Document and Entity Information
Document and Entity Information - SFr / shares | 3 Months Ended | ||
Mar. 31, 2018 | Apr. 19, 2018 | Dec. 31, 2017 | |
Entity Information [Line Items] | |||
Common Shares, par value | SFr 24.15 | SFr 24.15 | |
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | Q1 | ||
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 | 465,802,115 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Assets | ||||||
Fixed maturities available for sale, at fair value (amortized cost – $XX,XXX and $77,835)(includes hybrid financial instruments of $X and $5) | $ 79,111 | $ 78,939 | ||||
Fixed maturities held to maturity, at amortized cost (fair value – $14,122 and $14,474) | 14,253 | 14,335 | ||||
Equity securities, at fair value (cost – $948 and $737) | 948 | 937 | ||||
Short-term investments, at fair value and amortized cost | 2,874 | 3,561 | ||||
Other investments (cost – $4,919 and $4,417) | 4,919 | 4,672 | ||||
Total investments | 102,105 | 102,444 | ||||
Cash | 1,988 | [1] | 728 | [2] | ||
Restricted Cash | [1] | 125 | 123 | |||
Securities lending collateral | 2,039 | 1,737 | ||||
Accrued investment income | 895 | 909 | ||||
Insurance and reinsurance balances receivable | 9,570 | 9,334 | ||||
Reinsurance Recoverable Losses And Loss Expenses | 14,982 | 15,034 | ||||
Reinsurance recoverable on policy benefits | 181 | 184 | ||||
Deferred policy acquisition costs | 4,843 | 4,723 | ||||
Value of business acquired | 321 | 326 | ||||
Goodwill | 15,686 | 15,541 | ||||
Other intangible assets | 6,437 | 6,513 | ||||
Prepaid reinsurance premiums | 2,600 | 2,529 | ||||
Investments in partially-owned insurance companies | 664 | 662 | ||||
Other assets | 6,345 | 6,235 | ||||
Total assets | 168,781 | 167,022 | ||||
Liabilities | ||||||
Unpaid losses and loss expenses | 63,139 | 63,179 | $ 60,540 | |||
Unearned premiums | 15,495 | 15,216 | ||||
Future policy benefits | 5,412 | 5,321 | ||||
Insurance and reinsurance balances payable | 6,148 | 5,868 | ||||
Securities lending payable | 2,039 | 1,737 | ||||
Accounts payable, accrued expenses, and other liabilities | 8,618 | 9,545 | ||||
Deferred tax liabilities | 468 | 699 | ||||
Repurchase agreements | 1,412 | 1,408 | ||||
Short-term debt | 1,669 | 1,013 | ||||
Long-term debt | 12,786 | 11,556 | ||||
Trust preferred securities | 308 | 308 | ||||
Total liabilities | 117,494 | 115,850 | ||||
Commitments and contingencies | ||||||
Shareholders’ equity | ||||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 465,831,486 and 463,833,179 shares outstanding) | 11,121 | 11,121 | ||||
Common Shares in treasury (13,952,378 and 15,950,685 shares) | (1,727) | (1,944) | ||||
Additional Paid in Capital, Common Stock | 13,430 | 13,978 | ||||
Retained earnings | 28,965 | 27,474 | ||||
Accumulated other comprehensive income (loss) (AOCI) | (502) | 543 | ||||
Total shareholders’ equity | 51,287 | 51,172 | ||||
Total liabilities and shareholders’ equity | $ 168,781 | $ 167,022 | ||||
[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 March 31, 2018, 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 December 31, 2017, 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 | Mar. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Statement of Financial Position [Abstract] | ||
Available for sale, at amortized cost | $ 79,208 | $ 77,835 |
Fixed maturities available for sale, hybrid financial instruments | 7 | 5 |
Held to maturity, at Fair Value | 14,122 | 14,474 |
Equity securities, at cost | 948 | 737 |
Other investments, cost | $ 4,919 | $ 4,417 |
Common Shares, shares issued | shares | 479,783,864 | 479,783,864 |
Common Shares, shares outstanding | shares | 465,831,486 | 463,833,179 |
Common Shares in treasury, shares | shares | 13,952,378 | 15,950,685 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Net premiums written | $ 7,104 | $ 6,710 |
Change In Unearned Premium Net | 77 | (62) |
Net premiums earned | 7,027 | 6,772 |
Net investment income | 806 | 745 |
Net Realized Gains Losses [Abstract] | ||
Other-than-temporary impairment (OTTI) losses gross | (1) | (19) |
Portion of OTTI losses recognized in other comprehensive income (OCI) | 0 | 0 |
Net OTTI losses recognized in income | (1) | (19) |
Net realized gains (losses) excluding OTTI losses | (1) | 12 |
Total net realized gains (losses) (includes $(23) and $(8) reclassified from AOCI) | (2) | (7) |
Total revenues | 7,831 | 7,510 |
Expenses | ||
Losses and loss expenses | 4,102 | 3,789 |
Policy benefits | 151 | 168 |
Policy acquisition costs | 1,464 | 1,397 |
Administrative expenses | 692 | 676 |
Interest expense | 157 | 154 |
Other (income) expense | (47) | (70) |
Amortization of purchased intangibles | 85 | 64 |
Chubb integration expenses | 10 | 111 |
Total expenses | 6,614 | 6,289 |
Income before income tax | 1,217 | 1,221 |
Income tax expense (benefit) (includes $(3) and $(6) on reclassified unrealized losses) | 135 | 128 |
Net income | 1,082 | 1,093 |
Other comprehensive income (loss) | ||
Unrealized appreciation (depreciation) | (1,234) | 307 |
Reclassification adjustment for net realized losses included in net income | 23 | 8 |
Unrealized appreciation (Depreciation) after reclassification adjustment | (1,211) | 315 |
Change in: | ||
Cumulative foreign currency translation adjustment | 397 | 134 |
Postretirement benefit liability adjustment | (23) | (20) |
Other comprehensive income (loss), before income tax | (837) | 429 |
Income tax (expense) benefit related to OCI items | 208 | (115) |
Other comprehensive income (loss) | (629) | 314 |
Comprehensive income | $ 453 | $ 1,407 |
Earnings per share | ||
Basic earnings per share | $ 2.32 | $ 2.33 |
Diluted earnings per share | $ 2.30 | $ 2.31 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total net realized gains (losses) reclassified from AOCI | $ (23) | $ (8) |
Income tax expense on reclassified unrealized gains and loses | $ (3) | $ (6) |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Common shares in treasury [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Cumulative Foreign Currency Translation Adjustment [Member] | Postretirement Benefit Liability Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | $ 23,613 | $ 1,058 | |||||||
Balance - beginning of period at Dec. 31, 2016 | $ 11,121 | $ (1,480) | $ 15,335 | 23,613 | 1,058 | $ (1,663) | $ 291 | ||
Common Shares repurchased | (140) | ||||||||
Net shares redeemed under employee share-based compensation plans | 222 | (260) | |||||||
Exercise of stock options | (21) | ||||||||
Share-based compensation expense | 65 | ||||||||
Net income | $ 1,093 | 1,093 | |||||||
Funding of dividends declared to Retained earnings | (324) | ||||||||
Funding of dividends declared from Additional paid-in capital | 324 | ||||||||
Dividends declared on Common Shares | (324) | ||||||||
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $226 and $(102) | 205 | ||||||||
Amounts reclassified from AOCI, net of income tax expense of $(3) and $(6) | 2 | ||||||||
Change in period, net of income tax benefit (expense) of $223 and $(108) | 207 | ||||||||
Change in period, net of income tax expense of $(19) and $(3) | 131 | ||||||||
Change in period, net of income tax benefit (expense) of $4 and $(4) | (24) | ||||||||
Balance - end of period at Mar. 31, 2017 | 49,224 | 11,121 | (1,398) | 14,795 | 24,706 | 1,265 | (1,532) | 267 | $ 0 |
Balance - beginning of period at Dec. 31, 2017 | 51,172 | 11,121 | (1,944) | 13,978 | 27,474 | 1,450 | (1,187) | 280 | |
Common Shares repurchased | 0 | ||||||||
Net shares redeemed under employee share-based compensation plans | 217 | (262) | |||||||
Exercise of stock options | (16) | ||||||||
Share-based compensation expense | 62 | ||||||||
Net income | 1,082 | 1,082 | |||||||
Funding of dividends declared to Retained earnings | (332) | ||||||||
Funding of dividends declared from Additional paid-in capital | 332 | ||||||||
Dividends declared on Common Shares | (332) | ||||||||
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $226 and $(102) | (1,008) | ||||||||
Amounts reclassified from AOCI, net of income tax expense of $(3) and $(6) | 20 | ||||||||
Change in period, net of income tax benefit (expense) of $223 and $(108) | (988) | ||||||||
Change in period, net of income tax expense of $(19) and $(3) | 378 | ||||||||
Change in period, net of income tax benefit (expense) of $4 and $(4) | (19) | ||||||||
Balance - end of period at Mar. 31, 2018 | $ 51,287 | $ 11,121 | $ (1,727) | $ 13,430 | $ 28,965 | $ 46 | $ (809) | $ 261 | $ (502) |
Consolidated Statements Of Sha7
Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Consolidated Statements Of Shareholders Equity [Abstract] | ||
Change in year, before reclassification from AOCI, net of income tax benefit(expense) | $ 226 | $ (102) |
Income tax benefit (expense) from reclassification of unrealized gains | (3) | (6) |
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit | 223 | (108) |
Cumulative translation adjustment, Change in period, income tax(expense) benefit | (19) | (3) |
Net income | 1,082 | 1,093 |
Pension liability adjustment, Change in period, income tax (expense) benefit | $ 4 | $ (4) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 1,082 | $ 1,093 |
Adjustments to reconcile net income to net cash flows from operating activities | ||
Net realized (gains) losses | 2 | 7 |
Amortization of premiums/discounts on fixed maturities | 155 | 184 |
Amortization of UPR related to the Chubb Corp acquisition and other intangibles | 85 | 64 |
Deferred income taxes | (2) | (127) |
Unpaid losses and loss expenses | (420) | (154) |
Unearned premiums | 111 | 17 |
Future policy benefits | 58 | 40 |
Insurance and reinsurance balances payable | 250 | 252 |
Accounts payable, accrued expenses, and other liabilities | (724) | (491) |
Income taxes payable | 88 | 191 |
Insurance and reinsurance balances receivable | (174) | 30 |
Reinsurance recoverable on losses and loss expenses | 138 | (122) |
Reinsurance recoverable on policy benefits | 3 | (5) |
Deferred policy acquisition costs | (75) | (59) |
Prepaid reinsurance premiums | (42) | (81) |
Other | 16 | 174 |
Net cash flows from operating activities | 551 | 1,013 |
Cash flows from investing activities | ||
Purchases of fixed maturities available for sale | (5,972) | (6,250) |
Purchases of fixed maturities held to maturity | (162) | (157) |
Purchases of equity securities | (55) | (37) |
Sales of fixed maturities available for sale | 2,562 | 3,395 |
Sales of equity securities | 40 | 46 |
Maturities and redemptions of fixed maturities available for sale | 1,865 | 2,543 |
Maturities and redemptions of fixed maturities held to maturity | 255 | 240 |
Net change in short-term investments | 731 | 232 |
Net derivative instruments settlements | 39 | (89) |
Private equity contribution | (353) | (198) |
Private equity distribution | 201 | 315 |
Other | (32) | (106) |
Net cash flows used for investing activities | (881) | (66) |
Cash flows from financing activities | ||
Dividends paid on Common Shares | (330) | (324) |
Common Shares repurchased | (29) | (128) |
Proceeds from issuance of long-term debt | (300) | (500) |
Proceeds from issuance of repurchase agreements | 408 | 753 |
Proceeds from Issuance of Long-term Debt | 2,175 | 0 |
Repayment of repurchase agreements | (404) | (752) |
Proceeds from share-based compensation plans | 34 | 42 |
Policyholder contract deposits | 118 | 109 |
Policyholder contract withdrawals | (105) | (58) |
Net cash flows from (used for) financing activities | 1,567 | (858) |
Effect of foreign currency rate changes on cash and restricted cash | 25 | (17) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 1,262 | 72 |
Cash and Restricted Cash - Beginning of year | 851 | 1,088 |
Cash and Restricted Cash - end of Year | 2,113 | 1,160 |
Supplemental cash flow information | ||
Taxes paid | 93 | 54 |
Interest paid | $ 82 | $ 75 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
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 2017 Form 10-K. b) Restricted cash Effective January 1, 2018, we retrospectively adopted guidance on "Restricted Cash" that clarified the presentation of restricted cash on the consolidated statement of cash flows. As a result, we revised the statement of cash flows for the three months ended March 31, 2017 to include restricted cash in the beginning and ending cash balances. In addition, we reclassified $123 million of Restricted cash from Other assets to a separate line in the balance sheet as of December 31, 2017. Restricted cash in the consolidated balance sheets represents amounts held for the benefit of third parties and is legally or contractually restricted as to withdrawal or usage. Amounts include deposits with U.S. and non-U.S. regulatory authorities, trust funds set up for the benefit of ceding companies, and amounts pledged as collateral to meet financing arrangements. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows: March 31 December 31 (in millions of U.S. dollars) 2018 2017 Cash $ 1,988 $ 728 Restricted cash 125 123 Total cash and restricted cash shown in the consolidated statements of cash flows $ 2,113 $ 851 c) Goodwill During the three months ended March 31, 2018, Goodwill increased $ 145 million , primarily reflecting the impact of foreign exchange. d) Accounting guidance adopted in 2018 Revenue from Contracts with Customers In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our claims management and risk control services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. This guidance was effective for us on January 1, 2018. The adoption of this guidance did not have a material impact on our financial condition or results of operations given that the majority of our business is outside the scope of this guidance. Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities Effective January 2018, we adopted new accounting guidance on "Recognition and Measurement of Financial Assets and Financial Liabilities" on a modified-retrospective basis. The guidance requires equity investments, other than those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized through net income. The guidance impacts our public equities and cost-method private equities. As a result, we recorded a cumulative-effect adjustment to increase beginning Retained earnings by $416 million after tax ( $454 million pre-tax), representing the unrealized appreciation on our equity investments with an offsetting adjustment to decrease Accumulated other comprehensive income. All subsequent changes in fair value of our equity investments are recognized within realized gains (losses) on the consolidated statement of operations. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. Income Taxes Effective January 2018, we adopted new accounting guidance on “Intra-Entity Transfers of Assets Other Than Inventory” on a modified-retrospective basis. Under the new guidance, we will no longer defer taxes on intra-company asset transfers and will recognize income tax expense (benefit) immediately through the income statement. As a result, we recorded a cumulative-effect adjustment to decrease beginning Retained earnings by $7 million representing the removal of the deferred tax asset for previous intra-company asset transfer transactions not yet recognized through earnings. Income Tax Accounting Implications of the Tax Cuts and Jobs Act The Tax Cuts and Jobs Act (2017 Tax Act) was signed into legislation in December 2017. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which provides guidance for the application of the 2017 Tax Act. The income tax guidance allows for the transition impact of the 2017 Tax Act to be recorded as 1) complete with all accounting implications identified, 2) provisional based on a reasonable estimate, or 3) not recorded as no reasonable estimate was determinable. In December 2017, we recorded a $450 million income tax transition benefit on a provisional basis under SAB 118. There were no changes to this estimate for the current period as we continue to analyze the impact of the 2017 Tax Act. Refer to the 2017 Form 10-K for information on other accounting guidance not yet adopted. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments a) Fixed maturities March 31, 2018 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 $ 3,893 $ 22 $ (77 ) $ 3,838 $ — Foreign 21,705 513 (187 ) 22,031 — Corporate securities 23,509 332 (274 ) 23,567 (4 ) Mortgage-backed securities 16,116 53 (349 ) 15,820 (1 ) States, municipalities, and political subdivisions 13,985 61 (191 ) 13,855 — $ 79,208 $ 981 $ (1,078 ) $ 79,111 $ (5 ) Held to maturity U.S. Treasury and agency $ 1,037 $ 9 $ (14 ) $ 1,032 $ — Foreign 1,754 17 (20 ) 1,751 — Corporate securities 3,026 26 (55 ) 2,997 — Mortgage-backed securities 2,681 11 (45 ) 2,647 — States, municipalities, and political subdivisions 5,755 18 (78 ) 5,695 — $ 14,253 $ 81 $ (212 ) $ 14,122 $ — December 31, 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 $ 3,701 $ 32 $ (35 ) $ 3,698 $ — Foreign 20,514 622 (106 ) 21,030 (1 ) Corporate securities 23,453 638 (95 ) 23,996 (4 ) Mortgage-backed securities 15,279 111 (100 ) 15,290 (1 ) States, municipalities, and political subdivisions 14,888 125 (88 ) 14,925 — $ 77,835 $ 1,528 $ (424 ) $ 78,939 $ (6 ) Held to maturity U.S. Treasury and agency $ 908 $ 12 $ (5 ) $ 915 $ — Foreign 1,738 27 (8 ) 1,757 — Corporate securities 3,159 67 (7 ) 3,219 — Mortgage-backed securities 2,724 23 (5 ) 2,742 — States, municipalities, and political subdivisions 5,806 50 (15 ) 5,841 — $ 14,335 $ 179 $ (40 ) $ 14,474 $ — As discussed in Note 2 b ), 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 the three months ended March 31, 2018 and 2017, $4 million and nil, respectively, of net unrealized depreciation related to such securities is included in OCI. At March 31, 2018 and December 31, 2017 , AOCI included cumulative net unrealized appreciation of $3 million and $7 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 82 percent and 83 percent of the total mortgage-backed securities at March 31, 2018 and December 31, 2017 , respectively, are represented by investments in U.S. government agency bonds. The remainder of the mortgage exposure consists of collateralized mortgage obligations and non-government mortgage-backed securities, the majority of which provide a planned structure for principal and interest payments and carry a rating of AAA by the major credit rating agencies. The following table presents fixed maturities by contractual maturity: March 31 December 31 2018 2017 (in millions of U.S. dollars) Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Due in 1 year or less $ 3,735 $ 3,746 $ 3,164 $ 3,182 Due after 1 year through 5 years 25,140 25,251 24,749 25,068 Due after 5 years through 10 years 25,243 25,097 25,388 25,704 Due after 10 years 8,974 9,197 9,255 9,695 63,092 63,291 62,556 63,649 Mortgage-backed securities 16,116 15,820 15,279 15,290 $ 79,208 $ 79,111 $ 77,835 $ 78,939 Held to maturity Due in 1 year or less $ 838 $ 840 $ 743 $ 746 Due after 1 year through 5 years 2,684 2,678 2,669 2,688 Due after 5 years through 10 years 4,713 4,635 4,744 4,756 Due after 10 years 3,337 3,322 3,455 3,542 11,572 11,475 11,611 11,732 Mortgage-backed securities 2,681 2,647 2,724 2,742 $ 14,253 $ 14,122 $ 14,335 $ 14,474 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 ) 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 and securities lending collateral are reviewed to identify impaired securities to be specifically evaluated for a potential OTTI. Refer to the 2017 Form 10-K for information on our evaluation of OTTI for all non-fixed maturities prior to our adoption of new accounting guidance on financial instruments, effective January 1, 2018. 