Net income (loss) $ (413 ) $ 1,305 North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Three Months Ended June 30, 2016 (in millions of U.S. dollars) Net premiums written $ 3,245 $ 1,231 $ 375 $ 2,031 $ 230 $ 527 $ — $ 7,639 Net premiums earned 3,148 1,140 327 2,093 185 512 — 7,405 Losses and loss expenses 1,971 661 284 1,089 87 147 15 4,254 Policy benefits — — — — — 146 — 146 Policy acquisition costs 545 269 25 537 47 137 — 1,560 Administrative expenses 299 98 2 277 14 77 62 829 Underwriting income (loss) 333 112 16 190 37 5 (77 ) 616 Net investment income (loss) 468 55 5 147 65 69 (101 ) 708 Other (income) expense (9 ) 3 — (5 ) (2 ) — (16 ) (29 ) Amortization expense (benefit) of purchased intangibles — 4 8 13 — — (20 ) 5 Segment income (loss) $ 810 $ 160 $ 13 $ 329 $ 104 $ 74 $ (142 ) $ 1,348 Net realized gains (losses) including OTTI (216 ) (216 ) Interest expense 153 153 Chubb integration expenses 98 98 Income tax expense 155 155 Net income (loss) $ (764 ) $ 726 North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Six Months Ended June 30, 2017 (in millions of U.S. dollars) Net premiums written $ 5,946 $ 2,239 $ 464 $ 4,206 $ 389 $ 1,047 $ — $ 14,291 Net premiums earned 6,140 2,179 358 3,954 357 1,021 — 14,009 Losses and loss expenses 3,796 1,316 217 2,035 140 375 56 7,935 Policy benefits — — — — — 331 — 331 Policy acquisition costs 951 447 26 1,084 94 244 — 2,846 Administrative expenses 472 131 (3 ) 488 22 149 123 1,382 Underwriting income (loss) 921 285 118 347 101 (78 ) (179 ) 1,515 Net investment income (loss) 968 111 12 296 127 152 (151 ) 1,515 Other (income) expense — 2 1 (4 ) 1 (41 ) (174 ) (215 ) Amortization expense of purchased intangibles — 8 14 22 — 1 84 129 Segment income (loss) $ 1,889 $ 386 $ 115 $ 625 $ 227 $ 114 $ (240 ) $ 3,116 Net realized gains (losses) including OTTI 94 94 Interest expense 301 301 Chubb integration expenses 183 183 Income tax expense 328 328 Net income (loss) $ (958 ) $ 2,398 North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Six Months Ended June 30, 2016 (in millions of U.S. dollars) Net premiums written $ 5,547 $ 2,102 $ 439 $ 4,072 $ 431 $ 1,043 $ — $ 13,634 Net premiums earned 6,044 2,164 350 4,048 387 1,009 — 14,002 Losses and loss expenses 3,718 1,322 254 2,110 176 324 24 7,928 Policy benefits — — — — — 272 — 272 Policy acquisition costs 1,027 518 29 1,040 100 259 — 2,973 Administrative expenses 565 186 (2 ) 540 28 149 135 1,601 Underwriting income (loss) 734 138 69 358 83 5 (159 ) 1,228 Net investment income (loss) 894 102 10 293 132 136 (185 ) 1,382 Other (income) expense (9 ) 4 — (10 ) (3 ) 6 11 (1 ) Amortization expense (benefit) of purchased intangibles — 12 15 24 — 1 (40 ) 12 Segment income (loss) $ 1,637 $ 224 $ 64 $ 637 $ 218 $ 134 $ (315 ) $ 2,599 Net realized gains (losses) including OTTI (610 ) (610 ) Interest expense 299 299 Chubb integration expenses 246 246 Income tax expense 279 279 Net income (loss) $ (1,749 ) $ 1,165 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | Three Months Ended Six Months Ended June 30 June 30 (in millions of U.S. dollars, except share and per share data) 2017 2016 2017 2016 Numerator: Net income $ 1,305 $ 726 $ 2,398 $ 1,165 Denominator: Denominator for basic earnings per share: Weighted-average shares outstanding 467,981,077 467,701,328 468,244,458 457,102,802 Denominator for diluted earnings per share: Share-based compensation plans 3,872,860 3,455,969 3,900,678 3,379,559 Weighted-average shares outstanding and assumed conversions 471,853,937 471,157,297 472,145,136 460,482,361 Basic earnings per share $ 2.79 $ 1.55 $ 5.12 $ 2.55 Diluted earnings per share $ 2.77 $ 1.54 $ 5.08 $ 2.53 Potential anti-dilutive share conversions 2,066,578 2,103,281 1,467,556 2,056,018 |
Information provided in conne32
Information provided in connection with outstanding debt of subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet at June 30, 2017 (in millions of U.S. dollars) Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated Assets Investments $ 23 $ 305 $ 99,880 $ — $ 100,208 Cash (1) — 167 1,323 (193 ) 1,297 Insurance and reinsurance balances receivable — — 11,699 (2,037 ) 9,662 Reinsurance recoverable on losses and loss expenses — — 24,118 (10,760 ) 13,358 Reinsurance recoverable on policy benefits — — 1,205 (1,007 ) 198 Value of business acquired — — 337 — 337 Goodwill and other intangible assets — — 22,013 — 22,013 Investments in subsidiaries 40,553 49,982 — (90,535 ) — Due from subsidiaries and affiliates, net 10,251 — — (10,251 ) — Other assets 141 289 19,527 (4,042 ) 15,915 Total assets $ 50,968 $ 50,743 $ 180,102 $ (118,825 ) $ 162,988 Liabilities Unpaid losses and loss expenses $ — $ — $ 70,460 $ (10,066 ) $ 60,394 Unearned premiums — — 18,876 (3,587 ) 15,289 Future policy benefits — — 6,197 (1,007 ) 5,190 Due to subsidiaries and affiliates, net — 9,939 312 (10,251 ) — Affiliated notional cash pooling programs (1) 193 — — (193 ) — Repurchase agreements — — 1,408 — 1,408 Short-term debt — 922 — — 922 Long-term debt — 11,656 11 — 11,667 Trust preferred securities — 308 — — 308 Other liabilities 426 1,582 18,639 (3,186 ) 17,461 Total liabilities 619 24,407 115,903 (28,290 ) 112,639 Total shareholders’ equity 50,349 26,336 64,199 (90,535 ) 50,349 Total liabilities and shareholders’ equity $ 50,968 $ 50,743 $ 180,102 $ (118,825 ) $ 162,988 (1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Balance Sheet at December 31, 2016 (in millions of U.S. dollars) Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated Assets Investments $ 27 $ 485 $ 98,582 $ — $ 99,094 Cash (1) 1 1 1,965 (982 ) 985 Insurance and reinsurance balances receivable — — 10,498 (1,528 ) 8,970 Reinsurance recoverable on losses and loss expenses — — 24,496 (10,919 ) 13,577 Reinsurance recoverable on policy benefits — — 1,153 (971 ) 182 Value of business acquired — — 355 — 355 Goodwill and other intangible assets — — 22,095 — 22,095 Investments in subsidiaries 38,408 49,509 — (87,917 ) — Due from subsidiaries and affiliates, net 10,482 — — (10,482 ) — Other assets 3 436 18,442 (4,353 ) 14,528 Total assets $ 48,921 $ 50,431 $ 177,586 $ (117,152 ) $ 159,786 Liabilities Unpaid losses and loss expenses $ — $ — $ 70,683 $ (10,143 ) $ 60,540 Unearned premiums — — 18,538 (3,759 ) 14,779 Future policy benefits — — 6,007 (971 ) 5,036 Due to subsidiaries and affiliates, net — 10,209 273 (10,482 ) — Affiliated notional cash pooling programs (1) 363 619 — (982 ) — Repurchase agreements — — 1,403 — 1,403 Short-term debt — 500 — — 500 Long-term debt — 12,599 11 — 12,610 Trust preferred securities — 308 — — 308 Other liabilities 283 1,582 17,368 (2,898 ) 16,335 Total liabilities 646 25,817 114,283 (29,235 ) 111,511 Total shareholders’ equity 48,275 24,614 63,303 (87,917 ) 48,275 Total liabilities and shareholders’ equity $ 48,921 $ 50,431 $ 177,586 $ (117,152 ) $ 159,786 (1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2016 , 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 June 30, 2017 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 7,581 $ — $ 7,581 Net premiums earned — — 7,237 — 7,237 Net investment income 2 4 764 — 770 Equity in earnings of subsidiaries 1,253 665 — (1,918 ) — Net realized gains (losses) including OTTI (2 ) (1 ) 104 — 101 Losses and loss expenses — — 4,146 — 4,146 Policy benefits — — 163 — 163 Policy acquisition costs and administrative expenses 18 (2 ) 2,139 — 2,155 Interest (income) expense (84 ) 212 19 — 147 Other (income) expense 4 10 (159 ) — (145 ) Amortization of purchased intangibles — — 65 — 65 Chubb integration expenses 6 4 62 — 72 Income tax expense (benefit) 4 (87 ) 283 — 200 Net income $ 1,305 $ 531 $ 1,387 $ (1,918 ) $ 1,305 Comprehensive income $ 1,675 $ 920 $ 1,756 $ (2,676 ) $ 1,675 Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended June 30, 2016 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 7,639 $ — $ 7,639 Net premiums earned — — 7,405 — 7,405 Net investment income 1 3 704 — 708 Equity in earnings of subsidiaries 664 549 — (1,213 ) — Net realized gains (losses) including OTTI (1 ) (1 ) (214 ) — (216 ) Losses and loss expenses — — 4,254 — 4,254 Policy benefits — — 146 — 146 Policy acquisition costs and administrative expenses 16 96 2,277 — 2,389 Interest (income) expense (93 ) 233 13 — 153 Other (income) expense (4 ) 10 (35 ) — (29 ) Amortization of purchased intangibles — — 5 — 5 Chubb integration expenses 14 (97 ) 181 — 98 Income tax expense (benefit) 5 (37 ) 187 — 155 Net income $ 726 $ 346 $ 867 $ (1,213 ) $ 726 Comprehensive income $ 1,540 $ 1,004 $ 1,681 $ (2,685 ) $ 1,540 Condensed Consolidating Statements of Operations and Comprehensive Income For the Six Months Ended June 30, 2017 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 14,291 $ — $ 14,291 Net premiums earned — — 14,009 — 14,009 Net investment income 2 7 1,506 — 1,515 Equity in earnings of subsidiaries 2,280 1,366 — (3,646 ) — Net realized gains (losses) including OTTI (2 ) (14 ) 110 — 94 Losses and loss expenses — — 7,935 — 7,935 Policy benefits — — 331 — 331 Policy acquisition costs and administrative expenses 36 12 4,180 — 4,228 Interest (income) expense (168 ) 433 36 — 301 Other (income) expense (2 ) 25 (238 ) — (215 ) Amortization of purchased intangibles — — 129 — 129 Chubb integration expenses 6 53 124 — 183 Income tax expense (benefit) 10 (199 ) 517 — 328 Net income $ 2,398 $ 1,035 $ 2,611 $ (3,646 ) $ 2,398 Comprehensive income $ 3,082 $ 1,711 $ 3,294 $ (5,005 ) $ 3,082 Condensed Consolidating Statements of Operations and Comprehensive Income For the Six Months Ended June 30, 2016 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net premiums written $ — $ — $ 13,634 $ — $ 13,634 Net premiums earned — — 14,002 — 14,002 Net investment income 2 7 1,373 — 1,382 Equity in earnings of subsidiaries 1,039 1,055 — (2,094 ) — Net realized gains (losses) including OTTI (1 ) (1 ) (608 ) — (610 ) Losses and loss expenses — — 7,928 — 7,928 Policy benefits — — 272 — 272 Policy acquisition costs and administrative expenses 33 132 4,409 — 4,574 Interest (income) expense (173 ) 448 24 — 299 Other (income) expense (13 ) 20 (8 ) — (1 ) Amortization of purchased intangibles — — 12 — 12 Chubb integration expenses 17 40 189 — 246 Income tax expense (benefit) 11 (187 ) 455 — 279 Net income $ 1,165 $ 608 $ 1,486 $ (2,094 ) $ 1,165 Comprehensive income $ 3,081 $ 2,060 $ 3,402 $ (5,462 ) $ 3,081 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net cash flows from operating activities $ 551 $ 1,444 $ 1,686 $ (2,041 ) $ 1,640 Cash flows from investing activities Purchases of fixed maturities available for sale — (5 ) (12,255 ) — (12,260 ) Purchases of fixed maturities held to maturity — — (212 ) — (212 ) Purchases of equity securities — — (82 ) — (82 ) Sales of fixed maturities available for sale — — 6,873 — 6,873 Sales of equity securities — — 104 — 104 Maturities and redemptions of fixed maturities available for sale — 13 5,156 — 5,169 Maturities and redemptions of fixed maturities held to maturity — — 408 — 408 Net change in short-term investments — 166 188 — 354 Net derivative instruments settlements — (7 ) (122 ) — (129 ) Other — 2 (123 ) — (121 ) Net cash flows from (used for) investing activities — 169 (65 ) — 104 Cash flows from financing activities Dividends paid on Common Shares (646 ) — — — (646 ) Common Shares repurchased — — (475 ) — (475 ) Repayment of long-term debt — (500 ) — — (500 ) Proceeds from issuance of repurchase agreements — — 1,343 — 1,343 Repayment of repurchase agreements — — (1,338 ) — (1,338 ) Proceeds from share-based compensation plans — — 89 — 89 Dividend to parent company — — (2,041 ) 2,041 — Advances (to) from affiliates 264 (328 ) 64 — — Net payments to affiliated notional cash pooling programs (1) (170 ) (619 ) — 789 — Policyholder contract deposits — — 209 — 209 Policyholder contract withdrawals — — (125 ) — (125 ) Net cash flows used for financing activities (552 ) (1,447 ) (2,274 ) 2,830 (1,443 ) Effect of foreign currency rate changes on cash and cash equivalents — — 11 — 11 Net increase (decrease) in cash (1 ) 166 (642 ) 789 312 Cash – beginning of period (1) 1 1 1,965 (982 ) 985 Cash – end of period (1) $ — $ 167 $ 1,323 $ (193 ) $ 1,297 (1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 Chubb Limited (Parent Guarantor) Chubb INA Holdings Inc. (Subsidiary Issuer) Other Chubb Limited Subsidiaries Consolidating Adjustments and Eliminations Chubb Limited Consolidated (in millions of U.S. dollars) Net cash flows from operating activities $ 3,213 $ 4,050 $ 2,262 $ (7,372 ) $ 2,153 Cash flows from investing activities Purchases of fixed maturities available for sale — (83 ) (16,994 ) — (17,077 ) Purchases of fixed maturities held to maturity — — (121 ) — (121 ) Purchases of equity securities — — (78 ) — (78 ) Sales of fixed maturities available for sale — — 11,868 — 11,868 Sales of equity securities — — 932 — 932 Maturities and redemptions of fixed maturities available for sale — — 3,910 — 3,910 Maturities and redemptions of fixed maturities held to maturity — — 443 — 443 Net change in short-term investments — 7,829 3,882 — 11,711 Net derivative instruments settlements — (10 ) (83 ) — (93 ) Acquisition of subsidiaries (net of cash acquired of $71) — (14,282 ) 34 — (14,248 ) Capital contribution (2,330 ) — (2,330 ) 4,660 — Other — (3 ) 84 — 81 Net cash flows from (used for) investing activities (2,330 ) (6,549 ) 1,547 4,660 (2,672 ) Cash flows from financing activities Dividends paid on Common Shares (530 ) — — — (530 ) Proceeds from issuance of repurchase agreements — — 904 — 904 Repayment of repurchase agreements — — (902 ) — (902 ) Proceeds from share-based compensation plans, including windfall tax benefits — — 92 — 92 Dividend to parent company — — (7,372 ) 7,372 — Advances (to) from affiliates (247 ) 221 26 — — Capital contribution — 2,330 2,330 (4,660 ) — Net proceeds from (payments to) affiliated notional cash pooling programs (1) (106 ) 157 — (51 ) — Policyholder contract deposits — — 274 — 274 Policyholder contract withdrawals — — (103 ) — (103 ) Other — (4 ) — — (4 ) Net cash flows from (used for) financing activities (883 ) 2,704 (4,751 ) 2,661 (269 ) Effect of foreign currency rate changes on cash and cash equivalents — — 24 — 24 Net increase (decrease) in cash — 205 (918 ) (51 ) (764 ) Cash – beginning of period (1) 1 2 2,743 (971 ) 1,775 Cash – end of period (1) $ 1 $ 207 $ 1,825 $ (1,022 ) $ 1,011 (1) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
General Adoption of New Account
General Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax expense | $ 200 | $ 155 | $ 328 | $ 279 |
Accounting Standards Update 2016-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax expense | $ 5 | $ 30 |
General Goodwill (Details)
General Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Period Increase (Decrease) | $ 102 |
General Schedule of long-term d
General Schedule of long-term debt (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2017 | Apr. 14, 2017 | Feb. 28, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 922 | $ 500 | ||
Chubb INA Capital Securities Due 2037 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,000 | |||
Junior Subordinated Debt [Member] | Chubb INA Capital Securities Due 2037 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | 6.375% | ||
Junior Subordinated Debt [Member] | Chubb INA Capital Securities Due 2037 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Senior Notes [Member] | INA Senior Notes Due February 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | |||
Senior Notes [Member] | INA Senior Notes Due March 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 300 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.80% | |||
Senior Notes [Member] | Chubb INA Senior Notes Due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 600 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% |
Acquisitions Acquisitions (narr
Acquisitions Acquisitions (narrative) (Details) - USD ($) $ in Millions | Jan. 14, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 15,434 | $ 15,332 | ||
The Chubb Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 29,500 | |||
Cash consideration paid by Chubb Limited to common shareholders of Chubb Corp | 14,300 | |||
Equity Issued in Business Combination, Fair Value Disclosure | 15,200 | |||
Business Combination, Consideration Transferred | 29,800 | |||
Goodwill | 10,500 | |||
Additional Paid-in Capital [Member] | ||||
Business Acquisition [Line Items] | ||||
Attributed Value Equity Awards Assumed in Acquisition | (275) | $ (358) | ||
Additional Paid-in Capital [Member] | The Chubb Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Attributed Value Equity Awards Assumed in Acquisition | $ 323 | $ 0 | $ 323 |
Supplemental Financial Informat
Supplemental Financial Information for Acquisition (Details) - The Chubb Corporation [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Actual Revenue of Chubb Corp since Acquisition Date | $ 2,745 | $ 5,232 |
Actual Net Income of Chubb Corp since Acquisition Date | 326 | 581 |
Pro Forma Total Revenues | 7,915 | 15,237 |
Pro Forma Net Income | $ 712 | $ 1,246 |
Pro Forma Earnings Per Share, Basic | $ 1.52 | $ 2.67 |
Pro Forma Earnings Per Share, Diluted | $ 1.51 | $ 2.65 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Investment [Line Items] | |||||
Net unrealized depreciation included in OCI | $ 3 | $ 21 | $ 3 | $ 44 | |
Unrealized appreciation(depreciation) portion of AOCI with OTTI included in AOCI | $ 7 | $ 7 | $ 10 | ||
Percentage of mortgage-backed securities represented by investments in US government agency bonds | 81.00% | 81.00% | 81.00% | ||
Total number of fixed maturities | Security | 30,953 | 30,953 | |||
Number of equity securities in an unrealized loss position | Security | 67 | 67 | |||
Total number of equity securities | Security | 320 | 320 | |||
Largest single unrealized loss in the equity securities | $ 1 | $ 1 | |||
Restricted assets in fixed maturities and short-term investments | 21,200 | 21,200 | $ 20,100 | ||
Restricted assets in cash | $ 122 | $ 122 | $ 103 | ||
Moodys Historical Mean Recovery Rate | 42.00% | ||||
Company Assumed Recovery Rate | 32.00% | ||||
Number of fixed maturities in an unrealized loss position | Security | 7,924 | 7,924 | |||
Largest single unrealized loss in the fixed maturities | $ 5 | $ 5 | |||
Corporate [Member] | |||||
Investment [Line Items] | |||||
Credit losses recognized in net income | 1 | 7 | 2 | 24 | |
Collateralized Mortgage Backed Securities [Member] | |||||
Investment [Line Items] | |||||
Credit losses recognized in net income | $ 0 | $ 0 | $ 0 | $ 0 |
Investments Investments (Schedu
Investments Investments (Schedule Of Amortized Cost and Fair Value of Available-for-sale Securities and Related OTTI Recognized in AOCI) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | $ 80,363 | $ 79,536 |
Available-for-sale,Gross Unrealized Gain | 1,693 | 1,455 |
Available-for-sale, Gross Unrealized Depreciation | (411) | (876) |
Available for sale, Fair Value | 81,645 | 80,115 |
Available for sale, OTTI recognized in AOCI | (10) | (14) |
US Treasury and Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | 3,122 | 2,883 |
Available-for-sale,Gross Unrealized Gain | 40 | 32 |
Available-for-sale, Gross Unrealized Depreciation | (26) | (45) |
Available for sale, Fair Value | 3,136 | 2,870 |
Available for sale, OTTI recognized in AOCI | 0 | 0 |
Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | 21,139 | 20,929 |
Available-for-sale,Gross Unrealized Gain | 653 | 636 |
Available-for-sale, Gross Unrealized Depreciation | (82) | (125) |
Available for sale, Fair Value | 21,710 | 21,440 |
Available for sale, OTTI recognized in AOCI | (2) | (5) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | 24,744 | 23,736 |
Available-for-sale,Gross Unrealized Gain | 714 | 580 |
Available-for-sale, Gross Unrealized Depreciation | (94) | (167) |
Available for sale, Fair Value | 25,364 | 24,149 |
Available for sale, OTTI recognized in AOCI | (7) | (8) |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | 14,469 | 14,066 |
Available-for-sale,Gross Unrealized Gain | 148 | 135 |
Available-for-sale, Gross Unrealized Depreciation | (144) | (194) |
Available for sale, Fair Value | 14,473 | 14,007 |
Available for sale, OTTI recognized in AOCI | (1) | (1) |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | 16,889 | 17,922 |
Available-for-sale,Gross Unrealized Gain | 138 | 72 |
Available-for-sale, Gross Unrealized Depreciation | (65) | (345) |
Available for sale, Fair Value | 16,962 | 17,649 |
Available for sale, OTTI recognized in AOCI | $ 0 | $ 0 |
Investments (Schedule Of Amorti
Investments (Schedule Of Amortized Cost And Fair Value Of HTM Fixed Maturities And Related OTTI Recognized In Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Held to maturity, Amortized Cost | $ 10,371 | $ 10,644 |
Held to maturity, Gross Unrealized Appreciation | 207 | 148 |
Held to maturity, Gross Unrealized Depreciation | (18) | (122) |
Held to maturity, at Fair Value | 10,560 | 10,670 |
U.S. Treasury And Agency [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 602 | 655 |
Held to maturity, Gross Unrealized Appreciation | 13 | 9 |
Held to maturity, Gross Unrealized Depreciation | (2) | (3) |
Held to maturity, at Fair Value | 613 | 661 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Foreign [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 613 | 640 |
Held to maturity, Gross Unrealized Appreciation | 29 | 28 |
Held to maturity, Gross Unrealized Depreciation | 0 | (1) |
Held to maturity, at Fair Value | 642 | 667 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Corporate [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 2,645 | 2,771 |
Held to maturity, Gross Unrealized Appreciation | 62 | 50 |
Held to maturity, Gross Unrealized Depreciation | (7) | (26) |
Held to maturity, at Fair Value | 2,700 | 2,795 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Collateralized Mortgage Backed Securities [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 1,268 | 1,393 |
Held to maturity, Gross Unrealized Appreciation | 37 | 35 |
Held to maturity, Gross Unrealized Depreciation | (1) | 0 |
Held to maturity, at Fair Value | 1,304 | 1,428 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
States, Municipalities, And Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 5,243 | 5,185 |
Held to maturity, Gross Unrealized Appreciation | 66 | 26 |
Held to maturity, Gross Unrealized Depreciation | (8) | (92) |
Held to maturity, at Fair Value | 5,301 | 5,119 |
Held to maturity, OTTI recognized in AOCI | $ 0 | $ 0 |
Investments (Schedule Of Fixed
Investments (Schedule Of Fixed Maturities By Contractual Maturity) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale, Due in 1 year or less, Amortized Cost | $ 3,799 | $ 3,892 |
Available for sale, Due after 1 year through 5 years, Amortized Cost | 23,748 | 24,027 |
Available for sale, Due after 5 years though 10 years, Amortized Cost | 28,040 | 27,262 |
Available for sale, Due after 10 years, Amortized Cost | 10,307 | 10,289 |
Available for sale, Subtotal, Amortized Cost | 65,894 | 65,470 |
Available for sale, Mortgage-backed securities, Amortized Cost | 14,469 | 14,066 |
Available for sale, at amortized cost | 80,363 | 79,536 |
Available for sale, Due in 1 year or less, Fair Value | 3,823 | 3,913 |
Available for sale, Due after 1 year through 5 years, Fair Value | 24,207 | 24,429 |
Available for sale, Due after 5 years through 10 years, Fair Value | 28,498 | 27,379 |
Available for sale, Due after 10 years, Fair Value | 10,644 | 10,387 |
Available for sale, Subtotal, Fair Value | 67,172 | 66,108 |
Available for sale, Mortgage backed securities, Fair Value | 14,473 | 14,007 |
Available for sale, Fair Value | 81,645 | 80,115 |
Held to maturity, Due in 1 year or less, Amortized Cost | 807 | 430 |
Held to maturity, Due after 1 year through 5 years, Amortized Cost | 2,353 | 2,646 |
Held to maturity, Due after 5 years through 10 years, Amortized Cost | 3,001 | 2,969 |
Held to maturity, Due after 10 years, Amortized Cost | 2,942 | 3,206 |
Held to maturity, Subtotal, Amortized Cost | 9,103 | 9,251 |
Held to maturity, Mortgage backed securities, Amortized Cost | 1,268 | 1,393 |
Held to maturity, Amortized Cost | 10,371 | 10,644 |
Held to maturity, Due in 1 year or less, Fair Value | 814 | 435 |
Held to maturity, Due after 1 year through 5, Fair Value | 2,396 | 2,691 |
Held to maturity, Due after 5 years through 10 years, Fair Value | 3,045 | 2,944 |
Held to maturity, Due after 10 years, Fair Value | 3,001 | 3,172 |
Held to maturity, Subtotal, Fair Value | 9,256 | 9,242 |
Held to maturity, Mortgage backed securities, Fair Value | 1,304 | 1,428 |
Held to maturity, Fair Value | $ 10,560 | $ 10,670 |
Investments (Schedule Of Cost A
Investments (Schedule Of Cost And Fair Value Of Equity Securities) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 697 | $ 706 |
Gross unrealized appreciation | 164 | 129 |
Gross unrealized depreciation | (5) | (21) |
Equity securities, at fair value | $ 856 | $ 814 |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gain (Loss) on Investments [Line Items] | ||||
Other-than-temporary impairment (OTTI) losses gross | $ (9) | $ (16) | $ (28) | $ (87) |
OTTI on fixed maturities recognized in OCI (pre-tax) | 1 | 0 | 1 | 8 |
Foreign exchange gains (losses) | 14 | (22) | (5) | 17 |
Derivative instrument | 63 | (206) | 90 | (490) |
Fair Value Adjustments On Insurance Derivative Gains Losses | 118 | (131) | 211 | (359) |
Net realized gains (losses) | 101 | (216) | 94 | (610) |
Investment and embedded derivative instruments | ||||
Gain (Loss) on Investments [Line Items] | ||||
Derivative instrument | (16) | (47) | (10) | (86) |
S&P put options and futures | ||||
Gain (Loss) on Investments [Line Items] | ||||
Derivative instrument | (38) | (28) | (112) | (43) |
Other derivative instruments | ||||
Gain (Loss) on Investments [Line Items] | ||||
Derivative instrument | (1) | 0 | 1 | (2) |
Other Investments [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
OTTI on equity securities | (1) | 0 | (9) | (3) |
Other | 0 | 10 | 1 | 16 |
Equity Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
OTTI on equity securities | (3) | (5) | (8) | (6) |
Equity Securities, Gross realized gains excluding OTTI | 6 | 4 | 15 | 44 |
Equity Securities, Gross realized losses excluding OTTI | (1) | (4) | (1) | (5) |
Total equity securities | 2 | (5) | 6 | 33 |
Fixed Maturities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Other-than-temporary impairment (OTTI) losses gross | (5) | (11) | (11) | (78) |
OTTI on fixed maturities recognized in OCI (pre-tax) | 1 | 0 | 1 | 8 |
OTTI on fixed maturities, net | (4) | (11) | (10) | (70) |
Fixed maturities, Gross realized gains excluding OTTI | 45 | 37 | 79 | 102 |
Fixed maturities, Gross realized losses excluding OTTI | (18) | (19) | (58) | (215) |
Total fixed maturities | $ 23 | $ 7 | $ 11 | $ (183) |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
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 | $ 32 | $ 57 | $ 35 | $ 53 |
Additions where no OTTI was previously recorded | 1 | 1 | 1 | 12 |
Additions where an OTTI was previously recorded | 0 | 6 | 1 | 12 |
Reductions for securities sold during the period | (4) | (13) | (8) | (26) |
Balance of credit losses related to securities still held – end of period | $ 29 | $ 51 | $ 29 | $ 51 |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Fair Value, 0-12 Months | $ 27,692 | $ 43,641 |
Gross Unrealized Loss, 0-12 Months | (375) | (959) |
Fair Value, Over 12 Months | 1,271 | 1,310 |
Gross Unrealized Loss, Over 12 Months | (63) | (78) |
Total Fair Value | 28,963 | 44,951 |
Total Gross Unrealized Loss | (438) | (1,037) |
U.S. Treasury And Agency [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 2,021 | 2,216 |
Gross Unrealized Loss, 0-12 Months | (28) | (48) |
Fair Value, Over 12 Months | 0 | 0 |
Gross Unrealized Loss, Over 12 Months | 0 | 0 |
Total Fair Value | 2,021 | 2,216 |
Total Gross Unrealized Loss | (28) | (48) |
Foreign [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 4,381 | 5,918 |
Gross Unrealized Loss, 0-12 Months | (57) | (99) |
Fair Value, Over 12 Months | 599 | 386 |
Gross Unrealized Loss, Over 12 Months | (25) | (27) |
Total Fair Value | 4,980 | 6,304 |
Total Gross Unrealized Loss | (82) | (126) |
Corporate [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 4,410 | 7,021 |
Gross Unrealized Loss, 0-12 Months | (72) | (149) |
Fair Value, Over 12 Months | 372 | 641 |
Gross Unrealized Loss, Over 12 Months | (29) | (44) |
Total Fair Value | 4,782 | 7,662 |
Total Gross Unrealized Loss | (101) | (193) |
Collateralized Mortgage Backed Securities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 7,657 | 8,638 |
Gross Unrealized Loss, 0-12 Months | (141) | (189) |
Fair Value, Over 12 Months | 118 | 234 |
Gross Unrealized Loss, Over 12 Months | (4) | (5) |
Total Fair Value | 7,775 | 8,872 |
Total Gross Unrealized Loss | (145) | (194) |
States, Municipalities, And Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 9,049 | 19,448 |
Gross Unrealized Loss, 0-12 Months | (68) | (435) |
Fair Value, Over 12 Months | 182 | 49 |
Gross Unrealized Loss, Over 12 Months | (5) | (2) |
Total Fair Value | 9,231 | 19,497 |
Total Gross Unrealized Loss | (73) | (437) |
Fixed Maturities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 27,518 | 43,241 |
Gross Unrealized Loss, 0-12 Months | (366) | (920) |
Fair Value, Over 12 Months | 1,271 | 1,310 |
Gross Unrealized Loss, Over 12 Months | (63) | (78) |
Total Fair Value | 28,789 | 44,551 |
Total Gross Unrealized Loss | (429) | (998) |
Equity Securities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 104 | 199 |
Gross Unrealized Loss, 0-12 Months | (5) | (21) |
Fair Value, Over 12 Months | 0 | 0 |
Gross Unrealized Loss, Over 12 Months | 0 | 0 |
Total Fair Value | 104 | 199 |
Total Gross Unrealized Loss | (5) | (21) |
Other Long-term Investments [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 70 | 201 |
Gross Unrealized Loss, 0-12 Months | (4) | (18) |
Fair Value, Over 12 Months | 0 | 0 |
Gross Unrealized Loss, Over 12 Months | 0 | 0 |
Total Fair Value | 70 | 201 |
Total Gross Unrealized Loss | $ (4) | $ (18) |
Investments (Schedule Of Compon
Investments (Schedule Of Components Of Restricted Assets) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Trust funds | $ 14,938 | $ 13,880 |
Deposits with U.S. regulatory authorities | 2,325 | 2,203 |
Deposits with non-U.S. regulatory authorities | 2,170 | 2,191 |
Assets pledged under repurchase agreements | 1,472 | 1,461 |
Other pledged assets | 371 | 435 |
Total restricted assets | $ 21,276 | $ 20,170 |
Fair value measurements Fair Va
Fair value measurements Fair Value Measurements (narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value, Level 1 to Level 2 transfers, Amount | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value, Level 2 to Level 1 Transfers, Amount | 0 | $ 0 | $ 0 | $ 0 |
Realized Gain Losses As A Result of Annuitization Changes | $ 94 | |||
Minimum [Member] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Notice Period For Redemption For Alternative Investments Investment Funds | 5 days | |||
Maximum [Member] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Notice Period For Redemption For Alternative Investments Investment Funds | 120 days |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | [1] | Dec. 31, 2016 | Jun. 30, 2016 | [1],[2] | Mar. 31, 2016 | [2] | Dec. 31, 2015 | [1],[2] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | $ 81,645 | $ 80,115 | ||||||||||
Equity securities, at fair value | 856 | 814 | ||||||||||
Other Investments | 4,685 | 4,519 | ||||||||||
Securities lending collateral | 1,545 | 1,092 | ||||||||||
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Other Investments | 3,711 | 3,626 | ||||||||||
Other Investments [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Other Investments | 19 | 25 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 81,645 | 80,115 | ||||||||||
Equity securities, at fair value | 856 | 814 | ||||||||||
Short-term investments | 2,651 | 3,002 | ||||||||||
Other Investments | 955 | 868 | ||||||||||
Securities lending collateral | 1,545 | 1,092 | ||||||||||
Investment derivative instruments, assets | 12 | 31 | ||||||||||
Other Derivative Instruments Fair Value | 9 | 3 | ||||||||||
Separate Account Assets | 2,248 | 1,879 | ||||||||||
Total assets measured at fair value | 89,921 | 87,804 | ||||||||||
Investment derivative instruments, liabilities | 35 | 54 | ||||||||||
Other derivative instruments, liability | 2 | 13 | ||||||||||
Liabilities, Fair Value Disclosure, Recurring | 394 | 626 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 877 | 800 | ||||||||||
Equity securities, at fair value | 39 | 41 | ||||||||||
Short-term investments | 7 | 25 | ||||||||||
Other Investments | 243 | 225 | ||||||||||
Total assets measured at fair value | 1,166 | 1,091 | ||||||||||
Other derivative instruments, liability | 2 | 13 | ||||||||||
Liabilities, Fair Value Disclosure, Recurring | 359 | 572 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 2,486 | 2,175 | ||||||||||
Equity securities, at fair value | 817 | 773 | ||||||||||
Short-term investments | 1,421 | 1,757 | ||||||||||
Other Investments | 430 | 384 | ||||||||||
Investment derivative instruments, assets | 12 | 31 | ||||||||||
Other Derivative Instruments Fair Value | 9 | 3 | ||||||||||
Separate Account Assets | 2,147 | 1,784 | ||||||||||
Total assets measured at fair value | 7,322 | 6,907 | ||||||||||
Investment derivative instruments, liabilities | 35 | 54 | ||||||||||
Liabilities, Fair Value Disclosure, Recurring | 35 | 54 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 78,282 | 77,140 | ||||||||||
Short-term investments | 1,223 | 1,220 | ||||||||||
Other Investments | 282 | 259 | ||||||||||
Securities lending collateral | 1,545 | 1,092 | ||||||||||
Separate Account Assets | 101 | 95 | ||||||||||
Total assets measured at fair value | 81,433 | 79,806 | ||||||||||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury And Agency [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 3,136 | 2,870 | ||||||||||
Fair Value, Measurements, Recurring [Member] | 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 | 2,486 | 2,175 | ||||||||||
Fair Value, Measurements, Recurring [Member] | 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 | 650 | 695 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Foreign [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 21,710 | 21,440 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Foreign [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 85 | 74 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Foreign [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 21,625 | 21,366 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 25,364 | 24,149 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 747 | 681 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 24,617 | 23,468 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 14,473 | 14,007 | ||||||||||
Fair Value, Measurements, Recurring [Member] | 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 | 45 | 45 | ||||||||||
Fair Value, Measurements, Recurring [Member] | 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 | 14,428 | 13,962 | ||||||||||
Fair Value, Measurements, Recurring [Member] | States, Municipalities, And Political Subdivisions [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Available for sale, Fair Value | 16,962 | 17,649 | ||||||||||
Fair Value, Measurements, Recurring [Member] | 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 | 16,962 | 17,649 | ||||||||||
Guaranteed Minimum Income Benefit [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 357 | [1] | $ 466 | 559 | [1] | $ 971 | $ 839 | $ 609 | ||||
Guaranteed Minimum Income Benefit [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 357 | 559 | ||||||||||
Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 357 | [3] | 559 | |||||||||
Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 559 | |||||||||||
[1] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million, respectively. | |||||||||||