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. For the three months ended March 31, 2018 and 2017, credit losses recognized in Net income for corporate securities were nil and $ 1 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 months ended March 31, 2018 and 2017, there were no credit losses recognized in Net income for mortgage-backed securities. The following table presents the components of Net realized gains (losses): Three Months Ended March 31 (in millions of U.S. dollars) 2018 2017 Fixed maturities: OTTI on fixed maturities, gross $ (1 ) $ (6 ) OTTI on fixed maturities recognized in OCI (pre-tax) — — OTTI on fixed maturities, net (1 ) (6 ) Gross realized gains excluding OTTI 66 34 Gross realized losses excluding OTTI (88 ) (40 ) Total fixed maturities (23 ) (12 ) Equity securities: OTTI on equity securities — (5 ) Gross realized gains excluding OTTI 10 9 Gross realized losses excluding OTTI (21 ) — Total equity securities (11 ) 4 OTTI on other investments — (8 ) Other investments 29 — Foreign exchange losses (77 ) (19 ) Investment and embedded derivative instruments 17 6 Fair value adjustments on insurance derivative 38 93 S&P put options and futures 22 (74 ) Other derivative instruments 2 2 Other 1 1 Net realized gains (losses) $ (2 ) $ (7 ) 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 March 31 (in millions of U.S. dollars) 2018 2017 Balance of credit losses related to securities still held – beginning of period $ 22 $ 35 Additions where no OTTI was previously recorded — — Additions where an OTTI was previously recorded — 1 Reductions for securities sold during the period (7 ) (4 ) Balance of credit losses related to securities still held – end of period $ 15 $ 32 c) Equity securities and Other investments Effective January 1, 2018, we adopted new accounting guidance that requires any changes in fair value of equity securities and other investments that are accounted for under the cost-method to be recognized immediately in realized gains and losses in net income. As a result, beginning on January 1, 2018, realized gains and losses from these investments include both sales of securities and unrealized gains and losses as follows: Three Months Ended March 31, 2018 (in millions of U.S. dollars) Equity Securities Other Investments Net gains (losses) recognized during the period $ (11 ) $ 29 Less: Net gains (losses) recognized from sales of securities 10 — Unrealized gains (losses) recognized for securities still held at reporting date $ (21 ) $ 29 At December 31, 2017, the cost, gross unrealized appreciation, gross unrealized depreciation, and fair value of equity securities was $737 million , $212 million , $12 million , and $937 million , respectively. At December 31, 2017, the net unrealized appreciation (depreciation) was recorded within accumulated other comprehensive income on the balance sheet. d) Gross unrealized loss At March 31, 2018 , there were 15,699 fixed maturities out of a total of 31,179 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $10 million . Fixed maturities in an unrealized loss position at March 31, 2018 , 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 March 31, 2018 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 $ 2,869 $ (55 ) $ 1,314 $ (36 ) $ 4,183 $ (91 ) Foreign 8,715 (155 ) 1,643 (52 ) 10,358 (207 ) Corporate securities 12,355 (260 ) 1,501 (69 ) 13,856 (329 ) Mortgage-backed securities 12,313 (257 ) 3,033 (137 ) 15,346 (394 ) States, municipalities, and political subdivisions 15,030 (218 ) 1,343 (51 ) 16,373 (269 ) Total fixed maturities $ 51,282 $ (945 ) $ 8,834 $ (345 ) $ 60,116 $ (1,290 ) 0 – 12 Months Over 12 Months Total December 31, 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 $ 2,172 $ (14 ) $ 1,249 $ (26 ) $ 3,421 $ (40 ) Foreign 5,657 (65 ) 1,693 (49 ) 7,350 (114 ) Corporate securities 5,210 (56 ) 1,332 (46 ) 6,542 (102 ) Mortgage-backed securities 6,194 (31 ) 3,209 (74 ) 9,403 (105 ) States, municipalities, and political subdivisions 9,259 (71 ) 1,402 (32 ) 10,661 (103 ) Total fixed maturities 28,492 (237 ) 8,885 (227 ) 37,377 (464 ) Equity securities 115 (12 ) — — 115 (12 ) Other investments 78 (8 ) — — 78 (8 ) Total $ 28,685 $ (257 ) $ 8,885 $ (227 ) $ 37,570 $ (484 ) 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 March 31, 2018 and December 31, 2017 are investments, primarily fixed maturities, totaling $23.6 billion and $23.3 billion, respectively, and cash of $125 million and $123 million, respectively. The following table presents the components of restricted assets: March 31 December 31 (in millions of U.S. dollars) 2018 2017 Trust funds $ 17,029 $ 17,011 Deposits with U.S. regulatory authorities 2,463 2,345 Deposits with non-U.S. regulatory authorities 2,290 2,250 Assets pledged under repurchase agreements 1,460 1,434 Other pledged assets 433 414 $ 23,675 $ 23,454 |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2018 | |
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 and option contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in reserves for our guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) reinsurance business. Our position in exchange-traded equity futures contracts is classified within Level 1. 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. For the three months ended March 31, 2018 and 2017, no material technical refinements were made to the model. For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2017 Form 10-K. Financial instruments measured at fair value on a recurring basis, by valuation hierarchy March 31, 2018 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 3,094 $ 744 $ — $ 3,838 Foreign — 21,855 176 22,031 Corporate securities — 22,494 1,073 23,567 Mortgage-backed securities — 15,737 83 15,820 States, municipalities, and political subdivisions — 13,855 — 13,855 3,094 74,685 1,332 79,111 Equity securities 884 — 64 948 Short-term investments 1,735 1,127 12 2,874 Other investments (1) 451 318 270 1,039 Securities lending collateral — 2,039 — 2,039 Investment derivative instruments 25 — — 25 Other derivative instruments 78 — — 78 Separate account assets 2,774 100 — 2,874 Total assets measured at fair value (1) $ 9,041 $ 78,269 $ 1,678 $ 88,988 Liabilities: Investment derivative instruments $ 29 $ — $ — $ 29 Other derivative instruments — — 2 2 GLB (2) — — 167 167 Total liabilities measured at fair value $ 29 $ — $ 169 $ 198 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 3,866 million and other investments of $ 14 million at March 31, 2018 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, 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 $ 3,129 $ 569 $ — $ 3,698 Foreign — 20,937 93 21,030 Corporate securities — 22,959 1,037 23,996 Mortgage-backed securities — 15,212 78 15,290 States, municipalities, and political subdivisions — 14,925 — 14,925 3,129 74,602 1,208 78,939 Equity securities 893 — 44 937 Short-term investments 2,309 1,252 — 3,561 Other investments (1) 466 305 263 1,034 Securities lending collateral — 1,737 — 1,737 Investment derivative instruments 18 — — 18 Other derivative instruments 1 — — 1 Separate account assets 2,635 99 — 2,734 Total assets measured at fair value (1) $ 9,451 $ 77,995 $ 1,515 $ 88,961 Liabilities: Investment derivative instruments $ 30 $ — $ — $ 30 Other derivative instruments 21 — 2 23 GLB (2) — — 204 204 Total liabilities measured at fair value $ 51 $ — $ 206 $ 257 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,623 million and other investments of $15 million at December 31, 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. There were no transfers of financial instruments between Level 1 and Level 2 for both the three months ended March 31, 2018 and 2017. 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: March 31 December 31 Expected Liquidation Period of Underlying Assets 2018 2017 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 5 to 9 Years $ 538 $ 327 $ 540 $ 330 Real Assets 3 to 7 Years 656 210 651 114 Distressed 3 to 7 Years 295 131 289 141 Private Credit 3 to 7 Years 173 320 187 327 Traditional 3 to 15 Years 1,901 2,858 1,656 3,149 Vintage 1 to 2 Years 27 — 30 — Investment funds Not Applicable 276 — 270 — $ 3,866 $ 3,846 $ 3,623 $ 4,061 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 or 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 March 31, 2018 December 31, 2017 GLB (1) $ 167 $ 204 Actuarial model Lapse rate 3% – 33% Annuitization rate 0% – 100% (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 3 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 (2) March 31, 2018 Foreign Corporate securities (1) MBS (in millions of U.S. dollars) Balance – beginning of period $ 93 $ 1,037 $ 78 $ 44 $ — $ 263 $ 2 $ 204 Transfers into Level 3 7 — 1 — 5 — — — Transfers out of Level 3 — (10 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI, including Foreign Exchange 9 (3 ) — 1 — 2 — — Net Realized Gains/Losses — — — 2 — — — (37 ) Purchases 87 139 4 17 8 14 — — Sales (19 ) (51 ) — — — — — — Settlements (1 ) (39 ) — — (1 ) (9 ) — — Balance – end of period $ 176 $ 1,073 $ 83 $ 64 $ 12 $ 270 $ 2 $ 167 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ — $ (37 ) (1) Purchases in Level 3 primarily consist of privately-placed fixed income securities. (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 $529 million at March 31, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $167 million and $204 million , respectively. Assets Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) March 31, 2017 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 74 $ 681 $ 45 $ 41 $ 25 $ 225 $ 13 $ 559 Transfers into Level 3 — 29 — — — — — — Transfers out of Level 3 — (54 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI (1 ) (8 ) — — — 4 — — Net Realized Gains/Losses (1 ) (1 ) — — — — (2 ) (93 ) Purchases 14 156 1 — 7 8 — — Sales (3 ) (27 ) (1 ) — — — — — Settlements (3 ) (39 ) — — (11 ) (4 ) — — Balance – end of period $ 80 $ 737 $ 45 $ 41 $ 21 $ 233 $ 11 $ 466 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ (2 ) $ (93 ) (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 $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively. 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. Refer to the 2017 Form 10-K for information on the fair value methods and assumptions for investments in partially-owned insurance companies, short-term and long-term debt, repurchase agreements, and trust-preferred securities. The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value: March 31, 2018 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 $ 977 $ 55 $ — $ 1,032 $ 1,037 Foreign — 1,751 — 1,751 1,754 Corporate securities — 2,964 33 2,997 3,026 Mortgage-backed securities — 2,647 — 2,647 2,681 States, municipalities, and political subdivisions — 5,695 — 5,695 5,755 Total assets $ 977 $ 13,112 $ 33 $ 14,122 $ 14,253 Liabilities: Repurchase agreements $ — $ 1,412 $ — $ 1,412 $ 1,412 Short-term debt — 1,704 — 1,704 1,669 Long-term debt — 13,023 — 13,023 12,786 Trust preferred securities — 466 — 466 308 Total liabilities $ — $ 16,605 $ — $ 16,605 $ 16,175 December 31, 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 $ 857 $ 58 $ — $ 915 $ 908 Foreign — 1,757 — 1,757 1,738 Corporate securities — 3,184 35 3,219 3,159 Mortgage-backed securities — 2,742 — 2,742 2,724 States, municipalities, and political subdivisions — 5,841 — 5,841 5,806 Total assets $ 857 $ 13,582 $ 35 $ 14,474 $ 14,335 Liabilities: Repurchase agreements $ — $ 1,408 $ — $ 1,408 $ 1,408 Short-term debt — 1,013 — 1,013 1,013 Long-term debt — 12,332 — 12,332 11,556 Trust preferred securities — 468 — 468 308 Total liabilities $ — $ 15,221 $ — $ 15,221 $ 14,285 |
Unpaid losses and loss expenses
Unpaid losses and loss expenses | 3 Months Ended |
Mar. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 4 . Unpaid losses and loss expenses The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses: Three Months Ended March 31 (in millions of U.S. dollars) 2018 2017 Gross unpaid losses and loss expenses – beginning of period $ 63,179 $ 60,540 Reinsurance recoverable on unpaid losses - beginning of period (1) (14,014 ) (12,708 ) Net unpaid losses and loss expenses – beginning of period 49,165 47,832 Net losses and loss expenses incurred in respect of losses occurring in: Current year 4,358 4,078 Prior years (2) (256 ) (289 ) Total 4,102 3,789 Net losses and loss expenses paid in respect of losses occurring in: Current year 809 798 Prior years 3,433 3,109 Total 4,242 3,907 Foreign currency revaluation and other 292 54 Net unpaid losses and loss expenses – end of period 49,317 47,768 Reinsurance recoverable on unpaid losses (3) 13,822 12,811 Gross unpaid losses and loss expenses – end of period $ 63,139 $ 60,579 (1) Net of provision for uncollectible reinsurance of $321 million and $300 million at December 31, 2017 and 2016, respectively. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums totaling $47 million and $58 million for the three months ended March 31, 2018 and 2017, respectively. (3) Net of provision for uncollectible reinsurance of $320 million and $334 million at March 31, 2018 and 2017, respectively. The increase in net unpaid losses and loss expenses from December 31, 2017 reflects the impact of catastrophic events in the quarter and foreign exchange movement, offset by favorable prior period development and catastrophe payments related to the 2017 catastrophic events. Prior Period Development Prior period development arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. 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. 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, and agriculture. During the third quarter of 2017, we determined that the loss development classification for certain businesses, previously grouped within the short-tail column in the table below, would be more appropriately grouped within the long-tail column to better align with the classification of these businesses within our loss development triangles in our Form 10-K. We also determined that the loss development for certain other businesses should be reclassified from long-tail to short-tail. We updated the 2017 North America Commercial P&C Insurance segment amounts below to conform to the current period presentation and reclassified $5 million of net favorable development into short-tail from long-tail. These changes to the previously disclosed amounts have no impact to our financial condition and results of operations. Three Months Ended March 31 (in millions of U.S. dollars) Long-tail Short-tail Total 2018 North America Commercial P&C Insurance $ 8 $ (109 ) $ (101 ) North America Personal P&C Insurance — (6 ) (6 ) North America Agricultural Insurance — (76 ) (76 ) Overseas General Insurance — (22 ) (22 ) Global Reinsurance — (14 ) (14 ) Corporate 10 — 10 Total $ 18 $ (227 ) $ (209 ) 2017 North America Commercial P&C Insurance $ (94 ) $ (85 ) $ (179 ) North America Personal P&C Insurance — (3 ) (3 ) North America Agricultural Insurance — (79 ) (79 ) Overseas General Insurance 32 (20 ) 12 Global Reinsurance 8 — 8 Corporate 10 — 10 Total $ (44 ) $ (187 ) $ (231 ) North America Commercial P&C Insurance 2018 For the three months ended March 31, 2018 , net favorable PPD was $101 million , which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes: • Net adverse development of $8 million in long-tail business, primarily from: • Net favorable development of $29 million in commercial excess and umbrella portfolios, driven by the 2012 and prior accident years where the cumulative emergence over time has been less than expected overall and an increase in weighting towards experience-based methods, partly offset by several large settlements; additionally there was adverse claim activity in the 2014 and 2015 accident years which led to reserve strengthening in those years; • Net favorable development of $3 million on several lines of business due to favorable claim development on the 2017 natural catastrophes; and • Net adverse development of $40 million , mainly in 2015, 2016 and some older accident years, partially offset by favorable development in other periods, particularly in the 2014 accident year. This net adverse development consisted of several underlying favorable and adverse movements by portfolio, principally including $16 million of adverse development in wholesale general liability lines. • Net favorable development of $109 million in short-tail business, primarily from: • Net favorable development of $75 million in commercial property and marine businesses due to favorable claim development on the 2017 natural catastrophes; and • Net favorable development of $34 million , principally including $19 million in surety business. The remainder was due to several underlying favorable and adverse movements, none of which were significant individually or in the aggregate. 2017 For the three months ended March 31, 2017 , net favorable PPD was $179 million , which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes: • Net favorable development of $94 million in long-tail business, primarily from: • 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; and • Net favorable development of $32 million in our professional Errors and Omissions (E&O) portfolios, primarily in the 2011 through 2013 accident years, arising from lower than expected reported loss activity, partially offset by claim-specific adverse development. • Net favorable development of $85 million in short-tail business, primarily from: • Net favorable development of $45 million in our surety business, primarily due to lower than expected claims severity in the 2015 accident year; and • Net favorable development of $24 million in accident & health (A&H) lines, primarily due to lower than expected loss emergence in the 2015 and 2016 accident years. North America Personal P&C Insurance 2018 For the three months ended March 31, 2018 , net favorable PPD was $6 million and was driven by claim development on the 2017 natural catastrophes. 2017 For the three months ended March 31, 2017, net favorable PPD was $3 million , which was the net result of several underlying favorable and adverse movements, none of which were significant individually or in the aggregate. North America Agricultural Insurance For the three months ended March 31, 2018 and 2017, net favorable PPD was $76 million and $79 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., 2018 results based on crop yield results at year-end 2017). Overseas General Insurance 2018 For the three months ended March 31, 2018 , net favorable PPD was $22 million , which was primarily driven by $12 million of claim development on the 2017 natural catastrophes. 2017 For the three months ended March 31, 2017 , net adverse PPD was $12 million , which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes: • Adverse development of $32 million in long-tail business, 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. • Net favorable development of $20 million in short-tail business, which was the net result of several underlying favorable and adverse movements, none of which were significant individually or in the aggregate. Global Reinsurance 2018 For the three months ended March 31, 2018 , net favorable PPD was $14 million , which was primarily driven by $10 million of claim development on the 2017 natural catastrophes. 2017 For the three months ended March 31, 2017 , net adverse PPD was $8 million , which was primarily due to adverse development of $9 million in long-tail motor and excess liability lines, driven by a change in the discount rate in the U.K. (Ogden rate) impacting the 2015 and prior accident years. Corporate For the three months ended March 31, 2018 and 2017, adverse development was $10 million for both periods, related to unallocated loss adjustment expenses due to run-off operating expenses paid and incurred. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt In March 2018, Chubb INA Holdings Inc. (Chubb INA) issued € 900 million ( $1.1 billion based on the foreign exchange rate at the date of issuance) of 1.55 percent Euro denominated senior notes due March 2028 and € 900 million ( $1.1 billion based on the foreign exchange rate at the date of issuance) of 2.5 percent Euro denominated senior notes due March 2038. These senior notes are redeemable at any time at Chubb INA's option subject to a “make-whole” premium (the present value of the remaining principal and interest discounted at the applicable comparable government bond rate plus 0.15 percent for the senior notes due 2028 and 0.25 percent for the senior notes due 2038). The notes are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law. These notes do not have the benefit of any sinking fund. These senior unsecured notes are guaranteed on a senior basis by Chubb and they rank equally with all of Chubb's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt. Chubb INA's $300 million of 5.8 percent senior notes due March 2018 were paid upon maturity. In March 2018, we reclassified $964 million of the 6.375 percent unsecured junior subordinated capital securities ( $1.0 billion par value with the final maturity date of March 2067) from long-term to short-term debt in the Consolidated balance sheets given our intention to redeem these securities on April 6, 2018, prior to the maturity date. Subsequently, the $1.0 billion capital securities were redeemed on April 6, 2018. |
Commitments, contingencies, and
Commitments, contingencies, and guarantees | 3 Months Ended |
Mar. 31, 2018 | |