[2] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months EndedAvailable-for-Sale Debt SecuritiesEquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)June 30, 2017Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$74 $681 $45 $41$25$225 $13$559Transfers into Level 3— 57 — ——— —9Transfers out of Level 3— (67) — ——— (9)—Change in Net Unrealized Gains (Losses) included in OCI2 (8) — 1—3 ——Net Realized Gains/Losses1 (1) — ——— (2)(211)Purchases33 221 1 61424 ——Sales(22) (55) (1) (9)—— ——Settlements(3) (81) — —(32)(9) ——Balance – end of period$85 $747 $45 $39$7$243 $2$357Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$— $— $— $—$—$— $(2)$(211)(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively. Assets LiabilitiesSix Months EndedAvailable-for-Sale Debt Securities Equitysecurities Short-term investments Otherinvestments Other derivative instruments GLB(1)June 30, 2016Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$57 $174 $53 $16 $— $212 $6 $609Transfers into Level 39 18 — — — — — —Transfers out of Level 3(2) — — — — — — —Change in Net Unrealized Gains (Losses) included in OCI9 11 — (1) — — — —Net Realized Gains/Losses(6) (8) — 1 — — 2 362Purchases (2)32 124 1 23 50 14 2 —Sales(8) (30) (5) (2) — — — —Settlements(4) (8) — — — (10) — —Balance – end of period$87 $281 $49 $37 $50 $216 $10 $971Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(7) $— $— $— $— $2 $362(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition. | |||||||||||
[3] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value And Maximum Future Funding Commitments Related To Investments) (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 1,852 | $ 2,040 |
Fair Value | 3,711 | 3,627 |
Financial [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | 354 | 428 |
Fair Value | $ 576 | $ 548 |
Financial [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 5 years | 5 years |
Financial [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 9 years | 9 years |
Real Assets [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 181 | $ 230 |
Fair Value | $ 622 | $ 536 |
Real Assets [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 3 years | 3 years |
Real Assets [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 7 years | 7 years |
Distressed [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 175 | $ 179 |
Fair Value | $ 350 | $ 485 |
Distressed [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 5 years | 5 years |
Distressed [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 9 years | 9 years |
Private Credit [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 337 | $ 259 |
Fair Value | $ 238 | $ 236 |
Private Credit [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 3 years | 3 years |
Private Credit [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 7 years | 7 years |
Traditional [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 805 | $ 930 |
Fair Value | $ 1,646 | $ 1,550 |
Traditional [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 3 years | 3 years |
Traditional [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 9 years | 9 years |
Vintage [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 14 | |
Fair Value | $ 19 | $ 21 |
Vintage [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 1 year | 1 year |
Vintage [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 2 years | 2 years |
Investment Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 260 | $ 251 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) - USD ($) $ in Millions | 6 Months Ended | ||||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | [2] | Dec. 31, 2016 | Jun. 30, 2016 | [2],[3] | Mar. 31, 2016 | [3] | Dec. 31, 2015 | [2],[3] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||
Fair Value Measurements, Valuation Techniques | [1] | Actuarial model | |||||||||||
Minimum [Member] | |||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate | [1] | 3.00% | |||||||||||
Significant Unobservable Inputs Annuitization Rate | [1] | 0.00% | |||||||||||
Maximum [Member] | |||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate | [1] | 34.00% | |||||||||||
Significant Unobservable Inputs Annuitization Rate | [1] | 78.00% | |||||||||||
Guaranteed Minimum Income Benefit [Member] | |||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 357 | [2] | $ 466 | $ 559 | [2] | $ 971 | $ 839 | $ 609 | |||||
Guaranteed Minimum Income Benefit [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 357 | 559 | |||||||||||
Guaranteed Minimum Income Benefit [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 559 | ||||||||||||
[1] | Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits. | ||||||||||||
[2] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 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 derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months EndedAvailable-for-Sale Debt SecuritiesEquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)June 30, 2017Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$74 $681 $45 $41$25$225 $13$559Transfers into Level 3— 57 — ——— —9Transfers out of Level 3— (67) — ——— (9)—Change in Net Unrealized Gains (Losses) included in OCI2 (8) — 1—3 ——Net Realized Gains/Losses1 (1) — ——— (2)(211)Purchases33 221 1 61424 ——Sales(22) (55) (1) (9)—— ——Settlements(3) (81) — —(32)(9) ——Balance – end of period$85 $747 $45 $39$7$243 $2$357Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$— $— $— $—$—$— $(2)$(211)(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively. Assets LiabilitiesSix Months EndedAvailable-for-Sale Debt Securities Equitysecurities Short-term investments Otherinvestments Other derivative instruments GLB(1)June 30, 2016Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$57 $174 $53 $16 $— $212 $6 $609Transfers into Level 39 18 — — — — — —Transfers out of Level 3(2) — — — — — — —Change in Net Unrealized Gains (Losses) included in OCI9 11 — (1) — — — —Net Realized Gains/Losses(6) (8) — 1 — — 2 362Purchases (2)32 124 1 23 50 14 2 —Sales(8) (30) (5) (2) — — — —Settlements(4) (8) — — — (10) — —Balance – end of period$87 $281 $49 $37 $50 $216 $10 $971Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(7) $— $— $— $— $2 $362(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured At Fair Value Using Significant Unobservable Inputs) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | $ 41 | $ 29 | $ 41 | $ 16 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 1 | (1) | 1 | (1) |
Net Realized Gains/ (Losses), Assets | 0 | 1 | 0 | 1 |
Purchases, Assets | 6 | 10 | 6 | 23 |
Sales, Assets | (9) | (2) | (9) | (2) |
Settlements, Assets | 0 | 0 | 0 | 0 |
Balance-End of Period, Assets | 39 | 37 | 39 | 37 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Short-term Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 21 | 0 | 25 | 0 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Net Realized Gains/ (Losses), Assets | 0 | 0 | 0 | 0 |
Purchases, Assets | 7 | 50 | 14 | 50 |
Sales, Assets | 0 | 0 | 0 | 0 |
Settlements, Assets | (21) | 0 | (32) | 0 |
Balance-End of Period, Assets | 7 | 50 | 7 | 50 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | |
Other Long-term Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 233 | 211 | 225 | 212 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | (1) | 0 | 3 | 0 |
Net Realized Gains/ (Losses), Assets | 0 | 0 | 0 | 0 |
Purchases, Assets | 16 | 8 | 24 | 14 |
Sales, Assets | 0 | 0 | 0 | 0 |
Settlements, Assets | (5) | (3) | (9) | (10) |
Balance-End of Period, Assets | 243 | 216 | 243 | 216 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Available-for-sale Securities [Member] | Foreign Government Debt Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 80 | 62 | 74 | 57 |
Transfers Into Level 3, Asset | 0 | 3 | 0 | 9 |
Transfers out of Level 3, Assets | 0 | 0 | (2) | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 3 | 3 | 2 | 9 |
Net Realized Gains/ (Losses), Assets | 2 | (1) | 1 | (6) |
Purchases, Assets | 19 | 27 | 33 | 32 |
Sales, Assets | (19) | (7) | (22) | (8) |
Settlements, Assets | 0 | 0 | (3) | (4) |
Balance-End of Period, Assets | 85 | 87 | 85 | 87 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | (1) | 0 | (5) |
Available-for-sale Securities [Member] | Corporate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 737 | 261 | 681 | 174 |
Transfers Into Level 3, Asset | 28 | 2 | 57 | 18 |
Transfers out of Level 3, Assets | (13) | (67) | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 9 | (8) | 11 |
Net Realized Gains/ (Losses), Assets | 0 | (2) | (1) | (8) |
Purchases, Assets | 65 | 31 | 221 | 124 |
Sales, Assets | (28) | (16) | (55) | (30) |
Settlements, Assets | (42) | (4) | (81) | (8) |
Balance-End of Period, Assets | 747 | 281 | 747 | 281 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | (7) |
Available-for-sale Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance- Beginning of Period, Assets | 45 | 48 | 45 | 53 |
Transfers Into Level 3, Asset | 0 | 0 | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Net Realized Gains/ (Losses), Assets | 0 | 0 | 0 | 0 |
Purchases, Assets | 0 | 1 | 1 | 1 |
Sales, Assets | 0 | 0 | (1) | (5) |
Settlements, Assets | 0 | 0 | 0 | 0 |
Balance-End of Period, Assets | 45 | 49 | 45 | 49 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Fair value measurements Fair 52
Fair value measurements Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | ||||||
Guaranteed Minimum Income Benefit [Member] | |||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||
Reported liabilities | $ 684 | $ 1,300 | $ 684 | $ 1,300 | $ 774 | $ 853 | $ 1,100 | $ 888 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||
Balance - Beginning of Period, Liabilities | 466 | [1] | 839 | [2] | 559 | [1] | 609 | [1],[2] | |||||
Transfers into level 3, liability | 9 | 0 | 9 | 0 | |||||||||
Transfers out of Level 3, Liabilities | 0 | 0 | 0 | ||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | 0 | 0 | 0 | |||||||||
Net Realized Gains/Losses, Liabilities | (118) | 132 | [2] | (211) | 362 | [2] | |||||||
Purchases, Liabilities | 0 | 0 | 0 | 0 | |||||||||
Sales, Liabilities | 0 | 0 | 0 | 0 | |||||||||
Settlements, Liabilities | 0 | 0 | 0 | 0 | |||||||||
Balance - End of Period, Liabilities | [1] | 357 | 971 | [2] | 357 | 971 | [2] | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (118) | 132 | (211) | 362 | |||||||||
Other Derivative Instruments Fair Value [Member] | |||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||
Balance - Beginning of Period, Liabilities | 11 | 10 | 13 | 6 | |||||||||
Transfers into level 3, liability | 0 | 0 | 0 | 0 | |||||||||
Transfers out of Level 3, Liabilities | (9) | (9) | 0 | ||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | 0 | 0 | 0 | |||||||||
Net Realized Gains/Losses, Liabilities | 0 | 0 | (2) | 2 | |||||||||
Purchases, Liabilities | 0 | 0 | 0 | 2 | |||||||||
Sales, Liabilities | 0 | 0 | 0 | 0 | |||||||||
Settlements, Liabilities | 0 | 0 | 0 | 0 | |||||||||
Balance - End of Period, Liabilities | 2 | 10 | 2 | 10 | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ 0 | $ (2) | $ 2 | |||||||||
[1] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $774 million at March 31, 2017, which includes a fair value derivative adjustment of $357 million and $466 million, respectively. | ||||||||||||
[2] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016, and $1.1 billion at March 31, 2016, which includes a fair value derivative adjustment of $971 million and $839 million, respectively. Assets Liabilities Six Months EndedAvailable-for-Sale Debt SecuritiesEquitysecuritiesShort-term investmentsOtherinvestments OtherderivativeinstrumentsGLB(1)June 30, 2017Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$74 $681 $45 $41$25$225 $13$559Transfers into Level 3— 57 — ——— —9Transfers out of Level 3— (67) — ——— (9)—Change in Net Unrealized Gains (Losses) included in OCI2 (8) — 1—3 ——Net Realized Gains/Losses1 (1) — ——— (2)(211)Purchases33 221 1 61424 ——Sales(22) (55) (1) (9)—— ——Settlements(3) (81) — —(32)(9) ——Balance – end of period$85 $747 $45 $39$7$243 $2$357Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$— $— $— $—$—$— $(2)$(211)(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $684 million at June 30, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $357 million and $559 million, respectively. Assets LiabilitiesSix Months EndedAvailable-for-Sale Debt Securities Equitysecurities Short-term investments Otherinvestments Other derivative instruments GLB(1)June 30, 2016Foreign Corporatesecurities MBS (in millions of U.S. dollars) Balance – beginning of period$57 $174 $53 $16 $— $212 $6 $609Transfers into Level 39 18 — — — — — —Transfers out of Level 3(2) — — — — — — —Change in Net Unrealized Gains (Losses) included in OCI9 11 — (1) — — — —Net Realized Gains/Losses(6) (8) — 1 — — 2 362Purchases (2)32 124 1 23 50 14 2 —Sales(8) (30) (5) (2) — — — —Settlements(4) (8) — — — (10) — —Balance – end of period$87 $281 $49 $37 $50 $216 $10 $971Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date$(5) $(7) $— $— $— $— $2 $362(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $1.3 billion at June 30, 2016, and $888 million at December 31, 2015, which includes a fair value derivative adjustment of $971 million and $609 million, respectively.(2) Includes acquired invested assets as a result of the Chubb Corp acquisition. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | $ 10,560 | $ 10,670 |