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 economic 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: March 31, 2018 December 31, 2017 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) $ 19 $ (17 ) $ 2,125 $ 14 $ (27 ) $ 2,064 Cross-currency swaps OA / (AP) — — 45 — — 45 Options/Futures contracts on notes and bonds OA / (AP) 6 (12 ) 1,093 4 (3 ) 1,007 Convertible securities (1) FM AFS / ES 7 — 8 5 — 6 $ 32 $ (29 ) $ 3,271 $ 23 $ (30 ) $ 3,122 Other derivative instruments: Futures contracts on equities (2) OA / (AP) $ 71 $ — $ 1,625 $ — $ (21 ) $ 1,553 Other OA / (AP) 7 (2 ) 326 1 (2 ) 75 $ 78 $ (2 ) $ 1,951 $ 1 $ (23 ) $ 1,628 GLB (3) (AP) / (FPB) $ — $ (529 ) $ 1,175 $ — $ (550 ) $ 1,083 (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 March 31, 2018 and December 31, 2017, derivative assets of $79 million and derivative liabilities of $24 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 March 31 December 31 2018 2017 (in millions of U.S. dollars) Overnight and Continuous Collateral held under securities lending agreements: Cash $ 826 $ 828 U.S. Treasury and agency 40 36 Foreign 869 712 Corporate securities 8 — Mortgage-backed securities 59 74 Equity securities 237 87 $ 2,039 $ 1,737 Gross amount of recognized liability for securities lending payable $ 2,039 $ 1,737 At March 31, 2018 and December 31, 2017, our repurchase agreement obligations of $1,412 million and $1,408 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 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 March 31, 2018 December 31, 2017 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: U.S. Treasury and agency $ — $ 243 $ 243 $ 9 $ 230 $ 239 Mortgage-backed securities 486 731 1,217 369 826 1,195 $ 486 $ 974 $ 1,460 $ 378 $ 1,056 $ 1,434 Gross amount of recognized liabilities for repurchase agreements $ 1,412 $ 1,408 Difference (1) $ 48 $ 26 (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 March 31 (in millions of U.S. dollars) 2018 2017 Investment and embedded derivative instruments: Foreign currency forward contracts $ 4 $ 14 All other futures contracts and options 13 (8 ) Total investment and embedded derivative instruments $ 17 $ 6 GLB and other derivative instruments: GLB (1) $ 38 $ 93 Futures contracts on equities (2) 22 (74 ) Other 2 2 Total GLB and other derivative instruments $ 62 $ 21 $ 79 $ 27 (1) Excludes foreign exchange gains (losses) related to GLB. (2) 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 March 31, 2018 , we have commitments to purchase fixed income securities of $1,139 million over the next several years. e) Other investments At March 31, 2018 , included in Other investments in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $3.6 billion. In connection with these investments, we have commitments that may require funding of up to $3.8 billion over the next several years. f) Taxation At March 31, 2018 , $14 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 2010. 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. |
Share-based compensation
Share-based compensation | 3 Months Ended |
Mar. 31, 2018 | |
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 both incentive and non-qualified stock options 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. Stock options typically vest in equal annual installments over the vesting period, which is also the requisite service period. On February 22, 2018 , Chubb granted 1,841,329 stock options with a weighted-average grant date fair value of $29.71 each. The fair value of the options issued is estimated on the grant date using the Black-Scholes option pricing model. The 2016 LTIP also permits grants of service-based restricted stock and restricted stock units as well as performance-based restricted stock awards. Chubb generally grants service-based restricted stock and restricted stock units with a 4-year vesting period, based on a graded vesting schedule. Beginning in 2017, the performance-based stock awards granted comprise target awards which have 3-year cliff vesting provisions based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth and P&C combined ratio compared to a defined group of peer companies. Premium performance-based stock awards are earned only if tangible book value per share growth and the P&C combined ratio over the cumulative 3-year period after the grant of the associated target awards exceed a higher threshold compared to our peer group, with an additional vesting provision based on total shareholder return compared to our peer group. The restricted stock is granted at market close price on the grant date. On February 22, 2018 , Chubb granted 973,624 service-based restricted stock awards, 301,024 service-based restricted stock units, and 180,065 performance-based stock awards to employees and officers with a grant date fair value of $143.07 each. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting. |
Shareholders' equity
Shareholders' equity | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018, our Common Shares had a par value of CHF 24.15 per share. At our May 2017 and 2016 annual general meetings, our shareholders approved an annual dividend for the following year of up to $2.84 per share and $ 2.76 per share, respectively, which was paid in four quarterly installments of $0.71 per share and$ 0.69 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. Dividend distributions per Common Share for the three months ended March 31, 2018 and 2017 were $0.71 (CHF 0.66 ) and $0.69 (CHF 0.69 ), per Common Share, respectively. Common Shares in treasury are used principally for issuance upon the exercise of employee stock options, grants of restricted stock, and purchases under the Employee Stock Purchase Plan (ESPP). At March 31, 2018 , 13,952,378 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans. Chubb Limited securities repurchase authorization In November 2016, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares through December 31, 2017. In December 2017, the Board authorized a share repurchase program of $1.0 billion of Chubb's Common Shares from January 1, 2018 through December 31, 2018. The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations: Three Months Ended March 31 (in millions of U.S. dollars, except share data) 2018 2017 Number of shares repurchased — 1,036,064 Cost of shares repurchased $ — $ 140 Repurchase authorization remaining at end of period $ 1,000 $ 860 |
Postretirement benefits
Postretirement benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [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: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Three Months Ended March 31 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions of U.S. dollars) Service cost $ 14 $ 3 $ 16 $ 4 $ — $ — Interest cost 26 7 26 7 1 1 Expected return on plan assets (53 ) (13 ) (47 ) (10 ) (1 ) (1 ) Amortization of prior service cost — — — — (21 ) (23 ) Net periodic (benefit) cost $ (13 ) $ (3 ) $ (5 ) $ 1 $ (21 ) $ (23 ) |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2018 | |
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 results primarily include income and expenses not attributable to reportable segments and loss and loss expenses of asbestos and environmental (A&E) liabilities. For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income (loss) as the main measures of segment performance. Chubb calculates underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. 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 (loss). For example, for the three months ended March 31, 2018, underwriting income in our North America Agricultural Insurance segment was $102 million . This amount includes $2 million of realized gains 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 March 31, 2018, Life Insurance underwriting income of $67 million includes Net investment income of $83 million and gains from fair value changes in separate account assets of $6 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 March 31, 2018 (in millions of U.S. dollars) Net premiums written $ 2,812 $ 1,048 $ 108 $ 2,384 $ 193 $ 559 $ — $ 7,104 Net premiums earned 3,029 1,140 43 2,107 168 540 — 7,027 Losses and loss expenses 1,908 886 (53 ) 1,078 67 205 11 4,102 Policy benefits — — — — — 151 — 151 Policy acquisition costs 472 237 (1 ) 588 40 128 — 1,464 Administrative expenses 231 65 (3 ) 239 10 78 72 692 Underwriting income (loss) 418 (48 ) 100 202 51 (22 ) (83 ) 618 Net investment income (loss) 503 59 7 151 64 83 (61 ) 806 Other (income) expense (6 ) — — 7 (7 ) (4 ) (37 ) (47 ) Amortization expense of purchased intangibles — 3 7 10 — 1 64 85 Segment income (loss) $ 927 $ 8 $ 100 $ 336 $ 122 $ 64 $ (171 ) $ 1,386 Net realized gains (losses) including OTTI (2 ) (2 ) Interest expense 157 157 Chubb integration expenses 10 10 Income tax expense 135 135 Net income (loss) $ (475 ) $ 1,082 North America Commercial P&C Insurance (1) North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance (1) Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Three Months Ended March 31, 2017 (in millions of U.S. dollars) Net premiums written $ 2,730 $ 984 $ 61 $ 2,212 $ 199 $ 524 $ — $ 6,710 Net premiums earned 3,041 1,086 14 1,936 189 506 — 6,772 Losses and loss expenses 1,860 633 (73 ) 1,071 94 193 11 3,789 Policy benefits — — — — — 168 — 168 Policy acquisition costs 487 217 (1 ) 529 51 114 — 1,397 Administrative expenses 231 65 (5 ) 245 10 72 58 676 Underwriting income (loss) 463 171 93 91 34 (41 ) (69 ) 742 Net investment income (loss) 478 55 6 148 62 75 (79 ) 745 Other (income) expense 4 1 — (1 ) — (29 ) (45 ) (70 ) Amortization expense of purchased intangibles — 3 7 11 — 1 42 64 Segment income (loss) $ 937 $ 222 $ 92 $ 229 $ 96 $ 62 $ (145 ) $ 1,493 Net realized gains (losses) including OTTI (7 ) (7 ) Interest expense 154 154 Chubb integration expenses 111 111 Income tax expense 128 128 Net income (loss) $ (545 ) $ 1,093 (1) The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ( $12 million ) from the North America Commercial P&C Insurance segment to the Overseas General Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. 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 | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Three Months Ended March 31 (in millions of U.S. dollars, except share and per share data) 2018 2017 Numerator: Net income $ 1,082 $ 1,093 Denominator: Denominator for basic earnings per share: Weighted-average shares outstanding 465,703,240 468,903,086 Denominator for diluted earnings per share: Share-based compensation plans 3,770,351 3,828,604 Weighted-average shares outstanding and assumed conversions 469,473,591 472,731,690 Basic earnings per share $ 2.32 $ 2.33 Diluted earnings per share $ 2.30 $ 2.31 Potential anti-dilutive share conversions 2,116,188 969,654 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 | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Information provided in connection with outstanding debt of subsidiaries | Information provided in connection with outstanding debt of subsidiaries The following tables present condensed consolidating financial information at March 31, 2018 and December 31, 2017 , and for the three months ended March 31, 2018 and 2017 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 March 31, 2018 (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 $ — $ 186 $ 101,919 $ — $ 102,105 Cash (1) 1 864 1,523 (400 ) 1,988 Restricted cash — — 125 — 125 Insurance and reinsurance balances receivable — — 10,308 (738 ) 9,570 Reinsurance recoverable on losses and loss expenses — — 26,093 (11,111 ) 14,982 Reinsurance recoverable on policy benefits — — 1,181 (1,000 ) 181 Value of business acquired — — 321 — 321 Goodwill and other intangible assets — — 22,123 — 22,123 Investments in subsidiaries 43,032 51,930 — (94,962 ) — Due from subsidiaries and affiliates, net 8,980 — 251 (9,231 ) — Other assets 4 386 18,459 (1,463 ) 17,386 Total assets $ 52,017 $ 53,366 $ 182,303 $ (118,905 ) $ 168,781 Liabilities Unpaid losses and loss expenses $ — $ — $ 74,299 $ (11,160 ) $ 63,139 Unearned premiums — — 16,563 (1,068 ) 15,495 Future policy benefits — — 6,412 (1,000 ) 5,412 Due to subsidiaries and affiliates, net — 9,231 — (9,231 ) — Affiliated notional cash pooling programs (1) 400 — — (400 ) — Repurchase agreements — — 1,412 — 1,412 Short-term debt — 1,669 — — 1,669 Long-term debt — 12,775 11 — 12,786 Trust preferred securities — 308 — — 308 Other liabilities 330 1,537 16,490 (1,084 ) 17,273 Total liabilities 730 25,520 115,187 (23,943 ) 117,494 Total shareholders’ equity 51,287 27,846 67,116 (94,962 ) 51,287 Total liabilities and shareholders’ equity $ 52,017 $ 53,366 $ 182,303 $ (118,905 ) $ 168,781 (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 March 31, 2018 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Balance Sheet at December 31, 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 $ — $ 168 $ 102,276 $ — $ 102,444 Cash (1) 3 1 839 (115 ) 728 Restricted cash — — 123 — 123 Insurance and reinsurance balances receivable — — 10,820 (1,486 ) 9,334 Reinsurance recoverable on losses and loss expenses — — 27,514 (12,480 ) 15,034 Reinsurance recoverable on policy benefits — — 1,194 (1,010 ) 184 Value of business acquired — — 326 — 326 Goodwill and other intangible assets — — 22,054 — 22,054 Investments in subsidiaries 41,909 51,165 — (93,074 ) — Due from subsidiaries and affiliates, net 9,639 — — (9,639 ) — Other assets 3 287 20,578 (4,073 ) 16,795 Total assets $ 51,554 $ 51,621 $ 185,724 $ (121,877 ) $ 167,022 Liabilities Unpaid losses and loss expenses $ — $ — $ 74,767 $ (11,588 ) $ 63,179 Unearned premiums — — 18,875 (3,659 ) 15,216 Future policy benefits — — 6,331 (1,010 ) 5,321 Due to subsidiaries and affiliates, net — 9,432 207 (9,639 ) — Affiliated notional cash pooling programs (1) — 115 — (115 ) — Repurchase agreements — — 1,408 — 1,408 Short-term debt — 1,013 — — 1,013 Long-term debt — 11,546 10 — 11,556 Trust preferred securities — 308 — — 308 Other liabilities 382 1,411 18,848 (2,792 ) 17,849 Total liabilities 382 23,825 120,446 (28,803 ) 115,850 Total shareholders’ equity 51,172 27,796 65,278 (93,074 ) 51,172 Total liabilities and shareholders’ equity $ 51,554 $ 51,621 $ 185,724 $ (121,877 ) $ 167,022 (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, 2017 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 2018 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 $ — $ — $ 7,104 $ — $ 7,104 Net premiums earned — — 7,027 — 7,027 Net investment income 2 4 800 — 806 Equity in earnings of subsidiaries 1,022 885 — (1,907 ) — Net realized gains (losses) including OTTI (2 ) (24 ) 24 — (2 ) Losses and loss expenses — — 4,102 — 4,102 Policy benefits — — 151 — 151 Policy acquisition costs and administrative expenses 18 22 2,116 — 2,156 Interest (income) expense (80 ) 209 28 — 157 Other (income) expense (5 ) 8 (50 ) — (47 ) Amortization of purchased intangibles — — 85 — 85 Chubb integration expenses 2 1 7 — 10 Income tax expense (benefit) 5 (59 ) 189 — 135 Net income $ 1,082 $ 684 $ 1,223 $ (1,907 ) $ 1,082 Comprehensive income $ 453 $ 216 $ 614 $ (830 ) $ 453 Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 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 $ — $ — $ 6,710 $ — $ 6,710 Net premiums earned — — 6,772 — 6,772 Net investment income — 3 742 — 745 Equity in earnings of subsidiaries 1,027 701 — (1,728 ) — Net realized gains (losses) including OTTI — (13 ) 6 — (7 ) Losses and loss expenses — — 3,789 — 3,789 Policy benefits — — 168 — 168 Policy acquisition costs and administrative expenses 18 14 2,041 — 2,073 Interest (income) expense (84 ) 221 17 — 154 Other (income) expense (6 ) 15 (79 ) — (70 ) Amortization of purchased intangibles — — 64 — 64 Chubb integration expenses — 49 62 — 111 Income tax expense (benefit) 6 (112 ) 234 — 128 Net income $ 1,093 $ 504 $ 1,224 $ (1,728 ) $ 1,093 Comprehensive income $ 1,407 $ 791 $ 1,538 $ (2,329 ) $ 1,407 Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2018 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 $ 24 $ 2,727 $ 800 $ (3,000 ) $ 551 Cash flows from investing activities Purchases of fixed maturities available for sale — (8 ) (5,964 ) — (5,972 ) Purchases of fixed maturities held to maturity — — (162 ) — (162 ) Purchases of equity securities — — (55 ) — (55 ) Sales of fixed maturities available for sale — — 2,562 — 2,562 Sales of equity securities — — 40 — 40 Maturities and redemptions of fixed maturities available for sale — 3 1,862 — 1,865 Maturities and redemptions of fixed maturities held to maturity — — 255 — 255 Net change in short-term investments — (14 ) 745 — 731 Net derivative instruments settlements — (7 ) 46 — 39 Private equity contributions — — (353 ) — (353 ) Private equity distributions — — 201 — 201 Capital contribution (750 ) (3,500 ) — 4,250 — Other — (3 ) (29 ) — (32 ) Net cash flows used for investing activities (750 ) (3,529 ) (852 ) 4,250 (881 ) Cash flows from financing activities Dividends paid on Common Shares (330 ) — — — (330 ) Common Shares repurchased — — (29 ) — (29 ) Proceeds from issuance of long-term debt — 2,175 — — 2,175 Repayment of long-term debt — (300 ) — — (300 ) Proceeds from issuance of repurchase agreements — — 408 — 408 Repayment of repurchase agreements — — (404 ) — (404 ) Proceeds from share-based compensation plans — — 34 — 34 Dividend to parent company — — (3,000 ) 3,000 — Advances (to) from affiliates 656 (95 ) (561 ) — — Capital contribution — — 4,250 (4,250 ) — Net proceeds from (payments to) affiliated notional cash pooling programs (1) 400 (115 ) — (285 ) — Policyholder contract deposits — — 118 — 118 Policyholder contract withdrawals — — (105 ) — (105 ) Net cash flows from financing activities 726 1,665 711 (1,535 ) 1,567 Effect of foreign currency rate changes on cash and restricted cash (2 ) — 27 — 25 Net increase (decrease) in cash and restricted cash (2 ) 863 686 (285 ) 1,262 Cash and restricted cash – beginning of period (1) 3 1 962 (115 ) 851 Cash and restricted cash – end of period (1) $ 1 $ 864 $ 1,648 $ (400 ) $ 2,113 (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 March 31, 2018 and December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 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 cash flows from (used for) operating activities $ 584 $ (156 ) $ 1,081 $ (496 ) $ 1,013 Cash flows from investing activities Purchases of fixed maturities available for sale — (4 ) (6,246 ) — (6,250 ) Purchases of fixed maturities held to maturity — — (157 ) — (157 ) Purchases of equity securities — — (37 ) — (37 ) Sales of fixed maturities available for sale — — 3,395 — 3,395 Sales of equity securities — — 46 — 46 Maturities and redemptions of fixed maturities available for sale — 7 2,536 — 2,543 Maturities and redemptions of fixed maturities held to maturity — — 240 — 240 Net change in short-term investments — 173 59 — 232 Net derivative instruments settlements — (2 ) (87 ) — (89 ) Private equity contributions — — (198 ) — (198 ) Private equity distributions — — 315 — 315 Other — — (106 ) — (106 ) Net cash flows from (used for) investing activities — 174 (240 ) — (66 ) Cash flows from financing activities Dividends paid on Common Shares (324 ) — — — (324 ) Common Shares repurchased — — (128 ) — (128 ) Proceeds from issuance of repurchase agreements — — 753 — 753 Repayment of long-term debt — (500 ) — — (500 ) Repayment of repurchase agreements — — (752 ) — (752 ) Proceeds from share-based compensation plans — — 42 — 42 Dividend to parent company — — (496 ) 496 — Advances (to) from affiliates 108 (171 ) 63 — — Net proceeds from (payments to) affiliated notional cash pooling programs (1) (363 ) 653 — (290 ) — Policyholder contract deposits — — 109 — 109 Policyholder contract withdrawals — — (58 ) — (58 ) Net cash flows used for financing activities (579 ) (18 ) (467 ) 206 (858 ) Effect of foreign currency rate changes on cash and restricted cash — — (17 ) — (17 ) Net increase in cash and restricted cash 5 — 357 (290 ) 72 Cash and restricted cash – beginning of period (1) 1 1 2,068 (982 ) 1,088 Cash and restricted cash – end of period (1) $ 6 $ 1 $ 2,425 $ (1,272 ) $ 1,160 (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 March 31, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | 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 2017 Form 10-K. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | b) Restricted cash Effective January 1, 2018, we retrospectively adopted guidance on "Restricted Cash" that clarified the presentation of restricted cash on the consolidated statement of cash flows. As a result, we revised the statement of cash flows for the three months ended March 31, 2017 to include restricted cash in the beginning and ending cash balances. In addition, we reclassified $123 million of Restricted cash from Other assets to a separate line in the balance sheet as of December 31, 2017. Restricted cash in the consolidated balance sheets represents amounts held for the benefit of third parties and is legally or contractually restricted as to withdrawal or usage. Amounts include deposits with U.S. and non-U.S. regulatory authorities, trust funds set up for the benefit of ceding companies, and amounts pledged as collateral to meet financing arrangements. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows: March 31 December 31 (in millions of U.S. dollars) 2018 2017 Cash $ 1,988 $ 728 Restricted cash 125 123 Total cash and restricted cash shown in the consolidated statements of cash flows $ 2,113 $ 851 |
Goodwill, Policy [Policy Text Block] | c) Goodwill During the three months ended March 31, 2018, Goodwill increased $ 145 million , primarily reflecting the impact of foreign exchange. |
Accounting guidance adopted in 2018 | d) Accounting guidance adopted in 2018 Revenue from Contracts with Customers In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our claims management and risk control services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. This guidance was effective for us on January 1, 2018. The adoption of this guidance did not have a material impact on our financial condition or results of operations given that the majority of our business is outside the scope of this guidance. Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities Effective January 2018, we adopted new accounting guidance on "Recognition and Measurement of Financial Assets and Financial Liabilities" on a modified-retrospective basis. The guidance requires equity investments, other than those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized through net income. The guidance impacts our public equities and cost-method private equities. As a result, we recorded a cumulative-effect adjustment to increase beginning Retained earnings by $416 million after tax ( $454 million pre-tax), representing the unrealized appreciation on our equity investments with an offsetting adjustment to decrease Accumulated other comprehensive income. All subsequent changes in fair value of our equity investments are recognized within realized gains (losses) on the consolidated statement of operations. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. Income Taxes Effective January 2018, we adopted new accounting guidance on “Intra-Entity Transfers of Assets Other Than Inventory” on a modified-retrospective basis. Under the new guidance, we will no longer defer taxes on intra-company asset transfers and will recognize income tax expense (benefit) immediately through the income statement. As a result, we recorded a cumulative-effect adjustment to decrease beginning Retained earnings by $7 million representing the removal of the deferred tax asset for previous intra-company asset transfer transactions not yet recognized through earnings. Income Tax Accounting Implications of the Tax Cuts and Jobs Act The Tax Cuts and Jobs Act (2017 Tax Act) was signed into legislation in December 2017. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which provides guidance for the application of the 2017 Tax Act. The income tax guidance allows for the transition impact of the 2017 Tax Act to be recorded as 1) complete with all accounting implications identified, 2) provisional based on a reasonable estimate, or 3) not recorded as no reasonable estimate was determinable. In December 2017, we recorded a $450 million income tax transition benefit on a provisional basis under SAB 118. There were no changes to this estimate for the current period as we continue to analyze the impact of the 2017 Tax Act. |
Accounting guidance not yet adopted | Refer to the 2017 Form 10-K for information on other accounting guidance not yet adopted. |
General General (Tables)
General General (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows: March 31 December 31 (in millions of U.S. dollars) 2018 2017 Cash $ 1,988 $ 728 Restricted cash 125 123 Total cash and restricted cash shown in the consolidated statements of cash flows $ 2,113 $ 851 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Amortized Cost And Fair Value Of HTM Fixed Maturities And Related OTTI Recognized In AOCI | March 31, 2018 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 $ 3,893 $ 22 $ (77 ) $ 3,838 $ — Foreign 21,705 513 (187 ) 22,031 — Corporate securities 23,509 332 (274 ) 23,567 (4 ) Mortgage-backed securities 16,116 53 (349 ) 15,820 (1 ) States, municipalities, and political subdivisions 13,985 61 (191 ) 13,855 — $ 79,208 $ 981 $ (1,078 ) $ 79,111 $ (5 ) Held to maturity U.S. Treasury and agency $ 1,037 $ 9 $ (14 ) $ 1,032 $ — Foreign 1,754 17 (20 ) 1,751 — Corporate securities 3,026 26 (55 ) 2,997 — Mortgage-backed securities 2,681 11 (45 ) 2,647 — States, municipalities, and political subdivisions 5,755 18 (78 ) 5,695 — $ 14,253 $ 81 $ (212 ) $ 14,122 $ — December 31, 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 $ 3,701 $ 32 $ (35 ) $ 3,698 $ — Foreign 20,514 622 (106 ) 21,030 (1 ) Corporate securities 23,453 638 (95 ) 23,996 (4 ) Mortgage-backed securities 15,279 111 (100 ) 15,290 (1 ) States, municipalities, and political subdivisions 14,888 125 (88 ) 14,925 — $ 77,835 $ 1,528 $ (424 ) $ 78,939 $ (6 ) Held to maturity U.S. Treasury and agency $ 908 $ 12 $ (5 ) $ 915 $ — Foreign 1,738 27 (8 ) 1,757 — Corporate securities 3,159 67 (7 ) 3,219 — Mortgage-backed securities 2,724 23 (5 ) 2,742 — States, municipalities, and political subdivisions 5,806 50 (15 ) 5,841 — $ 14,335 $ 179 $ (40 ) $ 14,474 $ — |
Schedule Of Amortized Cost and Fair Value of Available-for-sale Securities and Related OTTI Recognized in AOCI | March 31, 2018 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 $ 3,893 $ 22 $ (77 ) $ 3,838 $ — Foreign 21,705 513 (187 ) 22,031 — Corporate securities 23,509 332 (274 ) 23,567 (4 ) Mortgage-backed securities 16,116 53 (349 ) 15,820 (1 ) States, municipalities, and political subdivisions 13,985 61 (191 ) 13,855 — $ 79,208 $ 981 $ (1,078 ) $ 79,111 $ (5 ) Held to maturity U.S. Treasury and agency $ 1,037 $ 9 $ (14 ) $ 1,032 $ — Foreign 1,754 17 (20 ) 1,751 — Corporate securities 3,026 26 (55 ) 2,997 — Mortgage-backed securities 2,681 11 (45 ) 2,647 — States, municipalities, and political subdivisions 5,755 18 (78 ) 5,695 — $ 14,253 $ 81 $ (212 ) $ 14,122 $ — December 31, 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 $ 3,701 $ 32 $ (35 ) $ 3,698 $ — Foreign 20,514 622 (106 ) 21,030 (1 ) Corporate securities 23,453 638 (95 ) 23,996 (4 ) Mortgage-backed securities 15,279 111 (100 ) 15,290 (1 ) States, municipalities, and political subdivisions 14,888 125 (88 ) 14,925 — $ 77,835 $ 1,528 $ (424 ) $ 78,939 $ (6 ) Held to maturity U.S. Treasury and agency $ 908 $ 12 $ (5 ) $ 915 $ — Foreign 1,738 27 (8 ) 1,757 — Corporate securities 3,159 67 (7 ) 3,219 — Mortgage-backed securities 2,724 23 (5 ) 2,742 — States, municipalities, and political subdivisions 5,806 50 (15 ) 5,841 — $ 14,335 $ 179 $ (40 ) $ 14,474 $ — |
Schedule Of Fixed Maturities By Contractual Maturity | The following table presents fixed maturities by contractual maturity: March 31 December 31 2018 2017 (in millions of U.S. dollars) Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Due in 1 year or less $ 3,735 $ 3,746 $ 3,164 $ 3,182 Due after 1 year through 5 years 25,140 25,251 24,749 25,068 Due after 5 years through 10 years 25,243 25,097 25,388 25,704 Due after 10 years 8,974 9,197 9,255 9,695 63,092 63,291 62,556 63,649 Mortgage-backed securities 16,116 15,820 15,279 15,290 $ 79,208 $ 79,111 $ 77,835 $ 78,939 Held to maturity Due in 1 year or less $ 838 $ 840 $ 743 $ 746 Due after 1 year through 5 years 2,684 2,678 2,669 2,688 Due after 5 years through 10 years 4,713 4,635 4,744 4,756 Due after 10 years 3,337 3,322 3,455 3,542 11,572 11,475 11,611 11,732 Mortgage-backed securities 2,681 2,647 2,724 2,742 $ 14,253 $ 14,122 $ 14,335 $ 14,474 |
Schedule of Realized Gain (Loss) | The following table presents the components of Net realized gains (losses): Three Months Ended March 31 (in millions of U.S. dollars) 2018 2017 Fixed maturities: OTTI on fixed maturities, gross $ (1 ) $ (6 ) OTTI on fixed maturities recognized in OCI (pre-tax) — — OTTI on fixed maturities, net (1 ) (6 ) Gross realized gains excluding OTTI 66 34 Gross realized losses excluding OTTI (88 ) (40 ) Total fixed maturities (23 ) (12 ) Equity securities: OTTI on equity securities — (5 ) Gross realized gains excluding OTTI 10 9 Gross realized losses excluding OTTI (21 ) — Total equity securities (11 ) 4 OTTI on other investments — (8 ) Other investments 29 — Foreign exchange losses (77 ) (19 ) Investment and embedded derivative instruments 17 6 Fair value adjustments on insurance derivative 38 93 S&P put options and futures 22 (74 ) Other derivative instruments 2 2 Other 1 1 Net realized gains (losses) $ (2 ) $ (7 ) |
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 March 31 (in millions of U.S. dollars) 2018 2017 Balance of credit losses related to securities still held – beginning of period $ 22 $ 35 Additions where no OTTI was previously recorded — — Additions where an OTTI was previously recorded — 1 Reductions for securities sold during the period (7 ) (4 ) Balance of credit losses related to securities still held – end of period $ 15 $ 32 |
Gain (Loss) on Investments [Table Text Block] | Effective January 1, 2018, we adopted new accounting guidance that requires any changes in fair value of equity securities and other investments that are accounted for under the cost-method to be recognized immediately in realized gains and losses in net income. As a result, beginning on January 1, 2018, realized gains and losses from these investments include both sales of securities and unrealized gains and losses as follows: Three Months Ended March 31, 2018 (in millions of U.S. dollars) Equity Securities Other Investments Net gains (losses) recognized during the period $ (11 ) $ 29 Less: Net gains (losses) recognized from sales of securities 10 — Unrealized gains (losses) recognized for securities still held at reporting date $ (21 ) $ 29 |
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 March 31, 2018 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 $ 2,869 $ (55 ) $ 1,314 $ (36 ) $ 4,183 $ (91 ) Foreign 8,715 (155 ) 1,643 (52 ) 10,358 (207 ) Corporate securities 12,355 (260 ) 1,501 (69 ) 13,856 (329 ) Mortgage-backed securities 12,313 (257 ) 3,033 (137 ) 15,346 (394 ) States, municipalities, and political subdivisions 15,030 (218 ) 1,343 (51 ) 16,373 (269 ) Total fixed maturities $ 51,282 $ (945 ) $ 8,834 $ (345 ) $ 60,116 $ (1,290 ) 0 – 12 Months Over 12 Months Total December 31, 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 $ 2,172 $ (14 ) $ 1,249 $ (26 ) $ 3,421 $ (40 ) Foreign 5,657 (65 ) 1,693 (49 ) 7,350 (114 ) Corporate securities 5,210 (56 ) 1,332 (46 ) 6,542 (102 ) Mortgage-backed securities 6,194 (31 ) 3,209 (74 ) 9,403 (105 ) States, municipalities, and political subdivisions 9,259 (71 ) 1,402 (32 ) 10,661 (103 ) Total fixed maturities 28,492 (237 ) 8,885 (227 ) 37,377 (464 ) Equity securities 115 (12 ) — — 115 (12 ) Other investments 78 (8 ) — — 78 (8 ) Total $ 28,685 $ (257 ) $ 8,885 $ (227 ) $ 37,570 $ (484 ) |
Schedule Of Components Of Restricted Assets | The following table presents the components of restricted assets: March 31 December 31 (in millions of U.S. dollars) 2018 2017 Trust funds $ 17,029 $ 17,011 Deposits with U.S. regulatory authorities 2,463 2,345 Deposits with non-U.S. regulatory authorities 2,290 2,250 Assets pledged under repurchase agreements 1,460 1,434 Other pledged assets 433 414 $ 23,675 $ 23,454 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 3,094 $ 744 $ — $ 3,838 Foreign — 21,855 176 22,031 Corporate securities — 22,494 1,073 23,567 Mortgage-backed securities — 15,737 83 15,820 States, municipalities, and political subdivisions — 13,855 — 13,855 3,094 74,685 1,332 79,111 Equity securities 884 — 64 948 Short-term investments 1,735 1,127 12 2,874 Other investments (1) 451 318 270 1,039 Securities lending collateral — 2,039 — 2,039 Investment derivative instruments 25 — — 25 Other derivative instruments 78 — — 78 Separate account assets 2,774 100 — 2,874 Total assets measured at fair value (1) $ 9,041 $ 78,269 $ 1,678 $ 88,988 Liabilities: Investment derivative instruments $ 29 $ — $ — $ 29 Other derivative instruments — — 2 2 GLB (2) — — 167 167 Total liabilities measured at fair value $ 29 $ — $ 169 $ 198 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 3,866 million and other investments of $ 14 million at March 31, 2018 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, 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 $ 3,129 $ 569 $ — $ 3,698 Foreign — 20,937 93 21,030 Corporate securities — 22,959 1,037 23,996 Mortgage-backed securities — 15,212 78 15,290 States, municipalities, and political subdivisions — 14,925 — 14,925 3,129 74,602 1,208 78,939 Equity securities 893 — 44 937 Short-term investments 2,309 1,252 — 3,561 Other investments (1) 466 305 263 1,034 Securities lending collateral — 1,737 — 1,737 Investment derivative instruments 18 — — 18 Other derivative instruments 1 — — 1 Separate account assets 2,635 99 — 2,734 Total assets measured at fair value (1) $ 9,451 $ 77,995 $ 1,515 $ 88,961 Liabilities: Investment derivative instruments $ 30 $ — $ — $ 30 Other derivative instruments 21 — 2 23 GLB (2) — — 204 204 Total liabilities measured at fair value $ 51 $ — $ 206 $ 257 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,623 million and other investments of $15 million at December 31, 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. |
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: March 31 December 31 Expected Liquidation Period of Underlying Assets 2018 2017 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 5 to 9 Years $ 538 $ 327 $ 540 $ 330 Real Assets 3 to 7 Years 656 210 651 114 Distressed 3 to 7 Years 295 131 289 141 Private Credit 3 to 7 Years 173 320 187 327 Traditional 3 to 15 Years 1,901 2,858 1,656 3,149 Vintage 1 to 2 Years 27 — 30 — Investment funds Not Applicable 276 — 270 — $ 3,866 $ 3,846 $ 3,623 $ 4,061 |
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 March 31, 2018 December 31, 2017 GLB (1) $ 167 $ 204 Actuarial model Lapse rate 3% – 33% Annuitization rate 0% – 100% (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 3 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 (2) March 31, 2018 Foreign Corporate securities (1) MBS (in millions of U.S. dollars) Balance – beginning of period $ 93 $ 1,037 $ 78 $ 44 $ — $ 263 $ 2 $ 204 Transfers into Level 3 7 — 1 — 5 — — — Transfers out of Level 3 — (10 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI, including Foreign Exchange 9 (3 ) — 1 — 2 — — Net Realized Gains/Losses — — — 2 — — — (37 ) Purchases 87 139 4 17 8 14 — — Sales (19 ) (51 ) — — — — — — Settlements (1 ) (39 ) — — (1 ) (9 ) — — Balance – end of period $ 176 $ 1,073 $ 83 $ 64 $ 12 $ 270 $ 2 $ 167 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ — $ (37 ) (1) Purchases in Level 3 primarily consist of privately-placed fixed income securities. (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 $529 million at March 31, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $167 million and $204 million , respectively. Assets Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) March 31, 2017 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 74 $ 681 $ 45 $ 41 $ 25 $ 225 $ 13 $ 559 Transfers into Level 3 — 29 — — — — — — Transfers out of Level 3 — (54 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI (1 ) (8 ) — — — 4 — — Net Realized Gains/Losses (1 ) (1 ) — — — — (2 ) (93 ) Purchases 14 156 1 — 7 8 — — Sales (3 ) (27 ) (1 ) — — — — — Settlements (3 ) (39 ) — — (11 ) (4 ) — — Balance – end of period $ 80 $ 737 $ 45 $ 41 $ 21 $ 233 $ 11 $ 466 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ (2 ) $ (93 ) (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 $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively. |
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 (2) March 31, 2018 Foreign Corporate securities (1) MBS (in millions of U.S. dollars) Balance – beginning of period $ 93 $ 1,037 $ 78 $ 44 $ — $ 263 $ 2 $ 204 Transfers into Level 3 7 — 1 — 5 — — — Transfers out of Level 3 — (10 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI, including Foreign Exchange 9 (3 ) — 1 — 2 — — Net Realized Gains/Losses — — — 2 — — — (37 ) Purchases 87 139 4 17 8 14 — — Sales (19 ) (51 ) — — — — — — Settlements (1 ) (39 ) — — (1 ) (9 ) — — Balance – end of period $ 176 $ 1,073 $ 83 $ 64 $ 12 $ 270 $ 2 $ 167 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ — $ (37 ) (1) Purchases in Level 3 primarily consist of privately-placed fixed income securities. (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 $529 million at March 31, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $167 million and $204 million , respectively. Assets Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other Other derivative instruments GLB (1) March 31, 2017 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 74 $ 681 $ 45 $ 41 $ 25 $ 225 $ 13 $ 559 Transfers into Level 3 — 29 — — — — — — Transfers out of Level 3 — (54 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI (1 ) (8 ) — — — 4 — — Net Realized Gains/Losses (1 ) (1 ) — — — — (2 ) (93 ) Purchases 14 156 1 — 7 8 — — Sales (3 ) (27 ) (1 ) — — — — — Settlements (3 ) (39 ) — — (11 ) (4 ) — — Balance – end of period $ 80 $ 737 $ 45 $ 41 $ 21 $ 233 $ 11 $ 466 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ — $ — $ — $ (2 ) $ (93 ) (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 $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively. |
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: March 31, 2018 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 $ 977 $ 55 $ — $ 1,032 $ 1,037 Foreign — 1,751 — 1,751 1,754 Corporate securities — 2,964 33 2,997 3,026 Mortgage-backed securities — 2,647 — 2,647 2,681 States, municipalities, and political subdivisions — 5,695 — 5,695 5,755 Total assets $ 977 $ 13,112 $ 33 $ 14,122 $ 14,253 Liabilities: Repurchase agreements $ — $ 1,412 $ — $ 1,412 $ 1,412 Short-term debt — 1,704 — 1,704 1,669 Long-term debt — 13,023 — 13,023 12,786 Trust preferred securities — 466 — 466 308 Total liabilities $ — $ 16,605 $ — $ 16,605 $ 16,175 December 31, 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 $ 857 $ 58 $ — $ 915 $ 908 Foreign — 1,757 — 1,757 1,738 Corporate securities — 3,184 35 3,219 3,159 Mortgage-backed securities — 2,742 — 2,742 2,724 States, municipalities, and political subdivisions — 5,841 — 5,841 5,806 Total assets $ 857 $ 13,582 $ 35 $ 14,474 $ 14,335 Liabilities: Repurchase agreements $ — $ 1,408 $ — $ 1,408 $ 1,408 Short-term debt — 1,013 — 1,013 1,013 Long-term debt — 12,332 — 12,332 11,556 Trust preferred securities — 468 — 468 308 Total liabilities $ — $ 15,221 $ — $ 15,221 $ 14,285 |
Unpaid losses and loss expens25
Unpaid losses and loss expenses Unpaid losses and loss expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: Three Months Ended March 31 (in millions of U.S. dollars) 2018 2017 Gross unpaid losses and loss expenses – beginning of period $ 63,179 $ 60,540 Reinsurance recoverable on unpaid losses - beginning of period (1) (14,014 ) (12,708 ) Net unpaid losses and loss expenses – beginning of period 49,165 47,832 Net losses and loss expenses incurred in respect of losses occurring in: Current year 4,358 4,078 Prior years (2) (256 ) (289 ) Total 4,102 3,789 Net losses and loss expenses paid in respect of losses occurring in: Current year 809 798 Prior years 3,433 3,109 Total 4,242 3,907 Foreign currency revaluation and other 292 54 Net unpaid losses and loss expenses – end of period 49,317 47,768 Reinsurance recoverable on unpaid losses (3) 13,822 12,811 Gross unpaid losses and loss expenses – end of period $ 63,139 $ 60,579 (1) Net of provision for uncollectible reinsurance of $321 million and $300 million at December 31, 2017 and 2016, respectively. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums totaling $47 million and $58 million for the three months ended March 31, 2018 and 2017, respectively. (3) Net of provision for uncollectible reinsurance of $320 million and $334 million at March 31, 2018 and 2017, respectively. |
Prior Period Development, by Segment [Table Text Block] | Three Months Ended March 31 (in millions of U.S. dollars) Long-tail Short-tail Total 2018 North America Commercial P&C Insurance $ 8 $ (109 ) $ (101 ) North America Personal P&C Insurance — (6 ) (6 ) North America Agricultural Insurance — (76 ) (76 ) Overseas General Insurance — (22 ) (22 ) Global Reinsurance — (14 ) (14 ) Corporate 10 — 10 Total $ 18 $ (227 ) $ (209 ) 2017 North America Commercial P&C Insurance $ (94 ) $ (85 ) $ (179 ) North America Personal P&C Insurance — (3 ) (3 ) North America Agricultural Insurance — (79 ) (79 ) Overseas General Insurance 32 (20 ) 12 Global Reinsurance 8 — 8 Corporate 10 — 10 Total $ (44 ) $ (187 ) $ (231 ) |
Commitments, contingencies, a26
Commitments, contingencies, and guarantees (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 December 31, 2017 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) $ 19 $ (17 ) $ 2,125 $ 14 $ (27 ) $ 2,064 Cross-currency swaps OA / (AP) — — 45 — — 45 Options/Futures contracts on notes and bonds OA / (AP) 6 (12 ) 1,093 4 (3 ) 1,007 Convertible securities (1) FM AFS / ES 7 — 8 5 — 6 $ 32 $ (29 ) $ 3,271 $ 23 $ (30 ) $ 3,122 Other derivative instruments: Futures contracts on equities (2) OA / (AP) $ 71 $ — $ 1,625 $ — $ (21 ) $ 1,553 Other OA / (AP) 7 (2 ) 326 1 (2 ) 75 $ 78 $ (2 ) $ 1,951 $ 1 $ (23 ) $ 1,628 GLB (3) (AP) / (FPB) $ — $ (529 ) $ 1,175 $ — $ (550 ) $ 1,083 (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 March 31 December 31 2018 2017 (in millions of U.S. dollars) Overnight and Continuous Collateral held under securities lending agreements: Cash $ 826 $ 828 U.S. Treasury and agency 40 36 Foreign 869 712 Corporate securities 8 — Mortgage-backed securities 59 74 Equity securities 237 87 $ 2,039 $ 1,737 Gross amount of recognized liability for securities lending payable $ 2,039 $ 1,737 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 March 31, 2018 December 31, 2017 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: U.S. Treasury and agency $ — $ 243 $ 243 $ 9 $ 230 $ 239 Mortgage-backed securities 486 731 1,217 369 826 1,195 $ 486 $ 974 $ 1,460 $ 378 $ 1,056 $ 1,434 Gross amount of recognized liabilities for repurchase agreements $ 1,412 $ 1,408 Difference (1) $ 48 $ 26 |