Held-to-maturity Securities | 10,371 | 10,644 |
Repurchase agreements | 1,408 | 1,403 |
Short-term debt | 922 | 500 |
Long-term debt | 11,667 | 12,610 |
Trust preferred securities | 308 | 308 |
Total liabilities | 112,639 | 111,511 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 528 | 555 |
Repurchase agreements | 0 | 0 |
Short-term Debt, Fair Value | 0 | 0 |
Long-term Debt, Fair Value | 0 | 0 |
Trust preferred securities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 10,020 | 10,102 |
Repurchase agreements | 1,408 | 1,403 |
Short-term Debt, Fair Value | 931 | 503 |
Long-term Debt, Fair Value | 12,366 | 12,998 |
Trust preferred securities | 462 | 456 |
Total liabilities | 15,167 | 15,360 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 12 | 13 |
Repurchase agreements | 0 | 0 |
Short-term Debt, Fair Value | 0 | 0 |
Long-term Debt, Fair Value | 0 | 0 |
Trust preferred securities | 0 | 0 |
Total liabilities | 0 | 0 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 528 | 555 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 85 | 106 |
U.S. Treasury And Agency [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Foreign [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Foreign [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 642 | 667 |
Foreign [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Corporate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Corporate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 2,688 | 2,782 |
Corporate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 12 | 13 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 1,304 | 1,428 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 5,301 | 5,119 |
States, Municipalities, And Political Subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 10,560 | 10,670 |
Repurchase agreements | 1,408 | 1,403 |
Short-term Debt, Fair Value | 931 | 503 |
Long-term Debt, Fair Value | 12,366 | 12,998 |
Trust preferred securities | 462 | 456 |
Total liabilities | 15,167 | 15,360 |
Estimate of Fair Value Measurement [Member] | U.S. Treasury And Agency [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 613 | 661 |
Estimate of Fair Value Measurement [Member] | Foreign [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 642 | 667 |
Estimate of Fair Value Measurement [Member] | Corporate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 2,700 | 2,795 |
Estimate of Fair Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 1,304 | 1,428 |
Estimate of Fair Value Measurement [Member] | States, Municipalities, And Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 5,301 | 5,119 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 10,371 | 10,644 |
Repurchase agreements | 1,408 | 1,403 |
Short-term debt | 922 | 500 |
Long-term debt | 11,667 | 12,610 |
Trust preferred securities | 308 | 308 |
Total liabilities | 14,305 | 14,821 |
Reported Value Measurement [Member] | U.S. Treasury And Agency [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 602 | 655 |
Reported Value Measurement [Member] | Foreign [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 613 | 640 |
Reported Value Measurement [Member] | Corporate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 2,645 | 2,771 |
Reported Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 1,268 | 1,393 |
Reported Value Measurement [Member] | States, Municipalities, And Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | $ 5,243 | $ 5,185 |
Unpaid losses and loss expens54
Unpaid losses and loss expenses Unpaid losses and loss expenses (RF Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jan. 14, 2016 | |
Unpaid Losses and Loss Expenses [Roll Forward] | ||||
Gross unpaid losses and loss expenses, beginning of year | $ 60,540 | $ 37,303 | ||
Reinsurance Recoverable on unpaid losses, beginning of year | (12,708) | (10,741) | ||
Net unpaid loss, beginning of period | 47,832 | 26,562 | ||
Acquisition of subsidiaries | $ 0 | $ 21,398 | ||
Total, Beginning of year | 47,832 | 47,960 | ||
Current Year Claims and Claims Adjustment Expense | 8,396 | 8,529 | ||
PPD (Favorable) / Adverse | (461) | (601) | ||
Total, Incurred | 7,935 | 7,928 | ||
Net loss and loss expenses paid, Current Year | 2,271 | 1,964 | ||
Net losses and loss expenses Paid, Prior Years | 5,758 | 5,541 | ||
Total, Paid | 8,029 | 7,505 | ||
Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Revaluation And Other | 171 | 40 | ||
Net unpaid Loss, end of period | 47,909 | 48,423 | ||
Reinsurance Recoverables on unpaid losses, end of year | 12,485 | 12,396 | ||
Gross unpaid losses and loss expenses, end of year | 60,394 | 60,819 | ||
prior period development, net adjustments | $ 60 | $ 53 |
Unpaid losses and loss expens55
Unpaid losses and loss expenses Unpaid losses and loss expenses (narrative details) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | $ (461) | $ (601) | ||
North America Commercial P&C Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | $ (131) | $ (168) | (310) | (346) |
North America Commercial P&C Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (101) | (167) | (200) | (309) |
North America Commercial P&C Insurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (30) | (110) | (37) | |
North America Commercial P&C Insurance [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (83) | (114) | (84) | (114) |
North America Commercial P&C Insurance [Member] | Primary casualty GL [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (24) | |||
North America Commercial P&C Insurance [Member] | construction defects [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 26 | |||
North America Commercial P&C Insurance [Member] | Accident Year 2016 [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (57) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2015 and prior [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (40) | |||
North America Commercial P&C Insurance [Member] | Accident years 2008 - 2013 [Member] | Commercial Multi-peril and General Liability [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (37) | (37) | ||
North America Commercial P&C Insurance [Member] | Accident years 2014 and 2016 [Member] | Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (33) | |||
North America Commercial P&C Insurance [Member] | Accident years 2014 - 2016 [Member] | Commercial Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (29) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2010 and Prior [Member] | Commercial Excess and Umbrella [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (74) | (145) | ||
North America Commercial P&C Insurance [Member] | Accident year 2012 and 2013 [Member] | Professional Malpractice Liability Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (25) | |||
North America Commercial P&C Insurance [Member] | Accident year 2011 and prior [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (59) | |||
North America Commercial P&C Insurance [Member] | Accident year 2015 and 2016 [Member] | Accident and Health Insurance Product Line [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (24) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2015 [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (40) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2015 [Member] | Credit related business [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (45) | |||
North America Commercial P&C Insurance [Member] | Accident year 2007 - 2014 [Member] | Commercial Multi-peril and General Liability [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (50) | (50) | ||
North America Commercial P&C Insurance [Member] | Accident year 2003 [Member] | Professional Malpractice Liability Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (20) | |||
North America Commercial P&C Insurance [Member] | Accident years 2012 and prior [Member] | Professional Malpractice Liability Insurance [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (63) | |||
North America Commercial P&C Insurance [Member] | Accident Year 2013 [Member] | Credit related business [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (24) | |||
North America Personal P&C Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 37 | (15) | 34 | (18) |
North America Agricultural Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 0 | 0 | (79) | (41) |
Overseas General Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (88) | (85) | (76) | (115) |
Overseas General Insurance [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (88) | (84) | (108) | |
Overseas General Insurance [Member] | Energy and Technical Risk Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (32) | |||
Overseas General Insurance [Member] | Accident year 2013 to 2015 [Member] | Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (38) | |||
Overseas General Insurance [Member] | Accident year 2013 to 2015 [Member] | Property and Inland Marine [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (37) | |||
Overseas General Insurance [Member] | Accident years 2014 - 2016 [Member] | Energy and Technical Risk Property [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (26) | |||
Overseas General Insurance [Member] | Accident years 2014 - 2016 [Member] | Accident and Health Insurance Product Line [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (19) | |||
Overseas General Insurance [Member] | Accident years 2016 and prior [Member] | Casualty [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 32 | |||
Global Reinsurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (31) | (47) | (23) | (50) |
Global Reinsurance [Member] | Casualty & Professional [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (27) | |||
Global Reinsurance [Member] | Accident year 2011 and prior [Member] | Casualty & Professional [Member] | Short Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (36) | |||
Global Reinsurance [Member] | Accident year 2011 and prior [Member] | Casualty [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | (41) | |||
Global Reinsurance [Member] | Accident Year 2015 [Member] | Auto Liability Excess Lines [Member] | Long Tail [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 9 | |||
Corporate Segment [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 43 | $ 14 | 53 | $ 22 |
Corporate Segment [Member] | Discontinued Operations [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | 8 | $ 18 | ||
Corporate Segment [Member] | non-A&E run-off [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
PPD (Favorable) / Adverse | $ 35 |
Commitments, Contingencies, A56
Commitments, Contingencies, And Guarantees (Narrative) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 675 | |
Derivative liability subject to a master netting agreement | 8 | $ 10 |
Unrecognized tax benefits | 15 | |
Repurchase agreements | 1,408 | $ 1,403 |
Funding commitments relating to limited partnerships and partially-owned investment companies | 1,900 | |
Carrying value of limited partnerships and partially-owned investment companies included in other investments | $ 3,500 |
Commitments, Contingencies, A57
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 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Foreign currency forward contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | $ 2,201 | $ 2,220 | ||
Cross Currency Swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | 0 | 0 | ||
Fair Value, Asset | 0 | 0 | ||
Notional Value/Payment Provision | 45 | 95 | ||
Options/Futures contracts on notes and bonds | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 1,376 | 2,344 | ||
Convertibles and Bonds with Warrants Attached [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 7 | 7 | [1] | |
Investment And Embedded Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 14 | 33 | ||
Notional Value/Payment Provision | 3,629 | 4,666 | ||
Single-Stock Future [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | [2] | 1,428 | 1,316 | |
Other Derivatives [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 249 | 214 | ||
Other Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 1,677 | 1,530 | ||
Guaranteed Living Benefits [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | [3] | 1,180 | 1,264 | |
Other Assets [Member] | Foreign currency forward contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 8 | 25 | ||
Other Assets [Member] | Options/Futures contracts on notes and bonds | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 4 | 6 | ||
Other Assets [Member] | Single-Stock Future [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | [2] | 5 | 1 | |
Other Assets [Member] | Other Derivatives [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 4 | 2 | ||
Other Assets [Member] | Other Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 9 | 3 | ||
Other Assets [Member] | Guaranteed Living Benefits [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | [3] | 0 | 0 | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Foreign currency forward contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (30) | (50) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Options/Futures contracts on notes and bonds | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (5) | (4) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Convertibles and Bonds with Warrants Attached [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | 0 | 0 | [1] | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Investment And Embedded Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (35) | (54) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Single-Stock Future [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 | (2) | (13) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (2) | (13) | ||
Fixed Maturities Available For Sale [Member] | Convertibles and Bonds with Warrants Attached [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 2 | 2 | [1] | |
Accounts Payable Future Policy Benefits [Member] | Guaranteed Living Benefits [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | [3] | $ (684) | $ (853) | |
[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. 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, a58
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 1,545 | $ 1,092 |
Securities lending payable | 1,546 | 1,093 |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowings, Gross, Difference, Amount | (1) | (1) |
Cash and Cash Equivalents [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 1,062 | 423 |
U.S. Treasury And Agency [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 82 | 54 |
Foreign Government Debt [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 263 | 578 |
Corporate [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 1 | 37 |
Collateralized Mortgage Backed Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 60 | 0 |
Equity Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 77 | $ 0 |
Commitments, contingencies, a59
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | $ 1,472 | $ 1,461 |
Repurchase agreements | 1,408 | 1,403 |
Cash and Cash Equivalents [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 0 | 1 |
U.S. Treasury And Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 246 | 240 |
Collateralized Mortgage Backed Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 1,226 | 1,220 |
Repurchase Agreements [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowings, Gross, Difference, Amount | 64 | 58 |
Maturity 30 to 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 501 | |
Maturity 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 | |
Maturity 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 | 6 | |
Maturity 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 | 495 | |
Maturity Less than 30 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 569 | |
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 | 230 | |
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 | 339 | |
Maturity Greater than 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Assets pledged under repurchase agreements | 971 | 892 |
Maturity 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 | 0 | 1 |
Maturity 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 | 240 | 10 |
Maturity 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 | $ 731 | $ 881 |
Commitments, Contingencies, A60
Commitments, Contingencies, And Guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | $ 63 | $ (206) | $ 90 | $ (490) |
Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (7) | (10) | 7 | (20) |
All Other Futures Contracts And Options [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (9) | (37) | (17) | (71) |
Convertibles and Bonds with Warrants Attached [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | 0 | 0 | 0 | 5 |
Investment And Embedded Derivative Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (16) | (47) | (10) | (86) |
Guaranteed Minimum Income Benefit [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | 118 | (131) | 211 | (359) |
Single-Stock Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (38) | (28) | (112) | (43) |
Other Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | (1) | 0 | 1 | (2) |
Guaranteed Living Benefit And Other Derivative Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Loss on Derivative | $ 79 | $ (159) | $ 100 | $ (404) |
Shareholders' equity Sharehol61
Shareholders' equity Shareholders' equity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2017$ / sharesSFr / sharesshares | Jun. 30, 2017SFr / sharesshares | Jun. 30, 2016$ / shares | Jun. 30, 2016SFr / shares | Jun. 30, 2017$ / sharesSFr / sharesshares | Jun. 30, 2017SFr / sharesshares | Jun. 30, 2016$ / shares | Jun. 30, 2016SFr / shares | May 31, 2017$ / shares | Dec. 31, 2016SFr / sharesshares | Nov. 30, 2016USD ($) | May 31, 2016$ / shares | May 31, 2015$ / shares | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Common Shares, par value | SFr / shares | SFr 24.15 | SFr 24.15 | SFr 24.15 | SFr 24.15 | SFr 24.15 | ||||||||
Common Stock, Dividend Rate Declared | (per share) | SFr 0.71 | SFr 0.69 | $ 0.69 | SFr 0.68 | SFr 1.40 | SFr 1.38 | $ 1.36 | SFr 1.34 | |||||
Common Shares in treasury, shares | shares | 14,408,723 | 14,408,723 | 14,408,723 | 14,408,723 | 13,815,148 | ||||||||
Common Stock, Dividend Rate Approved | $ 0.71 | $ 0.69 | $ 0.67 | ||||||||||
Annual dividend per share approved by shareholders | $ 2.84 | $ 2.76 | $ 2.68 | ||||||||||
Nov 2016 Stock Repurchase Plan [Member] | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Authorized amount of share repurchase program | $ | $ 1,000 |
Shareholders' equity Dividends
Shareholders' equity Dividends declared (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017$ / shares | Jun. 30, 2017SFr / shares | Jun. 30, 2016$ / shares | Jun. 30, 2016SFr / shares | Jun. 30, 2017$ / shares | Jun. 30, 2017SFr / shares | Jun. 30, 2016$ / shares | Jun. 30, 2016SFr / shares | |
Dividends Declared [Abstract] | ||||||||
Common Stock, Dividend Rate Declared | (per share) | $ 0.71 | SFr 0.69 | $ 0.69 | SFr 0.68 | $ 1.40 | SFr 1.38 | $ 1.36 | SFr 1.34 |
Shareholders' equity Share Repu
Shareholders' equity Share Repurchases (Details) - Nov 2016 Stock Repurchase Plan [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Aug. 03, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | |
Class of Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 2,381,566 | 3,417,630 | |
Treasury Stock, Value, Acquired, Cost Method | $ 335 | $ 475 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 525 | $ 525 | |
Subsequent Event [Member] | |||
Class of Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 501,872 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 72 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 453 |
Share-Based Compensation (Detai
Share-Based Compensation (Detail) - $ / shares | Feb. 23, 2017 | Jun. 30, 2017 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 3 years | |
Award term period in years | 10 years | |
Stock options granted | 2,065,620 | |
Weighted-average grant date fair value for stock options granted | $ 22.97 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 4 years | |
Restricted stock awards granted to employees and officers of the company | 1,105,118 | |
Grant date fair value of awards except for options granted to employees and officers of the company | $ 139.01 | |
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 | 326,272 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 4 years | |
Restricted stock awards granted to employees and officers of the company | 202,251 |
Postretirement benefits Compone
Postretirement benefits Components of net periodic benefit costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 20 | $ 24 | $ 40 | $ 46 |
Interest cost | 33 | 35 | 66 | 70 |
Expected return on plan assets | (58) | (52) | (115) | (99) |
Amortization of net actuarial loss | 1 | 1 | 1 | 2 |
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Curtailments | (8) | (8) | ||
Net periodic (benefit) cost | (12) | 8 | (16) | 19 |
Pension Plan [Member] | UNITED STATES | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 16 | 20 | 32 | 37 |
Interest cost | 26 | 27 | 52 | 54 |
Expected return on plan assets | (48) | (42) | (95) | (79) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Net periodic (benefit) cost | (6) | 5 | (11) | 12 |
Pension Plan [Member] | Non-US [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 4 | 4 | 8 | 9 |
Interest cost | 7 | 8 | 14 | 16 |
Expected return on plan assets | (10) | (10) | (20) | (20) |
Amortization of net actuarial loss | 1 | 1 | 1 | 2 |
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Curtailments | (8) | (8) | ||
Net periodic (benefit) cost | (6) | 3 | (5) | 7 |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 2 | 3 | 2 | 5 |
Interest cost | 0 | 4 | 1 | 9 |
Expected return on plan assets | (1) | (2) | (2) | (4) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (23) | (46) | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Net periodic (benefit) cost | (22) | 5 | (45) | 10 |
Other Postretirement Benefit Plan [Member] | UNITED STATES | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 2 | 1 | 4 |
Interest cost | 0 | 4 | 1 | 9 |
Expected return on plan assets | (1) | (2) | (2) | (4) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (23) | (46) | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Net periodic (benefit) cost | (23) | 4 | (46) | 9 |
Other Postretirement Benefit Plan [Member] | Non-US [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 0 | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Net periodic (benefit) cost | $ 1 | $ 1 | $ 1 | $ 1 |
Segment information Segment Inf
Segment information Segment Information (narrative Detail (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Derivative, (Gain) Loss on Derivative, Net | $ (63) | $ 206 | $ (90) | $ 490 |
Net investment income | 770 | 708 | 1,515 | 1,382 |
North America Agricultural Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Income Loss Including Gains Losses On Crop Derivatives | 23 | |||
Derivative, (Gain) Loss on Derivative, Net | 2 | |||
Net investment income | 6 | 5 | 12 | 10 |
Segment Life [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net investment income | 77 | $ 69 | $ 152 | $ 136 |
Management Underwriting Income (Loss) | 56 | |||