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 March 31 (in millions of U.S. dollars) 2018 2017 Investment and embedded derivative instruments: Foreign currency forward contracts $ 4 $ 14 All other futures contracts and options 13 (8 ) Total investment and embedded derivative instruments $ 17 $ 6 GLB and other derivative instruments: GLB (1) $ 38 $ 93 Futures contracts on equities (2) 22 (74 ) Other 2 2 Total GLB and other derivative instruments $ 62 $ 21 $ 79 $ 27 (1) Excludes foreign exchange gains (losses) related to GLB. (2) Related to GMDB and GLB blocks of business. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Dividends Declared [Table Text Block] | |
Share Repurchase Program [Table Text Block] | The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations: Three Months Ended March 31 (in millions of U.S. dollars, except share data) 2018 2017 Number of shares repurchased — 1,036,064 Cost of shares repurchased $ — $ 140 Repurchase authorization remaining at end of period $ 1,000 $ 860 |
Postretirement benefits (Tables
Postretirement benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | 9 . 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: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Three Months Ended March 31 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions of U.S. dollars) Service cost $ 14 $ 3 $ 16 $ 4 $ — $ — Interest cost 26 7 26 7 1 1 Expected return on plan assets (53 ) (13 ) (47 ) (10 ) (1 ) (1 ) Amortization of prior service cost — — — — (21 ) (23 ) Net periodic (benefit) cost $ (13 ) $ (3 ) $ (5 ) $ 1 $ (21 ) $ (23 ) |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 (in millions of U.S. dollars) Net premiums written $ 2,812 $ 1,048 $ 108 $ 2,384 $ 193 $ 559 $ — $ 7,104 Net premiums earned 3,029 1,140 43 2,107 168 540 — 7,027 Losses and loss expenses 1,908 886 (53 ) 1,078 67 205 11 4,102 Policy benefits — — — — — 151 — 151 Policy acquisition costs 472 237 (1 ) 588 40 128 — 1,464 Administrative expenses 231 65 (3 ) 239 10 78 72 692 Underwriting income (loss) 418 (48 ) 100 202 51 (22 ) (83 ) 618 Net investment income (loss) 503 59 7 151 64 83 (61 ) 806 Other (income) expense (6 ) — — 7 (7 ) (4 ) (37 ) (47 ) Amortization expense of purchased intangibles — 3 7 10 — 1 64 85 Segment income (loss) $ 927 $ 8 $ 100 $ 336 $ 122 $ 64 $ (171 ) $ 1,386 Net realized gains (losses) including OTTI (2 ) (2 ) Interest expense 157 157 Chubb integration expenses 10 10 Income tax expense 135 135 Net income (loss) $ (475 ) $ 1,082 North America Commercial P&C Insurance (1) North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance (1) Global Reinsurance Life Insurance Corporate Chubb Consolidated For the Three Months Ended March 31, 2017 (in millions of U.S. dollars) Net premiums written $ 2,730 $ 984 $ 61 $ 2,212 $ 199 $ 524 $ — $ 6,710 Net premiums earned 3,041 1,086 14 1,936 189 506 — 6,772 Losses and loss expenses 1,860 633 (73 ) 1,071 94 193 11 3,789 Policy benefits — — — — — 168 — 168 Policy acquisition costs 487 217 (1 ) 529 51 114 — 1,397 Administrative expenses 231 65 (5 ) 245 10 72 58 676 Underwriting income (loss) 463 171 93 91 34 (41 ) (69 ) 742 Net investment income (loss) 478 55 6 148 62 75 (79 ) 745 Other (income) expense 4 1 — (1 ) — (29 ) (45 ) (70 ) Amortization expense of purchased intangibles — 3 7 11 — 1 42 64 Segment income (loss) $ 937 $ 222 $ 92 $ 229 $ 96 $ 62 $ (145 ) $ 1,493 Net realized gains (losses) including OTTI (7 ) (7 ) Interest expense 154 154 Chubb integration expenses 111 111 Income tax expense 128 128 Net income (loss) $ (545 ) $ 1,093 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | Three Months Ended March 31 (in millions of U.S. dollars, except share and per share data) 2018 2017 Numerator: Net income $ 1,082 $ 1,093 Denominator: Denominator for basic earnings per share: Weighted-average shares outstanding 465,703,240 468,903,086 Denominator for diluted earnings per share: Share-based compensation plans 3,770,351 3,828,604 Weighted-average shares outstanding and assumed conversions 469,473,591 472,731,690 Basic earnings per share $ 2.32 $ 2.33 Diluted earnings per share $ 2.30 $ 2.31 Potential anti-dilutive share conversions 2,116,188 969,654 |
Information provided in conne31
Information provided in connection with outstanding debt of subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Table Text Block Supplement [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet at March 31, 2018 (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 $ — $ 186 $ 101,919 $ — $ 102,105 Cash (1) 1 864 1,523 (400 ) 1,988 Restricted cash — — 125 — 125 Insurance and reinsurance balances receivable — — 10,308 (738 ) 9,570 Reinsurance recoverable on losses and loss expenses — — 26,093 (11,111 ) 14,982 Reinsurance recoverable on policy benefits — — 1,181 (1,000 ) 181 Value of business acquired — — 321 — 321 Goodwill and other intangible assets — — 22,123 — 22,123 Investments in subsidiaries 43,032 51,930 — (94,962 ) — Due from subsidiaries and affiliates, net 8,980 — 251 (9,231 ) — Other assets 4 386 18,459 (1,463 ) 17,386 Total assets $ 52,017 $ 53,366 $ 182,303 $ (118,905 ) $ 168,781 Liabilities Unpaid losses and loss expenses $ — $ — $ 74,299 $ (11,160 ) $ 63,139 Unearned premiums — — 16,563 (1,068 ) 15,495 Future policy benefits — — 6,412 (1,000 ) 5,412 Due to subsidiaries and affiliates, net — 9,231 — (9,231 ) — Affiliated notional cash pooling programs (1) 400 — — (400 ) — Repurchase agreements — — 1,412 — 1,412 Short-term debt — 1,669 — — 1,669 Long-term debt — 12,775 11 — 12,786 Trust preferred securities — 308 — — 308 Other liabilities 330 1,537 16,490 (1,084 ) 17,273 Total liabilities 730 25,520 115,187 (23,943 ) 117,494 Total shareholders’ equity 51,287 27,846 67,116 (94,962 ) 51,287 Total liabilities and shareholders’ equity $ 52,017 $ 53,366 $ 182,303 $ (118,905 ) $ 168,781 (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 March 31, 2018 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Balance Sheet at December 31, 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 $ — $ 168 $ 102,276 $ — $ 102,444 Cash (1) 3 1 839 (115 ) 728 Restricted cash — — 123 — 123 Insurance and reinsurance balances receivable — — 10,820 (1,486 ) 9,334 Reinsurance recoverable on losses and loss expenses — — 27,514 (12,480 ) 15,034 Reinsurance recoverable on policy benefits — — 1,194 (1,010 ) 184 Value of business acquired — — 326 — 326 Goodwill and other intangible assets — — 22,054 — 22,054 Investments in subsidiaries 41,909 51,165 — (93,074 ) — Due from subsidiaries and affiliates, net 9,639 — — (9,639 ) — Other assets 3 287 20,578 (4,073 ) 16,795 Total assets $ 51,554 $ 51,621 $ 185,724 $ (121,877 ) $ 167,022 Liabilities Unpaid losses and loss expenses $ — $ — $ 74,767 $ (11,588 ) $ 63,179 Unearned premiums — — 18,875 (3,659 ) 15,216 Future policy benefits — — 6,331 (1,010 ) 5,321 Due to subsidiaries and affiliates, net — 9,432 207 (9,639 ) — Affiliated notional cash pooling programs (1) — 115 — (115 ) — Repurchase agreements — — 1,408 — 1,408 Short-term debt — 1,013 — — 1,013 Long-term debt — 11,546 10 — 11,556 Trust preferred securities — 308 — — 308 Other liabilities 382 1,411 18,848 (2,792 ) 17,849 Total liabilities 382 23,825 120,446 (28,803 ) 115,850 Total shareholders’ equity 51,172 27,796 65,278 (93,074 ) 51,172 Total liabilities and shareholders’ equity $ 51,554 $ 51,621 $ 185,724 $ (121,877 ) $ 167,022 (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, 2017 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Condensed Consolidating Statement Of Operations and Comprehensive Income | Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 2018 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 $ — $ — $ 7,104 $ — $ 7,104 Net premiums earned — — 7,027 — 7,027 Net investment income 2 4 800 — 806 Equity in earnings of subsidiaries 1,022 885 — (1,907 ) — Net realized gains (losses) including OTTI (2 ) (24 ) 24 — (2 ) Losses and loss expenses — — 4,102 — 4,102 Policy benefits — — 151 — 151 Policy acquisition costs and administrative expenses 18 22 2,116 — 2,156 Interest (income) expense (80 ) 209 28 — 157 Other (income) expense (5 ) 8 (50 ) — (47 ) Amortization of purchased intangibles — — 85 — 85 Chubb integration expenses 2 1 7 — 10 Income tax expense (benefit) 5 (59 ) 189 — 135 Net income $ 1,082 $ 684 $ 1,223 $ (1,907 ) $ 1,082 Comprehensive income $ 453 $ 216 $ 614 $ (830 ) $ 453 Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 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 $ — $ — $ 6,710 $ — $ 6,710 Net premiums earned — — 6,772 — 6,772 Net investment income — 3 742 — 745 Equity in earnings of subsidiaries 1,027 701 — (1,728 ) — Net realized gains (losses) including OTTI — (13 ) 6 — (7 ) Losses and loss expenses — — 3,789 — 3,789 Policy benefits — — 168 — 168 Policy acquisition costs and administrative expenses 18 14 2,041 — 2,073 Interest (income) expense (84 ) 221 17 — 154 Other (income) expense (6 ) 15 (79 ) — (70 ) Amortization of purchased intangibles — — 64 — 64 Chubb integration expenses — 49 62 — 111 Income tax expense (benefit) 6 (112 ) 234 — 128 Net income $ 1,093 $ 504 $ 1,224 $ (1,728 ) $ 1,093 Comprehensive income $ 1,407 $ 791 $ 1,538 $ (2,329 ) $ 1,407 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2018 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 $ 24 $ 2,727 $ 800 $ (3,000 ) $ 551 Cash flows from investing activities Purchases of fixed maturities available for sale — (8 ) (5,964 ) — (5,972 ) Purchases of fixed maturities held to maturity — — (162 ) — (162 ) Purchases of equity securities — — (55 ) — (55 ) Sales of fixed maturities available for sale — — 2,562 — 2,562 Sales of equity securities — — 40 — 40 Maturities and redemptions of fixed maturities available for sale — 3 1,862 — 1,865 Maturities and redemptions of fixed maturities held to maturity — — 255 — 255 Net change in short-term investments — (14 ) 745 — 731 Net derivative instruments settlements — (7 ) 46 — 39 Private equity contributions — — (353 ) — (353 ) Private equity distributions — — 201 — 201 Capital contribution (750 ) (3,500 ) — 4,250 — Other — (3 ) (29 ) — (32 ) Net cash flows used for investing activities (750 ) (3,529 ) (852 ) 4,250 (881 ) Cash flows from financing activities Dividends paid on Common Shares (330 ) — — — (330 ) Common Shares repurchased — — (29 ) — (29 ) Proceeds from issuance of long-term debt — 2,175 — — 2,175 Repayment of long-term debt — (300 ) — — (300 ) Proceeds from issuance of repurchase agreements — — 408 — 408 Repayment of repurchase agreements — — (404 ) — (404 ) Proceeds from share-based compensation plans — — 34 — 34 Dividend to parent company — — (3,000 ) 3,000 — Advances (to) from affiliates 656 (95 ) (561 ) — — Capital contribution — — 4,250 (4,250 ) — Net proceeds from (payments to) affiliated notional cash pooling programs (1) 400 (115 ) — (285 ) — Policyholder contract deposits — — 118 — 118 Policyholder contract withdrawals — — (105 ) — (105 ) Net cash flows from financing activities 726 1,665 711 (1,535 ) 1,567 Effect of foreign currency rate changes on cash and restricted cash (2 ) — 27 — 25 Net increase (decrease) in cash and restricted cash (2 ) 863 686 (285 ) 1,262 Cash and restricted cash – beginning of period (1) 3 1 962 (115 ) 851 Cash and restricted cash – end of period (1) $ 1 $ 864 $ 1,648 $ (400 ) $ 2,113 (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 March 31, 2018 and December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 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 cash flows from (used for) operating activities $ 584 $ (156 ) $ 1,081 $ (496 ) $ 1,013 Cash flows from investing activities Purchases of fixed maturities available for sale — (4 ) (6,246 ) — (6,250 ) Purchases of fixed maturities held to maturity — — (157 ) — (157 ) Purchases of equity securities — — (37 ) — (37 ) Sales of fixed maturities available for sale — — 3,395 — 3,395 Sales of equity securities — — 46 — 46 Maturities and redemptions of fixed maturities available for sale — 7 2,536 — 2,543 Maturities and redemptions of fixed maturities held to maturity — — 240 — 240 Net change in short-term investments — 173 59 — 232 Net derivative instruments settlements — (2 ) (87 ) — (89 ) Private equity contributions — — (198 ) — (198 ) Private equity distributions — — 315 — 315 Other — — (106 ) — (106 ) Net cash flows from (used for) investing activities — 174 (240 ) — (66 ) Cash flows from financing activities Dividends paid on Common Shares (324 ) — — — (324 ) Common Shares repurchased — — (128 ) — (128 ) Proceeds from issuance of repurchase agreements — — 753 — 753 Repayment of long-term debt — (500 ) — — (500 ) Repayment of repurchase agreements — — (752 ) — (752 ) Proceeds from share-based compensation plans — — 42 — 42 Dividend to parent company — — (496 ) 496 — Advances (to) from affiliates 108 (171 ) 63 — — Net proceeds from (payments to) affiliated notional cash pooling programs (1) (363 ) 653 — (290 ) — Policyholder contract deposits — — 109 — 109 Policyholder contract withdrawals — — (58 ) — (58 ) Net cash flows used for financing activities (579 ) (18 ) (467 ) 206 (858 ) Effect of foreign currency rate changes on cash and restricted cash — — (17 ) — (17 ) Net increase in cash and restricted cash 5 — 357 (290 ) 72 Cash and restricted cash – beginning of period (1) 1 1 2,068 (982 ) 1,088 Cash and restricted cash – end of period (1) $ 6 $ 1 $ 2,425 $ (1,272 ) $ 1,160 (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 March 31, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
General Schedule of Cash and Ca
General Schedule of Cash and Cash Equivalent (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |||
Cash and Cash Equivalents [Line Items] | |||||||
Cash | $ 1,988 | [1] | $ 728 | [2] | |||
Restricted Cash | [1] | 125 | 123 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 2,113 | $ 851 | $ 1,160 | $ 1,088 | |||
[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 March 31, 2018, 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 December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
General Goodwill (Details)
General Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Period Increase (Decrease) | $ 145 |
General Adoption of New Account
General Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 450 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect on Retained Earnings, Tax | $ 7 | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | $ 454 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Adjustments for New Accounting Pronouncement [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ 416 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018USD ($)Security | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Investment [Line Items] | |||
Available-for-sale Equity Securities, Amortized Cost Basis | $ 948 | $ 737 | |
Net unrealized appreciation (depreciation) included in OCI | 4 | $ 0 | |
Unrealized appreciation(depreciation) portion of AOCI with OTTI included in AOCI | $ 3 | $ 7 | |
Percentage of mortgage-backed securities represented by investments in US government agency bonds | 82.00% | 83.00% | |
Total number of fixed maturities | Security | 31,179 | ||
Restricted assets in fixed maturities and short-term investments | $ 23,600 | $ 23,300 | |
Restricted assets in cash | $ 125 | 123 | |
Moodys Historical Mean Recovery Rate | 42.00% | ||
Company Assumed Recovery Rate | 32.00% | ||
Number of fixed maturities in an unrealized loss position | Security | 15,699 | ||
Largest single unrealized loss in the fixed maturities | $ 10 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 212 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 12 | ||
Equity securities, at fair value (cost – $948 and $737) | 948 | $ 937 | |
Corporate [Member] | |||
Investment [Line Items] | |||
Credit losses recognized in net income | 0 | 1 | |
Collateralized Mortgage Backed Securities [Member] | |||
Investment [Line Items] | |||
Credit losses recognized in net income | $ 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 | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | $ 79,208 | $ 77,835 |
Available-for-sale,Gross Unrealized Gain | 981 | 1,528 |
Available-for-sale, Gross Unrealized Depreciation | (1,078) | (424) |
Available for sale, Fair Value | 79,111 | 78,939 |
Available for sale, OTTI recognized in AOCI | (5) | (6) |
US Treasury and Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | 3,893 | 3,701 |
Available-for-sale,Gross Unrealized Gain | 22 | 32 |
Available-for-sale, Gross Unrealized Depreciation | (77) | (35) |
Available for sale, Fair Value | 3,838 | 3,698 |
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 | 21,705 | 20,514 |
Available-for-sale,Gross Unrealized Gain | 513 | 622 |
Available-for-sale, Gross Unrealized Depreciation | (187) | (106) |
Available for sale, Fair Value | 22,031 | 21,030 |
Available for sale, OTTI recognized in AOCI | 0 | (1) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | 23,509 | 23,453 |
Available-for-sale,Gross Unrealized Gain | 332 | 638 |
Available-for-sale, Gross Unrealized Depreciation | (274) | (95) |
Available for sale, Fair Value | 23,567 | 23,996 |
Available for sale, OTTI recognized in AOCI | (4) | (4) |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, at amortized cost | 16,116 | 15,279 |
Available-for-sale,Gross Unrealized Gain | 53 | 111 |
Available-for-sale, Gross Unrealized Depreciation | (349) | (100) |
Available for sale, Fair Value | 15,820 | 15,290 |
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 | 13,985 | 14,888 |
Available-for-sale,Gross Unrealized Gain | 61 | 125 |
Available-for-sale, Gross Unrealized Depreciation | (191) | (88) |
Available for sale, Fair Value | 13,855 | 14,925 |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Held to maturity, Amortized Cost | $ 14,253 | $ 14,335 |
Held to maturity, Gross Unrealized Appreciation | 81 | 179 |
Held to maturity, Gross Unrealized Depreciation | (212) | (40) |
Held to maturity, at Fair Value | 14,122 | 14,474 |
Held to maturity, OTTI recognized in AOCI | 0 | |
U.S. Treasury And Agency [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 1,037 | 908 |
Held to maturity, Gross Unrealized Appreciation | 9 | 12 |
Held to maturity, Gross Unrealized Depreciation | (14) | (5) |
Held to maturity, at Fair Value | 1,032 | 915 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Foreign [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 1,754 | 1,738 |
Held to maturity, Gross Unrealized Appreciation | 17 | 27 |
Held to maturity, Gross Unrealized Depreciation | (20) | (8) |
Held to maturity, at Fair Value | 1,751 | 1,757 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Corporate [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 3,026 | 3,159 |
Held to maturity, Gross Unrealized Appreciation | 26 | 67 |
Held to maturity, Gross Unrealized Depreciation | (55) | (7) |
Held to maturity, at Fair Value | 2,997 | 3,219 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Collateralized Mortgage Backed Securities [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 2,681 | 2,724 |
Held to maturity, Gross Unrealized Appreciation | 11 | 23 |
Held to maturity, Gross Unrealized Depreciation | (45) | (5) |
Held to maturity, at Fair Value | 2,647 | 2,742 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
States, Municipalities, And Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 5,755 | 5,806 |
Held to maturity, Gross Unrealized Appreciation | 18 | 50 |
Held to maturity, Gross Unrealized Depreciation | (78) | (15) |
Held to maturity, at Fair Value | 5,695 | 5,841 |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale, Due in 1 year or less, Amortized Cost | $ 3,735 | $ 3,164 |
Available for sale, Due after 1 year through 5 years, Amortized Cost | 25,140 | 24,749 |
Available for sale, Due after 5 years though 10 years, Amortized Cost | 25,243 | 25,388 |
Available for sale, Due after 10 years, Amortized Cost | 8,974 | 9,255 |
Available for sale, Subtotal, Amortized Cost | 63,092 | 62,556 |
Available for sale, Mortgage-backed securities, Amortized Cost | 16,116 | 15,279 |
Available for sale, at amortized cost | 79,208 | 77,835 |
Available for sale, Due in 1 year or less, Fair Value | 3,746 | 3,182 |
Available for sale, Due after 1 year through 5 years, Fair Value | 25,251 | 25,068 |
Available for sale, Due after 5 years through 10 years, Fair Value | 25,097 | 25,704 |
Available for sale, Due after 10 years, Fair Value | 9,197 | 9,695 |
Available for sale, Subtotal, Fair Value | 63,291 | 63,649 |
Available for sale, Mortgage backed securities, Fair Value | 15,820 | 15,290 |
Available for sale, Fair Value | 79,111 | 78,939 |
Held to maturity, Due in 1 year or less, Amortized Cost | 838 | 743 |
Held to maturity, Due after 1 year through 5 years, Amortized Cost | 2,684 | 2,669 |
Held to maturity, Due after 5 years through 10 years, Amortized Cost | 4,713 | 4,744 |
Held to maturity, Due after 10 years, Amortized Cost | 3,337 | 3,455 |
Held to maturity, Subtotal, Amortized Cost | 11,572 | 11,611 |
Held to maturity, Mortgage backed securities, Amortized Cost | 2,681 | 2,724 |
Held to maturity, Amortized Cost | 14,253 | 14,335 |
Held to maturity, Due in 1 year or less, Fair Value | 840 | 746 |
Held to maturity, Due after 1 year through 5, Fair Value | 2,678 | 2,688 |
Held to maturity, Due after 5 years through 10 years, Fair Value | 4,635 | 4,756 |
Held to maturity, Due after 10 years, Fair Value | 3,322 | 3,542 |
Held to maturity, Subtotal, Fair Value | 11,475 | 11,732 |