Gains Losses On Fair Value Changes In Separate Account Assets | $ 16 |
Segment Information (Operations
Segment Information (Operations By Segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net premiums written | $ 7,581 | $ 7,639 | $ 14,291 | $ 13,634 |
Net premiums earned | 7,237 | 7,405 | 14,009 | 14,002 |
Losses and loss expenses | 4,146 | 4,254 | 7,935 | 7,928 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs | 1,449 | 1,560 | 2,846 | 2,973 |
Administrative expenses | 706 | 829 | 1,382 | 1,601 |
Underwriting income (loss) | 773 | 616 | 1,515 | 1,228 |
Net investment income | 770 | 708 | 1,515 | 1,382 |
Other (income) expense | (145) | (29) | (215) | (1) |
Amortization of purchased intangibles | 65 | 5 | 129 | 12 |
Segment Income (loss) | 1,623 | 1,348 | 3,116 | 2,599 |
Net realized gains (losses) including OTTI | 101 | (216) | 94 | (610) |
Interest expense | 147 | 153 | 301 | 299 |
Chubb integration expenses | 72 | 98 | 183 | 246 |
Income tax expense | 200 | 155 | 328 | 279 |
Net income | 1,305 | 726 | 2,398 | 1,165 |
North America Commercial P&C Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 3,204 | 3,245 | 5,946 | 5,547 |
Net premiums earned | 3,099 | 3,148 | 6,140 | 6,044 |
Losses and loss expenses | 1,936 | 1,971 | 3,796 | 3,718 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 464 | 545 | 951 | 1,027 |
Administrative expenses | 241 | 299 | 472 | 565 |
Underwriting income (loss) | 458 | 333 | 921 | 734 |
Net investment income | 490 | 468 | 968 | 894 |
Other (income) expense | (4) | (9) | 0 | (9) |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Segment Income (loss) | 952 | 810 | 1,889 | 1,637 |
North America Personal P&C Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 1,255 | 1,231 | 2,239 | 2,102 |
Net premiums earned | 1,093 | 1,140 | 2,179 | 2,164 |
Losses and loss expenses | 683 | 661 | 1,316 | 1,322 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 230 | 269 | 447 | 518 |
Administrative expenses | 66 | 98 | 131 | 186 |
Underwriting income (loss) | 114 | 112 | 285 | 138 |
Net investment income | 56 | 55 | 111 | 102 |
Other (income) expense | 1 | 3 | 2 | 4 |
Amortization of purchased intangibles | 5 | 4 | 8 | 12 |
Segment Income (loss) | 164 | 160 | 386 | 224 |
North America Agricultural Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 403 | 375 | 464 | 439 |
Net premiums earned | 344 | 327 | 358 | 350 |
Losses and loss expenses | 290 | 284 | 217 | 254 |
Policy benefits | 0 | 0 | ||
Policy acquisition costs | 27 | 25 | 26 | 29 |
Administrative expenses | 2 | 2 | (3) | (2) |
Underwriting income (loss) | 25 | 16 | 118 | 69 |
Net investment income | 6 | 5 | 12 | 10 |
Other (income) expense | 1 | 0 | 1 | 0 |
Amortization of purchased intangibles | 7 | 8 | 14 | 15 |
Segment Income (loss) | 23 | 13 | 115 | 64 |
Overseas General Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 2,006 | 2,031 | 4,206 | 4,072 |
Net premiums earned | 2,018 | 2,093 | 3,954 | 4,048 |
Losses and loss expenses | 964 | 1,089 | 2,035 | 2,110 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 555 | 537 | 1,084 | 1,040 |
Administrative expenses | 243 | 277 | 488 | 540 |
Underwriting income (loss) | 256 | 190 | 347 | 358 |
Net investment income | 148 | 147 | 296 | 293 |
Other (income) expense | (3) | (5) | (4) | (10) |
Amortization of purchased intangibles | 11 | 13 | 22 | 24 |
Segment Income (loss) | 396 | 329 | 625 | 637 |
Global Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 190 | 230 | 389 | 431 |
Net premiums earned | 168 | 185 | 357 | 387 |
Losses and loss expenses | 46 | 87 | 140 | 176 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 43 | 47 | 94 | 100 |
Administrative expenses | 12 | 14 | 22 | 28 |
Underwriting income (loss) | 67 | 37 | 101 | 83 |
Net investment income | 65 | 65 | 127 | 132 |
Other (income) expense | 1 | (2) | 1 | (3) |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Segment Income (loss) | 131 | 104 | 227 | 218 |
Life Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 523 | 527 | 1,047 | 1,043 |
Net premiums earned | 515 | 512 | 1,021 | 1,009 |
Losses and loss expenses | 182 | 147 | 375 | 324 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs | 130 | 137 | 244 | 259 |
Administrative expenses | 77 | 77 | 149 | 149 |
Underwriting income (loss) | (37) | 5 | (78) | 5 |
Net investment income | 77 | 69 | 152 | 136 |
Other (income) expense | (12) | 0 | (41) | 6 |
Amortization of purchased intangibles | 0 | 0 | 1 | 1 |
Segment Income (loss) | 52 | 74 | 114 | 134 |
Corporate And Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | |
Net premiums earned | 0 | 0 | 0 | |
Losses and loss expenses | 45 | 15 | 56 | 24 |
Policy benefits | 0 | 0 | 0 | |
Policy acquisition costs | 0 | 0 | 0 | 0 |
Administrative expenses | 65 | 62 | 123 | 135 |
Underwriting income (loss) | (110) | (77) | (179) | (159) |
Net investment income | (72) | (101) | (151) | (185) |
Other (income) expense | (129) | (16) | (174) | 11 |
Amortization of purchased intangibles | 42 | (20) | 84 | (40) |
Segment Income (loss) | (95) | (142) | (240) | (315) |
Net realized gains (losses) including OTTI | 101 | (216) | 94 | (610) |
Interest expense | 147 | 153 | 301 | 299 |
Chubb integration expenses | 72 | 98 | 183 | 246 |
Income tax expense | 200 | 155 | 328 | 279 |
Net income | $ (413) | $ (764) | $ (958) | $ (1,749) |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,305 | $ 726 | $ 2,398 | $ 1,165 |
Weighted-average shares outstanding | 467,981,077 | 467,701,328 | 468,244,458 | 457,102,802 |
Share-based compensation plans | 3,872,860 | 3,455,969 | 3,900,678 | 3,379,559 |
Weighted-average shares outstanding and assumed conversions | 471,853,937 | 471,157,297 | 472,145,136 | 460,482,361 |
Basic earnings per share (US$ per share) | $ 2.79 | $ 1.55 | $ 5.12 | $ 2.55 |
Diluted earnings per share (US$ per share) | $ 2.77 | $ 1.54 | $ 5.08 | $ 2.53 |
Potential anti-dilutive share conversions | 2,066,578 | 2,103,281 | 1,467,556 | 2,056,018 |
Information provided in conne69
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details) | Jun. 30, 2017 |
Debt Instrument [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Information Provided In Conne70
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||
Investments | $ 100,208 | $ 99,094 | ||||||
Cash | 1,297 | [1],[2] | 985 | [1],[3] | $ 1,011 | [4] | $ 1,775 | [4] |
Insurance and reinsurance balances receivable | 9,662 | 8,970 | ||||||
Reinsurance recoverable on losses and loss expenses | 13,358 | 13,577 | ||||||
Reinsurance recoverable on policy benefits | 198 | 182 | ||||||
Value of business acquired | 337 | 355 | ||||||
Goodwill and other intangible assets | 22,013 | 22,095 | ||||||
Investments in subsidiaries | 0 | 0 | ||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||
Other assets | 15,915 | 14,528 | ||||||
Total assets | 162,988 | 159,786 | ||||||
Unpaid losses and loss expenses | 60,394 | 60,540 | 60,819 | 37,303 | ||||
Unearned premiums | 15,289 | 14,779 | ||||||
Future policy benefits | 5,190 | 5,036 | ||||||
Due to subsidiaries and affiliates, net | 0 | 0 | ||||||
Affiliated notional cash pooling programs | 0 | 0 | ||||||
Repurchase agreements | 1,408 | 1,403 | ||||||
Short-term debt | 922 | 500 | ||||||
Long-term debt | 11,667 | 12,610 | ||||||
Trust preferred securities | 308 | 308 | ||||||
Other liabilities | 17,461 | 16,335 | ||||||
Total liabilities | 112,639 | 111,511 | ||||||
Total shareholders' equity | 50,349 | 48,275 | 47,226 | |||||
Total liabilities and shareholders’ equity | 162,988 | 159,786 | ||||||
Chubb Limited (Parent Guarantor) | ||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||
Investments | 23 | 27 | ||||||
Cash | 0 | [1],[2] | 1 | [1],[3] | 1 | [4] | 1 | [4] |
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 | 40,553 | 38,408 | ||||||
Due from subsidiaries and affiliates, net | 10,251 | 10,482 | ||||||
Other assets | 141 | 3 | ||||||
Total assets | 50,968 | 48,921 | ||||||
Unpaid losses and loss expenses | 0 | 0 | ||||||
Unearned premiums | 0 | 0 | ||||||
Future policy benefits | 0 | 0 | ||||||
Due to subsidiaries and affiliates, net | 0 | 0 | ||||||
Affiliated notional cash pooling programs | 193 | [2] | 363 | [3] | ||||
Repurchase agreements | 0 | 0 | ||||||
Short-term debt | 0 | 0 | ||||||
Long-term debt | 0 | 0 | ||||||
Trust preferred securities | 0 | 0 | ||||||
Other liabilities | 426 | 283 | ||||||
Total liabilities | 619 | 646 | ||||||
Total shareholders' equity | 50,349 | 48,275 | ||||||
Total liabilities and shareholders’ equity | 50,968 | 48,921 | ||||||
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||
Investments | 305 | 485 | ||||||
Cash | 167 | [1],[2] | 1 | [1],[3] | 207 | [4] | 2 | [4] |
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 | 49,982 | 49,509 | ||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||
Other assets | 289 | 436 | ||||||
Total assets | 50,743 | 50,431 | ||||||
Unpaid losses and loss expenses | 0 | 0 | ||||||
Unearned premiums | 0 | 0 | ||||||
Future policy benefits | 0 | 0 | ||||||
Due to subsidiaries and affiliates, net | 9,939 | 10,209 | ||||||
Affiliated notional cash pooling programs | 0 | [2] | 619 | [3] | ||||
Repurchase agreements | 0 | 0 | ||||||
Short-term debt | 922 | 500 | ||||||
Long-term debt | 11,656 | 12,599 | ||||||
Trust preferred securities | 308 | 308 | ||||||
Other liabilities | 1,582 | 1,582 | ||||||
Total liabilities | 24,407 | 25,817 | ||||||
Total shareholders' equity | 26,336 | 24,614 | ||||||
Total liabilities and shareholders’ equity | 50,743 | 50,431 | ||||||
Other Chubb Limited Subsidiaries | ||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||
Investments | 99,880 | 98,582 | ||||||
Cash | 1,323 | [1],[2] | 1,965 | [1],[3] | 1,825 | [4] | 2,743 | [4] |
Insurance and reinsurance balances receivable | 11,699 | 10,498 | ||||||
Reinsurance recoverable on losses and loss expenses | 24,118 | 24,496 | ||||||
Reinsurance recoverable on policy benefits | 1,205 | 1,153 | ||||||
Value of business acquired | 337 | 355 | ||||||
Goodwill and other intangible assets | 22,013 | 22,095 | ||||||
Investments in subsidiaries | 0 | 0 | ||||||
Due from subsidiaries and affiliates, net | 0 | 0 | ||||||
Other assets | 19,527 | 18,442 | ||||||
Total assets | 180,102 | 177,586 | ||||||
Unpaid losses and loss expenses | 70,460 | 70,683 | ||||||
Unearned premiums | 18,876 | 18,538 | ||||||
Future policy benefits | 6,197 | 6,007 | ||||||
Due to subsidiaries and affiliates, net | 312 | 273 | ||||||
Affiliated notional cash pooling programs | 0 | [2] | 0 | [3] | ||||
Repurchase agreements | 1,408 | 1,403 | ||||||
Short-term debt | 0 | 0 | ||||||
Long-term debt | 11 | 11 | ||||||
Trust preferred securities | 0 | 0 | ||||||
Other liabilities | 18,639 | 17,368 | ||||||
Total liabilities | 115,903 | 114,283 | ||||||
Total shareholders' equity | 64,199 | 63,303 | ||||||
Total liabilities and shareholders’ equity | 180,102 | 177,586 | ||||||
Consolidating Adjustments and Eliminations | ||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||
Investments | 0 | 0 | ||||||
Cash | (193) | [1],[2] | (982) | [1],[3] | $ (1,022) | [4] | $ (971) | [4] |
Insurance and reinsurance balances receivable | (2,037) | (1,528) | ||||||
Reinsurance recoverable on losses and loss expenses | (10,760) | (10,919) | ||||||
Reinsurance recoverable on policy benefits | (1,007) | (971) | ||||||
Value of business acquired | 0 | 0 | ||||||
Goodwill and other intangible assets | 0 | 0 | ||||||
Investments in subsidiaries | (90,535) | (87,917) | ||||||
Due from subsidiaries and affiliates, net | (10,251) | (10,482) | ||||||
Other assets | (4,042) | (4,353) | ||||||
Total assets | (118,825) | (117,152) | ||||||
Unpaid losses and loss expenses | (10,066) | (10,143) | ||||||
Unearned premiums | (3,587) | (3,759) | ||||||
Future policy benefits | (1,007) | (971) | ||||||
Due to subsidiaries and affiliates, net | (10,251) | (10,482) | ||||||
Affiliated notional cash pooling programs | (193) | [2] | (982) | [3] | ||||
Repurchase agreements | 0 | 0 | ||||||
Short-term debt | 0 | 0 | ||||||
Long-term debt | 0 | 0 | ||||||
Trust preferred securities | 0 | 0 | ||||||
Other liabilities | (3,186) | (2,898) | ||||||
Total liabilities | (28,290) | (29,235) | ||||||
Total shareholders' equity | (90,535) | (87,917) | ||||||
Total liabilities and shareholders’ equity | $ (118,825) | $ (117,152) | ||||||
[1] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||
[2] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||
[3] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||||||
[4] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Information Provided In Conne71
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | $ 7,581 | $ 7,639 | $ 14,291 | $ 13,634 |
Net premiums earned | 7,237 | 7,405 | 14,009 | 14,002 |
Net investment income | 770 | 708 | 1,515 | 1,382 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net realized gains (losses) including OTTI | 101 | (216) | 94 | (610) |
Losses and loss expenses | 4,146 | 4,254 | 7,935 | 7,928 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs and administrative expenses | 2,155 | 2,389 | 4,228 | 4,574 |
Interest (income) expense | 147 | 153 | 301 | 299 |
Other (income) expense | (145) | (29) | (215) | (1) |
Amortization of purchased intangibles | 65 | 5 | 129 | 12 |
Chubb integration expenses | 72 | 98 | 183 | 246 |
Income tax expense | 200 | 155 | 328 | 279 |
Net income | 1,305 | 726 | 2,398 | 1,165 |
Comprehensive income (loss) | 1,675 | 1,540 | 3,082 | 3,081 |
Consolidating Adjustments and Eliminations | ||||
Condensed Statement of Income Captions [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 | (1,918) | (1,213) | (3,646) | (2,094) |
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 purchased intangibles | 0 | 0 | 0 | 0 |
Chubb integration expenses | 0 | 0 | 0 | |
Income tax expense | 0 | 0 | 0 | 0 |
Net income | (1,918) | (1,213) | (3,646) | (2,094) |
Comprehensive income (loss) | (2,676) | (2,685) | (5,005) | (5,462) |
Chubb Limited (Parent Guarantor) | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 2 | 1 | 2 | 2 |
Equity in earnings of subsidiaries | 1,253 | 664 | 2,280 | 1,039 |
Net realized gains (losses) including OTTI | (2) | (1) | (2) | (1) |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | 18 | 16 | 36 | 33 |
Interest (income) expense | (84) | (93) | (168) | (173) |
Other (income) expense | 4 | (4) | (2) | (13) |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Chubb integration expenses | 6 | 14 | 6 | 17 |
Income tax expense | 4 | 5 | 10 | 11 |
Net income | 1,305 | 726 | 2,398 | 1,165 |
Comprehensive income (loss) | 1,675 | 1,540 | 3,082 | 3,081 |
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 4 | 3 | 7 | 7 |
Equity in earnings of subsidiaries | 665 | 549 | 1,366 | 1,055 |
Net realized gains (losses) including OTTI | (1) | (1) | (14) | (1) |
Losses and loss expenses | 0 | 0 | 0 | 0 |
Policy benefits | 0 | 0 | 0 | 0 |
Policy acquisition costs and administrative expenses | (2) | 96 | 12 | 132 |
Interest (income) expense | 212 | 233 | 433 | 448 |
Other (income) expense | 10 | 10 | 25 | 20 |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Chubb integration expenses | 4 | (97) | 53 | 40 |
Income tax expense | (87) | (37) | (199) | (187) |
Net income | 531 | 346 | 1,035 | 608 |
Comprehensive income (loss) | 920 | 1,004 | 1,711 | 2,060 |
Other Chubb Limited Subsidiaries | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net premiums written | 7,581 | 7,639 | 14,291 | 13,634 |
Net premiums earned | 7,237 | 7,405 | 14,009 | 14,002 |
Net investment income | 764 | 704 | 1,506 | 1,373 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net realized gains (losses) including OTTI | 104 | (214) | 110 | (608) |
Losses and loss expenses | 4,146 | 4,254 | 7,935 | 7,928 |
Policy benefits | 163 | 146 | 331 | 272 |
Policy acquisition costs and administrative expenses | 2,139 | 2,277 | 4,180 | 4,409 |
Interest (income) expense | 19 | 13 | 36 | 24 |
Other (income) expense | (159) | (35) | (238) | (8) |
Amortization of purchased intangibles | 65 | 5 | 129 | 12 |
Chubb integration expenses | 62 | 181 | 124 | 189 |
Income tax expense | 283 | 187 | 517 | 455 |
Net income | 1,387 | 867 | 2,611 | 1,486 |
Comprehensive income (loss) | $ 1,756 | $ 1,681 | $ 3,294 | $ 3,402 |
Information Provided In Conne72
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | |||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | $ 1,640 | $ 2,153 | ||
Purchases of fixed maturities available for sale | (12,260) | (17,077) | ||
Purchases of fixed maturities held to maturity | (212) | (121) | ||
Purchases of equity securities | (82) | (78) | ||
Sales of fixed maturities available for sale | 6,873 | 11,868 | ||
Sales of equity securities | 104 | 932 | ||
Maturities and redemptions of fixed maturities available for sale | 5,169 | 3,910 | ||
Maturities and redemptions of fixed maturities held to maturity | 408 | 443 | ||
Net change in short-term investments | 354 | 11,711 | ||
Net derivative instruments settlements | (129) | (93) | ||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 0 | (14,248) | ||
Capital contribution | 0 | |||
Other | (121) | 81 | ||
Net cash flows from (used for) investing activities | 104 | (2,672) | ||
Dividends paid on Common Shares | (646) | (530) | ||
Common Shares repurchased | (475) | 0 | ||
Repayment of long-term debt | (500) | 0 | ||
Proceeds from issuance of repurchase agreements | 1,343 | 904 | ||
Repayments of repurchase agreements | (1,338) | (902) | ||
Proceeds from share-based compensation plans | 89 | 92 | ||
Dividend to Parent Company | 0 | 0 | ||
Advances (to) from affiliates | 0 | 0 | ||
Capital contribution | 0 | |||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | 0 | ||
Policyholder contract deposits | 209 | 274 | ||
Policyholder contract withdrawals | (125) | (103) | ||
Other | 0 | (4) | ||
Net cash flows used for financing activities | (1,443) | (269) | ||
Effect of foreign currency rate changes on cash and cash equivalents | 11 | 24 | ||
Net increase (decrease) in cash | 312 | (764) | ||
Cash – beginning of period | 985 | [1],[2] | 1,775 | [3] |
Cash – end of period | 1,297 | [2],[4] | 1,011 | [3] |
Chubb Limited (Parent Guarantor) | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | 551 | 3,213 | ||
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 | 0 | ||
Net derivative instruments settlements | 0 | 0 | ||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 0 | |||
Capital contribution | (2,330) | |||
Other | 0 | 0 | ||
Net cash flows from (used for) investing activities | 0 | (2,330) | ||
Dividends paid on Common Shares | (646) | (530) | ||
Common Shares repurchased | 0 | |||
Repayment of long-term debt | 0 | |||
Proceeds from issuance of repurchase agreements | 0 | 0 | ||
Repayments of repurchase agreements | 0 | 0 | ||
Proceeds from share-based compensation plans | 0 | 0 | ||
Dividend to Parent Company | 0 | 0 | ||
Advances (to) from affiliates | 264 | (247) | ||
Capital contribution | 0 | |||
Net proceeds from (payments to) affiliated notional cash pooling program | (170) | [2] | (106) | [3] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Other | 0 | |||
Net cash flows used for financing activities | (552) | (883) | ||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash | (1) | 0 | ||
Cash – beginning of period | 1 | [1],[2] | 1 | [3] |
Cash – end of period | 0 | [2],[4] | 1 | [3] |
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | 1,444 | 4,050 | ||
Purchases of fixed maturities available for sale | (5) | (83) | ||
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 | 13 | 0 | ||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||
Net change in short-term investments | 166 | 7,829 | ||
Net derivative instruments settlements | (7) | (10) | ||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | (14,282) | |||
Capital contribution | 0 | |||
Other | 2 | (3) | ||
Net cash flows from (used for) investing activities | 169 | (6,549) | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | 0 | |||
Repayment of long-term debt | (500) | |||
Proceeds from issuance of repurchase agreements | 0 | 0 | ||
Repayments of repurchase agreements | 0 | 0 | ||
Proceeds from share-based compensation plans | 0 | 0 | ||
Dividend to Parent Company | 0 | 0 | ||
Advances (to) from affiliates | (328) | 221 | ||
Capital contribution | 2,330 | |||
Net proceeds from (payments to) affiliated notional cash pooling program | (619) | [2] | 157 | [3] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Other | (4) | |||
Net cash flows used for financing activities | (1,447) | 2,704 | ||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash | 166 | 205 | ||
Cash – beginning of period | 1 | [1],[2] | 2 | [3] |
Cash – end of period | 167 | [2],[4] | 207 | [3] |
Other Chubb Limited Subsidiaries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | 1,686 | 2,262 | ||
Purchases of fixed maturities available for sale | (12,255) | (16,994) | ||
Purchases of fixed maturities held to maturity | (212) | (121) | ||
Purchases of equity securities | (82) | (78) | ||
Sales of fixed maturities available for sale | 6,873 | 11,868 | ||
Sales of equity securities | 104 | 932 | ||
Maturities and redemptions of fixed maturities available for sale | 5,156 | 3,910 | ||
Maturities and redemptions of fixed maturities held to maturity | 408 | 443 | ||
Net change in short-term investments | 188 | 3,882 | ||
Net derivative instruments settlements | (122) | (83) | ||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 34 | |||
Capital contribution | (2,330) | |||
Other | (123) | 84 | ||
Net cash flows from (used for) investing activities | (65) | 1,547 | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | (475) | |||
Repayment of long-term debt | 0 | |||
Proceeds from issuance of repurchase agreements | 1,343 | 904 | ||
Repayments of repurchase agreements | (1,338) | (902) | ||
Proceeds from share-based compensation plans | 89 | 92 | ||
Dividend to Parent Company | (2,041) | (7,372) | ||
Advances (to) from affiliates | 64 | 26 | ||
Capital contribution | 2,330 | |||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | [2] | 0 | [3] |
Policyholder contract deposits | 209 | 274 | ||
Policyholder contract withdrawals | (125) | (103) | ||
Other | 0 | |||
Net cash flows used for financing activities | (2,274) | (4,751) | ||
Effect of foreign currency rate changes on cash and cash equivalents | 11 | 24 | ||
Net increase (decrease) in cash | (642) | (918) | ||
Cash – beginning of period | 1,965 | [1],[2] | 2,743 | [3] |
Cash – end of period | 1,323 | [2],[4] | 1,825 | [3] |
Consolidation, Eliminations [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | (2,041) | (7,372) | ||
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 | 0 | ||
Net derivative instruments settlements | 0 | 0 | ||
Acquisition of subsidiaries (net of cash acquired of nil and $71) | 0 | |||
Capital contribution | 4,660 | |||
Other | 0 | 0 | ||
Net cash flows from (used for) investing activities | 0 | 4,660 | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | 0 | |||
Repayment of long-term debt | 0 | |||
Proceeds from issuance of repurchase agreements | 0 | 0 | ||
Repayments of repurchase agreements | 0 | 0 | ||
Proceeds from share-based compensation plans | 0 | 0 | ||
Dividend to Parent Company | 2,041 | 7,372 | ||
Advances (to) from affiliates | 0 | 0 | ||
Capital contribution | (4,660) | |||
Net proceeds from (payments to) affiliated notional cash pooling program | 789 | [2] | (51) | |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Other | 0 | |||
Net cash flows used for financing activities | 2,830 | 2,661 | ||
Effect of foreign currency rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash | 789 | (51) | ||
Cash – beginning of period | (982) | [1],[2] | (971) | [3] |
Cash – end of period | $ (193) | [2],[4] | $ (1,022) | [3] |
[1] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[2] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[3] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2016 and December 31, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | |||
[4] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Information provided in conne73
Information provided in connection with outstanding debt of subsidiaries Parenthetical (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash Acquired from Acquisition | $ 0 | $ 71 |