Held to maturity, Mortgage backed securities, Fair Value | 2,647 | 2,742 |
Held to maturity, Fair Value | $ 14,122 | $ 14,474 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Gain (Loss) on Investments [Line Items] | ||
Other-than-temporary impairment (OTTI) losses gross | $ (1) | $ (19) |
OTTI on fixed maturities recognized in OCI (pre-tax) | 0 | 0 |
Foreign exchange gains | (77) | (19) |
Derivative instrument | 79 | 27 |
Fair Value Adjustments On Insurance Derivative Gains Losses | 38 | 93 |
Net realized gains (losses) | (2) | (7) |
Investment and embedded derivative instruments | ||
Gain (Loss) on Investments [Line Items] | ||
Derivative instrument | 17 | 6 |
S&P put options and futures | ||
Gain (Loss) on Investments [Line Items] | ||
Derivative instrument | 22 | (74) |
Other derivative instruments | ||
Gain (Loss) on Investments [Line Items] | ||
Derivative instrument | 2 | 2 |
Fixed Maturities [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Other-than-temporary impairment (OTTI) losses gross | (1) | (6) |
OTTI on fixed maturities recognized in OCI (pre-tax) | 0 | 0 |
OTTI on fixed maturities, net | (1) | (6) |
Fixed maturities, Gross realized gains excluding OTTI | 66 | 34 |
Fixed maturities, Gross realized losses excluding OTTI | (88) | (40) |
Total fixed maturities | (23) | (12) |
Equity Securities [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
OTTI on equity securities | 0 | (5) |
Realized Investment Gains (Losses) | (11) | |
Equity Securities, Gross realized gains excluding OTTI | 10 | 9 |
Equity Securities, Gross realized losses excluding OTTI | (21) | 0 |
Total equity securities | (11) | 4 |
Other Investments [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
OTTI on equity securities | 0 | (8) |
Realized Investment Gains (Losses) | 29 | 0 |
Other | $ 1 | $ 1 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | $ 22 | $ 35 |
Additions where no OTTI was previously recorded | 0 | 0 |
Additions where an OTTI was previously recorded | 0 | 1 |
Reductions for securities sold during the period | (7) | (4) |
Balance of credit losses related to securities still held – end of period | $ 15 | $ 32 |
Investments Schedule of Gains a
Investments Schedule of Gains and Losses on Equity and Other Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity Securities [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Gain (Loss) on Sale of Investments | $ 10 | |
Realized Investment Gains (Losses) | (11) | |
Unrealized Gain (Loss) on Investments | (21) | |
Other Investments [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Gain (Loss) on Sale of Investments | 0 | |
Realized Investment Gains (Losses) | 29 | $ 0 |
Unrealized Gain (Loss) on Investments | $ 29 |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Fair Value, 0-12 Months | $ 28,685 | |
Gross Unrealized Loss, 0-12 Months | (257) | |
Fair Value, Over 12 Months | 8,885 | |
Gross Unrealized Loss, Over 12 Months | (227) | |
Total Fair Value | 37,570 | |
Total Gross Unrealized Loss | (484) | |
U.S. Treasury And Agency [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | $ 2,869 | 2,172 |
Gross Unrealized Loss, 0-12 Months | (55) | (14) |
Fair Value, Over 12 Months | 1,314 | 1,249 |
Gross Unrealized Loss, Over 12 Months | (36) | (26) |
Total Fair Value | 4,183 | 3,421 |
Total Gross Unrealized Loss | (91) | (40) |
Foreign [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 8,715 | 5,657 |
Gross Unrealized Loss, 0-12 Months | (155) | (65) |
Fair Value, Over 12 Months | 1,643 | 1,693 |
Gross Unrealized Loss, Over 12 Months | (52) | (49) |
Total Fair Value | 10,358 | 7,350 |
Total Gross Unrealized Loss | (207) | (114) |
Corporate [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 12,355 | 5,210 |
Gross Unrealized Loss, 0-12 Months | (260) | (56) |
Fair Value, Over 12 Months | 1,501 | 1,332 |
Gross Unrealized Loss, Over 12 Months | (69) | (46) |
Total Fair Value | 13,856 | 6,542 |
Total Gross Unrealized Loss | (329) | (102) |
Collateralized Mortgage Backed Securities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 12,313 | 6,194 |
Gross Unrealized Loss, 0-12 Months | (257) | (31) |
Fair Value, Over 12 Months | 3,033 | 3,209 |
Gross Unrealized Loss, Over 12 Months | (137) | (74) |
Total Fair Value | 15,346 | 9,403 |
Total Gross Unrealized Loss | (394) | (105) |
States, Municipalities, And Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 15,030 | 9,259 |
Gross Unrealized Loss, 0-12 Months | (218) | (71) |
Fair Value, Over 12 Months | 1,343 | 1,402 |
Gross Unrealized Loss, Over 12 Months | (51) | (32) |
Total Fair Value | 16,373 | 10,661 |
Total Gross Unrealized Loss | (269) | (103) |
Fixed Maturities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 51,282 | 28,492 |
Gross Unrealized Loss, 0-12 Months | (945) | (237) |
Fair Value, Over 12 Months | 8,834 | 8,885 |
Gross Unrealized Loss, Over 12 Months | (345) | (227) |
Total Fair Value | 60,116 | 37,377 |
Total Gross Unrealized Loss | $ (1,290) | (464) |
Equity Securities [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 115 | |
Gross Unrealized Loss, 0-12 Months | (12) | |
Fair Value, Over 12 Months | 0 | |
Gross Unrealized Loss, Over 12 Months | 0 | |
Total Fair Value | 115 | |
Total Gross Unrealized Loss | (12) | |
Other Long-term Investments [Member] | ||
Investment [Line Items] | ||
Fair Value, 0-12 Months | 78 | |
Gross Unrealized Loss, 0-12 Months | (8) | |
Fair Value, Over 12 Months | 0 | |
Gross Unrealized Loss, Over 12 Months | 0 | |
Total Fair Value | 78 | |
Total Gross Unrealized Loss | $ (8) |
Investments (Schedule Of Compon
Investments (Schedule Of Components Of Restricted Assets) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Trust funds | $ 17,029 | $ 17,011 |
Deposits with U.S. regulatory authorities | 2,463 | 2,345 |
Deposits with non-U.S. regulatory authorities | 2,290 | 2,250 |
Assets pledged under repurchase agreements | 1,460 | 1,434 |
Other pledged assets | 433 | 414 |
Total restricted assets | $ 23,675 | $ 23,454 |
Fair value measurements Fair Va
Fair value measurements Fair Value Measurements (narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Level 1 to Level 2 transfers, Amount | $ 0 | $ 0 |
Fair Value, Level 2 to Level 1 Transfers, Amount | $ 0 | |
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 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | [4] | Dec. 31, 2016 | [4] | Mar. 31, 2016 | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||
Available for sale, Fair Value | $ 79,111 | $ 78,939 | ||||||||
Equity securities, at fair value | 948 | 937 | ||||||||
Other Investments | 4,919 | 4,672 | ||||||||
Securities lending collateral | 2,039 | 1,737 | ||||||||
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member] | ||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||
Other Investments | 3,866 | 3,623 | ||||||||
Other Investments [Member] | ||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||||||||||
Other Investments | 14 | 15 | ||||||||
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 | 79,111 | 78,939 | ||||||||
Equity securities, at fair value | 948 | 937 | ||||||||
Short-term investments | 2,874 | 3,561 | ||||||||
Other Investments | 1,039 | 1,034 | ||||||||
Securities lending collateral | 2,039 | 1,737 | ||||||||
Investment derivative instruments, assets | 25 | 18 | ||||||||
Other Derivative Instruments Fair Value | 78 | 1 | ||||||||
Separate Account Assets | 2,874 | 2,734 | ||||||||
Total assets measured at fair value | 88,988 | [1] | 88,961 | [2] | ||||||
Investment derivative instruments, liabilities | 29 | 30 | ||||||||
Other derivative instruments, liability | 2 | 23 | ||||||||
Liabilities, Fair Value Disclosure, Recurring | 198 | 257 | ||||||||
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 | 3,094 | 3,129 | ||||||||
Equity securities, at fair value | 884 | 893 | ||||||||
Short-term investments | 1,735 | 2,309 | ||||||||
Other Investments | 451 | 466 | ||||||||
Investment derivative instruments, assets | 25 | 18 | ||||||||
Other Derivative Instruments Fair Value | 78 | 1 | ||||||||
Separate Account Assets | 2,774 | 2,635 | ||||||||
Total assets measured at fair value | 9,041 | [1] | 9,451 | [2] | ||||||
Investment derivative instruments, liabilities | 29 | 30 | ||||||||
Other derivative instruments, liability | 21 | |||||||||
Liabilities, Fair Value Disclosure, Recurring | 29 | 51 | ||||||||
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 | 74,685 | 74,602 | ||||||||
Short-term investments | 1,127 | 1,252 | ||||||||
Other Investments | 318 | 305 | ||||||||
Securities lending collateral | 2,039 | 1,737 | ||||||||
Separate Account Assets | 100 | 99 | ||||||||
Total assets measured at fair value | 78,269 | [1] | 77,995 | [2] | ||||||
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 | 1,332 | 1,208 | ||||||||
Equity securities, at fair value | 64 | 44 | ||||||||
Short-term investments | 12 | |||||||||
Other Investments | 270 | 263 | ||||||||
Total assets measured at fair value | 1,678 | [1] | 1,515 | [2] | ||||||
Other derivative instruments, liability | 2 | 2 | ||||||||
Liabilities, Fair Value Disclosure, Recurring | 169 | 206 | ||||||||
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 | 3,838 | 3,698 | ||||||||
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 | 3,094 | 3,129 | ||||||||
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 | 744 | 569 | ||||||||
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 | 22,031 | 21,030 | ||||||||
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 | 21,855 | 20,937 | ||||||||
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 | 176 | 93 | ||||||||
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 | 23,567 | 23,996 | ||||||||
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 | 22,494 | 22,959 | ||||||||
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 | 1,073 | 1,037 | ||||||||
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 | 15,820 | 15,290 | ||||||||
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 | 15,737 | 15,212 | ||||||||
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 | 83 | 78 | ||||||||
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 | 13,855 | 14,925 | ||||||||
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 | 13,855 | 14,925 | ||||||||
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 | 167 | [3] | 204 | [3] | $ 466 | $ 559 | $ 559 | |||
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 | 167 | [5] | 204 | |||||||
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 | $ 167 | [5] | 204 | [6] | ||||||
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 | [6] | $ 204 | ||||||||
[1] | (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,866 million and other investments of $14 million at March 31, 2018 measured using NAV as a practical expedient. | |||||||||
[2] | (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $3,623 million and other investments of $15 million at December 31, 2017 measured using NAV as a practical expedient. | |||||||||
[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 $529 million at March 31, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $167 million and $204 million, respectively. | |||||||||
[4] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. The liability for GLB reinsurance was $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively. | |||||||||
[5] | (2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. | |||||||||
[6] | (2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value And Maximum Future Funding Commitments Related To Investments) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 3,846 | $ 4,061 |
Fair Value | 3,866 | 3,623 |
Financial [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | 327 | 330 |
Fair Value | $ 538 | $ 540 |
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 | $ 210 | $ 114 |
Fair Value | $ 656 | $ 651 |
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 | $ 131 | $ 141 |
Fair Value | $ 295 | $ 289 |
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 | 3 years | 3 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 | 7 years | 7 years |
Private Credit [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 320 | $ 327 |
Fair Value | $ 173 | $ 187 |
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 | $ 2,858 | $ 3,149 |
Fair Value | $ 1,901 | $ 1,656 |
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 | 15 years | 15 years |
Vintage [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 27 | $ 30 |
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 | $ 276 | $ 270 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | [3] | Dec. 31, 2016 | [3] | Mar. 31, 2016 | ||||
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] | 33.00% | ||||||||
Significant Unobservable Inputs Annuitization Rate | [1] | 100.00% | ||||||||
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 | $ 167 | [2] | $ 204 | [2] | $ 466 | $ 559 | $ 559 | |||
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 | $ 167 | [4] | 204 | |||||||
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 | [5] | $ 204 | ||||||||
[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 3 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 $529 million at March 31, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $167 million and $204 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 $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively. | |||||||||
[4] | (2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. | |||||||||
[5] | (2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured At Fair Value Using Significant Unobservable Inputs) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance- Beginning of Period, Assets | $ 44 | $ 41 |
Transfers Into Level 3, Asset | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 1 | 0 |
Net Realized Gains/ (Losses), Assets | 2 | 0 |
Purchases, Assets | 17 | 0 |
Sales, Assets | 0 | 0 |
Settlements, Assets | 0 | 0 |
Balance-End of Period, Assets | 64 | 41 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 |
Short-term Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance- Beginning of Period, Assets | 0 | 25 |
Transfers Into Level 3, Asset | 5 | 0 |
Transfers out of Level 3, Assets | 0 | 0 |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 |
Net Realized Gains/ (Losses), Assets | 0 | 0 |
Purchases, Assets | 8 | 7 |
Sales, Assets | 0 | 0 |
Settlements, Assets | (1) | (11) |
Balance-End of Period, Assets | 12 | 21 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | |
Other Long-term Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance- Beginning of Period, Assets | 263 | 225 |
Transfers Into Level 3, Asset | 0 | 0 |
Transfers out of Level 3, Assets | 0 | 0 |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 2 | 4 |
Net Realized Gains/ (Losses), Assets | 0 | 0 |
Purchases, Assets | 14 | 8 |
Sales, Assets | 0 | 0 |
Settlements, Assets | (9) | (4) |
Balance-End of Period, Assets | 270 | 233 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 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 | 93 | 74 |
Transfers Into Level 3, Asset | 7 | 0 |
Transfers out of Level 3, Assets | 0 | 0 |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 9 | (1) |
Net Realized Gains/ (Losses), Assets | 0 | (1) |
Purchases, Assets | 87 | 14 |
Sales, Assets | (19) | (3) |
Settlements, Assets | (1) | (3) |
Balance-End of Period, Assets | 176 | 80 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 |
Available-for-sale Securities [Member] | Corporate [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance- Beginning of Period, Assets | 1,037 | 681 |
Transfers Into Level 3, Asset | 0 | 29 |
Transfers out of Level 3, Assets | (10) | (54) |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | (3) | (8) |
Net Realized Gains/ (Losses), Assets | 0 | (1) |
Purchases, Assets | 139 | 156 |
Sales, Assets | (51) | (27) |
Settlements, Assets | (39) | (39) |
Balance-End of Period, Assets | 1,073 | 737 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 |
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 | 78 | 45 |
Transfers Into Level 3, Asset | 1 | 0 |
Transfers out of Level 3, Assets | 0 | 0 |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 |
Net Realized Gains/ (Losses), Assets | 0 | 0 |
Purchases, Assets | 4 | 1 |
Sales, Assets | 0 | (1) |
Settlements, Assets | 0 | 0 |
Balance-End of Period, Assets | 83 | 45 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ 0 |
Fair value measurements Fair 49
Fair value measurements Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2016 | |||
Guaranteed Minimum Income Benefit [Member] | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Reported liabilities | $ 529 | $ 774 | $ 550 | $ 853 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance - Beginning of Period, Liabilities | 204 | [1] | 559 | [2] | ||
Transfers into level 3, liability | 0 | 0 | ||||
Transfers out of Level 3, Liabilities | 0 | 0 | ||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | 0 | ||||
Net Realized Gains/Losses, Liabilities | (37) | (93) | ||||
Purchases, Liabilities | 0 | 0 | ||||
Sales, Liabilities | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | 0 | ||||
Balance - End of Period, Liabilities | 167 | [1] | 466 | [2] | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (37) | (93) | ||||
Other Derivative Instruments Fair Value [Member] | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance - Beginning of Period, Liabilities | 2 | 13 | ||||
Transfers into level 3, liability | 0 | 0 | ||||
Transfers out of Level 3, Liabilities | 0 | 0 | ||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | 0 | ||||
Net Realized Gains/Losses, Liabilities | 0 | (2) | ||||
Purchases, Liabilities | 0 | 0 | ||||
Sales, Liabilities | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | 0 | ||||
Balance - End of Period, Liabilities | 2 | 11 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ (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 $529 million at March 31, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $167 million and $204 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 $774 million at March 31, 2017, and $853 million at December 31, 2016, which includes a fair value derivative adjustment of $466 million and $559 million, respectively. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | $ 14,122 | $ 14,474 |
Held-to-maturity Securities | 14,253 | 14,335 |
Repurchase agreements | 1,412 | 1,408 |
Short-term debt | 1,669 | 1,013 |
Long-term debt | 12,786 | 11,556 |
Trust preferred securities | 308 | 308 |
Total liabilities | 117,494 | 115,850 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 977 | 857 |
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 | 13,112 | 13,582 |
Repurchase agreements | 1,412 | 1,408 |
Short-term Debt, Fair Value | 1,704 | 1,013 |
Long-term Debt, Fair Value | 13,023 | 12,332 |
Trust preferred securities | 466 | 468 |
Total liabilities | 16,605 | 15,221 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 33 | 35 |
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 | 977 | 857 |
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 | 55 | 58 |
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 | 1,751 | 1,757 |
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 | 2,964 | 3,184 |
Corporate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 33 | 35 |
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 | 2,647 | 2,742 |
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 | 5,695 | 5,841 |
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 | 14,122 | 14,474 |
Repurchase agreements | 1,412 | 1,408 |
Short-term Debt, Fair Value | 1,704 | 1,013 |
Long-term Debt, Fair Value | 13,023 | 12,332 |
Trust preferred securities | 466 | 468 |
Total liabilities | 16,605 | 15,221 |
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 | 1,032 | 915 |
Estimate of Fair Value Measurement [Member] | Foreign [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 1,751 | 1,757 |
Estimate of Fair Value Measurement [Member] | Corporate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities, Fair Value | 2,997 | 3,219 |
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 | 2,647 | 2,742 |
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 | 5,695 | 5,841 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 14,253 | 14,335 |
Repurchase agreements | 1,412 | 1,408 |
Short-term debt | 1,669 | 1,013 |
Long-term debt | 12,786 | 11,556 |
Trust preferred securities | 308 | 308 |
Total liabilities | 16,175 | 14,285 |
Reported Value Measurement [Member] | U.S. Treasury And Agency [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 1,037 | 908 |
Reported Value Measurement [Member] | Foreign [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 1,754 | 1,738 |
Reported Value Measurement [Member] | Corporate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 3,026 | 3,159 |
Reported Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | 2,681 | 2,724 |
Reported Value Measurement [Member] | States, Municipalities, And Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity Securities | $ 5,755 | $ 5,806 |
Unpaid losses and loss expens51
Unpaid losses and loss expenses (RF) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Unpaid Losses and Loss Expenses [Roll Forward] | |||||
Gross unpaid losses and loss expenses, beginning of period | $ 63,179 | $ 60,540 | |||
Reinsurance Recoverable on unpaid losses, beginning of period | [1] | (14,014) | (12,708) | ||
Net unpaid loss, beginning of period | 49,165 | 47,832 | |||
Current Year Claims and Claims Adjustment Expense | 4,358 | 4,078 | |||
PPD, Gross | [2] | (256) | (289) | ||
Total, Incurred | 4,102 | 3,789 | |||
Net loss and loss expenses paid, Current Year | 809 | 798 | |||
Net losses and loss expenses Paid, Prior Years | 3,433 | 3,109 | |||
Total, Paid | 4,242 | 3,907 | |||
Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Revaluation And Other | 292 | 54 | |||
Net unpaid Loss, end of period | 49,317 | 47,768 | |||
Reinsurance Recoverables on unpaid losses, end of period | [3] | 13,822 | 12,811 | ||
Gross unpaid losses and loss expenses, end of period | 63,139 | 60,579 | |||
prior period development, net adjustments | 47 | 58 | |||
Reinsurance Recoverables, Allowance | $ 320 | $ 334 | $ 321 | $ 300 | |
[1] | (1) Net of provision for uncollectible reinsurance of $321 million and $300 million at December 31, 2017 and 2016, respectively. | ||||
[2] | Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums totaling $47 million and $58 million for the three months ended March 31, 2018 and 2017, respectively. | ||||
[3] | 3) Net of provision for uncollectible reinsurance of $320 million and $334 million at March 31, 2018 and 2017, respectively. |
Unpaid losses and loss expens52
Unpaid losses and loss expenses Unpaid losses and loss expenses (PPD table) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | $ (209) | $ (231) |
North America Commercial P&C Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (101) | (179) |
North America Personal P&C Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (6) | (3) |
North American Agriculture Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (76) | (79) |
Overseas General Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (22) | 12 |
Global Reinsurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (14) | 8 |
Corporate Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | 10 | 10 |
Long Tail [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | 18 | (44) |
Long Tail [Member] | North America Commercial P&C Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | 8 | (94) |
Long Tail [Member] | North America Personal P&C Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | 0 | 0 |
Long Tail [Member] | North American Agriculture Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | 0 | 0 |
Long Tail [Member] | Overseas General Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | 0 | 32 |
Long Tail [Member] | Global Reinsurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | 0 | 8 |
Long Tail [Member] | Corporate Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | 10 | 10 |
Short Tail [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (227) | (187) |
Short Tail [Member] | North America Commercial P&C Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (109) | (85) |
Short Tail [Member] | North America Personal P&C Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (6) | (3) |
Short Tail [Member] | North American Agriculture Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (76) | (79) |
Short Tail [Member] | Overseas General Insurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (22) | (20) |
Short Tail [Member] | Global Reinsurance [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | (14) | 0 |
Short Tail [Member] | Corporate Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Prior Year Claims and Claims Adjustment Expense | $ 0 | $ 0 |
Unpaid losses and loss expens53
Unpaid losses and loss expenses Unpaid losses and loss expenses (narrative)(Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | $ (209) | $ (231) | |
Prior period reclassification adjustments | [1] | (12) | |
Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 18 | (44) | |
Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (227) | (187) | |
Prior period reclassification adjustments | 5 | ||
North America Commercial P&C Insurance [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (101) | (179) | |
North America Commercial P&C Insurance [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 8 | (94) | |
North America Commercial P&C Insurance [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (109) | (85) | |
North America Commercial P&C Insurance [Member] | Surety [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (19) | ||
North America Commercial P&C Insurance [Member] | Commercial Excess and Umbrella [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (29) | ||
North America Commercial P&C Insurance [Member] | Other [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 40 | ||
North America Commercial P&C Insurance [Member] | Other [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (34) | ||
North America Commercial P&C Insurance [Member] | Wholesale General Liability Lines [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 16 | ||
North America Commercial P&C Insurance [Member] | Catastrophe [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (3) | ||
North America Commercial P&C Insurance [Member] | Accident year 2017 [Member] | Property and Inland Marine [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (75) | ||
North America Commercial P&C Insurance [Member] | Accident year 2015 [Member] | Surety [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 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) | ||
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 years 2011 - 2013 [Member] | Professional Liability Insurance [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (32) | ||
North America Personal [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (6) | (3) | |
North America Agricultural Insurance [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (76) | (79) | |
North America Agricultural Insurance [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 0 | 0 | |
North America Agricultural Insurance [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (76) | (79) | |
Overseas General Insurance [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (22) | 12 | |
Overseas General Insurance [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 0 | 32 | |
Overseas General Insurance [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (22) | (20) | |
Overseas General Insurance [Member] | Catastrophe [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (12) | ||
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 | (14) | 8 | |
Global Reinsurance [Member] | Catastrophe [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (10) | ||
Global Reinsurance [Member] | Accident year 2015 and prior [Member] | Auto Liability Excess Lines [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 9 | ||
Global Reinsurance [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (14) | 8 | |
Global Reinsurance [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 0 | 8 | |
Global Reinsurance [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | (14) | 0 | |
Corporate Segment [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 10 | 10 | |
Corporate Segment [Member] | Long Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | 10 | 10 | |
Corporate Segment [Member] | Short Tail [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
PPD (Favorable) / Adverse | $ 0 | $ 0 | |
[1] | (1) The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ($12 million) from the North America Commercial P&C Insurance segment to the Overseas General Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. |
Debt (Detail)
Debt (Detail) € in Millions, $ in Millions | Apr. 06, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) |
Chubb INA Capital Securities Due 2067 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,000 | ||
Chubb INA Capital Securities Due 2067 [Member] | Junior Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% | |
Debt, Current | $ 964 | ||
Senior Notes [Member] | INA Senior Notes Due March 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 300 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.80% | 5.80% | |
Senior Notes [Member] | INA Senior Note Due March 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,100 | € 900 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.55% | 1.55% | |
Make Whole Premium Additional Percent | 0.15% | 0.15% | |
Senior Notes [Member] | INA Senior Note Due March 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,100 | € 900 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% | |
Make Whole Premium Additional Percent | 0.25% | 0.25% |
Commitments, Contingencies, A55
Commitments, Contingencies, And Guarantees (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Derivative asset subject to a master netting agreement | $ 79 | |
Derivative liability subject to a master netting agreement | $ 24 | |
Repurchase agreements | 1,412 | $ 1,408 |
Purchase Commitment, Remaining Minimum Amount Committed | 1,139 | |
Carrying value of limited partnerships and partially-owned investment companies included in other investments | 3,600 | |
Funding commitments relating to limited partnerships and partially-owned investment companies | 3,800 | |
Unrecognized tax benefits | $ 14 |
Commitments, Contingencies, A56
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 | Mar. 31, 2018 | Dec. 31, 2017 | ||
Foreign currency forward contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | $ 2,125 | $ 2,064 | ||
Cross Currency Swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 45 | 45 | ||
Fair Value, Asset | 0 | 0 | ||
Options/Futures contracts on notes and bonds | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 1,093 | 1,007 | ||
Convertible securities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 8 | 6 | [1] | |
Investment And Embedded Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 3,271 | 3,122 | ||
Fair Value, Asset | 32 | 23 | ||
Future contracts on equities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | [2] | 1,625 | 1,553 | |
Other Derivatives [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 326 | 75 | ||
Other Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | 1,951 | 1,628 | ||
Guaranteed Minimum Income Benefit [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Value/Payment Provision | [3] | 1,175 | 1,083 | |
Fair Value, Asset | [3] | 0 | 0 | |
Fixed Maturities [Member] | Convertible securities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 7 | 5 | ||
Equity [Member] | Convertible securities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | 0 | 0 | ||
Other Assets [Member] | Foreign currency forward contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 19 | 14 | ||
Other Assets [Member] | Options/Futures contracts on notes and bonds | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 6 | 4 | ||
Other Assets [Member] | Future contracts on equities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | [2] | 71 | 0 | |
Other Assets [Member] | Other Derivatives [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 7 | 1 | ||
Other Assets [Member] | Other Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Asset | 78 | 1 | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Foreign currency forward contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (17) | (27) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Cross Currency Swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | 0 | 0 | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Options/Futures contracts on notes and bonds | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (12) | (3) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Investment And Embedded Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (29) | (30) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Future contracts on equities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | [2] | 0 | (21) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivatives [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (2) | (2) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | (2) | (23) | ||
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Guaranteed Minimum Income Benefit [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value, Liability | [3] | $ (529) | $ (550) | |
[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, a57
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 2,039 | $ 1,737 |
Securities lending payable | 2,039 | 1,737 |
Cash and Cash Equivalents [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 826 | 828 |
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 | 40 | 36 |
Foreign Government Debt [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 869 | 712 |
Corporate [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 8 | 0 |
Collateralized Mortgage Backed Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 59 | 74 |
Equity Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 237 | $ 87 |
Commitments, contingencies, a58
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | $ 1,460 | $ 1,434 | |
Repurchase agreements | 1,412 | 1,408 | |
U.S. Treasury And Agency [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 243 | 239 | |
Collateralized Mortgage Backed Securities [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 1,217 | 1,195 | |
Repurchase Agreements [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Secured Borrowings, Gross, Difference, Amount | [1] | 48 | 26 |
Maturity Less than 30 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 486 | 378 | |
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 | 0 | 9 | |
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 | 486 | 369 | |
Maturity Greater than 90 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 974 | 1,056 | |
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 | 243 | 230 | |
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 | $ 826 | |
[1] | (1) Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. |
Commitments, Contingencies, A59
Commitments, Contingencies, And Guarantees (Net Realized Gains (Losses) Of Derivative Instrument Activity In Consolidated Statement Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative | $ 79 | $ 27 |
Foreign currency forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative | 4 | 14 |
All Other Futures Contracts And Options [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative | 13 | (8) |
Investment And Embedded Derivative Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative | 17 | 6 |
Guaranteed Minimum Income Benefit [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative | 38 | 93 |
Future contracts on equities [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative | 22 | (74) |
Other Derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative | 2 | 2 |
Guaranteed Living Benefit And Other Derivative Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative | $ 62 | $ 21 |
Share-Based Compensation (Detai
Share-Based Compensation (Detail) - $ / shares | Feb. 22, 2018 | Mar. 31, 2018 |
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 | 1,841,329 | |
Weighted-average grant date fair value for stock options granted | $ 29.71 | |
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 | 973,624 | |
Grant date fair value of awards except for options granted to employees and officers of the company | $ 143.07 | |
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 | 180,065 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted to employees and officers of the company | 301,024 |
Shareholders' equity (Details)
Shareholders' equity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |||||||||
Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2018USD ($)SFr / sharesshares | Mar. 31, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)SFr / shares | Mar. 31, 2018SFr / shares | Dec. 31, 2017SFr / sharesshares | Dec. 21, 2017USD ($) | May 31, 2017$ / shares | Nov. 30, 2016USD ($) | May 31, 2016$ / shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Common Shares, par value | SFr / shares | SFr 24.15 | SFr 24.15 | ||||||||
Annual dividend per share approved by shareholders | $ / shares | $ 2.84 | $ 2.76 | ||||||||
Common Shares in treasury, shares | shares | 13,952,378 | 13,952,378 | 15,950,685 | |||||||
Common Stock, Dividend Rate Approved | $ / shares | $ 0.71 | $ 0.69 | ||||||||
Common Stock, Dividend Rate Declared | (per share) | $ 0.71 | SFr 0.66 | $ 0.69 | SFr 0.69 | ||||||
Dec 2017 Stock Repurchase Plan [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Authorized amount of share repurchase program | $ 1,000 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,000 | SFr 1,000 | ||||||||
Nov 2016 Stock Repurchase Plan [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Authorized amount of share repurchase program | $ 1,000 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 860 | SFr 860 |
Shareholders' equity Share Repu
Shareholders' equity Share Repurchases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Nov 2016 Stock Repurchase Plan [Member] | ||
Class of Stock [Line Items] | ||
Treasury Stock, Shares, Acquired | 1,036,064 | |
Treasury Stock, Value, Acquired, Cost Method | $ 140 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 860 | |
2017 Stock Repurchase Plan [Member] [Domain] | ||
Class of Stock [Line Items] | ||
Treasury Stock, Shares, Acquired | 0 | |
Treasury Stock, Value, Acquired, Cost Method | $ 0 |
Postretirement benefits Compone
Postretirement benefits Components of net periodic benefit costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Plan [Member] | UNITED STATES | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 14 | $ 16 |
Interest cost | 26 | 26 |
Expected return on plan assets | (53) | (47) |
Amortization of prior service cost | 0 | 0 |
Net periodic (benefit) cost | (13) | (5) |
Pension Plan [Member] | Non-US [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 3 | 4 |
Interest cost | 7 | 7 |
Expected return on plan assets | (13) | (10) |
Amortization of prior service cost | 0 | 0 |
Net periodic (benefit) cost | (3) | 1 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 1 | 1 |
Expected return on plan assets | (1) | (1) |
Amortization of prior service cost | (21) | (23) |
Net periodic (benefit) cost | $ (21) | $ (23) |
Segment information Segment Inf
Segment information Segment Information (narrative Detail (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Gain (Loss) on Derivative | $ 79 | $ 27 |
Net investment income | 806 | 745 |
North America Agricultural Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Income Loss Including Gains Losses On Crop Derivatives | 102 | |
Gain (Loss) on Derivative | 2 | |
Net investment income | 7 | 6 |
Segment Life [Member] | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 83 | $ 75 |
Management Underwriting Income (Loss) | 67 | |
Gains Losses On Fair Value Changes In Separate Account Assets | $ 6 |
Segment Information (Operations
Segment Information (Operations By Segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Segment Reporting Information [Line Items] | ||||
Net premiums written | $ 7,104 | $ 6,710 | ||
Net premiums earned | 7,027 | 6,772 | ||
Losses and loss expenses | 4,102 | 3,789 | ||
Policy benefits | 151 | 168 | ||
Policy acquisition costs | 1,464 | 1,397 | ||
Administrative expenses | 692 | 676 | ||
Underwriting income (loss) | 618 | 742 | ||
Net investment income | 806 | 745 | ||
Other (income) expense | (47) | (70) | ||
Amortization of purchased intangibles | 85 | 64 | ||
Segment Income (loss) | 1,386 | 1,493 | ||
Net realized gains (losses) including OTTI | (2) | (7) | ||
Interest expense | 157 | 154 | ||
Chubb integration expenses | 10 | 111 | ||
Income tax expense | 135 | 128 | ||
Net income | 1,082 | 1,093 | ||
Prior Period Reclassification Adjustment | [1] | 12 | ||
North America Commercial P&C Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 2,812 | 2,730 | [1] | |
Net premiums earned | 3,029 | 3,041 | ||
Losses and loss expenses | 1,908 | 1,860 | ||
Policy benefits | 0 | 0 | ||
Policy acquisition costs | 472 | 487 | ||
Administrative expenses | 231 | 231 | ||
Underwriting income (loss) | 418 | 463 | ||
Net investment income | 503 | 478 | ||
Other (income) expense | (6) | 4 | ||
Amortization of purchased intangibles | 0 | 0 | ||
Segment Income (loss) | 927 | 937 | ||
North America Personal P&C Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 1,048 | 984 | ||
Net premiums earned | 1,140 | 1,086 | ||
Losses and loss expenses | 886 | 633 | ||
Policy benefits | 0 | 0 | ||
Policy acquisition costs | 237 | 217 | ||
Administrative expenses | 65 | 65 | ||
Underwriting income (loss) | (48) | 171 | ||
Net investment income | 59 | 55 | ||
Other (income) expense | 0 | 1 | ||
Amortization of purchased intangibles | 3 | 3 | ||
Segment Income (loss) | 8 | 222 | ||
North America Agricultural Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 108 | 61 | ||
Net premiums earned | 43 | 14 | ||
Losses and loss expenses | (53) | (73) | ||
Policy benefits | 0 | 0 | ||
Policy acquisition costs | (1) | (1) | ||
Administrative expenses | (3) | (5) | ||
Underwriting income (loss) | 100 | 93 | ||
Net investment income | 7 | 6 | ||
Other (income) expense | 0 | 0 | ||
Amortization of purchased intangibles | 7 | 7 | ||
Segment Income (loss) | 100 | 92 | ||
Overseas General Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 2,384 | 2,212 | [1] | |
Net premiums earned | 2,107 | 1,936 | ||
Losses and loss expenses | 1,078 | 1,071 | ||
Policy benefits | 0 | 0 | ||
Policy acquisition costs | 588 | 529 | ||
Administrative expenses | 239 | 245 | ||
Underwriting income (loss) | 202 | 91 | ||
Net investment income | 151 | 148 | ||
Other (income) expense | 7 | (1) | ||
Amortization of purchased intangibles | 10 | 11 | ||
Segment Income (loss) | 336 | 229 | ||
Global Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 193 | 199 | ||
Net premiums earned | 168 | 189 | ||
Losses and loss expenses | 67 | 94 | ||
Policy benefits | 0 | 0 | ||
Policy acquisition costs | 40 | 51 | ||
Administrative expenses | 10 | 10 | ||
Underwriting income (loss) | 51 | 34 | ||
Net investment income | 64 | 62 | ||
Other (income) expense | (7) | 0 | ||
Amortization of purchased intangibles | 0 | 0 | ||
Segment Income (loss) | 122 | 96 | ||
Life Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 559 | 524 | ||
Net premiums earned | 540 | 506 | ||
Losses and loss expenses | 205 | 193 | ||
Policy benefits | 151 | 168 | ||
Policy acquisition costs | 128 | 114 | ||
Administrative expenses | 78 | 72 | ||
Underwriting income (loss) | (22) | (41) | ||
Net investment income | 83 | 75 | ||
Other (income) expense | (4) | (29) | ||
Amortization of purchased intangibles | 1 | 1 | ||
Segment Income (loss) | 64 | 62 | ||
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written | 0 | 0 | ||
Net premiums earned | 0 | 0 | ||
Losses and loss expenses | 11 | 11 | ||
Policy benefits | 0 | 0 | ||
Policy acquisition costs | 0 | 0 | ||
Administrative expenses | 72 | 58 | ||
Underwriting income (loss) | (83) | (69) | ||
Net investment income | (61) | (79) | ||
Other (income) expense | (37) | (45) | ||
Amortization of purchased intangibles | 64 | 42 | ||
Segment Income (loss) | (171) | (145) | ||
Net realized gains (losses) including OTTI | (2) | (7) | ||
Interest expense | 157 | 154 | ||
Chubb integration expenses | 10 | 111 | ||
Income tax expense | 135 | 128 | ||
Net income | $ (475) | $ (545) | ||
[1] | (1) The 2017 net premiums written amount was revised to reflect the transfer of certain multinational accounts ($12 million) from the North America Commercial P&C Insurance segment to the Overseas General Insurance segment to better align the reporting with the management of these businesses in 2018. There is no impact on a consolidated basis. |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 1,082 | $ 1,093 |
Weighted-average shares outstanding | 465,703,240 | 468,903,086 |
Share-based compensation plans | 3,770,351 | 3,828,604 |
Weighted-average shares outstanding and assumed conversions | 469,473,591 | 472,731,690 |
Basic earnings per share (US$ per share) | $ 2.32 | $ 2.33 |
Diluted earnings per share (US$ per share) | $ 2.30 | $ 2.31 |
Potential anti-dilutive share conversions | 2,116,188 | 969,654 |
Information provided in conne67
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details) | Mar. 31, 2018 |
Debt Instrument [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Information Provided In Conne68
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | $ 102,105 | $ 102,444 | |||||
Cash | 1,988 | [1] | 728 | [2] | |||
Restricted Cash | [1] | 125 | 123 | ||||
Insurance and reinsurance balances receivable | 9,570 | 9,334 | |||||
Reinsurance Recoverable Losses And Loss Expenses | 14,982 | 15,034 | |||||
Reinsurance recoverable on policy benefits | 181 | 184 | |||||
Value of business acquired | 321 | 326 | |||||
Goodwill and other intangible assets | 22,123 | 22,054 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Due from subsidiaries and affiliates, net | 0 | 0 | |||||
Other assets | 17,386 | 16,795 | |||||
Total assets | 168,781 | 167,022 | |||||
Unpaid losses and loss expenses | 63,139 | 63,179 | $ 60,579 | $ 60,540 | |||
Unearned premiums | 15,495 | 15,216 | |||||
Future policy benefits | 5,412 | 5,321 | |||||
Due to subsidiaries and affiliates, net | 0 | 0 | |||||
Affiliated notional cash pooling programs | 0 | 0 | |||||
Repurchase agreements | 1,412 | 1,408 | |||||
Short-term debt | 1,669 | 1,013 | |||||
Long-term debt | 12,786 | 11,556 | |||||
Trust preferred securities | 308 | 308 | |||||
Other liabilities | 17,273 | 17,849 | |||||
Total liabilities | 117,494 | 115,850 | |||||
Total shareholders' equity | 51,287 | 51,172 | $ 49,224 | ||||
Total liabilities and shareholders’ equity | 168,781 | 167,022 | |||||
Chubb Limited (Parent Guarantor) | |||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | 0 | 0 | |||||
Cash | 1 | [1] | 3 | [2] | |||
Restricted Cash | [1] | 0 | 0 | ||||
Insurance and reinsurance balances receivable | 0 | 0 | |||||
Reinsurance Recoverable 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 | 43,032 | 41,909 | |||||
Due from subsidiaries and affiliates, net | 8,980 | 9,639 | |||||
Other assets | 4 | 3 | |||||
Total assets | 52,017 | 51,554 | |||||
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 | 400 | [1] | 0 | [2] | |||
Repurchase agreements | 0 | 0 | |||||
Short-term debt | 0 | 0 | |||||
Long-term debt | 0 | 0 | |||||
Trust preferred securities | 0 | 0 | |||||
Other liabilities | 330 | 382 | |||||
Total liabilities | 730 | 382 | |||||
Total shareholders' equity | 51,287 | 51,172 | |||||
Total liabilities and shareholders’ equity | 52,017 | 51,554 | |||||
Chubb INA Holdings Inc (Subsidiary Issuer) | |||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | 186 | 168 | |||||
Cash | 864 | [1] | 1 | [2] | |||
Restricted Cash | [1] | 0 | 0 | ||||
Insurance and reinsurance balances receivable | 0 | 0 | |||||
Reinsurance Recoverable 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 | 51,930 | 51,165 | |||||
Due from subsidiaries and affiliates, net | 0 | 0 | |||||
Other assets | 386 | 287 | |||||
Total assets | 53,366 | 51,621 | |||||
Unpaid losses and loss expenses | 0 | 0 | |||||
Unearned premiums | 0 | 0 | |||||
Future policy benefits | 0 | 0 | |||||
Due to subsidiaries and affiliates, net | 9,231 | 9,432 | |||||
Affiliated notional cash pooling programs | 0 | [1] | 115 | [2] | |||
Repurchase agreements | 0 | 0 | |||||
Short-term debt | 1,669 | 1,013 | |||||
Long-term debt | 12,775 | 11,546 | |||||
Trust preferred securities | 308 | 308 | |||||
Other liabilities | 1,537 | 1,411 | |||||
Total liabilities | 25,520 | 23,825 | |||||
Total shareholders' equity | 27,846 | 27,796 | |||||
Total liabilities and shareholders’ equity | 53,366 | 51,621 | |||||
Other Chubb Limited Subsidiaries | |||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | 101,919 | 102,276 | |||||
Cash | 1,523 | [1] | 839 | [2] | |||
Restricted Cash | [1] | 125 | 123 | ||||
Insurance and reinsurance balances receivable | 10,308 | 10,820 | |||||
Reinsurance Recoverable Losses And Loss Expenses | 26,093 | 27,514 | |||||
Reinsurance recoverable on policy benefits | 1,181 | 1,194 | |||||
Value of business acquired | 321 | 326 | |||||
Goodwill and other intangible assets | 22,123 | 22,054 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Due from subsidiaries and affiliates, net | 251 | 0 | |||||
Other assets | 18,459 | 20,578 | |||||
Total assets | 182,303 | 185,724 | |||||
Unpaid losses and loss expenses | 74,299 | 74,767 | |||||
Unearned premiums | 16,563 | 18,875 | |||||
Future policy benefits | 6,412 | 6,331 | |||||
Due to subsidiaries and affiliates, net | 0 | 207 | |||||
Affiliated notional cash pooling programs | 0 | [1] | 0 | [2] | |||
Repurchase agreements | 1,412 | 1,408 | |||||
Short-term debt | 0 | 0 | |||||
Long-term debt | 11 | 10 | |||||
Trust preferred securities | 0 | 0 | |||||
Other liabilities | 16,490 | 18,848 | |||||
Total liabilities | 115,187 | 120,446 | |||||
Total shareholders' equity | 67,116 | 65,278 | |||||
Total liabilities and shareholders’ equity | 182,303 | 185,724 | |||||
Consolidating Adjustments and Eliminations | |||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | 0 | 0 | |||||
Cash | (400) | [1] | (115) | [2] | |||
Restricted Cash | [1] | 0 | 0 | ||||
Insurance and reinsurance balances receivable | (738) | (1,486) | |||||
Reinsurance Recoverable Losses And Loss Expenses | (11,111) | (12,480) | |||||
Reinsurance recoverable on policy benefits | (1,000) | (1,010) | |||||
Value of business acquired | 0 | 0 | |||||
Goodwill and other intangible assets | 0 | 0 | |||||
Investments in subsidiaries | (94,962) | (93,074) | |||||
Due from subsidiaries and affiliates, net | (9,231) | (9,639) | |||||
Other assets | (1,463) | (4,073) | |||||
Total assets | (118,905) | (121,877) | |||||
Unpaid losses and loss expenses | (11,160) | (11,588) | |||||
Unearned premiums | (1,068) | (3,659) | |||||
Future policy benefits | (1,000) | (1,010) | |||||
Due to subsidiaries and affiliates, net | (9,231) | (9,639) | |||||
Affiliated notional cash pooling programs | (400) | [1] | (115) | [2] | |||
Repurchase agreements | 0 | 0 | |||||
Short-term debt | 0 | 0 | |||||
Long-term debt | 0 | 0 | |||||
Trust preferred securities | 0 | 0 | |||||
Other liabilities | (1,084) | (2,792) | |||||
Total liabilities | (23,943) | (28,803) | |||||
Total shareholders' equity | (94,962) | (93,074) | |||||
Total liabilities and shareholders’ equity | $ (118,905) | $ (121,877) | |||||
[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 March 31, 2018, 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 December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Information Provided In Conne69
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Statement of Income Captions [Line Items] | ||
Net premiums written | $ 7,104 | $ 6,710 |
Net premiums earned | 7,027 | 6,772 |
Net investment income | 806 | 745 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 |
Net realized gains (losses) including OTTI | (2) | (7) |
Losses and loss expenses | 4,102 | 3,789 |
Policy benefits | 151 | 168 |
Policy acquisition costs and administrative expenses | 2,156 | 2,073 |
Interest (income) expense | 157 | 154 |
Other (income) expense | (47) | (70) |
Amortization of purchased intangibles | 85 | 64 |
Chubb integration expenses | 10 | 111 |
Income tax expense | 135 | 128 |
Net income | 1,082 | 1,093 |
Comprehensive income (loss) | 453 | 1,407 |
Consolidating Adjustments and Eliminations | ||
Condensed Statement of Income Captions [Line Items] | ||
Net premiums written | 0 | 0 |
Net premiums earned | 0 | 0 |
Net investment income | 0 | 0 |
Income (Loss) from Subsidiaries, Net of Tax | (1,907) | (1,728) |
Net realized gains (losses) including OTTI | 0 | 0 |
Losses and loss expenses | 0 | 0 |
Policy benefits | 0 | 0 |
Policy acquisition costs and administrative expenses | 0 | 0 |
Interest (income) expense | 0 | 0 |
Other (income) expense | 0 | 0 |
Amortization of purchased intangibles | 0 | 0 |
Chubb integration expenses | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | (1,907) | (1,728) |
Comprehensive income (loss) | (830) | (2,329) |
Chubb Limited (Parent Guarantor) | ||
Condensed Statement of Income Captions [Line Items] | ||
Net premiums written | 0 | 0 |
Net premiums earned | 0 | 0 |
Net investment income | 2 | 0 |
Income (Loss) from Subsidiaries, Net of Tax | 1,022 | 1,027 |
Net realized gains (losses) including OTTI | (2) | 0 |
Losses and loss expenses | 0 | 0 |
Policy benefits | 0 | 0 |
Policy acquisition costs and administrative expenses | 18 | 18 |
Interest (income) expense | (80) | (84) |
Other (income) expense | (5) | (6) |
Amortization of purchased intangibles | 0 | 0 |
Chubb integration expenses | 2 | 0 |
Income tax expense | 5 | 6 |
Net income | 1,082 | 1,093 |
Comprehensive income (loss) | 453 | 1,407 |
Chubb INA Holdings Inc (Subsidiary Issuer) | ||
Condensed Statement of Income Captions [Line Items] | ||
Net premiums written | 0 | 0 |
Net premiums earned | 0 | 0 |
Net investment income | 4 | 3 |
Income (Loss) from Subsidiaries, Net of Tax | 885 | 701 |
Net realized gains (losses) including OTTI | (24) | (13) |
Losses and loss expenses | 0 | 0 |
Policy benefits | 0 | 0 |
Policy acquisition costs and administrative expenses | 22 | 14 |
Interest (income) expense | 209 | 221 |
Other (income) expense | 8 | 15 |
Amortization of purchased intangibles | 0 | 0 |
Chubb integration expenses | 1 | 49 |
Income tax expense | (59) | (112) |
Net income | 684 | 504 |
Comprehensive income (loss) | 216 | 791 |
Other Chubb Limited Subsidiaries | ||
Condensed Statement of Income Captions [Line Items] | ||
Net premiums written | 7,104 | 6,710 |
Net premiums earned | 7,027 | 6,772 |
Net investment income | 800 | 742 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 |
Net realized gains (losses) including OTTI | 24 | 6 |
Losses and loss expenses | 4,102 | 3,789 |
Policy benefits | 151 | 168 |
Policy acquisition costs and administrative expenses | 2,116 | 2,041 |
Interest (income) expense | 28 | 17 |
Other (income) expense | (50) | (79) |
Amortization of purchased intangibles | 85 | 64 |
Chubb integration expenses | 7 | 62 |
Income tax expense | 189 | 234 |
Net income | 1,223 | 1,224 |
Comprehensive income (loss) | $ 614 | $ 1,538 |
Information Provided In Conne70
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | $ 551 | $ 1,013 | ||
Purchases of fixed maturities available for sale | (5,972) | (6,250) | ||
Purchases of fixed maturities held to maturity | (162) | (157) | ||
Purchases of equity securities | (55) | (37) | ||
Sales of fixed maturities available for sale | 2,562 | 3,395 | ||
Sales of equity securities | 40 | 46 | ||
Maturities and redemptions of fixed maturities available for sale | 1,865 | 2,543 | ||
Maturities and redemptions of fixed maturities held to maturity | 255 | 240 | ||
Net change in short-term investments | 731 | 232 | ||
Net derivative instruments settlements | 39 | (89) | ||
Private equity contribution | (353) | (198) | ||
Private equity distribution | 201 | 315 | ||
Payment Of Contributions To Subsidiary | 0 | |||
Other | (32) | (106) | ||
Net cash flows used for investing activities | (881) | (66) | ||
Dividends paid on Common Shares | (330) | (324) | ||
Common Shares repurchased | (29) | (128) | ||
Proceeds from Issuance of Long-term Debt | 2,175 | 0 | ||
Proceeds from issuance of long-term debt | (300) | (500) | ||
Proceeds from issuance of repurchase agreements | 408 | 753 | ||
Repayments of repurchase agreements | (404) | (752) | ||
Proceeds from share-based compensation plans | 34 | 42 | ||
Dividend to Parent Company | 0 | 0 | ||
Advances (to) from affiliates | 0 | 0 | ||
Capital contribution | 0 | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | 0 | ||
Policyholder contract deposits | 118 | 109 | ||
Policyholder contract withdrawals | (105) | (58) | ||
Net cash flows from (used for) financing activities | 1,567 | (858) | ||
Effect of foreign currency rate changes on cash and restricted cash | 25 | (17) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 1,262 | 72 | ||
Cash and Restricted Cash - Beginning of year | 851 | 1,088 | ||
Cash and Restricted Cash - end of Year | 2,113 | 1,160 | ||
Chubb Limited (Parent Guarantor) | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | 24 | 584 | ||
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 | ||
Private equity contribution | 0 | 0 | ||
Private equity distribution | 0 | 0 | ||
Payment Of Contributions To Subsidiary | 750 | |||
Other | 0 | 0 | ||
Net cash flows used for investing activities | (750) | 0 | ||
Dividends paid on Common Shares | (330) | (324) | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from Issuance of Long-term Debt | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | 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 | 656 | 108 | ||
Capital contribution | 0 | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 400 | [1] | (363) | [2] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Net cash flows from (used for) financing activities | 726 | (579) | ||
Effect of foreign currency rate changes on cash and restricted cash | (2) | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (2) | 5 | ||
Cash and Restricted Cash - Beginning of year | 3 | 1 | ||
Cash and Restricted Cash - end of Year | 1 | 6 | ||
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | 2,727 | (156) | ||
Purchases of fixed maturities available for sale | (8) | (4) | ||
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 | 3 | 7 | ||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||
Net change in short-term investments | (14) | 173 | ||
Net derivative instruments settlements | (7) | (2) | ||
Private equity contribution | 0 | 0 | ||
Private equity distribution | 0 | 0 | ||
Payment Of Contributions To Subsidiary | 3,500 | |||
Other | (3) | 0 | ||
Net cash flows used for investing activities | (3,529) | 174 | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from Issuance of Long-term Debt | 2,175 | 0 | ||
Proceeds from issuance of long-term debt | (300) | (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 | (95) | (171) | ||
Capital contribution | 0 | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | (115) | [1] | 653 | [2] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Net cash flows from (used for) financing activities | 1,665 | (18) | ||
Effect of foreign currency rate changes on cash and restricted cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 863 | 0 | ||
Cash and Restricted Cash - Beginning of year | 1 | 1 | ||
Cash and Restricted Cash - end of Year | 864 | 1 | ||
Other Chubb Limited Subsidiaries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | 800 | 1,081 | ||
Purchases of fixed maturities available for sale | (5,964) | (6,246) | ||
Purchases of fixed maturities held to maturity | (162) | (157) | ||
Purchases of equity securities | (55) | (37) | ||
Sales of fixed maturities available for sale | 2,562 | 3,395 | ||
Sales of equity securities | 40 | 46 | ||
Maturities and redemptions of fixed maturities available for sale | 1,862 | 2,536 | ||
Maturities and redemptions of fixed maturities held to maturity | 255 | 240 | ||
Net change in short-term investments | 745 | 59 | ||
Net derivative instruments settlements | 46 | (87) | ||
Private equity contribution | (353) | (198) | ||
Private equity distribution | 201 | 315 | ||
Payment Of Contributions To Subsidiary | 0 | |||
Other | (29) | (106) | ||
Net cash flows used for investing activities | (852) | (240) | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | (29) | (128) | ||
Proceeds from Issuance of Long-term Debt | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | ||
Proceeds from issuance of repurchase agreements | 408 | 753 | ||
Repayments of repurchase agreements | (404) | (752) | ||
Proceeds from share-based compensation plans | 34 | 42 | ||
Dividend to Parent Company | (3,000) | (496) | ||
Advances (to) from affiliates | (561) | 63 | ||
Capital contribution | 4,250 | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | [1] | 0 | [2] |
Policyholder contract deposits | 118 | 109 | ||
Policyholder contract withdrawals | (105) | (58) | ||
Net cash flows from (used for) financing activities | 711 | (467) | ||
Effect of foreign currency rate changes on cash and restricted cash | 27 | (17) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 686 | 357 | ||
Cash and Restricted Cash - Beginning of year | 962 | 2,068 | ||
Cash and Restricted Cash - end of Year | 1,648 | 2,425 | ||
Consolidation, Eliminations [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | (3,000) | (496) | ||
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 | ||
Private equity contribution | 0 | 0 | ||
Private equity distribution | 0 | 0 | ||
Payment Of Contributions To Subsidiary | (4,250) | |||
Other | 0 | 0 | ||
Net cash flows used for investing activities | 4,250 | 0 | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from Issuance of Long-term Debt | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | 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 | 3,000 | 496 | ||
Advances (to) from affiliates | 0 | 0 | ||
Capital contribution | (4,250) | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | (285) | [1] | (290) | |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Net cash flows from (used for) financing activities | (1,535) | 206 | ||
Effect of foreign currency rate changes on cash and restricted cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (285) | (290) | ||
Cash and Restricted Cash - Beginning of year | (115) | (982) | ||
Cash and Restricted Cash - end of Year | $ (400) | $ (1,272) | ||
[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 March 31, 2018 and December 31, 2017, 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 March 31, 2017 and December 31, 2016, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Uncategorized Items - cb-201803
Label | Element | Value |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 1,034,000,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 27,883,000,000 |
Adjustments for New Accounting Pronouncement [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (416,000,000) |
Adjustments for New Accounting Pronouncement [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 409,000,000 |